Document:

Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 SENIOR SECURED, SUPER-PRIORITY DEBTOR-IN-POSSESSION LOAN AND SECURITY AGREEMENT

 Dated as of June 18, 2009 
 Among 
 THE FINANCIAL INSTITUTIONS NAMED HEREIN 
 as the Lenders 
 BANK OF AMERICA, N.A. 
 as the Agent 
 BANC OF AMERICA SECURITIES LLC 
 as Sole Lead Arranger and Book Manager 
 BANK OF AMERICA, N.A. and 
 THE CIT GROUP/BUSINESS CREDIT, INC. 
 as Co-Syndication Agents 
 GENERAL ELECTRIC CAPITAL CORPORATION 
 THE CIT GROUP/BUSINESS CREDIT, INC. 
 as
Co-Collateral Agents 
 GENERAL ELECTRIC CAPITAL CORPORATION 
 as Documentation Agent 
 EDDIE BAUER, INC. 
 as Borrower 
 and 
 EDDIE BAUER HOLDINGS, INC. 
 THE SUBSIDIARIES OF EDDIE BAUER, INC. PARTY HERETO

 as Guarantors 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1 INTERPRETATION OF THIS AGREEMENT
	  	2
			
	 1.1
	  	Definitions	  	2
	 1.2
	  	Accounting Terms	  	30
	 1.3
	  	Interpretive Provisions	  	30
	 1.4
	  	Currency Equivalents Generally	  	31
		
	 ARTICLE 2 LOANS AND LETTERS OF CREDIT
	  	31
			
	 2.1
	  	Total Facility	  	31
	 2.2
	  	Revolving Loans	  	31
	 2.3
	  	Letters of Credit	  	37
	 2.4
	  	Bank Products	  	44
	 2.5
	  	Increase in Commitments; LILO Tranche	  	44
		
	 ARTICLE 3 INTEREST AND FEES
	  	46
			
	 3.1
	  	Interest	  	46
	 3.2
	  	Intentionally Omitted	  	46
	 3.3
	  	Maximum Interest Rate	  	46
	 3.4
	  	Unused Line Fee	  	47
	 3.5
	  	Letter of Credit Fee	  	47
	 3.6
	  	Upfront Fee	  	47
	 3.7
	  	Structuring Fee	  	47
	 3.8
	  	Payment of Fees	  	47
		
	 ARTICLE 4 PAYMENTS AND PREPAYMENTS
	  	48
			
	 4.1
	  	Revolving Loans	  	48
	 4.2
	  	LILO Tranche	  	48
	 4.3
	  	Termination or Reduction of Facility	  	48
	 4.4
	  	Payments by the Loan Parties	  	49
	 4.5
	  	Payments as Revolving Loans	  	49
	 4.6
	  	Apportionment and Application and Reversal of Payments	  	50
	 4.7
	  	Indemnity for Returned Payments	  	50
	 4.8
	  	Agent’s and Lenders’ Books and Records: Monthly Statements	  	50
		
	 ARTICLE 5 TAXES, YIELD PROTECTION AND ILLEGALITY
	  	51
			
	 5.1
	  	Taxes	  	51
	 5.2
	  	Intentionally Omitted	  	53
	 5.3
	  	Increased Costs and Reduction of Return	  	53
	 5.4
	  	Intentionally Omitted	  	53

  

 (i) 

					
	 5.5
	  	Intentionally Omitted	  	53
	 5.6
	  	Certificates of Lenders	  	53
	 5.7
	  	Survival	  	54
		
	 ARTICLE 6 COLLATERAL
	  	54
			
	 6.1
	  	Grant of Security Interest	  	54
	 6.2
	  	Perfection and Protection of Security Interest	  	56
	 6.3
	  	Location of Collateral	  	57
	 6.4
	  	Title to, Liens on, and Sale and Use of Collateral	  	57
	 6.5
	  	Access and Examination: Promotional Materials	  	58
	 6.6
	  	Collateral Reporting	  	58
	 6.7
	  	Accounts	  	60
	 6.8
	  	Collection of Accounts; Payments	  	61
	 6.9
	  	Inventory: Perpetual Inventory	  	62
	 6.10
	  	Equipment	  	63
	 6.11
	  	Documents, Instruments, and Chattel Paper	  	63
	 6.12
	  	Right to Cure	  	64
	 6.13
	  	Power of Attorney	  	64
	 6.14
	  	The Agent’s and Lenders’ Rights, Duties and Liabilities	  	65
	 6.15
	  	Patents, Trademarks and Copyrights	  	66
	 6.16
	  	Grant of License to Use Intellectual Property	  	67
		
	 ARTICLE 7 BOOKS AND RECORDS: FINANCIAL INFORMATION: NOTICES
	  	67
			
	 7.1
	  	Books and Records	  	67
	 7.2
	  	Financial and Other Information	  	68
	 7.3
	  	Notices to the Lenders	  	69
		
	 ARTICLE 8 GENERAL WARRANTIES AND REPRESENTATIONS
	  	71
			
	 8.1
	  	Authorization	  	71
	 8.2
	  	Validity and Priority of Security Interest	  	72
	 8.3
	  	Organization and Qualification	  	72
	 8.4
	  	Corporate Name: Prior Transactions	  	72
	 8.5
	  	Subsidiaries	  	72
	 8.6
	  	Intentionally Omitted	  	72
	 8.7
	  	Capitalization	  	73
	 8.8
	  	Debt	  	73
	 8.9
	  	Distributions	  	73
	 8.10
	  	Title to Property	  	73
	 8.11
	  	Real Estate: Leases	  	73
	 8.12
	  	Proprietary Rights	  	73
	 8.13
	  	Trade Names	  	73
	 8.14
	  	Litigation	  	74
	 8.15
	  	Restrictive Agreements	  	74
	 8.16
	  	Labor Disputes	  	74

  

 (ii) 

					
	 8.17
	  	Environmental Laws	  	74
	 8.18
	  	No Violation of Law	  	75
	 8.19
	  	No Default	  	75
	 8.20
	  	ERISA Compliance	  	76
	 8.21
	  	Taxes	  	76
	 8.22
	  	Regulated Entities	  	76
	 8.23
	  	Use of Proceeds: Margin Regulations	  	77
	 8.24
	  	Copyrights, Patents, Trademarks and Licenses, etc.	  	77
	 8.25
	  	No Material Adverse Effect	  	77
	 8.26
	  	Full Disclosure	  	77
	 8.27
	  	Material Agreements	  	78
	 8.28
	  	Bank Accounts	  	78
	 8.29
	  	Commercial Tort Claims	  	78
		
	 ARTICLE 9 AFFIRMATIVE AND NEGATIVE COVENANTS
	  	78
			
	 9.1
	  	Taxes and Other Obligations	  	78
	 9.2
	  	Legal Existence and Good Standing	  	78
	 9.3
	  	Compliance with Law and Agreements: Maintenance of Licenses	  	78
	 9.4
	  	Maintenance of Property; Inspection of Property	  	79
	 9.5
	  	Insurance	  	79
	 9.6
	  	Environmental Laws	  	80
	 9.7
	  	Compliance with ERISA	  	80
	 9.8
	  	Mergers, Consolidations or Sales	  	80
	 9.9
	  	Distributions: Capital Change: Restricted Investments	  	81
	 9.10
	  	Guaranties	  	81
	 9.11
	  	Debt	  	81
	 9.12
	  	Prepayment	  	82
	 9.13
	  	Transactions with Affiliates	  	83
	 9.14
	  	Investment Banking and Finder’s Fees	  	83
	 9.15
	  	Business Conducted	  	83
	 9.16
	  	Liens	  	83
	 9.17
	  	Sale and Leaseback Transactions	  	83
	 9.18
	  	New Subsidiaries	  	84
	 9.19
	  	Fiscal Year	  	84
	 9.20
	  	Use of Proceeds	  	84
	 9.21
	  	Further Assurances	  	84
	 9.22
	  	Obligations under Real Estate Leases, Equipment Leases and Licenses	  	84
	 9.23
	  	Reclamation Claims	  	84
	 9.24
	  	Sourcing Arrangements	  	85
	 9.25
	  	Intentionally Omitted	  	85
	 9.26
	  	Intentionally Omitted	  	85
	 9.27
	  	Intentionally Omitted	  	85
	 9.28
	  	Intentionally Omitted	  	85
	 9.29
	  	Intentionally Omitted	  	85
	 9.30
	  	Retention of Independent Consultant	  	85
	 9.31
	  	Performance Within 11 Week Cash Flow	  	85

  

 (iii) 

					
	 9.32
	  	Bankruptcy Related Affirmative Covenants	  	86
	 9.33
	  	Bankruptcy Related Negative Covenants	  	86
		
	 ARTICLE 10 CONDITIONS OF LENDING
	  	87
			
	 10.1
	  	Conditions Precedent to Closing Date	  	87
	 10.2
	  	Conditions Precedent to Each Loan	  	90
		
	 ARTICLE 11 DEFAULT: REMEDIES
	  	91
			
	 11.1
	  	Events of Default	  	91
	 11.2
	  	Remedies	  	95
		
	 ARTICLE 12 TERM AND TERMINATION
	  	96
			
	 12.1
	  	Term and Termination	  	96
		
	 ARTICLE 13 AMENDMENTS: WAIVER; PARTICIPATIONS: ASSIGNMENTS: SUCCESSORS
	  	97
			
	 13.1
	  	No Waivers: Cumulative Remedies	  	97
	 13.2
	  	Amendments and Waivers	  	97
	 13.3
	  	Assignments; Participations	  	99
		
	 ARTICLE 14 THE AGENT
	  	101
			
	 14.1
	  	Appointment and Authorization	  	101
	 14.2
	  	Delegation of Duties	  	102
	 14.3
	  	Liability of Agent	  	102
	 14.4
	  	Reliance by Agent	  	102
	 14.5
	  	Notice of Default	  	103
	 14.6
	  	Credit Decision	  	103
	 14.7
	  	Indemnification	  	104
	 14.8
	  	Agent in Individual Capacity	  	104
	 14.9
	  	Successor Agent	  	104
	 14.10
	  	Withholding Tax	  	105
	 14.11
	  	Collateral Matters	  	106
	 14.12
	  	Restrictions on Actions by Lenders; Sharing of Payments	  	107
	 14.13
	  	Agency for Perfection	  	108
	 14.14
	  	Payments by Agent to Lenders	  	108
	 14.15
	  	Concerning the Collateral and the Related Loan Documents	  	108
	 14.16
	  	Field Audit and Examination Reports: Disclaimer by Lenders	  	109
	 14.17
	  	Relation Among Lenders	  	109
	 14.18
	  	Co-Collateral Agents, Arranger, Co-Agents, Etc.	  	109
		
	 ARTICLE 15 MISCELLANEOUS
	  	110
			
	 15.1
	  	Severability	  	110

  

 (iv) 

					
	 15.2
	  	Governing Law: Choice of Forum: Service of Process	  	110
	 15.3
	  	WAIVER OF JURY TRIAL	  	111
	 15.4
	  	Survival of Representations and Warranties	  	112
	 15.5
	  	Other Security and Guaranties	  	112
	 15.6
	  	Fees and Expenses	  	112
	 15.7
	  	Notices	  	113
	 15.8
	  	Waiver of Notices	  	114
	 15.9
	  	Binding Effect	  	114
	 15.10
	  	Indemnity of the Agent and the Lenders by the Loan Parties	  	114
	 15.11
	  	Limitation of Liability	  	115
	 15.12
	  	Final Agreement	  	115
	 15.13
	  	Counterparts	  	115
	 15.14
	  	Captions	  	116
	 15.15
	  	Right of Setoff	  	116
	 15.16
	  	Joint and Several Liability	  	116
	 15.17
	  	Confidentiality	  	117
	 15.18
	  	Conflicts with Other Loan Documents	  	118
	 15.19
	  	Appraisals and Commercial Finance Examinations	  	118
	 15.20
	  	Patriot Act	  	119
	 15.21
	  	Foreign Asset Control Regulations	  	119
	 15.22
	  	Relationship to DIP Orders	  	119
		
	 ARTICLE 16 GUARANTEES
	  	120

  

 (v) 

 EXHIBITS 
 EXHIBIT A
- FORM OF BORROWING BASE CERTIFICATE 
 EXHIBIT B - FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT 
 EXHIBIT C - FORM OF NOTICE OF BORROWING 
 EXHIBIT D - FORM OF INTERIM BORROWING ORDER 
 SCHEDULES 
  

			
	Schedule 1.1(a)	  	COMMITMENTS
	Schedule 1.1(b)	  	MAJOR CREDIT CARD PROGRAM AGREEMENTS
	Schedule 1.2	  	INITIAL BUDGET
	Schedule 2.3	  	EXISTING LETTERS OF CREDIT
	Schedule 6.1(a)(xiv)	  	COMMERCIAL TORT CLAIMS
	Schedule 6.3	  	LOAN PARTIES’ CHIEF EXECUTIVE OFFICE, THE LOCATION OF ITS BOOKS AND RECORDS, THE LOCATIONS OF THE COLLATERAL
	Schedule 6.15	  	INTELLECTUAL PROPERTY
	Schedule 8.4	  	CORPORATE NAME; PRIOR TRANSACTIONS
	Schedule 8.5	  	SUBSIDIARIES AND AFFILIATES
	Schedule 8.7	  	CAPITALIZATION OF LOAN PARTIES
	Schedule 8.8	  	DEBT
	Schedule 8.10	  	OWNED REAL PROPERTY
	Schedule 8.11	  	LEASES
	Schedule 8.12	  	PROPRIETARY RIGHTS
	Schedule 8.13	  	TRADE NAMES
	Schedule 8.14	  	LITIGATION
	Schedule 8.16	  	LABOR DISPUTES
	Schedule 8.17	  	ENVIRONMENTAL ISSUES
	Schedule 8.18	  	VIOLATIONS OF LAW
	Schedule 8.20	  	ERISA ISSUES
	Schedule 8.27	  	MATERIAL AGREEMENTS
	Schedule 8.28	  	BANK ACCOUNTS
	Schedule 9.3	  	COMPLIANCE WITH LAWS
	Schedule 9.10	  	EXISTING GUARANTIES
	Schedule 9.13	  	TRANSACTIONS WITH AFFILIATES
	Schedule 9.16	  	EXISTING LIENS
	Schedule 10.1(h)	  	GOOD STANDING CERTIFICATES

  

 (vi) 

 SENIOR SECURED, SUPER-PRIORITY DEBTOR-IN-POSSESSION LOAN AND SECURITY AGREEMENT 
 Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement, dated as of June 18, 2009, among the financial institutions listed
on the signature pages hereof (such financial institutions, together with their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), Bank
of America, N.A., with an office at 100 Federal Street, Boston, Massachusetts 02110, as agent for the Lenders (in its capacity as agent, together with any successor in such capacity, the “Agent”), Banc of America Securities LLC, as
sole lead arranger and book manager (in such capacity, the “Arranger”), Bank of America, N.A. and The CIT Group/Business Credit, Inc., as co-syndication agents (in such capacity, the “Co-Syndication Agents”),
General Electric Capital Corporation and The CIT Group/Business Credit, Inc., as co-collateral agents (in such capacity, the “Co-Collateral Agents”), General Electric Capital Corporation, as documentation agent (in such capacity,
the “Documentation Agent”) Eddie Bauer, Inc., as a debtor and debtor-in-possession, a Delaware corporation (“Borrower”, and in its capacity as authorized representative of the Loan Parties, the “Authorized
Representative”), and each of its direct and indirect domestic Subsidiaries that is a signatory hereto as a Guarantor, each as a debtor and debtor-in-possession, and Eddie Bauer Holdings, Inc., as a debtor and debtor-in-possession, a
Delaware corporation (“Holdings”) as a Guarantor (each a “Guarantor” and collectively, the “Guarantors”). 
 WITNESSETH: 
 WHEREAS, on June 17, 2009 the Borrower, Holdings and the domestic Guarantors filed in the
Bankruptcy Court (as hereinafter defined) separate voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (as hereinafter defined) and have continued in the possession of their assets and in the management of their businesses
pursuant to Sections 1107 and 1108 of the Bankruptcy Code, and such reorganization cases have been administratively consolidated and are being jointly administered under Case Number 09-12099 (the “Case”); 
 WHEREAS, on June 17, 2009, certain Canadian Subsidiaries of the Borrower commenced court proceedings bearing Case No. CV-09-8240-CL (the
“Canadian Case”) by filing a notice seeking an initial order under the Companies’ Creditors Arrangement Act (Canada) with the Ontario Superior Court of Justice, Commercial List (the “Canadian Bankruptcy Court”); and

 WHEREAS, the Borrower has requested that the Agent and the Lenders provide a senior secured, super-priority revolving credit facility to
the Borrower on the terms and conditions set forth herein; 
  

 -1- 

 NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and
for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE 1

 INTERPRETATION OF THIS AGREEMENT 
 1.1 Definitions As used herein: 
 “11 Week Cash Flow” means the Borrower’s
eleven (11) week cash flow projection (corresponding to each week beginning on a Sunday and ending on the following Saturday), substantially in the form of the Initial Budget annexed hereto as Schedule 1.2, and any subsequent eleven week
cash flow projections furnished pursuant to Section 6.6(j) hereof, in each case, in substance satisfactory to the Agent and the Co-Collateral Agents in their sole discretion, reflecting on a line-item basis, among other things, cash receipts,
inventory levels, disbursements, the Borrowing Base, and Combined Availability for the subject period, which 11 Week Cash Flow may be amended and modified solely with the written consent of the Agent and the Co-Collateral Agents. 
 “363 Sale” means (i) the sale of all or substantially all of the Loan Parties’ assets as a going concern as approved by the
Bankruptcy Court pursuant to Section 363 and the other applicable provisions of the Bankruptcy Code; provided that any going concern sale shall be for cash consideration in an amount at least equal to all outstanding Obligations (other
than contingent indemnification obligations for which a claim has not been asserted) and all Pre-Petition Liabilities (other than contingent indemnification obligations for which a claim has not been asserted), or (ii) a transaction or
transactions combining the sale of all or substantially all of the Loan Parties’ assets and the permanent closing of one or more of the Loan Parties’ stores and the sale of all Collateral located therein through any so-called store
closing, store liquidation, “Going-Out-Of-Business” or similar sales, as approved by the Bankruptcy Court pursuant to Section 363 and the other applicable provisions of the Bankruptcy Code; provided that such sale shall be for
cash consideration in an amount at least equal to all outstanding Obligations (other than contingent indemnification obligations for which a claim has not been asserted) and all Pre-Petition Liabilities (other than contingent indemnification
obligations for which a claim has not been asserted); and provided further that with respect to any such sale, upon consummation thereof, all outstanding Obligations (other than contingent indemnification obligations for which a claim has not
been asserted) and all Pre-Petition Liabilities (other than contingent indemnification obligations for which a claim has not been asserted) shall be paid in full in cash. 
 “Account Debtor” means each Person obligated in any way on or in connection with an Account, Chattel Paper or General Intangible (including a payment intangible). 
 “Accounts” means, with respect to any Loan Party, all of such Loan Party’s now owned or hereafter acquired or arising accounts (as
defined in the UCC), and any other rights of such Loan Party to payment for the sale or lease of Inventory or goods or rendition of services, whether or not they have been earned by performance, including, without limitation, Major Credit Card
Receivables. 
 “ACH Transactions” means any automatic clearing house transfer of funds by the Bank or any other Lender (or
any Affiliate of such Lender), in each instance, for the account of any Loan Party. 
  

 -2- 

 “Administration Charge” has the meaning set forth in the Initial Order. 
 “Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person or which owns, directly or indirectly, ten percent (10%) or more of the outstanding equity interest of such Person. A Person shall be deemed to control another Person if the controlling Person possesses,
directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise. 
 “Agent” means the Bank, solely in its capacity as agent for the Lenders, and any successor agent. 
 “Agent Advances” has the meaning specified in Section 2.2(i). 
 “Agent Professional Fee and Expense Reserve” means a Reserve in an amount up to $750,000 as determined by the Agent and the
Co-Collateral Agents in their sole discretion with respect to Attorney Costs incurred by the Agent or any Co-Collateral Agent and other professional fees and expenses incurred by the Agent or any Co-Collateral Agent in connection with the Loan
Documents and the Case. 
 “Agent-Related Persons” means the Agent, the Co-Collateral Agents, and any successor agent or
co-collateral agent, together with their respective Affiliates, and the officers, directors, employees, counsel, representatives, agents and attorneys-in-fact of such Persons. 
 “Agent’s Liens” means the Liens granted to the Agent, for the ratable benefit of the Lenders, the Bank and the Agent, pursuant to
the DIP Orders, this Agreement and the other Loan Documents. 
 “Aggregate Outstandings” means, at any date of
determination, without duplication: the sum of (a) the aggregate unpaid principal balance of all Revolving Loans, (b) one hundred percent (100%) of the aggregate undrawn amount of all outstanding Letters of Credit and (c) the
aggregate amount of any unpaid reimbursement obligations in respect of all Letters of Credit. 
 “Agreement” means this
Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement. 
 “Agreement Value” means, for each Hedge
Agreement, on any date of determination, an amount determined by the Agent equal to: (a) in the case of a Hedge Agreement documented pursuant to the Master Agreement (Multicurrency-Cross Border) published by the International Swap and
Derivatives Association, Inc. (the “Master Agreement”), the amount, if any, that would be payable by a Loan Party or any of its Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was being
terminated early on such date of determination, (ii) such Loan Party or such Subsidiary was the sole “Affected Party”, and (iii) the Agent was the sole party determining such payment amount (with the Agent making such
determination pursuant to the provisions of the form of Master Agreement); or (b) in the case of a Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge
Agreement to a Loan Party or its Subsidiary 

  

 -3- 

 
party to such Hedge Agreement determined by the Agent based on the settlement price of such Hedge Agreement on such date of determination, or (c) in all
other cases, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement to a Loan Party or its Subsidiary party to such Hedge Agreement determined by the Agent as the amount, if any, by which
(i) the present value of the future cash flows to be paid by such Loan Party or such Subsidiary exceeds (ii) the present value of the future cash flows to be received by such Loan Party or such Subsidiary pursuant to such Hedge Agreement;
capitalized terms used and not otherwise defined in this definition shall have the respective meanings set forth in the above described Master Agreement. 
 “Applicable Margin” means, the rates set forth in the table, below: 
  

					
	 Base Rate Loans
 Applicable Margin
	  	Letter of Credit
Fee Applicable
Margin	 	
			
	 3.00%
	  	4.00%	 	

 “Arranger” has the meaning specified in the introductory paragraph hereof.

 “Assignee” has the meaning specified in Section 13.2(a). 
 “Assignment and Assumption” has the meaning specified in Section 13.2(a). 
 “Attorney Costs” means and includes all reasonable fees, expenses and disbursements of any law firm or other counsel engaged by the
Agent and the Co-Collateral Agents. 
 “Authorized Representative” has the meaning specified in the introductory paragraph
hereof. 
 “Availability Block” means an amount equal to five (5%) percent of the Borrowing Base (without giving effect
to clauses (i) through (l) thereof). 
 “Bank” means Bank of America, N.A., a national banking association, or any
successor entity thereto. 
 “Bank Loan” and “Bank Loans” have the meanings specified in Section
2.2(h). 
 “Bank Products” means any one or more of the following types of services or facilities extended to any Loan
Party by the Bank or any Affiliate of the Bank, or any other Lender (or any of its Affiliates) or other bank, in each case, reasonably acceptable to the Agent (it being agreed by the Agent that each of the Lenders and their respective Affiliates is
acceptable to the Agent): (i) credit cards (including, without limitation, merchant card processing services); (ii) ACH Transactions; (iii) cash management, including controlled disbursement services; and (iv) Hedge Agreements.

  

 -4- 

 “Bank Product Reserves” means all reserves which the Agent from time to time establishes
in its reasonable discretion for the Bank Products then provided or outstanding. 
 “Bankruptcy Code” means Title 11 of the
United States Code (11 U.S.C. § 101). 
 “Bankruptcy Court” means the United States Bankruptcy Court for the District
of Delaware and, to the extent the United States District Court for the District of Delaware sits in bankruptcy with respect to any matter relating to the Case, then the United States District Court for the District of Delaware. 
 “Bankruptcy Recoveries” means any and all claims and causes of action which a Loan Party may be entitled to assert by reason of any
avoidance or other power vested in or on behalf of a Loan Party or the estate of a Loan Party under Chapter 5 of the Bankruptcy Code and any and all recoveries or proceeds of any such claims or causes of action. 
 “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the rate of interest in effect for such day
as publicly announced from time to time by the Bank as its “prime rate”; (b) the Federal Funds Rate for such day, plus 0.50%; and (c) the LIBO Rate for a 30 day interest period as determined on such day, plus 1.0%. The
“prime rate” is a rate set by the Bank based upon various factors including the Bank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate announced by the Bank shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Base Rate Loan” means a Loan during any period in which it bears interest based on the Base Rate. 
 “Blocked Account Agreement” means an agreement among a Loan Party, the Agent and a Clearing Bank, in form and substance reasonably
satisfactory to the Agent, concerning the collection of payments which represent the proceeds of Accounts or of any other Collateral, including any such agreement entered into in connection with the Pre-Petition Loan Documents which remains in
effect during the Case. 
 “Borrower” has the meaning specified in the introductory paragraph to this Agreement. 

“Borrower Pension Plan” means the Eddie Bauer Pension Plan. 
 “Borrowing” means a borrowing hereunder consisting of Loans made on the same day by the Lenders to the Borrower (or by the Bank in the
case of a Borrowing funded by Bank Loans) or by the Agent in the case of a Borrowing consisting of an Agent Advance. 
 “Borrowing
Base” means, at any time of calculation, an amount equal to: 
 (a) 85% of the aggregate Net Amount of Eligible Major Credit Card
Receivables of the Borrower at such time, plus 
  

 -5- 

 (b) 85% of the aggregate Orderly Liquidation Value of Eligible Inventory of the Borrower at such time,
plus 
 (c) LC Inventory Availability of the Borrower at such time, plus 
 (d) 85% of the aggregate Orderly Liquidation Value of Eligible In Transit Inventory of the Borrower at such time, plus 
 (e) (i) the aggregate Net Amount of Eligible Major Credit Card Receivables of the Canadian Subsidiaries at such time multiplied by (ii) an
advance rate to be determined by the Agent and the Co-Collateral Agents in their sole discretion, plus 
 (f) 45% of the aggregate
value of Eligible Inventory of the Canadian Subsidiaries at such time valued at cost (calculated in accordance with the Canadian Subsidiaries’ historical practices in accordance with GAAP), plus 
 (g) LC Inventory Availability of the Canadian Subsidiaries at such time, plus 
 (h) (i) the aggregate Orderly Liquidation Value of Eligible In Transit Inventory of the Canadian Subsidiaries at such time multiplied by
(ii) an advance rate to be determined by the Agent and the Co-Collateral Agents in their sole discretion, minus 
 (i) the then
amount of all Reserves (without duplication of the Reserves set forth in clauses (j) and (k) below and without duplication of the Availability Block set forth in clause (l) below), minus 
 (j) the Carve Out Reserve, minus 
 (k) the Agent Professional Fee and Expense Reserve, minus 
 (l) commencing on August 1, 2009, in the event that the
order authorizing the 363 Sale has not been entered on or before July 31, 2009, the Availability Block; 
 provided that
(x) until such time as the Agent and the Co-Collateral Agents shall have conducted such due diligence as determined by the Agent and the Co-Collateral Agents in their sole discretion with respect to the assets of the Canadian Subsidiaries to be
included in the Borrowing Base pursuant to clauses (e) through (h) above and shall have received the Initial Order, the Intercompany Loan Documents and the Collateral Assignment of Intercompany Loan Documents, none of the assets set forth
in clauses (e) through (h) above shall be included in the Borrowing Base, (y) at any time when the assets set forth in clauses (e) through (h) above are included in the Borrowing Base, the maximum amount available to be
borrowed and outstanding under clauses (e) through (h) above shall not exceed an amount equal to the lesser of (i) the amount of any loans outstanding from time to time from the Borrower to the Canadian Subsidiaries pursuant to the
Intercompany Loan Documents and (ii) $7,500,000, and (z) the maximum amounts available to be borrowed and outstanding under clauses (c), (d), (g) and (h) above, shall not exceed, in the aggregate, thirty percent (30%) (as
such percentage may be increased by the Agent and the Co-Collateral Agents in their sole discretion) of the Borrowing Base at any time. 
  

 -6- 

 “Borrowing Base Certificate” means a certificate by a Responsible
Officer of the Borrower, substantially in the form of Exhibit A (or another form acceptable to the Agent and the Co-Collateral Agents) setting forth a good faith calculation of the Combined Availability, including a good faith calculation of
each component thereof, as of the close of business on the immediately preceding Business Day, all in such detail as shall be satisfactory to the Agent and the Co-Collateral Agents. All calculations of Combined Availability in connection with the
preparation of any Borrowing Base Certificate shall originally be made by the Borrower and certified to the Agent; provided, that the Agent and the Co-Collateral Agents shall have the right to review and adjust, in the exercise of their reasonable
credit judgment, any such calculation (1) to reflect reasonable estimate of declines in value of any of the Collateral described therein, and (2) to the extent that such calculation is not in accordance with this Agreement. 
 “Business Day” means any day that is not a Saturday, Sunday, or a day on which banks in New York, New York or Charlotte, North Carolina
are required or permitted to be closed. 
 “Canadian Based Proceeds” means proceeds of Loans received pursuant to any
borrowing in respect of clauses (e) through (h) of the Borrowing Base. 
 “Canadian Subsidiaries” means Eddie
Bauer of Canada, Inc. and Eddie Bauer Customer Services, Inc. 
 “Capital Adequacy Regulation” means any guideline, request
or directive of any central bank or other Governmental Authority, or any other law, rule or regulation, whether or not having the force of law, in each case, regarding capital adequacy of any Lender or of any corporation controlling a Lender.

 “Capital Lease” means any lease of property by any Loan Party which, in accordance with GAAP, should be reflected as a
capital lease on the balance sheet of such Loan Party. 
 “Carve Out” means an amount equal to $3,500,000, plus Reported Fee
Accruals for Professional Fees and Expenses, subject to any limitations contained in the DIP Orders. 
 “Carve Out Reserve”
means a Reserve equal to the maximum possible amount of the Carve Out. 
 “Case” has the meaning specified in the Recitals
hereof. 
 “Change of Control” means either of the following: (i) any one or more events shall occur (whether at the
same or different times) the result of which is any “person” or “group of persons” (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) shall become or obtain rights (whether
by means of warrant, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 of the Securities Exchange Act of 1934, as amended) directly or indirectly, of 20% or more of the capital stock of
Holdings, or (ii) the board of directors of Holdings shall cease to consist of a majority of Continuing Directors, or (iii) Holdings shall fail to own and control, of record and beneficially, directly or indirectly, 100% of the outstanding
equity interests of each other Loan Party (except the Agent’s Liens, Liens granted under the Pre-Petition Loan Documents, or Liens to secure the Term Debt). 
  

 -7- 

 “Chattel Paper” means, with respect to any Loan Party, all of such Loan Party’s now
owned or hereafter acquired chattel paper, as defined in the UCC, including electronic chattel paper. 
 “Clearing Bank”
means the Bank or any other banking institution with whom a Payment Account has been established pursuant to a Blocked Account Agreement. 
 “Closing Date” means the date on which the conditions precedent set forth in Section 10.1 have been satisfied or waived by the Lenders and this Agreement becomes effective. 
 “Co-Collateral Agents” has the meaning specified in the introductory paragraph of this Agreement. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute, and regulations promulgated
thereunder. 
 “Collateral” has the meaning specified in Section 6.1. 
 “Collateral Assignment of Intercompany Loan Documents” means an agreement evidencing the collateral assignment of the Intercompany Loan
Documents by the Borrower to the Agent, for the benefit of the Agent, the Co-Collateral Agents and the Lenders, which agreement shall be satisfactory to the Agent and the Co-Collateral Agents in their sole discretion. 
 “Combined Availability” of the Borrower means, at any time: 
 (a) the lesser of (i) the Maximum Revolver Amount at such time or (ii) the Borrowing Base, minus 
 (b) the then outstanding amount of the Pre-Petition Liabilities, minus 
 (c) the sum of (i) the aggregate unpaid balance of all Revolving Loans made to the Borrower at such time, (ii) the aggregate
amount of all Pending Revolving Loans to be made to the Borrower at such time (after giving effect to any Pending Revolving Loans to be made to pay amounts then outstanding under clause (iv) below), (iii) the aggregate undrawn amount of
all outstanding Letters of Credit at such time, and (iv) the aggregate amount of any unpaid reimbursement Obligations in respect of Letters of Credit at such time. 
 “Commitment” means, at any time with respect to a Lender, the principal amount set forth beside such Lender’s name under the heading “Commitment” on Schedule 1.1(a)
attached to this Agreement or on the signature page of the Assignment and Assumption pursuant to which such Lender became a Lender hereunder in accordance with the provisions of Section 13.3, as such Commitment may be adjusted from time
to time in accordance with the provisions of Section 13.3 and Section 4.3, and “Commitments” means, collectively, the aggregate amount of the commitments of all of the Lenders. 
 “Consolidated” means, when used to modify a financial term, test, statement, or report of a Person, the application or preparation of
such term, test, statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial condition or operating results of such Person and its Subsidiaries. 
  

 -8- 

 “Consummation Date” means the date of substantial consummation (as defined in
Section 1101 of the Bankruptcy Code) of a Plan of Reorganization by the Borrower confirmed by a Final Order of the Bankruptcy Court. 
 “Contaminant” means any waste, pollutant, hazardous substance, toxic substance, hazardous waste, special waste, petroleum or petroleum-derived substance or waste, asbestos in any form or condition, polychlorinated biphenyls
(“PCBs”), or any constituent of any such substance or waste. 
 “Continuing Directors” means
the directors of Holdings on the Closing Date, and each other director, if, in each case, such other director’s nomination for election to the board of directors of Holdings is recommended by at least 66 2/3% of the then Continuing Directors. 
 “Convertible Notes Documents”: the Convertible Note Indenture, the Convertible Notes issued thereunder and any other documentation executed in connection therewith, as in effect on the Closing Date,
together with any amendments and supplements thereto permitted under Section 9.12(b) hereof. 
 “Convertible Note
Indenture”: the Indenture dated as of April 4, 2007 among Holdings, the subsidiary guarantors party thereto and the trustee therefor, as in effect on the Closing Date, together with any amendments and supplements thereto permitted
under Section 9.12(b) hereof. 
 “Convertible Notes”: the convertible notes issued by Holdings pursuant to the
Convertible Note Indenture. 
 “Co-Syndication Agents” has the meaning specified in the introductory paragraph of this
Agreement. 
 “Credit Support” has the meaning specified in Section 2.3(a). 
 “Creditors’ Committee” means any official committee of creditors formed, appointed or approved in the Case pursuant to the
Bankruptcy Code. 
 “Debt” means, without duplication, all liabilities, obligations and indebtedness of any Loan Party to
any Person, of any kind or nature, now or hereafter owing, arising, due or payable, howsoever evidenced, created, incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed or otherwise, consisting of indebtedness for
borrowed money or the deferred purchase price of property, excluding trade payables, but including in any event (a) all Obligations; (b) all obligations and liabilities of any Person secured by any Lien on any Loan Party’s property,
even though such Loan Party shall not have assumed or become liable for the payment thereof; provided, however, that all such obligations and liabilities that are limited in recourse to such property shall be included in Debt only to the extent of
the book value of such property as would be shown on a balance sheet of such Loan Party prepared in accordance with GAAP; (c) all obligations or liabilities created or arising under any Capital Lease or conditional sale or other title retention
agreement with respect to property used or acquired by any Loan 

  

 -9- 

 
Party, even if the rights and remedies of the lessor, seller or lender thereunder are limited to repossession of such property; provided, however, that all
such obligations and liabilities that are limited in recourse to such property shall be included in Debt only to the extent of the book value of such property as would be shown on a balance sheet of such Loan Party prepared in accordance with GAAP;
(d) all obligations and liabilities under Guaranties; (e) the present value (discounted at the Base Rate) of lease payments due under synthetic leases; (f) all obligations and liabilities of any Loan Party, contingent or otherwise, as
an account party or applicant under or in respect of a letter of credit; and (g) all obligations and liabilities of any Loan Party in respect of Hedge Agreements, with Hedge Agreements to be valued at the Agreement Value thereof. 
 “Default” means any event or circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured, waived, or
otherwise remedied during such time) constitute an Event of Default. 
 “Default Rate” means a fluctuating per annum
interest rate at all times equal to the sum of (a) the otherwise applicable Interest Rate plus (b) 2% per annum. Each Default Rate shall be adjusted simultaneously with any change in the applicable Interest Rate. In addition,
the Default Rate shall result in an increase in the Letter of Credit Fee by two percentage points per annum. 
 “Defaulting
Lender” has the meaning specified in Section 2.2(g)(ii). 
 “DIP Orders” means and refers to the
Interim Borrowing Order and the Final Borrowing Order. 
 “Directors’ Charge” has the meaning set forth in the Initial
Order. 
 “Disclosure Statement” means a disclosure statement filed in the Case in connection with a Plan of Reorganization.

 “Distribution” means, in respect of any corporation: (a) the payment or making of any dividend or other distribution
of property in respect of capital stock (or any options or warrants for, or other rights with respect to, such stock) of such corporation, other than distributions in capital stock (or any options or warrants for such stock) of the same class; or
(b) the redemption or other acquisition by such corporation of any capital stock (or any options or warrants for such stock) of such corporation. 
 “Documentation Agent” has the meaning specified in the introductory paragraph of this Agreement. 
 “Documents” means, with respect to any Loan Party, all documents as such term is defined in the UCC, including bills of lading, warehouse receipts or other documents of title, now owned or hereafter acquired by such Loan
Party. 
 “DOL” means the United States Department of Labor or any successor department or agency. 
  

 -10- 

 “Dollar” and “$” means dollars in the lawful currency of the United
States. Unless otherwise specified, all payments under this Agreement shall be made in Dollars. 
 “Effect of Bankruptcy”
means, with respect to any contractual obligation, contract or agreement to which a Loan Party is a party, any default or other legal consequences arising directly or indirectly on account of the commencement, pendency or continuation of the Case
(including the implementation of any stay), or the rejection of any such contractual obligation, contract or agreement with the approval of the Bankruptcy Court. 
 “Eligible Assignee” means (a) a commercial bank, commercial finance company or other asset based lender, having total assets in excess of $1,000,000,000, that is reasonably acceptable to the
Agent and only so long as no Event of Default has occurred that has not been waived in writing by the Required Lenders, reasonably acceptable to the Authorized Representative; (b) any Lender listed on the signature page of this Agreement;
(c) any Affiliate of any Lender; and (d) any other financial institution or other Person engaged in making, purchasing or investing in commercial loans in the ordinary course of its business that is reasonably acceptable to the Agent and
the Co-Collateral Agents. 
 “Eligible In Transit Inventory” means Inventory (a) not yet delivered to the Borrower or a
Canadian Subsidiary, as applicable, (b) for which payment has been made by the Borrower or such Canadian Subsidiary, as applicable, (c) for which a bill of lading or other title document names the Borrower or a Canadian Subsidiary, as
applicable, as consignee, (d) as to which a customs broker agency agreement, reasonably satisfactory to the Agent and the Co-Collateral Agents, is in effect, and (e) which otherwise would not be excluded by the definition of Eligible
Inventory. 
 “Eligible Inventory” means Inventory of the Borrower or the Canadian Subsidiaries, as applicable, which the
Agent and the Co-Collateral Agents, in their reasonable discretion, determine to be Eligible Inventory. Without limiting the discretion of the Agent and the Co-Collateral Agents to establish other criteria of ineligibility, Eligible Inventory shall
not, unless the Agent and the Co-Collateral Agents in their sole discretion elect, include any Inventory: 
 (a) that is not
owned by the Borrower or the Canadian Subsidiaries, as applicable; 
 (b) that is not subject to the Agent’s Liens, which
are perfected as to such Inventory, or that are subject to any other Lien whatsoever (other than the Liens described in clauses (a), (d), (g), (i) or (m) of the definition of Permitted Liens provided that such Permitted Liens
(i) are junior in priority (unless such Permitted Liens have priority by operation of applicable law and except for Permitted Liens under clause (m) of the definition thereof) to the Agent’s Liens or subject to Reserves and
(ii) do not impair directly or indirectly the ability of the Agent to realize on or obtain the full benefit of the Collateral); 
 (c) that does not consist of finished goods; 
 (d) that consists of raw materials, work-in-process, chemicals,
samples, prototypes, supplies, or packing and shipping materials; 
  

 -11- 

 (e) that is not in good condition, is unmerchantable, or does not meet all standards
imposed by any Governmental Authority, having regulatory authority over such goods, their use or sale; 
 (f) that is not
currently either usable or salable, at prices approximating at least cost, in the normal course of the Borrower’s or a Canadian Subsidiary’s business, or that is slow moving or stale; 
 (g) that is obsolete or repossessed or used goods taken in trade or held for return to vendors; 
 (h) that is located outside the United States of America (with respect to Inventory owned by the Borrower) or Canada (with respect to
Inventory owned by a Canadian Subsidiary) (or that is in-transit from vendors or suppliers except Eligible In Transit Inventory and LC Inventory Availability); 
 (i) that is located in a public warehouse or in possession of a bailee or in a facility leased by the Borrower or a Canadian Subsidiary,
if the warehouseman, or the bailee, or the lessor has not delivered to the Agent, if requested by the Agent or any Co-Collateral Agent, a subordination agreement in form and substance satisfactory to the Agent and the Co-Collateral Agents or if a
Reserve for rents or storage charges, if the Agent or any Co-Collateral Agent so requires, has not been established for Inventory at that location; 
 (j) that contains or bears any Proprietary Rights licensed to the Borrower or a Canadian Subsidiary by any Person, if the Agent or any Co-Collateral Agent is not satisfied that it may sell or otherwise dispose of such
Inventory in accordance with the terms of Section 11.2 without infringing the rights of the licensor of such Proprietary Rights or violating any contract with such licensor (and without payment of any royalties other than any royalties
due with respect to the sale or disposition of such Inventory pursuant to the existing license agreement), and, as to which the Borrower or applicable Canadian Subsidiary has not delivered to the Agent a consent or sublicense agreement from such
licensor in form and substance acceptable to the Agent and the Co-Collateral Agents if requested; 
 (k) that is not reflected
in the details of a current perpetual inventory report; or 
 (l) that is Inventory placed on consignment. 
 If any Inventory at any time ceases to be Eligible Inventory, such Inventory shall promptly be excluded from the calculation of Eligible
Inventory. 
 “Eligible Major Credit Card Receivables” means all Major Credit Card Receivables of the Borrower or the
Canadian Subsidiaries, as applicable, which the Agent and the Co-Collateral Agents in the exercise of their reasonable discretion determine to be Eligible Major Credit Card Receivables. Without limiting the discretion of the Agent and the
Co-Collateral Agents to establish criteria of eligibility and ineligibility, Eligible Major Credit Card Receivables shall not, unless the Agent and the Co-Collateral Agents in their sole discretion elect, include any Major Credit Card Receivable
unless such Major Credit Card Receivable: 
 (a) has arisen under a Major Credit Card Account; 
  

 -12- 

 (b) has not been outstanding for more than five (5) Business Days from the date of
sale; 
 (c) was created in compliance with all Requirements of Law and pursuant to a Major Credit Card Program Agreement that
complies with all Requirements of Law; 
 (d) is such that at the time of and at all times after the creation of such Major
Credit Card Receivable the Borrower or a Canadian Subsidiary, as applicable, has good and marketable title thereto, free and clear of all Liens (other than Liens in favor of the Agent and Liens described in clauses (a), (d), (g), (i) or
(m) of the definition of Permitted Liens provided that such Permitted Liens (i) are junior in priority (unless such Permitted Liens have priority by operation of applicable law and except for Permitted Liens under clause (m) of
the definition thereof) to the Agent’s Liens or subject to Reserves and (ii) do not impair directly or indirectly the ability of the Agent to realize on or obtain the full benefit of the Collateral); 
 (e) is the legal, valid and binding payment obligation of the Major Credit Card Obligor specified in the Major Credit Card Program
Agreement related thereto, enforceable against such obligor in accordance with its terms, subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general application relating to or affecting creditors’ rights and to
general equitable principles; 
 (f) constitutes an “account” or a “general intangible” under Article 9 of
the UCC; 
 (g) is payable in Dollars or, with respect to the Canadian Subsidiaries, Canadian dollars; 
 (h) is subject to a first priority and perfected security interest in favor of the Agent for the benefit of the Agent and the Lenders and
is subject to no other Liens (other than the Liens described in clauses (a), (d), (g), (i) or (m) of the definition of Permitted Liens provided that such Permitted Liens (i) are junior in priority (unless such Permitted Liens
have priority by operation of applicable law and except for Permitted Liens under clause (m) of the definition thereof) to the Agent’s Liens or subject to Reserves and (ii) do not impair directly or indirectly the ability of the Agent
to realize on or obtain the full benefit of the Collateral); and 
 (i) complies with each of the representations, warranties,
covenants and agreements contained in Section 6.8 relating thereto. 
 “Environmental Claims” means all claims,
however asserted, by any Governmental Authority or other Person alleging potential liability or responsibility for violation of any Environmental Law, or for a Release or injury to the environment. 
  

 -13- 

 “Environmental Compliance Reserve” means any reserve which the Agent establishes in its
reasonable discretion after prior written notice to the Borrower from time to time for amounts that are reasonably likely to be expended by any of the Loan Parties in order for such Loan Party and its operations and property (a) to comply with
any notice from a Governmental Authority asserting material non-compliance with Environmental Laws, or (b) to correct any such material non-compliance identified in a report delivered to the Agent and the Lenders pursuant to Section 9.6.

 “Environmental Laws” means all federal, state, or local laws, statutes, common law duties, rules, regulations, ordinances
and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case relating to environmental, health, safety and land use matters.

 “Environmental Lien” means a Lien in favor of any Governmental Authority for (1) any liability under any
Environmental Laws, or (2) damages arising from, or costs incurred by such Governmental Authority in response to a Release or threatened Release of a Contaminant into the environment. 
 “Equipment” means, with respect to any Loan Party, all of such Loan Party’s now owned and hereafter acquired machinery, equipment,
furniture, furnishings, fixtures, and other tangible personal property (except Inventory), including embedded software, motor vehicles with respect to which a certificate of title has been issued, aircraft, dies, tools, jigs, molds and office
equipment, as well as all of such types of property leased by such Loan Party and all of such Loan Party’s rights and interests with respect thereto under such leases (including, without limitation, options to purchase); together with all
present and future additions and accessions thereto, replacements therefor, component and auxiliary parts and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions,
warranties and rights with respect thereto; wherever any of the foregoing is located. 
 “ERISA” means the Employee
Retirement Income Security Act of 1974, and regulations promulgated thereunder, as amended from time to time. 
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with any Loan Party is treated as a single employer under Section 414 of the Code or Section 4001(a)(14) of ERISA. 
 “ERISA Event” means, other than with respect to liabilities under or relating to the termination of the Borrower Pension Plan described
on Schedule 8.20 hereto, (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by any Loan Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001 (a)(2) of ERISA) or a cessation of operations which is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by any Loan Party or any ERISA
Affiliate from a Multiemployer Plan or other applicable legislation or notification that a Multiemployer Plan or Pension Plan regulated or governed by other applicable legislation is in reorganization; (d) the filing of a notice of intent to
terminate or the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA or other law where such termination or amendment would reasonably be 

  

 -14- 

 
expected to result in an unsatisfied liability of any Loan Party or ERISA Affiliate to the Pension Plan or PBGC, or the commencement of proceedings by the
PBGC or other applicable Governmental Authority to terminate a Pension Plan or Multiemployer Plan; (e) the occurrence of an event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA or other
law for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA or other applicable legislation, upon any Loan Party or any ERISA Affiliate. 
 “Event of
Default” has the meaning specified in Section 11.1. 
 “Exchange Act” means the Securities and Exchange
Act of 1934, and regulations promulgated thereunder. 
 “Existing Letters of Credit” means each of the letters of credit
issued under the Pre-Petition Loan Agreement prior to the date hereof and set forth on Schedule 2.3 hereto. 
 “FSAC”
means Financial Services Acceptance Corp. 
 “FDIC” means the Federal Deposit Insurance Corporation, and any Governmental
Authority succeeding to any of its principal functions. 
 “Federal Funds Rate” means, for any day, the rate per annum
(rounded upward, if necessary, to a whole multiple of 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if
necessary, to a whole multiple of 1/100 of 1%) charged to the Bank on such day on such transactions as determined by the Agent. 
 “Federal Reserve Board” means the Board of Governors of the Federal Reserve System or any successor thereto. 
 “Final Borrowing Order” means an order of the Bankruptcy Court which order shall be substantially similar to the Interim Borrowing Order and otherwise reasonably acceptable to the Agent and the Co-Collateral Agents, which,
among other matters but not by way of limitation, authorizes the Loan Parties to obtain credit, incur (or guaranty) the Obligations, grant Liens under this Agreement and the other Loan Documents, as the case may be, provides for the super priority
of the Agent’s and the Lenders’ claims, to the extent contemplated hereby, and grants the lenders under the Pre-Petition Loan Agreement adequate protection of their interests, which order is a Final Order. 
 “Final Order” means an order or judgment of the Bankruptcy Court as entered on the docket of the Clerk of the Bankruptcy Court that has
not been reversed, stayed, modified or amended and as to which the time to appeal, petition for certiorari, reargue or seek rehearing or 

  

 -15- 

 
reconsideration has expired or been waived by the Bankruptcy Court and no proceeding for certiorari, reargument, rehearing or reconsideration is pending or
if an appeal, petition for certiorari, reargument, rehearing or reconsideration has been sought, the order or judgment of the Bankruptcy Court has been affirmed by the highest court to which the order was appealed, from which the reargument,
rehearing or reconsideration was sought, or certiorari has been denied and the time to take any further appeal or to seek certiorari or further reargument, rehearing or reconsideration has expired. 
 “Financial Statements” means, any financial statements required to be given to the Lenders or the Agent pursuant to this Agreement.

 “Fiscal Year” means any period of 52 or 53 consecutive weeks which historically make up the fiscal year of Holdings and
its Subsidiaries. 
 “Fixed Assets” means, with respect to any Loan Party, Equipment and Real Estate of such Loan Party.

 “Funding Date” means the date on which a Borrowing occurs. 
 “GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S.
accounting profession). 
 “General Intangibles” means, with respect to any Loan Party, all of such Loan Party’s now
owned or hereafter acquired general intangibles (as defined in the UCC), choses in action and causes of action and all other intangible personal property of such Loan Party of every kind and nature (other than Accounts), including, without
limitation, all contract rights, payment intangibles, Proprietary Rights, corporate or other business records, inventions, designs, blueprints, plans, specifications, patents, patent applications, trademarks, service marks, trade names, trade
secrets, goodwill, copyrights, computer software, customer lists, registrations, licenses, franchises, tax refund claims, any funds which may become due to such Loan Party in connection with the termination of any Plan or other employee benefit plan
or any rights thereto and any other amounts payable to such Loan Party from any Plan or other employee benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds thereof,
property, casualty or any similar type of insurance and any proceeds thereof, proceeds of insurance covering the lives of key employees on which such Loan Party is beneficiary, rights to receive dividends, distributions, cash, Instruments and other
property in respect of or in exchange for pledged equity interests or Investment Property and any letter of credit, guarantee, claim, security interest or other security held by or granted to such Loan Party, letter of credit, guarantee, claim,
security interest or other security held by or granted to such Loan Party. 
 “Governmental Authority” means any nation or
government, any state, province, municipality or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or 

  

 -16- 

 
administrative functions of or pertaining to government, any corporation or other entity owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing and any department, agency, board, commission, tribunal, committee or instrumentality of any of the foregoing. 
 “Guarantors” has the meaning specified in the introductory paragraph hereof. 
 “Guaranty” or
“Guarantee” means, with respect to any Person, all obligations of such Person which in any manner directly or indirectly guarantee or assure, or in effect guarantee or assure, the payment or performance of any indebtedness, dividend
or other obligations of any other Person (the “guaranteed obligations”), or assure or in effect assure the holder of the guaranteed obligations against loss in respect thereof, including, without limitation, any such obligations
incurred through an agreement, contingent or otherwise: (a) to purchase the guaranteed obligations or any property constituting security therefor; (b) to advance or supply funds for the purchase or payment of the guaranteed obligations or
to maintain a working capital or other balance sheet condition; or (c) to lease property or to purchase any debt or equity securities or other property or services. 
 “Hedge Agreement” means any and all transactions, agreements or documents now existing or hereafter entered into, which provides for an interest rate, credit, commodity or equity swap, cap, floor,
collar, forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging any Loan Party’s exposure to
fluctuations in interest or exchange rates, loan, credit exchange, security or currency valuations or commodity prices. 
 “Independent Consultants” means each of Peter J. Solomon and Company and Alvarez and Marsal Inc. (or another independent third party consultant reasonably acceptable to the Agent and the Required Lenders). 
 “Initial Budget” means an initial cash flow projection for the first eleven weeks following the Closing Date attached hereto as
Schedule 1.2. 
 “Initial Order” means an order issued and entered by the Canadian Bankruptcy Court, in form and with
provisions as may be reasonably acceptable to the Agent and the Lenders or on record at the hearing with respect to such order in the Canadian Case, which shall stay all proceedings against the Canadian Subsidiaries and which shall, inter alia,
approve the Canadian Subsidiaries’ entering into and performing their respective obligations under the Intercompany Loan Documents. 
 “Instruments” means, with respect to any Loan Party, all instruments as such term is defined in the UCC, now owned or hereafter acquired by such Loan Party. 
 “Intercompany Accounts” means all assets and liabilities, however arising, which are due to any Loan Party from, which are due from any
Loan Party to, or which otherwise arise from any transaction by any Loan Party with, any other Loan Party or any Affiliate of any Loan Party. 
 “Intercompany Loan Documents” means all documentation satisfactory to the Agent and the Co-Collateral Agents in their sole discretion evidencing, securing, or otherwise relating to the 

  

 -17- 

 
intercompany loan arrangement among the Borrower, as lender, and the Canadian Subsidiaries, as borrowers, which arrangement shall include, without
limitation, a valid and existing and first priority perfected Lien (subject to Permitted Liens having priority by operation of applicable law) of the Borrower in the assets of the Canadian Subsidiaries to be included in the Borrowing Base.

 “Intercreditor Agreement” means the Intercreditor Agreement between the Agent and the agent under the Term Debt dated as
of June 21, 2005, as amended and in effect from time to time. 
 “Interest Rate” means each or any of the interest
rates, including the Default Rate, set forth in Section 3.1. 
 “Interim Borrowing Order” means an order of the
Bankruptcy Court which order shall be in the form of, and containing the provisions set forth in, Exhibit D (or such other form and provisions as may be reasonably acceptable to the Agent and the Lenders or on record at the hearing with
respect to such order in the Case) which, among other matters but not by way of limitation, authorizes, on an interim basis, the Loan Parties to obtain credit, incur (or guaranty) the Obligations, grant Liens under this Agreement and the other Loan
Documents, as the case may be, provides for the super priority of the Agent’s and the Lenders’ claims, to the extent contemplated hereby, and grants the lenders under the Pre-Petition Loan Agreement adequate protection of their interests.

 “Inventory” means, with respect to any Loan Party, or, for purposes of determining the Borrowing Base, any Canadian
Subsidiary, all of such Loan Party’s or Canadian Subsidiary’s, as applicable, now owned and hereafter acquired inventory (as defined in the UCC), goods and merchandise, wherever located, to be furnished under any contract of service or
held for sale or lease, all returned goods, raw materials, work in process, finished goods (including embedded software), other materials and supplies of any kind, nature or description which are used or consumed in such Loan Party’s or
Canadian Subsidiary’s, as applicable, business or used in connection with the packing, shipping, advertising, selling or finishing of such goods, merchandise and such other personal property, and all documents of title or other Documents
representing them. 
 “Inventory Appraisal” means each Inventory Appraisal delivered pursuant to Section 15.19,
as updated pursuant to such Section. 
 “Investment Property” means, with respect to any Loan Party, all of such Loan
Party’s right, title and interest in and to any and all: (a) securities whether certificated or uncertificated; (b) securities entitlements; (c) securities accounts; (d) commodity contracts; or (e) commodity accounts.

 “IRS” means the Internal Revenue Service and any Governmental Authority succeeding to any of its principal functions
under the Code. 
 “LC Inventory Availability” means, as of any date, an amount equal to (i) with respect to the
Borrower 85% of the Orderly Liquidation Percentage for Inventory of Borrower on such date, and (ii) with respect to the Canadian Subsidiaries, such advance rate as may be determined 

  

 -18- 

 
by the Agent and the Co-Collateral Agents in their sole discretion, multiplied by the Orderly Liquidation Percentage for Inventory of the Canadian
Subsidiaries on such date, in each case multiplied by the undrawn amount of all Letters of Credit issued by the Bank then outstanding which will expire in 90 days (or such longer period as the Agent and the Co-Collateral Agents shall agree in their
sole discretion) or less and which are issued to secure the payment by Borrower or a Canadian Subsidiary, as applicable, of the purchase of non-U.S. Inventory by Borrower or non-Canadian Inventory by such Canadian Subsidiary, as applicable, in the
ordinary course of its business, as to which Inventory a customs broker agency agreement, reasonably satisfactory to the Agent, is in effect and which Inventory is not included in Eligible Inventory or Eligible In Transit Inventory, but would
otherwise constitute Eligible Inventory upon delivery of such Inventory to the Borrower or the Canadian Subsidiaries, as applicable. 
 “Lender” and “Lenders” have the meanings specified in the introductory paragraph hereof and shall include the Agent to the extent of any Agent Advance outstanding and the Bank to the extent of any Bank Loan
outstanding; provided that no such Agent Advance or Bank Loan shall be taken into account in determining any Lender’s Pro Rata Share. 
 “Letter of Credit” means a letter of credit issued or caused to be issued for the account of the Borrower pursuant to Section 2.3, and includes, without limitation, the Existing Letters of Credit. 
 “Letter of Credit Fee” has the meaning specified in Section 3.5. 
 “Letter of Credit Issuer” means the Bank, any affiliate of the Bank, any other Lender or any affiliate of any such other Lender, in each
instance, that issues any Letter of Credit pursuant to this Agreement. 
 “Letter of Credit Rights” means, with respect to
any Loan Party, all of such Loan Party’s now owned or hereafter acquired letter of credit rights, as defined in the UCC. 
 “LIBO Rate” means the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”) for a 30 day interest period (“Interest Period”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “LIBO Rate” shall be the rate per annum determined by the Agent to be the rate at which
deposits in Dollars for delivery on the first day of a 30 day interest period in same day funds in the approximate amount of the Loan being made by the Bank and with a term equivalent to such 30 day interest period would be offered by the
Bank’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such 30 day interest period. 
 “Lien” means: (a) any interest in property securing an obligation owed to, or a claim by, a Person other than the owner of the
property, whether such interest is based on the common law, statute, or contract, and including, without limitation, a security interest, charge, claim, or lien 

  

 -19- 

 
arising from a mortgage, deed of trust, deemed trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement, agreement, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes; (b) to the extent not included under clause (a), any reservation, exception, encroachment, easement, right-of-way, covenant, condition, restriction,
lease or other title exception or encumbrance affecting property; and (c) any contingent or other agreement to provide any of the foregoing. 
 “LILO Tranche” has the meaning specified in Section 2.5(a). 
 “LILO Tranche Effective Date”
has the meaning specified in Section 2.5(d). 
 “Loan Account’ means the loan account of the Borrower, which account
shall be maintained by the Agent. 
 “Loan Documents” means this Agreement, the Borrowing Base Certificates, the Collateral
Assignment of Intercompany Loan Documents, any Hedge Agreement between a Loan Party and a Lender or an affiliate of a Lender, the DIP Orders, and any other agreements, instruments, and documents heretofore, now or hereafter evidencing, securing,
guaranteeing or otherwise relating to the Obligations, the Collateral, or any other aspect of the transactions contemplated by this Agreement, excluding, for the avoidance of doubt, any Pre-Petition Loan Documents. 
 “Loan Parties” means a collective reference to the Borrower and the Guarantors, and “Loan Party” means any one of them.

 “Loans” means, collectively, all loans and advances provided for in Article 2. 
 “Major Credit Card Account” means each account established by or with any of the Major Credit Card Obligors under any Major Credit Card
Program Agreement. 
 “Major Credit Card Obligors” means JPMorgan Chase Bank, Chase Merchant Services, L.L.C., BA Merchant
Services, Inc., Novus Services, Inc., Discover Business Services, Discover Financial Services, Inc., American Express Travel Related Services Company, Inc., World Financial Network National Bank, each successor thereto and any other financial
institution designated by the Borrower or any Canadian Subsidiary, as applicable, in writing and reasonably acceptable to the Agent, serving in a similar capacity. 
 “Major Credit Card Program Agreements” means each of the agreements described on Schedule 1.1(b) hereto, any amendments or supplements thereto and any other agreement, specified by the Borrower
or any Canadian Subsidiary, as applicable, in writing and reasonably acceptable to the Agent, providing for the reimbursement of the Borrower or any Canadian Subsidiary, as applicable, for any goods or services purchased from the Borrower or any
Canadian Subsidiary, as applicable, with any credit, cash or similar card bearing any of a Visa, Plus, MasterCard, Cirrus, Maestro, Discover, Optima, World Financial Network National Bank or American Express logo. 
 “Major Credit Card Receivables” means all amounts due to the Borrower or any Canadian Subsidiary, as applicable, pursuant to a Major
Credit Card Program Agreement with respect to sales by the Borrower or any Canadian Subsidiary, as applicable, of merchandise or services to its retail customers. 
  

 -20- 

 “Margin Stock” means “margin stock” as such term is defined in Regulation T, U
or X of the Federal Reserve Board. 
 “Material Adverse Effect” means, other than as a result of the commencement, pendency
or continuation of the Case, (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or condition (financial or otherwise) of (i) the Borrower, or (ii) Holdings and its Subsidiaries
taken as a whole or (iii) any substantial portion of the Collateral; (b) a material impairment of the ability of the Loan Parties to perform under any Loan Document and to avoid any Event of Default; or (c) a material adverse effect
upon the legality, validity, binding effect or enforceability against the Loan Parties of any Loan Document. 
 “Maximum Revolver
Amount” means (i) until entry of the Final Borrowing Order, $90,000,000, and (ii) upon entry of the Final Borrowing Order, $100,000,000, as such amount may be reduced from time to time in accordance with the provisions of
Section 4.3. 
 “Multiemployer Plan” means a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately preceding five (5) years contributed to by any Loan Party or any ERISA Affiliate. 
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of any Loan Party and at least one trade or business other than the Loan Party or (b) was so maintained and in respect of which any Loan Party could reasonably be expected to have liability under Section 4064 or 4069 of ERISA in
the event such plan has been or were to be terminated. 
 “Net Amount of Eligible Major Credit Card Receivables” means, at
any time, the gross amount of Eligible Major Credit Card Receivables less sales, excise or similar taxes, and less returns, discounts, claims, credits, allowances, accrued rebates, offsets, deductions, counterclaims, disputes and other defenses of
any nature at any time issued, owing, granted, outstanding, available or claimed and less all finance charges, late payment fees, annual fees (if any), credit insurance premiums, returned check charges and any other fees or charges. 
 “Notice of Borrowing” has the meaning specified in Section 2.2(b). 
 “Obligations” means all present and future loans, advances, liabilities, obligations, covenants, duties, and debts owing by any Loan
Party to the Agent and/or any Lender (or an affiliate of any Lender), arising under or pursuant to this Agreement or any of the other Loan Documents, whether or not evidenced by any note, or other instrument or document, whether arising from an
extension of credit, opening of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, whether direct or indirect, absolute or contingent, due or to become due, primary or secondary, as principal or guarantor, and including,
without limitation, all principal, interest, charges, expenses, fees, attorneys’ fees, filing fees and any other sums chargeable to any Loan Party hereunder or under any of the other Loan Documents. “Obligations” includes,
without limitation, (a) all Revolving Loans and all debts, liabilities, and obligations now or hereafter owing from any Loan Party to the Agent and/or any Lender under or in connection with the Revolving Loans or the Letters of Credit and
(b) all debts, liabilities and obligations now or hereafter arising from or in connection with Bank Products. 
  

 -21- 

 “Orderly Liquidation Percentage” means, with respect to Inventory of the Borrower or any
Canadian Subsidiary, as applicable, at any time, the ratio (expressed as a percentage) computed by dividing (i) the net recovery value of the Inventory of the Borrower or any Canadian Subsidiary, as applicable, (which in any event shall give
effect to all costs and expenses of liquidation) as set forth in the Inventory Appraisal most recently delivered pursuant to Section 15.19, as updated pursuant to such Section by (ii) the cost (calculated in accordance with the
Borrower’s or a Canadian Subsidiary’s, as applicable, historical practices) of the Inventory of the Borrower or any Canadian Subsidiary, as applicable, as set forth in the corresponding Inventory Appraisal (or update thereof). 

“Orderly Liquidation Value” means, with respect to the Eligible Inventory of the Borrower or any Canadian Subsidiary, as applicable,
at any time, an amount equal to the product of (i) the value of the Eligible Inventory of the Borrower or any Canadian Subsidiary, as applicable, at such time valued at the cost (calculated in accordance with the Borrower’s or the Canadian
Subsidiary’s, as applicable, historical practices), multiplied by (ii) the Orderly Liquidation Percentage for the Borrower or any Canadian Subsidiary, as applicable, in effect at such time. 
 “Other Taxes” means any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
which arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to this Agreement or any other Loan Documents. 
 “Participating Lender” means any Person who shall have been granted the right by any Lender to participate in the financing provided by such Lender under this Agreement, and who shall have entered
into a participation agreement in form and substance satisfactory to such Lender. 
 “Payment Account” means each blocked
bank account established pursuant to Section 6.8, to which the funds of a Loan Party (including, without limitation, proceeds of Accounts and other Collateral) are deposited or credited. 
 “Payment Intangibles” means, with respect to any Loan Party, all of such Loan Party’s now owned or hereafter acquired payments
intangibles, as defined in the UCC. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any Governmental Authority
succeeding to the functions thereof. 
 “Pending Revolving Loans” means at any time, the aggregate principal amount of all
Revolving Loans requested by the Borrower in any Notice(s) of Borrowing received by the Agent which have not yet been advanced. 
 “Pension Plan” means a pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA (other than a Multiemployer Plan), including the Borrower Pension Plan, or a defined benefit plan maintained in any
non-U.S. jurisdiction, in each case which any Loan Party 

  

 -22- 

 
sponsors, maintains, or to which it makes, is making, or is obligated to make contributions, or in the case of a Multiple Employer Plan has made
contributions at any time during the immediately preceding five (5) plan years. 
 “Permitted Liens” means the
following Liens: 
 (a) Liens for taxes and assessments not delinquent encumbering assets or properties of any Loan Party or
statutory Liens for taxes encumbering assets or properties of any Loan Party, provided that the payment of such taxes which are due and payable is being contested in good faith and by appropriate proceedings diligently pursued and as to which
adequate financial reserves have been established on the relevant Loan Party’s books and records and a stay of enforcement of any such Lien is in effect, and provided further that nothing contained herein shall limit or impair the
Agent’s right to establish Reserves on account of Liens encumbering Accounts, Inventory, or proceeds thereof that are prior to the Agent’s Liens therein; 
 (b) the Agent’s Liens; 
 (c) Liens consisting of deposits made in the ordinary course of business in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance, social security and other
similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of Debt) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the
repayment of Debt) or to secure statutory obligations (other than liens arising under ERISA or Environmental Liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds (including, without limitation, customs bonds,
utility bonds and lease bonds) in the ordinary course of business; 
 (d) Liens imposed by law securing the claims or demands
(in each case, arising in the ordinary course of business) of materialmen, mechanics, carriers, warehousemen, landlords and other like Persons, provided that the payment of such claims or demands are not overdue by more than forty-five
(45) days or are being contested in good faith and by appropriate proceedings diligently pursued and for which adequate reserves have been provided in accordance with GAAP and, in each instance, a stay of enforcement of any such Lien which
arises from the nonpayment of any such claims or demands is in effect and if any such Lien arises from the nonpayment of such claims or demand when due, such claims or demands are not material in the aggregate; 
 (e) reservations, exceptions, encroachments, easements, rights of way, covenants running with the land, and other similar title exceptions
or encumbrances affecting any Real Estate; provided that they do not in the aggregate materially detract from the value of any Real Estate or materially interfere with its use in the ordinary conduct of any Loan Party’s business;

 (f) Liens arising from judgments and attachments in connection with court proceedings provided that the attachment or
enforcement of such Liens would not result 

  

 -23- 

 
in an Event of Default hereunder and such Liens are being contested in good faith by appropriate proceedings, adequate reserves have been set aside and no
material property or asset is subject to a material risk of loss or forfeiture and the claims in respect of such Liens are fully covered by insurance (subject to ordinary and customary deductibles) and a stay of execution pending appeal or
proceeding for review is in effect; 
 (g) Liens described on Schedule 9.16 hereto and Liens granted under the
Pre-Petition Loan Documents; 
 (h) purchase money Liens in Fixed Assets securing Debt permitted under
Section 9.11(d) (including the interest of a lessor under a Capital Lease and purchase money Liens to which any capital property is subject at the time of acquisition thereof, and limited in each case to the capital property purchased
with the proceeds thereof or subject to such Capital Lease); 
 (i) Liens securing Term Debt permitted pursuant to
Section 9.11(e) hereof and Guaranties thereof permitted pursuant to Section 9.10(i) hereof; 
 (j) interests of
licensees in trademarks and copyrights; 
 (k) extensions, renewals or replacements of any Liens referred to in clauses (g),
(h) and (i) of this definition; provided, that the principal amount of the obligations secured thereby is not increased (other than as a result of payment of accrued and unpaid interest, fees and expenses) and that any such
extension, renewal or replacement is limited to the property originally encumbered thereby; 
 (l) Permitted Prior
Encumbrances (as defined in the DIP Orders); 
 (m) intercompany Liens granted by the Canadian Subsidiaries to the Borrower;
provided that such Liens are collaterally assigned to the Agent, and Liens constituting the Administration Charge and the Directors’ Charge in the Canadian Case; and 
 (n) Liens granted by the Bankruptcy Court securing any liability of any Loan Party under or relating to the Borrower Pension Plan or the
termination of the Borrower Pension Plan. 
 “Person” means any individual, sole proprietorship, partnership, limited
liability company, joint venture, trust, unincorporated organization, association, corporation, Governmental Authority, or any other entity. 
 “Petition Date” means June 17, 2009. 
 “Plan” means an employee benefit plan (as defined in
Section 3(3) of ERISA (other than a Multiemployer Plan) or the applicable laws of any other jurisdiction) which any Loan Party sponsors or maintains or to which such Loan Party makes, is making, or is obligated to make contributions and
includes any Pension Plan. 
  

 -24- 

 “Plan of Reorganization” means a plan (within the meaning of the Bankruptcy Code)
proposed by the Borrower for, among others, the Borrower which is filed with and confirmed by a Final Order of the Bankruptcy Court. 
 “Pre-Petition Liabilities” means the “Obligations”, as defined in the Pre-Petition Loan Agreement, but excluding all Existing Letters of Credit so long as and to the extent that such Existing Letters of Credit are
deemed to be Obligations hereunder pursuant to the DIP Orders. 
 “Pre-Petition Loan Agreement” means that certain Loan and
Security Agreement dated as of June 21, 2005 entered into among the Borrower, the Guarantors, the Agent and the Lenders (as each of those terms is defined therein), together with all instruments, documents and agreements executed or delivered
in connection therewith, in each case, as amended to the date hereof. 
 “Pre-Petition Loan Documents” means the “Loan
Documents” as defined in the Pre-Petition Loan Agreement. 
 “Proceeds” as defined in the UCC. 
 “Professional Fees and Expenses” means, subject to any limitations contained in the DIP Orders, (a) allowed administrative expenses
payable pursuant to 28 U.S.C. § 1930(a)(6), and (b) professional fees of, and expenses incurred by, attorneys, accountants, financial advisors, consultants and other professionals retained by the Loan Parties or the Creditors’
Committee or other statutory committee appointed in the Case pursuant to §§327 and 1103 of the Bankruptcy Code. 
 “Pro
Rata Share” means, with respect to a Lender, a fraction (expressed as a percentage), the numerator of which is the amount of such Lender’s Commitment and the denominator of which is the sum of the amounts of all of the Lenders’
Commitments, or if no Commitments are outstanding, a fraction (expressed as a percentage), the numerator of which is the amount of Obligations (other than any Obligations under Bank Products) owed to such Lender and the denominator of which is the
aggregate amount of the Obligations (other than any Obligations under Bank Products) owed to the Lenders, in each case after giving effect to a Lender’s participation in Bank Loans and Agent Advances. 
 “Proprietary Rights” means, with respect to any Loan Party, all of such Loan Party’s now owned and hereafter arising or acquired:
licenses, franchises, permits, patents, patent rights, industrial designs, copyrights, works which are the subject matter of copyrights, trademarks, service marks, trade names, trade styles, patent, industrial design, trademark and service mark
applications, and all licenses and rights related to any of the foregoing, including, without limitation, those patents, industrial designs, trademarks, service marks, trade names and copyrights set forth on Schedule 8.12 hereto, and all
other rights under any of the foregoing, all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the foregoing, and all rights to sue for past, present and future infringement of any of the foregoing.

 “Ratable Collateral” means the Collateral subject to a ratable first priority Lien in favor of the lenders under the
Pre-Petition Loan Documents and the lenders of the Term Debt, in accordance with Section 2.2(c) of the Intercreditor Agreement. 
  

 -25- 

 “Real Estate” means, with respect to any Loan Party, all of such Loan Party’s now
or hereafter owned or leased estates in real property, including, without limitation, all fees, leaseholds and future interests, together with all of such Loan Party’s now or hereafter owned or leased interests in the improvements thereon, the
fixtures attached thereto and the easements appurtenant thereto. 
 “Release” means a release, spill, emission, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration of a Contaminant into the indoor or outdoor environment or into or out of any Real Estate or other property, including the movement of Contaminants through or in the
air, soil, surface water, groundwater or Real Estate or other property. 
 “Reportable Event” means, with respect to a
Pension Plan subject to Title IV of ERISA, any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder, other than any such event for which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC. 
 “Reported Fee Accruals” means the amount of Professional Fees and Expenses which have been incurred,
accrued and invoiced (but remain unpaid) prior to such time as the Agent notifies the Borrower of the occurrence of an Event of Default and which have been reported to the Agent and the Co-Collateral Agents in accordance with the provisions of
Section 6.6(k) hereof. Any Professional Fees and Expenses which have been incurred, accrued and invoiced (and remain unpaid) but are not reported to the Agent and the Co-Collateral Agents in accordance with the provisions of Section 6.6(k)
hereof shall be conclusively presumed to have been paid and shall not constitute “Reported Fee Accruals.” 
 “Required Lenders” means, at any time, (a) subject to clause (b) below, Lenders whose Pro Rata Shares aggregate 66 2/3% or more of the Commitments or, if no Commitments shall then be in effect, Lenders who hold 66 2/3% or more of the aggregate principal amount of the Loans then outstanding, or (b) if any Lender as of the Closing Date has on or before such time assigned any portion of its Commitment to any Lender who was not a Lender as of the
Closing Date, Lenders whose Pro Rata Shares aggregate more than 50% of the Commitments or, if no Commitments shall then be in effect, Lenders who hold more than 50% of the aggregate principal amount of the Loans then outstanding; provided
that for purposes of this definition, the Commitments of any Lenders with respect to the LILO Tranche shall not be counted for purposes of determining the percentages set forth above. 
 “Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or of a Governmental Authority, in each case applicable to or binding upon the Person or any of its property or to which the Person or any of its property is subject. 
 “Reserves” means reserves that limit the availability of credit hereunder, consisting of reserves against the Borrowing Base established
by the Agent (or the Co-Collateral Agents, as set forth below) from time to time in the Agent’s reasonable credit judgment exercised in good faith. Without limiting the generality of the foregoing, and without duplication of any of the reserves
taken into account in determining “Orderly Liquidation Value”, the following reserves shall be deemed to be a reasonable exercise of the Agent’s credit judgment: (a) Bank Product 

  

 -26- 

 
Reserves, (b) a reserve for accrued, unpaid interest on the Obligations, (c) reserves for pre-Petition Date past due rent and for two months rent
for all of the Borrower’s or Canadian Subsidiaries’, as applicable, leased locations at which Revolving Lender Priority Collateral is located (i) in which the Borrower or a Canadian Subsidiary, as applicable, has granted a contractual
Lien to the lessor and (ii) in the states of Virginia, Pennsylvania, Washington, the province of Quebec and other states or provinces in which applicable law provides a landlord with a Lien for unpaid rent having priority over the Lien of the
Agent, (d) Inventory shrinkage and Inventory returns and anticipated returns and markdowns, (e) Environmental Compliance Reserves, (f) past due customs charges (including landing costs and freight accruals) to the extent such charges
have not been bonded or a cash escrow account has not been established to pay such amounts, (g) guest fulfillment services such as presales and special orders, (h) past due warehousemen’s or bailees’ charges to the extent such
charges have not been bonded or a cash escrow account has not been established to pay such amounts, (i) reserves in an amount equal to fifty (50%) percent of the face amount of outstanding gift certificates, to be calculated on the Closing
Date with respect to outstanding gift certificates issued on and after January 1, 2006, and thereafter, on a rolling forty-one (41) month basis, (j) reserves for outstanding Taxes and other governmental charges, including, without
limitation, ad valorem, real estate, personal property, sales, and other Taxes which may have priority over the interests of the Agent in the Collateral, (k) reserves for salaries, wages and benefits due to employees of the Borrower or the
Canadian Subsidiaries, as applicable, (l) reserves for reasonably anticipated changes in the Orderly Liquidation Value of Eligible Inventory between appraisals, (m) reserves with respect to Inventory of the Canadian Subsidiaries subject to
rights of suppliers under Section 81.1 of the Bankruptcy and Insolvency Act (Canada), as amended or replaced from time to time, to the extent such Inventory is included in the calculation of the Borrowing Base, (n) unpaid
liabilities owing under the Borrower Pension Plan or any other Pension Plan if the Agent or any Co-Collateral Agent determines, in their sole discretion, that there is a reasonable likelihood that any claims with respect to such liabilities could
have priority over the Obligations, and (o) reserves for other claims against the Borrower or the Canadian Subsidiaries that the Agent reasonably believes could have priority over the Obligations, including the Administration Charge.
Notwithstanding the foregoing, the amount of any Reserve relating to the assets or operations of the Canadian Subsidiaries shall not exceed the available amount under clauses (e) through (h) of the Borrowing Base. Upon the determination by
any Co-Collateral Agent that a Reserve should be established or modified, such Co-Collateral Agent shall notify the Agent in writing and the Agent shall thereupon establish or modify such Reserve, subject to the provisions of Section 14.18 of
this Agreement. 
 “Responsible Officer” means the chief executive officer or the president of the Borrower, as appropriate,
or any other officer having substantially the same authority and responsibility; or, with respect to compliance with financial covenants and the preparation of the Borrowing Base Certificate, the chief financial officer, chief accounting officer,
the controller or the treasurer of Borrower, or any other officer having substantially the same authority and responsibility. 
 “Restricted Investment” means, as to any Loan Party, any acquisition of property by such Loan Party in exchange for cash or other property, whether in the form of an acquisition of stock, debt, or other indebtedness or
obligation, or the purchase or acquisition of any other property, or a loan, advance, capital contribution, or subscription, except the following: (a) acquisitions of Equipment to be used in the business of such Loan Party;
(b) acquisitions of 

  

 -27- 

 
Inventory in the ordinary course of business of such Loan Party, (c) acquisitions of current assets acquired in the ordinary course of business of such
Loan Party; (d) direct obligations of the United States of America, or any agency thereof, or obligations guaranteed by the United States of America, provided that such obligations mature within 30 days from the date of acquisition
thereof, (e) acquisitions of certificates of deposit maturing within 30 days from the date of acquisition, bankers’ acceptances, Eurodollar bank deposits, or overnight bank deposits, in each case issued by, created by, or with a bank or
trust company organized under the laws of the United States of America or any state thereof having capital and surplus aggregating at least $100,000,000; (f) acquisitions of commercial paper given a rating of “A2” or better by
Standard & Poor’s Corporation or “P2” or better by Moody’s Investors Service, Inc. and maturing not more than 30 days from the date of creation thereof, (g) shares of money market mutual or similar funds which
invest substantially all their assets in assets satisfying the requirements of clauses (d) through (f) of this definition; (h) intercompany loans to and investments in other Loan Parties, so long as any such loan or investment is
(i) useful for the ordinary conduct of the recipient’s business, (ii) made in the ordinary course of business and (iii) consistent with past practices; (j) existing loans and investments in Canadian Subsidiaries outstanding
on the Closing Date not to exceed $6,700,000 in the aggregate; and (k) loans to and investments in Canadian Subsidiaries after the Closing Date not to exceed $7,500,000 in the aggregate outstanding at any time during the term of this Agreement.

 “Revolving Lender Priority Collateral” has the meaning set forth in the Intercreditor Agreement. 
 “Revolving Loans” has the meaning specified in Section 2.2 and includes each Agent Advance and Bank Loan. 
 “SAC” means Spiegel Acceptance Corp. 
 “Settlement” and “Settlement Date” have the meanings specified in Section 2.2(j)(i). 
 “Specified Bankruptcy Recoveries” has the meaning given to such term in the DIP Orders. 
 “Stated Termination Date” means January 31, 2010. 
 “Structuring Fee” has the meaning
specified in Section 3.7. 
 “Subsidiary” of a Person means any corporation, association, partnership, limited
liability company, joint venture or other business entity of which more than fifty percent (50%) of the voting stock or other equity interests (in the case of Persons other than corporations), is owned or controlled directly or indirectly by
the Person, or one or more of the Subsidiaries of the Person, or a combination thereof. Unless the context otherwise clearly requires, references to a “Subsidiary” refer to a Subsidiary of the Borrower. 
 “Supporting Obligations” means all supporting obligations as such term is defined in the UCC, including letters of credit and guaranties
issued in support of Accounts, Chattel Paper, Documents, General Intangibles, Instruments or Investment Property. 
  

 -28- 

 “Taxes” means any and all present or future taxes, levies, imposts, deductions, charges
or withholdings, and all liabilities with respect thereto, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority. 
 “Term Debt” means the Debt due or to become due under that certain Amended and Restated Term Loan Agreement dated as of June 21, 2005 and as amended and restated on April 4, 2007 among
Wilmington Trust FSB (as successor by assignment to JPMorgan Chase Bank, N.A.), as administrative agent, the lenders party thereto, the Borrower, and Holdings, together with all other documents relating thereto, including, without limitation, a
certain Amended and Restated Guarantee and Collateral Agreement dated as of April 4, 2007 (as each may be amended, modified, supplemented, extended, restated, renewed or replaced from time to time in accordance with the terms hereof and the
Intercreditor Agreement, including pursuant to the First Amendment dated as of April 2, 2009). 
 “Termination Date”
means the earliest to occur of (i) thirty (30) days following the entry of the Interim Borrowing Order, unless the Final Borrowing Order has been entered on or before such date, (ii) the date of the consummation of the 363 Sale,
(iii) the Stated Termination Date, (iv) the date the Total Facility is terminated either by the Borrower pursuant to Section 4.3 or by the Required Lenders pursuant to Section 11.2, (v) the Consummation Date,
and (vi) the date this Agreement is otherwise terminated for any reason whatsoever pursuant to the terms of this Agreement. 
 “Total Facility” has the meaning specified in Section 2.1. 
 “UCC” means the Uniform
Commercial Code, as in effect from time to time, of the State of New York or of any other state the laws of which are required as a result thereof to be applied in connection with the issue of perfection of security interests, provided, that to the
extent that the UCC is used to define any term herein or in any other documents and such term is defined differently in different Articles or Divisions of the UCC, the definition of such term contained in Article or Division 9 shall govern.

 “Unfunded Pension Liability” of a Pension Plan means, with respect to a Pension Plan subject to Title IV of ERISA, the
excess, if any, of the projected benefit obligation of such Pension Plan over the fair value of the assets of such Pension Plan, as determined pursuant to Statement of Financial Accounting Standards No. 87. 
 “Unused Letter of Credit Subfacility” means an amount equal to $75,000,000 minus the sum of (a) the aggregate undrawn amount
of all outstanding Letters of Credit plus, without duplication, (b) the aggregate unpaid reimbursement obligations with respect to all Letters of Credit. 
 “Unused Line Fee” has the meaning specified in Section 3.4. 
 “Upfront
Fee” has the meaning specified in Section 3.6. 
 “Variance Report” means a report prepared by the
Borrower’s management reflecting on a line-item basis the Loan Parties’ actual performance compared to the 11 Week Cash Flow for the immediately preceding week, or for the first such week, the Initial Budget, and on a 

  

 -29- 

 
cumulative basis compared to the Initial Budget and the percentage variance of the Loan Parties’ actual results from those reflected in the then extant
11 Week Cash Flow, or, in the case of the first such week, the Initial Budget. 
 1.2 Accounting Terms. Any accounting term used in
this Agreement shall have, unless otherwise specifically provided herein, the meaning customarily given in accordance with GAAP, and all financial computations hereunder shall be computed, unless otherwise specifically provided herein, in accordance
with GAAP as consistently applied and using the same method for inventory valuation as used in the preparation of the Financial Statements. 
 1.3 Interpretive Provisions. 
 (a) The meanings of defined terms are equally applicable to the singular and
plural forms of the defined terms. 
 (b) The words “hereof,” “herein,” “hereunder” and
similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and Subsection, Section, Schedule and Exhibit references are to this Agreement unless otherwise specified. 
 (c) (i) The term “documents” includes any and all instruments, documents, agreements, certificates, indentures,
notices and other writings, however evidenced. 
 (ii) The term “including” is not limiting and means
“including, without limitation.” 
 (iii) In the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including,” the words “to” and “until” each mean “to but excluding” and the word “through” means
“to and including.” 
 (iv) The word “or” is not exclusive. 
 (d) Unless otherwise expressly provided herein, (i) references to agreements (including this Agreement) and other contractual
instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications are not prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation are to be construed as including all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting the statute or regulation. 
 (e) The captions and headings of this Agreement and other Loan Documents are for convenience of reference only and shall not affect the
interpretation of this Agreement. 
 (f) This Agreement and other Loan Documents may use several different limitations, tests
or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their terms. 
  

 -30- 

 (g) This Agreement and the other Loan Documents are the result of negotiations among and
have been reviewed by counsel to the Agent, the Borrower and the other parties, and are the products of all parties. Accordingly, they shall not be construed against the Lenders or the Agent merely because of the Agent’s or Lenders’
involvement in their preparation. 
 1.4 Currency Equivalents Generally. 
 Any amount specified in this Agreement to be in a currency other than Dollars shall also include the equivalent of such amount in Dollars, such equivalent
amount to be determined by the Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars. For purposes of this Section 1.4, the “Spot Rate” for a currency means the rate
determined by the Agent to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00
a.m. on the date two Business Days prior to the date of such determination; provided that the Agent may obtain such spot rate from another financial institution designated by the Agent if the Person acting in such capacity does not have as of the
date of determination a spot buying rate for any such currency. 
 ARTICLE 2 
 LOANS AND LETTERS OF CREDIT 
 2.1 Total Facility. Subject to all of the
terms and conditions of this Agreement, the Lenders severally agree to make available a total credit facility of up to the Maximum Revolver Amount (the “Total Facility”) for the Borrower’s use from time to time during the term of this
Agreement. The Total Facility shall be comprised of a revolving line of credit consisting of revolving loans and letters of credit up to the Maximum Revolver Amount, as described in Sections 2.2 and 2.3. 
 2.2 Revolving Loans. 
 (a) Amounts. Subject to the satisfaction of the conditions precedent set forth in Article 10, each Lender severally agrees, upon the Borrower’s request from time to time on any Business Day during the period from the
Closing Date to but excluding the Termination Date, to make revolving loans (the “Revolving Loans”) to the Borrower, in amounts not to exceed (except for the Bank with respect to Bank Loans or Agent Advances) such Lender’s Pro
Rata Share of the Combined Availability. If the Combined Availability is equal or less than zero, the Lenders may refuse to make or otherwise restrict the making of Revolving Loans as the Lenders determine until the Combined Availability is greater
than zero, subject to the Agent’s authority, in its sole discretion, to make Agent Advances pursuant to the terms of Section 2.2(i). Subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans. 
  

 -31- 

 (b) Procedure for Borrowing. 
 (i) Each Borrowing by the Borrower shall be made upon irrevocable written notice of the Borrower delivered to the Agent in the form of a Notice of
Borrowing substantially in the form of Exhibit C or another form acceptable to the Agent (each, a “Notice of Borrowing”), which must be received by the Agent no later than 1:30 p.m. (New York City time) on the requested
Funding Date, specifying: 
 (A) the amount of the Borrowing; and 
 (B) the requested Funding Date, which shall be a Business Day. 
 (ii) Notwithstanding the provisions of clause (i) above, in lieu of delivering the above-described Notice of Borrowing, the Borrower may give the
Agent telephonic notice of such request by the required time with such telephonic notice to be confirmed in writing within 24 hours of the giving of such notice but the Agent shall be entitled to rely on the telephonic notice in making such
Revolving Loans. 
 (c) Reliance upon Authority. On or prior to the Closing Date and thereafter prior to any change
with respect to any of the information contained in the following clauses (i) and (ii), the Borrower shall deliver to the Agent a writing setting forth (i) the account or accounts of the Borrower to which the Agent is authorized to
transfer the proceeds of the Revolving Loans requested pursuant to this Section 2.2 (each such account, a “Designated Account”), and (ii) the names of the officers and any other designated representatives of the
Borrower authorized to request Revolving Loans on behalf of the Borrower, and shall provide the Agent with a specimen signature of each such officer and other designated representatives. All such Designated Accounts must be reasonably satisfactory
to the Agent. The Agent shall be entitled to rely conclusively on such officer’s or designated representatives’ authority to request Revolving Loans on behalf of the Borrower, the proceeds of which are to be transferred to any of the
accounts specified by the Borrower pursuant to the immediately preceding sentence, until the Agent receives written notice to the contrary. The Agent shall have no duty to verify the identity of any individual representing him or herself as one of
the officers or designated representatives authorized by the Borrower. 
 (d) No Liability, The Agent shall not incur
any liability to the Borrower as a result of acting upon any notice referred to in Sections 2.2(b) and (c), which notice the Agent believes in good faith to have been given by an officer duly authorized by the Borrower to request Revolving
Loans or for otherwise acting in good faith under this Section 2.2, and the crediting of Revolving Loans to the Borrower’s deposit account, or transmittal to such Person as the Borrower shall direct, shall conclusively establish the
obligation of the Borrower to repay such Revolving Loans as provided herein. 
 (e) Notice Irrevocable. Any Notice of
Borrowing (or telephonic notice in lieu thereof) made pursuant to Section 2.2(b) shall be irrevocable and the Borrower shall be bound to borrow the funds requested therein in accordance therewith. 
  

 -32- 

 (f) Agent’s Election. Promptly after receipt of a Notice of Borrowing (or
telephonic notice in lieu thereof) pursuant to Section 2.2(b), the Agent shall elect, in its discretion, (i) to have the terms of Section 2.2(g) apply to such requested Borrowing, or (ii) so long as the aggregate
outstanding principal amount of Bank Loans, after giving effect to the requested Borrowing, does not exceed $25,000,000, to request the Bank to make a Bank Loan pursuant to the terms of Section 2.2(h) in the amount of the requested
Borrowing; provided, however, that if the Bank declines in its sole discretion to make a Bank Loan pursuant to Section 2.2(h), the Agent shall elect to have the terms of Section 2.2(g) apply to such requested
Borrowing. 
 (g) Making of Revolving Loans. 
 (i) In the event that the Agent shall elect to have the terms of this Section 2.2(g) apply to a requested Borrowing as described in
Section 2.2(f), then promptly after receipt of a Notice of Borrowing or telephonic notice pursuant to Section 2.2(b), the Agent shall notify the Lenders by telecopy, telephone or other similar form of transmission, of the
requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available to the Agent in same day funds, to such account of the Agent as the Agent may designate, not later than 2:00 p.m. (New
York City time) on the Funding Date applicable thereto. After the Agent’s receipt of the proceeds of such Revolving Loans, upon satisfaction of the applicable conditions precedent set forth in Article 10, the Agent shall make the
proceeds of such Revolving Loans available to the Borrower on the applicable Funding Date by transferring same day funds equal to the proceeds of such Revolving Loans received by the Agent to the account of the Borrower designated in writing by the
Borrower and acceptable to the Agent; provided, however, that the amount of Revolving Loans so made on any date shall in no event exceed the Combined Availability on such date. If, notwithstanding the foregoing, the amount of the Revolving
Loans so made to the Borrower is in excess of the Combined Availability on any occasion, neither the Agent nor the Lenders shall be deemed to have changed the limits of the Maximum Revolver Amount or the Combined Availability or to be obligated to
exceed such limits on any other occasion. 
 (ii) Unless the Agent receives notice from a Lender on or prior to the Closing Date or, with
respect to any Borrowing after the Closing Date, at least one Business Day prior to the date of such Borrowing, that such Lender will not make available as and when required hereunder to the Agent that Lender’s Pro Rata Share of the Borrowing,
the Agent may assume that each Lender has made such amount available to the Agent in immediately available funds on the Funding Date and the Agent may (but shall not be so required), in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent any Lender shall not have made its full amount available to the Agent in immediately available funds and the Agent in such circumstances has made available to the Borrower such amount, that
Lender shall on the Business Day following such Funding Date make such amount available to the Agent, together with interest at the Federal Funds Rate for each day during such period. A notice of the Agent submitted to any Lender with respect to
amounts owing under this subsection shall be conclusive, absent manifest error, If such amount is so made available, such payment to the Agent shall constitute such Lender’s Loan on the date of Borrowing for all purposes of this Agreement. If
such amount is not made available to the Agent on the Business Day following the Funding Date, the Agent will notify the Borrower of such failure to fund and, 

  

 -33- 

 
upon demand by the Agent, the Borrower shall pay such amount to the Agent for the Agent’s account, together with interest thereon for each day elapsed
since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Loans comprising such Borrowing. The failure of any Lender to make any Loan on any Funding Date (any such Lender, prior to the cure of
such failure, being hereinafter referred to as a “Defaulting Lender”) shall not relieve any other Lender of any obligation hereunder to make a Loan on such Funding Date, but no Lender shall be responsible for the failure of any
other Lender to make the Loan to be made by such other Lender on any Funding Date. 
 (iii) The Agent shall not be obligated to transfer to
a Defaulting Lender any payments made by Borrower to the Agent for the Defaulting Lender’s benefit; nor shall a Defaulting Lender be entitled to the sharing of any payments hereunder. Amounts payable to a Defaulting Lender shall instead be paid
to or retained by the Agent. The Agent may hold and, in its discretion, re-lend to the Borrower the amount of all such payments received or retained by it for the account of such Defaulting Lender. Any amounts so re-lent to the Borrower shall bear
interest at the rate applicable to Base Rate Loans and for all other purposes of this Agreement shall be treated as if they were Revolving Loans, provided, however, that for purposes of voting or consenting to matters with respect to the Loan
Documents and determining Pro Rata Shares, such Defaulting Lender shall be deemed not to be a “Lender”. Until a Defaulting Lender cures its failure to fund its Pro Rata Share of any Borrowing (1) such Defaulting Lender shall not be
entitled to any portion of the Unused Line Fee and (2) the Unused Line Fee shall accrue in favor of the Lenders which have funded their respective Pro Rata Shares of such requested Borrowing, shall be allocated among such performing Lenders
ratably based upon their relative Commitments. This section shall remain effective with respect to such Lender until such time as the Defaulting Lender shall no longer be in default of any of its obligations under this Agreement. The terms of this
Section shall not be construed to increase or otherwise affect the Commitment of any Lender, or relieve or excuse the performance by Borrower of its duties and obligations hereunder. 
 (h) Making of Bank Loans. 
 (i) In the event the Agent shall elect, with the consent of the Bank, to have the terms of this Section 2.2(h) apply to a requested Borrowing as described in Section 2.2(f), the Bank shall make a Revolving Loan in
the amount of such Borrowing (any such Revolving Loan made solely by the Bank pursuant to this Section 2.2(h) being referred to as a “Bank Loan” and such Revolving Loans being referred to collectively as “Bank
Loans”) available to the Borrower on the Funding Date applicable thereto by transferring same day funds to an account of the Borrower, designated in writing by the Borrower and acceptable to the Agent; provided, however, that the
aggregate outstanding principal amount of Bank Loans shall at no time exceed $25,000,000. Each Bank Loan is a Revolving Loan hereunder and shall be subject to all the terms and conditions applicable to other Revolving Loans, including, without
limitation, the terms and conditions set forth in Section 2.2(a), except that all payments thereon shall be payable to the Bank solely for its own account (and for the account of the holder of any participation interest with respect to such
Revolving Loan). The Agent shall not request the Bank to make any Bank Loan if the Agent shall have received written notice from any Lender that one or more of the applicable conditions precedent set forth in Article 10 will not be satisfied
on the requested Funding Date for the applicable Borrowing. The Bank shall not otherwise be required 

  

 -34- 

 
to determine whether the applicable conditions precedent set forth in Article 10 have been satisfied or the requested Borrowing would exceed the
Combined Availability on the Funding Date applicable thereto prior to making, in its sole discretion, any Bank Loan. 
 (ii) The Bank Loans
shall be repayable as provided herein (including without limitation Section 2.2(i)) and secured by the Collateral, shall constitute Revolving Loans and Obligations hereunder, and shall bear interest at the rate applicable to Base Rate
Loans from time to time. 
 (i) Agent Advances. 
 (i) Subject to the limitations set forth in the provisos contained in this Section 2.2(i), the Agent is hereby authorized by the Borrower and
the Lenders, from time to time in the Agent’s sole discretion, (1) after the occurrence of a Default or an Event of Default, or (2) at any time that any of the other applicable conditions precedent set forth in Article 10 have
not been satisfied, to make Revolving Loans to the Borrower on behalf of the Lenders which the Agent, in its reasonable business judgment, deems necessary or desirable (A) to preserve or protect the Collateral, or any portion thereof,
(B) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other Obligations, or (C) to pay any other amount chargeable to Borrower pursuant to the terms of this Agreement, including, without limitation, costs,
fees and expenses as described in Section 15.6 (any of the advances described in this Section 2.2(i) being hereinafter referred to as “Agent Advances”); provided, that (w) the Required Lenders may
at any time revoke the Agent’s authorization contained in this Section 2.2(i) to make Agent Advances, any such revocation to be in writing and to become effective prospectively upon the Agent’s receipt thereof, (x) the
Agent shall not make an Agent Advance which would cause the Aggregate Outstandings to exceed Combined Availability, (y) the Agent shall not make an Agent Advance which, together with all other Agent Advances then outstanding, would aggregate an
amount in excess of 5% of the Combined Availability (without giving effect to the Maximum Revolver Amount) at the time such Agent Advance is made and (z) no Agent Advance shall be made if at such time an Agent Advance has been outstanding for
more than 45 consecutive days. 
 (ii) The Agent Advances shall be repayable on demand and secured by the Collateral, shall constitute
Revolving Loans and Obligations hereunder, and shall bear interest at the rate applicable to the Base Rate Loans from time to time. 
 (j) Settlement. It is agreed that each Lender’s funded portion of the Revolving Loan is intended by the Lenders to be equal at all times to such Lender’s Pro Rata Share of the outstanding Revolving Loans. Notwithstanding
such agreement, the Agent, the Bank, and the other Lenders agree (which agreement shall not be for the benefit of or enforceable by Borrower) that in order to facilitate the administration of this Agreement and the other Loan Documents, settlement
among them as to the Revolving Loans, the Bank Loans and the Agent Advances shall take place on a periodic basis in accordance with the following provisions: 
 (i) The Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis, or on a more frequent basis if so determined by the Agent, (1) on behalf of the 

  

 -35- 

 
Bank, with respect to each outstanding Bank Loan, (2) for itself, with respect to each Agent Advance, and (3) with respect to collections received,
in each case, by notifying the Lenders of such requested Settlement by telecopy, telephone or other similar form of transmission, of such requested Settlement, no later than 1:00 p.m. (New York City time) on the date of such requested Settlement
(the “Settlement Date”). Each Lender (other than the Bank, in the case of Bank Loans) shall make the amount of such Lender’s Pro Rata Share of the outstanding principal amount of Bank Loans and Agent Advances with respect to
which Settlement is requested available to the Agent, for itself or for the account of the Bank, in same day funds, to such account of the Agent as the Agent may designate, not later than 3:00 p.m. (New York City time), on the Settlement Date
applicable thereto. Settlement may start during the continuation of a Default or an Event of Default and whether or not the applicable conditions precedent set forth in Article 10 have then been satisfied. Such amounts made available to the
Agent shall be applied against the amounts of the applicable Bank Loan or Agent Advance and, together with the portion of such Bank Loan or Agent Advance representing the Bank’s Pro Rata Share thereof, shall constitute Revolving Loans of such
Lenders. If any such amount is not made available to the Agent by any Lender on the Settlement Date applicable thereto, the Agent shall be entitled to recover such amount on demand from such Lender together with interest thereon at the Federal Funds
Rate for the first three days from and after the Settlement Date and thereafter at the Interest Rate then applicable to the Revolving Loans (A) on behalf of the Bank, with respect to each outstanding Bank Loan, and (B) for itself, with
respect to each Agent Advance. 
 (ii) Notwithstanding the foregoing, not more than one Business Day after demand is made by the Agent
(whether before or after the occurrence of a Default or an Event of Default and regardless of whether the Agent has requested a Settlement with respect to a Bank Loan or Agent Advance), each other Lender shall irrevocably and unconditionally
purchase and receive from the Bank or the Agent, as applicable, without recourse or warranty, an undivided interest and participation in such Bank Loan or Agent Advance to the extent of such Lender’s Pro Rata Share thereof by paying to the
Agent, in same day funds, an amount equal to such Lender’s Pro Rata Share of such Bank Loan or Agent Advance. If such amount is not in fact made available to the Agent by any Lender, the Agent shall be entitled to recover such amount on demand
from such Lender together with interest thereon at the Federal Funds Rate for the first three days from and after such demand and thereafter at the Interest Rate then applicable to the Revolving Loans. 
 (iii) From and after the date, if any, on which any Lender purchases an undivided interest and participation in any Bank Loan or Agent Advance pursuant
to subsection (ii) above, the Agent shall promptly distribute to such Lender at such address as such Lender may request in writing, such Lender’s Pro Rata Share of all payments of principal and interest and all proceeds of Collateral
received by the Agent in respect of such Bank Loan or Agent Advance. 
 (iv) Between Settlement Dates, the Agent, to the extent no Agent
Advances or Bank Loans are outstanding, may pay over to the Bank any payments received by Agent, which in accordance with the terms of this Agreement would be applied to the reduction of the Revolving Loans for application to the Bank’s other
outstanding Revolving Loans. If, as of any Settlement Date, collections received since the then immediately preceding Settlement Date have been applied to the Bank’s other outstanding Revolving Loans other than to Bank 

  

 -36- 

 
Loans or Agent Advances, as provided for in the previous sentence, the Bank shall pay to the Agent for the accounts of the Lenders, to be applied to the
outstanding Revolving Loans of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the Revolving Loans. During the period between Settlement Dates, the Bank with
respect to Bank Loans, the Agent with respect to Agent Advances, and each Lender with respect to the Revolving Loans other than Bank Loans and Agent Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement
on the actual average daily amount of funds employed by the Bank, the Agent and the other Lenders. 
 (k) Notation. The
Agent shall record on its books the principal amount of the Revolving Loans owing to each Lender, including the Bank Loans owing to the Bank, and the Agent Advances owing to the Agent, from time to time. In addition, each Lender is authorized, at
such Lender’s option, to note the date and amount of each payment or prepayment of principal of such Lender’s Revolving Loans in its books and records, including computer records, such books and records constituting rebuttably presumptive
evidence, subject to Section 4.8 hereof, absent manifest error, of the accuracy of the information contained therein. 
 (l) Lenders’ Failure to Perform, All Loans (other than Bank Loans and Agent Advances) shall be made by the Lenders simultaneously and in accordance with their Pro Rata Shares. It is understood that (a) no Lender shall be
responsible for any failure by any other Lender to perform its obligation to make any Loans hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligation to make
any Loans hereunder, (b) no failure by any Lender to perform its obligation to make any Loans hereunder shall excuse any other Lender from its obligation to make any Loans hereunder, and (c) the obligations of each Lender hereunder shall
be several, not joint and several. 
 2.3 Letters of Credit. 
 (a) Agreement to Cause Issuance. Subject to the terms and conditions of this Agreement, and in reliance upon the representations
and warranties of the Borrower and the other Loan Parties herein set forth, the Agent agrees to (1) cause the Letter of Credit Issuer to issue Letters of Credit for the account of the Borrower, and/or (2) provide credit support or other
enhancement acceptable to the Agent to the Letter of Credit Issuer, which issues Letters of Credit for the account of the Borrower (any such credit support or enhancement being herein referred to as a “Credit Support”) in accordance
with this Section 2.3 from time to time during the term of this Agreement. 
 (b) Amounts; Outside Expiration
Date. The Agent shall not have any obligation to cause to be issued any Letter of Credit or to provide Credit Support for any Letter of Credit at any time if: (1) the maximum undrawn amount of the requested Letter of Credit is greater than
the Unused Letter of Credit Subfacility at such time; (2) the maximum undrawn amount of the requested Letter of Credit and all commissions, fees, and charges due from the Borrower in connection with the opening thereof exceed the Combined
Availability at such time; (3) in the case of a standby Letter of Credit, the 

  

 -37- 

 
maximum undrawn amount of the requested standby Letter of Credit, together will all other standby Letters of Credit issued for the account of the Borrower,
exceeds $20,000,000; or (4) such Letter of Credit has an expiration date later than 30 days after the Stated Termination Date or more than 180 days from the date of issuance. No Letter of Credit issued hereunder shall contain any
“evergreen” or automatic renewal provision. 
 (c) Other Conditions. In addition to being subject to the
satisfaction of the applicable conditions precedent contained in Article 10, the obligation of the Agent to cause to be issued any Letter of Credit or to provide Credit Support for any Letter of Credit is subject to the following conditions
precedent having been satisfied in a manner satisfactory to the Agent: 
 (i) The Borrower shall have delivered to the Letter of Credit
Issuer, at such times and in such manner as such Letter of Credit Issuer may prescribe, an application in form and substance reasonably satisfactory to such Letter of Credit Issuer and the Agent for the issuance of the Letter of Credit and such
other documents as may be required pursuant to the terms thereof, and the form and terms of the proposed Letter of Credit shall be reasonably satisfactory to the Agent and such Letter of Credit Issuer; 
 (ii) As of the date of issuance, no order of any court, arbitrator or Governmental Authority shall purport by its terms to enjoin or restrain money
center banks generally from issuing letters of credit of the type and in the amount of the proposed Letter of Credit, and no law, rule or regulation applicable to money center banks generally and no request or directive (whether or not having the
force of law) from any Governmental Authority with jurisdiction over money center banks generally shall prohibit, or request that the proposed Letter of Credit Issuer refrain from, the issuance of letters of credit generally or the issuance of such
Letters of Credit. 
 (d) Issuance of Letters of Credit. 
 (i) Request for Issuance. The Borrower shall give the Agent three Business Days’ prior written notice of the request for the issuance of a
Letter of Credit. Such notice shall be irrevocable and shall specify the original face amount of the Letter of Credit requested, that such Letter of Credit is for the account of the Borrower, the effective date (which date shall be a Business Day)
of issuance of such requested Letter of Credit, whether such Letter of Credit may be drawn in a single or in partial draws, the date on which such requested Letter of Credit is to expire (which date shall be a Business Day), the purpose for which
such Letter of Credit is to be issued, and the beneficiary of the requested Letter of Credit. The Borrower shall attach to such notice the proposed form of the Letter of Credit. 
 (ii) Responsibilities of the Agent; Issuance. The Agent shall determine, as of the Business Day immediately preceding the requested effective
date of issuance of the Letter of Credit set forth in the notice from the Borrower pursuant to Section 2.3(d)(i), (i) the amount of the applicable Unused Letter of Credit Subfacility and (ii) the Combined Availability as of
such date. If (i) the undrawn amount of the requested Letter of Credit is not greater than the applicable Unused Letter of Credit Subfacility and (ii) the issuance of such requested Letter of Credit and all commissions, fees, and charges
due from the Borrower in connection with the 

  

 -38- 

 
opening thereof would not exceed the Combined Availability, the Agent shall, subject to the terms and conditions hereof, cause the Letter of Credit Issuer to
issue the requested Letter of Credit on such requested effective date of issuance so long as the other conditions here are met. 
 (iii)
No Extensions or Amendment. The Agent shall not be obligated to cause the Letter of Credit Issuer to extend or amend any Letter of Credit issued pursuant hereto unless the requirements of this Section 2.3(d) are met as though a
new Letter of Credit were being requested and issued. 
 (iv) Notice of Issuance. On each Settlement Date, the Agent shall give
notice to each Lender of the issuance of all Letters of Credit issued since the last Settlement Date. 
 (e) Payments
Pursuant to Letters of Credit. 
 (i) Payment of Letter of Credit Obligations. Borrower agrees jointly and severally to reimburse
(i) the Letter of Credit Issuer for any draw under any Letter of Credit and (ii) the Agent for the account of the Lenders upon any payment pursuant to any Credit Support immediately when due, and to pay the Letter of Credit Issuer the
amount of all other obligations and other amounts payable to such issuer under or in connection with any Letter of Credit immediately when due, irrespective of any claim, setoff, defense or other right which Borrower may have at any time against
such issuer or any other Person. Each drawing under any Letter of Credit shall constitute a request by the Borrower to the Agent for a Borrowing of a Base Rate Loan in the amount of such drawing. The Funding Date with respect to such borrowing shall
be the date of such drawing. 
 (f) Participations. 
 (i) Purchase of Participations. Immediately upon issuance of any Letter of Credit in accordance with Section 2.3(d), each Lender shall
be deemed to have irrevocably and unconditionally purchased and received without recourse or warranty, an undivided interest and participation equal to such Lender’s Pro Rata Share of the face amount of such Letter of Credit or the Credit
Support provided through the Agent to the Letter of Credit Issuer, if not the Bank, in connection with the issuance of such Letter of Credit (including, without limitation, all obligations of the Borrower with respect thereto, and any security
therefor or guaranty pertaining thereto). 
 (ii) Sharing of Reimbursement Obligation Payments. Whenever the Agent receives a payment
from Borrower on account of reimbursement obligations in respect of a Letter of Credit or Credit Support as to which the Agent has previously received for the account of the Letter of Credit Issuer thereof payment from a Lender, the Agent shall
promptly pay to such Lender such Lender’s Pro Rata Share of such payment from Borrower in Dollars. Each such payment shall be made by the Agent on the next Settlement Date. 
 (iii) Documentation. Upon the request of any Lender, the Agent shall furnish to such Lender copies of any Letter of Credit, Credit Support for
any Letter of Credit, reimbursement agreements executed in connection therewith, applications for any Letter of Credit, and such other documentation as may reasonably be requested by such Lender. 
  

 -39- 

 (iv) Obligations Irrevocable. The obligations of each Lender to make payments to the Agent with
respect to any Letter of Credit or with respect to their participation therein or with respect to any Credit Support for any Letter of Credit or with respect to the Revolving Loans made as a result of a drawing under a Letter of Credit and the
obligations of the Borrower to make payments to the Agent, for the account of the Lenders, shall be irrevocable and shall not be subject to any qualification or exception whatsoever, including, without limitation, any of the following circumstances:

 (A) any lack of validity or enforceability of this Agreement or any of the other Loan Documents; 
 (B) the existence of any claim, setoff, defense or other right which Borrower may have at any time against a beneficiary named in a
Letter of Credit or any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), any Lender, the Agent, the issuer of such Letter of Credit, or any other Person, whether in connection with this Agreement, any
Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transactions between Borrower or any other Person and the beneficiary named in any Letter of Credit); 
 (C) any draft, certificate or any other document presented under the Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
 (D) the surrender or
impairment of any security for the performance or observance of any of the terms of any of the Loan Documents; 
 (E) the
occurrence of any Default or Event of Default; or 
 (F) the failure of Borrower to satisfy the applicable conditions
precedent set forth in Article 10. 
 (g) Recovery or Avoidance of Payments: Refund of Payments in Error. In the
event any payment by or on behalf of any Loan Party received by the Agent with respect to any Letter of Credit or Credit Support provided for any Letter of Credit (or any guaranty by any Loan Party or reimbursement obligation of the Borrower
relating thereto) and distributed by the Agent to the Lenders on account of their respective participations therein is thereafter set aside, avoided or recovered from the Agent in connection with any receivership, liquidation or bankruptcy
proceeding, the Lenders shall, upon demand by the Agent, pay to the Agent their respective Pro Rata Shares of such amount set aside, avoided or recovered, together with interest at the rate required to be paid by the Agent upon the amount required
to be repaid by it. Unless the Agent receives notice from the Borrower prior to the date on which any payment is due to the Lenders that the Borrower will not make such payment in full as and when required, the Agent may assume that the Borrower has
made such payment in full to the Agent on such date in immediately available funds and the Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount 

  

 -40- 

 
equal to the amount then due such Lender. If and to the extent the Borrower has not made such payment in full to the Agent, each Lender shall repay to the
Agent on demand such amount distributed to such Lender, together with interest thereon at the Federal Funds Rate for each day from the date such amount is distributed to such Lender until the date repaid. 
 (h) Compensation for Letters of Credit. 
 (i) Letter of Credit Fee. The Borrower agrees to pay to the Agent with respect to each Letter of Credit, for the account of the Lenders, the Letter of Credit Fee specified in, and in accordance with the terms
of, Section 3.5. 
 (ii) Issuer Fees and Charges. The Borrower shall pay to the issuer of any Letter of Credit, or to the
Agent, for the account of the issuer of any such Letter of Credit, solely for such issuer’s account, such fees and other charges as are charged by such issuer for letters of credit issued by it, including, without limitation, its standard fees
for issuing, administering, amending, renewing, paying and canceling letters of credit and all other fees associated with issuing or servicing letters of credit, as and when assessed. 
 (i) Indemnification by Lenders. To the extent not reimbursed by the Borrower and without limiting the obligations of the Borrower
hereunder, the Lenders agree to indemnify the issuer of any Letter of Credit ratably in accordance with their respective Pro Rata Shares, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorneys’ fees) or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against such issuer in any way relating to or arising out of any Letter of Credit issued by such issuer or
the transactions contemplated thereby or any action taken or omitted by such issuer under any Letter of Credit issued by such issuer or any Loan Document in connection therewith; provided that no Lender shall be liable for any of the
foregoing to the extent it arises from the gross negligence or willful misconduct of the Person to be indemnified. Without limitation of the foregoing, each Lender agrees to reimburse the issuer of any Letter of Credit promptly upon demand for its
Pro Rata Share of any costs or expenses payable by Borrower to such issuer, to the extent that such issuer is not promptly reimbursed for such costs and expenses by the Borrower. The agreement contained in this Section shall survive payment in full
of all other Obligations. 
 (j) Indemnification; Exoneration; Power of Attorney. 
 (i) Indemnification. In addition to amounts payable as elsewhere provided in this Section 2.3, the Borrower hereby agrees to protect,
indemnify, pay and save the Lenders and the Agent harmless from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees) which any Lender or the Agent may incur or
be subject to as a consequence, direct or indirect, of the issuance of any Letter of Credit or the provision of any Credit Support or enhancement in connection therewith. The agreement in this Section 2.3(j)(i) shall survive payments of
all Obligations and termination of this Agreement. 
  

 -41- 

 (ii) Assumption of Risk by the Borrower. As among the Borrower, the Lenders, and the Agent, the
Borrower assumes all risks of the acts and omissions of, or misuse of any of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Lenders and the Agent shall not
be responsible for: (A) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any Person in connection with the application for and issuance of and presentation of drafts with respect to any of the
Letters of Credit, even if it should prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (B) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (C) the failure of the beneficiary of any Letter of Credit to comply duly with
conditions required in order to draw upon such Letter of Credit; (D) errors, omissions, interruptions, or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(E) errors in interpretation of technical terms; (F) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or of the proceeds thereof, (G) the misapplication
by the beneficiary of any Letter of Credit of the proceeds of any drawing under such Letter of Credit; (H) any consequences arising from causes beyond the control of the Lenders or the Agent, including, without limitation, any act or omission,
whether rightful or wrongful, of any present or future de jure or de facto Governmental Authority; or (I) any Letter of Credit issuer’s honor of a draw for which the draw or any certificate fails to comply in
any respect with the terms of the Letter of Credit. None of the foregoing shall affect, impair or prevent the vesting of any rights or powers of the Agent or any Lender under this Section 2.3(j). 
 (iii) Exoneration. In furtherance and extension, and not in limitation, of the specific provisions set forth above, any action taken or omitted
by the Agent or any Lender under or in connection with any of the Letters of Credit or any related certificates shall not put the Agent or any Lender under any resulting liability to the Borrower or relieve the Borrower of any of its obligations
hereunder to any such Person. 
 (iv) Rights Against Letter of Credit Issuer. Nothing contained in this Agreement is intended to
limit the Borrower’s rights, if any, with respect to the issuer of a Letter of Credit which arise as a result of the letter of credit application and related documents executed by and between Borrower and such issuer. 
 (v) Power of Attorney. In connection with all Inventory financed by Letters of Credit, the Borrower hereby appoints the Agent, or the
Agent’s designee, as its attorney, with full power and authority, upon the occurrence of an Event of Default and unless and until the same shall have been waived in writing by the Required Lenders: (a) to sign and/or endorse the
Borrower’s name upon any warehouse or other receipts; (b) to sign the Borrower’s name on bills of lading and other negotiable and non-negotiable documents; (c) to clear Inventory through customs in the Agent’s, the
Borrower’s name, and to sign and deliver to customs officials powers of attorney in the Borrower’s name for such purpose; (d) to complete in the Borrower’s or the Agent’s name, any order, sale, or transaction, obtain the
necessary documents in connection therewith, and collect the proceeds thereof, and (e) to do such other acts and things as are necessary in order to enable the Agent to obtain possession of the 

  

 -42- 

 
Inventory and to obtain payment of the Obligations. Neither the Agent nor its designee, as the Borrower’s attorney, will be liable for any acts or
omissions, nor for any error of judgment or mistakes of fact or law. This power, being coupled with an interest, is irrevocable until all Obligations have been paid and satisfied. 
 (vi) Account Party. The Borrower hereby authorizes and directs any issuer of a Letter of Credit to name Borrower as an “Account Party”
therein and to deliver to the Agent, with notice thereof to the Borrower all instruments, documents and other writings and property received by the issuer pursuant to the Letter of Credit, and to accept and rely upon the Agent’s instructions
and agreements with respect to all matters arising in connection with the Letter of Credit or the application therefor. 
 (vii) Control
of Inventory. In connection with all Inventory financed by Letters of Credit, the Borrower will, at the Agent’s request following the occurrence of an Event of Default and unless and until the same shall have been waived in writing by the
Required Lenders, instruct all suppliers, carriers, forwarders, warehouses or others receiving or holding Inventory, documents or instruments in which the Agent holds a security interest to deliver them to the Agent and/or subject to the
Agent’s order, and if they shall come into the Borrower’s possession, to deliver them, upon request, to the Agent in their original form. The Borrower shall also, at the Agent’s request, designate the Agent as the consignee on all
bills of lading and other negotiable and non-negotiable documents. 
 (k) Cash Collateral; Supporting Letter of Credit.
If, notwithstanding the provisions of Section 2.3(b) and Section 12.1, any Letter of Credit or Credit Support is outstanding upon the termination of this Agreement, then upon such termination, the Borrower shall deposit with
the Agent, for the ratable benefit of the Agent and the Lenders, with respect to each Letter of Credit or Credit Support then outstanding, cash in the amount of 105% of the face amount of such Letter of Credit or a standby letter of credit (a
“Supporting Letter of Credit”) in form and substance satisfactory to the Agent, issued by an issuer reasonably satisfactory to the Agent in an amount equal to the greatest amount for which such Letter of Credit or such Credit
Support may be drawn plus any fees and expenses associated with such Letter of Credit or such Credit Support, under which Supporting Letter of Credit the Agent is entitled to draw amounts necessary to reimburse the Agent and the applicable Lenders
for payments to be made by the Agent and such Lenders under such Letter of Credit or Credit Support and any fees and expenses associated with such Letter of Credit or Credit Support. Such Supporting Letter of Credit shall be held by the Agent, for
the ratable benefit of the Agent and the applicable Lenders, as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or such Credit Support remaining outstanding. Such deposit of cash or Supporting
Letter of Credit, as applicable, shall be held by the Agent, for the ratable benefit of the Agent and the Lenders, as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or Credit Support remaining
outstanding until such time as such Letters of Credit shall have been terminated or canceled and all of the Obligations (other than contingent indemnification obligations for which a claim has not been asserted) owing from the Borrower in respect of
the Letters of Credit and/or Credit Support have been paid in full. 
  

 -43- 

 (l) Existing Letters of Credit. The Borrower, the Agent and the Lenders agree that
the Existing Letters of Credit shall be deemed Letters of Credit hereunder as if issued by the Letter of Credit Issuer. 
 2.4 Bank
Products. The Borrower may request and the Agent (in the case of the Bank and its Affiliates) or another Lender (in the case of such other Lender and its Affiliates) may, in its sole and absolute discretion, arrange for the Borrower to obtain
from the Bank or any of its Affiliates (in the case of the Agent) or such other Lender or its Affiliates (in the case of such other Lender) Bank Products although the Borrower is not required to do so. If Bank Products are provided by an Affiliate
of the Bank or another Lender, the Borrower agrees to indemnify and hold the Agent, the Bank and the other Lenders harmless from any and all costs and obligations now or hereafter incurred by the Agent, the Bank or any other Lender which arise from
any indemnity given by the Agent or such other Lender, as the case may be, to its Affiliates related to such Bank Products; provided, however, (x) nothing contained herein is intended to limit the Borrower’s rights, with respect to the
Bank, another Lender or their respective Affiliates, if any, which arise as a result of the execution of documents by and between Borrower and the Bank or another Lender, as applicable, which relate to Bank Products and (y) Bank Products
consisting of cash management services, including controlled disbursement services, and ACH Transactions may only be provided to Borrower by the Bank or an Affiliate of the Bank or another bank acceptable to the Agent. The indemnification and hold
harmless provisions contained in this Section shall survive termination of this Agreement. Borrower acknowledges and agrees that the obtaining of Bank Products from the Bank, another Lender or any of their respective Affiliates (a) is in the
sole and absolute discretion of the Bank, such other Lender or the applicable Affiliate of the Bank or such other Lender, as the case may be, and (b) is subject to all rules and regulations of the Bank, such other Lender or the applicable
Affiliate of the Bank or such other Lender, as the case may be. 
 2.5 Increase in Commitments; LILO Tranche. 
 (a) Request for Increase. Provided no Default that has not been cured within any applicable grace period or Event of Default that
has not been waived in writing by the Required Lenders has occurred or would arise therefrom, upon notice to the Agent (which shall promptly notify the Lenders), the Borrower may on a one-time basis, request (which request may be granted or denied
by the Agent and the Lenders in their sole discretion) an increase in the Commitments by an amount not exceeding $20,000,000 pursuant to a last in, last out term loan hereunder (the “LILO Tranche”). Nothing contained herein shall
constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its Commitment hereunder. 
 (b)
Lender Elections to Increase. Each Lender shall notify the Agent within three (3) Business Days whether or not it agrees to increase its Commitment and participate in the LILO Tranche, and if so, whether by an amount equal to, greater
than, or less than its Pro Rata Share of such LILO Tranche. Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment. 
  

 -44- 

 (c) Notification by Agent; Additional Lenders. The Agent shall notify the Borrower
and each Lender of the Lenders’ responses to any request made hereunder. To achieve the full amount of a requested increase and subject to the approval of the Agent and the Lenders, to the extent that the existing Lenders decline to increase
their Commitments to participate in the LILO Tranche, or decline to increase their Commitments to the amount requested by the Borrower, the Borrower may invite Eligible Assignees to become a Lender hereunder and to issue commitments in an amount not
to exceed the amount of the LILO Tranche requested by the Borrower and not accepted by the existing Lenders, provided, however, that without the consent of the Agent, at no time shall the Commitment of any additional Person which becomes a
Lender pursuant to this Section 2.5(c) be less than $1,000,000. 
 (d) LILO Tranche Effective Date and
Allocations. If the Commitments are increased pursuant to a LILO Tranche in accordance with this Section, the Agent, in consultation with the Borrower, shall determine the effective date (the “LILO Tranche Effective Date”) and
the final allocation of such increase. The Agent shall promptly notify the Borrower and the Lenders of the final allocation of such increase and the LILO Tranche Effective Date and on the LILO Tranche Effective Date (i) the Commitments under,
and for all purposes of, this Agreement shall be increased by the aggregate amount of the LILO Tranche, and (ii) Schedule 1.1(a) shall be deemed modified, without further action, to reflect the revised Commitments of the Lenders.

 (e) Conditions to Effectiveness of Increase. As a condition precedent to such increase and the establishment of the
LILO Tranche, (i) the Borrower shall deliver to the Agent a certificate of each Loan Party dated as of the LILO Tranche Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (A) certifying
and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (B) in the case of the Borrower, certifying that, before and after giving effect to such increase, (1) the representations and
warranties contained in Article VIII and the other Loan Documents are true and correct on and as of the LILO Tranche Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, (ii) the Borrower, the Agent, and any additional Person which becomes a Lender pursuant to this Section shall have executed and delivered a joinder to the Loan Documents in such form as
the Agent shall reasonably require; (iii) the Borrower shall have paid such fees and other compensation to the Lenders participating in the LILO Tranche as the Borrower and such Lenders shall agree; (iv) the Borrower shall have paid such
arrangement fees to the Agent as the Borrower and the Agent may agree; (v) the Borrower and the Lenders participating in the LILO Tranche shall have delivered such other instruments, documents and agreements as the Agent and the Lenders
participating in the LILO Tranche may reasonably have requested; and (vi) no Default that has not been cured within any applicable grace period or Event of Default that has not been waived in writing by the Required Lenders has occurred.

 (f) Borrowing of LILO Tranche. In the event that the LILO Tranche is established pursuant to the provisions hereof,
any amount outstanding under such LILO Tranche shall not be considered in the calculation of the Borrowing Base or Combined Availability or the determination of the Maximum Revolver Amount, but shall otherwise be deemed to be Obligations hereunder.

  

 -45- 

 ARTICLE 3 
 INTEREST AND FEES 
 3.1 Interest. 
 (a) Interest Rates. All outstanding Obligations shall bear interest on the unpaid principal amount thereof (including, to the
extent permitted by law, on interest thereon not paid when due) from the date made until paid in full in cash at a fluctuating per annum rate equal to the Base Rate plus the Applicable Margin, but not to exceed the Maximum Rate described in
Section 3.3. Each change in the Base Rate shall be reflected in the interest rate described above as of the effective date of such change. All interest charges shall be computed on the basis of a year of 360 days and actual days elapsed
(which results in more interest being paid than if computed on the basis of a 365-day year). The Borrower shall pay to the Agent, for the ratable benefit of the Lenders, interest accrued on all Base Rate Loans in arrears on the first day of each
month after the Closing Date and on the Termination Date. 
 (b) Default Rate. If any Default or Event of Default
occurs and the Agent or the Required Lenders in their discretion so elect, then, unless any such Default is cured within any applicable grace period or unless and until such Event of Default has been waived in writing by the Required Lenders, all of
the Obligations shall bear interest at the Default Rate applicable thereto. 
 3.2 Intentionally Omitted. 
 3.3 Maximum Interest Rate. In no event shall any interest rate provided for hereunder exceed the maximum rate legally chargeable by the Lenders
under applicable law for loans of the type provided for hereunder (the “Maximum Rate”). If, in any month, any interest rate, absent such limitation, would have exceeded the Maximum Rate, then the interest rate for that month shall be the
Maximum Rate, and, if in future months, that interest rate would otherwise be less than the Maximum Rate, then that interest rate shall remain at the Maximum Rate until such time as the amount of interest paid hereunder equals the amount of interest
which would have been paid if the same had not been limited by the Maximum Rate. In the event that, upon payment in full of the Obligations, the total amount of interest paid or accrued under the terms of this Agreement is less than the total amount
of interest which would, but for this Section 3.3, have been paid or accrued if the interest rates otherwise set forth in this Agreement had at all times been in effect, then the Borrower shall, to the extent permitted by applicable law, pay
the Agent, for the account of the Lenders, an amount equal to the difference between (a) the lesser of (i) the amount of interest which would have been charged if the Maximum Rate had, at all times, been in effect or (ii) the amount
of interest which would have accrued had the interest rates otherwise set forth in this Agreement, at all times, been in effect and (b) the amount of interest actually paid or accrued under this Agreement. In the event that a court determines
that the Agent and/or any Lender has received interest and other charges hereunder in excess of the Maximum Rate, such excess shall be deemed received on account of, and shall automatically be applied to reduce, the Obligations other than interest,
in the inverse order of maturity, and if there are no Obligations outstanding, the Agent and/or such Lender shall refund to the Borrower such excess. 
  

 -46- 

 3.4 Unused Line Fee. Until the Obligations (other than contingent indemnification obligations for
which a claim has not been asserted) have been paid in full and this Agreement is terminated, the Borrower agrees to pay, on the first day of each month and on the Termination Date, to the Agent, for the ratable account of the Lenders, an unused
line fee (the “Unused Line Fee”) equal to 1.00% per annum on the amount by which the average daily Maximum Revolver Amount exceeded the sum of the average daily outstanding amount of Pre-Petition Liabilities, the average daily
outstanding amount of Revolving Loans, the average daily aggregate undrawn face amount of all outstanding Letters of Credit plus the average daily aggregate amount of any unpaid reimbursement Obligations in respect of Letters of Credit, during the
immediately preceding month or shorter period if calculated on the Termination Date. The Unused Line Fee shall be computed on the basis of a 360-day year for the actual number of days elapsed. All payments received by the Agent on account of
Accounts or as proceeds of other Collateral shall be deemed to be credited to the Borrower’s Loan Account immediately upon receipt for purposes of calculating the unused line fee pursuant to this Section 3.4. 
 3.5 Letter of Credit Fee. The Borrower agrees to pay to the Agent, for the ratable account of the Lenders, for each Letter of Credit, a fee (the
“Letter of Credit Fee”) equal to the Applicable Margin for Letters of Credit of the average daily outstanding undrawn face amount of such Letter of Credit, plus all out-of-pocket costs, fees and expenses incurred by the Agent in connection
with the application for, issuance of, or amendment to such Letter of Credit, which costs, fees and expenses will also include a “fronting fee” of 25 basis points times the face amount of such Letter of Credit at the time of issuance. The
Letter of Credit Fee shall be payable by the Borrower monthly in arrears on the first day of each month following any month in which a Letter of Credit was issued and/or in which a Letter of Credit remains outstanding. The Letter of Credit Fee shall
be computed on the basis of a 360-day year for the actual number of days elapsed. If any Event of Default occurs that has not been waived in writing by the Required Lenders, then the Letter of Credit Fee shall be equal to the Applicable Margin for
Letters of Credit plus two percent (2%) per annum and shall be payable on demand. 
 3.6 Upfront Fee. The Borrower shall pay to
the Agent on the Closing Date, for the ratable account of the Lenders, a fee (the “Upfront Fee”) in an amount equal to 2.25% of the aggregate amount of the Commitments. The Upfront Fee shall be fully earned on the Closing Date and shall
not be refundable for any reason. 
 3.7 Structuring Fee. 
 The Borrower shall pay to the Agent on the Closing Date, for the account of the Agent, a fee (the “Structuring Fee”) in an amount equal to 0.50%
of the Maximum Revolver Amount. The Structuring Fee shall be fully earned on the Closing Date and shall not be refundable for any reason. 
 3.8 Payment of Fees. The Borrower agrees that all fees described in this Article 3 shall be fully earned when accrued and non-refundable for any reason whatsoever and shall be due and payable on the due dates set forth in this
Agreement. 
  

 -47- 

 ARTICLE 4 
 PAYMENTS AND PREPAYMENTS 
 4.1 Revolving Loans. The Borrower shall repay the outstanding
principal balance of the Revolving Loans, plus all accrued but unpaid interest thereon, on the Termination Date. The Borrower may prepay Revolving Loans at any time, and reborrow subject to the terms of this Agreement. In the event that any amounts
are repaid to the Borrower by the Canadian Subsidiaries under the Intercompany Loan Documents, the Borrower shall immediately prepay the Obligations in an amount equal to such amounts received. In addition, and without limiting the generality of the
foregoing, upon demand (within three days of demand if as a result of the imposition of a new Reserve, increase in a Reserve or a change in eligibility criteria) the Borrower promises to pay to the Agent, for the account of the Lenders, the amount,
without duplication, by which the Combined Availability is less than zero. 
 4.2 LILO Tranche. 
 The Borrower shall repay the outstanding principal amounts under the LILO Tranche, plus all accrued but unpaid interest thereon, on the Termination Date.
The Borrower may not prepay any amounts due on the LILO Tranche. 
 4.3 Termination or Reduction of Facility 
 (a) The Borrower may terminate this Agreement upon at least 5 Business Days’ written notice (or such shorter time as the Agent and
the Lenders shall otherwise agree) from the Borrower to the Agent and the Lenders, upon (a) the payment in full of all outstanding Revolving Loans, together with accrued interest thereon, and the cancellation and return of all outstanding
Letters of Credit or the provision of collateral support for such Letters of Credit as provided in Section 2.3(k), (b) the payment in full in cash of all other Obligations (other than contingent indemnification obligations for which a
claim has not been asserted) together with accrued interest thereon, and (c) the payment in full in cash of all Pre-Petition Liabilities (other than contingent indemnification obligations for which a claim has not been asserted) then
outstanding. 
 (b) The Borrower shall have the right, upon not less than five (5) Business Days’ written
notice from the Borrower to the Agent to, from time to time, permanently reduce the Maximum Revolver Amount; provided, that (i) any such reduction in the Maximum Revolver Amount shall result in a Dollar-for-Dollar decrease in the
aggregate amount of the Commitments then in effect, (ii) except as set forth in Section 4.3(a) hereof, the Borrower shall not be permitted to reduce the Maximum Revolver Amount to less than $50,000,000 and (iii) no such reduction of
the Maximum Revolver Amount shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Loans on the effective date thereof, Combined Availability would be less than zero. Any such reduction shall be in an amount equal
to $5,000,000 or a multiple of $5,000,000 in excess thereof, and shall reduce the aggregate Commitments then in effect pro rata among the Lenders. 
  

 -48- 

 (c) In connection with any liquidation sale conducted pursuant to Section 9.32(b)
hereof, the Maximum Revolver Amount shall automatically reduce on Monday of each week to an amount equal to the average amount of the Borrowing Base in effect for the immediately preceding week. 
 4.4 Payments by the Loan Parties 
 (a) All payments to be made by any Loan Party shall be made without set-off, recoupment or counterclaim. Except as otherwise expressly provided herein, all payments by any Loan Party shall be made to the Agent for the
account of the Lenders at the Agent’s address set forth in Section 15.7, and shall be made in Dollars and in immediately available funds, no later than 2:00 p.m. (New York City time) on the date specified herein. Any payment received by
the Agent later than 2:00 p.m. (New York City time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue. 
 (b) Whenever any payment is due on a day that is not a Business Day, such payment shall be made on the immediately succeeding Business
Day, and such extension of time shall in such case be included in the computation of interest or fees, as the case may be. 
 (c) Unless the Agent receives notice from the Borrower prior to the date on which any payment is due to the Lenders that the Borrower will not make such payment in full as and when required, the Agent may assume that the Borrower has made
such payment in full to the Agent on such date in immediately available funds and the Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such
Lender. If and to the extent the Borrower has not made such payment in full to the Agent, each Lender shall repay to the Agent on demand such amount distributed to such Lender, together with interest thereon at the Federal Funds Rate for each day
from the date such amount is distributed to such Lender until the date repaid. 
 4.5 Payments as Revolving Loans. At the election of
the Agent, all payments of principal, interest, reimbursement obligations in connection with Letters of Credit, fees, premiums and other sums payable hereunder, including all reimbursement for expenses pursuant to Section 15.6, may be paid from
the proceeds of Revolving Loans made hereunder, whether made following a request by the Borrower pursuant to Section 2.2 or a deemed request, subject to Section 4.8 hereof, as provided in this Section 4.5. Borrower hereby irrevocably
authorizes the Agent to charge the Loan Account for the purpose of paying all amounts due and payable hereunder, and agrees that all such amounts charged shall constitute Revolving Loans (including Bank Loans and Agent Advances) and that all such
Revolving Loans so made shall be deemed to have been requested by the Borrower pursuant to Section 2.2. With respect to reimbursement of expenses for which the Borrower is obligated hereunder, the Agent will not charge the Loan Account of the
Borrower prior to giving the Borrower at least two Business Days notice of each such reimbursable expense and, if the invoice for such reimbursable expense provides for a due date, then the Agent will not charge the Loan Account prior to the due
date thereof. 
  

 -49- 

 4.6 Apportionment and Application and Reversal of Payments. Principal and interest payments shall
be apportioned ratably among the Lenders (according to the unpaid principal balance of the Loans to which such payments relate held by each Lender) and payments of the fees shall, as applicable, be apportioned ratably among the Lenders. All payments
shall be remitted to the Agent and all such payments not relating to principal or interest of specific Revolving Loans, or not constituting payment of specific fees, and all proceeds of Accounts or other Collateral received by the Agent, shall be
applied, ratably, subject to the provisions of this Agreement, first, to pay any Pre-Petition Liabilities then outstanding, second, to pay any fees, indemnities or expense reimbursements then due to the Agent and the Co-Collateral Agents from the
Borrower or other Loan Parties; third, to pay any fees or expense reimbursements then due to the Lenders from the Borrower or other Loan Parties; fourth, to pay interest due in respect of all Revolving Loans, including Bank Loans and Agent Advances;
fifth, to pay or prepay principal of Bank Loans and Agent Advances; sixth, to pay or prepay principal of the Revolving Loans (other than Bank Loans and Agent Advances) and unpaid reimbursement obligations in respect of Letters of Credit; seventh, to
pay an amount to Agent equal to all outstanding Obligations (contingent or otherwise) with respect to Letters of Credit in an amount equal to 105% of the face amount of all such Letters of Credit to be held as cash collateral for such Obligations;
eighth, to the payment of any fees, indemnities or expense reimbursements and all other Obligations then due and owing of Borrower in respect of Bank Products, ninth, to the payment of any other Obligation (other than Obligations due under the LILO
Tranche) due to the Agent or any Lender by the Borrower or other Loan Parties, and tenth, to payment of Obligations due under the LILO Tranche. The Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply
any and all such proceeds and payments to any portion of the Obligations. 
 4.7 Indemnity for Returned Payments. If, after receipt of
any payment of, or proceeds applied to the payment of, all or any part of the Obligations, the Agent, any Lender, the Bank or any Affiliate of the Bank is for any reason compelled to surrender such payment or proceeds to any Person, because such
payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason, then the Obligations or part thereof
intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Agent or such Lender, and the Borrower shall be liable to pay to the Agent and the
Lender, and hereby do indemnify the Agent and the Lenders and hold the Agent and the Lenders harmless for, the amount of such payment or proceeds surrendered. The provisions of this Section 4.7 shall be and remain effective notwithstanding any
contrary action which may have been taken by the Agent or any Lender in reliance upon such payment or application of proceeds, and any such contrary action so taken shall be without prejudice to the Agent’s and the Lenders’ rights under
this Agreement and shall be deemed to have been conditioned upon such payment or application of proceeds having become final and irrevocable. The provisions of this Section 4.7 shall survive the termination of this Agreement. 
 4.8 Agent’s and Lenders’ Books and Records: Monthly Statements. The Agent shall record the principal amount of the Loans owing to each
Lender, the undrawn face amount of all outstanding Letters of Credit and the aggregate amount of unpaid reimbursement obligations outstanding with respect to the Letters of Credit from time to time on its books. In addition, each Lender may note the
date and amount of each payment or prepayment of principal of such 
  

 -50- 

 
Lender’s Loans in its books and records. Failure by Agent or any Lender to make such notation shall not affect the obligations of the Borrower with
respect to the Loans or the Letters of Credit. The Borrower agrees that the Agent’s and each Lender’s books and records showing the Obligations and the transactions pursuant to this Agreement and the other Loan Documents shall be
admissible in any action or proceeding arising therefrom, and shall constitute rebuttably presumptive proof thereof, irrespective of whether any Obligation is also evidenced by a promissory note or other instrument. The Agent will provide to the
Borrower a monthly statement of Loans, payments, and other transactions pursuant to this Agreement. Such statement shall be deemed correct, accurate, and binding on the Borrower and an account stated (except for reversals and reapplications of
payments made as provided in Section 4.6 and corrections of errors discovered by the Agent), unless the Borrower notifies the Agent in writing to the contrary within 30 days after such statement is rendered. In the event a timely written notice
of objections is given by the Borrower, only the items to which exception is expressly made will be considered to be disputed by the Borrower. 
 ARTICLE 5 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 5.1 Taxes 
 (a) Except
as provided in Section 5.1(c), any and all payments by Borrower to each Lender or the Agent under this Agreement and any other Loan Document shall be made free and clear of, and without deduction or withholding for any Taxes (excluding the
following Taxes (“Excluded Taxes”): (i) Taxes imposed on, or measured by, the recipient’s overall net income or overall gross income imposed by the jurisdiction under the laws of which such recipient is incorporated or otherwise
organized, in which such recipient is a resident for income tax purposes, or in which such recipient’s principal executive office or lending office is located, in each case, including any political subdivision thereof, (ii) branch profits
taxes, franchise taxes, or similar taxes imposed on the recipient, and (iii) any Taxes that would not have been imposed but for the activities of the recipient in the jurisdiction imposing such Tax other than the execution, delivery,
performance, filing, recording, and enforcement of, and the other activities contemplated in, this Agreement and the other Loan Documents, and the recipient’s participation in the transactions contemplated by this Agreement and the other Loan
Documents (all Taxes other than Excluded Taxes, “Indemnified Taxes”)). In addition, the Borrower shall pay all Other Taxes. 
 (b) Each Loan Party agrees, jointly and severally, to indemnify and hold harmless each Lender and the Agent for the full amount of Indemnified Taxes or Other Taxes (including any Indemnified Taxes or Other Taxes
imposed by any jurisdiction on amounts payable under this Section) paid by the Lender or the Agent and any liability (including penalties, interest, additions to tax and expenses) arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally asserted. Payment under this indemnification shall be made within 30 days after the date such Lender or the Agent makes written demand therefor. 
  

 -51- 

 (c) If any Loan Party shall be required by law to deduct, remit or withhold any
Indemnified Taxes or Other Taxes or the Agent or any Lender shall be required to remit any Indemnified Taxes or Other Taxes, in either case, from or in respect of any sum payable hereunder to any Lender or the Agent, then: 
 (i) the sum payable shall be increased as necessary so that after making all required deductions, remittances and withholdings (including deductions,
remittances and withholdings applicable to additional sums payable under this Section) such Lender or the Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions, remittances or withholdings been
made; 
 (ii) such Loan Party shall make such deductions and withholdings; 
 (iii) such Loan Party shall pay the full amount deducted or withheld to the relevant taxing authority or other authority in accordance with applicable
law; and 
 (iv) such Loan Party shall also pay to each Lender or the Agent for the account of such Lender, at the time interest is paid,
all additional amounts which the respective Lender specifies as necessary to preserve the after-tax yield such Lender would have received if such Taxes or Other Taxes had not been imposed. 
 (d) Within 30 days after the date of any payment by any Loan Party of Indemnified Taxes or Other Taxes, such Loan Party shall furnish the
Agent the original or a certified copy of a receipt evidencing payment thereof, or other evidence of payment reasonably satisfactory to the Agent. 
 (e) If any Loan Party is required to pay additional amounts to any Lender or the Agent pursuant to subsection (c) of this Section, then such Lender shall use reasonable efforts (consistent with legal and
regulatory restrictions) to change the jurisdiction of its lending office so as to eliminate any such additional payment by such Loan Party which may thereafter accrue, if such change in the judgment of such Lender is not otherwise disadvantageous
to such Lender. 
 (f) If the Loan Parties are required to pay any amounts pursuant to the provisions of this
Section 5.1, and if thereafter any Lender or the Agent (as the case may be) shall receive or be granted a credit against or remission for Indemnified Taxes or Other Taxes payable by such Lender or the Agent (as the case may be) in respect of
the amounts so paid by Borrower, such Lender or the Agent (as the case may be) shall to the extent that it can do so without prejudice to the retention of the amount of such credit or remission, pay to such Loan Party 30 days after the date on which
such Lender or the Agent effectively obtains the benefit of such credit or remission an amount which it reasonably determines to be equal to such credit or remission less any sum which it is required by law to deduct therefrom. Such Lender or the
Agent (as the case may be) may, in its sole discretion, determine the order of utilization of all charges, deductions, credits and expenses which reduce Taxes imposed on its net income. Nothing in this Section 5.1(f) shall be construed as
requiring any Lender or the Agent (as the case may be) to conduct its business or to arrange or alter in any respect its Tax or financial affairs so that it is entitled to receive such credit or remission, other than performing any ministerial acts
necessary to be entitled to receive such credit or remission. 
  

 -52- 

 (g) In the event that any Lender or the Agent receives written communication from any Tax
authority with respect to an assessment or proposed assessment of any Indemnified Taxes or Other Taxes, such Lender or the Agent (as the case may be) shall promptly notify the Borrower in writing and provide a copy of such communication to the
Borrower. In the event that an administrative or judicial proceeding is commenced involving any Lender or the Agent which, if determined adversely to it, would result in the payment of Indemnified Taxes or Other Taxes, such Lender or the Agent (as
the case may be) shall promptly notify the Borrower and shall permit the Borrower to consult with such Lender or Agent regarding such proceeding and the preparation of submissions in connections with such proceeding; provided, however, that in the
event that such Lender or the Agent (as the case may be) fails to comply with this provision, with respect to any communication, or administrative or judicial proceeding, the Borrower shall continue to have liability to indemnify such Lender or the
Agent (as the case may be) hereunder with respect to Indemnified Taxes or Other Taxes that are the subject of such communication or proceeding, except to the extent that the Borrower was prejudiced and incurred liability solely as a result of such
failure. 
 5.2 Intentionally Omitted. 
 5.3 Increased Costs and Reduction of Return 
 (a) Intentionally Omitted. 

(b) If any Lender shall have determined that (i) the introduction of any Capital Adequacy Regulation, (ii) any change in any
Capital Adequacy Regulation, (iii) any change in the interpretation or administration of any Capital Adequacy Regulation by any central bank or other Governmental Authority charged with the interpretation or administration thereof, or
(iv) compliance by such Lender or any corporation or other entity controlling such Lender with any Capital Adequacy Regulation, affects or would affect the amount of capital required or expected to be maintained by such Lender or any
corporation or other entity controlling such Lender and (taking into consideration such Lender’s or such corporation’s or other entity’s policies with respect to capital adequacy and such Lender’s desired return on capital)
determines that the amount of such capital is increased as a consequence of its Commitment, loans, credits or obligations under this Agreement, then, upon demand of such Lender to the Borrower through the Agent, the Borrower shall pay to such
Lender, from time to time as specified by such Lender, additional amounts sufficient to compensate such Lender for such increase. 
 5.4
Intentionally Omitted. 
 5.5 Intentionally Omitted. 
 5.6 Certificates of Lenders. If any Lender claims reimbursement or compensation under this Article 5 the Agent shall determine the amount thereof
and shall deliver to the Borrower (with a copy to the affected Lender) within 90 days of demand a certificate setting forth in reasonable detail the amount payable to the affected Lender and such certificate shall be conclusive and binding on the
Borrower in the absence of manifest error. 
  

 -53- 

 5.7 Survival. The agreements and obligations of the Borrower in this Article 5 shall survive the
payment of all other Obligations. 
 ARTICLE 6 
 COLLATERAL. 
 6.1 Grant of Security Interest. 
 (a) As security for all present and future Obligations, each Loan Party hereby grants to the Agent, for the ratable benefit of the Agent,
the Co-Collateral Agents and the Lenders, a continuing security interest in, lien on, and right of set-off against, all of the following property of such Loan Party, whether now owned or existing or hereafter acquired or arising, whether acquired
prior to the Petition Date or after the Petition Date, regardless of where located: 
 (i) all Accounts; 
 (ii) all Inventory; 
 (iii) all contract
rights; 
 (iv) all Chattel Paper; 
 (v) all Documents; 
 (vi) all Instruments; 
 (vii) all Supporting Obligations and Letter of Credit Rights; 
 (viii) all General Intangibles; 

(ix) all Payment Intangibles; 
 (x) all
Equipment; 
 (xi) all Investment Property (other than the equity interests in SAC and FSAC owned by Holdings as of the Closing Date);

 (xii) all money, cash, cash equivalents, securities and other property of any kind of such Loan Party held directly or indirectly by the
Agent or any Lender; 
 (xiii) All Specified Bankruptcy Recoveries; 
 (xiv) all of such Loan Party’s deposit accounts, credits, and balances with and other claims against the Agent or any Lender or any of their
Affiliates or any other financial institution with which such Loan Party maintains deposits, including any Payment Accounts; 
  

 -54- 

 (xv) all commercial tort claims listed on Schedule 6.1(a)(xiv) hereto; 
 (xvi) all proceeds of leasehold interests of the Loan Parties; 
 (xvii) all other assets and properties of the Loan Parties; 
 (xviii) all books, records and other property
related to or referring to any of the foregoing, including, without limitation, books, records, account ledgers, data processing records, computer software and other property and General Intangibles at any time evidencing or relating to any of the
foregoing; and 
 (xix) all accessions to, substitutions for and replacements, products and proceeds of any of the foregoing, including, but
not limited to, proceeds of any insurance policies, claims against third parties, and condemnation or requisition payments with respect to all or any of the foregoing. 
 All of the foregoing, together with the property or interests therein covered by the DIP Orders, and all other property of any Loan Party or other Person in which the Agent or any Lender may at any time be granted a
Lien to secure any or all of the Obligations, is herein collectively referred to as the “Collateral”; provided that, (A) notwithstanding the foregoing definition of “Collateral” or any other term or provision of this
Agreement to the contrary, the Collateral shall not include (a) any leases of Real Estate, except for the proceeds of such leasehold interests as set forth in clause (xv) above, or (b) Bankruptcy Recoveries (other than Specified
Bankruptcy Recoveries). 
 (b) All of the Obligations shall be secured by all of the Collateral. 
 (c) Each Loan Party hereby agrees that the Obligations shall at all times constitute administrative expenses of the Loan Parties in the
Case with priority under Section 364(c)(1) of the Bankruptcy Code over any and all other administrative expenses of the kind specified in Sections 105, 326, 328, 330, 331, 364(c), 503(a), 503(b), 507(a), 507(b), 546(c), 546(d), 726, 1114, and,
upon entry of the Final Borrowing Order, 506(c), of the Bankruptcy Code, subject only to the Carve Out. 
 (d) The
Agent’s Liens have been independently granted by the Loan Documents, and may be independently granted by other Loan Documents heretofore or hereafter entered into. The Agent’s Liens, this Agreement, the DIP Orders and the other Loan
Documents supplement each other, and the grants, priorities, rights and remedies of the Lenders and the Agent hereunder and thereunder are cumulative. The Agent’s Liens shall constitute valid and perfected first priority Liens under
Section 364(d) of the Bankruptcy Code, subject only to the terms of the Intercreditor Agreement regarding the priority of Liens in the Term Lender Priority Collateral (as defined in the Intercreditor Agreement), Permitted Liens described in
clause (l) of the definition thereof, and other Permitted Liens having priority under the Requirements of Law, and the ratable priority of Liens in the Ratable Collateral. 
  

 -55- 

 6.2 Perfection and Protection of Security Interest. 
 (a) Each Loan Party shall, at its expense, perform all steps requested by the Agent at any time to more fully effectuate, perfect,
maintain, protect, and enforce the Agent’s Liens, including, without limitation, at the request of the Agent: (i) executing, delivering and/or filing and recording of any additional security agreements or assignments with respect to the
Collateral and filing or authorizing the Agent to file financing or continuation statements, and amendments thereof, in form and substance satisfactory to the Agent; (ii) delivering to the Agent the originals of all Instruments, Documents, and
Chattel Paper of such Loan Party constituting Revolving Lender Priority Collateral, and all other Revolving Lender Priority Collateral of which the Agent determines it should have physical possession in order to perfect and protect the Agent’s
security interest therein, duly pledged, endorsed or assigned to the Agent without restriction; (iii) delivering to the Agent warehouse receipts covering any portion of the Collateral located in warehouses and for which warehouse receipts are
issued and certificates of title covering any portion of the Collateral for which certificates of title have been issued; (iv) following the occurrence of an Event of Default that has not been waived in writing by the Required Lenders,
transferring its Inventory to warehouses designated by the Agent; (v) placing notations on such Loan Party’s books of account to disclose the Agent’s security interest; (vi) obtaining control agreements from securities
intermediaries with respect to financial assets in the possession of securities intermediaries; (vii) obtaining control agreements from banks and other financial institutions with respect to deposit accounts (as defined in the UCC) maintained
at such bank or other financial institution; (viii) assigning and delivering to the Agent all Supporting Obligations, including letters of credit on which such Loan Party is named beneficiary with the written consent of the issuer thereof,
(ix) taking such other steps as are deemed necessary or desirable by the Agent to maintain and protect the Agent’s Liens, in each case, except as prohibited by the DIP Orders. Each Loan Party hereby authorizes the Agent to file one or more
financing statements disclosing the Agent’s Liens. Each Loan Party agrees that a carbon, photographic, photostatic, or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement. 
 (b) If any Collateral of a Loan Party is at any time in the possession or control of any warehouseman, bailee or any of a Loan
Party’s agents or processors, then such Loan Party shall notify the Agent thereof and shall use commercially reasonable efforts if requested by the Agent to obtain a bailee letter acknowledged by the bailee that notifies such Person of the
Agent’s security interest in such Collateral and instructs such Person to hold all such Collateral for the Agent’s account subject to the Agent’s instructions; provided, however, that Agent agrees that it shall give not give
any such instructions regarding the Collateral unless an Event of Default has occurred that has not been waived in writing by the Required Lenders. If at any time any Collateral is located in any operating facility of a Loan Party that is leased by
such Loan Party, then such Loan Party shall use commercially reasonable efforts if requested by the Agent to obtain written landlord lien waivers or subordinations, in form and substance reasonably satisfactory to the Agent, that waives or
subordinates all present and future Liens which the owner or lessor of such premises may be entitled to assert against such Collateral and permits the Agent to have access to such leased premises in connection with the exercise by the Agent of
rights and remedies with respect to the Collateral located therein. 
  

 -56- 

 (c) From time to time, each Loan Party shall, upon the Agent’s request, execute and
deliver confirmatory written instruments pledging to the Agent, for the ratable benefit of the Agent and the Lenders, the Collateral in which such Loan Party has an interest, but such Loan Party’s failure to do so shall not affect or limit the
Agent’s security interest or any other rights of the Agent or any Lender in and to the Collateral with respect to such Loan Party. So long as this Agreement is in effect and until all Obligations have been fully satisfied, the Agent’s
Liens shall continue in full force and effect in all Collateral (whether or not deemed eligible for the purpose of calculating the Combined Availability or as the basis for any advance, loan, extension of credit, or other financial accommodation).

 6.3 Location of Collateral. Each Loan Party represents and warrants to the Agent and the Lenders that: (a) as of the Closing
Date, Schedule 6.3 is a correct and complete list of such Loan Party’s and each of its Subsidiaries’ chief executive office, the location of its books and records, the locations of the Collateral in which such Loan Party has an interest,
and the locations of all of its other places of business; and (b) as of the Closing Date, Schedule 8.11 correctly identifies any of such facilities and locations that are not owned by such Loan Party or such Subsidiary and sets forth the names
of the owners and lessors or sublessors of such facilities and locations; provided that with respect to (a) and (b) above, the Loan Parties shall provide the Agent with an updated list of store locations on a monthly basis. Without
limiting the foregoing, each Loan Party represents that all of its and its Subsidiaries’ Inventory (other than Inventory in transit) is, and covenants that all of its Inventory will be, located either (a) on premises owned by such Loan
Party or the relevant Subsidiary, (b) on premises leased by such Loan Party or the relevant Subsidiary, provided that such Loan Party shall have used commercially reasonable efforts, if requested by the Agent, to deliver to the Agent an
executed landlord waiver from the landlord of such premises in form and substance satisfactory to the Agent and the Co-Collateral Agents, or (c) in a warehouse or with a bailee, provided that such Loan Party shall have used commercially
reasonable efforts to deliver to the Agent, if requested by the Agents, an executed bailee letter from the applicable Person in form and substance satisfactory to the Agent. 
 6.4 Title to, Liens on, and Sale and Use of Collateral. Each Loan Party represents and warrants to the Agent and the Lenders and agrees with the
Agent and the Lenders that: (a) all of its and its Subsidiaries’ Collateral is and will continue to be owned by such Loan Party or the relevant Subsidiary, as applicable, free and clear of all Liens whatsoever, except for Permitted Liens;
(b) the Agent’s Liens in such Collateral will not be subject to any prior Lien other than as set forth in Section 6.1(d) hereof; (c) such Loan Party will (and will cause each of its Subsidiaries to) use, store, and maintain such
Collateral with all reasonable care and will use such Collateral for lawful purposes only; and (d) such Loan Party will not (and will cause each of its Subsidiaries not to) except as otherwise permitted by this Agreement, without the
Agent’s prior written approval, sell, or dispose of or permit the sale or disposition of any of such Collateral except for sales of Inventory in the ordinary course of business, the use of cash to the extent not prohibited herein, and sales of
Equipment as permitted by Section 6.10. The inclusion of proceeds in the Collateral shall not be deemed to constitute the Agent’s or any Lender’s consent to any sale or other disposition of the Collateral except as expressly permitted
herein. 
  

 -57- 

 6.5 Access and Examination: Promotional Materials. 
 (a) Subject to Section 9.4(b), the Agent, accompanied by any Co-Collateral Agent or any Lender which so elects, may, at such
reasonable times during normal business hours and as soon as may be reasonably desired, upon reasonable advance notice to such Loan Party (and at any time after the occurrence of a Default that has not been cured within any applicable grace period
or an Event of Default that has not been waived in writing by the Required Lenders) have access to, examine, audit, make extracts from or copies of and inspect any or all of each Loan Party’s and its Subsidiaries’ records, files, and books
of account and the Collateral, and discuss each Loan Party’s and its Subsidiaries’ affairs with each Loan Party’s and its Subsidiaries’ officers and management. Each Loan Party will (and will cause each of its Subsidiaries to)
deliver to the Agent any instrument necessary for the Agent to obtain records from any service bureau maintaining records for such Loan Party and its Subsidiaries. If any of a Loan Party’s or any of its Subsidiaries’ records or reports of
the Collateral are prepared by an accounting service or other agent, such Loan Party hereby authorizes (and shall cause each of its Subsidiaries to authorize) and, upon the request of the Agent or any Co-Collateral Agent, shall cause such service or
agent to deliver such records, reports, and related documents to the Agent, for distribution to the Lenders, and/or, as the Agent shall choose, provide access to the Agent thereto. The Agent may, and at the direction of the Required Lenders shall,
at any time after the occurrence of a Default that has not been cured within any applicable grace period or Event of Default that has not been waived in writing by the Required Lenders, and at the Loan Parties’ expense, make copies of all of
any Loan Party’s and its Subsidiaries’ books and records, or require a Loan Party to deliver (or cause to be delivered) such copies to the Agent. The Agent may, without expense to the Agent, use a Loan Party’s supplies and premises as
may be reasonably necessary for maintaining or enforcing the Agent’s Liens and each Loan Party shall cooperate and make available its personnel for such purposes. The Agent shall have the right, at any time, in the Agent’s name or in the
name of a nominee of the Agent, to verify the validity, amount or any other matter relating to the Accounts, Inventory, or other Collateral of a Loan Party, by mail, telephone, or otherwise. 
 (b) Each Loan Party agrees that, subject to such Loan Party’s or Subsidiary’s, as the case may be, prior consent for uses other
than in a traditional tombstone, which consent shall not be unreasonably withheld or delayed, the Agent and each Lender may use such Loan Party’s or such Subsidiary’s name in advertising and promotional material. 
 6.6 Collateral Reporting. Each Loan Party (or in the case of clause (h) below, the Borrower) shall provide the Agent with the following
documents at the following times in form satisfactory to the Agent and the Co-Collateral Agents: 
 (a) upon the request of
the Agent (or any Co-Collateral Agent (which such request shall be made through the Agent)), a schedule of such Loan Party’s and its Subsidiaries’ respective Accounts created, credits given, cash collected and other adjustments to Accounts
of such Loan Party since the last such schedule; 
  

 -58- 

 (b) upon the request of the Agent (or any Co-Collateral Agent (which such request shall
be made through the Agent)), an aging of such Loan Party’s and its Subsidiaries’ respective Accounts, together with a reconciliation to the previous aging delivered to the Agent of such Loan Party’s and its Subsidiaries’
respective Accounts and to such Loan Party’s and its Subsidiaries’ respective general ledgers, and, in the case of the Borrower, to the corresponding Borrowing Base and, in each case, accompanied by such supporting detail and documentation
as shall be requested by the Agent in its reasonable discretion; 
 (c) upon request of the Agent (or any Co-Collateral Agent
(which such request shall be made through the Agent)), a report of open vouchers payable by vendor; 
 (d) upon request of the
Agent (or any Co-Collateral Agent (which such request shall be made through the Agent)), Inventory reports by category, with additional detail showing additions to and deletions from the Inventory, together with a reconciliation to such Loan
Party’s general ledger and, in the case of the Borrower and the Canadian Subsidiaries, to the Combined Availability; 
 (e) upon request of the Agent (or any Co-Collateral Agent (which such request shall be made through the Agent)), copies of invoices in connection with such Loan Party’s and its Subsidiaries’ respective Accounts, customer
statements, credit memos, remittance advices and reports, deposit slips, shipping and delivery documents in connection with such Loan Party’s and its Subsidiaries’ respective Accounts and for Inventory and Equipment acquired by such Loan
Party or any of its Subsidiaries, purchase orders and invoices; 
 (f) upon request of the Agent (or any Co-Collateral Agent
(which such request shall be made through the Agent)), a statement of the balance of each of the Intercompany Accounts; 
 (g)
such other reports as to the Collateral of such Loan Party and its Subsidiaries as the Agent (or any Co-Collateral Agent (which such request shall be made through the Agent)) shall reasonably request from time to time; 
 (h) on each Business Day, a Borrowing Base Certificate; 
 (i) on each Business Day, a detailed report of Major Credit Card Receivables and Inventory of such Loan Party and the Canadian
Subsidiaries; 
 (j) on June 25, 2009, July 2, 2009, and thereafter, no later than Wednesday of each week,
commencing on July 8, 2009, an updated 11 Week Cash Flow, together with a Variance Report, together with updated 11 week cash flow projections furnished in connection with the Canadian Case; 
 (k) contemporaneously with the delivery of each 11 Week Cash Flow, a summary of the then Reported Fee Accruals as of the end of the prior
week; and 
  

 -59- 

 (l) with the delivery of each of the foregoing, a certificate of such Loan Party executed
by an officer thereof certifying as to the accuracy and completeness in all material respects of the foregoing. 
 6.7 Accounts.

 (a) Each Loan Party hereby represents and warrants to the Agent and the Lenders, with respect to such Loan Party’s and
its Subsidiaries’ respective Accounts, that: (i) each existing Account represents, and each future Account will represent, a bona fide sale or lease and delivery of goods by such Loan Party or the relevant Subsidiary, as applicable, or
rendition of services by such Loan Party or the relevant Subsidiary, as applicable, in the ordinary course of such Loan Party’s or such Subsidiary’s respective business; (ii) each existing Account is, and each future Account will be,
for a liquidated amount payable by the Account Debtor thereon on the terms set forth in the invoice therefor or in the schedule thereof delivered to the Agent, without any offset, deduction, defense, or counterclaim except those known to such Loan
Party and reported to the Agent and the Lenders pursuant to this Agreement; (iii) no payment will be received with respect to any Account, and no credit, discount, or extension, or agreement therefor will be granted on any Account, except as
reported to the Agent and the Lenders in accordance with this Agreement or properly reflected in a Borrowing Base Certificate; (iv) each copy of an invoice delivered to the Agent by such Loan Party or any of its Subsidiaries will be a genuine
copy of the original invoice sent to the Account Debtor named therein; and (v) all goods described in each invoice will have been delivered to the Account Debtor and all services of such Loan Party or the relevant Subsidiary, as applicable,
described in each invoice will have been performed. 
 (b) Neither any Loan Party nor any of its Subsidiaries shall re-date
any invoice or sale or make sales on extended dating beyond that customary in such Loan Party’s or the relevant Subsidiary’s, as applicable, business or modify any Account or extend any Account. If any Loan Party becomes aware of any
matter materially adversely affecting the collectability of any Account or Account Debtor involving an amount greater than $250,000, including information regarding the Account Debtor’s creditworthiness, such Loan Party will promptly so advise
the Agent and if such Loan Party is a Borrower, exclude such Account from its Eligible Accounts. 
 (c) Neither any Loan Party
nor any of its Subsidiaries shall accept any note or other instrument (except a check or other instrument for the immediate payment of money) with respect to any Account without the Agent’s written consent. If the Agent consents to the
acceptance of any such instrument, it shall be considered as evidence of the Account and not payment thereof and such Loan Party will promptly deliver or cause to be delivered such instrument to the Agent, endorsed by such Loan Party or the relevant
Subsidiary, as applicable, to the Agent in a manner satisfactory in form and substance to the Agent. Regardless of the form of presentment, demand or notice of protest with respect thereto, the applicable Loan Party or Subsidiary shall remain liable
thereon until such instrument is paid in full. 
  

 -60- 

 (d) Other than with respect to credits, chargebacks and discounts issued in the ordinary
course of business, each Loan Party shall notify the Agent promptly of all disputes and claims in excess of $250,000 with any Account Debtor, and agrees (and shall cause each of its Subsidiaries to agree) to settle, contest, or adjust such dispute
or claim at no expense to the Agent or any Lender. No discount, credit or allowance shall be granted by any Loan Party or any of its Subsidiaries to any such Account Debtor without the Agent’s prior written consent, except for discounts,
credits and allowances made or given in the ordinary course of such Loan Party’s or the relevant Subsidiary’s, as applicable, business when no Event of Default exists hereunder. Each Loan Party shall send (or cause to be sent to) the Agent
a copy of each credit memorandum in excess of $250,000 as soon as issued and, if such Loan Party is a Borrower, such Loan Party shall promptly report that credit on Borrowing Base Certificates submitted by it. The Agent may, and at the direction of
the Required Lenders shall, at all times when an Event of Default exists hereunder, settle or adjust disputes and claims directly with Account Debtors for amounts and upon terms which the Agent or the Required Lenders, as applicable, shall consider
advisable and, in all cases, the Agent will credit the Borrower’s Loan Account with only the net amounts received by the Agent in payment of any such Loan Party’s or Subsidiary’s, as applicable, Accounts. 
 6.8 Collection of Accounts; Payments. 
 (a) Subject to the following sentence, each Loan Party shall make collection of all of its Accounts and other Collateral for the Agent. Subject to the terms of the DIP Orders, on or before the Closing Date, each Loan
Party shall have established a Payment Account and a related lock-box service for collections of its Accounts at the Bank or another Clearing Bank acceptable to the Agent and, in each case, subject to a Blocked Account Agreement and other
documentation acceptable to the Agent and the Co-Collateral Agents and shall have instructed each Account Debtor to make all payments directly to such Payment Account or to the address established for such lock-box service and shall provide evidence
to the Agent, satisfactory to the Agent, that such instructions have been given. If, notwithstanding such instructions, a Loan Party receives any proceeds of Accounts or if a Loan Party receives any payments on account of any other Collateral or any
other payments of any source, it shall immediately (and not less often then daily), subject to the terms of the DIP Orders, deliver such payments to the Agent in their original form or deposit such payments into the applicable Payment Account or to
another deposit account from which funds are transferred daily into a Payment Account. All collections and other payments received in any such lock-box or Payment Account or directly by a Loan Party or the Agent and all funds in any Payment Account
or other deposit account to which such collections or payments are deposited shall be subject to the Agent’s sole dominion and control and withdrawals by the applicable Loan Party shall not be permitted. The Agent or the Agent’s designee
may, at any time, notify Account Debtors of a Loan Party that the Accounts of such Loan Party have been assigned to the Agent and of the Agent’s security interest therein, and may collect them directly and charge the collection costs and
expenses to the Borrower’s Loan Account as a Revolving Loan. Each Loan Party, at the Agent’s request, shall execute and deliver to the Agent such documents as the Agent shall require to grant the Agent access to any post office lock-box in
which collections of Accounts of such Loan Party are received, and if 

  

 -61- 

 
any payments are received by any Loan Party, such Loan Party shall receive all payments as the Agent’s trustee, and shall immediately deliver all
payments in their original form duly endorsed in blank into a Payment Account established for the account of such Loan Party, subject to a Blocked Account Agreement. 
 (b) If sales of Inventory of a Loan Party are made or services are rendered for cash, the applicable Loan Party shall immediately deliver
to the Agent or deposit into a Payment Account the cash which such Loan Party receives. 
 (c) All payments, including
immediately available funds received by the Agent at a bank designated by it, received by the Agent on account of Accounts of a Loan Party or as proceeds of other Collateral will be the Agent’s sole property for its benefit and the benefit of
the Co-Collateral Agents and the Lenders and will be credited to the Borrower’s Loan Account (conditional upon final collection). 
 (d) In the event one or more of the Borrower or Loan Parties repay all of the Obligations upon the termination of this Agreement or upon acceleration of the Obligations, other than through the Agent’s receipt of
payments on account of the Accounts of any of the Loan Parties or proceeds of the other Collateral, such payment will be credited (conditional upon final collection) to the Borrower’s Loan Account on the day of the Agent’s receipt of
immediately available funds. 
 6.9 Inventory: Perpetual Inventory. 
 (a) Each Loan Party represents and warrants to the Agent and the Lenders and agrees with the Agent and the Lenders that all of the
Inventory owned by such Loan Party and each of its Subsidiaries is and will be held for sale or lease (and in the case of raw materials and work in process for further processing into finished goods to be held for sale), or to be furnished in
connection with the rendition of services, in the ordinary course of such Loan Party’s or such Subsidiary’s, as applicable, business and is and will be fit for such purposes. Each Loan Party will keep (and will cause each of its
Subsidiaries to keep) its Inventory in good and marketable condition consistent with past practice, at its own expense. Each Loan Party and its Subsidiaries will not, without the prior consent of the Agent, acquire or accept any Inventory on
consignment or appraisal. Each Loan Party agrees that all Inventory produced in the United States will be produced in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations, and orders thereunder. Each
Loan Party will conduct (or cause to be conducted) a physical count of its Inventory at least once per Fiscal Year, and after and during the continuation of an Event of Default, at such other times as the Agent or any Co-Collateral Agent requests.
Each Loan Party will at all times maintain (and will cause each of its Subsidiaries at all times to maintain) a perpetual inventory reporting system at all times. Each Loan Party will not (and will cause its Subsidiaries not to), without the
Agent’s written consent, sell any Inventory with a fair market value in excess of $500,000 in the aggregate, on a bill-and-hold, guaranteed sale, sale and return, sale on approval, consignment, or other repurchase or return basis and no such
Inventory sold on any such basis will be deemed to be Eligible Inventory. Any inventory of others which is on the premises of any Loan Party for processing, cutting, manufacturing, finishing or otherwise, shall be segregated and shall not be
reported or included on any Borrowing Base Certificate as Inventory or Eligible Inventory. 
  

 -62- 

 (b) At the Agent’s or any Co-Collateral Agent’s request, after the occurrence
of an Event of Default and unless and until the same shall be waived in writing by the Required Lenders, in connection with all Inventory of a Loan Party financed by Letters of Credit, such Loan Party will instruct all suppliers, carriers,
forwarders, customs brokers, warehouses or others receiving or holding Inventory, Documents or Instruments of such Loan Party in which the Agent holds a security interest to deliver them to the Agent and/or subject to the Agent’s order, and if
they shall come into such Loan Party’s possession, to deliver them, upon request, to the Agent in their original form. Each Loan Party shall also, at the Agent’s or any Co-Collateral Agent’s request, after the occurrence of an Event
of Default and unless and until the same shall be waived in writing by the Required Lenders, designate the Agent as the consignee on all bills of lading and other negotiable and non-negotiable documents of such Loan Party. 
 6.10 Equipment. 
 (a)
Each Loan Party represents and warrants to the Agent and the Lenders and agrees with the Agent and the Lenders that the Equipment owned by such Loan Party and each of its Subsidiaries is and will be used or held for use in such Loan Party’s or
such Subsidiary’s respective business, and is and will be fit for such purposes. Each Loan Party shall (and shall cause each of its Subsidiaries to) keep and maintain its Equipment in good operating condition and repair (ordinary wear and tear
excepted) and shall make all necessary replacements thereof consistent with past practice. 
 (b) Each Loan Party shall
promptly inform the Agent of any material additions to or deletions from its Equipment. Such Loan Party shall not (and shall cause each of its Subsidiaries not to) permit any of its Equipment to become a fixture with respect to real property or to
become an accession with respect to other personal property with respect to which real or personal property the Agent does not have a Lien. 
 (c) The Loan Parties shall not (and shall cause each of their respective Subsidiaries not to), without the Agent’s and the Co-Collateral Agents’ written consent, sell, lease as a lessor, or otherwise dispose
of any of the Equipment of a Loan Party or any of its Subsidiaries except as permitted by Section 9.8. Subject to any of the rights of the holder of any Debt secured by a superior Lien on Equipment of the Loan Parties, except as provided
in clause (c) of Section 9.8, all net cash proceeds of each such sale shall, subject to Permitted Liens (if any) thereon be remitted to a Payment Account. 
 6.11 Documents, Instruments, and Chattel Paper. Each Loan Party represents and warrants to the Agent and the Lenders that (a) all Documents,
Instruments, and Chattel Paper of such Loan Party describing, evidencing, or constituting Collateral, and all signatures and endorsements thereon, are and will be complete, valid, and genuine, and (b) all goods evidenced by such Documents,
Instruments and Chattel Paper are and will be owned by such Loan Party or its relevant Subsidiary, as applicable, free and clear of all Liens other than Permitted Liens. 
  

 -63- 

 6.12 Right to Cure. The Agent may, in its discretion, and shall, at the direction of the Required
Lenders, pay any amount or do any act required of a Loan Party hereunder or under any other Loan Document in order to preserve, protect, maintain or enforce the Obligations, the Collateral or the Agent’s Liens therein, and which a Loan Party
fails to pay or do (or cause to be paid or done), including, without limitation, payment of any judgment against a Loan Party or any of its Subsidiaries, any insurance premium, any warehouse charge, any finishing or processing charge, any
landlord’s or bailee’s claim, and any other Lien upon or with respect to any of the Collateral. All payments that the Agent makes under this Section 6.12 and all out-of-pocket costs and expenses that the Agent pays or incurs in
connection with any action taken by it hereunder shall be charged to the Borrower’s Loan Account as a Base Rate Loan. Any payment made or other action taken by the Agent under this Section 6.12 shall be without prejudice to any right to
assert an Event of Default hereunder and to proceed thereafter as herein provided. 
 6.13 Power of Attorney. Each Loan Party hereby
appoints the Agent and the Agent’s designee as such Loan Party’s attorney, with power: (a) to endorse such Loan Party’s name on any checks, notes, acceptances, money orders, or other forms of payment or security that come into
the Agent’s or any Lender’s possession; (b) so long as any Default has occurred that has not been cured within any applicable grace period or Event of Default has occurred that has not been waived in writing by the Required Lenders,
to sign such Loan Party’s name on any invoice, bill of lading, warehouse receipt or other negotiable or non-negotiable Document constituting Collateral, on drafts against customers, on assignments of Accounts of such Loan Party, on notices of
assignment, financing statements and other public records and to file any such financing statements by electronic means with or without a signature as authorized or required by applicable law or filing procedure; (c) so long as any Default has
occurred that has not been cured within any applicable grace period or Event of Default has occurred that has not been waived in writing by the Required Lenders, to ask, demand, collect, sue for, recover, compound, receive and give acquittance and
receipts for moneys, due or to become due under or with respect to any of the Collateral; (d) so long as any Event of Default has occurred that has not been waived in writing by the Required Lenders, to notify the post office authorities to
change the address for delivery of such Loan Party’s mail to an address designated by the Agent and to receive, open and dispose of all mail addressed to such Loan Party; (e) to send requests for verification of Accounts of such Loan Party
to customers or Account Debtors; (f) so long as any Default has occurred that has not been cured within any applicable grace period or Event of Default has occurred that has not been waived in writing by the Required Lenders, to complete in
such Loan Party’s name or the Agent’s name, any order, sale or transaction, obtain the necessary Documents in connection therewith, and collect the proceeds thereof, (g) to clear Inventory of such Loan Party through customs in such
Loan Party’s name, the Agent’s name or the name of the Agent’s designee, and to sign and deliver to customs officials powers of attorney in such Loan Party’s name for such purpose; and (h) to do all things necessary to carry
out this Agreement. Each Loan Party ratifies and approves all acts of such attorney. None of the Lenders or the Agent nor their attorneys will be liable for any acts or omissions or for any error of judgment or mistake of fact or law, except for the
willful misconduct of the Agent or such Lender. This power, being coupled with an interest, is irrevocable until this Agreement has been terminated and the Obligations (other than contingent indemnification obligations for which a claim has not been
asserted) have been fully satisfied. 
  

 -64- 

 6.14 The Agent’s and Lenders’ Rights, Duties and Liabilities. 
 (a) Each Loan Party assumes all responsibility and liability arising from or relating to the use, sale or other disposition of the
Collateral. The Obligations shall not be affected by any failure of the Agent or any Lender to take any steps to perfect the Agent’s Liens or to collect or realize upon any of the Collateral, nor shall loss of or damage to any of the Collateral
release any Loan Party from any of the Obligations. Following the occurrence and continuation of an Event of Default, the Agent may (but shall not be required to), and at the direction of the Required Lenders shall, without notice to or consent from
any of the Loan Parties, sue upon or otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions or
releases, and take or omit to take any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the
foregoing, without discharging or otherwise affecting the liability of any Loan Party for the Obligations or under this Agreement or any other agreement now or hereafter existing between the Agent and/or any Lender and any Loan Party. 
 (b) It is expressly agreed by each Loan Party that, anything herein to the contrary notwithstanding, subject to the Effect of Bankruptcy,
such Loan Party shall remain liable under each of its leases, agreements, contracts and licenses (each a “Contract” and collectively, the “Contracts”) to observe and perform all the conditions and obligations to be
observed and performed by it thereunder. Subject to the Effect of Bankruptcy, each Loan Party further agrees to enforce the terms and provisions of its Contracts in accordance with their terms, and not to waive, amend or modify any provision thereof
in any manner other than in the ordinary course of business of such Loan Party in accordance with past practices and for a valid economic or other business reason benefitting such Loan Party (provided that in no event may any waiver, amendment or
modification be made that could reasonably be expected to have a Material Adverse Effect). At the request of the Agent, a Loan Party will deliver copies of each material Contract to which it is a party and each material amendment or modification
thereof to the Agent promptly upon the execution and delivery thereof. Neither the Agent nor any Lender shall have any obligation or liability under any Contract by reason of or arising out of this Agreement or the granting herein of a Lien thereon
or the receipt by the Agent or any Lender of any payment relating to any Contract pursuant hereto. Neither the Agent nor any Lender shall be required or obligated in any manner to perform or fulfill any of the obligations of a Loan Party under or
pursuant to any Contract, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any Contract, or to present or file any claims, or to
take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
 (c) The Agent may at any time after an Event of Default shall have occurred and be continuing, without prior notice to the applicable Loan
Party, notify Account Debtors, parties to the Contracts of such Loan Party and obligors in respect of Instruments and Chattel Paper of such Loan Party, that the Accounts of such Loan Party and the right, title and interest of such Loan Party in and
under such Contracts, 

  

 -65- 

 
Instruments and Chattel Paper have been assigned to the Agent, and that payments shall be made directly to the Agent, for itself and the benefit of the
Lenders. Upon the request of the Agent, a Loan Party shall so notify Account Debtors, parties to Contracts of such Loan Party and obligors in respect of Instruments and Chattel Paper of such Loan Party. 
 (d) The Agent may at any time after the occurrence of an Event of Default and unless and until the same shall be waived in writing by the
Required Lenders in the Agent’s own name or in the name of the applicable Loan Party communicate with Account Debtors, parties to Contracts, obligors in respect of Instruments and obligors in respect of Chattel Paper to verify with such
Persons, to the Agent’s satisfaction, the existence, amount and terms of any such Accounts, Contracts, Instruments or Chattel Paper. If a Default or Event of Default shall have occurred and be continuing, each Loan Party, at its own expense,
shall cause the independent certified public accountants then engaged by such Loan Party to prepare and deliver to the Agent and each Lender at any time and from time to time promptly upon the Agent’s request the following reports with respect
to such Loan Party: (i) a reconciliation of all Accounts of such Loan Party; (ii) an aging of all Accounts of such Loan Party; (iii) trial balances; and (iv) a test verification of such Accounts of such Loan Party as the Agent
may request. Each Loan Party, at its own expense, shall deliver to the Agent the results of each physical verification, if any, which such Loan Party may in its discretion have made, or caused any other Person to have made on its behalf, of all or
any portion of its Inventory. 
 6.15 Patents, Trademarks and Copyrights. 
 (a) As of the Closing Date, no Loan Party has any interest in, or title to, any material patent, industrial design or trademark except as
set forth in Schedule 6.15 hereto. 
 (b) Each Loan Party shall notify the Agent immediately if it knows or has reason to know
that any application or registration relating to any material patent, industrial design or trademark (now or hereafter existing) may become abandoned or dedicated, or of any adverse determination or development (including the institution of, or any
such determination or development in, any proceeding in the United States Patent and Trademark Office or any court) regarding such Loan Party’s ownership of such patent, industrial design or trademark, its right to register the same, or to keep
and maintain the same. 
 (c) Each Loan Party shall deliver to the Agent, together with each delivery of
financial statements pursuant to Section7.2(a), a list of all additional patents, industrial designs, trademarks and copyrights, if any, for which an application for registration has been filed with the United States Patent and Trademark
Office, the United States Copyright Office or any similar office or agency during the period covered in such financial statements. 
 (d) Each Loan Party shall take all commercially reasonable actions requested by the Agent to maintain and pursue each filed application, to obtain the relevant registration and to maintain the registration of each of the material patents,
industrial designs, trademarks and copyrights (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings. 

 

 -66- 

 (e) In the event that, in the reasonable opinion of the applicable Loan Party, any of the
material patent, industrial design, trademark or copyright is infringed upon, or misappropriated or diluted by a third party, the Authorized Representative shall notify the Agent promptly after any Loan Party learns thereof. Such Loan Party shall,
unless it shall reasonably determine that such patent, industrial design, trademark or copyright is in no way material to the conduct of its business or operations, promptly sue for infringement, misappropriation or dilution and to recover any and
all damages for such infringement, misappropriation or dilution, and shall take such other actions as the Agent shall deem appropriate under the circumstances to protect such patent, industrial design, trademark or copyright. 
 6.16 Grant of License to Use Intellectual Property. For the purpose of enabling the Agent to exercise rights and remedies hereunder (including in
order to take possession of, hold, preserve, process, assemble, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time as the Agent shall be lawfully entitled to exercise such rights and remedies pursuant to
Section 11.2 and the DIP Orders, each Loan Party hereby grants to the Agent, for the benefit of the Agent and Lenders, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to any Loan Party) to use,
license or sublicense any Proprietary Rights now owned or hereafter acquired by such Loan Party, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and
to all computer software and programs used for the compilation or printout thereof. 
 ARTICLE 7 
 BOOKS AND RECORDS: FINANCIAL INFORMATION: NOTICES 
 7.1 Books and Records. Each Loan Party shall maintain (and shall cause each of its Subsidiaries to maintain), at all times, correct and complete books, records and accounts in which complete, correct and timely
entries are made of its transactions in all material respects in accordance with GAAP. Each Loan Party shall (and shall cause each of its Subsidiaries to), by means of appropriate entries, reflect in such accounts and in all Financial Statements
liabilities and reserves for all taxes and provisions for depreciation and amortization of property and bad debts, all in accordance with GAAP. Each Loan Party shall maintain (and shall cause each of its Subsidiaries to maintain) at all times books
and records pertaining to the Collateral in such detail, form and scope as the Agent or any Lender shall reasonably require, including, but not limited to, records of (a) all payments received and all credits and extensions granted with respect
to the Accounts and (b) the return, rejection, repossession, stoppage in transit, loss, damage, or destruction of any Inventory. 
  

 -67- 

 7.2 Financial and Other Information. Each Loan Party shall promptly furnish to each Lender, all
such financial information as the Agent or any Lender shall reasonably request. Without limiting the foregoing, each Loan Party will furnish to the Agent, in sufficient copies for distribution by the Agent to each Lender, in such detail as the Agent
or the Lenders shall request, the following: 
 (a) As soon as available, but in any event not later than (i) with
respect to the months ending May 31, 2009 and June 30, 2009, thirty-seven (37) days after the end of such fiscal months, and (ii) with respect to each fiscal month thereafter, thirty (30) days after the end of each fiscal
month, (w) consolidated unaudited management prepared balance sheets of Borrower and its consolidated Subsidiaries as at the end of such fiscal month, and (x) consolidated unaudited management prepared statements of income and cash flow
for Borrower and its consolidated Subsidiaries for such fiscal month and for the period from the beginning of the Fiscal Year to the end of such fiscal month, all in reasonable detail, fairly presenting the financial position and results of
operations of Borrower and its consolidated Subsidiaries as at the date thereof and for such periods, and, in each case, in comparable form, figures for the corresponding period in the prior Fiscal Year and in the Loan Parties’ budget. The
Borrower shall certify by a certificate signed by its chief financial officer that all such statements present fairly the financial position and results of operations of Borrower and its consolidated Subsidiaries as at the dates thereof and the
results of operation of Borrower and its consolidated Subsidiaries for the periods then ended. 
 (b) Concurrently with the
delivery of the financial statements referred to in Section 7.2(a), a certificate of the chief financial officer of the Borrower (i) stating that, except as explained in reasonable detail in such certificate, (A) all of the
representations and warranties of the Loan Parties contained in this Agreement and the other Loan Documents are correct and complete in all material respects as at the date of such certificate as if made at such time; (B) the Loan Parties are,
at the date of such certificate, in compliance in all material respects with all of their respective covenants and agreements in this Agreement and the other Loan Documents; and (C) no Default or Event of Default then exists during the period
covered by such Financial Statements for such month; and (ii) attaching thereto the monthly management performance report for such month (which report shall be in a form substantially identical to the form of monthly management performance
report delivered to the Agent pursuant to the Pre-Petition Loan Documents). If such certificate discloses that a representation or warranty is not correct or complete, or that a covenant has not been complied with, or that a Default or Event of
Default existed or exists, such certificate shall set forth what action the Loan Parties have taken or propose to take with respect thereto. 
 (c) Intentionally Omitted. 
 (d) Promptly upon the filing thereof, copies of all reports, if
any, to or other documents filed by Holdings or any of its Subsidiaries with the Securities and Exchange Commission under the Exchange Act. 
 (e) As soon as available, but in any event not later than 15 days after any Loan Party’s or any of its Subsidiaries’ receipt thereof, a copy of all management reports and management letters prepared for any
Loan Party or any of its Subsidiaries by any independent certified public or chartered accountants of any Loan Party or any of its Subsidiaries. 
  

 -68- 

 (f) Promptly after their preparation, copies of any and all proxy statements, financial
statements, and reports which any Loan Party or any of its Subsidiaries makes available to its public shareholders. 
 (g) If
requested by the Agent, promptly after filing with the IRS, a copy of each federal income tax return filed by Holdings or by any of its Subsidiaries. 
 (h) Promptly after the furnishing or filing thereof, copies of any statement, report or pleading furnished to or filed with the Bankruptcy Court or the Creditors’ Committee in connection with the Case or with the
Canadian Bankruptcy Court in connection with the Canadian Case; provided that the receipt of such documents by counsel to the Agent and the Co-Collateral Agents in accordance with normal noticing provisions and practices under the Bankruptcy
Code shall satisfy this requirement. 
 (i) Such additional information as the Agent and/or any Lender may from time to time
reasonably request regarding the financial and business affairs of any Loan Party or any Subsidiary thereof. 
 7.3 Notices to the
Lenders. Each Loan Party shall notify the Agent, in writing, of the following matters at the following times: 
 (a)
Immediately after becoming aware of any Default or Event of Default, and, in the case of any Default or Event of Default, such Loan Party shall specify in such written notice that such written notice is a notice of a Default or an Event of Default.

 (b) Promptly (but in any event not more than 2 Business Days) after becoming aware of the assertion by the holder of any
material Debt incurred after the Petition Date of such Loan Party or any of its Subsidiaries that a default exists with respect thereto or that such Loan Party or Subsidiary is not in compliance with the terms thereof, or the threat or commencement
by such holder of any enforcement action because of such asserted default or non-compliance. 
 (c) Promptly (but in any event
not more than 2 Business Days) after becoming aware of any event or circumstance which could reasonably be expected to have a Material Adverse Effect. 
 (d) Promptly (but in any event not more than 2 Business Days) after becoming aware of any pending or threatened action, suit, proceeding, or counterclaim by any Person, or any pending or threatened investigation by a
Governmental Authority, which could reasonably be expected to have a Material Adverse Effect. 
 (e) Promptly (but in any
event not more than 2 Business Days) after becoming aware of any pending or threatened strike, work stoppage, unfair labor practice claim, or other labor dispute affecting any Loan Party or any of its Subsidiaries in a manner which could reasonably
be expected to have a Material Adverse Effect. 
  

 -69- 

 (f) Promptly (but in any event not more than 2 Business Days) after becoming aware of any
violation of any law, statute, regulation, or ordinance of a Governmental Authority affecting any Loan Party or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect. 
 (g) Promptly (but in any event not more than 2 Business Days) after receipt of any notice of any violation by any Loan Party or any of its
Subsidiaries of any Environmental Law which could reasonably be expected to have a Material Adverse Effect or that any Governmental Authority has asserted that any Loan Party or any of its Subsidiaries is not in compliance with any Environmental Law
which could reasonably be expected to have a Material Adverse Effect or is investigating any Loan Party’s or any of its Subsidiaries’ compliance therewith. 
 (h) Promptly (but in any event not more than two Business Days) after receipt of any written notice that any Loan Party or any of its
Subsidiaries is or may be liable to any Person as a result of the Release or threatened Release of any Contaminant or that such Loan Party or Subsidiary is subject to investigation by any Governmental Authority evaluating whether any remedial action
is needed to respond to the Release or threatened Release of any Contaminant which, in either case, is reasonably likely to give rise to liability in excess of $1,000,000. 
 (i) Immediately after receipt of any written notice of the imposition of any Environmental Lien against any property of any Loan Party or
any of its Subsidiaries. 
 (j) Any organization change in any Loan Party’s or any of its Subsidiaries’ name as it
appears in its state or other jurisdiction of incorporation or other organization, state or other jurisdiction of incorporation or organization, type of entity, organizational identification number, locations of Collateral, or form of organization,
trade names or styles under which such Loan Party or any of its Subsidiaries will sell Inventory or create Accounts, or to which instruments in payment of Accounts may be made payable, in each case at least thirty (30) days prior thereto.

 (k) Within ten (10) Business Days after any Loan Party, any of its Subsidiaries or any ERISA Affiliate knows or has
reason to know, that an ERISA Event that would reasonably be expected to result in a Material Adverse Effect has occurred, and, when known, any action taken or threatened by the IRS, the DOL or the PBGC or other Governmental Authority with respect
thereto. 
 (l) Upon request, or, in the event that such filing reflects a significant change with respect to the matters
covered thereby, within three (3) Business Days after the filing thereof with the PBGC, the DOL, the IRS, or other Governmental Authority, as applicable, copies of the following: (i) each annual report (form 5500 series), including
Schedule B thereto, filed with the PBGC, the DOL, the IRS, or other Governmental Authority, with respect to each Plan, (ii) a copy of each funding waiver request filed with the PBGC, the DOL, the IRS, or other Governmental Authority, with
respect to any Plan and all communications received by any Loan Party, any of its Subsidiaries, or any ERISA Affiliate of any Loan Party from the PBGC, the DOL, the IRS, or other 

  

 -70- 

 
Governmental Authority, with respect to such request, and (iii) a copy of each other filing or notice filed with the PBGC, the DOL, the IRS, or other
Governmental Authority, with respect to each Plan by any Loan Party, any of its Subsidiaries or any ERISA Affiliate of any Loan Party. 
 (m) Upon request and to the extent available, copies of each actuarial report for any Plan or Multiemployer Plan and annual report for any Multiemployer Plan; and within three (3) Business Days after receipt
thereof by Borrower or any of its Subsidiaries or ERISA Affiliates, copies of the following: (i) any notices of the PBGC’s or other authority’s intention to terminate a Plan as to have a trustee appointed to administer such Plan,
(ii) any unfavorable determination letter from the IRS regarding the qualification of a Plan under Section 401(a) of the Code (and, upon request, any favorable IRS determination letter), or (iii) any notice from a Multiemployer Plan
regarding the imposition of withdrawal liability. 
 (n) Within three (3) Business Days after the occurrence thereof, any
failure by any Loan Party, any of its Subsidiaries or any ERISA Affiliate to make one or more required installments or any other required payments under Section 412 of the Code or the applicable laws of any other jurisdiction on or before the
due date for such installment or payment, which, in the aggregate, equal or exceed $1,000,000. 
 (o) Within three
(3) Business Days after any Loan Party or any of its Subsidiaries or any ERISA Affiliates knows or has reason to know that any of the following events has or will occur: (i) a Multiemployer Plan has been or will be terminated;
(ii) the administrator or plan sponsor of a Multiemployer Plan intends to terminate a Multiemployer Plan; (iii) the PBGC has instituted or will institute proceedings under Section 4042 of ERISA to terminate a Multiemployer Plan; or
(iv) with respect to any Plan of a Canadian Subsidiary, any Lien arises with respect to such Plan (save for contribution amounts not yet due). 
 Each
notice given under this Section shall describe the subject matter thereof in reasonable detail, and shall set forth the action that any Loan Party, its Subsidiary, or any ERISA Affiliate, as applicable, has taken or proposes to take with respect
thereto. 
 ARTICLE 8 
 GENERAL
WARRANTIES AND REPRESENTATIONS 
 Each Loan Party warrants and represents to the Agent and the Lenders that except as hereafter disclosed
to and accepted by the Agent: 
 8.1 Authorization. Upon entry of the Interim Borrowing Order or the Final Borrowing Order, as
applicable, each of such Loan Party and its Subsidiaries has the corporate power and authority to execute, deliver and perform this Agreement and the other Loan Documents to which it is a party, to incur the Obligations, and to grant to the Agent
Liens upon and security interests in the Collateral owned by it. Subject to the entry of the Interim Borrowing Order or the Final Borrowing Order, as applicable, each of such Loan Party and its Subsidiaries 

  

 -71- 

 
has taken all necessary corporate action (including, without limitation, obtaining approval of its stockholders if necessary) to authorize its execution,
delivery, and performance of this Agreement and the other Loan Documents to which it is a party. Subject to the entry of the Interim Borrowing Order, no consent, approval, or authorization of, or declaration or filing with, any Governmental
Authority, and no consent of any other Person, is required in connection with such Loan Party’s or any of its Subsidiary’s execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party. This
Agreement and the other Loan Documents have been duly executed and delivered by each of the Loan Parties and its Subsidiaries party thereto, and, upon the entry of the Interim Borrowing Order or the Final Borrowing Order, as applicable, constitute
the legal, valid and binding obligations of each of the Loan Parties and its Subsidiaries party thereto, enforceable against each such Loan Party and its Subsidiaries in accordance with their respective terms without defense, set-off or
counterclaim. Such Loan Party’s and Subsidiary’s execution, delivery, and performance of this Agreement and the other Loan Documents to which it is a party do not and will not, except for Liens created under the Loan Documents or Permitted
Liens, result in the creation or imposition of any Lien upon the property (other than Ratable Collateral) of such Loan Party or any of its Subsidiaries by reason of the terms of (a) any contract, mortgage, Lien, lease, agreement, indenture, or
instrument to which such Loan Party or any of its Subsidiaries is a party or which is binding upon it, (b) any Requirement of Law applicable to such Loan Party or any of its Subsidiaries, or (c) the certificate or articles of incorporation
or by-laws, amendment, continuation, amalgamation or other organizational documents of such Loan Party or any of its Subsidiaries. 
 8.2
Validity and Priority of Security Interest. The provisions of this Agreement and the other Loan Documents create legal and valid Liens on all the Collateral in favor of the Agent, for the ratable benefit of the Agent and the Lenders, and such
Liens constitute perfected and continuing Liens on all the Collateral, having priority over all other Liens other than as set forth in Section 6.1(d) hereof. 
 8.3 Organization and Qualification. Each of such Loan Party and its Subsidiaries (a) is duly organized or incorporated, as the case may be, and validly existing in good standing under the laws of the
jurisdiction of its organization or incorporation, as the case may be, (b) is qualified to do business as a foreign corporation and is in good standing in the jurisdictions in which it owns or leases property or in which the conduct of its
business requires it to so qualify or be licensed, except where the failure to so qualify or be licensed is not reasonably likely to have a Material Adverse Effect and (c) has all requisite power and authority to conduct its business and to own
its property. 
 8.4 Corporate Name: Prior Transactions. Except as set forth on Schedule 8.4, as of the Closing Date, neither
such Loan Party nor any of its Subsidiaries has, during the past five (5) years, been known by or used any other corporate or fictitious name, or been a party to any merger, consolidation or amalgamation, or acquired all or substantially all of
the assets of any Person, or acquired any of its property outside of the ordinary course of business. 
 8.5 Subsidiaries. Schedule
8.5 is a true and correct list of the name and relationship to Holdings of each and all of Holdings’s Subsidiaries. 
 8.6
Intentionally Omitted. 
  

 -72- 

 8.7 Capitalization. On the Closing Date, the equity capitalization of each of the Loan Parties
(other than Holdings) and its Subsidiaries is as shown on Schedule 8.7. 
 8.8 Debt. On the Closing Date, after giving effect
to the making of the Revolving Loans to be made on the Closing Date, the Loan Parties and their Subsidiaries have no Debt, except (a) the Obligations, (b) the Pre-Petition Liabilities, (c) the Term Debt, (d) the Convertible
Notes, (e) Debt described in Section 9.11(j), and (f) Debt described on Schedule 8.8. 
 8.9 Distributions.
Since December 31, 2007, no Distribution has been declared, paid, or made upon or in respect of any capital stock or other securities of Holdings or any of its Subsidiaries. 
 8.10 Title to Property. Each Loan Party and each of its Subsidiaries has good and marketable title in fee simple to its real property, if any,
listed in Schedule 8.10 hereto as being owned by such Loan Party or Subsidiary, and each of such Loan Party and Subsidiary has good title to, or a valid leasehold interest in, all of its other property, free of all Liens except Permitted
Liens. 
 8.11 Real Estate: Leases. Schedule 8.11 sets forth a correct and complete list, as of the Closing Date, of all leases
and subleases of real property by such Loan Party or any of its Subsidiaries as lessee or sublessee, and all leases and subleases of real property by such Loan Party or Subsidiary, as applicable, as lessor, lessee, sublessor or sublessee. Each of
such leases and subleases is valid and enforceable in accordance with its terms and is in full force and effect, and no default by such Loan Party or Subsidiary, as applicable, or, to the knowledge of such Loan Party, any other party to any such
lease or sublease exists, in each case, except for the Effect of Bankruptcy and except for any lease or sublease where the lack of validity and enforceability thereof or of any default thereunder is not reasonably likely to have a Material Adverse
Effect. Each Loan Party and each of its Subsidiaries have good and marketable title in fee simple to the Real Estate identified on Schedule 8.10 as owned by such Loan Party or Subsidiary, or valid leasehold interests in all Real Estate
designated therein as “leased” by such Loan Party or Subsidiary, subject to the Effect of Bankruptcy, and such Loan Party or Subsidiary has good, indefeasible, and merchantable title to all of its other property, free of all Liens except
Permitted Liens. 
 8.12 Proprietary Rights. Schedule 8.12 sets forth a correct and complete list of all of such Loan
Party’s and each of its Subsidiaries’ material Proprietary Rights (other than copyrights) as of the Closing Date. As of the Closing Date, none of the material Proprietary Rights is subject to any licensing agreement or similar arrangement
except as set forth on Schedule 8.12. To the best of such Loan Party’s knowledge, none of the material Proprietary Rights infringes on or conflicts with any other Person’s property, and no other Person’s property infringes on
or conflicts with the material Proprietary Rights. Such Loan Party and each of its Subsidiaries has all Proprietary Rights necessary to the conduct of such Loan Party’s and its Subsidiaries’ respective businesses. 
 8.13 Trade Names. As of the Closing Date, all trade names or styles under which such Loan Party or any of its Subsidiaries will sell Inventory or
create Accounts, or to which instruments in payment of Accounts may be made payable, are listed on Schedule 8.13. 
  

 -73- 

 8.14 Litigation. Except as set forth on Schedule 8.14, there is no pending, or to the best
of such Loan Party’s knowledge threatened, action, suit, proceeding, or counterclaim by any Person, or investigation by any Governmental Authority, or any basis for any of the foregoing, which could reasonably be expected to have a Material
Adverse Effect. 
 8.15 Restrictive Agreements. None of such Loan Party nor any of its Subsidiaries is a party to any contract or
agreement entered into after the Petition Date, or subject to any charter or other corporate restriction, which affects its ability to execute, deliver, and perform the Loan Documents and repay the Obligations or which materially and adversely
affects or, insofar as such Loan Party can reasonably foresee, could reasonably be expected to materially and adversely affect, the property, business, operations, or condition (financial or otherwise) of such Loan Party or Subsidiary, or would in
any respect have a Material Adverse Effect. 
 8.16 Labor Disputes. Except as set forth on Schedule 8.16, as of the Closing
Date, (a) there is no collective bargaining agreement or other labor contract covering employees of such Loan Party or any of its Subsidiaries, (b) no such collective bargaining agreement or other labor contract is scheduled to expire
during the term of this Agreement, (c) to the best of such Loan Party’s knowledge, no union or other labor organization is seeking to organize, or to be recognized as, a collective bargaining unit of employees of such Loan Party or any of
its Subsidiaries or for any similar purpose, and (d) there is no pending or (to the best of such Loan Party’s knowledge) threatened, strike, work stoppage, material unfair labor practice claim, or other material labor dispute against or
affecting such Loan Party or any of its Subsidiaries or its employees. 
 8.17 Environmental Laws. Except as otherwise disclosed on
Schedule 8.17: 
 (a) Such Loan Party and its Subsidiaries are in compliance in all material respects with all
Environmental Laws and neither such Loan Party nor any of its Subsidiaries nor any of its presently owned real property or presently conducted operations, nor to the best of such Loan Party’s knowledge, its previously owned real property or
prior operations, is subject to any enforcement order from or liability agreement with any Governmental Authority or private Person respecting (i) compliance with any Environmental Law or (ii) any potential liabilities and costs or
remedial action arising from the Release or threatened Release of a Contaminant. 
 (b) Such Loan Party and each of its
Subsidiaries have obtained all permits necessary for their respective current operations under Environmental Laws, and all such permits are in good standing and such Loan Party and each of its Subsidiaries are in compliance with all terms and
conditions of such permits. 
 (c) Neither such Loan Party nor any of its Subsidiaries, nor, to the best of such Loan
Party’s knowledge, any of their respective predecessors in interest, has in violation of applicable law stored, treated or disposed of any hazardous waste. 
 (d) Neither such Loan Party nor any of its Subsidiaries have received any summons, complaint, order or similar written notice indicating
that they are not currently in compliance with, or that any Governmental Authority is investigating their compliance with, any Environmental Laws or that it is or may be liable to any other Person as a result of a Release or threatened Release of a
Contaminant. 
  

 -74- 

 (e) None of the present or, to such Loan Party’s knowledge, past operations of such
Loan Party or any of its Subsidiaries is the subject of any investigation by any Governmental Authority evaluating whether any remedial action is needed to respond to a Release or threatened Release of a Contaminant. 
 (f) There is not now, nor to the best of such Loan Party’s knowledge has there ever been, (i) on or in any Real Estate owned by
any Loan Party or (ii) on or in any of the Real Estate leased by any Loan Party, to the extent caused by such Loan Party or any of its Subsidiaries or to the extent the remediation costs incurred or to be incurred by the Loan Parties or any of
their Subsidiaries in connection therewith exceed or could reasonably be expected to exceed $1,000,000 in the aggregate: 
 (i) any
underground storage tanks or surface impoundments, 
 (ii) any asbestos-containing material, or 
 (iii) any polychlorinated biphenyls (PCBs) used in hydraulic oils, electrical transformers or other equipment. 
 (g) Neither such Loan Party nor any of its Subsidiaries has filed any notice under any requirement of Environmental Law reporting a spill
or accidental and unpermitted Release or discharge of a Contaminant into the environment that has not been cured to the satisfaction of the relevant Governmental Authority. 
 (h) Neither such Loan Party nor any of its Subsidiaries has entered into any negotiations or settlement agreements with any Person
(including, without limitation, the prior owner of their respective property) imposing material obligations or liabilities on such Loan Party or any of its Subsidiaries with respect to any remedial action in response to the Release of a Contaminant
or environmentally related claim. 
 (i) No Environmental Lien has attached to any owned Real Estate of any of the Loan
Parties or, to the best of such Loan Party’s knowledge, any leased Real Estate of any of the Loan Parties. 
 8.18 No Violation of
Law. Except as set forth on Schedule 8.18, neither such Loan Party nor any of its Subsidiaries is in violation of any law, statute, regulation, ordinance, judgment, order, or decree applicable to it, which violation could reasonably be
expected to have a Material Adverse Effect. 
 8.19 No Default. Except pursuant to the Effect of Bankruptcy, neither such Loan Party
nor any of its Subsidiaries is in default with respect to any note, indenture, loan agreement, mortgage, lease, deed, or other agreement to which such Loan Party or any its Subsidiaries is a party or by which it is bound, which default could
reasonably be expected to have a Material Adverse Effect. 
  

 -75- 

 8.20 ERISA Compliance. Except as specifically disclosed in Schedule 8.20 or with respect to
the Borrower Pension Plan: 
 (a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA,
the Code, and other federal or state law. 
 (b) Each Plan which is intended to qualify under Section 401(a) of the Code
has received a favorable determination letter from the IRS and to the knowledge of such Loan Party, nothing has occurred which would reasonably be expected to cause the loss of such qualification. 
 (c) Such Loan Party, each of its Subsidiaries and each ERISA Affiliate has made all required material contributions (“material
contributions” meaning for the purposes hereof, all required contributions in excess of $1,000,000) to any Pension Plan subject to Section 412 of the Code and no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Pension Plan. 
 (d) No Plan is a Multiemployer
Plan as of the Closing Date and no Plan shall be a Multiemployer Plan after the Closing Date. 
 (e) There are no pending or,
to the knowledge of such Loan Party, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect. 
 (f) There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan which has
resulted or could reasonably be expected to result in a Material Adverse Effect. 
 (g) (i) No ERISA Event has occurred or is
reasonably expected to occur which would result in a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability in excess of $25,000,000; and (iii) to the knowledge of such Loan Party, neither such Loan Party, any of
its Subsidiaries, nor any ERISA Affiliate has engaged in a transaction that could reasonably be expected to be subject to Section 4069 or 4212(c) of ERISA. 
 8.21 Taxes. Such Loan Party and its Subsidiaries has filed all federal, state, foreign, provincial and other tax returns and reports required to be filed after the Petition Date, and has paid all federal and
other taxes, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable after the Petition Date, except for Permitted Liens described in clause (a) of the definition
thereof. 
 8.22 Regulated Entities. None of such Loan Party, any of its Subsidiaries or any Person controlling such Loan Party, or
any Subsidiary, is an “Investment Company” within the meaning of the Investment Company Act of 1940. None of such Loan Party nor any of its Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 2005, the
Federal Power Act, the Interstate Commerce Act, any state public utilities code or law, or any other federal or state statute or regulation limiting its ability to incur indebtedness. 
  

 -76- 

 8.23 Use of Proceeds: Margin Regulations. The proceeds of the Loans are to be used solely for
working capital purposes and as otherwise set forth in Section 9.20 hereof. Neither such Loan Party nor any of its Subsidiaries is engaged in the business of purchasing or selling Margin Stock or extending credit for the purpose of purchasing
or carrying Margin Stock. 
 8.24 Copyrights, Patents, Trademarks and Licenses, etc. To the best knowledge of such Loan Party, such
Loan Party and each of its Subsidiaries owns or is licensed or otherwise has the right to use all of the patents, trademarks, service marks, trade names, copyrights, contractual franchises, licenses, rights of way, authorizations and other rights
that are reasonably necessary for the operation of its businesses, without conflict with the Proprietary Rights of any other Person. To the best knowledge of such Loan Party, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now intended to be employed, by such Loan Party or any Subsidiary infringes upon any material Proprietary Rights held by any other Person. No claim or litigation regarding any of the foregoing is
pending or, to the knowledge of such Loan Party, threatened, and, to the knowledge of such Loan Party, no patent, invention, device, application, principle or any statute, law, rule, regulation, standard or code is pending or proposed, which, in
either case, could reasonably be expected to have a Material Adverse Effect. 
 8.25 No Material Adverse Effect. Since the Petition
Date, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 
 8.26 Full Disclosure. 
 (a) None of the representations or warranties made by such
Loan Party or any of its Subsidiaries in the Loan Documents as of the date such representations and warranties are made or deemed made, and none of the information or statements contained in any exhibit, report, statement, certificate or other
writing furnished by or on behalf of such Loan Party or any of its Subsidiaries or otherwise made available by or on behalf of such Loan Party or any of its Subsidiaries to the Agent or any Lender in connection with the Loan Documents (including the
offering and disclosure materials delivered by or on behalf of such Loan Party or any of its Subsidiaries to the Lenders prior to the Closing Date), contains any untrue statement of a material fact or omits any material fact required to be stated
therein or necessary to make the information or statements made therein, in light of the circumstances under which they are made, not misleading in any material respect as of the time when made or delivered. 
 (b) All budgets or other projections that have been furnished by or on behalf of such Loan Party or any of its Subsidiaries or otherwise
made available by or on behalf of such Loan Party or any of its Subsidiaries to the Agent or any Lender in connection with the Loan Documents were prepared in good faith based upon assumptions that are believed by the Loan Parties to be reasonable
at the time such budgets or other projections were furnished, it being understood that any such projections are not a guarantee of performance or results and actual results may differ, and such differences may be material. 
  

 -77- 

 8.27 Material Agreements. Schedule 8.27 hereto sets forth all material agreements and
contracts to which such Loan Party or any of its Subsidiaries is a party or is bound as of the Closing Date. 
 8.28 Bank Accounts.
Schedule 8.28 contains a complete and accurate list of all material bank accounts maintained by Borrower or any of its Subsidiaries with any bank or other financial institution as of the Closing Date. 
 8.29 Commercial Tort Claims. As of the Closing Date, no Loan Party has any commercial tort claim arising from any Collateral. 
 ARTICLE 9 
 AFFIRMATIVE AND NEGATIVE
COVENANTS 
 Each Loan Party covenants to the Agent and each Lender that, so long as any of the Obligations remain outstanding or this
Agreement is in effect: 
 9.1 Taxes and Other Obligations. Such Loan Party shall, and shall cause each of its Subsidiaries to,
(a) file when due all foreign, federal, provincial, state and other tax returns and other reports which it is required to file after the Petition Date; (b) pay, or provide for the payment, when due after the Petition Date, of all taxes,
fees, assessments and other governmental charges against it or upon its property, income and franchises, make all required withholding and other tax deposits, and establish adequate reserves for the payment of all such items, and provide to the
Agent and the Lenders, upon request, satisfactory evidence of its timely compliance with the foregoing; and (c) pay when due all Debt owed by it and all claims of materialmen, mechanics, carriers, warehousemen, landlords, processors and other
like Persons, and all other indebtedness owed by it and perform and discharge in a timely manner all other obligations undertaken by it, in each case subject to the Effect of Bankruptcy; provided, however, so long as the Authorized Representative
has notified the Agent in writing, neither such Loan Party nor any of its Subsidiaries need pay any tax, fee, assessment or governmental charge that (i) it is contesting in good faith by appropriate proceedings diligently pursued, (ii) as
to which such Loan Party or Subsidiary, as the case may be, has established proper reserves for as provided in GAAP, and (iii) no Lien (other than a Permitted Lien) results from such non-payment. 
 9.2 Legal Existence and Good Standing. Such Loan Party shall, and shall cause each of its Subsidiaries to, maintain its legal existence and its
qualification and good standing in all jurisdictions in which the failure to maintain such existence and qualification or good standing could reasonably be expected to have a Material Adverse Effect. 
 9.3 Compliance with Law and Agreements: Maintenance of Licenses. Except as set forth on Schedule 9.3, such Loan Party shall, and shall
cause each of its Subsidiaries to, comply in all material respects with all Requirements of Law of any Governmental Authority having jurisdiction over it or its business (including the Federal Fair Labor Standards Act and all Environmental Laws).
Such Loan Party shall, and shall cause each of its Subsidiaries to, obtain 

  

 -78- 

 
and maintain all material licenses, permits, franchises, and governmental authorizations necessary to own its property and to conduct its business as
conducted on the Closing Date. Neither such Loan Party nor any of its Subsidiaries shall modify, amend or alter its certificate or article of incorporation or other organizational documents other than in a manner which does not adversely affect the
rights of the Lenders or the Agent. 
 9.4 Maintenance of Property; Inspection of Property. 
 (a) Such Loan Party shall, and shall cause each of its Subsidiaries to, maintain all of its property necessary and useful in the conduct
of its business, in good operating condition and repair, ordinary wear and tear excepted unless such Loan Party or Subsidiary, as the case may be, determines in good faith that the continued maintenance of any of its properties is no longer
economically desirable. 
 (b) Such Loan Party shall permit representatives and independent contractors of the Agent and the
Co-Collateral Agents (at the expense of such Loan Party) to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom and to discuss its affairs, finances and
accounts with its directors, officers and independent public accountants (at which such discussions such Loan Party shall have the right to be present) at such reasonable times during normal business hours and as soon as may be reasonably desired,
upon reasonable advance notice to such Loan Party; provided, however, when an Event of Default exists, the Agent, the Co-Collateral Agents or any Lender may do any of the foregoing at the expense of such Loan Party at any reasonable
time without advance notice, except that such Loan Party shall have the right to be present at any discussions with its independent public accountants. 
 9.5 Insurance. 
 (a) Such Loan Party shall, and shall cause each of its Subsidiaries
to, maintain with financially sound and reputable insurers having a rating of at least A or better by Best Rating Guide, the insurance coverage maintained by such Loan Party and its Subsidiaries on the Closing Date and such additional coverage as
the Agent or the Required Lenders may reasonably request from time to time. Without limiting the foregoing, upon the Agent’s or the Required Lenders’ request, such Loan Party or Subsidiary, as appropriate, shall maintain flood insurance
for its Inventory which is, at any time, located in a Special Flood Hazard Area so identified by the Director of the Federal Emergency Management Agency. 
 (b) Such Loan Party shall, and shall cause each of its Subsidiaries to, cause the Agent, for the ratable benefit of the Agent and the Lenders, to be named in each such policy as secured party and a loss payee or
additional insured, in a manner reasonably acceptable to the Agent. Each policy of insurance shall contain a clause or endorsement requiring the insurer to give not less than (x) 10 days’ prior written notice to the Agent in the event of
cancellation of the policy for nonpayment of premium and (y) 30 days’ prior written notice to the Agent in the event of cancellation of the policy for any other reason and a clause or endorsement stating that the interest of the Agent
shall not be invalidated 

  

 -79- 

 
by any act or neglect of any Loan Party, any of its Subsidiaries or the owner of any property, by any foreclosure or other proceedings or notice of sale
relating to such property nor by any change in title or ownership of such property or by the occupation of the locations for purposes more hazardous than are permitted by such policy. All premiums for such insurance shall be paid by such Loan Party
or Subsidiary, as appropriate, when due, and certificates of insurance and photocopies of the policies shall be delivered to the Agent, in each case in sufficient quantity for distribution by the Agent to each of the Lenders. If such Loan Party or
Subsidiary, as appropriate, fails to procure such insurance or to pay the premiums therefor when due, the Agent may, and at the direction of the Required Lenders shall, do so from the proceeds of Revolving Loans. 
 (c) Such Loan Party shall, and shall cause each of its Subsidiaries to, promptly notify the Agent and the Lenders of any loss, damage, or
destruction to any material portion of the Collateral, whether or not covered by insurance. The Agent is hereby authorized to collect all insurance and condemnation proceeds in respect of Collateral directly, and to apply them, after deducting from
such proceeds the reasonable expenses, if any, incurred by the Agent in the collection or handling thereof, ratably, to the reduction of the Obligations in the order provided for in Section 4.6. 
 9.6 Environmental Laws. Such Loan Party shall, and shall cause each of its Subsidiaries to, conduct its business in material compliance with all
Environmental Laws applicable to it, including, without limitation, those relating to the generation, handling, use, storage, and disposal of any Contaminant. Such Loan Party shall, and shall cause each of its Subsidiaries to, take prompt and
appropriate action to respond to any material non-compliance with Environmental Laws and shall regularly report to the Agent on such response. Such Loan Party shall provide such information and certifications which the Agent may reasonably request
from time to time to evidence compliance with this Section. 
 9.7 Compliance with ERISA. Other than with respect to the Borrower
Pension Plan, such Loan Party shall, and shall cause each of its Subsidiaries and ERISA Affiliates to: (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code, and other federal or state
law; (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (c) make all required contributions to any Plan subject to Section 412 of the Code; (d) use its best reasonable
efforts not to engage in a transaction that could be subject to Section 4069 or 4212(c) of ERISA which could reasonably be expected to have a Material Adverse Effect; and (e) with respect to any Plan of a Canadian Subsidiary, not permit
any Lien to arise or exist in connection with such Plan (save for contributions not yet due). 
 9.8 Mergers, Consolidations or Sales.
Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, enter into any transaction of merger, amalgamation, reorganization, or consolidation, or transfer, sell, assign, lease, or otherwise dispose of all or any part of
its property, or wind up, liquidate or dissolve, or agree to do any of the foregoing, except 
 (a) for sales of Inventory in
the ordinary course of its business, 
 (b) for the 363 Sale; 
  

 -80- 

 (c) for sales or other dispositions of Equipment in the ordinary course of business that
are obsolete or no longer useable by such Loan Party or Subsidiary in its business with an aggregate fair market value not to exceed $2,500,000 in any Fiscal Year (exclusive of any net cash proceeds from any such sale or other disposition made in
such Fiscal Year which is reinvested in Equipment within 90 days of such sale or other disposition). All Equipment purchased with such proceeds shall be free and clear of all Liens, except the Agent’s Liens and other Permitted Liens;

 (d) for the sale or other disposition for cash of a registered trademark or application for registration of a trademark
(other than a material trademark) that the applicable Loan Party determines, in the exercise of good business judgment, is no longer beneficial, appropriate or consistent with such Loan Party’s merchandise assortment or brand image. Following
each such Equipment sale or disposition, such Loan Party or Subsidiary, as the case may be, shall apply such proceeds first, to satisfy any debt that is secured by a lien (other than the Agent’s Lien) encumbering such asset which is superior in
priority to the Agent’s, and second, to the Loans in accordance with Section 4.6; 
 (e) rejections and assumptions
of contracts in connection with the Case, subject to any approval rights of the Agent and the Co-Collateral Agents set forth herein; and 
 (f) other sales of assets (other than Accounts or Inventory) in an aggregate amount for all Loan Parties and their Subsidiaries not to exceed $5,000,000 during the term of this Agreement, provided that, subject
to the Intercreditor Agreement and the DIP Orders, the proceeds of such sales shall be applied ratably to the reduction of the Obligations in the order provided for in Section 4.6. 
 9.9 Distributions: Capital Change: Restricted Investments. Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to,
(i) directly or indirectly declare or make, or incur any liability to make, any Distribution, except a Distribution to a Loan Party; (ii) make any change in its capital structure (other than the conversion of the Convertible Notes into
common stock of Holdings) which could have a Material Adverse Effect or issue any capital stock other than common stock; or (iii) make any Restricted Investment. 
 9.10 Guaranties. Except as set forth on Schedule 9.10, such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, make, issue, or become liable on any Guaranty of Debt, except
(i) Guaranties of the Term Debt and the Convertible Notes, (ii) Guaranties of the Obligations in favor of the Agent, (iii) Guaranties of the Pre-Petition Liabilities pursuant to the Pre-Petition Loan Documents, and (iv) unsecured
Guaranties of Debt permitted to be incurred pursuant to Section 9.11. 
 9.11 Debt. Such Loan Party shall not, and shall not
suffer or permit any of its Subsidiaries to, incur or maintain any Debt, other than: 
 (a) the Obligations; 
 (b) other Debt set forth on Schedule 8.8; 
  

 -81- 

 (c) Debt owing to a Loan Party; provided, that the aggregate amount of Debt of all
Canadian Subsidiaries to all Loan Parties incurred after the Closing Date shall not exceed $7,500,000 at any time outstanding and shall be at all times subject to the terms and provisions of the Intercompany Loan Documents; 
 (d) Capital Leases of Equipment and purchase money secured Debt incurred to purchase Fixed Assets; provided, that (i) Liens
securing the same attach only to the Fixed Asset acquired by the incurrence of such Debt and (ii) the aggregate amount of such Debt (including Capital Leases) outstanding does not at any time exceed the amounts set forth in the 11 Week Cash
Flow (subject to the provisions of Section 9.31 hereof); 
 (e) Term Debt; 
 (f) Debt evidencing a refunding, renewal or extension of the Debt referred to in clauses (d) or (e) of this
Section 9.11; provided, that (i) the principal amount thereof is not increased, (ii) the Liens, if any, securing such refunded, renewed or extended Debt do not attach to any assets in addition to those assets, if any,
securing the Debt to be refunded, renewed or extended, (iii) no Person that is not an obligor or guarantor of such Debt as of the Closing Date shall become an obligor or guarantor thereof and (iv) the covenants, repayment provisions,
events of default and subordination provisions, if any, of such refunding, renewal or extension are no less favorable to the applicable Loan Party, the Agent or the Lenders than the original Debt; 
 (g) the Pre-Petition Liabilities; 
 (h) Debt under Hedge Agreements entered into in connection with the Term Loan and other unsecured Debt under Hedge Agreements entered into in the ordinary course of business and not for speculative purposes;

 (i) Debt consisting of the Convertible Notes; 
 (j) obligations secured by Permitted Liens described in clauses (a) and (d) of the definition thereof to the extent the same
would constitute Debt hereunder; and 
 (k) other unsecured Debt in an aggregate principal amount not to exceed $500,000 at
any time outstanding. 
 9.12 Prepayment. 
 Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, voluntarily prepay, acquire or defease any Debt except (i) the Obligations and the Pre-Petition Liabilities in accordance with
the terms of this Agreement, (ii) Debt set forth in Section 9.11(j) hereof, (iii) extinguishment of any of the Convertible Notes pursuant to a conversion of such Convertible Notes to common stock of Holdings as set forth in the
Convertible Notes Documents or to preferred stock of Holdings subject to rights and preferences reasonably satisfactory to the Agent and the Co-Collateral Agents, (iv) cash payments in lieu of, or in combination with, the issuance of common
stock of Holdings upon the requested conversion of the Convertible Notes 

  

 -82- 

 
of any holder thereof to common stock of Holdings, (v) payments of the Term Debt (including any refinancings thereof) permitted under, and in accordance
with, the Intercreditor Agreement; and (vi) amounts owing to creditors of the Loan Parties prior to the Petition Date as permitted by the Bankruptcy Court. 
 9.13 Transactions with Affiliates. Except as set forth below or on Schedule 9.13, such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, sell, transfer, distribute, or pay
any money or property, including, but not limited to, any fees or expenses of any nature (including, but not limited to, any fees or expenses for management services), to any Affiliate (other than a Loan Party), or lend or advance money or property
to any Affiliate (other than a Loan Party), or invest in (by capital contribution or otherwise) or purchase or repurchase any stock or indebtedness, or any property, of any Affiliate, or become liable on any Guaranty of the indebtedness, dividends,
or other Obligations of any Affiliate. Notwithstanding the foregoing, while no Event of Default has occurred and is continuing, such Loan Party or Subsidiary may engage in transactions with other Affiliates, including the Canadian Subsidiaries as
set forth in Section 9.11(c) and clause (k) of the definition of Restricted Investment, in each case in the ordinary course of business, in amounts and upon terms fully disclosed to the Agent and the Lenders, and no less favorable to such
Loan Party or Subsidiary than would be obtained in a comparable arm’s-length transaction with a third party who is not an Affiliate. 
 9.14 Investment Banking and Finder’s Fees. The Borrower shall not, and shall not suffer or permit any of its Subsidiaries to, pay or agree to pay, or reimburse any other party with respect to, any investment banking or similar
or related fee, underwriter’s fee, finder’s fee, or broker’s fee to any Person in connection with this Agreement except for the fees payable to the Independent Consultants, Alvarez & Marsal Canada ULC, Argus Management, and
Lazard Freres & Co., LLC. Such Loan Party shall defend and indemnify the Agent and the Lenders against and hold them harmless from all claims of any Person that such Loan Party or any of its Subsidiaries is obligated to pay for any such
fees, and all costs and expenses (including without limitation, attorneys’ fees) incurred by the Agent and/or any Lender in connection therewith. 
 9.15 Business Conducted. Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, modify or alter in any material manner the nature and type of its business as conducted at or prior
to the Closing Date. 
 9.16 Liens. Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, create,
incur, assume, or permit to exist any Lien on any property now owned or hereafter acquired by it, except Permitted Liens. Schedule 9.16 sets forth as of the Closing Date all tax, judgment, ERISA and other Liens of the type for which a notice
thereof is filed or recorded in any public record and all consensual perfected existing Liens the perfection of which is evidenced by filing, recordation or possession. 
 9.17 Sale and Leaseback Transactions. Such Loan Party shall not (and shall not suffer or permit any of its Subsidiaries to), directly or indirectly, enter into any arrangement with any Person providing for such
Loan Party or Subsidiary to lease or rent property that such Loan Party or Subsidiary, as appropriate, has sold or will sell or otherwise transfer to such Person. 
  

 -83- 

 9.18 New Subsidiaries. Such Loan Party shall not (and shall not suffer or permit any of its
Subsidiaries to), directly or indirectly, organize, create, acquire or permit to exist any Subsidiary other than any Subsidiary set forth on Schedule 8.5 as in effect on the Closing Date unless such new Subsidiary (i) is organized under
the laws of any jurisdiction of the United States of America and (ii) joins this Agreement as a Borrower or Guarantor as the Agent may request, and under each other applicable Loan Document in the manner provided therein within thirty
(30) days after such Subsidiary is formed or acquired and promptly take such actions to create and perfect Liens on such Subsidiary’s assets to secure the Obligations as Agent shall reasonably request. 
 9.19 Fiscal Year. Such Loan Party shall not, and shall not suffer or permit any of its Subsidiaries to, change its Fiscal Year. 
 9.20 Use of Proceeds. Such Loan Party shall not use any portion of the Loan proceeds, directly or indirectly, (i) to purchase or carry Margin
Stock, (ii) to repay or otherwise refinance indebtedness of such Loan Party or others incurred to purchase or carry Margin Stock, (iii) to extend credit for the purpose of purchasing or carrying any Margin Stock, or (iv) to acquire
any security in any transaction that is subject to Section 13 or 14 of the Exchange Act. Such Loan Party shall use the Loan proceeds received hereunder, exclusively, to repay the Pre-Petition Liabilities, to pay fees and expenses associated
with administration of the Case, and for general corporate purposes permitted hereunder and to fund the working capital needs of the Loan Party. The Borrower shall use the Canadian Based Proceeds exclusively to make intercompany loans to the
Canadian Subsidiaries pursuant to the Intercompany Loan Documents. 
 9.21 Further Assurances. Such Loan Party shall, and shall cause
each of its Subsidiaries to, execute and deliver, or cause to be executed and delivered, to the Agent and/or the Lenders such documents and agreements, and shall take or cause to be taken such actions, as the Agent or any Lender may, from time to
time, request to carry out the terms and conditions of this Agreement and the other Loan Documents. 
 9.22 Obligations under Real Estate
Leases, Equipment Leases and Licenses. Subject to Section 9.31 below, such Loan Party shall, and shall cause each of its Subsidiaries to, pay all obligations under its real estate leases, equipment leases and licenses of intellectual
property, if any, subject to the Effect of Bankruptcy, except to the extent (i) such Loan Party is contesting any such obligations in good faith by appropriate proceedings, (ii) such Loan Party has established proper reserves as required
under GAAP and (iii) the nonpayment of which does not result in the imposition of a Lien (other than a Permitted Lien), provided, however, that without the consent of the Required Lenders, such Loan Party or Subsidiary may permit to expire any
of its real estate leases (in a manner consistent with a maximization of the value of the assets of such Loan Party or Subsidiary). 
 9.23
Reclamation Claims. Subject to the Effect of Bankruptcy, such Loan Party shall, and shall cause each of its Subsidiaries to, promptly furnish the Agent and the Lenders with information and notices regarding any material reclamation claims
(including amount and claimant) upon such Loan Party’s or Subsidiary’s receipt thereof, and any provision for such reclamation claims shall be subject to the reasonable approval of the Agent and the Co-Collateral Agents. Neither such Loan
Party nor any of its Subsidiaries shall incur any Liens related to reclamation claims encumbering any Accounts, Inventory, or any proceeds thereof. 
  

 -84- 

 9.24 Sourcing Arrangements. Such Loan Party shall, and shall cause each of its Subsidiaries to,
subject to the Effect of Bankruptcy, maintain at all times its existing sourcing arrangements or a replacement thereof which shall allow such Loan Party or Subsidiary, as the case may be, to maintain an uninterrupted flow of Inventory from overseas
sufficient for the Borrower to satisfy the levels of Inventory and assumptions related thereto as reflected in the 11 Week Cash Flow. 
 9.25
Intentionally Omitted. 
 9.26 Intentionally Omitted. 
 9.27 Intentionally Omitted. 
 9.28
Intentionally Omitted. 
 9.29 Intentionally Omitted. 
 9.30 Retention of Independent Consultant. 
 Until such time as all Pre-Petition Liabilities and all Obligations have been repaid in full and all Commitments hereunder have been terminated, the Borrower shall continue to retain Alvarez and Marsal Inc. (or any replacement thereto who
has been engaged by the Borrower and accepted by the Agent and the Co-Collateral Agents in their sole discretion prior to such time as Alvarez and Marsal Inc. is no longer an Independent Consultant hereunder) as an Independent Consultant to assist
the Borrower with preparation of the 11 Week Cash Flow and the other financial and collateral reporting required to be delivered to the Agent pursuant to this Agreement, to assist in the consummation of the 363 Sale, and to perform other financial
and restructuring services on terms reasonably satisfactory to the Agent and the Co-Collateral Agents. 
 9.31 Performance Within 11 Week
Cash Flow. 
 The Borrower shall strictly perform in accordance with the 11 Week Cash Flow subject to the following: (i) the
Borrower’s actual cash receipts shall not be less than 90% of the projected amounts set forth in the 11 Week Cash Flow minus the Carryover Amount (as defined below) for each such item; and (ii) the Borrower’s actual weekly
disbursements, on a line item basis and in the aggregate, shall not be greater than 110% of the projected amounts set forth in the 11 Week Cash Flow plus the Carryover Amount (as defined below) for each such item. For purposes hereof, the
term “Carryover Amount” means an amount equal to twenty percent (20%) of the difference between (A) with respect to disbursements, (i) the aggregate amount set forth in the 11 Week Cash Flow for the immediately preceding two
(2) week period for such item, less (ii) the actual amount disbursed for such item during such period, to the extent the result is a positive number, and (B) with respect to cash receipts, (i) the actual amount of cash receipts
received during the immediately preceding two (2) week period, less (ii) the aggregate amount of such cash receipts set forth in the 11 Week Cash Flow for such period, to the extent the result is a 

  

 -85- 

 
positive number. The Borrower’s (i) disbursements reflected in the 11 Week Cash Flow with respect to each line item in the 11 Week Cash Flow, to
the extent not fully paid as projected in the 11 Week Cash Flow, and (ii) projected Revolving Loans and Letters of Credit reflected in the 11 Week Cash Flow, to the extent not fully drawn as projected in the 11 Week Cash Flow, in each case
shall not be allocated to any other line item in the 11 Week Cash Flow or utilized by the Borrower to pay other expenses or to make other disbursements for any other line item in the 11 Week Cash Flow or otherwise. The foregoing covenants shall be
tested weekly for the immediately preceding week. Notwithstanding the foregoing, with respect to the first such test period under this Section 9.31, all references herein to the 11 Week Cash Flow shall refer to the Initial Budget. 

9.32 Bankruptcy Related Affirmative Covenants. 
 (a) On or before two (2) Business Days following the Petition Date, the Borrower shall file a motion with the Bankruptcy Court attaching an order reasonably acceptable to the Agent and the Co-Collateral Agents
seeking authority to establish bidding procedures and a stalking horse bidder for the 363 Sale. 
 (b) On or before
July 31, 2009, the Borrower shall have obtained entry of an order of the Bankruptcy Court approving the 363 Sale. In the event that the Borrower shall not have obtained entry of such order and the 363 Sale shall not have been consummated on or
before August 4, 2009, the Borrower shall have obtained entry of an order authorizing the Borrower to (i) conduct an auction for the liquidation sale of the Borrower’s assets at all store locations of the Borrower by a nationally
recognized retail inventory liquidation firm or (ii) accept the highest liquidation bid received in connection with the auction for the 363 Sale, with such liquidation sale to commence immediately upon the determination by the Agent that the
363 Sale shall not be consummated, all of the foregoing to be on terms reasonably acceptable to the Agent and the Required Lenders. 
 (c) The Borrower shall obtain entry of the Final Borrowing Order on or before thirty (30) days after the entry of the Interim Borrowing Order. Upon entry of the Final Borrowing Order, the proceeds from the next advance of Revolving
Loans hereunder shall be used to pay in full the then outstanding amount of the Pre-Petition Liabilities. 
 9.33 Bankruptcy Related
Negative Covenants. 
 The Loan Parties will not seek or consent to any of the following: 
 (a) Any order which authorizes the rejection or assumption of more than twenty-five (25) leases (other than in connection with the
363 Sale) of any Loan Party without the Agent’s and the Co-Collateral Agent’s prior consent, which consent shall not be unreasonably withheld; provided that the proceeds of all Inventory sold in connection with any such rejection of
leases shall be paid to the Agent and applied to the Obligations as set forth herein; 
  

 -86- 

 (b) A priority claim or administrative expense or unsecured claim against any Loan Party
(now existing or hereafter arising or any kind or nature whatsoever, including, without limitation, any administrative expense of the kind specified in Sections 105, 326, 328, 330, 331, 364(c), 503(a), 503(b), 507(a), 507(b), 546(c), 546(d), 552(b),
726, 1114, or, upon entry of the Final Borrowing Order, 506(c), of the Bankruptcy Code) equal or superior to the priority claim of the Agents and the Lenders in respect of the Obligations and the Pre-Petition Liabilities, except with respect to the
Carve Out; 
 (c) Any Lien on any Collateral having a priority equal or superior to the Lien securing the Obligations, other
than as set forth in the Intercreditor Agreement regarding the priority of Liens in the Term Lender Priority Collateral (as defined in the Intercreditor Agreement), other Permitted Liens having priority under the Requirements of Law, and the ratable
priority of Liens in the Ratable Collateral; 
 (d) Any order which authorizes the return of any of the Loan Parties’
property pursuant to Section 546(h) of the Bankruptcy Code without the Agent’s and Co-Collateral Agents’ prior consent; 
 (e) Any order which authorizes the payment of any Debt (other than as contemplated by Section 9.12 hereof) incurred prior to the Petition Date or the grant of “adequate protection” (whether payment in
cash or transfer of property) with respect to any such Debt which is secured by a Lien (other than with respect to the Term Debt to the extent permitted by the Intercreditor Agreement); or 
 (f) Any order (other than the DIP Orders) granting authority to take any action that is prohibited by the terms of this Agreement or the
other Loan Documents, or refrain from taking any action that is required to be taken by the terms of this Agreement or any of the other Loan Documents. 
 ARTICLE 10 
 CONDITIONS OF LENDING 
 10.1 Conditions Precedent to Closing Date. This Agreement shall become effective at such time as the following conditions precedent having been
satisfied or waived in a manner satisfactory to the Agent and the Lenders (and in the case of any documents, agreements or other deliveries, such documents, agreements and deliveries shall be in form and substance satisfactory to the Agent and the
Lenders): 
 (a) This Agreement and the other Loan Documents have been executed by each party thereto and each Loan Party
shall have performed and complied with all covenants, agreements and conditions contained herein and in the other Loan Documents which are required to be performed or complied with by such Loan Party before or on such Closing Date. 
 (b) All representations and warranties made hereunder and in the other Loan Documents shall be true and correct as of the Closing Date as
if made on such date (both immediately prior to, and after giving effect to, such extension of credit). 
  

 -87- 

 (c) No Default or Event of Default shall exist on the Closing Date, or would exist after
giving effect to the Loans to be made on such date or the Letters of Credit to be issued or the Credit Support to be provided on such date. 
 (d) The Borrower shall have paid all fees and expenses of the Agent and the Attorney Costs incurred in connection with any of the Loan Documents and the transactions contemplated thereby. 
 (e) The Agent shall have received evidence, in form, scope, and substance, reasonably satisfactory to the Agent and the Co-Collateral
Agents, of all insurance coverage as required by the Agreement. 
 (f) All proceedings taken in connection with the execution
of this Agreement, all other Loan Documents and all documents and papers relating thereto shall be satisfactory in form, scope, and substance to the Agent and the Lenders. 
 (g) The Agent shall have received a copy of the certificate or articles of incorporation or other constitutive documents, in each case
amended to date, of each of the Loan Parties, certified as of a recent date by the Secretary of State or other appropriate official of the state or other jurisdiction of its organization and dated as of a recent date; a certificate of the Secretary
of each of the Loan Parties, dated the Closing Date and certifying (A) that attached thereto is a true and complete copy of such Loan Party’s By-laws as in effect on the date of such certificate and at all times since a date prior to the
date of the resolution described in item (B) below, (B) that attached thereto is a true and complete copy of a resolution adopted by such Loan Party’s Board of Directors (or in the case of a Loan Party that is not a corporation, the
equivalent governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and that such resolution has not been modified, rescinded or amended and is in full force and
effect, (C) that such Loan Party’s certificate or articles of incorporation or other constitutive documents have not been amended since the date of the last amendment thereto shown on the certificate of good standing furnished hereinabove,
and (D) as to the incumbency and specimen signature of each of such Loan Party’s officers executing this Agreement or any other Loan Document delivered in connection herewith or therewith, as applicable; a certificate of another of such
Loan Party’s officers as to incumbency and signature of its Secretary. 
 (h) The Agent shall have received certificates
of good standing, existence or its equivalent with respect to each Loan Party certified as of a recent date by the appropriate Governmental Authorities of the state or other jurisdiction of incorporation or organization and in each other
jurisdiction listed on Schedule 10.1(h). 
 (i) Other than as a result of the Effect of Bankruptcy, there shall be no
material adverse change in the business, operations, assets, properties, liabilities, profits, prospects or financial position of the Loan Parties as determined by the Agent and the Lenders in their sole discretion. 
  

 -88- 

 (j) The Lenders shall be fully satisfied with the compliance by the Loan Parties with any
and all applicable laws, statutes, rules and regulations relating to the conduct and operations of the business and properties of the Loan Parties. 
 (k) The Agent shall be satisfied with the terms and conditions of all material Debt (including, without limitation, the Term Debt) and other agreements of the Loan Parties and their Subsidiaries to remain outstanding
after the Closing Date (including, without limitation, any subordination or other intercreditor provisions contained therein or applicable thereto). 
 (l) The Agent and the Lenders shall be reasonably satisfied with the all intercompany arrangements relating to the acquisition, ownership and transfer of Inventory of a Loan Party or otherwise. 
 (m) All motions and other documents to be filed with and submitted to the Bankruptcy Court in connection with the DIP Orders shall be in
form and substance reasonably satisfactory to the Agent and the Lenders. The Interim Borrowing Order shall have been entered, shall be in full force and effect, and shall not have been reversed, vacated or stayed, or modified without the prior
written consent of the Agent and the Lenders. The Agent and the Lenders shall have received evidence reasonably satisfactory to them that all other material requisite governmental and material third party consents and approvals (including, without
limitation, consents with respect to each Loan Party and each of its Subsidiaries) to the transactions contemplated by this Agreement and the other Loan Documents have been obtained, and remain in full force and effect; all applicable waiting
periods shall have expired without any action being taken by any competent authority; and no law or regulation shall be applicable in the judgment of the Agent that restrains, prevents or imposes materially adverse conditions upon any of the Loan
Documents or any of the transactions contemplated thereby. 
 (n) The terms of all sourcing arrangements among the Loan
Parties and their suppliers shall have been fully disclosed to the Agent and the Lenders and there shall have been a resolution satisfactory to the Agent and the Lenders of any liens arising from any such supply arrangements. 
 (o) There shall have been delivered to the Agent such additional instruments and documents as the Agent and the Co-Collateral Agents or
their counsel reasonably may require or request. 
 (p) After giving effect to the making of any loans under this Agreement,
the payment of all fees and expenses required hereunder and the issuance of all Letters of Credit to be issued (including the Existing Letters of Credit), the Loan Parties shall have minimum Combined Availability of at least $20,000,000. 

(q) The Agent and the Lenders shall have received evidence reasonably satisfactory to the Agent and the Lenders that the Borrower has
forwarded so-called “bid packages” to all nationally recognized retail inventory liquidation firms and any potential going concern bidders on or before the Petition Date and has selected a stalking horse bidder on or before the Petition
Date. 
  

 -89- 

 (r) The Agent and the Lenders shall have reviewed and be reasonably satisfied with any
asset purchase agreement or similar documents entered into by the Borrower with respect to the 363 Sale on or prior to the Petition Date. 
 (s) The Agent and the Lenders shall have received and be satisfied with the initial 11 Week Cash Flow. 
 (t) Not more than $5,000,000 of cash, cash equivalents and short term investments shall be on the Borrower’s balance sheet as of the Closing Date. 
 The acceptance by the Borrower of any Loans made or Letters of Credit issued on the Closing Date shall be deemed to be a representation and warranty made by the Borrower to the effect that all of the conditions
precedent to the making of such Loans or the issuance of such Letters of Credit have been satisfied, with the same effect as delivery to the Agent and the Lenders of a certificate signed by a Responsible Officer of the Borrower, dated the Closing
Date, to such effect. 
 Execution and delivery to the Agent by a Lender of a counterpart of this Agreement shall be deemed confirmation by
such Lender that (i) all conditions precedent in this Section 10.1 have been fulfilled to the satisfaction of such Lender, (ii) the decision of such Lender to execute and deliver to the Agent an executed counterpart of this
Agreement was made by such Lender independently and without reliance on the Agent or any other Lender as to the satisfaction of any condition precedent set forth in this Section 10.1, and (iii) all documents sent to such Lender for
approval, consent or satisfaction were acceptable to such Lender. 
 10.2 Conditions Precedent to Each Loan. The obligation of the
Lenders to make each Loan and the obligation of the Agent to cause the Letter of Credit Issuer to issue any Letter of Credit shall be subject to the further conditions precedent that on and as of the date of any such extension of credit (and in the
case of any documents, agreements or other deliveries, such documents, agreements and deliveries shall be in form and substance satisfactory to the Agent): 
 (a) The following statements shall be true, and the acceptance by Borrower of any extension of credit shall be deemed to be a statement by Borrower each to the effect set forth in clauses (i), (ii) and (iii),
with the same effect as the delivery to the Agent and the Lenders of a certificate signed by a Responsible Officer, dated the date of such extension of credit, stating that: 
 (i) The representations and warranties contained in this Agreement and the other Loan Documents are true and correct in all material respects on and as
of the date of such extension of credit as though made on and as of such date (both immediately prior to, and after giving effect to, such extension of credit), other than any such representation or warranty which relates to a specified prior date
and except to the extent the Agent and the Lenders have been notified in writing by the Authorized Representative that any representation or warranty is not true and correct and the Required Lenders have explicitly waived in writing compliance with
such representation or warranty; and 
  

 -90- 

 (ii) No event has occurred and is continuing, or would result from such extension of credit, which
constitutes a Default or an Event of Default; and 
 (iii) No event has occurred and is continuing, or would result from such extension of
credit, which has had or would have a Material Adverse Effect. 
 (b) No such Borrowing shall exceed the amount of the
Combined Availability, provided, however, that the foregoing conditions precedent are not conditions to each Lender participating in or reimbursing the Bank or the Agent for such Lenders’ Pro Rata Share of any Bank Loan or Agent
Advance as provided in Sections 2.2(h), (i) and (j). 
 (c) The Agent shall have received a Notice of Borrowing
from the Borrower to the extent required by Section 2.2(b). 
 ARTICLE 11 
 DEFAULT: REMEDIES 
 11.1 Events of Default. It shall constitute an event
of default (“Event of Default”) if any one or more of the following shall occur for any reason: 
 (a) (i)
any failure by the Borrower to pay the principal of or interest or premium on any of the Obligations hereunder when due, whether upon demand or otherwise, or (ii) any failure by the Borrower to pay any fee or other amount owing hereunder when
due, whether upon demand or otherwise and such failure to pay shall continue for two Business Days; 
 (b) any representation
or warranty (other than in Section 8.20(b)) made or deemed made by any Loan Party in this Agreement or by any Loan Party in any of the other Loan Documents, any Financial Statement, or any certificate furnished by any Loan Party at any time to
the Agent or any Lender shall prove to be untrue in any material respect as of the date on which made, deemed made, or furnished; 
 (c) (i) any default shall occur in the observance or performance of any of the covenants and agreements contained in this Agreement or any other Loan Documents and such default (other than in respect of any of
Article 6 or 7 or any of Sections 9.5(a), 9.5(b), 9.8, 9.9, 9.10, 9.11, 9.12, 9.13, 9.15, 9.16, 9.17, 9.18, 9.19, 9.20, 9.30,
9.31, 9.32, or 9.33, as to each of which provisions no grace period shall be applicable) shall continue unremedied for a period of thirty (30) or more days (or in the case of Section 9.7(e) or 9.24, shall
continue unremedied for a period of five (5) or more days) or (ii) if this Agreement or any other Loan Document shall terminate (other than in accordance with its terms or the terms hereof or with the written consent of the Agent and the
Lenders) or become void or unenforceable, without the written consent of the Agent and the Lenders; 
 (d) except as a result
of the commencement, pendency or continuation of the Case, any default shall occur with respect to any Debt (other than the Obligations) in an outstanding principal amount which exceeds $5,000,000, or under any agreement or 

  

 -91- 

 
instrument entered into or assumed by any Loan Party under or pursuant to which any such Debt may have been issued, created, assumed, or guaranteed by any
Loan Party, and such default shall continue for more than the period of grace, if any, therein specified, if the effect thereof (with or without the giving of notice or further lapse of time or both) is to accelerate, or to permit the holders of any
such Debt to accelerate, the maturity of any such Debt or any such Debt shall be declared due and payable or be required to be prepaid (other than mandatory prepayments (other than by virtue of acceleration) under the terms of such Debt) prior to
the stated maturity thereof, unless, in each case, such default or acceleration is stayed pursuant to any order of the Bankruptcy Court; or any post-Petition Date Debt shall not be paid on the maturity date therefor; or any breach or default by a
Canadian Subsidiary shall occur under the Intercompany Loan Documents; 
 (e) any Loan Party, other than any non-material (as
reasonably determined by the Agent and the Required Lenders) Subsidiary of the Borrower, shall file a certificate of dissolution or like process under applicable state or provincial law or shall be liquidated, dissolved or wound-up or shall commence
or have commenced against it any action or proceeding for dissolution, winding-up or liquidation, or shall take any corporate action in furtherance thereof, other than in connection with the 363 Sale; 
 (f) all or any material part of the property of the Loan Parties taken as a whole shall be nationalized, expropriated or condemned, seized
or otherwise appropriated, or custody or control of such property or of any Loan Party shall be assumed by any Governmental Authority or any court of competent jurisdiction at the instance of any Governmental Authority, except where contested in
good faith by proper proceedings diligently pursued where a stay of enforcement is in effect; 
 (g) any Loan Document shall
be terminated, revoked or declared void or invalid or unenforceable or challenged by Borrower or any other Loan Party or the Borrower or any other Loan Party shall attempt to terminate, revoke or declare voided or invalid or unenforceable any Loan
Document; 
 (h) one or more post-petition judgments, orders or decrees is entered against any Loan Party or one or more
fines, penalties or awards is entered or levied by any Governmental Authority against any Loan Party involving in the aggregate liability (to the extent not covered by independent third-party insurance as to which the insurer does not dispute
coverage) as to any single or related or unrelated series of transactions, incidents or conditions, of $5,000,000 or more, and the same shall remain unsatisfied, unvacated and unstayed pending appeal for a period of 30 days after the entry thereof;

 (i) any loss, theft, damage or destruction of any item or items of Collateral or other property of any Loan Party occurs
which could reasonably be expected to have a Material Adverse Effect and is not adequately covered by insurance; 
 (j) there
is filed against any Loan Party or any of its Subsidiaries any criminal action, suit or proceeding under any federal or state racketeering statute (including, without limitation, the Racketeer Influenced and Corrupt Organization Act of 1970), which
action, suit or proceeding (1) is not dismissed within 120 days, and (2) could reasonably be expected to result in the confiscation or forfeiture of any material portion of the Collateral; 
  

 -92- 

 (k) for any reason (i) any Loan Document ceases to be in full force and effect
(other than in accordance with its terms), (ii) any Lien with respect to any portion of the Collateral intended to be secured thereby (A) ceases to be, or is not, valid, perfected and prior to all other Liens (other than in accordance with
its terms) subject only to the terms of the Intercreditor Agreement regarding the priority of Liens in the Term Lender Priority Collateral (as defined in the Intercreditor Agreement), Permitted Liens described in clause (l) of the definition
thereof and other Permitted Liens having priority under the Requirements of Law, and the ratable priority of Liens in the Ratable Collateral), or (B) is terminated (other than in accordance with its terms), revoked or declared void, or
(iii) any Lien (other than Permitted Liens) exists with respect to any portion of the Collateral; 
 (l) other than with
respect to the Borrower Pension Plan, (i) one or more ERISA Events shall occur with respect to any Pension Plans or Multiemployer Plans which have resulted or could reasonably be expected to result in liability of any Loan Party under Title IV
of ERISA to the Pension Plan, Multiemployer Plan, the PBGC or other applicable Governmental Authority in an aggregate amount for all such Pension Plans and Multiemployer Plans in excess of $5,000,000; or (ii) any Loan Party or any ERISA
Affiliate shall fail to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount, together
with all other such amounts not paid by Borrower or ERISA Affiliate when due, in excess of $1,000,000; or (iii) with respect to any Plan of a Canadian Subsidiary, any Lien arises with respect to such Plan (save for contribution amounts not yet
due); provided, however, that with respect to clauses (i) and (ii), any liabilities under Title IV of ERISA and any missed installment payments to a Multiemployer Plan shall only be included to the extent that they constitute post-petition
claims; 
 (m) there occurs a Change of Control; 
 (n) any default by any Person (other than the Agent) under the Intercreditor Agreement; 
 (o) The entry of an order in the Case or the Canadian Case which stays, vacates, or reverses any DIP Order or the Initial Order or which
otherwise materially amends or modifies or materially adversely affects, as determined by the Agent and the Co-Collateral Agents in their reasonable discretion, the effectiveness of any DIP Order or the Initial Order without the express written
consent of the Agent and the Co-Collateral Agents; 
 (p) Either (i) the appointment in the Case of a trustee or of any
examiner having expanded powers to operate all or any part of any Loan Party’s business, or (ii) the conversion of the Case to a case under Chapter 7 of the Bankruptcy Code; 
  

 -93- 

 (q) The failure of the Bankruptcy Court to enter a Final Borrowing Order, in form and
substance satisfactory to the Agent and the Co-Collateral Agents, on or before thirty (30) days after entry of the Interim Borrowing Order; 
 (r) The entry of any order which provides relief from the automatic stay otherwise imposed pursuant to Section 362 of the Bankruptcy Code which permits any Person to realize upon, or to exercise any right or
remedy with respect to, any asset of any Loan Party or to terminate any license, franchise, or similar agreement, where the exercise of such right or remedy or such realization or termination would reasonably be likely to have a Material Adverse
Effect; 
 (s) The filing of any application by any Loan Party without the express prior written consent of the Agent and the
Co-Collateral Agents for the approval of any super-priority claim in the Case which is pari passu with or senior to the priority of the claims of the Agent and the Lenders for the Obligations, or there shall arise any such super-priority claim under
the Bankruptcy Code other than the Carve Out or under the CCAA other than the Administration Charge; 
 (t) The payment or
other discharge by any Loan Party of any Debt incurred prior to the Petition Date, except for payments of Pre-Petition Liabilities or as otherwise expressly permitted hereunder, or in the 11 Week Cash Flow or by order in the Case to which order the
Agent has provided its written consent; 
 (u) The entry of any order in the Case which provides adequate protection, or the
granting by any Loan Party of similar relief in favor of any one or more of a Loan Party’s pre-Petition Date creditors, contrary to the terms and conditions of any DIP Order; 
 (v) The failure of any Loan Party to comply with each and all of the material terms and conditions of any DIP Order or any other order
entered in the Case or of the Canadian Subsidiaries to comply with each and all of the material terms and conditions of the Initial Order; 
 (w) The filing of any motion by any Loan Party (or by any party in interest or any Creditors’ Committee appointed in the Case or any other Person) that is not dismissed or denied within thirty (30) days of
the date of the filing of such motion, or the entry of any order in the Case: (i) except as permitted by this Agreement, permitting the use of any of the Collateral constituting cash pursuant to Section 363(c) of the Bankruptcy Code
without the prior written consent of the Agent and the Lenders, (ii) permitting recovery from any portion of the Collateral (or from the Agent, any Co-Collateral Agent or any Lender) of any costs or expenses of preserving or disposing of
Collateral under Sections 506(c) (upon entry of the Final Borrowing Order) or 552(b) of the Bankruptcy Code (or otherwise), or (iii) dismissing the Case; 
 (x) The filing of a motion by any Loan Party seeking approval of a Disclosure Statement and a Plan of Reorganization, or the entry of an
order confirming a Plan of Reorganization, that does not require repayment in full in cash of all Obligations and Pre-Petition Liabilities on the Consummation Date of such Plan of Reorganization; or 
  

 -94- 

 (y) The filing of any pleading by any Person that is not dismissed or denied within
thirty (30) days of the date of the filing of such pleading challenging the validity, priority, perfection, or enforceability of the Pre-Petition Loan Documents, the Pre-Petition Liabilities, or any Lien granted pursuant to the
Pre-Petition Loan Documents, or (b) any Lien granted pursuant to the Pre-Petition Loan Documents is determined to be null and void, invalid or unenforceable by the Bankruptcy Court or another court of competent jurisdiction in any action
commenced or asserted by any other party in interest in the Case, including, without limitation, the Creditors’ Committee. 
 11.2
Remedies. 
 (a) If a Default that has not been cured within any applicable grace period or Event of Default that has
not been waived in writing by the Required Lenders exists, then subject to the DIP Orders, the Agent may, in its discretion, and shall (and, in either case, without limiting any other remedies available), at the direction of the Required Lenders, do
one or more of the following at any time or times and in any order unless and until cured, or waived, as the case may be: (i) reduce the Maximum Revolver Amount, or the advance rates against the Net Amount of Eligible Major Credit Card
Receivables, and/or Eligible Inventory used in computing the Combined Availability, or reduce one or more of the other elements used in computing the Combined Availability; (ii) without limiting Section 10.2, restrict the amount of
or refuse to make Revolving Loans; (iii) without limiting Section 10.2, restrict or refuse to arrange for or provide Letters of Credit or Credit Support. If an Event of Default exists, then subject to the DIP Orders, the Agent
shall, at the direction of the Required Lenders, do one or more of the following, in addition to the actions described in the preceding sentence, at any time or times and in any order, without notice to or demand on any Loan Party:
(A) terminate the Commitments and this Agreement; (B) declare any or all Obligations to be immediately due and payable; (C) set-off against any outstanding Obligations, amounts in the accounts of any Loan Party maintained by or with
any Lender or any agent or bailee thereof and otherwise exercise any and all rights and remedies with respect to the Collateral; (D) demand cash collateral equal to 105% of the face amount of all outstanding Letters of Credit; and
(E) pursue its other rights and remedies under the Loan Documents and applicable law. 
 (b) Without limitation to the
foregoing but subject to the DIP Orders and any applicable notice requirements set forth in Section 11.2(a), if an Event of Default occurs and has not been waived in writing by the Required Lenders: (i) the Agent shall have for the
benefit of the Agent and the Lenders, in addition to all other rights of the Agent and the Lenders, the rights and remedies of a secured party under the UCC and other applicable laws; (ii) the Agent may, at any time, take possession of the
Collateral and keep it on the Loan Parties’ premises, at no cost to the Agent or any Lender, or remove any part of it to such other place or places as the Agent may desire, or the Loan Parties shall, upon the Agent’s demand, at the Loan
Parties’ cost, assemble the Collateral and make it available to the Agent at a place reasonably convenient to the Agent; (iii) the 

  

 -95- 

 
Agent may sell and deliver any Collateral at public or private sales, for cash, upon credit or otherwise, at such prices and upon such terms as the Agent
deems advisable, in its sole discretion, and may, if the Agent deems it reasonable, postpone or adjourn any sale of the Collateral by an announcement at the time and place of sale or of such postponed or adjourned sale without giving a new notice of
sale; and (iv) at the Agent’s request, the Loan Parties will engage a liquidator to conduct a “going out of business” or similar sale on terms and conditions satisfactory to the Agent. Without in any way requiring notice to be
given in the following manner, the Loan Parties agree that any notice by the Agent of sale, disposition or other intended action hereunder or in connection herewith, whether required by the UCC or otherwise, shall constitute reasonable notice to the
Loan Parties if such notice is mailed by registered or certified mail, return receipt requested, postage prepaid, or is delivered personally against receipt, at least 10 Business Days prior to such action to the Loan Parties’ address specified
in or pursuant to Section 15.7. If any Collateral is sold on terms other than payment in full at the time of sale, no credit shall be given against the Obligations until the Agent or the Lenders receive payment, and if the buyer defaults
in payment, the Agent may resell the Collateral without further notice to the Loan Parties. In the event the Agent seeks to take possession of all or any portion of the Collateral by judicial process, the Loan Parties irrevocably waive: (a) the
posting of any bond, surety or security with respect thereto which might otherwise be required; (b) any demand for possession prior to the commencement of any suit or action to recover the Collateral; and (c) any requirement that the Agent
retain possession and not dispose of any Collateral until after trial or final judgment. The Loan Parties agree that the Agent has no obligation to preserve rights to the Collateral or marshal any Collateral for the benefit of any Person. The Agent
is hereby granted a license or other right to use, without charge, the Loan Parties’ labels, patents, copyrights, name, trade secrets, trade names, trademarks, and advertising matter, or any similar property, in completing production of,
advertising or selling any Collateral, and the Loan Parties’ rights under all licenses and all franchise agreements shall inure to the Agent’s benefit for such purpose. The proceeds of sale shall be applied first to all expenses of sale,
including reasonable attorneys’ fees, and then to the Obligations in whatever order the Agent elects. The Agent will return any excess to the Borrower and the Borrower shall remain liable for any deficiency. 
 (c) If an Event of Default occurs, the Loan Parties hereby waive, subject to the DIP Orders and except to the extent expressly provided
otherwise herein, to the fullest extent permitted by applicable law, all rights to notice and hearing prior to the exercise by the Agent of the Agent’s rights to repossess the Collateral without judicial process. 
 ARTICLE 12 
 TERM AND TERMINATION

 12.1 Term and Termination. The term of this Agreement shall end on the Termination Date. The Agent upon direction from the
Lenders may terminate this Agreement without notice upon the occurrence of an Event of Default unless and until the same shall be waived in writing by the Required Lenders. Upon the effective date of termination of this Agreement for any reason
whatsoever, all Obligations (including, without limitation, all unpaid principal, accrued 

  

 -96- 

 
interest and any early termination or prepayment fees or penalties) shall become immediately due and payable and the Borrower shall immediately arrange for
the cancellation and return of all Letters of Credit then outstanding (or cash collateralization thereof, on terms acceptable to the Agent, at 105% of the face amount of such Letters of Credit). Notwithstanding the termination of this Agreement,
until all Obligations (other than contingent indemnification obligations for which no claim has been asserted) are paid and performed in full in cash, the Borrower shall remain bound by the terms of this Agreement or under any other Loan Document
and shall not be relieved of any of their Obligations hereunder, and the Agent and the Lenders shall retain all their rights and remedies hereunder (including, without limitation, the Agent’s Liens (including, without limitation, the
superpriority status thereof) in and all rights and remedies with respect to all then existing and after-arising Collateral). In connection with the termination of this Agreement and the release and termination of the security interests in the
Collateral, the Agent may require such indemnities and collateral security as it shall reasonably deem necessary or appropriate to protect the Agent and the Lenders against (x) loss on account of credits previously applied to the Obligations
that may subsequently be reversed or revoked, and (y) any obligations that may thereafter arise with respect to Bank Products. 
 ARTICLE
13 
 AMENDMENTS: WAIVER; PARTICIPATIONS: ASSIGNMENTS: SUCCESSORS 
 13.1 No Waivers: Cumulative Remedies. No failure by the Agent or any Lender to exercise any right, remedy, or option under this Agreement or any
present or future supplement thereto, or in any other agreement between or among any Loan Party and the Agent and/or any Lender, or delay by the Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by the Agent on
behalf of the Lenders or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by the Agent on behalf of the Lenders or the Lenders on any occasion shall affect or diminish the Agent’s
and each Lender’s rights thereafter to require strict performance by the Borrower of any provision of this Agreement. The Agent and the Lenders may proceed directly to collect the Obligations without any prior recourse to the Collateral. The
Agent’s and each Lender’s rights under this Agreement will be cumulative and not exclusive of any other right or remedy which the Agent or any Lender may have. 
 13.2 Amendments and Waivers. 
 (a) Subject to Section 14.18 hereof, no amendment
or waiver of any provision of this Agreement or any other Loan Document, and no consent with respect to any departure by Borrower or other Loan Party therefrom, shall be effective unless the same shall be in writing and signed by the Required
Lenders (or by the Agent at the written request of the Required Lenders) and the Borrower or other Loan Parties party thereto and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
given; provided, however, that 
 (i) no such waiver, amendment, or consent shall, unless in writing and signed by all the Lenders (other
than the Lenders participating in the LILO Tranche to the extent of such participation) and the Loan Parties and acknowledged by the Agent, do any of the following: 
 (A) increase or extend the Commitment of any Lender; 
  

 -97- 

 (B) postpone or delay any date fixed by this Agreement or any other Loan Document for
any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document; 
 (C) reduce the principal of, or the rate of interest specified herein on any Loan, or any fees or other amounts payable hereunder or under any other Loan Document; 
 (D) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans which is required for the Lenders
or any of them to take any action hereunder; 
 (E) increase any of the percentages set forth in the definition of Combined
Availability or amend the definitions of Borrowing Base, Combined Availability, Eligible Inventory, or Eligible Major Credit Card Receivables in a manner which will increase the amount of Combined Availability from that in effect immediately prior
to such amendment; provided that nothing herein shall limit or restrict the Agent’s discretion as set forth in such definitions; 
 (F) amend this Section or any provision of the Agreement providing for consent or other action by all Lenders; 
 (G) release any Guaranties of the Obligations or release Collateral other than as permitted by Section 14.11; or 
 (H) change the definition of “Required Lenders”; 
 provided, however, the Agent may, in its sole discretion and notwithstanding the limitations contained in clause (i)(E) above and any other terms of this Agreement, make Agent Advances in
accordance with Section 2.2(i) and, provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Agent, affect the rights or duties of the Agent under this Agreement or any other Loan Document and
provided further, that Schedule 1.1(a) hereto may be amended from time to time by Agent alone to reflect assignments of Commitments in accordance herewith. 
 (ii) No waiver or amendment of any material provision of the DIP Orders shall be made by the Agent without the prior consent of the Co-Collateral Agents. 
 (b) If, in connection with any proposed amendment, waiver or consent (a “Proposed Change”) requiring the consent of all
Lenders (other than the Lenders participating in the LILO Tranche to the extent of such participation), the consent of Required Lenders is obtained, but the consent of other Lenders (other than the Lenders participating in the LILO Tranche to the
extent of such participation) is not obtained (any 

  

 -98- 

 
such Lender whose consent is not obtained as described in this clause (b) being referred to as a “Non-Consenting Lender”), then, so
long as the Agent is not a Non-Consenting Lender, at the Borrower’s request, the Agent or an Eligible Assignee shall have the right (but not the obligation) with the Agent’s approval, to purchase from the Non-Consenting Lenders, and the
Non-Consenting Lenders agree that they shall sell, all the Non-Consenting Lenders’ Commitments for an amount equal to the principal balances thereof and all accrued interest and fees with respect thereto through the date of sale pursuant to
Assignment and Assumption(s), without premium or discount. 
 13.3 Assignments; Participations. 
 (a) Any Lender may, with the written consent of the Agent (which consent shall not be unreasonably withheld) assign and delegate to one or
more Eligible Assignees (provided that no consent of the Agent shall be required in connection with any assignment and delegation by a Lender to an Affiliate of such Lender) (each an “Assignee”) all, or any ratable part of all, of the
Loans, the Commitments and the other rights and obligations of such Lender hereunder, in a minimum amount of $5,000,000 and, if the remaining Commitment of such Lender would be less than $5,000,000, the entire amount of such Lender’s
Commitment; provided, however, that the Borrower and the Agent may continue to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with
payment instructions, addresses and related information with respect to the Assignee, shall have been given to the Borrower and the Agent by such Lender and the Assignee; (ii) such Lender and its Assignee shall have delivered to the Borrower
and the Agent an Assignment and Assumption in the form of Exhibit B (“Assignment and Assumption”) and (iii) the assignor Lender or Assignee has paid to the Agent a processing fee in the amount of $3,500, except in the case of
an assignment and delegation by a Lender to an Affiliate of such Lender. 
 (b) From and after the date that the Agent
notifies the assignor Lender that it has received a duly executed Assignment and Assumption and payment of the above-referenced processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations,
including, but not limited to, the obligation to participate in Letters of Credit and Credit Support have been assigned to it pursuant to such Assignment and Assumption, shall have the rights and obligations of a Lender under the Loan Documents, and
(ii) the assignor Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and Assumption, relinquish its rights and be released from its
obligations under this Agreement and the other Loan Documents (and in the case of an Assignment and Assumption covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto). 
 (c) By executing and delivering an Assignment and Assumption, the assigning Lender thereunder and
the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (1) other than as provided in such Assignment and Assumption, such assigning Lender makes no representation or warranty 

  

 -99- 

 
and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto or the attachment, perfection, or priority of any Lien granted by any Loan Party to the Agent or any Lender
in the Collateral; (2) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Loan Parties or the performance or observance by the Loan Parties of any of their
Obligations under this Agreement or any other Loan Document furnished pursuant hereto; (3) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into such Assignment and Assumption; (4) such Assignee will, independently and without reliance upon the Agent, such assigning Lender or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (5) such Assignee appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Agent by the terms hereof, together with such powers, including discretionary rights and incidental power, as are reasonably incidental thereto;
and (6) such Assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the other Loan Documents are required to be performed by it as a Lender. 
 (d) Immediately upon satisfaction of the requirements of Section 13.3(a) and each Assignee making its processing fee payment
under the Assignment and Assumption, this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The
Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 
 (e) Any
Lender may, with the written consent of the Agent, at any time sell to one or more commercial banks, financial institutions, or other Persons not a Loan Party or an Affiliate of any Loan Party (a “Participant”) participating
interests in any Loans, the Commitment of that Lender and the other interests of that Lender (the “originating Lender”) hereunder and under the other Loan Documents; provided, however, that (i) the originating
Lender’s obligations under this Agreement shall remain unchanged, (ii) the originating Lender shall remain solely responsible for the performance of such obligations, (iii) the Borrower and the Agent shall continue to deal solely and
directly with the originating Lender in connection with the originating Lender’s rights and obligations under this Agreement and the other Loan Documents and (iv) no Lender shall transfer or grant any participating interest under which the
Participant has rights to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document (except to the extent that such amendment, waiver or consent both directly affects the Participant and would
(x) increase or extend the Commitment of the originating Lender, (y) postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the originating Lender
hereunder or under any other Loan Document or (z) reduce the 

  

 -100- 

 
principal of, or the rate of interest specified herein on, any Revolving Loan owing to the originating Lender or any fees or other amounts payable to the
originating Lender hereunder or under any other Loan Document), and all amounts payable by Borrower hereunder shall be determined as if such Lender had not sold such participation; except that, if amounts outstanding under this Agreement are due and
unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this
Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. 
 (f) Notwithstanding any other provision in this Agreement, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any
Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable
law. 
 (g) Notwithstanding any other provision in this Agreement, no Co-Collateral Agent shall be entitled to assign its
rights as a Co-Collateral Agent hereunder in connection with any assignment permitted pursuant to this Article 13 or otherwise. 
 ARTICLE 14

 THE AGENT 
 14.1
Appointment and Authorization. Each Lender hereby designates and appoints Bank as its Agent under this Agreement and the other Loan Documents and General Electric Capital Corporation and The CIT Group/Business Credit, Inc. as Co-Collateral
Agents under this Agreement and each Lender hereby irrevocably authorizes the Agent and the Co-Collateral Agents to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and
perform such duties as are expressly delegated to each of them by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. The Agent and the Co-Collateral Agents each agree to act as
such on the express conditions contained in this Article 14. The provisions of this Article 14 are solely for the benefit of the Agent, the Co-Collateral Agents and the Lenders and the Borrower shall have no rights as a third party beneficiary of
any of the provisions contained herein. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, neither the Agent nor the Co-Collateral Agents shall have any duties or responsibilities,
except those expressly set forth herein, nor shall the Agent or the Co-Collateral Agents have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent or the Co-Collateral Agents. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Agent or any Co-Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom,
and is 

  

 -101- 

 
intended to create or reflect only an administrative relationship between independent contracting parties. Except as expressly otherwise provided in this
Agreement, each of the Agent and the Co-Collateral Agents shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions which the Agent or
such Co-Collateral Agent is expressly entitled to take or assert under this Agreement and the other Loan Documents, including, without limitation, (a) the determination of the applicability of ineligibility criteria with respect to the
calculation of the Combined Availability, (b) the making of Agent Advances by the Agent pursuant to Section 2.2(i), and (c) the exercise of remedies by the Agent pursuant to Section 11.2, and any action so taken or not taken
shall be deemed consented to by the Lenders. Any actions permitted to be taken by any of the Agent and the Co-Collateral Agents under this Agreement and the other Loan Documents shall be taken by such Agent or Co-Collateral Agent, as applicable,
acting through the Bank, as Agent. The applicable Co-Collateral Agent shall notify the Agent in writing of any such action which such Co-Collateral Agent desires to be undertaken in such capacity and the Agent shall thereupon undertake such action
on behalf of the Agent and the Co-Collateral Agents, subject, in each case, to Section 14.18 and the other provisions and limitations of this Agreement and the other Loan Documents. 
 14.2 Delegation of Duties. The Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees
or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects as long as such
selection was made without gross negligence or willful misconduct. 
 14.3 Liability of Agent. None of the Agent-Related Persons shall
(i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct),
or (ii) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by any Loan Party, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received by the Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document, or for any failure of any Loan Party or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain
or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party. 
 14.4 Reliance by Agent. 
 (a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Loan Parties), independent accountants and other
experts selected by the 

  

 -102- 

 
Agent. The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by
reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required
Lenders (or all Lenders if so required by Section 13.2) and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
 (b) For purposes of determining compliance with the conditions specified in Section 10.1, each Lender that has executed this
Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lender. 
 14.5 Notice of Default. The Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default, unless the Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default or Event of Default and stating that
such notice is a “notice of default.” The Agent will notify the Lenders of its receipt of any such notice. The Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in
accordance with Section 11; provided, however, that unless and until the Agent has received any such request, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable. 
 14.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons
has made any representation or warranty to it, and that no act by the Agent hereinafter taken, including any review of the affairs of the Loan Parties, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any
Lender. Each Lender represents to the Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects,
operations, property, financial and other condition and creditworthiness of the Loan Parties. Except for notices, reports and other documents expressly herein required to be furnished to the Lenders by the Agent, the Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Loan Parties which may come into the possession of any of
the Agent-Related Persons. 
  

 -103- 

 14.7 Indemnification. Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Borrower or any other Loan Party and without limiting the obligation of the Borrower and any other Loan Parties to do so), in
accordance with their Pro Rata Shares, from and against any and all Indemnified Liabilities as such term is defined in Section 15.10; provided, however, that no Lender shall be liable for the payment to the Agent-Related Persons of any portion
of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender shall reimburse the Agent upon demand for its Pro Rata Share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise)
of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Agent is not reimbursed for such expenses by or on behalf of
the Borrower or any other Loan Parties. The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of the Agent. 
 14.8 Agent in Individual Capacity. The Bank and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with any of the Loan Parties and its Affiliates as though the Bank were not the Agent hereunder and without
notice to or consent of the Lenders. The Bank or its Affiliates may receive information regarding the Loan Parties (including information that may be subject to confidentiality obligations in favor of the Loan Parties) and the Lenders acknowledge
that the Agent and the Bank shall be under no obligation to provide such information to them. With respect to its Loans, the Bank shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it
were not the Agent, and the terms “Lender” and “Lenders” include the Bank in its individual capacity. 
 14.9
Successor Agent. The Agent may resign as Agent upon at least 30 days’ notice to the Lenders and the Borrower. If the Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor agent for the
Lenders reasonably satisfactory to the Borrower. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Lenders and the Borrower, a successor agent from among
the Lenders. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such successor agent and the
retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 14 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty (30) days following a retiring Agent’s notice of resignation, the retiring Agent’s
resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. 
  

 -104- 

 14.10 Withholding Tax. 
 (a) Each Lender that is not a “United States person,” within the meaning of the Internal Revenue Code, shall, on or prior to the
date of its execution and delivery of this Agreement in the case of each Lender and on the date of the Assignment and Assumption pursuant to which it becomes a Lender in the case of each Assignee, and from time to time thereafter as reasonably
requested in writing by the Borrower (but only so long thereafter as such Lender or Assignee remains lawfully able to do so), provide each of the Agent and the Borrower with two original Internal Revenue Service Forms W-8BEN or W-8ECI or a
certification in writing to the Agent and the Borrower that it is not (i) a “bank” (as defined in Section 881(c)(3)(A) of the Internal Revenue Code), (ii) a 10-percent shareholder (within the meaning of
Section 871(h)(3)(B) of the Internal Revenue Code) of Borrower or (iii) a controlled foreign corporation related to Borrower (within the meaning of Section 864(d)(4) of the Internal Revenue Code), along with an Internal Revenue
Service Form W-8BEN, as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender or Assignee is exempt from or entitled to a reduced rate of United States withholding tax on payments
pursuant to this Agreement or any other Loan Document or, in the case of a Lender or Assignee that has certified that it is not a “bank” as described above, certifying that such Lender or Assignee is a foreign corporation, partnership,
estate or trust. If the forms provided by a Lender or Assignee at the time such Lender or Assignee first becomes a party to this Agreement indicate a United States interest withholding tax rate in excess of zero, withholding tax at such rate shall
be considered excluded from Indemnified Taxes unless and until such Lender or Assignee provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered excluded from
Indemnified Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Assumption pursuant to which an Assignee becomes a party to this Agreement, the assignor Lender was entitled to
payments under Section 5.1 in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Indemnified Taxes shall include (in addition to withholding taxes that may be imposed in the
future or other amounts otherwise includable in Indemnified Taxes) United States withholding tax, if any, applicable with respect to the Assignee on such date. If any form or document referred in this subsection (a) requires the disclosure of
information, other than information necessary to compute the tax payable and information required on the Closing Date by Internal Revenue Service Form W-8BEN or W-8ECI or the related certificate described above, that the applicable Lender or
Assignee reasonably considers to be confidential, such Lender or Assignee shall give notice thereof to the Borrower and shall not be obligated to include in such form or document such confidential information. 
 (b) For any period with respect to which a Lender or Assignee has failed to provide the Borrower and the Agent with the appropriate form,
certificate or other document described in subsection (a) above (other than if such failure is due to a change in law, or in the interpretation or application thereof, occurring after the date on which a 

  

 -105- 

 
form, certificate or other document originally was required to be provided or if such form, certificate or other document otherwise is not required under
subsection (a) above), such Lender or Assignee shall not be entitled to additional amounts or indemnification under Section 5.1 with respect to Indemnified Taxes imposed by the United States by reason of such failure; provided, however,
that should a Lender or Assignee become subject to Indemnified Taxes because of its failure to deliver a form, certificate or other document required hereunder, the Borrower shall take steps as such Lender of Assignee shall reasonably request to
assist such Lender or Assignee to recover such Indemnified Taxes. 
 (c) If any Lender determines, as a result of any change
after the date hereof in applicable law, regulation or treaty, or in any official application or interpretation thereof, that it is unable to submit to the Borrower and the Agent any form or certificate that such Lender is obligated to submit
pursuant to Section 14.10(a) or that such Lender is required to withdraw or cancel any such form or certificate previously submitted or any such form or certificate otherwise becomes ineffective or inaccurate, such Lender shall promptly notify
the Borrower and the Agent of such fact and the Lender shall to that extent not be obligated to provide any such form or certificate and will be entitled to withdraw or cancel any affected form or certificate, as applicable. 
 (d) If the IRS or any other Governmental Authority of the United States of America or other jurisdiction asserts a claim that the Agent
did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify the Agent of a change in circumstances which
rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify the Agent fully for all amounts paid, directly or indirectly, by the Agent as tax or otherwise, including penalties and
interest, and including any taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section 14.10, together with all costs and expenses (including Attorney Costs). The obligation of the Lenders under this
subsection shall survive the payment of all Obligations and the resignation or replacement of the Agent. 
 14.11 Collateral Matters.

 (a) The Lenders hereby irrevocably authorize the Agent, at its option and in its sole discretion, to release any
Agent’s Lien upon any Collateral (i) upon the termination of the Commitments and payment and satisfaction in full by the Borrower of all Loans and reimbursement obligations in respect of Letters of Credit and Credit Support, and the
termination of all outstanding Letters of Credit (whether or not any of such Obligations are due) and payment of all other obligations (other than contingent indemnification obligations for which no claim has been asserted); (ii) constituting
property being sold or disposed of if the Borrower certifies to the Agent that the sale or disposition is made in compliance with Section 9.8 (and the Agent may rely conclusively on any such certificate, without further inquiry);
(iii) constituting property in which the Loan Parties owned no interest at the time the Lien was granted or at any time thereafter; or (iv) constituting property leased to any Loan Party under a lease which has expired or 

  

 -106- 

 
been terminated in a transaction permitted under this Agreement. Except as provided above, the Agent will not release any of the Agent’s Liens without
the prior written authorization of the Lenders; provided that the Agent may, in its discretion and without the prior written authorization of the Lenders, release the Agent’s Liens on (x) Accounts, Inventory and other Collateral in which
the Agent has a first priority Lien valued in the aggregate not in excess of $5,000,000 and (y) Collateral in which the Agent does not have a first priority Lien without limitation as to amount if the holder of the prior Lien therein releases
its Lien in such Collateral and receives any proceeds from the sale or other disposition of such Collateral. Upon request by the Agent or any Loan Party at any time, the Lenders will confirm in writing the Agent’s authority to release any
Agent’s Liens upon particular types or items of Collateral pursuant to this Section 14.11. 
 (b) Upon receipt by
the Agent of any authorization required pursuant to Section 14.11(a) from the Lenders of the Agent’s authority to release any Agent’s Liens upon particular types or items of Collateral, and upon at least 5 Business Days’
prior written request by the Borrower, the Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Agent’s Liens upon such Collateral; provided,
however, that (i) the Agent shall not be required to execute any such document on terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation or entail any consequence other than the release of
such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of any Loan Party in respect of)
all interests retained by any Loan Party, including (without limitation) the proceeds of any sale, all of which shall continue to constitute part of the Collateral. 
 (c) The Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by any of the
Loan Parties or is cared for, protected or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to
exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Agent pursuant to any of the Loan Documents, it being
understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Agent may act in any manner it may deem appropriate, in its sole discretion given the Agent’s own interest in the Collateral in its
capacity as one of the Lenders and that the Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing. 
 14.12 Restrictions on Actions by Lenders; Sharing of Payments. 
 (a) Each of the Lenders agrees that it shall
not, without the express consent of all Lenders, and that it shall, to the extent it is lawfully entitled to do so, upon the request of all Lenders, set off against the Obligations, any amounts owing by such Lender to any of the Loan Parties or any
accounts of any of the Loan Parties now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so by the Agent, take or cause to be taken any action to 

  

 -107- 

 
enforce its rights under this Agreement or against any of the Loan Parties, including, without limitation, the commencement of any legal or equitable
proceedings, to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 
 (b) If at any
time or times any Lender shall receive (i) by payment, foreclosure, setoff or otherwise, any proceeds of Collateral or any payments with respect to the Obligations of any Loan Party to such Lender arising under, or relating to, this Agreement
or the other Loan Documents, except for any such proceeds or payments received by such Lender from the Agent pursuant to the terms of this Agreement, or (ii) payments from the Agent in excess of such Lender’s ratable portion of all such
distributions by the Agent, such Lender shall promptly (1) turn the same over to the Agent, in kind, and with such endorsements as may be required to negotiate the same to the Agent, or in same day funds, as applicable, for the account of all
of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other
Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that if all or part of such excess payment received by the purchasing party is
thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest
except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 
 14.13
Agency for Perfection. Each Lender hereby appoints each other Lender as agent for the purpose of perfecting the Lenders’ security interest in assets which, in accordance with Article 9 of the UCC can be perfected only by possession.
Should any Lender (other than the Agent) obtain possession of any such Collateral, such Lender shall notify the Agent thereof, and, promptly upon the Agent’s request therefor shall deliver such Collateral to the Agent or in accordance with the
Agent’s instructions. 
 14.14 Payments by Agent to Lenders. All payments to be made by the Agent to the Lenders shall be made by
bank wire transfer or internal transfer of immediately available funds to each Lender pursuant to wire transfer instructions delivered in writing to the Agent on or prior to the Closing Date (or if such Lender is an Assignee, on the applicable
Assignment and Assumption) or pursuant to such other wire transfer instructions as each party may designate for itself by written notice to the Agent. Concurrently with each such payment, the Agent shall identify whether such payment (or any portion
thereof) represents principal, premium or interest on the Revolving Loans, or otherwise. 
 14.15 Concerning the Collateral and the
Related Loan Documents. Each Lender authorizes and directs the Agent to enter into this Agreement and the other Loan Documents relating to the Collateral, for the ratable benefit of the Agent and the Lenders. Each Lender agrees that any action
taken by the Agent, any Co-Collateral Agent, the Required Lenders or all Lenders, as applicable, in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral, and the exercise by the Agent, the Required
Lenders or all Lenders, as applicable, of their respective powers set forth therein or herein, together with such 
  

 -108- 

 
other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. The Lenders acknowledge that the Revolving Loans, Agent
Advances, Bank Loans, Hedge Agreements, Bank Products and all interest, fees and expenses hereunder constitute one Debt, secured pari passu by all of the Collateral. 
 14.16 Field Audit and Examination Reports: Disclaimer by Lenders. By signing this Agreement, each Lender: 
 (a) is deemed to have requested that the Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report (each a “Report” and collectively,
“Reports”) prepared by or on behalf of the Agent; 
 (b) expressly agrees and acknowledges that neither the Bank nor
the Agent (i) makes any representation or warranty as to the accuracy of any Report, or (ii) shall be liable for any information contained in any Report; 
 (c) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agent or the Bank or other
party performing any audit or examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel;

 (d) agrees to keep all Reports confidential and strictly for its internal use, and not to distribute except to its
participants, or use any Report in any other manner; and 
 (e) without limiting the generality of any other indemnification
provision contained in this Agreement, agrees: (i) to hold the Agent and any such other Lender preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report
in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of
Borrower; and (ii) to pay and protect, and indemnify, defend and hold the Agent and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses and other amounts (including,
without limitation Attorney Costs) incurred by the Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 
 14.17 Relation Among Lenders. The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except
as otherwise set forth herein in case of the Agent) authorized to act for, any other Lender. 
 14.18 Co-Collateral Agents, Arranger,
Co-Agents, Etc. 
 Notwithstanding any other provisions of this Agreement or any of the other Loan Documents to the contrary, the
Co-Collateral Agents shall have rights at least as expansive as the rights afforded to the Agent relating to (i) (x) the definition herein of the term “Combined 

  

 -109- 

 
Availability” and any component definition of any of the foregoing, and (y) the definition herein of the term “Borrowing Base” and any
component thereof (including, without limitation, Reserves, advance rates, eligibility criteria, reporting requirements and appraisals, examinations and collateral audits) and (ii) the validity, extent, perfection or priority of the Liens
granted to the Agent in regards to the Collateral (collectively, the “Collateral Issues”), and any provision in this Agreement or any other Loan Document relating to the Collateral Issues which would otherwise only need the consent of or
to be satisfactory or acceptable to the Agent shall be deemed to require the consent of or be satisfactory or acceptable (as the case may be) to the Agent and each Co-Collateral Agent. In addition, in the event that the Agent and the Co-Collateral
Agents cannot agree on issues relating to the Borrowing Base, Combined Availability, Borrowing Base eligibility standards, Reserves, advance rates, borrowing base reporting, appraisals or examinations or any other action or determination relating to
the Collateral Issues, the determination shall be made by the Agent, or a Co-Collateral Agent, as applicable, either asserting the more conservative credit judgment (for example, any action or determination that would result in the least amount of
credit being available to the Borrower hereunder or require additional reporting or increased access to the Collateral) or declining to permit the requested action. 
 Neither the Arranger nor any co-agent, co-arranger, syndication agent or documentation agent in its capacity as such shall have any right, power, obligation, liability, responsibility or duty under this Agreement.

 ARTICLE 15 
 MISCELLANEOUS 
 15.1 Severability. The illegality or unenforceability of any provision of this Agreement or any other
Loan Document or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement, any other Loan Document or any instrument or agreement required
hereunder. 
 15.2 Governing Law: Choice of Forum: Service of Process. 
 (a) THIS AGREEMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE BANKRUPTCY
CODE AND THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF LAWS PROVISIONS PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC) OF THE
STATE OF NEW YORK; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 (b) ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE OR THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE 

  

 -110- 

 
SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LOAN PARTY, THE AGENT AND THE LENDERS CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH LOAN PARTY, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. NOTWITHSTANDING THE FOREGOING: (1) THE AGENT AND THE LENDERS SHALL
HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION THE AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE
OBLIGATIONS AND (2) EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS. 
 (c) EACH LOAN PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE
MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION 15.7 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FOUR (4) DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE
U.S. MAILS. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW. 
 15.3 WAIVER OF JURY TRIAL. EACH LOAN PARTY, THE LENDERS AND THE AGENT EACH IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE
OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER
WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH LOAN PARTY, THE LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES
FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR
THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
  

 -111- 

 15.4 Survival of Representations and Warranties. All of the Borrower’s representations and
warranties contained in this Agreement shall survive the execution, delivery, and acceptance thereof by the parties, notwithstanding any investigation by the Agent or the Lenders or their respective agents. 
 15.5 Other Security and Guaranties. The Agent, may, without notice or demand and without affecting any Loan Party’s obligations hereunder or
under any other Loan Document, from time to time: (a) take from any Person and hold collateral (other than the Collateral) for the payment of all or any part of the Obligations and exchange, enforce or release such collateral or any part
thereof; and (b) accept and hold any endorsement or guaranty of payment of all or any part of the Obligations and release or substitute any such endorser or guarantor, or any Person who has given any Lien in any other collateral as security for
the payment of all or any part of the Obligations, or any other Person in any way obligated to pay all or any part of the Obligations. 
 15.6 Fees and Expenses. Each Loan Party agrees, jointly and severally, to pay all Attorney Costs and to pay to the Agent, for its benefit, on demand, all reasonable costs and expenses that Agent pays or incurs in connection with the
negotiation, preparation, syndication, consummation, administration, enforcement, and termination of this Agreement and any of the other Loan Documents and each Loan Party agrees to pay to each Lender all reasonable costs and expenses that such
Lender pays or incurs in connection with the enforcement of, or protection of their rights under, this Agreement and the other Loan Documents, including, in each case, without limitation: (a) Attorney Costs; (b) reasonable costs and
expenses (including attorneys’ and paralegals’ fees and disbursements) for any amendment, supplement, waiver, consent, or subsequent closing in connection with the Loan Documents and the transactions contemplated thereby; (c) costs
and expenses of lien and title searches and title insurance; (d) taxes, fees and other charges for recording mortgages, filing financing statements and continuations, and other actions to perfect, protect, and continue the Agent’s Liens
(including reasonable costs and expenses paid or incurred by the Agent in connection with the consummation of Agreement); (e) sums paid or incurred to pay any amount or take any action required of Borrower or other Loan Party under the Loan
Documents that Borrower or other Loan Party fails to pay or take; (f) costs of appraisals, inspections, and verifications of the Collateral, including, without limitation, travel, lodging, and meals for inspections of the Collateral and the
Loan Parties’ operations by the Agent plus the Agent’s (or any Person retained by the Agent) then customary charge for field examinations and audits and the preparation of reports thereof for each Person retained or employed by the Agent
with respect to each field examination or audit; (g) costs and expenses of forwarding loan proceeds, collecting checks and other items of payment, and establishing and maintaining Payment Accounts and lock boxes; and (h) costs and expenses
of preserving and protecting the Collateral. In addition, each Loan Party agrees, jointly and severally, to pay costs and expenses incurred by the Agent (including Attorneys’ Costs) to the Agent, for its benefit, on demand, and to the other
Lenders for their benefit, on demand, and all reasonable fees, expenses and disbursements incurred by such other Lenders for one law firm retained by such other Lenders, in each case, paid or incurred to obtain payment of the Obligations, enforce
the Agent’s Liens, sell or otherwise realize upon the 

  

 -112- 

 
Collateral, and otherwise enforce the provisions of the Loan Documents, or to defend any claims made or threatened against the Agent or any Lender arising
out of the transactions contemplated hereby (including without limitation, preparations for and consultations concerning any such matters). Without limiting the foregoing, the Loan Parties shall also pay on demand, jointly and severally, directly or
at the option of the Agent through direct charges to the outstanding balance of the Loan all reasonable costs and expenses incurred by the Agent or any Lender in connection with any litigation, contest, dispute, suit or proceeding relating to this
Agreement or any other Loan Document. The foregoing shall not be construed to limit any other provisions of the Loan Documents regarding costs and expenses to be paid by any Loan Party. All of the foregoing costs and expenses shall be charged to the
Borrower’s Loan Account as Revolving Loans as described in Section 4.5. 
 15.7 Notices. Except as otherwise provided
herein, all notices, demands and requests that any party is required or elects to give to any other shall be in writing, or by a telecommunications device capable of creating a written record, and any such notice shall become effective (a) upon
personal delivery thereof; including, but not limited to, delivery by overnight mail and courier service, (b) four (4) days after it shall have been mailed by United States mail, first class, certified or registered, with postage prepaid,
or (c) in the case of notice by such a telecommunications device, when properly transmitted, in each case addressed to the party to be notified as follows: 
 if to the Agent or to the Bank: 
 Bank of America, N.A. 
 100 Federal Street, 9th Floor 
 Boston,
Massachusetts 02110 
 Attention: Stephen Garvin 
 Telecopy No.: (617) 434-6685 
 with copies to: 
 Riemer & Braunstein LLP 
 Three
Center Plaza 
 Boston, Massachusetts 02018 
 Attention: Donald E. Rothman, Esq. 
 Telecopy No.: (617) 880-3456 
 if to any Loan Party: 
 c/o Eddie Bauer,
Inc 
 15010 NE 36th Street 
 Redmond,
Washington 98052 
 Attention: Marvin E. Toland, Chief 
 Financial Officer 
 Telecopy No.: (425) 755-7610 
  

 -113- 

 with copies to: 
 Latham & Watkins LLP 
 Sears Tower, Suite 5800 
 233 South Wacker Drive 
 Chicago IL 60606

 Attention: David Heller, Esq. 
 Telecopy No.: (312) 993-9767 
 or to such other address as each party may designate for itself by like notice. Failure or delay in delivering
copies of any notice, demand, request, consent, approval, declaration or other communication to the persons designated above to receive copies shall not adversely affect the effectiveness of such notice, demand, request, consent, approval,
declaration or other communication. 
 15.8 Waiver of Notices. Unless otherwise expressly provided herein, each Loan Party waives
presentment, protest and notice of demand or dishonor and protest as to any instrument, notice of intent to accelerate the Obligations and notice of acceleration of the Obligations, as well as any and all other notices to which it might otherwise be
entitled. No notice to or demand on any Loan Party which the Agent or any Lender may elect to give shall entitle such Loan Party to any or further notice or demand in the same, similar or other circumstances. 
 15.9 Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the respective representatives,
successors, and assigns of the parties hereto; provided, however, that no interest herein may be assigned by Borrower without prior written consent of the Agent and each Lender. The rights and benefits of the Agent and the Lenders hereunder shall,
if such Persons so agree, inure to any party acquiring any interest in the Obligations or any part thereof. 
 15.10 Indemnity of the
Agent and the Lenders by the Loan Parties. 
 (a) Each Loan Party agrees, jointly and severally, to defend, indemnify and
hold the Agent-Related Persons, and each Lender and each of its respective officers, directors, employees, counsel, representatives, agents and attorneys-in-fact (each, an “Indemnified Person”) harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever which may at any time (including at any time following repayment
of the Loans and the termination, resignation or replacement of the Agent or replacement of any Lender) be imposed on, incurred by or asserted against any such Person in any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein, or the transactions contemplated hereby, or any action taken or omitted by any such Person under or in connection with any of the foregoing, including with respect to any investigation, litigation or proceeding
(including the Cases or any appellate proceeding) related to or arising out of this Agreement, any other Loan Document, or the Loans or the use of the proceeds thereof; whether or not any Indemnified Person is a party thereto (all the foregoing,
collectively, the “Indemnified Liabilities”); provided, that the Loan Parties 

  

 -114- 

 
shall have no obligation hereunder to any Indemnified Person with respect to Indemnified Liabilities resulting solely from the willful misconduct of such
Indemnified Person. The agreements in this Section shall survive payment of all other Obligations. 
 (b) Each Loan Party,
jointly and severally, hereby indemnifies, defends and holds harmless the Indemnified Persons from any loss or liability directly or indirectly arising out of the use, generation, manufacture, production, storage, release, threatened release,
discharge, disposal or presence of a hazardous substance. This indemnity will apply whether the hazardous substance is on, under or about any of such Loan Party’s property or operations or property leased to such Loan Party or property to which
such Loan Party has sent any hazardous substance. The indemnity includes but is not limited to Attorneys’ Costs. The indemnity extends to the Agent-Related Persons, and each Lender, its parent, subsidiaries and all of their directors, officers,
employees, agents, successors, attorneys and assigns. “Hazardous Substances” means any substance, material or waste that is or becomes designated or regulated as “toxic,” “hazardous,” “pollutant,” or
“contaminant” or a similar designation or regulation under any federal, state or local law (whether under a common law, statute, regulation or otherwise) or judicial or administrative interpretation of such, including without limitation
petroleum or natural gas. This indemnity will survive termination of the Agreement and the repayment of all other Obligations. 
 15.11
Limitation of Liability. NO CLAIM MAY BE MADE BY ANY LOAN PARTY, ANY LENDER OR OTHER PERSON AGAINST THE AGENT, ANY LENDER, OR THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, COUNSEL, REPRESENTATIVES, AGENTS, ADVISORS OR ATTORNEYS-IN-FACT OF
ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH LOAN PARTY AND EACH LENDER HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR
SUSPECTED TO EXIST IN ITS FAVOR. 
 15.12 Final Agreement. This Agreement and the other Loan Documents are intended by the Loan
Parties, the Agent and the Lenders to be the final, complete, and exclusive expression of the agreement among them. Upon execution, this Agreement supersedes any and all prior oral or written agreements relating to the subject matter hereof. No
modification, rescission, waiver, release, or amendment of any provision of this Agreement or any other Loan Document shall be made, except in accordance with the terms of this Agreement or any other Loan Document. All letters of credit issued under
the Pre-Petition Loan Agreement shall, upon execution hereof, be deemed Letters of Credit issued hereunder, and all terms and conditions hereof shall apply to such letters of credit, and to the parties hereto with respect to such letters of credit.

 15.13 Counterparts. This Agreement may be executed in any number of counterparts, and by the Agent, each Lender and each of the
Loan Parties in separate counterparts, each of which shall be an original, but all of which shall together constitute one and the same agreement. 
  

 -115- 

 15.14 Captions. The captions contained in this Agreement are for convenience of reference only,
are without substantive meaning and should not be construed to modify, enlarge, or restrict any provision. 
 15.15 Right of Setoff.
In addition to any rights and remedies of the Lenders provided by law, if an Event of Default exists or the Loans have been accelerated, subject to the DIP Orders, each Lender is authorized at any time and from time to time, without prior notice to
any Loan Party, any such notice being waived by each Loan Party to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness
at any time owing by, such Lender or any Affiliate of such Lender to or for the credit or the account of any Loan Party against any and all Obligations owing to such Lender, now or hereafter existing, irrespective of whether or not the Agent or such
Lender shall have made demand under this Agreement or any Loan Document and although such Obligations may be contingent or unmatured. Each Lender agrees promptly to notify the Borrower and the Agent after any such set-off and application made by
such Lender; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. NOTWITHSTANDING THE FOREGOING, NO LENDER SHALL EXERCISE ANY RIGHT OF SET-OFF, BANKER’S LIEN, OR THE LIKE AGAINST
ANY DEPOSIT ACCOUNT OR PROPERTY OF ANY LOAN PARTY HELD OR MAINTAINED BY SUCH LENDER WITHOUT THE PRIOR WRITTEN UNANIMOUS CONSENT OF THE LENDERS. 
 15.16 Joint and Several Liability. The Loan Parties shall be liable for all amounts due to the Agent and/or any Lender under this Agreement, regardless of which Loan Party actually receives Loans or other extensions of credit
hereunder (including the issuance of Letters of Credit for the account of the Borrower) or the amount of such Loans received or Letters of Credit issued or the manner in which the Agent and/or such Lender accounts for such Loans or other extensions
of credit on its books and records. The Borrower’s Obligations with respect to Loans made to it and Letters of Credit issued for its account, and each Loan Party’s Obligations arising as a result of the joint and several liability of the
Loan Parties hereunder, with respect to Loans made to the Borrower and Letters of Credit issued for the account of the Borrower hereunder, shall be separate and distinct Obligations, but all such Obligations shall be primary Obligations of each Loan
Party. 
 Each Loan Party’s Obligations arising as a result of the joint and several liability of the Loan Parties hereunder with
respect to Loans or other extensions of credit made to the Borrower hereunder (including the issuance of Letters of Credit for the account of Borrower) shall, to the fullest extent permitted by law, be unconditional irrespective of (i) the
validity or enforceability, avoidance or subordination of the Obligations of any or all of the other Loan Parties or of any promissory note or other document evidencing all or any part of the Obligations of any or all other Loan Parties,
(ii) the absence of any attempt to collect the Obligations from any or all of the other Loan Parties, or any other security therefor, or the absence of any other action to enforce the same, (iii) the waiver, consent, extension, forbearance
or granting of any indulgence by the Agent and/or any Lender with respect to any provision of any instrument evidencing the Obligations of any or all of the other Loan Parties, or any part thereof; or any other agreement now or hereafter executed by
any or all of the other Loan Parties and delivered to the Agent and/or any Lender, (iv) the failure by the Agent and/or any Lender to take any steps to perfect and maintain its security interest in, or to preserve its rights to, any security or
collateral for the 

  

 -116- 

 
Obligations of any or all of the other Loan Parties, (v) or (vi) any other circumstances which might constitute a legal or equitable discharge or
defense of any or all of the other Loan Parties. With respect to the Loan Parties’ Obligations arising as a result of the joint and several liability of the Loan Parties hereunder with respect to Loans or other extensions of credit made to or
for the account of the Borrower hereunder (including the issuance of Letters of Credit for the account of the Borrower), each Loan Party waives, until the Obligations (other than contingent indemnification obligations for which no claim has been
asserted) shall have been paid in full and this Agreement shall have been terminated, any right to enforce any right of subrogation or any remedy which the Agent and/or any Lender now has or may hereafter have against any other Loan Party, any
endorser or any guarantor of all or any part of the Obligations, and any benefit of, and any right to participate in, any security or collateral given to the Agent and/or any Lender to secure payment of the Obligations or any other liability of any
Loan Party to the Agent and/or any Lender. 
 Upon any Event of Default (but subject to any applicable notice requirements set forth in
Section 11.2(a)), the Agent may proceed directly and at once, without notice, against any Loan Party to collect and recover the full amount, or any portion of the Obligations, without first proceeding against any other Loan Party or any
other Person, or against any security or collateral for the Obligations. Each Loan Party consents and agrees that the Agent shall be under no obligation to marshal any assets in favor of any Loan Party or against or in payment of any or all of the
Obligations. 
 Each Loan Party hereby irrevocably designates and appoints Borrower as the “Authorized Representative” under this
Agreement to deliver and receive all notices and written notices on behalf of such Loan Party and to receive on behalf of such Loan Party and distribute all distributions of the Loan Parties in accordance with the respective interests of the Loan
Parties. Each Loan Party hereby unconditionally releases the Agent, the Bank, the Lenders and any of their Affiliates with respect to any claims, obligations or duties that such Persons may otherwise have been deemed to possess absent the
designation and appointment set forth in the preceding sentence. 
 15.17 Confidentiality. 
 (a) Each Loan Party hereby consent that the Agent and each Lender may issue and disseminate to the public general information describing
the credit accommodations entered into pursuant to this Agreement, including the name and address of such Loan Party and a general description of such Loan Party’s business and may use such Loan Party’s name in advertising and other
promotional material. 
 (b) Each Lender severally agrees to take normal and reasonable precautions and exercise due care to
maintain the confidentiality of all information identified as “confidential” or “secret” by any of the Loan Parties and provided to the Agent or such Lender by or on behalf of such Loan Party, under this Agreement or any other
Loan Document, except to the extent that such information (i) was or becomes generally available to the public other than as a result of disclosure by the Agent or such Lender, or (ii) was or becomes available on a nonconfidential basis
from a source other than such Loan Party, provided that such source is not bound by a confidentiality agreement with 

  

 -117- 

 
such Loan Party known to the Agent or such Lender; provided, however, that the Agent and any Lender may disclose such information (1) at the request or
pursuant to any requirement of any Governmental Authority to which the Agent or such Lender is subject or in connection with an examination of the Agent or such Lender by any such Governmental Authority; (2) pursuant to subpoena or other court
process, provided that such Lender shall endeavor to promptly provide notice of such proposed or compulsory disclosure to the affected Loan Parties to enable such Loan Parties to oppose such disclosure or seek an appropriate protective order;
(3) when required to do so in accordance with the provisions of any applicable Requirement of Law; (4) to the extent reasonably required in connection with any litigation or proceeding (including, but not limited to, any bankruptcy
proceeding) to which the Agent, any Lender or their respective Affiliates may be party provided that, except with respect to clause (5) below, such Lender shall endeavor to promptly provide notice of such proposed or compulsory disclosure to
the affected Loan Parties to enable such Loan Parties to oppose such disclosure or seek an appropriate protective order; (5) to the extent reasonably required in connection with the exercise of any remedy hereunder or under any other Loan
Document, provided that any confidential information shall be submitted under seal; (6) to the Agent’s or such Lender’s independent auditors, accountants, attorneys and other professional advisors, each of which shall be advised of
the confidential nature of the information the obligation not to disclose such information except as provided herein; (7) to any prospective Participant or Assignee under any Assignment and Assumption, actual or potential, provided that such
prospective Participant or Assignee agrees to keep such information confidential to the same extent required of the Agent and the Lenders hereunder; (8) as expressly permitted under the terms of any other document or agreement regarding
confidentiality to which such Loan Party is party or is deemed party with the Agent or such Lender, and (9) to its Affiliates. 
 (c) Notwithstanding anything to the contrary in this Agreement or the Other Loan Documents, each of the parties, its subsidiaries and their respective representatives, affiliates, employees, officers, directors or other agents are permitted
to disclose to any and all Persons, without limitations of any kind, the tax treatment and tax structure of the credit facility provided hereunder and all materials of any kind (including opinions or other tax analyses) that are or have been
provided to the Borrower, the Lenders or the Agent related to such tax treatment and tax structure. 
 15.18 Conflicts with Other Loan
Documents. Unless otherwise expressly provided in this Agreement (or in another Loan Document by specific reference to the applicable provision contained in this Agreement), if any provision contained in this Agreement conflicts with any
provision of any other Loan Document (other than the DIP Orders), the provision contained in this Agreement shall govern and control. 
 15.19 Appraisals and Commercial Finance Examinations. 
 (a) The Agent and the Co-Collateral Agents may engage
an appraiser to conduct and deliver Inventory Appraisals of the Inventory of Borrower at such times as determined by the Agent and the Co-Collateral Agents in their reasonable discretion, each such Inventory Appraisal to be in form, scope and
substance satisfactory to the Agent and the Co-Collateral Agents. 
  

 -118- 

 (b) The Agent and the Co-Collateral Agents may engage professionals to conduct commercial
finance examinations and other evaluations, including, without limitation, of (i) the Borrower’s practices in the computation of the Borrowing Base and (ii) the assets included in the Borrowing Base and related financial information
such as, but not limited to, sales, gross margins, payables, accruals and reserves, at such times as determined by the Agent and the Co-Collateral Agents in their reasonable discretion, each such commercial finance examination or other evaluation to
be in form, scope and substance satisfactory to the Agent and the Co-Collateral Agents. 
 (c) The Borrower agrees to pay the
Agent and the Co-Collateral Agents promptly upon receipt of a reasonably detailed invoice therefor the cost of each appraisal, commercial finance examination and other evaluation conducted pursuant to this Section 15.19. 
 15.20 Patriot Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will
allow such Lender to identify the Borrower in accordance with the Act. 
 15.21 Foreign Asset Control Regulations. Neither the advance
of the Revolving Loans nor the use of the proceeds of any thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading With the Enemy Act”) or any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any enabling legislation or executive order relating thereto (which for the avoidance of doubt shall include,
but shall not be limited to (a) Executive Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the
“Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)). Furthermore, none of the Borrower or its Affiliates
(a) is or will become a “blocked person” as described in the Executive Order, the Trading With the Enemy Act or the Foreign Assets Control Regulations or (b) engages or will engage in any dealings or transactions, or be otherwise
associated, with any such “blocked person”. 
 15.22 Relationship to DIP Orders. 
 In the event of any inconsistency between the terms of the DIP Orders and the Loan Documents, the terms of the DIP Orders shall control. 
  

 -119- 

 ARTICLE 16 
 GUARANTEES 
 Each Guarantor party hereto unconditionally guarantees, as a primary obligor and not
merely as a surety, jointly and severally with each other Guarantor party hereto, the due and punctual payment of the principal of and interest on the Revolving Loans and of all other Obligations, when and as due, whether at maturity, by
acceleration, by notice or prepayment or otherwise. Each Guarantor party hereto further agrees that the Obligations may be extended and renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its
guarantee notwithstanding any extension or renewal of any Obligations. 
 To the fullest extent permitted by law, each Guarantor party hereto
waives presentment to, demand of payment from and protest to the Borrower or any other Person of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. To the fullest extent permitted by
law, the obligations of a Guarantor party hereto hereunder shall not be affected by (a) the failure of the Agent or any Lender to assert any claim or demand or to enforce any right or remedy against Borrower or any other Guarantor under the
provisions of this Agreement or any of the other Loan Documents or otherwise; (b) any rescission, waiver, amendment or modification of any of the terms or provisions of this Agreement, any of the other Loan Documents, any guarantee or any other
agreement; (c) the release of any security held by the Agent or any Lender for the Obligations or any of them; or (d) the failure of the Agent or any Lender to exercise any right or remedy against any other Guarantor of the Obligations.

 Each Guarantor party hereto further agrees that its guarantee constitutes a guarantee of payment when due and not of collection, and
waives any right to require that any resort be had by the Agent or any Lender to any security (if any) held for payment of the Revolving Loan or to any balance of any deposit account or credit on the books of the Agent or any Lender in favor of
Borrower or any other Person. 
 To the fullest extent permitted by law, the obligations of each Guarantor party hereto hereunder shall not
be subject to any reduction, limitation, impairment or termination for any reason, including, without limitation, any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of any of the Obligations or otherwise. Without limiting the generality of the foregoing, to the fullest extent permitted by law, the obligations of
each Guarantor party hereto hereunder shall not be discharged or impaired or otherwise affected by the failure of the Agent or any Lender to assert any claim or demand or to enforce any remedy under this Agreement or under any other Loan Document,
any guarantee or any other agreement, by any waiver or modification of any provision thereof, by any default, failure or delay, willful or otherwise, in the performance of the Obligations, or by any other act or omission which may or might in any
manner or to any extent vary the risk of such Guarantor or otherwise operate as a discharge of such Guarantor as a matter of law or equity. 
  

 -120- 

 Each Guarantor party hereto further agrees that its guarantee shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof; of principal or of interest on any Revolving Loan or any other Obligations is rescinded or must otherwise be returned by the Agent or any Lender for any reason whatsoever.

 Each Guarantor party hereto hereby waives and releases all rights of subrogation against each Loan Party and its property and all rights
of indemnification, contribution and reimbursement from each Loan Party and its property, in each case in connection with this guarantee and any payments made hereunder, and regardless of whether such rights arise by operation of law, pursuant to
contract or otherwise. 
 The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment (as defined
below), such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Guarantor under this
paragraph shall be subordinate and subject in right of payment to the Obligations until such time as the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid in full and all Commitments
have been terminated, and none of the Guarantors shall exercise any right or remedy under this paragraph against any other Guarantor until the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have
been paid in full and all Commitments have been terminated. For purposes of this paragraph, (a) “Excess Payment” shall mean the amount paid by any Guarantor in excess of its Pro Rata Share of any Obligations;
(b) “Pro Rata Share” shall mean, for any Guarantor in respect of any payment of Obligations by such Guarantor, the ratio (expressed as a percentage) as of the date of such payment of Obligations of (i) the amount by which
the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations
of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of all of the Guarantors exceeds the amount of all of the debts and liabilities (including contingent,
subordinated, unmatured and unliquidated liabilities, but excluding the obligations of the Guarantors hereunder) of the Guarantors; provided, however, that, for purpose of calculating the Pro Rata Shares of the Guarantors in respect of
any payment of Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such Guarantor as of the date such
Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment; and (c) “Contribution Share” shall mean, for any Guarantor in respect of any Excess Payment made by any other Guarantor, the
ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor
(including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of
the Guarantors other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of the Guarantors hereunder)
of the Guarantors other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in 

  

 -121- 

 
respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have been a
Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment. 
 [Signature pages to follow.] 
  

 -122- 

 IN WITNESS WHEREOF, the parties have entered into this Agreement on the date first above written.

 [signature pages follow] 
  

 -123- 

			
	“BORROWER”
	
	EDDIE BAUER, INC.
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Chief Financial Officer
	
	“GUARANTORS”
	
	EDDIE BAUER HOLDINGS, INC.
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Chief Financial Officer
	
	EDDIE BAUER SERVICES, LLC
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Vice President
	
	EDDIE BAUER FULFILLMENT SERVICES, INC.
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Vice President
	
	EDDIE BAUER INFORMATION TECHNOLOGY, LLC
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Vice President
	
	EDDIE BAUER DIVERSIFIED SALES, LLC
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Vice President

 Signature Page to Senior Secured, Super-Priority 
 Debtor-in-Possession Loan and Security Agreement 

			
	EDDIE BAUER INTERNATIONAL DEVELOPMENT, LLC
		
	By:	 	 /s/ Marvin Edward Toland

	Name:	 	Marvin Edward Toland
	Title:	 	Vice President

 Signature Page to Senior Secured, Super-Priority 
 Debtor-in-Possession Loan and Security Agreement 

			
	“AGENT”
	
	BANK OF AMERICA, N.A. as the Agent
		
	By	 	 /s/ Stephen J. Garvin

	Name:	 	Stephen J. Garvin
	Title:	 	Managing Director

 Signature Page to Senior Secured, Super-Priority 
 Debtor-in-Possession Loan and Security Agreement 

			
	“CO-COLLATERAL AGENTS”
	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as a
Co-Collateral Agent

		
	By	 	 /s/ Kristina M. Miller

	Name:	 	Kristina M. Miller
	Title:	 	Duly Authorized Signatory
	
	 THE CIT GROUP/BUSINESS CREDIT, INC.,
 as a
Co-Collateral Agent

		
	By	 	 /s/ Dan Bueno

	Name:	 	Dan Bueno
	Title:	 	Vice President

 Signature Page to Senior Secured, Super-Priority 
 Debtor-in-Possession Loan and Security Agreement 

			
	“LENDERS”
	
	BANK OF AMERICA, N.A., as a Lender
		
	By	 	 /s/ Stephen J. Garvin

	Name:	 	Stephen J. Garvin
	Title:	 	Managing Director
	
	 GENERAL ELECTRIC CAPITAL CORPORATION.,
 as a Lender

		
	By	 	 /s/ Kristina M. Miller

	Name:	 	Kristina M. Miller
	Title:	 	Duly Authorized Signatory
	
	 THE CIT GROUP/BUSINESS CREDIT, INC.,
 as a Lender

		
	By	 	 /s/ Dan Bueno

	Name:	 	Dan Bueno
	Title:	 	Vice President

 Signature Page to Senior Secured, Super-Priority 
 Debtor-in-Possession Loan and Security AgreementRights Agreement

 Exhibit 4.1 
  
  
 KENSEY NASH CORPORATION 
 and 
 COMPUTERSHARE TRUST COMPANY,
N.A. 
 as 
 Rights
Agent 
 RIGHTS AGREEMENT 
 dated as of June 18, 2009 
  
  

 TABLE OF CONTENTS 
  
  

					
	 	  	 	  	Page
	 Section 1.
	  	 Certain Definitions
	  	1
	 Section 2.
	  	 Appointment of Rights Agent
	  	6
	 Section 3.
	  	 Issuance of Rights Certificates
	  	6
	 Section 4.
	  	 Form of Rights Certificates
	  	9
	 Section 5.
	  	 Countersignature and Registration
	  	10
	 Section 6.
	  	Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	  	11
	 Section 7.
	  	 Exercise of Rights; Purchase Price; Expiration Date of Rights
	  	12
	 Section 8.
	  	 Cancellation and Destruction of Rights Certificates
	  	14
	 Section 9.
	  	 Availability of Capital Stock
	  	14
	 Section 10.
	  	 Preferred Shares Record Date
	  	16
	 Section 11.
	  	 Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights
	  	16
	 Section 12.
	  	 Certificate of Adjusted Purchase Price or Number of Shares
	  	24
	 Section 13.
	  	 Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power
	  	24
	 Section 14.
	  	 Fractional Rights and Fractional Shares
	  	27
	 Section 15.
	  	 Rights of Action
	  	29
	 Section 16.
	  	 Agreement of Rights Holders
	  	29
	 Section 17.
	  	 Rights Certificate Holder Not Deemed a Stockholder
	  	30
	 Section 18.
	  	 Concerning the Rights Agent
	  	30
	 Section 19.
	  	 Merger or Consolidation or Change of Name of Rights Agent
	  	31
	 Section 20.
	  	 Rights and Duties of Rights Agent
	  	31
	 Section 21.
	  	 Change of Rights Agent
	  	34
	 Section 22.
	  	 Issuance of New Rights Certificates
	  	35
	 Section 23.
	  	 Redemption
	  	35
	 Section 24.
	  	 Exchange
	  	36
	 Section 25.
	  	 Notice of Certain Events
	  	37
	 Section 26.
	  	 Notices
	  	38
	 Section 27.
	  	 Supplements and Amendments
	  	39
	 Section 28.
	  	 Determination and Actions by the Board of Directors
	  	40
	 Section 29.
	  	 Successors
	  	40
	 Section 30.
	  	 Benefits of this Agreement
	  	40
	 Section 31.
	  	 Severability
	  	41
	 Section 32.
	  	 Governing Law
	  	41
	 Section 33.
	  	 Counterparts
	  	41
	 Section 34.
	  	 Descriptive Headings
	  	41
	 Section 35.
	  	 Force Majeure
	  	41

 RIGHTS AGREEMENT 
 THIS RIGHTS AGREEMENT (as it may from time to time be supplemented or amended, this “Agreement”), dated as of June 18, 2009, is between Kensey Nash Corporation, a Delaware
corporation, and Computershare Trust Company, N.A., a federally chartered trust company, as Rights Agent. 
 The Board of
Directors of the Company (the “Board of Directors”) has authorized and declared a dividend of one preferred share purchase right (a “Right”) for each Common Share (as hereinafter defined) of the Company outstanding
as of the Close of Business (as hereinafter defined) on June 19, 2009 (the “Record Date”), each Right representing the right to purchase one thousandth of a Preferred Share (as hereinafter defined), upon the terms and subject
to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding between the Record Date and the earliest of the Distribution Date, the Redemption
Date and the Final Expiration Date (as such terms are hereinafter defined). 
 Accordingly, in consideration of the premises
and the mutual agreements herein set forth, the parties hereby agree as follows: 
 Section
1.    Certain Definitions.    For purposes of this Agreement, the following terms have the meanings indicated: 
 (a)    “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of
Common Shares equal to or in excess of 15% of the Common Shares then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or any Subsidiary of the
Company, or (iv) any entity organized, appointed or established by the Company for, or pursuant to the terms of, any such plan. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of (a) an
acquisition of Common Shares by the Company which, by reducing the number of Common Shares outstanding, increases the proportionate number of Common Shares Beneficially Owned by such Person to 15% or more of the Common Shares then outstanding or
(b) the acquisition by such Person of newly-issued Common Shares directly from the Company (it being understood that a purchase from an underwriter or other intermediary is not directly from the Company); provided, however, that if a
Person becomes the Beneficial Owner of Common Shares equal to or in excess of 15% of the Common Shares then outstanding by reason of share purchases by the Company or the receipt of newly-issued Common Shares directly from the Company and, after
such share purchases or direct issuance by the Company, becomes the Beneficial Owner of any additional Common Shares of the Company and is the Beneficial Owner of Common Shares equal to or in excess of 15% of the Common Shares then outstanding, then
such Person shall be deemed to be an “Acquiring Person.” In addition, if the Board 

 
of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions
of this Section 1(a), has become such inadvertently, and such Person divests as promptly as practicable (or within such period of time as the Board of Directors determines as reasonable) a sufficient number of Common Shares (or, for the
avoidance of doubt, with respect to any Derivative Common Shares, terminates the subject derivative transaction or transactions or disposes of the subject derivative security or securities) so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this Section 1(a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. 
 (b)    “Act” shall have the meaning set forth in Section 9(e) hereof.

 (c)    “Affiliate” and “Associate” shall have the
respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act (as hereinafter defined) as in effect on the date of this Agreement. 
 (d)    A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to
“Beneficially Own” and to have “Beneficial Ownership of, any securities: 
 (i)    which such Person or any of such Person’s Affiliates or Associates is deemed to beneficially own, within the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in
effect on the date of this Agreement; 
 (ii)    which such Person or any such
Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time pursuant to any agreement, arrangement or understanding (other than customary agreements with
and between underwriters and selling group members with respect to a bona fide public offering of securities and other than customary agreements with and between initial purchasers and selling group members with respect to a bona fide offering of
securities under Rule 144A under the Act), or upon the exercise of conversion rights (other than conversion rights applicable to securities held by initial purchasers or selling group members in connection with a bona fide offering of securities
under Rule 144A under the Act pursuant to customary agreements with and between them and the Company, so long as such securities are so held), exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided,
however, that a Person shall not be deemed the beneficial owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates
until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or 

  

 2 

 
understanding; provided, however, that a Person shall not be deemed the beneficial owner of, or to beneficially own, any security if the agreement,
arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act and (2) is not then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
 (iii)    which are beneficially owned, directly or indirectly, by any other Person with which
such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of
securities and other than customary agreements with and between initial purchasers and selling group members with respect to a bona fide offering of securities under Rule 144A under the Act) for the purpose of acquiring, holding, voting (except to
the extent contemplated by the proviso to Section 1(d)(ii)(B) hereof) or disposing of any securities of the Company; provided, however, that for purposes of determining the beneficial ownership of securities under this Agreement,
officers and directors of the Company solely by reason of their status as such shall not constitute a group (notwithstanding that they may be Associates of one another or may be deemed to constitute a group for purposes of Section 13(d) of the
Exchange Act) and shall not be deemed to own shares owned by another officer or director of the Company; or 
 (iv)    which are the subject of a derivative transaction entered into by such Person or any of such Person’s Affiliates or Associates, or a derivative security acquired by such Person or any of such
Person’s Affiliates or Associates, which gives such Person or any of such Person’s Affiliates or Associates the economic equivalent of ownership of an amount of such securities due to the fact that the value of the derivative is explicitly
determined by reference to the price or value of such securities, or which provides such Person or any of such Person’s Affiliates or Associates an opportunity, directly or indirectly, to profit, or to share in any profit, derived from any
change in the value of such securities, without regard to whether (A) such derivative conveys any voting rights in such securities to such Person, (B) the derivative is required to be, or capable of being, settled through delivery of such
securities, or (C) such Person may have entered into other transactions that hedge the economic effect of such derivative. In determining the number of Common Shares deemed beneficially owned by virtue of the operation of this
Section 1(d)(iv), the subject Person shall be deemed to beneficially own (without duplication) the notional or other number of Common Shares specified in the documentation evidencing the derivative position as being subject to be acquired upon
the exercise or settlement of the applicable right or as 

  

 3 

 
the basis upon which the value or settlement amount of such right, or the opportunity of the holder of such right to profit or share in any profit, is to be
calculated in whole or in part, and in any case (or if no such number of Common Shares is specified in such documentation or otherwise), as determined by the Board of Directors in good faith to be the number of Common Shares to which the derivative
position relates. Such Common Shares that are deemed so Beneficially Owned pursuant to the operation of this Section 1(d)(iv) shall be referred to herein as “Derivative Common Shares.” 
 Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the phrase, “then
outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not then actually
issued and outstanding which such Person would be deemed to Beneficially Own hereunder. 
 (e)    “Board of Directors” shall have the meaning set forth in the preamble to this Agreement. 
 (f)    “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which the New York Stock Exchange or banking institutions in the State of
New York are authorized or obligated by law or executive order to close. 
 (g)    “Close of Business” on any given date shall mean 5:00 P.M., New York City time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York
City time, on the next succeeding Business Day. 
 (h)    “Common Shares”
shall mean the shares of Common Stock, par value $.001 per share, of the Company, except that when the context refers to “Common Shares” of any Person other than the Company such term shall mean the capital stock (or equity interest) of
such other Person with the greatest voting power, or the equity securities or other equity interest having power to control or direct the management of such Person. 
 (i)    “Company” shall mean Kensey Nash Corporation, a Delaware corporation, until a
successor Person shall become such or until a Principal Party shall assume, and thereafter be liable for, all obligations and duties of the Company hereunder, pursuant to the applicable provisions of this Agreement, and thereafter
“Company” shall mean such successor Person or Principal Party. 
 (j)    “Distribution Date” shall have the meaning set forth in Section 3(a) hereof. 
  

 4 

 (k)    “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended. 
 (l)    “Final Expiration
Date” shall have the meaning set forth in Section 7(a) hereof. 
 (m)    “Person” shall mean any individual, trust, firm, corporation, partnership, limited liability company or other entity, and shall include any successor (by merger or otherwise) of any such entity.

 (n)    “Preferred Shares” shall mean shares of the Series A Junior
Participating Preferred Stock, par value $.001 per share, of the Company having the rights and preferences set forth in the Form of Certificate of Designations attached to this Agreement as Exhibit A. 
 (o)    “Principal Party” shall have the meaning set forth in Section 13(b)
hereof. 
 (p)    “Purchase Price” shall have the meaning set forth in
Section 4(a) hereof. 
 (q)    “Record Date” shall have the meaning
set forth in the preamble of this Agreement. 
 (r)    “Redemption Date”
shall have the meaning set forth in Section 7(a) hereof. 
 (s)    “Right” shall have the meaning set forth in the preamble of this Agreement. 
 (t)    “Rights Agent” shall mean Computershare Trust Company, N.A., a federally chartered trust company, until a successor Rights Agent shall have become such pursuant to the
applicable provisions hereof, and thereafter “Rights Agent” shall mean such successor Rights Agent. If at any time there is more than one Person appointed by the Company as Rights Agent pursuant to the applicable provisions of this
Agreement, “Rights Agent” shall mean and include each such Person. 
 (u)    “Rights Certificate” shall have the meaning set forth in Section 3(a) hereof. 
 (v)    “Section 11(a)(ii) Event” shall mean an event described in Section 11(a)(ii) hereof. 
  

 5 

 (w)    “Security” shall have the
meaning set forth in Section 11(d)(i) hereof. 
 (x)    “Shares Acquisition
Date” shall mean the first date of public announcement (which for purposes of this definition, shall include, but not be limited to, a report filed pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person
that an Acquiring Person has become such. 
 (y)    “Subsidiary” of any
Person shall mean any Person of which a majority of the voting power of the voting equity securities or a majority of the equity interests is owned, directly or indirectly, by such Person. 
 (z)    “Summary of Rights” shall have the meaning set forth in Section 3(b)
hereof. 
 (aa)    “Trading Day” shall have the meaning set forth in
Section 11(d)(i) hereof. 
 (bb)    “Triggering Event” shall mean a
Section 11(a)(ii) Event (as hereinafter defined) or an event described in Section 13(a) hereof. 
 Any determination required to be
made by the Board of Directors for purposes of applying the definitions contained in this Agreement shall be made by the Board of Directors in its good faith judgment, which determination shall be binding on the Rights Agent and the holders of the
Rights. 
 Section 2.    Appointment of Rights Agent.    The Company hereby
appoints the Rights Agent to act as rights agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable, upon ten (10) days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and in no event shall be liable for, the acts or omissions of any such co-Rights Agent. 
 Section 3.    Issuance of Rights Certificates. 
 (a)    Until the earlier of (i) the Close of Business on the tenth Business Day after the
Shares Acquisition Date or (ii) the Close of Business on the tenth Business Day (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of
the commencement by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company or any Person organized, appointed or established by the Company for, or pursuant to
the terms of, any such plan) of, or of the first public announcement of the intention of any Person (other 

  

 6 

 
than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company or any Person organized,
appointed or established by the Company for, or pursuant to the terms of, any such plan) to commence, a tender or exchange offer the consummation of which would result in any Person becoming the Beneficial Owner of Common Shares aggregating 15% or
more of the then-outstanding Common Shares, including any such date which is after the date of this Agreement and prior to the issuance of the Rights (the earlier of such dates being herein referred to as the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be certificates for
Rights) or, for Common Shares held in book-entry accounts through the direct registration service of the Company’s transfer agent, by such book-entry accounts (together with direct registration transaction advice with respect to such Common
Shares), and not by separate certificates, (y) the Rights will be transferable only in connection with the transfer of Common Shares and (z) each transfer of Common Shares (including a transfer to the Company) shall constitute a transfer
of the Rights associated with such Common Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will (i) send or cause to be sent (and the Rights
Agent will, if requested and provided with all necessary information by the Company, send) by first-class, insured, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Distribution Date, at the address of
such holder shown on the records of the Company or the transfer agent or registrar for the Common Shares, a Rights Certificate, in substantially the form of Exhibit B hereto (a “Rights Certificate”), evidencing one Right
for each Common Share so held, or (ii) credit the book-entry account of such holder with such Rights and send a direct registration transaction advice with respect to such Rights to such holder. As of and after the Distribution Date, the Rights
will be evidenced solely by such Rights Certificates or such book-entry credits and related direct registration transaction advice. In the event the Company elect to distribute any Rights by crediting book-entry accounts, the provisions in this
Agreement that reference Rights Certificates shall be interpreted to reflect that the Rights are credits to the book-entry accounts, that separate Rights Certificates are not issued with respect to some or all of the Rights, and that any legend
required on a Rights Certificate may be placed on the direct registration transaction advice with respect to such Rights. The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if such
notification is given orally, the Company shall confirm same in writing on or prior to the Business Day next following. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the
Distribution Date has not occurred. 
 (b)    On the Record Date, or as soon as
practicable thereafter, the Company will send a copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to
each record holder of Common Shares as of the Close of Business on the Record 

  

 7 

 
Date, at the address of such holder shown on the records of the Company or the transfer agent or registrar for the Common Shares. With respect to Common
Shares outstanding as of the Record Date, until the Distribution Date or the earlier surrender for transfer thereof, the Redemption Date or the Final Expiration Date, the Rights associated with (i) the Common Shares represented by certificates
shall be evidenced by such certificates for Common Shares together with the Summary of Rights and (ii) the Common Shares held in book-entry accounts shall be held in book-entry accounts and evidenced by the related transaction advice together
with the Summary of Rights, and in either case the registered holders of the Common Share shall also be the registered holders of the associated Rights. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration
Date), the transfer of any of the Common Shares outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Shares represented thereby.

 (c)    Certificates for Common Shares that become outstanding (including, but not
limited to, reacquired Common Shares referred to in the last sentence of this Section 3(c)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on,
printed on, written on or otherwise affixed to them a legend in substantially the following form: 
 This certificate also
evidences and entitles the holder hereof to certain rights as set forth in a Rights Agreement between Kensey Nash Corporation and Computershare Trust Company, N.A., as Rights Agent, dated as of June 18, 2009, as it may from time to time be
supplemented or amended (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of Kensey Nash Corporation. Under certain
circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. Kensey Nash Corporation will mail to the holder of this certificate a copy of the Rights
Agreement, without charge, after receipt of a written request therefore. As described in the Rights Agreement, Rights issued to any Person who becomes an Acquiring Person or any Associate or Affiliate thereof (as such terms are defined in the Rights
Agreement) shall become null and void. 
 Each book-entry account for such Common Shares that shall so become outstanding or
shall be transferred or exchanged after the Record Date but prior to the earlier of the Distribution Date, the Redemption Date or the Expiration Date shall also be deemed to include the associated Rights, and the direct registration transaction
advice with respect to such shall bear a legend in substantially the following form: 
  

 8 

 Each security covered by this Advice entitles the holder hereof to certain Rights as set
forth in the Rights Agreement between Kensey Nash Corporation and Computershare Trust Company, N.A., as Rights Agent, dated as of June 18, 2009, as it may be from time to time be supplemented or amended (the “Rights Agreement”), the
terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of Kensey Nash Corporation. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced
by separate certificates or be covered by separate book-entry credits and will no longer be covered by this Advice. Kensey Nash Corporation will mail to the holder of this certificate a copy of the Rights Agreement, without charge, after receipt of
a written request therefore. As described in the Rights Agreement, Rights issued to any Person who becomes an Acquiring Person or any Associate or Affiliate thereof (as such terms are defined in the Rights Agreement) shall become null and void.

 With respect to such Common Shares described in this Section 3(c), until the Distribution Date, the Rights associated
with the Common Shares represented by such certificates or held in such book-entry accounts shall be evidenced by such certificates or such book-entry accounts (together with the direct registration transaction advice with respect to such shares)
alone, and registered holders of Common Shares shall also be the registered holders of the associated Rights, and the transfer of any Common Shares, whether by transfer of physical certificates or book-entry transfer, shall also constitute the
transfer of the Rights associated with the Common Shares. 
 Section 4.    Form of Rights
Certificates. 
 (a)    The Rights Certificates, and the forms of election to purchase
and of assignment to be printed on the reverse thereof, shall be substantially the same as Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the
Company may deem appropriate (but which do not affect the rights, duties or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the terms, provisions and restrictions elsewhere herein, the Rights
Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall be set forth therein at the price per one one-thousandth of a Preferred Share set forth therein (the “Purchase
Price”), but the amount and type of securities purchasable upon the exercise of each Right and the Purchase Price shall be subject to adjustment as provided herein. 
  

 9 

 (b)    Any Rights Certificate issued pursuant to
Section 3(a) or Section 22 hereof that represents Rights Beneficially Owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a direct or indirect transferee of an Acquiring Person (or of any
such Associate or Affiliate) who becomes a transferee after the Acquiring Person became an Acquiring Person, or (iii) a direct or indirect transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior
to or concurrently with the Acquiring Person becoming an Acquiring Person and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring
Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding, whether written or oral, regarding the transferred Rights or (B) a transfer that the Board of Directors has determined in good
faith is part of a plan, arrangement or understanding, whether written or oral, which has as a primary purpose or effect avoidance of the second paragraph of Section 11(a)(ii) hereof, and any Rights Certificate issued pursuant to Section 6
or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) a legend in substantially the following form: 
 The Rights represented by this Rights Certificate are or were Beneficially Owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in the second paragraph
of Section 11(a)(ii) of the Rights Agreement. 
 The provisions of the second paragraph of Section 11(a)(ii) shall
apply whether or not any Rights Certificate actually contains the foregoing legend. 
 Section
5.    Countersignature and Registration.    The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer, any of its Vice Presidents or its Treasurer, either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant Secretary of
the Company, either manually or by facsimile signature. The Rights Certificates shall be either manually or by facsimile signature countersigned by the Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer of
the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the Person who signed such Rights Certificates had not ceased to be such officer of the Company; and any Rights Certificate may be
signed on behalf of the Company by any Person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate (as described in the first sentence of this 

  

 10 

 
Section 5), although at the date of the execution of this Rights Agreement any such Person was not such an officer. 
 Following the Distribution Date, receipt by the Rights Agent of notice to that effect and all other relevant information referred to in
Section 3(a), the Rights Agent will keep or cause to be kept, at its office designated for such purpose, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the date of each of the Rights Certificates. 
 Section 6.    Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates. 
 (a)    Subject to the provisions of Sections 4(b), 14 and 24 hereof, at any time after the Close of
Business on the Distribution Date, and at or prior to the Close of Business on the earlier of the Redemption Date or the Final Expiration Date, any Rights Certificate or Rights Certificates (other than Rights Certificates representing Rights that
have become null and void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split-up, combined or exchanged for another Rights Certificate or Rights Certificates, entitling
the registered holder to purchase a like number of one one-thousandths of a Preferred Share (or Common Shares, other securities or property, as the case may be), as the Rights Certificate or Rights Certificates surrendered then entitle such holder
to purchase. Any registered holder desiring to transfer, split-up, combine or exchange any Rights Certificate or Rights Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or
Rights Certificates to be transferred, split-up, combined or exchanged at the office of the Rights Agent designated for such purpose. The Rights Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights Agent
nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate(s) until the registered holder shall have (i) properly completed and signed the certificate contained in
the form of assignment on the reverse side of such Rights Certificate(s), (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and the Rights evidenced thereby and the Affiliates
and Associates thereof as the Company or the Rights Agent shall reasonably request and (iii) paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights
Certificates as required by Section 9(c) hereof. Thereupon, the Rights Agent shall, subject to Sections 4 and 11(a)(ii) hereof, countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may
be, as so requested, registered in such name or names as may be designated by the surrendering registered holder. The Rights Agent shall promptly forward any such sum collected by it to the Company or to such Persons as the Company shall specify by
written notice. The Rights Agent shall have no duty or obligation under any Section of this Agreement which requires the payment of 

  

 11 

 
taxes or other charges unless and until it is satisfied that all such taxes and/or charges have been paid. 
 (b)    Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of
the loss, theft, destruction or mutilation of a Rights Certificate and, in case of loss, theft or destruction, of indemnity or security satisfactory to them and, at the Company’s request, reimbursement to the Company and the Rights Agent of all
reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate, if mutilated, the Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for
countersignature and delivery to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 
 Section 7.    Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 (a)    Subject to Section 11(a)(ii) hereof, the registered holder of any valid Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein including, but not limited to, the
restrictions on exercisability set forth in Section 9(c) hereof) in whole or in part at any time after the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side
thereof properly completed and duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Purchase Price for each one one-thousandth of a Preferred Share (or Common Shares, other
securities, cash or property, as the case may be) as to which the Rights are exercised, and an amount equal to any tax or charge required to be paid under Section 9(c) hereof, by wire transfer, certified check, cashier’s check or money
order payable to the order of the Company, at or prior to the earliest of (i) the Close of Business on June 19, 2019 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in
Section 23 hereof (the “Redemption Date”), or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof. Except for those provisions herein that expressly survive the termination of this
Agreement, this Agreement shall terminate at such time as the Rights are no longer exercisable hereunder. 
 (b)    The Purchase Price for each one one-thousandth of a Preferred Share to be issued upon exercise of a Right shall initially be $200.00, shall be subject to adjustment from time to time as provided in Sections 11 and
13 hereof and shall be payable in lawful money of the United States of America in accordance with Section 7(c) below. 
 (c)    Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate on the reverse side of the Rights Certificate properly
completed and duly executed, accompanied by payment of the aggregate Purchase Price for the Preferred Shares (or Common Shares or other securities, cash or property, as the case may be) to be purchased and an amount equal to any 

  

 12 

 
applicable tax or charge required to be paid by the holder of such Rights Certificate in accordance with Section 9(c) hereof by wire transfer, certified
check, cashier’s check or money order payable to the order of the Company, or such other payment method reasonably required by the Company, subject to Section 20(h) hereof, the Rights Agent shall thereupon promptly
(i) (A) requisition from any transfer agent of the Preferred Shares (or make available if the Rights Agent is the transfer agent of the Preferred Shares) certificates for the number of one one-thousandths of a Preferred Share as are to be
purchased, and the Company hereby irrevocably authorizes each such transfer agent to comply with all such requests, or (B) requisition from the depositary agent depositary receipts as provided in Section 14(b) hereof, representing such
number of one one-thousandths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent and the Company hereby
directs each such depositary agent to comply with such request), (ii) when necessary to comply with this Rights Agreement, requisition from the Company or such other entity the amount of cash to be paid in lieu of issuance of fractional shares
in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to, or upon the order of, the registered holder of such Rights Certificate, registered in such name or
names as may be designated by such holder, and (iv) when necessary to comply with this Rights Agreement, after receipt, deliver such cash to, or upon the order of, the registered holder of such Rights Certificate. In the event that the Company
elects or is obligated to issue other securities (including Common Shares) of the Company, pay cash and/or distribute other property pursuant to Section 11(a)(iii) hereof, the Company will make all arrangements necessary so that such other
securities, cash and/or property are available for distribution by the Rights Agent, if and when necessary to comply with this Rights Agreement. 
 (d)    In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent
to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Rights Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14 hereof. 
 (e)    Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered holder of Rights or other securities upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have
(i) properly completed and duly executed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise, and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof, and of the Beneficial Owner’s (or former Beneficial Owner’s) or Affiliates’ or Associates’ interest in, or rights to, the Rights
evidenced by such Rights Certificates, as the Company or the Rights Agent shall reasonably request. 
  

 13 

 (f)    Notwithstanding any statement to the contrary
contained in this Agreement or in any Rights Certificate, if the Distribution Date or the Shares Acquisition Date shall occur prior to the Record Date, the provisions of this Agreement, including, but not limited to, Sections 3 and 11(a)(ii), shall
be applicable to the Rights upon their issuance to the same extent such provisions would have been applicable if the Record Date were the date of this Agreement. 
 Section 8.    Cancellation and Destruction of Rights Certificates.    All Rights Certificates surrendered for the purpose of exercise, transfer,
split-up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by the provisions of this Rights Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company or shall, at the written request of the Company destroy such
cancelled Rights Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 
 Section
9.    Availability of Capital Stock. 
 (a)    The Company
covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued Preferred Shares (and, following the occurrence of a Distribution Date, out of its authorized and unissued Common Shares and/or other
securities or out of its authorized and issued shares held in its treasury), the number of Preferred Shares (or Common Shares and/or other securities, as the case may be) that will be sufficient to permit the exercise in full of all outstanding
Rights as provided in this Agreement. 
 (b)    The Company covenants and agrees that it
will take all such action as may be necessary to ensure that all Preferred Shares (or Common Shares and/or other securities, as the case may be) delivered upon exercise of Rights shall be, at the time of delivery of the certificates for such
Preferred Shares (or Common Shares and/or other securities, as the case may be) (subject to any necessary payment of the Purchase Price), duly and validly authorized and issued and fully paid and nonassessable shares. 
 (c)    The Company further covenants and agrees that it will pay when due and payable any and all
taxes and charges which may be payable in respect of the issuance or delivery of the Rights Certificates or of any Preferred Shares (or Common Shares and/or other securities, as the case may be) upon the exercise of Rights. The Company shall not,
however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Rights Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares (or
Common Shares 

  

 14 

 
and/or other securities, as the case may be) in a name other than that of, the registered holder of the Rights Certificate evidencing Rights surrendered for
exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares (or Common Shares and/or other securities, as the case may be) upon the exercise of any Rights until any such tax or charge shall have been paid (any
such tax or charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s or the Rights Agent’s satisfaction that no such tax or charge is due. 
 (d)    So long as the Preferred Shares (and, following the occurrence of a Distribution Date, Common
Shares and/or other securities, as the case may be) issuable and deliverable upon the exercise of the Rights may be listed or traded on any inter-dealer quotation system or national securities exchange, the Company shall use its best efforts to
cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed on such system or exchange upon official notice of issuance upon such exercise. 
 (e)    The Company shall use its best efforts to (i) file on the appropriate form, as soon as
practicable following the earliest date after the first occurrence of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined hereunder, a registration statement under
the Securities Act of 1933, as amended (the “Act”), with respect to the securities purchasable upon exercise of the Rights, (ii) cause such registration statement to become effective as soon as practicable after such filing,
and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities,
and (B) the Final Expiration Date. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(e), the exercisability of
the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no longer in effect. The Company shall notify the Rights Agent whenever it makes a public announcement pursuant to this Section 9(e) and give the Rights Agent a copy
of such announcement. In addition, if the Company shall determine that a registration statement is required following the Distribution Date, the Company may temporarily suspend the exercisability of the Rights until such time as a registration
statement has been declared effective. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the
Rights. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite registration or qualification in such jurisdiction shall not have been obtained, the exercise thereof
shall not be permitted under applicable law (or a registration statement shall not have been declared effective). 
  

 15 

 Section 10.    Preferred Shares Record
Date.    Each Person in whose name any certificate for Preferred Shares (or Common Shares and/or other securities, as the case may be) is issued (or in whose name a book-entry account for such securities is held) upon the
exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares (or Common Shares and/or other securities, as the case may be) represented thereby on, and such certificate (or, in the case of
securities held in book-entry form, the related direct transaction registration advice) shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered (or the transfer of the book-entry account effected) and
payment of the applicable Purchase Price (and any applicable taxes or charges) was duly made (or Rights were duly surrendered in exchange for Common Shares pursuant to Section 24 hereof); provided, however, that if the date of such
surrender (or transfer in book-entry form) and payment is a date upon which the transfer books of the Company are closed, such Person shall be deemed to have become the record holder of the Preferred Shares (or Common Shares and/or other securities,
as the case may be), on, and such certificate (or, in the case of securities held in book-entry form, the related direct registration transaction advice) shall be dated, the next succeeding Business Day on which the transfer books of the Company are
open. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate (or book-entry account) shall not be entitled to any rights of a holder of Preferred Shares (or Common Shares and/or other securities, as the case may
be) for which the Rights shall be exercisable, including, but not limited to, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of
the Company, except as provided herein. 
 Section 11.    Adjustment of Purchase Price, Number and
Kind of Shares or Number of Rights.    The Purchase Price, the number and kind of shares covered by and obtainable upon exercise of each Right, and the number of Rights outstanding, are subject to adjustment from time to time
as provided in this Section 11 and Section 13 hereof. 
 (a)    (i)    In
the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine or consolidate the
outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including, but not limited to, any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination, consolidation or reclassification, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be
entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time when the transfer books of the 

  

 16 

 
Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination,
consolidation or reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise
of one Right. If an event occurs that would require adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to,
any adjustment required pursuant to Section 11(a)(ii) hereof. 
 (ii)    Subject to Section 24 hereof and to the immediately succeeding paragraph, in the event any Person shall become an Acquiring Person, each holder of a valid Right shall thereafter have a right to
receive, upon exercise thereof at a price per share equal to the then-current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement
and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by (x) multiplying the then-current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is
then exercisable, and dividing that product by (y) 50% of the then-current per share market price of the Company’s Common Shares (determined pursuant to Section 11(d) hereof) on the date of the occurrence of the event described above.
In the event that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any action that would eliminate or diminish the benefits intended to be afforded by the Rights. 
 From and after the time when a Person becomes an Acquiring Person (a “Section 11(a)(ii) Event”) any
Rights that are or were acquired or Beneficially Owned by (i) any Acquiring Person or any Associate or Affiliate of such Acquiring Person, (ii) a direct or indirect transferee of an Acquiring Person (or of any such Associate or Affiliate)
who becomes a transferee after the Acquiring Person became an Acquiring Person, or (iii) a direct or indirect transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the
Acquiring Person becoming an Acquiring Person and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with
whom such Acquiring Person has any continuing agreement, arrangement or understanding, whether written or oral, regarding the transferred Rights or (B) a transfer which the Board of Directors has determined in good faith is part of a plan,
arrangement or understanding, whether written or oral, which has as a primary purpose or effect the avoidance of this second paragraph of this Section 11(a)(ii), shall each be null and void, and any holder of such Rights shall thereafter have
no exercise or any other rights whatsoever with respect to such Rights under any provision of this 

  

 17 

 
Agreement or otherwise. No Rights Certificate shall be issued pursuant to Section 3, this Section 11(a)(ii) or Section 24 that represents
Rights Beneficially Owned by an Acquiring Person or any Associate or Affiliate thereof whose Rights would be null and void pursuant to the preceding sentence; no Rights Certificate shall be issued at any time upon the transfer of any Rights to an
Acquiring Person or any Associate or Affiliate thereof whose Rights would be null and void pursuant to the preceding sentence or to any nominee of such Acquiring Person, Associate or Affiliate; and any Rights Certificate delivered to the Rights
Agent for transfer to an Acquiring Person, Associate or Affiliate thereof whose Rights would be null and void pursuant to the preceding sentence shall be cancelled. The Rights Agent shall not be deemed to have any knowledge of the identity of any
such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, unless and until it shall have received written notice of the identity of such Person from the Company, and the Rights Agent may rely on such notice in carrying
out its duties under this Agreement. 
 (iii)    In lieu of issuing Common Shares
of the Company in accordance with Section 11(a)(ii) hereof, the Company may, in the sole discretion of the Board of Directors, elect to (and, in the event that the Board of Directors has not exercised the exchange right contained in
Section 24 hereof and there are not sufficient issued but not outstanding and authorized but unissued Common Shares to permit the exercise in full of the Rights in accordance with Section 11(a)(ii) hereof, the Company shall) take all such
action as may be necessary to authorize, issue or pay, upon the exercise of the Rights, cash (including by way of a reduction of the Purchase Price), property, other securities or any combination thereof having an aggregate value equal to the value
of the Common Shares of the Company that otherwise would have been issuable pursuant to Section 11(a)(ii), which aggregate value shall be determined by the Board of Directors. For purposes of the preceding sentence, the value of the Common
Shares shall be determined by multiplying the number of Common Shares issuable by the current per share market price of such Common Shares pursuant to Section 11(d) hereof and the value of any equity securities which the Board of Directors
determines to be a “common stock equivalent” (including the Preferred Shares, in such ratio as the Board of Directors shall determine) shall be deemed to have the same value as the Common Shares. Any such election by the Board of Directors
must be made and publicly announced within 60 days following the date on which the event described in Section 11(a)(ii) shall have occurred (with prompt written notice thereof to the Rights Agent). Following the occurrence of the event
described in Section 11(a)(ii), the Board of Directors may suspend the exercisability of the Rights for a period of up to 60 days following the date on which the event described in Section 11(a)(ii) shall have occurred to the extent that
the Board of Directors has not determined whether to exercise the Company’s right of election under this Section 11(a)(iii). In the event of any such suspension, the Company shall issue a public announcement (with prompt written notice
thereof to the 

  

 18 

 
Rights Agent) stating that the exercisability of the Rights has been temporarily suspended. 
 (b)    In case the Company shall fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares
(“equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per share, if a security convertible
into Preferred Shares or equivalent preferred shares) less than the then-current per share market price of the Preferred Shares (as defined in Section 11(d)) on such record date, the Purchase Price to be in effect after such record date shall
be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record date plus the number of Preferred Shares which
could be purchased at the current per share market price for the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or
purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose
of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall again be adjusted to be the Purchase Price
that would then be in effect if such record date had not been fixed. 
 (c)    In case the
Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares (including, but not limited to, any such distribution made in connection with a consolidation or merger in which the Company is the continuing or
surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the
Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the then-current per share market price of the
Preferred Shares on such record date, less the fair market value (as determined in good faith by the 

  

 19 

 
Board of Directors, whose determination shall be described in a statement filed with the Rights Agent) of the portion of the assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such current per share market price of the Preferred Shares; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever
such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (d)    (i)    For the purpose of any computation hereunder, the “current per share market
price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices (determined as provided in the next sentence) per share of such
Security for the thirty (30) consecutive Trading Days (as such term is hereinafter defined) immediately prior to, but not including, such date, and for the purpose of any computation under Section 11(a)(iii) hereof, the “current per
share market price” of a Security on any date shall be deemed to be the average of the daily closing prices per share of such Security for the thirty (30) consecutive Trading Days immediately following (but not including) such date;
provided, however, that in the event that the current per share market price of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such
Security payable in shares of such Security or securities convertible into such shares (other than the Rights), or (B) any subdivision, combination or reclassification of such Security and prior to the expiration of 30 Trading Days after (but
not including) the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to
reflect the current market price per share equivalent of such Security as if such dividend, distribution, combination or reclassification had not been declared. The closing price for each day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal transaction reporting system with respect to a Security listed or admitted for trading on the New York Stock
Exchange, or if such Security is not listed or admitted for trading on the New York Stock Exchange, on the principal national securities exchange on which such security is listed or admitted for trading, or, if such Security is not listed or
admitted for trading on any national securities exchange, the last quoted price (or, if not so quoted, the average of the last quoted high bid and low asked prices) in the over-the-counter market, as reported by the OTC Bulletin Board, the Pink
Sheets or such other system then in use; or, if on any such date no bids for such security are quoted by any such organization, the average of the closing bid and asked prices as furnished by a 

  

 20 

 
professional market maker making a market in such Security selected by the Board of Directors of the Company. If on such day no market maker is making a
market in such Security, the fair value of such Security on such date shall be as determined in good faith by the Board of Directors of the Company. The term “Trading Day” shall mean, with respect to a Security, a day on which the
principal national securities exchange or quotation system on which such Security is listed or admitted for trading is open for the transaction of business, or, if such Security is not listed or admitted for trading on any national securities
exchange or quotation system, a Business Day. 
 (ii)    For the purpose of any
computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i) hereof. If the Preferred Shares are not publicly traded, the
“current per share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof), multiplied by one thousand. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “current per share market
price” shall mean the fair value per share as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent. 
 (e) No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of
at least one percent (1%) in the Purchase Price; provided, however, that any adjustments that by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a Preferred Share or one one-thousandth of any other share or security, as the case may be. Notwithstanding the
first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or (ii) the date of the
expiration of the right to exercise any Rights. 
 (f) If as a result of an adjustment made pursuant to
Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so receivable upon exercise
of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), 11(b) and 11(c), and the provisions of
Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares shall apply on like terms to any such other shares. 
  

 21 

 (g)    All Rights originally issued by the Company
subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a Preferred Share purchasable from time to time hereunder upon exercise of
the Rights, all subject to further adjustment as provided herein. 
 (h)    Unless the
Company shall have exercised its election as provided in Section 11(i) hereof, upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and 11(c) hereof, each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a Preferred Share (calculated to the nearest one one-millionth of a Preferred Share) obtained by
(i) multiplying (x) the number of one one-thousandths of a share covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and
(ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
 (i)    The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in substitution for any adjustment in the number of one one-thousandths of
a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one one-thousandths of a Preferred Share for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one one-thousandth) obtained by dividing the Purchase Price in
effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt written notice thereof to the Rights Agent) of
its election to adjust the number of Rights, indicating the record date for the adjustment and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day
thereafter but, if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to
which such holders shall be entitled as a result of such adjustment or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to
the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall be issued
and executed by the Company, and countersigned and delivered by the Rights Agent, in the manner provided 

  

 22 

 
for herein and shall be registered in the names of the holders of record of Rights Certificates on the record date specified in the public announcement.

 (j)    Irrespective of any adjustment or change in the Purchase Price or the number of
one one-thousandths of a Preferred Share or other security issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-thousandths of a
Preferred Share which were expressed in the initial Rights Certificates issued hereunder, without prejudice to the validity of such Rights Certificate(s) or the application of the provisions hereof. 
 (k)    Before taking any action that would cause an adjustment reducing the Purchase Price below the
then par value, if any, of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully
paid and nonassessable Preferred Shares at such adjusted Purchase Price. 
 (l)    In any
case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent) until the
occurrence of such event the issuing to the holder of any Right exercised after such record date of the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares
and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due
bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 
 (m)    Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any consolidation or
subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for
Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b), hereafter made by the Company to holders of its Preferred Shares shall not be taxable to such
holders. 
 (n)    In the event that at any time after the date of this Agreement and
prior to the Shares Acquisition Date, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares or (ii) effect a subdivision, combination or 

  

 23 

 
consolidation of the Common Shares (by reclassification or means other than by payment of dividends) into a greater or lesser number of Common Shares, then
in any such case (x) the number of one one-thousandths of a Preferred Share purchasable after such event upon proper exercise of each Right shall be determined by multiplying the number of one one-thousandths of a Preferred Share so purchasable
immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding immediately before such event and the denominator of which is the number of Common Shares outstanding immediately after such event, and
(y) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments
provided for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. 
 Section 12.    Certificate of Adjusted Purchase Price or Number of Shares.    Whenever an adjustment is made or any event affecting the Rights or
their exercisability (including, but not limited to, an event which causes Rights to become null and void) occurs as provided in Section 11 and 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment
or describing such event, and a brief, reasonably detailed statement of the facts, computations and methodology accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares or the Preferred
Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Rights Certificate in accordance with Section 25 and Section 26 hereof. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment or statement contained therein and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or any such event unless and until it shall have received such a
certificate. 
 Section 13.    Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or
Earning Power. 
 (a)    If, after the Shares Acquisition Date, directly or
indirectly, (w) the Company shall consolidate with, or merge with and into, any other Person, (x) any Person shall consolidate with the Company, or merge with and into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger or consolidation all or part of the outstanding Common Shares are changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other
property, (y) the Company shall sell, mortgage or otherwise transfer (or one or more of its Subsidiaries shall sell, mortgage or otherwise transfer), in one or more transactions, assets, cash flow or earning power aggregating 50% or more of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any Person other than the Company or one or more of its wholly-owned Subsidiaries, or (z) any Acquiring Person or any Associate or Affiliate of any
such Acquiring Person, at any time after the date of this Agreement, directly or 

  

 24 

 
indirectly, (A) shall, in one transaction or a series of transactions, transfer any assets to the Company or to any of its Subsidiaries in exchange (in
whole or in part) for Common Shares, for shares of other equity securities of the Company or for securities exercisable for or convertible into shares of equity securities of the Company (Common Shares or otherwise) or otherwise obtain from the
Company, with or without consideration, any additional shares of such equity securities or securities exercisable for or convertible into shares of such equity securities (other than pursuant to a pro rata distribution to all holders of Common
Shares), (B) shall sell, purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire or dispose of assets, in one transaction or a series of transactions, to, from or with the Company or any of its Subsidiaries without obtaining
a written opinion from a nationally recognized investment banking firm that the terms of such transaction or arrangement are no less favorable to the Company than the Company would be able to obtain in arm’s-length negotiation with an
unaffiliated third party, (C) shall sell, purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire or dispose of in one transaction or a series of transactions, to, from or with the Company or any of the Company’s
Subsidiaries (other than incidental to the lines of business, if any, engaged in as of the date hereof between the Company and such Acquiring Person or Associate or Affiliate) assets having an aggregate fair market value of more than $5,000,000,
(D) shall receive any compensation from the Company or any of the Company’s Subsidiaries other than compensation for full-time employment as a regular employee at rates in accordance with the Company’s (or its Subsidiaries’) past
practices, or (E) shall receive the benefit, directly or indirectly (except proportionately as a stockholder and except if resulting from a requirement of law or governmental regulation), of any loans, advances, guarantees, pledges or other
financial assistance or any tax credits or other tax advantage provided by the Company or any of its Subsidiaries, then, and in each such case, (i) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to
receive, upon the exercise thereof at a price per share equal to the then-current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable in accordance with the terms of this
Agreement, and in lieu of Preferred Shares, such number of validly authorized and issued, fully paid, non-assessable and freely tradeable Common Shares of the Principal Party not subject to any liens, encumbrances, rights of first refusal or other
adverse claims, as shall equal the result obtained by (A) multiplying the then-current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of
the then-current per share market price of the Common Shares of the Principal Party (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer; (ii) such Principal Party shall
thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall thereafter be
deemed to refer to such Principal Party; and (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with Section 9 hereof) in connection
with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as 

  

 25 

 
nearly as reasonably may be, in relation to the Common Shares thereafter deliverable upon the exercise of the Rights. 
 (b)    “Principal Party” shall mean: 
 (i)    In the case of any transaction described in (w) or (x) of the first sentence
of Section 13(a) hereof, the Person that is the issuer of any securities into which Common Shares of the Company are converted in such merger or consolidation, and if no securities are so issued, the Person that is the surviving entity of such
merger or consolidation (including the Company if applicable); and 
 (ii)    in
the case of any transaction described in (y) or (z) of the first sentence in Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets, securities, cash flow, earning power or other benefit
transferred pursuant to such transaction or transactions; 
 provided, however, that in any such case described
in clauses (b)(i) and (b)(ii): (1) if the Common Shares of such Person are not at such time and have not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act and such Person is a direct or
indirect Subsidiary of another Person the Common Shares of which are and have been so registered, “Principal Party” shall refer to such other Person; (2) in case such Person is a Subsidiary, directly or indirectly, of more than one
Person, the Common Shares of two or more of which are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Shares having the greatest aggregate market value; and (3) in
case such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in (1) and (2) above shall apply to each of the chains
of ownership having an interest in such joint venture as if such party were a “Subsidiary” of both or all of such joint venturers and the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in
the same ratio as their direct or indirect interests in such Person bear to the total of such interests. 
 (c)    The Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have sufficient Common Shares authorized to permit the full exercise of the Rights and prior
thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in Sections 13(a) and 13(b) hereof and further providing that, as soon as practicable after
the date of any consolidation, merger, sale or transfer mentioned in Section 13(a) hereof, the Principal Party will: 
 (i)    prepare and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an 

  

 26 

 
appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing
and (B) remain effective (with a prospectus at all times meeting the requirements of the Act) until the Final Expiration Date; 
 (ii)    deliver to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which comply in all respects with the requirements for
registration on Form 10 under the Exchange Act; and 
 (iii)    take such actions
as may be necessary or appropriate under the blue sky laws of the various states. 
 The Company shall not
enter into any transaction of the kind referred to in this Section 13 if at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the
consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers, consolidations, sales, dispositions
or other transfers. 
 Section 14.    Fractional Rights and Fractional Shares. 
 (a)    The Company shall not be required to issue fractions of Rights or to distribute Rights
Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash
equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the
date on which such fractional Rights would have been otherwise issuable. The closing price shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal transaction reporting system if the Rights are listed or admitted for trading on the New York Stock Exchange, or if such Rights are not listed or admitted for trading on the New York Stock Exchange, on the
principal national securities exchange on which such Rights are listed or admitted for trading, or, if such Rights are not listed or admitted for trading on any national securities exchange, the last quoted price (or, if not so quoted, the average
of the last quoted high bid and low asked prices) in the over-the-counter market, as reported by the OTC Bulletin Board, the Pink Sheets or such other system then in use; or, if on any such date no bids for such security are quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such security selected by the Board of Directors of the Company. If on such day no market maker is making a market in such
Rights, the fair value of such Rights on such date shall be as determined in good faith by the Board of Directors of the Company. 
  

 27 

 (b)    The Company shall not be required to issue
fractions of Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions
which are integral multiples of one one-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the Company shall pay to the
registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share. For the purposes of this Section 14(b), the
current market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise. 

(c)    Following the occurrence of a Distribution Date, the Company shall not be required to issue
fractions of Common Shares upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares. In lieu of fractional Common Shares, the Company may pay to the registered holders of Rights Certificates at the time such
Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Common Share. For purposes of this Section 14(c), the current market value of one Common Share shall be the closing price of
one Common Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise. 
 (d)    The holder of a Right by the acceptance of the Right expressly waives such holder’s right
to receive any fractional Rights or any fractional shares upon exercise of a Right (except as provided above). 
 (e)    Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in
reasonable detail the facts related to such payments and the prices and/or formulas utilized in calculating such payments, and (ii) provide sufficient moneys to the Rights Agent in the form of fully collected funds to make such payments. The
Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares under any Section of this Agreement
relating to the payment of fractional Rights or fractional shares unless and until the Rights Agent shall have received such a certificate and sufficient moneys. 
  

 28 

 Section 15.    Rights of Action.    All
rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 and Section 20 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to the
Distribution Date, the registered holders of the Common Shares); and any registered holder of any Rights Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the Common Shares), may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company
to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and
injunctive relief against (in either case, without the posting of bond or other security or proving actual damages), actual or threatened violations of the obligations of any Person subject to, this Agreement. 
 Section 16.    Agreement of Rights Holders.    Every holder of a Right, by accepting the
same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
 (a)    prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares; 
 (b)    after the Distribution Date, the Rights Certificates will be transferable only on the registry books of the Rights Agent if surrendered at the office of the Rights
Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer and with appropriate forms and certificates fully executed; 
 (c)    the Company and the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Distribution Date, the associated certificate or
book-entry credit for Common Shares) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the associated certificate or book-entry credit
for Common Shares made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and 
 (d)    notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights
Agent shall have any liability to any holder of a Right or any other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling
(whether interlocutory or final) issued by a court or by a governmental, 

  

 29 

 
regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority prohibiting or otherwise restraining performance of such obligation. 
 Section
17.    Rights Certificate Holder Not Deemed a Stockholder.    No holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the
Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of
any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such
Rights Certificate shall have been exercised in accordance with the provisions hereof. 
 Section
18.    Concerning the Rights Agent.    The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights
Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also
agrees to indemnify the Rights Agent and its Affiliates and each of their directors, officers, employees and agents (collectively, the “Indemnified Parties”) for, and to hold them harmless against, any damage, loss, liability, judgment,
fine, penalty, claim, demand, settlement, cost or expense (including, but not limited to, the reasonable fees and expenses of legal counsel), incurred without gross negligence, bad faith or willful misconduct on the part of the Indemnified Parties,
for any action taken, suffered or omitted by the Indemnified Parties in connection with the acceptance, administration, exercise and performance of its duties under this Agreement, including the costs and expenses of defending against any claim or
demand of liability arising, directly or indirectly, therefrom. To the extent that the Rights Agent is successful in an action to enforce its rights of indemnification, the costs and expenses incurred in enforcing this right of indemnification shall
be paid by the Company. The provisions of this Section 18 and Section 20 below shall survive the termination of this Agreement, the exercise or expiration of the Rights and the resignation, replacement, removal or substitution of the
Rights Agent. In no case shall the Indemnified Parties be liable for special, punitive, indirect, incidental or consequential loss or damage of any kind whatsoever (including, but not limited to, lost profits), even if the Indemnified Parties have
been advised of the likelihood of such loss or damage. 
 The Rights Agent shall be authorized and protected and shall incur
no liability for, or in respect of any action taken, suffered or omitted by it in connection with, its acceptance and administration of this Agreement, and the exercise and performance of its duties hereunder, in reliance upon any Rights Certificate
or certificate for the Preferred Shares or Common Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other
paper or 

  

 30 

 
document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or
otherwise upon the advice of counsel as set forth in Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully
protected and shall incur no liability for failing to take any action in connection therewith, unless and until it has received such notice. 
 Section 19.    Merger or Consolidation or Change of Name of Rights Agent.    Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the shareholder services business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for
appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement any of the Rights Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not
have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have
the full force provided in the Rights Certificates and in this Agreement. 
 In case at any time the name of the Rights Agent
shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at
that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full
force provided in the Rights Certificates and in this Agreement. 
 Section 20.    Rights and Duties
of Rights Agent.    The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Agreement (and no implied duties) upon the following terms and conditions, by all of which the Company and
the holders of Rights Certificates, by their acceptance thereof, shall be bound: 
 (a)    The Rights Agent may consult with legal counsel of its own choice (which may be legal counsel for the Company or in-house counsel of the Rights Agent), and the advice or opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it in accordance with such advice or opinion. 
  

 31 

 (b)    Whenever in the performance of its duties
under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, but not limited to, the identity of an Acquiring Person and the determination of the current per share market price of any security) be
proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Treasurer, the Secretary or the Assistant Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full and complete authorization and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it under the
provisions of this Agreement in reliance upon such certificate. 
 (c)    The Rights Agent
shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct. Anything to the contrary notwithstanding, in no event shall the Rights Agent be liable for special, indirect, punitive,
consequential or incidental loss or damage of any kind whatsoever (including, but not limited to, lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this
Agreement will be limited to the amount of annual fees paid by the Company to the Rights Agent. 
 (d)    The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates (except its countersignature thereof) or be required to
verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 
 (e)    The Rights Agent shall not have any liability for, or be under any responsibility in respect of, the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights
Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights
Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming null and void pursuant to Section 11(a)(ii) hereof) or any change or adjustment in the terms of the Rights (including the
manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24 hereof, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by
Rights Certificates after receipt of the certificate described in Section 12 hereof, upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any Preferred Shares (or Common Shares and/or other securities, as the case may be) to be issued pursuant to this Agreement or any Rights Certificate or as to whether any Preferred Shares (or 

  

 32 

 
Common Shares and/or other securities, as the case may be) will, when issued, be validly authorized and issued, fully paid and nonassessable. 
 (f)    The Company agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 (g)    The Rights Agent is hereby authorized and directed to accept, prior to the
Shares Acquisition Date, instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Treasurer, the
Secretary or the Assistant Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such instructions shall be full authorization and protection to the Rights Agent, and the Rights Agent
shall not be liable for or in respect of any action taken, suffered or omitted by it in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. The Rights Agent shall be fully authorized and
protected in relying upon the most recent instructions received by any such officer. Any application of the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be
taken, suffered or omitted by the Rights Agent under this Agreement and the date on and/or after which such action shall be taken or suffered or such omission shall be effective. The Rights Agent shall not be liable for any action taken or suffered
by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less than five Business Days after the date any officer of the Company
actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken, suffered or omitted. 
 (h)    If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the form of assignment or the form of election to purchase set forth on the reverse
thereof, as the case may be, has either not been completed or indicates an affirmative response to clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting
with the Company. 
 (i)    The Rights Agent and any stockholder, affiliate, director,
officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company, or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the
Company or 

  

 33 

 
otherwise act as fully and freely as though the Rights Agent were not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent
or any such stockholder, affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person. 
 (j)    The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself (through its directors, officers
and employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person
resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the selection and continued employment thereof. 
 (k)    No provision of this Agreement shall require the Rights Agent to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably
assured to it. 
 Section 21.    Change of Rights Agent.    The Rights Agent
or any successor Rights Agent may resign and thereafter be discharged from its duties under this Agreement upon thirty (30) days’ prior notice in writing mailed to the Company and to each transfer agent for the Common Shares or Preferred
Shares known to the Rights Agent by registered or certified mail, in the event that the Rights Agent is not also the transfer agent as of the date notice of resignation is provided. In the event the transfer agency relationship in effect between the
Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for
sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ prior notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent for the Common Shares or Preferred Shares by registered or certified mail, and following the Distribution Date, to the holders of Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit such holder’s Rights Certificate for inspection by the Company),
then the registered holder of any Rights Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be either
(A) a Person organized and doing business under the laws of the United States or of any state of the United States, in good standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to
supervision or examination by federal or state authority and which has, at the time of its appointment as Rights Agent, a 
  

 34 

 
combined capital and surplus of at least $50 million or (B) an Affiliate of a Person described in clause (A). After appointment, the successor Rights
Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as the Rights Agent, without further act or deed, but the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice thereof in
writing with the predecessor Rights Agent and each transfer agent for the Common Shares or Preferred Shares, and mail a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22.    Issuance of New Rights Certificates.    Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect any adjustment or change in the
Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. 
 Section 23.    Redemption. 
 (a)    The Rights may be redeemed by action of the Board of Directors pursuant to Section 23
(b) hereof and shall not be redeemed in any other manner. 
 (b)    The Board of
Directors may, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all, but not less than all, of the then-outstanding Rights at a redemption price of $.001 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the Board of Directors may be made
effective at such time on such basis and with such conditions as the Board of Directors in its sole discretion may establish. If redemption of the Rights is to be effective as of a future date, the Rights shall continue to be exercisable, subject to
Section 11(a)(ii) hereof, until the effective date of the redemption, provided that nothing contained herein shall preclude the Board of Directors from subsequently causing the Rights to be redeemed at a date earlier than the previously
scheduled effective date of the redemption. The Company may, at its option, pay the Redemption Price in cash, Common Shares (based on the current per share market price of a whole Common Share (as determined pursuant to Section 11(d)(i) hereof)
at the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors. 
  

 35 

 (c) Immediately upon the action of the Board of Directors ordering the
redemption of the Rights pursuant to Section 23(b) hereof (or at the effective time of such redemption established by the Board of Directors pursuant to Section 23(b) hereof), and without any further action and without any notice, the
right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption (with prompt written notice thereof to
the Rights Agent); provided, however, that the failure to give, or any defect in, any such notice shall not affect the legality or validity of such redemption. Within ten (10) days after such action of the Board of Directors ordering the
redemption of the Rights pursuant to Section 23(b) hereof or if later, the effectiveness of the redemption of the rights pursuant to the second to last sentence of Section 23(b), the Company shall mail a notice of redemption to all the
holders of the then-outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. The Company may, at its
option, discharge all of its obligations with respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights (with prompt written notice thereof to the Rights Agent), (ii) depositing with a bank or
trust company having a capital and surplus of at least $100 million, funds necessary for such redemption, in trust, to be applied to the redemption of the Rights so called for redemption and (iii) arranging for the mailing of the Redemption
Price to the registered holders of the Rights; then, and upon such action, all outstanding Rights Certificates shall be null and void without further action by the Company. 
 Section 24.    Exchange. 
 (a)    The Board of Directors may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then-outstanding and exercisable Rights (which shall not include Rights that have
become null and void pursuant to the provisions of Section 11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof. Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect any such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan
of the Company or any such Subsidiary, or any Person holding Common Shares for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares
then outstanding. 
 (b)    Immediately upon the action of the Board of Directors ordering
the exchange of any Rights pursuant to Section 24(a) hereof and without any further action 

  

 36 

 
and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that
number of Common Shares equal to the number of valid Rights held by such holder. The Company shall promptly give public notice of any such exchange (with prompt written notice thereof to the Rights Agent); provided, however, that the failure
to give, or any defect in, such notice shall not affect the legality or validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice that is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common
Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and
void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights. 
 (c)    In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares (or equivalent preferred shares, as such term is defined in Section 11(b) hereof) for Common
Shares exchangeable for Rights, at the initial rate of one one-thousandth of a Preferred Share (or equivalent preferred share) for each Common Share, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares
pursuant to the terms thereof, so that the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same voting rights as the Common Share for which the fraction of Preferred Share is being substituted. 
 (d)    In the event that there shall not be sufficient Common Shares or Preferred Shares issued but
not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Shares or Preferred Shares
for issuance upon exchange of the Rights. 
 (e)    The Company shall not be required to
issue fractions of Common Shares or to distribute certificates that evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of the Rights Certificates with regard to which such
fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Common Share. For the purposes of this Section 24(e), the current market value of a whole Common Share
shall be the closing price of a Common Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24. 
 Section 25.    Notice of Certain Events. 
  

 37 

 (a)    In case the Company shall propose (i) to
pay any dividend payable in stock of any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of Preferred
Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of Preferred Shares (other than a
reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale
or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation, dissolution or winding up of the Company,
or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Company shall give to the Rights Agent and each holder of a Rights Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for such event and the date
of participation therein by the holders of the Common Shares and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least ten
(10) days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least ten (10) days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of the Common Shares and/or Preferred Shares, whichever shall be the earlier. 
 (b)    In case a Section 11(a)(ii) Event shall occur, then the Company shall as soon as practicable thereafter give to the Rights Agent and each holder of a Rights Certificate, in accordance
with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof. 
 Section 26.    Notices.    Notices or demands authorized by this Agreement to be given or
made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if (i) personally delivered, (ii) sent, by a reputable overnight courier service, or (iii) sent, by
first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 
 Kensey Nash Corporation 
 735 Pennsylvania Drive 
 Exton, PA 19341 
 Attention: Corporate Secretary 
  

 38 

 with copy (which shall not constitute notice) to: 
 Kensey Nash Corporation 
 735 Pennsylvania Drive 
 Exton, PA 19341 
 Attention: Chief Financial Officer 
 And an additional copy (which shall not constitute notice) to: 
 Katten Muchin Rosenman LLP

 525 West Monroe Street 
 Chicago, Illinois 60661 
 Attention: Mark D. Wood, Esq. 
 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the
holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if (i) personally delivered, (ii) sent, by a reputable overnight courier service, or (iii) sent, by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as follows: 
 Computershare Trust Company, N.A.

 350 Indiana Street 
 Suite 800 
 Golden , CO 80401 
 Attn: Client Services 
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to
such holder at the address of such holder as shown on the registry books of the Company. 
 Section
27.    Supplements and Amendments.    At any time when the Rights are then redeemable, the Company may, in its sole and absolute discretion, and the Rights Agent shall, subject to the provisions of this
Section 27 and provided that such supplement or amendment does not affect the rights, duties, obligations or immunities of the Rights Agent, if the Company so directs, supplement or amend any provision of this Agreement in any respect without
the approval of any holders of Rights or holders of Common Shares. At any time when the Rights are not redeemable, the Company may, in its sole and absolute discretion, and the Rights Agent shall, subject to the provisions of this Section 27
and provided that such supplement or amendment does not affect the rights, duties, obligations or immunities of the Rights Agent, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights or holders
of Common Shares in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, (iii) to shorten or lengthen any time period
hereunder or (iv) to change or 
  

 39 

 
supplement the provisions hereunder in any manner that the Company may deem necessary or desirable; provided that no such amendment or supplement shall
materially adversely affect the interests of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); and further provided that this Agreement may not be supplemented or amended pursuant to this
sentence to lengthen (A) a time period relating to when the Rights may be redeemed or (B) any other time period unless the lengthening of such other time period is for the purpose of protecting, enhancing or clarifying the rights of,
and/or the benefits to, the holders of Rights (other than any Acquiring Person and its Affiliates and Associates ). Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment
is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment; provided, however, that the Rights Agent may, but shall not be obligated to, enter into any such supplement or amendment that
affects the Rights Agent’s own rights, duties, obligations or immunities under this Agreement. 
 Section
28.    Determination and Actions by the Board of Directors.    The Board of Directors shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board of Directors, or the Company, or as may be necessary or advisable in the administration of this Agreement, including, but not limited to, the right and power to (i) interpret the provisions of this Agreement,
and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including, but not limited to, a determination to redeem or not redeem the Rights or to amend the Agreement and as to whether any proposed
amendment adversely affects the interests of the holders of Rights Certificates). For all purposes of this Agreement, any calculation of the number of Common Shares or other securities outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding Common Shares or any other securities of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act as in effect on the date of this Agreement. All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which
are done or made by the Board of Directors in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights Certificates and all other Persons unless the Board of Directors specifically
states that such action, calculations, interpretation or determination is not final, conclusive and binding, and (y) not subject the Board of Directors to any liability to the holders of the Rights Certificates. The Rights Agent is entitled
always to assume the Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon. 
 Section 29.    Successors.    All the covenants and provisions of this Agreement by, or for the benefit of, the Company or the Rights Agent shall bind and inure to the
benefit of their respective successors and assigns hereunder. 
 Section 30.    Benefits of this
Agreement.    Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of valid Rights Certificates (and, prior to the Distribution Date, the
Common Shares) any legal or 
  

 40 

 
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and
the registered holders of valid Rights Certificates (and, prior to the Distribution Date, the Common Shares). 
 Section
31.    Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, null and void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; and provided further, that if any such excluded term, provision, covenant or restriction
shall adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign immediately. 
 Section 32.    Governing Law.    This Agreement and each Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware
and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State. 
 Section 33.    Counterparts.    This Agreement may be executed in any number of counterparts, and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. This Agreement, to the extent signed and delivered by means of a facsimile machine or other electronic transmission (including
transmission in portable document format by electronic mail), shall be treated in all manner and respects and for all purposes as an original agreement and shall be considered to have the same binding legal effect as if it were the original signed
version thereof delivered in person. At the request of either party hereto, the other party hereto shall re-execute original forms thereof and deliver them to the other party, except that the failure of one party to comply with such a request shall
not render this Agreement invalid or unenforceable. Neither party hereto shall raise the use of a facsimile machine or other electronic transmission to deliver a signature, or the fact that any signature was transmitted or communicated through the
use of a facsimile machine or other electronic transmission, as a defense to the formation or enforceability of a contract, and each such party forever waives any such defense. 
 Section 34.    Descriptive Headings.    Descriptive headings of the several Sections of this Agreement are inserted for convenience of reference
only and shall not control or affect the meaning or construction of any of the provisions hereof. 
 Section
35.    Force Majeure.    Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its
reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, loss of data due to power failures or mechanical difficulties with
information storage or retrieval systems, labor difficulties, war or civil unrest. 
  

 41 

 [Remainder of page intentionally left blank. 
 Signature page follows.] 
  

 42 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed,
all as of the day and year first above written. 
  

			
	KENSEY NASH CORPORATION
		
	By:	 	/s/ Joseph W. Kaufmann
	 Name:  Joseph W. Kaufmann
 Title:    President and Chief Executive Officer

  

			
	 COMPUTERSHARE TRUST COMPANY, N.A.,
 as Rights Agent

		
	By:	 	/s/ Kellie Gwinn

			
	 Name:  Kellie Gwinn

			
	Title:    Vice President

 Exhibit A 
 FORM 
 Of 
 CERTIFICATE OF DESIGNATIONS 
 Of 
 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK 
 Of 
 KENSEY NASH CORPORATION 
 (Pursuant to
Section 151 of the 
 General Corporation Law of the State of Delaware) 
  
  
 KENSEY NASH CORPORATION, a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter
called the “Company”), hereby certifies that the following resolution was adopted by the Board of Directors of the Company as required by Section 151 of the General Corporation Law of the State of Delaware at a meeting duly
called and held on June 17, 2009: 
 RESOLVED, that pursuant to the authority granted to and vested in the Board of
Directors of this Company (hereinafter called the “Board of Directors” or the “Board”) in accordance with the provisions of the Company’s Amended and Restated Certificate of Incorporation, the Board of
Directors hereby creates a series of Preferred Stock, par value $0.001 per share (the “Preferred Stock”), of the Company and hereby states the designation and number of shares, and fixes the relative rights, preferences and
limitations thereof as follows: 
 Series A Junior Participating Preferred Stock 
 Section 1.    Designation and Amount.    The shares of such series shall be designated as
“Series A Junior Participating Preferred Stock” (the “Junior Preferred Stock”) and the number of shares constituting the Junior Preferred Stock shall initially be 25,000. Such number of shares may be increased or decreased
by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Junior Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the
exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities or rights issued by the Company convertible into shares of Junior Preferred Stock and, further, provided, that the Board of Directors shall
increase the number of shares constituting the 

  

 A-1 

 
Junior Preferred Stock to the extent necessary for the Company to have available sufficient shares of such Junior Preferred Stock available to fulfill all of
the Company’s obligations to holders of securities (including option, rights and warrants) of the Company. 
 Section
2.    Dividends and Distributions. 
 (A)    Subject to the rights of the
holders of any shares of any series of Preferred Stock (or any similar stock) ranking prior and superior to the Junior Preferred Stock with respect to dividends, the holders of shares of Junior Preferred Stock, in preference to the holders of Common
Stock, par value $0.001 per share (the “Common Stock”), of the Company, and of any other junior stock shall be entitled to receive, when, as and if declared by the Board of Directors out of the funds legally available for the
purpose, dividends payable when and as dividends are declared on the Common Stock in an amount, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times
the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, declared on the Common Stock (except as provided in the next sentence). In the event the Company shall at any time declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or other means other than by payment of a dividend in shares of Common Stock) into
a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Junior Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event. 
 (B)    The Company shall declare a dividend or distribution on the Junior Preferred Stock as
provided in paragraph (A) of this Section 2 immediately after it declares a dividend or distribution on the Common Stock. 
 Section 3.    Voting Rights.    The holders of shares of Junior Preferred Stock shall have the following voting rights: 
 (A)    Each share of Junior Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Company. 

(B)    Except as otherwise provided herein, in the Amended and Restated Certificate of Incorporation of the
Company, in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Junior Preferred Stock and the holders of shares of Common Stock and any other capital stock of the
Company having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Company. 
 (C)    Except as set forth herein, or as otherwise provided by law, holders of Junior Preferred Stock shall have no special voting rights and their consent shall not be required (except to the
extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 
  

 A-2 

 Section 4.    Reacquired Shares.    Any
shares of Junior Preferred Stock purchased or otherwise acquired by the Company in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Company’s Amended and Restated Certificate of Incorporation, or in
any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law. 
 Section 5.    Liquidation, Dissolution or Winding Up.    Upon any liquidation, dissolution or winding up of the Company, no distribution shall be made (i) to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Junior Preferred Stock unless, prior thereto, the holders of shares of Junior Preferred Stock shall have received an aggregate amount per share, subject to
the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock and (ii) to the holders of stock ranking on a parity upon liquidation, dissolution or
winding up with the Junior Preferred Stock, unless simultaneously therewith distributions are made ratably on the Junior Preferred Stock and all other shares of such parity stock in proportion to the total amounts to which the holders of shares of
Junior Preferred Stock are entitled under clause (i) of this sentence and to which the holders of such parity shares are entitled, in each case upon such liquidation, dissolution or winding up. In the event the Company shall at any time declare
or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Junior Preferred Stock were entitled immediately prior to such event under clause (i) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common
Stock that were outstanding immediately prior to such event. 
 Section 6.    Consolidation, Merger,
etc.    In case the Company shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for, or changed into, other stock or securities, cash and/or any other
property, then in any such case each share of Junior Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Company shall at any time declare or pay any dividend on
the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Junior Preferred Stock shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the 

  

 A-3 

 
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 Section 7.    No Redemption.    The shares of Junior Preferred Stock shall not be
redeemable. 
 Section 8.    Rank.    The Junior Preferred Stock shall rank,
with respect to the payment of dividends and the distribution of assets, junior to all series of any other class of the Company’s Preferred Stock (other than any series of any class which is expressly made junior to the Junior Preferred Stock).

 Section 9.    Amendment.    The Amended and Restated Certificate of
Incorporation of the Company shall not be amended in any manner that would materially alter or change the powers, preferences or special rights of the Junior Preferred Stock so as to affect them adversely without the affirmative vote of the holders
of at least two-thirds of the outstanding shares of Junior Preferred Stock, voting together as a single class. 
 IN WITNESS
WHEREOF, this Certificate of Designations is executed on behalf of the Company by its President as of June 18, 2009. 
  

			
	Kensey Nash Corporation
		
	By:	 	 
	 Name:  Joseph W. Kaufmann
 Title:    President

  

 A-4 

 Exhibit B 
  

			
	Form of Rights Certificate
		
	Certificate No.         	 	         Rights

 NOT EXERCISABLE AFTER JUNE 19, 2019 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND ARE VOIDABLE AND SUBJECT TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS
OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE
CIRCUMSTANCES SPECIFIED IN THE SECOND PARAGRAPH OF SECTION 11(a)(ii) OF THE RIGHTS AGREEMENT.]* 
 Rights Certificate 
 Kensey Nash Corporation 
 This certifies that                     , or registered assigns, is the registered owner of the number of Rights set forth above,
each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of June 18, 2009 (as it may from time to time be supplemented or amended, the “Rights Agreement”)
between Kensey Nash Corporation, a Delaware corporation (the “Company”), and Computershare Trust Company, N.A. (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to 5:00 p.m., Central time on June 19, 2019 at the office of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid
nonassessable share of Series A Junior Participating Preferred Stock, par value $.001 per share (the “Preferred Shares”), of the Company, at a purchase price of $200.00 per one one-thousandth of a Preferred Share (the
“Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and the Certificate set forth on the reverse side hereof duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of
                    , 2009, 
  
  

	*
	 The portion of the legend in brackets shall be inserted only if applicable and shall replace the preceding sentence. 

  

 B-1 

 
based on the Preferred Shares as constituted at such date. As provided in the Rights Agreement, the Purchase Price and the number of one one-thousandths of a
Preferred Share that may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the happening of certain events. 
 This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and
conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the office of the Rights Agent designated for such purpose. 
 This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Rights Certificate
or Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates
for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate (i) may be redeemed by the Company at a redemption price of $.001 per Right or (ii) may be exchanged in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value $.001 per share, on the
terms set forth in the Rights Agreement. 
 No fractional Preferred Shares will be issued upon the exercise of any Right or
Rights evidenced hereby (other than fractions that are integral multiples of one one-thousandths of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made,
as provided in the Rights Agreement. 
 No holder of this Rights Certificate shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer
upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this Rights
Certificate shall have been exercised as provided in the Rights Agreement. 
 This Rights Certificate shall not be valid or
obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
  

 B-2 

 WITNESS the facsimile signature of the proper officer of the Company. Dated as of
                    . 
  

			
	[Seal]	 	KENSEY NASH CORPORATION
		
		 	 By:                                       
                                         
                                         
 

  

	
	Countersigned:
	
	 COMPUTERSHARE TRUST
 COMPANY,
N.A.
 as Rights Agent

	
	By:                                       
                                         
         
	Authorized Signature

  

 B-3 

 [Form of Reverse Side of Rights Certificate] 
 FORM OF ASSIGNMENT 
 (To be executed by the
registered holder if such 
 holder desires to transfer the Rights Certificate.) 
 FOR VALUE RECEIVED,
                     hereby sells, assigns and transfers unto
                                         
                                   
                                         
                                         
                                         
                                         
                                         
            
 (Please print name and address of transferee) 
  
  
 (Please print social security or other identifying number of transferee) 
 this Rights
Certificate, together with all interest therein, and does hereby irrevocably constitute and appoint                      Attorney, to transfer
the within Rights Certificate on the books of the within-named Company, with full power of substitution. 
 Dated:
                                        

                                        
                                         
                                         
                       
 Signature 
 Signature Guaranteed:                                   
                                         
                                         
                                         
                                         
                
 Signature must be medallion
guaranteed by an Eligible Guarantor Institution as defined by SEC Rule 17Ad-15 (17 C.F.R. 240.17-Ad-15). 
  

 B-4 

 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) this Rights Certificate  ̈ is  ̈ is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); and 
 (2)
after due inquiry and to the best knowledge of the undersigned, it  ̈ did  ̈ did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of any such Person. 
 Dated:
                                        

                                        
                                         
                                         
                       
 Signature 
  
 Signature Guaranteed:                                   
                                         
                                         
                                         
                                         
                
 NOTICE 
 The signatures to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Rights
Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 The signature must be
medallion guaranteed by an Eligible Guarantor Institution as defined by SEC Rule 17Ad-15 (17 C.F.R. 240.17-Ad-15). 
  

 B-5 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to 
 exercise the Rights Certificate.) 
  

	To:	 Kensey Nash Corporation 

 The undersigned hereby irrevocably elects to exercise                      Rights represented by this Rights Certificate to purchase
the Preferred Shares issuable upon the exercise of such Rights (or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and requests that certificates for such Preferred Shares (or other
securities) be issued in the name of: 
  
  
  
  
  
 (Please print name and address) 
  

					
		 	  
	 	
		 	  (Please insert social security or other identifying number)  	 	

 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new
Rights Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to: 
  
  
  
  
  
 (Please print name and address) 
  

					
		 	  
	 	
		 	  (Please insert social security or other identifying number)  	 	

 Dated:                                      
     
  

	
	
	  
	Signature

 Signature Guaranteed:                                   
                                         
                                         
                                         
                     
 Signatures must be medallion guaranteed by an Eligible Guarantor Institution as defined by SEC Rule 17Ad-15 (17 C.F.R. 240.17-Ad-15). 
  

 B-6 

 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1)    the Rights evidenced by this Rights Certificate  ̈ are  ̈ are not being exercised by or on behalf of a Person who is or
was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); and 
 (2)    after due inquiry and to the best knowledge of the undersigned, it  ̈ did  ̈ did not acquire the Rights evidenced by this
Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of any such Person. 
 Dated:                                      
     
  

	
	
	  
	Signature

 Signature Guaranteed:                                   
                                         
                                         
                                         
                     
 NOTICE 

 The signatures to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face
of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 The signature
must be medallion guaranteed by an Eligible Guarantor Institution as defined by SEC Rule 17Ad-15 (17 C.F.R. 240.17-Ad-15). 
  

 B-7 

 NOTICE 
 In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will deem the
beneficial owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or Election to Purchase will not be honored. 
  

 B-8 

 Exhibit C 
 SUMMARY OF RIGHTS TO PURCHASE 
 PREFERRED SHARES UNDER PLAN ADOPTED BY 
 KENSEY NASH CORPORATION 
 Under certain
circumstances set forth in the Rights Agreement, Rights beneficially owned by or transferred to any Person who is, was or becomes an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), and
certain transferees thereof, will become null and void and will no longer be transferable. 
 On June __, 2009, the Board
of Directors of Kensey Nash Corporation (the “Company”) announced the declaration of a dividend of one Right (a “Right”) for each outstanding share of Common Stock, par value $0.001 per share (the “Common
Shares”), of the Company. The dividend is payable to the stockholders of record as of the close of business on June 19, 2009 (the “Record Date”). Each Right entitles the registered holder to purchase from the Company
one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company at a price of $200.00 per one one-thousandth of a Preferred Share (the
“Purchase Price”), subject to adjustment. However, no Right may be exercised on or before the Distribution Date. The description and terms of the Rights are set forth in a Rights Agreement, dated as of June 18, 2009, as it may
from time to time be supplemented or amended (the “Rights Agreement”) between the Company and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agent”). 
 Until the earlier of (1) the close of business on the tenth business day after the first public announcement that a person or entity
(“Person”) or group of affiliated or associated Persons has acquired beneficial ownership (including through derivative transactions as provided in the Rights Agreement) of Common Shares equal to or in excess of 15% or more of the
then-outstanding Common Shares (an “Acquiring Person”), or (2) the close of business on the tenth business day (or such later date as may be determined by action of the Company’s Board of Directors prior to such time as
any Person becomes an Acquiring Person) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in the beneficial ownership of such Person or group of 15% or
more of the outstanding Common Shares (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced by the Common Share certificates (or, for Common Shares held in book-entry accounts through the
direct registration services of the Company’s transfer agent, by such book-entry accounts (together with direct registration transaction advice with respect to such Common Shares)) and will be transferable only by the transfer of the Common
Shares associated with such Rights, and any transfer of the Common Shares (including a transfer to the Company) will constitute a transfer of the Rights. Notwithstanding the foregoing, no Person will become an “Acquiring Person” as the
result of (a) an acquisition of Common Shares by the Company which, by reducing the number of Common Shares outstanding, increases the proportionate number of Common Shares beneficially owned by such Person to 15% or more of the Common Shares
then outstanding, or (b) the acquisition by 

  

 C-1 

 
such Person of newly-issued Common Shares directly from the Company (it being understood that a purchase from an underwriter or other intermediary is not
directly from the Company); provided, however, that if a Person becomes the beneficial owner of Common Shares equal to or in excess of 15% of the Common Shares then outstanding by reason of share purchases by the Company or the receipt of
newly-issued Common Shares directly from the Company and, after such share purchases or direct issuance by the Company, becomes the beneficial owner of any additional Common Shares of the Company and is the beneficial owner of Common Shares equal to
or in excess of 15% of the Common Shares then outstanding, then such Person shall be deemed to be an “Acquiring Person.” In addition, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an
“Acquiring Person” has become such inadvertently, and such Person divests as promptly as practicable (or within such period of time as the Board of Directors of the Company determines as reasonable) a sufficient number of Common Shares so
that such Person would no longer be an “Acquiring Person,” then such Person shall not be deemed to be an “Acquiring Person.” As described below, after a Person or group becomes an Acquiring Person, the Rights may not be redeemed
or amended. 
 Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share
certificates issued after the Record Date, upon transfer or new issuance of Common Shares, will contain a legend incorporating the Rights Agreement by reference (or, for Common Shares held in book-entry accounts through the direct registration
service of the Company’s transfer agent, a legend on the direct registration transaction advice with respect to such shares.) Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any
certificates for Common Shares outstanding as of the Record Date, even without such notation, or a copy of this Summary of Rights being attached, will also constitute the transfer of the Rights associated with the Common Shares represented by such
certificate. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Rights Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the
Distribution Date, and such separate Rights Certificates alone will evidence the Rights. In the event the Company elects to distribute any Rights by crediting book-entry accounts, the provisions in this summary that reference Rights Certificates
shall be interpreted to reflect that the Rights are credits to the book-entry accounts, that separate Rights Certificates will not be issued with respect to some or all of the Rights and any legend required on a Rights Certificate will be placed on
the direct registration transaction advice with respect to such Rights.  
 The Rights will expire on June 19,
2019 (the “Final Expiration Date”), unless the Final Expiration Date is extended or unless the Rights are redeemed earlier by the Company, in each case, as described below. 
 If a Person or group of affiliated or associated Persons becomes an Acquiring Person, each holder of a Right (other than those described
in the next sentence) will thereafter have the right to receive, upon exercise, Common Shares (or, in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the Purchase Price of the Right instead
of Preferred Shares. All Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person (and certain related Persons or transferees) will be null and void. 
  

 C-2 

 At any time after a Person or group becomes an Acquiring Person and prior to the
acquisition by such Person or group of 50% or more of the outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such Person or group that have become null and void), in whole or in part,
without any additional payment, for Common Shares, at an exchange ratio of one Common Share (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges) per Right (subject to
adjustment). 
 At any time after the first date of public announcement by the Company or an Acquiring Person that an
Acquiring Person has become such, if (1) the Company is the surviving corporation in a merger with any other company or entity, (2) the Company is acquired in a merger or other business combination transaction, (3) 50% or more of the
Company’s consolidated assets or earning power are sold, or (4) an Acquiring Person engages in certain “self-dealing” transactions with the Company, each holder of a Right (other than those whose Rights have become null and void)
will thereafter have the right to receive, upon the exercise thereof at the then-current Purchase Price of the Right, that number of shares of common stock of the surviving or acquiring company which at the time of such transaction has a market
value of two times the Purchase Price of such Right. 
 With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least one percent (1%) in such Purchase Price. No fractional Preferred Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a
Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), and, in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Shares on the last trading day prior to the date of
exercise. 
 At any time prior to a Person or group becoming an Acquiring Person, the Board of Directors of the
Company may redeem all, but not less than all, of the Rights at a price of $.001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the
Board of Directors in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

 Any of the provisions of the Rights may be amended by the Board of Directors in its sole discretion. However, after a
Person or group becomes an Acquiring Person, any such amendment must not adversely affect the interests of holders of Rights (excluding the interests of any Acquiring Person and certain related Persons and transferees). 
 A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as Exhibit __ to the Current Report on Form 8-K
filed by the Company on June __, 2009. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights and the Rights Agreement does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, which is incorporated herein by reference. 
  

 C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]