Document:

Purchase Agreement, dated December 12, 2012

 Exhibit 10.1 
 EXECUTION VERSION 
 PURCHASE AGREEMENT 

December 12, 2012 

MERRILL LYNCH, PIERCE, FENNER & SMITH 

                        
INCORPORATED 
         As Representative of the Initial Purchasers 

One Bryant Park 
 New York, New York 10036

 Ladies and Gentlemen: 
 Introductory. Tempur-Pedic International Inc., a Delaware corporation (the “Company”), proposes to issue and sell to Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“Merrill Lynch”) and the other several Initial Purchasers named in Schedule A (the “Initial Purchasers”), acting severally and not jointly, the respective amounts set forth in such Schedule A of $375,000,000
aggregate principal amount of the Company’s 6.875% Senior Notes due 2020 (the “Notes”). Merrill Lynch has agreed to act as the representative of the several Initial Purchasers (the “Representative”) in
connection with the offering and sale of the Notes. 
 The Securities (as defined below) will be issued pursuant to an
indenture, to be dated as of December 19, 2012 (the “Indenture”), among the Company, the Guarantors (as defined below) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). Notes will
be issued only in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”) pursuant to a letter of representations, to be dated on or before the Closing Date (as defined in
Section 2 hereof) (the “DTC Agreement”), among the Company and the Depositary. 
 The payment of principal
of, premium, if any, and interest on the Notes will be fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by (i) the entities listed on the signature pages hereof as “Initial Guarantors” on
the Closing Date (as defined below), (ii) the entities listed on Schedule B hereto which become borrowers or guarantors under the New Credit Agreement (as defined below) (the “Specified Guarantors”) on or prior to the Escrow
Release Date (as defined below) and (iii) any Subsidiary (as defined below) of the Company formed or acquired after the Closing Date that executes an additional guarantee in accordance with the terms of the Indenture (collectively, (i),
(ii) and (iii) and their respective successors and assigns, being referred to herein as the “Guarantors”), pursuant to their guarantees (the “Guarantees”). The Notes and the Guarantees attached thereto are
herein collectively referred to as the “Securities”; and the Exchange Notes and the Guarantees attached thereto are herein collectively referred to as the “Exchange Securities.” 

 The holders of the Notes will be entitled to the benefits of a registration rights
agreement, to be dated on or prior to the Closing Date (the “Registration Rights Agreement”), among the Company, the Guarantors (including the Guarantors that subsequently become a party thereto by executing the RRA Joinder (as
defined below)), and the Initial Purchasers, pursuant to which the Company and the Guarantors will be required to file with the Commission (as defined below), under the circumstances set forth therein, (i) a registration statement under the
Securities Act (as defined below) relating to another series of debt securities of the Company with terms substantially identical to the Notes (the “Exchange Notes”) to be offered in exchange for the Notes (the “Exchange
Offer”) and/or (ii) a shelf registration statement pursuant to Rule 415 of the Securities Act relating to the resale by certain holders of the Notes, and in each case, to use its reasonable best efforts to cause such registration
statement(s) to be declared effective. All references herein to the Exchange Notes and the Exchange Offer are only applicable if the Company and the Guarantors are in fact required to consummate the Exchange Offer pursuant to the terms of the
Registration Rights Agreement. 
 In connection with the offering of the Securities, the Company entered into an amendment (the
“Bank Amendment”) to the Amended and Restated Credit Agreement, dated as of June 18, 2011 (as amended, supplemented or otherwise modified from time to time, the “Existing Credit Agreement”), among certain
Subsidiaries and affiliates of the Company, the financial institutions party thereto from time to time, Bank of America, N.A., as domestic administrative agent and domestic collateral agent and Nordea Bank Danmark A/S, as foreign administrative
agent and foreign collateral agent, to permit the Company and the Guarantors to issue the Securities. On or prior to the Closing Date, the Company expects to enter into a credit agreement (the “New Credit Agreement”) with a group of
lenders and Bank of America, N.A. as administrative agent, to provide for new senior secured credit facilities, consisting of a $350 million revolving credit facility, a $550 million term A loan and a $870 million term B loan, primarily in order to
(A) finance the acquisition (the “Sealy Acquisition”) of Sealy Corporation (“Sealy”) pursuant to the Agreement and Plan of Merger dated as of September 26, 2012 (as in effect on the date hereof, and as may
be amended hereafter, the “Acquisition Agreement”) among the Company, Silver Lightning Merger Company and Sealy, (B) repay, defease or redeem substantially all existing indebtedness of the Company and Sealy and (C) pay
fees and expenses related to each of (A) and (B). 
 On the Closing Date, the Company shall enter into an escrow agreement
(the “Escrow Agreement”) with the Trustee, who shall also act as escrow agent (the “Escrow Agent”). Pursuant to the Escrow Agreement, the Company will deposit, or cause to be deposited, into an escrow account (the
“Escrow Account”) cash and/or U.S. government obligations (collectively with the Escrow Account and any other securities from time to time held therein, the “Escrowed Property”) equal to the proceeds of the offering
of the Securities and an additional amount of cash and/or U.S. government obligations sufficient to redeem all the Notes, for cash at a redemption price of 100% of the principal amount of the Notes, plus accrued and unpaid interest from the Closing
Date to, but excluding, October 1, 2013. The Escrowed Property will be held by the Escrow Agent in accordance with the terms and provisions set forth in the Escrow Agreement, and released in accordance with the conditions set forth therein (the
“Escrow Release Conditions”) on the date such conditions are satisfied in accordance with the Escrow Agreement (the “Escrow Release Date”), as described in the Preliminary Offering Memorandum and the Final Offering
Memorandum (each as defined below). Following the Escrow Release Date, the Escrowed Property 

  
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will be used to pay a portion of the consideration due for the Sealy Acquisition, and related fees and expenses, under the Acquisition Agreement. If the Escrow Release Conditions are not
satisfied on or before September 26, 2013 (the “Outside Date”), the Company will be required to redeem the Securities at the Escrow Redemption Price (as defined in the Indenture) pursuant to the terms of the Indenture and the
Escrow Agreement and in accordance therewith. 
 The Specified Guarantors will, among other things, on or prior to the Escrow
Release Date, execute a joinder agreement to this Agreement (the “Joinder Agreement”) in the form attached as Annex I hereto. In addition, on or prior to the Escrow Release Date, the Specified Guarantors will execute
(i) a joinder agreement to the Registration Rights Agreement in the form attached to the Registration Rights Agreement (the “RRA Joinder”) and (ii) a supplemental indenture to the Indenture (the “Supplemental
Indenture”) in the form attached to the Indenture pursuant to which each such Specified Guarantor will become a Guarantor under the Indenture. 
 The (i) issuance and sale of the Notes, (ii) issuance of the Guarantees, (iii) execution of the Escrow Agreement, the Registration Rights Agreement, the Joinder Agreement, the RRA Joinder,
the Indenture and the Supplemental Indenture, (iv) entry by the Company and the Guarantors into the Bank Amendment, (v) entry by the Company and the Guarantors into the New Credit Agreement, (vi) release of the Escrowed Property to
the Company in accordance with the Escrow Release Conditions on the Escrow Release Date, if applicable, (vii) initial extensions of credit under the New Credit Agreement on the Closing Date or the Escrow Release Date, as applicable,
(viii) Sealy Acquisition, (ix) repayment, defeasance or redemption of substantially all existing indebtedness of the Company and Sealy and entry into the supplemental indenture to the 8% Senior Secured Third Lien Convertible Notes due 2016
(the “Convertible Notes”) indenture and (x) payment of all related fees and expenses are referred to herein collectively as the “Transactions.” 

This Agreement, the Registration Rights Agreement, the Joinder Agreement, the RRA Joinder, the DTC Agreement, the Securities, the
Exchange Securities, the Bank Amendment, the New Credit Agreement, the Escrow Agreement, the Acquisition Agreement, the Indenture and the Supplemental Indenture are referred to herein collectively as the “Transaction Documents.”

 For purposes of this Agreement, “Subsidiary” means, in respect of any person, any corporation, company
(including any limited liability company), association, partnership, joint venture or other business entity of which a majority of the total voting power of all classes of capital stock or other interests (including partnership interests) of that
person then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) that
person, (ii) that person and one or more Subsidiaries of that person, or (iii) one or more Subsidiaries of that person. 
 As used in this Agreement, all references to the Company and its Subsidiaries, the Company and its affiliates (as such term is defined in Rule 501 under the Securities Act) (each, an
“Affiliate”), the Company and the Guarantors, and the Guarantors, give effect to the consummation of the Sealy Acquisition. 

  
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 The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and in the Pricing Disclosure Package (as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set forth herein, all or a portion of the Securities to
purchasers (the “Subsequent Purchasers”) on the terms set forth in the Pricing Disclosure Package (the first time when sales of the Securities are made is referred to as the “Time of Sale”). The Securities are to be
offered and sold to or through the Initial Purchasers without being registered with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933 (as amended, the “Securities Act,” which
term, as used herein, includes the rules and regulations of the Commission promulgated thereunder), in reliance upon exemptions therefrom. Pursuant to the terms of the Securities and the Indenture, investors who acquire Securities shall be deemed to
have agreed that Securities may only be resold or otherwise transferred, after the date hereof, if such Securities are registered for sale under the Securities Act or if an exemption from the registration requirements of the Securities Act is
available (including the exemptions afforded by Rule 144A under the Securities Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”)). 

The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary Offering Memorandum, dated December 7, 2012
(the “Preliminary Offering Memorandum”), and has prepared and delivered to each Initial Purchaser copies of a Pricing Supplement, dated December 12, 2012 (the “Pricing Supplement”), describing the terms of the
Securities, each for use by such Initial Purchaser in connection with its solicitation of offers to purchase the Securities. The Preliminary Offering Memorandum and the Pricing Supplement are herein referred to as the “Pricing Disclosure
Package.” Promptly after this Agreement is executed and delivered, the Company will prepare and deliver to each Initial Purchaser a final offering memorandum dated the date hereof (the “Final Offering Memorandum”).

 All references herein to the terms “Pricing Disclosure Package” and “Final Offering Memorandum” shall be
deemed to mean and include all information filed under the Securities Exchange Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder)
prior to the Time of Sale and specifically incorporated by reference in the Pricing Disclosure Package (including the Preliminary Offering Memorandum) or the Final Offering Memorandum (as the case may be), and all references herein to the terms
“amend,” “amendment” or “supplement” with respect to the Final Offering Memorandum shall be deemed to mean and include all information filed under the Exchange Act after the Time of Sale and
incorporated by reference in the Final Offering Memorandum. 
 The representations, warranties, authorizations,
acknowledgements, covenants and agreements of the Specified Guarantors set forth in this Agreement shall, with respect to the Specified Guarantors, become effective immediately upon the execution and delivery by each of them of the Joinder Agreement
at which time such representations, warranties, authorizations, acknowledgments, covenants and agreements shall become effective as to the Specified Guarantors as if made on the date hereof. 

The Company hereby confirms its agreements with the Initial Purchasers as follows: 

  
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 SECTION 1. Representations and Warranties. Each of the Company and the Guarantors (in
the case of the Specified Guarantors, upon execution and delivery of the Joinder Agreement), jointly and severally, hereby represents, warrants and covenants to each Initial Purchaser that, as of the date hereof and as of the Closing Date
(references in this Section 1 to the “Offering Memorandum” are to (x) the Pricing Disclosure Package in the case of representations and warranties made as of the date hereof and (y) the Final Offering Memorandum in
the case of representations and warranties made as of the Closing Date): 
 (a) No Registration Required. Subject to
compliance by the Initial Purchasers with the representations and warranties set forth in Section 2 hereof and with the procedures set forth in Section 7 hereof, it is not necessary in connection with the offer, sale and delivery of the
Securities to the Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering Memorandum to register the Securities under the Securities Act or, until such time as the Exchange Securities are
issued pursuant to an effective registration statement, to qualify the Indenture under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act,” which term, as used herein, includes the rules and regulations of the
Commission promulgated thereunder). 
 (b) No Integration of Offerings or General Solicitation. None of the Company, its
Affiliates, or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will,
directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Securities in a manner that would require the
Securities to be registered under the Securities Act. None of the Company, its Affiliates, or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has engaged
or will engage, in connection with the offering of the Securities, in any form of general solicitation or general advertising within the meaning of Rule 502 under the Securities Act. With respect to those Securities sold in reliance upon Regulation
S, (i) none of the Company, its Affiliates or any person acting on its or their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has engaged or will engage in any directed selling efforts
within the meaning of Regulation S and (ii) each of the Company and its Affiliates and any person acting on its or their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has complied and
will comply with the offering restrictions set forth in Regulation S. 
 (c) Eligibility for Resale under Rule 144A. When
issued on the Closing Date, the Securities will be eligible for resale pursuant to Rule 144A and will not be, at the Closing Date, of the same class as securities listed on a national securities exchange registered under Section 6 of the
Exchange Act or quoted in a U.S. automated interdealer quotation system. 
 (d) The Pricing Disclosure Package and Offering
Memorandum. Neither the Pricing Disclosure Package, as of the Time of Sale, nor the Final Offering Memorandum, as of its date or (as amended or supplemented in accordance with Section 3(a), as applicable) as of the Closing Date, contains or
represents an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that this
representation, warranty and 

  
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agreement shall not apply to statements in or omissions from the Pricing Disclosure Package, the Final Offering Memorandum or any amendment or supplement thereto made in reliance upon and in
conformity with information furnished to the Company in writing by any Initial Purchaser through the Representative expressly for use in the Pricing Disclosure Package, the Final Offering Memorandum or any amendment or supplement thereto, as the
case may be. The Pricing Disclosure Package contains, and the Final Offering Memorandum will contain, all the information specified in, and meeting the requirements of, Rule 144A. The Company has not distributed and will not distribute, prior to the
later of the Closing Date and the completion of the Initial Purchasers’ distribution of the Securities, any offering material in connection with the offering and sale of the Securities other than the Pricing Disclosure Package and the Final
Offering Memorandum. 
 (e) Company Additional Written Communications. The Company has not prepared, made, used,
authorized, approved or distributed and will not prepare, make, use, authorize, approve or distribute any written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities other than (i) the Pricing
Disclosure Package, (ii) the Final Offering Memorandum and (iii) any electronic road show or other written communications, in each case used in accordance with Section 3(a). Each such communication by the Company or its agents and
representatives pursuant to clause (iii) of the preceding sentence (each, a “Company Additional Written Communication”), when taken together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the
Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation, warranty and agreement shall not apply to statements in or omissions from each such Company Additional Written Communication made in reliance upon and in conformity with information furnished to the Company in writing by
any Initial Purchaser through the Representative expressly for use in any Company Additional Written Communication. 
 (f)
Incorporated Documents. The documents incorporated or deemed to be incorporated by reference in the Offering Memorandum at the time they were or hereafter are filed with the Commission (collectively, the “Incorporated
Documents”) complied and will comply in all material respects with the requirements of the Exchange Act. Each such Incorporated Document, when taken together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the
Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

(g) The Purchase Agreement and Joinder Agreement. This Agreement has been duly authorized, executed and delivered by the Company
and each of the Initial Guarantors. On or prior to the Escrow Release Date, the Joinder Agreement will have been duly authorized, executed and delivered by each of the Specified Guarantors. 

(h) The Registration Rights Agreement; DTC Agreement; RRA Joinder. The Registration Rights Agreement has been duly authorized by
the Company and the Initial Guarantors, and on the Closing Date the Registration Rights Agreement will have been duly executed and delivered by the Company and the Initial Guarantors and will constitute a valid and binding

  
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agreement of the Company and the Initial Guarantors, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. On or prior to the Escrow Release Date, the RRA Joinder will have been duly authorized, executed and delivered by the
Specified Guarantors and the Registration Rights Agreement will constitute a valid and binding agreement of the Specified Guarantors, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. The DTC Agreement has been duly authorized by the Company and, on the Closing Date, will
have been duly executed and delivered by, and will constitute a valid and binding agreement of, the Company, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 
 (i) Authorization of the Notes, the Guarantees and the Exchange Notes. The Notes to be purchased by the Initial Purchasers from the Company will on the Closing Date be in the form contemplated by
the Indenture, have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly executed by the Company and, when authenticated in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor, will constitute valid and binding obligations of the Company, enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and will be entitled to the benefits of the Indenture. The Exchange Notes have been duly and validly
authorized for issuance by the Company, and when issued and authenticated in accordance with the terms of the Indenture, the Registration Rights Agreement and the Exchange Offer, will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting enforcement of the rights and remedies
of creditors or by general principles of equity and will be entitled to the benefits of the Indenture. The Guarantees of the Notes by the Initial Guarantors on the Closing Date, the Guarantees of the Notes by the Specified Guarantors on the Escrow
Release Date, and the Guarantees of the Exchange Notes by the Guarantors, when issued, will be in the respective forms contemplated by the Indenture and will have been duly authorized for issuance pursuant to this Agreement and the Indenture. The
Guarantees of the Notes, at the Closing Date, will have been duly executed by each of the Initial Guarantors and, when the Notes have been authenticated in the manner provided for in the Indenture and issued and delivered against payment of the
purchase price therefor, the Guarantees of the Notes will constitute valid and binding agreements of the Initial Guarantors, in each case, enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and will be entitled to the benefits of the Indenture. The Guarantees of the Notes, at the
Escrow Release Date, will have been duly executed by each of the Specified Guarantors and will constitute valid and binding agreements of the Specified Guarantors, in each case, enforceable in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or 

  
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affecting the rights and remedies of creditors or by general equitable principles and will be entitled to the benefits of the Indenture. When the Exchange Notes have been authenticated in the
manner provided for in the Indenture and issued and delivered in accordance with the Registration Rights Agreement, the Guarantees of the Exchange Notes will constitute valid and binding agreements of the Guarantors, in each case, enforceable in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable
principles and will be entitled to the benefits of the Indenture. 
 (j) Authorization of the Indenture. The Indenture
has been duly authorized by the Company and the Initial Guarantors. On the Closing Date, the Indenture will have been duly executed and delivered by the Company and the Initial Guarantors and, assuming the due authorization, execution and delivery
thereof by the Trustee, will constitute a valid and binding agreement of the Company and the Initial Guarantors, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 
 (k) Authorization of the Supplemental Indenture. The Supplemental Indenture will have been duly authorized by each Specified Guarantor on or prior to the Escrow Release Date, and, on the Escrow
Release Date, the Supplemental Indenture will have been duly executed and delivered by each Specified Guarantor and, when the Supplemental Indenture has been duly executed and delivered by the Specified Guarantors, the Indenture, as supplemented,
will constitute a valid and legally binding instrument, enforceable in accordance with its terms against the Company and each Guarantor, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 
 (l)
Authorization of the Escrow Agreement. The Escrow Agreement has been duly authorized by the Company and, on the Closing Date, the Escrow Agreement will have been duly executed and delivered by the Company and, assuming the due authorization,
execution and delivery thereof by the Escrow Agent and the Trustee, will constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. When executed and delivered to the Escrow Agent and the Trustee on the Closing
Date, the Escrow Agreement will grant and create a valid and enforceable perfected first-priority security interest in the Escrowed Property in favor of the Trustee to secure the obligations under the Securities. 

(m) Description of the Transaction Documents. The Transaction Documents will conform in all material respects to the respective
statements relating thereto contained in the Offering Memorandum. 
 (n) No Material Adverse Change. Except as otherwise
disclosed in the Offering Memorandum (exclusive of any amendment or supplement thereto), subsequent to the respective dates as of which information is given in the Offering Memorandum (exclusive of any amendment

  
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or supplement thereto): (i) there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition,
financial or otherwise, or in the earnings, business, operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its Subsidiaries, considered as one entity (any such change is called a
“Material Adverse Change”); (ii) the Company and its Subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent, not in the ordinary course of business nor
entered into any material transaction or agreement not in the ordinary course of business; and (iii) there has been no dividend or distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or
other Subsidiaries, any of its Subsidiaries on any class of capital stock or repurchase or redemption by the Company or any of its Subsidiaries of any class of capital stock. 
 (o) Independent Accountants. Ernst & Young LLP, which expressed its opinion with respect to the Company’s financial statements (which term as used in this Agreement includes the
related notes thereto) and supporting schedules filed with the Commission and included in the Offering Memorandum is an independent registered public accounting firm within the meaning of the Securities Act, the Exchange Act and the rules of the
Public Company Accounting Oversight Board, and any non-audit services provided by Ernst & Young LLP to the Company or any of its Subsidiaries (excluding Sealy and its Subsidiaries) have been approved by the Audit Committee of the Board of
Directors of the Company. Deloitte & Touche LLP, which expressed its opinion with respect to Sealy’s financial statements and supporting schedules filed with the Commission and included in the Offering Memorandum is an independent
registered public accounting firm within the meaning of the Securities Act, the Exchange Act and the rules of the Public Company Accounting Oversight Board, and, to the Company’s knowledge after due inquiry, any non-audit services provided by
Deloitte & Touche LLP to Sealy or any of its Subsidiaries have been approved by the Audit Committee of the Board of Directors of Sealy. 
 (p) Preparation of the Financial Statements. The financial statements, together with the related schedules and notes, included or incorporated by reference in the Offering Memorandum present fairly
in all material respects the consolidated financial position of the entities (including the Company and its Subsidiaries and Sealy and its Subsidiaries) to which they relate as of and at the dates indicated and the results of their operations and
cash flows for the periods specified. Such financial statements have been prepared in conformity with generally accepted accounting principles as applied in the United States (“GAAP”) applied on a consistent basis throughout the
periods involved, except as may be expressly stated in the related notes thereto. The financial data set forth in the Offering Memorandum under the captions “Summary–Summary Consolidated Financial Data–Tempur-Pedic,”
“Summary–Summary Consolidated Financial Data–Sealy,” “Selected Historical Financial Information–Tempur-Pedic” and “Selected Historical Financial Information–Sealy” fairly present in all material
respects the information set forth therein on a basis consistent with that of the audited financial statements contained in the Offering Memorandum. The pro forma condensed combined financial statements of the Company and its Subsidiaries and the
related notes thereto included under the captions “Summary–Summary Unaudited Pro Forma Consolidated Financial Data,” “Capitalization” and “Unaudited Pro Forma Condensed Combined Financial Information” and elsewhere
in the Offering Memorandum present fairly in all material respects the information contained therein, have been prepared in accordance with the Commission’s rules and guidelines with respect to pro forma financial

  
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statements and have been properly presented on the bases described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to
give effect to the transactions and circumstances referred to therein. The statistical and market-related data and forward-looking statements included in the Offering Memorandum are based on or derived from sources that the Company believes to be
reliable and the Company believes such data is accurate in all material respects and represents its good faith estimates that are made on the basis of data derived from such sources. The interactive data in eXtensible Business Reporting Language
included or incorporated by reference in the Offering Memorandum and the Pricing Disclosure Package fairly present the information called for in all material respects and have been prepared in accordance with the Commission’s rules and
guidelines applicable thereto. 
 (q) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the
Company and its Subsidiaries has been duly incorporated or formed, as applicable, and is validly existing as a corporation, limited partnership or limited liability company, as applicable, in good standing under the laws of the jurisdiction of its
incorporation or formation, as applicable, and has corporate, partnership or limited liability company, as applicable, power and authority to own, lease and operate its properties and to conduct its business as described in the Offering Memorandum
and, in the case of the Company and the Guarantors, to enter into and perform its obligations under each of the Transaction Documents to which it is a party. Each of the Company and each Subsidiary is duly qualified as a foreign corporation, limited
partnership or limited liability company, as applicable, to transact business and is in good standing or equivalent status in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except for such jurisdictions where the failure to so qualify or to be in good standing would not, individually or in the aggregate, result in a Material Adverse Change. All of the issued and outstanding capital stock or other
ownership interest of each Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and is owned by the Company (or, with respect to Sealy and its Subsidiaries, will be owned by the Company upon consummation of the
Sealy Acquisition), directly or through Subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim, except as disclosed in the Offering Memorandum. The Company does not own or control, directly or indirectly,
a majority of the total voting power of any corporation, association or other entity other than (i) the Subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and,
(ii) after consummation of the Sealy Acquisition, (x) Sealy as well as (y) Sealy’s Subsidiaries listed in Exhibit 21.1 to Sealy’s Annual Report on Form 10-K for the fiscal year ended November 27, 2011. 

(r) Capitalization. At September 30, 2012, on a consolidated basis, after giving pro forma effect to the Transactions, the
Company would have an authorized and outstanding capitalization as set forth in the Offering Memorandum under the caption “Capitalization” (other than for subsequent issuances of capital stock, if any, pursuant to employee benefit plans
described in the Offering Memorandum or upon exercise of outstanding options described in the Offering Memorandum). 
 (s)
Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of its Subsidiaries is (i) in violation of its charter, bylaws or other constitutive document or (ii) in default
(or, with the giving of notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage, loan or credit 

  
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agreement, note, contract, franchise, lease or other instrument to which the Company or any of its Subsidiaries is a party or by which it or any of them may be bound (including, without
limitation, the Company’s New Credit Agreement or, on the Escrow Release Date, the Convertible Notes indenture), or to which any of the property or assets of the Company or any of its Subsidiaries is subject (each, an “Existing
Instrument”), except, in the case of clause (ii) above, for such Defaults as would not, individually or in the aggregate, result in a Material Adverse Change and such Defaults that would occur on the Escrow Release Date pursuant to any
indebtedness governed by an Existing Instrument being repaid, prepaid, repurchased, redeemed, legally defeased or otherwise retired by the Company at the Escrow Release Date. The execution, delivery and performance of the Transaction Documents by
the Company and the Guarantors party thereto, and the issuance and delivery of the Securities and the Exchange Securities, and consummation of the Transactions contemplated hereby and thereby and by the Offering Memorandum (i) have been (or,
with respect to Sealy and its Subsidiaries, will be on or prior to the Escrow Release Date) duly authorized by all necessary corporate action and will not result in any violation of the provisions of the charter, bylaws or other constitutive
document of the Company or any Subsidiary, (ii) will not conflict with or constitute a breach of, or Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any of its Subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument, and (iii) will not result in any violation of any law, administrative
regulation or administrative or court decree applicable to the Company or any Subsidiary, except, in the case of clauses (ii) and (iii) of this sentence, for such conflicts, breaches, Defaults, Debt Repayment Triggering Events, liens,
charges, encumbrances or violations as would not, individually or in the aggregate, result in a Material Adverse Change and except, in the case of clause (ii) of this sentence, for such conflicts, breaches, Defaults, Debt Repayment Triggering
Events, liens, charges or encumbrances pursuant to any indebtedness governed by an Existing Instrument (which conflicts, breaches, Defaults, Debt Repayment Triggering Events, liens, charges or encumbrances do not arise from the incurrence of the
Notes but from the other Transactions) being repaid, prepaid, repurchased, redeemed, legally defeased or otherwise retired by the Company at the Escrow Release Date. Assuming the Initial Purchasers observe the procedures set forth in Section 7
herein, no consent, approval, authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency is required for the execution, delivery and performance of the Transaction Documents by
the Company and the Guarantors to the extent a party thereto, or the issuance and delivery of the Securities or the Exchange Securities, or consummation of the Transactions contemplated hereby and thereby and by the Offering Memorandum, except for
UCC-1 financing statements and mortgage related security documents to be filed in connection with the New Credit Agreement and a certificate of merger in connection with the Sealy Acquisition, except such as have been obtained or made by the Company
and are in full force and effect under the Securities Act, applicable securities laws of the several states of the United States or provinces of Canada and except such as may be required by the securities laws of the several states of the United
States or provinces of Canada with respect to the Company’s obligations under the Registration Rights Agreement. As used herein, a “Debt Repayment Triggering Event” means any event or condition which gives, or with the giving
of notice or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any of its Subsidiaries. 

  
 11 

 (t) No Material Actions or Proceedings. Except as otherwise disclosed in the Offering
Memorandum, there are no legal or governmental actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or involving the Company or any of its Subsidiaries or (ii) which has as the subject thereof
any property owned or leased by, the Company or any of its Subsidiaries and any such action, suit or proceeding, if determined adversely to the Company or such Subsidiary, that would result in a Material Adverse Change or adversely affect the
consummation of the Transactions. No material labor dispute with the employees of the Company or any of its Subsidiaries exists or, to the Company’s knowledge, is threatened or imminent. To the Company’s knowledge, no material labor
dispute with the employees of any principal supplier of the Company exists or is threatened or imminent. 
 (u) Intellectual
Property Rights. Except as otherwise disclosed in the Offering Memorandum, the Company and its Subsidiaries own or possess or have the right to use on reasonable terms all trademarks, trade names, patent rights, copyrights, licenses, approvals,
trade secrets and other similar rights (collectively, “Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted, as described in the Offering Memorandum, except where the failure to own or
possess or have the right to use the same would not, individually or in the aggregate, result in a Material Adverse Change; and the expected expiration of any of such Intellectual Property Rights would not result in a Material Adverse Change.
Neither the Company nor any of its Subsidiaries has received any notice of infringement or conflict with asserted Intellectual Property Rights of others, which infringement or conflict, if the subject of an unfavorable decision, would result in a
Material Adverse Change. 
 (v) All Necessary Permits, etc. The Company and each Subsidiary possess such valid and
current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to own, lease and operate its properties and to conduct their respective businesses, except where the failure
so to possess would not, individually or in the aggregate, result in a Material Adverse Change, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of, or non-compliance with,
any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Change. 

(w) Title to Properties. The Company and each of its Subsidiaries has good and marketable title to all the properties and assets
reflected as owned in the financial statements referred to in Section 1(p) hereof, in each case free and clear of any security interests, mortgages, liens, encumbrances, equities, claims and other defects, except as disclosed in the Offering
Memorandum and except such as do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company or such Subsidiary. The real property,
improvements, equipment and personal property held under lease by the Company or any Subsidiary are held under valid and enforceable leases, with such exceptions as are not material and do not materially interfere with the use made or proposed to be
made of such real property, improvements, equipment or personal property by the Company or such Subsidiary. 
 (x) Tax Law
Compliance. Except as otherwise disclosed in the Offering Memorandum, the Company and its Subsidiaries have filed all necessary federal, state and foreign income 

  
 12 

 
and franchise tax returns and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them except
as may be being contested in good faith and by appropriate proceedings and except for such taxes, assessments, fines or penalties the nonpayment of which would not, individually or in the aggregate, result in a Material Adverse Change. The Company
has made adequate charges, accruals and reserves in accordance with GAAP in the applicable financial statements referred to in Section 1(p) hereof in respect of all federal, state and foreign income and franchise taxes for all periods as to
which the tax liability of the Company or any of its Subsidiaries has not been finally determined. 
 (y) Company and
Guarantors Not an “Investment Company”. The Company has been advised of the rules and requirements under the Investment Company Act of 1940, as amended (the “Investment Company Act,” which term, as used herein,
includes the rules and regulations of the Commission promulgated thereunder). Neither the Company nor any Guarantor is, or after receipt of payment for the Securities will be, an “investment company” within the meaning of the Investment
Company Act, and the Company and the Initial Guarantors, and following the Escrow Release Date, the Specified Guarantors, will each conduct its business in a manner so that it will not become subject to the Investment Company Act. 

(z) Insurance. Each of the Company and its Subsidiaries is insured by recognized, financially sound institutions with policies in
such amounts and with such deductibles and covering such risks as are generally deemed adequate and customary for their businesses including, without limitation, policies covering real and personal property owned or leased by the Company and its
Subsidiaries against theft, damage, destruction, acts of vandalism, flood and earthquakes. The Company has no reason to believe that it or any Subsidiary will not be able (i) to renew its existing insurance coverage as and when such policies
expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Change. In the past five years, neither
of the Company nor any Subsidiary has been denied any insurance coverage which it has sought or for which it has applied that, individually or in the aggregate, would result in a Material Adverse Change. 

(aa) No Price Stabilization or Manipulation. None of the Company or any of the Guarantors has taken and will not take, directly or
indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities. 

(bb) Solvency. The Company and the Guarantors, taken as a whole, are, and immediately after the Closing Date will be, Solvent. As
used herein, the term “Solvent” means, with respect to any person on a particular date, that on such date (i) the fair market value of the assets of such person is greater than the total amount of liabilities (including
contingent liabilities) of such person, (ii) the present fair salable value of the assets of such person is greater than the amount that will be required to pay the probable liabilities of such person on its debts as they become absolute and
matured, (iii) such person is able to realize upon its assets and pay its debts and other liabilities, including contingent obligations, as they mature and (iv) such person does not have unreasonably small capital. 

  
 13 

 (cc) Compliance with Sarbanes-Oxley. The Company and its Subsidiaries and their
respective officers and directors are in compliance in all material respects with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which term, as used herein, includes the rules and regulations
of the Commission promulgated thereunder). 
 (dd) Company’s Accounting System. The Company and its Subsidiaries
maintain a system of accounting controls that is in compliance with the Sarbanes-Oxley Act and is sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific
authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

(ee) Disclosure Controls and Procedures. The Company has established and maintains disclosure controls and procedures (as such
term is defined in Rules 13a-15 and 15d-15 under the Exchange Act); such disclosure controls and procedures are designed to ensure that material information relating to the Company and its Subsidiaries is made known to the chief executive officer
and chief financial officer of the Company by others within the Company or any of its Subsidiaries, and such disclosure controls and procedures are reasonably effective to perform the functions for which they were established subject to the
limitations of any such control system; the Company’s auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) any significant deficiencies or material weaknesses in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process, summarize, and report financial data; and (ii) any fraud, whether or not material, that involves management or other employees who have a role in the
Company’s internal controls; and since the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal controls or in other factors that could significantly affect internal
controls, including any corrective actions with regard to significant deficiencies and material weaknesses. 
 (ff)
Regulations T, U, X. Neither the Company nor any Guarantor nor any of their respective Subsidiaries nor any agent thereof acting on their behalf has taken, and none of them will take, any action that might cause this Agreement or the issuance
or sale of the Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System. 
 (gg) Compliance with and Liability Under Environmental Laws. Except as otherwise disclosed in the Offering Memorandum or as would not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Change: (i) each of the Company and its Subsidiaries and their respective operations and facilities are in compliance with, and not subject to any known liabilities under, applicable Environmental Laws, which
compliance includes, without limitation, having obtained and being in compliance with any permits, licenses or other governmental authorizations or approvals, and having made all filings and provided all financial assurances and notices, required
for the ownership and operation of the business, properties and facilities of the Company or its Subsidiaries under applicable Environmental Laws, and compliance with the terms and conditions thereof; (ii) neither the Company nor any of its
Subsidiaries 

  
 14 

 
has received any written communication from a governmental authority, citizens group, employee or otherwise that alleges that the Company or any of its Subsidiaries is in violation of any
Environmental Law; (iii) there is no claim, action or cause of action filed with a court or governmental authority, no investigation with respect to which the Company has received written notice, and no written notice by any person, entity or
governmental authority alleging actual or potential liability on the part of the Company or any of its Subsidiaries based on or pursuant to any Environmental Law pending or, to the best of the Company’s knowledge, threatened against the Company
or any of its Subsidiaries or any person or entity whose liability under or pursuant to any Environmental Law the Company or any of its Subsidiaries has retained or assumed either contractually or by operation of law; (iv) neither the Company
nor any of its Subsidiaries is conducting or paying for, in whole or in part, any investigation, response or other corrective action pursuant to any Environmental Law at any site or facility, nor is any of them subject or a party to any order,
judgment, decree, contract or agreement which imposes any obligation or liability under any Environmental Law; (v) no lien, charge, encumbrance or restriction has been recorded pursuant to any Environmental Law with respect to any assets,
facility or property owned, operated or leased by the Company or any of its Subsidiaries; and (vi) there are no past or present actions, activities, circumstances, conditions or occurrences, including, without limitation, the Release or
threatened Release of any Material of Environmental Concern, that could reasonably be expected to result in a violation of or liability under any Environmental Law on the part of the Company or any of its Subsidiaries, including without limitation,
any such liability which the Company or any of its Subsidiaries has retained or assumed either contractually or by operation of law. 
 For purposes of this Agreement, “Environment” means ambient air, indoor air, surface water, groundwater, drinking water, soil, surface and subsurface strata, and natural resources such as
wetlands, flora and fauna. “Environmental Laws” means the common law and all federal, state, local and foreign laws or regulations, ordinances, codes, orders, decrees, judgments and injunctions issued, promulgated or entered
thereunder, relating to pollution or protection of the Environment or human health, including without limitation, those relating to (i) the Release or threatened Release of Materials of Environmental Concern; and (ii) the manufacture,
processing, distribution, use, generation, treatment, storage, transport, handling or recycling of Materials of Environmental Concern. “Materials of Environmental Concern” means any substance, material, pollutant, contaminant,
chemical, waste, compound, or constituent, in any form, including without limitation, petroleum and petroleum products, subject to regulation or which can give rise to liability under any Environmental Law. “Release” means any
release, spill, emission, discharge, deposit, disposal, leaking, pumping, pouring, dumping, emptying, injection or leaching into the Environment, or into, from or through any building, structure or facility. 

(hh) Periodic Review of Costs of Environmental Compliance. In the ordinary course of its business, the Company conducts a periodic
review of the effect of Environmental Laws on the business, operations and properties of the Company and its Subsidiaries (excluding Sealy and its Subsidiaries), in the course of which it identifies and evaluates associated costs and liabilities
(including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any
potential liabilities to third parties). On the basis of such review and the amount of its established reserves, the Company has reasonably 

  
 15 

 
concluded that such associated costs and liabilities would not, individually or in the aggregate, result in a Material Adverse Change. To the Company’s knowledge, there are no such costs and
liabilities relating to Sealy and its Subsidiaries that would, individually or in the aggregate, result in a Material Adverse Change. 
 (ii) ERISA Compliance. The Company and its Subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act of 1974 (as amended,
“ERISA,” which term, as used herein, includes the regulations and published interpretations thereunder) established or maintained by the Company, its Subsidiaries or their ERISA Affiliates (as defined below) are in compliance in all
material respects with ERISA and, to the knowledge of the Company, each “multiemployer plan” (as defined in Section 4001 of ERISA) to which the Company, its Subsidiaries or an ERISA Affiliate contributes (a “Multiemployer
Plan”) is in compliance in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a Subsidiary, any member of any group of organizations described in Section 414 of the Internal
Revenue Code of 1986 (as amended, the “Code,” which term, as used herein, includes the regulations and published interpretations thereunder) of which the Company or such Subsidiary is a member. No “reportable event” (as
defined under ERISA) has occurred or is reasonably expected to occur with respect to any “employee benefit plan” established or maintained by the Company, its Subsidiaries or any of their ERISA Affiliates. No “single employer
plan” (as defined in Section 4001 of ERISA) established or maintained by the Company, its Subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any “amount of unfunded
benefit liabilities” (as defined under ERISA) that is material to the Company and its Subsidiaries, considered as one entity. Neither the Company, its Subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to incur
any material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan”
established or maintained by the Company, its Subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401 of the Code is so qualified and nothing has occurred, whether by action or failure to act, which
would cause the loss of such qualification. 
 (jj) Compliance with Labor Laws. Except as would not, individually or in
the aggregate, result in a Material Adverse Change, (i) there is (A) no unfair labor practice complaint pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries before the National Labor
Relations Board, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements pending, or to the Company’s knowledge, threatened, against the Company or any of its Subsidiaries, (B) no strike, labor
dispute, slowdown or stoppage pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries and (C) no union representation question existing with respect to the employees of the Company or any of its
Subsidiaries and, to the Company’s knowledge, no union organizing activities taking place and (ii) there has been no violation of any federal, state or local law relating to discrimination in hiring, promotion or pay of employees or of any
applicable wage or hour laws. 
 (kk) Related Party Transactions. After giving effect to the consummation of the Sealy
Acquisition, no relationship, direct or indirect, exists between or among any of the Company or any Affiliate of the Company, on the one hand, and any director, officer, member, stockholder, 

  
 16 

 
customer or supplier of the Company or any Affiliate of the Company, on the other hand, which is required by the Securities Act to be disclosed in a registration statement on Form S-1 which is
not so disclosed in the Offering Memorandum. After giving effect to the consummation of the Sealy Acquisition, there are no outstanding loans, advances (except advances for business expenses in the ordinary course of business) or guarantees of
indebtedness by the Company or any Affiliate of the Company to or for the benefit of any of the officers or directors of the Company or any Affiliate of the Company or any of their respective family members. 

(ll) No Unlawful Contributions or Other Payments. Neither the Company nor any of its Subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or Affiliate of the Company or any of its Subsidiaries is aware of or has taken any action, directly or indirectly, that has resulted or would result in a violation by such persons of the FCPA,
including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in
contravention of the FCPA and the Company, its Subsidiaries and, to the knowledge of the Company, its Affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure,
and which are reasonably expected to continue to ensure, continued compliance therewith. 

“FCPA” means Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder. 
 (mm) No Conflict with Money Laundering Laws. The operations of the Company and its Subsidiaries are and
have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of
all applicable jurisdictions, the rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines issued, administered or enforced by any governmental agency (collectively, the “Money Laundering
Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened. 
 (nn) No Conflict with Sanctions Laws. Neither the Company nor any of its
Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department, the U.S. Department of Commerce, the U.S. Department of State , the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor is the Company or any of its Subsidiaries located, organized or resident in a country or territory that is the subject of Sanctions. The Company will not, directly or indirectly, use any of the proceeds of the
offering contemplated by this Agreement, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other person, (i) to fund any activities of or business with any person that, at the time of such
funding, is the subject of Sanctions, 

  
 17 

 
or is in Burma/Myanmar, Cuba, Iran, Libya, North Korea, Sudan or in any other country or territory, that, at the time of such funding, is the subject of Sanctions, or (ii) in any other
manner that will result in a violation by any person (including any person participating in the offering, whether as underwriter, advisor, investor or otherwise) of Sanctions. 
 (oo) New Credit Agreement. The New Credit Agreement has been duly and validly authorized by the Company and the Initial Guarantors and, when duly executed and delivered by the Company and the
Initial Guarantors, will be the valid and legally binding obligation of the Company and the Initial Guarantors, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. On or prior to the Escrow Release Date, a joinder agreement to the New Credit Agreement will have been duly
authorized, executed and delivered by the Specified Guarantors and the New Credit Agreement will constitute a valid and binding agreement of the Specified Guarantors, enforceable in accordance with its terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 

(pp) Bank Amendment. The Bank Amendment has been duly and validly authorized, executed and delivered by the Company and the
Subsidiaries of the Company party thereto and the Existing Credit Agreement as amended by the Bank Amendment constitues the valid and legally binding obligation of the Company and such Subsidiaries, enforceable in accordance with its terms, except
as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 

(qq) Regulation S. The Company, the Guarantors and their respective Affiliates and all persons acting on their behalf (other than
the Initial Purchasers, as to whom the Company and the Guarantors make no representation) have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Securities outside
the United States and, in connection therewith, the Offering Memorandum will contain the disclosure required by Rule 902. The Company is a “reporting issuer”, as defined in Rule 902 under the Securities Act. 

Any certificate signed by an officer of the Company or any Guarantor and delivered to the Initial Purchasers or to counsel for the
Initial Purchasers shall be deemed to be a representation and warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth therein. 
 SECTION 2. Purchase, Sale and Delivery of the Securities. 
 (a) The
Securities. Each of the Company and the Guarantors agrees to issue and sell to the Initial Purchasers, severally and not jointly, all of the Securities, and, subject to the conditions set forth herein, the Initial Purchasers agree, severally and
not jointly, to purchase from the Company and the Guarantors the aggregate principal amount of Securities set forth opposite their names on Schedule A, at a purchase price of 100% of the principal amount thereof (which amount includes the Deferred
Discount referred to below), payable on the Closing Date, on the basis of the representations, warranties and agreements herein contained, and upon the terms herein set forth. 

  
 18 

 (b) The Closing Date. Delivery of certificates for the Securities in global form to
be purchased by the Initial Purchasers and payment therefor shall be made at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, NY 10017 (or such other place as may be agreed to by the Company and Merrill Lynch) at
9:00 a.m. New York City time, on December 19, 2012, or such other time and date as Merrill Lynch shall designate by notice to the Company (the time and date of such closing are called the “Closing Date”). The Company hereby
acknowledges that circumstances under which Merrill Lynch may provide notice to postpone the Closing Date as originally scheduled include, but are in no way limited to, any determination by the Company or the Initial Purchasers to recirculate to
investors copies of an amended or supplemented Offering Memorandum or a delay as contemplated by the provisions of Section 17 hereof. 
 (c) Delivery of the Securities. The Company shall deliver, or cause to be delivered, to Merrill Lynch for the accounts of the several Initial Purchasers certificates for the Notes at the Closing
Date against the irrevocable release of a wire transfer of immediately available funds for the amount of the purchase price therefor; provided that payment of such purchase price (which payment shall include the Deferred Discount) shall be
made on behalf of the Company to the Escrow Agent by wire transfer in Federal or other funds immediately available in New York City to a bank account designated by the Escrow Agent against delivery of the Notes by the Company to Merrill Lynch for
the accounts of the several Initial Purchasers. The certificates for the Notes shall be in such denominations and registered in the name of Cede & Co., as nominee of the Depositary, pursuant to the DTC Agreement, and shall be made available
for inspection on the business day preceding the Closing Date at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, NY 10017 (or such other place in New York City as Merrill Lynch may designate). If the Escrow Release
Conditions are satisfied, on the Escrow Release Date, a deferred discount in the amount of $7,500,000 (the “Deferred Discount”) shall be released to Merrill Lynch, as Representative of the Initial Purchasers. If the Escrow Release
Conditions have not been satisfied on or prior to the Outside Date, the Escrowed Property (including the Deferred Discount) shall be used to redeem the Securities pursuant to the terms of the Escrow Agreement. 

(d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally and not jointly represents and warrants
to, and agrees with, the Company that: 
 (i) it will offer and sell Securities only to (a) persons who it
reasonably believes are “qualified institutional buyers” within the meaning of Rule 144A (“Qualified Institutional Buyers”) in transactions meeting the requirements of Rule 144A or (b) upon the terms and conditions
set forth in Annex II to this Agreement; 
 (ii) it is an institutional “accredited investor”
within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act; and 

  
 19 

 (iii) it will not offer or sell Securities by any form of general
solicitation or general advertising, including but not limited to the methods described in Rule 502(c) under the Securities Act. 
 SECTION 3. Additional Covenants. Each of the Company and the Guarantors (in the case of the Specified Guarantors, upon execution and delivery of the Joinder Agreement) further covenants and agrees
with each Initial Purchaser as follows: 
 (a) Preparation of Final Offering Memorandum; Initial Purchasers’ Review of
Proposed Amendments and Supplements and Company Additional Written Communications. As promptly as practicable following the Time of Sale and in any event not later than the second business day following the date hereof, the Company will prepare
and deliver to the Initial Purchasers the Final Offering Memorandum, which shall consist of the Preliminary Offering Memorandum as modified only by the information contained in the Pricing Supplement. The Company will not amend or supplement the
Preliminary Offering Memorandum or the Pricing Supplement, other than in accordance with Section 3(b) below. The Company will not amend or supplement the Final Offering Memorandum prior to the Closing Date unless Merrill Lynch shall previously
have been furnished a copy of the proposed amendment or supplement at least two business days prior to the proposed use or filing, and shall not have objected to such amendment or supplement. Before making, preparing, using, authorizing, approving
or distributing any Company Additional Written Communication, the Company will furnish to Merrill Lynch a copy of such written communication for review and will not make, prepare, use, authorize, approve or distribute any such written communication
to which Merrill Lynch reasonably objects. 
 (b) Amendments and Supplements to the Final Offering Memorandum and Other
Securities Act Matters. If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which any of the Pricing Disclosure Package as then amended or supplemented would include any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement any
of the Pricing Disclosure Package to comply with law, the Company and the Guarantors will, as promptly as possible, notify the Initial Purchasers thereof and forthwith prepare and (subject to Section 3(a) hereof) furnish to the Initial
Purchasers such amendments or supplements to any of the Pricing Disclosure Package as may be necessary so that the statements in any of the Pricing Disclosure Package as so amended or supplemented will not, in the light of the circumstances under
which they were made, be misleading or so that any of the Pricing Disclosure Package will comply with all applicable law. If, prior to the completion of the placement of the Securities by the Initial Purchasers with the Subsequent Purchasers, any
event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final Offering Memorandum, as then amended or supplemented, in order to make the statements therein, in the light of the circumstances when the
Final Offering Memorandum is delivered to a Subsequent Purchaser, not misleading, or if in the reasonable judgment of the Representative or counsel for the Initial Purchasers it is otherwise necessary to amend or supplement the Final Offering
Memorandum to comply with law, the Company and the Guarantors agree to promptly prepare (subject to Section 3(a) hereof) and furnish at their own expense to the Initial Purchasers, amendments or supplements to the Final Offering Memorandum so
that the statements in the Final Offering Memorandum as so amended or supplemented will not, in the light of the circumstances at the Closing Date and at the time of sale of the Securities, be misleading or so that the Final Offering Memorandum, as
amended or supplemented, will comply with all applicable law. 

  
 20 

 Following the consummation of the Exchange Offer or the effectiveness of an applicable shelf
registration statement and for so long as the Securities are outstanding, if, in the reasonable judgment of the Representative, the Initial Purchasers or any of their Affiliates are required under applicable law to deliver a prospectus in connection
with sales of, or market-making activities with respect to, the Securities, the Company and the Guarantors agree to periodically amend the applicable registration statement so that the information contained therein complies with the requirements of
Section 10 of the Securities Act, to amend the applicable registration statement or supplement the related prospectus or the documents incorporated therein when necessary to reflect any material changes in the information provided therein so
that the registration statement and the prospectus will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing as of the
date the prospectus is so delivered, not misleading and to provide the Initial Purchasers with copies of each amendment or supplement filed and such other documents as the Initial Purchasers may reasonably request. 

The Company hereby expressly acknowledges that the indemnification and contribution provisions of Sections 8 and 9 hereof are
specifically applicable and relate to each offering memorandum, registration statement, prospectus, amendment or supplement referred to in this Section 3. 
 (c) Copies of the Offering Memorandum. The Company agrees to furnish the Initial Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Final Offering Memorandum and
any amendments and supplements thereto as they shall reasonably request. 
 (d) Blue Sky Compliance. Each of the Company
and the Guarantors shall cooperate with the Representative and counsel for the Initial Purchasers to qualify or register (or to obtain exemptions from qualifying or registering) all or any part of the Securities for offer and sale under the
securities laws of the several states of the United States, the provinces of Canada or any other jurisdictions designated by the Representative, shall comply with such laws and shall continue such qualifications, registrations and exemptions in
effect so long as required for the distribution of the Securities. None of the Company or any of the Guarantors shall be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any
such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company will advise the Representative promptly of the suspension of the qualification or registration of (or any such
exemption relating to) the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or
exemption, each of the Company and the Guarantors shall use its best efforts to obtain the withdrawal thereof. 
 (e) Use of
Proceeds. The Company shall apply the net proceeds from the sale of the Securities sold by it in the manner described under the caption “Use of Proceeds” in the Pricing Disclosure Package. 

  
 21 

 (f) The Depositary. The Company will cooperate with the Initial Purchasers and use
its best efforts to permit the Securities to be eligible for clearance and settlement through the facilities of the Depositary. 

(g) Additional Issuer Information. Prior to the completion of the placement of the Securities by the Initial Purchasers with the
Subsequent Purchasers, the Company shall file, on a timely basis, with the Commission and the New York Stock Exchange (the “NYSE”) all reports and documents required to be filed under Section 13 or 15 of the Exchange Act.
Additionally, at any time when the Company is not subject to Section 13 or 15 of the Exchange Act, for the benefit of holders and beneficial owners from time to time of the Securities, the Company shall furnish, at its expense, upon request, to
holders and beneficial owners of Securities and prospective purchasers of Securities information (“Additional Issuer Information”) satisfying the requirements of Rule 144A(d). 

(h) Agreement Not To Offer or Sell Additional Securities. During the period of 90 days following the date hereof, the Company will
not, without the prior written consent of Merrill Lynch (which consent may be withheld at the sole discretion of Merrill Lynch), directly or indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an open
“put equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any registration statement under the Securities Act in respect of, any debt
securities of the Company or securities exchangeable for or convertible into debt securities of the Company (other than as contemplated by this Agreement and to register the Exchange Securities). 

(i) Future Reports to the Initial Purchasers. At any time when the Company is not subject to Section 13 or 15 of the Exchange
Act and any Securities or Exchange Securities remain outstanding, the Company will furnish to the Representative and, upon request, to each of the other Initial Purchasers: (i) as soon as practicable after the end of each fiscal year, copies of
the Company’s balance sheet as of the close of such fiscal year and statements of income, stockholders’ equity and cash flows for the year then ended and the opinion thereon of the Company’s independent public or certified public
accountants; (ii) as soon as practicable after the filing thereof would otherwise be required pursuant to the rules and regulations under Section 13 or 15 of the Exchange Act, copies of each proxy statement, Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, Current Report on Form 8-K or other report that would otherwise be filed by the Company with the Commission, the Financial Industry Regulatory Authority (“FINRA”) or any securities exchange; and
(iii) as soon as available, copies of any report or communication of the Company mailed generally to holders of its capital stock or debt securities (including the holders of the Securities), if, in each case, such documents are not filed with
the Commission within the time periods specified by the Commission’s rules and regulations under Section 13 or 15 of the Exchange Act. Any filings made by the Company pursuant to this section with the Commission’s Electronic Data
Gathering, Analysis, and Retrieval system (EDGAR) shall be deemed to have been furnished to the Representative and the other Initial Purchasers. 
 (j) No Integration. The Company agrees that it will not and will cause its Affiliates not to make any offer or sale of securities of the Company of any class if, as a result of the doctrine of
“integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid (for the purpose of (i) the sale of the Securities by the Company to the Initial Purchasers,

  
 22 

 
(ii) the resale of the Securities by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the Securities by such Subsequent Purchasers to others) the exemption from the
registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise. 
 (k) No General Solicitation or Directed Selling Efforts. The Company agrees that it will not and will not permit any of its Affiliates or any other person acting on its or their behalf (other than
the Initial Purchasers, as to which no covenant is given) to (i) solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in
any manner involving a public offering within the meaning of Section 4(2) of the Securities Act or (ii) engage in any directed selling efforts with respect to the Securities within the meaning of Regulation S, and the Company will and will
cause all such persons to comply with the offering restrictions requirement of Regulation S with respect to the Securities. 

(l) No Restricted Resales. From the Closing Date through consummation of the Exchange Offer, the Company will not, and will not
permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Notes that constitute “restricted securities” under Rule 144 that have been reacquired by any of them. 

(m) Legended Securities. Each certificate for a Note will bear the legend contained in “Notice to Investors” in the
Preliminary Offering Memorandum for the time period and upon the other terms stated in the Preliminary Offering Memorandum. 

(n) Escrow Account. The Company shall deposit or cause to be deposited the Escrowed Property into the Escrow Account. 

(o) Escrow Release Conditions. Concurrently with the release of the Escrowed Property on the Escrow Release Date, 

(i) the Company shall deliver to the Initial Purchasers executed copies of any certificates, evidence and documents
confirming compliance with and satisfaction of the Escrow Release Conditions in accordance with the Escrow Agreement and such other certificates as the Initial Purchasers may reasonably request; 

(ii) the Transactions shall have been consummated on substantially the terms and conditions described in the Final
Offering Memorandum. 
 (iii) the Specified Guarantors shall enter into the Joinder Agreement, the RRA Joinder
and the Supplemental Indenture and shall deliver executed copies thereof to the Initial Purchasers; 
 (iv) the
Escrow Agent shall, upon instruction of the Company, release a wire transfer of immediately available funds for the amount of the Deferred Discount to Merrill Lynch, as Representative of the Initial Purchasers; 

(v) the Specified Guarantors shall enter into a joinder agreement to the New Credit Agreement and shall deliver executed
copies thereof to the Initial Purchasers; 

  
 23 

 (vi) the Company shall cause Bingham McCutchen LLP, counsel for certain
Specified Guarantors incorporated or organized in Delaware, New York, Virginia, Massachusetts, Maryland and California, and special local counsel for each of the remaining Specified Guarantors incorporated or organized in Ohio, Georgia, Missouri,
Tennessee, Illinois, Minnesota, North Carolina, Texas and Michigan, respectively, to deliver in each case favorable opinions with respect to valid existence, good standing and corporate power of such Specified Guarantors; due authorization,
execution and delivery by such Specified Guarantors and enforceability against such Specified Guarantors of the Joinder Agreement, RRA Joinder, Supplemental Indenture and Guarantees; and as to the absence of required consents and non-contravention
of organizational documents, laws, contracts and judgments, in each case on terms substantially consistent with the opinions delivered as to such matters on the Closing Date, and in each case dated as of the Escrow Release Date, in forms reasonably
satisfactory to the Initial Purchasers; 
 (vii) the Company and the Specified Guarantors shall deliver to the
Initial Purchasers, among other documents and certificates as the Initial Purchasers shall reasonably request, Secretary’s Certificates, dated the Escrow Release Date, reasonably satisfactory to the Initial Purchasers which shall include the
following documents with respect to the Specified Guarantors: (a) certificates of incorporation or organization, (b) by-laws or comparable organizational documents, (c) resolutions of the Board of Directors of each entity or
comparable documents, (d) certificates of good standing from the jurisdiction of incorporation or organization of each such entity and (e) certificates of good standing and/or qualifications to do business as a foreign corporation in such
jurisdictions as the Initial Purchasers reasonably request. 
 The Representative on behalf of the several Initial Purchasers,
may, in its sole discretion, waive in writing the performance by the Company or any Guarantor of any one or more of the foregoing covenants or extend the time for their performance. 

SECTION 4. Payment of Expenses. Each of the Company and the Guarantors agrees to pay all costs, fees and expenses incurred in
connection with the performance of its obligations hereunder and in connection with the Transactions, including, without limitation, (i) all expenses incident to the issuance and delivery of the Securities (including all printing and engraving
costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Securities to the Initial Purchasers, (iii) all fees and expenses of the Company’s and the Guarantors’ counsel,
independent public or certified public accountants and other advisors, (iv) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Pricing Disclosure Package and the Final Offering
Memorandum (including financial statements and exhibits), and all amendments and supplements thereto, and the Transaction Documents, (v) all filing fees, attorneys’ fees and expenses incurred by the Company, the Guarantors or the Initial
Purchasers in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Securities for offer and sale under the securities laws of the several states of the United States,
the provinces of Canada or other jurisdictions designated by the Initial Purchasers (including, without limitation, the cost of preparing, printing and mailing preliminary and final blue sky or legal investment memoranda and any related supplements
to the Pricing Disclosure Package or the Final Offering Memorandum), (vi) the fees and expenses of the Trustee and Escrow Agent, including the fees 

  
 24 

 
and disbursements of counsel for the Trustee and Escrow Agent in connection with the Indenture, the Escrow Agreement, the Securities and the Exchange Securities, (vii) any fees payable in
connection with the rating of the Securities or the Exchange Securities with the ratings agencies, (viii) any filing fees incident to, and any reasonable fees and disbursements of counsel to the Initial Purchasers in connection with the review
by FINRA, if any, of the terms of the sale of the Securities or the Exchange Securities, (ix) all fees and expenses (including reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with approval of the
Securities by the Depositary for “book-entry” transfer, and the performance by the Company and the Guarantors of their respective other obligations under this Agreement and (x) all expenses incident to the “road show” for
the offering of the Securities, including the cost of any chartered airplane or other transportation, with such expenses incurred under this clause (x) subject to a maximum aggregate amount of $300,000 except in respect of expenses approved by
the Company in writing. Except as provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay their own expenses, including the fees and disbursements of their counsel. 

SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the several Initial Purchasers to purchase
and pay for the Securities as provided herein on the Closing Date shall be subject to the accuracy of the representations and warranties on the part of the Company and the Guarantors set forth in Section 1 hereof as of the date hereof and as of
the Closing Date as though then made and to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions: 

(a) Accountants’ Comfort Letters. On the date hereof, the Initial Purchasers shall have received from Ernst & Young
LLP, the independent registered public accounting firm for the Company, and Deloitte & Touche LLP, the independent registered public accounting firm for Sealy, “comfort letters” dated the date hereof addressed to the Initial
Purchasers, in form and substance satisfactory to the Representative, covering the financial statements and certain financial information in the Pricing Disclosure Package and other customary matters. In addition, on the Closing Date, the Initial
Purchasers shall have received from such accountants “bring-down comfort letters” dated the Closing Date addressed to the Initial Purchasers, in form and substance satisfactory to the Representative, in the form of the “comfort
letters” delivered on the date hereof, except that (i) such bring-down comfort letters shall cover the financial statements and certain financial information in the Final Offering Memorandum and any amendment or supplement thereto and
(ii) procedures shall be brought down to a date no more than 3 days prior to the Closing Date. 
 (b) No Material Adverse
Change or Ratings Agency Change. For the period from and after the date of this Agreement and prior to the Closing Date: 
 (i) in the reasonable judgment of the Representative there shall not have occurred any Material Adverse Change; and 
 (ii) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the
direction of the possible change, in the rating accorded the Company or any of its Subsidiaries or any of their securities or indebtedness by any “nationally recognized statistical rating organization” as such term is defined in
Section 3(a)(62) of the Exchange Act. 

  
 25 

 (c) Opinion of Counsel for the Company. On the Closing Date the Initial Purchasers
shall have received the favorable opinions of Bingham McCutchen LLP, counsel for the Company and the Initial Guarantors, and of the Company’s General Counsel, each dated as of such Closing Date, the forms of which are attached as Exhibit A.

 (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date the Initial Purchasers shall have received the
favorable opinion of Davis Polk & Wardwell LLP, counsel for the Initial Purchasers, dated as of such Closing Date, with respect to such matters as may be reasonably requested by the Initial Purchasers. 

(e) Officers’ Certificate. On the Closing Date the Initial Purchasers shall have received a written certificate executed by
the Chairman of the Board, Chief Executive Officer or President of the Company and each Guarantor and the Chief Financial Officer or Chief Accounting Officer of the Company and each Guarantor, dated as of the Closing Date, to the effect set forth in
Section 5(b)(ii) hereof, and further to the effect that: 
 (i) for the period from and after the date of
this Agreement and prior to the Closing Date there has not occurred any Material Adverse Change; 
 (ii) the
representations, warranties and covenants of the Company and the Guarantors set forth in Section 1 hereof were true and correct as of the date hereof and are true and correct as of the Closing Date with the same force and effect as though
expressly made on and as of the Closing Date; and 
 (iii) each of the Company and the Guarantors has complied
with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date. 
 (f) Indenture; Registration Rights Agreement. (A) The Company and the Initial Guarantors shall have executed and delivered the Indenture, in form and substance reasonably satisfactory
to the Initial Purchasers, and the Initial Purchasers shall have received executed copies thereof and (B) the Company and the Initial Guarantors shall have executed and delivered the Registration Rights Agreement, in form and substance
reasonably satisfactory to the Initial Purchasers, and the Initial Purchasers shall have received executed copies thereof. 
 (g)
Bank Amendment. On or before the Closing Date, the Company and the parties thereto shall have entered into the Bank Amendment and the Initial Purchasers shall have received executed copies thereof. 

(h) Escrow Agreement. The Company shall have, on or prior to the Closing Date, executed and delivered to the Initial Purchasers an
executed copy of the Escrow Agreement, deposited or caused to be deposited the Escrowed Property into the Escrow Account, filed or caused to be filed any agreements, financing statements or other instruments to give the Trustee a valid, perfected
first-priority security interest in the Escrowed Property and the Escrow Account (as contemplated by the terms of the Escrow Agreement), complied with the terms and provisions in the Escrow Agreement and provided such evidence as the Initial
Purchasers may reasonably require of the foregoing. 

  
 26 

 (i) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order
to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained. 
 If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by Merrill Lynch by notice to the Company at any time on or prior
to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be effective and shall survive such termination. 

SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If (x) this Agreement is terminated by Merrill Lynch pursuant
to Section 5 or 10 hereof, including if the sale to the Initial Purchasers of the Securities on the Closing Date is not consummated because of any refusal, inability or failure on the part of the Company to perform any agreement herein or to
comply with any provision hereof, or (y) the Escrow Release Conditions are not satisfied on or prior to the Outside Date and the Deferred Discount is not released to Merrill Lynch as Representative of the Initial Purchasers, the Company agrees
to reimburse the Initial Purchasers, severally, upon demand for all documented out-of-pocket expenses that shall have been reasonably incurred by the Initial Purchasers in connection with the proposed purchase and the offering and sale of the
Securities, including, without limitation, fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and telephone charges. 
 SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one hand, and the Company and each of the Guarantors, on the other hand, hereby agree to observe the following
procedures in connection with the offer and sale of the Securities: 
 (a) Offers and sales of the Securities will be made only
by the Initial Purchasers or Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are made. Each such offer or sale shall only be made to persons whom the offeror or seller reasonably believes to be Qualified
Institutional Buyers or non-U.S. persons outside the United States to whom the offeror or seller reasonably believes offers and sales of the Securities may be made in reliance upon Regulation S upon the terms and conditions set forth in Annex
II hereto, which Annex II is hereby expressly made a part hereof. 
 (b) The Securities will be offered by approaching
prospective Subsequent Purchasers on an individual basis. No general solicitation or general advertising (within the meaning of Rule 502 under the Securities Act) will be used in the United States in connection with the offering of the Securities.

 (c) Upon original issuance by the Company, and until such time as the same is no longer required under the applicable
requirements of the Securities Act, the Notes (and all securities issued in exchange therefor or in substitution thereof, other than the Exchange Notes) shall bear the following legend: 

  
 27 

 “THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER 

(1) REPRESENTS THAT 
 (A) IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION
WITH RESPECT TO EACH SUCH ACCOUNT, 
 (B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR 
 (C) IT IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) AND 
 (2) AGREES FOR THE BENEFIT OF THE ISSUER THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE SECURITIES ACT AND ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY 
 (A) TO THE ISSUER, 

(B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, 

(C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, 

(D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, 

  
 28 

 (E) IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE TRUSTEE A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE, OR 

(F) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
 PRIOR TO THE REGISTRATION OF ANY TRANSFER
IN ACCORDANCE WITH (2)(C) ABOVE OR (2)(D) ABOVE, A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH
(2)(E) OR (F) ABOVE, THE ISSUER RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE
WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.” 

Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers pursuant to the terms hereof, the Initial
Purchasers shall not be liable or responsible to the Company for any losses, damages or liabilities suffered or incurred by the Company, including any losses, damages or liabilities under the Securities Act, arising from or relating to any resale or
transfer of any Security. 
 SECTION 8. Indemnification. 

(a) Indemnification of the Initial Purchasers. Each of the Company and the Guarantors, jointly and severally, agrees to indemnify
and hold harmless each Initial Purchaser, its Affiliates, directors, officers and employees, and each person, if any, who controls any Initial Purchaser within the meaning of the Securities Act and the Exchange Act against any loss, claim, damage,
liability or expense, as incurred, to which such Initial Purchaser, Affiliate, director, officer, employee or controlling person may become subject, under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, or
at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated
below) arises out of or is based: (i) upon any untrue statement or alleged 

  
 29 

 
untrue statement of a material fact contained in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any
amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (ii) in whole
or in part upon any inaccuracy in the representations and warranties of the Company contained herein; and to reimburse each Initial Purchaser and each such Affiliate, director, officer, employee or controlling person for any and all expenses
(including the fees and disbursements of one firm of counsel chosen by Merrill Lynch in addition to any local counsel) as such expenses are reasonably incurred by such Initial Purchaser or such Affiliate, director, officer, employee or controlling
person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply, with respect to an
Initial Purchaser, to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto). The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company may otherwise have. 

(b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees, severally and not jointly, to indemnify and
hold harmless the Company, each Guarantor, each of their respective directors, officers and each person, if any, who controls the Company or any Guarantor within the meaning of the Securities Act or the Exchange Act, against any loss, claim, damage,
liability or expense, as incurred, to which the Company, any Guarantor or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Initial Purchaser), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication or the
Final Offering Memorandum (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional
Written Communication or the Final Offering Memorandum (or any amendment or supplement thereto), in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Initial Purchaser through the
Representative expressly for use therein; and to reimburse the Company, any Guarantor and each such director, officer or controlling person for any and all expenses (including the fees and disbursements of counsel) as such expenses are reasonably
incurred by the Company, any Guarantor or such director, officer or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. Each of the Company

  
 30 

 
and the Guarantors hereby acknowledges that the only information that the Initial Purchasers through the Representative have furnished to the Company expressly for use in the Preliminary Offering
Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any amendment or supplement thereto) are the statements set forth in the third and fourth sentences of the seventh paragraph under
the caption “New Issue of Notes” and the ninth and tenth paragraphs under the caption “Short Positions”, each under the section “Plan of Distribution” in the Preliminary Offering Memorandum and the Final Offering
Memorandum. The indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that each Initial Purchaser may otherwise have. 
 (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; provided that the failure to so notify the indemnifying party
will not relieve it from any liability which it may have to any indemnified party under this Section 8 except to the extent that it has been materially prejudiced by such failure (through the forfeiture of substantive rights and defenses) and
shall not relieve the indemnifying party from any liability that the indemnifying party may have to an indemnified party other than under this Section 8. In case any such action is brought against any indemnified party and such indemnified
party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice
delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants
in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in
conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties
shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 8 for
any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding
sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with local counsel (in each jurisdiction)), which shall be selected by Merrill Lynch (in the case of
counsel representing the Initial Purchasers or their related persons), representing the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party. 

  
 31 

 (d) Settlements. The indemnifying party under this Section 8 shall not be liable
for any settlement of any proceeding effected without its written consent, which will not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by this Section 8, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered
into and (iii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request or disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which
any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such action, suit or proceeding and (ii) does not include any statements as to or any findings of fault, culpability or failure to act by or on behalf of any indemnified party.

 SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any reason held to be
unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or
payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection
with the statements or omissions or inaccuracies in the representations and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits
received by the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the
total net proceeds from the offering of the Securities pursuant to this Agreement (before deducting expenses but after deducting Initial Purchaser discounts and commissions) received by the Company, and the total discount received by the Initial
Purchasers bear to the aggregate initial offering price of the Securities. The relative fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by the Company
and the Guarantors, on the one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or inaccuracy. 

  
 32 

 The amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending
any action or claim. The provisions set forth in Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 9; provided, however, that no additional
notice shall be required with respect to any action for which notice has been given under Section 8 hereof for purposes of indemnification. 
 The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 9. 

Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to contribute any amount in excess of the
discount received by such Initial Purchaser in connection with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11 of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective commitments as set forth
opposite their names in Schedule A. For purposes of this Section 9, each director, officer and employee of an Initial Purchaser and each person, if any, who controls an Initial Purchaser within the meaning of the Securities Act and the Exchange
Act shall have the same rights to contribution as such Initial Purchaser, and each director of the Company or any Guarantor, and each person, if any, who controls the Company or any Guarantor within the meaning of the Securities Act and the Exchange
Act shall have the same rights to contribution as the Company and the Guarantors. 
 SECTION 10. Termination of this
Agreement. Prior to the Closing Date, this Agreement may be terminated by Merrill Lynch by notice given to the Company if at any time: (i) trading or quotation in any of the Company’s securities shall have been suspended or limited by
the Commission or by the NYSE, or trading in securities generally on either the Nasdaq Stock Market or the NYSE shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such quotation system
or stock exchange by the Commission or FINRA; (ii) a general banking moratorium shall have been declared by any of federal, New York authorities; (iii) there shall have occurred any outbreak or escalation of national or international
hostilities or any crisis or calamity, or any change in the United States or international financial markets as in the judgment of Merrill Lynch is material and adverse and makes it impracticable or inadvisable to proceed with the offering sale or
delivery of the Securities in the manner and on the terms described in the Pricing Disclosure Package or to enforce contracts for the sale of securities; or (iv) in the judgment of Merrill Lynch there shall have occurred any Material Adverse
Change. Any termination pursuant to this Section 10 shall be without liability on the part of (i) the Company or any Guarantor to any Initial Purchaser, except that 

  
 33 

 
the Company and the Guarantors shall be obligated to reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser to the Company, or
(iii) any party hereto to any other party, except that the provisions of Sections 8 and 9 hereof shall at all times be effective and shall survive such termination. 
 SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company, the Guarantors, their
respective officers and the several Initial Purchasers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser, the Company, any Guarantor or
any of their partners, officers or directors or any controlling person, as the case may be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this Agreement. 

SECTION 12. Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered, couriered or facsimiled
and confirmed to the parties hereto as follows: 
 If to the Initial Purchasers: 

Merrill Lynch, Pierce, Fenner & Smith Incorporated 

50 Rockefeller Plaza 
 New York, New York 10020 
 Facsimile: 212-901-7897 

Attention: HY Legal Department 
 with a copy to: 
 Davis Polk & Wardwell LLP 

450 Lexington Avenue 
 New York, New York 10017 
 Facsimile: 212-701-5111 

Attention: Michael Kaplan 
 If to the Company or the Guarantors: 
 Tempur-Pedic International
Inc. 
 1000 Tempur Way 
 Lexington, Kentucky 40511 
 Facsimile: 859-455-2805 

Attention: Chief Financial Officer 
 with a copy to: 
 Bingham McCutchen LLP 

399 Park Avenue 
 New York, New York 10022 
 Facsimile: 212-752-5378 

Attention: John R. Utzschneider 

  
 34 

 Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others. 
 SECTION 13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9 hereof, and in each case their respective successors, and no other person will have any right or obligation hereunder. The term
“successors” shall not include any Subsequent Purchaser or other purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such purchase. 

SECTION 14. Authority of the Representative. Any action by the Initial Purchasers hereunder may be taken by Merrill Lynch on
behalf of the Initial Purchasers, and any such action taken by Merrill Lynch shall be binding upon the Initial Purchasers. 

SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement
shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 SECTION 16.
Governing Law Provisions. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF. 
 (a) Consent to
Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States of
America located in the City and County of New York or the courts of the State of New York in each case located in the City and County of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the
exclusive jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of a judgment of any Specified Court in a Related Proceeding (a “Related Judgment”), as to which such jurisdiction is
non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any Related Proceeding brought in
any Specified Court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any Specified Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any
Specified Court that any Related Proceeding brought in any Specified Court has been brought in an inconvenient forum. 
 SECTION
17. Default of One or More of the Several Initial Purchasers. If any one or more of the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have agreed to purchase hereunder on the Closing Date, and the
aggregate number of Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase 

  
 35 

 
does not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other Initial Purchasers shall be obligated, severally, in the proportions that the number of
Securities set forth opposite their respective names on Schedule A bears to the aggregate number of Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as may be specified by the
Initial Purchasers with the consent of the non-defaulting Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more
of the Initial Purchasers shall fail or refuse to purchase Securities and the aggregate number of Securities with respect to which such default occurs exceeds 10% of the aggregate number of Securities to be purchased on the Closing Date, and
arrangements satisfactory to the Initial Purchasers and the Company for the purchase of such Securities are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party except that the
provisions of Sections 4, 6, 8 and 9 hereof shall at all times be effective and shall survive such termination. In any such case either the Initial Purchasers or the Company shall have the right to postpone the Closing Date, as the case may be,
but in no event for longer than seven days in order that the required changes, if any, to the Final Offering Memorandum or any other documents or arrangements may be effected. 
 As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section 17. Any action taken
under this Section 17 shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement. 
 SECTION 18. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors acknowledges and agrees that: (i) the purchase and sale of the Securities pursuant to this
Agreement, including the determination of the offering price of the Securities and any related discounts and commissions, is an arm’s-length commercial transaction between the Company and the Guarantors, on the one hand, and the several Initial
Purchasers, on the other hand, and the Company and the Guarantors are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with
each transaction contemplated hereby and the process leading to such transaction each Initial Purchaser is and has been acting solely as a principal and is not the agent or fiduciary of the Company and the Guarantors or their respective Affiliates,
stockholders, creditors or employees or any other party; (iii) no Initial Purchaser has assumed or will assume an advisory or fiduciary responsibility in favor of the Company and the Guarantors with respect to any of the transactions
contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser has advised or is currently advising the Company and the Guarantors on other matters) or any other obligation to the Company and the Guarantors except
the obligations expressly set forth in this Agreement; (iv) the several Initial Purchasers and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and the
Guarantors, and the several Initial Purchasers have no obligation to disclose any of such interests by virtue of any fiduciary or advisory relationship; and (v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby, and the Company and the Guarantors have consulted their own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate. 

  
 36 

 This Agreement, together with the Joinder Agreement, supersedes all prior agreements and
understandings (whether written or oral) between the Company, the Guarantors and the several Initial Purchasers, or any of them, with respect to the subject matter hereof. The Company and the Guarantors hereby waive and release, to the fullest
extent permitted by law, any claims that the Company and the Guarantors may have against the several Initial Purchasers with respect to any breach or alleged breach of fiduciary duty. Notwithstanding the foregoing, this Agreement shall not supersede
in any respect that certain Amended and Restated Commitment Letter dated as of October 23, 2012 (the “Commitment Letter”) between the lenders party thereto and the Company (it being understood that the securities being sold
hereunder will constitute Securities as referenced in the Commitment Letter and issuance thereof will, pursuant to the terms of the Commitment Letter, reduce commitments thereunder). 

SECTION 19. General Provisions. This Agreement, together with the Joinder Agreement, constitutes the entire agreement of the
parties to this Agreement and the Joinder Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may be executed in two or
more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by telecopier, facsimile
or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart thereof. This Agreement may not be amended or modified unless in writing by all of the parties hereto,
and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The section headings herein are for the convenience of the parties only and shall not affect the construction
or interpretation of this Agreement. 

  
 37 

 If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms. 
 Very truly yours, 

					
	Tempur-Pedic International Inc.
		
	By:	 	/s/ William H. Poche
		 	Name:	 	William H. Poche
		 	Title:	 	Treasurer 
	
	Tempur-Pedic Management, LLC
	 Tempur World, LLC

Tempur-Pedic Manufacturing, Inc.
 Tempur
Production USA, LLC
 Dawn Sleep Technologies, Inc.
 Tempur-Pedic Sales, Inc.
 Tempur-Pedic North America, LLC

Tempur-Pedic Technologies, Inc.
 Tempur-Pedic
America, LLC,
 as Initial Guarantors

		
	By:	 	/s/ William H. Poche
		 	Name:	 	William H. Poche
		 	Title:	 	Treasurer

  
 38 

 The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers
as of the date first above written. 
  

			
	BY: MERRILL LYNCH, PIERCE, FENNER &
SMITH
                               
INCORPORATED
		
	By:	 	/s/ Douglas M. Ingram
		 	Managing Director
		 	
		 	 Acting on behalf of itself

and as the Representative of
 the several Initial
Purchasers

  
 39 

 SCHEDULE A 

 

					
	 Initial Purchasers
	  	Aggregate
Principal
Amount of
Securities to be
Purchased	 
	 Merrill Lynch, Pierce, Fenner & Smith Incorporated
	  	$	206,250,000	  
	 Barclays Capital Inc.
	  	$	50,000,000	  
	 J.P. Morgan Securities LLC
	  	$	50,000,000	  
	 Wells Fargo Securities, LLC
	  	$	50,000,000	  
	 Fifth Third Securities, Inc.
	  	$	18,750,000	  
		
	 Total
	  	$	375,000,000	  

 SCHEDULE B 
 The Specified Guarantors 
 Sealy Corporation 

Sealy Mattress Corporation 
 Sealy Mattress Company 
 Sealy Mattress Company of Puerto Rico 

Ohio-Sealy Mattress Manufacturing Co. Inc. 
 Ohio-Sealy Mattress Manufacturing Co. 
 Sealy Mattress Company of Kansas
City, Inc. 
 Sealy Mattress Company of Memphis 
 Sealy Mattress Company of Illinois 
 A. Brandwein & Co. 

Sealy Mattress Company of Albany, Inc. 
 Sealy of Maryland and Virginia, Inc. 
 Sealy of Minnesota, Inc.

 North American Bedding Company 
 Sealy, Inc. 
 Mattress Holdings International, LLC 

The Ohio Mattress Company Licensing and Components Group 
 Sealy Mattress Manufacturing Company, Inc. 
 Sealy Technology LLC

 Sealy-Korea, Inc. 
 Sealy Real Estate, Inc. 
 Sealy Texas Management, Inc. 

Sealy Mattress Co. of S.W. Virginia 
 Western Mattress Company 
 Advanced Sleep Products 

Sealy Components-Pads, Inc. 
 Sealy Mattress Company of Michigan, Inc. 

 ANNEX I 
 Form of Joinder Agreement 

[                    ], 2012

 Reference is hereby made to the Purchase Agreement, dated December 12, 2012 (the “Purchase Agreement”),
among Tempur-Pedic International Inc., a Delaware corporation (the “Company”), the Guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative (the “Representative”)
of the Initial Purchasers named on Schedule A thereto (the “Initial Purchasers”), providing for the issuance and sale of the Securities (as defined therein) by the Company and the Guarantors. 

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.

 Each of the undersigned hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, it shall
be deemed to be a party to the Purchase Agreement as if it were an original signatory thereto and hereby makes the representations and warranties and expressly assumes, and agrees to perform and discharge, all of the obligations and liabilities of a
“Guarantor” as the case may be, under the Purchase Agreement, including without limitation, any indemnity and contribution obligations under the Purchase Agreement. All references in the Purchase Agreement to the “Guarantors” and
the “Specified Guarantors” shall hereafter include each of the undersigned and their respective successors, as applicable. 
 Each of the undersigned hereby agrees to promptly execute and deliver any and all further documents and take such further action as the Company or any undersigned party or the Initial Purchasers may
reasonably require to effect the purpose of this Joinder Agreement. 
 This Joinder Agreement shall be governed by and construed
in accordance with the laws of the State of New York without regard to principles of conflict of laws that would result in the application of any law other than the laws of the State of New York. 

[Signature Pages Follow] 

  
 Annex I-1

 IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement as of the date first
set forth above. 
  

					
	[The Specified Guarantors]
		
	By	 	 
		 	Name:	 	
		 	Title:	 	

  
 Annex I-2

 ANNEX II 
 Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that: 
 Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the Securities in the United States or to, or for the benefit or account of, a U.S. person (other than a
distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the offering of the Securities pursuant hereto
and the Closing Date, other than in accordance with Regulation S or another exemption from the registration requirements of the Securities Act. Such Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be published in any newspaper or periodical or posted in any public place and will not issue any circular relating to the Securities, except such
advertisements as are permitted by and include the statements required by Regulation S. 
 Such Initial Purchaser agrees
that, at or prior to confirmation of a sale of Securities by it to any distributor, dealer or person receiving a selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903 of Regulation S, it
will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following effect: 
 “The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered and sold within the United States or
to, or for the account or benefit of, U.S. persons (i) as part of your distribution at any time or (ii) otherwise until 40 days after the later of the date the Securities were first offered to persons other than distributors in reliance
upon Regulation S and the Closing Date, except in either case in accordance with Regulation S under the Securities Act (or in accordance with Rule 144A under the Securities Act or to accredited investors in transactions that are exempt
from the registration requirements of the Securities Act), and in connection with any subsequent sale by you of the Securities covered hereby in reliance on Regulation S under the Securities Act during the period referred to above to any
distributor, dealer or person receiving a selling concession, fee or other remuneration, you must deliver a notice to substantially the foregoing effect. Terms used above have the meanings assigned to them in Regulation S under the Securities
Act.” 

  
 Annex II-1Escrow and Security Agreement, dated as of December 19, 2012

 Exhibit 10.2 
 EXECUTION VERSION 
 TEMPUR-PEDIC INTERNATIONAL INC. 

as Grantor 
  

 
 ESCROW AND
SECURITY AGREEMENT 
 Dated as of December 19, 2012 

 
  

 
  

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 
 as Escrow Agent and Financial Institution 
 and 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 
 as Trustee 
  

 

 THIS ESCROW AND SECURITY AGREEMENT is entered into as of December 19, 2012 (as
amended, modified or supplemented from time to time in accordance with the Indenture for the Notes described below, this “Agreement”), by and among The Bank of New York Mellon Trust Company, N.A., as escrow agent (in such capacity,
the “Escrow Agent”), The Bank of New York Mellon Trust Company, N.A., as a “bank” and “securities intermediary” (each term as defined in the Code (as defined herein)) (in such capacities, the “Financial
Institution”), The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture described below (in such capacity, the “Trustee”), and Tempur-Pedic International Inc., a Delaware corporation (the
“Grantor”). 
 RECITALS 
 Pursuant to that certain indenture (as amended, supplemented or modified from time to time, the “Indenture”), dated as of the date hereof, by and among the Grantor, the Guarantors party
thereto (the “Guarantors”) and the Trustee, the Grantor will issue $375,000,000 in aggregate principal amount of its 6.875% Senior Notes due 2020 (the “Notes”). The Notes are being issued in a private placement (the
“Offering”) pursuant to that certain purchase agreement dated December 12, 2012 (the “Purchase Agreement”), among the Grantor, the Guarantors and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
representative (the “Representative”) of the several initial purchasers named in Schedule A thereto (collectively, the “Initial Purchasers”). In connection with the Offering, the Grantor prepared an Offering
Memorandum, dated December 12, 2012 (the “Offering Memorandum”). 
 The Grantor currently does not expect
to consummate the Sealy Acquisition described in the Offering Memorandum (the “Acquisition”) contemporaneously with the issuance of the Notes and has agreed with the Initial Purchasers in the Purchase Agreement and with the Trustee
in the Indenture to enter into this Agreement and to escrow the gross proceeds from the Offering. When and if such Acquisition is consummated and the conditions hereunder are satisfied, the escrowed proceeds will be released to the Grantor, and if
such conditions are not satisfied, the escrowed proceeds will be released to the Trustee for application to fund a special mandatory redemption of the Notes, in each case pursuant to this Agreement. 

The Grantor, the Trustee, the Financial Institution and the Escrow Agent hereby agree that, in consideration of the mutual promises and
covenants contained herein, the Financial Institution will maintain the Account (as defined herein), and the Escrow Agent will distribute the Escrow Property (as defined below) in accordance with and subject to the following: 

  
 2 

 ARTICLE 1 
 INSTRUCTIONS 
 Section 1.01. Appointment of the Escrow
Agent. The Grantor hereby appoints The Bank of New York Mellon Trust Company, N.A. as Escrow Agent in accordance with the terms and conditions set forth herein, and The Bank of New York Mellon Trust Company, N.A. hereby accepts such appointment
subject to the terms and conditions set forth herein. 
 Section 1.02 Escrow Property. 

The initial funds to be deposited with the Financial Institution will be as follows: 

(a) Concurrently with the execution and delivery hereof and the issuance of the Notes, as provided in the Purchase Agreement, the Initial
Purchasers will deposit, or cause to be deposited, with the Financial Institution $375,000,000, and the Grantor will deposit, or cause to be deposited, with the Financial Institution $20,195,312.50, in each case in cash or by wire transfer in
immediately available funds (together, the “Initial Deposit”), which amounts collectively represent an amount sufficient to redeem in cash the Notes at a special redemption price equal to 100% of the aggregate principal amount of
the Notes as required by Section 3.07 of the Indenture (the “Special Redemption Price”) plus interest that would accrue to, but excluding, October 1, 2013 (the “Special Redemption Date” and such total
amount, the “Special Redemption Total Amount”), if the Notes are required to be redeemed pursuant to Section 3.07 of the Indenture. 
 (b) The Financial Institution will accept the Initial Deposit and will hold such funds, all investments thereof, any Distributions (as hereinafter defined) and the proceeds of the foregoing in an escrow
account (that shall be a Securities Account as defined in the Code) created by the Financial Institution prior to or concurrently with the issuance of the Notes. Such escrow account will have account number GLA 111-565 For further credit to
TAS#538766 and shall be maintained by the Financial Institution in the name of the Trustee (such account, together with any other account maintained by the Financial Institution hereunder, the “Account”) for disbursement in
accordance with the provisions hereof. The Trustee will be the entitlement holder with respect to the Account. The Grantor will not have any access to the Account or funds or investments credited thereto, other than the limited contractual right to
receive the Escrow Property (as defined below) under the circumstances specified in Sections 1.04(d) and 1.05 hereof. The Initial Deposit, the Account and all funds or securities now or hereafter credited to the Account, all investments of any of
the foregoing, plus all interest, dividends and other distributions and payments on any of the foregoing (collectively the “Distributions”) received or receivable by the Escrow Agent or the Financial Institution in respect of any of
the foregoing, together with all proceeds of any of the foregoing are collectively referred to herein as “Escrow Property.” 

  
 3 

 Section 1.03. Grantor’s Limited Rights in Escrow Property; Security Interest.
 
 (a) The Grantor hereby pledges, assigns and grants to the Trustee, for the benefit of the holders of the Notes, as
security for the due and punctual payment when due of all amounts that may be payable from time to time under the Indenture and the Notes, a continuing security interest in, and a lien on, all right, title and interest of the Grantor, whether now
existing or hereafter acquired or arising, in the Escrow Property. 
 (b) The Grantor represents and warrants that the security
interest of the Trustee in the Escrow Property, will, after execution and delivery of this Agreement by all parties hereto, at all times be valid, perfected and enforceable (subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity regardless of whether considered in a proceeding in equity or at law) as a first priority (subject to liens of the Escrow Agent and the Financial
Institution) security interest by the Trustee against the Grantor and all third parties in accordance with the terms of this Agreement. 
 (c) The parties hereto acknowledge and agree that: (i) the Account will be treated as a “Securities Account,” (ii) the Escrow Property (other than the Account) and other assets
credited to the Account will be treated as “Financial Assets,” (iii) this Agreement governs the Account and provides rules governing the priority among possible “Entitlement Orders” received by the Financial
Institution from the Grantor, the Trustee and any other persons entitled to give “Entitlement Orders” with respect to such Financial Assets and (iv) the “Securities Intermediary’s Jurisdiction” is the
State of New York. The Financial Institution as “Securities Intermediary” represents and warrants that it is a “Securities Intermediary” with respect to the Account and the “Financial Assets”
credited to the Account. Except as specifically provided herein, the terms of the New York Uniform Commercial Code, as amended, or any successor provision (the “Code”), will apply to this Agreement, and all terms quoted in this
Section 1.03(c) and Section 1.03(e) will have the meanings assigned to them by Article 8 and Article 9 of the Code. 

(d) The Escrow Agent hereby agrees that all property delivered to the Escrow Agent for crediting to the Account will be promptly credited
to the Account by the Financial Institution. The Financial Institution represents and warrants that it has not entered into, and agrees that it will not enter into, any control agreement or any other agreement relating to the Account or the Escrow
Property with any other third party without the prior written consent of the 

  
 4 

 
Grantor, the Trustee and the Representative. The parties agree that all financial assets (except cash) credited to the Account will be registered in the name of the Financial Institution or its
nominees or indorsed to the Financial Institution or in blank and in no case will any financial asset credited to the Account be registered in the name of the Grantor, payable to the order of the Grantor or specially indorsed to the Grantor unless
such financial asset has been further indorsed to the Financial Institution or in blank. 
 (e) Each of the parties hereto
acknowledges and agrees that the Account will be under the control (within the meanings of Sections 8-106 and 9-106 of the Code) of the Trustee (in accordance with the Indenture) and, notwithstanding any other provision of this Agreement, the
Financial Institution will comply with all “Entitlement Orders” (as defined in Section 8-102 of the Code) with respect to the Account and all instructions directing disposition of funds in the Account, in each case originated
by the Trustee (in accordance with the Indenture) without further consent of the Grantor or any other person; provided, that so long as the Trustee has not notified the Escrow Agent and Financial Institution in writing that an Event of
Default exists or following the receipt by the Escrow Agent and the Securities Intermediary of a written notice from the Trustee that any existing Event of Default has been cured or waived, the Financial Institution shall honor Entitlement Orders
issued by the Grantor and the Escrow Agent in accordance with Section 1.04 or Section 1.05 hereof. 
 (f) The Grantor
agrees to take all steps reasonably necessary in connection with the perfection of the Trustee’s security interest in the Escrow Property and, without limiting the generality of the foregoing, the Grantor hereby authorizes the Trustee and the
Initial Purchasers, on behalf of the Trustee, to file one or more UCC financing statements that reasonably describe the collateral in such jurisdictions and filing offices and containing such description of collateral as are reasonably necessary in
order to perfect the security interest granted herein, and any such filing is hereby authorized to be made by the Initial Purchasers or their counsel on behalf of the Trustee. Notwithstanding anything to the contrary contained herein, neither the
Escrow Agent nor the Trustee shall have any responsibility for preparing, recording, filing, re-recording, or re-filing any financing statement, perfection statement, continuation statement or other instrument in any public office to ensure the
perfection or maintenance of any security interest granted in the Escrow Property. The Grantor represents and warrants that, as of the date hereof, it was duly incorporated and is validly existing as a corporation under the laws of the state of
Delaware and is not organized under the laws of any other jurisdiction, and the Grantor hereby agrees that, prior to the termination of this Agreement, it will not change its legal name or jurisdiction of organization without first giving the
Trustee and the Initial Purchasers at least 10 days’ prior written notice thereof and taking all steps required under the Code to cause the security interests granted herein to remain perfected. 

  
 5 

 (g) Upon the release of any Escrow Property pursuant to Section 1.04 or
Section 1.05 hereof, the security interest of the Trustee for the benefit of the holders of the Notes granted herein will automatically terminate with respect to any such Escrow Property so released without any further action and such released
Escrow Property will be delivered to the recipient free and clear of any and all liens, claims or encumbrances of the Financial Institution, the Escrow Agent, the Trustee or the holders of the Notes. The Trustee will, at the reasonable written
request of the Grantor, take all steps necessary to terminate any financing statements and will execute such other documents without recourse, representation or warranty of any kind as the Grantor may reasonably request in writing to evidence or
confirm the termination of the security interest in such released Escrow Property. 
 Section 1.04. Investment of Escrow
Property. (a) The Escrow Agent is authorized and directed, and agrees promptly to deposit, transfer, hold and invest the Escrow Property and any investment income thereon (i) in cash, (ii) upon instruction as set forth in
Exhibit B, or (iii) in Permitted Investments as otherwise set forth in any subsequent written instruction to the Escrow Agent signed by the Grantor. The Financial Institution will credit all such investments to the Account and hereby
agrees to treat any such investment as a “Financial Asset” within the meaning of Section 8-102(a)(9) of the Code. Notwithstanding any instructions by the Grantor, the Escrow Property may only be invested in or a combination of:
(i) any security issued or guaranteed as to principal or interest by the United States, or any certificate of deposit for any of the foregoing; or (ii) U.S. dollars or demand deposits of the Financial Institution (collectively,
“Permitted Investments”). 
 (b) The Escrow Agent will have no liability for any investment losses, fees, taxes
or other charges arising from or related to any such investment, reinvestment or liquidation of an investment other than in accordance with Section 2.01 hereof. In addition, the Escrow Agent shall not be responsible for assuring that the funds
on deposit in the Escrow Account are sufficient for the disbursements contemplated hereunder. 
 (c) The Escrow Agent will have
no obligation to invest or reinvest the Escrow Property on the day of deposit if deposited with the Financial Institution after 11:00 a.m. New York City time on such day of deposit. Instructions received after 11:00 a.m. New York City time will be
treated as if received on the following Business Day. Any interest or other income received on such investment and reinvestment of the Escrow Property will become part of the Escrow Property and any losses incurred on such investment and
reinvestment of the Escrow Property will be debited against the Escrow Property. If written investment instructions are not given to the Escrow Agent prior to 11:00 a.m. New York City time on any Business Day, the Escrow Agent will be deemed to have
been instructed by the Grantor at 11:00 a.m. New York City time on such 

  
 6 

 
Business Day to deposit and invest the cash portion of the Escrow Property as provided in Section 1.04(a). Notwithstanding the foregoing, the Escrow Agent will have the power, and be
required, to cause the sale or liquidation of the foregoing investments upon the earlier of (x) written notice from the Grantor instructing the Escrow Agent to cause such sale or liquidation and (y) whenever the Escrow Agent is required to
release all or any portion of the Escrow Property pursuant to Section 1.04(d) or Section 1.05 hereof. Upon receipt of written notice pursuant to clause (x) above, the Escrow Agent shall cause the sale or liquidation of the foregoing
investments by no later than 11:00 a.m. New York City time on the succeeding Business Day. In the event that the Escrow Agent is not required to release the Escrow Property within two Business Days of the sale or liquidation of the investments, the
Escrow Agent will reinvest the Escrow Property (in accordance with Section 1.04(a) hereof) upon receipt of written instructions from the Grantor, provided that instructions received after 11:00 a.m. New York City time will be treated as if
received on the following Business Day. In no event will the Escrow Agent be deemed an investment manager or adviser in respect of any selection of investments hereunder. It is understood and agreed that the Escrow Agent or its affiliates are
permitted to receive additional compensation that could be deemed to be in the Escrow Agent’s economic self interest for (i) serving as investment adviser, administrator, shareholder servicing agent, custodian or sub-custodian with respect
to certain of the investments, (ii) using affiliates to effect transactions in certain investments or (iii) effecting transactions in investments. 
 (d) If at any time the Escrow Property has an aggregate value in excess of the Special Redemption Total Amount, the Escrow Agent, upon receipt of a certificate from an officer of the Grantor certifying as
to such event and specifying the amount in excess of the Special Redemption Total Amount, shall cause the release of such excess Escrow Property to the Grantor at its option upon receipt of written instructions therefrom from an Authorized Person
(as defined in Section 3.01 hereof) of the Grantor by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth in Section 1.07 hereof. In furtherance of the foregoing, on June 15, 2013,
if the Officers’ Certificate described in Section 1.05(b) has not been delivered to the Escrow Agent and the Trustee, the Grantor may direct the Escrow Agent to release a portion (in an amount not to the exceed the amount of interest
payable on the Notes on June 15, 2013) of the Escrow Property to the Trustee and Paying Agent under the Indenture by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth in Section 1.07
hereof for purposes of paying such interest; provided that the Grantor delivers the certificate set forth above, together with reasonably detailed calculations, certifying and establishing that the remaining Escrow Property (not assuming any
reinvestment of proceeds) will be sufficient to fund the redemption of the Notes at the Special Redemption Total Amount. 

  
 7 

 (e) For tax reporting purposes, all interest and other income from investment of the Escrow
Property shall, as of the end of each calendar year and to the extent required by the Internal Revenue Service, be reported as having been earned by the Grantor, whether or not such income was disbursed during such calendar year. 

Section 1.05. Distribution of Escrow Property. Subject to Section 1.03(e), the Escrow Agent is directed to cause the
Financial Institution to hold and distribute the Escrow Property in the following manner: 
 (a) The Escrow Agent will only
release the Escrow Property (or cause the Escrow Property to be released) as specifically provided for in this Section 1.05 (except as specified in Section 1.04(d) above). 

(b) As promptly as practicable following receipt of an Officers’ Certificate substantially in the form attached hereto as Exhibit
A (the “Officers’ Certificate”) from the Grantor, the Escrow Agent will cause the liquidation of all investments, if any, of Escrow Property then held by it and cause the release of all of the Escrow Property to or at the
direction of the Grantor, at the Grantor’s written direction by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth in Section 1.07 hereof or to the Trustee as directed. 

(c) If the Officers’ Certificate described in Section 1.05(b) above has not been delivered to the Escrow Agent and the Trustee
on or before 5:00 p.m. (New York City time) on September 26, 2013 (the “Acquisition Deadline”), the Escrow Agent will cause the liquidation of all investments of Escrow Property then held by it on or before the Business Day
immediately prior to the Special Redemption Date and cause the release of all of the Escrow Property as follows: 

(i) first, to the Paying Agent under the Indenture, an amount of Escrow Property in cash equal to the Special
Redemption Total Amount, such amount to be set forth in a written certificate delivered by the Grantor to the Escrow Agent (or equal to the Termination Redemption Price (as defined below), such amount to be set forth in a written certificate
delivered by the Grantor to the Escrow Agent if a Termination Notice (as defined below) has been delivered to the Escrow Agent pursuant to Section 1.05(d) below) for payment to the holders of the Notes in accordance with the special redemption
provision contained in Section 3.07 of the Indenture; such release of Escrow Property to the Paying Agent under the Indenture will be made by wire transfer of immediately available funds in accordance with the wire instructions set forth in
Section 1.07 hereof; provided that if the amount of the Escrow Property is less than the amount required to be paid for the Special Redemption Total Amount or the Termination Redemption Price, as applicable, the Grantor

  
 8 

 
will deliver to the Paying Agent, at least one Business Day prior to the Special Redemption Date an amount equal to the deficiency in accordance with Section 3.07 of the Indenture; and

 (ii) second, to the Grantor, any Escrow Property remaining after the distributions in clause
(i) of this Section 1.05(c), by wire transfer of immediately available funds in accordance with the wire instructions set forth in Section 1.07 hereof. 
 (d) In the event that the Grantor, prior to the Acquisition Deadline, notifies the Escrow Agent, the Trustee and the Initial Purchasers in writing substantially in the form attached hereto as Exhibit C
(the “Termination Notice”) that it will not pursue the Acquisition prior to the Acquisition Deadline or that the Sealy Merger Agreement shall have been amended, changed, supplemented or waived in a manner that would be
materially adverse to the interests of the holders of the Notes (as reasonably determined by the Grantor), it being understood that (a) a reduction of the purchase price in respect of the Acquisition will be deemed to be materially adverse to
the interests of the holders of the notes (other than to the extent any such reduction is less than 10% of the purchase price as of December 19, 2012 and such reduction is applied to reduce the amount of Debt to be outstanding on the Escrow
Release Date) and (b) notwithstanding anything in clause (a) to the contrary, any amendment, change, supplement, waiver or consent permitting the disposition of assets of the Grantor, Sealy or any of their respective subsidiaries deemed
necessary or advisable (as determined by the board of directors of the Grantor in its reasonable judgment) to achieve required regulatory approval of the Acquisition shall not be materially adverse to the interests of the holders of the notes;
provided that the joint lead arrangers under the Credit Agreement entered into on or about the Issue Date shall have consented to any such disposition, then the Grantor shall be required to cause a special redemption of the Notes under
Section 3.07 of the Indenture on the date that is three Business Days thereafter (or such later date specified in the Termination Notice, but in no event later than the Special Redemption Date). The Termination Notice shall specify the Special
Redemption Price together with the accrued interest due on the Notes from the date of issuance to, but excluding, the redemption date (such total amount, the “Termination Redemption Price”). Upon receipt of the Termination Notice at
least two Business Days immediately prior to the date fixed for such special redemption, the Escrow Agent will, on or before the Business Day immediately prior to the date fixed for such special redemption, cause the liquidation of all investments
of Escrow Property then held by the Financial Institution and release all of the Escrow Property in accordance with clauses (i) and (ii) of Section 1.05(c): 
 (e) If the Escrow Agent receives a written notice and instruction from the Trustee that the principal amount of and accrued and unpaid interest on the Notes have become immediately due and payable
pursuant to Article 6 of the 

  
 9 

 
Indenture, then the Escrow Agent will, within one Business Day after receipt of such written notice and instruction from the Trustee, cause the liquidation of all Escrow Property then held by the
Financial Institution and cause the release of all of the Escrow Property as follows: 
 (i) first, to the
Escrow Agent and the Trustee, an amount of Escrow Property in cash equal to amounts due and owing to the Escrow Agent and the Trustee in respect of fees and reasonable out-of-pocket expenses of the Escrow Agent under this Agreement and the Trustee
under the Indenture, ratably; 
 (ii) second, to the Paying Agent for payment to the holders of the Notes,
an amount of Escrow Property sufficient to pay such accelerated principal amount and interest, if any, thereon; such release of Escrow Property to the Paying Agent under the Indenture will be made by wire transfer of immediately available funds in
accordance with the wire instructions set forth in Section 1.07 hereof; and 
 (iii) third, to the
Grantor, any Escrow Property remaining after the distributions in clauses (i) and (ii) of Section 1.05(e) above, by wire transfer of immediately available funds in accordance with the wire instructions set forth in Section 1.07
hereof. 
 (f) In any case hereunder in which the Escrow Agent is to receive instructions to release the Escrow Property, the
Escrow Agent shall be entitled to conclusively rely on such instructions with no responsibility to calculate or confirm amounts or percentages to release or compliance with any other document. 

Section 1.06. Addresses. Notices, instructions and other communications will be sent as follows: 

 

	 	(a)	to Escrow Agent: 

 The Bank of
New York Mellon Trust Company, N.A. 
 10161 Centurion Parkway 

Jacksonville, FL 32256 
 Attention: Corporate Trust Department 
 Telephone: (904) 998-4711 

Facsimile: (904) 645-1972 
  

	 	(b)	to the Financial Institution: 

The Bank of New York Mellon Trust Company, N.A. 
 10161 Centurion Parkway 
 Jacksonville, FL 32256 

  
 10 

 Attention: Corporate Trust Department 

Telephone: (904) 998-4711 
 Facsimile: (904) 645-1972 
  

	 	(c)	to Trustee: 

 The Bank of New
York Mellon Trust Company, N.A. 
 10161 Centurion Parkway 

Jacksonville, FL 32256 
 Attention: Corporate Trust Department 
 Telephone: (904) 998-4711 

Facsimile: (904) 645-1972 
  

	 	(d)	to Grantor: 

 Tempur-Pedic
International Inc. 
 1000 Tempur Way 
 Lexington, Kentucky 40511 
 Facsimile: 859-455-2805 

Attention: Chief Financial Officer 
 with a copy to: 
 Bingham McCutchen LLP 

399 Park Avenue 

New York, New York 10022 
 Facsimile: 212-752-5378 
 Attention: John R. Utzschneider 

 

	 	(e)	to the Representative and the Initial Purchasers: 

 Merrill Lynch, Pierce, Fenner & Smith Incorporated 
 50 Rockefeller Plaza

 New York, New York 10020 
 Facsimile: 212-901-7897 
 Attention: HY Legal Department 

with a copy to: 

Davis Polk & Wardwell LLP 
 450 Lexington Avenue 
 New York, New York 10017 

Facsimile: 212-701-5111 
 Attention: Michael Kaplan 

  
 11 

 The Escrow Agent may rely upon and comply with instructions or directions sent via unsecured
facsimile or email transmission and the Escrow Agent shall not be liable for any loss, liability or expense of any kind incurred by any person due to the Escrow Agent’s reliance upon and compliance with instructions or directions given by
unsecured facsimile or email transmission, provided, however, that such losses have not arisen from the gross negligence or willful misconduct of the Escrow Agent, it being understood that the failure of the Escrow Agent to verify or confirm that
the person providing the instructions or directions, is, in fact, an authorized person, does not constitute negligence or willful misconduct. 
 Section 1.07. Wire Transfer Instructions. 
 All cash (including the
cash proceeds from liquidation of any Escrow Property) distributed from the Account shall be in accordance with the amounts indicated in the Officers’ Certificate to the Grantor and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
All distributions from the Account to the Grantor will be transferred by wire transfer of immediately available funds in accordance with the following wire transfer instructions: 

Bank Name: Fifth Third Bank 
 ABA # 042000314 
 Account # 0082680782 

Account Name: Tempur-Pedic International Inc. 
 Address: 38 Fountain Square Plaza 

       Cincinnati, OH 45263 
 Contact: Trish Claunch, Cash Manager 
 Phone: (859) 455-1892 

All distributions pursuant to the Officers’ Certificate from the Account to Merrill Lynch, Pierce, Fenner & Smith
Incorporated will be made by wire transfer of immediately available funds in accordance with the following wire instructions or such other wire instructions as may be provided in writing to the Escrow Agent by Merrill Lynch, Pierce,
Fenner & Smith Incorporated: 
 Bank Name: Bank of America, NA 

            Dallas, TX USA 

ABA # 0260-0959-3 

Account # 3750672743 
 SWIFT: BOFAUS3N 
 Beneficiary: Merrill Lynch Pierce Fenner & Smith Inc

 Address: 100 N Tryon Street 
         Mail Code: NC1-007-08-28 

        Charlotte, NC 28255 

  
 12 

 Unless otherwise indicated in writing from the Trustee or the Paying Agent to the Escrow
Agent, all cash distributed from the Account to the Paying Agent will be transferred internally or by wire transfer of immediately available funds in accordance with the following wire transfer instructions: 

Bank Name: The Bank of New York Mellon 
 Account Name: Corporate Trust Agency 
 ABA # 021000018 

Account # GLA 111-565 For further credit to TAS # 185652 
 Ref: Tempur-Pedic 6.875% due 2020 
 Attn: Jill Wiesner 

Phone: 904-998-4711 
 Unless otherwise indicated in writing from the Escrow Agent to the Grantor and the Initial Purchasers, the Initial Deposit will be transferred to the Escrow Agent by wire transfer of immediately available
funds in accordance with the following wire transfer instructions: 
 Bank Name: The Bank of New York Mellon 

Account Name: Corporate Trust Agency 
 ABA # 021000018 
 Account # GLA 111-565 For further credit to TAS # 538766

 Ref: Tempur-Pedic Int’l Escrow 
 Attn: Jill Wiesner 
 Phone: 904-998-4711 

If, upon termination of this Agreement and after any required liquidation or distribution of Escrow Property for the benefit of any
person other than the Grantor pursuant to Section 1.05 hereof, any Escrow Property consists of assets other than cash and is to be released to the Grantor, the Escrow Agent shall cause the liquidation of such Escrow Property into cash and
distribute it to the Grantor pursuant to this Section 1.07 unless the Grantor has provided a prior written request to the Escrow Agent not to liquidate such Escrow Property and to deliver such non-cash Escrow Property in kind to the Grantor at
such account(s) or location(s) specified by the Grantor in such written request. If the Escrow Agent receives such a request, it shall cause the delivery of such non-cash Escrow Property to the Grantor as promptly as practicable. No request by the
Grantor pursuant to this paragraph shall constitute an “Entitlement Order” or instruction with respect to the Escrow Property prior to the termination of this Agreement. 

Section 1.08. Compensation. 
 (a) Upon execution of this Agreement, the Grantor will pay to the extent invoiced (including the documentation reasonably supporting such request) the Escrow Agent for its services in accordance with the
fee schedule agreed to by and between the Grantor and the Escrow Agent. 

  
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 (b) The fees agreed upon for the services rendered hereunder is intended as full
compensation for the Escrow Agent’s services as contemplated by this Agreement; provided, however, that in the event that the Escrow Agent renders any service not contemplated in this Agreement, or there is any assignment of
interest in the subject matter of this Agreement, or any material modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is made a party to any litigation pertaining to this Agreement or the subject matter hereof,
then, to the extent not arising from the Escrow Agent’s own gross negligence or willful misconduct, the Escrow Agent shall be compensated for such extraordinary services and reimbursed for all reasonable costs and out-of-pocket expenses,
including reasonable attorneys’ fees and out-of-pocket expenses of one legal counsel, occasioned by any such delay, controversy, litigation or event. 
 (c) If any reasonable fees, expenses or costs incurred by, or any obligations owed to the Escrow Agent (or its one legal counsel) hereunder are not paid when due, the Escrow Agent may set off against any
Escrow Property released to the Grantor from this escrow in accordance with Section 1.05 hereof. The Escrow Agent shall have no right to set off against, and hereby waives any lien it may otherwise have against, any Escrow Property prior to its
release from escrow or which is released or to be released to a person other than the Grantor in accordance with the terms of this Agreement. The Grantor shall remain liable for any unpaid reasonable fees, expenses or costs incurred by, or any
obligations owed to the Escrow Agent (or its counsel) hereunder. 
 (d) The obligations of the Grantor contained in this
Section 1.08 will survive the termination of this Agreement or the earlier resignation or removal of the Escrow Agent. 

ARTICLE 2 

TERMS AND CONDITIONS 
 Section 2.01. Rights, Duties and Immunities of Escrow Agent. 
 (a)
Scope of duties. The duties, responsibilities and obligations of the Escrow Agent will be limited to those expressly set forth herein and no duties, responsibilities or obligations will be inferred or implied. The Escrow Agent will not be
required to inquire as to the performance or observation of any obligation, term or condition under any other agreement or arrangement to which the Grantor is a party, even though reference thereto may be made herein. The Escrow Agent will not be
required to comply with any direction or instruction (other than those 

  
 14 

 
contained herein or delivered in accordance with this Agreement) from the Grantor or any entity acting on its behalf. The Escrow Agent will not be required to, and will not, expend or risk any of
its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. 
 (b) Limitation
on liability. The Escrow Agent will not be liable for any action taken or omitted or for any loss or injury resulting from its actions or its performance or lack of performance of its duties hereunder in the absence of gross negligence or
willful misconduct on its part. In no event will the Escrow Agent be liable (i) for any consequential, punitive, special or indirect damages, regardless of the form of action and whether or not any such damages were foreseeable and
contemplated, (ii) for an amount in excess of the value of the Escrow Property and (iii) for any liability in connection with the investment or reinvestment of any cash held by it hereunder in accordance with the terms hereof, including
without limitation any liability for any delays (not resulting from its gross negligence or willful misconduct) in the investment, reinvestment or liquidation of the Escrow Property, or any loss of interest or income incident to any such delay. The
Escrow Agent may perform any of its duties through its agents, representatives, attorneys, custodians and/or nominees and the Escrow Agent shall not be responsible for any misconduct or negligence on the part of any agent, representative, attorneys,
custodians or nominees appointed with due care. 
 (c) Further limitation on liability. The Escrow Agent will not incur
any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the reasonable control of the Escrow Agent (including but not limited to any act or provision of any present
or future law or regulation or governmental authority, any act of God or war, or earthquakes, fire, flood, acts of terrorism, civil or military disturbances, sabotage, epidemic, riots, accidents, labor disputes, interruptions, loss or malfunctions
of utilities, computer (hardware or software), the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility). 
 (d) Right to consult counsel. The Escrow Agent may consult with legal counsel of its own choosing, at the reasonable expense of the Grantor (to the extent documented) in accordance with
Section 1.08 hereof, as to any matter relating to this Agreement, and the Escrow Agent will not incur any liability in acting in good faith in accordance with any advice from such counsel. 

(e) Duty of care. The Escrow Agent will not be under any duty to give the Escrow Property held by it hereunder any greater degree
of care than it gives its own similar property and will not be required to invest any funds held hereunder except as directed in accordance with this Agreement. Uninvested funds held hereunder will not earn or accrue interest and the Escrow Agent
will have no liability for the failure of uninvested funds to earn or accrue interest. 

  
 15 

 (f) Collection. All funds and other property deposited into the Account or otherwise
collected for deposit therein will be subject to the Escrow Agent’s usual collection practices or terms regarding items received by the Escrow Agent for deposit or collection. The Escrow Agent will not be required, or have any duty, to notify
any Person of any payment or maturity under the terms of any instrument deposited hereunder, or to take any legal action to enforce payment of any check, note or security deposited hereunder or to exercise any right or privilege that may be afforded
to the holder of any such security. 
 (g) Statements. The Escrow Agent will cause the Financial Institution to provide
to the Grantor and the Trustee monthly statements identifying transactions, transfers or holdings of Escrow Property, and each such statement will be deemed to be correct and final, absent manifest error, upon receipt thereof by the Grantor and the
Trustee unless the Escrow Agent is notified by the Grantor or the Trustee in writing to the contrary within 45 Business Days of the date of such statement. 
 (h) Disclaimer with respect to Escrow Property. The Escrow Agent will not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities deposited
into escrow or held hereunder, or for any description therein, or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security or endorsement. The Escrow Agent makes no
representation as to the validity, value, genuineness or the collectability of any security or other document or instrument held by or delivered to it. The Escrow Agent will not be called upon to advise any party as to the wisdom in selling or
retaining or taking or refraining from any action with respect to any securities or other property deposited hereunder. Neither the Trustee nor the Escrow Agent shall be responsible for and make no representation as to the legality, effectiveness or
sufficiency of this Agreement as a security document. Neither the Trustee nor the Escrow Agent shall be responsible for filing any financing or continuation statements under the Code, or recording any documents or instruments in any public office at
any time or times or otherwise perfecting or maintaining the perfection of any lien or security interest in the Account or any assets therein. 
 (i) Ambiguity or uncertainty. In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by the Escrow Agent hereunder, the Escrow Agent
may, in its reasonable sole discretion, refrain from taking any action other than retaining possession of the Escrow Property, unless the Escrow Agent receives written instructions, signed by each of the Grantor, the Trustee and the Representative
which eliminates such ambiguity or uncertainty. 
 (j) Conflicting claims. In the event of any dispute between or
conflicting claims by or among the Grantor and/or any other person or entity with 

  
 16 

 
respect to any Escrow Property, the Escrow Agent will be entitled, in its reasonable sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such
Escrow Property so long as such dispute or conflict continues, and the Escrow Agent will not be or become liable in any way to the Grantor for failure or refusal to comply with such conflicting claims, demands or instructions. The Escrow Agent will
be entitled to refuse to act until, in its reasonable sole discretion, either (i) such conflicting or adverse claims or demands have been determined by a final order, judgment or decree of a court of competent jurisdiction, which order,
judgment or decree is not subject to appeal, or settled by agreement between the conflicting parties as evidenced in a writing satisfactory to the Escrow Agent or (ii) the Escrow Agent has received security or an indemnity reasonably
satisfactory to it sufficient to hold it harmless from and against any and all Losses (as defined in Section 2.02 hereof) which it may incur by reason of so acting. The Escrow Agent may, in addition, elect, in its sole discretion, to commence
an interpleader action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary. The reasonable and documented out-of-pocket costs and expenses (including reasonable and documented attorneys’ fees and
out-of-pocket expenses of one counsel) incurred in connection with such proceeding will be paid by, and will be solely an obligation of, the Grantor. 
 (k) Compliance with judicial orders. If at any time the Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process
that in any way affects the Escrow Property, including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of the Escrow Property (an “Order”), the Escrow
Agent is authorized to comply therewith in any manner as it or its legal counsel of its own choosing deems necessary, provided that the Escrow Agent shall, prior to taking any such action in respect of the Order, promptly notify the Grantor and the
Trustee of such Order to allow the Grantor (with the consent of the Trustee, acting at the direction of the Initial Purchasers) to seek an appropriate order or waive compliance with the provisions of this Agreement; and if the Escrow Agent complies
with this Section 2.01(k) and any such Order, the Escrow Agent will not be liable to any of the parties hereto or to any other person or entity even though such Order may be subsequently modified or vacated or otherwise determined to have been
without legal force or effect. 
 (l) Right to rely on communications. The Escrow Agent will be entitled to conclusively
rely upon any order, judgment, certification, demand, instruction, notice, instrument or other writing delivered to it hereunder without being required to determine the authenticity or the correctness of any fact stated therein or the propriety or
validity or the service thereof. The Escrow Agent may act in conclusive reliance upon any instrument or signature reasonably believed by it in good faith to be genuine and may assume that any person purporting to give

  
 17 

 
receipt or advice to make any statement or execute any document in connection with the provisions hereof has been duly authorized to do so. When the Escrow Agent acts on any information,
instructions, communications (including, but not limited to, communications with respect to the delivery of securities or the wire transfer of funds) sent by facsimile, email or other form of electronic or data transmission, the Escrow Agent, absent
gross negligence or willful misconduct, will not be responsible or liable in the event such communication is not an authorized or authentic communication of the Grantor or the Trustee, as the case may be, or is not in the form the Grantor or the
Trustee sent or intended to send (whether due to fraud, distortion or otherwise). Pursuant to Section 2.02 hereof, the Grantor will indemnify the Escrow Agent against any Losses (as such term is defined in Section 2.02 hereof) it may incur
as a result of acting in accordance with any such communication. 
 (m) Right to request instruction. At any time the
Escrow Agent may request an instruction in writing from the Grantor and the Trustee and may, at its own option, include in such request the course of action it proposes to take and the date on which it proposes to act, regarding any matter arising
in connection with its duties and obligations hereunder. The Escrow Agent will not be liable for acting in accordance with such a proposal on or after the date specified therein; provided that (i) the specified date will be at least five
Business Days after each of the Grantor and the Trustee receives the Escrow Agent’s request for instructions and its proposed course of action and (ii) prior to so acting, the Escrow Agent has not received the written instructions
requested. 
 (n) Liability for taxes. Except as otherwise set forth herein, the Escrow Agent does not have any interest
in the Escrow Property deposited hereunder but is serving as escrow holder only and having only possession thereof. The Grantor will pay or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrow Property
incurred in connection herewith and will indemnify and hold harmless the Escrow Agent with respect to any amounts that it is obligated to pay in the way of such taxes, in each case to the reasonable satisfaction of the Escrow Agent. Any payments of
income from the Account will be subject to withholding regulations then in force with respect to United States taxes. The Grantor will provide the Escrow Agent with appropriate W-9 forms for tax identification number certifications, or W-8 forms for
non-resident alien certifications, as requested. It is understood that the Escrow Agent will be responsible for income reporting only with respect to income earned on investment of funds which are a part of the Escrow Property and is not responsible
for any other reporting. The provisions of this Section 2.01(n) will survive the termination of this Agreement or the earlier resignation or removal of the Escrow Agent. 
 (o) Extension of rights of Escrow Agent. The rights, privileges, protections, immunities and benefits given to the Escrow Agent, including 

  
 18 

 
without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Escrow Agent in each of its capacities hereunder, including in its capacity as Financial
Institution, and each agent, custodian and other Person employed to act hereunder. 
 (p) Right Not Duty Undertaken. The
permissive rights of the Escrow Agent to do things enumerated in this Agreement shall not be construed as duties. 

Section 2.02. Indemnity. The Grantor will be liable for and will reimburse and indemnify the Escrow Agent and hold the Escrow
Agent and its directors, officers, employees and agents harmless from and against any and all claims, actual losses, liabilities, reasonable costs, damages or reasonable expenses (including reasonable and documented attorneys’ fees and
out-of-pocket expenses of one legal counsel) (collectively, “Losses”) arising from or in connection with or related to this Agreement or being the Escrow Agent hereunder; provided, however, that notwithstanding
anything to the contrary in this Agreement, the Escrow Agent shall not be indemnified for (i) Losses caused by its gross negligence or willful misconduct and (ii) any consequential, punitive, special or indirect Losses, regardless of the
form of action and whether or not any such Losses were foreseeable and contemplated. The provisions of this Section 2.02 will survive the termination of this Agreement or the earlier resignation or removal of the Escrow Agent. 

Section 2.03. Resignation and Removal of Escrow Agent. (a) The Grantor may remove the Escrow Agent at any time by giving
to the Escrow Agent and the Trustee 15 days’ prior notice in writing signed by the Grantor. The Escrow Agent may resign at any time by giving to the Grantor and the Trustee 15 days’ prior written notice thereof. 

(b) Within 10 days after giving the foregoing notice of removal to the Escrow Agent or receiving the foregoing notice of resignation from
the Escrow Agent, the Grantor will appoint a successor escrow agent, upon notice to the Trustee. The Grantor will cause any successor escrow agent to assume the obligations of the Escrow Agent hereunder or to enter into such other escrow and
security agreement as may be reasonably acceptable to the Grantor, and any such other escrow and security agreement shall be administratively acceptable to the Trustee. If a successor escrow agent has not accepted such appointment by the end of such
10-day period or such successor escrow agent has not become so bound, the Escrow Agent may, in its sole discretion, deliver the Escrow Property to the Trustee at the address provided herein or may apply to a court of competent jurisdiction for the
appointment of a successor escrow agent or for other appropriate relief. The reasonable and documented out-of-pocket costs and expenses (including reasonable and documented attorneys’ fees and out-of-pocket expenses of one legal counsel)
incurred by the Escrow Agent in connection with such proceeding will be paid by, and be deemed to be solely an obligation of, the Grantor. 

  
 19 

 (c) Upon receipt of the identity of the successor escrow agent, the Escrow Agent will either
deliver the Escrow Property then held hereunder to the successor escrow agent or hold such Escrow Property (or any portion thereof), pending distribution, until all such fees, costs and expenses or other obligations owing to the Escrow Agent under
this Agreement are paid. Upon delivery of the Escrow Property to the successor escrow agent, the Escrow Agent will have no further duties, responsibilities or obligations hereunder. 

(d) Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or to
which it may sell or transfer all or substantially all of its escrow business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which
the Escrow Agent is a party, shall be and become the successor escrow agent under this Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing of any
instrument or paper or the performance of any further act. 
 Section 2.04. Termination. This Agreement will
automatically terminate (and all liens and security interests in the Escrow Property shall be released automatically) upon the distribution of all Escrow Property from the Account in accordance with the provisions of Section 1.05 hereof, except
such provisions of this Agreement that by their express terms survive the termination of this Agreement and/or the resignation or removal of the Escrow Agent. Upon termination of this Agreement, all security interest of the Trustee for the benefit
of the holders of the Notes granted pursuant to, and described in, Section 1.03 of this Agreement shall automatically terminate without any further action. The Trustee shall at the reasonable request and expense of the Grantor take all steps
reasonably necessary to terminate any financing statements that have not been terminated pursuant to Section 1.03(g) hereof and shall execute such other documents as the Grantor may reasonably request in writing to evidence or confirm the
termination of such security interest. 
 ARTICLE 3 
 MISCELLANEOUS 
 Section 3.01. Notices. All notices and
other communications under this Agreement will be in writing in English and will be deemed given (a) on the date of delivery when delivered personally, (b) upon the date of delivery when mailing such notice first class (postage prepaid) at
the addresses set forth in Section 1.06 hereof (or to such other address as a party may have specified by notice given to 

  
 20 

 
the other parties pursuant to this provision), (c) upon delivery when delivered by electronic means (which electronically transmitted copy will be followed by personal, mail or courier
delivery of an original), and (d) on the next Business Day after delivery to a recognized overnight courier or mailed first class (postage prepaid) or when sent by facsimile to the parties (which facsimile copy will be followed by personal,
mail or courier delivery of an original) at the addresses set forth in Section 1.06 hereof (or to such other address as a party may have specified by notice given to the other parties pursuant to this provision). Whenever under the terms hereof
the time for giving a notice or performing an act falls upon a day that is not a Business Day, such time will be extended to the next Business Day. Attached as Schedule 3.01 hereto and made a part hereof is a list of those persons initially entitled
to give notices, instructions and other communications to the Trustee and/or the Escrow Agent on behalf of the Grantor hereunder (each such representative, an “Authorized Person”). Schedule 3.01 may be amended from time to time by
written notice from the Grantor to the Escrow Agent and the Trustee, with a copy to the Initial Purchasers. 

Section 3.02. Representations and Warranties. Each of the Grantor, the Trustee, the Financial Institution and the Escrow
Agent hereby represents and warrants (a) that this Agreement has been duly authorized, executed and delivered on its behalf and constitutes its legal, valid and binding obligation (subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law) and (b) that the execution, delivery and performance of this
Agreement by it does not and will not violate any applicable material law or regulation governing it and, in the case of the Trustee, its corporate trust powers. 
 Section 3.03. Governing Law; Consent to Jurisdiction; Construction. (a) THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE RELATING TO OR ARISING OUT OF THIS AGREEMENT WILL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

(b) The Financial Institution’s jurisdiction for purposes of Sections 8-110 and 9-304 of the Code will be the State of New York.

 (c) Each party hereto irrevocably agrees that any legal action or proceeding arising out of or based upon this Agreement or
the transactions contemplated hereby will be brought in the federal or state courts located in the Borough of Manhattan in the City of New York, and irrevocably submits to the exclusive jurisdiction of such courts in any such action or proceeding.
The parties 

  
 21 

 
hereby irrevocably and unconditionally waive any objection to the laying of venue of any lawsuit, action or other proceeding in any such court, and hereby further irrevocably and unconditionally
waive and agree not to plead or claim in any such court that any such lawsuit, action or other proceeding brought in any such court has been brought in an inconvenient forum. The parties further agree that service of any process, summons, notice or
document by certified or registered mail, return receipt requested, to such party’s address set forth in Section 1.06 hereof (or directed to it at the address last specified for notices hereunder) will be effective service of process for
any lawsuit, action or other proceeding brought in any such court, and such service will be deemed completed 10 days after the same is so mailed. 
 (d) Time is of the essence in this Agreement. 
 (e) Except as set forth in
Section 1.03(c), capitalized terms that are used but not defined in this Agreement have the meanings assigned to them in the Indenture. The term “will” as used in this Agreement shall be interpreted to express a command. The term
“or” is not exclusive. Words in the singular include the plural and words in the plural include the singular. 
 (f)
The following capitalized terms shall have the following definitions in this Agreement: (i) “Securities Account” shall have the meaning set forth in Section 8-501(a) of the UCC: (ii) “Security
Entitlement” shall have the meaning set forth in Section 8-102(a)(17) of the UCC: (iii) “Securities Intermediary” shall have the meaning set forth in Section 8-102(a)(14) of the UCC; and
(iv) “UCC” means the Uniform Commercial Code as in effect in the State of New York. 

Section 3.04. Rights and Remedies. The rights and remedies conferred upon the parties hereto and the Initial Purchasers will
be cumulative, and the exercise or waiver of any such right or remedy will not preclude or inhibit the exercise of any additional rights or remedies. The waiver of any right or remedy hereunder will not preclude the subsequent exercise of such right
or remedy. 
 Section 3.05. Benefit of the Parties. This Agreement will be binding upon the parties hereto and each
of their permitted successors and assigns. This Agreement will inure solely to the benefit of the parties hereto, the Initial Purchasers and (subject to Section 3.06 hereof) each of their respective successors and assigns, and no other person
will have or be construed to have any legal or equitable right, remedy or claim under, in respect of, or by virtue of this Agreement. 
 Section 3.06. Assignment. This Agreement and the rights and obligations hereunder of parties hereto may not be assigned except with the prior written consent of the other parties hereto and
the Initial Purchasers, and any purported 

  
 22 

 
assignment without such consent will be null and void, except for the appointment of a successor Escrow Agent pursuant to Section 2.03 hereof, the appointment of a successor Trustee pursuant
to Section 7.08 of the Indenture or a Trustee succession under Section 7.09 of the Indenture. 
 Section 3.07.
Merger. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter contained herein and supersedes all prior oral or written agreements in regards thereto. 

Section 3.08. Amendment. Except as otherwise permitted herein and subject to the provisions of the Indenture, this Agreement
may be amended, supplemented or otherwise modified only by a written amendment signed by all the parties hereto, and no waiver of any provision hereof will be effective unless expressed in a writing signed by all of the parties hereto. 

Section 3.09. Severability. The invalidity, illegality or unenforceability of any provision of this Agreement will in no way
affect the validity, legality or enforceability of any other provision, and if any provision is held to be unenforceable as a matter of law, the other provisions will not be affected thereby and will remain in full force and effect. 

Section 3.10. Headings and Captions. The headings and captions included in this Agreement are included solely for convenience
of reference and will have no effect on the interpretation or operation of this Agreement. 
 Section 3.11.
Counterparts. This Agreement may be executed in one or more counterparts, each of which counterpart, when so executed and delivered, will be deemed to be an original and all such counterparts together will constitute one and the same instrument.
The exchange of copies of this Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement for
all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 Section 3.12. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY. 
 Section 3.13. U.S.A.
Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, the Financial Institution and the Escrow Agent like all financial institutions and in order to help fight the funding of
terrorism and money laundering, is required to obtain, verify, 

  
 23 

 
and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee, the Financial Institution and the Escrow Agent. The
parties to this Agreement agree that they will provide the Trustee, the Financial Institution and the Escrow Agent with such information as any of them may request in order for the parties to satisfy the requirements of the U.S.A. Patriot Act.

 Section 3.14. The Trustee. The Trustee has entered into this Agreement not in its individual capacity but solely
as Trustee under the Indenture and shall be entitled, in connection with its execution, delivery and performance of this Agreement, to all the rights, protections, immunities and exculpations available to it as Trustee under the Indenture. The
Trustee shall not be liable to the Escrow Agent or the Financial Institution for the payment of any amounts owing to them under this Agreement, payment of which amounts shall be the sole obligation of the Grantor. 

Section 3.15. The Financial Institution. In executing this Agreement as Financial Institution, The Bank of New York Mellon
Trust Company, N.A. executes for the sole and limited purpose of confirming that its duties as Escrow Agent under this Agreement shall extend to and include its responsibilities as “bank” and as “securities intermediary” under
the Code with respect to funds and financial assets on deposit in or credited to the Account. References herein to Financial Institution shall in all cases refer to the Escrow Agent acting solely in such capacities and shall under no circumstance be
construed to imply obligations against The Bank of New York Mellon Trust Company, N.A. in its personal or in any other capacity. 

[Signature page follows] 

  
 24 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by a duly
authorized officer as of the day and year first written above. 
  

			
	TEMPUR-PEDIC INTERNATIONAL INC.,
    as Grantor
		
	By:	 	 /s/ William H. Poche

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

  
 25 

 
			
	 THE BANK OF NEW YORK MELLON
     TRUST COMPANY, N.A.,
     as Escrow Agent and
Financial
     Institution

		
	By:	 	 /s/ Linda Garcia

	Name:	 	Linda Garcia
	Title:	 	Vice President
	
	 THE BANK OF NEW YORK MELLON
     TRUST COMPANY, N.A.,
     as
Trustee

		
	By:	 	 /s/ Linda Garcia

	Name:	 	Linda Garcia
	Title:	 	Vice President

  
 26 

 SCHEDULE 3.011 
 The specimen signatures shown below are the specimen signatures of the individuals who have been designated as authorized representatives of Tempur-Pedic International Inc. and are authorized to initiate
and approve transactions of all types for the escrow account or accounts established under the Escrow and Security Agreement to which this Schedule 3.01 is attached, on behalf of Tempur-Pedic International Inc. 

 

			
	 Name / Title
	 	 Specimen Signature

		
	 Dale E. Williams

 Name
  
 Executive Vice President and Chief Financial Officer

Title
	 	 /s/ Dale E. Williams

Signature
  

		
	 Lou H. Jones

 Name
  
 Executive Vice President, General Counsel and Secretary

Title
	 	  
 /s/ Lou H.
Jones
 Signature
  

		
	 William H. Poche

 Name
  
 Treasurer and Assistant Secretary

 Title
	 	 /s/ William H. Poche

Signature
  

  
  

	1 	 This Schedule 3.01 may be amended from time to time by written notice from the Grantor to the Escrow Agent, the Trustee and the Initial Purchasers.

 Schedule 3.01 

 EXHIBIT A 
 FORM OF OFFICERS’ CERTIFICATE 
 of 

TEMPUR-PEDIC INTERNATIONAL INC. 
 This certificate is being delivered to the Trustee and the Escrow Agent pursuant to Section 1.05(b) of the Escrow and Security Agreement, dated as of December 19, 2012 (the “Escrow and
Security Agreement”), among Tempur-Pedic International Inc., a Delaware corporation (the “Grantor”), The Bank of New York Mellon Trust Company, N.A., as escrow agent and financial institution (in such capacity, the
“Escrow Agent”), and The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture referred to below (in such capacity, the “Trustee”). Capitalized terms used but not defined herein have the
respective meanings specified in the Escrow and Security Agreement, including by reference to the Indenture described therein. The Grantor, hereby instructs the Escrow Agent to liquidate and release the Escrow Property as follows:
(A) $7,500,0002 to Merrill Lynch, Pierce,
Fenner & Smith Incorporated and (B) the balance to the Grantor, both in accordance with Section 1.07 of the Escrow and Security Agreement. The Grantor hereby certifies through the undersigned officers that all of the following
conditions have been met or will be satisfied simultaneously or substantially concurrently with the release of the Escrow Property: 
  

	 	1.	The Acquisition, as described under “Summary—The Transactions” in the Offering Memorandum, has been consummated pursuant to the Sealy Merger Agreement
(as defined in the Indenture), without giving effect to any amendment, change or supplement or waiver of any provision thereunder after December 19, 2012 in any manner that is materially adverse to the interests of the holders of the Notes (as
reasonably determined by the Grantor), it being understood that (a) a reduction of the purchase price in respect of the Acquisition will be deemed to be materially adverse to the interests of the holders of the notes (other than to the extent
any such reduction is less than 10% of the purchase price as of December 19, 2012 and such reduction is applied to reduce the amount of Debt to be outstanding on the Escrow Release Date) and (b) notwithstanding anything in clause
(a) to the contrary, any amendment, change, supplement, waiver or consent permitting the disposition of assets of the Grantor, Sealy or any of their respective subsidiaries deemed necessary or advisable (as determined by the board of directors
of the Grantor in its 

  

	2 	 Deferred Discount owed to Initial Purchasers pursuant to Purchase Agreement.

  
 A-1

	 	
reasonable judgment) to achieve required regulatory approval of the Acquisition shall not be materially adverse to the interests of the holders of the Notes; provided that the joint lead
arrangers under the Credit Agreement entered into on or about the Issue Date shall have consented to any such disposition; 

  

	 	2.	The Credit Agreement entered into on or about the Issue Date has become effective and all conditions precedent to initial funding have been satisfied or waived;

  

	 	3.	Each of the Grantor’s Domestic Restricted Subsidiaries that is a borrower under or guarantees the Credit Agreement (including Sealy and its applicable
Subsidiaries) has guaranteed the Notes pursuant to the Indenture or a supplemental indenture to the Indenture and, as applicable, has signed a joinder agreement to the Purchase Agreement and the Registration Rights Agreement with respect to the
Notes (in each case in the form attached thereto) and delivered the certificates and opinions required under Section 3(o)(i), (vi) and (vii) of the Purchase Agreement and the Company has made the required payment thereunder; and

  

	 	4.	The Grantor has consummated the other Transactions on substantially the terms described under “The Transactions” in the Offering Memorandum dated as of
December 12, 2012 relating to the Notes. 

 The Grantor hereby further certifies through the undersigned officers that
certain steps set forth above will occur substantially concurrently with the release of funds from the Account. 
 [Signature
page follows] 

  
 A-2

 IN WITNESS WHEREOF, the Grantor through two Authorized Persons, has signed
this Certificate this [    ] day of [        ], 20[    ]. 
  

			
	TEMPUR-PEDIC INTERNATIONAL INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 EXHIBIT B 
 Agency and Custody Account Direction 
 For Cash Balances 

Direction to use the following BNY Mellon Interest Bearing Deposit Account for Cash Balances for the escrow account or accounts (the
“Account”) established under the Escrow and Security Agreement to which this Exhibit B is attached. 
 You are
hereby directed to deposit, as indicated below, or as either of the undersigned shall direct further in writing from time to time, all cash in the Account in the following interest bearing deposit account of The Bank of New York Mellon Trust
Company, N.A.: 
 The BNY Mellon Cash Reserve (“cash reserve”) 

Security #S87599610 
 Each of the undersigned understand that amounts on deposit in the cash reserve are insured, subject to the applicable rules and regulations of the Federal Deposit Insurance Corporation
(“FDIC”), in the basic FDIC insurance amount of $250,000 per depositor, per insured bank. This includes principal and accrued interest up to a total of $250,000. 

Each of the undersigned acknowledges that he has full power to direct investments of the Account. 

Each of the undersigned understands that he may change this direction at any time and that it shall continue in effect until revoked or
modified by either of the undersigned by written notice to you. 
  

			
	Authorized Representative	 	Authorized Representative
		
	Date	 	Date

  
 B-1

 EXHIBIT C 
 FORM OF TERMINATION NOTICE 
 of 

TEMPUR-PEDIC INTERNATIONAL INC. 
 Reference is hereby made to the Escrow and Security Agreement dated as of December 19, 2012 (the “Escrow and Security Agreement”) among Tempur-Pedic International Inc., a Delaware
corporation (the “Grantor”), The Bank of New York Mellon Trust Company, N.A., as escrow agent and financial institution (in such capacity, the “Escrow Agent”), and The Bank of New York Mellon Trust Company, N.A., as
trustee under the Indenture referred to below (in such capacity, the “Trustee”). Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Escrow and Security Agreement, including by
reference to the Indenture described therein. 
 Notice is hereby given by the Grantor to the Escrow Agent and the Trustee, as
of the date hereof, that [the Grantor will not pursue the consummation of the Acquisition] / [the Sealy Merger Agreement has been amended, changed, supplemented or waived in a manner that is materially adverse to holders of the Notes, it being
understood that (a) a reduction of the purchase price in respect of the Acquisition will be deemed to be materially adverse to the interests of the holders of the notes (other than to the extent any such reduction is less than 10% of the
purchase price as of December 19, 2012 and such reduction is applied to reduce the amount of Debt to be outstanding on the Escrow Release Date) and (b) notwithstanding anything in clause (a) to the contrary, any amendment, change,
supplement, waiver or consent permitting the disposition of assets of the Grantor, Sealy or any of their respective subsidiaries deemed necessary or advisable (as determined by the board of directors of the Grantor in its reasonable judgment) to
achieve required regulatory approval of the Acquisition shall not be materially adverse to the interests of the holders of the notes; provided that the joint lead arrangers under the Credit Agreement entered into on or about the Issue Date
shall have consented to any such disposition]. Pursuant to the terms of the Indenture, a special mandatory redemption pursuant to the provision contained in Section 3.07 of the Indenture will be made on
[            ], 20[    ] (the “Redemption Date”), in an amount equal to 100% of the aggregate principal amount of the Notes plus accrued and unpaid
interest thereon from the date of issuance of the Notes to, but excluding, the Redemption Date (the “Termination Redemption Price”). 
 Pursuant to the terms of the Escrow and Security Agreement, the Escrow Agent is hereby instructed, prior to 11:00 a.m. (New York City time) on the Redemption Date, to liquidate and release:

 (a) $[        ], representing the Termination Redemption Price, to the Trustee by wire transfer of
immediately available funds at: [            ]; and 

  
 C-1

 (b) after payment of the Termination Redemption Price to the Trustee, the remainder of
all available Escrow Property to (i) Merrill Lynch, Pierce, Fenner & Smith Incorporated in an amount equal to $[        ]3 in accordance with the wire transfer instructions set forth in Section 1.07 of the Escrow and Security Agreement,
and (ii) the Grantor by wire transfer of immediately available funds at: [            ]. 
  

 

	3 	 Documented out-of-pocket expenses of Initial Purchasers pursuant to Section 6 of the Purchase Agreement. 

  
 C-2

 IN WITNESS WHEREOF, the Grantor has caused this Termination Notice to be duly executed and
delivered as of this [    ] day of [        ], 20[    ]. 
  

			
	TEMPUR-PEDIC INTERNATIONAL INC.
		
	By:	 	 
	Name:	 	
	Title:	 	
		
	By:	 	 
	Name:	 	
	Title:

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