Document:

Exchange and Registration Rights Agreement

 Exhibit 4.2 
  
 Execution Copy 
  
 Brookstone Company, Inc. 
  
 12.00% Second Lien Senior Secured Notes due 2012 
  
 unconditionally guaranteed as to the 
 payment of principal, premium, if any, and interest by 
  
 the Guarantors named on Schedule I hereto 
  
 Exchange and Registration Rights Agreement 
  
 October 4, 2005 
  
 Goldman,
Sachs & Co. 
 As representative of the Purchasers 
 (as defined herein) 
 c/o Goldman, Sachs & Co. 
 85 Broad Street 
 New York, New York 10004 
  
 Ladies and Gentlemen: 
  
 Brookstone Company, Inc., a New Hampshire corporation (the “Company”), proposes to issue and sell to the Purchasers (as defined herein) upon the
terms set forth in the Purchase Agreement (as defined herein) its 12.00% Second Lien Senior Secured Notes due 2012, which are unconditionally guaranteed by the Guarantors (as defined herein). As an inducement to the Purchasers to enter into the
Purchase Agreement and in satisfaction of a condition to the obligations of the Purchasers thereunder, the Company and the Guarantors agree with the Purchasers for the benefit of holders (as defined herein) from time to time of the Registrable
Securities (as defined herein) as follows: 
  
 1. Certain
Definitions. For purposes of this Exchange and Registration Rights Agreement, the following terms shall have the following respective meanings: 
  
 “Base Interest” shall mean the interest that would otherwise accrue on the Securities under the terms thereof and the
Indenture, without giving effect to the provisions of this Agreement. 
  
 The term “broker-dealer” shall mean any broker or dealer registered with the Commission under the Exchange Act. 
  

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 “Closing Date” shall mean the date on which the Securities are initially
issued. 
  
 “Commission” shall
mean the United States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 
  
 “Effective Time,” in the case of
(i) an Exchange Registration, shall mean the time and date as of which the Commission declares the Exchange Registration Statement effective or as of which the Exchange Registration Statement otherwise becomes effective and (ii) a Shelf
Registration, shall mean the time and date as of which the Commission declares the Shelf Registration Statement effective or as of which the Shelf Registration Statement otherwise becomes effective. 
  
 “Electing Holder” shall mean any holder of
Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(d)(ii) or 3(d)(iii) hereof. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, or any successor thereto, as
the same shall be amended from time to time. 
  
 “Exchange Offer” shall have the meaning assigned thereto in Section 2(a) hereof. 
  
 “Exchange Registration” shall have the meaning assigned thereto in Section 3(c) hereof. 
  
 “Exchange Registration Statement” shall
have the meaning assigned thereto in Section 2(a) hereof. 
  
 “Exchange Securities” shall have the meaning assigned thereto in Section 2(a) hereof. 
  
 “Guarantors” shall have the meaning assigned thereto in the Indenture. 
  
 The term “holder” shall mean each of the
Purchasers and other persons who acquire Registrable Securities from time to time (including any successors or assigns), in each case for so long as such person owns any Registrable Securities. 
  
 “Indenture” shall mean the Indenture, dated
as of October 4, 2005, between the Company, the Guarantors and Wells Fargo Bank, N.A., as Trustee, as the same shall be amended from time to time. 
  
 “Notice and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Questionnaire
substantially in the form of Exhibit A hereto. 
  
 The term “person” shall mean a corporation, association, partnership, trust, organization, business, individual, government or political subdivision thereof or governmental agency. 
  
 “Purchase Agreement” shall mean the
Purchase Agreement, dated as of September 23, 2005, between the Purchasers, the Guarantors and the Company relating to the Securities. 
  
 “Purchasers” shall mean the Purchasers named in Schedule I to the Purchase Agreement. 
  
 “Registrable Securities” shall mean the
Securities; provided, however, that a Security shall cease to be a Registrable Security when (i) in the circumstances contemplated by Section 2(a) hereof, the Security has been exchanged for an Exchange Security in an 

  

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Exchange Offer as contemplated in Section 2(a) hereof (provided that any Exchange Security that, pursuant to the last two sentences of
Section 2(a), is included in a prospectus for use in connection with resales by broker-dealers shall be deemed to be a Registrable Security with respect to Sections 5, 6 and 9 until resale of such Registrable Security has been effected during
the period which broker-dealers are required to comply with the prospectus delivery requirements in connection with offers and sales of the Exchange Securities); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf
Registration Statement registering such Security under the Securities Act has been declared or becomes effective and such Security has been sold or otherwise transferred by the holder thereof pursuant to and in a manner contemplated by such
effective Shelf Registration Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances in which any legend borne by such Security relating to restrictions on transferability thereof, under the Securities Act or otherwise,
is removed by the Company or pursuant to the Indenture; (iv) such Security is eligible to be sold pursuant to paragraph (k) of Rule 144; or (v) such Security shall cease to be outstanding. 
  
 “Registration Default” shall have the
meaning assigned thereto in Section 2(c) hereof. 
  
 “Registration Expenses” shall have the meaning assigned thereto in Section 4 hereof. 
  
 “Resale Period” shall have the meaning assigned thereto in Section 2(a) hereof. 
  
 “Restricted Holder” shall mean (i) a
holder that is an affiliate of the Company within the meaning of Rule 405, (ii) a holder who acquires Exchange Securities outside the ordinary course of such holder’s business, (iii) a holder who has arrangements or understandings
with any person to participate in the Exchange Offer for the purpose of distributing Exchange Securities and (iv) a holder that is a broker-dealer, but only with respect to Exchange Securities received by such broker-dealer pursuant to an
Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer directly from the Company. 
  
 “Rule 144,” “Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated under the
Securities Act (or any successor provision), as the same shall be amended from time to time. 
  
 “Securities” shall mean, collectively, the 12.00% Second Lien Senior Secured Notes due 2012 of the Company to be issued
and sold to the Purchasers, and securities issued in exchange therefor or in lieu thereof pursuant to the Indenture. Each Security is entitled to the benefit of the guarantee provided for in the Indenture (the “Guarantee”) and, unless the
context otherwise requires, any reference herein to a “Security,” an “Exchange Security” or a “Registrable Security” shall include a reference to the related Guarantee. 
  
 “Securities Act” shall mean the Securities
Act of 1933, or any successor thereto, as the same shall be amended from time to time. 
  
 “Shelf Registration” shall have the meaning assigned thereto in Section 2(b) hereof. 
  
 “Shelf Registration Statement” shall have
the meaning assigned thereto in Section 2(b) hereof. 
  
 “Special Interest” shall have the meaning assigned thereto in Section 2(c) hereof. 
  

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 “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder, all as the same shall be amended from time to time. 
  
 Unless the context otherwise requires, any reference herein to a “Section” or “clause” refers to a Section or clause, as the case may
be, of this Exchange and Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Exchange and Registration Rights Agreement as a whole and not to
any particular Section or other subdivision. 
  
 2.
Registration Under the Securities Act. 
  
 (a) Except as set forth in Section 2(b) below, the Company and the Guarantors agree to file under the Securities Act, as soon as practicable, but no later than 120 days after the Closing Date, a registration statement relating to an
offer to exchange (such registration statement, the “Exchange Registration Statement”, and such offer, the “Exchange Offer”) any and all of the Registrable Securities for a like aggregate principal amount of debt securities
issued by the Company and guaranteed by the Guarantors, which debt securities and guarantee are substantially identical to the Securities and the related Guarantee, respectively (and are entitled to the benefits of a trust indenture which is
substantially identical to the Indenture or is the Indenture and which has been qualified under the Trust Indenture Act (other than such changes to the Indenture or any such trust indenture as are necessary to comply with any requirements of the
Commission to effect or maintain the qualification thereof under the Trust Indenture Act or which eliminate the transfer restrictions on the Securities or provisions for the payment of additional interest contemplated in Section 2(c) below)),
except that they have been registered pursuant to an effective registration statement under the Securities Act and do not contain provisions for the additional interest contemplated in Section 2(c) below (such new debt securities hereinafter
called “Exchange Securities”). The Company and the Guarantors agree to use their commercially reasonable efforts to cause the Exchange Registration Statement to become effective under the Securities Act as soon as practicable, but no later
than 240 days after the Closing Date. The Exchange Offer will be registered under the Securities Act on the appropriate form and will comply with all applicable tender offer rules and regulations under the Exchange Act. The Company and the
Guarantors further agree to commence, and to use their commercially reasonable efforts to complete, the Exchange Offer promptly, but no later than 21 business days after such registration statement has become effective or such later date as is
required by the Securities Act, hold the Exchange Offer open for at least 20 business days and exchange Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn on or prior to the expiration of the
Exchange Offer. The Exchange Offer will be deemed to have been “completed” only if the debt securities and related guarantee received by holders other than Restricted Holders in the Exchange Offer for Registrable Securities are, upon
receipt, transferable by each such holder without restriction under the Securities Act and the Exchange Act and without material restrictions under the blue sky or securities laws of a substantial majority of the States of the United States of
America. The Exchange Offer shall be deemed to have been completed upon the earlier to occur of (i) the Company having exchanged the Exchange Securities for all outstanding Registrable Securities pursuant to the Exchange Offer and (ii) the
Company having exchanged, pursuant to the Exchange Offer, Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of the Exchange Offer, which shall be on a date that is at least 20
business days following the commencement of the Exchange Offer. The Company and the Guarantors agree (x) to include in the Exchange Registration Statement a prospectus for use in any resales by any 

  

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holder of Exchange Securities that is a broker-dealer and (y) to use their commercially reasonable efforts to keep such Exchange Registration Statement
effective for a period (the “Resale Period”) beginning when Exchange Securities are first issued in the Exchange Offer and ending upon the earlier of the expiration of the 180th day after the Exchange Offer has been completed or such time
as such broker-dealers are no longer required to comply with the prospectus delivery requirements in connection with offers and sales of the Exchange Securities. With respect to such Exchange Registration Statement, such holders shall have the
benefit of the rights of indemnification and contribution set forth in Sections 6(a), (c), (d) and (e) hereof. 
  
 (b) If (i) the Company is not permitted to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable
law or Commission policy; (ii) any holder of Registrable Securities notifies the Company in writing prior to the 20th day following consummation of the Exchange Offer that: (a) it is prohibited by applicable law in the United States or
policy of the Commission from participating in the Exchange Offer; (b) it may not resell the Exchange Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and the prospectus contained in the Exchange
Registration Statement is not appropriate or available for such resales or (c) it is a broker-dealer and owns Exchange Securities acquired directly from the Company or an affiliate of the Company, or (iii) on or prior to the time the
Exchange Offer is completed existing Commission interpretations are changed such that the debt securities or the related guarantee received by holders other than Restricted Holders in the Exchange Offer for Registrable Securities are not or would
not be, upon receipt, transferable by each such holder without restriction under the Securities Act, the Company and the Guarantors shall, in lieu of (or, in the case of clause (ii), in addition to) conducting the Exchange Offer contemplated by
Section 2(a), file under the Securities Act as soon as practicable, but no later than 120 days after the time such obligation to file arises, a “shelf” registration statement providing for the registration of, and the sale on a
continuous or delayed basis by the holders of, all applicable Registrable Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the “Shelf Registration” and such registration statement,
the “Shelf Registration Statement”). The Company and the Guarantors agree to use their commercially reasonable efforts (x) to cause the Shelf Registration Statement to become or be declared effective no later than 120 days after such
Shelf Registration Statement is filed and to keep such Shelf Registration Statement continuously effective for a period ending on the earlier of the second anniversary of the Effective Time or such time as there are no longer any applicable
Registrable Securities outstanding, provided, however, that no holder shall be entitled to be named as a selling securityholder in the Shelf Registration Statement or to use the prospectus forming a part thereof for resales of
Registrable Securities unless such holder is an Electing Holder, and (y) after the Effective Time of the Shelf Registration Statement, promptly upon the request of any holder of Registrable Securities that is not then an Electing Holder, take
any action reasonably necessary to enable any such holders to use the prospectus forming a part of the Shelf Registration Statement for resales of Registrable Securities, including, without limitation, any action necessary to identify such holder as
a selling security holder in the Shelf Registration Statement; provided, however, that the Company and the Guarantors shall not be obligated to amend the prospectus forming a part of the Shelf Registration Statement to update the selling
security holders named therein on more than one occasion in any ninety (90) day period, provided, further, however, that nothing in this clause (y) shall relieve any such holder of the obligation to return a completed and
signed Notice and Questionnaire to the Company in accordance with Section 3(d)(iii) hereof provided, further, that the failure of a Shelf Registration Statement to remain effective due to the filing of any amendment to such Shelf
Registration Statement pursuant to this clause (y) shall not 

  

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constitute a Registration Default (as defined below) or a breach of this Agreement, so long as the Company and the Guarantors use their commercially
reasonable efforts to cause such Shelf Registration Statement, as so amended, to be declared effective as soon as reasonably practicable, but in any event within 30 days of such failure to remain effective. The Company and the Guarantors further
agree to supplement or make amendments to the Shelf Registration Statement, as and when required by the rules, regulations or instructions applicable to the registration form used by the Company and the Guarantors for such Shelf Registration
Statement or by the Securities Act or rules and regulations thereunder for shelf registration, and the Company and the Guarantors agree to furnish to each Electing Holder copies of any such supplement or amendment prior to its being used or promptly
following its filing with the Commission. 
  
 (c)
In the event that (i) the Company and the Guarantors have not filed the Exchange Registration Statement or Shelf Registration Statement on or before the date on which such registration statement is required to be filed pursuant to
Section 2(a) or 2(b), respectively, or (ii) such Exchange Registration Statement or Shelf Registration Statement has not become effective or been declared effective by the Commission on or before the date on which such registration
statement is required to become or be declared effective pursuant to Section 2(a) or 2(b), respectively, or (iii) the Exchange Offer has not been completed within 21 business days after the initial effective date of the Exchange
Registration Statement relating to the Exchange Offer (if the Exchange Offer is then required to be made) or (iv) any Exchange Registration Statement or Shelf Registration Statement required by Section 2(a) or 2(b) hereof is filed and
declared effective but shall thereafter fail to be usable for its intended purposes, be withdrawn by the Company or shall become subject to an effective stop order issued pursuant to Section 8(d) of the Securities Act suspending the
effectiveness of such registration statement (except as specifically permitted herein) without being succeeded immediately by an additional registration statement filed and declared effective (each such event referred to in clauses (i) through
(iv), a “Registration Default” and each period during which a Registration Default has occurred and is continuing, a “Registration Default Period”), then, as liquidated damages for such Registration Default, subject to the
provisions of Section 9(b), special interest (“Special Interest”), in addition to the Base Interest, shall accrue at a per annum rate of 0.25% for the first 90 days of the Registration Default Period, which rate shall increase by an
additional 0.25% during each subsequent 90-day period, up to a maximum of 2.0%. Notwithstanding anything to the contrary set forth herein, (w) upon filing of the Exchange Registration Statement or the Shelf Registration Statement, as the case
may be, in the case of clause (i) above, (x) upon the effectiveness of the Exchange Registration Statement or the Shelf Registration Statement, as the case may be, in the case of clause (ii) above, (y) upon consummation of the
Exchange Offer, in the case of clause (iii) above, or (z) upon the occurrence of any event (including the filing of an appropriate amendment to the relevant Registration Statement, the declaring effective of another Registration Statement
or the taking of other appropriate action) that causes the Exchange Registration Statement or the Shelf Registration Statement, as the case may be, to again be declared effective or made usable in the case of clause (iv) above, the Special
Interest payable as a result of such clause (i), (ii), (iii) or (iv), as applicable, shall cease to accrue. Any amounts of Special Interest due pursuant to this Section 2(c) shall be payable by the Company to the Trustee, on behalf of the
holders of the relevant Securities, in cash on the interest payment dates specified in the relevant Securities, commencing with the first such interest payment date occurring after any such Special Interest commences to accrue. The Special Interest
provided for in this Section 2(c) shall be the exclusive monetary remedy available to holders of Securities for Registration Defaults. 
  

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 (d) The Company and the Guarantors shall use their commercially reasonable efforts to
take all actions reasonably necessary or advisable to be taken by them to ensure that the transactions contemplated herein are effected as so contemplated, including all actions reasonably necessary or desirable to register the Guarantees under the
registration statement contemplated in Section 2(a) or 2(b) hereof, as applicable. 
  
 (e) Any reference herein to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be
incorporated, therein by reference as of such time and any reference herein to any post-effective amendment to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by
reference as of such time. 
  
 3. Registration Procedures.

  
 If the Company and the Guarantors file a registration
statement pursuant to Section 2(a) or Section 2(b), the following provisions shall apply: 
  
 (a) At or before the Effective Time of the Exchange Offer or the Shelf Registration, as the case may be, the Company shall qualify either
the Indenture or such other substantially identical indenture under the Trust Indenture Act. 
  
 (b) In the event that such qualification would require the appointment of a new trustee under either the Indenture or such other
substantially identical indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture or such other substantially identical indenture. 
  
 (c) In connection with the Company and the Guarantor’s
obligations with respect to the registration of Exchange Securities as contemplated by Section 2(a) (the “Exchange Registration”), if applicable, the Company and the Guarantors shall, as soon as practicable (or as otherwise
specified): 
  
 (i) prepare and file with the
Commission, as soon as practicable but no later than 120 days after the Closing Date, an Exchange Registration Statement on any form which may be utilized by the Company and which shall permit the Exchange Offer and resales of Exchange Securities by
broker-dealers during the Resale Period to be effected as contemplated by Section 2(a), and use their commercially reasonable efforts to cause such Exchange Registration Statement to become effective as soon as practicable thereafter, but no
later than 240 days after the Closing Date; 
  
 (ii) as soon as reasonably practicable prepare and file with the Commission such amendments and supplements to such Exchange Registration Statement and the prospectus included therein as may be necessary to effect and maintain the
effectiveness of such Exchange Registration Statement for the periods and purposes contemplated in Section 2(a) hereof and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form
of such Exchange Registration Statement, and promptly provide each broker-dealer holding Exchange Securities with such number of copies of the prospectus included therein (as then amended or supplemented), in conformity in all material respects with
the requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder, as such broker-dealer reasonably may request prior to the expiration of the Resale Period, for use in connection with
resales of Exchange Securities; 
  

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 (iii) promptly notify each broker-dealer holding Exchange Securities that has requested
copies of the prospectus included in such registration statement, and confirm such advice in writing, (A) when such Exchange Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to such Exchange Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by the blue sky or securities commissioner or
regulator of any state with respect thereto or any request by the Commission for amendments or supplements to such Exchange Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop
order suspending the effectiveness of such Exchange Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company and the Guarantors
contemplated by Section 5 cease to be true and correct in all material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Exchange Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose, or (F) at any time during the Resale Period when a prospectus is required to be delivered under the Securities Act, that such Exchange Registration Statement,
prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission
thereunder or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  
 (iv) in the event that the Company would be required,
pursuant to Section 3(c)(iii)(F) above, to notify any broker-dealers holding Exchange Securities, without delay prepare and furnish to each such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter
delivered to purchasers of such Exchange Securities during the Resale Period, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of
the Commission thereunder and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing; 
  
 (v) use their commercially
reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Exchange Registration Statement or any post-effective amendment thereto at the earliest practicable date; 
  
 (vi) use their commercially reasonable efforts to
(A) register or qualify the Exchange Securities under the securities laws or blue sky laws of such jurisdictions as are contemplated by Section 2(a) no later than the commencement of the Exchange Offer, (B) keep such registrations or
qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period and (C) take any and all other actions as may be reasonably
necessary or advisable to enable each broker-dealer holding Exchange Securities to consummate the disposition thereof in such jurisdictions; provided, however, that neither the Company nor any of the Guarantors shall be required for
any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the 

  

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requirements of this Section 3(c)(vi), (2) consent to general service of process in any such jurisdiction, (3) take any other action that
would subject it to general service of process or to taxation in excess of a nominal amount in respect of doing business in any jurisdiction in which it is not otherwise subject or (4) make any changes to its organizational documents or any
agreement between it and its equityholders; 
  
 (vii) use their commercially reasonable efforts to obtain the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect the Exchange Registration, the Exchange Offer and
the offering and sale of Exchange Securities by broker-dealers during the Resale Period subject to the proviso in clause (vi) above; 
  
 (viii) provide a CUSIP number for all Exchange Securities, not later than the applicable Effective Time; and 
  
 (ix) comply with all applicable rules and regulations of the
Commission, and make generally available to its securityholders as soon as practicable but no later than eighteen months after the effective date of such Exchange Registration Statement, an earning statement of the Company and its subsidiaries
complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158 thereunder). 
  
 (d) In connection with the Company and the Guarantor’s obligations with respect to the Shelf Registration, if applicable, the Company
and the Guarantors shall, as soon as practicable (or as otherwise specified): 
  
 (i) prepare and file with the Commission, as soon as practicable but in any case within the time periods specified in Section 2(b), a Shelf Registration Statement on any form which may be utilized by the Company
and which shall register all of the applicable Registrable Securities for resale by the holders thereof in accordance with such method or methods of disposition as may be specified by such of the holders as, from time to time, may be Electing
Holders and use its commercially reasonable efforts to cause such Shelf Registration Statement to become effective as soon as practicable but in any case within the time periods specified in Section 2(b); 
  
 (ii) not less than 30 calendar days prior to the Effective
Time of the Shelf Registration Statement, mail the Notice and Questionnaire to the holders of Registrable Securities; no holder shall be entitled to be named as a selling securityholder in the Shelf Registration Statement as of the Effective Time,
and no holder shall be entitled to use the prospectus forming a part thereof for resales of Registrable Securities at any time, unless such holder has returned a completed and signed Notice and Questionnaire to the Company by the deadline for
response set forth therein; provided, however, holders of Registrable Securities shall have at least 28 calendar days from the date on which the Notice and Questionnaire is first mailed to such holders to return a completed and signed Notice
and Questionnaire to the Company; 
  
 (iii) after
the Effective Time of the Shelf Registration Statement, promptly upon the request of any holder of Registrable Securities that is not then an Electing Holder, take any action reasonably necessary to enable any such holders to use the prospectus
forming a part of the Shelf Registration Statement for resales of Registrable Securities, including, without limitation, any action necessary to identify such holder as a selling security holder in the Shelf Registration Statement; provided,

  

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however, that the Company and the Guarantors shall not be obligated to amend the prospectus forming a part of the Shelf Registration Statement to
update the selling security holders named therein on more than one occasion in any ninety (90) day period, provided, further however, that nothing in this Section shall relieve any such holder of the obligation to return a completed and
signed Notice and Questionnaire to the Company in accordance with Section 3(d)(iii) hereof, provided, further, that the failure of a Shelf Registration Statement to remain effective due to the filing of any amendment to such Shelf
Registration Statement pursuant to this Section shall not constitute a Registration Default or a breach of this Agreement, so long as the Company use its commercially reasonable efforts to cause such Shelf Registration Statement, as so amended, to
be declared effective as soon as reasonably practicable, but in any event within 30 days of such failure to remain effective; 
  
 (iv) as soon as practicable prepare and file with the Commission such amendments and supplements to such Shelf Registration Statement and
the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Shelf Registration Statement for the period specified in Section 2(b) hereof and as may be required by the applicable rules and regulations of
the Commission and the instructions applicable to the form of such Shelf Registration Statement, and promptly furnish to the Electing Holders copies of any such supplement or amendment; provided, however, that notwithstanding the
foregoing, the Company may allow any such Shelf Registration Statement to cease to become effective and usable for no more than 90 days in any 360 day period if (A) the Board of Directors of the Company determines in good faith that the failure
to take such action would impede, delay or otherwise interfere with any proposed or pending material corporate transaction involving the Company or that the failure to take such action would require the disclosure of material non-public information,
the disclosure of which at such time would not be in the best interests of the Company or its stockholders, and the Company notifies the holders within two business days after the Board of Directors makes such determination or (B) the
prospectus contained in any such Shelf Registration Statement contains an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading, provided that, the periods referred to in Section 2(b) hereof during which such Shelf Registration Statement is required to be effective and usable shall be extended by the number of days during which such Shelf
Registration Statement was not effective or usable pursuant to the foregoing provisions (but in no event past the second anniversary of the Effective Time); 
  
 (v) comply with the provisions of the Securities Act with respect to the disposition of all of the Registrable Securities covered by such
Shelf Registration Statement in accordance with the intended methods of disposition by the Electing Holders provided for in such Shelf Registration Statement; 
  

(vi) provide (A) the Electing Holders, (B) the underwriters (which term, for purposes of this Exchange and Registration
Rights Agreement, shall include a person deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act), if any, thereof, (C) any sales or placement agent therefor, (D) counsel for any such underwriter or
agent and (E) not more than one counsel for all the Electing Holders the opportunity to participate in the preparation of such Shelf Registration Statement, each prospectus included therein or filed with the Commission and each amendment or
supplement thereto; 
  

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 (vii) for a reasonable period prior to the filing of such Shelf Registration Statement,
and throughout the period specified in Section 2(b), make available at reasonable times at the Company’s principal place of business or such other reasonable place for inspection, during reasonable business hours, by the persons referred
to in Section 3(d)(vi) who shall certify to the Company that they have a current intention to sell the Registrable Securities pursuant to the Shelf Registration, such financial and other information and pertinent books and records of the
Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege), in
the judgment of the respective counsel referred to in such Section, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering
on behalf of the Electing Holders shall be conducted by one counsel designated by the holders of at least a majority in aggregate principal amount of the Registrable Securities held by the Electing Holders at the time outstanding and, provided
further, that each such party shall be required to maintain in confidence and not to disclose to any other person any information or records reasonably designated by the Company as being confidential, until such time as (A) such information
becomes a matter of public record (whether by virtue of its inclusion in such registration statement or otherwise) other than as a result of a disclosure or failure to safeguard by any such party, or (B) such person shall be required to
disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject to the requirements of such order, and only after such person shall have given the Company
prompt prior written notice of such requirement and allowed the Company to undertake appropriate action to obtain a protective order or otherwise prevent disclosure of the information at its expense), or (C) such information is required to be
set forth in such Shelf Registration Statement or the prospectus included therein or in an amendment to such Shelf Registration Statement or an amendment or supplement to such prospectus in order that such Shelf Registration Statement, prospectus,
amendment or supplement, as the case may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and does not contain an untrue statement of a material fact or omit to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  
 (viii) promptly notify each of the Electing Holders, any sales or placement agent therefor and any underwriter thereof (which notification
may be made through any managing underwriter that is a representative of such underwriter for such purpose) and confirm such advice in writing, (A) when such Shelf Registration Statement or the prospectus included therein or any prospectus
amendment or supplement or post-effective amendment has been filed, and, with respect to such Shelf Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by the
blue sky or securities commissioner or regulator of any state with respect thereto or any request by the Commission for amendments or supplements to such Shelf Registration Statement or prospectus or for additional information, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of such Shelf Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the
Company contemplated by Section 3(d)(xvii) or Section 5 cease to be true and correct in all 

  

 11 

 
material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, or (F) if at any time when a prospectus is required to be delivered under the Securities Act, that such Shelf Registration Statement,
prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission
thereunder or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  
 (ix) use their commercially reasonable efforts to obtain the
withdrawal of any order suspending the effectiveness of such registration statement or any post-effective amendment thereto at the earliest practicable date; 
  

(x) if requested by any managing underwriter or underwriters, any placement or sales agent or any Electing Holder, promptly incorporate
in a prospectus supplement or post-effective amendment such information as is required by the applicable rules and regulations of the Commission and as such managing underwriter or underwriters, such agent or such Electing Holder specifies should be
included therein relating to the terms of the sale of such Registrable Securities, including information with respect to the principal amount of Registrable Securities being sold by such Electing Holder or agent or to any underwriters, the name and
description of such Electing Holder, agent or underwriter, the offering price of such Registrable Securities and any discount, commission or other compensation payable in respect thereof, the purchase price being paid therefor by such underwriters
and with respect to any other terms of the offering of the Registrable Securities to be sold by such Electing Holder or agent or to such underwriters; and make all required filings of such prospectus supplement or post-effective amendment promptly
after notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; 
  
 (xi) furnish to each Electing Holder, each placement or sales agent, if any, therefor, each underwriter, if any, thereof and the
respective counsel referred to in Section 3(d)(vi), upon request, an executed copy (or, in the case of an Electing Holder, a conformed copy) of such Shelf Registration Statement, each such amendment and supplement thereto (in each case
including all exhibits thereto (in the case of an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of copies of such Shelf Registration Statement (excluding exhibits thereto
and documents incorporated by reference therein unless specifically so requested by such Electing Holder, agent or underwriter, as the case may be) and of the prospectus included in such Shelf Registration Statement (including each preliminary
prospectus and any summary prospectus), in conformity in all material respects with the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder to the extent that such
documents are not available through the Commission’s EDGAR filing system, and such other documents, as such Electing Holder, agent, if any, and underwriter, if any, may reasonably request in order to facilitate the offering and disposition of
the Registrable Securities owned by such Electing Holder, offered or sold by such agent or underwritten by such underwriter and to permit such Electing Holder, agent and underwriter to satisfy the 

  

 12 

 
prospectus delivery requirements of the Securities Act; and the Company and the Guarantors hereby consents to the use of such prospectus (including such
preliminary and summary prospectus) and any amendment or supplement thereto by each such Electing Holder and by any such agent and underwriter, in each case in the form most recently provided to such person by the Company, in connection with the
offering and sale of the Registrable Securities covered by the prospectus (including such preliminary and summary prospectus) or any supplement or amendment thereto; 
  
 (xii) use their commercially reasonable efforts to (A) register or qualify the Registrable Securities
to be included in such Shelf Registration Statement under such securities laws or blue sky laws of such jurisdictions as any Electing Holder and each placement or sales agent, if any, therefor and underwriter, if any, thereof shall reasonably
request in writing; provided that where Securities are offered pursuant to an underwritten offering, counsel to the underwriters shall, at the cost and expense of the Company, perform blue sky investigations and file registrations and
qualifications required to be filed pursuant to this Section 3(d)(xii), prior to any public offering of Registrable Securities or any delivery of a prospectus contained in the Shelf Registration Statement, if so required, (B) keep such
registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions during the period the Shelf Registration is required to remain effective under
Section 2(b) above and for so long as may be necessary to enable any such Electing Holder, agent or underwriter to complete its distribution of Securities pursuant to such Shelf Registration Statement and (C) take any and all other actions
as may be reasonably necessary or advisable to enable each such Electing Holder, agent, if any, and underwriter, if any, to consummate the disposition in such jurisdictions of such Registrable Securities; provided, however, that
neither the Company nor the any of the Guarantors shall be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this
Section 3(d)(xii), (2) consent to general service of process in any such jurisdiction, (3) take any other action that would subject it to general service of process or to taxation in excess of a nominal amount in respect of doing
business in any jurisdiction in which it is not otherwise subject or (4) make any changes to its organizational documents or any agreement between it and its equityholders; 
  
 (xiii) use their commercially reasonable efforts to obtain the consent or approval of each governmental
agency or authority, whether federal, state or local, which may be required to effect the Shelf Registration or the offering or sale in connection therewith or to enable the selling holder or holders to offer, or to consummate the disposition of,
their Registrable Securities subject to the proviso in clause (xii) above; 
  
 (xiv) unless any Registrable Securities shall be in book-entry only form, cooperate with the Electing Holders and the managing
underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates, if so required by any securities exchange upon which any Registrable Securities are listed,
shall be penned, lithographed or engraved, or produced by any combination of such methods, on steel engraved borders, and which certificates shall not bear any restrictive legends; and, in the case of an underwritten offering, enable such
Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least two business days prior to any sale of the Registrable Securities; 
  

 13 

 (xv) provide a CUSIP number for all Registrable Securities, not later than the applicable
Effective Time; 
  
 (xvi) enter into one or more
underwriting agreements, engagement letters, agency agreements, “best efforts” underwriting agreements or similar agreements, as appropriate, including customary provisions relating to indemnification and contribution, and take such other
actions in connection therewith as any Electing Holders aggregating at least 25% in aggregate principal amount of the Registrable Securities at the time outstanding shall request in order to expedite or facilitate the disposition of such Registrable
Securities; 
  
 (xvii) if an agreement of the
type referred to in Section 3(d)(xvi) hereof is entered into (A) make such representations and warranties to the Electing Holders and the placement or sales agent, if any, therefor and the underwriters, if any, thereof in form, substance
and scope as are customarily made in connection with an offering of debt securities pursuant to any appropriate agreement or to a registration statement filed on the form applicable to the Shelf Registration; (B) obtain an opinion of counsel to
the Company in customary form and covering such matters, of the type customarily covered by such an opinion, as the managing underwriters, if any, or as any Electing Holders of at least 25% in aggregate principal amount of the Registrable Securities
at the time outstanding may reasonably request, addressed to such Electing Holder or Electing Holders and the placement or sales agent, if any, therefor and the underwriters, if any, thereof and dated the effective date of such Shelf Registration
Statement (and if such Shelf Registration Statement contemplates an underwritten offering of a part or all of the Registrable Securities, dated the date of the closing under the underwriting agreement relating thereto)(it being agreed that the
matters to be covered by such opinion shall be comparable to those covered in the opinions delivered to the Purchasers pursuant to the Purchase Agreement); (C) obtain a “cold comfort” letter or letters from the independent certified
public accountants of the Company addressed to the selling Electing Holders, the placement or sales agent, if any, therefor or the underwriters, if any, thereof, dated (i) the effective date of such Shelf Registration Statement and
(ii) the effective date of any prospectus supplement to the prospectus included in such Shelf Registration Statement or post-effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of
a date or for a period subsequent to that of the latest such statements included in such prospectus (and, if such Shelf Registration Statement contemplates an underwritten offering pursuant to any prospectus supplement to the prospectus included in
such Shelf Registration Statement or post-effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent to that of the latest such statements included in
such prospectus, dated the date of the closing under the underwriting agreement relating thereto), such letter or letters to be in customary form and covering such matters of the type customarily covered by letters of such type; (D) deliver
such documents and certificates, including officers’ certificates, as may be reasonably requested by any Electing Holders of at least 25% in aggregate principal amount of the Registrable Securities at the time outstanding or the placement or
sales agent, if any, therefor and the managing underwriters, if any, thereof to evidence the accuracy of the representations and warranties made pursuant to clause (A) above or those contained in Section 5(a) hereof and the compliance with
or satisfaction of any agreements or conditions contained in the underwriting agreement or other agreement entered into by the Company or the Guarantors; and (E) undertake such obligations relating to expense reimbursement, indemnification and
contribution as are provided in Section 6 hereof; 
  

 14 

 (xviii) notify in writing each holder of Registrable Securities of any proposal by the
Company to amend or waive any provision of this Exchange and Registration Rights Agreement pursuant to Section 9(h) hereof and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the text of the amendment
or waiver proposed or effected, as the case may be; 
  
 (xix) in the event that any broker-dealer registered under the Exchange Act shall underwrite any Registrable Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution”
(within the meaning of the Conduct Rules (the “Conduct Rules) of the National Association of Securities Dealers, Inc. (“NASD”) or any successor thereto, as amended from time to time) thereof, whether as a holder of such Registrable
Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, assist such broker-dealer in complying with the requirements of such Conduct Rules, including by (A) if such Conduct Rules shall
so require, engaging a “qualified independent underwriter” (as defined in such Conduct Rules) to participate in the preparation of the Shelf Registration Statement relating to such Registrable Securities, to exercise usual standards of due
diligence in respect thereto and, if any portion of the offering contemplated by such Shelf Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Registrable Securities,
(B) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 6 hereof (or to such other customary extent as may be requested by such underwriter), and
(C) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Conduct Rules; and 
  
 (xx) comply with all applicable rules and regulations of the Commission, and make generally available to its
securityholders as soon as practicable but in any event not later than eighteen months after the effective date of such Shelf Registration Statement, an earning statement of the Company and its subsidiaries complying with Section 11(a) of the
Securities Act (including, at the option of the Company, Rule 158 thereunder). 
  
 (e) In the event that the Company would be required, pursuant to Section 3(d)(viii)(F) above, to notify the Electing Holders, the
placement or sales agent, if any, therefor and the managing underwriters, if any, thereof, the Company shall without delay prepare and furnish to each of the Electing Holders, to each placement or sales agent, if any, in each case, upon request, and
to each such underwriter, if any, a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of Registrable Securities, such prospectus shall conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in light of the circumstances then existing. Each Electing Holder agrees, by acquisition of Securities, that upon receipt of any notice from the Company pursuant to
Section 3(d)(vii)(C), 3(d)(vii)(E) or 3(d)(vii)(F) hereof, such Electing Holder shall forthwith discontinue the disposition of Registrable Securities pursuant to the Shelf Registration Statement applicable to such Registrable Securities until
such 

  

 15 

 
Electing Holder is advised in writing by the Company that the disposition of Registrable Securities pursuant to the Shelf Registration Statement may be
resumed, and if applicable, has received copies of such amended or supplemented prospectus, and if so directed by the Company, such Electing Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file
copies, then in such Electing Holder’s possession of the prospectus covering such Registrable Securities at the time of receipt of such notice. 
  
 (f) In the event of a Shelf Registration, in addition to the information required to be provided by each Electing Holder in its Notice and
Questionnaire, the Company may require such Electing Holder to furnish to the Company such additional information regarding such Electing Holder and such Electing Holder’s intended method of distribution of Registrable Securities as may be
required in order to comply with the Securities Act. Each such Electing Holder agrees to notify the Company as promptly as practicable of any inaccuracy or change in information previously furnished by such Electing Holder to the Company or of the
occurrence of any event in either case as a result of which any prospectus relating to such Shelf Registration contains or would contain an untrue statement of a material fact regarding such Electing Holder or such Electing Holder’s intended
method of disposition of such Registrable Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder’s intended method of disposition of such Registrable Securities required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional information required to correct and update any previously furnished information or required so
that such prospectus shall not contain, with respect to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then existing. 
  
 (g) Until the expiration of two years after the Closing Date, the Company and the Guarantors will not, and will not permit any of their
“affiliates” (as defined in Rule 144) over which they exercise control to, resell any of the Securities that have been reacquired by any of them except pursuant to an effective registration statement under the Securities Act.

  
 4. Registration Expenses. 
  
 The Company and the Guarantors agree to bear and to pay or cause to be paid
promptly all expenses incident to the Company and the Guarantor’s performance of or compliance with this Exchange and Registration Rights Agreement, including (a) all Commission and any NASD registration, filing and review fees and
expenses including reasonable fees and disbursements of counsel for the placement or sales agent or underwriters in connection with such registration, filing and review, (b) all fees and expenses in connection with the qualification of the
Securities for offering and sale under the State securities and blue sky laws referred to in Section 3(d)(xii) hereof and determination of their eligibility for investment under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any reasonable fees and disbursements of counsel for the Electing Holders or underwriters in connection with such qualification and determination, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement required to be filed hereunder, each prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement to the foregoing, the expenses of
preparing the Securities for delivery and the expenses of printing or producing any underwriting agreements, agreements among underwriters, selling agreements and blue sky or legal investment memoranda and all other documents in connection with the
offering, sale or delivery of Securities to be disposed of (including certificates representing the Securities), (d)

  

 16 

 
messenger, telephone and delivery expenses relating to the offering, sale or delivery of Securities and the preparation of documents referred in clause
(c) above, (e) fees and expenses of the Trustee under the Indenture, any agent of the Trustee and any counsel for the Trustee and of any collateral agent or custodian, (f) internal expenses (including all salaries and expenses of the
Company’s officers and employees performing legal or accounting duties), (g) fees, disbursements and expenses of counsel and independent certified public accountants of the Company (including the expenses of any opinions or “cold
comfort” letters required by or incident to such performance and compliance), (h) fees, disbursements and expenses of any “qualified independent underwriter” engaged pursuant to Section 3(d)(xix) hereof, (i) fees,
disbursements and expenses of one counsel for the Electing Holders retained in connection with a Shelf Registration, as selected by the Electing Holders of at least a majority in aggregate principal amount of the Registrable Securities held by
Electing Holders (which counsel shall be reasonably satisfactory to the Company), (j) any fees charged by securities rating services for rating the Securities, and (k) fees, expenses and disbursements of any other persons, including
special experts, retained by the Company in connection with such registration (collectively, the “Registration Expenses”). To the extent that any Registration Expenses are incurred, assumed or paid by any holder of Registrable Securities
or any placement or sales agent therefor or underwriter thereof, the Company shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a request therefor. Notwithstanding the
foregoing, the holders of the Registrable Securities being registered shall pay all agency fees and commissions and underwriting discounts and commissions and transfer taxes attributable to the sale of such Registrable Securities and the fees and
disbursements of any counsel or other advisors or experts retained by such holders (severally or jointly), other than the counsel and experts specifically referred to above. 
  
 5. Representations and Warranties. 
  
 The Company and each of the Guarantors represents and warrants to, and agrees with, each Purchaser and each of the holders
from time to time of Registrable Securities that: 
  
 (a) Each registration statement covering Registrable Securities and each prospectus (including any preliminary or summary prospectus) contained therein or furnished pursuant to Section 3(d) or Section 3(c) hereof and any further
amendments or supplements to any such registration statement or prospectus, when it becomes effective or is filed with the Commission, as the case may be, and, in the case of an underwritten offering of Registrable Securities, at the time of the
closing under the underwriting agreement relating thereto, will conform in all material respects to the requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and will not contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made; and at all times subsequent to
the Effective Time when a prospectus would be required to be delivered under the Securities Act, other than from (i) such time as a notice has been given to holders of Registrable Securities pursuant to Section 3(d)(viii) or
Section 3(c)(iii) hereof until (ii) such time as the Company furnishes an amended or supplemented prospectus pursuant to Section 3(e) or Section 3(c)(iv) hereof, each such registration statement, and each prospectus (including
any summary prospectus) contained therein or furnished pursuant to Section 3(d) or Section 3(c) hereof, as then amended or supplemented, will conform in all material respects to the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances under which they made; 

  

 17 

 
provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by a holder of Registrable Securities or by a broker-dealer, agent or underwriter expressly for use therein. 
  
 (b) Any documents incorporated by reference in any prospectus referred to in Section 5(a) hereof, when they become or became
effective or are or were filed with the Commission, as the case may be, will conform or conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents will contain or
contained an untrue statement of a material fact or will omit or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made;
provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by a holder of Registrable Securities or by a
broker-dealer, agent or underwriter expressly for use therein. 
  
 (c) The compliance by the Company and the Guarantors with all of the provisions of this Exchange and Registration Rights Agreement and the consummation of the transactions herein contemplated will not conflict with or
result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Brookstone, Inc. (the “Parent”) or any of its
subsidiaries is a party or by which the Parent or any of its subsidiaries is bound or to which any of the property or assets of the Parent or its subsidiaries is subject, nor will such action result in any violation of the provisions of the
certificate of incorporation, as amended, or the by-laws or other organization documents of the Parent or its subsidiaries or any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the
Parent or any of its subsidiaries or any of their properties (assuming compliance with all applicable states securities or blue sky laws) except in the case of such breaches or defaults that, individually or in the aggregate, would not reasonably be
expected to have a material adverse effect on the Parent and its subsidiaries, taken as a whole); and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for
the consummation by the Company and the Guarantors of the transactions contemplated by this Exchange and Registration Rights Agreement, except the registration under the Securities Act of the Securities, qualification of the Indenture (or any
substantially identical indenture referred to in this Agreement) under the Trust Indenture Act and such consents, approvals, authorizations, registrations or qualifications as may be required under State securities or blue sky laws or the private
placement or equivalent provisions of the securities laws of any jurisdiction outside the United States in connection with the purchase and distribution of the Securities by the Purchasers in connection with the offering and distribution of the
Securities. 
  
 (d) This Exchange and
Registration Rights Agreement has been duly authorized, executed and delivered by the Company and the Guarantors. 
  
 6. Indemnification. 
  
 (a) Indemnification by the Company and the Guarantors. The Company and each of the Guarantors, jointly and severally, will
indemnify and hold harmless each of the holders of Registrable Securities included in an Exchange Registration Statement, each of the Electing Holders of Registrable Securities included in a Shelf Registration Statement and each person who
participates as a placement or sales agent or as an underwriter in any offering or sale of such Registrable Securities against any losses, claims, damages or liabilities, joint 

  

 18 

 
or several, to which such holder, agent or underwriter may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Exchange Registration Statement or Shelf Registration Statement, as the case may be, under
which such Registrable Securities were registered under the Securities Act, or any preliminary, final or summary prospectus contained therein or furnished by the Company to any such holder, Electing Holder, agent or underwriter, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, and will reimburse such holder, such Electing Holder, such agent and such underwriter for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that neither the Company nor the Guarantors shall be liable to any such person in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary, final or summary prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information
furnished to the Company by such person expressly for use therein. 
  
 (b) Indemnification by the Holders and any Agents and Underwriters. The Company may require, as a condition to including any Registrable Securities in any registration statement filed pursuant to
Section 2(b) hereof and to entering into any underwriting agreement with respect thereto, that the Company shall have received an undertaking reasonably satisfactory to it from the Electing Holder of such Registrable Securities and from each
underwriter named in any such underwriting agreement, severally and not jointly, to (i) indemnify and hold harmless the Company, the Guarantors, and all other holders of Registrable Securities, against any losses, claims, damages or liabilities
to which the Company, the Guarantors or such other holders of Registrable Securities may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material fact contained in such registration statement, or any preliminary, final or summary prospectus contained therein or furnished by the Company to any such Electing Holder,
agent or underwriter, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein 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 reliance upon and in conformity with written information furnished to the Company by
such Electing Holder or underwriter expressly for use therein, and (ii) reimburse the Company and the Guarantors for any legal or other expenses reasonably incurred by the Company and the Guarantors in connection with investigating or defending
any such action or claim as such expenses are incurred; provided, however, that no such Electing Holder shall be required to undertake liability to any person under this Section 6(b) for any amounts in excess of the dollar amount of the
proceeds to be received by such Electing Holder from the sale of such Electing Holder’s Registrable Securities pursuant to such registration. 
  
 (c) Notices of Claims, Etc. Promptly after receipt by an indemnified party under subsection (a) or (b) above of
written notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party pursuant to the indemnification provisions of or contemplated by this Section 6, notify
such indemnifying party in writing of the commencement of such action; but the omission so 

  

 19 

 
to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by Section 6(a) or 6(b) hereof. In case any such action shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, such indemnifying party shall not be liable
to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the written consent of the indemnified party (which consent shall not be unreasonably withheld or delayed), effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on
behalf of any indemnified party. 
  
 (d)
Contribution. If for any reason the indemnification provisions contemplated by Section 6(a) or Section 6(b) are unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions
in respect thereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 6(d) were determined by pro rata allocation (even if the holders or any
agents or underwriters or all of them 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 6(d). The amount paid or payable by
an indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds
received by such holder from the sale of any Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission, and no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed
to the 

  

 20 

 
public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The holders’ and any underwriters’ obligations in this Section 6(d) to contribute shall be several in proportion to the principal amount of Registrable Securities registered or underwritten, as the case
may be, by them and not joint. 
  
 (e) The
obligations of the Company and each of the Guarantors under this Section 6 shall be in addition to any liability which the Company or the Guarantors may otherwise have and shall extend, upon the same terms and conditions, to each officer,
director and partner of each holder, agent and underwriter and each person, if any, who controls any holder, agent or underwriter within the meaning of the Securities Act; and the obligations of the holders and any agents or underwriters
contemplated by this Section 6 shall be in addition to any liability which the respective holder, agent or underwriter may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company or the
Guarantors (including any person who, with his consent, is named in any registration statement as about to become a director of the Company or any of the Guarantors) and to each person, if any, who controls the Company within the meaning of the
Securities Act. 
  
 7. Underwritten Offerings. 

 
 (a) Selection of Underwriters. If any of the
Registrable Securities covered by the Shelf Registration are to be sold pursuant to an underwritten offering, the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in aggregate principal
amount of the Registrable Securities to be included in such offering, provided that such designated managing underwriter or underwriters is or are reasonably acceptable to the Company. 
  
 (b) Participation by Holders. Each holder of Registrable Securities by acceptance of Registrable
Securities agrees with each other such holder that no such holder may participate in any underwritten offering hereunder unless such holder (i) agrees to sell such holder’s Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the
terms of such underwriting arrangements. 
  
 8. Rule 144.

  
 The Company covenants to the holders of Registrable
Securities that it shall comply with the reporting and information covenant in the Indenture. Upon the request of any holder of Registrable Securities in connection with that holder’s sale pursuant to Rule 144, the Company shall deliver to such
holder a written statement as to whether it has complied with such requirements. 
  
 9. Miscellaneous. 
  
 (a) No Inconsistent Agreements. The Company and the Guarantors represent, warrant, covenant and agree that they have not granted, and shall not grant, registration rights with respect to Registrable Securities
or any other securities which would be inconsistent with the terms contained in this Exchange and Registration Rights Agreement. 
  

 21 

 (b) Specific Performance. The parties hereto acknowledge that there would be no
adequate remedy at law if the Company and the Guarantors fail to perform any of their obligations hereunder and that the Purchasers and the holders from time to time of the Registrable Securities may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such holders, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel specific performance of the obligations of the Company and the Guarantors under
this Exchange and Registration Rights Agreement in accordance with the terms and conditions of this Exchange and Registration Rights Agreement, in any court of the United States or any State thereof having jurisdiction. 
  
 (c) Notices. All notices, requests, claims, demands,
waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered by hand, if delivered personally or by courier, or three days after being deposited in the mail (registered or certified mail,
postage prepaid, return receipt requested) as follows: If to the Company, to it at One Innovation Way, Merrimack, New Hampshire 03054, Attention: General Counsel with a copy to Kaye Scholer LLP, 425 Park Avenue, New York, NY 10022, Attention:
Stephen C. Koval, and if to a holder, to the address of such holder set forth in the security register or other records of the Company, or to such other address as the Company or any such holder may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 (d) Parties in Interest. All the terms and provisions of this Exchange and Registration Rights Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the parties hereto and the holders from time to time of the Registrable Securities and the respective successors and assigns of the parties hereto and such holders. In the event that any
transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be
deemed a beneficiary hereof for all purposes and such Registrable Securities shall be held subject to all of the terms of this Exchange and Registration Rights Agreement, and by taking and holding such Registrable Securities such transferee shall be
entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by all of the applicable terms and provisions of this Exchange and Registration Rights Agreement. If the Company shall so request, any such successor, assign
or transferee shall agree in writing to acquire and hold the Registrable Securities subject to all of the applicable terms hereof. 
  
 (e) Survival. The respective indemnities, agreements, representations, warranties and each other provision set forth in this
Exchange and Registration Rights Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof) made by or on behalf of any holder of Registrable Securities, any
director, officer or partner of such holder, any agent or underwriter or any director, officer or partner thereof, or any controlling person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities pursuant
to the Purchase Agreement and the transfer and registration of Registrable Securities by such holder and the consummation of an Exchange Offer. 
  
 (f) Governing Law. This Exchange and Registration Rights Agreement shall be governed by and construed in accordance with
the laws of the State of New York. 
  
 (g)
Headings. The descriptive headings of the several Sections and paragraphs of this Exchange and Registration Rights Agreement are inserted for convenience only, do not constitute a part of this Exchange and Registration Rights Agreement and
shall not affect in any way the meaning or interpretation of this Exchange and Registration Rights Agreement. 
  

 22 

 (h) Entire Agreement; Amendments. This Exchange and Registration Rights Agreement
and the other writings referred to herein (including the Indenture, the Purchase Agreement and the form of Securities) or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject
matter and supersedes all prior agreements and understandings between the parties with respect to its subject matter. This Exchange and Registration Rights Agreement may be amended and the observance of any term of this Exchange and Registration
Rights Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Company, the Guarantors and the holders of at least a majority in aggregate
principal amount of the Registrable Securities at the time outstanding. Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h), whether or
not any notice, writing or marking indicating such amendment or waiver appears on such Registrable Securities or is delivered to such holder. 
  
 (i) Inspection. For so long as this Exchange and Registration Rights Agreement shall be in effect, this Exchange and Registration
Rights Agreement and a complete list of the names and addresses of all the holders of Registrable Securities shall be made available for inspection and copying on any business day during normal business hours by any holder of Registrable Securities
for proper purposes only (which shall include any purpose related to the rights of the holders of Registrable Securities under the Securities, the Indenture and this Agreement) at the offices of the Company at the address thereof set forth in
Section 9(c) above and at the office of the Trustee under the Indenture. 
  
 (j) Counterparts. This agreement may be executed by the parties in counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same
instrument. 
  

 23 

			
	Very truly yours,
	
	Brookstone Company, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	 Philip W. Roizin

	Title:	 	 Executive Vice President

	
	Brookstone, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	 Philip W. Roizin

	Title:	 	 Executive Vice President

	
	Brookstone International Holdings, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	 Philip W. Roizin

	Title:	 	 Executive Vice President

	
	Brookstone Purchasing, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	 Philip W. Roizin

	Title:	 	 Executive Vice President

  
 [Registration
Rights Agreement] 

			
	Brookstone Stores, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President
	
	Brookstone Retail Puerto Rico, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President
	
	Brookstone Holdings, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President
	
	Brookstone Properties, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President
	
	Advanced Audio Concepts, Limited
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President
	
	Gardeners Eden, Inc.
		
	By:	 	 /s/ Philip W. Roizin

	Name:	 	Philip W. Roizin
	Title:	 	Executive Vice President

  
 [Registration
Rights Agreement] 

 Accepted as of the date hereof: 
  

Goldman, Sachs & Co. 
 On behalf of each of
the Purchasers 
  

			
	 By:
	 	 /s/ Goldman, Sachs & Co.

	 	 	(Goldman, Sachs & Co.)

  
 [Registration Rights
Agreement] 

 SCHEDULE I 
  

The Guarantors 
  
 Brookstone, Inc. 
  
 Brookstone International Holdings, Inc. 
  
 Brookstone Purchasing, Inc. 
  
 Brookstone Stores, Inc. 
  
 Brookstone Retail Puerto Rico, Inc. 
  
 Brookstone Holdings, Inc. 
  
 Brookstone Properties, Inc. 
  
 Advanced Audio Concepts, Ltd. 
  
 Gardeners Eden, Inc. 

 Exhibit A 
  

Brookstone Company, Inc. 
  
 INSTRUCTION TO DTC PARTICIPANTS 
  
 (Date of Mailing) 
  
 URGENT - IMMEDIATE ATTENTION REQUESTED 
  
 DEADLINE FOR RESPONSE: [DATE] * 
  
 The Depository Trust Company (“DTC”) has identified you as a DTC Participant through which beneficial interests in the Brookstone Company, Inc. (the “Company”) 12.00% Second Lien Senior Secured
Notes due 2012 (the “Securities”) are held. 
  
 The Company is in the
process of registering the Securities under the Securities Act of 1933 for resale by the beneficial owners thereof. In order to have their Securities included in the registration statement, beneficial owners must complete and return the enclosed
Notice of Registration Statement and Selling Securityholder Questionnaire. 
  
 It is important that beneficial owners of the Securities receive a copy of the enclosed materials as soon as possible as their rights to have the Securities included in the registration statement depend upon their returning the
Notice and Questionnaire by [Deadline For Response]. Please forward a copy of the enclosed documents to each beneficial owner that holds interests in the Securities through you. If you require more copies of the enclosed materials or have any
questions pertaining to this matter, please contact Brookstone Company, Inc., One Innovation Way, Merrimack, New Hampshire 03054, Telephone: (603) 880-9500. 
  

	*	Not less than 28 calendar days from date of mailing. 

 Brookstone Company, Inc. 
  
 Notice of Registration Statement 
 and  
 Selling Securityholder Questionnaire 
  
 (Date) 
  
 Reference is hereby made to the Exchange and Registration Rights Agreement (the “Exchange and Registration Rights Agreement”)
between Brookstone Company, Inc. (the “Company”) and the Purchasers named therein. Pursuant to the Exchange and Registration Rights Agreement, the Company has filed with the United States Securities and Exchange Commission (the
“Commission”) a registration statement on Form [    ] (the “Shelf Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the
“Securities Act”), of the Company’s 12.00% Second Lien Senior Secured Notes due 2012 (the “Securities”). A copy of the Exchange and Registration Rights Agreement is attached hereto. All capitalized terms not otherwise
defined herein shall have the meanings ascribed thereto in the Exchange and Registration Rights Agreement. 
  
 Each beneficial owner of Registrable Securities (as defined below) is entitled to have the Registrable Securities beneficially owned by it included in the Shelf Registration Statement. In order to have Registrable
Securities included in the Shelf Registration Statement, this Notice of Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”) must be completed, executed and delivered to the Company’s counsel at
the address set forth herein for receipt ON OR BEFORE [Deadline for Response]. Beneficial owners of Registrable Securities who do not complete, execute and return this Notice and Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use the Prospectus forming a part thereof for resales of Registrable Securities. 
  
 Certain legal consequences arise from being named as a selling securityholder in the Shelf Registration Statement and related Prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Shelf Registration Statement and related Prospectus.

  
 The term “Registrable
Securities” is defined in the Exchange and Registration Rights Agreement. 

 ELECTION 
  
 The undersigned holder (the “Selling Securityholder”) of Registrable Securities hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The undersigned, by signing and returning this Notice and Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and conditions of this Notice
and Questionnaire and the Exchange and Registration Rights Agreement, including, without limitation, Section 6 of the Exchange and Registration Rights Agreement, as if the undersigned Selling Securityholder were an original party thereto.

  
 Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and as Exhibit B to the Exchange and Registration Rights Agreement. 
  
 The Selling Securityholder hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete: 

 QUESTIONNAIRE 
  

									
	 (1)
	  	(a)	  	Full Legal Name of Selling Securityholder:
			
	 	  	(b)	  	Full Legal Name of Registered Holder (if not the same as in (a) above) of Registrable Securities Listed in Item (3) below:
			
	 	  	(c)	  	Full Legal Name of DTC Participant (if applicable and if not the same as (b) above) Through Which Registrable Securities Listed in Item (3) below are Held:
				
	 (2)
	  	 	  	Address for Notices to Selling Securityholder:	  	 
	 	  	 	  	  

	  	 
	 	  	 	  	  

	  	 
	 	  	 	  	  

	  	 
	 	  	 	  	Telephone:	  	  

	  	 
	 	  	 	  	Fax:	  	  

	  	 
	 	  	 	  	Contact Person:	  	  

	  	 
			
	 (3)
	  	 	  	Beneficial Ownership of Securities:
			
	 	  	 	  	Except as set forth below in this Item (3), the undersigned does not beneficially own any Securities.
			
	 	  	(a)	  	 Principal amount of Registrable Securities beneficially owned:

	 	  	 	  	 CUSIP No(s). of such Registrable Securities:

			
	 	  	(b)	  	Principal amount of Securities other than Registrable Securities beneficially owned:
	 	  	 	  	  

			
	 	  	 	  	 CUSIP No(s). of such other Securities:

			
	 	  	(c)	  	Principal amount of Registrable Securities which the undersigned wishes to be included in the Shelf Registration Statement:
	 	  	 	  	  

			
	 	  	 	  	 CUSIP No(s). of such Registrable Securities to be included in the Shelf Registration Statement:

			
	 (4)
	  	 	  	Beneficial Ownership of Other Securities of the Company:
			
	 	  	 	  	Except as set forth below in this Item (4), the undersigned Selling Securityholder is not the beneficial or registered owner of any other securities of the Company, other than the
Securities listed above in Item (3).
			
	 	  	 	  	State any exceptions here:

	(5)	Relationships with the Company: 

  
 Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more)
has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years. 
  

State any exceptions here: 
  

	(6)	Plan of Distribution: 

  
 Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (3) only
as follows (if at all): Such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder or, alternatively, through underwriters, broker-dealers or agents. Such Registrable Securities may be sold in one or
more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block
transactions) (i) on any national securities exchange or quotation service on which the Registered Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on
such exchanges or services or in the over-the-counter market, or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may enter into hedging transactions with
broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging the positions they assume. The Selling Securityholder may also sell Registrable Securities short and deliver Registrable Securities to
close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such securities. 
  
 State any exceptions here: 
  
 By signing below, the Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions of the
Exchange Act and the rules and regulations thereunder, particularly Regulation M. 
  
 In the event that the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and obligations under this Notice and Questionnaire and the Exchange and Registration Rights Agreement. 
  
 By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items (1)
through (6) above and the inclusion of such information in the Shelf Registration Statement and related Prospectus. The Selling Securityholder understands that such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus. 
  
 In
accordance with the Selling Securityholder’s obligation under Section 3(d) of the Exchange and Registration Rights Agreement to provide such information as may be required by law for 

 
inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein which may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains in effect. All notices hereunder and pursuant to the Exchange and Registration Rights Agreement shall be made in
writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery as follows: 
  
 (i) To the Company: 
  
 Brookstone Company, Inc. 
 One Innovation
Way 
 Merrimack, New Hampshire 03054 
 Attention: General Counsel 
  
 (ii) With
a copy to: 
  
 Kaye Scholer LLP 
 425 Park Avenue 
 New York, NY 10022

 Attn: Stephen C. Koval 
  
 Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the Company’s counsel, the terms of this Notice and Questionnaire, and
the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the Selling Securityholder
(with respect to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item (3) above. This Agreement shall be governed in all respects by the laws of the State of New York. 

 IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to
be executed and delivered either in person or by its duly authorized agent. 
  

			
	Dated:
                                

  

			
	  

	Selling Securityholder
	(Print/type full legal name of beneficial owner of Registrable Securities)
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 PLEASE RETURN THE COMPLETED AND
EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT: 
  

			
	 	 	Brookstone Company, Inc.
	 	 	One Innovation Way
	 	 	Merrimack, New Hampshire 03054
	 	 	Attention: General Counsel

  

			
	 	 	Kaye Scholer LLP
	 	 	425 Park Avenue
	 	 	New York, NY 10022
	 	 	Attn: Stephen C. Koval

 Exhibit B 
  

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT 
  
 Wells Fargo Bank, N.A. 
 Brookstone Company, Inc. 
 c/o Wells Fargo Bank, N.A. 
 Corporate Trust Services 
 213 Court Street, Suite 703 
 Middletown, CT 06457 
 Attention: Joseph P. O’Donnell Attention: Trust Officer 
  

	 	Re:	Brookstone Company, Inc. (the “Company”) 

 12.00% Second Lien Senior Secured Notes due 2012 
  
 Dear Sirs: 
  
 Please be advised that
                             has transferred
$                                        
aggregate principal amount of the above-referenced Notes pursuant to an effective Registration Statement on Form [    ] (File No. 333-        ) filed by the
Company. 
  
 We hereby certify that the prospectus delivery requirements, if any,
of the Securities Act of 1933, as amended, have been satisfied and that the above-named beneficial owner of the Notes is named as a “Selling Holder” in the Prospectus dated [date] or in supplements thereto, and that the aggregate principal
amount of the Notes transferred are the Notes listed in such Prospectus opposite such owner’s name. 
  

	
	 Dated:
                                

  

			
	 Very truly yours,

		
	 	 	  

	 	 	(Name)
		
	 By:
	 	  

	 	 	(Authorized Signature)Security Agreement

 Exhibit 4.6 
  

Execution Copy 
  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT (this “Agreement”) dated as of October 4, 2005 by and among each of: 
  
 BROOKSTONE COMPANY, INC. (the “Issuer”), and

  
 BROOKSTONE INTERNATIONAL HOLDINGS, INC.,
BROOKSTONE HOLDINGS, INC., BROOKSTONE PROPERTIES, INC., BROOKSTONE PURCHASING, INC., BROOKSTONE RETAIL PUERTO RICO, INC., BROOKSTONE STORES, INC., GARDENERS EDEN, INC., BROOKSTONE, INC. and ADVANCED AUDIO CONCEPTS, LIMITED (collectively, the
“Guarantors”, and, together with the Issuer, individually, a “Grantor” and collectively, the “Grantors”); and 
  
 WELLS FARGO BANK, N.A., a national banking association, in its capacity as Collateral Agent under the
Collateral Agency Agreement dated as of October 4, 2005 (as the same may be amended, modified, supplemented or restated hereafter, the “Collateral Agency Agreement”) among the Collateral Agent, Wells Fargo Bank, N.A., as
trustee under the Indenture referred to below, and the Grantors (in such capacity, together with its successors in such capacity, the “Collateral Agent”) for the Secured Parties (as defined herein), in consideration of the mutual
covenants contained herein and benefits to be derived herefrom. 
  
 WITNESSETH: 
  
 Reference is made to (a) that
certain Indenture dated as of even date herewith (as the same may be amended, modified, supplemented or restated hereafter, the “Indenture”) among the Issuer, the guarantors party thereto and Wells Fargo Bank, N.A., as trustee (in
such capacity, together with its successors in such capacity, the “Trustee”), (b) the notes issued under the Indenture by the Issuer on the date of the Indenture and guarantees thereof by the Guarantors provided for and issued
pursuant to the Indenture (including any related exchange notes and exchange guarantees) and all additional notes and guarantees thereof at any time issued pursuant to the Indenture (all, collectively, the “Note Debt”) and
(c) that certain Intercreditor Agreement dated as of even date herewith (as the same may be amended, modified, supplemented, or restated hereinafter, the “Intercreditor Agreement”), among the Collateral Agent, Bank of America,
N.A., in its capacity as initial Credit Agreement Agent (as defined in the Indenture). 
  
 Whereas, in order to induce the Trustee to enter into the Indenture and the initial purchasers of notes issued pursuant to the Indenture to purchase such notes, the Grantors have agreed to grant a continuing Lien on
the Collateral (as hereinafter defined) to secure the principal of and interest and premium (if any) on all present and future Note Debt and Obligations in respect thereof and all other present and future Parity Lien Obligations; 

 Accordingly, the Grantors and the Collateral Agent, on behalf of itself and each other Secured Party (and
each of their respective successors and assigns) hereby agree as follows: 
  
 ARTICLE 1 Definitions 
  
 1.1 Generally.
All references to the UCC shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if a term is defined in Article 9 of the UCC differently than in another Article thereof,
the term shall have the meaning set forth in Article 9, and provided further that if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of the Security Interest in any Collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be. 
  
 1.2 Definition of Certain Terms Used Herein. As used herein, the following terms shall have the following meanings: 
  
 “Accessions” shall have the meaning given that term in the
UCC. 
  
 “Account Debtor” shall have the meaning
given that term in the UCC. 
  
 “Accounts” shall
mean “accounts” as defined in the UCC, and shall also include, without limitation, all: accounts, accounts receivable, receivables, and rights to payment (whether or not earned by performance) for: property that has been or is to be sold,
leased, licensed, assigned, or otherwise disposed of; services rendered or to be rendered; a policy of insurance issued or to be issued; a secondary obligation incurred or to be incurred; or arising out of the use of a credit or charge card or
information contained on or used with that card. 
  
 “Actionable Default” means (a) the pendency of any Insolvency or Liquidation Proceeding (as defined in the Indenture) commenced voluntarily by or involuntarily against any Grantor which, under the terms of any credit
agreement, indenture or other agreement governing any Series of Parity Lien Debt (as defined in the Indenture) causes, or permits holders of Parity Lien Debt (as defined in the Indenture) outstanding thereunder (with or without the giving of notice
or lapse of time, or both, and whether or not notice has been given or time has lapsed) to cause, the Parity Lien Debt outstanding thereunder to become immediately due and payable or (b) the failure to pay when due (whether at maturity, upon
acceleration or otherwise, giving effect to any applicable cure, grace, notice or similar period) any principal or interest or premium (if any) on any outstanding Series of Parity Lien Debt and continuance of such failure for a period of three days
after written notice thereof is given to the Issuer by the Parity Lien Representative (as defined in the Indenture) for such Series of Secured Debt (as defined in the Indenture). 
  
 “Blue Sky Laws” shall have the meaning assigned to such term in Section 6.1 of this Agreement.

  
 “Chattel Paper” shall have the meaning given
that term in the UCC. 
  
 “Collateral” shall mean
all personal and fixture property of every kind and nature of each Grantor, including, without limitation, all: (a) Accounts, (b) Chattel Paper, (c) Commercial Tort Claims, (d) Deposit Accounts, (e) Documents,
(f) Equipment, (g) Fixtures, (h) General 

  

 -2- 

 
Intangibles (including Payment Intangibles), (i) Goods, (j) Instruments, (k) Inventory, (l) Investment Property,
(m) Letter-of-Credit Rights, (n) Software, (o) Supporting Obligations, (p) money, policies and certificates of insurance, deposits, cash, or other property, (q) all books, records, and information relating to any of the
foregoing and/or to the operation of any Grantor’s business, and all rights of access to such books, records, and information, and all property in which such books, records, and information are stored, recorded and maintained, (r) all
insurance proceeds, refunds, and premium rebates, including, without limitation, proceeds of fire and credit insurance, whether any of such proceeds, refunds, and premium rebates arise out of any of the foregoing ((a) through (q)) or otherwise,
(s) all liens, guaranties, rights, remedies, and privileges pertaining to any of the foregoing ((a) through (r)), including the right of stoppage in transit, and (t) any of the foregoing whether now owned or now due, or in which any
Grantor has an interest, or hereafter acquired, arising, or to become due, or in which any Grantor obtains an interest, and all products, Proceeds, substitutions, and Accessions of or to any of the foregoing provided, that
notwithstanding anything to the contrary contained herein “Collateral” shall not include Excluded Property. 
  
 “Collateral Agency Agreement” shall have the meaning assigned to such term in the preamble to this Agreement. 
  
 “Collateral Agent” shall have the meaning assigned to such
term in the preamble to this Agreement. 
  
 “Collateral
Agent’s Rights and Remedies” shall have the meaning assigned to such term in Section 8.8. 
  
 “Commercial Tort Claim” shall have the meaning given that term in the UCC. 
  
 “Credit Agreement” has the meaning specified in the Indenture. 
  
 “Deposit Account” shall mean “deposit account” as
defined in the UCC, and shall also include, without limitation, all demand, time, savings, or similar accounts maintained with a bank or other financial institution. 
  
 “Discharge of Priority Lien Obligations” has the meaning specified in the Indenture. 
  
 “Documents” shall have the meaning given that term in the
UCC. 
  
 “Equipment” shall mean
“equipment” as defined in the UCC, and also include, without limitation, all furniture, store fixtures, motor vehicles, machinery, office equipment, plant equipment, tools, dies and molds which are used in the operation or furtherance of a
Grantors’ business, and any and all Accessions or additions thereto, and substitutions therefor. 
  
 “Excluded Property” has the meaning specified in the Indenture. 
  
 “Financing Statement” shall have the meaning given that term in the UCC. 
  
 “Fixture Filing” shall have the meaning given that term in
the UCC. 
  

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 “General Intangibles” shall mean “general intangible” as defined in the UCC,
and shall also include, without limitation, all: Payment Intangibles; rights to payment for credit extended; deposits; amounts due to any Grantor; credit memoranda in favor of any Grantor; warranty claims; tax refunds and abatements; insurance
refunds and premium rebates; all means and vehicles of investment or hedging, including, without limitation, options, warrants, and futures contracts; records; customer lists; telephone numbers; goodwill; causes of action; judgments; payments under
any settlement or other agreement; literary rights; rights to performance; royalties; license and/or franchise fees; rights of admission; licenses; franchises; license agreements, including all rights of any Grantor to enforce same; permits,
certificates of convenience and necessity, and similar rights granted by any governmental authority; internet addresses and domain names; developmental ideas and concepts; proprietary processes; blueprints, drawings, designs, diagrams, plans,
reports, and charts; catalogs; technical data; computer software programs (including the source and object codes therefor), computer records, computer software, rights of access to computer record service bureaus, service bureau computer contracts,
and computer data; tapes, disks, semi-conductors chips and printouts; user, technical reference, and other manuals and materials; patents, patent applications and patents pending; trade secret rights, copyrights, copyright applications, mask work
rights and interests, and derivative works and interests; trade names, trademarks, trademark applications, service marks, and service mark applications, together with all goodwill connected with and symbolized by any of the foregoing; all other
general intangible property of any Grantor in the nature of intellectual property; proposals; cost estimates, and reproductions on paper, or otherwise, of any and all concepts or ideas, or connected with, the design, development, manufacture, sale,
marketing, leasing, or use of any or all property produced, sold, or leased, by or credit extended or services performed, by any Grantor, whether intended for an individual customer or the general business of any Grantor, or used or useful in
connection with research by any Grantor. 
  
 “Goods” shall have the meaning given that term in the UCC. 
  
 “Indemnitee” shall have the meaning assigned to such term in Section 8.6 of this Agreement. 
  
 “Indenture” shall have the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 “Instruments” shall have the meaning given that term in the
UCC. 
  
 “Intercreditor Agreement” shall have the
meaning assigned to such term in the preliminary statement of this Agreement. 
  
 “Inventory” shall mean “inventory” as defined in the UCC, and shall also include, without limitation, all: (a) Goods which (i) are leased by a Person as lessor, (ii) are held
by a Person for sale or lease or to be furnished under a contract of service, (iii) are furnished by a Person under a contract of service, or (iv) consist of raw materials, work in process, or materials used or consumed in a business;
(b) Goods of said description in transit; (c) Goods of said description which are returned, repossessed and rejected; (d) packaging, advertising, and shipping materials related to any of the foregoing; (e) all names, marks, and
General Intangibles 

  

 -4- 

 
affixed or to be affixed thereto or associated therewith; and (f) Documents which represent any of the foregoing. 
  
 “Investment Property” shall have the meaning given that term
in the UCC. 
  
 “Issue Date” has the meaning
specified in the Indenture. 
  
 “Letter-of-Credit
Right” shall mean “letter-of-credit” as defined in the UCC and shall also include, without limitation, all rights to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time
entitled to demand payment or performance. 
  
 “Lien” has the meaning specified in the Indenture. 
  
 “Obligations” shall mean “Obligations” as defined in the Indenture, whether outstanding on the date hereof or incurred or arising at any future time. 
  
 “Parity Lien Debt Default” means (a) the
failure to pay any Parity Lien Debt when due or (b) the occurrence of any event or existence of any condition which, under the terms of any credit agreement, indenture or other agreement governing any Series of Parity Lien Debt (as defined in
the Indenture) causes, or permits holders of Parity Lien Debt outstanding thereunder (with or without the giving of notice or lapse of time, or both, and whether or not notice has been given or time has lapsed) to cause, the Parity Lien Debt
outstanding thereunder to become immediately due and payable. 
  
 “Parity Lien Documents” shall mean “Parity Lien Documents” as defined in the Indenture, whenever outstanding, incurred or arising. 
  
 “Parity Lien Obligations” shall mean “Parity Lien Obligations” as defined in the Indenture,
whether outstanding on the date hereof or incurred or arising at any future time. 
  
 “Payment Intangible” shall mean “payment intangible” as defined in the UCC, and shall also refer to any General Intangible under which the Account Debtor’s primary obligation is a
monetary obligation. 
  
 “Permitted Encumbrances”
means “Permitted Liens” as defined in the Indenture. 
  
 “Permitted Prior Liens” has the meaning specified in the Indenture. 
  
 “Person” has the meaning specified in the Indenture. 
  
 “Priority Lien Collateral Agent” shall mean “Priority Lien Collateral Agent” as defined in the Indenture. 
  
 “Priority Lien Security Documents” shall mean “Priority
Lien Security Documents” as defined in the Indenture, whenever outstanding, incurred or arising. 
  

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 “Priority Lien Obligations” shall mean “Priority Lien Obligations” as defined
in the Indenture, whether outstanding on the date hereof or incurred or arising at any future time. 
  
 “Proceeds” shall include, without limitation, “Proceeds” as defined in the UCC and each type of property described in the
definition of Collateral. 
  
 “Secured Parties”
shall mean all present and future holders of Parity Lien Obligations, including specifically (but without limitation) (a) holders of Note Debt, (b) the Trustee and Collateral Agent as holders of Obligations arising under the Indenture, the
Collateral Agency Agreement, this Agreement or any other Parity Lien Document, (c) any other Person to whom any Parity Lien Obligations are owing, and (d) the successors and assigns of each of the foregoing. 
  
 “Securities Act” shall have the meaning assigned to such
term in Section 6.1 of this Agreement. 
  
 “Security” shall have the meaning given that term in the UCC. 
  
 “Security Interest” shall have the meaning assigned to such term in Section 2.1 of this Agreement. 
  
 “Software” shall have the meaning given that term in the UCC. 
  
 “Supporting Obligation” shall mean “supporting obligation” as defined in the UCC and shall also
refer to a Letter-of-Credit Right or secondary obligation that supports the payment or performance of an Account, Chattel Paper, a Document, a General Intangible, an Instrument, or Investment Property. 
  
 “Trustee” shall have the meaning assigned to such term in
the preliminary statement of this Agreement. 
  
 1.3 Lien
Subordination and Restrictions Pursuant to Intercreditor Agreement. The security interest in the Collateral granted to the Collateral Agent pursuant to this Agreement is subject and subordinate to all security interests in the Collateral at any
time granted to the Priority Lien Collateral Agent as security for Priority Lien Obligations on the terms set forth in the Intercreditor Agreement, and the exercise of right and remedies of the Collateral Agent arising hereunder is subject to
restrictions enforceable by the Priority Lien Collateral Agent set forth in the Intercreditor Agreement. The Grantors acknowledge and agree that such restrictions are not intended for the benefit of, and are not enforceable by, the Grantors.
Furthermore, the obligations of the Grantors hereunder are subject to the Intercreditor Agreement and the rights of the holders of Permitted Prior Liens under applicable law. 
  
 ARTICLE 2 Security Interest 
  
 2.1 Security Interest. As security for the payment or performance, as the case may be, in full of all of its liability (as issuer or guarantor or
otherwise) for the principal of and interest and premium (if any) on all present and future Note Debt and Obligations in respect 

  

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thereof and all of its other present and future Parity Lien Obligations, each Grantor hereby bargains, collaterally assigns, mortgages, pledges and
hypothecates to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, a security interest in, all of
such Grantor’s right, title and interest in, to and under the Collateral, wherever located, whether now owned or hereafter acquired or arising, (the “Security Interest”). Without limiting the foregoing, each Grantor hereby
designates the Collateral Agent as such Grantor’s true and lawful attorney, exercisable by the Collateral Agent whether or not an Actionable Default exists, with full power of substitution, at the Collateral Agent’s option, to file one or
more Financing Statements (including Fixture Filings), continuation statements, or to sign other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each Grantor, without the
signature of any Grantor and naming any Grantor or the Grantors as debtors and the Collateral Agent as secured party. 
  
 2.2 No Assumption of Liability. The Security Interest is granted as security only and shall not subject the Collateral Agent or any other Secured
Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to or arising out of the Collateral. 
  
 ARTICLE 3 Representations and Warranties 
  
 The Grantors jointly and severally represent and warrant to the Collateral Agent and the other Secured Parties that: 
  
 3.1 Representations and Warranties Incorporated by Reference.
Intentionally omitted. 
  
 3.2 Title and Authority. Each
Grantor has good and valid rights in, and title to, the Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Collateral Agent the Security Interest in such
Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval which has been obtained.

  
 3.3 Filings. UCC Financing Statements (including
Fixture Filings, as applicable) or other appropriate filings, recordings or registrations containing a description of the Collateral have been delivered to the Collateral Agent for filing (but the Collateral Agent shall not be so obligated to file)
in each governmental, municipal or other office as is necessary to publish notice of and protect the validity of and to establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of the Secured
Parties) in respect of all Collateral in which the Security Interest may be perfected by filing, recording or registration in the United States (or any political subdivision thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or re-registration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation statements. 
  
 3.4 Validity and Priority of Security Interest. The Security Interest
constitutes (a) a legal and valid security interest in all of the Collateral securing the payment and performance of 

  

 -7- 

 
the Parity Lien Obligations, and (b) subject to the filings described in Section 3.3 above and the taking of possession or control by the
Collateral Agent or Priority Lien Collateral Agent (as agent and bailee for the Collateral Agent) to the extent possession or control by the Collateral Agent or Priority Lien Collateral Agent (as agent and bailee for the Collateral Agent) is
required to perfect the Lien on such Collateral created under this Agreement, a perfected security interest in all of the Collateral. The Security Interest is and shall be prior to any other Lien on any of the Collateral, subject, as to priority,
only to (i) Liens granted to the Priority Lien Collateral Agent to secure Priority Lien Obligations and (ii) Permitted Prior Liens. 
  
 3.5 Absence of Other Liens. The Collateral is owned by the Grantors free and clear of any Lien, except for Permitted Encumbrances. Except as
provided in the Parity Lien Documents and the Priority Lien Security Documents, the Grantors have not filed or consented to the filing of (a) any Financing Statement or analogous document under the UCC or any other Applicable Law covering any
Collateral, (b) any collateral assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument covering any Collateral with the United States Patent and Trademark Office or the United States Copyright
Office or (c) any collateral assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument covering any Collateral with any foreign governmental, municipal or other office, which Financing Statement or
analogous document, collateral assignment, security agreement or similar instrument is still in effect, except, in each case, for Permitted Encumbrances. 
  
 3.6 Bailees, Warehousemen, Etc. As of the date of the Indenture, except as set forth on Schedule 3.6 hereto, no Inventory of any Grantor is in the
care or custody of any third party or stored or entrusted with a bailee or other third party. 
  
 3.7 Consignments. No Grantor has, and none shall have, possession of any property on consignment, unless such property is treated on the Grantor’s books and records as “goods on consignment” and
such property is not treated as Inventory on the books and records of the applicable Grantor. 
  
 ARTICLE 4 Covenants 
  
 4.1 Covenants Incorporated by Reference. Each Grantor hereby covenants and agrees that each Grantor shall perform, observe and otherwise comply with the covenants set forth in the Parity Lien Documents applicable to such Grantor.

  
 4.2 Change of Name; Location of Collateral; Records; Place
of Business. 
  
 (a) Each Grantor will
provide to the Collateral Agent prompt written notice of (a) any change (i) in its corporate name or in any trade name used to identify it in the conduct of its business or in the ownership of its properties, (ii) in the location of
its chief executive office, any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility),
(iii) in its corporate structure or jurisdiction of incorporation or formation, or (iv) in its Federal Taxpayer Identification Number or organizational identification number assigned to it by its state of organization 

  

 -8- 

 
or (b) the acquisition by any Grantor of any property for which additional filings or recordings are necessary to perfect and maintain the Collateral
Agent’s Security Interest therein. Each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the UCC or otherwise that are required in order for the Collateral Agent to
continue at all times following such change to have a valid, legal and perfected second priority security interest in all of the Collateral. 
  
 (b) Each Grantor agrees to maintain, at its own cost and expense, complete and accurate records with respect to the Collateral owned by it
and, at such time or times as the Collateral Agent may reasonably request, promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules in form and detail reasonably satisfactory to the Collateral Agent showing the
identity, amount and location of any and all Collateral. 
  
 4.3
Protection of Security. Each Grantor shall, at its own cost and expense, take any and all actions reasonably necessary to defend title to the Collateral against all Persons and to defend the Security Interest of the Collateral Agent in the
Collateral and the priority thereof against any Lien, other than Permitted Encumbrances. 
  
 4.4 Further Assurances. Each Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the
Collateral Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of the Security Interest and the filing of any Financing Statements (including Fixture Filings) or other documents in connection herewith or therewith. If any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any promissory note or other instrument in an amount in excess of $150,000, such note or instrument shall be immediately pledged and delivered to the Priority Lien Collateral
Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent, duly endorsed in a manner satisfactory to such agent. 
  
 4.5 Inspection and Verification. The Collateral Agent and such Persons as the Collateral Agent may reasonably designate shall have the right, in
the case of Accounts or Collateral in the possession of any third Person, to inspect and verify the Collateral, to the extent provided in the Parity Lien Documents. Additionally for the purpose of making such a verification, the Collateral Agent,
and such Persons as the Collateral Agent may reasonably designate, shall have the right to contact (i) upon and during the continuance of an Actionable Default Account Debtors or (ii) third Persons possessing such Collateral. The
Collateral Agent shall have the absolute right to share any information it gains from such inspection or verification with any Secured Party. 
  
 4.6 Taxes; Encumbrances. At its option, the Collateral Agent may during the continuance of an Actionable Default discharge past due taxes,
assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral and not permitted pursuant to the Indenture, and may take any other action which the Collateral Agent 

  

 -9- 

 
may deem necessary or desirable to repair, maintain or preserve any of the Collateral to the extent any Grantor fails to do so as required by the Indenture
or this Agreement, and each Grantor jointly and severally agrees to reimburse the Collateral Agent on demand for any payment made or any expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided, however, that the
Collateral Agent shall not have any obligation to undertake any of the foregoing and shall have no liability on account of any action so undertaken except where there is a specific finding in a judicial proceeding before a court of competent
jurisdiction (in which the Collateral Agent has had notice and an opportunity to be heard), from which finding no further appeal is available, that the Collateral Agent had acted in actual bad faith or in a grossly negligent manner; and provided
further that the making of any such payments or the taking of any such action by the Collateral Agent shall not be deemed to constitute a waiver of any Parity Lien Debt Default or Actionable Default arising from the Grantor’s failure to have
made such payments or taken such action. Nothing in this Section 4.6 shall be interpreted as excusing any Grantor from the performance of any covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens,
security interests or other encumbrances and maintenance as set forth herein or in the other Parity Lien Documents. 
  
 4.7 Assignment of Security Interest. 
  
 (a) If at any time any Grantor shall take a security interest in any property of an Account Debtor or any other Person to secure payment
and performance of an Account, such Grantor shall promptly assign such security interest to the Priority Lien Collateral Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent. Such assignment need not be filed of public
record unless necessary to continue the perfected status of the security interest against creditors of, and transferees from, the Account Debtor or other Person granting the security interest. 
  
 (b) To the extent that any Grantor is a beneficiary under
any written letter of credit in excess of $250,000 now or hereafter issued in favor of such Grantor, such Grantor shall deliver such letter of credit to the Priority Lien Collateral Agent or, after the Discharge of Priority Lien Obligations, the
Collateral Agent. The Collateral Agent shall from time to time, at the request and expense of such Grantor, make such arrangements with such Grantor as are in the reasonable judgment of the Collateral Agent necessary and appropriate so that such
Grantor may make any drawing to which such Grantor is entitled under any such letter of credit that is held in the possession of the Collateral Agent, without impairment of the Collateral Agent’s perfected security interest in such
Grantor’s rights to proceeds of such letter of credit or in the actual proceeds of such drawing. If so requested by the Collateral Agent after the Discharge of Priority Lien Obligations, such Grantor shall, for any letter of credit in excess of
$250,000, whether or not written, now or hereafter issued in favor of such Grantor as beneficiary, execute and deliver to the issuer and any confirmer of such letter of credit an assignment of proceeds form, in favor of the Collateral Agent and
reasonably satisfactory to it and such issuer or (as the case may be) such confirmer, requiring the proceeds of any drawing under such letter of credit to be paid directly to the Collateral Agent. 
  

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 4.8 Continuing Obligations of the Grantors. Each Grantor shall remain liable to observe and
perform all the conditions and obligations to be observed and performed by it under each material contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof. 
  
 4.9 Use and Disposition of Collateral. None of the Grantors shall make
or permit to be made a collateral assignment, pledge or hypothecation of the Collateral or shall grant any other Lien in respect of the Collateral or shall grant control (as defined in the UCC) of any Collateral to any third person, except as
expressly permitted by the Parity Lien Documents. Except as permitted in the Parity Lien Documents, (i) none of the Grantors shall make or permit to be made any transfer of the Collateral, and (ii) each Grantor shall remain at all times in
possession of the Collateral owned by it. 
  
 4.10 Limitation
on Modification of Accounts. None of the Grantors will grant any extension of the time of payment of any of the Accounts, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable
for the payment thereof or allow any credit or discount whatsoever thereon, other than extensions, releases, credits, discounts, compromises or settlements granted or made in the ordinary course of business or approved by the Priority Lien
Collateral Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent. 
  
 4.11 Insurance. 
  
 (a) Each Grantor shall maintain or shall cause to be maintained such insurance as is required pursuant to Section 2.4(b)(5) of the Collateral Agency Agreement dated as of October 4, 2005 among the Issuer, the Trustee and the
Collateral Agent. 
  
 (b) Subject to the
Discharge of Priority Lien Obligations, (i) each Grantor hereby irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by it) upon the occurrence and during the continuance of an
Actionable Default as such Grantor’s true and lawful agent (and attorney-in-fact), for the purpose of making, settling and adjusting claims in respect of Collateral under policies of insurance, endorsing the name of such Grantor on any check,
draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto and (ii) in the event that any Grantor at any time or times shall fail to obtain or
maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of the Grantors hereunder or any Parity Lien Debt
Default or Actionable Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as it deems advisable. All sums disbursed by the Collateral Agent in
connection with this Section 4.11, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, promptly upon demand, by the Grantors to the Collateral Agent and shall be additional
Parity Lien Obligations secured hereby. 
  

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 4.12 Commercial Tort Claims. If any Grantor shall at any time acquire a Commercial Tort Claim
having a value in excess of $250,000, such Grantor shall promptly notify the Collateral Agent in writing of the details thereof and the Grantors shall take such actions as the Collateral Agent shall reasonably request in order to grant to the
Collateral Agent a perfected and second priority security interest therein and in the Proceeds thereof. 
  
 ARTICLE 5 Collections 
  
 5.1 Investment Property. If any Grantor shall, now or at any time hereafter, hold or acquire any certificated securities that are not Excluded Property, such Grantor shall forthwith endorse, assign and deliver the same to the
Priority Lien Collateral Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in blank as such agent may from time to time specify. If any
securities not constituting Excluded Property now or hereafter acquired by any Grantor are uncertificated and are issued to any Grantor or its nominee directly by the issuer thereof (other than in the case of a less than wholly-owned Subsidiary any
securities of such Subsidiary if and to the extent permitted under the organizational documents of such Subsidiary), such Grantor shall promptly notify the Collateral Agent thereof, and at the Collateral Agent’s request and option, pursuant to
an agreement in form and substance reasonably satisfactory to the Collateral Agent, use reasonable commercial efforts to cause the issuer to agree to comply, without further consent of such Grantor or such nominee, at any time with instructions from
the Priority Lien Collateral Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent as to such securities. If any securities, whether certificated or uncertificated, or other Investment Property (in each case not
constituting Excluded Property) now or hereafter acquired by the any Grantor are held by any Grantor or its nominee through a securities intermediary or commodity intermediary, such Grantor shall promptly notify the Collateral Agent thereof and, at
the Collateral Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) cause such securities intermediary or (as the case may be) commodity intermediary to
agree to comply, in each case without further consent of such Grantor or such nominee, at any time, with entitlement orders or other instructions from the Priority Lien Collateral Agent or, after the Discharge of Priority Lien Obligations, the
Collateral Agent to such securities intermediary as to such securities or other Investment Property, or (as the case may be) to apply any value distributed on account of any commodity contract as directed by the Priority Lien Collateral Agent or,
after the Discharge of Priority Lien Obligations, the Collateral Agent to such commodity intermediary, or (ii) in the case of financial assets or other Investment Property held through a securities intermediary, arrange for the Priority Lien
Collateral Agent and, after the Discharge of Priority Lien Obligations, the Collateral Agent to become the entitlement holder with respect to such Investment Property, with such Grantor being permitted, only with the consent of the Priority Lien
Collateral Agent or, after the Discharge of Priority Lien Obligations, the Collateral Agent, to exercise rights to withdraw or otherwise deal with such Investment Property. The provisions of this Section shall not apply to any financial assets
credited to a securities account for which the Collateral Agent is the securities intermediary. 
  

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 5.2 Collections. 
  
 (a) Each Grantor shall at all times comply with the requirements of the Priority Lien Documents as to the
deposit, investment and application of its cash receipts. 
  
 (b) So long as any Credit Agreement is outstanding, the Grantors will maintain control agreements on their deposit accounts to the extent such control agreements are required to be maintained under the Credit
Agreement. Such control agreements shall permit the Collateral Agent to deliver a notice activating control over such account after the Discharge of Priority Lien Obligations upon terms substantially similar to the control agreements in favor of the
Collateral Agent delivered on the date hereof or otherwise reasonably satisfactory to the Collateral Agent. 
  
 (c) During such time as Credit Agreement does not exist, the Grantors will maintain each of their cash concentration deposit accounts into
which proceeds of Collateral are transferred periodically from the bank accounts of Grantors subject to control agreements that permit the Collateral Agent to deliver a notice activating control over such account after the Discharge of Priority Lien
Obligations upon terms substantially similar to the control agreements in favor of the Collateral Agent delivered on the date hereof or otherwise reasonably satisfactory to the Collateral Agent. 
  
 (d) The Collateral Agent will have the right to deliver
notice activating its control over any deposit account of any Grantor subject to any such control agreement only if it has received written notice that any event has occurred that constitutes an event of default under any Parity Lien Document
entitling the Collateral Agent to foreclose upon, collect or otherwise enforce its security interest hereunder. 
  
 5.3 Power of Attorney. Each Grantor irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents
designated by the Collateral Agent) as such Grantor’s true and lawful agent and attorney-in-fact, and in such capacity the Collateral Agent shall have the right, with power of substitution for each Grantor and in each Grantor’s name or
otherwise, for the use and benefit of the Collateral Agent and the other Secured Parties, (a) at any time, whether or not a Parity Lien Debt Default or Actionable Default has occurred, to take actions required to be taken by the Grantors under
Section 2.1 and 5.1 of this Agreement, (b) upon the occurrence and during the continuance of an Actionable Default or as otherwise permitted under the Indenture, (i) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (ii) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the
Collateral; (iii) to sign the name of any Grantor on any invoices, schedules of Collateral, freight or express receipts, or bills of lading storage receipts, warehouse receipts or other documents of title relating to any of the Collateral;
(iv) to sign the name of any Grantor on any notice to such Grantor’s Account Debtors; (v) to sign the name of any Grantor on any proof of claim in bankruptcy against Account Debtors, and on notices of lien, claims of mechanic’s
liens, or assignments or releases of mechanic’s liens securing the Accounts; (vi) to sign change of address forms to change the address to which each Grantor’s mail is to be sent to such address as the Collateral Agent shall
designate, provided that copies of any mail shall be provided to the applicable Grantor; (vii) to receive and open each Grantor’s mail, remove any Proceeds of Collateral therefrom and turn over the balance of such 

  

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mail either to the Issuer or to any trustee in bankruptcy or receiver of a Grantor, or other legal representative of a Grantor whom the Collateral Agent
determines to be the appropriate person to whom to so turn over such mail; (viii) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on
all or any of the Collateral or to enforce any rights in respect of any Collateral; (ix) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (x) to take all such
action as may be necessary to obtain the payment of any letter of credit and/or banker’s acceptance of which any Grantor is a beneficiary; (xi) to repair, manufacture, assemble, complete, package, deliver, alter or supply goods, if any,
necessary to fulfill in whole or in part the purchase order of any customer of any Grantor; (xii) to use, license or transfer any or all General Intangibles of any Grantor; and (xiii) to use, sell, assign, transfer, pledge, make any
agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent were the absolute owner
of the Collateral for all purposes; provided, however, that nothing herein contained shall be construed as requiring or obligating the Collateral Agent or any other Secured Party to make any commitment or to make any inquiry as to the nature or
sufficiency of any payment received by the Collateral Agent or any other Secured Party, or to present or file any claim or notice. It is understood and agreed that the appointment of the Collateral Agent as the agent and attorney-in-fact of the
Grantors for the purposes set forth above is coupled with an interest and is irrevocable. 
  
 5.4 No Obligation to Act. The Collateral Agent shall not be obligated to do any of the acts or to exercise any of the powers authorized by Section 5.3, but if the Collateral Agent elects to do any such act
or to exercise any of such powers, it shall not be accountable for more than it actually receives as a result of such exercise of power, and shall not be responsible to any Grantor for any act or omission to act except for any act or omission to act
as to which there is a final determination made in a judicial proceeding before a court of competent jurisdiction (in which proceeding the Collateral Agent has had notice and an opportunity to be heard) which determination includes a specific
finding that the subject act or omission to act had been grossly negligent, willful misconduct, or in actual bad faith. The provisions of Section 5.3 shall in no event relieve any Grantor of any of its obligations hereunder or under any other
Parity Lien Document with respect to the Collateral or any part thereof or impose any obligation on the Collateral Agent or any other Secured Party to proceed in any particular manner with respect to the Collateral or any part thereof, or in any way
limit the exercise by the Collateral Agent or any other Secured Party of any other or further right which it may have on the date of this Agreement or hereafter, whether hereunder, under any other Parity Lien Document, by law or otherwise.

  
 ARTICLE 6 Remedies 
  
 6.1 Remedies upon Default. Upon the occurrence and the during the
continuance of an Actionable Default, it is agreed that the Collateral Agent shall have in any jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the UCC
or other applicable law. The rights and remedies of the Collateral Agent during the continuance of an Actionable Default shall include, without limitation, the right to take any of or all the following actions at the same or different times:

  
 (a) With respect to any Collateral consisting
of Accounts, General Intangibles (including Payment Intangibles), Letter-of-Credit Rights, Instruments, Chattel Paper, Documents, and Investment Property, the Collateral Agent may collect the Collateral with or without the taking of possession of
any of the Collateral. 
  

 -14- 

 (b) With respect to any Collateral consisting of Accounts, the Collateral Agent may
(i) demand, collect and receive any amounts relating thereto, as the Collateral Agent may determine; (ii) commence and prosecute any actions in any court for the purposes of collecting any such Accounts and enforcing any other rights in
respect thereof; (iii) defend, settle or compromise any action brought and, in connection therewith, give such discharges or releases as the Collateral Agent may reasonably deem appropriate; (iv) without limiting the Collateral
Agent’s rights set forth in Section 5.3 hereof, receive, open and dispose of mail addressed to any Grantor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents
evidencing payment, shipment or storage of the goods giving rise to such Accounts or securing or relating to such Accounts, on behalf of and in the name of such Grantor; and (v) sell, assign, transfer, make any agreement in respect of, or
otherwise deal with or exercise rights in respect of, any such Accounts or the goods or services which have given rise thereto, as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes. 
  
 (c) With respect to any Collateral consisting of Investment
Property, the Collateral Agent may (i) exercise all rights of any Grantor with respect thereto, including without limitation, the right to exercise all voting and corporate rights at any meeting of the shareholders of the Issuer of any
Investment Property and to exercise any and all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any Investment Property as if the Collateral Agent was the absolute owner thereof, including the
right to exchange, at its discretion, any and all of any Investment Property upon the merger, consolidation, reorganization, recapitalization or other readjustment of the Issuer thereof, all without liability except to account for property actually
received as provided in Section 5.4 hereof; (ii) transfer such Collateral at any time to itself, or to its nominee, and receive the income thereon and hold the same as Collateral hereunder or apply it to the Parity Lien Obligations; and
(iii) demand, sue for, collect or make any compromise or settlement it deems desirable. The Grantors recognize that (a) the Collateral Agent may be unable to effect a public sale of all or a part of the Investment Property by reason of
certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77, (as amended and in effect, the “Securities Act”) or the Securities laws of various states (the “Blue Sky Laws”), but may be compelled
to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other things, to acquire the Investment Property for their own account, for investment and not with a view to the distribution or resale
thereof, (b) that private sales so made may be at prices and upon other terms less favorable to the seller than if the Investment Property were sold at public sales, (c) that neither the Collateral Agent nor any Secured Party has any
obligation to delay sale of any of the Investment Property for the period of time necessary to permit the Investment Property to be registered for public sale under the Securities Act or the Blue Sky Laws, and (d) that private sales made under

  

 -15- 

 
the foregoing circumstances shall be deemed to have been made in a commercially reasonable manner. 
  
 (d) With respect to any Collateral consisting of Inventory,
Goods, and Equipment, the Collateral Agent may conduct one or more going out of business sales, in the Collateral Agent’s own right or by one or more agents and contractors. Such sale(s) may be conducted upon any premises owned, leased, or
occupied by any Grantor. The Collateral Agent and any such agent or contractor, in conjunction with any such sale, may augment the Inventory with other goods (all of which other goods shall remain the sole property of the Collateral Agent or such
agent or contractor). Any amounts realized from the sale of such goods which constitute augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in their disposition) shall be the sole property of the Collateral
Agent or such agent or contractor and neither any Grantor nor any Person claiming under or in right of any Grantor shall have any interest therein. Each purchaser at any such going out of business sale shall hold the property sold absolutely, free
from any claim or right on the part of any Grantor. 
  
 (e) With or without legal process and with or without prior notice or demand for performance, the Collateral Agent may enter upon, occupy, and use any premises owned or occupied by each Grantor, and may exclude the Grantors from such
premises or portion thereof as may have been so entered upon, occupied, or used by the Collateral Agent. The Collateral Agent shall not be required to remove any of the Collateral from any such premises upon the Collateral Agent’s taking
possession thereof, and may render any Collateral unusable to the Grantors. In no event shall the Collateral Agent be liable to any Grantor for use or occupancy by the Collateral Agent of any premises pursuant to this Section 6.1, nor for any
charge (such as wages for the Grantors’ employees and utilities) incurred in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies (as defined herein) hereunder. 
  
 (f) The Collateral Agent may require any Grantor to assemble
the Collateral and make it available to the Collateral Agent at the Grantor’s sole risk and expense at a place or places which are reasonably convenient to both the Collateral Agent and such Grantor. 
  
 (g) Each Grantor agrees that the Collateral Agent shall have
the right, subject to applicable law, to sell or otherwise dispose of all or any part of the Collateral, at public or private sale, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. Each purchaser at any
such sale shall hold the property sold absolutely, free from any claim or right on the part of any Grantor. 
  
 (h) Unless the Collateral is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market
(in which event the Collateral Agent shall provide the Grantors such notice as may be practicable under the circumstances), the Collateral Agent shall give the Grantors at least ten (10) days’ prior written notice, by authenticated record,
of the date, time and place of any proposed public sale, and of the date after which any private sale or other disposition of the Collateral may be made. Each Grantor agrees that such written notice shall satisfy all requirements 

  

 -16- 

 
for notice to that Grantor which are imposed under the UCC or other Applicable Law with respect to the exercise of the Collateral Agent’s rights and
remedies upon default (as that term is used in the UCC). The Collateral Agent shall not be obligated to make any sale or other disposition of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale or other
disposition of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. 
  
 (i) Any public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent
may fix and state in the notice of such sale. At any sale or other disposition, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute
discretion) determine. If any of the Collateral is sold, leased, or otherwise disposed of by the Collateral Agent on credit, the Parity Lien Obligations shall not be deemed to have been reduced as a result thereof unless and until payment is
received thereon by the Collateral Agent. 
  
 (j)
At any public (or, to the extent permitted by Applicable Law, private) sale made pursuant to this Section 6.1, the Collateral Agent or any other Secured Party may bid for or purchase, free (to the extent permitted by applicable law) from any
right of redemption, stay, valuation or appraisal on the part of any Grantor, the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to the Collateral Agent or such other
Secured Party from any Grantor on account of the Parity Lien Obligations as a credit against the purchase price, and the Collateral Agent or such other Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such
property without further accountability to any Grantor therefor. 
  
 (k) For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof. The Collateral Agent shall be free to carry out such sale pursuant to such agreement
and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Actionable Defaults shall have been
remedied and the Parity Lien Obligations paid in full. 
  
 (l) As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose upon the Collateral and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. 
  
 (m) To the extent permitted by Applicable Law, each Grantor hereby waives all rights of redemption, stay, valuation and appraisal which
such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 
  

 -17- 

 6.2 Application of Proceeds. After the occurrence and during the continuance of an Actionable
Default and maturity or acceleration of any Parity Lien Obligations, the Collateral Agent shall apply the proceeds of any collection or sale of the Collateral, as well as any Collateral consisting of cash, or any Collateral granted under any other
of the Security Documents in accordance with the Parity Lien Documents. 
  
 The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale or other disposition of the Collateral by the Collateral Agent
(including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by the Collateral Agent or of the officer making the sale or other disposition shall be a sufficient discharge to the
purchaser or purchasers of the Collateral so sold or otherwise disposed of and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be
answerable in any way for the misapplication thereof. 
  
 ARTICLE 7 Perfection
of Security Interest 
  
 7.1 Perfection by Filing.
This Agreement constitutes an authenticated record, and each Grantor hereby authorizes the Collateral Agent, pursuant to the provisions of Sections 2.1 and 5.3, to file one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the Collateral, in such filing offices as the Collateral Agent shall deem appropriate, and the Grantors shall pay the Collateral Agent’s reasonable costs and expenses incurred in connection therewith. 

 
 7.2 Other Perfection, Etc. The Grantors shall at any time and from
time to time take such steps as the Collateral Agent may reasonably request for the Collateral Agent, subject to the terms of the Intercreditor Agreement (a) to obtain “control” of any Investment Property (to the extent required
herein), Deposit Accounts (to the extent required by Parity Lien Documents), Letter-of-Credit Rights (to the extent required herein) or electronic Chattel Paper (as such terms are defined in the UCC), with any agreements establishing control to be
in form and substance reasonably satisfactory to the Collateral Agent, and (c) otherwise to insure the continued perfection of the Collateral Agent’s security interest in any of the Collateral with the priority described in
Section 3.4 and of the preservation of its rights therein. 
  
 7.3 Savings Clause. Nothing contained in this Article 7 shall be construed to narrow the scope of the Collateral Agent’s Security Interest in any of the Collateral or the perfection or priority thereof or to impair or otherwise
limit any of the Collateral Agent’s Rights and Remedies hereunder except (and then only to the extent) as mandated by the UCC. 
  
 ARTICLE 8 Miscellaneous 
  
 8.1 Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in
Section 13.02 of the Indenture. 
  

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 8.2 Grant of Non-Exclusive License. Each Grantor hereby grants to the Collateral Agent a royalty
free, non-exclusive, irrevocable license, to use, apply, and affix any trademark, trade name, logo, or the like in which any Grantor now or hereafter has rights, such license being exercisable by Collateral Agent upon the occurrence and during the
continuance of an Actionable Default in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies hereunder including, without limitation, in connection with any completion of the manufacture of
Inventory or any sale or other disposition of Inventory. 
  
 8.3
Security Interest Absolute. All rights of the Collateral Agent hereunder, the Security Interest and all obligations of the Grantors hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability
of the Indenture, any other Parity Lien Document, any agreement with respect to any of the Parity Lien Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of,
or in any other term of, all or any of the Parity Lien Obligations, or any other amendment or waiver of or any consent to any departure from the Indenture, any other Parity Lien Document, or any other agreement or instrument, (c) any exchange,
release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Parity Lien Obligations, or (d) any other
circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor in respect of the Parity Lien Obligations or this Agreement. 
  

8.4 Survival of Agreement. All covenants, agreements, representations and warranties made by the Grantors herein and in any other Parity Lien
Document and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Parity Lien Document shall be considered to have been relied upon by the Collateral Agent and the other Secured
Parties and shall survive the execution and delivery of this Agreement and the other Parity Lien Documents, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Collateral Agent may have had
notice or knowledge of any default or incorrect representation or warranty, and shall continue in full force and effect as long as the Parity Lien Obligations (other than contingent obligations for which no claim has been made) are outstanding and
unpaid. 
  
 8.5 Binding Effect; Several Agreement;
Assignments. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party, and all covenants, promises and agreements by or on behalf of the Grantors that
are contained in this Agreement shall bind and inure to the benefit of each Grantor and its respective successors and assigns. This Agreement shall be binding upon each Grantor and the Collateral Agent and their respective successors and assigns,
and shall inure to the benefit of each Grantor, the Collateral Agent and the other Secured Parties and their respective successors and assigns, except that no Grantor shall have the right to assign or transfer its rights or obligations hereunder or
any interest herein or in the Collateral (and any such attempted assignment or transfer shall be void) except as expressly permitted by this Agreement or the Indenture. This Agreement shall be construed as a separate agreement with respect to each
Grantor and may be amended, modified, supplemented, waived or released with respect to any 

  

 -19- 

 
Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder. 
  
 8.6 Collateral Agent’s Fees and Expenses; Indemnification.

  
 (a) Without limiting any of their obligations
under the Indenture or the other Parity Lien Documents, the Grantors jointly and severally agree to pay all reasonable out-of-pocket expenses incurred by the Collateral Agent, including the reasonable fees, charges and disbursements of any counsel
and any outside consultants for the Collateral Agent, in connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from or other realization upon any of the Collateral,
(iii) the exercise, enforcement or protection of any of the Collateral Agent’s Rights and Remedies hereunder or (iv) the failure of any Grantor to perform or observe any of the provisions hereof. 
  
 (b) Without limiting any of their indemnification
obligations under the Indenture or the other Parity Lien Documents, the Grantors shall jointly and severally indemnify each Secured Party and each Related Party of any Secured Party (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of, (i) the execution or delivery or performance of this Agreement or any other Parity Lien Document, the performance by any Grantor of its obligations under this Agreement or any
other Parity Lien Document, or the consummation of the transactions contemplated by the Parity Lien Documents or any other transactions contemplated hereby, or (ii) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing or to the Collateral, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available
to the extent there is a specific finding in a judicial proceeding before a court of competent jurisdiction notice and (in which the Indemnitee has had an opportunity to be heard) from which finding no further appeal is available that such losses,
claims, damages, liabilities or related expenses resulted from the gross negligence or willful misconduct of any Indemnitee or any Affiliate of an Indemnitee (or of any officer, director, employee, advisor or agent of such Indemnitee or any such
Indemnitee’s Affiliates). In connection with any indemnified claim hereunder, the Indemnitee shall be entitled to select its own counsel and the Grantors shall promptly pay the reasonable fees and expenses of such counsel. 
  
 (c) Any such amounts payable as provided hereunder shall be
additional Parity Lien Obligations secured hereby and by the other Security Documents. All amounts due under this Section 8.6 shall be payable promptly after written demand therefor. 
  

 -20- 

 8.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK. 
  
 8.8 Waivers; Amendment.

  
 (a) The rights, remedies, powers, privileges,
and discretions of the Collateral Agent hereunder (herein, the “Collateral Agent’s Rights and Remedies”) shall be cumulative and not exclusive of any rights or remedies which it would otherwise have. No delay or omission by the
Collateral Agent in exercising or enforcing any of the Collateral Agent’s Rights and Remedies shall operate as, or constitute, a waiver thereof. No waiver by the Collateral Agent of any Actionable Default or of any Parity Lien Debt Default
under any other agreement shall operate as a waiver of any other Actionable Default or other Parity Lien Debt Default hereunder or under any other agreement. No single or partial exercise of any of the Collateral Agent’s Rights or Remedies, and
no express or implied agreement or transaction of whatever nature entered into between the Collateral Agent and any Person, at any time, shall preclude the other or further exercise of the Collateral Agent’s Rights and Remedies. No waiver by
the Collateral Agent of any of the Collateral Agent’s Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent occasion, nor shall it be deemed a continuing waiver. The Collateral Agent’s Rights and Remedies may
be exercised at such time or times and in such order of preference as the Collateral Agent may determine. The Collateral Agent’s Rights and Remedies may be exercised without resort or regard to any other source of satisfaction of the Parity
Lien Obligations. No waiver of any provisions of this Agreement or any other Parity Lien Document or consent to any departure by any Grantor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on any Grantor in any case shall entitle such Grantor or any other Grantor to any other or further notice or
demand in similar or other circumstances. 
  
 (b)
Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into between the Collateral Agent and the Grantor or Grantors with respect to whom such waiver, amendment or
modification is to apply, subject to any consent required in accordance with the Parity Lien Documents. 
  
 8.9 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A JURY IN ANY TRIAL OF
ANY CASE OR CONTROVERSY IN WHICH ANY PARTY HERETO IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST ANY PARTY HERETO OR IN WHICH ANY PARTY HERETO IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT
OF OR RELATES TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO 

  

 -21- 

 
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS SECTION 8.9. 
  
 8.10 Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

  
 8.11 Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 8.12 Headings. Article and Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 8.13 Jurisdiction; Consent to Service of Process. 
  
 (a) The Grantors agree that any suit for the enforcement of this Agreement or any other Parity Lien Document may be brought in any New
York state or federal court sitting in New York County as the Collateral Agent may elect in its sole discretion and consent to the non-exclusive jurisdiction of such courts. The Grantors hereby waive any objection which they may now or hereafter
have to the venue of any such suit or any such court or that such suit is brought in an inconvenient forum. The Grantors agree that any action commenced by any Grantor asserting any claim or counterclaim arising under or in connection with this
Agreement or any other Parity Lien Document shall be brought solely in any New York state or federal court sitting in New York County as the Collateral Agent may elect in its sole discretion and consent to the exclusive jurisdiction of such courts
with respect to any such action. 
  
 (b) Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in any applicable Parity Lien Document. Nothing in this Agreement or any other Parity Lien Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law. 
  
 8.14 Joinder to Security Agreement. As contemplated in the Indenture, additional Subsidiaries may from time to time become parties hereto and additional Grantors hereunder by execution and delivery of a Joinder to Security Agreement.
Such Joinder to Security Agreement shall be in a form reasonably acceptable to the Collateral Agent and be effective upon delivery by such additional Grantor, without further action or consent or notice to any party hereto. Upon delivery of such
Joinder to Security Agreement, all obligations of each Grantor hereunder shall be joint and several with the obligations of each other Grantor hereunder. 
  

 -22- 

 8.15 Termination. This Agreement shall terminate and the Liens created hereunder shall be released
as provided for under the Indenture. 
  
 [SIGNATURE PAGES
FOLLOW] 
  

 -23- 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement under seal as of the day and
year first above written. 
  

			
	GRANTORS:
	
	 BROOKSTONE, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE COMPANY, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 ADVANCED AUDIO CONCEPTS, LIMITED.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE HOLDINGS, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE PROPERTIES, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE PURCHASING, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President

  

 S/1 

			
	 BROOKSTONE RETAIL PUERTO RICO, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE STORES, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 GARDENERS EDEN, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	COLLATERAL AGENT:
	
	 WELLS FARGO BANK, N.A.

		
	 By:
	 	/s/    JOSEPH P.
O’DONNELL        
	 Name:
	 	Joseph P. O’Donnell
	 Title:
	 	Vice President

  

 S/2

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