Document:

Revolving Credit Loan Note

 Exhibit 10.23 

			
	WELLS FARGO HSBC TRADE BANK	  	REVOLVING CREDIT LOANS NOTE

  

			
	$10,000,000	  	 San Francisco, California
 July 17, 2006

 FOR VALUE RECEIVED, the undersigned DESIGN WITHIN REACH, INC., a Delaware corporation (“Borrower”)
promises to pay to the order of WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”) at its office at 333 Market Street, 3rdst Floor, San Francisco, CA 94105, or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of Ten
Million Dollars ($10,000,000) or so much thereof as may be advanced and be outstanding, with interest thereon, to be computed on each advance from the date of its disbursement at a rate per annum (computed on the basis of a 360-day year, actual days
elapsed) one-quarter percent (.25%) above the Prime Rate in effect from time to time. The “Prime Rate” is a base rate that WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) from time to time. The “Prime Rate” means the
rate most recently announced by Wells Fargo Bank, National Association (“Bank”) at its principal office in San Francisco, California as its Prime Rate, with the understanding that the Prime Rate is one of Bank’s base rates and serves
as the basis upon which effective rates of interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof after its announcement in such internal publication or publications as Bank may designate. Any
change in an interest rate resulting from a change in the Prime Rate shall become effective as of 12:01 a.m. of the Banking Day on which each change in the Prime Rate is announced by Bank. 
 Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the
limitations, terms and conditions of this Note and of that certain Amended and Restated Credit Agreement between Borrower and Trade Bank dated as of July 17, 2006, as amended from time to time (“Credit Agreement”); provided that the
outstanding principal balance of this Note shall at no time exceed the principal amount stated above. The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of
principal payments made hereon by or for any Borrower, which balance may be endorsed hereon from time to time by the holder. 
 Interest accrued on this Note
shall be payable on the last day of each month, commencing July 31, 2006. The outstanding principal balance of this Note shall be due and payable in full on November 30, 2007. Each payment made on this Note shall be credited first, to any
interest then due and second, to the outstanding principal balance hereof. 
 Advances hereunder, to the total amount of the principal sum stated above, may
be made by the holder at the oral or written request of (a) Ray Brunner, Ken La Honta, Peter Kruglinski, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the
revocation of such authority is received by the holder at the office designated above, or (b) any person, with respect to advances deposited to the credit of any account of any Borrower with the holder, which advances, when so deposited, shall
be conclusively presumed to have been made to or for the benefit of each Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account. The holder shall have no
obligation to determine whether any person requesting an advance is or has been authorized by any Borrower. 
 Upon the occurrence of any Event of Default as
defined in the Credit Agreement, the holder of this Note, at the holder’s option, may declare all sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, protest or notice of dishonor,
all of which are expressly waived by each Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate. Each Borrower shall pay to the holder immediately upon demand the full amount
of all payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of the holder’s in-house counsel), incurred by the holder in connection with the
enforcement of the holder’s rights and/or the collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for
declaratory relief, and including any of the foregoing incurred in connection with any bankruptcy proceeding relating to any Borrower. 
 Should more than
one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several. 
 This Note shall be governed by and
construed in accordance with the laws of the State of California, except to the extent Trade Bank has greater rights or remedies under Federal law, whether as a national bank or otherwise, in which case such choice of California law shall not be
deemed to deprive Trade Bank of any such rights and remedies as may be available under Federal law. 
 This Note replaces and supersedes in its entirety that
certain Revolving Credit Loans Note dated December 23, 2005 in the maximum amount of $10,000,000 executed by Borrower in favor of Trade Bank. 
  

			
	“BORROWER”
	
	DESIGN WITHIN REACH, INC.
		
	By:	 	 /s/ Ray Brunner

		 	Ray Brunner
	Title:	 	Chief Executive Officer
	
	Borrower’s Address:
	225 Bush Street, 20th Floor
	San Francisco, CA 94104

  

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 ADDENDUM TO PROMISSORY NOTE 
 THIS ADDENDUM is attached to and made a part of that certain promissory note executed by DESIGN WITHIN REACH, INC., a Delaware corporation
(“Borrower”) and payable to WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION, or order, dated as of July 17, 2006, in the principal amount of Ten Million Dollars ($10,000,000) (the “Note”). 
 The following arbitration provision is hereby incorporated into the Note: 
 ARBITRATION: 
 1. Arbitration. The parties hereto agree, upon demand by any
party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in tort, contract or otherwise arising out of or
relating to in any way (i) the loan and related loan and security documents which are the subject of this Note and its negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation,
inducement, enforcement, default or termination; or (ii) requests for additional credit. 
 2. Governing Rules. Any
arbitration proceeding will (i) proceed in a location in California selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding
any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties shall mutually agree upon, in accordance with the AAA’s commercial dispute
resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the arbitration shall be conducted in accordance with the AAA’s optional procedures for
large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to, as applicable, as the “Rules”). If there is any inconsistency between the
terms hereof and the Rules, the terms and procedures set forth herein shall control. Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in
compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar applicable state law. 
 3. No Waiver; Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to
(i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as
replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to
arbitration or reference hereunder, including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph. 
 4. Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and
who shall not render an award of greater than $5,000,000.00. Any dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of three arbitrators; provided however, that all three arbitrators must
actively participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal judiciary of California, in either case with a minimum of ten
years experience in the substantive law applicable to the subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any
claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for
summary adjudication. The arbitrator shall resolve all disputes in accordance with the substantive law of California and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief
as is necessary to make effective any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could
pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance of
an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action
for judicial relief. 
 5. Discovery. In any arbitration proceeding discovery will be permitted in accordance with the Rules.
All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date and within 180 days of the filing of the dispute with the AAA. Any requests for
an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no alternative means for
obtaining information is available. 
 6. Class Proceedings and Consolidations. The resolution of any dispute arising pursuant
to the terms of this Note shall be determined by a separate arbitration proceeding and such dispute shall not be consolidated with other disputes or included in any class proceeding. 
 7. Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses of the arbitration proceeding. 
 8. Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute shall be submitted to
arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless (i) the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the
arbitration, or (ii) all parties to the arbitration waive any rights or benefits that might accrue to them by virtue of the single action rule statute of California, thereby agreeing that all indebtedness and obligations of the parties, and all
mortgages, liens and security interests securing such indebtedness and obligations, shall remain fully valid and enforceable. If any such dispute is not submitted to arbitration, the dispute 

  

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shall be referred to a referee in accordance with California Code of Civil Procedure Section 638 et seq., and this general reference agreement is
intended to be specifically enforceable in accordance with said Section 638. A referee with the qualifications required herein for arbitrators shall be selected pursuant to the AAA’s selection procedures. Judgment upon the decision
rendered by a referee shall be entered in the court in which such proceeding was commenced in accordance with California Code of Civil Procedure Sections 644 and 645. 
 9. Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the
dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable
law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most directly related to the documents between the parties or the subject matter of the dispute shall
control. This Note may be amended or modified only in writing signed by each party hereto. If any provision of this Note shall be held to be prohibited by or invalid under applicable law such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or any remaining provisions of this Note. This arbitration provision shall survive termination, amendment or expiration of any of the documents or any relationship
between the parties. 
 IN WITNESS WHEREOF, this Addendum has been executed as of the same date as the Note. 
  

			
	“BORROWER”
	
	DESIGN WITHIN REACH, INC.
		
	By:	 	 /s/ Ray Brunner

		 	Ray Brunner
	Title:	 	Chief Executive Officer

  

 Page 3 of 3Security Agreement

 Exhibit 10.24 
 SECURITY AGREEMENT: 
 EQUIPMENT AND FIXTURES 
 1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned DESIGN WITHIN REACH, INC., a Delaware corporation, or any of them
(“Debtor”), hereby grants and transfers to WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”) a security interest in all goods, tools, machinery, furnishings, furniture and other equipment and fixtures, now or at
any time hereafter, and prior to the termination hereof, owned or acquired by Debtor, wherever located, whether in the possession of Debtor or any other person and whether located on Debtor’s property or elsewhere, and all improvements,
replacements, accessions and additions thereto and embedded software included therein (collectively called “Collateral”), and including all of the foregoing which are now or hereafter affixed or to be affixed to, and whether or not severed
and removed from, the real property located at the addresses set forth on Schedule A attached hereto and incorporated herein by this reference, together with whatever is receivable or received when any of the Collateral or proceeds
thereof are sold, leased, collected, exchanged or otherwise disposed of, whether such disposition is voluntary or involuntary, including without limitation, (a) all accounts, contract rights, chattel paper (whether electronic or tangible),
instruments, promissory notes, documents, general intangibles, payment intangibles and other rights to payment of every kind now or at any time hereafter arising out of any such sale, lease, collection, exchange or other disposition of any of the
foregoing, (b) all rights to payment, including returned premiums, with respect to any insurance relating to any of the foregoing, and (c) all rights to payment with respect to any claim or cause of action affecting or relating to any of
the foregoing (hereinafter called “Proceeds”). 
 2. OBLIGATIONS SECURED. The obligations secured hereby are the payment and
performance of: (a) all present and future Indebtedness of Debtor to Trade Bank; (b) all obligations of Debtor and rights of Trade Bank under this Agreement; and (c) all present and future obligations of Debtor to Trade Bank of other
kinds. The word “Indebtedness” is used herein in its most comprehensive sense and includes any and all advances, debts, obligations and liabilities of Debtor, or any of them, heretofore, now or hereafter made incurred or created, whether
voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, including under any swap, derivative, foreign exchange, hedge, deposit, treasury management or
other similar transaction or arrangement, and whether Debtor may be liable individually or jointly with others, or whether recovery upon such Indebtedness may be or hereafter becomes unenforceable. 
 3. TERMINATION. This Agreement will terminate upon the performance of all obligations of Debtor to Trade Bank, including without limitation, the payment
of all Indebtedness of Debtor to Trade Bank, and the termination of all commitments of Trade Bank to extend credit to Debtor, existing at the time Trade Bank receives written notice from Debtor of the termination of this Agreement. 
 4. OBLIGATIONS OF TRADE BANK. Trade Bank has no obligation to make any loans hereunder. Any money received by Trade Bank in respect of the Collateral may
be deposited, at Trade Bank’s option, into a non-interest bearing account over which Debtor shall have no control, and the same shall, for all purposes, be deemed Collateral hereunder. 
  

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 5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Trade Bank that:
(a) Debtor’s legal name is exactly as set forth on the first page of this Agreement, and all of Debtor’s organizational documents or agreements delivered to Trade Bank are complete and accurate in every respect; (b) Debtor is the
owner and has possession or control of the Collateral and Proceeds; (c) Debtor has the exclusive right to grant a security interest in the Collateral and Proceeds; (d) all Collateral and Proceeds are genuine, free from liens, adverse
claims, setoffs, default, prepayment, defenses and conditions precedent of any kind or character, except the lien created hereby or as otherwise agreed to by Trade Bank, or as heretofore disclosed by Debtor to Trade Bank, in writing; (e) all
statements contained herein are true and complete in all material respects; (f) no financing statement covering any of the Collateral or Proceeds, and naming any secured party other than Trade Bank, is on file in any public office; and
(g) Debtor is not in the business of selling goods of the kind included within the Collateral subject to this Agreement, and Debtor acknowledges that no sale or other disposition of any Collateral, including without limitation, any Collateral
which Debtor may deem to be surplus, has been or shall be consented to or acquiesced in by Trade Bank, except as specifically set forth in writing by Trade Bank. 
 6. COVENANTS OF DEBTOR. 
 (a) Debtor agrees in general: (i) to pay Indebtedness secured hereby when due;
(ii) to indemnify Trade Bank against all losses, claims, demands, liabilities and expenses of every kind caused by property subject hereto; (iii) to permit Trade Bank to exercise its powers; (iv) to execute and deliver such documents
as Trade Bank deems necessary to create, perfect and continue the security interests contemplated hereby; (v) not to change its name, and as applicable, its chief executive office, its principal residence or the jurisdiction in which it is
organized and/or registered without giving Trade Bank prior written notice thereof; (vi) not to change the places where Debtor keeps any Collateral or Debtor’s records concerning the Collateral and Proceeds without giving Trade Bank prior
written notice of the address to which Debtor is moving same; and (vii) to cooperate with Trade Bank in perfecting all security interests granted herein and in obtaining such agreements from third parties as Trade Bank deems necessary, proper
or convenient in connection with the preservation, perfection or enforcement of any of its rights hereunder. 
 (b) Debtor agrees with regard
to the Collateral and Proceeds, unless Trade Bank agrees otherwise in writing: (i) that Trade Bank is authorized to file financing statements in the name of Debtor to perfect Trade Bank’s security interest in Collateral and Proceeds;
(ii) to insure the Collateral with Trade Bank named as loss payee, in form, substance and amounts, under agreements, against risks and liabilities, and with insurance companies satisfactory to Trade Bank; (iii) to operate the Collateral in
accordance with all applicable statutes, rules and regulations relating to the use and control thereof, and not to use the Collateral for any unlawful purpose or in any way that would void any insurance required to be carried in connection
therewith; (iv) not to permit any lien on the Collateral or Proceeds, including without limitation, liens arising from repairs to or storage of the Collateral, except in favor of Trade Bank; (v) to pay when due all license fees,
registration fees and other charges in connection with any Collateral; (vi) not to remove the Collateral from Debtor’s premises except in the ordinary course of Debtor’s business; (vii) not to sell, hypothecate or otherwise
dispose of, nor permit the transfer by operation of law of, any of the Collateral or Proceeds or any interest therein; (viii) not to rent, lease or charter the Collateral; (ix) to permit Trade Bank to inspect the Collateral at any time;
(x) to keep, in accordance with generally accepted accounting principles, complete and accurate records regarding all Collateral and Proceeds, and to permit Trade Bank to inspect the same and make copies thereof at any reasonable time;
(xi) if requested by Trade Bank, to receive and 

  

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use reasonable diligence to collect Proceeds, in trust and as the property of Trade Bank, and to immediately endorse as appropriate and deliver such Proceeds
to Trade Bank daily in the exact form in which they are received together with a collection report in form satisfactory to Trade Bank; (xii) not to commingle Proceeds or collections thereunder with other property; (xiii) to give only
normal allowances and credits and to advise Trade Bank thereof immediately in writing if they affect any Collateral or Proceeds in any material respect; (xiv) in the event Trade Bank elects to receive payments of Proceeds hereunder, to pay all
expenses incurred by Trade Bank in connection therewith, including expenses of accounting, correspondence, collection efforts, reporting to account or contract debtors, filing, recording, record keeping and expenses incidental thereto; and
(xv) to provide any service and do any other acts which may be necessary to maintain, preserve and protect all Collateral and, as appropriate and applicable, to keep the Collateral in good and saleable condition and repair, to deal with the
Collateral in accordance with the standards and practices adhered to generally by owners of like property, and to keep all Collateral and Proceeds free and clear of all defenses, rights of offset and counterclaims. 
 7. POWERS OF TRADE BANK. Debtor appoints Trade Bank its true attorney in fact to perform any of the following powers, which are coupled with an interest,
are irrevocable until termination of this Agreement and may be exercised from time to time by Trade Bank’s officers and employees, or any of them, whether or not Debtor is in default: (a) to perform any obligation of Debtor hereunder in
Debtor’s name or otherwise; (b) to give notice to account debtors or others of Trade Bank’s rights in the Collateral and Proceeds, to enforce or forebear from enforcing the same and make extension or modification agreements with
respect thereto; (c) to release persons liable on Proceeds and to give receipts and acquaintances and compromise disputes in connection therewith; (d) to release or substitute security; (e) to resort to security in any order;
(f) to prepare, execute, file, record or deliver notes, assignments, schedules, designation statements, financing statements, continuation statements, termination statements, statements of assignment, applications for registration or like
papers to perfect, preserve or release Trade Bank’s interest in the Collateral and Proceeds; (g) to receive, open and read mail addressed to Debtor; (h) to take cash, instruments for the payment of money and other property to which
Trade Bank is entitled; (i) to verify facts concerning the Collateral and Proceeds by inquiry of obligors thereon, or otherwise, in its own name or a fictitious name; (j) to endorse, collect, deliver and receive payment under instruments
for the payment of money constituting or relating to Proceeds; (k) to prepare, adjust, execute, deliver and receive payment under insurance claims, and to collect and receive payment of and endorse any instrument in payment of loss or returned
premiums or any other insurance refund or return, and to apply such amounts received by Trade Bank, at Trade Bank’s sole option, toward repayment of the Indebtedness or replacement of the Collateral; (l) to exercise all rights, powers and
remedies which Debtor would have, but for this Agreement, with respect to all the Collateral and Proceeds subject hereto; (m) to enter onto Debtor’s premises in inspecting the Collateral; and (n) to do all acts and things and execute
all documents in the name of Debtor or otherwise, deemed by Trade Bank as necessary, proper and convenient in connection with the preservation, perfection or enforcement of its rights hereunder. 
 8. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay, prior to delinquency, all insurance premiums, taxes, charges, liens
and assessments against the Collateral and Proceeds, and upon the failure of Debtor to do so, Trade Bank at its option may pay any of them and shall be the sole judge of the legality or validity thereof and the amount necessary to discharge the
same. Any such payments made by Trade Bank shall be obligations of Debtor to Trade Bank, due and payable immediately upon demand, together with interest at a rate determined in accordance with the provisions of this Agreement, and shall be secured
by the Collateral and Proceeds, subject to all terms and conditions of this Agreement. 
  

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 9. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an “Event of
Default” under this Agreement: (a) any default in the payment or performance of any obligation, or any defined event of default, under (i) any contract or instrument evidencing any Indebtedness, or (ii) any other agreement
between Debtor and Trade Bank, including without limitation any loan agreement, relating to or executed in connection with any Indebtedness; (b) any representation or warranty made by Debtor herein shall prove to be incorrect, false or
misleading in any material respect when made; (c) Debtor shall fail to observe or perform any obligation or agreement contained herein; (d) any impairment of the rights of Trade Bank in any Collateral or Proceeds, or any attachment or like
levy on any property of Debtor; and (e) Trade Bank, in good faith, believes any or all of the Collateral and/or Proceeds to be in danger of misuse, dissipation, commingling, loss, theft, damage or destruction, or otherwise in jeopardy or
unsatisfactory in character or value. 
 10. REMEDIES. Upon the occurrence of any Event of Default, Trade Bank shall have the right to
declare immediately due and payable all or any Indebtedness secured hereby and to terminate any commitments to make loans or otherwise extend credit to Debtor. Trade Bank shall have all other rights, powers, privileges and remedies granted to a
secured party upon default under the California Uniform Commercial Code or otherwise provided by law, including without limitation, the right (a) to contact all persons obligated to Debtor on any Collateral or Proceeds and to instruct such
persons to deliver all Collateral and/or Proceeds directly to Trade Bank, and (b) to sell, lease, license or otherwise dispose of any or all Collateral. All rights, powers, privileges and remedies of Trade Bank shall be cumulative. No delay,
failure or discontinuance of Trade Bank in exercising any right, power, privilege or remedy hereunder shall affect or operate as a waiver of such right, power, privilege or remedy; nor shall any single or partial exercise of any such right, power,
privilege or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by Trade Bank of any default hereunder,
or any such waiver of any provisions or conditions hereof, must be in writing and shall be effective only to the extent set forth in writing. It is agreed that public or private sales or other dispositions, for cash or on credit, to a wholesaler or
retailer or investor, or user of property of the types subject to this Agreement, or public auctions, are all commercially reasonable since differences in the prices generally realized in the different kinds of dispositions are ordinarily offset by
the differences in the costs and credit risks of such dispositions. While an Event of Default exists: (a) Debtor will deliver to Trade Bank from time to time, as requested by Trade Bank, current lists of all Collateral and Proceeds;
(b) Debtor will not dispose of any Collateral or Proceeds except on terms approved by Trade Bank; (c) at Trade Bank’s request, Debtor will assemble and deliver all Collateral and Proceeds, and books and records pertaining thereto, to
Trade Bank at a reasonably convenient place designated by Trade Bank; and (d) Trade Bank may, without notice to Debtor, enter onto Debtor’s premises and take possession of the Collateral. Debtor further agrees that Trade Bank shall have no
obligation to process or prepare any Collateral for sale or other disposition. 
 11. DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF
INDEBTEDNESS. In disposing of Collateral hereunder, Trade Bank may disclaim all warranties of title, possession, quiet enjoyment and the like. Any proceeds of any disposition of any Collateral or Proceeds, or any part thereof, may be applied by
Trade Bank to the payment of expenses incurred by Trade Bank in connection with the foregoing, including reasonable attorneys’ fees, and the balance of such proceeds may be applied by Trade Bank toward the 

  

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payment of the Indebtedness in such order of application as Trade Bank may from time to time elect. Upon the transfer of all or any part of the Indebtedness,
Trade Bank may transfer all or any part of the Collateral or Proceeds and shall be fully discharged thereafter from all liability and responsibility with respect to any of the foregoing so transferred, and the transferee shall be vested with all
rights and powers of Trade Bank hereunder with respect to any of the foregoing so transferred; but with respect to any Collateral or Proceeds not so transferred, Trade Bank shall retain all rights, powers, privileges and remedies herein given.

 12. STATUTE OF LIMITATIONS. Until all Indebtedness shall have been paid in full and all commitments by Trade Bank to extend credit to
Debtor have been terminated, the power of sale or other disposition and all other rights, powers, privileges and remedies granted to Trade Bank hereunder shall continue to exist and may be exercised by Trade Bank at any time and from time to time
irrespective of the fact that the Indebtedness or any part thereof may have become barred by any statute of limitations, or that the personal liability of Debtor may have ceased, unless such liability shall have ceased due to the payment in full of
all Indebtedness secured hereunder. 
 13. MISCELLANEOUS. When there is more than one Debtor named herein: (a) the word
“Debtor” shall mean all or any one or more of them as the context requires; (b) the obligations of each Debtor hereunder are joint and several; and (c) until all Indebtedness shall have been paid in full, no Debtor shall have any
right of subrogation or contribution, and each Debtor hereby waives any benefit of or right to participate in any of the Collateral or Proceeds or any other security now or hereafter held by Trade Bank. Debtor hereby waives any right to require
Trade Bank to (i) proceed against Debtor or any other person, (ii) marshal assets or proceed against or exhaust any security from Debtor or any other person, (iii) perform any obligation of Debtor with respect to any Collateral or
Proceeds, and (d) make any presentment or demand, or give any notice of nonpayment or nonperformance, protest, notice of protest or notice of dishonor hereunder or in connection with any Collateral or Proceeds. Debtor further waives any right
to direct the application of payments or security for any Indebtedness of Debtor or indebtedness of customers of Debtor. 
 14. NOTICES. All
notices, requests and demands required under this Agreement must be in writing, addressed to Trade Bank at the address specified in any other loan documents entered into between Debtor and Trade Bank and to Debtor at the address of its chief
executive office (or principal residence, if applicable) specified below or to such other address as any party may designate by written notice to each other party, and shall be deemed to have been given or made as follows: (a) if personally
delivered, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy, upon receipt. 
 15. COSTS, EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Trade Bank immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of Trade Bank’s in-house counsel), expended or incurred by Trade Bank in connection with (a) the perfection and
preservation of the Collateral or Trade Bank’s interest therein, and (b) the realization, enforcement and exercise of any right, power, privilege or remedy conferred by this Agreement, whether incurred at the trial or appellate level, in
an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Trade Bank or any other
person) relating to Debtor or in any way affecting any of the Collateral or Trade Bank’s ability to exercise any of its rights or 

  

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remedies with respect thereto. All of the foregoing shall be paid by Debtor with interest from the date of demand until paid in full at a rate per annum
equal to the greater of ten percent (10%) or Wells Fargo Bank’s Prime Rate in effect from time to time. 
 16. SUCCESSORS; ASSIGNS;
AMENDMENT. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties, and may be amended or modified only in writing signed by Trade Bank and
Debtor. 
 17. OBLIGATIONS OF MARRIED PERSONS. Any married person who signs this Agreement as Debtor hereby expressly agrees that recourse
may be had against his or her separate property for all his or her Indebtedness to Trade Bank secured by the Collateral and Proceeds under this Agreement. 
 18. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or any remaining provisions of this Agreement. 
 19. GOVERNING LAW. This
Agreement shall be governed by and construed in accordance with the laws of the State of California. 
 Debtor warrants that Debtor is an
organization registered under the laws of Delaware. 
 Debtor warrants that its chief executive office (or principal residence, if
applicable) is located at the following address: 225 Bush Street, 20th Floor, San Francisco, CA 94104. 
 Debtor warrants that the Collateral
(except goods in transit) is located or domiciled at the following additional addresses: See Schedule B attached hereto, all terms of which are incorporated herein by this reference. 
 IN WITNESS WHEREOF, this Agreement has been duly executed as of July 17, 2006. 
  

			
	DESIGN WITHIN REACH, INC.
		
	By:	 	 /s/ Ray Brunner

	Title:	 	President and Chief Executive Officer

  

 -6- 

 SCHEDULE A TO SECURITY AGREEMENT 
 This Schedule A is attached to and made a part of that certain Security Agreement: Equipment and Fixtures dated as of July 17, 2006, executed by
DESIGN WITHIN REACH, INC., a Delaware corporation (“Debtor”) for the benefit of WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”). 
 ADDRESSES OF REAL PROPERTY: 
 Store Locations: 
 4821 N Scottsdale Rd. Ste 101, Scottsdale, AZ 85251 
 1770 Fourth Street, Berkeley, CA 94710 
 9647 Brighton Way, Beverly Hills, CA 90210 
 1152 Burlingame Ave., Burlingame,
CA 94010 
 973 Moraga Road, Lafayette, CA 94549 
 8070 Beverly
Blvd., Los Angeles, CA 90048 
 451 Manhattan Beach Blvd., Unit B100, Manhattan Beach, CA 90266 
 420 Miller Avenue, Mill Valley, CA 94941 
 Fashion Island - 401 Newport Center Dr A101, Newport Beach, CA 92660 

447 University Ave., Palo Alto, CA 94301 
 60 West Green Street, Pasadena,
CA 91105 
 1020 16th Street, Sacramento, CA 95814 
 393 7th Ave.,
San Diego, CA 92101 
 1913 Fillmore Street, San Francisco, CA 94115 
 455 Jackson Street, San Francisco, CA 94111 
 2299 Alameda St., San Francisco, CA 94103 
 Santana Row - 3080 Stevens Creek Blvd #1010, San Jose, CA 95128 
 607 State
Street, Santa Barbara, CA 93101 
 332-A Santa Monica Blvd., Santa Monica, CA 90401 
 2049 Broadway, Boulder, CO 80302 
 2500 E 2nd Ave., Suite 120, Denver, CO 80206 
 86 Greenwich Ave., Greenwich, CT 06830 
 36 Elm Street, Westport, CT 06880

 1838 Columbia Rd. NW, Washington, DC 20009 
 3307 Cady’s
Alley N.W., Washington, DC 20007 
 77 Miracle Mile, Coral Gables, FL 33134 
 927 Lincoln Road, Ste 101, (at Michigan Ave.), Miami Beach, FL 33139 
 230 Clematis St., West Palm Beach, FL 33401

 295 E Paces Ferry Rd NE, Atlanta, GA 30305 
 1574 North
Kingsbury, Chicago, IL 60622 
 10 East Ohio, (at N. State Street), Chicago, IL 60611 
 1710 Sherman Avenue, Evanston, IL 60201 
 519 Tremont Street, Boston, MA 02116 
 1030 Massachusetts Ave., Cambridge, MA 02138 
 4828 Saint Elmo Avenue,
Bethesda, MD 20814 
 168 West Maple Road, Birmingham, MI 48009 
 2939 Hennepin Avenue South, Minneapolis, MN 55408 
 42 Maryland Plaza, St. Louis, MO 63108 
 55 Hartz Way, Secaucus, NJ 07094 
 30 Nassau St., Princeton, NJ 08542

 750 South Rampart Blvd, Ste. 4, Las Vegas, NV 89145 
 30 Park Place, East Hampton, NY 11937 
 142 Wooster St., New York, NY 10012 
 76 Montague St., Brooklyn, NY 11201 
 341 Columbus Ave., New York, NY 10024

 27 East 62nd St., New York, NY 10021 
 903 Broadway Line, (at
20th Street), New York, NY 10010 
 124 Hudson St., New York City, NY 10013 
 408 West 14th Street, New York, NY 10014 
 1085 Northern Blvd., Roslyn, NY 11576 
 28849 Chagrin Blvd., Cleveland, OH 44122 
 3955 Townsfair Way, Space L-10,
Columbus, OH 43219 
 1200 N.W. Everett, Portland, OR 97209 
 7475
SW Bridgeport Rd., Tigard, OR 97224 
 1710 Walnut Street, Philadelphia, PA 19103 
 210 Westminster Street, Providence, RI 02903 
 200 West Second St., Austin, TX 78701 
 4524 McKinney Ave, Suite 103, Dallas, TX 75205 
 1956 West Gray, Houston, TX
77019 
 252 Grand Avenue, Southlake Town Square, Southlake, TX 76092 
 126 Central Way, Kirkland, WA 98033 
 1918 First Avenue, Seattle, WA 98101 
 167 N. Broadway, Milwaukee, WI 53202 
 Headquarters Location: 
 225 Bush Street, 20th Floor, San Francisco, CA 94104 
 Warehouse Location: 
 2360 Progress Drive, Hebron, KY 41048 
  

 SCHEDULE B TO SECURITY AGREEMENT 
 This Schedule B is attached to and made a part of that certain Security Agreement: Equipment and Fixtures dated as of July 17, 2006, executed by
DESIGN WITHIN REACH, INC., a Delaware corporation (“Debtor”) for the benefit of WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”). 
 Store Locations: 
 4821 N Scottsdale Rd. Ste 101, Scottsdale, AZ 85251 
 1770 Fourth Street, Berkeley, CA 94710 
 9647 Brighton Way, Beverly Hills, CA
90210 
 1152 Burlingame Ave., Burlingame, CA 94010 
 973 Moraga
Road, Lafayette, CA 94549 
 8070 Beverly Blvd., Los Angeles, CA 90048 
 451 Manhattan Beach Blvd., Unit B100, Manhattan Beach, CA 90266 
 420 Miller Avenue, Mill Valley, CA 94941 
 Fashion Island - 401 Newport Center Dr A101, Newport Beach, CA 92660 
 447
University Ave., Palo Alto, CA 94301 
 60 West Green Street, Pasadena, CA 91105 
 1020 16th Street, Sacramento, CA 95814 
 393 7th Ave., San Diego, CA 92101 
 1913 Fillmore Street, San Francisco, CA 94115 
 455 Jackson Street, San
Francisco, CA 94111 
 2299 Alameda St., San Francisco, CA 94103 
 Santana Row - 3080 Stevens Creek Blvd #1010, San Jose, CA 95128 
 607 State Street, Santa Barbara, CA 93101 
 332-A Santa Monica Blvd., Santa Monica, CA 90401 
 2049 Broadway, Boulder, CO
80302 
 2500 E 2nd Ave., Suite 120, Denver, CO 80206 
 86
Greenwich Ave., Greenwich, CT 06830 
 36 Elm Street, Westport, CT 06880 
 1838 Columbia Rd. NW, Washington, DC 20009 
 3307 Cady’s Alley N.W., Washington, DC 20007 
 77 Miracle Mile, Coral Gables, FL 33134 
 927 Lincoln Road, Ste 101, (at
Michigan Ave.), Miami Beach, FL 33139 
 230 Clematis St., West Palm Beach, FL 33401 
 295 E Paces Ferry Rd NE, Atlanta, GA 30305 
 1574 North Kingsbury, Chicago, IL 60622 
 10 East Ohio, (at N. State Street), Chicago, IL 60611 
 1710 Sherman Avenue,
Evanston, IL 60201 
 519 Tremont Street, Boston, MA 02116 
 1030
Massachusetts Ave., Cambridge, MA 02138 
 4828 Saint Elmo Avenue, Bethesda, MD 20814 
 168 West Maple Road, Birmingham, MI 48009 
 2939 Hennepin Avenue South, Minneapolis, MN 55408 
 42 Maryland Plaza, St. Louis, MO 63108 
  

 55 Hartz Way, Secaucus, NJ 07094 
 30 Nassau St., Princeton, NJ 08542 
 750 South Rampart Blvd, Ste. 4, Las Vegas, NV 89145 
 30 Park Place, East Hampton, NY 11937 
 142 Wooster St., New York, NY 10012

 76 Montague St., Brooklyn, NY 11201 
 341 Columbus Ave., New
York, NY 10024 
 27 East 62nd St., New York, NY 10021 
 903
Broadway Line, (at 20th Street), New York, NY 10010 
 124 Hudson St., New York City, NY 10013 
 408 West 14th Street, New York, NY 10014 
 1085 Northern Blvd., Roslyn, NY 11576 
 28849 Chagrin Blvd., Cleveland, OH 44122 
 3955 Townsfair Way, Space L-10,
Columbus, OH 43219 
 1200 N.W. Everett, Portland, OR 97209 
 7475
SW Bridgeport Rd., Tigard, OR 97224 
 1710 Walnut Street, Philadelphia, PA 19103 
 210 Westminster Street, Providence, RI 02903 
 200 West Second St., Austin, TX 78701 
 4524 McKinney Ave, Suite 103, Dallas, TX 75205 
 1956 West Gray, Houston, TX
77019 
 252 Grand Avenue, Southlake Town Square, Southlake, TX 76092 
 126 Central Way, Kirkland, WA 98033 
 1918 First Avenue, Seattle, WA 98101 
 167 N. Broadway, Milwaukee, WI 53202 
 225 Bush Street, 20th Floor, San Francisco, CA 94104 
 Warehouse Location: 
 2360 Progress Drive, Hebron, KY 41048

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