Document:

EX-10.1

 Exhibit 10.1 
 EXECUTION COPY 
 FIRST AMENDMENT TO THIRD AMENDED AND RESTATED

 SENIOR SECURED CREDIT AGREEMENT 

This FIRST AMENDMENT TO THIRD AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT (this “First
Amendment”) is dated as of February 11, 2013 among: 
 ORCHARD SUPPLY HARDWARE LLC, a
Delaware limited liability company (the “Borrower”); 
 ORCHARD SUPPLY HARDWARE STORES
CORPORATION, a Delaware corporation (“Holdings”); 
 Those certain Subsidiaries of
the Borrower parties hereto (together with Holdings, collectively, the “Loan Guarantors”); 

The Lenders party hereto (the “Lenders”); 

WELLS FARGO BANK, NATIONAL ASSOCIATION, successor by merger with WELLS FARGO RETAIL FINANCE, LLC, as ABL
Administrative Agent and as Collateral Agent (in such capacities, the “ABL Agent”); 
 WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Supplemental Term Agent (in such capacity, the “Supplemental Term Agent”); 
 in consideration of the mutual covenants herein contained and benefits to be derived herefrom. 
 BACKGROUND: 
 Reference is made to that certain Third
Amended and Restated Senior Secured Credit Agreement dated as of October 17, 2012 (as amended, restated, supplemented, or otherwise modified from time to time, the “ABL Credit Agreement”) by, among others, (i) the
Borrower, (ii) the Loan Guarantors, (iii) certain of the Lenders (the “Existing Lenders”), (iv) the ABL Administrative Agent, and (v) the Collateral Agent. 

The Borrower has requested that certain lenders agree to provide a supplemental term loan to the Borrower. The ABL Agent
and WFCF, in consultation with the Borrower, have arranged for each of Wells Fargo Bank, National Association (“Wells Fargo”) and 1903 Onshore Funding, LLC (collectively, the “Additional Lenders”) to become a lender
under the ABL Credit Agreement and to provide a supplemental term loan to the Borrower in an aggregate original principal amount of $17,500,000, subject to the terms and conditions herein. In connection therewith, the Borrower and the Additional
Lenders have requested that the Required Lenders agree to amend certain provisions of the ABL Credit Agreement, as set forth herein. The Required Lenders have agreed to so amend, and each Additional Lender has agreed to join the ABL Credit Agreement
as a “Lender” thereunder, in each case subject to the terms and conditions herein. 

 NOW THEREFORE, in consideration of the mutual promises and agreements herein
contained, the Borrower, the ABL Administrative Agent, the Collateral Agent, the Supplemental Term Agent and the Lenders (including, without limitation, the Additional Lenders) hereby agree as follows: 

 

	1.	 Defined Terms.    All capitalized terms not otherwise defined herein shall have the same meanings as in the ABL Credit
Agreement. 

  

	2.	 Joinder to Loan Documents.    Effective as of the date of this First Amendment, each Additional Lender hereby
acknowledges that it has received and reviewed a copy of the ABL Credit Agreement and the other Loan Documents, and hereby: 

  

	 	a.	 joins in the execution of, and becomes a party to, the ABL Credit Agreement and the other Loan Documents as a Lender thereunder, as indicated with
its signature below; 

  

	 	b.	 covenants and agrees to be bound by all covenants, agreements, liabilities and acknowledgments of a Lender under the ABL Credit Agreement and the
other Loan Documents as of the date hereof (other than covenants, agreements, liabilities and acknowledgments that relate solely to an earlier date), in each case, with the same force and effect as if such Additional Lender was a signatory to the
ABL Credit Agreement and the other Loan Documents and was expressly named as a Lender therein; and 

  

	 	c.	 to the extent of its Supplemental Term Commitment (as set forth opposite the Supplemental Term Lender’s name on the Commitment Schedule
attached hereto), assumes and agrees to perform all applicable duties and obligations of the Existing Lenders under the ABL Credit Agreement and the other Loan Documents. 

 

	3.	 Amendments to the ABL Credit Agreement. 

  

	 	a.	 Conformed ABL Credit Agreement.    The ABL Credit Agreement is hereby amended to delete the bold, stricken text
(indicated textually in the same manner as the following example: stricken text) and to add the bold, double-underlined text (indicated textually in the same manner as the following example:
double-underlined text) as set forth in the pages of the ABL Credit Agreement attached as Exhibit A hereto, such that from and after the date hereof, the ABL Credit Agreement
shall be in the form attached as Exhibit B hereto. 

  

	 	b.	 Schedules to ABL Credit Agreement.    Each of the following Schedules to the ABL Credit Agreement is hereby deleted in
its entirety and restated in its entirety in the form of the corresponding schedule in Exhibit C attached hereto: Commitment Schedule and Schedules 3.05, 3.06, 3.13, 3.15, 3.21, 6.01 and 6.02. 

 

	 	c.	 Exhibits to ABL Credit Agreement.    The Exhibits to the ABL Credit Agreement are hereby amended as follows:

  

	 	i.	 By deleting Exhibit B in its entirety therefrom and restating such Exhibit in the form of the corresponding exhibit in Exhibit D
attached hereto; and 

  
 -2-

	 	ii.	 By adding Exhibit E-4 thereto in the form of such Exhibit attached hereto as Exhibit E. 

 

	4.	 Conditions to Effectiveness.    This First Amendment shall not become effective until each of the following conditions
precedent has been fulfilled to the satisfaction of the ABL Agent and the Supplemental Term Agent: 

  

	 	a.	 Each of the ABL Administrative Agent and the Supplemental Term Agent (or their respective counsels) shall have received (i) from each party
hereto, a counterpart of this First Amendment duly executed and delivered by each such party, and (ii) duly executed copies of the other Loan Documents and such other certificates, documents, instruments and agreements as the ABL Administrative
Agent or the Supplemental Term Agent shall reasonably request in connection with the transactions contemplated by this First Amendment and the other Loan Documents, including any Notes requested by a Supplemental Term Lender pursuant to
Section 2.10 of the ABL Credit Agreement payable to the order of each such requesting Supplemental Term Lender. 

  

	 	b.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received (i) a certificate of each Loan Party, dated the First
Amendment Effective Date and executed by its Secretary or Assistant Secretary, which shall (A) certify the resolutions of its Board of Directors, members or other body authorizing the execution, delivery and performance of this First Amendment
and the other Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the Financial Officers and any other officers of such Loan Party authorized to sign this First Amendment and the other Loan Documents
to which it is a party, and (C) contain appropriate attachments, including the certificate or articles of incorporation or organization of each Loan Party certified by the relevant authority of the jurisdiction of organization of such Loan
Party and a true and correct copy of its by-laws or operating, management or partnership agreement (or a certification of no amendments or other modifications thereto since October 17, 2012), (ii) a long form good standing certificate for
each Loan Party from its jurisdiction of organization, and (iii) a long form foreign qualification certificate for each Loan Party from the State of California. 

 

	 	c.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received a certificate, signed by a Secretary or Assistant Secretary of the
Borrower, on behalf of itself and the other Loan Parties, (i) stating that no Default or Event of Default (other than, prior to the date that is the earlier to occur of (x) the date on which the Term Administrative Agent or any Term Lender
provides notice to the Borrower of the Borrower’s failure to maintain an Adjusted Leverage Ratio (as defined in the Term Loan Agreement) of not more than 5.75x for the fiscal quarter ending February 2, 2013, as required under
Section 5.10 of the Term Loan Agreement, or (y) the date on which the Borrower delivers (or is required to deliver) to the ABL Administrative Agent the financial statements with respect to the fiscal month ending February 2, 2013
pursuant to Section 5.01(c) of the ABL Credit Agreement, which financial statements demonstrate (or 

  
 -3-

	 	 
would demonstrate) such a failure, a Default or Event of Default which may exist under clause (f) of Article VII of the ABL Credit Agreement arising as a result of the Borrower’s
failure to so maintain an Adjusted Leverage Ratio (the “Specified Cross-Default”)) has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III of the ABL Credit Agreement
and Section 5 of this First Amendment are true and correct in all material respects as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and
correct in all material respects as of such earlier date, and (iii) certifying any other factual matters as may be reasonably requested by the ABL Administrative Agent or the Supplemental Term Agent. 

 

	 	d.	 No Default or Event of Default (other than the Specified Cross-Default) shall have occurred and be continuing. 

 

	 	e.	 The Agents, the Supplemental Term Agent, and the Lenders shall have (i) been reimbursed by the Borrower for all reasonable and documented
costs, expenses, and attorneys’ fees incurred by the Agents, the Supplemental Term Agent and the Lenders in connection with the negotiation and preparation of this First Amendment and all documents, instruments, and agreements incidental hereto
in each case required to be reimbursed pursuant to Section 9.03 of the ABL Credit Agreement, and (ii) received all fees required to be paid on or before the First Amendment Effective Date (including, without limitation, any fees required
to be paid pursuant to the Wells Fargo Supplemental Term Fee Letter). All such amounts may be paid with proceeds of Loans made on the First Amendment Effective Date and, if such amounts are paid with proceeds of Loans, such amounts will be reflected
in the funding instructions given by the Borrower to the ABL Administrative Agent on or before the First Amendment Effective Date. 

  

	 	f.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received a Borrowing Base Certificate which calculates the Revolving
Borrowing Base, the Supplemental Term Borrowing Base and the amount described in Section 2.01(b)(iii) of the ABL Credit Agreement as of the end of the month immediately preceding the First Amendment Effective Date, dated as of the First
Amendment Effective Date and executed by a Financial Officer of the Borrower. 

  

	 	g.	 After giving effect to the funding of the Supplemental Term Loan, Revolving Availability shall be not less than $45,000,000.

  

	 	h.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received a favorable legal opinion of DLA Piper LLP (US), counsel to the
Loan Parties, in form and substance reasonably satisfactory to the ABL Administrative Agent and the Supplemental Term Agent and addressed to the Agents, the Supplemental Term Agent, the Issuing Banks and the Lenders. 

 

	 	i.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received and be satisfied with detailed financial projections, including, in
each 

  
 -4-

	 	 
case, a consolidated income statement, balance sheet, statement of cash flow, borrowing base availability analysis and business assumptions for the Borrower on (i) a monthly basis for the
twelve month period following the First Amendment Effective Date and (ii) on an annual basis, for each fiscal year thereafter through the Termination Date. 

 

	 	j.	 The Borrower and Guarantors shall have obtained all governmental consents and approvals, and all third party consents required for the Borrower and
Guarantors to consummate the transactions contemplated by this First Amendment. 

  

	 	k.	 The ABL Administrative Agent and the Supplemental Term Agent shall have received such other documents as the ABL Administrative Agent, the
Supplemental Term Agent, any Issuing Bank, any Lender or their respective counsel may have reasonably requested. 

  

	5.	 Representations, Warranties, and Covenants.    In order to induce the Agents, the Supplemental Term Agent and the Lenders
to enter into this First Amendment, each Loan Party hereby represents, warrants, and covenants that: 

  

	 	a.	 No Default or Event of Default (other than the Specified Cross-Default) exists under the ABL Credit Agreement. 

 

	 	b.	 All representations and warranties contained in the ABL Credit Agreement and the other Loan Documents are true and correct in all material respects
as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date. 

 

	6.	 Specified Cross-Default.    Each of the Loan Parties hereby acknowledges and agrees that nothing herein, in the ABL
Credit Agreement or in any other Loan Document shall be deemed to derogate from the Agents’, the Supplemental Term Agent’s, the Lender’s or the Issuing Banks’ rights to exercise rights and remedies under the Loan Documents
(including, without limitation, (i) to cease making Loans or to cease issuing, amending, renewing or extending any Letter of Credit, (ii) to terminate the Revolving Commitments, and (iii) to declare the Loans and other Obligations
then outstanding to be due and payable) upon the occurrence of any of the following events: 

  

	 	a.	 an Event of Default under clause (f) of Article VII of the ABL Credit Agreement arising as a result of the Borrower’s failure to maintain
an Adjusted Leverage Ratio (as defined in the Term Loan Agreement) of not more than 5.75x for the fiscal quarter ending February 2, 2013, as required under Section 5.10 of the Term Loan Agreement (it being understood and agreed that such
Event of Default shall be deemed to have occurred, if at all, upon the earlier to occur of the date on which the Term Administrative Agent or any Term Lender (as defined in the Term Loan Agreement) provides notice to the Borrower of the
Borrower’s failure to so comply with Section 5.10 of the Term Loan Agreement or the date on which the Borrower delivers (or is required to deliver) to the ABL Administrative Agent

  
 -5-

	 	 
the financial statements with respect to the fiscal month ending February 2, 2013 pursuant to Section 5.01(c) of the ABL Credit Agreement, which financial statements demonstrate (or
would demonstrate) such a failure), and/or 

  

	 	b.	 any other Default or Event of Default. 

  

	7.	 Ratification of Loan Documents. Except as otherwise expressly provided herein, all terms and conditions of the ABL Credit Agreement, the
Collateral Documents and the other Loan Documents remain in full force and effect. The Loan Guarantors hereby acknowledge, confirm and agree that the Guaranteed Obligations of the Guarantors include, without limitation, all Obligations of the Loan
Parties at any time and from time to time outstanding under the ABL Credit Agreement and the other Loan Documents, as such Obligations have been amended pursuant to this First Amendment. The Loan Parties hereby acknowledge, confirm and agree that
the Collateral Documents and any and all Collateral previously pledged to the Collateral Agent pursuant thereto, shall continue to secure all applicable Obligations of the Loan Parties at any time and from time to time outstanding under the ABL
Credit Agreement and the other Loan Documents. 

  

	8.	 Miscellaneous. 

  

	 	a.	 The Loan Parties hereby acknowledge and agree that there is no basis nor set of facts on which any amount (or any portion thereof) owed by the Loan
Parties under the ABL Credit Agreement could be reduced, offset, waived, or forgiven, by rescission or otherwise; nor is there any claim, counterclaim, offset, or defense (or other right, remedy, or basis having a similar effect) available to the
Loan Parties with regard thereto; nor is there any basis on which the terms and conditions of any of the Obligations could be claimed to be other than as stated on the written instruments which evidence such Obligations.

  

	 	b.	 The Loan Parties hereby acknowledge and agree that none of them has any offsets, defenses, claims, or counterclaims against the Agents, the
Supplemental Term Agent, the Issuing Banks, or the Lenders, or their respective officers, directors, employees, attorneys, or representatives, with respect to the Obligations, and that if the Loan Parties, or any of them, now has, or ever did have,
any offsets, defenses, claims, or counterclaims against the Agents, the Supplemental Term Agent, the Issuing Banks, or the Lenders, or their respective officers, directors, employees, attorneys, or representatives, whether known or unknown, at law
or in equity, from the beginning of the world through this date and through the time of execution of this First Amendment, all of them are hereby expressly WAIVED, and the Loan Parties hereby RELEASE the Agents, the Supplemental Term Agent, the
Issuing Banks, and the Lenders and their respective officers, directors, employees, attorneys, and representatives from any liability therefor. 

  

	 	c.	 This First Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an
original, but all 

  
 -6-

	 	 
of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this First Amendment by facsimile or other electronic transmission
(such as pdf) shall be effective as delivery of a manually executed counterpart of this First Amendment. 

  

	 	d.	 This First Amendment, the other Loan Documents and any separate letter agreements with respect to fees payable to the ABL Administrative Agent or
the Supplemental Term Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

  

	 	e.	 Any provision of this First Amendment 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 thereof; and the invalidity of a particular provision in a particular jurisdiction
shall not invalidate such provision in any other jurisdiction. 

  

	9.	 Binding Effect.    The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto
and their respective representatives, successors, and permitted assigns. 

  

	10.	 Governing Law.    This First Amendment shall be governed by and construed in accordance with the laws of the State of New
York, without giving effect to the conflicts of laws principles thereof, but including Section 5-1401 of the New York General Obligations Law. 

 [Signature Pages Follow] 

  
 -7-

 IN WITNESS WHEREOF, this First Amendment has been duly executed and
delivered by each of the parties hereto as a sealed instrument as of the date first above written. 
  

	
	 ORCHARD SUPPLY HARDWARE
 LLC, as Borrower

	
	 By: /s/ Chris D. Newman

	
	 Name: Chris D. Newman

	
	 Title:     Executive Vice President, Chief

             Financial Officer and Treasurer

 [Signature Page to Joinder and First Amendment to Third Amended and Restated Senior Secured Credit
Agreement] 

 
	
	 ORCHARD SUPPLY HARDWARE
 STORES CORPORATION, as Loan
 Guarantor

	
	 By: /s/ Chris D. Newman

	
	 Name: Chris D. Newman

	
	 Title:     Executive Vice President, Chief

            Financial Officer and Treasurer

 [Signature Page to Joinder and First Amendment to Third Amended and Restated Senior Secured Credit
Agreement] 

 
	
	 WELLS FARGO BANK, NATIONAL
ASSOCIATION, as ABL Administrative
Agent, as Collateral Agent, as
Swingline
Lender, as an Issuing Bank, as a Revolving
Lender and as a FILO Lender

	
	 By: /s/ Jason B. Searle

	
	 Name: Jason B. Searle

	
	 Title: Director

 
	
	 BANK OF AMERICA, N.A., as

Syndication Agent, as an Issuing Bank, as a

Revolving Lender and as a FILO Lender

	
	 By: /s/ Christine M. Scott

	
	 Name: Christine M. Scott

	
	 Title: SVP – Director

 
	
	
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Supplemental Term
Agent and as a Supplemental Term 
Lender

	
	 By: /s/ Christian West

	
	 Name: Christian West

	
	 Title: Assistant Vice President

 
			
	 1903 ONSHORE FUNDING, LLC, as a
Supplemental Term Lender

	
	 By:         GB Merchant Partners, LLC,

	                 its Investment Manager

	
	 By: /s/ Wendy Landon

	
	 Name: Wendy Landon

	
	 Title: Managing Director

 EXHIBIT B 
 EXECUTION COPY 
  

 
  

THIRD AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT 
 by and among 
 ORCHARD SUPPLY HARDWARE LLC, 

as Borrower, 

ORCHARD SUPPLY HARDWARE STORES CORPORATION, 
 and certain Subsidiaries of Orchard Supply Hardware LLC 
 who subsequently become
Guarantors hereunder 
 and 
 THE LENDERS AND ISSUING BANKS FROM TIME TO TIME PARTY HERETO 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION, 
 as ABL Administrative Agent and Collateral Agent 

BANK OF AMERICA, N.A., 
 as Syndication Agent 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Supplemental Term Agent 
 and 
 WELLS FARGO CAPITAL FINANCE, LLC 

MERRILL LYNCH, PIERCE FENNER & SMITH INCORPORATED, 
 as Joint Lead Arrangers and Joint Bookrunners 
 Dated: October 17, 2012

 As Amended February 11, 2013 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I Definitions
	  	 	1	 
			
	 SECTION 1.01
	  	 Defined Terms
	  	 	1	 
	 SECTION 1.02
	  	 Classification of Loans and Borrowings
	  	 	38	 
	 SECTION 1.03
	  	 Terms Generally
	  	 	38	 
	 SECTION 1.04
	  	 Accounting Terms; GAAP
	  	 	39	 
	 SECTION 1.05
	  	 Letter of Credit Amounts
	  	 	39	 
	 SECTION 1.06
	  	 Times of Day
	  	 	39	 
		
	 ARTICLE II The Credits
	  	 	39	 
			
	 SECTION 2.01
	  	 Commitments
	  	 	39	 
	 SECTION 2.02
	  	 Loans and Borrowings.
	  	 	40	 
	 SECTION 2.03
	  	 Requests for Revolving Borrowings
	  	 	41	 
	 SECTION 2.04
	  	 Protective Advances
	  	 	41	 
	 SECTION 2.05
	  	 Swingline Loans
	  	 	42	 
	 SECTION 2.06
	  	 Letters of Credit.
	  	 	44	 
	 SECTION 2.07
	  	 Funding of Borrowings.
	  	 	54	 
	 SECTION 2.08
	  	 Interest Elections
	  	 	55	 
	 SECTION 2.09
	  	 Termination and Reduction of Revolving Commitments
	  	 	56	 
	 SECTION 2.10
	  	 Repayment of Loans; Evidence of Debt.
	  	 	57	 
	 SECTION 2.11
	  	 Prepayment of Loans.
	  	 	58	 
	 SECTION 2.12
	  	 Fees.
	  	 	60	 
	 SECTION 2.13
	  	 Interest
	  	 	61	 
	 SECTION 2.14
	  	 Alternate Rate of Interest
	  	 	63	 
	 SECTION 2.15
	  	 Increased Costs.
	  	 	63	 
	 SECTION 2.16
	  	 Break Funding Payments
	  	 	64	 
	 SECTION 2.17
	  	 Taxes.
	  	 	65	 
	 SECTION 2.18
	  	 Payments Generally; Allocation of Proceeds; Sharing of Set-offs
	  	 	66	 
	 SECTION 2.19
	  	 Mitigation Obligations; Replacement of Lenders
	  	 	70	 
	 SECTION 2.20
	  	 Returned Payments
	  	 	71	 
	 SECTION 2.21
	  	 Effective Date Adjustments.
	  	 	72	 
	 SECTION 2.22
	  	 Increase in Revolving Commitments
	  	 	73	 
		
	 ARTICLE III Representations and Warranties
	  	 	74	 
			
	 SECTION 3.01
	  	 Organization; Powers
	  	 	74	 
	 SECTION 3.02
	  	 Authorization; Enforceability
	  	 	75	 
	 SECTION 3.03
	  	 Governmental Approvals; No Conflicts
	  	 	75	 
	 SECTION 3.04
	  	 Financial Condition; No Material Adverse Change
	  	 	75	 
	 SECTION 3.05
	  	 Properties.
	  	 	75	 
	 SECTION 3.06
	  	 Litigation and Environmental Matters.
	  	 	76	 
	 SECTION 3.07
	  	 Compliance with Laws and Agreements
	  	 	76	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 SECTION 3.08
	  	 Investment and Holding Company Status
	  	 	76	 
	 SECTION 3.09
	  	 Taxes
	  	 	77	 
	 SECTION 3.10
	  	 ERISA.
	  	 	77	 
	 SECTION 3.11
	  	 Disclosure
	  	 	77	 
	 SECTION 3.12
	  	 Solvency
	  	 	77	 
	 SECTION 3.13
	  	 Insurance
	  	 	78	 
	 SECTION 3.14
	  	 Capitalization and Subsidiaries
	  	 	78	 
	 SECTION 3.15
	  	 Security Interest in Collateral
	  	 	78	 
	 SECTION 3.16
	  	 Labor Disputes
	  	 	79	 
	 SECTION 3.17
	  	 Margin Regulations
	  	 	79	 
	 SECTION 3.18
	  	 Use of Proceeds
	  	 	79	 
	 SECTION 3.19
	  	 Collateral Locations
	  	 	79	 
	 SECTION 3.20
	  	 Corporate Names; Prior Transactions
	  	 	79	 
	 SECTION 3.21
	  	 Credit Card Agreements
	  	 	79	 
	 SECTION 3.22
	  	 Master Operating Lease
	  	 	80	 
	 SECTION 3.23
	  	 Survival of Warranties; Cumulative
	  	 	80	 
		
	 ARTICLE IV Conditions
	  	 	80	 
			
	 SECTION 4.01
	  	 Effective Date
	  	 	80	 
	 SECTION 4.02
	  	 Each Credit Event
	  	 	82	 
		
	 ARTICLE V Affirmative Covenants
	  	 	83	 
			
	 SECTION 5.01
	  	 Financial Statements; Borrowing Base and Other Information
	  	 	83	 
	 SECTION 5.02
	  	 Notices of Material Events
	  	 	85	 
	 SECTION 5.03
	  	 Existence; Conduct of Business
	  	 	87	 
	 SECTION 5.04
	  	 Payment of Obligations
	  	 	87	 
	 SECTION 5.05
	  	 Maintenance of Properties
	  	 	87	 
	 SECTION 5.06
	  	 Books and Records; Inspection Rights
	  	 	87	 
	 SECTION 5.07
	  	 Compliance with Laws
	  	 	88	 
	 SECTION 5.08
	  	 Compliance with Environmental Laws
	  	 	88	 
	 SECTION 5.09
	  	 Compliance with Material Contracts
	  	 	88	 
	 SECTION 5.10
	  	 Use of Proceeds
	  	 	88	 
	 SECTION 5.11
	  	 Insurance
	  	 	89	 
	 SECTION 5.12
	  	 Appraisals and Field Examinations
	  	 	89	 
	 SECTION 5.13
	  	 Additional Collateral; Further Assurances
	  	 	90	 
	 SECTION 5.14
	  	 Cash Management
	  	 	91	 
	 SECTION 5.15
	  	 Real Property.
	  	 	91	 
	 SECTION 5.16
	  	 Post-Closing Covenant
	  	 	92	 
		
	 ARTICLE VI Negative Covenants
	  	 	93	 
			
	 SECTION 6.01
	  	 Indebtedness
	  	 	93	 

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 SECTION 6.02
	  	 Liens
	  	 	95	 
	 SECTION 6.03
	  	 Fundamental Changes.
	  	 	96	 
	 SECTION 6.04
	  	 Investments, Loans, Advances, Guarantees and Acquisitions
	  	 	97	 
	 SECTION 6.05
	  	 Asset Sales
	  	 	100	 
	 SECTION 6.06
	  	 Sale and Leaseback Transactions
	  	 	101	 
	 SECTION 6.07
	  	 Swap Agreements
	  	 	101	 
	 SECTION 6.08
	  	 Restricted Payments; Certain Payments of Indebtedness.
	  	 	102	 
	 SECTION 6.09
	  	 Change in Nature of Business
	  	 	103	 
	 SECTION 6.10
	  	 Transactions with Affiliates
	  	 	103	 
	 SECTION 6.11
	  	 Restrictive Agreements
	  	 	104	 
	 SECTION 6.12
	  	 Use of Proceeds
	  	 	104	 
	 SECTION 6.13
	  	 Amendment of Material Documents
	  	 	105	 
	 SECTION 6.14
	  	 Accounting; Fiscal Year
	  	 	105	 
	 SECTION 6.15
	  	 Margin Regulations
	  	 	105	 
	 SECTION 6.16
	  	 Excess Availability
	  	 	105	 
		
	 ARTICLE VII Events of Default
	  	 	105	 
		
	 ARTICLE VIII The ABL Administrative Agent; The Supplemental Term Agent
	  	 	111	 
			
	 SECTION 8.01
	  	Appointment of ABL Administrative Agent, Collateral Agent and Supplemental Term Agent	  	 	111	 
	 SECTION 8.02
	  	 Limited Duties
	  	 	111	 
	 SECTION 8.03
	  	 Reliance
	  	 	112	 
	 SECTION 8.04
	  	 Delegation of Rights and Duties
	  	 	112	 
	 SECTION 8.05
	  	 Resignation of ABL Administrative Agent or Supplemental Term Agent
	  	 	112	 
	 SECTION 8.06
	  	 Lender Credit Decision
	  	 	113	 
	 SECTION 8.07
	  	 Reports
	  	 	114	 
	 SECTION 8.08
	  	 Syndication Agent and Arrangers
	  	 	114	 
	 SECTION 8.09
	  	 Defaulting Lenders
	  	 	114	 
	 SECTION 8.10
	  	 Indemnification of Agents
	  	 	115	 
		
	 ARTICLE IX Miscellaneous
	  	 	115	 
			
	 SECTION 9.01
	  	 Notices.
	  	 	115	 
	 SECTION 9.02
	  	 Waivers; Amendments
	  	 	117	 
	 SECTION 9.03
	  	 Expenses; Indemnity; Damage Waiver
	  	 	122	 
	 SECTION 9.04
	  	 Successors and Assigns
	  	 	124	 
	 SECTION 9.05
	  	 Survival
	  	 	127	 
	 SECTION 9.06
	  	 Counterparts; Integration; Effectiveness
	  	 	128	 
	 SECTION 9.07
	  	 Severability
	  	 	128	 
	 SECTION 9.08
	  	 Right of Setoff
	  	 	128	 

  
 iii

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 SECTION 9.09
	  	 Governing Law; Jurisdiction; Consent to Service of Process.
	  	 	129	 
	 SECTION 9.10
	  	 WAIVER OF JURY TRIAL
	  	 	129	 
	 SECTION 9.11
	  	 Headings
	  	 	130	 
	 SECTION 9.12
	  	 Confidentiality.
	  	 	130	 
	 SECTION 9.13
	  	 Several Obligations; Nonreliance; Violation of Law
	  	 	131	 
	 SECTION 9.14
	  	 USA PATRIOT ACT
	  	 	131	 
	 SECTION 9.15
	  	 Disclosure
	  	 	131	 
	 SECTION 9.16
	  	 Appointment for Perfection
	  	 	131	 
	 SECTION 9.17
	  	 Interest Rate Limitation
	  	 	132	 
	 SECTION 9.18
	  	 Amendment and Restatement.
	  	 	132	 
	 SECTION 9.19
	  	 Intercreditor Agreement
	  	 	133	 
	 SECTION 9.20
	  	 Refinancing of Term Loan Documents
	  	 	133	 
		
	 ARTICLE X Loan Guaranty
	  	 	133	 
			
	 SECTION 10.01
	  	 Guaranty
	  	 	133	 
	 SECTION 10.02
	  	 Guaranty of Payment
	  	 	134	 
	 SECTION 10.03
	  	 No Discharge or Diminishment of Loan Guaranty.
	  	 	134	 
	 SECTION 10.04
	  	 Defenses Waived
	  	 	135	 
	 SECTION 10.05
	  	 Rights of Subrogation
	  	 	135	 
	 SECTION 10.06
	  	 Reinstatement; Stay of Acceleration
	  	 	135	 
	 SECTION 10.07
	  	 Information
	  	 	136	 
	 SECTION 10.08
	  	 Termination
	  	 	136	 
	 SECTION 10.09
	  	 Taxes
	  	 	136	 
	 SECTION 10.10
	  	 Maximum Liability
	  	 	136	 
	 SECTION 10.11
	  	 Contribution
	  	 	137	 
	 SECTION 10.12
	  	 Liability Cumulative
	  	 	137	 
	 SECTION 10.13
	  	 Common Enterprise
	  	 	137	 
		
	 ARTICLE XI Existing Credit Agreement Amended and Restated
	  	 	138	 

  
 iv 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	 	 	 	  	Page
	 SCHEDULES:
	 				 		  	
		
	 Commitment Schedule
	  	
	 Schedule 2.06
	 	 	–	  	 	 Existing Letters of Credit
	  	
	 Schedule 3.05
	 	 	–	  	 	 Properties / Intellectual Property
	  	
	 Schedule 3.06
	 	 	–	  	 	 Disclosed Matters
	  	
	 Schedule 3.13
	 	 	–	  	 	 Insurance
	  	
	 Schedule 3.14
	 	 	–	  	 	 Capitalization and Subsidiaries
	  	
	 Schedule 3.15
	 	 	–	  	 	 Security Interest in Collateral
	  	
	 Schedule 3.20
	 	 	–	  	 	 Corporate Names
	  	
	 Schedule 3.21
	 	 	–	  	 	 Existing Credit Card Agreements
	  	
	 Schedule 6.01
	 	 	–	  	 	 Existing Indebtedness
	  	
	 Schedule 6.02
	 	 	–	  	 	 Existing Liens
	  	
	 Schedule 6.04
	 	 	–	  	 	 Existing Investments
	  	
	 Schedule 6.11
	 	 	–	  	 	 Existing Restrictions
	  	
				
	 EXHIBITS:
	 				 		  	
		
	 Exhibit A – Form of Assignment and Assumption
	  	
	 Exhibit B – Form of Borrowing Base Certificate
	  	
	 Exhibit C – Form of Compliance Certificate
	  	
	 Exhibit D – Form of Joinder Agreement
	  	
	 Exhibit E-1 – Form of Revolving Note
	  	
	 Exhibit E-2 – Form of FILO Note
	  	
	 Exhibit E-3 – Form of Swingline Note
	  	
	 Exhibit E-4 – Form of Supplemental Term Note
	  	

  
 v 

 This THIRD AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT, dated as of
October 17, 2012 (as it may be amended or modified from time to time, this “Agreement”), among ORCHARD SUPPLY HARDWARE LLC, a Delaware limited liability company (“Borrower”), ORCHARD SUPPLY HARDWARE STORES
CORPORATION, a Delaware corporation (“Holdings”), those certain Subsidiaries of the Borrower who subsequently become parties hereto (together with Holdings, collectively, the “Loan Guarantors”), the Lenders party
hereto, WELLS FARGO BANK, NATIONAL ASSOCIATION, as ABL Administrative Agent, WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent for the Lenders (in such capacity, the “Collateral Agent”), BANK OF AMERICA, N.A., as
Syndication Agent, WELLS FARGO BANK, NATIONAL ASSOCIATION, as supplemental term agent for the Supplemental Term Lenders (in such capacity, the “Supplemental Term Agent”), amends and restates in its entirety the Second Amended and
Restated Senior Secured Credit Agreement dated as of January 29, 2010, as amended by the Consent and First Amendment to Credit Agreement dated as of December 21, 2011 (as amended to the Effective Date, without giving effect to the
amendments and restatements set forth herein, the “Existing Credit Agreement”), among the Borrower, the Loan Guarantors, the ABL Administrative Agent, the Collateral Agent, and the lenders and issuing banks from time to time party
thereto. 
 W I T N E S S E T H: 

WHEREAS, in accordance with Section 9.02 of the Existing Credit Agreement, the Borrower, the Guarantors, the
Required Lenders (as defined in the Existing Credit Agreement) and the ABL Administrative Agent desire to amend and restate the Existing Credit Agreement as provided herein. 

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and for good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree that the Existing Credit Agreement shall be amended and restated in its entirety to read as follows: 

ARTICLE I 

Definitions 
 SECTION 1.01 Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 

“ABL Administrative Agent” means Wells Fargo Bank, National Association, in its capacity as
administrative agent for the Lenders hereunder, or any successor. 
 “ABL Facility” means the
Loans and Letters of Credit under this Agreement. 
 “ABL Facility Primary Collateral” has the
meaning assigned to such term in the Intercreditor Agreement. 
 “ABL Loan Security Agreement”
means that certain Second Amended and Restated Pledge and Security Agreement, dated as of January 29, 2010, between the Loan Parties and the 

 
Collateral Agent, for the benefit of the Collateral Agent, the ABL Administrative Agent and the Lenders, and any other pledge or security agreement entered into after the date of this Agreement
by any other Loan Party (as required by this Agreement or any other Loan Document), or any other Person, granting a Lien on any property to secure the obligations and liabilities of any Loan Party under any Loan Document, as the same may be amended,
restated or otherwise modified from time to time. 
 “ABL Priority Collateral” means all now
owned or hereafter acquired Collateral other than Supplemental Term Priority Collateral. 
 “ABL
Revolving Loan” means a Loan made pursuant to Section 2.02(a). 
 “Accelerated
Reporting Event” means either (a) notice from the ABL Administrative Agent of the occurrence and continuance of any Event of Default, or (b) the failure of the Borrower to maintain Combined Availability at all times of not less
than the greater of (i) $20,000,000 or (ii) twenty percent (20%) of the Maximum Combined Availability. For purposes of this Agreement, the occurrence of an Accelerated Reporting Event shall be deemed continuing at the ABL
Administrative Agent’s option (i) so long as such Default has not been cured or waived or such Event of Default has not been waived, and/or (ii) if the Accelerated Reporting Event arises as a result of the Borrower’s failure to
maintain Combined Availability as required under clause (b) of the immediately preceding sentence, until Combined Availability has equaled or exceeded twenty five percent (25%) of the sum of the Aggregate Revolving Commitments and the
outstanding principal balance of the FILO Term Loan for thirty (30) consecutive Business Days, in which case an Accelerated Reporting Event shall no longer be deemed continuing for purposes of this Agreement. The termination of an Accelerated
Reporting Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Accelerated Reporting Event in the event that the conditions set forth in this definition again arise. 

“Account” has the meaning assigned to such term in the ABL Loan Security Agreement. 

“Account Debtor” means any Person obligated on an Account. 

“Adjusted LIBO Rate” means: 

(a)        except as provided in clause (b) below, (i) for any Interest
Period with respect to any LIBO Borrowing, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent) equal to (x) the LIBO Rate for such Interest Period multiplied by (y) the Statutory Reserve Rate,
or (ii) for any interest rate calculation with respect to any Base Rate Loan, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of one percent) equal to (x) the LIBO Rate for an Interest Period commencing on the
date of such calculation and ending on the date that is thirty (30) days thereafter multiplied by (y) the Statutory Reserve Rate; and 
 (b)        for any interest rate calculation with respect to the Supplemental Term Loan, an interest rate per annum (rounded upwards, if necessary, to the next
1/100 of one percent) equal to (i) the greater of (x) the LIBO Rate for an Interest Period commencing on the date of such calculation and ending on the date that is thirty (30) days thereafter, or (y) the LIBO Rate for an

  
 2 

 
Interest Period commencing on the date of such calculation and ending on the date that is ninety (90) days thereafter, multiplied by (ii) the Statutory Reserve Rate. 

The Adjusted LIBO Rate will be adjusted automatically as of the effective date of any change in the Statutory Reserve
Rate. 
 “Adjustment Date” means the first day of each fiscal quarter, commencing
February 1, 2013. 
 “Administrative Questionnaire” means an Administrative Questionnaire
in a form supplied by the ABL Administrative Agent. 
 “Affiliate” means, with respect to a
specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

“Agents” means, collectively, the ABL Administrative Agent and the Collateral Agent. 

“Aggregate FILO Commitments” means the FILO Commitments of all the FILO Lenders. As of the First
Amendment Effective Date, the Aggregate FILO Commitments are in the sum of $0. 
 “Aggregate Revolving
Commitments” means the Revolving Commitments of all the Revolving Lenders. As of the First Amendment Effective Date, the Aggregate Revolving Commitments are in the sum of $120,000,000. 

“Aggregate Supplemental Term Commitments” means the Supplemental Term Commitments of all the
Supplemental Term Lenders. As of the First Amendment Effective Date, the Aggregate Supplemental Term Commitments are in the sum of $17,500,000. 
 “Appliances Agreement” means the Consignment Agreement, dated as of October 26, 2011, between the Borrower and Sears Authorized Hometown Stores, LLC. 

“Applicable Covenant Percentage” means, as of any date of determination, the percentage set forth below
for such date: 
  

					
	
Period
  
	 	  	  	
Applicable Covenant Percentage

 

	
From and after the first anniversary of the First Amendment Effective Date through and including the second anniversary of the First
Amendment Effective Date
  
	 	 	  	30%
	
From and after February 12, 2015 through and including the third anniversary of the First Amendment Effective Date

 
	 	 	  	25%

  
 3 

			
	 Thereafter
  
	  	20%

 With respect to the making of any investment or Restricted Payment, during any applicable
six (6) month period for which Combined Availability is required to be greater than the Applicable Covenant Percentage of the Maximum Combined Availability, the “Applicable Covenant Percentage” for the entirety of such period shall be
determined as of the date on which such investment or Restricted Payment is to be made, notwithstanding any changes to such percentage during such period. 
 “Applicable Margin” means: 
 (a) From and after
the Effective Date until the first Adjustment Date, the percentages set forth in Level II of the pricing grid below; and 
 (b) On the first Adjustment Date and on each Adjustment Date thereafter, the Applicable Margin shall be determined from the pricing grid below based upon Average Revolving Availability for the most
recently ended fiscal quarter immediately preceding such Adjustment Date, provided that if any Borrowing Base Certificates are at any time restated or otherwise revised (including as a result of an audit) or if the information set forth in any
Borrowing Base Certificates otherwise proves to be false or incorrect such that the Applicable Margin would have been higher than was otherwise in effect during any period, without constituting a waiver of any Default or Event of Default arising as
a result thereof, interest due under this Agreement shall be immediately recalculated at such higher rate for any applicable periods and shall be due and payable on demand. 

 

													
	Level	 	
Average

Revolving

Availability
	 	Applicable
Margin for
Eurodollar
Loans

	 	Applicable
Margin for
Base
Rate
Loans
	 	Standby
Letter of
Credit Fee	 	Documentary
Letter of
Credit Fee	 	Revolving
Commitment
Fee
Rate
	 I
	 	 Greater than $80,000,000
	 	1.50%	 	0.50%	 	1.50%	 	1.00%	 	0.375%
	 II
	 	 Less than or equal to $80,000,000 and greater than
$40,000,000
	 	1.75%	 	0.75%	 	1.75%	 	1.25%	 	0.375%
	 III
	 	 Less than or equal to $40,000,000
	 	2.00%	 	1.00%	 	2.00%	 	1.50%	 	0.375%

 The Average Revolving Availability shall be deemed to be in Level III at any time that an
Event of Default has occurred and is continuing. 

  
 4 

 “Applicable Percentage” means, in each case as the context
requires, (i) with respect to any Revolving Lender, with respect to ABL Revolving Loans, LC Exposure, Swingline Loans or Protective Advances, a percentage equal to a fraction the numerator of which is such Revolving Lender’s Revolving
Commitment and the denominator of which is the Aggregate Revolving Commitments; provided, however, that if the Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined based upon such
Lender’s share of the aggregate Revolving Exposure at that time, (ii) with respect to any FILO Lender, a percentage equal to a fraction the numerator of which is the portion of the FILO Term Loan owing to such FILO Lender and the
denominator of which is the aggregate principal balance of the FILO Term Loan, and (iii) with respect to any Supplemental Term Lender, a percentage equal to a fraction the numerator of which is the portion of the Supplemental Term Loan owing to
such Supplemental Term Lender and the denominator of which is the aggregate principal balance of the Supplemental Term Loan. The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on the Commitment
Schedule or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 
 “Approved Fund” has the meaning assigned to such term in Section 9.04. 
 “Arranger” means, collectively, Wells Fargo Capital Finance, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated in their capacities as joint lead arrangers. 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee
(with the consent of any party whose consent is required by Section 9.04), and accepted by the ABL Administrative Agent or, with respect to Supplemental Term Loans, the Supplemental Term Agent, in the form of Exhibit A or any
other form approved by the ABL Administrative Agent and the Supplemental Term Agent. 
 “Auto-Extension
Letter of Credit” has the meaning assigned to such term in Section 2.06(b)(iii). 

“Availability Period” means the period from and including the Effective Date to but excluding the
Revolving Credit Termination Date. 
 “Availability Reserve” means (a) the Supplemental
Term Reserve and any Reserve implemented pursuant to Section 2.01(b)(iii), (b) Bank Product Reserves, (c) as of three (3) Business Days after the date of written notice of any determination thereof to the Borrower by the
ABL Administrative Agent, such amounts as the ABL Administrative Agent may from time to time establish against the facility in the ABL Administrative Agent’s Permitted Discretion in order either (i) to preserve the value of the Collateral
or the ABL Administrative Agent’s or Collateral Agent’s Lien thereon or (ii) to provide for the payment of unanticipated liabilities of any Loan Party arising after the Effective Date, and (d) as of five (5) Business Days
after the date of written notice of any determination thereof to the Borrower by the ABL Administrative Agent, such other reserves which the ABL Administrative Agent deems necessary, in its Permitted Discretion, to maintain (including, without
limitation, reserves for accrued and unpaid interest on the Secured Obligations, reserves for consignee’s, warehousemen’s and bailee’s charges, reserves for contingent liabilities of any Loan Party, reserves for uninsured losses of
any Loan Party, reserves for uninsured, underinsured, un-indemnified or under-indemnified liabilities 

  
 5 

 
or potential liabilities with respect to any litigation and reserves for taxes, fees, assessments, and other governmental charges) with respect to the Collateral or any Loan Party. 

“Available Revolving Commitment” means, at any time, the Aggregate Revolving Commitments then in effect
minus the aggregate Revolving Exposure of all Revolving Lenders at such time. 
 “Average
Revolving Availability” means the average daily Revolving Availability for the immediately preceding fiscal quarter. 
 “Bank of America Fee Letter” means the letter agreement, dated as of August 10, 2012, between the Borrower and the Syndication Agent, as amended, modified, supplemented or restated
and in effect from time to time. 
 “Bank Products” shall mean one or more of the following
types or services or facilities provided to the Borrower by any Lender or any Affiliate of any Lender: (a) credit cards, purchase cards or stored value cards; (b) cash management or related services, including, without limitation,
(i) automated clearinghouse transfer of funds for the account of the Borrower pursuant to agreement or overdraft for any accounts of the Borrower maintained with any Lender that are subject to the control of such Lender, whether pursuant to any
deposit account control agreement to which such Lender is a party or by such Lender or any of its Affiliates being the financial institution at which the accounts are maintained, and (ii) controlled disbursement services; (c) foreign
exchange facilities; (d) if and to the extent permitted hereunder, Swap Agreements; (e) Factored Receivables; (f) leasing; and (g) supply chain finance services, including, without limitation, trade payable services and supplier
accounts receivable purchases. 
 “Bank Product Obligations” of the Loan Parties means any and
all obligations of the Loan Parties, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with
Bank Products. 
 “Bank Product Reserves” means such reserves as the ABL Administrative Agent
from time to time determines in its discretion as being appropriate to reflect any Bank Product Obligations of the Loan Parties with respect to any Bank Products (including, without limitation, Swap Agreements) then provided or outstanding;
provided that no such reserves shall be established with respect to any Bank Products unless the ABL Administrative Agent shall have received written notice duly executed by each of the Borrower and the Person providing such Bank Products
indicating that the Bank Product Obligations relating to such Bank Products shall be the subject of a Bank Product Reserve; provided further that once any such Bank Product Reserve has been established with respect to any Bank
Products, the ABL Administrative Agent shall not reduce or eliminate such Bank Product Reserve without the prior written consent of the Person providing such Bank Products. 

“Base Rate” means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in
effect for such day and (b) the Federal Funds Effective Rate in effect on such day plus  1/2 of 1%. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds

  
 6 

 
Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 

“Base Rate Borrowing” means a Borrowing comprised of Loans that bear interest at a rate determined by
reference to the Base Rate in accordance with the terms of Section 2.13. 
 “Base Rate
Loan” means a Loan that bears interest at a rate determined by reference to the Base Rate in accordance with the terms of Section 2.13. 
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America. 

“Borrower” has the meaning assigned to such term in the preamble. 

“Borrowing” means (a) ABL Revolving Loans of the same Type, made, converted or continued on the
same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (b) a Swingline Loan, (c) a Protective Advance, (d) the borrowing of the FILO Term Loan made by each of the FILO Lenders on the
Effective Date pursuant to Section 2.01(b), and/or (e) the borrowing of the Supplemental Term Loan made by each of the Supplemental Term Lenders on the First Amendment Effective Date pursuant to Section 2.01(c), in each
case as the context may require. 
 “Borrowing Base Certificate” means a certificate, signed
and certified as accurate and complete by a Financial Officer of the Borrower, in substantially the form of Exhibit B or another form which is reasonably acceptable to the ABL Administrative Agent and the Supplemental Term Agent in their
Permitted Discretion. 
 “Borrowing Base Proceeds Deposit Account” has the meaning assigned to
such term in Section 5.14(a). 
 “Borrowing Request” means a request by the
Borrower for a Revolving Borrowing in accordance with Section 2.03. 
 “Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in the state in which the ABL Administrative Agent’s offices are located or in San Jose, California are authorized or required by law to remain
closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

 “Capital Expenditures” means, for any period, without duplication, any expenditure or other
acquisition of any asset, including capitalized leasehold improvements, which would be classified as a fixed or capital asset on a consolidated balance sheet of the Borrower and its Restricted Subsidiaries prepared in accordance with GAAP;
provided that the term “Capital Expenditures” shall not include (i) expenditures made in connection with the replacement, substitution, restoration or repair of assets to the extent financed or reimbursed with
(x) insurance proceeds paid on account of the loss of or damage to the assets being replaced, restored or repaired, (y) awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced or
(z) tenant improvement allowances or landlord 

  
 7 

 
contributions, (ii) the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment to the extent that the gross amount of such purchase price is
reduced by the credit granted by the seller for such equipment being traded in at such time, or (iii) the purchase of plant, property or equipment to the extent financed or reimbursed with the proceeds of (A) tenant improvement allowances
or landlord contributions or (B) an Asset Sale or Property Loss Event that are not required to be applied to prepay the Obligations pursuant to Section 2.11(c). 

“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other
amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person
under GAAP as in effect on the Effective Date and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP as in effect on the Effective Date. 

“Cash Collateralize” means (i) with respect to LC Exposure, to pledge and deposit with or deliver
to the ABL Administrative Agent, for the benefit of each applicable Issuing Bank and the Revolving Lenders, as collateral for the LC Exposure, cash or deposit account balances in an amount equal to 103% of the outstanding amount of all LC Exposure,
pursuant to documentation in form and substance satisfactory to the ABL Administrative Agent and such Issuing Bank (which documents are hereby consented to by the Revolving Lenders), and (ii) with respect to other Unliquidated Obligations
(including, without limitation, indemnification obligations and expenses arising under Section 9.03), to pledge and deposit with or deliver to the ABL Administrative Agent, for the benefit of each other Lender Party, as collateral for
such Unliquidated Obligations, cash or deposit account balances in an amount reasonably requested by the ABL Administrative Agent in its Permitted Discretion, pursuant to documentation in form and substance satisfactory to the ABL Administrative
Agent (which documents are hereby consented to by the Lender Parties). “Cash Collateralization”, “Cash Collateral” and other derivatives of “Cash Collateralize” shall have a meaning correlative to
the foregoing. 
 “Cash Dominion Period” means each of the following: (a) each period
beginning on the date on which an Event of Default has occurred and ending on the date on which such Event of Default has been waived in accordance with the terms of this Agreement; (b) each period beginning on the date on which Combined
Availability has been less than fifteen percent (15%) of the Maximum Combined Availability for three (3) consecutive Business Days and ending on the date on which Combined Availability has equaled or exceeded fifteen percent (15%) of
the Maximum Combined Availability for thirty (30) consecutive Business Days; provided that a Cash Dominion Period shall be deemed continuing (even if even if an Event of Default is no longer continuing and/or Combined Availability
exceeds the required amount for thirty (30) consecutive Business Days) after a Cash Dominion Period has commenced on two (2) occasions during any twelve month period after the Effective Date if the first such Cash Dominion Period has been
terminated and shall continue until the expiration of the twelve month period ending after the commencement of the second Cash Dominion Period. The termination of a Cash Dominion Period as provided herein shall in no way limit, waive or delay the
commencement of a subsequent Cash Dominion Period in the event that the conditions set forth in this definition again arise. 

  
 8 

 “Change in Control” means the occurrence of any of the
following: 
 (a)        the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Borrower and its Restricted Subsidiaries, taken as a whole, to
any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than any one or more Permitted Holders; 
 (b)        the adoption of a plan relating to the liquidation or dissolution of the Borrower; 

(c)        any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act or any successor provisions to either of the foregoing), including any group acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning of
Rule 13d-5(b)(1) under the Exchange Act, other than any one or more of the Permitted Holders, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, except that a person will be deemed to have
“beneficial ownership” of all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 40% or more of the total voting power of the
Voting Stock of the Borrower or Holdings; provided, however, that the Permitted Holders are the “beneficial owners” (as defined in Rule 13d-3 under the Exchange Act, except that a person will be deemed to have
“beneficial ownership” of all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, in the aggregate of a lesser percentage of the
total voting power of the Voting Stock of the Borrower or Holdings than such other person or group (for purposes of this clause (c), such person or group shall be deemed to beneficially own any Voting Stock of a corporation held by a
parent corporation so long as such person or group beneficially owns, directly or indirectly, in the aggregate at least a majority of the total voting power of the Voting Stock of such parent corporation); 

(d)        the first day on which a majority of the members of the Board of
Directors of Holdings are not Continuing Directors, other than pursuant to the right of a Permitted Holder to designate members of the Board of Directors of Holdings pursuant to the Stockholders’ Agreement; or 

(e)        the occurrence of a “Change in Control” (or any comparable
term) under, and as defined in, (i) any document or instrument evidencing or governing any Material Indebtedness of the Borrower and its Subsidiaries, (ii) the Master Operating Lease and (iii) the Term Loan Agreement. 

“Change in Law” means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes
of Section 2.15(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement; provided, however, 

  
 9 

 
that “Change in Law” shall include, regardless of the date enacted, adopted or issued, all requests, guidelines, requirements or directives (i) under or relating to the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or (ii) promulgated pursuant to Basel III by the Bank of International Securities, the Basel Committee on Banking Supervision (or any similar authority) or any other Governmental Authority.

 “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or
the Loans comprising such Borrowing, are ABL Revolving Loans, Swingline Loans, Protective Advances, the FILO Term Loan or the Supplemental Term Loan. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Collateral” means any and all “Collateral” referred to in the Collateral Documents, except that, in addition to the Excluded Collateral as defined in the ABL Loan
Security Agreement, the Collateral shall not include (a) any assets as to which the Collateral Agent and the Borrower agree that the cost of obtaining a security interest therein are excessive in view of the benefits to be obtained by the
Lenders therefrom, (b) motor vehicles, aircraft and other assets subject to a certificate of title, or (c) deposits of cash and cash equivalents securing obligations to third parties otherwise permitted hereunder, provided that the
amount of such deposits shall not exceed $1,000,000 in the aggregate. 
 “Collateral Access
Agreement” has the meaning assigned to such term in the ABL Loan Security Agreement. 

“Collateral Agent” has the meaning assigned to such term in the preamble. 

“Collateral Documents” means, collectively, the ABL Loan Security Agreement, the Leasehold Mortgages and
any other documents granting, perfecting or evidencing a Lien upon the Collateral in favor of the Collateral Agent, on behalf of itself, the ABL Administrative Agent, the Supplemental Term Agent and the Lenders, as security for payment of the
Secured Obligations. 
 “Collection Account” has the meaning assigned to such term in
Section 5.14(a). 
 “Combined Availability” means, at any time, an amount equal to
(a) the sum of Maximum Revolving Availability plus the amount described in Section 2.01(b)(iii)(A), in each case at such time, minus (b) the outstanding Credit Extensions (other than the Supplemental Term Loan).

 “Commitment” means, with respect to each Lender, its Revolving Commitment, its FILO
Commitment and its Supplemental Term Commitment, as applicable. 
 “Commitment Increase” has
the meaning assigned to such term in Section 2.22(a). 
 “Commitment Schedule”
means the Schedule attached hereto identified as such. 
 “Continuing Directors” means, as of
any date of determination, any member of the Board of Directors of Holdings who (a) was a member of such Board of Directors on the date of this 

  
 10 

 
Agreement; or (b) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at
the time of such nomination or election. 
 “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto. 
 “Credit Card Account Receivable” means each
“Account”, together with all income, payments and proceeds thereof, owed by any Credit Card Issuer or Credit Card Processor to a Loan Party resulting from charges by a customer of the Borrower or any of its Restricted Subsidiaries on
credit cards issued by such Credit Card Issuer or processed by such Credit Card Processor in connection with the sale of goods by the Borrower or any of its Restricted Subsidiaries, or services performed by the Borrower or any of its Restricted
Subsidiaries, in each case in the ordinary course of its business. 
 “Credit Card Agreements”
means all agreements now or hereafter entered into by any Loan Party with any Credit Card Issuer or any Credit Card Processor, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced,
including, but not limited to, as to the Borrower, the agreements set forth on Schedule 3.21 hereto. 

“Credit Card Issuer” shall mean any Person who issues or whose members issue credit cards, including,
without limitation, MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club and other
non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American Express Travel Related Services Company, Inc. 

“Credit Card Processor” shall mean any servicing or processing agent or any factor or financial
intermediary who facilitates, services, processes or manages the credit authorization, billing transfer and/or payment procedures with respect to any sales transactions of any Loan Party involving credit card or debit card purchases by customers
using credit cards or debit cards issued by any Credit Card Issuer. 
 “Credit Extensions”
means as of any day, the sum of (a) the principal balance of all Loans then outstanding, and (b) the then outstanding amount of the Letter of Credit Outstandings. 

“Customs Broker Agreement” means an agreement in form and substance satisfactory to the ABL
Administrative Agent, the Supplemental Term Agent and the Collateral Agent among a Loan Party, a customs broker, freight forwarder or other carrier, and the Collateral Agent, pursuant to which the customs broker, freight forwarder or other carrier
acknowledges that it has control over and holds the documents evidencing ownership of the Inventory of such Loan Party for the benefit of the Collateral Agent and agrees, upon notice from the Collateral Agent, to hold and dispose of the subject
Inventory solely as directed by the Collateral Agent. 

  
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 “Default” means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
 “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Loans, participations in LC Exposure or participations in Swingline Loans required to be funded by
it hereunder within one (1) Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the ABL Administrative Agent, the Supplemental Term Agent or any other Lender any other amount required to
be paid by it hereunder within one (1) Business Day of the date when due, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 

“Deteriorating Lender” means any Defaulting Lender or any Lender as to which (a) any Issuing Bank
or the Swingline Lender has a good faith belief that such Lender has defaulted in fulfilling its obligations under one or more other syndicated credit facilities, or (b) a Person that Controls such Lender has been deemed insolvent or become the
subject of a bankruptcy, insolvency or similar proceeding. 
 “Deposit Account Control
Agreement” means an agreement, in form and substance reasonably satisfactory to the ABL Administrative Agent and the Supplemental Term Agent, among any Loan Party, a banking institution holding such Loan Party’s funds, and the
Collateral Agent, with respect to collection and control of all deposits and balances held in a deposit account maintained by any Loan Party with such banking institution. 

“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in
Schedule 3.06. 
 “Document” has the meaning assigned to such term in the ABL Loan
Security Agreement. 
 “dollars” or “$” refers to lawful money of the United
States of America. 
 “Effective Date” means October 17, 2012. 

“Effective Date Loans” shall have the meaning assigned to such term in Section 2.21(a).

 “Eligible Credit Card Account Receivable” means, at the time of any determination thereof,
each Credit Card Account Receivable that satisfies the following criteria at the time of creation and continues to meet the same at the time of such determination: such Credit Card Account Receivable (i) has been earned and represents the bona
fide amounts due to a Loan Party from a Credit Card Processor and/or Credit Card Issuer, and in each case originated in the ordinary course of business of the applicable Loan Party and (ii) is not ineligible for inclusion in the calculation of
the Revolving Borrowing Base or the Supplemental Term Borrowing Base pursuant to any of the clauses (a) through (i) below. Without limiting the foregoing, to qualify as an Eligible Credit Card Account Receivable, a Credit Card Account
Receivable shall indicate no person other than a Loan Party as payee or remittance party. Without limiting the ABL Administrative Agent’s Permitted Discretion provided herein, Eligible Credit Card Accounts Receivables shall not include any
Credit Card Account Receivable if: 

  
 12 

 (a)        such Credit Card Account
Receivable is not owned by a Loan Party and such Loan Party does not have good or marketable title to such Credit Card Account Receivable; 
 (b)        such Credit Card Account Receivable does not constitute an “Account” (as defined in the UCC) or such Credit Card Account Receivable has been
outstanding more than seven (7) Business Days; 
 (c)        the
Credit Card Issuer or Credit Card Processor of the applicable credit card with respect to such Credit Card Account Receivable is the subject of any bankruptcy or insolvency proceedings; 

(d)        such Credit Card Account Receivable is not a valid, legally
enforceable obligation of the applicable Credit Card Issuer with respect thereto; 

(e)        such Credit Card Account Receivable is not subject to a properly
perfected security interest in favor of the ABL Administrative Agent, or is subject to any Lien whatsoever other than Permitted Encumbrances contemplated by the processor agreements and for which appropriate reserves (as reasonably determined by the
ABL Administrative Agent) have been established or maintained by the Loan Parties; 

(f)        such Credit Card Account Receivable does not conform in all material
respects to all representations, warranties or other provisions in the Loan Documents or in the Credit Card Agreements relating to Credit Card Account Receivables; 

(g)        such Credit Card Account Receivable is subject to risk of set-off,
non-collection or not being processed due to unpaid and/or accrued credit card processor fee balances, limited to the lesser of the balance of Credit Card Account Receivables or unpaid credit card processor fees; 

(h)        such Credit Card Account Receivable is evidenced by “chattel
paper” or an “instrument” of any kind unless such “chattel paper” or “instrument” is in the possession of the ABL Administrative Agent, and to the extent necessary or appropriate, endorsed to the ABL Administrative
Agent; or 
 (i)        such Credit Card Account Receivable does not
meet such other usual and customary eligibility criteria for Credit Card Account Receivables as the ABL Administrative Agent may determine from time to time in its Permitted Discretion. 

In determining the amount to be so included in the calculation of value of an Eligible Credit Card Receivable, the face amount of a
Credit Card Account Receivable shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all customary fees and expenses in connection with any credit card arrangements and (ii) the
aggregate amount of all cash received in respect of such Credit Card Account Receivable but not yet applied by the Borrower to reduce the amount of such Credit Card Account Receivable. 

“Eligible Inventory” means all Inventory of a Loan Party that is not ineligible for inclusion in the
calculation of the Revolving Borrowing Base or the Supplemental Term Borrowing Base pursuant to any of clauses (a) through (l) below. Without limiting the ABL 

  
 13 

 
Administrative Agent’s Permitted Discretion provided herein, Eligible Inventory shall not include any Inventory: 

(a)        which is not subject to a first priority perfected Lien in favor of
the ABL Administrative Agent; 
 (b)        which is subject to any
Lien other than (i) a Lien in favor of the ABL Administrative Agent or the Collateral Agent and (ii) a Permitted Encumbrance; 
 (c)        which is, in the ABL Administrative Agent’s reasonable opinion, unmerchantable, defective, used, unfit for sale, not salable at prices approximating
at least the cost of such Inventory in the ordinary course of business or unacceptable due to age, type, category and/or quantity; 
 (d)        with respect to which any covenant, representation, or warranty contained in this Agreement or the ABL Loan Security Agreement has been breached or is
not true in all material respects and which does not conform in all material respects to all standards imposed by any Governmental Authority; 
 (e)        in which any Person other than any Loan Party shall (i) have any direct or indirect ownership, interest or title to such Inventory or (ii) be
indicated on any purchase order or invoice with respect to such Inventory as having or purporting to have an interest therein; 
 (f)        which is operating supplies, packaging or shipping materials, cartons, labels or other such materials not considered used for sale in the ordinary course
of business by the ABL Administrative Agent in its Permitted Discretion; 

(g)        which is not located in the U.S. or is in transit with a common
carrier from vendors and suppliers and has not yet been received into a distribution center or store; provided that in-transit inventory purchased under Letters of Credit hereunder shall be deemed Eligible Inventory, subject to a
twenty-five percent (25%) reserve, if (i) a Loan Party has sole title, (ii) a Loan Party has possession or control over title documents relating to such Inventory and a Loan Party is named as the consignee of such title documents,
(iii) the Collateral Agent has received a Customs Broker Agreement from each customs broker and freight forwarder acting on behalf of any Loan Party, (iv) the Inventory is fully insured, (v) the Inventory is not commingled with
Inventory of any other third party (which, for the avoidance of doubt, shall include Sears), and (vi) the Inventory would not be deemed ineligible pursuant to any other provision of this definition; 

(h)        which is located in any third party warehouse or is in the possession
of a bailee (other than a third party processor) and is not evidenced by a Document, unless (i) such warehouseman or bailee has delivered to the ABL Administrative Agent a Collateral Access Agreement and such other documentation as the ABL
Administrative Agent may require or (ii) an appropriate Reserve has been established by the ABL Administrative Agent in its Permitted Discretion; 
 (i)        which is the subject of a consignment by a Loan Party as consignor; 

  
 14 

 (j)        which is perishable;

 (k)        which contains or bears any intellectual property rights
licensed to a Loan Party unless the ABL Administrative Agent is reasonably satisfied that it may sell or otherwise dispose of such Inventory without (i) infringing the rights of such licensor, (ii) violating any contract with such
licensor, or (iii) incurring any liability with respect to payment of royalties other than royalties incurred pursuant to sale of such Inventory under the then current licensing agreement; or 

(l)        which is not reflected in a current perpetual inventory report of a
Loan Party. 
 Standards of eligibility may be made more restrictive from time to time solely by the ABL Administrative Agent in
the exercise of its Permitted Discretion, with any such changes to be effective five (5) Business Days after delivery of notice thereof to the Borrower and the Lenders. 

“Enforcement Action” means the exercise by the Collateral Agent in good faith of any of its material
enforcement rights and remedies as a secured creditor hereunder or under the other Loan Documents, any applicable Requirement of Law or otherwise at any time upon the occurrence and during the continuance of an Event of Default (including, without
limitation, the solicitation of bids from third parties to conduct the liquidation of any Collateral, the engagement or retention of sales brokers, marketing agents, investment bankers, accountants, appraisers, auctioneers or other third parties for
the purposes of valuing, marketing, promoting or selling any Collateral, the commencement of any action to foreclose on the security interests or Liens of the ABL Administrative Agent or the Collateral Agent in all or any material portion of the
Collateral, notification of account debtors to make payments to the Collateral Agent, notification to depository banks with respect to taking of exclusive control under Deposit Account Control Agreements, any action to take possession of all or any
material portion of the Collateral or commencement of any legal proceedings or actions against or with respect to all or any portion of the Collateral). 
 “Environmental Laws” means all applicable laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the protection of the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to the extent relating
to the presence or exposure to Hazardous Materials, to health and safety matters. 
 “Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or
based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

  
 15 

 “Equity Interests” means shares of capital stock,
partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or
acquire any such equity interest. 
 “ERISA” means the Employee Retirement Income Security Act
of 1974, as amended from time to time. 
 “ERISA Affiliate” means any trade or business
(whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code. 
 “ERISA Event” means (a) any
“reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of
an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA. 
 “Eurodollar”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 
 “Event of Default” has the meaning assigned to such term in Article VII. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Excluded Taxes” means, with respect to the ABL Administrative Agent, the Supplemental Term Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on
account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in
which the Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.19(b)), any 

  
 16 

 
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable
to such Foreign Lender’s failure to comply with Section 2.17(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section 2.17(a). 
 “Existing Credit Agreement” has the meaning assigned to such term in the preamble. 
 “Existing Letters of Credit” means each of the Letters of Credit described on Schedule 2.06 issued and outstanding under the Existing Credit Agreement immediately prior to the
Effective Date. 
 “Facilities” means, collectively, the Term Facility and the ABL Facility.

 “Factored Receivables” means any Accounts originally owed or owing by the Borrower or any
Guarantor to another Person which have been purchased by or factored with Wells Fargo Bank, National Association or any of its Affiliates pursuant to a factoring arrangement or otherwise with the Person that sold the goods or rendered the services
to the Borrower or Guarantor which gave rise to such Account. 
 “Federal Funds Effective Rate”
means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day
for such transactions received by the ABL Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
 “FILO Commitment” means, with respect to each FILO Lender, the commitment of such FILO Lender to make Loans to the Borrower in the amount set forth opposite its name on the Commitment
Schedule. 
 “FILO Lender” means each Lender having a FILO Commitment or having made a
portion of the FILO Term Loan, in each case as set forth on the Commitment Schedule or in the Assignment and Assumption by which it becomes a FILO Lender. 

“FILO Term Loan” means the Loan made by a FILO Lender pursuant to Section 2.01(b).

 “Financial Officer” means the chief executive officer, president, chief financial officer,
treasurer or assistant treasurer of a Loan Party or any of the other individuals designated in writing to the ABL Administrative Agent by an existing Financial Officer of a Loan Party as an authorized signatory of any certificate or other document
to be delivered hereunder. Any document delivered hereunder that is signed by a Financial Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such
Loan Party and such Financial Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

  
 17 

 “First Amendment Effective Date” means February 11,
2013. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

“Fronting Fee” has the meaning assigned to such term in Section 2.06(j). 

“Funding Account” means account number 1487602794 maintained by the Borrower with Bank of America, N.A.
and designated as the “Main Concentration Account”. 
 “GAAP” means generally
accepted accounting principles in the United States of America as in effect from time to time. 
 “Gift
Card Liability Reserve” means, at any fiscal month end, as the case may be, a reserve equal to the total value of all gift cards outstanding. 
 “Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any
security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee of any guarantor
shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made and (b) the maximum amount for which such guarantor may be liable pursuant to
the terms of the instrument embodying such Guarantee, unless such primary obligation and the maximum amount for which such guarantor may be liable are not stated or determinable, in which case the amount of such Guarantee shall be such
guarantor’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith. 
 “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01. 

  
 18 

 “Hazardous Materials” means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and
all other substances or wastes of any nature regulated pursuant to any Environmental Law. 

“Holdings” has the meaning assigned to such term in the preamble. 

“Honor Notice Date” has the meaning assigned to such term in Section 2.06(c)(i). 

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by
such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business and any earn-out obligation until such obligation
becomes a liability on the balance sheet of such Person in accordance with GAAP but including any liquidated earn-out), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease
Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (i) all obligations, contingent or otherwise, of such Person in respect
of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 

“Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Initial Loans” means the Loans which, subject to the Revolving Borrowing Base, can be drawn on the
Effective Date. 
 “Intercreditor Agreement” means the Amended and Restated Intercreditor
Agreement, dated as of January 29, 2010, among the Term Administrative Agent, the Term Collateral Agent, the ABL Administrative Agent, the Collateral Agent, the Borrower and the Loan Guarantors, as amended and in effect from time to time.

 “Interest Election Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.08. 
 “Interest Payment Date”
means: (a) except as provided in clause (b) below, (i) with respect to any Base Rate Loan (including any Swingline Loan), the first day of January, April, July, and October and the Revolving Credit Termination Date; and (ii) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than

  
 19 

 
three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and the
Revolving Credit Termination Date, and (b) with respect to any portion of the Supplemental Term Loan, the first day of each month. Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event of Default,
“Interest Payment Date” means, with respect to any Base Rate Loan (including any Swingline Loan), the last day of each month and the Revolving Credit Termination Date. 

“Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on the date of
such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, if available and agreed to by all Lenders, nine or twelve months) thereafter, as the Borrower may elect;
provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof,
the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 

“Inventory” has the meaning assigned to such term in the ABL Loan Security Agreement. 

“Inventory Reserves” shall mean reserves against Inventory equal to the sum of the following:

 (a)        a reserve for shrink, or discrepancies between Inventory
quantities on hand pursuant to the Borrower’s perpetual and physical counts of the Inventory had a full physical count been performed as of the date of the most recently delivered Borrowing Base Certificate; and 

(b)        a reserve reasonably determined by the ABL Administrative Agent in
its Permitted Discretion for Inventory that is discontinued or slow-moving; and 

(c)        a reserve for Inventory which is designated to be returned to vendor
or which is recognized as damaged or off quality or not to customer specifications by the Borrower; and 

(d)        any other reserve as deemed appropriate by the ABL Administrative
Agent in its Permitted Discretion, from time to time. 
 “ISP” means, with respect to any
Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance). 

  
 20 

 “Issuer Documents” means, with respect to any Letter of
Credit, the Letter Credit Application, and any other document, agreement and instrument entered into by any Issuing Bank and the Borrower (or any Subsidiary) and relating to any such Letter of Credit. 

“Issuing Bank” means (a) Wells Fargo, in its capacity as the issuer of Letters of Credit hereunder,
(b) Bank of America, N.A. or an Affiliate thereof, and (c) any other Revolving Lender designated as an Issuing Bank by the Borrower and the ABL Administrative Agent (such approval not to be unreasonably withheld) and their successors in
such capacity as provided in Section 2.06(l). Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall
include any such Affiliate with respect to Letters of Credit issued by such Affiliate. 
 “Joinder
Agreement” has the meaning assigned to such term in Section 5.13. 
 “LC
Advance” means, with respect to each Revolving Lender, such Revolving Lender’s funding of its participation in any LC Borrowing in accordance with its Applicable Percentage. 

“LC Borrowing” means an LC Disbursement which has not been reimbursed on the date when reimbursement is
required pursuant to the terms of Section 2.06(c)(i) and which has not been refinanced as a Revolving Borrowing pursuant to the terms of Section 2.06(c)(i). 

“LC Collateral Account” has the meaning assigned to such term in Section 2.06(g).

 “LC Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or
extension of the expiry date thereof, or the increase of the amount thereof. 
 “LC
Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit. 
 “LC
Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Borrowings. The LC Exposure of any Revolving Lender at any
time shall be its Applicable Percentage of the total LC Exposure at such time. 
 “Leasehold
Mortgages” means the leasehold mortgages in favor of the Collateral Agent made by the Borrower or any other Loan Party, each in form and substance reasonably satisfactory to the Collateral Agent. 

“Leasehold Mortgage Supporting Documents” means, with respect to a Leasehold Mortgage, each of the
following: 
 (a)        (i) evidence in form and substance reasonably
satisfactory to the ABL Collateral Agent that the recording of counterparts of such Leasehold Mortgage in the recording offices specified in such Leasehold Mortgage will create a valid and enforceable first priority lien on the rights described
therein in favor of the Collateral Agent, for its own benefit and the benefit of the ABL Administrative Agent, the Supplemental Term Agent and the Lenders (or in favor of such other trustee as may be required or desired under local law), subject
only to (A) Liens permitted under Section 6.02 and (B) such other Liens as the ABL Administrative Agent 

  
 21 

 
may reasonably approve and (ii) an opinion of counsel in each state in which any such Leasehold Mortgage is to be recorded in form and substance and from counsel reasonably satisfactory to
the ABL Administrative Agent; and 
 (b)        such other agreements,
documents and instruments (including, without limitation, (i) title searches (together with all documents referred to therein), (ii) maps, plats, as-built surveys, and environmental reports (in each case, to the extent existing) and
(iii) evidence regarding recording and payment of all recording fees and stamp, documentation, intangible or mortgage taxes, if any), each in form and substance reasonably satisfactory to the Collateral Agent, as the Collateral Agent deems
necessary or appropriate to create, register or otherwise perfect, maintain, evidence the existence, substance, form or validity of, or enforce a valid and enforceable first priority lien on such rights in favor of the Collateral Agent, for its own
benefit and the benefit of the ABL Administrative Agent, the Supplemental Term Agent and the Lenders (or in favor of such other trustee as may be required or desired under local law), subject only to (A) Liens permitted under
Section 6.02 and (B) such other Liens as the ABL Administrative Agent may reasonably approve. 

“Leases” means, with respect to any Person, all of those leasehold estates in real property of such
Person, as lessee, as such may be amended, supplemented or otherwise modified from time to time. 

“Lender Party” has the meaning assigned to such term in Article VII. 

“Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term “Lenders”
(i) includes the Swingline Lender, and (ii) when used in connection with participations in Letters of Credit and Swingline Loans, shall not include FILO Lenders or Supplemental Term Lenders. 

“Letter of Credit” means any Trade Letter of Credit or any Standby Letter of Credit issued pursuant to
this Agreement. Without limiting the foregoing, the Existing Letters of Credit shall be deemed to be Letters of Credit issued under this Agreement. 
 “Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by any Issuing Bank. 

“Letter of Credit Expiration Date” means the day that is five (5) days prior to the Maturity Date
(or, if such day is not a Business Day, the next preceding Business Day). 
 “Letter of Credit
Fee” has the meaning assigned to such term in Section 2.06(i). 
 “Letter of Credit
Outstandings” means, at any time, the sum of (a) with respect to Letters of Credit outstanding at such time, the aggregate maximum amount that then is or at any time thereafter may become available for drawing or payment thereunder
plus (b) all amounts theretofore drawn or paid under Letters of Credit for which any Issuing Bank has not then been reimbursed. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its
terms but any amount may still be drawn thereunder by reason of the 

  
 22 

 
operation of Rule 3.14 (or such other comparable rule then in effect) of the International Standby Practices (published by the Institute of International Banking Law & Practice), such
Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. 
 “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on such page of such Service, as determined by the ABL Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with
a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at
which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the ABL Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 

“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing) relating to such asset. 
 “Loan
Documents” means this Agreement, the Notes, any Letter of Credit Applications, the Wells Fargo Fee Letter, the Bank of America Fee Letter, the Wells Fargo Supplemental Term Fee Letter, the Collateral Documents, the Loan Guaranty, the
Intercreditor Agreement, and all other agreements, instruments, documents and certificates identified in Section 4.01 executed and delivered to, or in favor of, the ABL Administrative Agent, the Supplemental Term Agent or any Lenders and
including, without limitation, all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements and all other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan
Party, or any employee of any Loan Party, and delivered to the ABL Administrative Agent, the Supplemental Term Agent or any Lender in connection with the Agreement or the transactions contemplated thereby. Any reference in this Agreement or any
other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may
be in effect at any and all times such reference becomes operative. 
 “Loan Guarantor” means
Holdings, each Restricted Subsidiary of the Borrower party to this Agreement and any other Person who becomes a party to this Agreement pursuant to a Joinder Agreement and their successors and assigns. 

“Loan Guaranty” means Article X of this Agreement. 

  
 23 

 “Loan Parties” means Holdings, the Borrower and the Loan
Guarantors and their successors and assigns, but in no event including the Unrestricted Subsidiary. 

“Loans” means the loans and advances made by the Lenders pursuant to this Agreement, including ABL
Revolving Loans, Swingline Loans, the FILO Term Loan, the Supplemental Term Loan and Protective Advances. 

“Management Services Agreement” means the Management Services Agreement, dated as of November 23,
2005, among the Borrower, Holdings and ACOF Operating Manager, LP. 
 “Master Operating Lease”
means the lease agreement, dated as of November 23, 2005, between Real Property Holding Company, as landlord, and the Borrower, as tenant, as amended by that certain First Amendment to Lease dated as of February 13, 2006. 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on,
the operations, business, assets, properties, or financial condition of the Borrower and its subsidiaries, taken as a whole; (b) a material impairment of the rights and remedies of the ABL Administrative Agent or the Supplemental Term Agent
under any loan documentation, or of the ability of the Borrower and the Guarantors, taken as a whole, to perform their respective material obligations under any loan documentation to which they are a party; or (c) a material adverse effect upon
the legality, validity, binding effect or enforceability against the Borrower and the Guarantors, taken as a whole, of any loan documentation to which it is a party. 

“Material Contract” means, with respect to any Person, each contract to which such Person is a party
material to the business, condition (financial or otherwise), operations, performance, properties or prospects of such Person. 
 “Material Indebtedness” means (a) Indebtedness arising under the Term Loan Documents and (b) other Indebtedness (other than the Loans and Letters of Credit), and obligations in
respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $15,000,000. For purposes of determining Material Indebtedness, the “obligations” of the Borrower or
any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such
time. 
 “Maturity Date” means the earlier of (a) October 17, 2017 or (b) ninety
(90) days prior to the final maturity date of any portion of the Term Facility. 
 “Maximum
Combined Availability” means, at any time, (a) the sum of (i) the lesser of (x) the Aggregate Revolving Commitments in effect at such time and (y) the Revolving Borrowing Base (calculated without inclusion of the then
outstanding balance of the FILO Term Loan), in each case at such time, plus (ii) the outstanding principal balance of the FILO Term Loan at such time, minus (b) the aggregate amount of any Availability Reserves in effect at
such time. 
 “Maximum Revolving Availability” means, at any time, (a) the lesser of
(i) the Aggregate Revolving Commitments in effect at such time and (ii) the Revolving Borrowing Base 

  
 24 

 
(calculated without inclusion of the then outstanding balance of the FILO Term Loan) at such time minus (b) the aggregate amount of any Availability Reserves in effect at such time.

 “Maximum Liability” has the meaning assigned to such term in Section 10.10.

 “Moody’s” means Moody’s Investors Service, Inc. 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 “Net Orderly Liquidation Value” means, at any time, the estimated net income, payments and
proceeds (net of expenses) which could reasonably be realized in connection with an orderly liquidation of each Loan Party’s Inventory given a reasonable period of time for soliciting offers for the sale of such Inventory on an “as is,
where is” basis (expressed as a percentage) based on an updated appraisal provided by an independent third party appraiser retained or approved by the ABL Administrative Agent and the Supplemental Term Agent in consultation with the Borrower.

 “Net Proceeds” means, with respect to any Prepayment Event, (a) the cash proceeds
received in respect of such event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and
similar payments, net of (b) the sum of (i) all reasonable attorneys’ fees, accountants’ fees, investment banking fees and other reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in
connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments
required to be made as a result of such event to repay Indebtedness (other than the Loans and the Term Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event and to pay any interest, premium or other
amounts in connection therewith and (iii) the amount of all taxes paid (or reasonably estimated to be payable) as a result thereof and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable, in
each case during the year that such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer). 

“New Facility” has the meaning assigned to such term in Section 9.20. 

“Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).

 “Non-Extension Notice Date” has the meaning assigned to such term in
Section 2.06(b)(iii). 
 “Non-Paying Guarantor” has the meaning assigned to such
term in Section 10.11. 

  
 25 

 “Notes” means any notes evidencing the ABL Revolving Loans,
FILO Term Loan, Supplemental Term Loan or Swingline Loans issued pursuant to this Agreement, if any, substantially in the form of Exhibit E-1, E-2, E-3 or E-4, as the case may be. 

“Obligated Party” has the meaning assigned to such term in Section 10.02. 

“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC
Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations of the Loan Parties to each Lender, the ABL Administrative Agent, the Supplemental Term Agent, each Issuing Bank or any indemnified party
arising under the Loan Documents. 
 “Original Agent” means JPMorgan Chase Bank, N.A., in its
capacity as administrative agent and collateral agent under the Amended and Restated Senior Secured Credit Agreement dated as of December 21, 2006. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or
from the execution, delivery or enforcement of this Agreement. 
 “Participant” has the meaning
assigned to such term in Section 9.04. 
 “Patriot Act” has the meaning assigned to
such term in Section 9.14. 
 “Paying Guarantor” has the meaning assigned to such
term in Section 10.11. 
 “Payment Conditions” means, with respect to any specified
payment, that (x) no Default or Event of Default has occurred or would arise as a result of the making of such payment, (y) (1) Combined Availability has been equal to or greater than fifteen percent (15%) of Maximum Combined
Availability at all times for the six (6) months immediately preceding the date on which such payment is proposed to be made, after giving retrospective pro forma effect to such payment and any concurrent related and interdependent transaction
otherwise permitted hereunder, and (2) Combined Availability is projected, after giving prospective pro forma effect to such payment and any concurrent related and interdependent transaction otherwise permitted hereunder, to be equal to or
greater than fifteen percent (15%) of Maximum Combined Availability at all times for the six (6) months immediately after the date on which such payment is proposed to be made, and (z) prior to making such payment, the ABL
Administrative Agent and the Supplemental Term Agent have received a certificate duly executed by a Financial Officer of the Borrower and attaching projections and financial statements evidencing satisfaction of the conditions contained in clause
(y) above, on a basis (including, without limitation, giving due consideration to results for prior periods) reasonably satisfactory to the ABL Administrative Agent and the Supplemental Term Agent. 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor
entity performing similar functions. 
 “Permitted Discretion” means a determination made in
good faith and in the exercise of reasonable (from the perspective of secured asset-based lenders in similar financings) 

  
 26 

 
commercial judgment in accordance with customary business practices for comparable asset-based loans. 
 “Permitted Encumbrances” means: 

(a)        Liens imposed by law for taxes that are not yet due or are being
contested in compliance with Section 5.04; 

(b)        carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with
Section 5.04; 
 (c)        pledges and deposits made in
the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations or to secure public or statutory obligations; 

(d)        deposits to secure the performance of bids, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 
 (e)        judgment liens in respect of judgments that do not constitute an Event of Default under clause (j) of Article VII; 

(f)        easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of
business of the Borrower or any Restricted Subsidiary; 

(g)        pledges and deposits in the ordinary course of business securing
liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to the Borrower or any
of its Restricted Subsidiaries; 
 (h)        Liens in favor of customs
and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business; 

(i)        Liens arising out of conditional sale, title retention, consignment
or similar arrangements for sale of goods entered into by the Borrower or any of its Restricted Subsidiaries in the ordinary course of business permitted by this Agreement; 

(j)        Liens that are contractual rights of set-off (i) relating to the
establishment of depository relations with banks not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposit or sweep accounts of the Borrower or any of its Restricted Subsidiaries to permit satisfaction of
overdraft or similar obligations incurred in the ordinary course of business of Borrower and its Restricted Subsidiaries or (iii) relating to purchase orders and other 

  
 27 

 
agreements entered into with customers of the Borrower or any of its Restricted Subsidiaries in the ordinary course of business; 

(k)        Liens solely on any cash earnest money deposits made by the Borrower
or any of its Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder; 
 (l)        Liens in favor of Credit Card Issuers arising in the ordinary course of business securing the obligation to pay customary fees and expenses in connection
with credit card arrangements; and 
 (m)        Liens arising under
Uniform Commercial Code financing statements or similar filings made in respect of operating leases entered into by the Borrower or any of its Subsidiaries. 
 provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 

“Permitted Holders” means (a) ACOF I LLC and (b) ESL Investments, Inc. and their respective
Related Parties and Affiliates. 
 “Permitted Investments” means: 

(a)        direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from
the date of acquisition thereof; 
 (b)        investments in
commercial paper maturing within 12 months from the date of acquisition thereof and having, at such date of acquisition, a rating of at least A-2 (or the then equivalent grade) from S&P or P-2 (or the then equivalent grade) from Moody’s;

 (c)        investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 12 months from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under
the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $250,000,000; 
 (d)        repurchase agreements with a term of not more than 30 days for securities issued or fully guaranteed by the United States government entered into with a
financial institution satisfying the criteria described in clause (c) above; and 

(e)        securities issued or fully guaranteed by any state, commonwealth or
territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing
authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s; 

  
 28 

 (f)        securities backed by
standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (c) of this definition; 
 (g)        money market mutual or similar funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this
definition; and 
 (h)        money market funds that (i) comply
with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and AAA by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

 “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan”
means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate
is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
 “Pledged Collateral” has the meaning assigned to such term in the ABL Loan Security Agreement. 
 “Prepayment Event” means: 

(a)        any sale, transfer or other disposition (including pursuant to a sale
and leaseback transaction) of any property or asset of any Loan Party which constitutes Collateral, other than, with respect to Collateral not constituting Supplemental Term Priority Collateral, dispositions described in clauses (a)(i),
(a)(ii), (b), (c), (d), (f), (g) and (h) of Section 6.05; or 
 (b)        any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset
of any Loan Party which constitutes Collateral. 
 “Prime Rate” means the rate of interest as
publicly announced from time to time by Wells Fargo as its “prime rate.” The “prime rate” is a rate set by Wells Fargo based upon various factors including Wells Fargo’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Wells Fargo shall take effect at the opening of business on the day
specified in the public announcement of such change. 
 “Projections” has the meaning assigned
to such term in Section 5.01(g). 
 “Protective Advance” has the meaning assigned
to such term in Section 2.04. 
 “Qualified Subordinated PIK Debt” has the meaning
given such term in the Term Loan Agreement. 

  
 29 

 “Real Property” means all now owned and hereafter acquired
real property of the Borrower and the Restricted Subsidiaries, including leasehold interests, together with all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto, wherever
located. 
 “Real Property Holding Company” means OSH Properties LLC, which is a Special
Purpose Vehicle. 
 “Real Property Holding Company Collateral Access Agreement” means the
Amended and Restated Collateral Access Agreement, dated as of December 21, 2006, by OSH Properties LLC in favor of the Original Agent, as amended, amended and restated, replaced, supplemented or modified from time to time. 

“Register” has the meaning set forth in Section 9.04. 

“Reimbursement Date” has the meaning assigned to such term in Section 2.06(c)(i).

 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates
and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
 “Remaining Collateral” has the meaning assigned to such term in Section 9.20. 
 “Rent Expense” means, for any period, the aggregate amount of cash rental and lease charges payable by Borrower and its Restricted Subsidiaries, including, for the avoidance of doubt,
rental payments to the Unrestricted Subsidiary, for such period with respect to operating leases of Real Property, determined on a consolidated basis in accordance with GAAP. 

“Rent Reserves” with respect to any store, warehouse distribution center, regional distribution center,
or depot where any Inventory subject to Liens arising by operation of law is located or with respect to which a Collateral Access Agreement has not been delivered, a reserve determined by the ABL Administrative Agent in its Permitted Discretion, not
to exceed two (2) month’s rent at such store, warehouse distribution center, regional distribution center, or depot. 
 “Report” means reports prepared by the ABL Administrative Agent, the Supplemental Term Agent or another Person showing the results of appraisals, field examinations or audits pertaining
to the Borrower’s assets from information furnished by or on behalf of the Borrower, after the ABL Administrative Agent or the Supplemental Term Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be
distributed to the Lenders by the ABL Administrative Agent or the Supplemental Term Agent. 
 “Required
FILO Lenders” means, at any time, at least two FILO Lenders (that are not Affiliates) holding in the aggregate more than 50% of the FILO Term Loan at such time. 

“Required Lenders” means, at any time, at least two Lenders (that are not Affiliates) holding in the
aggregate more than 50% of the sum of (i) the total Revolving Exposure, (ii) unused Revolving Commitments, (iii) outstanding principal balance of the FILO Term Loan, and 

  
 30 

 
(iv) outstanding principal balance of the Supplemental Term Loan, in each case at such time; provided that Required Lenders shall at all times include the Required Revolving Lenders.

 “Required Revolving Lenders” means, at any time, at least two Lenders (that are not
Affiliates) having Revolving Exposure and unused Revolving Commitments representing more than 50% of the sum of (i) the total Revolving Exposure, and (ii) unused Revolving Commitments, in each case at such time. 

“Required Supplemental Term Lenders” means, at any time, at least two Supplemental Term Lenders
(that are not Affiliates) holding in the aggregate more than 50% of the Supplemental Term Loan at such time. 
 “Requirement of Law” as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation
or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Reserves” means Inventory Reserves, Rent Reserves, Gift Card Liability Reserves, and Availability
Reserves. 
 “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Borrower or any Restricted Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any Restricted Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any
Restricted Subsidiary. 
 “Restricted Subsidiary” means any Subsidiary of Holdings and the
Borrower other than the Unrestricted Subsidiary. 
 “Revolving Availability” means, at any
time, an amount equal to (a) Maximum Revolving Availability at such time minus (b) the outstanding Credit Extensions (calculated without inclusion of the principal balance of the FILO Term Loan or the principal balance of the
Supplemental Term Loan). 
 “Revolving Borrowing Base” means, at any time, the sum of:

 (a)        the product of (i) 90% multiplied by
(ii) the appraised Net Orderly Liquidation Value of Eligible Inventory of the Borrower at such time, plus  
 (b)        the product of (i) 90% multiplied by (ii) the Borrower’s Eligible Credit Card Account Receivables at such time minus any
Reserve related to Eligible Credit Card Account Receivables, plus 

(c)        the then outstanding balance of the FILO Term Loan; minus

  
 31 

 (d)        all Reserves, other than
Availability Reserves. 
 Any Reserve adjustment permitted to be made by the ABL Administrative Agent under this Agreement shall
be effective upon notice to the Borrower by the ABL Administrative Agent, except with respect to certain Availability Reserves that go into effect as of three (3) Business Days or five (5) Business Days, as applicable pursuant to the
definition of “Availability Reserves”, after the date of written notice of any determination thereof to the Borrower by the ABL Administrative Agent. The Revolving Borrowing Base at any time shall be determined by reference to the most
recent Borrowing Base Certificate delivered to the ABL Administrative Agent pursuant to Section 5.01(h) of this Agreement. 
 “Revolving Commitment” means, with respect to each Revolving Lender, the commitment, if any, of such Revolving Lender to make ABL Revolving Loans and to acquire participations in Letters
of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate amount of such Revolving Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.09, and (b) reduced or increased from time to time pursuant to assignments by or to such Revolving Lender pursuant to Section 9.04 together with the commitment of such Revolving Lender to acquire participations
in Protective Advances hereunder. The amount of each Revolving Lender’s Revolving Commitment as of the First Amendment Effective Date is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such
Revolving Lender shall have assumed its Revolving Commitment, as applicable. The aggregate amount of the Revolving Lenders’ Revolving Commitments as of the First Amendment Effective Date is $120,000,000. 

“Revolving Credit Termination Date” means with respect to the Revolving Commitments of the Revolving
Lenders, the Termination Date or any earlier date on which the Revolving Commitments of the Revolving Lenders are permanently reduced to zero or otherwise terminated pursuant to the terms hereof. 

“Revolving Exposure” means, with respect to any Revolving Lender at any time, the sum of the outstanding
principal amount of such Revolving Lender’s ABL Revolving Loans and its LC Exposure and an amount equal to its Applicable Percentage of the aggregate principal amount of Swingline Loans at such time, plus an amount equal to its
Applicable Percentage of the aggregate principal amount of Protective Advances outstanding at such time. 

“Revolving Lender” means each Revolving Lender having a Revolving Commitment or having made an ABL
Revolving Loan, in each case as set forth on the Commitment Schedule or in the Assignment and Assumption by which it becomes a Revolving Lender. 
 “Revolving Loan” means a Loan. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc. 
 “Sears” means Sears, Roebuck and Co. 

  
 32 

 “Secured Obligations” means all Obligations, together with
all (i) Swap Obligations owing to one or more Lenders or their respective Affiliates; provided that, at or prior to the time that any transaction relating to such Swap Obligation is executed, the Lender party thereto (other than
Wells Fargo) shall have delivered written notice to the ABL Administrative Agent that such a transaction has been entered into and that it constitutes a Secured Obligation entitled to the benefits of the Collateral Documents, and (ii) all other
Bank Product Obligations. 
 “Security Agreements” means, collectively, the ABL Loan Security
Agreement and the Term Loan Security Agreement. 
 “Special Purpose Vehicle” means a trust,
partnership or other special purpose Person established by Holdings or the Borrower in a manner that is intended to legally isolate the assets of such Person from Holdings and its other Subsidiaries as a consolidated group. 

“Standby Letter of Credit” means any letter of credit (other than a Trade Letter of Credit) issued by an
Issuing Bank for the account of a Loan Party pursuant to this Agreement and all amendments, renewals, extensions and replacements thereof. 
 “Stated Amount” means, at any time, the maximum amount for which a Letter of Credit may be honored. 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number
one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the ABL
Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Stockholders’ Agreement” means the Second Amended and Restated Stockholders’ Agreement among
Holdings, ACOF I LLC, ESL Investments, Inc., Edward S. Lambert and William Crowley dated December 30, 2011. 
 “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the payment of which is subordinated to payment of the Obligations and the Bank Product Obligations
(including the Swap Obligations) to the written satisfaction of the ABL Administrative Agent and the Supplemental Term Agent. 
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other 

  
 33 

 
entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than
50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent. 
 “Subsidiary” means any subsidiary of the Borrower or any other
Loan Party, as applicable. 
 “Supermajority Revolving Lenders” means, at any time, at least
two Revolving Lenders (that are not Affiliates) having Revolving Exposure and unused Revolving Commitments representing more than 662/3% of the sum of the total Revolving Exposure and unused Revolving Commitments at such time. 

“Supplemental Term Action Notice” shall have the meaning set forth in Section 8.02(b)
hereof. 
 “Supplemental Term Borrowing Base” means, at any time of calculation, an amount
equal to: 
 (a)        the product of (x) the
Supplemental Term Inventory Advance Rate multiplied by (y) the appraised Net Orderly Liquidation Value of Eligible Inventory of the Borrower; 

plus 

(b)        the product of (x) ten percent
(10%) multiplied by (y) the Borrower’s Eligible Credit Card Account Receivables at such time minus any Reserve related to Eligible Credit Card Account Receivables. 

“Supplemental Term Agent” means Wells Fargo Bank, National Association, in its capacity as
administrative agent for the Supplemental Term Lenders hereunder, or any successor. 
 “Supplemental
Term Commitment” means, with respect to each Supplemental Term Lender, the commitment of such Supplemental Term Lender to make Loans to the Borrower in the amount set forth opposite its name on the Commitment Schedule. 

“Supplemental Term Inventory Advance Rate” means twelve and one-half percent (12.5%), as such amount
shall be reduced by two tenths of one percent (0.20%) on the first day of each calendar quarter commencing on April 1, 2013. 
 “Supplemental Term Lender” means each Lender having a Supplemental Term Commitment or having made a portion of the Supplemental Term Loan, in each case as set forth on the Commitment
Schedule or in the Assignment and Assumption by which it becomes a Supplemental Term Lender. 

“Supplemental Term Loan” means the Loan made by the Supplemental Term Lenders on the First Amendment
Effective Date pursuant to Section 2.01(c). 

  
 34 

 “Supplemental Term Prepayment Fee” has the meaning assigned
to such term in Section 2.12(c). 
 “Supplemental Term Priority Collateral” means
all now owned or hereafter acquired Collateral that constitutes: 

(a)        Fixtures and Equipment; 

(b)        all trademarks, tradenames, servicemarks, copyrights, patents, URLs,
domain names, customer lists and all license agreements related to the foregoing; 

(c)        permits and licenses related to any of the foregoing (including any
permits or licenses related to ownership or operation of Fixtures or Equipment of any Loan Party); 

(d)        all proceeds of insurance that relate to the foregoing; 

(e)        all books and records related to the foregoing and not constituting
ABL Priority Collateral; and 
 (f)        all products and proceeds of
the foregoing. 
 All capitalized terms used in this definition and not defined elsewhere in this Agreement have the meanings
assigned to them in the UCC. 
 “Supplemental Term Reserve” means, at any time of
determination, the amount, if any, by which the aggregate outstanding principal balance of the Supplemental Term Loan exceeds the Supplemental Term Borrowing Base, which amount shall be imposed by the ABL Administrative Agent as an Availability
Reserve to the extent a positive number. 
 “Swap Agreement” means any agreement with respect
to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing
indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of the Borrower or the Restricted Subsidiaries shall be a Swap Agreement. 
 “Swap Obligations” of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including
all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction.

 “Swingline Lender” means Wells Fargo Bank, National Association, in its capacity as lender
of Swingline Loans hereunder. 

  
 35 

 “Swingline Loan” means a Loan made pursuant to
Section 2.05. 
 “Syndication Agent” means Bank of America, N.A. 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
 “Tax Sharing Agreement” means the Tax
Sharing Agreement, dated as of November 23, 2005, among Holdings, Sears Holdings Corporation and all direct and indirect subsidiaries of Holdings. 
 “Term Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Term Lenders under the Term Loan Agreement, or its successors. 

“Term Collateral Agent” means JPMorgan Chase Bank, N.A., in its capacity as collateral agent for the
Term Lenders under the Term Loan Agreement, or its successors. 
 “Term Facility” means the
term loans under the Term Loan Agreement. 
 “Term Facility Payment Conditions” means, at the
time of determination with respect to any payment in respect of the Term Facility, that (a) no Default or Event of Default then exists or would arise as a result of the making such payment, and (b) Holdings shall have received Net Proceeds
of the issuance of common Equity Interests (or preferred Equity Interests on terms reasonably acceptable to the ABL Administrative Agent and the Required Supplemental Term Lenders) in an aggregate amount of not less than $30,000,000, and the ABL
Administrative Agent shall have received evidence, in form and substance reasonably satisfactory to the ABL Administrative Agent, that such Net Proceeds shall have been contributed to the Borrower immediately upon receipt thereof by Holdings.

 “Term Facility Primary Collateral” has the meaning assigned to such term in the
Intercreditor Agreement. 
 “Term Lenders” means the lenders under the Term Loan Agreement.

 “Term Loan Agreement” means the Senior Secured Term Loan Agreement dated as of
December 21, 2006 among the Borrower, the Loan Guarantors, the Term Lenders and the Term Administrative Agent, as amended and restated pursuant to that certain Amendment and Restatement Agreement dated as of December 22, 2011 by, among
others, the Borrower, the Loan Guarantors, the Term Lenders and the Term Administrative Agent and as may hereafter be amended, restated or otherwise modified from time to time in accordance with the terms of the Intercreditor Agreement. 

“Term Loan Documents” means the “Loan Documents” (as such term is defined in the Term Loan
Agreement). 
 “Term Loan Security Agreement” means that certain Pledge and Security Agreement,
dated as of December 21, 2006, between the Loan Parties and the Term Collateral Agent, for the benefit of the Term Administrative Agent and the Term Lenders, and any other pledge or 

  
 36 

 
security agreement entered into after the date of the Term Loan Agreement by any other Loan Party (as required by the Term Loan Agreement or any other Term Loan Document), or any other Person,
granting a Lien on any property to secure the obligations and liabilities of any Loan Party under any Term Loan Document, as the same may be amended, restated or otherwise modified from time to time in accordance with the terms of the Intercreditor
Agreement. 
 “Term Loans” has the meaning given such term in the Term Loan Agreement.

 “Termination Date” means the earliest to occur of (i) the Maturity Date, (ii) the
date on which the maturity of the Obligations is accelerated (or deemed accelerated) and the Commitments are irrevocably terminated (or deemed terminated) in accordance with Article VII, or (iii) the termination of the Commitments in
accordance with the provisions of Section 2.09(b) hereof. 
 “Trade Letter of
Credit” means any letter of credit that is drawable upon presentation of documents evidencing the sale or shipment of goods purchased by the Borrower or any of its Restricted Subsidiaries that are Loan Parties in the ordinary course of
business that is issued by an Issuing Bank under this Agreement for the account of any Loan Party and all amendments, renewals, extensions or replacements thereof. 

“Transactions” means the execution, delivery and performance by the Borrower of this Agreement, the
borrowing of Loans and other credit extensions, the use of the proceeds thereof, and the issuance of Letters of Credit hereunder, in each case on the Effective Date. 

“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such
Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Base Rate. 
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests. 
 “Unliquidated Obligations” means, at any time,
any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued
by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; (iii) an obligation to provide collateral to secure any of the foregoing types of obligations; or (iv) any indemnification
obligation or expense arising under Section 9.03. 
 “Unreimbursed Amount” has the
meaning assigned to such term in Section 2.06(c)(i). 
 “Unrestricted Subsidiary”
means the Real Property Holding Company and its subsidiaries, if any. 
 “Use Period” means the
period commencing on the date that the ABL Administrative Agent or the Collateral Agent commences the liquidation and sale of the ABL Priority Collateral and ending 150 days thereafter. If any stay or other order that prohibits any of the ABL
Administrative Agent or the Collateral Agent from commencing and continuing any 

  
 37 

 
Enforcement Action or to sell or otherwise dispose of the ABL Priority Collateral has been entered by a court of competent jurisdiction, such 150-day period shall be tolled during the pendency of
any such stay or other order and the Use Period shall be so extended. 
 “Voting Stock” of any
Person as of any date means the Equity Interests of such Person that are at the time entitled to vote in the election of the Board of Directors (or equivalent body) of such Person. 

“Wells Fargo” means Wells Fargo Bank, National Association and its successors. 

“Wells Fargo Fee Letter” means the letter agreement, dated as of August 15, 2012, among the
Borrower, the ABL Administrative Agent and WFCF as amended, modified, supplemented or restated and in effect from time to time. 
 “Wells Fargo Supplemental Term Fee Letter” means the letter agreement, dated as of the First Amendment Effective Date, between the Borrower and the Supplemental Term Agent, as amended,
modified, supplemented or restated and in effect from time to time. 
 “WFCF” means Wells Fargo
Capital Finance, LLC and its successors. 
 “Withdrawal Liability” means liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

SECTION 1.02        Classification of Loans and
Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a
“Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a
“Eurodollar Revolving Borrowing”). 
 SECTION
1.03        Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended, amended and restated, replaced, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed
to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules
to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights. 

  
 38 

 SECTION 1.04        Accounting
Terms; GAAP.    Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the
Borrower notifies the ABL Administrative Agent and the Supplemental Term Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application
thereof on the operation of such provision (or if the ABL Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then the Borrower, the ABL Administrative Agent, the Supplemental Term Agent and the Lenders shall negotiate in good faith to amend such provision to preserve the original intent in light of
such change in GAAP, and such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance
herewith. 
 SECTION 1.05        Letter of Credit
Amounts.    Unless otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to be the Stated Amount of such Letter of Credit in effect at such time; provided,
however, that, except as otherwise provided in Sections 2.06(i) and 2.06(j), with respect to any Letter of Credit that, by its terms of any Issuer Documents related thereto, provides for one or more automatic increases
in the Stated Amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum Stated Amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum Stated Amount is in effect at such
time. 
 SECTION 1.06        Times of
Day.    Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable). 
 ARTICLE II 
 The Credits 

SECTION 2.01        Commitments of the Lenders. 

(a)        Subject to the terms and conditions set forth herein, each Revolving
Lender agrees to make ABL Revolving Loans to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Revolving Lender’s Revolving Exposure exceeding such Revolving
Lender’s Revolving Commitment and (ii) the total Revolving Exposure of all Revolving Lenders exceeding the Maximum Revolving Availability, subject to the ABL Administrative Agent’s authority, in its Permitted Discretion, to make
Protective Advances pursuant to the terms of Section 2.04. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow ABL Revolving Loans. 

(b)        Each FILO Lender agrees, upon the terms and subject to the conditions
herein set forth, to extend credit to the Borrower, in the form of the FILO Term Loan and in an amount not to exceed such FILO Lender’s FILO Commitment, in each case subject to the following limitations: 

  
 39 

 (i)        The FILO
Term Loan shall be made in a single drawing on the Effective Date. Upon funding of the FILO Term Loan on the Effective Date, the FILO Commitments shall be reduced to $0. 

(ii)        Repayments and prepayments of the FILO Term Loan may
not be reborrowed. 
 (iii)        The FILO Term Loan
advance rate shall be the lesser of (A) the product of (x) five percent (5%) multiplied by (y) the appraised Net Orderly Liquidation Value of Eligible Inventory of the Borrower, and (B) $7,500,000. To the extent that
the outstanding balance of the FILO Term Loan should ever exceed the amount described in clause (A) above, an Availability Reserve will be implemented in the amount of the shortfall. 

(c)        Each Supplemental Term Lender agrees, upon the terms and subject to
the conditions herein set forth, to extend credit to the Borrower, in the form of the Supplemental Term Loan and in an amount not to exceed such Supplemental Term Lender’s Supplemental Term Commitment, in each case subject to the following
limitations: 
 (i)        The Supplemental Term Loan
shall be made in a single drawing in the aggregate amount of $17,500,000 on the First Amendment Effective Date. Upon funding of the Supplemental Term Loan on the First Amendment Effective Date, the Supplemental Term Commitments shall be reduced to
$0. 
 (ii)        Repayments and prepayments of the
Supplemental Term Loan may not be reborrowed. 
 SECTION
2.02        Loans and Borrowings. 

(a)        Each ABL Revolving Loan (other than a Swingline Loan) shall be made
as part of a Borrowing consisting of ABL Revolving Loans of the same Class and Type made by the Revolving Lenders ratably in accordance with their respective Revolving Commitments of the applicable Class. Any Protective Advance and any Swingline
Loan shall be made in accordance with the procedures set forth in Section 2.04 and Section 2.05, respectively. 
 (b)        Subject to Section 2.14, each Revolving Borrowing and each portion of the FILO Term Loan and the Supplemental Term Loan shall be comprised
entirely of Base Rate Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be a Base Rate Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 

(c)        Each Borrowing shall be in an aggregate amount of $1,000,000 or an
integral multiple of $100,000 in excess thereof; provided that a Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Revolving Commitments or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(c). Each Swingline Loan shall be in an amount of $250,000 or an 

  
 40 

 
integral multiple of $100,000 in excess thereof. Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more
than a total of 10 Eurodollar Borrowings outstanding. 
 SECTION
2.03        Requests for Revolving Borrowings.    To request a Revolving Borrowing, the Borrower shall notify the ABL Administrative Agent of such request in writing (delivered by
hand or facsimile) in a form reasonably approved by the ABL Administrative Agent and signed by the Borrower (a) in the case of a Eurodollar Borrowing, not later than 1:00 p.m., New York time, three Business Days before the date of the proposed
Borrowing or (b) in the case of a Base Rate Borrowing, not later than 12:00 noon, New York time, on the date of the proposed Borrowing; provided that any such notice of a Base Rate Revolving Borrowing to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.06(c) may be given not later than 12:00 noon, New York time, on the date of the proposed Borrowing. Each such Borrowing Request shall specify the following information in compliance with
Section 2.02: 
 (a)        the aggregate amount of the
requested Borrowing and a breakdown of the separate wires comprising such Borrowing; 

(b)        the date of such Borrowing, which shall be a Business Day;

 (c)        whether such Borrowing is to be a Base Rate Borrowing or
a Eurodollar Borrowing; and 
 (d)        in the case of a Eurodollar
Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period.” 
 If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving Borrowing shall be a Base Rate Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section 2.03, the ABL
Administrative Agent shall advise each Revolving Lender of the details thereof and of the amount of such Revolving Lender’s Loan to be made as part of the requested Borrowing. 

SECTION 2.04        Protective Advances. 

(a)        Subject to the limitations set forth below, the ABL Administrative
Agent is authorized by the Borrower and the Lenders, from time to time in the ABL Administrative Agent’s sole discretion (but shall have absolutely no obligation), to make ABL Revolving Loans to the Borrower, on behalf of all Revolving Lenders,
which the ABL Administrative Agent, in its Permitted Discretion, deems necessary or desirable (i) to preserve or protect the Collateral, or any portion thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of the
Loans and other Obligations, or (iii) to pay any other amount chargeable to or required to be paid by the Borrower pursuant to the terms of this Agreement, including payments of reimbursable expenses (including costs, fees, and expenses as
described in Section 9.03) and other sums payable under the Loan Documents (any of such ABL Revolving Loans are herein referred to as “Protective Advances”); provided that, the aggregate amount of Protective

  
 41 

 
Advances outstanding at any time shall not at any time exceed 5% of Maximum Revolving Availability at such time; provided further that, the aggregate amount of outstanding
Protective Advances plus the aggregate Revolving Exposure shall not exceed the aggregate unused Revolving Commitments and provided further that no Protective Advance may remain outstanding for more than ninety (90) days.
Protective Advances may be made even if the conditions precedent set forth in Section 4.02 have not been satisfied. The Protective Advances shall be secured by the Liens in favor of the ABL Administrative Agent in and to the Collateral
and shall constitute Obligations hereunder. All Protective Advances shall be Base Rate Borrowings. The ABL Administrative Agent’s authorization to make Protective Advances may be revoked at any time by the Required Revolving Lenders. Any such
revocation must be in writing and shall become effective prospectively upon the ABL Administrative Agent’s receipt thereof. At any time that there is sufficient Revolving Availability and the conditions precedent set forth in
Section 4.02 have been satisfied, the ABL Administrative Agent may request the Revolving Lenders to make an ABL Revolving Loan to repay a Protective Advance. At any other time the ABL Administrative Agent may require the Revolving
Lenders to fund their risk participations described in Section 2.04(b). 

(b)        Upon the making of a Protective Advance by the ABL Administrative
Agent (whether before or after the occurrence of a Default), each Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the ABL Administrative Agent without recourse or
warranty, an undivided interest and participation in such Protective Advance in proportion to its Applicable Percentage. From and after the date, if any, on which any Revolving Lender is required to fund its participation in any Protective Advance
purchased hereunder, the ABL Administrative Agent shall promptly distribute to such Revolving Lender, such Revolving Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by the ABL
Administrative Agent in respect of such Protective Advance. 
 SECTION
2.05        Swingline Loans. 

(a)        Subject to the terms and conditions set forth herein, the Swingline
Lender agrees to make Swingline Loans to the Borrower from time to time during the Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline
Loans exceeding $15,000,000 or (ii) the sum of the total Revolving Exposures exceeding the Maximum Revolving Availability; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan; provided further that the Swingline Lender shall not be obligated to make any Swingline Loan at any time when any Revolving Lender is at such time a Defaulting Lender or Deteriorating Lender hereunder,
unless the Swingline Lender has entered into satisfactory arrangements with the Borrower or such Revolving Lender to eliminate the Swingline Lender’s risk with respect to such Revolving Lender. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans. To request a Swingline Loan, the Borrower shall notify the ABL 

  
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Administrative Agent of such request in writing (delivered by hand or facsimile), not later than 1:00 p.m., New York time, on the day of a proposed Swingline Loan. Each such notice shall be
irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan. All Swingline Loans shall be Base Rate Borrowings. The ABL Administrative Agent will promptly advise the Swingline Lender of
any such notice received from the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the Funding Account (or, in the case of repayment of another Loan or fees or expenses as provided by
Section 2.10(b), by remittance to the ABL Administrative Agent to be distributed to the Revolving Lenders) by 2:00 p.m., New York time, on the requested date of such Swingline Loan. 

(b)        Upon the making of a Swingline Loan (whether before or after the
occurrence of a Default and regardless of whether a Settlement (as defined below) has been requested with respect to such Swingline Loan, each Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and
irrevocably purchased from the Swingline Lender, without recourse or warranty, an undivided interest and participation in such Swingline Loan in proportion to its Applicable Percentage of the Revolving Commitment. The Swingline Lender may, at any
time, require the Revolving Lenders to fund their participations. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this clause is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or the subsequent termination of the Revolving Commitments, and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever. Each Revolving Lender shall comply with its obligation under this clause by wire transfer of immediately available funds, in the same manner as provided in Section 2.07 with respect to ABL Revolving
Loans made by such Revolving Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the ABL Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Revolving Lenders. The ABL Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this clause, and thereafter payments in respect of such Swingline Loan shall be made
to the ABL Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the
proceeds of a sale of participations therein shall be promptly remitted to the ABL Administrative Agent; any such amounts received by the ABL Administrative Agent shall be promptly remitted by the ABL Administrative Agent to the Revolving Lenders
that shall have made their payments pursuant to this clause and to the Swingline Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or to the ABL Administrative Agent, as
applicable, if and to the extent such payment is required to be refunded to the Borrower for any reason. The purchase of participations in a Swingline Loan pursuant to this clause shall not relieve the Borrower of any default in the payment thereof.

 (c)        The ABL Administrative Agent, on behalf of the Swingline
Lender, shall request settlement (a “Settlement”) with the Revolving Lenders on at least a weekly basis or on any date that the ABL Administrative Agent elects, by notifying the Revolving Lenders of such requested Settlement by
facsimile or e-mail no later than 12:00 noon New York time on the date of such requested Settlement (the “Settlement Date”). Each Revolving Lender (other than the Swingline Lender, in the case of the Swingline Loans) shall transfer
the amount of such Revolving Lender’s Applicable Percentage of the outstanding principal amount of the applicable ABL Revolving Loan with respect to which Settlement is requested to the ABL Administrative Agent, to such account of the ABL
Administrative Agent as the ABL Administrative Agent may 

  
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designate not later than 2:00 p.m., New York time, on such Settlement Date. Settlements may occur during the existence of a Default and whether or not the applicable conditions precedent set
forth in Section 4.02 have then been satisfied. Such amounts transferred to the ABL Administrative Agent shall be applied against the amounts of the Swingline Lender’s Swingline Loans and together with the Swingline Lender’s
Applicable Percentage of such Swingline Loan, shall constitute ABL Revolving Loans of such Revolving Lenders, respectively. If any such amount is not transferred to the ABL Administrative Agent by any Revolving Lender on such Settlement Date, the
Swingline Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon as specified in Section 2.07. 

SECTION 2.06        Letters of Credit. 

(a)        The Letter of Credit Commitment. 

(i)        Subject to the terms and conditions set forth herein,
(A) each Issuing Bank agrees, in reliance upon the agreements of the Revolving Lenders set forth in this Section 2.06, from time to time on any Business Day during the period from the Effective Date until the Letter of Credit
Expiration Date, to issue Letters of Credit for the account of the Borrower, and to amend Letters of Credit previously issued by it, in accordance with Section 2.06(b) below; and (B) the Revolving Lenders severally agree to
participate in Letters of Credit issued for the account of the Borrower and any drawings thereunder; provided that, after giving effect to any LC Credit Extension with respect to any Letter of Credit, (x) the total Revolving
Exposure of all Revolving Lenders shall not exceed the Maximum Revolving Availability, (y) the Revolving Exposure of any Revolving Lender shall not exceed such Revolving Lender’s Revolving Commitment, and (z) the total LC Exposure
shall not exceed $25,000,000. Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrower that the LC Credit Extension so requested complies with the conditions set forth in
the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed. Each Issuing Bank (other than Wells Fargo or any of its Affiliates) shall notify the ABL Administrative Agent in
writing on each Business Day of all Letters of Credit issued on the prior Business Day by such Issuing Bank; provided that (A) until the ABL Administrative Agent advises any such Issuing Bank that the provisions of
Section 4.02 are not satisfied, or (B) the aggregate amount of the Letters of Credit issued in any such week exceeds such amount as shall be agreed by the ABL Administrative Agent and such Issuing Bank, such Issuing Bank shall be
required to so notify the ABL Administrative Agent in writing only once each week of the Letters of Credit issued by such Issuing Bank during the immediately preceding week as well as the daily amounts outstanding for the prior week, such notice to
be furnished on such day of the week as the ABL Administrative Agent and such Issuing Bank may agree. On the Effective Date, the parties hereto agree that the Existing Letters of Credit shall be deemed to be Letters of Credit pursuant to the terms
and conditions, and entitled to the benefits, of this Agreement and the other Loan Documents, without any further action by the Borrower or any other Person. 

  
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 (ii)        No
Letter of Credit shall be issued if: 

(A)        subject to Section 2.06(b)(ii), the
expiry date of any such requested Standby Letter of Credit would occur more than twelve months after the date of issuance, unless the Required Revolving Lenders have approved such expiry date; or 

(B)        subject to Section 2.06(b)(ii), the
expiry date of any such requested Trade Letter of Credit would occur more than 120 days after the date of issuance, unless the Required Revolving Lenders have approved such expiry date; or 

(C)        the expiry date of any such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless either such Letter of Credit is Cash Collateralized on or prior to the Letter of Credit Expiration Date or all the Revolving Lenders have approved such expiry date. 

(iii)        No Letter of Credit shall be issued without the
prior consent of the applicable Issuing Bank if: 

(A)        any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing such Letter of Credit, or any law applicable to such Issuing Bank or any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over such Issuing Bank shall prohibit, or request that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Bank
with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon such Issuing Bank any unreimbursed
loss, cost or expense which was not applicable on the Effective Date and which such Issuing Bank in good faith deems material to it; or 
 (B)        the issuance of such Letter of Credit would violate one or more policies of such Issuing Bank applicable to letters of credit generally; or 

(C)        except as otherwise agreed by such Issuing Bank,
such Letter of Credit is in an initial Stated Amount less than $25,000, in the case of a Trade Letter of Credit, or $100,000, in the case of a Standby Letter of Credit; or 

(D)        such Letter of Credit is to be denominated in a
currency other than dollars; provided that, if such Issuing Bank, in its discretion, approves the issuance of a Letter of Credit denominated in a currency other than dollars, all reimbursements by the Borrower of the honoring of any
drawing under such Letter of Credit shall be paid in the currency in which such Letter of Credit was denominated, unless payment in dollars is approved by the ABL Administrative Agent and such Issuing Bank in their reasonable discretion. 

  
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 (iv)        The
Borrower shall not permit any Letter of Credit to be amended if (A) the applicable Issuing Bank would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof or (B) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of Credit. 

(v)        Each Issuing Bank shall act on behalf of the
Revolving Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and each Issuing Bank shall have all of the benefits and immunities (A) provided to the ABL Administrative Agent in Article VIII
with respect to any acts taken or omissions suffered by such Issuing Bank in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “ABL
Administrative Agent” as used in Article VIII included such Issuing Bank with respect to such acts or omissions, and (B) as additionally provided herein with respect to each Issuing Bank. 

(b)        Procedures for Issuance and Amendment of Letters of Credit;
Auto-Extension Letters of Credit. 

(i)        Each Letter of Credit shall be issued or amended, as
the case may be, upon the request of the Borrower delivered to an Issuing Bank in the form of a Letter of Credit Application, appropriately completed and signed by a Financial Officer of the Borrower. Such Letter of Credit Application must be
received by such Issuing Bank not later than 11:00 a.m. at least two (2) Business Days (or such other date and time as such Issuing Bank may agree in a particular instance in its sole discretion) prior to the proposed issuance date or date of
amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to such Issuing Bank: (A) the proposed issuance
date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such
beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the currency thereof, which shall be dollars unless otherwise approved by such
Issuing Bank pursuant to Section 2.06(a)(iii); and (H) such other matters as such Issuing Bank may reasonably require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application
shall specify in form and detail reasonably satisfactory to such Issuing Bank: (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed
amendment; and (D) such other matters as such Issuing Bank may reasonably require. Additionally, the Borrower shall furnish to the applicable Issuing Bank and the ABL Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer Documents, as such Issuing Bank or the ABL Administrative Agent may reasonably require. 

(ii)        Promptly after receipt of any Letter of Credit
Application, the applicable Issuing Bank will provide the ABL Administrative Agent with a copy thereof. Unless an Issuing Bank has received written notice from any Revolving Lender, the ABL 

  
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Administrative Agent or any Loan Party, at least one (1) Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, such Issuing Bank shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with such Issuing Bank’s usual and customary business practices. Immediately upon the issuance or amendment of each Letter of Credit, each Revolving Lender shall be deemed to
(without any further action), and hereby irrevocably and unconditionally agrees to, purchase from such Issuing Bank, without recourse or warranty, a risk participation in such Letter of Credit in an amount equal to the product of such Revolving
Lender’s Applicable Percentage times the amount of such Letter of Credit. Upon any change in the Commitments under this Agreement, it is hereby agreed that with respect to the total LC Exposure, there shall be an automatic adjustment to
the participations hereby created to reflect the new Applicable Percentages of the assigning and assignee Revolving Lenders. 
 (iii)        If the Borrower so requests in any applicable Letter of Credit Application, an Issuing Bank may, in its sole and absolute discretion, issue a Standby
Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit such Issuing Bank to prevent any such extension
at least once in each twelve-month period (commencing with the date of issuance of such Standby Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such
twelve-month period to be agreed upon at the time such Standby Letter of Credit is issued. Unless otherwise directed by such Issuing Bank, the Borrower shall not be required to make a specific request to such Issuing Bank for any such extension.
Once an Auto-Extension Letter of Credit has been issued, the Revolving Lenders shall be deemed to have authorized (but may not require) such Issuing Bank to permit the extension of such Standby Letter of Credit at any time to an expiry date not
later than the Letter of Credit Expiration Date; provided, however, that such Issuing Bank shall not permit any such extension if (A) such Issuing Bank has determined that it would not be permitted, or would have no obligation, at
such time to issue such Standby Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.06(a) or otherwise), or (B) such Issuing Bank has
received notice (which shall be in writing) on or before the day that is five (5) Business Days before the Non-Extension Notice Date from the ABL Administrative Agent, any Revolving Lender or the Borrower that one or more of the applicable
conditions specified in Section 4.02 is not then satisfied, and in each such case setting forth in reasonable detail the circumstances surrounding the failure to satisfy one or more of the applicable conditions specified in
Section 4.02 and directing such Issuing Bank not to permit such extension. 

(iv)        Promptly after its delivery of any Letter of Credit
or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, each Issuing Bank will also deliver to the Borrower and the ABL Administrative Agent a true and complete copy of such Letter of Credit or
amendment. 

  
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 (c)        Drawings and
Reimbursements; Funding of Participations. 

(i)        Upon receipt from the beneficiary of any Letter of
Credit of any notice of a drawing under such Letter of Credit, the applicable Issuing Bank shall notify the Borrower and the ABL Administrative Agent thereof; provided, however, that any failure to give or delay in giving such notice
shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Revolving Lenders with respect to any such payment. Not later than (A) 4:00 p.m. on the date the applicable Issuing Bank notifies the Borrower of any
payment by any Issuing Bank under a Letter of Credit (each such date, an “Honor Notice Date”), if such Issuing Bank notifies the Borrower of such payment not later than 1:30 p.m. on the Honor Notice Date, or (B) 11:00 a.m. on
the first Business Day immediately following the Honor Notice Date, if such Issuing Bank notifies the Borrower of such payment after 1:30 p.m. on the Honor Notice Date, the Borrower shall reimburse such Issuing Bank through the ABL Administrative
Agent in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse such Issuing Bank by the time required pursuant to the immediately preceding sentence (each such date, a “Reimbursement Date”), the
Borrower shall be deemed to have requested a Revolving Borrowing of Base Rate Loans to be disbursed on the Reimbursement Date in an amount equal to the amount of the unreimbursed drawing (the “Unreimbursed Amount”), without regard
to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Revolving Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Borrowing Request), and the ABL Administrative Agent shall promptly notify each Revolving Lender of the Reimbursement Date, the Unreimbursed Amount, and the amount of such Revolving
Lender’s Applicable Percentage thereof. 

(ii)        Each Revolving Lender shall, upon any notice
pursuant to Section 2.06(c)(i), make funds available to the ABL Administrative Agent for the account of the applicable Issuing Bank by wire transfer of immediately available funds to the account of the ABL Administrative Agent most
recently designated by it for such purpose in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the ABL Administrative Agent, whereupon, subject to the
provisions of Section 2.06(c)(iii), each Revolving Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The ABL Administrative Agent shall remit the funds so received to the
applicable Issuing Bank. 
 (iii)        In the event
that an Issuing Bank honors any drawing under a Letter of Credit, the amount of such drawing shall bear interest at the rate set forth in Section 2.13(a) from the date such drawing was honored through and including the Reimbursement Date
pursuant to Section 2.06(c)(i). In the event that any drawing under a Letter of Credit is not reimbursed by the Reimbursement Date and the Unreimbursed Amount is not fully refinanced by a Revolving Borrowing of Base Rate Loans because
the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the applicable Issuing Bank an LC Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which 

  
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LC Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate set forth in Section 2.13(e). In such event, each Revolving Lender’s
payment to the ABL Administrative Agent for the account of such Issuing Bank pursuant to Section 2.06(c)(ii) shall be deemed payment in respect of its participation in such LC Borrowing and shall constitute an LC Advance from such
Revolving Lender in satisfaction of its participation obligation under this Section 2.06. 
 (iv)        Until each Revolving Lender funds its ABL Revolving Loan or LC Advance pursuant to this Section 2.06(c) to reimburse any Issuing Bank for
any amount drawn under any Letter of Credit, interest in respect of such Revolving Lender’s Applicable Percentage of such amount shall be solely for the account of such Issuing Bank. 

(v)        Each Revolving Lender’s obligation to make ABL
Revolving Loans or LC Advances to reimburse an Issuing Bank for amounts drawn under Letters of Credit, as contemplated by this Section 2.06(c), shall be absolute and unconditional and shall not be affected by any circumstance, including
(A) any setoff, counterclaim, recoupment, defense or other right which such Revolving Lender may have against such Issuing Bank, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or
(C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Revolving Lender’s obligation to make ABL Revolving Loans pursuant to this Section 2.06(c)
is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a Borrowing Request). No such making of an LC Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse an Issuing
Bank for the amount of any payment made by such Issuing Bank under any Letter of Credit, together with interest as provided herein. 
 (vi)        If any Revolving Lender fails to make available to the ABL Administrative Agent for the account of the applicable Issuing Bank any amount required to be
paid by such Revolving Lender pursuant to the foregoing provisions of this Section 2.06(c) by the time specified in Section 2.06(c)(ii), such Issuing Bank (acting through the ABL Administrative Agent) shall be entitled to
recover from such Revolving Lender, on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such Issuing Bank at a rate per annum equal to the
greater of the Federal Funds Effective Rate and a rate determined by such Issuing Bank in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by such Issuing Bank
in connection with the foregoing. If such Revolving Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Revolving Lender’s ABL Revolving Loan included in the relevant Revolving Borrowing or LC
Advance in respect of the relevant LC Borrowing, as the case may be. A certificate of such Issuing Bank submitted to any Revolving Lender (through the ABL Administrative Agent) with respect to any amounts owing under this clause (vi) shall be
conclusive absent manifest error. 
 (d)        Repayment of
Participations. 

  
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 (i)        At any
time after an Issuing Bank has made a payment under any Letter of Credit and has received from any Revolving Lender such Revolving Lender’s LC Advance in respect of such payment in accordance with Section 2.06(c), if the ABL
Administrative Agent receives for the account of such Issuing Bank any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto
by the ABL Administrative Agent), the ABL Administrative Agent will distribute to such Revolving Lender its Applicable Percentage thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such
Revolving Lender’s LC Advance was outstanding) in the same funds as those received by the ABL Administrative Agent. 
 (ii)        If any payment received by the ABL Administrative Agent for the account of an Issuing Bank pursuant to Section 2.06(c)(i) is required to be
returned under any of the circumstances described in Section 2.20 (including pursuant to any settlement entered into by such Issuing Bank in its discretion), each Revolving Lender shall pay to the ABL Administrative Agent for the account
of such Issuing Bank its Applicable Percentage thereof on demand of the ABL Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Revolving Lender, at a rate per annum equal to the
Federal Funds Effective Rate from time to time in effect. The obligations of the Revolving Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 

(e)        Obligations Absolute. The obligation of the Borrower to
reimburse each applicable Issuing Bank for each drawing under each Letter of Credit and to repay each LC Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following: 

(i)        any lack of validity or enforceability of such Letter
of Credit, this Agreement, or any other Loan Document; 

(ii)        the existence of any claim, counterclaim, setoff,
defense or other right that the Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), such Issuing Bank
or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 

(iii)        any draft, demand, certificate or other document
presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under such Letter of Credit; 

(iv)        any payment by such Issuing Bank under such Letter
of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by such Issuing Bank under such Letter of 

  
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Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect; 

(v)        any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or any of its Subsidiaries; or 

(vi)        the fact that any Event of Default shall have
occurred and be continuing. 
 The Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s instructions or other irregularity, the Borrower will promptly notify the ABL Administrative Agent and the applicable Issuing Bank.
The Borrower shall be conclusively deemed to have waived any such claim against such Issuing Bank and its correspondents unless such notice is given within ten (10) days after the issuance or amendment, as applicable, of any Letter of Credit.

 (f)        Role of Issuing Bank.    Each
Revolving Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, no Issuing Bank shall have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the Issuing Banks, the ABL Administrative Agent or any of their
respective Related Parties nor any correspondent, participant or assignee of any Issuing Bank shall be liable to any Revolving Lender for: (i) any action taken or omitted in connection herewith at the request or with the approval of the
Revolving Lenders or the Required Revolving Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; (iii) any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit or any error in interpretation of technical terms; or (iv) the due execution, effectiveness, validity or enforceability of any document or instrument
related to any Letter of Credit or Issuer Document. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the Issuing Banks, the ABL Administrative
Agent or any of their respective Related Parties nor any correspondent, participant or assignee of any Issuing Bank shall be liable or responsible for any of the matters described in clauses (i) through (vi) of Section 2.06(e);
provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against any such Issuing Bank, and any such Issuing Bank may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which were caused by such Issuing Bank’s willful misconduct or gross negligence or 

  
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such Issuing Bank’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms
and conditions of a Letter of Credit, as determined in each case by a final and non-appealable judgment of a court of competent jurisdiction. In furtherance and not in limitation of the foregoing, any Issuing Bank may accept documents that appear on
their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary (or such Issuing Bank may refuse to accept and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit), and such Issuing Bank shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
 (g)        Cash Collateral.    Upon the request of the ABL Administrative Agent, (i) if any Issuing Bank has honored any full or
partial drawing request under any Letter of Credit and such drawing has resulted in an LC Borrowing that remains outstanding, or (ii) if, as of the Letter of Credit Expiration Date, any LC Obligation for any reason remains outstanding, the
Borrower shall, in each case, immediately Cash Collateralize the then outstanding amount of all LC Exposure. Sections 2.11, 2.18(b) and 9.05 set forth certain additional requirements to deliver Cash Collateral hereunder. The
Borrower hereby grants to the Collateral Agent a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash Collateral shall be maintained in a blocked deposit account at Wells Fargo (the
“LC Collateral Account”). If, at any time, the ABL Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the ABL Administrative Agent or that the total
amount of such funds is less than the aggregate outstanding amount of all LC Exposure, the Borrower will, forthwith upon demand by the ABL Administrative Agent, pay to the ABL Administrative Agent, as additional funds to be deposited as Cash
Collateral, an amount equal to the excess of (x) such aggregate outstanding amount over (y) the total amount of funds, if any, then held as Cash Collateral that the ABL Administrative Agent determines to be free and clear of any such right
and claim. Upon the drawing of any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable law, to reimburse the applicable Issuing Bank; to the extent not so applied,
such funds shall thereafter be applied to satisfy other Obligations or, if no Cash Dominion Period has occurred and is continuing, such funds shall be paid to the Borrower. 

(h)        Applicability of ISP and UCP.    Unless
otherwise expressly agreed by an Issuing Bank and the Borrower when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each Standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary
Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each Trade Letter of Credit. 
 (i)        Letter of Credit Fees.    The Borrower shall pay to the ABL Administrative Agent for the account of each Revolving Lender in
accordance with its Applicable Percentage, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Margin times the daily Stated Amount under each such Letter of Credit. For purposes of
computing the daily Stated Amount available to be drawn under any Letter of Credit, the Stated Amount of such Letter of Credit shall be determined in accordance with Section 1.05; provided that, for purposes only of calculating
the Letter of Credit Fee owing hereunder, the daily Stated 

  
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Amount available to be drawn under any Letter of Credit that provides for one or more automatic increases in the Stated Amount thereof shall be deemed to be the maximum Stated Amount then in
effect under such Letter of Credit (at the time of each such calculation of the Letter of Credit Fee), rather than the maximum Stated Amount for which such Letter of Credit may be honored. Letter of Credit Fees shall be (i) due and payable in
arrears on the last day of each of March, June, September and December commencing with the first such date to occur after the issuance of such Letter of Credit) and on the Letter of Credit Expiration Date, and (ii) computed on a quarterly basis
in arrears; provided that, upon the occurrence and during the continuance of an Event of Default, Letter of Credit Fees shall be (i) due and payable in arrears on the last day of each month (commencing with the first such date to occur
after the issuance of such Letter of Credit) and on the Letter of Credit Expiration Date, and (ii) computed on a monthly basis in arrears. If there is any change in the Applicable Margin, during any month or quarter, as applicable, the daily
amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Margin, separately for each period during such month or quarter, as applicable, that such Applicable Margin, was in effect. Notwithstanding
anything to the contrary contained herein, while any Event of Default exists, all Letter of Credit Fees shall accrue at the rate provided in Section 2.13(e) hereof. 

(j)        Fronting Fee and Documentary and Processing Charges Payable to
Issuing Banks.    The Borrower shall pay to the ABL Administrative Agent, for the account of each Issuing Bank, a fronting fee (the “Fronting Fee”) with respect to each Letter of Credit at a rate equal to
0.125% per annum, computed on the daily Stated Amount available to be drawn under such Letter of Credit. For purposes of computing the daily Stated Amount available to be drawn under any Letter of Credit, the Stated Amount of such Letter of
Credit shall be determined in accordance with Section 1.05; provided that, for purposes only of calculating the Fronting Fee owing hereunder, the daily Stated Amount available to be drawn under any Letter of Credit that provides
for one or more automatic increases in the Stated Amount thereof shall be deemed to be the maximum Stated Amount then in effect under such Letter of Credit (at the time of each such calculation of the Fronting Fee), rather than the maximum Stated
Amount for which such Letter of Credit may be honored. Fronting Fees shall be due and payable on a quarterly basis in arrears on the last day of each of March, June, September and December (commencing with the first such date to occur after the
issuance of such Standby Letter of Credit) and on the Letter of Credit Expiration Date; provided that, upon the occurrence and during the continuance of an Event of Default, Fronting Fees shall be due and payable on a monthly basis in
arrears on the last day of each month (commencing with the first such date to occur after the issuance of such Standby Letter of Credit) and on the Letter of Credit Expiration Date. In addition, the Borrower shall pay to the ABL Administrative
Agent, for the account of each Issuing Bank, the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of such Issuing Bank relating to letters of credit as from time to time in effect. Such
customary fees and standard costs and charges are due and payable on demand and are nonrefundable. 

(k)        Conflict with Issuer Documents.    In the
event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control. 
 (l)        Replacement of Issuing Banks.    Any Issuing Bank may be replaced at any time by written agreement among the Borrower (the
Borrower’s consent not to be unreasonably withheld), the ABL Administrative Agent, the replaced Issuing Bank and the successor Issuing 

  
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Bank. The ABL Administrative Agent shall notify the Revolving Lenders of any such replacement of any Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.06(j). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of
the replaced Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank,
or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of
an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 

SECTION 2.07        Funding of Borrowings. 

(a)        Each Revolving Lender shall make each ABL Revolving Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 3:00 p.m., New York time, to the account of the ABL Administrative Agent most recently designated by it for such purpose by notice to the Revolving
Lenders in an amount equal to such Revolving Lender’s Applicable Percentage; provided that Swingline Loans shall be made as provided in Section 2.05. The ABL Administrative Agent will make such ABL Revolving Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to the Funding Account; provided that Base Rate ABL Revolving Loans made to finance the reimbursement of (i) an LC Borrowing as provided in
Section 2.06(c) shall be remitted by the ABL Administrative Agent to the applicable Issuing Bank and (ii) a Protective Advance shall be retained by the ABL Administrative Agent. 

(b)        Unless the ABL Administrative Agent shall have received notice from a
Revolving Lender prior to the proposed date of any Borrowing that such Revolving Lender will not make available to the ABL Administrative Agent such Revolving Lender’s share of such Borrowing, the ABL Administrative Agent may assume that such
Revolving Lender has made such share available on such date in accordance with clause (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Revolving Lender has
not in fact made its share of the applicable Borrowing available to the ABL Administrative Agent, then the applicable Revolving Lender agrees to pay to the ABL Administrative Agent forthwith on demand such corresponding amount with interest thereon,
for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the ABL Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the ABL
Administrative Agent in accordance with banking industry rules on interbank compensation. In the event such Revolving Lender does not pay such amount to the ABL Administrative Agent promptly, the Borrower shall pay such amount to the ABL
Administrative Agent with interest thereon for each day from and including the date such amount is made available to the Borrower to but excluding the date of such repayment to the ABL Administrative Agent at the interest rate applicable to Base
Rate Loans. If such Revolving Lender pays such amount to the ABL Administrative Agent, then such amount shall constitute such Revolving Lender’s ABL Revolving Loan included in such Borrowing. 

  
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 SECTION 2.08        Interest
Elections. 
 (a)        Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. The FILO Term Loan Borrowing initially shall be a Base Rate
Borrowing. Thereafter, the Borrower may elect to convert such Borrowings to a different Type or to continue such Borrowings as the same Type and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this
Section. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to (i) Protective Advances or Swingline Borrowings, which may not be converted or continued and which are governed by Section 2.04
and Section 2.05, respectively, or (ii) the Supplemental Term Loan Borrowing, which shall bear interest at the rate specified in Section 2.13(d)(ii), subject to the provisions of Section 2.13(e). 

(b)        To make an election pursuant to this Section, the Borrower shall
notify the ABL Administrative Agent of such election in writing by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to
be made on the effective date of such election. Each such Interest Election Request shall be irrevocable. 

(c)        Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02: 

(i)        the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and
(iv) below shall be specified for each resulting Borrowing); 

(ii)        the effective date of the election made pursuant to
such Interest Election Request, which shall be a Business Day; 

(iii)        whether the resulting Borrowing is to be a Base
Rate Borrowing or a Eurodollar Borrowing; and 

(iv)        if the resulting Borrowing is a Eurodollar
Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be
deemed to have selected an Interest Period of one month’s duration. 

  
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 (d)        Promptly following
receipt of an Interest Election Request, the ABL Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 

(e)        If the Borrower fails to deliver a timely Interest Election Request
with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to a Base Rate
Borrowing. Notwithstanding any contrary provision hereof, (i) if a Default has occurred and is continuing and the ABL Administrative Agent, at the request of the Required Revolving Lenders, so notifies the Borrower, then, so long as a Default
is continuing, (x) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar Revolving Borrowing and (y) unless repaid, each Eurodollar Revolving Borrowing shall be converted to a Base Rate Revolving Borrowing at
the end of the Interest Period applicable thereto, and (ii) if a Default has occurred and is continuing and the ABL Administrative Agent, at the request of the Required FILO Lenders, so notifies the Borrower, then, so long as a Default is
continuing, (x) no outstanding FILO Borrowing may be converted to or continued as a Eurodollar Borrowing and (y) unless repaid, each Eurodollar FILO Borrowing shall be converted to a Base Rate FILO Borrowing at the end of the Interest
Period applicable thereto. 
 SECTION 2.09        Termination and
Reduction of Revolving Commitments. 
 (a)        Unless previously
terminated, all Revolving Commitments of the Revolving Lenders shall terminate on the Revolving Credit Termination Date, and the Borrower shall pay, in full and in cash, all outstanding Loans and all other outstanding Obligations then owing to the
Lenders. 
 (b)        The Borrower may, at any time, terminate in
whole the Revolving Commitments upon (i) the payment in full of all outstanding Loans, together with accrued and unpaid interest thereon and any amounts payable pursuant to Section 2.16 in the case of a prepayment of any Eurodollar
Loans other than on the last day of the relevant Interest Period, (ii) the cancellation and return of all outstanding Letters of Credit (or, alternatively, the Cash Collateralization (or, at the discretion of the ABL Administrative Agent, the
furnishing to the ABL Administrative Agent of a back up standby letter of credit satisfactory to the ABL Administrative Agent) of each such Letter of Credit as of such date), (iii) the payment in full of the accrued and unpaid fees and
(iv) the payment in full of all reimbursable expenses and other Obligations together with accrued and unpaid interest thereon. 
 (c)        The Borrower may from time to time reduce the Revolving Commitments; provided that (i) each such reduction of the Revolving Commitments shall
be in an aggregate amount of $1,000,000 or an integral multiple of $100,000 in excess thereof and (ii) the Borrower shall not reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the ABL Revolving Loans in
accordance with Section 2.11, the total Revolving Exposure would exceed the Maximum Revolving Availability. 
 (d)        The Borrower shall notify the ABL Administrative Agent of any election to terminate or reduce the Revolving Commitments under clauses (c) or
(d) of this Section 2.09  

  
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at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any
notice, the ABL Administrative Agent shall advise the Revolving Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section 2.09 shall be irrevocable; provided that a notice of termination of
the Revolving Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the ABL Administrative Agent on
or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Revolving Commitments shall be permanent. Each reduction of the Revolving Commitments shall be applied ratably to the Revolving
Commitments of each Revolving Lender. 
 SECTION
2.10        Repayment of Loans; Evidence of Debt. 

(a)        The Borrower hereby unconditionally promises to pay (i) to the
ABL Administrative Agent, for the account of each Revolving Lender, the then unpaid principal amount of each ABL Revolving Loan and all other outstanding Obligations then owing to the Revolving Lenders on the Revolving Credit Termination Date,
(ii) to the ABL Administrative Agent the then unpaid amount of each Protective Advance on the earlier of (A) the applicable Revolving Credit Termination Date or (B) demand by the ABL Administrative Agent, (iii) to the ABL
Administrative Agent, for the account of each FILO Lender, the then unpaid principal amount of the FILO Term Loan and all other outstanding Obligations then owing to the FILO Lenders on the Termination Date, (iv) to the ABL Administrative
Agent, for the account of each Supplemental Term Lender, the then unpaid principal amount of the Supplemental Term Loan and all other outstanding Obligations then owing to the Supplemental Term Lenders on the Termination Date, and (v) to the
Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Revolving Credit Termination Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar month and is at least
two Business Days after such Swingline Loan is made; provided that on each date that an ABL Revolving Loan is made, the Borrower shall repay all Swingline Loans then outstanding. 

(b)        During any Cash Dominion Period, on each Business Day, at or before
11:00 a.m., New York time, the ABL Administrative Agent shall apply all immediately available funds credited to the Collection Account in accordance with Section 2.18(b). 

(c)        Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

(d)        The ABL Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) the amount of any sum received by the ABL Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 

  
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 (e)        The entries made in the
accounts maintained pursuant to clause (c) or (d) of this Section 2.10 shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the
ABL Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 

(f)        Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in substantially
the form attached hereto as Exhibit E-1, E-2, E-3 or E-4, as applicable in an aggregate principal amount equal to such Lender’s Revolving Commitment, FILO Commitment, Supplemental Term Commitment or, in the case of the Note evidencing the
Swingline Loans, $15,000,000. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such
form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
 (g)        The Borrower hereby unconditionally promises to pay to the ABL Administrative Agent, for the account of each FILO Lender on a pro rata basis, $187,500 on
the first day of each calendar quarter commencing on January 1, 2013 which shall be applied as reduction of the outstanding principal balance of the FILO Term Loan. 

(h)        The Borrower hereby unconditionally promises to pay to the ABL
Administrative Agent, for the account of each Supplemental Term Lender on a pro rata basis, $291,812.50 on the first day of each calendar quarter commencing on April 1, 2013 which shall be applied as reduction of the outstanding principal
balance of the Supplemental Term Loan. 
 SECTION
2.11        Prepayment of Loans. 

(a)        The Borrower shall have the right at any time and from time to time
to prepay any Borrowing in whole or in part, subject to prior notice in accordance with clause (d) of this Section 2.11, subject to the Borrower’s reimbursement of breakage and redeployment costs in the case of prepayment of
LIBOR borrowings; provided that (i) the Borrower shall not voluntarily prepay any portion of the Supplemental Term Loan except to the extent in accordance with clause (e) of this Section 2.11, and (ii) no portion of
the FILO Term Loan may be voluntarily prepaid unless all other Obligations (other than in respect of the Supplemental Term Loan) are paid contemporaneously therewith. The Commitments may be irrevocably reduced or terminated by the Borrower at any
time and from time to time without penalty or premium. 
 (b)        In
the event and on such occasion that the aggregate Revolving Exposure exceeds the Maximum Revolving Availability, the Borrower shall immediately repay the ABL Revolving Loans, LC Exposure and/or Swingline Loans in an aggregate amount equal to such
excess (or provide Cash Collateral in accordance with Section 2.06(g)). 

  
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 (c)        In the event and on each
occasion that any Net Proceeds are received by or on behalf of Holdings or any Loan Party with respect to any Prepayment Event, the Borrower shall, promptly after such Net Proceeds are received by Holdings or any Loan Party, prepay the Obligations
in accordance with the terms of Section 2.18(b) in an aggregate amount equal to: 

(x)        if at the time of receipt of such Net Proceeds, a
Cash Dominion Period shall have occurred and be continuing, 100% of such Net Proceeds; 

(y)        except as provided in clause (z) below, if at
the time of receipt of such Net Proceeds, no Cash Dominion Period is occurring, (i) in the case of a prepayment event described in clause (a) of the definition of the term “Prepayment Event”, 50% of such Net Proceeds if the
relevant property or asset would not be included in any determination of Eligible Credit Card Account Receivables or Eligible Inventory and 100% of such Net Proceeds if the relevant property or asset would be included in the determination of
Eligible Credit Card Account Receivables or Eligible Inventory, and (ii) in the case of a prepayment event described in clause (b) of the definition of the term “Prepayment Event”, 100% of such Net Proceeds, provided that, in the
case of (y) above, if the Borrower shall deliver to the ABL Administrative Agent a certificate of a Financial Officer to the effect that the Loan Parties intend to apply the Net Proceeds from such event (or a portion thereof specified in such
certificate), within 270 days after receipt of such Net Proceeds, to acquire (or replace) equipment or other tangible assets (excluding inventory) to be used in the business of the Loan Parties, and certifying that no Default has occurred and is
continuing, then no prepayment shall be required pursuant to this clause in respect of the Net Proceeds specified in such certificate; provided further that to the extent that any such Net Proceeds therefrom have not been so reinvested by the end of
such 270-day period, a prepayment shall be required at such time in an amount equal to such Net Proceeds that have not been so reinvested; and provided, further, that (A) if a Cash Dominion Period shall commence prior to the reinvestment of all
or any portion of such Net Proceeds during such 270-day period, the ABL Administrative Agent may require that an amount equal to such Net Proceeds (or the amount of such Net Proceeds not then reinvested, as the case may be) be promptly applied to
reduce the outstanding principal balance of the Loans (without a permanent reduction of the Revolving Commitment) and (B) for the avoidance of doubt, if a Cash Dominion Period shall commence during such 270-day period but after the reinvestment
of all or a portion of such Net Proceeds, no prepayment shall be required pursuant to this clause in respect of such Net Proceeds (or the amount of such Net Proceeds so reinvested, as the case may be); and 

(z)        regardless of whether a Cash Dominion Period has
occurred and is continuing, 100% of Net Proceeds with respect to any Prepayment Event in connection with Supplemental Term Priority Collateral. 
 (d)        The Borrower shall notify the ABL Administrative Agent (and (i) in the case of prepayment of a Swingline Loan, the Swingline Lender, and
(ii) in the case of prepayment of the Supplemental Term Loan, the Supplemental Term Agent) by hand delivery or 

  
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facsimile of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 1:00 p.m., New York time, three Business Days before the date of
prepayment, or (ii) in the case of prepayment of a Base Rate Revolving Borrowing, not later than 1:00 p.m., New York time, one Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later
than 1:00 p.m., New York time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination of the Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance
with Section 2.09. Promptly following receipt of any such notice relating to a Revolving Borrowing, the ABL Administrative Agent shall advise the Revolving Lenders of the contents thereof. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably to the ABL
Revolving Loans included in the prepaid Borrowing. Promptly following receipt of any such notice relating to the Supplemental Term Loan, the Supplemental Term Agent shall advise the Supplemental Term Lenders of the contents thereof. Each prepayment
of a portion of the Supplemental Term Loan shall be applied ratably to the Supplemental Term Lenders in accordance with their Applicable Percentages. Prepayments shall be accompanied by accrued interest to the extent required by
Section 2.13. 
 (e)        Subject to
Section 2.12(c) and the satisfaction of the Payment Conditions, the Borrower may, upon irrevocable notice from the Borrower to the ABL Administrative Agent and the Supplemental Term Agent, at any time or from time to time, voluntarily
prepay the Supplemental Term Loan in whole or in part; provided that (i) such notice must be received by the ABL Administrative Agent and the Supplemental Term Agent not later than (A) three Business Days prior to any date of
prepayment of Eurodollar Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any such prepayment shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, if less, the entire principal
amount thereof then outstanding; (iii) any such prepayment shall be accompanied by the payment of interest through the applicable date of prepayment; and (iv) any such prepayment shall be accompanied by the payment of any Supplemental Term
Prepayment Fee then due pursuant to Section 2.12(c). The Supplemental Term Agent will promptly notify each Supplemental Term Lender of its receipt of each such notice and of the amount of such Supplemental Term Lender’s Applicable
Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment, together with any interest and Supplemental Term Prepayment Fee owing in respect thereof, and the payment amount specified in such
notice shall be due and payable on the date specified therein. Each such prepayment of principal shall be applied to the Supplemental Term Loan first to the amount due on the Maturity Date and then to payments due pursuant to
Section 2.10(h) hereof in inverse order of maturity, or as may be otherwise agreed to by the Supplemental Term Agent in its discretion. 
 SECTION 2.12        Fees. 
 (a)        The Borrower agrees to pay to the ABL Administrative Agent for the account of each Revolving Lender a commitment fee, which shall accrue at the
Applicable Margin on the average daily amount of the Available Revolving Commitment of such Revolving 

  
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Lender during the period from and including the Effective Date to but excluding the date on which the Revolving Lenders’ Revolving Commitments terminate. Accrued commitment fees shall be
payable in arrears on the last day of March, June, September and December and on the Revolving Credit Termination Date with respect to Revolving Lenders, commencing on the first such date to occur after the Effective Date. All commitment fees shall
be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 

(b)        The Borrower agrees to pay (i) to the ABL Administrative Agent,
for its own account and for the account of the Lenders, as applicable, fees payable in the amounts and at the times separately agreed upon in the Wells Fargo Fee Letter, (ii) to the Syndication Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon in the Bank of America Fee Letter, and (iii) to the Supplemental Term Agent, for its own account and for the account of the Supplemental Term Lenders, as applicable, fees payable in the amounts
and at the times separately agreed upon in the Wells Fargo Supplemental Term Fee Letter. 

(c)        In the event that the Termination Date occurs, for any reason, prior
to the Maturity Date, or in the event that the Borrower prepays any portion of the Supplemental Term Loan, the Borrowers shall pay to the Supplemental Term Agent, for the ratable benefit of the Supplemental Term Lenders, a fee (the
“Supplemental Term Prepayment Fee”) in respect of amounts which are or become payable by reason thereof equal to the following: (i) three percent (3%) of the principal balance of the Supplemental Term Loan then outstanding
or the amount so prepaid, as applicable, if the Termination Date or prepayment shall occur at any time on or before the first anniversary of the First Amendment Effective Date; (ii) two percent (2%) of the principal balance of the
Supplemental Term Loan then outstanding or the amount so prepaid, as applicable, if the Termination Date or prepayment shall occur at any time during the period commencing on February 12, 2014 through and including the second anniversary of the
First Amendment Effective Date; (iii) one percent (1%) of the principal balance of the Supplemental Term Loan then outstanding or the amount so prepaid, as applicable, if the Termination Date or prepayment shall occur during the period
commencing on February 12, 2015 through and including the third anniversary of the First Amendment Effective Date; and (iv) zero percent (0%) thereafter. The Loan Parties agree and acknowledge that the Supplemental Term Lenders will have
suffered damages on account of the early termination of this Agreement or any prepayment of the Supplemental Term Commitments and that, in view of the difficulty in ascertaining the amount of such damages, the Supplemental Term Prepayment Fee
constitutes reasonable compensation and liquidated damages to compensate the Supplemental Term Lenders on account thereof. 
 (d)        All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the ABL Administrative Agent (or, in the case of the
Supplemental Term Prepayment Fee, the Supplemental Term Agent) for distribution to the applicable Lenders and each Issuing Bank, as appropriate. Fees paid shall not be refundable under any circumstances except where paid in error. 

SECTION 2.13        Interest. 

  
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 (a)        The ABL Revolving Loans
comprising each Base Rate Borrowing (including each Swingline Loan) made by, and owing to, each Revolving Lender shall bear interest at the Base Rate plus the Applicable Margin for Base Rate Loans. 

(b)        The ABL Revolving Loans comprising each Eurodollar Borrowing made by,
and owing to, each Revolving Lender shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin for Eurodollar Loans. 

(c)        Each Protective Advance made by, and owing to, a Revolving Lender
shall bear interest at the Base Rate plus the Applicable Margin for Base Rate Loans plus 2%. 

(d)        (i) The FILO Term Loan, or portions thereof, shall bear interest at
the Borrower’s option at either (x) the Base Rate plus 1.75% or (y) the Adjusted LIBO Rate for the Interest Period in effect for the FILO Term Loan or portion thereof plus 2.75%. (ii) The Supplemental Term Loan, or portions
thereof, shall bear interest at 8.75% plus the greater of (1) the Adjusted LIBO Rate for the Interest Period in effect for the Supplemental Term Loan or portion thereof, or (2) 0.75%. 

(e)        Notwithstanding the foregoing, during the occurrence and continuance
of any Event of Default, (i) the ABL Administrative Agent (or, solely with respect to interest and fees owing to the Supplemental Term Lenders, the Supplemental Term Agent) may, at its option, declare that (x) all Loans shall bear interest
at 2% plus the rate otherwise applicable to such Loans as provided in the preceding clauses of this Section 2.13, and/or (y) any fee payable pursuant to Section 2.06(i) shall accrue at 2% plus the rate applicable to such
fee or other obligation as provided hereunder, and (ii) the Required Revolving Lenders, the Required FILO Lenders or the Required Supplemental Term Lenders, as applicable, may direct the ABL Administrative Agent to declare that such interest
and/or fees described in clause (i) above owing to the Revolving Lenders, the FILO Lenders or the Supplemental Term Lenders, as applicable, shall be so increased by 2%. 

(f)        Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan, upon termination of the Revolving Commitments and upon the Termination Date; provided that (i) interest accrued pursuant to clause (d) of this Section 2.13 shall be payable on the
first day of each calendar month (ii) interest accrued pursuant to clause (e) of this Section 2.13 shall be payable on demand, (iii) in the event of any repayment or prepayment of any Loan (other than a prepayment of a
Base Rate ABL Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iv) in the event of any conversion of any
Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

(g)        All interest hereunder shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the ABL Administrative Agent, and such
determination shall be conclusive absent manifest error. All Letter of Credit Fees and Fronting Fees payable pursuant to Sections 2.06(i)  

  
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and 2.06(j) shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 SECTION 2.14        Alternate Rate of
Interest.    If prior to the commencement of any Interest Period for a Eurodollar Borrowing: 
 (a)        the ABL Administrative Agent determines (which determination shall be conclusive absent manifest error) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or 

(b)        the ABL Administrative Agent is advised by the Required Lenders that
the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period; 
 then the ABL Administrative Agent shall give notice thereof to the Borrower and the Lenders by facsimile as
promptly as practicable thereafter and, until the ABL Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion
of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as a Base Rate
Borrowing. 
 SECTION 2.15        Increased Costs. 

(a)        If any Change in Law made after the Effective Date shall: 

(i)        impose, modify or deem applicable any reserve,
special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing Bank; or 

(ii)        impose on any Lender or any Issuing Bank or the
London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein; 
 and the result of any of the foregoing shall be, by an amount that such Lender deems to be material, to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or such Issuing
Bank hereunder (whether of principal, interest or otherwise) (in each case, other than with respect to any Taxes), then the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 

  
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 (b)        If any Lender or any
Issuing Bank determines that any Change in Law made after the Effective Date regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of
such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a
level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s
policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy), by an amount that such Lender deems to be material, then from time to time the Borrower will pay to such Lender or such
Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered. 

(c)        A certificate of a Lender or an Issuing Bank setting forth the amount
or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in clause (a) or (b) of this Section 2.15 shall be delivered to the Borrower and shall be conclusive
absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 

(d)        Failure or delay on the part of any Lender or any Issuing Bank to
demand compensation pursuant to this Section 2.15 shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a
Lender or an Issuing Bank pursuant to this Section 2.15 for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change in
Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof. 
 SECTION 2.16        Break Funding Payments.    In the event of (a) the payment of any principal of any Eurodollar Loan other than on
the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to
borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.09(c) and is revoked in accordance therewith), or
(d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate
each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of
(i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, 

  
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for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof. 
 SECTION 2.17        Taxes. 

(a)        Any and all payments by or on account of any obligation of the
Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then
(i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the ABL Administrative Agent, the Supplemental Term Agent, a Lender
or an Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law. 

(b)        In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law. 

(c)        The Borrower shall indemnify the ABL Administrative Agent, the
Supplemental Term Agent, each Lender and each Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the ABL Administrative Agent, the Supplemental Term Agent, such Lender or
such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this
Section) and, to the extent that the payment of the Indemnified Taxes or Other Taxes was the responsibility of the Borrower and within the Borrower’s control, any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the
Supplemental Term Agent, a Lender or an Issuing Bank, or by the ABL Administrative Agent on its own behalf or on behalf of the Supplemental Term Agent, such Lender or such Issuing Bank, shall be conclusive absent manifest error. 

(d)        As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the ABL Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory to the ABL Administrative Agent. 

  
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 (e)        Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to
the Borrower (with a copy to the ABL Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit
such payments to be made without withholding or at a reduced rate. 

(f)        If any Lender, the ABL Administrative Agent or the Supplemental Term
Agent shall become aware that it is entitled to receive a refund in respect of amounts paid by the Borrower pursuant to this Section 2.17, which refund in the sole good faith judgment of such Lender, the ABL Administrative Agent or the
Supplemental Term Agent is allocable to such payment, it shall promptly notify the Borrower of the availability of such refund and shall, within thirty (30) days after the receipt of a request by the Borrower, apply for such refund. If the ABL
Administrative Agent, the Supplemental Term Agent or a Lender determines, in its sole good faith discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this
Section 2.17 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the ABL Administrative Agent, the Supplemental Term Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the request of the ABL Administrative Agent, the Supplemental Term Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the ABL Administrative Agent, the Supplemental Term Agent or such Lender in the event the ABL Administrative Agent, the Supplemental Term
Agent or such Lender is required to repay such refund to such Governmental Authority. This Section shall not be construed to require the ABL Administrative Agent, the Supplemental Term Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 

SECTION 2.18        Payments Generally; Allocation of Proceeds; Sharing of
Set-offs. 
 (a)        The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 1:00 p.m., New York time, on the
date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the ABL Administrative Agent, be deemed to have been received on the next succeeding Business
Day for purposes of calculating interest thereon. All such payments shall be made to the ABL Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be made directly to either an Issuing Bank or the Swingline
Lender as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The ABL Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly 

  
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following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars. 
 (b)        Any amounts received on account of the Obligations by the ABL Administrative Agent (x) not constituting a specific payment of principal, interest,
fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower so long as no Event of Default has occurred and is continuing (in which event the following clause (y) below shall apply)), or
(y) after an Event of Default has occurred and is continuing, shall be applied by the ABL Administrative Agent in the following order, in each case whether or not such Obligations are allowed or allowable in any bankruptcy or insolvency
proceeding or under any applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally: 

(i)        With respect to any and all amounts, other than the
proceeds from Supplemental Term Priority Collateral, ratably as follows: 
 first, to
pay any fees, indemnities, or expense reimbursements including amounts then due to the ABL Administrative Agent and any Issuing Bank from the Borrower (other than in connection with Bank Products), 

second, to pay any expense reimbursements due to the Revolving Lenders, the FILO Lenders and the
Swingline Lender from the Borrower (other than in connection with Bank Products), 

third, to pay any fees then due to the Lenders (other than the Supplemental Term Lenders),
ratably, 
 fourth, to pay any expense reimbursements due to the Supplemental Term Agent
from the Borrower (other than in connection with Bank Products), with respect to the realization on the ABL Priority Collateral, in an aggregate amount not to exceed, when combined with all amounts paid under clause fifth below, $150,000;

 fifth, to pay any expense reimbursements due to the Supplemental Term Lenders from
the Borrower (other than in connection with Bank Products), with respect to the realization on the ABL Priority Collateral, in an aggregate amount not to exceed, when combined with all amounts paid under clause fourth above, $150,000;

 sixth, to pay interest due in respect of the Protective Advances, 

seventh, to pay the principal of the Protective Advances, 

  
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 eighth, to pay interest then due and payable on the
Loans (other than the Protective Advances, the FILO Term Loan and the Supplemental Term Loan) ratably, 
 ninth, to prepay principal on the Loans (other than the Protective Advances, the FILO Term Loan and the Supplemental Term Loan) and LC Borrowings ratably, 

tenth, to pay an amount to the ABL Administrative Agent to Cash Collateralize the aggregate
undrawn face amount of all outstanding Letters of Credit and the aggregate amount of any unpaid LC Borrowings, 
 eleventh, to payment of any amounts owing with respect to (i) Bank Products of the type described in clause (b) of the definition of such term, and (ii) other Bank Products
(including Swap Agreements) to the extent of any Bank Product Reserve imposed therefor, 

twelfth, to the payment of interest then due on the FILO Term Loan, 

thirteenth, to the payment of the principal balance of the FILO Term Loan, 

fourteenth, to pay any fees or expense reimbursements then due to the Supplemental Term Lenders
from the Borrower, 
 fifteenth, to the payment of interest then due on the Supplemental
Term Loan, 
 sixteenth, to the payment of the principal balance of the Supplemental
Term Loan, and 
 seventeenth, to payment of any remaining Bank Product Obligations, and

 eighteenth, to the payment of any other Secured Obligation due to the ABL
Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender and the Cash Collateralization of any Unliquidated Obligations. 
 Subject to Section 2.06, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Seventh above shall be applied to satisfy drawings under
such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set
forth above. 
 (ii)        With respect to any and all
proceeds from Supplemental Term Priority Collateral: 

  
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 first, to pay any indemnities or expense
reimbursements due to the ABL Administrative Agent from the Borrower (other than in connection with Bank Products), with respect to the realization on the Supplemental Term Priority Collateral, 

second, to pay any indemnities or expense reimbursements due to the Supplemental Term Agent from
the Borrower; 
 third, to pay any expense reimbursements due to the Supplemental Term
Lenders from the Borrower, 
 fourth, to pay any expense reimbursements due to the
Lenders (other than the Supplemental Term Lenders) from the Borrower (other than in connection with Bank Products), with respect to the realization on the Supplemental Term Priority Collateral, 

fifth, to pay any fees then due to the Supplemental Term Agent and the Supplemental Term Lenders,
ratably, 
 sixth, to pay interest due in respect of the Supplemental Term Loan,

 seventh, to pay the principal of the Supplemental Term Loan, 

eighth, to the payment of any other Secured Obligation due to the Supplemental Term Agent or any
Supplemental Term Lender in respect of the Supplemental Term Loan, 
 ninth, to payment
of the remaining Obligations, in accordance with the priorities established pursuant to Section 2.18(b)(i) above; and 
 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Loan Parties or as otherwise required by Requirements of Law. 

Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless a Default is in
existence, none of the ABL Administrative Agent, the Supplemental Term Agent or any Lender shall apply any payment which it receives to any Eurodollar Loan of a Class, except (a) on the expiration date of the Interest Period applicable to any
such Eurodollar Loan or (b) in the event, and only to the extent, that there are no outstanding Base Rate Loans of the same Class and, in any event, the Borrower shall pay the break funding payment required in accordance with
Section 2.16. The ABL Administrative Agent, the Supplemental Term Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured
Obligations. Notwithstanding the foregoing, the proceeds of Term Facility Primary Collateral and ABL Facility Primary Collateral shall be applied as between the Lenders and the Term Lenders, in the manner set forth in the Intercreditor Agreement.

  
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 (c)        If any Lender shall, by
exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of
the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this clause shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with
the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the
Borrower or any Restricted Subsidiary or, except as specifically permitted by this Agreement, an Affiliate thereof (in each case as to which the provisions of this clause shall apply). 

(d)        Unless the ABL Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the ABL Administrative Agent or the Supplemental Term Agent (in each case for the account of the applicable Lenders) or an Issuing Bank hereunder that the Borrower will not make such
payment, the ABL Administrative Agent and the Supplemental Term Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or such Issuing Bank,
as the case may be, on such due date the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or each Issuing Bank, as the case may be, severally agrees to repay to the ABL Administrative Agent and
the Supplemental Term Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to
the ABL Administrative Agent or the Supplemental Term Agent, as the case may be, at the greater of the Federal Funds Effective Rate and a rate determined by the ABL Administrative Agent in accordance with banking industry rules on interbank
compensation. 
 (e)        If any Lender shall fail to make any
payment required to be made by it hereunder, then the ABL Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the ABL Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations hereunder until all such unsatisfied obligations are fully paid. 
 SECTION 2.19        Mitigation Obligations; Replacement of Lenders.    If any Lender requests compensation under
Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then: 

  
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 (a)        such Lender shall use
reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Sections 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender (and the Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment); 

(b)        if any Lender requests compensation under Section 2.15,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender is a Defaulting Lender or a Deteriorating Lender, the
Borrower may, at its sole expense and effort, upon notice to such Lender, the ABL Administrative Agent and the Supplemental Term Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) the Borrower shall have received the prior written consent of the ABL Administrative Agent, each Issuing Bank and, in the case of Supplemental Term Lenders, the Supplemental Term Agent, which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment
and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

SECTION 2.20        Returned Payments; Separate Claims and
Classifications. 
 (a)        Returned
Payments.    If after receipt of any payment which is applied to the payment of all or any part of the Obligations, the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender is for any reason
compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of
trust funds, or for any other reason, then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the ABL
Administrative Agent, the Supplemental Term Agent or such Lender. The provisions of this Section 2.20 shall be and remain effective notwithstanding any contrary action which may have been taken by the ABL Administrative Agent, the
Supplemental Term Agent, any Issuing Bank or any Lender in reliance upon such payment or application of proceeds. The provisions of this Section 2.20 shall survive the termination of this Agreement. 

  
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 (b)        Separate Claims and
Classifications.    Each of the parties hereto acknowledges and agrees that because of, among other things, their differing rights and priorities in the Collateral, the claims of the Revolving Lenders and the FILO Lenders, on
one hand, and the Supplemental Term Lenders, on the other hand, in respect of the Collateral are fundamentally different from each other, and the claims of the Loans (other than the Supplemental Term Loan), on one hand, and the Supplemental Term
Loan, on the other hand, in respect of any Collateral must be separately classified in any bankruptcy or other proceeding under any applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally. To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that, in respect of any Collateral, the Loans (other than the Supplemental Term Loan), and/or the Supplemental Term Loan, on
the other hand, in respect of such Collateral constitute only one secured claim (rather than separate classes of secured claims), then all distributions shall be made as if there were separate classes of secured claims in respect of any Collateral
and, to the extent that any holder of the Loans (other than the Supplemental Term Loan), and/or the Supplemental Term Loan, on the other hand, receives distributions in respect of the Collateral, such distributions shall be held in trust by the
receiving party and distributed giving effect to the foregoing. 
 SECTION
2.21        Effective Date Adjustments. 

(a)        ABL Revolving Loans.    On the Effective
Date, the Borrower shall prepay, or shall be deemed to prepay, any ABL Revolving Loans outstanding immediately prior to the occurrence of the Effective Date (the “Effective Date Loans”), and pay any additional amounts required
pursuant to Section 2.16, to all Lenders under the Existing Credit Agreement in accordance with their “Applicable Percentages” under the Existing Credit Agreement. Simultaneously, the Borrower may draw, or be deemed to draw, in
an amount up to the principal amount of the Effective Date Loans, upon the Revolving Commitments of all Lenders hereunder in accordance with their respective Applicable Percentages hereunder. The ABL Administrative Agent, in consultation with the
Borrower, shall determine the manner in which the foregoing shall be effected, including, without limitation, by non-ratable paydowns to Lenders whose Applicable Percentages decline on the Effective Date and non-ratable advances from Lenders whose
Applicable Percentages rise on the Effective Date. 

(b)        Letters of Credit.    On the Effective
Date, (i) each Revolving Lender hereunder irrevocably agrees to accept and purchase and hereby accepts and purchases from each Issuing Bank and from each Revolving Lender with an interest in an Existing Letter of Credit immediately prior to the
Effective Date pursuant to Section 2.06(d) of the Existing Credit Agreement, on the terms and conditions set forth in Section 2.06 of this Agreement, for such Revolving Lender’s own account and risk, an undivided
interest equal to such Revolving Lender’s Applicable Percentage in such Issuing Bank’s obligations and rights under and in respect of each Existing Letter of Credit and the amount of each draft paid by such Issuing Bank thereunder and
(ii) each Issuing Bank and each Revolving Lender with an interest in an Existing Letter of Credit immediately prior to the Effective Date pursuant to Section 2.06(d) of the Existing Credit Agreement hereby irrevocably agrees to sell
and assign and hereby sells and assigns an undivided interest in such Issuing Bank’s obligations and rights under and in respect of each Existing Letter of Credit, as necessary to achieve ratable interests in the Existing Letters

  
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of Credit for each Revolving Lender in accordance with its Applicable Percentage hereunder, giving effect to the amendment and restatement of the Existing Credit Agreement. 

SECTION 2.22        Increase in Revolving Commitments. 

(a)        Request for Increase.    Provided no
Default or Event of Default then exists or would arise therefrom, upon notice to the ABL Administrative Agent (which shall promptly notify the Revolving Lenders), the Borrower, at its option, may request an increase in the Revolving Commitments by
an amount not exceeding $50,000,000 in the aggregate (each, a “Commitment Increase”); provided that (i) any such request for an increase shall be in a minimum amount of $10,000,000, (ii) the Borrower may make a
maximum of three such requests, and (iii) any such increase shall be on the same terms as other credit extensions hereunder except that the Borrower will pay such fees to the Arrangers and the Revolving Lenders furnishing such increase as the
Borrower, the Arrangers and the Revolving Lenders may then agree. At the time of sending such notice, the Borrower (in consultation with the ABL Administrative Agent) shall specify the time period within which each Revolving Lender is requested to
respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Revolving Lenders). 
 (b)        Revolving Lender Elections to Increase.    Each Revolving Lender shall initially have the right of first refusal to increase
its respective commitment to satisfy the Borrower’s requested increase. Each Revolving Lender shall notify the ABL Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount
equal to, greater than, or less than its Applicable Percentage of such requested increase. Any Revolving Lender not responding within such time period shall be deemed to have declined to increase its Commitment. 

(c)        Notification by ABL Administrative Agent; Additional
Lenders.    If the Revolving Lenders are unwilling to so increase their commitments, the Arrangers will use their reasonable efforts to obtain one or more financial institutions which are not then Revolving Lenders (which
institutions shall be determined in consultation with the Borrower) to become party hereto and to provide a commitment in an amount necessary to satisfy the Borrower’s requested increase in the Revolving Commitments (each, an
“Additional Commitment Lender” and together, the “Additional Commitment Lenders”), but neither the ABL Administrative Agent nor the Revolving Lenders shall have the right to approve or reject the requested increase.
Any facility increase under the provisions of this Section 2.22 must be in accordance with the terms and conditions of the Intercreditor Agreement, or any replacement intercreditor agreement. 

(d)        Effective Date and Allocations.    If the
Revolving Commitments are increased in accordance with this Section, the ABL Administrative Agent, in consultation with the Borrower, shall determine the effective date (the “Increase Effective Date”) and the final allocation of
such increase. The ABL Administrative Agent shall promptly notify the Borrower and the Revolving Lenders of the final allocation of such increase and the Increase Effective Date and on the Increase Effective Date (i) the Aggregate Commitments
under, and for all purposes of, this Agreement shall be increased by the aggregate amount of such Commitment Increases, and (ii) the Commitment Schedule shall be deemed modified, without further action, to reflect the revised Commitments
and Applicable Percentages of the Revolving Lenders. 

  
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 (e)        Conditions to
Effectiveness of Commitment Increase.    As a condition precedent to such Commitment Increase, (i) the Borrower shall deliver to the ABL Administrative Agent a certificate of each Loan Party dated as of the Increase
Effective Date (in sufficient copies for each Revolving Lender) signed by a Responsible Officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such Commitment Increase, and
(B) in the case of the Borrower, certifying that, before and after giving effect to such Commitment Increase, (1) the representations and warranties contained in Article III and the other Loan Documents are true and correct in all
material respects on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for
purposes of this Section 2.22, the representations and warranties contained in subsection (a) of Section 3.04 shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of
Section 5.01, and (2) no Default or Event of Default exists or would arise therefrom, (ii) the Borrower, the ABL Administrative Agent, and any Additional Commitment Lender shall have executed and delivered an agreement pursuant
to which such Additional Commitment Lender shall have agreed to join the Loan Documents as a Revolving Lender thereunder, in such form as the ABL Administrative Agent shall reasonably require; (iii) the Borrower shall have paid such fees and
other compensation to the Additional Commitment Lenders as the Borrower and such Additional Commitment Lenders shall agree; (iv) the Borrower shall have paid such arrangement fees to the ABL Administrative Agent as the Borrower and the ABL
Administrative Agent may agree; (v) if requested by the ABL Administrative Agent, the Borrower shall deliver to the ABL Administrative Agent and the Revolving Lenders an opinion or opinions, in form and substance reasonably satisfactory to the
ABL Administrative Agent, from counsel to the Borrower reasonably satisfactory to the ABL Administrative Agent and dated such date; (vi) the Borrowers and the Additional Commitment Lender shall have delivered such other instruments, documents
and agreements as the ABL Administrative Agent may reasonably have requested; (vii) no Default or Event of Default exists; and (viii) following payment in full of the Borrower’s obligations in respect of the Term Loan Facility, the
Required Supplemental Term Lenders have consented to such Commitment Increase in their discretion. The Borrowers shall prepay any Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to
Section 2.15) to the extent necessary to keep the outstanding Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Commitments under this Section. 

(f)        Conflicting Provisions.    This Section
shall supersede any provisions in Section 2.18 or 9.02 to the contrary. 
 ARTICLE III 

Representations and Warranties 
 Each Loan Party jointly and severally represents and warrants to the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders that: 

SECTION 3.01        Organization; Powers.    Each of
the Loan Parties and each of its Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and

  
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is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required (except where the failure to be so qualified could not reasonably be expected
to have a Material Adverse Effect). 
 SECTION
3.02        Authorization; Enforceability.    Execution, delivery and performance of this Agreement and the other Loan Documents are within each Loan Party’s corporate or
limited liability company powers and have been duly authorized by all necessary corporate or limited liability company and, if required, stockholder action. The Loan Documents to which each Loan Party is a party have been duly executed and delivered
by such Loan Party and constitute a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
 SECTION 3.03        Governmental Approvals; No Conflicts.    Execution, delivery and performance of this Agreement, the other Loan
Documents and the consummation of the Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other Person, except such as have been obtained or made and
are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate any Requirement of Law applicable to any Loan Party or any of its Subsidiaries, (c) do not conflict
with or will not violate or result in a default under any material indenture, material agreement or other material instrument binding upon any Loan Party or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any
payment to be made by any Loan Party or any of its Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of any Loan Party or any of its Subsidiaries, except Liens created pursuant to the Loan Documents.

 SECTION 3.04        Financial Condition; No Material Adverse
Change. 
 (a)        Holdings has heretofore furnished to the
Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended January 28, 2012, reported on by Deloitte & Touche, independent public accountants, and
(ii) as of and for the fiscal quarter and the portion of the fiscal year ended July 28, 2012, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results
of operations and cash flows of Holdings and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in
clause (ii) above. 
 (b)        No event, change or condition has
occurred that has had, or could reasonably be expected to have, a Material Adverse Effect, since January 28, 2012. 
 SECTION 3.05        Properties. 
 (a)        As of the First Amendment Effective Date, Schedule 3.05 sets forth the address of each parcel of real property that is owned or leased by each
Loan Party. Each of the Loan Parties and its Subsidiaries has good and indefeasible title to, or valid and enforceable 

  
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leasehold interests in, all real and personal property necessary for the conduct of its business, free of all Liens other than those permitted by Section 6.02 of this Agreement.

 (b)        Each Loan Party and its Subsidiaries owns, or is licensed
to use, all trademarks, tradenames, copyrights, patents and other intellectual property necessary to its business as currently conducted, a correct and complete list of which, as of the First Amendment Effective Date, is set forth on Schedule
3.05, and the use thereof by the Loan Parties and its Subsidiaries does not infringe in any material respect upon the rights of any other Person, and the Loan Parties’ rights thereto are not subject to any licensing agreement or similar
arrangement affecting any material portion of the Collateral. 
 SECTION
3.06        Litigation and Environmental Matters. 

(a)        There are no actions, investigations, suits or proceedings by or
before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting the Loan Parties or any of their Subsidiaries (i) that, if adversely determined, would reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that could reasonably be expected to have a material adverse effect on the ability of the parties to consummate the
Transactions or the funding of the Loans. 
 (b)        Except for the
Disclosed Matters and, except for matters that both could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect and could not reasonably be expected to have a material adverse effect on the ability of
the parties to consummate the Transactions or the funding of the Loans, (i) no Loan Party nor any of its Subsidiaries has received notice of any claim with respect to any Environmental Liability or knows of any basis for any Environmental
Liability and (ii) no Loan Party nor any of its Subsidiaries (1) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law or
(2) has become subject to any Environmental Liability. 

(c)        Since the date of this Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has resulted in a Material Adverse Effect. 
 SECTION 3.07        Compliance with Laws and Agreements.    Each Loan Party and its Subsidiaries is in compliance with all Requirements
of Law applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. No Default has occurred and is continuing under this Agreement. No default has occurred and is continuing under any indenture, agreement or other instrument binding upon any Loan Party or any of its Subsidiaries that could
reasonably be expected to have a Material Adverse Effect. 
 SECTION
3.08        Investment and Holding Company Status.    No Loan Party nor any of its Subsidiaries is an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940. 

  
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 SECTION
3.09        Taxes.    Each Loan Party and its Subsidiaries has timely filed or caused to be filed all material Tax returns and reports required to have been filed and has paid or
caused to be paid all material Taxes required to have been paid by it, except Taxes that are being contested in good faith by appropriate proceedings and for which such Loan Party or such Subsidiary, as applicable, has set aside on its books
adequate reserves. No tax liens have been filed and no claims are being asserted with respect to any such taxes. 
 SECTION 3.10        ERISA. 
 (a)        No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is
reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. 

(b)        Each employee benefit plan of Holdings, the Borrower or any of the
Borrower’s Subsidiaries intended to qualify under Section 401 of the Code does so qualify, and any trust created thereunder is exempt from tax under the provisions of Section 501 of the Code, except where such failures, in the
aggregate, would not have a Material Adverse Effect. 
 (c)        Each
Plan is in compliance in all material respects with applicable provisions of ERISA, the Code and other Requirements of Law except for non-compliances that, in the aggregate, would not have a Material Adverse Effect. 

SECTION 3.11        Disclosure.    The Borrower and
Holdings have disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which it or any Subsidiary is subject, and all other matters known to it, in relation to the Transactions that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the written reports, financial statements, certificates or other written information furnished by or on behalf of the any Loan Party to the ABL Administrative
Agent, the Supplemental Term Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document (as modified or supplemented by other written information so furnished) contained as of the date such report, statement,
certificate or information was so furnished any material misstatement of fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading;
provided that, with respect to projected financial information, the Borrower and Holdings represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time delivered and, if such
projected financial information was delivered prior to the Effective Date, as of the Effective Date, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that actual
results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount. 
 SECTION 3.12        Solvency.    Immediately after the consummation of each of (a) the Transactions to occur on the Effective Date,
and (b) the transactions to occur on the First Amendment Effective Date, (i) the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (ii) the
present fair saleable value of the property of each Loan Party will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such

  
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debts and other liabilities become absolute and matured; (iii) each Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (iv) each Loan Party will not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted after the
Effective Date or the First Amendment Effective Date, as applicable. 
 SECTION
3.13        Insurance. Schedule 3.13  sets forth a description of all insurance maintained by or on behalf of the Loan Parties and the Subsidiaries as of the First Amendment
Effective Date. As of the First Amendment Effective Date, all premiums in respect of such material insurance have been paid. The Borrower and Holdings believe that the insurance maintained by or on behalf of the Borrower and the Subsidiaries is
adequate. 
 SECTION 3.14        Capitalization and
Subsidiaries. 
 (a)        All of the outstanding Equity Interests
of the Borrower are owned beneficially and of record by Holdings, free and clear of all Liens other than the Liens in favor of the Collateral Agent, the Lenders and the Term Lenders created by the Security Agreements and non-consensual Liens created
by operation of law. No Equity Interest of the Borrower is subject to any option, warrant, right of conversion or purchase or any similar right. Other than the Borrower’s LLC agreement, there are no agreements or understandings to which the
Borrower is a party with respect to the voting, sale or transfer of any Equity Interest of the Borrower or any agreement restricting the transfer or hypothecation of any such shares. 

(b)        Schedule 3.14 sets forth as of the First Amendment Effective
Date, (i) a correct and complete list showing, the name and relationship to the Borrower of each and all of the Borrower’s Subsidiaries, (ii) a true and complete listing of each class of each of such Subsidiaries’ authorized
Equity Interests, of which all of such issued shares are validly issued, outstanding, fully paid and non-assessable, and owned beneficially and of record by the Persons identified on Schedule 3.14, and (iii) the type of entity of the
Borrower and each of its Subsidiaries. 
 SECTION
3.15        Security Interest in Collateral.    The provisions of this Agreement and the other Loan Documents create legal and valid Liens on all the Collateral in favor of the
Collateral Agent, for the benefit of the Collateral Agent, the ABL Administrative Agent, the Supplemental Term Agent and the Lenders. In the case of the Pledged Collateral described in the ABL Loan Security Agreement which is required to be
delivered to the Collateral Agent, when stock certificates representing such Pledged Collateral are delivered to the Collateral Agent together with appropriate instruments of transfer duly executed in blank, and in the case of the other Collateral
described in the ABL Loan Security Agreement, the financing statements and other filings specified on Schedule 3.15 in appropriate form filed in the offices specified on Schedule 3.15, the ABL Loan Security Agreement
constitutes or, to the extent not previously filed or obtained, will constitute a fully perfected and continuing Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof,
securing the Secured Obligations, enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens on the Collateral except in the case of (a) Permitted Encumbrances, to the extent any such Permitted
Encumbrances would have priority 

  
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over the Liens in favor of the Collateral Agent pursuant to any applicable law or agreement, (b) Liens permitted by Section 6.02 other than pursuant to clauses (g) or
(j) thereof and (c) Liens perfected only by possession (including possession of any certificate of title) to the extent the Collateral Agent has not obtained or does not maintain possession of such Collateral. 

SECTION 3.16        Labor Disputes.    As of the
Effective Date, there are no strikes, lockouts or slowdowns against any Loan Party or any Subsidiary pending or, to the knowledge of the Borrower, threatened. All payments due from any Loan Party or any Subsidiary or for which any claim may be made
against any Loan Party or any Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of such Loan Party or such Subsidiary, except as in the aggregate would
not reasonably be expected to have a Material Adverse Effect. 
 SECTION
3.17        Margin Regulations.    The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U of the Federal Reserve Board), and no proceeds of any Loan will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock in contravention of
Regulation T, U or X of the Federal Reserve Board 
 SECTION
3.18        Use of Proceeds.    The proceeds of the Initial Loans (a) are being used by the Borrower on the Effective Date for the payment of costs, fees and expenses incurred
in connection with the Transactions and (b) may be used by the Borrower on the Effective Date for working capital of the Borrower and its Subsidiaries and general corporate purposes. After the Effective Date, the proceeds of the Loans and the
Letters of Credit are being used by the Borrower solely for working capital of the Borrower and its Subsidiaries and general corporate purposes. 
 SECTION 3.19        Collateral Locations.    As of the First Amendment Effective Date, each Loan Party and each Loan Party’s records
concerning Accounts and Credit Card Account Receivables are located only at the addresses set forth for such Loan Party on Schedule 3.05 hereto. Schedule 3.05 hereto correctly identifies as of the First Amendment Effective Date any of
such locations which are not owned by Loan Party and sets forth the owners and/or operators thereof. 
 SECTION
3.20        Corporate Names; Prior Transactions.    As of the First Amendment Effective Date, no Loan Party has, during the past five years, been known by or used any other corporate
or fictitious name (other than as set forth in Schedule 3.20 hereto) or been a party to any merger or consolidation, or acquired all or substantially all of the assets of any Person, or acquired any of its property or assets out of the
ordinary course of business. 
 SECTION 3.21        Credit Card
Agreements.    Except as could not reasonably be expected to have a Material Adverse Effect, (a) each of the Credit Card Agreements constitutes the legal, valid and binding obligations of the Loan Party that is party
thereto and to the best of Borrower’s knowledge, the other parties thereto, enforceable in accordance with their respective terms and is in full force and effect, and (b) each Loan Party has complied with all of the material terms and
conditions of the Credit Card Agreements to the extent necessary for such Loan Party to be entitled to receive payments thereunder. 

  
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 SECTION 3.22        Master
Operating Lease.    The Master Operating Lease has not been amended or modified in any respect and no provision therein has been waived, except where a copy of such amendment or waiver has been provided by the Borrower to the
ABL Administrative Agent. 
 SECTION 3.23        Survival of
Warranties; Cumulative.    All representations and warranties contained in this Agreement or any of the other Loan Documents shall survive the execution and delivery of this Agreement and shall be conclusively presumed to
have been relied on by the ABL Administrative Agent and the Supplemental Term Agent regardless of any investigation made or information possessed by the ABL Administrative Agent, the Supplemental Term Agent or any Lender. 

ARTICLE IV 

Conditions 
 SECTION 4.01        Effective Date.    The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit
hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 

(a)        Credit Agreement and Loan
Documents.    The ABL Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence
satisfactory to the ABL Administrative Agent (which may include facsimile transmission (or other electronic image scan) of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly
executed copies of the Loan Documents and such other certificates, documents, instruments and agreements as the ABL Administrative Agent shall reasonably request in connection with the transactions contemplated by this Agreement and the other Loan
Documents, including any Notes requested by a Lender pursuant to Section 2.10 payable to the order of each such requesting Lender and a written opinion of the Loan Parties’ counsel, addressed to the ABL Administrative Agent, the
Issuing Banks and the Lenders in form and substance reasonably satisfactory to the ABL Administrative Agent. 

(b)        Closing Certificates; Certified Certificate of Incorporation; Good
Standing Certificates.    The ABL Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Effective Date and executed by its Secretary or Assistant Secretary, which shall (A) certify
the resolutions of its Board of Directors, members or other body authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the Financial Officers
and any other officers of such Loan Party authorized to sign the Loan Documents to which it is a party, and (C) contain appropriate attachments, including the certificate or articles of incorporation or organization of each Loan Party certified
by the relevant authority of the jurisdiction of organization of such Loan Party and a true and correct copy of its by-laws or operating, management or partnership agreement, and (ii) a long form good standing certificate for each Loan Party
from its jurisdiction of organization. 

  
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 (c)        No Default
Certificate.    The ABL Administrative Agent shall have received a certificate, signed by a Secretary or Assistant Secretary of the Borrower, on behalf of itself and the other Loan Parties, (i) stating that no Default or
Event of Default has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III are true and correct as of such date, and (iii) certifying any other factual matters as may be reasonably
requested by the ABL Administrative Agent. 

(d)        Fees.    The Lenders and the ABL
Administrative Agent shall have received all fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel (including any local counsel)), on or before the Effective
Date. All such amounts may be paid with proceeds of Loans made on the Effective Date and, if such amounts are paid with proceeds of Loans, such amounts will be reflected in the funding instructions given by the Borrower to the ABL Administrative
Agent on or before the Effective Date. 
 (e)        Lien
Searches.    The ABL Administrative Agent shall have received the results of a recent lien search in the jurisdictions where each of the Loan Parties are incorporated or organized, and such search shall reveal no liens on any
of the assets of the Loan Parties except for liens permitted by Section 6.02 or discharged on or prior to the Effective Date pursuant to a pay-off letter or other documentation satisfactory to the ABL Administrative Agent. 

(f)        Borrowing Base Certificate.    The ABL
Administrative Agent shall have received a Borrowing Base Certificate which calculates the Revolving Borrowing Base as of the end of the month immediately preceding the Effective Date, dated as of the Effective Date and executed by a Financial
Officer of the Borrower. 

(g)        Financials.    The ABL Administrative
Agent shall have received and be satisfied with detailed financial projections, including, in each case, a consolidated income statement, balance sheet, statement of cash flow, borrowing base availability analysis and business assumptions for the
Borrower on (i) a quarterly basis for the four quarter period following the Effective Date and (ii) on an annual basis, for each fiscal year thereafter through the Termination Date. 

(h)        Filings, Registrations and
Recordings.    Each document (including any Uniform Commercial Code financing statement) required by the Collateral Documents or under law or reasonably requested by the ABL Administrative Agent to be filed, registered
or recorded in order to create in favor of the ABL Administrative Agent, for the benefit of the Lenders, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens
expressly permitted by Section 6.02), shall be in proper form for filing, registration or recordation. 
 (i)        Opinions.    The Lenders and the ABL Administrative Agent shall have received a favorable legal opinion of DLA Piper LLP,
counsel to the Loan Parties, in form and substance reasonably satisfactory to the ABL Administrative Agent. 

(j)        Intercreditor Agreement.    The
Intercreditor Agreement shall have been duly executed and delivered by the parties thereto. 

  
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 (k)        Appraisals. The
ABL Administrative Agent shall have received an inventory appraisal by a third party appraiser acceptable to the ABL Administrative. 
 (l)        Opening Day Availability. After giving effect to (i) the first funding under the Loans, and (ii) all Letters of Credit to be issued at,
or immediately subsequent to, the Effective Date, Revolving Availability shall be not less than $35,000,000. 

(m)        Insurance. The ABL Administrative Agent shall have received
evidence that all insurance required to be maintained pursuant to the Loan Documents and all endorsements in favor of the ABL Administrative Agent required under the Loan Documents have been obtained and are in effect. 

(n)        Know Your Customer Requirements. The ABL Administrative Agent
shall have received all documentation and other information about the Loan Parties requested by the ABL Administrative Agent not less than ten (10) Business Days prior to the Effective Date that the ABL Administrative Agent reasonably
determines is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Patriot Act. 

(o)        Consents and Approvals. The Borrower and Guarantors shall have
obtained all governmental consents and approvals, and all third party consents required for the Borrower and Guarantors to consummate the financing. 
 (p)        Other Documents. The ABL Administrative Agent shall have received such other documents as the ABL Administrative Agent, any Issuing Bank, any
Lender or their respective counsel may have reasonably requested. 
 The ABL Administrative Agent shall notify the Borrower and
the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective
unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 2:00 p.m. on November 5, 2012 (and, in the event such conditions are not so satisfied or waived, the Revolving Commitments
shall terminate at such time). 
 SECTION 4.02        Each Credit
Event.        The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Banks to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction
of the following conditions: 
 (a)        The representations and
warranties of the Loan Parties set forth in this Agreement shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable as
if made on and as of such date (except that representations and warranties which relate to a specific earlier date shall be true and correct in all material respects as of such earlier date). 

(b)        At the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default (other than, prior to the date that is the earlier to occur of (x) the date on

  
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which the Term Administrative Agent or any Term Lender provides notice to the Borrower of the Borrower’s failure to maintain an Adjusted Leverage Ratio (as defined in the Term Loan
Agreement) of not more than 5.75x for the fiscal quarter ending February 2, 2013, as required under Section 5.10 of the Term Loan Agreement, or (y) the date on which the Borrower delivers (or is required to deliver) to the ABL
Administrative Agent the financial statements with respect to the fiscal month ending February 2, 2013 pursuant to Section 5.01(c) of this Agreement, which financial statements demonstrate (or would demonstrate) such a failure, a Default
or Event of Default which may exist under clause (f) of Article VII of this Agreement arising as a result of the Borrower’s failure to so maintain an Adjusted Leverage Ratio) shall have occurred and be continuing. 

(c)        The aggregate Revolving Exposure outstanding on the date of such
Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, after giving effect to the applicable Borrowing, issuance, amendment, renewal or extension of a Letter of Credit, shall not exceed the Maximum Revolver
Availability. 
 Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to
constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in clauses (a), (b) and (c) of this Section 4.02. 
 ARTICLE V 
 Affirmative Covenants 

Until the Revolving Commitments have expired or been terminated and the principal of and interest on each Loan and all
fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated or been Cash Collateralized and all LC Disbursements shall have been reimbursed, each Loan Party executing this Agreement covenants and
agrees, jointly and severally with all of the Loan Parties, with the Lenders that: 
 SECTION
5.01        Financial Statements; Borrowing Base and Other Information.    The Borrower or Holdings will furnish to the ABL Administrative Agent, the Supplemental Term Agent and each
Lender: 
 (a)        as soon as available and in any event within
95 days after the end of each fiscal year of Holdings, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a “going concern” or like qualification or exception (other than exceptions relating
solely to (i) the occurrence of certain Defaults (but not any Events of Default) under clause (f) of Article VII of this Agreement arising as a result of the Borrower’s failure to comply with the financial covenant set forth in
Section 5.10 of the Term Loan Agreement, or (ii) the proximity of the Non-Extended Maturity Date of the Term B-1 Loans (as each such term is defined in the Term Loan Agreement), in each case of clauses (i) and (ii) to the extent
such events are known to the ABL Administrative Agent, the Supplemental Term Agent and the Lenders on the First Amendment Effective Date) and without any qualification or exception as to the scope of such audit) to the effect that such

  
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consolidated financial statements present fairly in all material respects the financial condition and results of operations of Holdings and its consolidated Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied; 
 (b)        as soon as
available and in any event within 50 days after the end of each of the first three fiscal quarters of Holdings, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and
for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous
fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of Holdings and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied subject to normal year-end audit adjustments and the absence of footnotes; 

(c)        as soon as available and in any event within 20 days after the
end of each fiscal month of Holdings, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal month and the then elapsed portion of the fiscal year, setting
forth in each case in comparative form (i) the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, and (ii) the figures for the corresponding period or
periods set forth in the Projections delivered pursuant to Section 5.01(h), all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of Holdings and
its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied subject to normal year-end audit adjustments and the absence of footnotes; 

(d)        concurrently with the delivery of each set of consolidated financial
statements referred to in Section 5.01(a), (b) and (c) above, a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial condition and results of operations of Holdings and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted
Subsidiary of Holdings; 
 (e)        concurrently with any delivery of
financial statements under clause (a) or (b) or (c) or (d) above, a certificate of a Financial Officer of the Borrower in substantially the form of Exhibit C (i) certifying as to whether a Default has occurred and, if
a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, and (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.16;

 (f)        concurrently with any delivery of financial statements
under clause (a) above, a certificate of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of their examination of such financial statements of any Default (which
certificate may be limited to the extent required by accounting rules or guidelines); 

(g)        as soon as available but in any event not later than 30 days after
the end of each fiscal year of the Borrower, and containing substantially the types of financial 

  
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information contained in the projections, (i) the annual business plan of the Borrower and its Subsidiaries for the next succeeding fiscal year approved by the board of directors or
equivalent of the Borrower, (ii) forecasts prepared by management of the Borrower for each fiscal month in the next succeeding fiscal year, and (iii) forecasts prepared by management of the Borrower for each fiscal year subsequent to the
next succeeding fiscal year through the fiscal year in which the Maturity Date is scheduled to occur, including, in each instance described in clauses (ii) and (iii) above, (x) a projected year-end consolidated balance sheet and
income statement and statement of cash flows, (y) a statement of all of the material assumptions on which such forecasts are based, and (z) models with respect to Combined Availability, Maximum Combined Availability, Revolver Availability
and Maximum Revolver Availability on a monthly basis (the “Projections”); 

(h)        as soon as available but in any event: (i) not later than
fifteen (15) days after the end of each fiscal month, a monthly Borrowing Base Certificate, which monthly Borrowing Base Certificate shall reflect (A) the updated Eligible Credit Card Account Receivables as of the last day of the then most
recently ended month and (B) Eligible Inventory as of the last day of the then most recently ended month; (ii) upon the occurrence and during the continuance of any Accelerated Reporting Event, within three (3) Business Days after the
end of each calendar week (each calendar week deemed, for purposes hereof, to end on a Friday), a weekly Borrowing Base Certificate, which shall reflect (A) the updated Eligible Credit Card Account Receivables as of the end of such week and
(B) Eligible Inventory as stated in the immediately preceding monthly Borrowing Base Certificate; and (iii) if requested by the ABL Administrative Agent or the Supplemental Term Agent at any other time when the ABL Administrative Agent or
the Supplemental Term Agent reasonably believes that the then existing Borrowing Base Certificate is materially inaccurate, as soon as reasonably available but in no event later than five (5) Business Days after such request, a completed
Borrowing Base Certificate showing the Revolving Borrowing Base, the Supplemental Term Borrowing Base and the calculations described in Section 2.01(b)(iii) as of the date so requested, in each case with supporting documentation and
additional reports with respect to the Revolving Borrowing Base, the Supplemental Term Borrowing Base and the calculations described in Section 2.01(b)(iii) as the ABL Administrative Agent or the Supplemental Term Agent may reasonably
request; 
 (i)        promptly after the same become publicly
available, copies of all periodic and other reports, proxy statements and other materials filed by Holdings or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of
said Commission, or with any national securities exchange, or, after a public equity offering, distributed by the Borrower to its shareholders generally, as the case may be; and 

(j)        promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary, as the ABL Administrative Agent, the Supplemental Term Agent or any Lender may reasonably request. 

SECTION 5.02        Notices of Material Events.    
The Borrower and Holdings will furnish to the ABL Administrative Agent, the Supplemental Term Agent and each Lender prompt written notice of the following: 

  
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 (a)        the occurrence of any
Default or Event of Default promptly upon becoming aware of it; 

(b)        the occurrence of any event that would trigger a Cash Dominion Period
promptly upon becoming aware of it; 
 (c)        the occurrence of any
condition which would reasonably be expected to have a Material Adverse Effect; 

(d)        the occurrence of any ERISA Event that, alone or together with any
ERISA Events that have occurred, is in excess of $5,000,000; 

(e)        any material change in accounting or financial reporting practices
(other than as reported by GAAP or applicable law) by any Loan Party or any Subsidiary thereof; 

(f)        any Disposition of property, sale of equity, or incurrence of
Indebtedness in excess of $5,000,000, in each case after knowledge thereof by a responsible officer of the Borrower or any Guarantor; 
 (g)        receipt of any notice of any governmental investigation or any litigation or proceeding commenced or threatened against any Loan Party that
(i) seeks damages in excess of $10,000,000 and is not covered by insurance, (ii) seeks injunctive relief which, if granted, would reasonably be expected to have a Material Adverse Effect; 

(h)        (i) any Lien (other than Liens permitted under
Section 6.02) or claim made or asserted against any of the Collateral, (ii) any loss, damage, or destruction to the Collateral whether or not covered by insurance or the commencement of any action or proceeding for the taking of any
material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding and (iii) any and all default notices received under or with respect to any leased location or public warehouse where
Collateral is located (which shall be delivered within two Business Days after receipt thereof), in each case in relation to (x) Supplemental Term Priority Collateral in the aggregate amount of $50,000 or more, and/or (y) other Collateral
in the aggregate amount of $2,000,000 or more; 
 (i)        any Credit
Card Agreement entered into by such Loan Party after the Effective Date, together with a true, correct and complete copy thereof and such other information with respect thereto as the ABL Administrative Agent or the Supplemental Term Agent may
reasonably request; 
 (j)        the receipt by any Loan Party of any
written notice of violation of or potential liability under, or knowledge by such Loan Party that there exists a condition that could reasonably be expected to result in a violation of or liability under, any Environmental Law, except for violations
and liabilities the consequence of which would not be reasonably likely to subject the Loan Parties to liabilities exceeding $5,000,000 individually or in the aggregate; 

(k)        obtaining knowledge of the commencement of any judicial or
administrative proceeding or investigation alleging a violation of or liability under any Environmental Law, that has a reasonable likelihood of being adversely determined and that, in 

  
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the aggregate, if adversely determined, would have a reasonable likelihood of subjecting the Loan Party to liabilities exceeding $5,000,000 individually or in the aggregate; 

(l)        upon written request by any Lender through the ABL Administrative
Agent or the Supplemental Term Agent, a report providing an update of the status of any environmental, health or safety compliance, hazard or liability issue identified in any notice or report delivered pursuant to this Agreement; and 

(m)        any amendment, supplement, waiver or other modification to the Term
Loan Agreement or any other Term Loan Document (whether or not consent of the ABL Administrative Agent is required under the Intercreditor Agreement with respect thereto). 
 Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto. In addition, each notice delivered under clause (m) above shall be accompanied by a true and complete copy of any such amendment, supplement, waiver or
other modification described in such clause. 
 SECTION
5.03        Existence; Conduct of Business.     Each Loan Party will, and will cause each Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect (i) its legal existence and (ii) the rights, qualifications, licenses, permits, franchises, governmental authorizations, intellectual property rights, licenses and permits material to the conduct of its business, and
maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.03 and, in the case of clause (ii) above, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect. 

SECTION 5.04        Payment of Obligations.     Each
Loan Party will, and will cause each Subsidiary to, pay or discharge all Material Indebtedness and all other material liabilities and obligations, including Taxes, before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, and (b) such Loan Party or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP. 

SECTION 5.05        Maintenance of Properties.    
Each Loan Party will, and will cause each Subsidiary to, keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted. 

SECTION 5.06        Books and Records; Inspection
Rights.     Each Loan Party will, and will cause each Restricted Subsidiary to, (i) keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to
its business and activities and (ii) permit any representatives designated by the ABL Administrative Agent, the Supplemental Term Agent or any Lender (including employees of the ABL Administrative Agent, the Supplemental Term Agent, any Lender
or any consultants, accountants, lawyers and appraisers retained by the ABL Administrative Agent or the Supplemental Term Agent), upon 

  
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reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, including environmental assessment reports and Phase I or Phase II studies,
and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested. The Loan Parties acknowledge that the ABL Administrative Agent and/or the
Supplemental Term Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties’ assets for internal use by the ABL Administrative Agent, the Supplemental Term Agent
and the Lenders. The ABL Administrative Agent and the Supplemental Term Agent may conduct inspections of the Collateral from time to time during each calendar year, but unless an Event of Default has occurred and is continuing, only one inspection
per calendar year shall be at the expense of the Borrower. For the avoidance of doubt, (a) the ABL Administrative Agent and the Supplemental Term Agent may conduct more than one inspection per calendar year and (b) the Borrower shall pay
for all inspections during the continuance of an Event of Default. 
 SECTION
5.07        Compliance with Laws.    Each Loan Party will, and will cause each Subsidiary to, comply with all Requirements of Law applicable to it or its property except to the
extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 SECTION 5.08        Compliance with Environmental Laws.    Each Loan Party will (a) conduct its operations and keep and maintain its
Real Estate in material compliance with all Environmental Laws; (b) obtain and renew all environmental permits necessary for its operations and properties; and (c) implement any and all investigation, remediation, removal and response
actions that are appropriate or necessary to maintain the value and marketability of the Real Estate or to otherwise comply with Environmental Laws pertaining to the presence, generation, treatment, storage, use, disposal, transportation or release
of any Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate, provided, however, that neither a Loan Party nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial
or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and adequate reserves have been set aside and are being maintained by the Loan Parties with respect to such circumstances in
accordance with GAAP. 
 SECTION 5.09        Compliance with
Material Contracts.    Each Loan Party will (a) perform and observe all the terms and provisions of each Material Contract to be performed or observed by it, (b) maintain each such Material Contract in full force
and effect, (c) enforce each such Material Contract in accordance with its terms, (d) take all such action to such end as may be from time to time requested by any Agent, (e) upon request of any Agent, make to each other party to each
such Material Contract such demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such Material Contract, and (f) cause each of its Subsidiaries to do the
foregoing. 
 SECTION 5.10        Use of
Proceeds.    The proceeds of the Loans will be used only as described in Section 3.18. No part of the proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including Regulations T, U and X. 

  
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 SECTION
5.11        Insurance.    Each Loan Party will, and will cause each Subsidiary to, maintain insurance with responsible and reputable insurance companies or associations in such
amounts and covering such risks as is consistent with prudent business practice; provided that each Loan Party and its Subsidiaries may self insure to the extent consistent with prudent business practice. The Borrower will furnish to the
Lenders, upon request of the ABL Administrative Agent or the Supplemental Term Agent, information in reasonable detail as to the insurance so maintained. 
 SECTION 5.12        Appraisals and Field Examinations.    At any time reasonably deemed necessary by the ABL Administrative Agent, and
upon reasonable notice from the ABL Administrative Agent, the Borrower and the Restricted Subsidiaries will permit the ABL Administrative Agent or professionals (including consultants, accounts and/or appraisers) retained by the ABL Administrative
Agent to conduct field examinations and/or appraisals of (a) the Borrower’s practices in the computation of the Revolving Borrowing Base and the Supplemental Term Borrowing Base, (b) the assets included in the Revolving Borrowing
Base, the Supplemental Term Borrowing Base or the calculations described in Section 2.01(b)(iii), and (c) the Borrower’s furniture, fixtures and equipment. Subject to the following sentences, the Loan Parties shall pay the
reasonable and documented fees and expenses of the ABL Administrative Agent and such professionals with respect to such evaluations and appraisals. The Loan Parties acknowledge that the ABL Administrative Agent may, in its discretion, undertake one
(1) field examination and one (1) appraisal of the Borrower’s assets of the type included in the Revolving Borrowing Base and the Supplemental Term Borrowing Base during each fiscal year at the Loan Parties’ expense; provided
that, if Combined Availability at any time is less than or equal to sixty percent (60%), but greater than twenty-five percent (25%), of the sum of the Aggregate Revolving Commitments in effect at such time and the outstanding principal balance
of the FILO Term Loan at such time, the Loan Parties acknowledge that the ABL Administrative Agent may, in its discretion, undertake up to two (2) field examinations and two (2) appraisals of the Borrower’s assets of the type included
in the Revolving Borrowing Base and the Supplemental Term Borrowing Base during each fiscal year at the Loan Parties’ expense; provided further, that if Combined Availability at any time is less than or equal to twenty-five percent
(25%) of the sum of the Aggregate Revolving Commitments in effect at such time and the outstanding principal balance of the FILO Term Loan at such time, the Loan Parties acknowledge that the ABL Administrative Agent may, in its discretion,
undertake up to three (3) field examinations and three (3) appraisals of the Borrower’s assets of the type included in the Revolving Borrowing Base and the Supplemental Term Borrowing Base during each fiscal year at the Loan
Parties’ expense. The Loan Parties acknowledge that, in addition to the appraisals described in the immediately preceding sentence, the ABL Administrative Agent shall, at the direction of the Supplemental Term Agent, undertake one
(1) appraisal of the Borrower’s furniture, fixtures and equipment during each fiscal year at the Loan Parties’ expense. Notwithstanding anything to the contrary contained herein, the ABL Administrative Agent may cause additional
appraisals (including with respect to assets of the type included in the Revolving Borrowing Base and the Supplemental Term Borrowing Base, or furniture, fixtures and equipment) and field examinations to be undertaken (i) as it in its
reasonable discretion deems necessary or appropriate, at its own expense, or (ii) if an Event of Default shall have occurred and be continuing, at the expense of the Loan Parties. Until such time as the ABL Administrative Agent receives the new
field examination, the ABL Administrative Agent agrees to rely on the most recent field examination 

  
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prepared in connection with the Existing Credit Agreement. In all events, if the ABL Administrative Agent has not undertaken an appraisal or a field examination with the frequency described in
this Section 5.12, the Supplemental Term Agent may, in its discretion, direct the ABL Administrative Agent to do so upon written notice to the ABL Administrative Agent. 

SECTION 5.13        Additional Collateral; Further Assurances.

 (a)        Subject to applicable law, the Borrower and each
Restricted Subsidiary that is a Loan Party shall cause each of its domestic Restricted Subsidiaries formed or acquired after the date of this Agreement in accordance with the terms of this Agreement to become a Loan Party by executing the Joinder
Agreement set forth as Exhibit D hereto (the “Joinder Agreement”). Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor hereunder and thereupon shall have all of the
rights, benefits, duties, and obligations in such capacity under the Loan Documents and (ii) will grant Liens to the Collateral Agent, for the benefit of the Collateral Agent, the ABL Administrative Agent, the Supplemental Term Agent and the
Lenders, in any property of such Loan Party which constitutes Collateral, including any parcel of real property with a fair market value in excess of $250,000 located in the U.S. owned by any Loan Party. 

(b)        The Borrower and each Restricted Subsidiary that is a Loan Party will
cause (i) 100% of the issued and outstanding Equity Interests of each of its domestic Restricted Subsidiaries and (ii) 65% (or such greater percentage that, due to a change in applicable law after the Effective Date, (1) could not
reasonably be expected to cause the undistributed earnings of such foreign Restricted Subsidiary as determined for U.S. federal income tax purposes to be treated as a deemed dividend to such foreign Restricted Subsidiary’s U.S. parent and
(2) could not reasonably be expected to cause any adverse tax consequences) of the issued and outstanding Equity Interests in each foreign Restricted Subsidiary directly owned by the Borrower or any domestic Restricted Subsidiary to be subject
at all times to (i) a first priority, perfected Lien in favor of the Term Collateral Agent for the benefit of the Term Lenders and (ii) a second priority, perfected Lien in favor of the Collateral Agent for the benefit of the Lenders, in
each case pursuant to the terms and conditions of the Loan Documents and the Term Loan Documents or other security documents, subject to the Intercreditor Agreement, as the ABL Administrative Agent and/or the Term Administrative Agent shall
reasonably request. 
 (c)        Without limiting the foregoing, each
Loan Party will, and will cause each Restricted Subsidiary to, execute and deliver, or cause to be executed and delivered, to the ABL Administrative Agent and the Supplemental Term Agent such documents, agreements and instruments, and will take or
cause to be taken such further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents and such other actions or deliveries of the type required by Section 4.01,
as applicable), which may be required by law or which the ABL Administrative Agent or the Supplemental Term Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to
ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all at the expense of the Loan Parties. 
 (d)        If any material assets (including any real property or improvements thereto or any interest therein with a fair market value in excess of $250,000) are
acquired by the 

  
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Borrower or any Restricted Subsidiary that is a Loan Party after the Effective Date (other than assets constituting Collateral under the ABL Loan Security Agreement that become subject to the
Lien in favor of the Collateral Agent upon acquisition thereof and Excluded Collateral (as defined in the ABL Loan Security Agreement)), the Borrower will notify the ABL Administrative Agent, the Supplemental Term Agent and the Lenders thereof, and,
if requested by the ABL Administrative Agent, the Supplemental Term Agent or the Required Lenders, the Borrower will cause such assets to be subjected to a Lien securing the Secured Obligations and will take, and cause the Restricted Subsidiary Loan
Parties to take, such actions as shall be necessary or reasonably requested by the ABL Administrative Agent or the Supplemental Term Agent to grant and perfect such Liens, including actions described in clause (c) of this
Section 5.13, all at the expense of the Loan Parties. 
 SECTION
5.14        Cash Management. 

(a)        The Borrower shall cause 100% of the sum of (i) aggregate daily
cash collections in respect of all Eligible Credit Card Account Receivables and (ii) aggregate daily cash payments constituting proceeds of all Eligible Inventory to be paid into one or more deposit accounts with respect to which the Borrower
has provided to the ABL Administrative Agent a Deposit Account Control Agreement (any such deposit account, a “Borrowing Base Proceeds Deposit Account”). During any Cash Dominion Period, the ABL Administrative Agent shall have the
right, with respect to all amounts that pursuant to this Section 5.14(a) are on deposit in any Borrowing Base Proceeds Deposit Account, (1) to cause all such amounts to be swept at the end of each Business Day into an account (the
“Collection Account”) maintained by the ABL Administrative Agent with Wells Fargo and (2) to apply all such amounts on deposit in the Collection Account to the prepayment of the Obligations and the Cash Collateralization of LC
Exposure as set forth in Section 2.10(b). 

(b)        Each Loan Party shall provide to the Collateral Agent a Deposit
Account Control Agreement with respect to each new deposit account of such Loan Party within 60 days after the opening of such new deposit account, other than any deposit account (i) in which the average monthly balance on deposit is less than
$100,000 individually or $1,000,000 for all such deposit accounts, (ii) with respect to which the granting of a security interest and the entering into of a Deposit Account Control Agreement is prohibited by Requirements of Law or
(iii) with respect to which the Collateral Agent has otherwise agreed not to require a Deposit Account Control Agreement. 
 SECTION 5.15        Real Property. 
 (a)        The Borrower shall, and shall cause each of its Subsidiaries to, (i) comply in all material respects with all of their respective obligations under
all of their material Leases having annual rentals in excess of $400,000 now or hereafter held respectively by them, (ii) not modify, amend, cancel, extend or otherwise change in any materially adverse manner any term, covenant or condition of
any such material Lease, (iii) not assign or sublet any other Lease if such assignment or sublet would have a Material Adverse Effect, (iv) provide the ABL Administrative Agent and the Supplemental Term Agent with a copy of each notice of
default under any material Lease received by the Borrower or any Subsidiary of the Borrower promptly upon receipt thereof and (v) promptly notify the ABL Administrative Agent and the 

  
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Supplemental Term Agent (and in no event later than thirty (30) days) following the date the Borrower or any Subsidiary takes possession of, or becomes liable under, any new leased premises
or Lease, whichever is earlier. 
 (b)        At least 15 Business Days
prior to (i) entering into any Lease (other than a renewal of an existing Lease) for the principal place of business and chief executive office of the Borrower or any other Loan Guarantor or (ii) acquiring any material owned Real Property,
the Borrower shall, and shall cause such Loan Guarantor to, provide the ABL Administrative Agent and the Supplemental Term Agent written notice thereof. 
 (c)        If at any time after the Effective Date, the Borrower or any Loan Guarantor shall acquire fee simple title to any material Real Property having a
purchase price in excess of $400,000 or acquire or enter into any material Lease having annual rental in excess of $400,000, upon the written request of the ABL Administrative Agent or the Supplemental Term Agent, the Borrower shall, and shall cause
each Loan Guarantor to, execute and deliver to the Collateral Agent, for the benefit of each of the ABL Administrative Agent, the Supplemental Term Agent and the Lenders, promptly and in any event not later than 45 days after receipt of such notice
(or, if such request is given by the ABL Administrative Agent or the Supplemental Term Agent prior to the acquisition of such Real Property or Lease, immediately upon such acquisition), a mortgage on any owned Real Property or a Leasehold Mortgage
on any or Lease of the Borrower or such Loan Guarantor, together with (i) if requested by the ABL Administrative Agent or the Supplemental Term Agent and such Real Property is located in the United States or is a Lease of Real Property located
in the United States, all Leasehold Mortgage Supporting Documents relating thereto or (ii) otherwise, documents similar to Leasehold Mortgage Supporting Documents deemed by the ABL Administrative Agent or the Supplemental Term Agent to be
appropriate in the applicable jurisdiction to obtain the equivalent in such jurisdiction of a first-priority mortgage on such Real Property or Lease. 
 SECTION 5.16        Post-First Amendment Effective Date Covenants. 
 (a)        The Loan Parties shall use their best efforts to, within forty-five (45) days of the First Amendment Effective Date, have delivered to the ABL
Administrative Agent, in form and substance reasonably satisfactory to the ABL Administrative Agent, a collateral access agreement duly executed by the landlord with respect to the distribution center located at 2650 MacArthur Drive, Tracy,
California, it being understood that (i) failure to deliver such agreement will not constitute an Event of Default, and (ii) the foregoing shall not be deemed to derogate from the ABL Administrative Agent’s rights hereunder to impose
or maintain Rent Reserves in respect of such location. 

(b)        Within fourteen (14) days following the First Amendment
Effective Date (or such later date as to which the ABL Administrative Agent and the Supplemental Term Agent may agree in their sole discretion), in respect of all insurance policies maintained by any Loan Party, the Loan Parties shall deliver to the
ABL Administrative Agent, in form and substance reasonably satisfactory to the ABL Administrative Agent and the Supplemental Term Agent, (i) certificates of insurance naming the Collateral Agent (for the benefit of the Collateral Agent, the ABL
Administrative Agent, the Supplemental Term Agent and the Lenders) as an additional insured or as lender’s loss payee, as applicable, and (ii) endorsements containing (A) lender’s

  
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loss payable clauses, additional insured or mortgagee clauses, as applicable, and (B) notice of cancellation clauses. 

(c)        Within thirty (30) days following the First Amendment Effective
Date (or such later date as to which the ABL Administrative Agent and the Supplemental Term Agent may agree in their sole discretion), the Loan Parties shall deliver to the ABL Administrative Agent, in form and substance reasonably satisfactory to
the ABL Administrative Agent and the Supplemental Term Agent and duly executed by the parties thereto, (i) an amendment to the Deposit Account Control Agreement dated as of March 30, 2010 (as amended and in effect, the “BOA
DACA”) by and among the Borrower, the Collateral Agent, the Term Collateral Agent and Bank of America, N.A., pursuant to which Schedule A thereto shall have been amended to remove certain accounts and add certain accounts, and (ii) a
Deposit Account Control Agreement by and among Holdings, the Collateral Agent, the Term Collateral Agent and Bank of America, N.A., with respect to accounts maintained by Holdings with Bank of America, N.A. (including, without limitation, accounts
numbered 187602794 and 1233000508). 
 ARTICLE VI 
 Negative Covenants 
 Until the Revolving Commitments have
expired or terminated and the principal of and interest on each Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in full and all Letters of Credit have expired or terminated or been Cash Collateralized and
all LC Disbursements shall have been reimbursed, the Loan Parties covenant and agree, jointly and severally, with the Lenders that: 
 SECTION 6.01        Indebtedness.    No Loan Party will, nor will it permit any Restricted Subsidiary to, create, incur or suffer to
exist any Indebtedness, except: 
 (a)        Indebtedness incurred
pursuant to any Loan Document; 
 (b)        Indebtedness existing on
the First Amendment Effective Date and set forth in Schedule 6.01 and extensions, renewals, refinancings and replacements of any such Indebtedness in accordance with clause (f) hereof; 

(c)        Indebtedness of the Borrower to any Subsidiary and of any Subsidiary
to the Borrower or any other Subsidiary, provided that (i) Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or any Subsidiary that is a Loan Party shall be subject to Section 6.04 and
(ii) Indebtedness of the Borrower to any Subsidiary and Indebtedness of any Subsidiary that is a Loan Party to any Subsidiary that is not a Loan Party shall be subordinated to the Secured Obligations on terms reasonably satisfactory to the ABL
Administrative Agent and the Supplemental Term Agent; 

(d)        Guarantees by the Borrower of Indebtedness of any Subsidiary and by
any Restricted Subsidiary of Indebtedness of the Borrower or any other Subsidiary, provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees by the Borrower or any Subsidiary
that is a Loan Party of Indebtedness of any Restricted Subsidiary that is not a Loan Party shall be subject to Section 6.04 (without giving effect to clause (p) 

  
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thereof) and (iii) Guarantees permitted under this clause (d) shall be subordinated to the Secured Obligations of the applicable Restricted Subsidiary on the same terms as the
Indebtedness so Guaranteed is subordinated to the Secured Obligations; 

(e)        Indebtedness of the Borrower or any Restricted Subsidiary incurred to
finance the acquisition, construction or improvement of any fixed or capital assets (whether or not constituting purchase money Indebtedness), including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any
such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness in accordance with clause (f) hereof; provided that such Indebtedness is
incurred prior to, concurrently with or within 180 days after such acquisition or the completion of such construction or improvement; 
 (f)        Indebtedness which represents an extension, refinancing, or renewal of any of the Indebtedness described in clauses (b), (e),
(i) and (j) hereof; provided that (i) the principal amount of such Indebtedness is not increased except by an amount equal to accrued but unpaid interest and premiums thereon, (ii) any Liens securing
such Indebtedness are not extended to any additional property of any Loan Party, (iii) no Loan Party that is not originally obligated with respect to repayment of such Indebtedness is required to become obligated with respect thereto,
(iv) such extension, refinancing or renewal does not result in a shortening of the average weighted maturity of the Indebtedness so extended, refinanced or renewed, (v) the terms and conditions, including the covenants and event of default
provisions of such extension, refinancing, or renewal are market terms and conditions at the time of such extension, refinancing or renewal, and (vi) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of
payment to the Secured Obligations, then the terms and conditions of the refinancing, renewal, or extension Indebtedness must include subordination terms and conditions that are at least as favorable to the ABL Administrative Agent, the Supplemental
Term Agent and the Lenders as those that were applicable to the refinanced, renewed, or extended Indebtedness; 

(g)        Indebtedness owed to any person providing workers’ compensation,
health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such person, in each case incurred in the ordinary course of business; 

(h)        Indebtedness of the Borrower or any Restricted Subsidiary in respect
of performance bonds, bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business; 
 (i)        Indebtedness of any Person that becomes a Subsidiary after the Effective Date; provided that (i) such Indebtedness exists at the time such
Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this clause (i) shall not exceed $10,000,000 at
any time outstanding; 
 (j)        Indebtedness pursuant to the Term
Loan Agreement and any Qualified Subordinated PIK Debt exchanged therefor; 

  
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 (k)        Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within two Business
Days of its incurrence; 
 (l)        Indebtedness representing
deferred compensation to employees of the Borrower and the Restricted Subsidiaries incurred in the ordinary course of business; 
 (m)        Indebtedness supported by a letter of credit (for so long as supported by such letter of credit) in a principal amount not to exceed the face amount of
such letter of credit; 
 (n)        any customary “bad acts”
guarantee issued by any Loan Party in connection with Indebtedness in respect of any Real Property owned by the Unrestricted Subsidiary; and 
 (o)        other (i) unsecured Indebtedness of the Borrower in an unlimited amount and (ii) secured Indebtedness of the Borrower in an aggregate principal
amount not exceeding $25,000,000 provided that any such secured Indebtedness (x) has a maturity at least six (6) months after the Maturity Date, and (y) is subject to an intercreditor agreement with the ABL
Administrative Agent containing terms reasonably satisfactory to the ABL Administrative Agent and the Supplemental Term Agent. 
 SECTION 6.02        Liens.    No Loan Party will, nor will it permit any Restricted Subsidiary to, create, incur, assume or permit to
exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 

(a)        Liens created pursuant to any Loan Document; 

(b)        Permitted Encumbrances; 

(c)        any Lien on any property or asset of the Borrower or any Restricted
Subsidiary existing on the First Amendment Effective Date and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or Restricted Subsidiary and
(ii) such Lien shall secure only those obligations which it secures on the Effective Date and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof and which are permitted by clause
(f) of Section 6.01; 
 (d)        Liens on fixed or
capital assets acquired, constructed or improved by the Borrower or any Restricted Subsidiary or arising out of sale and leaseback transactions permitted by Section 6.06; provided that (i) such security interests
secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or concurrently with or within 180 days after such acquisition or the
completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such security interests shall not apply
to any other property or assets of the Borrower or Restricted Subsidiary; 

  
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 (e)        any Lien existing on any
property or asset (other than Accounts, Credit Card Account Receivables and Inventory) prior to the acquisition thereof by the Borrower or any Restricted Subsidiary or existing on any property or asset (other than Accounts, Credit Card Account
Receivables and Inventory) of any Person that becomes a Loan Party after the Effective Date prior to the time such Person becomes a Loan Party; provided that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Loan Party, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Loan Party (other than proceeds) and (iii) such Lien shall secure only those obligations which
it secures on the date of such acquisition or the date such Person becomes a Loan Party, as the case may be and such Indebtedness is permitted by clause (i) of Section 6.01 and extensions, renewals and replacements thereof that do
not increase the outstanding principal amount thereof (plus accrued interest and premiums) and which are permitted by clauses (f) of Section 6.01; 

(f)        Liens of a collecting bank arising in the ordinary course of business
under Section 4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction covering only the items being collected upon; 
 (g)        Liens on securities held by the Borrower or any of its Restricted Subsidiaries representing an interest in a joint venture to which the Borrower or such
Restricted Subsidiary is a party (provided that such joint venture is not a Subsidiary of the Borrower) to the extent that (i) such Liens constitute purchase options, calls or similar rights of a counterparty to such joint venture and
(ii) such Liens are granted pursuant to the terms of the partnership agreement, joint venture agreement or other similar document or documents pursuant to which such joint venture was created or otherwise governing the rights and obligations of
the parties to such joint venture; 
 (h)        Liens created pursuant
to any Term Loan Document, subject at all times to the Intercreditor Agreement; and 

(i)        Liens with respect to property or assets of the Borrower or any
Restricted Subsidiary not constituting Eligible Credit Card Account Receivables, Eligible Inventory or Supplemental Term Priority Collateral with an aggregate fair market value (valued at the time of creation of the Liens) of not more than
$10,000,000 at any time. 
 Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02
may at any time attach to any Loan Party’s (1) Eligible Credit Card Account Receivables, other than those permitted under clauses (a) and (l) of the definition of Permitted Encumbrance and clauses (a), (e) and (h) above
and (2) Eligible Inventory, other than those permitted under clauses (a), (b), (e) and (h) of the definition of Permitted Encumbrance and clauses (a), (e) and (h) above. 

SECTION 6.03        Fundamental Changes. 

(a)        No Loan Party will, nor will it permit any Restricted Subsidiary to,
merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall
have occurred and be continuing (i) any Restricted Subsidiary of the Borrower may merge into the Borrower in a transaction in which the 

  
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Borrower is the surviving corporation, (ii) any Loan Party (other than the Borrower) may merge into any Loan Party in a transaction in which the surviving entity is a Loan Party,
(iii) any Restricted Subsidiary may merge into another Restricted Subsidiary, provided that if one is a Loan Party the surviving company must be a Loan Party, (iv) any Restricted Subsidiary that is not a Loan Party may
liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders, and (v) any investment permitted by
Section 6.04 may be structured as a merger or consolidation. 

(b)        No Loan Party will, nor will it permit any of its Restricted
Subsidiaries to, engage in any business other than businesses of the type conducted by the Borrower and its Restricted Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto. 

(c)        Holdings will not engage in any business or activity other than those
activities related to its Equity Interests being publicly traded, purchasing Loans in accordance with the terms of this Agreement and Term Loans in accordance with the terms of the Term Loan Agreement, the ownership of all the outstanding Equity
Interests of the Borrower and activities incidental thereto, including (i) paying taxes, (ii) preparing reports to Governmental Authorities and to its shareholders, (iii) holding directors and shareholders meetings, preparing
corporate records and other activities permitted by this Agreement, and (iv) guarantees required in the ordinary course of the Borrower’s activities that may be required by counterparties. Holdings will not own or acquire any assets (other
than Equity Interests of the Borrower, the Loans, the Term Loans, the cash proceeds of any Restricted Payments permitted by Section 6.08 and cash contributions received from the holders of Equity Interest of Holdings provided that such
contributions shall be immediately contributed to the Borrower) or incur any liabilities (other than liabilities under the Loan Documents, liabilities under the Term Facility, liabilities pursuant to the Indemnification Agreements, liabilities
reasonably incurred in connection with its maintenance of its existence, nonconsensual obligations imposed by law and obligations with respect to its Equity Interests (including related to its Equity Interests being publicly traded and pursuant to
its stockholders’ agreement)). 
 SECTION
6.04        Investments, Loans, Advances, Guarantees and Acquisitions.    No Loan Party will, nor will it permit any Restricted Subsidiary to, purchase, hold or acquire any capital
stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit (whether through purchase of assets, merger or
otherwise), except: 
 (a)        Permitted Investments; 

(b)        investments in existence on the First Amendment Effective Date and
described in Schedule 6.04; 
 (c)        (i) investments by
Holdings in the Borrower and (ii) investments by the Borrower and the Restricted Subsidiaries in Equity Interests in their respective Restricted 

  
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Subsidiaries; provided that (A) any such Equity Interests held by a Loan Party shall be pledged pursuant to the ABL Loan Security Agreement (subject to the limitations
applicable to common stock of a foreign Restricted Subsidiary referred to in Section 5.13) and (B) the aggregate amount of investments by Loan Parties in Restricted Subsidiaries that are not Loan Parties (together with outstanding
intercompany loans permitted under clause (B) to the proviso to Section 6.04(d), outstanding Guarantees permitted under the proviso to Section 6.04(e), investments permitted under clause (i) of
Section 6.04 and investments permitted under clause (j) of Section 6.04) shall not exceed $1,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs); 

(d)        loans or advances made by the Borrower to any Restricted Subsidiary
and made by any Restricted Subsidiary to the Borrower or any other Restricted Subsidiary; provided that (A) any such loans and advances made by a Loan Party shall be evidenced by a promissory note pledged pursuant to the ABL Loan
Security Agreement and (B) the amount of such loans and advances made by Loan Parties to Restricted Subsidiaries that are not Loan Parties (together with outstanding investments permitted under clause (B) to the proviso to
Section 6.04(c), outstanding Guarantees permitted under the proviso to Section 6.04(e), investments permitted under clause (i) of Section 6.04 and investments permitted under clause (j) of
Section 6.04(c)) shall not exceed $1,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs); 
 (e)        Guarantees constituting Indebtedness permitted by Section 6.01; provided that the aggregate principal amount of
Indebtedness of Restricted Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party (together with outstanding investments permitted under clause (B) to the proviso to Section 6.04(c), outstanding intercompany
loans permitted under clause (B) to the proviso to Section 6.04(d), investments permitted under clause (i) of Section 6.04 and investments permitted under clause (j) of Section 6.04) shall
not exceed $10,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs); 
 (f)        loans or advances made by a Loan Party to its employees on an arms-length basis in the ordinary course of business consistent with past practices
(including for travel and entertainment expenses, relocation costs and similar purposes) up to a maximum aggregate amount of $1,000,000 for the Loan Parties taken as a whole; 

(g)        (i) extensions of trade credit in the ordinary course of business and
(ii) subject to Sections 4.2(a) and 4.4 of the ABL Loan Security Agreement, notes payable, or stock or other securities issued by Account Debtors to a Loan Party pursuant to negotiated agreements with respect to settlement of such Account
Debtor’s Accounts and Credit Card Account Receivables in the ordinary course of business, consistent with past practices; 
 (h)        investments in the form of Swap Agreements permitted by Section 6.07; 

(i)        investments of any Person existing at the time such Person becomes a
Restricted Subsidiary of the Borrower or consolidates or merges with the Borrower or any of the Restricted Subsidiaries (including in connection with a Permitted Acquisition) so long as such investments were not made in contemplation of such Person
becoming a Restricted Subsidiary or 

  
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of such merger; provided that the amount of such investments (together with outstanding investments permitted under clause (B) to the proviso to Section 6.04(c),
outstanding intercompany loans permitted under clause (B) to the proviso to Section 6.04(d), outstanding Guarantees permitted under the proviso to Section 6.04(e) and outstanding investments permitted under clause
(j) of Section 6.04) shall not exceed $1,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs); 

(j)        investments received in connection with the dispositions of assets
permitted by Section 6.05; provided that the amount of such investments (together with outstanding investments permitted under clause (B) to the proviso to Section 6.04(c), outstanding intercompany loans
permitted under clause (B) to the proviso to Section 6.04(d), outstanding Guarantees permitted under the proviso to Section 6.04(e) and outstanding investments permitted under clause (i) of Section 6.04)
shall not exceed $1,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs); and 
 (k)        investments constituting deposits described in clauses (c) and (d) of the definition of the term “Permitted Encumbrances”;

 (l)        any customary “bad acts” guarantee issued by
any Loan Party in connection with Indebtedness in respect of any Real Property owned by the Unrestricted Subsidiary; 
 (m)        the purchase or other acquisition by the Borrower or any of its Restricted Subsidiaries of all of the Equity Interests in any Person that upon
consummation thereof will be wholly owned, directly or indirectly, by the Borrower (including as a result of a merger or consolidation), or the purchase or other acquisition by the Borrower or any of its Restricted Subsidiaries of all or
substantially all of the property and assets of any Person or a division or business unit of any Person; provided that (i) such purchase or other acquisition described in this Section 6.04(m) occurs after the first
anniversary of the First Amendment Effective Date, (ii) the lines of business of the Person to be (or the property and assets of which are to be) so purchased or otherwise acquired shall be substantially the same lines of business as those of
the Borrower and its Restricted Subsidiaries or reasonably related thereto, (iii) the total cash consideration paid by or on behalf of the Borrower and its Restricted Subsidiaries for any such purchase or acquisition, when aggregated with the
total cash consideration paid by or on behalf of the Borrower and its Restricted Subsidiaries for all other purchases and acquisitions made pursuant to this Section 6.04(m), shall not exceed $50,000,000, (iv) immediately before and
immediately after giving pro forma effect to any such purchase or acquisition, no Event of Default shall have occurred and be continuing, (v) immediately after giving pro forma effect to any such purchase or acquisition, the
Borrower shall be in compliance with Section 6.16, and (vi) at least five Business Days prior to the date upon which any such purchase or acquisition is to be consummated, the Borrower shall have delivered to the ABL Administrative
Agent and the Supplemental Term Agent a certificate of a Financial Officer certifying that all the requirements set forth in this Section 6.04(m) have been satisfied or will be satisfied on or prior to the consummation of such purchase
or acquisition; 

  
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 (n)        investments made from
and after the first anniversary of the First Amendment Effective Date with the proceeds of equity issuances in an aggregate amount not to exceed $1,000,000; 
 (o)        in addition to investments, loans and advances otherwise expressly permitted pursuant to this Section 6.04, investments, loans and advances
by the Borrower or any of its Restricted Subsidiaries in an aggregate amount (valued at cost) not to exceed during the term of this Agreement $1,000,000 plus an amount equal to any returns of capital actually received in cash in respect of any such
investments (which amount shall not exceed the amount of such investment valued at cost at the time such investment was made); 
 (p)        any investment not otherwise permitted by this Section 6.04; provided that (i) such investment is made after the first
anniversary of the First Amendment Effective Date, (ii) no Event of Default exists or would arise therefrom, and (iii) the ABL Administrative Agent has determined that the actual average monthly Combined Availability, calculated after
giving pro forma effect to the proposed investment as if made on the first day of such six (6) month period, during the six (6) months prior to such investment, and at the time of and immediately after making such investment (calculated
after giving pro forma effect to the proposed investment), is greater than the Applicable Covenant Percentage of the Maximum Combined Availability. 
 SECTION 6.05        Asset Sales.    No Loan Party will, nor will it permit any Restricted Subsidiary to, sell, transfer, lease or
otherwise dispose of any asset, including any Equity Interest owned by it, nor will the Borrower permit any Restricted Subsidiary to issue any additional Equity Interest in such Restricted Subsidiary (other than to the Borrower or another Restricted
Subsidiary in compliance with Section 6.04), except: 

(a)        sales, transfers and dispositions of (i) Inventory in the
ordinary course of business, (ii) used, obsolete, worn out or surplus equipment or property in the ordinary course of business, and (iii) Inventory and equipment not in the ordinary course of business in connection with store closings;
provided that all sales of Inventory and equipment in connection with store closings shall be in accordance with liquidation agreements and with professional liquidators reasonably acceptable to the ABL Administrative Agent and the
Supplemental Term Agent; provided, further, that all Net Proceeds received in connection therewith are applied to the Obligations in accordance with Section 2.11(c); 

(b)        sales, transfers and dispositions to the Borrower or any Restricted
Subsidiary, provided that any such sales, transfers or dispositions involving a Restricted Subsidiary that is not a Loan Party shall be made in compliance with Section 6.10; 

(c)        sales, transfers and dispositions of accounts receivable in
connection with the compromise, settlement or collection thereof; 

(d)        sales, transfers and dispositions of investments permitted by
clauses (j) and (k) of Section 6.04; 

(e)        sale and leaseback transactions permitted by
Section 6.06; 

  
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 (f)        dispositions resulting
from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of the Borrower or any Restricted Subsidiary; 

(g)        licensing and cross-licensing arrangements entered into in the
ordinary course of business involving any technology or other intellectual property of the Borrower or any Restricted Subsidiary; 
 (h)        (i) dispositions of Permitted Investments for fair market value and (ii) leases and subleases not materially interfering with the ordinary course of
business; and 
 (i)        sales, transfers and other dispositions of
assets (other than (x) Supplemental Term Priority Collateral and (y) Equity Interests in a Restricted Subsidiary, unless in the case of this clause (y) all Equity Interests in such Restricted Subsidiary are sold) that are not
permitted by any other clause of this Section; provided that the aggregate fair market value of all assets sold, transferred or otherwise disposed of in reliance upon this clause (i) shall not exceed $20,000,000 during any fiscal
year of the Borrower or $75,000,000 during the term of this Agreement; 
 provided that all sales, transfers,
leases and other dispositions permitted hereby (other than those permitted by clauses (b), (f), (g), and (h)(ii) above) shall be made for fair value and for at least 75% cash consideration. 

SECTION 6.06        Sale and Leaseback
Transactions.    No Loan Party will, nor will it permit any Restricted Subsidiary to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred, except (i) for any such
sale of any fixed or capital assets by the Borrower or any Restricted Subsidiary that is made for cash consideration in an amount not less than the fair value of such fixed or capital asset and is consummated within 180 days after the Borrower
or such Restricted Subsidiary acquires or completes the construction of such fixed or capital asset, and (ii) with respect to any sale-leaseback transaction described in clause (i) above pertaining to Real Property, upon the ABL
Administrative Agent’s request, the ABL Administrative Agent shall have received from each such purchaser or transferee a Collateral Access Agreement on terms and conditions reasonably satisfactory to the ABL Administrative Agent and the
Supplemental Term Agent. 
 SECTION 6.07        Swap
Agreements.    No Loan Party will, nor will it permit any Restricted Subsidiary to, enter into any Swap Agreement or any speculative transaction except (a) Swap Agreements entered into to hedge or mitigate risks to which
the Borrower or any Restricted Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Restricted Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Restricted Subsidiary, in each case for the sole
purpose of hedging in the ordinary course of business. 

  
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 SECTION 6.08        Restricted
Payments; Certain Payments of Indebtedness. 
 (a)        No Loan
Party will, nor will it permit any Restricted Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, or to make, or agree to make any redemptions or repurchases with respect to its capital stock, or
incur any obligation (contingent or otherwise) to do so, except: (i) each of Holdings and the Borrower may make Restricted Payments and/or redemptions or repurchases with respect to its common Equity Interests payable solely in additional
shares of its common Equity Interests, and, with respect to its preferred Equity Interests, payable solely in additional shares of such preferred Equity Interests or in shares of its common Equity Interests; (ii) Restricted Subsidiaries may
declare and pay dividends ratably with respect to their Equity Interests; (iii) each of Holdings and the Borrower may make Restricted Payments and/or redemptions or repurchases with respect to its common Equity Interests, not exceeding
$5,000,000 during any fiscal year, pursuant to and in accordance with stock option plans or other benefit plans for management or employees of Holdings, the Borrower and its Restricted Subsidiaries; (iv) each of Holdings and the Borrower may
pay dividends or make distributions to the Persons holding its Equity Interests in an aggregate amount such that such Persons may pay (x) franchise taxes and other fees, taxes and expenses to maintain their legal existence and (y) federal,
state and local income taxes to the extent attributable to Holdings and its Subsidiaries or to the Borrower and its Subsidiaries as the case may be, provided that in all events the amounts paid pursuant to clause (y) shall be
amounts sufficient to pay the direct obligations of such Persons for such taxes and obligations of the Borrower and Holdings under the Tax Sharing Agreement, provided, however, that (aa) the amounts paid under clause (y) shall not
exceed the amount that would be payable, on a consolidated or combined basis, were Holdings the common parent of a separate federal consolidated group or state combined group including the Borrower and its Subsidiaries and (bb) in the case of taxes
attributable to the Unrestricted Subsidiary, an amount equal to the amount of such tax payment has been received by the Borrower from the Unrestricted Subsidiary prior to such payment being made; and (v) so long as there exists no Event of
Default, each of Holdings and the Borrower may pay dividends or make distributions to the Persons holding its Equity Interests in an aggregate amount such that such Persons may pay officers, directors and corporate overhead expenses incurred in the
ordinary course of business up to a maximum aggregate amount of $2,500,000 in any fiscal year. 

(b)        No Loan Party will, nor will it permit any Restricted Subsidiary to,
make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of principal of or interest on any Indebtedness, or any payment or other distribution (whether
in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness (it being understood and agreed that neither
purchases by Holdings of the Term Loans under the Term Loan Agreement nor exchanges of Term Loans for Qualified Subordinated PIK Debt under the Term Loan Agreement shall constitute a payment or other distribution in respect of any Indebtedness for
purposes of this Section 6.08), except: 

(i)        voluntary prepayments of Indebtedness created under
the Loan Documents and the Term Loan Documents; provided that (x) no voluntary prepayments of principal may be made under the Term Loan Documents unless the Payment 

  
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Conditions and the Term Facility Payment Conditions have been satisfied, and (y) no payment of cash interest in respect of Qualified Subordinated PIK Debt may be made unless the Payment
Conditions have been satisfied; 
 (ii)        so long
as no Default has occurred and is continuing hereunder, payments of regularly scheduled interest and principal payments and any mandatory prepayments or redemptions, as and when due in respect of any Indebtedness, provided that (x) no
payments in respect of the Subordinated Indebtedness may be made to the extent prohibited by the subordination provisions thereof, and (y) no payments of principal under the Term Loan Documents upon maturity thereof may be made unless the
Payment Conditions and the Term Facility Payment Conditions have been satisfied; 

(iii)        refinancings of Indebtedness to the extent
permitted by Section 6.01; 

(iv)        payments or prepayments made with the proceeds of
equity issuances; and 
 (v)        payments of secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness. 
 (c)        In addition to Restricted Payments permitted under Section 6.08(a) and payments on or in respect of Indebtedness permitted under
Section 6.08(b), after the first anniversary of the First Amendment Effective Date, any Loan Party may make Restricted Payments and/or redemptions or repurchases with respect to its common Equity Interests and payments of or in respect
of Indebtedness if (i) no Event of Default exists or would arise therefrom, and (ii) the ABL Administrative Agent has determined that the average monthly Combined Availability, as projected on a pro-forma basis for the six (6) months
following and after giving effect to such Restricted Payment, will be greater than the Applicable Covenant Percentage of the Maximum Combined Availability. 
 SECTION 6.09        Change in Nature of Business. 
 (a)        In the case of Holdings, engage in any business or activity other than (i) the direct or indirect ownership of all outstanding Equity Interests in
the other Loan Parties, (ii) maintaining its corporate existence, (iii) participating in tax, accounting and other administrative activities as the parent of the consolidated group of companies, including the Loan Parties, (iv) the
execution and delivery of the Loan Documents to which it is a party and the performance of its obligations thereunder, and (v) activities incidental to the businesses or activities described in clauses (a) through (iv) of this
Section 6.09(a). 
 (b)        In the case of each of the
other Loan Parties, engage in any line of business substantially different from the business conducted by the Loan Parties and their Subsidiaries on the Effective Date or any business substantially related or incidental thereto. 

SECTION 6.10        Transactions with
Affiliates.    No Loan Party will, nor will it permit any Restricted Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions 

  
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with, any of its Affiliates, except: (a) transactions that (i) are in the ordinary course of business and (ii) are at prices and on terms and conditions not less favorable to the
Borrower or such Restricted Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties; (b) transactions between or among the Borrower and any Restricted Subsidiary that is a Loan Party not involving any other
Affiliate; (c) transactions otherwise permitted by this Agreement; (d) the payment of reasonable fees to directors of the Borrower or any Restricted Subsidiary who are not employees of the Borrower or any Restricted Subsidiary, and
compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrower or its Restricted Subsidiaries in the ordinary course of business; (e) any issuances of
securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans approved by the Borrower’s board of directors; (f) transactions
pursuant to the Master Operating Lease; and (g) the issuance of Qualified Subordinated PIK Debt in exchange for Term Loans pursuant to the Term Loan Agreement. 

SECTION 6.11        Restrictive Agreements.    No
Loan Party will, nor will it permit any Restricted Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon: (a) the ability of such
Loan Party or any of its Restricted Subsidiaries to create, incur or permit to exist any Lien upon any of its property or assets; or (b) the ability of any Restricted Subsidiary to pay dividends or other distributions with respect to any shares
of its capital stock or to make or repay loans or advances or to transfer any assets to the Borrower or any other Restricted Subsidiary or to Guarantee Indebtedness of the Borrower or any other Restricted Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the First Amendment Effective Date identified on
Schedule 6.11 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Restricted Subsidiary or substantially all its assets pending such sale, provided such restrictions and conditions apply only to the Restricted Subsidiary or such assets that is to be sold and such
sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only
to the property or assets securing such Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in leases or licenses restricting the assignment thereof, and (vi) the foregoing shall not apply to
(x) restrictions contained in assumed documents in connection with assumed Indebtedness incurred pursuant to Section 6.01(i), (y) restrictions contained in documents in connection with Indebtedness incurred pursuant to
Section 6.01(o), provided that such restrictions are no more onerous than market terms and conditions for such type of Indebtedness incurred at the time such Indebtedness is incurred, and provided in any case such subordination
provisions are on terms satisfactory to the ABL Administrative Agent and the Supplemental Term Agent and (z) the Term Loan Documents. 
 SECTION 6.12        Use of Proceeds.    No Loan Party shall use the proceeds of any Credit Extension, whether directly or indirectly, and
whether immediately, incidentally or ultimately, (a) to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund
Indebtedness 

  
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originally incurred for such purpose; or (b) for purposes other than those permitted under this Agreement. 

SECTION 6.13        Amendment of Material
Documents.    No Loan Party will, nor will it permit any Restricted Subsidiary to, amend, modify or waive any of its rights under (i) any agreement relating to any Subordinated Indebtedness, (ii) its certificate of
incorporation, by-laws, operating, management or partnership agreement or other organizational documents, or (iii) the Master Operating Lease, in each case to the extent any such amendment, modification or waiver would reasonably be expected to
be materially adverse to the Lenders. 
 SECTION
6.14        Accounting; Fiscal Year.    Neither Holdings nor the Borrower shall, nor shall they permit any Restricted Subsidiary of the Borrower to, change its (a) accounting
treatment and reporting practices or tax reporting treatment, except as required by GAAP or any Requirement of Law and disclosed to the ABL Administrative Agent and the Supplemental Term Agent and provided that any such changes are reconciled
against the accounting treatment and reporting practices or tax reporting treatment used by such entity at the date of this Agreement or (b) fiscal year. 
 SECTION 6.15        Margin Regulations.    Neither Holdings nor the Borrower shall, nor shall they permit any Restricted Subsidiary of
the Borrower to, use all or any portion of the proceeds of any credit extended hereunder to purchase or carry margin stock (within the meaning of Regulation U of the Federal Reserve Board) in contravention of Regulation U of the Federal Reserve
Board. 
 SECTION 6.16        Excess
Availability.    The Borrower shall at all times maintain Revolving Availability equal to or greater than the greater of (a) thirteen and three-tenths percent (13.3%) of Maximum Revolving Availability, and
(b) $16,000,000. 
 ARTICLE VII 
 Events of Default 
 If any of the following events
(“Events of Default”) shall occur: 
 (a)        the
Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise; or 
 (b)        the Borrower shall fail to pay any interest
on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article VII) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied
for a period of three Business Days; or 
 (c)        any
representation or warranty made or deemed made by or on behalf of any Loan Party or any Restricted Subsidiary in or in connection with this Agreement or any Loan Document or any amendment or modification thereof or waiver thereunder, or in any
report, certificate, financial statement or other document furnished pursuant to or in connection with this 

  
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Agreement or any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been materially incorrect when made or deemed made; or 

(d)        any Loan Party shall fail to observe or perform (i) any
covenant, condition or agreement contained in Sections 5.01(h), 5.02(a), 5.03 (with respect to a Loan Party’s existence), 5.10, 5.14 (except to the extent that such failure to observe or perform the
obligations set out in Section 5.14 relates solely to an error in the transmission of funds or to other ordinary course of business cash management issues and where such default or breach is rectified within two (2) Business Days of
any Loan Party becoming aware of such failure to observe or perform), 5.16 (except as provided in clause (a) thereof) or Article VI, (ii) any covenant, condition or agreement contained in clauses (a),
(b), (c), (d), (e) or (f) of Section 5.01, or Section 5.02(h) and such failure shall continue unremedied for a period of five (5) days after the earlier of such breach or
notice thereof from the ABL Administrative Agent or the Supplemental Term Agent (which notice will be given at the request of any Lender), or (ii) any covenant, condition or agreement contained in this Agreement not described in clauses
(i) or (ii) above and such failure shall continue unremedied for a period of thirty (30) days after the earlier of such breach or notice thereof from the ABL Administrative Agent or the Supplemental Term Agent (which notice will be
given at the request of any Lender); or 
 (e)        any Loan Party or
any Subsidiary of the Borrower shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise); or 

(f)        any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf
to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; or 

(g)        an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or any Subsidiary of any Loan Party or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or any Subsidiary of any Loan Party or for a
substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or 

(h)        any Loan Party or any Subsidiary of any Loan Party shall
(i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (g) of this Article VII, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for such Loan Party or Subsidiary of any Loan Party or for a substantial part of its assets, 

  
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(iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the foregoing; or 

(i)        (i) any Loan Party or any Subsidiary of any Loan Party shall become
unable, admit in writing its inability or fail generally to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (ii) the fair value of the assets of any Loan Party or
any Subsidiary of any Loan Party, at a fair valuation, shall exceed such Loan Party’s or Subsdiary’s debts and liabilities, subordinated, contingent or otherwise, (iii) the present fair saleable value of the property of any Loan Party
or any Subsidiary of any Loan Party shall be less than the amount that will be required to pay the probable liability of such Loan Party’s or Subsidiary’s debts and other liabilities, subordinated, contingent or otherwise, as such debts
and other liabilities become absolute and matured, (iv) any Loan Party or any Subsidiary of any Loan Party shall have unreasonably small capital with which to conduct the business in which it is engaged as such business is conducted and is
proposed to be conducted after the First Amendment Effective Date; or 

(j)        one or more judgments for the payment of money in each case an
aggregate amount in excess of $15,000,000 (not covered by insurance as to which the insurer has been notified and has not denied coverage) shall be rendered against any Loan Party, any Restricted Subsidiary of any Loan Party or any combination
thereof and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed or bonded pending appeal, or any Loan Party or any Restricted Subsidiary of any Loan Party shall
fail within thirty (30) days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not
stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings diligently pursued; or 
 (k)        an ERISA Event shall have occurred that individually or when taken together with any other ERISA Events that have occurred, is in excess of $5,000,000
and could reasonably be expected to have a Material Adverse Effect; or 

(l)        a Change in Control (or a “Change in Control” as such term
is defined in the Term Loan Agreement) shall occur; or 

(m)        the occurrence of (i) any material “default”, as
defined in any Loan Document (other than this Agreement) or the breach of any of the material terms or provisions of any Loan Document (other than this Agreement), which default or breach continues beyond any period of grace therein provided and
(ii) any other “default”, as defined in any Loan Document (other than this Agreement) or the breach of any other terms or provisions of any Loan Document (other than this Agreement), which default or default or breach continues
unremedied for a period of thirty (30) days; or 
 (n)        the
Loan Guaranty shall fail to remain in full force or effect or any action shall be taken to discontinue or to assert the invalidity or unenforceability of the Loan Guaranty, or any Loan Guarantor shall fail to comply with any of the terms or
provisions of the Loan 

  
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Guaranty to which it is a party, or any Loan Guarantor shall deny that it has any further liability under the Loan Guaranty to which it is a party, or shall give notice to such effect; or

 (o)        any Collateral Document shall for any reason fail to
create a valid and perfected first priority security interest in any Collateral purported to be covered thereby, except as permitted by the terms of any Loan Document, or any Collateral Document shall fail to remain in full force or effect or any
action shall be taken to discontinue or to assert the invalidity or unenforceability of any Collateral Document, or any Loan Party shall fail to comply with any of the terms or provisions of any Collateral Document; or 

(p)        any material provision of any Loan Document for any reason ceases to
be valid, binding and enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision
of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms); or 
 (q)        except as otherwise expressly permitted hereunder, (i) the Borrower shall suspend the operation of twenty percent (20%) or more of its store
locations for a period of time exceeding five (5) Business Days, or (ii) any Loan Party shall take any action, or shall make a determination, whether or not formally approved by such Loan Party’s management or board of directors, to
suspend the operation of its business in the ordinary course, liquidate all or a material portion of its assets or store locations, or employ an agent or other third party to conduct a program of closings, liquidations or
“Going-Out-Of-Business” sales of any material portion of its business; or 

(r)        the subordination provisions of the documents evidencing or governing
any Subordinated Indebtedness (the “Subordination Provisions”), or the Intercreditor Agreement, shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of
the applicable Subordinated Indebtedness or the Term Lenders, the Term Collateral Agent or the Term Administrative Agent, as applicable; or (ii) the Borrower or any other Loan Party shall, directly or indirectly, disavow or contest in any
manner (A) the effectiveness, validity or enforceability of any of the Subordination Provisions or the Intercreditor Agreement, (B) that the Subordination Provisions or the Intercreditor Agreement exist for the benefit of the Lender
Parties, or (C) that all payments of principal of or premium and interest on the applicable Subordinated Indebtedness or the Term Facility, as applicable, or realized from the liquidation of any property of any Loan Party, shall be subject to
any of the Subordination Provisions or the Intercreditor Agreement, as applicable; or 
 then, and in every such event (other
than an event with respect to the Borrower described in clause (g) or (h) of this Article VII), and at any time thereafter during the continuance of such event, with the consent of the Required Lenders, the ABL Administrative Agent
may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Revolving Commitments, and thereupon the Revolving Commitments
shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and
thereupon the principal of the Loans so declared to be due and payable, together with accrued interest 

  
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thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (g) or (h) of this Article VII, the Revolving Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrower. Upon the occurrence and the continuance of an Event of Default, the ABL Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights and remedies provided to the ABL
Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC. 
 Notwithstanding anything to the contrary contained herein, except as the Required Supplemental Term Lenders shall otherwise agree with respect to any action to be taken by the ABL Administrative Agent
pursuant to this paragraph, the ABL Administrative Agent shall demand payment of the Obligations and ABL Administrative Agent and Collateral Agent shall exercise all rights and remedies of the ABL Administrative Agent, the Supplemental Term Agent,
the Lenders and the Issuing Banks (collectively, the “Lender Parties”) under the Loan Documents or Requirements of Law, including, but not limited to, by suit in equity, action at law or other appropriate proceeding, and, if such
amount shall have become due, by declaration or otherwise, proceed to enforce the payment thereof or any other legal or equitable right of the Lender Parties, and commence and pursue such other Enforcement Actions as the ABL Administrative Agent in
good faith deems appropriate (x) with respect to Events of Default described in clauses (a) or (b) of this Article VII (in each case to the extent relating to payments in respect of the Supplemental Term Loan only) or clauses
(g) or (h) of this Article VII, promptly upon receipt of notice, or, with respect to the Supplemental Term Priority Collateral in connection with any such Event of Default, as directed by the Required Supplemental Term Lenders, and
(y) otherwise, within sixty (60) days after the date of the receipt by the ABL Administrative Agent of written notice executed and delivered by the Required Supplemental Term Lenders or by the Supplemental Term Agent on behalf of Required
Supplemental Term Lenders requesting that the ABL Administrative Agent commence Enforcement Actions (the “Term Loan Action Notice”), provided, that: 

(1)        such Event of Default has not been waived by the
applicable Lenders in accordance with Section 9.02, 

(2)        in the good faith determination of the ABL
Administrative Agent, taking an Enforcement Action is permitted under the terms of the Loan Documents and applicable Requirements of Law, 
 (3)        taking an Enforcement Action shall not result in any liability of the ABL Administrative Agent, the Supplemental Term Agent or the Lenders to any Loan
Party or any other person, 
 (4)        the ABL
Administrative Agent shall be entitled to all of the benefits of Sections 8.02, 8.03 and 8.10 hereof, and 

  
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 (5)        the ABL
Administrative Agent shall not be required to take an Enforcement Action so long as, within the period provided above, the ABL Administrative Agent shall, at its option, either 

(a)        appoint the Supplemental Term Agent, as an agent of
the ABL Administrative Agent for purposes of exercising the rights of the ABL Administrative Agent to take an Enforcement Action, subject to the terms hereof, or 

(b)        resign as ABL Administrative Agent, and the
Supplemental Term Agent shall automatically be deemed to be the successor ABL Administrative Agent hereunder and under the other Loan Documents for purposes hereof or thereof, except with respect to the provisions of Article II hereof and in
connection with all matters relating to the determination of the Revolving Borrowing Base, the Supplemental Term Borrowing Base and each of their respective components (including Eligible Credit Card Account Receivables, Eligible Inventory, Reserves
and receiving reports in respect of Collateral and conducting field examinations and appraisals with respect to the Collateral and similar matters). 
 Without limiting any rights the Agents, any Revolving Lender or any FILO Lender may otherwise have under applicable Requirements of Law or by agreement, in the event of any sale or other disposition
(including, without limitation, by means of a sale pursuant to Section 363 of the United States Bankruptcy Code) of the ABL Priority Collateral, the Agents or any other Person (including any Revolving Lender and any FILO Lender) acting with the
consent, or on behalf, of the ABL Administrative Agent, shall have the right during the Use Period, to use the Supplemental Term Priority Collateral, in order to assemble, inspect, copy or download information stored on, take actions to perfect its
Lien on, complete a production run of Inventory involving, take possession of, move, prepare and advertise for sale, sell (by public auction, private sale or a “going-out-of-business”, “store closing” or other similar sale,
whether in bulk, in lots or to customers in the ordinary course of business or otherwise, and which sale may include augmented inventory of the same type sold in any Loan Party’s business), store or otherwise deal with the ABL Priority
Collateral, in each case without the involvement of or interference by the Supplemental Term Agent or any Supplemental Term Lender or liability to the Supplemental Term Agent or any Supplemental Term Lender (other than as provided in clause
(iii) below). The Supplemental Term Agent may not sell, assign or otherwise transfer (or direct the Agents to take any such action) the related Supplemental Term Priority Collateral prior to the expiration of the Use Period, unless the
purchaser, assignee or transferee thereof agrees to be bound by the provisions of this paragraph. None of the Agents, the Revolving Lenders or the FILO Lenders shall be obligated to pay any rent, fee or other amounts to the Supplemental Term Agent
or the Supplemental Term Lenders (or any Person claiming by, through or under any of them, including any purchaser of the Supplemental Term Priority Collateral) or to the Loan Parties, for or in respect of the use by the Agents, the Revolving
Lenders and the FILO Lenders of the Supplemental Term Priority Collateral. The Agents, the Revolving Lenders and the FILO Lenders shall (i) use the Supplemental Term Priority Collateral in accordance with applicable Requirements of Law;
(ii) insure the Supplemental Term Priority Collateral for damage to property and liability to persons, including property and liability insurance for the benefit of the 

  
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Supplemental Term Agent (for itself and as agent for the Supplemental Term Lenders) and the Supplemental Term Agent shall be named as an additional insured and loss payee thereon; and
(iii) indemnify the Supplemental Term Agent and the Supplemental Term Lenders from any claim, loss, damage, cost or liability (including reasonable attorneys’ fees and expenses) arising from the Agents’, the Revolving Lenders’
and the FILO Lenders’ use of the Supplemental Term Priority Collateral (except for those arising from the gross negligence or willful misconduct of the Supplemental Term Agent or any Supplemental Term Lender). 

ARTICLE VIII 

The ABL Administrative Agent; The Supplemental Term Agent 

SECTION 8.01        Appointment of ABL Administrative Agent, Collateral Agent
and Supplemental Term Agent.    Each of the Lenders and each of the Issuing Banks hereby irrevocably appoints Wells Fargo as ABL Administrative Agent and authorizes the ABL Administrative Agent to take such actions on its
behalf, including execution of the other Loan Documents, and to exercise such powers as are delegated to the ABL Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.
Each of the Lenders hereby irrevocably appoints Wells Fargo as Collateral Agent for purposes of the perfection of all Liens created by the Loan Documents and all other purposes stated therein and authorizes the Collateral Agent to enter into and
exercise such powers as set forth in the Intercreditor Agreement. Each of the Supplemental Term Lenders hereby irrevocably appoints Wells Fargo as Supplemental Term Agent and authorizes the Supplemental Term Agent to take such actions on its behalf,
including execution of the other Loan Documents, and to exercise such powers as are delegated to the Supplemental Term Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto. 

The bank serving as the ABL Administrative Agent and/or the Supplemental Term Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the ABL Administrative Agent or the Supplemental Term Agent, as applicable, and such bank and its Affiliates may accept deposits from, lend
money to and generally engage in any kind of business with the Loan Parties or any Subsidiary of a Loan Party or other Affiliate thereof as if it were not the ABL Administrative Agent or the Supplemental Term Agent, as applicable, hereunder.

 SECTION 8.02        Limited
Duties.    Neither the ABL Administrative Agent nor the Supplemental Term Agent shall have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing,
(a) neither the ABL Administrative Agent nor the Supplemental Term Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) neither the ABL Administrative Agent
nor the Supplemental Term Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that the ABL Administrative Agent or the
Supplemental Term Agent, as applicable, is required to exercise in writing as directed by the Required Lenders, the Required Revolving Lenders, the Required FILO Lenders, or the Required Supplemental Term Lenders, as applicable (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, neither the ABL Administrative Agent nor the Supplemental Term
Agent shall have any duty to disclose, and shall not be liable for the failure 

  
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to disclose, any information relating to any Loan Party or any of its Subsidiaries that is communicated to or obtained by the bank serving as ABL Administrative Agent or Supplemental Term Agent,
as applicable, or any of their respective Affiliates in any capacity. Neither the ABL Administrative Agent nor the Supplemental Term Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Required
Lenders, the Required Revolving Lenders, the Required FILO Lenders, or the Required Supplemental Term Lenders, as applicable (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 9.02), or in the absence of its own gross negligence or willful misconduct. Neither the ABL Administrative Agent nor the Supplemental Term Agent shall be deemed to have knowledge of any Default unless and until written notice
thereof is given to the ABL Administrative Agent or the Supplemental Term Agent, as applicable, by the Borrower or a Lender. Neither the ABL Administrative Agent nor the Supplemental Term Agent shall be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or in connection with any Loan Document,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document, (v) the creation, perfection or priority of Liens on the Collateral or the existence of the Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere in any
Loan Document, other than to confirm receipt of items expressly required to be delivered to the ABL Administrative Agent or the Supplemental Term Agent, as applicable. 

SECTION 8.03        Reliance.     Each of the ABL
Administrative Agent and the Supplemental Term Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper Person. Each of the ABL Administrative Agent and the Supplemental Term Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person,
and shall not incur any liability for relying thereon. Each of the ABL Administrative Agent and the Supplemental Term Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by
it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
 SECTION 8.04        Delegation of Rights and Duties.     Each of the ABL Administrative Agent and the Supplemental Term Agent may perform
any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the ABL Administrative Agent or the Supplemental Term Agent, as applicable. Each of the ABL Administrative Agent, the Supplemental Term
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding clauses shall apply to any such sub-agent and to the Related
Parties of the ABL Administrative Agent, the Supplemental Term Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as ABL
Administrative Agent or Supplemental Term Agent, as applicable. 
 SECTION
8.05         Resignation of ABL Administrative Agent or Supplemental Term Agent. 

  
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 (a)        Subject to the
appointment and acceptance of a successor ABL Administrative Agent as provided in this clause, the ABL Administrative Agent may resign at any time by notifying the Lenders, the Supplemental Term Agent and the Borrower. Upon any such resignation, the
Required Lenders shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld), to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring ABL Administrative Agent gives notice of its resignation, then the retiring ABL Administrative Agent may, on behalf of the Lenders, appoint a successor ABL Administrative Agent which shall be a
commercial bank or an Affiliate of any such commercial bank. Upon the acceptance of its appointment as ABL Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring ABL Administrative Agent and the retiring ABL Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor ABL Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the ABL Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect
for the benefit of such retiring ABL Administrative Agent its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as ABL Administrative Agent. 

(b)        Subject to the appointment and acceptance of a successor Supplemental
Term Agent as provided in this clause, the Supplemental Term Agent may resign at any time by notifying the Supplemental Term Lenders, the ABL Administrative Agent and the Borrower. Upon any such resignation, the Required Supplemental Term Lenders
shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld) and after consultation with the ABL Administrative Agent, to appoint a successor. If no successor shall have been so appointed by the Required
Supplemental Term Lenders and shall have accepted such appointment within 30 days after the retiring Supplemental Term Agent gives notice of its resignation, then the retiring Supplemental Term Agent may, on behalf of the Supplemental Term
Lenders, appoint a successor Supplemental Term Agent which shall be a commercial bank or an Affiliate of any such commercial bank. Upon the acceptance of its appointment as Supplemental Term Agent hereunder by a successor, such successor shall
succeed to and become vested with all the rights, powers, privileges and duties of the retiring Supplemental Term Agent and the retiring Supplemental Term Agent shall be discharged from its duties and obligations hereunder. The fees payable by the
Borrower to a successor Supplemental Term Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Supplemental Term Agent’s resignation hereunder, the provisions of
this Article and Section 9.03 shall continue in effect for the benefit of such retiring Supplemental Term Agent its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them
while it was acting as Supplemental Term Agent. 
 SECTION
8.06        Lender Credit Decision.    Each Lender acknowledges that it has, independently and without reliance upon the ABL Administrative Agent, the Supplemental Term Agent or any
other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the
ABL Administrative Agent, the Supplemental Term Agent or any other Lender and based on such documents and 

  
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information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or thereunder. 
 SECTION
8.07        Reports.     Each Lender hereby agrees that: (a) it has requested a copy of each Report prepared by or on behalf of the ABL Administrative Agent or the Supplemental
Term Agent; (b) it has requested a copy of all financial statements and projections required to be delivered by the Borrower hereunder; (b) neither the ABL Administrative Agent nor the Supplemental Term Agent (i) makes no
representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a Report and (ii) shall not be liable for any
information contained in any Report; (c) the Reports are not comprehensive audits or examinations, and that any Person performing any field examination will inspect only specific information regarding the Loan Parties and will rely
significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel and that neither the ABL Administrative Agent nor the Supplemental Term Agent undertakes any obligation to update, correct
or supplement the Reports; (d) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party or any other Person except as otherwise permitted pursuant to this Agreement; and (e) without
limiting the generality of any other indemnification provision contained in this Agreement, it will pay and protect, and indemnify, defend, and hold the ABL Administrative Agent, the Supplemental Term Agent and any such other Person preparing a
Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorney fees) incurred by any such Person as the direct or indirect result of any third parties who might obtain
all or part of any Report through the indemnifying Lender. 
 SECTION
8.08        Syndication Agent and Arrangers.    The Syndication Agent and the Arrangers shall not have any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such, except for the rights of the Syndication Agent to the fees in accordance with Section 2.12(b) hereof. 

SECTION 8.09        Defaulting Lenders. 

(a)        [RESERVED] 

(b)        The non-Defaulting Lenders shall also have the right, but not the
obligation, in their respective, sole and absolute discretion, to cause the termination and assignment, without any further action by the Defaulting Lender for no cash consideration (pro rata, based on the respective Revolving Commitments of
those Lenders electing to exercise such right), of the Defaulting Lender’s Revolving Commitment to fund future Loans. Upon any such purchase of the Applicable Percentage of any Defaulting Lender, the Defaulting Lender’s share in future
Loans and Letters of Credit and its rights under the Loan Documents with respect thereto shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such
interest, including, if so requested, an Assignment and Assumption. 

  
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 (c)        In addition to the
rights of the non-Defaulting Lenders set forth in Section 8.09(b) above, the Borrower shall have the right, at any time, upon notice to a Defaulting Lender or a Deteriorating Lender and the ABL Administrative Agent, to replace such
Defaulting Lender or Deteriorating Lender in accordance with the provisions of Section 2.19(b) hereof. 
 (d)        Each Defaulting Lender shall indemnify the ABL Administrative Agent and each non-Defaulting Lender from and against any and all loss, damage or expenses,
including, but not limited to, reasonable attorneys’ fees and funds advanced by the ABL Administrative Agent or by any non-Defaulting Lender, on account of a Defaulting Lender’s failure to timely fund its Applicable Percentage of a Loan or
to otherwise perform its obligations under the Loan Documents. 
 SECTION
8.10        Indemnification of Agents and Supplemental Term Agent.    The Lenders agree to indemnify each of the ABL Administrative Agent, the Supplemental Term Agent and the
Collateral Agent in its capacity as such, and each Related Party of any of the foregoing Persons (to the extent not reimbursed by the Loan Parties and without limiting the obligation of the Loan Parties to do so), ratably according to their
respective Applicable Percentages in effect on the date on which indemnification is sought under this Section 8.10 (or, if indemnification is sought after the date upon which the Revolving Commitment of any Lender shall have terminated
and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentages immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against the ABL Administrative Agent, the Supplemental Term Agent or the Collateral Agent
in any way relating to or arising out of, the Revolving Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by such Agent or the Supplemental Term Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the ABL Administrative Agent’s, the Supplemental Term
Agent’s or the Collateral Agent’s gross negligence or willful misconduct. The agreements in this Section 8.10 shall survive the payment of the Loans and all other amounts payable hereunder. 

ARTICLE IX 

Miscellaneous 
 SECTION 9.01        Notices. 
 (a)        All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile, as follows: 

  
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	 	(i)	 if to any Loan Party, to the Borrower at: 

Orchard Supply Hardware LLC 
 6450 Via Del Oro 
 San Jose, CA 95119 

Attention: Chief Executive Officer and Chief Financial Officer 

Facsimile No: (408) 629-7174 

E-mail: chris.newman@osh.com 
  

	 	(ii)	 if to the ABL Administrative Agent, the Collateral Agent, Wells Fargo or the Swingline Lender, to Wells Fargo at: 

Wells Fargo Bank, National Association 

One Boston Place, 18th Floor 
 Boston, MA 02108 
 Attention: Jason Searle 

Facsimile No.: (855) 766-9554 

E-mail: jason.searle@wellsfargo.com 

with copy to: 
 Riemer & Braunstein LLP 
 Three Center Plaza 

Boston, Massachusetts 02108 
 Attention: Donald E. Rothman, Esquire 
 Facsimile No.:
(617) 692-3556 
 E-mail: drothman@riemerlaw.com 

 

	 	(iii)	 if to the Supplemental Term Agent, to Wells Fargo at: 

Wells Fargo Bank, National Association 

One Boston Place, 18th Floor 
 Boston, MA 02108 
 Attention: Christian West 

Facsimile No.: (887) 474-3331 

E-mail: christian.c.west@wellsfargo.com 

with copy to: 
 Greenberg Traurig, LLP 
 One International Place 

Boston, Massachusetts 02110 
 Attention: Jeffrey M. Wolf, Esquire 
 Facsimile No.:
(617) 279-8447 
 E-mail: wolfje@gtlaw.com 

  
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	 	(iv)	 if to any other Lender or Issuing Bank, to it at its address or facsimile number set forth in its Administrative Questionnaire.

 All such notices and other communications (i) sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received or (ii) sent by facsimile shall be deemed to have been given when sent, provided that if not given during normal business hours for the recipient, such notice
shall be deemed to have been given at the opening of business on the next Business Day for the recipient. 

(b)        Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications (including e-mail and internet or intranet websites) pursuant to procedures approved by the ABL Administrative Agent or, with respect to notices or communications to the Supplemental Term Lenders,
the Supplemental Term Agent; provided that the foregoing shall not apply to notices pursuant to Article II or to compliance and no Event of Default certificates delivered pursuant to Section 5.01(e) unless otherwise agreed
by the applicable Lender and the ABL Administrative Agent or the Supplemental Term Agent, as applicable. The ABL Administrative Agent, the Supplemental Term Agent or the Borrower (on behalf of the Loan Parties) may, in its discretion, agree to
accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. All such notices and
other communications (i) sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgement), provided that if not given during the normal business hours of the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day for
the recipient, and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (b)(i) of notification that such notice or
communication is available and identifying the website address therefor. 

(c)        Any party hereto may change its address or facsimile number for
notices and other communications hereunder by notice to the other parties hereto. 
 SECTION
9.02        Waivers; Amendments. 

(a)        No failure or delay by the ABL Administrative Agent, the Supplemental
Term Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing
Banks and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan
Party therefrom shall in any event be effective unless the same shall be permitted by clause (b) of this Section 9.02, and then such waiver or consent shall be effective only in the specific instance

  
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and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default,
regardless of whether the ABL Administrative Agent, the Supplemental Term Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time. 

(b)        Neither this Agreement nor any other Loan Document nor any provision
hereof or thereof may be waived, amended or modified except (1) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or, (2) in the case of any other Loan
Document, pursuant to an agreement or agreements in writing entered into by the ABL Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the consent of the Required Lenders; provided that no such agreement
described in clauses (1) or (2) above shall: 

(i)        increase the Revolving Commitment of any Lender
without the written consent of such Lender (provided that the ABL Administrative Agent may make Protective Advances as set forth in Section 2.04), 

(ii)        increase the principal amount of the Supplemental
Term Loan without the written consent of the Required Revolving Lenders, 

(iii)        reduce or forgive the principal amount of any Loan
or LC Disbursement or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable hereunder, without the written consent of each Lender directly affected thereby, 

(iv)        postpone the Revolving Credit Termination Date or
the scheduled date of expiration of any Revolving Commitment, without the written consent of each Lender directly affected thereby and the Required Supplemental Term Lenders, 

(v)        postpone any scheduled date of payment of the
principal amount of any Loan or LC Disbursement, or any date for the payment of any interest, fees or other Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment, without the written consent of each Lender directly
affected thereby, 
 (vi)        as to any Lender,
change Section 2.18(b) or 2.18(d) in a manner that would alter the manner in which payments are shared, without the written consent of such Lender, 

(vii)        change any of the provisions of this Section or the
definition of “Required Lenders”, “Required Revolving Lenders”, “Required FILO Lenders”, “Required Supplemental Term Lenders”, or “Supermajority Revolving Lenders” or any other provision of any Loan
Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender included
in any such definition, 
 (viii)        increase the
advance rates set forth in the definition of “Supplemental Term Borrowing Base” or add new categories of eligible assets to the 

  
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Supplemental Term Borrowing Base, without the written consent of the Required Supplemental Term Lenders, 

(ix)        release all or substantially all of the Loan
Guarantors from their obligations under the Loan Guaranty (except as otherwise permitted herein or in the other Loan Documents), or amend the definitions of “ABL Priority Collateral” or “Supplemental Term Priority Collateral”, in
each case without the written consent of each Lender, 

(x)        except as provided in clause (c) of this Section
or in any Collateral Document, release all or substantially all of the Collateral, without the written consent of each Lender; provided that, (x) in connection with an Enforcement Action with respect to any ABL Priority Collateral, or a
sale or other disposition of any ABL Priority Collateral with the written consent of the Required Revolving Lenders other than pursuant to an Enforcement Action but after the occurrence and during the continuance of an Event of Default, then such
ABL Priority Collateral may be released solely with the written consent of the Required Revolving Lenders, and (y) in connection with an Enforcement Action with respect to any Supplemental Term Priority Collateral, or a sale or other
disposition of any Supplemental Term Priority Collateral with the written consent of the Required Supplemental Term Lenders other than pursuant to an Enforcement Action but after the occurrence and during the continuance of an Event of Default, then
such Supplemental Term Priority Collateral may be released solely with the written consent of the Required Supplemental Term Lenders, 
 (xi)        increase the rate of interest applicable to: 
 (A)        the ABL Revolving Loans and the Swingline Loans (other than as a result of an increase in accordance with Section 2.13(e)) by more than two
percent (2.0%) without the written consent of the Required FILO Lenders and the Required Supplemental Term Lenders; 
 (B)        the FILO Term Loan (other than as a result of an increase in accordance with Section 2.13(e)) by more than two percent (2.0%) without
the written consent of the Required Revolving Lenders and the Required Supplemental Term Lenders; or 
 (C)        the Supplemental Term Loan (other than as a result of an increase in accordance with Section 2.13(e)) by more than two percent
(2.0%) without the written consent of the Required Revolving Lenders and the Required FILO Lenders; 
 (xii)        without the consent of the Required Revolving Lenders, the Required FILO Lenders and the Required Supplemental Term Lenders: 

(A)        amend Section 2.22 in a manner that
would increase the amount of any Commitment Increases available thereunder; 

  
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 (B)        amend
Section 2.04, 5.01, 5.02, 5.05, 5.06, 5.09, 5.10, 5.11, 5.12, 5.14, 5.15, any provisions of Article VI, or Article VII, or Section 9.03;

 (C)        amend the definitions of
“Accelerated Reporting Event”, “Adjusted LIBO Rate” (as to clause (b) of such definition only), “Applicable Percentage”, “Availability Reserves”, “Approved Fund”, “Bank Product
Reserves”, “Bank Products” (or any defined term included therein), “Cash Dominion Period”, “Change in Control”, “Combined Availability”, “Enforcement Action”, “Event of Default”,
“Excess Availability”, “First Amendment Effective Date”, “Interest Payment Date”, “LIBO Rate”, “Material Adverse Effect”, “Material Contract”, “Material Indebtedness”,
“Maximum Combined Availability”, “Maximum Revolving Availability”, “Net Orderly Liquidation Value”, “Net Proceeds”, “Permitted Encumbrances”, “Permitted Holders”, “Permitted
Investments”, “Restricted Payments”, “Reserves” (or any defined term included therein), “Revolving Availability”, “Supplemental Term Action Notice”, “Payment Conditions”, “Prepayment
Event”, “Supplemental Term Reserve”, “Term Facility Payment Conditions”, or “Use Period”; provided that the foregoing requirements with respect to amendments to the definitions of “Availability
Reserves”, “Bank Product Reserves”, “Reserves” (or any defined term included therein), or “Supplemental Term Reserve” shall not limit the discretion of the ABL Administrative Agent to change, establish or eliminate
any Reserves, so long as the methodology used in determining or changing any such Reserves is consistent with the methodology used by the ABL Administrative Agent on the First Amendment Effective Date; or 

(xiii)        without the consent of the Supermajority Revolving
Lenders, the Required FILO Lenders and the Required Supplemental Term Lenders: 

(A)        increase the advance rates set forth in the
definition of “Revolving Borrowing Base” or add new categories of eligible assets to the Revolving Borrowing Base; provided that the foregoing shall not limit the discretion of the ABL Administrative Agent to change, establish or
eliminate any Reserves, so long as the methodology used in determining or changing any such Reserves is consistent with the methodology used by the ABL Administrative Agent on the First Amendment Effective Date; or 

(B)        amend the definitions of “Eligible
Inventory” or “Eligible Credit Card Account Receivables”; provided that the foregoing shall not limit the ability of the ABL Administrative Agent to change or establish any eligibility criteria in the exercise of its Permitted
Discretion as provided in the definitions of “Eligible Inventory” and “Eligible Credit Card Account Receivables”, so long as the methodology used in determining or changing any such criteria is consistent with the methodology
used by the ABL Administrative Agent on the First Amendment Effective Date; or 
 provided further that no such agreement
shall amend, modify or otherwise affect the rights or duties of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Bank or the 

  
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Swingline Lender hereunder without the prior written consent of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Bank or the Swingline Lender, as the case may be. The ABL
Administrative Agent and the Supplemental Term Agent may also amend the Commitment Schedule to reflect assignments entered into pursuant to Section 9.04. 

(c)        The Lenders hereby irrevocably authorize the ABL Administrative
Agent, at its option and in its sole discretion, to release any Loan Guarantor or any Liens granted to the ABL Administrative Agent by the Loan Parties on any Collateral (i) upon the termination of all Revolving Commitments, payment and
satisfaction in full in cash of all Secured Obligations (other than Unliquidated Obligations), and the Cash Collateralization of all Unliquidated Obligations in a manner satisfactory to the ABL Administrative Agent and the Issuing Banks,
(ii) constituting property being sold or disposed of if such sale or disposition is made in compliance with the terms of this Agreement, (iii) constituting property leased to a Loan Party under a lease which has expired or been terminated
in a transaction permitted under this Agreement, or (iv) as required to effect any sale or other disposition of such Collateral in connection with any exercise of remedies of the ABL Administrative Agent, the Supplemental Term Agent and the
Lenders pursuant to Article VII. Except as provided in the preceding sentence or in Section 9.02, the ABL Administrative Agent will not release any Liens on Collateral without the prior written authorization of the Required
Lenders; provided that the ABL Administrative Agent may in its discretion, release its Liens on Collateral valued in the aggregate not in excess of $500,000 during any calendar year without the prior written authorization of the Required
Lenders. Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan
Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral. 

(d)        If, in connection with any proposed amendment, waiver or consent
requiring the consent of “each Lender,” or “each Lender affected thereby,” or “each Supplemental Term Lender,” or “each Revolving Lender”, the consent of the Required Lenders (or the Required Revolving
Lenders, the Required FILO Lenders, or the Required Supplemental Term Lenders, as applicable) is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to
herein as a “Non-Consenting Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement; provided that, concurrently with such replacement, (i) another bank or other
entity which is reasonably satisfactory to the Borrower, the ABL Administrative Agent and, with respect to any Non-Consenting Lender that is a Supplemental Term Lender, the Supplemental Term Agent, shall agree, as of such date, to purchase for cash
the Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of
such date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other
amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and
(2) an amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under 

  
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Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender. 

SECTION 9.03        Expenses; Indemnity; Damage Waiver. 

(a)        The Borrower and each other Loan Party shall jointly and severally
pay (i) all reasonable out-of-pocket expenses incurred by the ABL Administrative Agent, the Supplemental Term Agent and their respective Affiliates, including the reasonable fees, charges and disbursements of one primary counsel and one local
counsel in each relevant jurisdiction for each of the ABL Administrative Agent and the Supplemental Term Agent, in connection with the syndication and distribution (including, without limitation, via the internet or through a service such as
Intralinks) of the credit facilities provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions of the Loan Documents (whether or not the transactions contemplated
hereby or thereby shall be consummated), and the creation, perfection or protection of the Liens under the Loan Documents, (ii) all reasonable out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all reasonable out-of-pocket expenses incurred by the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender, including the
reasonable fees, charges and disbursements of any counsel for the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender, in connection with the enforcement, collection or protection of its rights in connection with
the Loan Documents, including its rights under this Section 9.03, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit. Expenses being reimbursed by the Borrower under this Section include, without limiting the generality of the foregoing, costs and expenses incurred in connection with: 

(i)        appraisals; 

(ii)        field examinations and the preparation of Reports
based on the fees charged by a third party retained by the ABL Administrative Agent or the Supplemental Term Agent and reasonably acceptable to the Borrower or the internally allocated per diem fees for each Person employed by the ABL Administrative
Agent or the Supplemental Term Agent with respect to each field examination, together with the reasonable fees and expenses associated with collateral monitoring services performed by the ABL Administrative Agent or the Supplemental Term Agent (and
the Borrower agrees to modify or adjust the computation of the Revolving Borrowing Base or the Supplemental Term Borrowing Base which may include maintaining additional Reserves, modifying the advance rates or modifying the eligibility criteria for
the components of the Revolving Borrowing Base or the Supplemental Term Borrowing Base to the extent required by the ABL Administrative Agent or the Supplemental Term Agent as a result of any such evaluation, appraisal or monitoring); 

(iii)        lien and title searches and title insurance;

  
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 (iv)        taxes,
fees and other charges for filing financing statements and continuations, and other actions to perfect, protect, and continue the Collateral Agent’s Liens; 

(v)        sums paid or incurred to take any action required of
any Loan Party under the Loan Documents that such Loan Party fails to pay or take; and 

(vi)        forwarding loan proceeds, collecting checks and
other items of payment, and establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving and protecting the Collateral. 
 All of the foregoing costs and expenses may be charged to the Borrower as ABL Revolving Loans or to another deposit account, all as described in Section 2.10(b). 

(b)        The Borrower shall indemnify the ABL Administrative Agent, each other
Agent, the Supplemental Term Agent, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and
all losses, claims, damages, penalties, liabilities and related expenses, including the 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 of the Loan Documents or any agreement or instrument contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any
other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability to the extent related in any way to the Borrower or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, 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 that such losses, claims, damages, penalties,
liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim
brought by the Borrower or any Guarantor against any Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder, if the Borrower or such Guarantor has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. 
 (c)        To the
extent that the Borrower fails to pay any amount required to be paid by it to the ABL Administrative Agent, any other Agent, the Supplemental Term Agent, any Issuing Bank or the Swingline Lender under clause (a) or (b) of this
Section 9.03, each Lender severally agrees to pay to the ABL Administrative Agent, such other Agent, the Supplemental Term Agent, such Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or 

  
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indemnified loss, claim, damage, penalty, liability or related expense, as the case may be, was incurred by or asserted against the ABL Administrative Agent, such other Agent, the Supplemental
Term Agent, such Issuing Bank or the Swingline Lender in its capacity as such. 

(d)        To the extent permitted by applicable law, no Loan Party shall
assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
 (e)        All amounts due under this Section 9.03 shall be payable promptly after written demand therefor. 

SECTION 9.04        Successors and Assigns. 

(a)        The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in clause (c) of this Section 9.04) and, to the extent expressly contemplated hereby, the Related
Parties of each of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

(b)        (i)    Subject to the conditions set forth in
clause (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld or delayed) of: 

(A)        the Borrower; provided that no consent
of the Borrower shall be required if (i) an Event of Default has occurred and is continuing or (ii) the assignment is to a Lender, an Affiliate of a Lender, or an Approved Fund; 

(B)        the ABL Administrative Agent; provided
that no consent of the ABL Administrative Agent shall be required for an assignment (i) to a Lender, an Affiliate of a Lender or an Approved Fund, or (ii) by a Supplemental Term Lender; 

(C)        solely with respect to assignments by Supplemental
Term Lenders, the Supplemental Term Agent; provided that no consent of the 

  
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Supplemental Term Agent shall be required for an assignment to a Lender, an Affiliate of a Lender or an Approved Fund; and 

(D)        each Issuing Bank; provided that no
consent of any Issuing Bank shall be required for an assignment (i) to a Lender, an Affiliate of a Lender or an Approved Fund, or (ii) by a FILO Lender or a Supplemental Term Lender. 

(ii)        Assignments shall be subject to the following
additional conditions: 
 (A)        no assignment may
be made to any of (i) Holdings, (ii) any Permitted Holder or (iii) any Affiliate of Holdings or any Permitted Holder; 
 (B)        except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the
assigning Lender’s Revolving Commitment or Loans of any Class, the amount of the Revolving Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the ABL Administrative Agent or the Supplemental Term Agent, as applicable) shall not be less than $5,000,000 (or, solely with respect to assignments by Supplemental Term Lenders, $2,500,000) unless each of the Borrower
and the ABL Administrative Agent or the Supplemental Term Agent, as applicable, otherwise consent; provided that no such consent of the Borrower shall be required if an Event of Default pursuant to clauses (a), (b), (g), (h), or
(i) of Article VII has occurred and is continuing; 

(C)        each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning
Lender’s rights and obligations in respect of one Class of Commitments or Loans; 

(D)        the parties to each assignment shall execute and
deliver to the ABL Administrative Agent (or, in the case of an assignment by a Supplemental Term Lender, the Supplemental Term Agent) an Assignment and Assumption, together with a processing and recordation fee of $3,500; and 

(E)        the assignee, if it shall not be a Lender, shall
deliver to the ABL Administrative Agent (or, in the case of an assignment by a Supplemental Term Lender, the Supplemental Term Agent) an Administrative Questionnaire in which the assignee designates one or more Credit Contacts to whom all
syndicate-level information (which may contain material non-public information about the Borrower, the Loan Parties and their related parties or their respective securities) will be made available and who may receive such information in accordance
with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws. 

  
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 For the purposes of this Section 9.04(b), the term
“Approved Fund” has the following meaning: 
 “Approved Fund” means any Person
(other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 (iii)        Subject to acceptance and recording thereof pursuant to clause (b)(iv) of this Section, from and after the effective date specified in each
Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause
(c) of this Section 9.04. 

(iv)        Each of the ABL Administrative Agent and the
Supplemental Term Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders,
and the Revolving Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrower, the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, any Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

(v)        Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in clause (b) of
this Section 9.04 and any written consent to such assignment required by clause (b) of this Section 9.04, the ABL Administrative Agent or the Supplemental Term Agent, as applicable, shall accept such Assignment and
Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.05,
2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), neither the ABL Administrative Agent nor the Supplemental 

  
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Term Agent shall have any obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full,
together with all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this clause. 

(c)        (i) Any Lender may, without the consent of the Borrower, the ABL
Administrative Agent, the Supplemental Term Agent, any Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Revolving Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. Subject to clause (c)(ii) of this Section 9.04, the Borrower agrees that each Participant shall
be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (b) of this Section 9.04. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c) as though it were a Lender. 

(d)        (ii)  A Participant shall not be entitled to receive any
greater payment under Sections 2.15 or 2.17 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless such Participant agrees, for the benefit of the Borrower, to
comply with Section 2.17(e) as though it were a Lender. 

(e)        Any Lender may at any time without consent of the Borrower, the ABL
Administrative Agent or the Supplemental Term Agent pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section 9.04 shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

SECTION 9.05        Survival.    All covenants,
agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in 

  
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connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of
the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the ABL Administrative Agent, the Supplemental Term Agent,
any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Revolving Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the
expiration or termination of the Letters of Credit and the Revolving Commitments or the termination of this Agreement or any provision hereof. In connection with the termination of this Agreement and the release and termination of the security
interests in the Collateral, the ABL Administrative Agent may require such indemnities and collateral security (including, without limitation, Cash Collateral) as it shall reasonably deem necessary or appropriate to protect the Lender Parties
against (x) loss on account of credits previously applied to the Obligations that may subsequently be reversed or revoked, (y) any obligations that may thereafter arise with respect to Bank Product Obligations (including, without
limitation, Swap Obligations), and (z) any Obligations that may thereafter arise under Section 9.03. 
 SECTION 9.06        Counterparts; Integration; Effectiveness.    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. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees
payable to the ABL Administrative Agent or the Supplemental Term Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the ABL Administrative Agent and when the ABL Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission (such as pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. 

SECTION 9.07        Severability.    Any provision of
any Loan Document 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 thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

SECTION 9.08        Right of Setoff.    If an Event
of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by such 

  
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Lender or Affiliate to or for the credit or the account of the Borrower or such Loan Guarantor against any of and all the Secured Obligations held by such Lender, irrespective of whether or not
such Lender shall have made any demand under the Loan Documents and although such obligations may be unmatured. The applicable Lender shall notify the Borrower and the ABL Administrative Agent of such set-off or application, provided that any
failure to give or any delay in giving such notice shall not affect the validity of any such set-off or application under this Section. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights
of setoff) which such Lender may have. 
 SECTION
9.09        Governing Law; Jurisdiction; Consent to Service of Process. 
 (a)        The Loan Documents (other than those containing a contrary express choice of law provision) shall be governed by and construed in accordance with the
laws of the State of New York, without giving effect to the conflicts of laws principles thereof, but including Section 5-1401 of the New York General Obligations Law. 

(b)        Each Loan Party hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in New York, New York in any action or proceeding arising out of or relating to any Loan Documents, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other
Loan Document against any Loan Party or its properties in the courts of any jurisdiction. 

(c)        Each Loan Party hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court
referred to in clause (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 (d)        Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 SECTION 9.10        WAIVER OF JURY
TRIAL.        EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR

  
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INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 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 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 IN THIS SECTION. 
 SECTION 9.11        Headings.    Article and Section headings and the Table of Contents 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. 
 SECTION 9.12        Confidentiality. 
 (a)    Each of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed: (i) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (ii) to the extent requested by any regulatory authority; (iii) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process; (iv) to any other party to this Agreement; (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder; (vi) subject to an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations; (vii) with the consent of the Borrower; or
(viii) to the extent such Information (A) is or becomes publicly available other than as a result of a breach of this Section 9.12 or (B) is or becomes available to the ABL Administrative Agent, the Supplemental Term
Agent, any Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower. For the purposes of this Section 9.12, “Information” means all information received from the Borrower relating to
the Borrower or its business, other than any such information that is available to the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrower; provided
that, in the case of information received from the Borrower after the Effective Date, the Borrower will notify the ABL Administrative Agent if the information includes material non-public information (within the meaning of United States federal
securities laws) with respect to Sears Holdings Corporation and its Affiliates (taken as a whole) and any of their respective securities. Any Person required to maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to confidential information of a similar nature.

  
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 (b)        EACH LENDER ACKNOWLEDGES
THAT INFORMATION AS DEFINED IN SECTION 9.12(a) FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS
DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

 (c)        ALL INFORMATION, INCLUDING WAIVERS AND AMENDMENTS,
FURNISHED BY THE BORROWER, THE ABL ADMINISTRATIVE AGENT OR THE SUPPLEMENTAL TERM AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE
BORROWER, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES) AND ITS SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER, THE ABL ADMINISTRATIVE AGENT AND THE SUPPLEMENTAL TERM AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW. 

SECTION 9.13        Several Obligations; Nonreliance; Violation of
Law.    The respective obligations of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. Each Lender hereby represents that it is not relying on or looking to any margin stock for the repayment of the Borrowings provided for herein. Anything contained in this Agreement to the contrary notwithstanding, neither
any Issuing Bank nor any Lender shall be obligated to extend credit to the Borrower in violation of any Requirement of Law. 
 SECTION 9.14        USA PATRIOT ACT.    Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”) hereby notifies the Borrower and each Guarantor that pursuant to the requirements of the Act, it is required to obtain, verify and record information that
identifies the Borrower and each Guarantor, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower and each Guarantor in accordance with the Act. 

SECTION 9.15        Disclosure.    Each Loan Party
and each Lender hereby acknowledges and agrees that the ABL Administrative Agent, the Supplemental Term Agent and/or their respective Affiliates from time to time may hold investments in, make other loans to or have other relationships with any of
the Loan Parties and their respective Affiliates. 
 SECTION
9.16        Appointment for Perfection.    Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens, for the benefit of the ABL Administrative
Agent, the Supplemental Term Agent and the Lenders, in assets which, in accordance with Article 9 of the 

  
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UCC or any other applicable law can be perfected by possession or control. Should any Lender (other than the ABL Administrative Agent) obtain possession or control of any such Collateral, such
Lender shall notify the ABL Administrative Agent thereof, and, promptly upon the ABL Administrative Agent’s request therefor shall deliver such Collateral to the ABL Administrative Agent or otherwise deal with such Collateral in accordance with
the ABL Administrative Agent’s instructions. 
 SECTION
9.17        Interest Rate Limitation.    Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and
other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and,
to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect
of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 SECTION 9.18        Amendment and Restatement. 

(a)        On the Effective Date, the Existing Credit Agreement shall be amended
and restated in its entirety by this Agreement, and the Existing Credit Agreement shall thereafter be of no further force and effect, except to evidence (i) the incurrence by the Borrower of the “Obligations” under and as defined in
the Existing Credit Agreement (whether or not such “Obligations” are contingent as of the Effective Date), (ii) the representations and warranties made by the Borrower prior to the Effective Date and (iii) any action or omission
performed or required to be performed pursuant to such Existing Credit Agreement prior to the Effective Date (including any failure, prior to the Effective Date, to comply with the covenants contained in such Existing Credit Agreement). The
amendments and restatements set forth herein shall not cure any breach thereof or any “Default” or “Event of Default” under and as defined in the Existing Credit Agreement existing prior to the Effective Date. This Agreement is
not in any way intended to constitute a novation of the obligations and liabilities existing under the Existing Credit Agreement or evidence payment of all or any portion of such obligations and liabilities. 

(b)        The terms and conditions of this Agreement and the ABL Administrative
Agent’s, the Supplemental Term Agent’s and the Lenders’ rights and remedies under this Agreement and the other Loan Documents shall apply to all of the “Obligations” incurred under and as defined in the Existing Credit
Agreement. 
 (c)        On and after the Effective Date, (i) all
references to the Existing Credit Agreement in the Loan Documents (other than this Agreement) shall be deemed to refer to the Existing Credit Agreement, as amended and restated hereby, (ii) all references to any Article, Section or sub-clause
of the Existing Credit Agreement in any Loan Document (other than this Agreement) shall be deemed to be references to the corresponding provisions of this Agreement 

  
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and (iii) except as the context otherwise provides, on or after the Effective Date, all references to this Agreement herein (including for purposes of indemnification and reimbursement of
fees) shall be deemed to be reference to the Existing Credit Agreement, as amended and restated hereby. 

(d)        This amendment and restatement is limited as written and is not a
consent to any other amendment, restatement or waiver, whether or not similar and, except as expressly provided herein or in any other Loan Document, all terms and conditions of the Loan Documents remain in full force and effect unless otherwise
specifically amended hereby or any other Loan Document. 
 SECTION
9.19        Intercreditor Agreement.    Notwithstanding anything herein to the contrary, the Liens and security interests granted to the Collateral Agent pursuant to the Collateral
Documents, and the exercise of any right or remedy by the Collateral Agent hereunder or thereunder, are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and the
terms of this Agreement, the terms of the Intercreditor Agreement shall govern and control. 
 SECTION
9.20        Refinancing of Term Loan Documents. 

Notwithstanding anything to the contrary, the Borrower shall be permitted to refinance the Term Loan Documents with new
term loans or new notes in a Rule 144A or other private placement (the “New Facility”). In connection with such refinancing, the Agents, the Supplemental Term Agent and the Lenders shall agree that the Borrower and the Guarantors
may grant the collateral agent under the New Facility valid and perfected first priority liens in all of the remaining personal assets of the Borrower that do not constitute the Collateral (the “Remaining Collateral”). In that case,
the ABL Facility shall have valid and perfected first priority liens on the Collateral and valid and perfected second priority liens (subject only to the liens securing the New Facility) on the Remaining Collateral. The New Facility shall have valid
and perfected second priority liens (subject only to the liens security the ABL Facility) on the Collateral and valid and perfected first priority liens on the Remaining Collateral pursuant to an intercreditor agreement addressing the priorities and
other terms and conditions customary for such agreements, which terms are all reasonably acceptable to the Agents, the Supplemental Term Agent and the Required Lenders. The consent of the Required Lenders shall not be required in connection with the
refinancing of the Term Loan Documents. 
 ARTICLE X 
 Loan Guaranty 
 SECTION
10.01        Guaranty.    Each Loan Guarantor hereby agrees that it is jointly and severally liable for, and, as primary obligor and not merely as surety, absolutely and
unconditionally guarantees to the Lenders the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Secured Obligations and all costs and expenses including, without limitation, all
court costs and attorneys’ and paralegals’ fees (including allocated costs of in-house counsel and paralegals) and reasonable out-of-pocket expenses paid or incurred by the ABL Administrative Agent, the Supplemental Term Agent, the Issuing
Banks 

  
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and the Lenders in endeavoring to collect all or any part of the Secured Obligations from, or in prosecuting any action against, the Borrower, any Loan Guarantor or any other guarantor of all or
any part of the Secured Obligations (such costs and expenses, together with the Secured Obligations, collectively the “Guaranteed Obligations”). Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or
renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal. All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any
domestic or foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations. 

SECTION 10.02        Guaranty of Payment.    This
Loan Guaranty is a guaranty of payment and not of collection. Each Loan Guarantor waives any right to require the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender to sue the Borrower, any Loan Guarantor, any
other guarantor, or any other person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed
Obligations. 
 SECTION 10.03        No Discharge or Diminishment of
Loan Guaranty. 
 (a)        Except as otherwise provided for
herein, the obligations of each Loan Guarantor hereunder are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed
Obligations), including: (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate
existence, structure or ownership of the Borrower or any other guarantor of or other person liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated
Party, or their assets or any resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time against any Obligated Party, the ABL
Administrative Agent, the Supplemental Term Agent, any Issuing Bank, any Lender, or any other person, whether in connection herewith or in any unrelated transactions. 

(b)        The obligations of each Loan Guarantor hereunder are not subject to
any defense or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise (other than a defense of payment or performance), or any
provision of applicable law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any part thereof. 
 (c)        Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or otherwise affected by: (i) the failure of the ABL
Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification of or
supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of the Borrower for all or any part of the Guaranteed

  
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Obligations or any obligations of any other guarantor of or other person liable for any of the Guaranteed Obligations; (iv) any action or failure to act by the ABL Administrative Agent, the
Supplemental Term Agent, any Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or performance of any of the
Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Loan Guarantor or that would otherwise operate as a discharge of any Loan Guarantor as a matter of law or
equity (other than the indefeasible payment in full in cash of the Guaranteed Obligations). 
 SECTION
10.04        Defenses Waived.    To the fullest extent permitted by applicable law, each Loan Guarantor hereby waives any defense based on or arising out of any defense of the
Borrower or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation from any cause of the liability of the Borrower or any Loan Guarantor, other than the indefeasible payment in
full in cash of the Guaranteed Obligations. Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided
for herein, as well as any requirement that at any time any action be taken by any person against any Obligated Party, or any other person. The ABL Administrative Agent may, at its election, foreclose on any Collateral held by it by one or more
judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or adjust any part of
the Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise any other right or remedy available to it against any Obligated Party, without affecting or impairing in any way the liability of such Loan Guarantor under
this Loan Guaranty except to the extent the Guaranteed Obligations have been fully and indefeasibly paid in cash. To the fullest extent permitted by applicable law, each Loan Guarantor waives any defense arising out of any such election even though
that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Loan Guarantor against any Obligated Party or any security. 

SECTION 10.05        Rights of Subrogation.    No
Loan Guarantor will assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or indemnification that it has against any Obligated Party, or any collateral, until the Loan Parties and the Loan
Guarantors have fully performed all their obligations to the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders. 
 SECTION 10.06        Reinstatement; Stay of Acceleration.    If at any time any payment of any portion of the Guaranteed Obligations is
rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise, each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at
such time as though the payment had not been made and whether or not the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders are in possession of this Loan Guaranty. If acceleration of the time for payment of any
of the Guaranteed 

  
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Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating to the
Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Lender. 

SECTION 10.07        Information.    Each Loan
Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope
and extent of the risks that each Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that none of the ABL Administrative Agent, the Supplemental Term Agent, any Issuing Bank or any Lender shall have any duty to advise any Loan
Guarantor of information known to it regarding those circumstances or risks. 
 SECTION
10.08        Termination.    The Lenders may continue to make loans or extend credit to the Borrower based on this Loan Guaranty until three days after it receives written notice of
termination from any Loan Guarantor. Notwithstanding receipt of any such notice, each Loan Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations created, assumed or committed to prior to the third day after receipt of
the notice, and all subsequent renewals, extensions, modifications and amendments with respect to, or substitutions for, all or any part of that Guaranteed Obligations. 

SECTION 10.09        Taxes.    Subject to the same
exceptions and limitations applicable to the Borrower under Section 2.17 of the Agreement, mutatis mutandis, all payments of the Guaranteed Obligations will be made by each Loan Guarantor free and clear of and without deduction
for any Indemnified Taxes or Other Taxes; provided that if any Loan Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under this Section) the ABL Administrative Agent, the Supplemental Term Agent, any Lender or any Issuing Bank (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Loan Guarantor shall make such deductions and (iii) such Loan Guarantor shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law. 
 SECTION 10.10        Maximum
Liability.    The provisions of this Loan Guaranty are severable, and in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law
affecting the rights of creditors generally, if the obligations of any Loan Guarantor under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of such Loan Guarantor’s
liability under this Loan Guaranty, then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such liability shall, without any further action by the Loan Guarantors or the Lenders, be automatically limited and
reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant Loan Guarantor’s “Maximum Liability”). This Section with
respect to the Maximum Liability of each Loan Guarantor is intended solely to preserve the rights of the Lenders to the maximum extent not subject to avoidance under applicable law, and no Loan Guarantor nor any other person or entity shall have any
right or claim under this Section with respect to such Maximum Liability, except to the extent necessary so that the obligations of any Loan Guarantor hereunder shall not be rendered voidable under applicable law. Each Loan Guarantor agrees that the
Guaranteed Obligations may at any time and from time to time exceed the 

  
 136

 
Maximum Liability of each Loan Guarantor without impairing this Loan Guaranty or affecting the rights and remedies of the Lenders hereunder; provided that nothing in this sentence shall be
construed to increase any Loan Guarantor’s obligations hereunder beyond its Maximum Liability. 
 SECTION
10.11        Contribution.    In the event any Loan Guarantor (a “Paying Guarantor”) shall make any payment or payments under this Loan Guaranty or shall suffer any
loss as a result of any realization upon any collateral granted by it to secure its obligations under this Loan Guaranty, each other Loan Guarantor (each a “Non-Paying Guarantor”) shall contribute to such Paying Guarantor an amount
equal to such Non-Paying Guarantor’s “Applicable Percentage” of such payment or payments made, or losses suffered, by such Paying Guarantor. For purposes of this Article X, each Non-Paying Guarantor’s “Applicable
Percentage” with respect to any such payment or loss by a Paying Guarantor shall be determined as of the date on which such payment or loss was made by reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as
of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum Liability has not been determined, the aggregate amount of all monies received by such
Non-Paying Guarantor from the Borrower after the Effective Date (whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum Liability of all Loan Guarantors hereunder (including such Paying Guarantor) as of such date
(without giving effect to any right to receive, or obligation to make, any contribution hereunder), or to the extent that a Maximum Liability has not been determined for any Loan Guarantor, the aggregate amount of all monies received by such Loan
Guarantors from the Borrower after the Effective Date (whether by loan, capital infusion or by other means). Nothing in this provision shall affect any Loan Guarantor’s several liability for the entire amount of the Guaranteed Obligations (up
to such Loan Guarantor’s Maximum Liability). Each of the Loan Guarantors covenants and agrees that its right to receive any contribution under this Loan Guaranty from a Non-Paying Guarantor shall be subordinate and junior in right of payment to
the payment in full in cash of the Guaranteed Obligations. This provision is for the benefit of the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks, the Lenders and the Loan Guarantors and may be enforced by any one, or
more, or all of them in accordance with the terms hereof. 
 SECTION
10.12        Liability Cumulative.    The liability of each Loan Party as a Loan Guarantor under this Article X is in addition to and shall be cumulative with all liabilities
of each Loan Party to the ABL Administrative Agent, the Supplemental Term Agent, the Issuing Banks and the Lenders under this Agreement and the other Loan Documents to which such Loan Party is a party or in respect of any obligations or liabilities
of the other Loan Parties, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. 

SECTION 10.13        Common Enterprise.    The
successful operation and condition of each of the Loan Parties is dependent on the continued successful performance of the functions of the group of the Loan Parties as a whole and the successful operation of each of the Loan Parties is dependent on
the successful performance and operation of each other Loan Party. Each Loan Party expects to derive benefit, directly and indirectly, from (i) successful operations of each of the other Loan Parties and (ii) the credit extended by the
Lenders to the Borrower hereunder, both in their separate capacities and as members of the group of companies. 

  
 137

 ARTICLE XI 
 Existing Credit Agreement Amended and Restated 
 Upon
satisfaction of the conditions precedent to the effectiveness of this Agreement, (a) this Agreement shall amend and restate the Existing Credit Agreement in its entirety (except to the extent that definitions from the Existing Credit Agreement
are incorporated herein by reference) and (b) the rights and obligations of the parties under the Existing Credit Agreement shall be subsumed within, and be governed by, this Agreement; provided, however, that the Loan Parties hereby agrees
that (i) the Existing Letters of Credit shall be Letters of Credit hereunder, and the LC Exposure under, and as defined in, the Existing Credit Agreement on the Effective Date shall be LC Exposure hereunder, and (ii) all Obligations of the
Loan Parties under, and as defined in, the Existing Credit Agreement shall remain outstanding, shall constitute continuing Obligations secured by the Collateral, and this Agreement shall not be deemed to evidence or result in a novation or repayment
and reborrowing of such obligations and other liabilities. 
 [Signature Pages Follow] 

  
 138

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

			
	 ORCHARD SUPPLY HARDWARE LLC, as Borrower

	
	 By: Orchard Supply Hardware Stores Corporation, its Managing Member

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

	
	 ORCHARD SUPPLY HARDWARE STORES CORPORATION, as Loan Guarantor

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

 [Signature Page to Third Amended and Restated Credit Agreement] 

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as ABL Administrative Agent, Collateral Agent, Swingline Lender, Issuing Bank and as a
Lender

 
			
		
	 By:
	 	
             

 
			
		
	 Name:
	 	
             

 
			
		
	 Title:
	 	
             

 [Signature Page to Third Amended and Restated Credit Agreement] 

 
			
	 BANK OF AMERICA, N.A., as Syndication Agent, Issuing Bank and as a Lender

		
	 By:
	 	
             

		
	 Name:
	 	
             

		
	 Title:
	 	
             

 [Signature Page to Third Amended and Restated Credit Agreement]EX-10.2

 Exhibit 10.2 
 WAIVER 
 This WAIVER, dated as of February 14, 2013
(this “Waiver”), to the Amended and Restated Senior Secured Term Loan Agreement, dated as of December 22, 2011 (as amended by Waiver and Amendment No. 1, dated as of October 26, 2012, as further amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”), by and among Orchard Supply Hardware LLC, a Delaware limited liability company (“Borrower”), Orchard Supply Hardware Stores Corporation, a
Delaware corporation (“Holdings”), the other Guarantors party thereto, the Term Lenders party thereto from time to time, JPMorgan Chase Bank, N.A. as Term Administrative Agent (the “Administrative Agent”), as
Collateral Agent, and as Sole Bookrunning Manager and Sole Lead Arranger. Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement. 

RECITALS: 
 WHEREAS, Borrower, the Administrative Agent and the Term Lenders entered into the Credit Agreement; 
 WHEREAS, Borrower has requested that the Required Term Lenders agree to waive and amend certain provisions of the Credit Agreement as set forth herein; and 

WHEREAS, the Required Term Lenders have agreed to waive certain provisions of the Credit Agreement, in the manner,
and on the terms and conditions, provided for herein. 
 NOW, THEREFORE, in consideration of the premises
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION I. WAIVER 
 Subject to the satisfaction of the
conditions precedent set forth in Section II, effective as of (i) February 2, 2013, with respect to the Defaults and Events of Default set forth in clause (a) below, and (ii) the Effective Date, with respect to the Defaults and
Events of Default set forth in clause (b) below, the Required Term Lenders hereby waive: 
  

	 	a)	 the Defaults or Events of Default which would otherwise occur under Sections 5.10 and 5.02(a) of the Credit Agreement as a result of the failure by
the Borrower to comply with the Maximum Adjusted Leverage Ratio covenant contained in Section 5.10 of the Credit Agreement for the fiscal quarters ending February 2, 2013 and May 4, 2013; and 

 

	 	b)	 the Defaults or Events of Default which would otherwise occur under Sections 5.01(a) and 5.02(a) of the Credit Agreement as a result of the delivery
of a qualified opinion by Holdings’ independent public accountants, with respect to the financial statements delivered for the fiscal year ending February 2, 2013; provided that any qualification thereto shall solely relate to the ability
of the Borrower to continue as a going concern and shall not relate to the scope of audit or any other matters. 

 SECTION II. CONDITIONS PRECEDENT TO EFFECTIVENESS AND CONTINUED EFFECTIVENESS 

 

	 	a)	 The effectiveness of the waivers set forth in Section I hereof are subject to the satisfaction, or waiver, of the following conditions on or prior
to the date hereof (the “Effective Date”) and the continuing satisfaction of any such conditions on or after the Effective Date, to the extent applicable, whereupon this Waiver shall be effective as set forth in Section I above:

  

	 	i.	 Borrower, the other Loan Parties and the Required Term Lenders shall have indicated their consent by the execution and delivery of the signature
pages hereof to Administrative Agent; 

  

	 	ii.	 Administrative Agent and the Term Lenders shall have received a copy of the amendment to the ABL Credit Agreement, dated February 11, 2013, pursuant
to which the ABL Lenders have agreed to extend additional credit to the Borrowers in an amount not to exceed $17,500,000; 

  

	 	iii.	 Borrower shall have paid to the Administrative Agent, for distribution to each Lender which has consented to this Waiver by delivering an executed
signature page hereto, irrespective of whether such consent is delivered prior to or after the Effective Date, a fee equal to 0.50% of the aggregate Term Loans of each such consenting Lender as of the date hereof; 

 

	 	iv.	 Upon execution of a non-disclosure and confidentiality agreement substantially in the form of Exhibit A hereto between the Borrower and/or Holdings
and each of the Administrative Agent and each of the Term Lenders that requests confidential information to which it is not otherwise entitled to receive under the Credit Agreement, Administrative Agent and such Term Lenders shall have received such
other documents and information including, without limitation, operational and financial performance information and projections regarding the Loan Parties and the Credit Agreement as Administrative Agent or any such Term Lender may reasonably
request; 

  

	 	v.	 In furtherance of and not in limitation of the foregoing; the Borrower shall promptly take all reasonable actions (including, without limitation,
with respect to limiting certain discretionary payments, limiting the making of unbudgeted capital expenditures or utilizing certain proceeds) and deliver all documents and information (including, without limitation, conference calls with management
and/or the companies professional advisors, in-person meetings and other correspondence) that the Borrower has agreed from time to time to perform or provide to the Term Lenders; 

 

	 	vi.	 Borrower shall have paid the Administrative Agent for all reasonable out-of-pocket expenses incurred by it on or prior to the date hereof in
connection with the negotiation and preparation of this Waiver, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent; 

 

	 	vii.	 Borrower shall have paid and shall promptly pay (but in any event not later than five Business Days following receipt of an invoice therefor) the
Term Lenders for the reasonable fees, charges and disbursements of (i) Dechert 

	 	 
LLP, counsel for the Term Lenders, and (ii) one financial advisor for the Term Lenders, in each case incurred both prior to and following the date hereof in connection with and/or relating
to the negotiation and preparation of this Waiver and the administration of the Loan Documents or any amendments, modifications or waivers of the provisions of or other matters pertaining to the Loan Documents; and 

 

	 	viii.	 Borrower shall promptly take all actions reasonably requested by the Term Lenders to appoint a replacement Administrative Agent reasonably
acceptable to the Required Term Lenders; 

  

	 	b)	 Notwithstanding the foregoing, the effectiveness of the waiver set forth in Section I(a) shall terminate if Borrower shall have failed to
(i) perform any obligation required to be performed by or on behalf of the Borrower on or after the Effective Date pursuant to Section II(a) or (ii) deliver to the Term Administrative Agent a business plan of the Borrower on or prior to
5:00 p.m. Eastern time on March 6, 2013. 

 SECTION III. REPRESENTATIONS AND WARRANTIES 

 

	 	a)	 Corporate Power and Authority. Each Loan Party has all requisite corporate power and authority to enter into this Waiver and to carry out the
transactions contemplated hereby and perform its obligations hereunder. 

  

	 	b)	 Authorization of Agreements. The execution and delivery of this Waiver and the performance of its obligations hereunder have been duly
authorized by all necessary corporate or limited liability company (as applicable) action on the part of each Loan Party. 

  

	 	c)	 Governmental Consents. No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is
required in connection with the execution, delivery and performance by each Loan Party of this Waiver. 

  

	 	d)	 Binding Obligation. This Waiver has been duly executed and delivered by each Loan Party and each of the Waiver and the other Loan Documents
constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its respective terms, except as enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other
similar laws affecting creditors’ rights generally and except as enforceability may be limited by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

	 	e)	 Incorporation of Representations and Warranties From Credit Agreement. The representations and warranties contained in the Credit Agreement
are and will be true, correct and complete in all material respects (except to the extent any such representation and warranty itself is qualified by “materiality,” “Material Adverse Effect” or similar qualifer, in which case, it
shall be true and correct in all respects), after giving effect to the waiver herein, on and as of the Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically
relate to an earlier date, in which case they were true, correct and complete in all material respects (except to the extent any such representation and warranty itself is qualified by “materiality,” “Material Adverse Effect” or
similar qualifer, in which case, it shall be true and correct in all respects) on and as of such earlier date. 

  

	 	f)	 No Default. After giving effect to this Waiver, no event will have occurred and be continuing that constitutes an Event of Default or a
Default. 

 SECTION IV. ACKNOWLEDGEMENT AND CONSENT 

 

	 	a)	 Each Loan Guarantor hereby consents to the terms of this Waiver and further hereby confirms and agrees that, notwithstanding the effectiveness of
this Waiver, the obligations of such Loan Guarantor under each of the Loan Documents to which such Loan Guarantor is a party shall not be impaired and each of the Loan Documents to which such Loan Guarantor is a party are, and shall continue to be,
in full force and effect and are hereby confirmed and ratified in all respects. 

  

	 	b)	 Each Loan Guarantor hereby acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Waiver, such Loan
Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waiver to the Credit Agreement effected pursuant to this Waiver and (ii) nothing in the Credit Agreement, this Waiver or any other Loan
Document shall be deemed to require the consent of such Loan Guarantor to any future amendments to or waivers with respect to the Credit Agreement. 

  

	 	c)	 Neither the entering into of this Waiver by the Term Lenders nor any other previous action or inaction on the part of the Term Lenders constitutes
or shall be deemed to constitute a waiver of or consent to any other past, present or future Default or Event of Default, nor shall the Term Lenders be obligated, by virtue of entering into this Waiver, to grant any further waiver, consent or
amendment for the benefit of Borrower. Neither the entering into of this Waiver by any Term Lender nor any other previous action or inaction of the part of the Term Lenders constitutes a novation, waiver, release, discharge or abandonment of any and
all rights, claims or causes of action that could be raised to challenge the dischargeability of any or all of the debt associated with the Loan Documents. 

 SECTION V. Release of Claims. 
 To induce the Term Lenders
to enter into this Waiver, Borrower and each Loan Guarantor hereby releases, acquits and forever discharges the Term Lenders (in their capacities as such), their respective parents, subsidiaries, affiliates, predecessors, successors and assigns and
each Term Lender’s officers, directors, agents, accountants, attorneys and employees, from all liabilities, claims, demands, defenses, actions or causes of action of any kind (if any there be),

 
whether absolute or contingent, due or has become due, disputed or undisputed, at law or in equity, that any of them now has or ever had against the Term Lenders arising under or in connection
with any of the Loan Documents, the making of Loans thereunder or otherwise through and including the date of this Waiver. 
 SECTION VI.
MISCELLANEOUS 
  

	 	a)	 Binding Effect. This Waiver shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the
benefit of the parties hereto and the successors and assigns of the Term Lenders. No Loan Party’s rights or obligations hereunder or any interest therein may be assigned or delegated by any Loan Party without the prior written consent of all
Term Lenders. 

  

	 	b)	 Severability. In case any provision in or obligation hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 

 

	 	c)	 Effect on Loan Documents. Except as specifically waived or amended by this Waiver, the Credit Agreement and the other Loan Documents shall
remain in full force and effect and are hereby ratified and confirmed. The parties hereto acknowledge and agree that this Waiver shall be deemed to be a Loan Document. 

 

	 	d)	 Fees. All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent. Fees paid shall
not be refundable under any circumstances. 

  

	 	e)	 Limitation. The execution, delivery and performance of this Waiver shall not, except as expressly provided herein, constitute a waiver of any
provision of, or operate as a waiver of any right, power or remedy of any Agent or Term Lender under, the Credit Agreement or any of the other Loan Documents and this Waiver shall be limited precisely as written. 

 

	 	f)	 Headings. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any
other purpose or be given any substantive effect. 

  

	 	g)	 APPLICABLE LAW. THIS WAIVER, THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED
TO THIS WAIVER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. BORROWER AND EACH LOAN GUARANTOR (EACH, A “SUBMITTING
PARTY”), FOR THE PURPOSES OF THIS WAIVER AND ANY AGREEMENT ENTERED INTO IN CONNECTION HEREWITH, HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE 

	 	 
COURTS OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING
ARISING OUT OF OR BASED UPON THIS WAIVER, THE CREDIT AGREEMENT, THE SUBJECT MATTER HEREOF, ANY OTHER LOAN DOCUMENT AND THE SUBJECT MATTER THEREOF. EACH SUBMITTING PARTY TO THE EXTENT PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES NOT
TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN THE ABOVE-NAMED COURTS, ANY CLAIM THAT IT IS NOT SUBJECT PERSONALLY TO THE JURISDICTION OF SUCH COURTS, THAT ITS PROPERTY IS EXEMPT OR
IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THIS WAIVER, THE CREDIT AGREEMENT, THE SUBJECT MATTER HEREOF, THE
OTHER LOAN DOCUMENTS OR THE SUBJECT MATTER THEREOF (AS APPLICABLE) MAY NOT BE ENFORCED IN OR BY SUCH COURT, (B) HEREBY WAIVES THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING INSTITUTED BY ADMINISTRATIVE AGENT OR ANY TERM LENDER IN STATE
COURT TO FEDERAL COURT, AND (C) HEREBY WAIVES THE RIGHT TO ASSERT IN ANY SUCH ACTION, SUIT OR PROCEEDING ANY OFFSETS OR COUNTERCLAIMS EXCEPT COUNTERCLAIMS THAT ARE COMPULSORY OR OTHERWISE ARISE FROM THE SAME SUBJECT MATTER. EACH SUBMITTING
PARTY HEREBY CONSENTS TO SERVICE OF PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO BE GIVEN TO IT PURSUANT TO SECTION 9.01 OF THE CREDIT AGREEMENT. EACH SUBMITTING PARTY AGREES THAT ITS SUBMISSION TO JURISDICTION AND CONSENT TO SERVICE OF
PROCESS BY MAIL IS MADE FOR THE EXPRESS BENEFIT OF EACH OF THE OTHER SUBMITTING PARTIES. FINAL JUDGMENT AGAINST ANY SUBMITTING PARTY IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE, AND MAY BE ENFORCED IN ANY OTHER JURISDICTION
(X) BY SUIT, ACTION OR PROCEEDING ON THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND OF THE AMOUNT OF INDEBTEDNESS OR LIABILITY OF THE SUBMITTING PARTY THEREIN DESCRIBED, OR (Y) IN ANY OTHER
MANNER PROVIDED BY OR PURSUANT TO THE LAWS OF SUCH OTHER JURISDICTION; PROVIDED, HOWEVER, THAT ADMINISTRATIVE AGENT OR ANY TERM LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL PROCEEDINGS AGAINST A SUBMITTING PARTY OR ANY OF ITS
ASSETS IN ANY STATE OR FEDERAL COURT OF THE UNITED STATES OF AMERICA OR OF ANY COUNTRY OR PLACE WHERE THE SUBMITTING PARTY 

	 	 
OR SUCH ASSETS MAY BE FOUND. 

  

	 	h)	 Counterparts. This Waiver may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument. As set forth herein, this Waiver shall become effective upon the execution of a counterpart hereof by each of the parties hereto and receipt by
Administrative Agent of written or telephonic notification of such execution and authorization of delivery thereof. 

  

	 	(i)	 Taxation. Borrower agrees that for all U.S. federal, state and local tax purposes Borrower shall in all respects treat (and report) the
transactions described in this Waiver consistently with the tax treatment requested in writing by the Required Term Lenders. 

 [SIGNATURE PAGES FOLLOW] 

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

					
	 ORCHARD SUPPLY HARDWARE LLC, as
Borrower

 

	 By:
	 	 /s/ Michael W. Fox

		 	 Name:
	 	 Michael W. Fox

		 	 Title:
	 	 Senior Vice President, General
 Counsel and Secretary

	
	 ORCHARD SUPPLY HARDWARE STORES CORPORATION

 

	 By:
	 	 /s/ Michael W. Fox

		 	 Name:
	 	 Michael W. Fox

		 	 Title:
	 	 Senior Vice President, General
 Counsel and Secretary

 WAIVER TO THE CREDIT AGREEMENT 

 

					
	 Silver Crest CBNA Loan Funding LLC

		
	 By:
	 	 Citibank N.A.

		
	 By:
	 	 /s/ Lynette Thompson

		 	 Name:
	 	 Lynette Thompson

		 	 Title:
	 	 Director

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 CANNINGTON FUNDING LTD.

		
	 By:
	 	 Silvermine Capital Management LLC

	 As Investment Manager

		
	 By:
	 	 /s/ Stephen Perella

		 	 Name:
	 	 Stephen Perella

		 	 Title:
	 	 Analyst

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GREENS CREEK FUNDING LTD.

		
	 By:
	 	 Silvermine Capital Management LLC

	 As Investment Manager

		
	 By:
	 	 /s/ Stephen Perella

		 	 Name:
	 	 Stephen Perella

		 	 Title:
	 	 Analyst

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 ECP CLO 2008-1, LTD

		
	 By:
	 	 Silvermine Capital Management LLC

	 As Portfolio Manager

 
					
	 By:
	 	 /s/ Stephen Perella

		 	 Name:
	 	 Stephen Perella

		 	 Title:
	 	 Analyst

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 COMSTOCK FUNDING LTD.

		
	 By:
	 	 Silvermine Capital Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Stephen Perella

		 	 Name:
	 	 Stephen Perella

		 	 Title:
	 	 Analyst

	
	 Name of Institution:

	
	 Baker Street Funding CLO 2005-1 Ltd.

	 By:
	 	Seix Investment Advisors LLC, as Collateral Manager
	
	 Baker Street CLO II Ltd.

	 By:
	 	Seix Investment Advisors LLC, as Collateral Manager
	
	 Mountain View Funding CLO 2006-I, Ltd.

	 By:
	 	Seix Investment Advisors LLC, as Collateral Manager
	
	 Mountain View CLO II Ltd.

	 By:
	 	Seix Investment Advisors LLC, as Collateral Manager
	
	 Mountain View CLO III Ltd.

	 By:
	 	Seix Investment Advisors LLC, as Collateral Manager
		
	 By:
	 	 /s/ George Goudelias

		 	 Name:
	 	 George Goudelias

		 	 Title:
	 	 Managing Director

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GULF STREAM–COMPASS CLO 2002-I, LTD

	 By:
	 	 Gulf Stream Asset Management LLC

 
					
	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GULF STREAM–COMPASS CLO 2005-II LTD

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GULF STREAM–COMPASS CLO 2007 LTD

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GULF STREAM–RASHINBAN CLO 2006-I LTD

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

 
					
	 GULF STREAM–SEXTANT CLO 2006-I LTD

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 GULF STREAM–SEXTANT CLO 2007-I LTD

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 NEPTUNE FINANCE CCS, Ltd.

	 By:
	 	 Gulf Stream Asset Management LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Joseph Moroney

		 	 Name:
	 	 Joseph Moroney

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 ARES ENHANCED CREDIT OPPORTUNITIES

	 FUND LTD.

		
	 By:
	 	 ARES ENHANCED CREDIT

	 OPPORTUNITIES FUND MANAGEMENT, L.P.,

	 ITS MANAGER

		
	 By:
	 	 ARES ENHANCED CREDIT

	 OPPORTUNITIES FUND MANAGEMENT GP,

 
					
	 LLC, AS GENERAL PARTNER

		
	 By:
	 	 /s/ Americo Cascella

		 	 Name:
	 	 Americo Cascella

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 ARES IIIR/IVR CLO LTD.

		
	 By:
	 	 ARES CLO MANAGEMENT IIIR/IVR, L.P.,

	 ITS ASSET MANAGER

		
	 By:
	 	 ARES CLO GP IIIR/IVR, LLC, ITS

	 GENERAL PARTNER

		
	 By:
	 	 /s/ Americo Cascella

		 	 Name:
	 	 Americo Cascella

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 ARES VIII CLO LTD.

		
	 By:
	 	 ARES CLO MANAGEMENT VIII, L.P., ITS INVESTMENT MANAGER

		
	 By:
	 	 ARES CLO GP VIII, LLC, ITS GENERAL

	 PARTNER

		
	 By:
	 	 /s/ Americo Cascella

		 	 Name:
	 	 Americo Cascella

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 ARES XI CLO LTD.

		
	 By:
	 	 ARES CLO MANAGEMENT XI, L.P., ITS

	 ASSET MANAGER

 
					
	 By:
	 	 ARES CLO GP XI, LLC, ITS GENERAL

	 PARTNER

		
	 By:
	 	 /s/ Americo Cascella

		 	 Name:
	 	 Americo Cascella

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 CONFLUENT 2 LIMITED

		
	 By:
	 	 ARES PRIVATE ACCOUNT

	 MANAGEMENT I, L.P., AS SUB-

	 MANAGER

		
	 By:
	 	 ARES PRIVATE ACCOUNT

	 MANAGEMENT I GP, LLC, ITS

	 GENERAL PARTNER

		
	 By:
	 	 /s/ Americo Cascella

		 	 Name:
	 	 Americo Cascella

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Grace Bay Holdings II, LLC

		
	 By:
	 	 /s/ Richard Siegel

		 	 Name:
	 	 Richard Siegel

		 	 Title:
	 	 Chief Compliance Officer

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Navigator CDO 2003, Ltd.

	 Navigator CDO 2004, Ltd.

	 Navigator CDO 2006, Ltd.

		
	 By:
	 	 CIFC Asset Management LLC,

 
					
		 	 its Collateral Manager

		
	 By:
	 	 /s/ Robert Ranocchia

		 	 Name:
	 	 Robert Ranocchia

		 	 Title:
	 	 Authorized Signatory

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 DUANE STREET CLO II, LTD.

	 By:
	 	 Citigroup Alternative Investments LLC,

	 As Collateral Manager

		
	 By:
	 	 /s/ Roger Yee

		 	 Name:
	 	 Roger Yee

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 DUANE STREET CLO III, LTD.

	 By:
	 	 Citigroup Alternative Investments LLC,

	 As Collateral Manager

		
	 By:
	 	 /s/ Roger Yee

		 	 Name:
	 	 Roger Yee

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 DUANE STREET CLO IV, LTD.

	 By:
	 	 Citigroup Alternative Investments LLC,

	 As Collateral Manager

		
	 By:
	 	 /s/ Roger Yee

		 	 Name:
	 	 Roger Yee

		 	 Title:
	 	 Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

 
					
	 Cent CDO 12 Limited

	 By:
	 	 Columbia Management Investment Advisers,

	 LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Robin C. Stancil

		 	 Name:
	 	 Robin C. Stancil

		 	 Title:
	 	 Assistant Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Cent CDO 14 Limited

	 By:
	 	 Columbia Management Investment Advisers,

	 LLC

	 As Collateral Manager

		
	 By:
	 	 /s/ Robin C. Stancil

		 	 Name:
	 	 Robin C. Stancil

		 	 Title:
	 	 Assistant Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Columbia Floating Rate Fund, a series of

	 Columbia Funds Series Trust II

		
	 By:
	 	 /s/ Robin C. Stancil

		 	 Name:
	 	 Robin C. Stancil

		 	 Title:
	 	 Assistant Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Columbia Strategic Income Fund, a series of

	 Columbia Funds Series Trust I

		
	 By:
	 	 /s/ Robin C. Stancil

		 	 Name:
	 	 Robin C. Stancil

		 	 Title:
	 	 Assistant Vice President

  

 
					
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Columbia Variable Portfolio – Strategic Income

	 Fund, a series of Columbia Funds Variable

	 Insurance Trust

		
	 By:
	 	 /s/ Robin C. Stancil

		 	 Name:
	 	 Robin C. Stancil

		 	 Title:
	 	 Assistant Vice President

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 Genesis CLO 2007-1 Ltd.

		
	 By:
	 	 GLG Ore Hill LLC, its Collateral Manager

		
	 By:
	 	 /s/ Frederick Wahl

		 	 Name:
	 	 Frederick Wahl

		 	 Title:
	 	 Managing Director

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 WATERFRONT CLO 2007-1, LTD.

		
	 By:
	 	 /s/ James M. Lisko

		 	 Name:
	 	 James M. Lisko

		 	 Title:
	 	 Senior Vice President

		 		 	 Grandview Capital Management, LLC

		 		 	 As Investment Manager

	
	 To approve the Waiver:

	
	 Name of Institution:

	
	 LATITUDE CLO II, LTD

		
	 By:
	 	 /s/ Kirk Wallace

		 	 Name:
	 	 Kirk Wallace

		 	 Title:
	 	 Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]