Document:

EXHIBIT 10.16

 Exhibit 10.16 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT is dated as of this 16th day of March,
2007, by and between TREX COMPANY, INC., a Delaware corporation (the “Debtor”), and BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation as successor by merger to Branch Banking and Trust Company of Virginia
(the “Collateral Agent”), as collateral agent for the benefit of the Secured Parties (as defined in the Intercreditor Agreement (as hereinafter defined)). 
 The Debtor, TREX Company, LLC, a Delaware limited liability company (“Trex LLC”) and Branch Banking and Trust Company, a North Carolina banking corporation (“BB&T”), are parties to a Credit
Agreement dated as of June 19, 2002, as amended (as currently amended and as from time to time hereafter amended, restated, supplemented or otherwise modified, the “Credit Agreement”), pursuant to which BB&T has made a
$100,000,000 revolving credit facility (the “Revolving Credit Facility”) and term loans in the principal amount of $8,418,780.30 (the “Term Loans”) available to the Debtor. The Debtor, Trex LLC and the Noteholders (as defined and
identified in the hereinafter defined Note Agreement) are parties to a Note Purchase Agreement dated as of June 19, 2002, as amended (as currently amended and as from time to time hereinafter amended, restated, supplemented or otherwise
modified, the “Note Agreement”), pursuant to which the Debtor and Trex LLC sold Senior Secured Notes (as defined in the Note Agreement) in the aggregate principal amount of $40,000,000 to the Noteholders. Effective December 31, 2002,
Trex LLC merged with and into the Debtor, with the Debtor being the surviving entity. 
 The Debtor and the Collateral Agent entered into a
Security Agreement dated as of June 19, 2002 (the “Original Security Agreement”) under and pursuant to the terms and provisions of the Credit Agreement and the Note Agreement. Under the Security Agreement, the Debtor granted a
security interest in various collateral described therein to the Collateral Agent for the benefit of the Secured Parties (as defined in the Original Security Agreement). In compliance with the terms and provisions of the Credit Agreement and
Section 22 of the Note Agreement, on November 1, 2004, BB&T and the Noteholders agreed to release the security interests granted under the Original Security Agreement and such security interests were released. 
 BB&T has now required the Debtor to regrant certain of the security interests created under and pursuant to the Original Security Agreement. Pursuant
to Section 22 of the Note Agreement, the Noteholders have also required the Debtor to regrant certain of the security interests created under and pursuant to the Original Security Agreement. In connection with the regrant of such security
interests, the Collateral Agent has entered into an Intercreditor and Collateral Agency Agreement dated of even date herewith by and among the Collateral Agent and certain Secured Parties identified and defined therein (as from time to time amended,
restated, supplemented or otherwise modified, the “Intercreditor Agreement”). 
 Accordingly, for and in consideration of good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Debtor and the Collateral Agent hereby agree as follows: 
 SECTION 1 – DEFINITIONS 
 The following terms shall have the following respective meanings: 
 “Accounts” means all of the Debtor’s now owned or hereafter acquired or arising “accounts,” as defined in the UCC,
including any rights to payment for the sale or lease of Goods or rendition of services, whether or not they have been earned by performance. 

 “Chattel Paper” means all of the Debtor’s now owned or hereafter acquired
“chattel paper,” as defined in the UCC, including electronic chattel paper. 
 “Collateral” has the meaning set
forth in Section 2. 
 “Collection Account” has the meaning set forth in Section 6.3. 
 “Dispute” has the meaning set forth in Section 10.4. 
 “Documents” means all “documents,” as defined in the UCC, including bills of lading, warehouse receipts or other documents of title, now owned or hereafter acquired by Debtor. 
 “Event of Default” and “Default” have the respective meanings assigned thereto in the Intercreditor Agreement.

 “Goods” means all “goods,” as defined in the UCC, now owned or hereafter acquired by the Debtor, wherever
located. 
 “Intercreditor Agreement” has the meaning set forth in the introductory paragraphs of this Agreement.

 “Inventory” means all of the Debtor’s now owned or hereafter acquired “inventory,” as defined in the UCC,
including all Goods, wherever located, to be furnished under any contract of service or held for sale or lease, all raw materials, work-in-process, finished goods, and other materials of any kind, nature or description which are used or consumed in
the Debtor’s business. 
 “Lease” has the meaning set forth in Section 4.4 hereof. 
 “Obligations” has the meaning set forth in Section 3. 
 “Permitted Liens” means “Permitted Liens” under the Credit Agreement and the Liens permitted under Section 10.3 of the
Note Agreement. 
 “Proprietary Rights” means all of the Debtor’s now owned or hereafter arising or acquired: licenses,
franchises, permits, patents, patent rights, copyrights, works which are the subject matter of copyrights, trademarks, service marks, trade names, trade styles, patent, trademark and service mark applications, and all licenses and rights related to
any of the foregoing, and all other rights under any of the foregoing, all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the foregoing, and all rights to sue for past, present and future infringement
of any of the foregoing. 
  

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 “Secured Party” and “Secured Parties” have the meanings assigned
thereto in the Intercreditor Agreement. 
 “Secured Obligations” has the meaning assigned thereto in the Intercreditor
Agreement. 
 “Supporting Obligations” means all supporting obligations as such term is defined in the UCC. 
 “UCC” means the Uniform Commercial Code, as in effect from time to time, of the Commonwealth of Virginia or of any other state the laws
of which are required as a result thereof to be applied in connection with the issue of perfection of security interests. 
 “Uniform
Commercial Code jurisdiction” means any jurisdiction that has adopted “Revised Article 9” of the UCC on or after July 1, 2001. 
 All
other capitalized terms used but not otherwise defined herein have the meanings given to them in the Credit Agreement. All other undefined terms contained in this Security Agreement, unless the context indicates otherwise, have the meanings provided
for by the UCC to the extent the same are used or defined therein. 
 SECTION 2 – GRANT OF SECURITY INTEREST 
 The Debtor hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a continuing security interest in, lien on, assignment of
and right of set-off against, all of the following property and assets of the Debtor, whether now owned or hereafter acquired or arising, regardless of where located: 
 (i) all Accounts; 
 (ii) all Inventory; 
 (iii) all Chattel Paper to the extent that such Chattel Paper constitutes proceeds of any of the Accounts or Inventory; 
 (iv) all Documents to the extent such Documents constitute proceeds of any of the Accounts or Inventory; 
 (v) all Supporting Obligations to the extent such Supporting Obligations constitute proceeds of any of the Accounts; 
 (vi) the Collection Account; 
 (vii) all
books and records related to or referring to any of the foregoing, including books, records, account ledgers, data processing records, and computer software; and 
 (viii) all proceeds of any of the foregoing, including, but not limited to, proceeds of any insurance policies (whether or not such policy shall contain an endorsement in favor of the Collateral Agent or any Secured
Party), claims against third parties, and condemnation or requisition payments with respect to all or any of the foregoing. 
  

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 All of the foregoing is herein collectively referred to as the “Collateral.” 
 SECTION 3 – OBLIGATIONS SECURED 
 The
security interests granted to the Collateral Agent herein for the ratable benefit of the Secured Parties shall secure: (a) the payment and performance of the Secured Obligations; and (b) all reasonable costs and expenses, including,
without limitation, reasonable attorneys’ fees incurred by the Collateral Agent or the Secured Parties, or any of them, for taxes and/or insurance relating to, or maintenance or preservation of, the Collateral or any part thereof or incurred by
the Collateral Agent or any of the Secured Parties, or any of them, arising from or in connection with the modification, workout, collection or enforcement of any of Secured Obligations, including, without limitation, any such collection or
enforcement of the Obligations by any action or participation in, or in connection with a case or proceeding under, Chapter 7 or Chapter 11 of the U.S. Bankruptcy Code or any successor statute (collectively, the “Obligations”).

 SECTION 4 – REPRESENTATIONS 
 The Debtor represents and warrants to the Collateral Agent and to each of the Secured Parties (which representations and warranties will survive the execution of the Revolving Note, the making of the Revolving Loans and the purchase of the
Notes by the purchasers identified in the Note Agreement) that: 
 4.1 Ownership of Collateral. The Debtor now owns or will
become the owner of the Collateral in which it has granted the Collateral Agent a security interest hereunder and has the unrestricted right to grant the Collateral Agent a security interest therein. 
 4.2 Location of Records. The chief executive office of the Debtor and the principal office where the Debtor maintains its books and records
relating to the Collateral is located at the address listed next to the Debtor’s name on Schedule 4.2 attached hereto and by this reference incorporated herein. The Debtor will not change the location of its chief executive office or the
location of the principal office in which it maintains its books and records without giving the Collateral Agent and each of the Secured Parties at least thirty (30) days’ prior written notice and, unless prior to such change, the Debtor
shall have taken all action reasonably necessary or desirable or that the Collateral Agent may reasonably request, to preserve, perfect, confirm and protect in the manner and to the extent provided for in this Security Agreement the security
interests granted hereby. 
 4.3 Accounts. (a) Each existing Account represents, and each future Account will represent, a
bona fide sale and delivery of Inventory by the Debtor, or rendition of services by the Debtor, in the ordinary course of the Debtor’s business; (b) each existing Account is, and each future Account will be, for a liquidated
amount payable by the Account Debtor thereon on the terms set forth in the invoice therefor, without any offset, deduction, defense, or counterclaim except those known to the Debtor and disclosed to the Collateral Agent pursuant to this Security

  

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Agreement; (c) no payment will be received with respect to any Account, and no credit, discount, or extension, or agreement therefor will be granted on
any Account, except as reported to the Collateral Agent in Borrowing Base Certificates delivered in accordance with the Credit Agreement; and (d) all Inventory described in any invoice representing a sale of Goods will have been delivered to
the Account Debtor and all services of the Debtor described in each invoice will have been performed. 
 4.4 Inventory. As of
the date hereof, the Inventory is maintained at the locations specified on Schedule 4.4 attached hereto and by this reference incorporated herein. Except for Inventory (i) in transit to manufacturing plants or warehouses owned or leased
by the Debtor or to customers in the ordinary course of business, and (ii) finished goods Inventory consigned to either Home Depot U.S.A., Inc., a Delaware corporation (“The Home Depot”), or Lowe’s Companies, Inc., a North
Carolina corporation (“Lowe’s”), the Debtor does not store and will not store any Inventory on any real property which is not owned by the Debtor in fee simple or subject to a lease of real property under which the Debtor is the
lessee (each such lease, a “Lease”). The Debtor will not permit any Inventory having an aggregate value of $500,000 or greater to be maintained or stored in any location other than those listed on Schedule 4.4 without giving the
Collateral Agent at least thirty (30) days’ prior written notice and, unless prior to such change, the Debtor shall have taken all action reasonably necessary or desirable or that the Collateral Agent may reasonably request, to preserve,
perfect, confirm and protect in the manner and to the extent provided for in this Security Agreement the security interests granted hereby. Without limiting the foregoing, the Debtor represents that all of its finished goods Inventory (other than
finished goods Inventory in transit) is, and covenants that all of its finished goods Inventory will be, located (a) on premises owned by the Debtor in fee simple, (b) on premises leased by the Debtor, provided that the Collateral Agent
has received an executed landlord waiver from the landlord of such premises in form and substance satisfactory to the Collateral Agent if the Inventory located thereon on or after May 16, 2007 has an aggregate value of $500,000 or greater,
(c) in a warehouse or with a bailee, provided that the Collateral Agent has received an executed bailee letter from the applicable Person in form and substance satisfactory to the Collateral Agent if the Inventory located thereon on or after
May 16, 2007 has an aggregate value of $500,000 or greater, (d) in The Home Depot distribution centers pursuant to a written consignment agreement between the Debtor and The Home Depot, provided that the Collateral Agent shall have
received an executed consignee agreement from The Home Depot in form and substance satisfactory to the Collateral Agent if the Inventory located therein has an aggregate value of $1,000,000 or greater, or (e) in Lowe’s distribution centers
pursuant to a written consignment agreement between the Debtor and Lowe’s, provided that the Collateral Agent shall have received an executed consignee agreement from Lowe’s in form and substance satisfactory to the Collateral Agent if the
Inventory located therein has an aggregate value of $1,000,000 or greater. Notwithstanding the foregoing, the failure of the Collateral Agent to have received an executed landlord lien waiver referred to in clause (b) of this Section 4.4
for a particular location, an executed bailee letter referred to in clause (c) of this Section 4.4 for a particular warehouse or an executed bailee letter referred to in clause (c) of this Section 4.4 from a particular bailee
shall not be a default hereunder (or a Default or an Event of Default); instead, none of the Inventory located at such leased location, in such warehouse or with such bailee shall be Eligible Inventory. Furthermore, notwithstanding the foregoing,
the failure of the Collateral Agent to have received one or both of the consignee agreements referred to in clauses (d) and (e)

  

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of this Section 4.4 shall not be a default hereunder (or a Default or an Event of Default); instead, as further provided in Section 2.01(c)iii. of
the Credit Agreement, any consigned Inventory with a value equal to or greater than $1,000,000 which is held by a consignee that has not executed and delivered to the Collateral Agent such a consignee agreement shall not be Eligible Inventory.

 4.5 Authorization, Execution, Delivery and Enforceability. (a) The execution, delivery and performance by the Debtor of
this Security Agreement, the landlord lien waivers required by Section 4.4 of this Security Agreement, the consignee agreement between the Collateral Agent and The Home Depot (in the form attached as Exhibit K-1 to that certain Eighth
Amendment to Credit Agreement dated as of even date hereof (the “Eighth Amendment”) between the Debtor and Branch Banking and Trust Company), the consignment agreement between the Collateral Agent and Lowe’s (in the form attached as
Exhibit K-2 to the Eighth Amendment), and the Intercreditor Agreement are within its corporate powers, have been duly authorized by all necessary corporate action, require no action by or in respect of, or filing with, any governmental body,
agency or official and do not contravene or constitute (with or without the giving of notice or lapse of time or both) a default under any provision of applicable law or of the organizational documents of the Debtor or any Subsidiary or of any
agreement, judgment, injunction, order, decree or other instrument binding upon or affecting the Debtor or any Subsidiary or result in the creation or imposition of any Lien on any asset of the Debtor or any of its Subsidiaries other than a Lien in
favor of the Collateral Agent as provided in this Security Agreement. 
 (b) This Security Agreement and the Intercreditor Agreement
constitute, and the landlord lien waivers required by Section 4.4 of this Security Agreement and the two consignee agreements described in Section 4.4 of this Security Agreement when executed and delivered by the Debtor will constitute,
the valid and binding agreements of the Debtor, enforceable against the Debtor in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and by equitable principles of general applicability (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 4.6 Documents and Chattel Paper. All Documents and Chattel Paper are and will be owned by the Debtor, free and clear of all Liens other than Permitted Liens. If the Debtor retains possession of any
Chattel Paper with the Collateral Agent’s consent, such Chattel Paper shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby are subject to the security interest of Branch Banking and Trust
Company, as Collateral Agent, for the benefit of the Secured Parties under and pursuant to Intercreditor and Collateral Agency Agreement dated as of March 16, 2007.” 
 4.7 [Reserved]. 
 4.8 Prior
Encumbrances. There are no existing mortgages, pledges, liens or other encumbrances of any kind upon, or any security interests in, any of the Collateral, except for Permitted Liens. The Debtor will defend the Collateral against all claims
and demands of all Persons at any time claiming any interest therein, except for claims and demands relating to Permitted Liens. 
  

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 4.9 Financing Statements. Except for financing statements specified on
Schedule 4.9 attached hereto and by this reference incorporated herein, no financing statement under the UCC of any state which names the Debtor or any of its trade names or divisions as debtor is on file in any state or other
jurisdiction, and the Debtor has not signed or authorized any financing statement to be filed and the Debtor has not signed any security agreement authorizing any secured party thereunder to file any financing statements, except financing statements
filed to perfect Permitted Liens. 
 4.10 Organizational Information. The jurisdiction of incorporation, the organizational
identification number and the Federal Employer Identification Number of the Debtor are specified next to the Debtor’s name on Schedule 4.10 attached hereto and by this reference incorporated herein. The Debtor has only one state of
organization. 
 SECTION 5 – COVENANTS 
 Until all of the Obligations have been finally and indefeasibly paid and satisfied in full and the Revolving Commitment terminated, the Debtor covenants and agrees that: 
 5.1 Perfection and Protection of Security Interest. (a) The Debtor shall, at its expense, perform all steps reasonably requested by the
Collateral Agent at any time to perfect, maintain, protect, and enforce the Collateral Agent’s Liens, including: (i) filing financing or continuation statements, and amendments thereof, in form and substance reasonably satisfactory to the
Collateral Agent; (ii) when any Event of Default has occurred and is continuing, transferring Inventory to warehouses or other locations designated by the Collateral Agent; (iii) placing notations on the Debtor’s books of account to
disclose the Collateral Agent’s security interest; and (iv) taking such other steps as are deemed reasonably necessary or desirable by the Collateral Agent to maintain and protect the Collateral Agent’s Liens. Notwithstanding the
foregoing, unless any Event of Default shall have occurred and be continuing, the Debtor shall not be required to take any action to perfect the Collateral Agent’s Liens in electronic Chattel Paper in an aggregate amount of less than $100,000.
The Debtor agrees that a carbon, photographic, photostatic, or other reproduction of this Security Agreement or of a financing statement is sufficient as a financing statement. 
 (b) Upon the Collateral Agent’s request, the Debtor shall deliver to the Collateral Agent all Collateral consisting of negotiable or non-negotiable
Documents and Chattel Paper promptly after the Debtor receives the same. 
 (c) Subject to Section 5.1(a) hereof, the Debtor shall take
all steps necessary to grant the Collateral Agent control of all electronic Chattel Paper in accordance with the UCC. 
 (d) The Debtor
hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that contain any information
required by part 5 of Article 9 of the UCC of the State of Delaware for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Debtor is an organization, the type of organization and any
organizational identification number issued to the Debtor. The Debtor agrees to furnish any such information to the Collateral Agent promptly 

  

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upon request, and to pay on demand all fees, costs and expenses associated with all such filings. The Debtor also ratifies its authorization for the
Collateral Agent to have filed in any Uniform Commercial Code jurisdiction any like initial financing statements or amendments thereto if filed prior to the date hereof. 
 (e) Upon the Collateral Agent’s request, but not more frequently than once during each calendar year, the Debtor shall provide to the Collateral Agent a certificate of good standing from its state of
incorporation or organization. 
 (f) Without limiting the prohibitions on mergers involving the Debtor contained in the Credit Agreement and
the Note Agreement, the Debtor will not change its name, operate under any assumed name, change its structure, reincorporate or reorganize itself, or change its jurisdiction of incorporation without giving the Collateral Agent at least thirty
(30) days’ prior written notice and, unless prior to such change, the Debtor shall have taken all action reasonably necessary or desirable or that the Collateral Agent may reasonably request, to preserve, perfect, confirm and protect in
the manner and to the extent provided for in this Security Agreement the security interests granted hereby. 
 (g) The Debtor acknowledges
that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement without the prior written consent of the Collateral Agent and agrees that it will not do so without the prior
written consent of the Collateral Agent, subject to the Debtor’s rights under Section 9-509(d)(2) of the UCC. 
 (h) The Debtor
shall not, except in connection with any Permitted Lien, enter into any contract or agreement that restricts or prohibits the grant of a security interest in Accounts, Chattel Paper or the proceeds of the foregoing to the Collateral Agent.

 5.2 Accounts. (a) The Debtor shall not re-date any invoice, provided that the Debtor shall have the right, in the exercise
of its reasonable business judgment, to re-date invoices that in the aggregate do not exceed at any one time $100,000. The Debtor shall not make sales on extended terms dating beyond that customary in the Debtor’s business (which customary
terms include customer incentive terms) or extend or modify any Account except in the ordinary course of business. 
 (b) The Debtor shall
not accept any note or other instrument (except a check or other instrument for the immediate payment of money) with respect to any Account without providing to the Collateral Agent prompt written notice thereof. Any such instrument shall be
considered as evidence of proceeds of the Account and not payment thereof and the Debtor will promptly deliver such instrument to the Collateral Agent, endorsed without recourse by the Debtor to the Collateral Agent in a manner reasonably
satisfactory in form and substance to the Collateral Agent. 
 (c) The Debtor shall notify the Collateral Agent promptly of all disputes and
claims in excess of $250,000 with any Account Debtor, and agrees to settle, contest, or adjust such dispute or claim at no expense to the Collateral Agent. No discount, credit or allowance shall be granted to any such Account Debtor without the
Collateral Agent’s prior written 

  

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consent, except for discounts, credits and allowances made or given in the ordinary course of the Debtor’s business when no Event of Default exists
hereunder. The Debtor shall send the Collateral Agent a copy of each credit memorandum in excess of $250,000 as soon as issued, and the Debtor shall promptly report that credit on Borrowing Base Certificates submitted by it. 
 (d) If an Account Debtor returns any Inventory to the Debtor when no Event of Default exists, then the Debtor shall promptly determine the reason for
such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Debtor shall immediately report to the Collateral Agent any return involving an amount in excess of $250,000. Each such report shall indicate the
reasons for the return and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the Debtor when any Event of Default exists, the Debtor, upon the request of the Collateral Agent, shall:
(i) hold the returned Inventory in trust for the Collateral Agent; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Collateral Agent’s written
instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Agent’s prior written consent. All returned Inventory shall be subject to the Collateral Agent’s Liens thereon. Whenever any
Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory. 
 5.3 Inventory. (a) The Debtor will keep its Inventory in good and marketable condition, except for damaged or defective Goods arising
in the ordinary course of the Debtor’s business. The Debtor will not, without the prior written consent of the Collateral Agent, acquire or accept any Inventory on consignment or approval. The Debtor agrees that all Inventory produced by the
Debtor in the United States of America will be produced in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations, and orders thereunder. The Debtor will conduct a physical count of the Inventory at
least once during each of its fiscal years, and after and during the continuation of any Event of Default, at such other times as the Collateral Agent requests. The Debtor will maintain a perpetual inventory reporting system at all times. The Debtor
will not, without the Collateral Agent’s written consent, sell any Inventory on a bill-and-hold, guaranteed sale, sale and return, sale on approval, consignment, or other repurchase or return basis, other than the sale of finished goods
Inventory to The Home Depot and Lowe’s on consignment in accordance with the consignment agreements and all other documents related to the consignment arrangements between the Debtor and each of The Home Depot and Lowe’s, true and complete
copies of which on the date hereof have been provided to the Collateral Agent (collectively, the “Consignment Agreements”). The Debtor agrees that it (i) shall provide the Collateral Agent a copy of any material amendment,
restatement, replacement, supplement or other modification of or to either of the Consignment Agreements not later than twenty (20) days after the effective date of any such amendment, restatement, replacement, supplement or other modification,
(ii) shall immediately notify the Collateral Agent in writing of the occurrence of any default or event of default under or with respect to, or the termination of, either of the Consignment Agreements, (iii) shall file and continuously
maintain without any lapse in filing appropriate financing statements appropriately completed for filing under the Uniform Commercial Code of each jurisdiction in which the filing of a financing statement may be required, or reasonably requested

  

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by the Collateral Agent, naming each of The Home Depot and Lowe’s as debtor, the Debtor as secured party and the Collateral Agent as assignee with
respect to the Inventory that has been sold to each of The Home Depot and Lowe’s on consignment, (iv) shall deliver to the Collateral Agent copies of reports, and updates of such reports as the Collateral Agent shall reasonably request,
from an independent search service reasonably satisfactory to the Collateral Agent listing all effective financing statements that name The Home Depot as debtor that are filed in Delaware, together with copies of such financing statements filed in
Delaware, and the Debtor shall deliver to the Collateral Agent copies of all notices that the Debtor has sent to secured parties of record disclosed by such reports that have filed financing statements covering inventory of The Home Depot
manufactured by the Debtor, which notices shall be in form and substance satisfactory to the Collateral Agent, (v) shall deliver to the Collateral Agent copies of reports, and updates of such reports as the Collateral Agent shall reasonably
request, from an independent search service reasonably satisfactory to the Collateral Agent listing all effective financing statements that name Lowe’s as debtor that are filed in North Carolina, together with copies of such financing
statements filed in North Carolina, and the Debtor shall deliver to the Collateral Agent copies of all notices that the Debtor has sent to secured parties of record disclosed by such reports that have filed financing statements covering inventory of
Lowe’s manufactured by the Debtor, which notices shall be in form and substance satisfactory to the Collateral Agent, (vi) upon request of the Collateral Agent, shall deliver to the Collateral Agent all reports, lists, certificates and
other papers required to be delivered by The Home Depot under the consignment agreement between the Debtor and The Home Depot and (vii) upon request of the Collateral Agent, shall deliver to the Collateral Agent all reports, lists, certificates
and other papers required to be delivered by Lowe’s under the consignment agreement between the Debtor and Lowe’s. 
 (b) In
connection with all Inventory financed by a letter of credit with a face amount in excess of $150,000, the Debtor will, at the Collateral Agent’s request, instruct all suppliers, carriers, forwarders, customs brokers, warehouses or others
receiving or holding cash, checks, Inventory or Documents in which the Collateral Agent holds a security interest to deliver them to the Collateral Agent and/or subject to the Collateral Agent’s order, and if they shall come into the
Debtor’s possession, to deliver them, upon request, to the Collateral Agent in their original form. The Debtor shall also, at the Collateral Agent’s request, designate the Collateral Agent as the consignee on all negotiable and
non-negotiable Documents. 
 5.4 [Reserved]. 
 5.5 [Reserved].  
 5.6 Maintenance of Records. The Debtor will keep and maintain, at
its own cost and expense, in a manner consistent with past practice, complete and current records of the Collateral owned by it, including, but not limited to, a record of all shipments received, deliveries made, contracts performed, payments
received, credits granted thereon and other dealings therewith. The Debtor shall timely provide the Collateral Agent with all such collateral reports as are required by the Credit Agreement and the Note Agreement, and all such additional reports as
the Collateral Agent shall reasonably require. These reports shall be in the form previously provided to the Collateral Agent for its review or in form and detail as is reasonably satisfactory to the Collateral Agent. The Debtor will use all
reasonable efforts to protect its 

  

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records and books pertaining to any Collateral against fire, theft, loss or any other manner of destruction or loss. Such protection will consist of such
protective means and devices as from time to time reasonably deemed necessary by the Collateral Agent. If the Debtor maintains its records of Accounts on a computer, it will maintain backup copies of such records, updated at reasonable intervals.

 5.7 Inspection and Delivery of Collateral, Books and Records. The Collateral Agent or the Secured Parties, or any of them,
or their respective agents, may at any reasonable time and from time to time and, if no Event of Default has occurred, upon reasonable prior notice, inspect the Collateral, and the books and records of the Debtor pertaining thereto. With the
frequency and as provided in the Credit Agreement if no Event of Default has occurred and is continuing (there being no limitation on the frequency if any Event of Default has occurred and is continuing), the Debtor shall, at its own expense and
cost, deliver or make available, at the Collateral Agent’s election, books and records pertaining to the Accounts (including Chattel Paper) to the Collateral Agent, or any designated agent of the Collateral Agent, at such time and place as the
Collateral Agent may reasonably request. 
 5.8 Expenses. The Debtor shall be liable for, and agrees to pay the Collateral
Agent on demand, any and all reasonable expenses incurred or paid by the Collateral Agent or the Secured Parties, or any of them, in protecting or enforcing their respective rights under this Security Agreement, including, without limitation,
reasonable attorneys’ fees, whether incurred in collecting specific Accounts or otherwise. If the Debtor shall fail, in violation of the terms of the Credit Agreement or the Note Agreement, to discharge taxes, liens, security interests or other
encumbrances on the Collateral, other than Permitted Liens, or to repair any damage to the Collateral, or to maintain or preserve the Collateral or to maintain adequate insurance on the Collateral, in each case within twenty (20) days after
written notice from the Collateral Agent, the Collateral Agent may, at its option, discharge such taxes, liens, security interests or other encumbrances on or in the Collateral, pay for the repair or damage to the Collateral, pay for the maintenance
and preservation of the Collateral, and/or pay for insurance on the Collateral. The Debtor agrees to reimburse the Collateral Agent on demand for any payments so made and, until such reimbursement, to pay interest thereon at a fluctuating rate of
interest equal to the Default Rate applicable to the Revolving Loans from the date of the payment until reimbursement therefor, which reimbursement and interest shall be a part of the Obligations. Any payment made or other action taken by the
Collateral Agent under this Section 5.8 shall be without prejudice to any right to assert an Event of Default hereunder and to proceed thereafter as herein provided. 
 5.9 Insurance. The Debtor will continuously insure the Collateral with a responsible company or companies reasonably satisfactory to the Collateral Agent against fire (with extended coverage) in the full
insurable value of the Collateral, and against such other casualties and in such amounts and with such deductibles as are usually carried by owners of similar businesses and properties in the same general areas in which the Debtor operates. The
insurance policy (or policies) shall have attached thereto a standard loss payable clause, without contribution, in favor of the Collateral Agent as agent for the Secured Parties as its interest may appear, and shall otherwise be in form reasonably
acceptable to the Collateral Agent, and the Debtor will cause such policy (or policies) to provide that it (they) may not be canceled without thirty (30) days’ prior written notice to the Collateral Agent. The Debtor will deliver to the
Collateral Agent as agent for the Secured Parties evidence of the renewal or continuation of insurance at least ten (10) days before the expiration of the existing insurance. 
  

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 5.10 Damage or Loss and Replacement. (a) The Debtor shall promptly notify the
Collateral Agent of any fire, theft, water damage, vandalism or other damage to or loss of any Inventory to the extent that the uninsured portion of such damaged or lost Inventory is in excess of $250,000. In the case of any loss, damage to or
destruction of the Inventory or any part thereof, the Debtor, whether or not the insurance proceeds, if any, received on account of such damage or destruction shall be sufficient for that purpose, at the Debtor’s cost and expense, will promptly
repair or replace the Inventory so lost, damaged or destroyed. 
 (b) In the event that the Debtor or the Collateral Agent shall receive any
proceeds of insurance with respect to Inventory, provided no Default or Event of Default then exists, (a) the Debtor shall pay to the Collateral Agent, or the Collateral Agent shall retain, as applicable, an amount of such proceeds equal to the
balance then outstanding under the Revolving Credit Loan Obligations, which amount the Collateral Agent shall promptly pay to BB&T for application to the Revolving Credit Loan Obligations, and the Debtor shall be entitled to retain, or the
Collateral Agent shall pay to the Debtor, as applicable, any such excess insurance proceeds or (b) if there is no balance then outstanding under the Revolving Credit Loan Obligations, then the Debtor shall be entitled to retain, or the
Collateral Agent shall pay to the Debtor, as applicable, all such proceeds of insurance with respect to Inventory. 
 5.11 Further
Assurances. Subject to the provisions of Section 5.1(a) hereof, the Debtor will from time to time, at the sole expense of the Debtor, promptly execute, deliver, file and record (as appropriate) all further instruments and documents, and
take all further action as the Collateral Agent or the Secured Parties, or any of them, may reasonably deem necessary or prudent in order to perfect, continue and protect the security interests granted hereby or to enable the Collateral Agent or the
Secured Parties, or any of them, to exercise and enforce its rights and remedies hereunder with respect to the Collateral or any part thereof. 
 SECTION
6 – SALES AND COLLECTIONS 
 6.1 Processing and Sales of Inventory. So long as no Event of Default shall have
occurred and be continuing, the Debtor shall have the right in the regular course of its business to process and sell the Inventory. The security interests granted hereunder to the Collateral Agent as agent for the Secured Parties shall attach to
all proceeds of all sales, leases, or other dispositions of the Inventory. 
 6.2 Inventory Controls. Upon the occurrence and
during the continuation of any Event of Default, the Collateral Agent or its agents may secure all entrances to those parts of the premises of the Debtor in which any Inventory is stored and keep such entrances locked or otherwise sealed or
institute such other control measures with respect to the movement of Inventory as the Collateral Agent may deem necessary or prudent, subject to the rights of third parties under the Leases. 
 6.3 Collection of Accounts. The Collateral Agent as agent for the Secured Parties hereby authorizes the Debtor to collect and dispose of
the proceeds of the Accounts, which 

  

 - 12 - 

 
authority the Collateral Agent may curtail or terminate at any time following the occurrence and during the continuance of any Event of Default. After such
authority has been curtailed or terminated, the Debtor shall, upon receipt of all checks, drafts, cash, and other remittances in payment of or on account of the Accounts, deposit the same in a special account designated by the Collateral Agent, over
which account the Collateral Agent as agent for the Secured Parties alone shall have the power of withdrawal (the “Collection Account”). The remittance of the proceeds of such Accounts shall not, however, constitute payment or liquidation
of such Accounts until the Collateral Agent as agent for the Secured Parties shall receive good funds for such proceeds. 
 For purposes of
computing interest, the Collateral Agent shall treat deposited checks, drafts and other items as collected in accordance with the Collateral Agent’s normal availability schedule, but in doing so the Collateral Agent is not agreeing that such
funds have in fact been paid, nor is the Collateral Agent as agent for the Secured Parties waiving any right it may have to charge back returned items to the Debtor and to collect interest on such charged-back items. Funds placed in the Collection
Account shall be held by the Collateral Agent as agent for the Secured Parties as security for the Obligations. These proceeds shall be deposited in precisely the form received, except for the endorsement of the Debtor where necessary to permit
collection of items, which endorsement the Debtor agrees to make, and which endorsement the Collateral Agent is also hereby authorized to make on behalf of the Debtor. Pending such deposit, the Debtor agrees that it will not commingle any such
checks, drafts, cash or other remittances with any funds or other property of the Debtor but will hold them separate and apart therefrom, and upon an express trust for the Collateral Agent until deposit thereof is made in the Collection Account. The
Collateral Agent as agent for the Secured Parties will from time to time apply the funds on deposit in the Collection Account against the Obligations in such order of application as is required by the Intercreditor Agreement. 
 SECTION 7 – POWER OF ATTORNEY 
 Effective
upon the occurrence and during the continuance of any Event of Default, the Debtor hereby appoints the Collateral Agent and the Collateral Agent’s designee as the Debtor’s attorney-in-fact, with full power of substitution: (a) to
endorse the Debtor’s name on any checks, notes, acceptances, money orders, or other forms of payment or security constituting Collateral that come into the Collateral Agent’s or any Secured Party’s possession; (b) to sign the
Debtor’s name on any invoice, bill of lading, warehouse receipt or other negotiable or non-negotiable Document constituting Collateral, on drafts against customers, on assignments of Accounts, on notices of assignment, financing statements and
other public records and to file any such financing statements by electronic means with or without a signature as authorized or required by applicable law or filing procedure; (c) to execute loss claims and other applications for payment of
benefits under any insurance policy covering any of the Collateral in the name of the Debtor or the Collateral Agent, to receive all monies and endorse drafts, checks, and other instruments for the payment of any proceeds of any insurance covering
any of the Collateral, (d) to notify the post office authorities to change the address for delivery of the Debtor’s mail to an address designated by the Collateral Agent and to receive, open and dispose of all mail addressed to the Debtor;
(e) to send requests for verification of Accounts to customers or Account Debtors; (f) to complete in the Debtor’s name or the Collateral Agent’s name, any order, sale or transaction, obtain the necessary Documents in connection
therewith, and collect the proceeds thereof; (g) to 

  

 - 13 - 

 
clear Inventory through customs in the Debtor’s name, the Collateral Agent’s name or the name of the Collateral Agent’s designee, and to sign
and deliver to customs officials powers of attorney in the Debtor’s name for such purpose; (h) to the extent that the Debtor’s authorization given in Section 5.1(d) of this Security Agreement is not sufficient (which
authorization in Section 5.1(d) is effective, and which powers under Section 5.1(d) may be exercised by the Collateral Agent, before the occurrence of an Event of Default), to file such financing statements with respect to this Security
Agreement, with or without the Debtor’s signature, or to file a photocopy of this Security Agreement in substitution for a financing statement, as the Collateral Agent may deem appropriate and to execute in the Debtor’s name such financing
statements and amendments thereto and continuation statements which may require the Debtor’s signature; and (i) to do all things necessary to carry out the terms of this Security Agreement. The Collateral Agent shall not be obligated to do
any of the acts or exercise any of the powers hereinabove authorized, but, if the Collateral Agent elects to do any such act or exercise any such power, unless the Collateral Agent is guilty of gross negligence or willful misconduct in the exercise
of such power, it shall not be accountable to the Debtor for more than it actually receives as a result of such exercise of power, and, in any event, none of the Collateral Agent or any of the Secured Parties, nor any of their respective attorneys,
will be liable for any acts or omissions or for any error of judgment or mistake of fact or law except for their gross negligence or willful misconduct. This appointment shall be deemed a power coupled with an interest, shall be irrevocable, and
shall not terminate until the Obligations have been fully satisfied, the Credit Agreement has been terminated and the Notes (as defined in the Note Agreement) have been paid in full under the Note Agreement. The Debtor hereby ratifies and approves
all acts of such attorney-in-fact. 
 SECTION 8 – NO LIABILITY 
 (a) The Debtor assumes all responsibility and liability arising from or relating to the use, sale, license or other disposition of the Collateral. The
Obligations shall not be affected by any failure of the Collateral Agent or any of the Secured Parties to take any steps to perfect the Collateral Agent’s Liens or to collect or realize upon the Collateral, nor shall loss of or damage to the
Collateral release the Debtor from any of the Obligations. Following the occurrence and during the continuation of any Event of Default, the Collateral Agent may (but shall not be required to), without notice to or consent from the Debtor, sue upon
or otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions, or releases, and take or omit to
take any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the foregoing, without discharging
or otherwise affecting the liability of the Debtor for the Obligations, or any other agreement now or hereafter existing between the Collateral Agent and/or any Secured Party and the Debtor. 
 (b) It is expressly agreed by the Debtor that, anything herein to the contrary notwithstanding, the Debtor shall remain liable under each of its
contracts and each of its licenses to observe and perform all the conditions and obligations to be observed and performed by it thereunder. None of the Collateral Agent or any of the Secured Parties shall have any obligation or liability under any
contract or license by reason of or arising out of this Security Agreement or the granting herein of a Lien thereon or the receipt by the Collateral Agent or any Secured Party of any payment relating to any contract or license pursuant hereto. None
of the Collateral 

  

 - 14 - 

 
Agent or any Secured Party shall be required or obligated in any manner to perform or fulfill any of the obligations of the Debtor under or pursuant to any
contract or license, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any contract or license, or to present or file any claims,
or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
 (c) The Collateral Agent may at any time after any Event of Default shall have occurred and be continuing (or if any rights of set-off (other than
set-offs against an Account arising under the contract giving rise to the same Account) or contra accounts may be asserted with respect to the following), without prior notice to the Debtor, notify Account Debtors, and other Persons obligated on the
Collateral that the Collateral Agent has a security interest therein, and that payments shall be made directly to the Collateral Agent, for the benefit of the Secured Parties. Upon the request of the Collateral Agent, the Debtor shall so notify
Account Debtors, and other Persons obligated on Collateral. Once any such notice has been given to any Account Debtor or other Person obligated on the Collateral, the Debtor shall not give any contrary instructions to such Account Debtor or other
Person without the Collateral Agent’s prior written consent. 
 (d) After the occurrence and during the continuance of any Event of
Default, the Collateral Agent may at any time in the Collateral Agent’s own name or in the name of the Debtor communicate with Account Debtors and parties to contracts and agreements to which the Debtor is a party to verify with such Persons,
to the Collateral Agent’s satisfaction, the existence, amount and terms of Accounts, contracts and agreements and Chattel Paper. If any Event of Default shall have occurred and be continuing, the Debtor, at its own expense, shall cause the
independent certified public accountants then engaged by the Debtor to prepare and deliver to the Collateral Agent and each of the Secured Parties at any time and from time to time promptly upon the Collateral Agent’s request the following
reports with respect to the Debtor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts as the Collateral Agent may request. The Debtor, at its
own expense, shall deliver to the Collateral Agent the results of each physical verification, if any, which the Debtor may in its discretion have made, or caused any other Person to have made on its behalf, of all or any portion of its Inventory.

 (e) The Collateral Agent shall use reasonable care with respect to the Collateral in its possession or under its control. The Collateral
Agent shall not have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Collateral Agent, or any income thereon or as to the preservation of rights against prior parties or
any other rights pertaining thereto. 
 SECTION 9 – DEFAULT AND REMEDIES 
 (a) In addition to all other rights and remedies granted to it under this Security Agreement, the Credit Agreement, the other Loan Documents, the Note
Agreement, and under any other instrument or agreement securing, evidencing or relating to any of the Obligations, upon the occurrence and during the continuance of any Event of Default, the Collateral Agent, as agent for the Secured 

  

 - 15 - 

 
Parties, may, subject to the provisions of the Intercreditor Agreement, exercise all rights and remedies of a secured party under the UCC. Without limiting
the generality of the foregoing, the Debtor expressly agrees that in any such event the Collateral Agent, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of
public or private sale) to or upon the Debtor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the UCC and other applicable law), may forthwith enter upon
the premises of the Debtor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment or giving the Debtor or any other Person notice and opportunity for a hearing on the Collateral
Agent’s claim or action and may collect, receive, assemble, process, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase, or sell or otherwise
dispose of and deliver the Collateral (or contract to do so), or any part thereof, in one or more parcels at a public or private sale or sales, at any exchange at such prices as it may deem acceptable, for cash or on credit or for future delivery
without assumption of any credit risk. The Collateral Agent shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of the Collateral Agent and the
Secured Parties the whole or any part of the Collateral so sold, free of any right or equity of redemption, which equity of redemption the Debtor hereby releases. Such sales may be adjourned and continued from time to time with or without notice.
The Collateral Agent shall have the right to conduct such sales on the Debtor’s premises or elsewhere and shall have the right to use the Debtor’s premises without charge for such time or times as the Collateral Agent deems necessary or
advisable. Expenses of retaking, holding, preparing for sale, selling and the like shall include the reasonable attorneys’ fees and legal expenses of the Collateral Agent and the Secured Parties, and each of them. 
 (b) After the occurrence and during the continuance of any Event of Default, the Debtor further agrees, at the Collateral Agent’s request, to
assemble the Collateral and make it available to the Collateral Agent at a place or places designated by the Collateral Agent which are reasonably convenient to the Collateral Agent and the Debtor, whether at the Debtor’s premises or elsewhere.
Until the Collateral Agent is able to effect a sale, lease, or other disposition of Collateral, the Collateral Agent shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of
preserving the Collateral or its value or for any other purpose deemed appropriate by the Collateral Agent. The Collateral Agent shall have no obligation to the Debtor to maintain or preserve the rights of the Debtor as against third parties with
respect to Collateral while Collateral is in the possession of the Collateral Agent. The Collateral Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Collateral
Agent’s remedies (for the benefit of the Collateral Agent and the Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. The Collateral Agent shall apply the net proceeds of any such
collection, recovery, receipt, appropriation, realization or sale to the Obligations in such order of application as is required by the Intercreditor Agreement, and only after so paying over such net proceeds, and after the payment by the Collateral
Agent of any other amount required by any provision of law, need the Collateral Agent account for the surplus, if any, to the Debtor. To the maximum extent permitted by applicable law, the Debtor waives all claims, damages, and 

  

 - 16 - 

 
demands against the Collateral Agent and each Secured Party arising out of the repossession, retention or sale of the Collateral except such as arise solely
out of the gross negligence or willful misconduct of the Collateral Agent or any Secured Party as finally determined by a court of competent jurisdiction. The Collateral Agent will give the Debtor reasonable notice of the time and place of any
public sale of the Collateral or any part thereof or of the time after which any private sale or any other intended disposition thereof is to be made. The Debtor and the Collateral Agent agree that the requirements of reasonable notice shall be met
if such notice is given to the Debtor at the address of the Debtor specified in Section 10.2 of this Security Agreement (or such other address that the Debtor may provide to the Collateral Agent in writing) at least ten (10) days before
the time of the sale or disposition, but nothing contained herein shall be construed to mean that any other notice or a shorter period of time does not constitute reasonable notice for the sale of the Collateral or any part thereof. The Debtor shall
remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including any attorneys’ fees or other expenses incurred by the Collateral Agent or any Secured Party to
collect such deficiency. 
 (c) After the occurrence and during the continuance of any Event of Default, the Collateral Agent shall have the
right to enter upon the premises of the Debtor at any time for the purpose of reducing to possession the Accounts (including Chattel Paper) and all cash or non-cash proceeds thereof, for the purpose of taking possession of and using the current
version of the Debtor’s accounts receivable computer software, and/or for the purpose of inspecting the Inventory and inspecting and/or auditing the books, records and procedures of the Debtor. The Collateral Agent may deduct its expenses in
collecting the Accounts from the proceeds applicable to the Obligations. Such expenses shall include, without limitation, the costs of posting transactions to the books of the Debtor and performing such other bookkeeping and accounting tasks as the
Collateral Agent may deem appropriate to collect any Account. 
 (d) Except as otherwise specifically provided herein, the Debtor hereby
waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 
 (e) For the purpose of enabling the Collateral Agent to exercise rights and remedies under this Section 9 (including, without limiting the terms of
this Section, in order to take possession of, hold, preserve, process, assemble, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and
remedies, the Debtor hereby grants to the Collateral Agent, for the benefit of the Collateral Agent and the Secured Parties, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to the Debtor) to use,
license or sublicense any Proprietary Rights now owned or hereafter acquired by the Debtor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to
all computer software and programs used for the compilation or printout thereof. 
 SECTION 10 – MISCELLANEOUS 
 10.1 Cumulative Rights and No Waiver. Each and every right granted to the Collateral Agent and the Secured Parties, and each of them,
hereunder or under any other document delivered under or in connection with the Credit Agreement or the Note 

  

 - 17 - 

 
Agreement, or allowed it by law or equity, shall be cumulative and may be exercised from time to time. No failure on the part of the Collateral Agent or the
Secured Parties, or any of them, to exercise, and no delay in exercising any right, shall operate as a waiver thereof, nor shall any single or partial exercise by the Collateral Agent or the Secured Parties, or any of them, of any right preclude any
other or future exercise thereof or the exercise of any other right. 
 10.2 Notices. 
 (a) Method of Communication. Unless otherwise specified herein, all notices, requests and other communications to a party hereunder shall be
in writing (including facsimile transmission) and shall be given to such party: (a) at its address or facsimile number set forth below, or (b) at such other address or facsimile number as such party may hereafter specify for the purpose of
communication hereunder by notice to the other party hereto. Each such notice, request or other communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section and
confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails, certified mail, return receipt requested, with appropriate first-class postage prepaid, addressed as specified in this
Section, or (iii) if given by any other means, when delivered at the address specified in this Section 10.2. Rejection or refusal to accept or the inability to deliver because of a changed address of which no notice was given shall not
affect the validity of notice given in accordance with this Section. 
 (b) Addresses for Notices. All notices to any
party shall be sent to it at the following addresses, or any other address as to which all other parties are notified in writing. 
  

					
	 If to the Debtor:
	  	Trex Company, Inc.
		  	160 Exeter Drive
		  	Winchester, Virginia 22603-8605
		  	Attention: Chief Financial Officer
		  	Telecopy No.: (703) 542-6889
		
	 With copies to:
	  	Trex Company, Inc.
		  	160 Exeter Drive
		  	Winchester, Virginia 22603-8605
		  	Attention: William R. Gupp, Esquire
		  	Telecopy No.: (703) 542-6889
			
		  	and	  	
		
		  	Kevin G. Gralley, Esquire
		  	Hogan & Hartson L.L.P.
		  	111 South Calvert Street, Suite 1600
		  	Baltimore, Maryland 21202
		  	Telecopy No.: (410) 539-6981

  

 - 18 - 

					
	 If to the Collateral Agent:
	  	Branch Banking & Trust Company
		  	115 N. Cameron Street
		  	Winchester, Virginia 22601
		  	Attention: David Chandler
		  	Telecopy No.: (540) 665-4227
		
	 With copies to:
	  	Thomas E. duB. Fauls, Esquire
		  	Troutman Sanders LLP
		  	1001 Haxall Point, 14th Floor
		  	Richmond, Virginia 23219
		  	Telecopy No.: (804) 697-1339

 10.3 Applicable Law. This Security Agreement shall be construed in accordance with
and governed by the laws of the Commonwealth of Virginia, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than Virginia are governed by the laws of
such jurisdiction. 
 10.4 Arbitration; Submission to Jurisdiction; Waiver of Jury Trial. 
 (a) Upon demand of any party hereto, whether made before or after institution of any judicial proceeding, any claim or controversy arising out of or
relating to this Security Agreement or any other Loan Documents between the parties hereto (a “Dispute”) shall be resolved by binding arbitration conducted under and governed by the Commercial Financial Disputes Arbitration Rules (the
“Arbitration Rules”) of the American Arbitration Association (the “AAA”) and the Federal Arbitration Act. Disputes may include, without limitation, tort claims, counterclaims, disputes as to whether a matter is subject to
arbitration, claims brought as class actions, or claims arising from documents executed in the future. A judgment upon the award may be entered in any court having jurisdiction. Notwithstanding the foregoing, this arbitration provision does not
apply to disputes under or related to swap agreements. 
 (b) All arbitration hearings shall be conducted in the City of Richmond, Virginia.
A hearing shall begin within 90 days of demand for arbitration and all hearings shall be concluded within 120 days of demand for arbitration. These time limitations may not be extended unless a party shows cause for extension and then for no more
than a total of 60 days. The expedited procedures set forth in Rule 51 et seq. of the Arbitration Rules shall be applicable to claims of less than $1,000,000. Arbitrators shall be licensed attorneys selected from the Commercial Financial Dispute
Arbitration Panel of the AAA. The parties do not waive applicable federal or state substantive law except as provided herein. 
 (c)
Notwithstanding the preceding binding arbitration provisions, the parties agree to preserve, without diminution, certain remedies that any party may exercise before or after an arbitration proceeding is brought. The parties shall have the right to
proceed in any court of proper jurisdiction or by self-help to exercise or prosecute the following remedies, as applicable: (i) all rights to foreclose against any real or personal property or other security by exercising a power of sale or
under applicable law by judicial foreclosure, including a proceeding to confirm the sale; (ii) all rights of self-help, including peaceful occupation of real property and collection of rents, setoff and peaceful possession of personal property;
and (iii) obtaining provisional or ancillary remedies, including injunctive relief, sequestration, garnishment, attachment, appointment of receiver and filing an involuntary bankruptcy proceeding. Any claim or controversy with regard to the
parties’ entitlement to such remedies is a Dispute. 
  

 - 19 - 

 (d) Each party agrees that it shall not have a remedy of punitive or exemplary damages against the other
in any Dispute and hereby waives any right or claim to punitive or exemplary damages it may have now or which may arise in the future in connection with any Dispute, whether the Dispute is resolved by arbitration or judicially. 
 (e) TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY
DISPUTE. 
 10.5 Severability; Modification. If any provision hereof is invalid or unenforceable in any jurisdictions,
then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction; and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not
affect the validity or enforceability of such provisions in any other jurisdiction. No modification, amendment or waiver of any provision of this Security Agreement, nor consent to any departure by the Debtor therefrom, shall in any event be
effective unless the same shall be in writing, made in accordance with the Intercreditor Agreement, and signed by the Collateral Agent and the Debtor, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to or demand upon the Debtor in any case shall entitle the Debtor to any other or further notice or demand in the same or similar circumstances. 
 10.6 Execution in Counterparts. This Security Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. 
  

 - 20 - 

 IN WITNESS WHEREOF, the Debtor and the Collateral Agent have caused this Security Agreement to be
duly executed by their duly authorized officers, all as of the date first above written. 
  

					
	 TREX COMPANY, INC.

			
	 By:
	 	 /s/ Paul D. Fletcher
	 	(SEAL)
	 Name:
	 	Paul D. Fletcher
	 Title:
	 	Senior Vice President and Chief Financial Officer
	
	BRANCH BANKING AND TRUST COMPANY, as Collateral Agent for the Secured Parties herein
			
	 By:
	 	 /s/ David A. Chandler
	 	(SEAL)
	 Name:
	 	David A. Chandler
	 Title:
	 	Senior Vice President

  

 - 21-EXHIBIT 10.17

 Exhibit 10.17 
 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT 
 DATED AS OF MARCH 16, 2007 
 BY AND AMONG 
 THE NOTEHOLDERS NAMED
IN SCHEDULE I HERETO, 
 BRANCH BANKING AND
TRUST COMPANY, 
 AND 
 BRANCH BANKING AND TRUST COMPANY, AS COLLATERAL AGENT 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	Section 1	  	Definitions	  	2
			
	Section 2	  	Priority of Liens	  	6
				
		  	 Section 2.1.
	  	Pari Passu Liens of the Secured Parties	  	6
		  	Section 2.2.	  	Liens of Secured Parties in respect of Winchester Collateral	  	6
		  	Section 2.3.	  	Nonavoidability of Liens	  	6
			
	Section 3	  	Relationships Among Secured Parties	  	6
				
		  	Section 3.1.	  	Restrictions on Actions	  	6
		  	Section 3.2.	  	Representations and Warranties	  	7
		  	Section 3.3.	  	Cooperation; Accountings	  	8
		  	Section 3.4.	  	Termination of Credit Agreement and Note Agreement; Amendments to Credit Agreement or Note Agreement	  	8
			
	Section 3.5.	  	Additional Creditor	  	9
			
	Section 4	  	Appointment And Authorization Of Collateral Agent	  	10
			
	Section 5	  	Agency Provisions	  	10
				
		  	Section 5.1.	  	Delegation of Duties	  	10
		  	Section 5.2.	  	Exculpatory Provisions	  	10
		  	Section 5.3.	  	Reliance by Collateral Agent	  	11
		  	Section 5.4.	  	Knowledge or Notice of Default, Event of Default	  	11
		  	Section 5.5.	  	Non-Reliance on Collateral Agent and Other Secured Parties	  	12
		  	Section 5.6.	  	Indemnification	  	12
		  	Section 5.7.	  	Collateral Agent in Its Individual Capacity	  	12
		  	Section 5.8.	  	Successor Collateral Agent	  	13
			
	Section 6	  	Actions By The Collateral Agent	  	14
				
		  	Section 6.1.	  	Duties and Obligations	  	14
		  	Section 6.2.	  	Notification of Default	  	14
		  	Section 6.3.	  	Exercise of Remedies	  	14
		  	Section 6.4.	  	Instructions from Secured Parties	  	14
		  	Section 6.5.	  	Emergency Actions	  	15
		  	Section 6.6.	  	Changes to Collateral Documents	  	15
		  	Section 6.7.	  	Release of Collateral	  	15
		  	Section 6.8.	  	Other Actions	  	15
		  	Section 6.9.	  	Cooperation	  	16
		  	Section 6.10.	  	Distribution of Proceeds of Collateral and Subsidiary Guaranties	  	16
		  	Section 6.11.	  	Senior Preferential Payments and Special Trust Account	  	17
		  	Section 6.12.	  	Authorized Investments	  	18
		  	Section 6.13.	  	Restoration of Obligations	  	18
		  	Section 6.14.	  	Bankruptcy, Preferences, etc.	  	18
		  	Section 6.15.	  	Sharing of Proceeds	  	19

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
	Section 7	  	Bankruptcy Proceedings	  	19
			
	Section 8	  	Additional Agreements of Secured Parties	  	19
			
	Section 9	  	Miscellaneous	  	20
				
		  	 Section 9.1.
	  	Entire Agreement	  	20
		  	 Section 9.2.
	  	Notices	  	20
		  	 Section 9.3.
	  	Successors and Assigns	  	21
		  	 Section 9.4.
	  	Consents, Amendment, Waivers	  	21
		  	 Section 9.5.
	  	Governing Law	  	21
		  	 Section 9.6.
	  	Counterparts	  	21
		  	 Section 9.7.
	  	Sale of Interest	  	21
		  	 Section 9.8.
	  	Severability	  	21
		  	 Section 9.9.
	  	Expenses	  	21
		  	 Section 9.10.
	  	Term of Agreement	  	21
		  	 Section 9.11.
	  	Obligations Several	  	21

  

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 Exhibit 10.17 
 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT 
 THIS INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT dated as of March 16, 2007 (this “Agreement”) is among
(1) the Noteholders named in Schedule I hereto (collectively, the “Noteholders”), (2) Branch Banking and Trust Company, a North Carolina banking corporation as successor by merger to Branch Banking and Trust Company of
Virginia, as lender (“BB&T”), (3) the Additional Creditors (as described below) (the Noteholders, BB&T and the Additional Creditors are collectively referred to as the “Secured Parties”), and
(4) Branch Banking and Trust Company, as collateral agent for the Secured Parties (together with its permitted successors and assigns, the “Collateral Agent”) and acknowledged and agreed to by Trex Company, Inc., a Delaware
corporation, as successor by merger to TREX Company, LLC, a Delaware limited liability company (the “Company”). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned thereto in
§1 below. 
 R E C I T A L S: 
 A. Under and pursuant to the Credit Agreement dated as of June 19, 2002, as amended (as currently amended and as from time to time hereafter amended, restated, supplemented or otherwise modified, the
“Credit Agreement”) among the Company and BB&T, BB&T has made available to the Company Revolving Loans (as defined therein) up to an aggregate principal amount of $100,000,000, together with a letter of credit subfacility
(collectively, the “Revolving Debt”) and together with other credit facilities. 
 B. Under and pursuant to the Note
Purchase Agreement dated as of June 19, 2002, among the Company and each of the Noteholders, the Company has issued $40,000,000 in aggregate principal amount of the Company’s 8.32% Senior Secured Notes, Due June 19, 2009
(collectively, the “Notes”) (such Note Purchase Agreement, as the same may from time to time be further amended, restated, supplemented or otherwise modified, the “Note Agreement”). 
 C. The Company and the Collateral Agent entered into a Security Agreement dated as of June 19, 2002 (the “Original Security
Agreement”) under and pursuant to the terms and provisions of the Credit Agreement and the Note Agreement. Under the Security Agreement, the Company granted a security interest in various collateral described therein to the Collateral Agent
for the benefit of the “Secured Parties” defined therein. In compliance with the terms and provisions of the Credit Agreement and Section 22 of the Note Agreement, on or about September 30, 2004, BB&T and the Noteholders
agreed to release the liens of the Original Security Agreement and such liens were released. BB&T has now required the Company to regrant certain of the security interests pledged under and pursuant to the Original Security Agreement and the
Company and the Collateral Agent have executed and delivered that certain Security Agreement dated as of March 16, 2007 (the “Security Agreement”). Pursuant to Section 22 of the Note Agreement, the Noteholders have
required the pledge of the security interests described in the Security Agreement for the benefit of the “Secured Parties” as defined therein and have required the execution and delivery of this Agreement. 
 D. The obligations of the Company under the Note Agreement are secured by the Collateral Documents described below. 

 E. The obligations of the Company under the Credit Agreement which related to the Revolving Debt also are
secured by the Collateral Documents described below. 
 F. The Company contemplates that from time to time after the date hereof, the Company
may, subject to the terms and conditions of the Note Agreement and the Credit Agreement, incur additional Funded Debt (as defined in the Note Agreement) or Debt issued under a Qualified Replacement Credit Agreement (as defined in the Note Agreement
and herein the “Qualified Replacement Credit Agreement”) (collectively, the “Additional Funded Debt”) under agreements evidencing such Additional Funded Debt (the “Additional Facilities”) which the Company
desires to secure by the Collateral. Such Additional Funded Debt shall be permitted to be secured by the Collateral if the obligees of such Additional Funded Debt (the “Additional Creditors”) execute and deliver a joinder agreement
hereto and become a party to this Agreement pursuant to the requirements of §3.5 hereof. 
 G. Notwithstanding the time or order
of attachment or perfection or any provisions to the contrary in any of the Collateral Documents or the fact that a portion of the Secured Obligations are secured by the same Collateral Documents, the Secured Parties desire that the Secured
Obligations shall be secured on a senior pari passu basis by the Collateral. 
 H. The Secured Parties desire to appoint Branch
Banking and Trust Company as Collateral Agent to act on behalf of the Secured Parties regarding the Collateral, all as more fully provided herein. 
 I. The Secured Parties and the Collateral Agent desire to enter into this Agreement to provide, among other things, for (i) the appointment, duties and responsibilities of the Collateral Agent, (ii) the
respective priorities, rights and interests of the parties in and to the Collateral, (iii) the orderly administration of the Collateral, (iv) the coordination of any enforcement by the parties of their respective rights under the Note
Agreement, the Credit Agreement, the Additional Facility Documents, and the Collateral Documents and (v) the allocation of payments, if any, made under the Collateral Documents and any Material Subsidiary Guaranty, all upon the terms and
subject to the conditions set forth in this Agreement. 
 J. Pursuant to the requirements of the Note Agreement and the Credit Agreement, the
Company has requested and the parties hereto have agreed to enter into this Agreement. 
 NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 SECTION 1 DEFINITIONS. 
 The following terms shall have the meanings assigned to them
below in this §1 or in the provisions of this Agreement referred to below: 
 “Additional Creditors” shall have
the meaning assigned thereto in the Recitals hereof. 
  

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 “Additional Facilities” shall have the meaning assigned thereto in the Recitals hereof.

 “Additional Facility Documents” shall mean all outstanding Additional Facilities (including the Qualified Replacement
Credit Agreement, if any), the Additional Facility Notes, the Security Documents and all other mortgages, security agreements, documents, certificates and instruments relating to, arising out of, or in any way connected therewith or any of the
transactions contemplated thereby. 
 “Additional Facility Notes” shall mean the obligations of the Company which are
evidenced by the promissory notes issued under the Additional Facilities. 
 “Additional Funded Debt” shall have the meaning
assigned thereto in the Recitals hereof. 
 “Affiliate” means any Person which, directly or indirectly, controls, is
controlled by or is under common control with another Person. For purposes of the foregoing, “control,” “controlled by” and “under common control with” with respect to any Person shall mean the possession,
directly or indirectly, of the power (i) to vote 10% or more of the securities having ordinary voting power of the election of directors of such Person, or (ii) to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or by contract or otherwise. 
 “Bankruptcy Proceeding” shall
mean, with respect to any Person, a general assignment of such Person for the benefit of its creditors, or the institution by or against such Person of any proceeding seeking relief as debtor, or seeking to adjudicate such Person as bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment or composition of such Person or its debts, under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian
or other similar official for such Person or for any substantial part of its property. 
 “Cash Equivalent Investments”
shall mean, (a) direct obligations of the United States Government or any agencies thereof and obligations guaranteed by the United States Government, in each case having remaining terms to maturity of not more than thirty days; and
(b) certificates of deposit, time deposits and acceptances, including Eurodollar deposits, having remaining terms to maturity of not more than sixty days issued by a United States bank which has a combined capital and surplus of at least
$750,000,000 and whose long-term certificates of deposit are rated “A” or better by Standard & Poor’s Ratings Service or “A2” or better by Moody’s Investors Service, Inc. 
 “Collateral” shall mean the “Collateral” as defined in the Security Agreement and as more fully described in Exhibit A
hereto. 
 “Collateral Documents” shall mean the “Revolving Credit Loan Collateral Documents” as defined in the
Credit Agreement, which secure the Revolving Credit Loan Obligations (as defined in the Credit Agreement) of the Company under the Credit Agreement and the “Collateral Documents” as defined in the Note Agreement, which secure the
obligations of the Company under the Note Agreement and the Notes. For purposes of clarifying the usage of the term “Collateral Documents” in the Note 

  

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Agreement, any reference to the term “Security Agreement” in the definition of “Collateral Documents” shall be deemed, automatically and
without any further action on the part of any party to this Agreement, to mean and refer to the “Security Agreement” as defined in this Agreement. 
 “Company” shall have the meaning assigned thereto in the Recitals hereof. 
 “Credit
Agreement” shall have the meaning assigned thereto in the Recitals hereof. 
 “Default” shall mean an Event of
Default or an event or condition which with notice or lapse of time or both would constitute an Event of Default. 
 “Event of
Default” shall mean any “Event of Default” as defined in the Note Agreement, the Credit Agreement or any Additional Facility Documents. 
 “Letter of Credit Collateral Account” shall have the meaning assigned thereto in §6.10 hereto. 
 “Lien” means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement, charge, encumbrance or other lien (statutory or otherwise). 
 “Make-Whole Amount” shall have the meaning assigned thereto in the Note Agreement. 
 “Material Subsidiary Guaranty” shall have the meaning assigned thereto in the Note Agreement. 
 “Note Agreement” shall have the meaning assigned thereto in the Recitals hereof. 
 “Noteholders” shall have the meaning assigned thereto in the Recitals hereof. 
 “Notes” shall have the meaning assigned thereto in the Recitals hereof. 
 “Person” shall mean an individual, partnership, limited liability company, corporation, trust, unincorporated organization or any other
entity whatsoever, or any government or agency or political subdivision thereof. 
 “Pro Rata Share” shall mean, in respect
of any Secured Party as of any date of determination, the proportion which the amount of the Secured Obligations then owing to such Secured Party bears to the aggregate amount of Secured Obligations then owing to all Secured Parties. 
 “Required Secured Parties” shall mean Secured Parties holding more than 75% of the sum of (a) the unused Revolving Commitment (as
defined in the Credit Agreement) for so long as the Revolving Commitment is in effect or, if applicable, the unused revolving commitment of the Additional Creditors under the Qualified Replacement Credit Agreement plus (b) the unpaid principal
amount of the Revolving and Noteholder Debt plus (c) without duplication with respect to the amounts described in clause (a), the outstanding principal amount of the Additional Funded Debt. 
  

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 “Revolving and Noteholder Debt” shall mean the Secured Obligations consisting of
(a) all unpaid principal of the Revolving Loans (as defined in the Credit Agreement) (including therein the unpaid amount of any drawings under any letters of credit issued under the Credit Agreement and, without duplication, the undrawn
portion of the face amount of any such letters of credit), (b) all accrued and unpaid interest and breakage costs thereon, (c) all outstanding principal of the Notes, (d) all accrued and unpaid interest and premium (including without
limitation Make-Whole Amount) on the Notes and (e) all fees, commissions, indemnities and other amounts (without duplication of any Revolving and Noteholder Debt) owing to the Revolving and Noteholder Debt Secured Parties. 
 “Revolving and Noteholder Debt Secured Parties” shall mean those Secured Parties which hold Revolving and Noteholder Debt. 

“Revolving Debt” shall have the meaning assigned thereto in the Recitals hereof. 
 “Secured Obligations” shall mean all of the following, whether now or hereafter existing or arising, and whether due or to become due,
absolute or contingent, liquidated or unliquidated, determined or undetermined: (a) the Revolving Credit Loan Obligations (as defined in the Credit Agreement), including without limitation all principal in respect of the Revolving Debt
(including unpaid reimbursement obligations relating to any drawings under letters of credit issued under the Credit Agreement and, without duplication, the undrawn portion of the face amount of any such letters of credit, and all principal of fees
payable under or in connection with such letters of credit and/or the Revolving Debt) and all interest accrued thereon, (b) the indebtedness, liabilities and other obligations of the Company to the Noteholders under the Note Agreement and the
Notes, including without limitation all principal in respect of the Notes and all interest accrued thereon and all premiums thereon, and all fees due under the Note Agreement and the Notes, (c) the indebtedness, obligations and liabilities of
the Company to the Additional Creditors under the Additional Facilities and (d) the indebtedness, obligations and liabilities of the Company to the Collateral Agent or any Secured Party secured pursuant to clause (b) of Section 3 of
the Security Agreement. Without limitation of the foregoing, it is understood and agreed that in no event shall any indebtedness, liabilities and other obligations of the Company relating to the Real Estate Term Loans 1, 2 and 3 (as defined in the
Credit Agreement) be included in this definition of “Secured Obligations.” 
 “Secured Party” shall have the
meaning assigned thereto in the introductory paragraph hereof. 
 “Security Agreement” shall mean the Security Agreement
dated the date hereof from the Company to the Collateral Agent as the same shall be amended from time to time in accordance with the terms and provisions hereof and thereof. 
 “Senior Preferential Payment” shall mean any payments, or proceeds of the Collateral, from the Company or any other source with respect
to the Secured Obligations (including from the exercise of any set-off), cumulatively, but without duplication, which are: 
 (a) received by a Secured Party within 90 days prior to (1) the commencement of a Bankruptcy Proceeding with respect to the Company or (2) the acceleration of the Notes or the obligations under the Credit Agreement, and which
payment reduces the amount of the Secured Obligations owed to such Secured Party below the amount owed to such Secured Party as of the 90th day prior to such commencement or acceleration, 
  

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 (b) received by a Secured Party (1) within 90 days prior to the occurrence of any
Event of Default which has not been waived or cured within 30 days after the occurrence thereof and which payment reduces the amount of the Secured Obligations owed to such Secured Party below the amount owed to such Secured Party as of the 90th day
prior to the occurrence of such Event of Default or (2) within 30 days after the occurrence of such Event of Default, or 
 (c) received by a Secured Party after the occurrence of a Special Event of Default except as provided in §6.11(b). 
 “Special Event of Default” shall mean (a) the commencement of a Bankruptcy Proceeding with respect to the Company, (b) any other Event of Default which has not been waived or cured within 30 days after the
occurrence thereof, or (c) the acceleration of the Notes or the obligations under the Credit Agreement or under any Additional Facility Documents. 
 “Special Trust Account” shall mean that certain restricted account maintained by the Collateral Agent for the purpose of receiving and holding Senior Preferential Payments. 
 “Specified Amount” shall mean as to any Secured Party the aggregate amount of the Secured Obligations owed to such Secured Party.

 “Term Debt” shall mean the Real Estate Term Loan Obligations (as defined in the Credit Agreement). 
 “Winchester Collateral” shall mean the real property and improvements described on Exhibit B hereto. 
 SECTION 2 PRIORITY OF LIENS. 
 Section 2.1. Pari Passu Liens of the Secured Parties. All Liens now or hereafter existing in favor of the Collateral Agent, any Secured Party or any other Person on any Collateral to secure the Secured
Obligations shall be pari passu at all times, regardless of the fact that a portion of the Secured Obligations are secured by the same Collateral Documents, the time or order of attachment or perfection, any provisions to the contrary in any of the
Collateral Documents or any other circumstances whatsoever. 
 Section 2.2. Liens of Secured Parties in respect of Winchester
Collateral. All Liens now or hereafter existing in favor of BB&T or any other Person on the Winchester Collateral shall be to secure the Term Debt only in all respects and at all times, notwithstanding any provisions to the contrary in any
of the Collateral Documents or any other circumstances whatsoever. 
  

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 Section 2.3. Nonavoidability of Liens. The priorities specified in §2.1 hereof
are expressly conditioned upon the nonavoidability and perfection of the Lien to which another Lien is made pari passu and, if the Lien to which another Lien is made pari passu is not perfected or is avoidable, for any reason, then the
relative priority agreements provided for in §2.1 hereof shall not be effective as to the particular Collateral which is the subject of the unperfected or avoidable lien. 
 SECTION 3 RELATIONSHIPS AMONG SECURED PARTIES. 
 Section 3.1. Restrictions on Actions. Each Secured Party agrees that, so long as any Secured Obligations are outstanding or any Secured Party has any commitment to extend credit in respect thereof pursuant to the terms of the
Credit Agreement, the provisions of this Agreement shall provide the exclusive method by which any Secured Party may exercise rights and remedies with respect to the Collateral under the Collateral Documents and under applicable law relating to the
rights and remedies of secured creditors. Therefore, each Secured Party shall, for the mutual benefit of all Secured Parties, except as permitted under this Agreement: 
 (a) refrain from taking or filing any action, judicial or otherwise, to enforce any rights or pursue any remedy under the Collateral
Documents, except for delivering notices hereunder; 
 (b) refrain from (1) selling any Secured Obligations to the
Company or any Affiliate of the Company and (2) accepting any guaranty of, or any other security for, the Secured Obligations from the Company or any Affiliate of the Company or any other Person, except any guaranty or security granted to the
Collateral Agent for the benefit of all Secured Parties in the relative priorities set forth herein; and 
 (c) refrain from
exercising any rights or remedies with respect to the Collateral under the Collateral Documents, or under applicable law relating to the rights and remedies of secured creditors, which have or may have arisen or which may arise as a result of a
Default or Event of Default or otherwise; 
 provided, however, that nothing contained in subsections (a) through (c) above shall prevent
any Secured Party from exercising or enforcing any other right or remedy available to any Secured Party under the Note Agreement, the Notes, the Credit Agreement, the other Loan Documents (as defined in the Credit Agreement), or the Additional
Facility Documents, as the case may be, including, without limitation, accelerating the maturity of the Secured Obligations, terminating any commitments to lend additional money to the Company under the Credit Agreement (or, if applicable, under any
Qualified Replacement Credit Agreement) in accordance with the terms thereof, imposing a default rate of interest in accordance with the Credit Agreement, the Note Agreement or the Additional Facility Documents, as applicable, raising any defenses
in any action in which it has been made a party defendant or has been joined as a third party, except that the Collateral Agent may, but shall not be obligated to, direct and control any defense directly relating to the Collateral or any one or more
of the Collateral Documents, which shall be governed by the provisions of this Agreement. NOTWITHSTANDING THE FOREGOING, NO SECURED PARTY SHALL EXERCISE, OR ATTEMPT TO EXERCISE, ANY RIGHT OF SET-OFF, BANKER’S LIEN, OR THE LIKE, AGAINST ANY
DEPOSIT ACCOUNT OR PROPERTY OF THE COMPANY OR ANY OF ITS SUBSIDIARIES HELD OR MAINTAINED BY THE SECURED PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF THE COLLATERAL AGENT AND THE REQUIRED SECURED PARTIES. 
  

 -7- 

 Section 3.2. Representations and Warranties. (a) Each of the Secured Parties represents
and warrants to the other parties hereto that: 
 (1) It (i) is either (x) a corporation duly organized, existing
and in good standing under the laws of the jurisdiction of its incorporation or (y) a national banking association duly incorporated and existing under the laws of the United States of America or a state-licensed branch of a foreign bank, and
(ii) has all requisite power (corporate or otherwise) to own its property and conduct its business as now conducted and as presently contemplated. 
 (2) The execution, delivery and performance by such Secured Party of this Agreement has been authorized by all necessary proceedings (corporate or otherwise) and does not and will not contravene any provision of law,
its charter or by-laws or any amendment thereof, or of any indenture, agreement, instrument or undertaking binding upon such Secured Party. 
 (3) The execution, delivery and performance by such Secured Party of this Agreement will result in a valid and legally binding obligation of such Secured Party enforceable in accordance with its terms. 
 (b) The Collateral Agent hereby represents and warrants as of the date hereof that: 
 (1) Collateral Agent is a state banking corporation validly existing and in good standing under the laws of the State of North Carolina.

 (2) Collateral Agent has full power, authority and legal right under the laws of North Carolina pertaining to its banking
powers to execute, deliver, and perform this Agreement and has taken all necessary action to authorize the execution, delivery and performance by it of this Agreement. 
 (3) Execution, delivery and performance by the Collateral Agent of this Agreement will not contravene any law, rule or regulation of the
United States or any United States governmental authority or agency regulating the Collateral Agent’s banking activities or any judgment or order applicable to or binding on the Collateral Agent and will not contravene or result in any breach
of, or constitute a default under, the Collateral Agent’s constitutive documents or the provision of any indenture, mortgage, contract or other agreement to which it is a party or by which it or any of its properties is bound. 
 (4) Execution, delivery and performance by the Collateral Agent of this Agreement will not require the authorization, consent, or approval
of, the giving of notice to, the filing or registration with, or the taking of any other action in respect of, any United States governmental authority or agency regulating the banking activities of the Collateral Agent. 
  

 -8- 

 (5) This Agreement has been duly executed and delivered by the Collateral Agent and
constitutes the legal, valid, and binding agreement of the Collateral Agent, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance and similar laws affecting creditors’ rights generally, and general
principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law). 
 Section 3.3. Cooperation; Accountings. Each of the parties hereto will, upon the reasonable request of another party, from time to time execute and deliver or cause to be executed and delivered such further instruments, and do
and cause to be done such further acts as may be necessary or proper to carry out more effectively the provisions of this Agreement. The Secured Parties agree to provide to each other upon reasonable request a statement of all payments received in
respect of Secured Obligations. 
 Section 3.4. Termination of Credit Agreement and Note Agreement; Amendments to Credit Agreement or
Note Agreement. (a) Upon final payment in full of all Secured Obligations owing to any Secured Party, and, in the case of BB&T or any Additional Creditors under the Qualified Replacement Credit Agreement, after the termination of
BB&T’s Revolving Commitment (as defined in the Credit Agreement) or such Additional Creditors’ commitment to lend under the Qualified Replacement Credit Agreement, as applicable, such Secured Party shall cease to be a party to this
Agreement; provided, however, if all or any part of any payments to such Secured Party are invalidated or set aside or required to be paid or repaid to any Person in any Bankruptcy Proceeding or otherwise (including, without limitation, any
payment required to be made by such Secured Party to one or more of the other Secured Parties pursuant to §6.15 hereof), then this Agreement shall be renewed as of such date and shall thereafter continue in full force and effect to the
extent of the Secured Obligations so invalidated, set aside, paid or repaid. 
 (b) The Secured Parties agree with each other that neither
(i) the Noteholders in the case of the Note Agreement, (ii) BB&T in the case of the Credit Agreement, and (iii) the relevant Additional Creditors party to any Qualified Replacement Credit Agreement, if any, will effect or agree to
any waiver, amendment, restatement, extension or modification to the Note Agreement, the Credit Agreement, or the Qualified Replacement Credit Agreement, if any, as the case may be, which shall have the effect of (1) increasing the aggregate
principal amount of indebtedness owed (or commitments to lend) thereunder other than additional Funded Debt (as defined in the Note Agreement) which the Company is permitted to incur under the relevant terms and provisions of the Note Agreement
without giving effect to any amendment thereto after the date hereof, (2) shortening the scheduled amortization of the indebtedness (excluding the Term Debt) issued thereunder from the amortization in effect as of the date hereof or
(3) (A) in the case of the Note Agreement, increase the rate of interest borne by the Notes by more than 100 basis points per annum (other than the imposition of the relevant default rate of interest; provided that there shall be no
increase in any such default rate from the rate imposed on the date hereof), (B) in the case of the Credit Agreement, increase the interest rate on the Revolving Debt by increasing any margin over the LIBOR rate (as defined in the Credit
Agreement) assessed with respect to the Revolving Debt by more than 100 basis points per annum from such margins which are in effect on the date hereof, and with respect to any interest rate or percentage fee assessed with respect to the Revolving
Debt determined without reference to such LIBOR rate, no increase in such interest rate or percentage fee shall be made by an amount which exceeds 100 basis points per annum from such rate or percentage fee in effect on 

  

 -9- 

 
the date hereof (other than the imposition of the relevant default rate of interest; provided that there shall be no increase in any such default rate
from the rate imposed on the date hereof), and (C) in the case of any Qualified Replacement Credit Agreement, increases the interest rate thereon which would result in an interest rate in excess of such rate which is or would have been
permitted under clause (B) above if the Additional Funded Debt thereunder was considered to be Revolving Debt under the Credit Agreement, in each case without the prior written approval of BB&T (or, if applicable, the Additional Creditors
under any Qualified Replacement Credit Agreement) and the holders of at least 66-2/3% in principal amount of the Notes at the time outstanding. 
 Section 3.5. Additional Creditor. Additional Creditors may, upon compliance with the relevant provisions of the Note Agreement, the Credit Agreement and any outstanding Additional Facility, become “Secured
Parties” hereunder by executing and delivering to the Collateral Agent and to each of the then existing Secured Parties (a) a joinder agreement in the form attached hereto as Exhibit C and (b) a copy of the Additional Facility or
Additional Facilities to which such Person is a party. Accordingly, upon the execution and delivery of any such copy of this Agreement by any such Person, such Person, shall, upon delivery thereof to the then existing Secured Parties, thereafter
become a Secured Party for all purposes of this Agreement. 
 SECTION 4 APPOINTMENT AND AUTHORIZATION
OF COLLATERAL AGENT. 
 (a) Each Secured Party hereby irrevocably designates and appoints Branch
Banking and Trust Company as the Collateral Agent of such Secured Party under this Agreement and the Collateral Documents, and each Secured Party hereby irrevocably authorizes Branch Banking and Trust Company as the Collateral Agent for such Secured
Party to execute and enter into each of the Collateral Documents and all other instruments relating to said Collateral Documents and (i) to take action on its behalf and exercise such powers and use such discretion as are expressly permitted
hereunder and under the Collateral Documents and all instruments relating hereto and thereto and (ii) to exercise such powers and perform such duties as are, in each case, expressly delegated to the Collateral Agent by the terms hereof and
thereof together with such other powers and discretion as are reasonably incidental hereto and thereto. 
 (b) Notwithstanding any provision
to the contrary elsewhere in this Agreement or the Collateral Documents, the Collateral Agent shall not have any duties or responsibilities except those expressly set forth herein or therein or any fiduciary relationship with any Secured Party, and
no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. 
 SECTION 5 AGENCY PROVISIONS. 
 Section 5.1. Delegation of Duties. The Collateral Agent may exercise its powers and execute any of its duties under this Agreement and the Collateral Documents by or through employees, agents or attorneys-in-fact and shall be
entitled to take and to rely on advice of counsel concerning all matters pertaining to such powers and duties. The Collateral Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care. The Collateral Agent may utilize the services of such Persons as the Collateral Agent in its sole discretion may determine, and all reasonable fees and expenses of such Persons shall be borne by the Company. 
  

 -10- 

 Section 5.2. Exculpatory Provisions. Neither the Collateral Agent nor any of the Collateral
Agent’s officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be (a) liable for any action taken or omitted to be taken by it or such Person under or in connection with this Agreement or any Collateral Document or
any Collateral (except for its or such Person’s own gross negligence or willful misconduct), or (b) responsible in any manner to any of the Secured Parties for any recitals, statements, representations or warranties made by the Company,
any officer thereof or any other Person contained in, or made or deemed made in connection with, the Credit Agreement, the Note Agreement, any Additional Facility Document or any Collateral Document or in any certificate, report, statement or other
document referred to or provided for in, or received by the Collateral Agent under or in connection with, this Agreement, the Credit Agreement, the Note Agreement, any Additional Facility Document or any Collateral Document, or for the due
execution, legality, value, validity, effectiveness, genuineness, enforceability or sufficiency of the Credit Agreement, the Note Agreement, any Additional Facility Document or any Collateral Document or any other document or instrument furnished
pursuant thereto or of any of the Collateral or for any failure of the Company to perform its obligations under such documents. The Collateral Agent shall be under no obligation to the Secured Parties to ascertain or to inquire as to the observance
or performance of any of the agreements contained in, statements made in, or conditions of the Credit Agreement, the Note Agreement, any Additional Facility Document or any Collateral Document or to inspect the property (including the books and
records) of the Company. 
 Section 5.3. Reliance by Collateral Agent. The Collateral Agent shall be entitled to rely, and shall
be fully protected and shall incur no liability in acting and relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document or
conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Company),
independent accountants and other experts selected by the Collateral Agent. Without limiting the generality of the foregoing, the Collateral Agent may treat the payee of any Revolving and Noteholder Debt or any Additional Facility Note as the
registered holder thereof until it receives notice or otherwise has actual knowledge that such payee is no longer the registered holder of such Revolving and Noteholder Debt or Additional Facility Note. Notwithstanding anything to the contrary
contained herein or in any Collateral Document, the Collateral Agent shall be fully justified in failing or refusing to take action under this Agreement or the Collateral Documents (including, without limitation, the exercise of any rights or
remedies under, or the entering into of any agreement amending, modifying, supplementing, waiving any provision of, or the giving of consent pursuant to, any of the Collateral Documents) unless it shall first receive instructions of the Required
Secured Parties as is contemplated by §6 hereof and it shall first be indemnified to its reasonable satisfaction by the relevant Secured Parties against any and all liability and expense which may be incurred by it by reason of taking,
continuing to take or refraining from taking any such action. The Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the Collateral Documents in accordance with the provisions of
§6.5 hereof and in accordance with written instructions of the Required Secured Parties pursuant to §6.3 hereof, and such instructions and any action taken or failure to act pursuant thereto shall be binding upon all the
relevant Secured Parties. 
  

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 Section 5.4. Knowledge or Notice of Default, Event of Default. The Collateral Agent shall not
be deemed to have actual, constructive, direct or indirect knowledge or notice of the occurrence of any Default or Event of Default unless and until the Collateral Agent has received written notice from a Secured Party or the Company referring to
the Credit Agreement, the Note Agreement, the Additional Facility Documents, or the Collateral Documents, describing such Default or Event of Default and stating that it is a “notice of default” or a “notice of event of default”,
setting forth in reasonable detail the facts and circumstances thereof and stating that the Collateral Agent may rely on such notice without further inquiry; provided that if BB&T (or any Additional Creditor under a Qualified Replacement
Credit Agreement) is the Collateral Agent hereunder, the Collateral Agent shall be deemed to have actual knowledge and notice of the occurrence of any Default or Event of Default (as defined in the Credit Agreement or Qualified Replacement Credit
Agreement) under the Credit Agreement or Qualified Replacement Credit Agreement if BB&T (or such Additional Creditor) has actual knowledge of such Default or Event of Default or has declared an Event of Default under the Credit Agreement or
Qualified Replacement Credit Agreement. The Collateral Agent shall have no obligation or duty prior to or after receiving any such notice to inquire whether a Default or Event of Default has in fact occurred and shall be entitled to rely, and shall
be fully protected in so relying, on any such notice furnished to it. 
 Section 5.5. Non-Reliance on Collateral Agent and Other
Secured Parties. Each Secured Party expressly acknowledges that, except as expressly set forth in this Agreement, neither the Collateral Agent nor any of the Collateral Agent’s officers, directors, employees, agents, attorneys-in-fact or
Affiliates has made any representations or warranties to it and that no act by the Collateral Agent hereafter taken, including any review of the affairs of the Company, shall be deemed to constitute any representation or warranty by the Collateral
Agent to any Secured Party. Each Secured Party represents that it has, independently and without reliance upon the Collateral Agent or any other Secured Party, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other condition and credit-worthiness of the Company and made its own decision to enter into this Agreement, the Credit Agreement, the Note Agreement, any
Additional Facility Document or any Collateral Document. Each Secured Party also represents that it will, independently and without reliance upon the Collateral Agent or any other Secured Party, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under the Credit Agreement, the Note Agreement, any Additional Facility Document or any Collateral Document and
this Agreement, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and credit-worthiness of the Company. Except for notices, reports and other documents
expressly required to be furnished to the Secured Parties by the Collateral Agent hereunder, the Collateral Agent shall not have any duty or responsibility to provide the Secured Parties with any credit or other information concerning the business,
operations, property, financial and other condition or credit-worthiness of the Company which may come into the possession of the Collateral Agent or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates. 
  

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 Section 5.6. Indemnification. The Secured Parties agree to indemnify the Collateral Agent in
its capacity as such (to the extent not reimbursed by the Company, but without limiting any obligation of the Company to do so) ratably in accordance with the Secured Parties’ Pro Rata Shares, against, and hold the Collateral Agent harmless
from, any and all liabilities, obligations, losses, claims, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, which may be imposed on, incurred by, or asserted against the Collateral
Agent, in any way relating to or arising out of this Agreement or any Collateral Document or the transactions contemplated hereby or thereby or any action taken or omitted by the Collateral Agent in connection with any of the foregoing;
provided that no Secured Party shall be liable to the Collateral Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements to the extent they are found by a
final decision of a court of competent jurisdiction to have resulted from the Collateral Agent’s gross negligence or willful misconduct. The agreements in this §5.6 shall survive the payment of the Secured Obligations. 

Section 5.7. Collateral Agent in Its Individual Capacity. BB&T and its Affiliates may make loans to and generally engage in any kind
of business with the Company as though such Person was not the Collateral Agent hereunder and without any duty to account therefor to the Secured Parties. With respect to any Revolving and Noteholder Debt issued to it and advances made by it under
the Credit Agreement, if any, BB&T shall have the same rights and powers under this Agreement as any Secured Party and may exercise the same as though it were not the Collateral Agent, and the terms “Secured Party” and “Secured
Parties” shall include BB&T in its individual capacity. Any Additional Creditor which succeeds BB&T as Collateral Agent shall have the same rights as BB&T under this Section 5.7 with respect to Debt issued to it and advances
made by it under the Additional Facilities. 
 Section 5.8. Successor Collateral Agent. 
 (a) The Collateral Agent may resign at any time upon thirty days’ notice to the Secured Parties and the Company and may be removed at any time, with
or without cause, by the Required Secured Parties by written notice delivered to the Company, the Collateral Agent and the Secured Parties. If the Collateral Agent is also BB&T, or an Additional Creditor under the Qualified Replacement Credit
Agreement, then the Noteholders may remove the Collateral Agent for a material breach of its obligations under this Agreement at any time upon a vote of the holders of 75% or more of the aggregate principal amount of outstanding Notes. After any
resignation or removal hereunder of the Collateral Agent, the provisions of this §5 shall continue to inure to its benefit as to any actions taken or omitted to be taken by it in connection with its role as Collateral Agent hereunder
while it was the Collateral Agent under this Agreement and it shall be entitled to be paid promptly when due any amounts owing to it pursuant to §5.6. 
 (b) Upon receiving notice of any such resignation or removal, a successor Collateral Agent shall be appointed by the Required Secured Parties; provided, however, that such successor Collateral Agent shall be
(i) a bank or trust company having a combined capital and surplus of at least $500,000,000, subject to supervision or examination by a federal or state banking authority; and (ii) authorized under the laws of the jurisdiction of its
incorporation or organization to assume the functions of the Collateral Agent. If the appointment of such successor shall not have become effective (as hereafter provided) (x) within such thirty day period after the Collateral Agent’s
notice of resignation or (y) upon removal of the Collateral Agent, then the Collateral Agent may 

  

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assign the Liens and its duties hereunder and under the Collateral Documents to the Secured Parties, as their interests may appear, and in such case all
references herein to “Collateral Agent” shall be deemed to refer to the “Required Secured Parties.” Any Secured Party may petition a court of competent jurisdiction for the appointment of a successor Collateral Agent. Such court
shall, after such notice as it may deem proper, appoint a successor Collateral Agent meeting the qualifications specified in this §5.8(b). The Secured Parties hereby consent to such petition and appointment so long as such criteria are
met. 
 (c) The resignation or removal of a Collateral Agent shall become effective upon the execution and delivery of such documents or
instruments as are necessary to transfer the rights and obligations of the Collateral Agent under the Collateral Documents, including, without limitation, the delivery and recordation of all amendments, instruments, deed of trusts, financing
statements, continuation statements and other documents necessary to maintain the perfection of the security interests held by the Collateral Agent hereunder. Copies of each such document or instrument shall be delivered to all Secured Parties.
Subject to the foregoing provisions of this §5.8(c), the appointment of a successor Collateral Agent pursuant to this §5.8 shall become effective upon the acceptance of the appointment as Collateral Agent hereunder by a
successor Collateral Agent. Upon such effective appointment, the successor Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent and the retiring Collateral Agent
shall be discharged from its rights, powers, privileges and duties under this Agreement and the other Collateral Documents; provided, however, that the provisions of this §5 shall continue to inure to the retiring Collateral Agent’s
benefit as to any actions taken or omitted to be taken by it in connection with its role as Collateral Agent hereunder while it was the Collateral Agent under this Agreement. 
 SECTION 6 ACTIONS BY THE COLLATERAL AGENT. 
 Section 6.1. Duties and Obligations. The duties and obligations of the Collateral Agent are only those set forth in this Agreement and in the Collateral Documents. 
 Section 6.2. Notification of Default. If the Collateral Agent has been notified in a writing conforming to the requirements of
§5.4 by any Secured Party that a Default, an Event of Default or a Special Event of Default has occurred, the Collateral Agent shall furnish to the Secured Parties a copy of such written notice and may, but is under no obligation to,
furnish to the Company a copy of the notice received by the Collateral Agent and a copy of the Collateral Agent’s notice to the Secured Parties. The failure of any Secured Party having knowledge of the occurrence of a Default, an Event of
Default or a Special Event of Default to notify the Collateral Agent or any Secured Party of such occurrence, however, does not constitute a waiver of such Default, Event of Default or Special Event of Default by the Secured Parties. Upon receipt of
a notice conforming to the requirements of §5.4 from a Secured Party of the occurrence of an Event of Default or a Special Event of Default, the Collateral Agent shall (in addition to the action required by the first sentence of this
§6.2) promptly (and in any event no later than three Business Days after receipt of such notice) issue its Notice of Default to all Secured Parties. Such Notice of Default shall indicate the nature of such Event of Default or Special
Event of Default. The Notice of Default may contain a recommendation of actions to be taken by the Secured Parties and/or request instructions from the Secured Parties and shall specify the date on which responses are due in order to be timely
within §6.4 hereof. 
  

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 Section 6.3. Exercise of Remedies. Except as otherwise provided in §6.5, the
Collateral Agent shall take only such actions and exercise only such remedies under the Collateral Documents as are approved in written instructions delivered to the Collateral Agent and signed by the Required Secured Parties required under
§6.4. In the event that the Collateral Agent shall determine in good faith that taking the actions specified in such instructions is contrary to law, it may refrain (and shall be fully protected in so refraining) from taking such action
and shall immediately give notice of such fact to each of the Secured Parties. In the event that instructions received by the Collateral Agent are in its good faith judgment ambiguous or conflict with other instructions received by the Collateral
Agent, the Collateral Agent (a) shall promptly notify the Secured Parties of such ambiguity or conflict and request clarifying instructions, and (b) may either (1) delay taking any such action or exercising any such remedy pending the
receipt of such clarifying instructions (and shall be fully protected in so delaying) or (2) take such actions as it is entitled under §6.5. 
 Section 6.4. Instructions from Secured Parties. 
 Notwithstanding anything express or implied to
the contrary in any Collateral Document: 
 (a) remedies and other actions to be taken under the Collateral Documents or
applicable law with respect to the Collateral shall be directed by the Required Secured Parties; and 
 (b) if any Secured
Party does not respond in a timely manner to any notice (including, without limitation, a Notice of Default) from the Collateral Agent or request for instructions within the time period specified by the Collateral Agent in such notice or request for
instructions (which shall be a minimum of five Business Days), the Secured Obligations held by such Secured Party which would otherwise be included in a determination of Required Secured Parties shall not be included in the determination of Required
Secured Parties for purposes of such notice or request for instructions. Any action taken or not taken without the vote of such Secured Party or Secured Parties under this §6.4 shall nevertheless be binding on such Secured Party or
Secured Parties. 
 Section 6.5. Emergency Actions. If the Collateral Agent has asked the Secured Parties for instruction and if
the Required Secured Parties have not yet responded to such request, the Collateral Agent shall be authorized to take, but shall not be required to take and shall in no event have any liability for the taking or the failure to take, such actions
(other than any action described or permitted under §6.7 hereof) with regard to a Default or Event of Default which the Collateral Agent, in good faith, believes to be reasonably required to promote and protect the interests of the
Secured Parties and to preserve the value of the Collateral and shall give the Secured Parties appropriate notice of such action; provided that once instructions with respect to such request have been received by the Collateral Agent from the
Required Secured Parties, the actions of the Collateral Agent shall be governed thereby and the Collateral Agent shall not take any further action which would be contrary thereto. 
 Section 6.6. Changes to Collateral Documents. Any term of the Collateral Documents may be amended, and the performance or observance by the
parties to a Collateral Document of any term of such Collateral Document may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Required Secured Parties. 
  

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 Section 6.7. Release of Collateral. The release of any Collateral by the Collateral Agent
from the Lien of any Collateral Document shall be permitted with the written consent of all of the Secured Parties; provided, however, that if the Company or its Subsidiaries disposes of Collateral pursuant to a disposition that is permitted
under both the Credit Agreement and the Note Agreement or Collateral is released as permitted under the terms of the Collateral Documents, then the written consent of the Secured Parties to the release by the Collateral Agent of such Collateral
shall not be required. 
 Section 6.8. Other Actions. The Collateral Agent shall have the right to take such actions, or omit to
take such actions, hereunder and under the Collateral Documents not inconsistent with the written instructions of the Required Secured Parties delivered pursuant to §6.3 hereof or the terms of this Agreement, including actions the
Collateral Agent deems necessary or appropriate to perfect or continue the perfection of the Liens on the Collateral for the benefit of the Secured Parties. Except as otherwise provided by applicable law, the Collateral Agent shall have no duty as
to any Collateral, the collection or protection of the Collateral or any income therefrom (including any duty to ascertain or take action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not the Collateral Agent has or is deemed to have knowledge of such matters), nor as to the preservation of rights against prior parties, nor as to the preservation of rights pertaining to the Collateral beyond the safe custody of any
Collateral in the Collateral Agent’s actual possession. 
 Section 6.9. Cooperation. To the extent that the exercise of the
rights, powers and remedies of the Collateral Agent in accordance with this Agreement requires that any action be taken by any Secured Party, such Secured Party shall take such action and cooperate with the Collateral Agent to ensure that the
rights, powers and remedies of all Secured Parties are exercised in full. 
 Section 6.10. Distribution of Proceeds of Collateral and
Subsidiary Guaranties. 
 (a) Upon any realization upon the Collateral, the Secured Parties agree that the proceeds thereof shall be
applied (i) first, to the amounts owing to the Collateral Agent, solely in its capacity as Collateral Agent (or owing to the Secured Parties in such capacity if the Collateral Agent has resigned or has been removed), by the Company or the
Secured Parties pursuant to this Agreement or the Collateral Documents; (ii) second, to reimburse the Secured Parties for any amounts paid under §5.6 hereof ratably; (iii) third, ratably to the payment of all amounts of accrued
and unpaid interest (other than breakage costs or any Make-Whole Amount) which constitute Secured Obligations according to the aggregate amounts of such interest then owing to each Secured Party; (iv) fourth, ratably to all amounts of principal
outstanding in respect of the Secured Obligations (including therein the unpaid reimbursement obligations relating to any drawings under letters of credit issued under the Credit Agreement or any Qualified Replacement Credit Agreement and, without
duplication, in the manner set forth in the following paragraph the undrawn portion of any face amount of any such letters of credit) according to the aggregate amounts of such principal then owing to each Secured Party; (v) fifth, ratably to
all other Secured Obligations then owing to the Secured Parties according to the aggregate amounts of such Secured Obligations then owing to each Secured Party; and (vi) sixth, the balance, if any, shall be returned to the Company or such other
Persons as are entitled thereto. 
  

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 Any payment pursuant to this §6.10 with respect to the undrawn amount of any letters of
credit shall be paid to the Collateral Agent for deposit in an account (the “Letter of Credit Collateral Account”) to be held as collateral for the Secured Obligations and disposed of as provided herein. On each date after the
occurrence of a Special Event of Default on which a payment is made to a beneficiary pursuant to a draw on a letter of credit, the Collateral Agent shall distribute from the Letter of Credit Collateral Account for application to the payment of the
reimbursement obligation due to BB&T or any Additional Creditors under the Qualified Replacement Credit Agreement, as applicable, with respect to such draw an amount equal to the product of (1) the amount then on deposit in the Letter of
Credit Collateral Account, and (2) a fraction, the numerator of which is the amount of such draw and the denominator of which is the aggregate amount of all undrawn letters of credit with respect to the Revolving Debt (or, if applicable,
revolving debt under the Qualified Replacement Credit Agreement) immediately prior to such draw. On each date on which a reduction in the aggregate amount of all undrawn letters of credit occurs other than on account of a payment made to a
beneficiary pursuant to a draw on a letter of credit, then the Collateral Agent shall distribute from the Letter of Credit Collateral Account an amount equal to the product of (1) the amount then on deposit in the Letter of Credit Collateral
Account, and (2) a fraction, the numerator of which is the amount of such reduction in the aggregate amount of all undrawn letters of credit and the denominator of which is the aggregate amount of all undrawn letters of credit with respect to
the Revolving Debt (or, if applicable, revolving debt under the Qualified Replacement Credit Agreement), immediately prior to such reduction, which amount shall be distributed as provided in the first paragraph of this §6.10. At such
time as the aggregate amount of all undrawn letters of credit is reduced to zero, any amount remaining in the Letter of Credit Collateral Account, after the distribution therefrom as provided above, shall be distributed as provided in the first
paragraph of this §6.10. 
 (b) Upon the request of the Collateral Agent prior to any distribution under this §6.10,
each Secured Party shall provide to the Collateral Agent certificates, in form and substance reasonably satisfactory to the Collateral Agent, setting forth the respective amounts referred to in §6.10(a) hereof which each such Secured
Party believes it is entitled to receive. 
 Section 6.11. Senior Preferential Payments and Special Trust Account. 
 (a) After the receipt by each Secured Party of a Notice of Default pursuant to §6.2 stating that a Special Event of Default has occurred, all
Senior Preferential Payments other than those payments received pursuant to subsection (b) of this §6.11 shall be delivered to the Collateral Agent for deposit into the Special Trust Account. 
 (b) If (i) such Special Event of Default is waived by BB&T, the Additional Creditors, and the Noteholders and if no other Event of Default has
occurred and is continuing, (ii) such Special Event of Default is cured by the Company or by any amendment of the Credit Agreement, the Additional Facility Documents, or the Note Agreement, as the case may be, and if no other Event of Default
has occurred and is continuing or (iii) any or all of the Secured Obligations have not been accelerated and the Required Secured Parties have not instructed the Collateral Agent to foreclose on a substantial portion of the Collateral, seek the
appointment of a receiver, commence litigation against the Company, liquidate the Collateral, commence a Bankruptcy Proceeding against the 

  

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Company, seize Collateral, or exercise other remedies of similar character prior to the 180th day following such Special Event of Default, the Collateral
Agent thereupon shall return all amounts, together with their pro rata share of any interest earned thereon, held in the Special Trust Account representing payment of any Secured Obligations to the Secured Party initially entitled thereto, and no
payments thereafter received by a Secured Party shall constitute a Senior Preferential Payment by reason of such cured or waived Special Event of Default. No payment returned to a Secured Party for which such Secured Party has been obligated to make
a deposit into the Special Trust Account shall thereafter ever be characterized as a Senior Preferential Payment. 
 (c) Each Secured Party
agrees that upon the occurrence of a Special Event of Default it shall (i) promptly notify the Collateral Agent of the receipt of any Senior Preferential Payments, (ii) hold such amounts in trust for the Secured Parties and act as agent of
the Secured Parties during the time any such amounts are held by it, and (iii) deliver promptly to the Collateral Agent such amounts for deposit into the Special Trust Account as soon as practicable. 
 (d) If the Secured Obligations have been accelerated or the Required Secured Parties have instructed the Collateral Agent to foreclose on a substantial
portion of the Collateral, seek the appointment of a receiver, commence litigation against the Company, liquidate the Collateral, commence a Bankruptcy Proceeding against the Company, seize Collateral, or exercise other remedies of similar
character, then all funds, together with interest earned thereon, held in the Special Trust Account and all subsequent Senior Preferential Payments shall be applied in accordance with the provisions of §6.10 above. 
 Section 6.12. Authorized Investments. Any and all funds held by the Collateral Agent in its capacity as Collateral Agent, whether pursuant to
any provision of this Agreement or any of the Collateral Documents, shall to the extent feasible within a reasonable time be invested by the Collateral Agent in Cash Equivalent Investments. Prior to making such investment or to the extent it is not
feasible to invest such funds in Cash Equivalent Investments, the Collateral Agent shall hold any such funds in an interest bearing account. Any interest earned on such funds shall be disbursed to the Secured Parties in accordance with
§6.10 or §6.11, as applicable. The Collateral Agent shall have no duty to place funds held and invested pursuant to this §6.12 in investments which provide a maximum return. The Collateral Agent shall not be
responsible for any loss of any funds invested in accordance with this §6.12. 
 Section 6.13. Restoration of
Obligations. For the purposes of determining the amount of outstanding Secured Obligations, if any Secured Party is required to deposit any Senior Preferential Payment in the Special Trust Account, then the obligations intended to be satisfied
by such Senior Preferential Payment shall be revived, as of the date of the deposit of such amount with the Collateral Agent, in the amount of such Senior Preferential Payment and such obligation shall continue in full force and effect (and, if
applicable, bear interest from such deposit date at the non-default rate as provided in the Notes or in the Credit Agreement or in the Additional Facility Documents, as the case may be) as if such Secured Party had not received such payment. All
such revived obligations shall be included as Secured Obligations for purposes of allocating any payments under §6.10 and for applying the definition of Required Secured Parties. If any such revived obligation shall not be allowed as a
claim under the Bankruptcy Code due to the fact that the Senior Preferential Payment has in fact been made by the Company, the Secured Parties shall make such other equitable arrangements for the purchase and sale of participations in the Secured
Obligations to effectuate the intent of this §6.13. 
  

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 Section 6.14. Bankruptcy, Preferences, etc. If any payment to a Secured Party is subsequently
invalidated, declared to be fraudulent or preferential or set aside and is required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or Federal law, common law or equitable cause, and such Secured Party has
previously made a deposit in respect of such payment into the Special Trust Account pursuant to §6.11, then the Collateral Agent shall distribute to such Secured Party proceeds from the Special Trust Account in an amount equal to such
deposit or so much thereof as is affected by such events and if, due to previous disbursements to the Secured Parties pursuant to §6.11(d), the proceeds in the Special Trust Account are insufficient for such purpose, then each other
Secured Party shall pay to such Secured Party upon demand an amount equal to a ratable portion of such disbursements of the deposit which was distributed to each such Secured Party according to the aggregate amounts so distributed to each such
Secured Party. 
 Section 6.15. Sharing of Proceeds. If, despite the provisions of this Agreement, any Secured Party shall
receive any payment or other recovery in excess of its portion of payments on account of the Secured Obligations to which it is then entitled in accordance with this Agreement, such Secured Party shall hold such payment or other recovery in trust
for the benefit of the parties entitled thereto and promptly pay over or deliver such payment or other recovery to the Collateral Agent for application by the Collateral Agent in accordance with this Agreement. 
 SECTION 7 BANKRUPTCY PROCEEDINGS. 
 The following provisions shall apply during any Bankruptcy Proceeding of the Company: 
 (a) The Collateral Agent shall represent all
Secured Parties in connection with all matters directly relating to the Collateral, including without limitation, use, sale or lease of Collateral, use of cash collateral, relief from the automatic stay and adequate protection. The Collateral Agent
shall act on the instructions of the Required Secured Parties; provided that such instructions by the Required Secured Parties shall not treat any Secured Party differently with respect to rights in the Collateral from any other Secured Party; and
provided further that if action is required prior to the time such instructions are received or if the Required Secured Parties fail to give instructions with respect to any matter, the Collateral Agent shall be authorized to act, or refrain from
acting, in accordance with §6.5 hereof. 
 (b) Each Secured Party shall be free to act independently on any issue not directly
relating to the Collateral, including without limitation, matters relating to appointment of a trustee, conversion of a case, filing of claims, and plans of reorganization. Each Secured Party shall give prior notice to the Collateral Agent of any
such action to the extent that such notice is possible. If such prior notice is not given, such Secured Party shall give prompt notice following any such action. 
  

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 SECTION 8 ADDITIONAL AGREEMENTS OF SECURED
PARTIES. 
 (a) BB&T, in its capacity as the Lender under the Credit Agreement agrees that the Secured Parties, through
their authorized representatives or agents, may (to the extent BB&T has the right to restrict access to the Winchester Collateral) enter upon any real property constituting Winchester Collateral from time to time during normal business hours for
the sole purpose of inspecting, repairing, removing, caring for, protecting or conducting a sale or sales of any or all of the Collateral if the Collateral Agent provides BB&T notice prior to each entry (which shall not be less than two
(2) business days except in the case of emergency). BB&T further agrees that neither the Collateral Agent nor any Secured Party shall have any obligation or liability to BB&T, except, however, that the Secured Parties shall promptly
repair any damage to the Winchester Collateral caused by the removal, repair, sale or inspection and the Secured Parties shall be liable for, and shall indemnify, defend and hold the Collateral Agent and BB&T harmless from the gross negligence
or willful misconduct of their employees or agents in connection with such removal, repairs, sale or inspection. The Collateral Agent and the Secured Parties agree that neither the Collateral Agent nor BB&T shall have any obligation or liability
to preserve, protect, manage, maintain, safekeep or otherwise have any responsibility for the Collateral beyond the safe custody of any Collateral in any such Person’s actual possession. 
 (b) The Collateral Agent agrees to use its best efforts to give to BB&T, via certified mail, written notice prior to the exercise by the Collateral
Agent of any of its rights or remedies against the Collateral at the address provided for in §10.2 below; provided, however, that any failure to so provide such notice shall have no effect on the ability of the Collateral Agent to
exercise any of its rights or remedies against the Collateral. 
 (c) BB&T agrees to use its best efforts to give to the Secured Parties,
via certified mail, written notice prior to the exercise by BB&T of any of its rights or remedies against the Winchester Collateral at the address provided for in §10.2 below; provided, however, that any failure to so provide
such notice shall have no effect on the ability of BB&T to exercise any of its rights or remedies against the Winchester Collateral. 
 (d) If the Collateral Agent takes possession of the Company’s books and records included in the Collateral, the Collateral Agent shall provide BB&T reasonable access to inspect and copy such books and records if BB&T provides
prior notice (which shall be not less than two (2) business days except in the case of emergency) and if such access is necessary to exercise its rights and remedies in the Winchester Collateral. 
 (e) If the Collateral Agent or the Secured Parties receives any Winchester Collateral or any proceeds thereof or if BB&T (in its capacity as lender
of the Term Debt under the Credit Agreement) receives any Collateral or any proceeds thereof in which the Secured Parties have a prior perfected security interest, such party shall (i) notify the other party in writing of the nature of such
receipt, the date of the receipt and the amount thereof; (ii) deduct from the proceeds received any costs or expenses (including attorneys’ fees and expenses) incurred in connection with the acquisition of such proceeds; (iii) hold
the remaining amount of such proceeds in trust for the benefit of the other party until paid over to the other party; and (iv) pay the remaining amount of such proceeds or deliver the applicable Collateral to the other party hereto promptly
upon receipt thereof. If at any time payment, in whole or in part, of any Collateral or proceeds of Collateral distributed hereunder is rescinded or must otherwise be 

  

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restored or returned as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, then each party receiving any
portion of such proceeds agrees, upon demand, to return the portion of such proceeds it has received to the party responsible for restoring or returning such proceeds. 
 (f) References to BB&T in this Section 8 shall also refer to all Additional Creditors under the Qualified Replacement Credit Agreement if such Additional Creditors are also the holders of a Lien on the
Winchester Collateral. 
 SECTION 9 MISCELLANEOUS. 
 Section 9.1. Entire Agreement. This Agreement represents the entire Agreement among the Collateral Agent, the Secured Parties and the Company in respect of the subject matter hereof. 
 Section 9.2. Notices. Notices hereunder shall be given to the Secured Parties at their addresses as set forth in the Note Agreement or the
Credit Agreement or at such other address as may be designated by each in a written notice to the other parties hereto. 
 Section 9.3.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Collateral Agent and each of the Secured Parties and their respective successors and assigns, whether so expressed or not, and, in particular, shall
inure to the benefit of and be enforceable by and against any future holder or holders of any Secured Obligations, and the term “Secured Party” shall include any such subsequent holder of Secured Obligations, wherever the context permits.

 Section 9.4. Consents, Amendment, Waivers. All amendments, waivers or consents of any provision of this Agreement shall be
effective only if the same shall be in writing and signed by the Collateral Agent and all of the Secured Parties. 
 Section 9.5.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any conflicts of law principles. 
 Section 9.6. Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one
Agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. 
 Section 9.7. Sale of
Interest. No Secured Party will sell, transfer or otherwise dispose of any interest in the Secured Obligations unless such purchaser or transferee shall agree, in writing, to be bound by the terms of this Agreement. 
 Section 9.8. Severability. In case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. 
  

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 Section 9.9. Expenses. In the event of any litigation to enforce this Agreement, the
prevailing party shall be entitled to its reasonable attorney’s fees (including the allocated costs of in-house counsel). 
 Section 9.10. Term of Agreement. This Agreement shall terminate when all Secured Obligations are paid in full and such payments are not subject to any possibility of revocation or rescission and no Secured Party has any
commitment to extend any additional credit constituting Secured Obligations under the terms of the Credit Agreement or any Qualified Replacement Credit Agreement, or when the Collateral Agent, BB&T (if then a Secured Party) and all of the other
Secured Parties mutually agree in a writing to terminate this Agreement, whichever occurs earlier. 
 Section 9.11. Obligations
Several. The obligations of the Secured Parties and the Collateral Agent hereunder are several. The failure of any Secured Party or the Collateral Agent to carry out its obligations hereunder shall not relieve any other Secured Party or the
Collateral Agent of any obligation hereunder, nor shall any Secured Party or the Collateral Agent be responsible for the obligations of, or any action taken or omitted by, any other Person hereunder. Nothing contained in this Agreement shall be
deemed to cause any Secured Party or the Collateral Agent to be considered a partner of or joint venturer with any other Secured Party, the Collateral Agent, the Subsidiary Guarantors or the Company. 
  

 -22- 

 IN WITNESS WHEREOF, each of the parties hereto has caused
this Agreement to be executed as of the date first above written. 
  

			
	 BRANCH BANKING AND TRUST COMPANY,
AS
 COLLATERAL AGENT

		
	By:	 	 /s/ David A. Chandler

	Name:	 	DAVID A. CHANDLER
	Its:	 	SENIOR VICE PRESIDENT

  

 -23- 

			
	TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
		
	By:	 	 /s/ Brian Roelate

	Name:	 	Brian Roelate

  

 -24- 

			
	NATIONWIDE LIFE INSURANCE COMPANY
	
	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
	
	AMCO INSURANCE COMPANY
	
	 NATIONWIDE MUTUAL INSURANCE COMPANY

		
	BY:	 	 /s/ Wayne T. Frisbee

	NAME:	 	WAYNE T. FRISBEE
		 	AUTHORIZED SIGNATORY

  

 -25- 

			
	GREAT WEST LIFE & ANNUITY INSURANCE COMPANY
		
	BY:	 	 /s/ Tad Anderson

	NAME:	 	TAD ANDERSON
	ITS:	 	ASSISTANT VICE PRESIDENT, INVESTMENTS
		
	BY:	 	 /s/ J.G. Lowery

	NAME:	 	J.G. LOWERY
	ITS:	 	ASSISTANT VICE PRESIDENT, INVESTMENTS

  

 -26- 

			
	BRANCH BANKING AND TRUST COMPANY
		
	BY:	 	 /s/ David A. Chandler

	NAME:	 	DAVID A. CHANDLER
	ITS:	 	SENIOR VICE PRESIDENT

  

 -27- 

 THE UNDERSIGNED HEREBY ACKNOWLEDGE AND
AGREE TO THE FOREGOING AGREEMENT. 
  

			
	TREX COMPANY, INC.
		
	BY:	 	 /s/ Paul D. Fletcher

	NAME:	 	PAUL D. FLETCHER
	ITS:	 	CHIEF FINANCIAL OFFICER

  

 -28- 

 EXHIBIT A 
 TO 
 INTERCREDITOR AGREEMENT 
 COLLATERAL 
 The
collateral described in the granting clauses of the Security Agreement dated as of March 16, 2007, made by the Company in favor of the Collateral Agent to secure the Secured Obligations (as the same may from time to time be amended, restated,
supplemented or otherwise modified, the “Security Agreement”) including, without limitation: 
 The Company’s right,
title and interest in, to and under all of its personal property, wherever located and whether now existing or owned or hereafter acquired or arising, including the following property: (i) all Accounts; (ii) all Chattel Paper; and
(iii) all Inventory; and all money, all products and Proceeds of any and all of the foregoing, and all Supporting Obligations of any and all of the foregoing. Notwithstanding the foregoing, except for fixtures (as provided in Section 9-313
of the UCC), such grant of a security interest shall not extend to any asset which would be real property under the law of the jurisdiction in which it is located. 
 Notwithstanding the foregoing, it is understood and agreed that the Collateral shall not include (a) fixtures (as defined in the UCC) located in or at the Company’s Winchester, Virginia facilities excluding
manufacturing equipment or production equipment located at such facility, (b) fixtures (as defined in the Uniform Commercial Code as in effect from time to time in the State of Nevada) located in or at the Company’s Lyon County, Nevada
facility excluding manufacturing equipment or production equipment located at such facility, or (c) any Investment Property consisting of equity interests in TREX Company, LLC or any Subsidiary or Affiliate (as defined in the Credit Agreement).
Capitalized terms used in this Exhibit A and not otherwise defined in this Agreement or in this Exhibit A shall have the meanings given to such terms in the Security Agreement. 

 EXHIBIT B 
 TO 
 INTERCREDITOR AGREEMENT 
 WINCHESTER COLLATERAL 
 All that certain lot or parcel of land, together with the improvements thereon and appurtenances thereunto belonging, lying, situate and being in Back Creek Magisterial District, Frederick County, Virginia and the
City of Winchester, Virginia, and being more particularly described as follows: 
 PARCEL ONE: 
 That certain parcel of land containing 65.7901 acres and shown on that certain plat dated September 8, 2000 and entitled “Final Plat for Lot Consolidation of
the land of TREX Company, LLC, City of Winchester and Back Creek District, Frederick County, VA”, and recorded in the Land Records of Frederick County, Virginia in Deed Book 976 at page 405 and in the Land Records of the City of Winchester,
Virginia as Instrument Number 000002334. 
 TOGETHER WITH that certain twenty (20) foot drainage easement granted TREX Company, LLC by Deed of Easement
dated November 16, 2000 and recorded November 27, 2000 in the Land Records of Frederick County, Virginia as Instrument Number 000012444. 
 Frederick County Tax Map Number 63-A-110 
 City of Winchester Tax Map Number 371-01-1 
 PARCEL TWO: 
 All those certain lots or parcels of land, together with the improvements thereon and appurtenances
thereunto belonging, lying, situate and being in Back Creek Magisterial District, Frederick County, Virginia and the City of Winchester, Virginia, and being more particularly described as follows: 
 Being as shown on Sheet 5 of the plans for Route 652, State Highway Project 0652-034-224, M-501 and lying south of and adjacent to the south revised proposed right of
way line (11-19-01) of Route 652, from a point approximately 60 feet opposite approximate station 28+18 (Route 652 survey centerline) to a point approximately 40 feet opposite approximate Station 29+94 (Route 652 survey centerline) containing 0.034
acre, more or less, land; and being a part of the same lands acquired from The Henkel-Harris Company, by deed dated September 12, 1997, recorded in Deed Book 887, page 1043, in the office of the Clerk of the Circuit Court of Frederick County.

 For a more particular description of said land, reference is made to the photocopy of said Sheet 5, showing outlined in RED the said land, which photocopy
is hereto attached and is recorded in the State Highway Plat Book 10, Page 227. 

 EXHIBIT C 
 TO 
 INTERCREDITOR AGREEMENT 
 JOINDER BY ADDITIONAL CREDITORS 
 The undersigned hereby acknowledges and agrees to the foregoing Agreement (capitalized terms used herein having the respective meanings assigned thereto
in the Agreement) and executes and delivers this joinder to the Agreement and agrees to become a party thereto with all the rights, benefits and obligations of a Secured Party all as of the date hereof. 
 The undersigned have entered into the following facility with the Company [insert description of Funded Debt facility of the Company]. 
 The undersigned’s address for notices under the Agreement is as follows: 
 Dated:                      
  

			
	[ADDITIONAL CREDITORS]
		
	By	 	  

	Its

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