UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 27, 2017

ULTA BEAUTY, INC.(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdictionof incorporation)

001-33764(CommissionFile Number)

38-4022268(IRS Employer

Identification No.)

1000 Remington Blvd., Suite 120Bolingbrook, Illinois 60440

(Address of principal executive offices, including zip code)

(630) 410-4800(Registrant’s telephone number, including area code)

ULTA SALON, COSMETICS & FRAGRANCE, INC.(Former name or former address, if changed since last report)

ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowingprovisions(seeGeneralInstructionA.2.below):

☐ WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR230.425)

☐ SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12)

☐ Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b))

☐ Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))

Explanatory Note

OnJanuary29,2017,UltaSalon,Cosmetics&Fragrance,Inc.,aDelawarecorporation(“Salon”),implementedaholdingcompanyreorganization(the“Reorganization”).FollowingtheReorganization,UltaBeauty,Inc.,aDelawarecorporation(“UltaBeauty”),becamethesuccessorissuertoSalon.ThisCurrentReportonForm8-KisbeingfiledforthepurposeofestablishingUltaBeautyasthesuccessorissuerpursuanttoRule12g-3(a)undertheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),andtodisclosecertainrelatedmatters.PursuanttoRule12g-3(a)undertheExchangeAct,sharesofcommonstock,parvalue$0.01pershare,ofUltaBeauty,assuccessorissuer,aredeemedregisteredunderSection12(b)oftheExchangeAct.

Item 1.01. Entry into a Material Definitive Agreement.

OnJanuary27,2017,Salon,UltaBeautyandUltaMergerSub,Inc.,aDelawarecorporation(“MergerSub”),enteredintotheAgreementandPlanofMerger(the“Agreement”)whichresultedinUltaBeautyowningalloftheoutstandingcapitalstockofSalon.PursuanttotheReorganization,effectiveat12:01a.m.,EasternTime,onJanuary29,2017(the“EffectiveTime”),MergerSub,adirect,whollyownedsubsidiaryofUltaBeautyandanindirect,whollyownedsubsidiaryofSalon,mergedwithandintoSalon,withSalonsurvivingasadirect,whollyownedsubsidiaryofUltaBeauty.AttheEffectiveTime,eachshareofSaloncommonstockissuedandoutstandingimmediatelypriortotheReorganizationautomaticallyconvertedintoashareofUltaBeautycommonstock,havingthesamerights,powersandpreferences,andthequalifications,limitationsandrestrictions,asthecommonstockofSalonthatwasconverted.Accordingly,Salon’sstockholdersimmediatelypriortotheconsummationoftheReorganizationbecamestockholdersofUltaBeautyattheEffectiveTime.InaccordancewiththeStockholderRightsAgreement,asamended,onepreferredstockpurchaserightisattachedtoeachshareofUltaBeautycommonstock,justasitwasattachedtotheSaloncommonstockpriortotheReorganization.ThestockholdersofSalonwillnotrecognizegainorlossforU.S.federalincometaxpurposesasaresultoftheconsummationoftheReorganization.

TheReorganizationwasconductedpursuanttoSection251(g)oftheGeneralCorporationLawoftheStateofDelaware(the“DGCL”),whichprovidesfortheformationofaholdingcompanywithoutavoteofthestockholdersoftheconstituentcorporations.UltaBeautyhasaCertificateofIncorporationandBylawsthatareeachidenticaltothoseofSalonimmediatelypriortotheconsummationoftheReorganization,exceptforthechangeofthenameofthecorporationaspermittedbySection251(g)oftheDGCL.Furthermore,theconversionofstockintheReorganizationoccurredautomaticallywithoutanexchangeofstockcertificates.AftertheReorganization,stockcertificatesthatpreviouslyrepresentedsharesofSaloncommonstocknowrepresentthesamenumberofsharesofUltaBeautycommonstock.FollowingtheconsummationoftheReorganization,sharesofUltaBeauty’scommonstockcontinuetotradeontheNASDAQGlobalSelectMarket,onanuninterruptedbasis,underthesymbol“ULTA,”withthesameCUSIPnumber.ImmediatelyafterconsummationoftheReorganization,UltaBeautyhas,onaconsolidatedbasis,thesameassets,businessesandoperationsasSalonhadimmediatelypriortotheconsummationoftheReorganization.

AsaresultoftheReorganization,UltaBeautybecamethesuccessorissuertoSalonpursuantto12g-3(a)oftheExchangeActandsharesofUltaBeauty’scommonstockaredeemedregisteredunderSection12(b)oftheExchangeAct.

TheforegoingdescriptionsoftheReorganizationandtheAgreementdonotpurporttobecompleteandarequalifiedintheirentiretybyreferencetothefulltextoftheAgreement,whichisfiledasExhibit2andwhichisincorporatedbyreferenceherein.

Item 3.03. Material Modification of Rights of Security Holders.

TheinformationsetforthinItem1.01andItem5.03isherebyincorporatedbyreferenceinthisItem3.03.

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Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements ofCertain Officers.

ThedirectorsofUltaBeauty,whicharelistedbelow,areidenticaltothedirectorsofSalonimmediatelypriortotheEffectiveTimeoftheReorganization.

DIRECTORS

Director Audit Committee

Nominating andCorporate Governance

Committee Compensation

Committee CharlesJ.Philippin*

MichelleL.Collins ✓ †

MaryN.Dillon

RobertF.DiRomualdo †

DennisK.Eck

✓ ✓

CatherineA.Halligan

✓ †

CharlesHeilbronn

✓ ✓

MichaelR.MacDonald

✓

GeorgeR.Mrkonic ✓

LornaE.Nagler

✓ ✓

VanessaA.Wittman ✓

* Non-ExecutiveChairpersonoftheBoard.† CommitteeChairperson.

BiographicalinformationandinformationregardingthecompensationofUltaBeauty’sdirectorscanbefoundinSalon’sdefinitiveProxyStatementforthe2016AnnualMeetingofStockholdersfiledwiththeSecuritiesandExchangeCommissiononApril20,2016(the“2016ProxyStatement”)underthecaption“CorporateGovernanceandtheBoardofDirectors”andisincorporatedbyreferenceherein.

TheexecutiveofficersofUltaBeauty,whicharelistedbelow,areidenticaltotheexecutiveofficersofSalonimmediatelypriortotheEffectiveTimeoftheReorganization.

EXECUTIVE OFFICERS

Officer Position with Ulta BeautyMaryN.Dillon ChiefExecutiveOfficer

ScottM.Settersten ChiefFinancialOfficer,TreasurerandAssistantSecretary

JodiJ.Caro GeneralCounselandCorporateSecretary

JeffreyJ.Childs ChiefHumanResourcesOfficer

DavidC.Kimbell ChiefMerchandisingandMarketingOfficer

BiographicalinformationofUltaBeauty’sexecutiveofficerscanbefoundinSalon’sAnnualReportonForm10-KforthefiscalyearendedJanuary30,2016filedwiththeSecuritiesandExchangeCommissiononMarch30,2016underthecaption“ExecutiveOfficersoftheRegistrant”inPartI,andisincorporatedbyreferenceherein.InformationregardingthecompensationarrangementsofUltaBeauty’snamedexecutiveofficerscanbefoundinSalon’s2016ProxyStatementunderthecaption“CompensationCommitteeReportandCompensationDiscussionAndAnalysis”andisincorporatedbyreferenceherein.

InconnectionwiththeReorganization,onJanuary27,2017,SalonandUltaBeautyalsoenteredintotheCompensationPlanAgreementpursuanttowhich(1)SalontransferredtoUltaBeauty,andUltaBeautyassumed(includingsponsorshipof),asoftheEffectiveTime,theUltaSalon,Cosmetics&Fragrance,Inc.SecondAmendedandRestatedRestrictedStockOptionPlan,asfurtheramended,theUltaSalon,Cosmetics&Fragrance,Inc.2002EquityIncentivePlan,theUltaSalon,Cosmetics&Fragrance,Inc.2007IncentiveAwardPlanandtheAmendedandRestatedUltaSalon,Cosmetics&Fragrance,Inc.2011IncentiveAwardPlanandanysubplans,appendicesoraddendumsthereunder(together,the“SalonEquityCompensationPlans”),andallobligationsofSalonpursuanttoeachstockoption

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topurchaseashareofSaloncommonstock(a“SalonOption”)andeachrighttoacquireorvestinashareofSaloncommonstock,including,withoutlimitation,restrictedstockunitsandperformancebasedvestingshareunitawards(a“SalonUnit”andeachofaSalonOptionandaSalonUnit,a“SalonEquityAward”)thatwasoutstandingimmediatelypriortotheEffectiveTimeand(a)issuedundertheSalonEquityCompensationPlansandunderlyinggrantagreements(eachsuchgrantagreement,a“SalonEquityAwardGrantAgreement”andsuchgrantagreementstogetherwiththeSalonEquityCompensationPlans,the“SalonEquityCompensationPlansandAgreements”)or(b)grantedbySalonoutsideoftheSalonEquityCompensationPlansandAgreementspursuanttoNASDAQListingRule5635(c),and(2)eachsuchSalonEquityAwardwasconvertedinto(a)withrespecttoeachSalonUnit,arighttoacquireorvestinashareofUltaBeautycommonstockor(b)withrespecttoaSalonOption,anoptiontopurchaseashareofUltaBeautycommonstockatanexercisepricepershareequaltotheexercisepricepershareofSaloncommonstocksubjecttosuchSalonOptionimmediatelypriortotheEffectiveTime.AttheEffectiveTime,theSalonEquityAwards,theSalonEquityCompensationPlansandAgreementsandanyprovisionofanyothercompensatoryplan,agreementorarrangementprovidingforthegrantorissuanceofsharesofSaloncommonstockwereautomaticallydeemedtobeamended,totheextentnecessaryorappropriate,toprovidethatreferencestoSaloninsuchawards,documentsandprovisionsbereadtorefertoUltaBeautyandreferencestosharesofSaloncommonstockinsuchawards,documentsandprovisionsbereadtorefertosharesofUltaBeautycommonstock.

TheforegoingdescriptionoftheCompensationPlanAgreementdoesnotpurporttobecompleteandisqualifiedinitsentiretybyreferencetothefulltextoftheCompensationPlanAgreement,whichisfiledasExhibit10.1andwhichisincorporatedbyreferenceherein.

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

InconnectionwiththeReorganization,UltaBeauty’sBoardofDirectorsapprovedand/oradoptedtheUltaBeautyCertificateofIncorporation(includingaCertificateofDesignationsofSeriesAJuniorParticipatingPreferredStock)andtheBylawsofUltaBeautythatareeachidenticaltothoseofSalonimmediatelypriortotheconsummationoftheReorganization,exceptforthechangeofthenameofthecorporationaspermittedbySection251(g)oftheDGCL.

TheforegoingdescriptionsoftheUltaBeautyCertificateofIncorporation,theUltaBeautyCertificateofDesignationsofSeriesAJuniorParticipatingPreferredStockandtheUltaBeautyBylawsdonotpurporttobecompleteandarequalifiedintheirentiretybyreferencetothefulltextoftheCertificateofIncorporation,theCertificateofDesignationsofSeriesAJuniorParticipatingPreferredStockandtheBylaws,whicharefiledasExhibits3.1,3.2and3.3hereto,respectively,andeachofwhichisincorporatedbyreferenceherein.

Item 8.01. Other Items.

SuccessorIssuer

InconnectionwiththeReorganizationandbyoperationofRule12g-3(a)promulgatedundertheExchangeAct,UltaBeautyisthesuccessorissuertoSalonandhassucceededtotheattributesofSalonastheregistrant.SharesofUltaBeautycommonstockaredeemedtoberegisteredunderSection12(b)oftheExchangeAct,andUltaBeautyissubjecttotheinformationalrequirementsoftheExchangeAct,andtherulesandregulationspromulgatedthereunder.UltaBeautyherebyreportsthissuccessioninaccordancewithRule12g-3(f)promulgatedundertheExchangeAct.

AmendmenttoSalonCreditAgreement

Inconnectionwith,andinordertoallowfortheimplementationof,theReorganization,Salonamendeditscreditagreement.

PressRelease

OnJanuary27,2017,SalonissuedapressreleaseannouncingtheReorganization.AcopyofthatpressreleaseisfiledherewithasExhibit99andincorporatedbyreferenceherein.

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Item 9.01. Financial Statements and Exhibits.

(a) Notapplicable.

(b) Notapplicable.

(c) Notapplicable.

(d) Exhibits.TheexhibitslistedintheaccompanyingIndextoExhibitsarefiledaspartofthisCurrentReportonForm8-K.

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SIGNATURE

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,asamended,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersignedhereuntodulyauthorized.

ULTA BEAUTY, INC.

Date:January30,2017 /s/JodiJ.Caro JodiJ.Caro GeneralCounselandCorporateSecretary

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INDEX TO EXHIBITSExhibit

No. Description

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AgreementandPlanofMerger,datedasofJanuary27,2017,byandamongUltaSalon,Cosmetics&Fragrance,Inc.,UltaBeauty,Inc.andUltaMergerSub,Inc.

3.1 CertificateofIncorporationofUltaBeauty,Inc.

3.2 CertificateofDesignationsofSeriesAJuniorParticipatingPreferredStockofUltaBeauty,Inc.

3.3 BylawsofUltaBeauty,Inc.

4 AmendmenttoStockholderRightsAgreement,datedasofJanuary29,2017.

10.1 CompensationPlanAgreement,datedasofJanuary27,2017betweenUltaSalon,Cosmetics&Fragrance,Inc.andUltaBeauty,Inc.

10.2

AmendedandRestatedLoanandSecurityAgreement,datedOctober19,2011(asfurtheramendedthroughNovember22,2016),byandamongUltaSalon,Cosmetics&Fragrance,Inc.,WellsFargoBank,NationalAssociation,WellsFargoCapitalFinance,LLC,J.P.MorganSecuritiesLLC,JPMorganChaseBank,N.A.andPNCBank,NationalAssociation.

99 PressReleaseissuedonJanuary27,2017.

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Exhibit 2

AGREEMENT AND PLAN OF MERGER

ThisAGREEMENTANDPLANOFMERGER(the“Agreement”),enteredintoasofJanuary27,2017,byandamongUltaSalon,Cosmetics&Fragrance,Inc.,aDelawarecorporation(the“Company”),UltaBeauty,Inc.,aDelawarecorporationandadirect,whollyownedsubsidiaryoftheCompany(“Holdco”),andUltaMergerSub,Inc.,aDelawarecorporationandadirect,whollyownedsubsidiaryofHoldco(“MergerSub”).

RECITALS

WHEREAS,onthedatehereof,theCompanyhastheauthoritytoissue470,000,000shares,consistingof:(i)400,000,000sharesofcommonstock,parvalue$0.01pershare(the“CompanyCommonStock”),ofwhich,asofJanuary25,2017,62,139,326shareswereissuedandoutstandingand(ii)70,000,000sharesofpreferredstock,parvalue$0.01pershare(400,000sharesofwhicharedesignatedasSeriesAJuniorParticipatingPreferredStock)(the“CompanyPreferredStock”),ofwhichnosharesareissuedandoutstanding.

WHEREAS,asoftheEffectiveTime(asdefinedbelow),Holdcowillhavetheauthoritytoissue470,000,000shares,consistingof:(i)400,000,000sharesofcommonstock,parvalue$0.01pershare(the“HoldcoCommonStock”),and(ii)70,000,000sharesofpreferredstock,parvalue$0.01pershare(400,000sharesofwhichwillbedesignatedasSeriesAJuniorParticipatingPreferredStock)(the“HoldcoPreferredStock”).

WHEREAS,asofthedatehereof,MergerSubhastheauthoritytoissue100sharesofcommonstock,noparvaluepershare(the“MergerSubCommonStock”),ofwhichone(1)shareisissuedandoutstandingonthedatehereofandownedbyHoldco.

WHEREAS,asoftheEffectiveTime,thedesignations,rights,powersandpreferences,andthequalifications,limitationsandrestrictionsoftheHoldcoCommonStockandHoldcoPreferredStock(includingtheSeriesAJuniorParticipatingPreferredStock)willbethesameasthoseoftheCompanyCommonStockandCompanyPreferredStock(includingtheSeriesAJuniorParticipatingPreferredStock),respectively.

WHEREAS,theCertificateofIncorporationofHoldco,includingtheCertificateofDesignationsoftheSeriesAJuniorParticipatingPreferredStock(the“HoldcoCharter”),andtheBylawsofHoldco(the“HoldcoBylaws”),whichwillbeineffectimmediatelyfollowingtheEffectiveTime,containprovisionsidenticaltotheAmendedandRestatedCertificateofIncorporationoftheCompany,includingtheCertificateofDesignationsoftheSeriesAJuniorParticipatingPreferredStock(the“CompanyCharter”),andtheAmendedandRestatedBylawsoftheCompany(the“CompanyBylaws”),ineffectasofthedatehereofandthatwillbeineffectimmediatelypriortotheEffectiveTime,respectively(otherthanaspermittedbySection251(g)oftheGeneralCorporationLawoftheStateofDelaware(the“DGCL”)).

WHEREAS,HoldcoandMergerSubarenewlyformedcorporationsorganizedforthesolepurposeofparticipatinginthetransactionshereincontemplatedandactionsrelatedthereto,ownnoassets(otherthanHoldco’sownershipofMergerSubandnominalcapital)andhavetakennoactionsotherthanthosenecessaryoradvisabletoorganizethecorporationsandtoeffectthetransactionshereincontemplatedandactionsrelatedthereto.

WHEREAS,theCompanyenteredintothatcertainStockholderRightsAgreement,datedasofOctober25,2007(the“RightsAgreement”),withAmericanStockTransfer&TrustCompany,asRightsAgent,pursuanttowhichaRighttoacquireafractionofashareofSeriesAJuniorParticipatingPreferredStockiscurrentlyattachedtoeachshareofCompanyCommonStock.

WHEREAS,theCompanydesirestoreorganizeintoaholdingcompanystructurepursuanttoSection251(g)oftheDGCL,underwhichHoldcowouldbecomeaholdingcompany,bythemergerofMergerSubwithandintotheCompany,andwitheachoutstandingshareofCompanyCommonStockbeingconvertedintheMerger(asdefinedbelow)intoashareofHoldcoCommonStock.

WHEREAS,onoraboutthedatehereof,theCompanyandHoldcowillenterorhaveenteredintoaCompensationPlanAgreement,pursuanttowhich,amongotherthings,theCompanywill,attheEffectiveTime,transfertoHoldco,andHoldcowillassume,sponsorshipofalloftheCompany’sEquityPlans(asdefinedbelow)andalloftheCompany’srightsandobligationsthereunder.

WHEREAS,theboardsofdirectorsofHoldcoandtheCompanyhaveapprovedanddeclaredadvisablethisAgreementandthetransactionscontemplatedhereby,including,withoutlimitation,theMerger.

WHEREAS,theboardofdirectorsofMergerSubhasapprovedanddeclaredadvisablethisAgreementandthetransactionscontemplatedhereby,including,withoutlimitation,theMerger,andthesolestockholderofMergerSubhasapprovedandadoptedthisAgreementandthetransactionscontemplatedhereby,including,withoutlimitation,theMerger.

WHEREAS,thepartiesintend,forUnitedStatesfederalincometaxpurposes,thattheMerger,togetherwithotherstepstakenpursuanttoaplanofreorganization,shallqualifyasareorganizationdescribedinSection368oftheInternalRevenueCode.

NOW,THEREFORE,inconsiderationofthepremisesandthecovenantsandagreementscontainedinthisAgreement,andintendingtobelegallyboundhereby,theCompany,HoldcoandMergerSubherebyagreeasfollows:

1. THE MERGER .InaccordancewithSection251(g)oftheDGCLandsubjectto,anduponthetermsandconditionsof,thisAgreement,MergerSubshallbemergedwithandintotheCompany(the“Merger”),theseparatecorporateexistenceofMergerSubshallcease,andtheCompanyshallcontinueasthesurvivingcorporationoftheMerger(the“SurvivingCorporation”).AttheEffectiveTime,theeffectsoftheMergershallbeasprovidedinthisAgreementandinSection259oftheDGCL.

2. EFFECTIVE TIME .Assoonaspracticableonorafterthedatehereof,theCompanyshallfileacertificateofmergerexecutedinaccordancewiththerelevantprovisionsoftheDGCL,withtheSecretaryofStateoftheStateofDelaware(the“SecretaryofState”)andshallmakeallotherfilingsorrecordingsrequiredundertheDGCLtoeffectuatetheMerger.TheMergershallbecomeeffectiveatsuchtimeasthecertificateofmergerisdulyfiledwiththeSecretaryofStateoratsuchlaterdateandtimeasthepartiesshallagreeandspecifyinthecertificateofmerger(thedateandtimetheMergerbecomeseffectivebeingreferredtohereinasthe“EffectiveTime”).

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3. CERTIFICATE OF INCORPORATION .AttheEffectiveTime,theCompanyChartershallbeamendedintheMergerassetforthbelow,andassoamended,shallbethecertificateofincorporationoftheSurvivingCorporation(the“SurvivingCorporationCharter”)untilthereafteramendedasprovidedthereinorbytheDGCL.

ARTICLEFOURoftheCompanyChartershallbedeletedinitsentiretyandreplacedwiththefollowing:

(a)AuthorizedShares.ThetotalnumberofsharesofcapitalstockwhichtheCorporationhastheauthoritytoissueis500sharesofcommonstock,parvalue$0.01pershare(the“CommonStock”).

ThenumberofauthorizedsharesoftheCommonStockmaybeincreasedordecreased(butnotbelowthenumberofsharesthereofthenoutstanding)bytheaffirmativevoteoftheholdersofatleastamajorityofthevotingpoweroftheissuedandoutstandingsharesofCommonStockoftheCorporation.

(b)CommonStock.ExceptasotherwiseprovidedinthisAmendedandRestatedCertificateofIncorporationorbyapplicablelaw,thevoting,dividendandliquidationrightsoftheholdersofCommonStockareasfollows:

(i)VotingRights.EachrecordholderofCommonStockshallbeentitledatanyannualorspecialmeetingofstockholders,withrespecttoeachshareofCommonStockheldbysuchholderasoftheapplicablerecorddate,toone(1)votepershareinpersonorbyproxyonallmatterssubmittedtoavoteofthestockholdersoftheCorporation.Thereshallbenocumulativevoting.

(ii)DividendsandDistributions.TheholdersofsharesofCommonStockshallbeentitledtoreceivesuchdividendsandotherdistributionsincash,propertyorsharesofstockoftheCorporationasmaybedeclaredthereonbytheBoardofDirectorsfromtimetotimeoutofassetsorfundsoftheCorporationlegallyavailabletherefor.

(iii)LiquidationRights.Intheeventofanydissolution,liquidationorwinding-upoftheaffairsoftheCorporation,whethervoluntaryorinvoluntary,afterpaymentorprovisionforpaymentofthedebtsandotherliabilitiesoftheCorporation,theremainingassetsandfundsoftheCorporation,ifany,shallbedividedamongandpaidratablytotheholdersofCommonStockinproportiontothenumberofsharesheldbythem.

(iv)PreemptiveRights.TheholdersofCommonStockshallhavenopreemptiverighttosubscribeforanysharesofanyclassorseriesofcapitalstockoftheCorporationwhethernoworhereafterauthorized.

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ARTICLESIXoftheCompanyChartershallbedeletedinitsentiretyandreplacedwiththefollowing:

ThenumberofdirectorsoftheCorporationshallbethree(3)orsuchotherspecificnumberasmaybedesignatedfromtimetotimebyresolutionoftheBoardofDirectorsoftheCorporation.

ARTICLENINEoftheCompanyChartershallbeamendedbyaddingaSection(b)immediatelyfollowinganewlydesignatedSection(a)sothatArticleNINEreadsinitsentiretyasfollows:

(a)ShareholderAction.NostockholderactionmaybetakenexceptatanannualorspecialmeetingofstockholdersoftheCorporationandstockholdersmaynottakeanyactionbywrittenconsentinlieuofameeting.

(b)ShareholderActionAsItRelatestoUltaBeauty.AnyactortransactionbyorinvolvingtheCorporation,otherthantheelectionorremovalofdirectorsoftheCorporation,thatrequiresforitsadoptionundertheGeneralCorporationLawoftheStateofDelawareorthisAmendedandRestatedCertificateofIncorporationtheapprovalofthestockholdersoftheCorporationshall,inaccordancewithSection251(g)oftheGeneralCorporationLawoftheStateofDelaware,require,inaddition,theapprovalofthestockholdersofUltaBeauty,Inc.(oranysuccessortheretobymerger),bythesamevoteasisrequiredbytheGeneralCorporationLawoftheStateofDelawareand/orthisAmendedandRestatedCertificateofIncorporation.

EXHIBITAoftheCompanyCharter(theCertificateofDesignationsoftheSeriesAJuniorParticipatingPreferredStock)shallbedeletedinitsentirety.

4. BYLAWS .FromandaftertheEffectiveTime,theCompanyBylaws,asineffectimmediatelypriortotheEffectiveTime,shallconstitutetheBylawsoftheSurvivingCorporation(the“SurvivingCorporationBylaws”)untilthereafteramendedasprovidedthereinorbyapplicablelaw.

5. DIRECTORS .ThedirectorsofMergerSubinofficeimmediatelypriortotheEffectiveTimeshallbethedirectorsoftheSurvivingCorporationandwillcontinuetoholdofficefromtheEffectiveTimeuntiltheearlieroftheirresignationorremovaloruntiltheirsuccessorsaredulyelectedorappointedandqualifiedinthemannerprovidedintheSurvivingCorporationCharterandSurvivingCorporationBylaws,orasotherwiseprovidedbylaw.

6. OFFICERS .TheofficersoftheCompanyinofficeimmediatelypriortotheEffectiveTimeshallbetheofficersoftheSurvivingCorporationandwillcontinuetoholdofficefromtheEffectiveTimeuntiltheearlieroftheirresignationorremovaloruntiltheirsuccessorsaredulyelectedorappointedandqualifiedinthemannerprovidedintheSurvivingCorporationCharterandSurvivingCorporationBylaws,orasotherwiseprovidedbylaw.

7. ADDITIONAL ACTIONS .If,atanytimeaftertheEffectiveTime,theSurvivingCorporationshallconsiderorbeadvisedthatanydeeds,billsofsale,assignments,assurancesoranyotheractionsorthingsarenecessaryordesirabletovest,perfectorconfirm,ofrecordorotherwise,intheSurvivingCorporationitsright,titleorinterestin,toorunderanyof

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therights,propertiesorassetsofeitherMergerSubortheCompanyacquiredortobeacquiredbytheSurvivingCorporationasaresultof,orinconnectionwith,theMergerorotherwisetocarryoutthisAgreement,theofficersanddirectorsoftheSurvivingCorporationshallbeauthorizedtoexecuteanddeliver,inthenameandonbehalfofeachofMergerSubandtheCompany,allsuchdeeds,billsofsale,assignmentsandassurancesandtotakeanddo,inthenameandonbehalfofeachofMergerSubandtheCompanyorotherwise,allsuchotheractionsandthingsasmaybenecessaryordesirabletovest,perfectorconfirmanyandallright,titleandinterestin,toandundersuchrights,propertiesorassetsintheSurvivingCorporationorotherwisetocarryoutthisAgreement.

8. CONVERSION OF SECURITIES .AttheEffectiveTime,byvirtueoftheMergerandwithoutanyactiononthepartofHoldco,MergerSub,theCompanyoranyholderofanysecuritiesthereof:

(a)ConversionofCompanyCommonStock.EachshareofCompanyCommonStockissuedandoutstandingimmediatelypriortotheEffectiveTimeshallbeconvertedintoonevalidlyissued,fullypaidandnon-assessableshareofHoldcoCommonStock.

(b)RightsAttachedtoCompanyCommonStock.EachRightundertheRightsAgreementthatiscurrentlyattachedtoeachshareofCompanyCommonStockissuedandoutstandingimmediatelypriortotheEffectiveTimeshallbedeemedtobeattachedtoeachshareofHoldcoCommonStock.

(c)ConversionofCompanyStockHeldasTreasuryStock.EachshareofCompanyCommonStockheldintheCompany’streasuryshallbeconvertedintoonevalidlyissued,fullypaidandnon-assessableshareofHoldcoCommonStock,tobeheldimmediatelyaftercompletionoftheMergerinthetreasuryofHoldco.

(d)ConversionofCapitalStockofMergerSub.EachshareofMergerSubCommonStockissuedandoutstandingimmediatelypriortotheEffectiveTimeshallbeconvertedintoonevalidlyissued,fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.

(e)RightsofCertificateHolders.UponconversionthereofinaccordancewiththisSection8,allsharesofCompanyCommonStockshallnolongerbeoutstandingandshallceasetoexist,andeachholderofacertificaterepresentinganysuchsharesofCompanyCommonStockshallceasetohaveanyrightswithrespecttosuchsharesofCompanyCommonStock,except,inallcases,assetforthinSection9herein.Inaddition,eachoutstandingbook-entrythat,immediatelypriortotheEffectiveTime,evidencedsharesofCompanyCommonStockshall,fromandaftertheEffectiveTime,bedeemedandtreatedforallcorporatepurposestoevidencetheownershipofthesamenumberofsharesofHoldcoCommonStock.

9. CERTIFICATES .AtandaftertheEffectiveTimeuntilthereaftersurrenderedfortransferorexchangeintheordinarycourse,eachoutstandingcertificatewhichimmediatelypriortheretorepresentedsharesofCompanyCommonStockshallbedeemedforallpurposestoevidenceownershipofandtorepresentthesharesofHoldcoCommonStock,intowhichthesharesofCompanyCommonStockrepresentedbysuchcertificatehavebeenconvertedasherein

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providedandshallbesoregisteredonthebooksandrecordsofHoldcoanditstransferagent.AtandaftertheEffectiveTime,thesharesofcapitalstockofHoldcoshallbeuncertificated;provided,that,anysharesofcapitalstockofHoldcothatarerepresentedbyoutstandingcertificatesoftheCompanypursuanttotheimmediatelyprecedingsentenceshallcontinuetoberepresentedbycertificatesasprovidedthereinandshallnotbeuncertificatedunlessanduntilavalidcertificaterepresentingsuchsharespursuanttotheimmediatelyprecedingsentenceisdeliveredtoHoldcoatitsregisteredofficeintheStateofDelaware,itsprincipalplaceofbusiness,oranofficeroragentofHoldcohavingcustodyofbooksandrecordsofHoldco,atwhichtimesuchcertificateshallbecanceledandinlieuofthedeliveryofacertificaterepresentingtheapplicablesharesofcapitalstockofHoldco,Holdcoshall(i)issuetosuchholdertheapplicableuncertificatedsharesofcapitalstockofHoldcobyregisteringsuchsharesinHoldco’sbooksandrecordsasbook-entryshares,uponwhichsuchsharesshallthereafterbeuncertificatedand(ii)takeallactionnecessarytoprovidesuchholderwithevidenceoftheuncertificatedbook-entryshares,includinganyactionnecessaryunderapplicablelawinaccordancetherewith,includinginaccordancewithSections151(f)and202oftheDGCL.IfanycertificatethatpriortotheEffectiveTimerepresentedsharesofCompanyCommonStockshallhavebeenlost,stolenordestroyed,then,uponthemakingofanaffidavitofsuchfactbythepersonorentityclaimingsuchcertificatetobelost,stolenordestroyedandtheprovidingofanindemnitybysuchpersonorentitytoHoldco,informandsubstancereasonablysatisfactorytoHoldco,againstanyclaimthatmaybemadeagainstitwithrespecttosuchcertificate,Holdcoshallissuetosuchpersonorentity,inexchangeforsuchlost,stolenordestroyedcertificate,uncertificatedsharesrepresentingtheapplicablesharesofHoldcoCommonStockinaccordancewiththeproceduressetforthintheprecedingsentence.

10. ASSUMPTION OF EQUITY PLANS AND AWARDS .

AttheEffectiveTime,pursuanttothisAgreementandtheCompensationPlanAgreemententeredintobetweenHoldcoandtheCompanyonoraboutthedatehereof(the“CompensationPlanAgreement”),theCompanywilltransfertoHoldco,andHoldcowillassume,sponsorshipofalloftheCompany’sEquityPlans(asdefinedbelow),alongwithalloftheCompany’srightsandobligationsundertheEquityPlans.

AttheEffectiveTime,pursuanttothisAgreementandtheCompensationPlanAgreement,theCompanywilltransfertoHoldco,andHoldcowillassume,itsrightsandobligationsundereachstockoptiontopurchaseashareofCompanyCommonStock(each,a“StockOption”)andeachrighttoacquireorvestinashareofCompanyCommonStock,including,withoutlimitation,restrictedstockunitsandperformancebasedvestingshareunitawards(each,a“Unit”andtogetherwiththeStockOptions,the“Awards”)issuedundertheEquityPlansorgrantedbytheCompanyoutsideoftheEquityPlanspursuanttoNasdaqListingRule5635(c)thatisoutstandingandunexercised,unvestedandnotyetpaidorpayableimmediatelypriortotheEffectiveTime,whichAwardsshallbeconvertedintoastockoptiontopurchaseorarighttoacquireorvestin,respectively,ashareofHoldcoCommonStockwiththesamerightsandprivilegesrelativetoHoldcothatsuchshareunderlyingsuchStockOptionorUnithadrelativetotheCompanyimmediatelypriortotheEffectiveTimeonotherwisethesametermsandconditionsaswereapplicableimmediatelypriortotheEffectiveTime,including,forStockOptions,atanexercisepricepershareequaltotheexercisepricepersharefortheapplicableshareofCompanyCommonStock.ForpurposesofthisAgreement,“EquityPlans”

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shallmean,collectively,theCompanyRestrictedStockOptionPlan,theCompany2002EquityIncentivePlan,theCompany2007IncentiveAwardPlanandtheCompanyAmendedandRestated2011IncentiveAwardPlanandanyandallsubplans,appendicesoraddendumsthereto,andanyandallagreementsevidencingAwards.

11. HOLDCO SHARES .PriortotheEffectiveTime,theCompanyandHoldcoshalltakeanyandallactionsasarenecessarytoensurethateachshareofcapitalstockofHoldcothatisownedbytheCompanyimmediatelypriortotheEffectiveTimeshallbecancelledandceasetobeoutstandingattheEffectiveTime,andnopaymentshallbemadetherefor,andtheCompany,byexecutionofthisAgreement,agreestoforfeitsuchsharesandrelinquishanyrightstosuchshares.

12. NO APPRAISAL RIGHTS .InaccordancewiththeDGCL,noappraisalrightsshallbeavailabletoanyholderofsharesofCompanyCommonStockinconnectionwiththeMerger.

13. TERMINATION .ThisAgreementmaybeterminated,andtheMergerandtheothertransactionsprovidedforhereinmaybeabandoned,whetherbeforeoraftertheadoptionofthisAgreementbythesolestockholderofMergerSub,atanytimepriortotheEffectiveTime,byactionoftheboardofdirectorsoftheCompany.IntheeventofterminationofthisAgreement,thisAgreementshallforthwithbecomevoidandhavenoeffect,andneithertheCompany,Holdco,MergerSubnortheirrespectivestockholders,directorsorofficersshallhaveanyliabilitywithrespecttosuchterminationorabandonment.

14. AMENDMENTS .AtanytimepriortotheEffectiveTime,thisAgreementmaybesupplemented,amendedormodified,whetherbeforeoraftertheadoptionofthisAgreementbythesolestockholderofMergerSub,bythemutualconsentofthepartiestothisAgreementbyactionbytheirrespectiveboardsofdirectors;provided,however,that,noamendmentshallbeeffectedsubsequenttotheadoptionofthisAgreementbythesolestockholderofMergerSubthatbylawrequiresfurtherapprovalorauthorizationbythesolestockholderofMergerSuborthestockholdersoftheCompanywithoutsuchfurtherapprovalorauthorization.NoamendmentofanyprovisionofthisAgreementshallbevalidunlessthesameshallbeinwritingandsignedbyallofthepartieshereto.

15. GOVERNING LAW .ThisAgreementshallbegovernedby,andconstruedinaccordancewith,thelawsoftheStateofDelaware,regardlessofthelawsthatmightotherwisegovernunderapplicableprinciplesofconflictsoflaws.

16. COUNTERPARTS .ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichwhenexecutedshallbedeemedtobeanoriginalbutallofwhichshallconstituteoneandthesameagreement.

17. ENTIRE AGREEMENT .ThisAgreement,includingthedocumentsandinstrumentsreferredtoherein,constitutestheentireagreementandsupersedesallotherprioragreementsandundertakings,bothwrittenandoral,amongtheparties,oranyofthem,withrespecttothesubjectmatterhereof.

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18. SEVERABILITY .TheprovisionsofthisAgreementareseverable,andintheeventanyprovisionhereofisdeterminedtobeinvalidorunenforceable,suchinvalidityorunenforceabilityshallnotinanywayaffectthevalidityorenforceabilityoftheremainingprovisionshereof.

[SignaturePageFollows]

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IN WITNESS WHEREOF ,theCompany,HoldcoandMergerSubhavecausedthisAgreementtobeexecutedasofthedatefirstwrittenabovebytheirrespectiveofficersthereuntodulyauthorized.

ULTA SALON, COSMETICS & FRAGRANCE, INC.

By: /s/MaryDillon MaryDillon ChiefExecutiveOfficer

ULTA BEAUTY, INC.

By: /s/ScottSettersten ScottSettersten ChiefFinancialOfficer,TreasurerandAssistantSecretary

ULTA MERGER SUB, INC.

By: /s/JodiCaro JodiCaro GeneralCounsel,VicePresidentandCorporateSecretary

[SignaturePagetoAgreementandPlanofMerger]

Exhibit 3.1

CERTIFICATE OF INCORPORATIONOF

ULTA BEAUTY, INC.

ARTICLE ONE

ThenameoftheCorporationisUltaBeauty,Inc.

ARTICLE TWO

TheaddressoftheregisteredofficeoftheCorporationintheStateofDelawareis2711CentervilleRoad,Suite400,Wilmington,NewCastleCounty,Delaware,19808.ThenameofitsregisteredagentatsuchaddressisThePrentice-HallCorporationSystem,Inc.

ARTICLE THREE

ThepurposeoftheCorporationistoengageinanylawfulactoractivityforwhichcorporationsmaybeorganizedundertheGeneralCorporationLawoftheStateofDelaware(the“DGCL”).

ARTICLE FOUR

(a)AuthorizedShares.ThetotalnumberofsharesofcapitalstockwhichtheCorporationhastheauthoritytoissueis470,000,000shares,consistingof:

(i)400,000,000sharesofcommonstock,parvalue$.01pershare(the“CommonStock”);and

(ii)70,000,000sharesofpreferredstock,parvalue$.01pershare(the“PreferredStock”).

NotwithstandingtheprovisionsofSection242(b)(2)oftheDGCL(oranysuccessorprovisionthereto),thenumberofauthorizedsharesofPreferredStockandCommonStockmay,withoutaclassorseriesvote,beincreasedordecreased(butnotbelowthenumberofsharesthereofthenoutstanding)fromtimetotimebytheaffirmativevoteoftheholdersofamajorityinvotingpoweroftheoutstandingsharesoftheCorporation’sstockentitledtovote,votingtogetherasasingleclass.

(b)PreferredStock.TheBoardofDirectorsisherebyexpresslyauthorized,subjecttolimitationsprescribedbylaw,toprovidebyresolutionorresolutionsfortheissuanceofthesharesofPreferredStockinoneormoreseriesand,byfilingacertificateofdesignationpursuanttotheDGCLsettingforthacopyofsuchresolutionorresolutions,toestablishfromtimetotimethenumberofsharestobeincludedineachsuchseries,andtofixthedesignation,powers(includingvotingpowers,ifany),preferences,andrightsofthesharesofeachsuchseriesandthequalifications,limitations,andrestrictionsthereof.TheauthorityoftheBoardofDirectors

withrespecttoeachseriesofPreferredStockshallinclude,butnotbelimitedto,determinationofthefollowing:

(i)thenumberofsharesconstitutingsuchseriesandthedistinctivedesignationofthatseries;

(ii)thedividendrate,ifany,onthesharesofsuchseries,whetherdividendsshallbecumulative,and,ifso,fromwhichdateordates,andtherelativerightsofpriority,ifany,ofpaymentofdividendsonsharesofthatseries;

(iii)whethersuchseriesshallhavevotingrights,inadditiontothevotingrightsprovidedbylaw,and,ifso,thetermsofsuchvotingrights;

(iv)whethersuchseriesshallhaveconversionprivilegesand,ifso,thetermsandconditionsofconversion,includingprovisionforadjustmentoftheconversionrateuponsucheventsastheBoardofDirectorsshalldetermine;

(v)whetherornotthesharesofsuchseriesshallberedeemable,and,ifso,thetermsandconditionsofsuchredemption,includingthedateordatesuponorafterwhichtheyshallberedeemableandtheamountpersharepayableincaseofredemption,whichamountmayvaryunderdifferentconditionsandatdifferentredemptiondates;

(vi)whethersuchseriesshallhaveasinkingfundfortheredemptionorpurchaseofsharesoftheseries,and,ifso,thetermsandamountofsuchsinkingfund;

(vii)therightsofthesharesofsuchseriesintheeventofvoluntaryorinvoluntarydissolutionorwindingupoftheCorporation,andtherelativerightsofpriority,ifany,ofpaymentofsharesofthatseries;and

(viii)anyotherpowers,preferences,rights,qualifications,limitations,andrestrictionsofsuchseries.

(c)CommonStock.ExceptasotherwiseprovidedinthisCertificateofIncorporation(includinganycertificateofdesignationwithrespecttoanyseriesofPreferredStock)orbyapplicablelaw,thevoting,dividendandliquidationrightsoftheholdersofCommonStockareasfollows:

(i)VotingRights.EachrecordholderofCommonStockshallbeentitledatanyannualorspecialmeetingofstockholders,withrespecttoeachshareofCommonStockheldbysuchholderasoftheapplicablerecorddate,toone(1)votepershareinpersonorbyproxyonallmatterssubmittedtoavoteofthestockholdersoftheCorporation.Thereshallbenocumulativevoting.

(ii)DividendsandDistributions.Subjecttotherights,ifany,oftheholdersofanyoutstandingseriesofPreferredStock,theholdersofsharesofCommonStockshallbeentitledtoreceivesuchdividendsandotherdistributionsincash,propertyorsharesofstockoftheCorporationasmaybedeclaredthereonbytheBoardofDirectorsfromtimetotimeoutofassetsorfundsoftheCorporationlegallyavailabletherefor.

(iii)LiquidationRights.Intheeventofanydissolution,liquidationorwinding-upoftheaffairsoftheCorporation,whethervoluntaryorinvoluntary,afterpaymentorprovisionforpaymentofthedebtsandotherliabilitiesoftheCorporationandsubjecttotherights,ifany,oftheholdersofanyoutstandingseriesofPreferredStock,theremainingassetsandfundsoftheCorporation,ifany,shallbedividedamongandpaidratablytotheholdersofCommonStockinproportiontothenumberofsharesheldbythem.

(iv)PreemptiveRights.TheholdersofCommonStockshallhavenopreemptiverighttosubscribeforanysharesofanyclassorseriesofcapitalstockoftheCorporationwhethernoworhereafterauthorized.

ARTICLE FIVE

TheCorporationistohaveperpetualexistence.

ARTICLE SIX

AtthetimethisCertificateofIncorporationbecomeseffective,theBoardofDirectorsoftheCorporationshallconsistofthree(3)directors,butmaybeincreasedordecreasedfromtimetotimebyresolutionadoptedbytheaffirmativevoteofamajorityofdirectorstheninoffice;providedthatthenumberofdirectorswhichshallconstitutethewholeBoardofDirectorsshallbenotlessthanthree(3).TheBoardofDirectorsshallbedividedintothreeclasses,designatedClassI,ClassIIandClassIII.Eachclassshallconsist,asnearlyasmaybepossible,ofone-thirdofthetotalnumberofdirectorsconstitutingtheentireBoardofDirectors,initiallywithClassIdirectorsbeingelectedforaone-yearterm,ClassIIdirectorsforatwo-yeartermandClassIIIdirectorsforathree-yearterm.Ateachsucceedingannualmeetingofstockholders,beginningin2017,successorstotheclassofdirectorswhosetermexpiresatthatannualmeetingshallbeelectedforathree-yearterm.Ifthenumberofdirectorsischanged,anyincreaseordecreaseshallbeapportionedamongtheclassessoastomaintainthenumberofdirectorsineachclassasnearlyequalaspossible,andanyadditionaldirectorofanyclasselectedtofillavacancyresultingfromanincreaseinsuchclassshallholdofficeforatermthatshallcoincidewiththeremainingtermofthatclass,butinnocasewilladecreaseinthenumberofdirectorsshortenthetermofanyincumbentdirector.UnlessandexcepttotheextentthattheBy-LawsoftheCorporationshallsorequire,theelectionofdirectorsoftheCorporationneednotbebywrittenballot.

ARTICLE SEVEN

Infurtheranceandnotinlimitationofthepowersconferredbystatute,theBoardofDirectorsoftheCorporationisexpresslyauthorizedtomake,alterorrepealtheBy-LawsoftheCorporation.

ARTICLE EIGHT

MeetingsofstockholdersmaybeheldwithinorwithouttheStateofDelaware,astheBy-LawsoftheCorporationmayprovide.ThebooksoftheCorporationmaybekeptoutsidetheStateofDelawareatsuchplaceorplacesasmaybedesignatedfromtimetotimebytheBoardofDirectorsorintheBy-LawsoftheCorporation.

ARTICLE NINE

NostockholderactionmaybetakenexceptatanannualorspecialmeetingofstockholdersoftheCorporationandstockholdersmaynottakeanyactionbywrittenconsentinlieuofameeting.

ARTICLE TEN

SpecialmeetingsofthestockholdersoftheCorporation,foranypurposeorpurposes,mayonlybecalledatanytimebyamajorityoftheentireBoardofDirectorsorbyeithertheChairmanorthePresidentoftheCorporation.

ARTICLE ELEVEN

TheCorporationshallbegovernedbySection203oftheDGCL(oranysuccessorprovisionthereto)(“Section203”),andtheprovisionscontainedinSection203shallapplytofullestextentpermittedthereunder.

ARTICLE TWELVE

NodirectoroftheCorporationshallbeliabletotheCorporationoritsstockholdersformonetarydamagesforbreachoffiduciarydutyasadirector,excepttotheextentsuchexemptionfromliabilityorlimitationthereofisnotpermittedundertheDGCL,asthesameexistsormayhereafterbeamended.Anyamendment,modificationorrepealoftheforegoingsentenceshallnotadverselyaffectanyrightorprotectionofadirectoroftheCorporationexistingatthetimeof,orincreasetheliabilityofanydirectoroftheCorporationwithrespecttoanyactsoromissionsofsuchdirectoroccurringpriorto,suchamendment,modificationorrepeal.

ARTICLE THIRTEEN

Tothefullestextentpermittedbyapplicablelawasitpresentlyexistsormayhereafterbeamended,theCorporationshallindemnifyandholdharmless,andadvanceexpensestoanypersonwhowasorismadeoristhreatenedtobemadeapartyorisotherwiseinvolvedinanyaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative,byreasonofthefactthatheorshe,orapersonforwhomheorsheisthelegalrepresentative,isorwasadirectororofficeroftheCorporationor,whileadirectororofficeroftheCorporation,isorwasservingattherequestoftheCorporationasadirector,officer,employeeoragentofanothercorporationorofapartnership,jointventure,trust,enterpriseornonprofitentity,includingservicewithrespecttoemployeebenefitplansmaintainedorsponsoredbytheCorporation(a“CoveredPerson”),againstallliabilityandlosssufferedandexpenses(includingattorneys’fees)reasonablyincurredbysuchCoveredPerson.Notwithstandingtheprecedingsentence,exceptasotherwiseprovidedintheBy-Laws(asthesamemayprovidefromtimetotime),theCorporationshallberequiredtoindemnifyaCoveredPersoninconnectionwithaproceeding(orapartthereof)commencedbysuchCoveredPersononlyifthecommencementofsuchproceeding(orpartthereof)bytheCoveredPersonwasauthorizedbytheBy-Laws,inanywrittenagreementwiththeCorporation,orinthespecificcasebytheBoardofDirectors;provided,however,thatif

aclaimforindemnification(followingthefinaldispositionofanaction,suitorproceeding)oradvancementofexpensesisnotpaidinfullwithinthirty(30)daysafterawrittendemandthereforbytheCoveredPersonhasbeenreceivedbytheCorporation,theCoveredPersonmayfilesuittorecovertheunpaidamountofsuchclaim,and,ifsuccessfulinwholeorinpart,shallbeentitledtobepaidtheexpenseofprosecutingsuchclaim.NothingcontainedinthisARTICLETHIRTEENshallaffectanyrightstoindemnificationoradvancementofexpensestowhichdirectors,officers,employeesoragentsoftheCorporationotherwisemaybeentitledundertheBy-Laws,anywrittenagreementwiththeCorporationorotherwise.TheCorporationmay,totheextentauthorizedfromtimetotimebytheBoardofDirectors,grantrightstoindemnificationandtotheadvancementofexpensestoanyemployeeoragentoftheCorporationtothefullestextentoftheprovisionsofthisARTICLETHIRTEENwithrespecttotheindemnificationandadvancementofexpensesofdirectorsandofficersoftheCorporation.Anyamendment,modificationorrepealofthisARTICLETHIRTEENshallnotadverselyaffectanyrightorprotectionofaCoveredPersonexistingatthetimeof,orincreasetheliabilityofanyCoveredPersonwithrespecttoanyactsoromissionsofsuchCoveredPersonoccurringpriorto,suchamendment,modificationorrepeal.

ARTICLE FOURTEEN

TheCorporationreservestherighttoamend,alter,change,waiveorrepealanyprovisionofthisCertificateofIncorporation,inthemannernoworhereafterprescribedbythelawsoftheStateofDelawareandthisCertificateofIncorporation,andallrights,preferencesandprivilegesconferredonstockholders,directors,officers,employees,agentsandotherpersonsinthisCertificateofIncorporation,ifany,aregrantedsubjecttothisreservation.NotwithstandinganyotherprovisionsofthisCertificateofIncorporationortheBy-LawsoftheCorporation(andnotwithstandingthefactthatalesserpercentageorseparateclassvotemaybespecifiedorpermittedbylaw,thisCertificateofIncorporationortheBy-LawsoftheCorporation),anyproposaltoamendorrepeal,ortoadoptanyprovisionofthisCertificateofIncorporationinconsistentwithARTICLESSIX,NINE,TEN,ELEVENandFOURTEENshallrequiretheaffirmativevoteoftheholdersofnotlessthan662/3%ofthevotesentitledtobecastbytheholdersofallthethenoutstandingsharesofstockthenentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass.

*****

Thenameandaddressofthesoleincorporatorare:RussellE.Ryba,Foley&LardnerLLP,777EastWisconsinAvenue,Milwaukee,Wisconsin53202-5306.

Theundersigned,beingthesoleincorporatoroftheCorporation,forthepurposeofformingacorporationundertheDGCL,domake,fileandrecordthisCertificate,anddocertifythatthefactshereinstatedaretrue,andIhaveaccordinglyhereuntosetmyhandthis16thdayofDecember,2016.

/s/RussellE.RybaRussellE.Ryba

Exhibit 3.2

CERTIFICATE OF DESIGNATIONS

of

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

ULTA BEAUTY, INC.

(PursuanttoSection151oftheDelawareGeneralCorporationLaw)

UltaBeauty,Inc.,acorporationorganizedandexistingundertheGeneralCorporationLawoftheStateofDelaware(hereinaftercalledthe“Corporation”),herebycertifiesthatthefollowingresolutionwasadoptedbytheBoardofDirectorsoftheCorporationasrequiredbySection151oftheGeneralCorporationLawatameetingdulycalledandheld.

RESOLVED,thatpursuanttotheauthoritygrantedtoandvestedintheBoardofDirectorsofthisCorporation(hereinaftercalledthe“BoardofDirectors”orthe“Board”)inaccordancewiththeprovisionsoftheCertificateofIncorporationofthisCorporation,asamended,theBoardofDirectorsherebycreatesaseriesofPreferredStock,parvalue$0.01pershare(the“PreferredStock”),oftheCorporationandherebystatesthedesignationandnumberofshares,andfixestherelativerights,powersandpreferences,andqualifications,limitationsandrestrictionsthereofasfollows:

Section1.DesignationandAmount.Thesharesofsuchseriesshallbedesignatedas“SeriesAJuniorParticipatingPreferredStock”(the“SeriesAPreferredStock”)andthenumberofsharesconstitutingtheSeriesAPreferredStockshallbe400,000.SuchnumberofsharesmaybeincreasedordecreasedbyresolutionoftheBoardofDirectors;provided,thatnodecreaseshallreducethenumberofsharesofSeriesAPreferredStocktoanumberlessthanthenumberofsharesthenoutstandingplusthenumberofsharesreservedforissuanceupontheexerciseofoutstandingoptions,rightsorwarrantsorupontheconversionofanyoutstandingsecuritiesissuedbytheCorporationconvertibleintoSeriesAPreferredStock.

Section2.DividendsandDistributions.

(A)SubjecttothepriorandsuperiorrightsoftheholdersofanysharesofanyclassorseriesofstockofthisCorporationrankingpriorandsuperiortotheSeriesAPreferredStockwithrespecttodividends,theholdersofsharesofSeriesAPreferredStock,inpreferencetotheholdersofCommonStock,parvalue$.01pershare(the“CommonStock”),oftheCorporation,andofanyotherstockrankingjuniortotheSeriesAPreferredStock,shallbeentitledtoreceive,when,asandifdeclaredbytheBoardofDirectorsoutoffundslegallyavailableforthepurpose,quarterlydividendspayableincashonthefirstdayofMarch,June,SeptemberandDecemberineachyear(eachsuchdatebeingreferredtohereinasa“QuarterlyDividendPaymentDate”),commencingonthefirstQuarterlyDividendPaymentDateafterthefirstissuanceofashareorfractionofa

shareofSeriesAPreferredStock,inanamountpershare(roundedtothenearestcent)equaltothegreaterof(a)$1.00or(b)subjecttotheprovisionforadjustmenthereinaftersetforth,1,000timestheaggregatepershareamountofallcashdividends,and1,000timestheaggregatepershareamount(payableinkind)ofallnon-cashdividendsorotherdistributions,otherthanadividendpayableinsharesofCommonStockorasubdivisionoftheoutstandingsharesofCommonStock(byreclassificationorotherwise),declaredontheCommonStocksincetheimmediatelyprecedingQuarterlyDividendPaymentDateor,withrespecttothefirstQuarterlyDividendPaymentDate,sincethefirstissuanceofanyshareorfractionofashareofSeriesAPreferredStock.IntheeventtheCorporationshallatanytimedeclareorpayanydividendontheCommonStockpayableinsharesofCommonStock,oreffectasubdivision,combinationorconsolidationoftheoutstandingsharesofCommonStock(byreclassificationorotherwisethanbypaymentofadividendinsharesofCommonStock)intoagreaterorlessernumberofsharesofCommonStock,thenineachsuchcasetheamounttowhichholdersofsharesofSeriesAPreferredStockwereentitledimmediatelypriortosucheventunderclause(b)oftheprecedingsentenceshallbeadjustedbymultiplyingsuchamountbyafraction,thenumeratorofwhichisthenumberofsharesofCommonStockoutstandingimmediatelyaftersucheventandthedenominatorofwhichisthenumberofsharesofCommonStockthatwereoutstandingimmediatelypriortosuchevent.

(B)TheCorporationshalldeclareadividendordistributionontheSeriesAPreferredStockasprovidedinparagraph(A)ofthisSection2immediatelyafteritdeclaresadividendordistributionontheCommonStock(otherthanadividendpayableinsharesofCommonStock);providedthat,intheeventnodividendordistributionshallhavebeendeclaredontheCommonStockduringtheperiodbetweenanyQuarterlyDividendPaymentDateandthenextsubsequentQuarterlyDividendPaymentDate,adividendof$1.00pershareontheSeriesAPreferredStockshallneverthelessbepayableonsuchsubsequentQuarterlyDividendPaymentDate.

(C)DividendsshallbegintoaccrueandbecumulativeonoutstandingsharesofSeriesAPreferredStockfromtheQuarterlyDividendPaymentDatenextprecedingthedateofissueofsuchshares,unlessthedateofissueofsuchsharesispriortotherecorddateforthefirstQuarterlyDividendPaymentDate,inwhichcasedividendsonsuchsharesshallbegintoaccruefromthedateofissueofsuchshares,orunlessthedateofissueisaQuarterlyDividendPaymentDateorisadateaftertherecorddateforthedeterminationofholdersofsharesofSeriesAPreferredStockentitledtoreceiveaquarterlydividendandbeforesuchQuarterlyDividendPaymentDate,ineitherofwhicheventssuchdividendsshallbegintoaccrueandbecumulativefromsuchQuarterlyDividendPaymentDate.Accruedbutunpaiddividendsshallnotbearinterest.DividendspaidonthesharesofSeriesAPreferredStockinanamountlessthanthetotalamountofsuchdividendsatthetimeaccruedandpayableonsuchsharesshallbeallocatedprorataonashare-by-sharebasisamongallsuchsharesatthetimeoutstanding.TheBoardofDirectorsmayfixarecorddateforthedeterminationofholdersofsharesofSeriesAPreferredStockentitledtoreceivepaymentofadividendordistributiondeclaredthereon,whichrecorddateshallbenotmorethan60(sixty)dayspriortothedatefixedforthepaymentthereof.

Section3.VotingRights.TheholdersofsharesofSeriesAPreferredStockshallhavethefollowingvotingrights:

(A)Subjecttotheprovisionforadjustmenthereinaftersetforth,eachshareofSeriesAPreferredStockshallentitletheholderthereofto1,000votesonallmatterssubmittedtoavoteofthestockholdersoftheCorporation.IntheeventtheCorporationshallatanytimedeclareorpayanydividendontheCommonStockpayableinsharesofCommonStock,oreffectasubdivision,combinationorconsolidationoftheoutstandingsharesofCommonStock(byreclassificationorotherwisethanbypaymentofadividendinsharesofCommonStock)intoagreaterorlessernumberofsharesofCommonStock,thenineachsuchcasethenumberofvotespersharetowhichholdersofsharesofSeriesAPreferredStockwereentitledimmediatelypriortosucheventshallbeadjustedbymultiplyingsuchnumberbyafraction,thenumeratorofwhichisthenumberofsharesofCommonStockoutstandingimmediatelyaftersucheventandthedenominatorofwhichisthenumberofsharesofCommonStockthatwereoutstandingimmediatelypriortosuchevent.

(B)Exceptasotherwiseprovidedherein,inanyotherCertificateofDesignationscreatingaseriesofPreferredStockoranysimilarstock,orbylaw,theholdersofsharesofSeriesAPreferredStockandtheholdersofsharesofCommonStockandanyothercapitalstockoftheCorporationhavinggeneralvotingrightsshallvotetogetherasoneclassonallmatterssubmittedtoavoteofstockholdersoftheCorporation.

(C)Exceptassetforthherein,orasotherwiseprovidedbylaw,holdersofSeriesAPreferredStockshallhavenospecialvotingrightsandtheirconsentshallnotberequired(excepttotheextenttheyareentitledtovotewithholdersofCommonStockassetforthherein)fortakinganycorporateaction.

Section4.CertainRestrictions.

(A)WheneverquarterlydividendsorotherdividendsordistributionspayableontheSeriesAPreferredStockasprovidedinSection2areinarrears,thereafteranduntilallaccruedandunpaiddividendsanddistributions,whetherornotdeclared,onsharesofSeriesAPreferredStockoutstandingshallhavebeenpaidinfull,theCorporationshallnot:

(i)declareorpaydividends,ormakeanyotherdistributions,onanysharesofstockrankingjunior(eitherastodividendsoruponliquidation,dissolutionorwindingup)totheSeriesAPreferredStock;

(ii)declareorpaydividends,ormakeanyotherdistributions,onanysharesofstockrankingonaparity(eitherastodividendsoruponliquidation,dissolutionorwindingup)withtheSeriesAPreferredStock,exceptdividendspaidratablyontheSeriesAPreferredStockandallsuchparitystockonwhichdividendsarepayableorinarrearsinproportiontothetotalamountstowhichtheholdersofallsuchsharesarethenentitled;

(iii)redeemorpurchaseorotherwiseacquireforconsiderationsharesofanystockrankingjunior(eitherastodividendsoruponliquidation,dissolutionorwindingup)totheSeriesAPreferredStock,providedthattheCorporationmayatanytimeredeem,purchaseorotherwiseacquiresharesofanysuchjuniorstockinexchangeforsharesofanystockoftheCorporationrankingjunior(bothastodividendsandupondissolution,liquidationorwindingup)totheSeriesAPreferredStock;or

(iv)redeemorpurchaseorotherwiseacquireforconsiderationanysharesofSeriesAPreferredStock,oranysharesofstockrankingonaparitywiththeSeriesAPreferredStock,exceptinaccordancewithapurchaseoffermadeinwritingorbypublication(asdeterminedbytheBoardofDirectors)toallholdersofsuchsharesuponsuchtermsastheBoardofDirectors,afterconsiderationoftherespectiveannualdividendratesandotherrelativerightsandpreferencesoftherespectiveseriesandclasses,shalldetermineingoodfaithwillresultinfairandequitabletreatmentamongtherespectiveseriesorclasses.

(B)TheCorporationshallnotpermitanysubsidiaryoftheCorporationtopurchaseorotherwiseacquireforconsiderationanysharesofstockoftheCorporationunlesstheCorporationcould,underparagraph(A)ofthisSection4,purchaseorotherwiseacquiresuchsharesatsuchtimeandinsuchmanner.

Section5.ReacquiredShares.AnysharesofSeriesAPreferredStockpurchasedorotherwiseacquiredbytheCorporationinanymannerwhatsoevershallberetiredandcanceledpromptlyaftertheacquisitionthereof.AllsuchsharesshallupontheircancellationbecomeauthorizedbutunissuedsharesofPreferredStockandmaybereissuedaspartofanewseriesofPreferredStocksubjecttotheconditionsandrestrictionsonissuancesetforthherein,intheCertificateofIncorporation,asamended,orinanyotherCertificateofDesignationscreatingaseriesofPreferredStockoranysimilarstockorasotherwiserequiredbylaw.

Section6.Liquidation,DissolutionorWindingUp.

(A)Uponanyliquidation,dissolutionorwindingupoftheCorporation,voluntaryorotherwise,nodistributionshallbemade(i)totheholdersofsharesofstockrankingjunior(eitherastodividendsoruponliquidation,dissolutionorwindingup)totheSeriesAPreferredStockunless,priorthereto,theholdersofsharesofSeriesAPreferredStockshallhavereceivedanamountpershare(the“SeriesALiquidationPreference”)equalto$1,000pershare,plusanamountequaltoaccruedandunpaiddividendsanddistributionsthereon,whetherornotdeclared,tothedateofsuchpayment,providedthattheholdersofsharesofSeriesAPreferredStockshallbeentitledtoreceiveanaggregateamountpershare,subjecttotheprovisionforadjustmenthereinaftersetforth,equalto1,000timestheaggregateamounttobedistributedpersharetoholdersofsharesofCommonStock,or(ii)totheholdersofsharesofstockrankingonaparity(eitherastodividendsoruponliquidation,dissolutionorwindingup)withtheSeriesAPreferredStock,exceptdistributionsmaderatablyontheSeriesAPreferredStockandallsuchparitystockinproportiontothetotalamountstowhichtheholdersofallsuchsharesareentitleduponsuchliquidation,dissolutionorwindingup.IntheeventtheCorporationshallatanytimedeclareorpayanydividendontheCommonStockpayableinsharesofCommonStock,oreffectasubdivision,combinationorconsolidationoftheoutstandingsharesofCommonStock(byreclassificationorotherwisethanbypaymentofadividendinsharesofCommonStock)intoagreaterorlessernumberofsharesofCommonStock,thenineachsuchcasetheaggregateamounttowhichholdersofsharesofSeriesAPreferredStockwereentitledimmediatelypriortosucheventundertheprovisoinclause(i)oftheprecedingsentenceshallbeadjustedby

multiplyingsuchamountbyafractionthenumeratorofwhichisthenumberofsharesofCommonStockoutstandingimmediatelyaftersucheventandthedenominatorofwhichisthenumberofsharesofCommonStockthatareoutstandingimmediatelypriortosuchevent.

(B)Intheevent,however,thattherearenotsufficientassetsavailabletopermitpaymentinfulloftheSeriesALiquidationPreferenceandtheliquidationpreferencesofallotherclassesandseriesofstockoftheCorporation,ifany,thatrankonaparitywiththeSeriesAPreferredStockinrespectthereof,thentheassetsavailableforsuchdistributionshallbedistributedratablytotheholdersoftheSeriesAPreferredStockandtheholdersofsuchparitysharesinproportiontotheirrespectiveliquidationpreferences.

(C)NeitherthemergerorconsolidationoftheCorporationintoorwithanothercorporationnorthemergerorconsolidationofanyothercorporationintoorwiththeCorporationshallbedeemedtobealiquidation,dissolutionorwindingupoftheCorporationwithinthemeaningofthisSection6.

Section7.Consolidation,Merger,etc.IncasetheCorporationshallenterintoanyconsolidation,merger,combinationorothertransactioninwhichthesharesofCommonStockareexchangedfororchangedintootherstockorsecurities,cashand/oranyotherproperty,theninanysuchcaseeachshareofSeriesAPreferredStockshallatthesametimebesimilarlyexchangedorchangedintoanamountpershare,subjecttotheprovisionforadjustmenthereinaftersetforth,equalto1,000timestheaggregateamountofstock,securities,cashand/oranyotherproperty(payableinkind),asthecasemaybe,intowhichorforwhicheachshareofCommonStockischangedorexchanged.IntheeventtheCorporationshallatanytimedeclareorpayanydividendontheCommonStockpayableinsharesofCommonStock,oreffectasubdivision,combinationorconsolidationoftheoutstandingsharesofCommonStock(byreclassificationorotherwisethanbypaymentofadividendinsharesofCommonStock)intoagreaterorlessernumberofsharesofCommonStock,thenineachsuchcasetheamountsetforthintheprecedingsentencewithrespecttotheexchangeorchangeofsharesofSeriesAPreferredStockshallbeadjustedbymultiplyingsuchamountbyafraction,thenumeratorofwhichisthenumberofsharesofCommonStockoutstandingimmediatelyaftersucheventandthedenominatorofwhichisthenumberofsharesofCommonStockthatwereoutstandingimmediatelypriortosuchevent.

Section8.NoRedemption.ThesharesofSeriesAPreferredStockshallnotberedeemablebytheCorporation.

Section9.Rank.TheSeriesAPreferredStockshallrank,withrespecttothepaymentofdividendsandthedistributionofassetsuponliquidation,dissolutionorwindingup,juniortoallseriesofanyotherclassoftheCorporation’sPreferredStock,excepttotheextentthatanysuchotherseriesspecificallyprovidesthatitshallrankonaparitywithorjuniortotheSeriesAPreferredStock.

Section10.Amendment.AtanytimeanysharesofSeriesAPreferredStockareoutstanding,theCertificateofIncorporationoftheCorporation,asamended,shallnotbefurtheramendedinanymannerwhichwouldmateriallyalterorchangethepowers,preferencesorspecialrightsoftheSeriesAPreferredStocksoastoaffectthemadverselywithouttheaffirmativevoteoftheholdersofatleasttwo-thirdsoftheoutstandingsharesofSeriesAPreferredStock,votingseparatelyasasingleclass.

Section11.FractionalShares.SeriesAPreferredStockmaybeissuedinfractionsofasharethatshallentitletheholder,inproportiontosuchholder’sfractionalshares,toexercisevotingrights,receivedividends,participateindistributionsandtohavethebenefitofallotherrightsofholdersofSeriesAPreferredStock.

***

INWITNESSWHEREOF,thisCertificateofDesignationsisexecutedonbehalfoftheCorporationbytheundersignedauthorizedofficerthis16thdayofDecember,2016.

/s/JodiCaroName:JodiCaroTitle:GeneralCounselandSecretary

Exhibit 3.3

BY-LAWSOF

ULTA BEAUTY, INC.

ADOPTED ONDECEMBER 16, 2016

ARTICLE I.OFFICES

1.RegisteredOffice.TheregisteredofficeofUltaBeauty,Inc.(the“Corporation”)intheStateofDelawareshallbelocatedat2711CentervilleRoad,Suite400,Wilmington,NewCastleCounty,Delaware,19808.ThenameoftheCorporation’sregisteredagentatsuchaddressshallbeThePrentice-HallCorporationSystem,Inc.Theregisteredofficeand/orregisteredagentoftheCorporationmaybechangedfromtimetotimebyactionoftheBoardofDirectors(the“Board”).

2.OtherOffices.TheCorporationmayalsohaveofficesatsuchotherplaces,bothwithinandwithouttheStateofDelaware,astheBoardmayfromtimetotimedetermineorthebusinessoftheCorporationmayrequire.

ARTICLE II.MEETINGS OF STOCKHOLDERS

1.AnnualMeetings.Anannualmeetingofthestockholdersshallbeheldeachyearasandtotheextentrequiredunderapplicablelawforthepurposeofelectingdirectorsandconductingsuchotherproperbusinessasmaycomebeforethemeeting.Thedate,timeandplaceoftheannualmeetingshallbedeterminedbytheBoard.

2.SpecialMeetings.Specialmeetingsofstockholdersmaybecalledforanypurposeorpurposesandmaybeheldatsuchtimeandplaceasshallbestatedinanoticeofmeetingorinadulyexecutedwaiverofnoticethereof.SuchmeetingsmaybecalledatanytimebyamajorityoftheentireBoard,theChairmanoftheBoardorthePresidentoftheCorporation.Theonlymattersthatmaybeconsideredatanyspecialmeetingofthestockholdersarethemattersspecifiedinthenoticeofthemeeting.

3.PlaceofMeetings.TheBoardmaydesignateanyplace,eitherwithinorwithouttheStateofDelaware,astheplaceofmeetingforanyannualmeetingorforanyspecialmeeting.Ifnodesignationismade,theplaceofmeetingshallbetheprincipalexecutiveofficeoftheCorporation.

4.Notice.Wheneverstockholdersarerequiredorpermittedtotakeactionatameeting,writtenorprintednoticestatingtheplace,time,and,inthecaseofspecialmeetings,thepurposeorpurposes,ofsuchmeeting,shallbegiventoeachstockholderentitledtovoteatsuchmeetingnotlessthen10normorethan60daysbeforethedateofthemeeting.Allsuchnoticesshallbedelivered,eitherpersonally,bymail,or,exceptasotherwiseprovidedbylaw,byaform

ofelectronictransmission(consentedtobythestockholdertowhomthenoticeisbeinggiven),byoratthedirectionoftheBoard,thePresidentortheSecretary.Anystockholderconsenttoelectronictransmissionshallberevocablebythestockholderbywrittennoticetothecorporation.Ifmailed,suchnoticeshallbedeemedtobedeliveredwhendepositedintheUnitedStatesmail,postageprepaid,addressedtothestockholderathis,heroritsaddressasthesameappearsontherecordsoftheCorporation.Noticegivenbyaformofelectronictransmissionshallbedeemedgiven(i)ifbyfacsimiletelecommunication,whendirectedtoanumberatwhichthestockholderhasconsentedtoreceivenotice,(ii)ifbyelectronicmail,whendirectedtoreceivenotice,(iii)ifbypostingonanelectronicnetworktogetherwithseparatenoticetothestockholderofsuchspecificposting,uponthelaterof(A)suchpostingand(B)thegivingofsuchseparatenotice,and(iv)ifbyanyotherformofelectronictransmission,whendirectedtothestockholder.

5.StockholdersList.TheofficerhavingchargeofthestockledgeroftheCorporationshallmake,atleast10daysbeforeeverymeetingofthestockholders,acompletelistofthestockholdersentitledtovoteatsuchmeetingarrangedinalphabeticalorder,showingtheaddressofeachstockholderandthenumberofsharesregisteredinthenameofthestockholder.Suchlistshallbeopentotheexaminationofanystockholder,foranypurposegermanetothemeeting,duringordinarybusinesshours,foraperiodofatleast10daysbeforethedateofthemeeting,eitherataplacewithinthecitywherethemeetingistobeheld,whichplaceshallbespecifiedinthenoticeofthemeetingor,ifnotspecified,attheplacewherethemeetingistobeheld.Thelistshallalsobeproducedandkeptatthetimeandplaceofthemeetingduringthewholetimethereof,andmaybeinspectedbyanystockholderwhoispresent.

6.Quorum.Theholdersofamajorityoftheoutstandingsharesofcapitalstock,presentinpersonorrepresentedbyproxy,shallconstituteaquorumatallmeetingsofthestockholders,exceptasotherwiseprovidedbystatuteorbytheCertificateofIncorporation.Aquorum,onceestablished,shallnotbebrokenbythewithdrawalofenoughvotestoleavelessthanaquorumandthevotespresentmaycontinuetotransactbusinessuntiladjournment.Ifaquorumisnotpresent,theholdersofamajorityofthesharespresentinpersonorrepresentedbyproxyatthemeeting,andentitledtovoteatthemeeting,mayadjournthemeetingtoanothertimeand/orplace.Whenaspecifieditemofbusinessrequiresavotebyclassorseries(iftheCorporationshallthenhaveoutstandingsharesofmorethanoneclassorseries)votingasaclass,theholdersofamajorityofthesharesofsuchclassorseriesshallconstituteaquorum(astosuchclassorseries)forthetransactionofsuchitemofbusiness.

7.AdjournedMeetings.Whenameetingisadjournedtoanothertimeandplace,noticeneednotbegivenoftheadjournedmeetingifthetimeandplacethereofareannouncedatthemeetingatwhichtheadjournmentistaken.AttheadjournedmeetingtheCorporationmaytransactanybusinesswhichmighthavebeentransactedattheoriginalmeeting.Iftheadjournmentisformorethan30days,orifaftertheadjournmentanewrecorddateisfixedfortheadjournedmeeting,anoticeoftheadjournedmeetingshallbegiventoeachstockholderofrecordentitledtovoteatthemeeting.

8.VoteRequired.Unlessotherwiserequiredbylaw,theCertificateofIncorporation,theseBy-LawsortherulesorregulationsofanystockexchangesapplicabletotheCorporationoritssecurities,anyquestionbroughtbeforeanymeetingofstockholdersshallbedecidedbythevoteoftheholdersofamajorityofthestockwhicharepresentinpersonorby

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proxyandentitledtovotethereat.Whereaseparatevotebyclassisrequired,theaffirmativevoteofthemajorityofsharesofsuchclasspresentinpersonorrepresentedbyproxyatthemeetingshallbetheactofsuchclass.

9.VotingRights.ExceptasotherwiseprovidedbytheGeneralCorporationLawoftheStateofDelaware(“DGCL”)orbytheCertificateofIncorporationoftheCorporationoranyamendmentsthereto,everystockholdershallateverymeetingofthestockholdersbeentitledtoonevoteinpersonorbyproxyforeachshareofcommonstockheldbysuchstockholder.TheBoardmaybyresolutionestablishamethodforstockholderstocasttheirvotesbyasecureelectronicmethod.

10.Proxies.Eachstockholderentitledtovoteatameetingofstockholdersortoexpressconsentordissenttocorporateactioninwritingwithoutameetingmayauthorizeanotherpersonorpersonstoactforhimorherbyproxy,butnosuchproxyshallbevotedoracteduponafter3yearsfromitsdate,unlesstheproxyprovidesforalongerperiod.

11.BusinessBroughtBeforeaMeeting.Atanannualmeetingofthestockholders,onlysuchbusinessshallbeconductedasshallhavebeenproperlybroughtbeforethemeeting.Tobeproperlybroughtbeforeanannualmeeting,businessmustbe(i)specifiedinthenoticeofmeeting(oranysupplementthereto)givenbyoratthedirectionoftheBoard,(ii)broughtbeforethemeetingbyoratthedirectionoftheBoard,or(iii)otherwiseproperlybroughtbeforethemeetingbyastockholder.Forbusinesstobeproperlybroughtbeforeanannualmeetingbyastockholder,thestockholdermusthavegiven“TimelyNotice”(ashereinafterdefined)thereofinwritingtotheSecretaryoftheCorporation.Tobetimely,astockholder’snoticemustbedeliveredtoormailedandreceivedattheprincipalexecutiveofficesoftheCorporationnotlessthanninety(90)daysnormorethanonehundredtwenty(120)dayspriortothefirstanniversaryoftheprecedingyear’sannualmeeting;provided,however,thatintheeventthatthedateoftheannualmeetingismorethanthirty(30)daysbeforeormorethanseventy(70)daysaftersuchanniversarydate,noticebythestockholdertobetimelymustbereceivednotearlierthanthecloseofbusinessontheonehundredtwentieth(120)daypriortosuchannualmeetingandnotlaterthanthecloseofbusinessonthelateroftheninetieth(90)daypriortosuchannualmeetingorthetenth(10)dayfollowingthedayonwhichnoticeofthedateofthemeetingwasmailedorpublicdisclosureofthemeetingwasmade,whicheverfirstoccurs(suchnoticewithinsuchtimeperiods,“TimelyNotice”).Astockholder’snoticetotheSecretaryshallsetforthastoeachmatterthestockholderproposestobringbeforetheannualmeeting(i)abriefdescriptionofthebusinessdesiredtobebroughtbeforetheannualmeeting,(ii)thenameandrecordaddressofthestockholderproposingsuchbusiness,(iii)theclassandnumberofsharesofcapitalstockoftheCorporationwhicharebeneficiallyownedbythestockholder,and(iv)anymaterialinterestofthestockholderinsuchbusiness.NotwithstandinganythingintheseBy-Lawstothecontrary,nobusinessshallbeconductedatanannualmeetingexceptinaccordancewiththeproceduressetforthinthisSection11ofArticleII.Thepresidingofficerofanannualmeetingshall,ifthefactswarrant,determinethatthebusinesswasnotproperlybroughtbeforethemeetingandinaccordancewiththeprovisionsofthisSection11ofArticleII;andifheshouldsodetermine,heshallsodeclaretothemeetingandanysuchbusinessnotproperlybroughtbeforethemeetingshallnotbetransacted.

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ARTICLE III.DIRECTORS

1.GeneralPowers.ThebusinessandaffairsoftheCorporationshallbemanagedbyorunderthedirectionoftheBoard.

2.NominationofDirectors.NominationsofpersonsforelectiontotheBoardattheannualmeetingmaybemadeatsuchmeetingbyoratthedirectionoftheBoard,byanycommitteeorpersonsappointedbytheBoardorbyanystockholderoftheCorporationentitledtovotefortheelectionofdirectorsatthemeetingwhocomplieswiththenoticeproceduressetforthinthisArticleIII,Section2.SuchnominationsbyanystockholdershallbemadepursuanttoTimelyNoticeinwritingtotheSecretaryoftheCorporation.Suchstockholder’snoticetotheSecretaryshallsetforth(i)astoeachpersonwhomthestockholderproposestonominateforelectionorreelectionasadirector,(A)thename,age,businessaddressandresidenceaddressoftheperson,(B)theprincipaloccupationoremploymentoftheperson,(C)theclassandnumberofsharesofcapitalstockoftheCorporationwhicharebeneficiallyownedbytheperson,and(D)anyotherinformationrelatingtothepersonthatisrequiredtobedisclosedinsolicitationsforproxiesforelectionofdirectorspursuanttotheRulesandRegulationsoftheSecuritiesandExchangeCommissionunderSection14oftheSecuritiesExchangeActof1934,asamended;and(ii)astothestockholdergivingthenotice(A)thenameandrecordaddressofthestockholderand(B)theclassandnumberofsharesofcapitalstockoftheCorporationwhicharebeneficiallyownedbythestockholder.TheCorporationmayrequireanyproposednomineetofurnishsuchotherinformationasmayreasonablyberequiredbytheCorporationtodeterminetheeligibilityofsuchproposednomineetoserveasadirectoroftheCorporation.NopersonshallbeeligibleforelectionasadirectoroftheCorporationunlessnominatedinaccordancewiththeproceduressetforthherein.TheofficeroftheCorporationpresidingatanannualmeetingshall,ifthefactswarrant,determineanddeclaretothemeetingthatanominationwasnotmadeinaccordancewiththeforegoingprocedure,andifheshouldsodetermine,heshallsodeclaretothemeetingandthedefectivenominationshallbedisregarded.

3.Number,ElectionandTermofOffice.ThenumberofdirectorswhichshallconstitutethewholeBoardshallbenotlessthanthree(3).TheexactnumberofdirectorsshallbedeterminedfromtimetotimebyresolutionoftheBoardpursuanttotheCertificateofIncorporation.Thedirectorsneednotbestockholders.ExceptasotherwiseprovidedinSection3ofthisArticleIII,directorsshallbeelectedattheannualmeetingofthestockholdersandeachdirectorelectedshallholdofficeuntilsuchdirector’ssuccessoriselectedandqualifiedoruntiltheearlierofsuchdirector’sresignationorremoval.AnydirectormayresignatanytimeuponnoticegiveninwritingorbyelectronictransmissiontotheCorporationasprovidedinArticleVIII,Section4oftheseBylaws.Whenoneormoredirectorssoresigns,vacanciesshallbefilledasprovidedinSection4ofthisArticleIII.UnlessotherwiserestrictedbyorprovidedintheDGCLortheCertificateofIncorporation,anydirectorortheentireBoardmayberemovedfromofficeatanytime,butonlyforcauseandonlybytheaffirmativevoteoftheholdersof662/3%ofvotingpowerofthesharesofstockoftheCorporationthenentitledtovoteatanelectionofdirectors.

4.Vacancies.UnlessotherwiseprovidedintheCertificateofIncorporationortheseBy-Laws,vacanciesontheBoardbyreasonofdeath,resignation,retirement,disqualification,

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removalfromofficeorotherwise,andnewlycreateddirectorshipsresultingfromanyincreaseintheauthorizednumberofdirectors,shallbefilledbyamajorityofthedirectorstheninoffice,althoughlessthanaquorum,orbyasoleremainingdirector.Eachdirectorsochosenshallholdofficeuntilthenextannualelectionofdirectorsanduntilsuchdirector’ssuccessorisdulyelectedandqualified,oruntilsuchdirector’searlierresignationorremoval.

5.AnnualMeetings.TheannualmeetingofeachnewlyelectedBoardshallbeheldwithoutothernoticethanthisby-lawafter,andatthesameplaceas,theannualmeetingofstockholders.

6.OtherMeetingsandNotices.Regularmeetings,otherthantheannualmeeting,oftheBoardmaybeheldwithoutnoticeatsuchtime,onceeveryfiscalquarter,andatsuchplaceasshallfromtimetotimebedeterminedbyresolutionoftheboard.SpecialmeetingsoftheBoardmaybecalledbyorattherequestoftheChairmanoftheBoard,ChiefExecutiveOfficer,thePresidentortwodirectorsonatleast24hoursnoticetoeachdirector,eitherpersonally,bytelephone,bymail,bytelegraphorbyelectronictransmission.

7.Quorum,RequiredVoteandAdjournment.Amajorityofthetotalnumberofdirectorsshallconstituteaquorumforthetransactionofbusiness.ThevoteofamajorityofdirectorspresentatameetingatwhichaquorumispresentshallbetheactoftheBoard.IfaquorumshallnotbepresentatanymeetingoftheBoard,thedirectorspresentthereatmayadjournthemeetingfromtimetotime,withoutnoticeotherthanannouncementatthemeeting,untilaquorumshallbepresent.

8.Committees.TheBoardmaydesignateoneormorecommittees,eachsuchcommitteetoconsistofoneormoreofthedirectorsoftheCorporation.TheBoardmaydesignateoneormoredirectorsasalternatemembersofanycommittee,whomayreplaceanyabsentordisqualifiedmemberatanymeetingofthecommittee.Intheabsenceordisqualificationofamemberofacommittee,thememberormembersthereofpresentatanymeetingandnotdisqualifiedfromvoting,whetherornotsuchmemberormembersconstituteaquorum,mayunanimouslyappointanothermemberoftheBoardtoactatthemeetingintheplaceofanysuchabsentordisqualifiedmember.Notwithstandingtheforegoing,thecompositionanddutiesofanycommitteeshallcomplywiththerulesandregulationsofanystockexchangeorquotationsystemapplicabletotheCorporationoranyregulationorlawapplicabletotheCorporationoritssecurities.ThedelegationofanydecisiontoacommitteeoftheBoard,andthevotesrequiredforthemakingofsuchdecisionbysuchcommittee,shallhavethesameapprovalrequirementsasthetakingofsuchactionbytheBoard.Anysuchcommittee,totheextentpermittedbylawandtotheextentprovidedintheresolutionoftheBoard,anycommitteecharterorintheseBy-Laws,shallhaveandmayexerciseallthepowersandauthorityoftheBoardinthemanagementofthebusinessandaffairsoftheCorporation,andmayauthorizethesealoftheCorporationtobeaffixedtoallpaperswhichmayrequireit.

9.CommitteeRules.EachcommitteeoftheBoardmayfixitsownrulesofprocedureandshallholditsmeetingsasprovidedbysuchrules,exceptasmayotherwisebeprovidedbyaresolutionoftheBoarddesignatingsuchcommittee.Intheeventthatamemberandthatmember’salternate,ifalternatesaredesignatedbytheBoardasprovidedinSection8ofthisArticleIII,ofsuchcommitteeisorareabsentordisqualified,thememberormembers

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thereofpresentatanymeetingandnotdisqualifiedfromvoting,whetherornotsuchmemberormembersconstituteaquorum,mayunanimouslyappointanothermemberoftheBoardtoactatthemeetinginplaceofanysuchabsentordisqualifiedmember.

10.MinutesofCommitteeMeetings.EachcommitteeshallkeepregularminutesofitsmeetingsandreportthesametotheBoardwhenrequired.

11.MeetingsandActionofCommittees.UnlesstheBoardotherwiseprovides,eachcommitteedesignatedbytheBoardmaymake,alterandrepealrulesfortheconductofitsbusiness.Intheabsenceofsuchrules,eachcommitteeshallconductitsbusinessinthesamemannerastheBoardconductsitsbusinesspursuanttotheapplicablesectionsofArticleIIIoftheseBy-Laws.

12.CommunicationsEquipment.MembersoftheBoardoranycommitteethereofmayparticipateinandactatanymeetingofsuchBoardorcommitteethroughtheuseofaconferencetelephoneorothercommunicationsequipmentbymeansofwhichallpersonsparticipatinginthemeetingcanheareachother,andparticipationinthemeetingpursuanttothissectionshallconstitutepresenceinpersonatthemeeting.

13.WaiverofNoticeandPresumptionofAssent.AnymemberoftheBoardoranycommitteethereofwhoispresentatameetingshallbeconclusivelypresumedtohavewaivednoticeofsuchmeetingexceptwhensuchmemberattendsfortheexpresspurposeofobjectingatthebeginningofthemeetingtothetransactionofanybusinessbecausethemeetingisnotlawfullycalledorconvened.SuchmembershallbeconclusivelypresumedtohaveassentedtoanyactiontakenunlesshisorherdissentshallbeenteredintheminutesofthemeetingorunlesshisorherwrittendissenttosuchactionshallbefiledwiththepersonactingasthesecretaryofthemeetingbeforetheadjournmentthereoforshallbeforwardedbyregisteredmailtotheSecretaryoftheCorporationimmediatelyaftertheadjournmentofthemeeting.Suchrighttodissentshallnotapplytoanymemberwhovotedinfavorofsuchaction.

14.ActionbyWrittenConsent.UnlessotherwiserestrictedbytheCertificateofIncorporation,anyactionrequiredorpermittedtobetakenatanymeetingoftheBoard,orofanycommitteethereof,maybetakenwithoutameetingifallmembersoftheboardorcommittee,asthecasemaybe,consenttheretoinwriting,andthewritingorwritingsarefiledwiththeminutesofproceedingsoftheboardofcommittee.

ARTICLE IV.OFFICERS

1.Number.TheofficersoftheCorporationshallbeelectedbytheBoardandshallconsistofaChiefExecutiveOfficer,aPresident,aChiefOperatingOfficer,aChiefFinancialOfficer,oneormoreVice-Presidents,aSecretary,aTreasurer,andsuchotherofficersandassistantofficersasmaybedeemednecessaryordesirablebytheBoard.Anynumberofofficesmaybeheldbythesameperson.Initsdiscretion,theBoardmaychoosenottofillanyofficeforanyperiodasitmaydeemadvisable,exceptthattheofficesofChiefExecutiveOfficer,PresidentandSecretaryshallbefilledasexpeditiouslyaspossible.

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2.ElectionandTermofOffice.TheofficersoftheCorporationshallbeelectedannuallybytheBoardatitsfirstmeetingheldaftereachannuallymeetingofstockholdersorassoonthereafterasconvenientlymaybe.VacanciesmaybefilledornewofficescreatedandfilledatanymeetingoftheBoard.TheChairmanoftheBoard,theChiefExecutiveOfficerandtheChiefOperatingOfficer,actingunanimously(andinconsultationwiththeCompensationCommittee)maymakeinterimappointmentsofofficersbetweenmeetingsoftheBoard,butsuchappointmentshallonlybeeffectiveuntilthenextBoardmeeting.EachofficerelectedbytheBoardshallholdofficeuntilasuccessorisdulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremovalashereinafterprovided.

3.Removal.AnyofficeroragentelectedbytheBoardmayberemovedbytheBoardwheneverinitsjudgmentthebestinterestsoftheCorporationwouldbeservedthereby,butsuchremovalshallbewithoutprejudicetothecontractrights,ifany,ofthepersonsoremoved.

4.Vacancies.Anyvacancyoccurringinanyofficebecauseofdeath,resignation,removal,disqualificationorotherwise,maybefilledbytheBoardfortheunexpiredportionofthetermbytheBoardtheninoffice.

5.Compensation.CompensationofallofficersshallbefixedbytheBoard,andnoofficershallbepreventedfromreceivingsuchcompensationbyvirtueofhisorheralsobeingadirectoroftheCorporation.

6.ChairmanoftheBoard.TheChairmanoftheBoardshallhavethepowersandperformthedutiesasmaybeprescribedbytheBoardorprovidedintheseBy-Laws.WhenevertheChiefExecutiveOfficerorthePresidentisunabletoserve,byreasonofsickness,absenceorotherwise,theChairmanoftheBoardshallperformallthedutiesandfunctionsandexerciseallthepowersoftherespectiveoffice.

7.ChiefExecutiveOfficer.TheChiefExecutiveOfficeroftheCorporationshallbeingeneralandactivechargeoftheentirebusinessandalloftheaffairsoftheCorporation,shallbeitschiefpolicy-makingofficerandshallberesponsibleforimplementingalldecisionsoftheBoard.SubjecttothefurtherdirectionfromtimetotimefromtheBoard,theChiefExecutiveOfficershallhavetheauthoritytoexecuteanyandalldocumentationonbehalfoftheCorporationandshallhaveallofthepowersandperformallthedutiesincidenttothepositionaswellassuchotherdutiesasmaybeprescribedbytheBoardorasmaybeprescribedintheseBy-Laws.

8.President.ThePresidentshallbetheChiefExecutiveOfficerifthatpositionisnotfilledbyanotherindividualandshallhavethepowersandperformthedutiesincidenttothatparticularposition;iftheChiefExecutiveOfficerpositionhasbeenfilledbyanotherindividual,thePresidentshallassisttheChiefExecutiveOfficerintheperformanceofthedutiesofChiefExecutiveOfficerandshall,attherequestoftheChiefExecutiveOfficer,representsuchChiefExecutiveOfficeratpublicorprivatefunctionsandceremoniesandperformsuchotherfunctionsasmaybereasonablyrequestedbytheChiefExecutiveOfficer.ThePresidentshallserveasthedirectsupervisorforvariousoperatingdepartmentsoftheCorporationasdeterminedfromtimetotimebytheChairmanoftheBoard,theChiefExecutiveOfficerortheBoard.Subjecttothe

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furtherdirectionfromtimetotimeoftheBoard,thePresidentshallhavetheauthoritytoexecuteanyandalldocumentationonbehalfoftheCorporationandshallhaveallofthepowersandperformallthedutiesincidenttothepositionaswellassuchotherdutiesasmaybeprescribedbytheBoardorasmaybeprescribedintheseBy-Laws.

9.ChiefOperatingOfficer.TheChiefOperatingOfficeroftheCorporationshallalsobeaVice-PresidentoftheCorporationandshallsubjecttospecificdirectionbythedirectionoftheChairmanoftheBoard,theChiefExecutiveOfficerandtheBoard,beingeneralandactivechargeofthebusinessoperationsoftheCorporation.TheChiefOperatingOfficershallconsultandcoordinateregularlywiththeChiefExecutiveOfficerandthePresidentandshallserveasthedirectsupervisorforvariousoperatingdepartmentsoftheCorporationasdeterminedfromtimetotimebytheChairmanoftheBoard,theChiefExecutiveOfficer,thePresidentortheBoard.SubjecttothefurtherdirectionfromtimetotimefromtheBoard,theChiefOperatingOfficershallhavetheauthoritytoexecuteanyandalldocumentationonbehalfoftheCorporationandshallhaveallofthepowersandperformallthedutiesincidenttothepositionaswellassuchotherdutiesasmaybeprescribedbytheBoardorasmaybeprescribedintheseBy-Laws.

10.ChiefFinancialOfficer.TheChiefFinancialOfficeroftheCorporationshallresponsibleforthefinancialoperationsoftheCorporation,includingthemaintenanceoffinancialrecords,thepreparationandreportingoffinancialresultsandrelatedtaxreturns,theco-ordinationofthereportingpracticesoftheCorporationwithoutsideauditors,thenegotiationofcreditarrangementswiththeCorporations’lendersandinvestorsandrelatedbudgeting,tax-planningandforecastingfunctions.SubjecttothefurtherdirectionfromtimetotimefromtheBoard,theChiefFinancialOfficershallhavetheauthoritytoexecutedocumentationonbehalfoftheCorporationandshallhavesuchotherpowersandperformsuchotherdutiesincidenttothepositionaswellassuchotherdutiesasmaybeprescribedbytheBoardorasmaybeprescribedintheseBy-Laws.

11.Vice-Presidents.TheVice-President,orifthereshallbemorethanone,theVice-PresidentsintheorderandwiththeresponsibilitiesandstatusdeterminedbytheBoard,shall,beresponsibleforspecificdepartmentsorfunctionsoftheCorporationandintheeventofthedeath,ordisabilityoftheseniorexecutiveofficersdescribedinSections6,7,8,9and10ofthisArticleIV(“SeniorExecutiveOfficers”)actwithallofthepowersandbesubjecttoalltherestrictionsofsuchSeniorExecutiveOfficers.Vice-Presidentsmaybedesignated(inorderofseniority)asExecutiveVice-President,SeniorVice-PresidentorVice-President,withsuchadditionoradditionstothetitle(e.g.Vice-President–Finance)asmaybedeemedappropriatetoindicatetheareaofresponsibilitywithintheCorporation.SubjecttothefurtherdirectionfromtimetotimeoftheBoard,eachVice-PresidentshallhavetheauthoritytoexecuteanyandalldocumentationonbehalfoftheCorporationrelatingtotheareaoftheirresponsibilityandshallhaveallofthepowersandperformallthedutiesincidenttothepositionaswellassuchotherdutiesasmaybeprescribedbytheBoardorasmaybeprescribedintheseBy-Laws.

12.TheSecretaryandAssistantSecretaries.TheSecretaryshallattendallmeetingsoftheBoard,allmeetingsofthecommitteesthereofandallmeetingsofthestockholdersandrecordalltheproceedingsofthemeetingsinabookorbookstobekeptforthatpurpose.TheSecretary:shallgive,orcausetobegiven,allnoticesrequiredtobegivenbytheseBy-Lawsor

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bylawandshallhavesuchpowersandperformsuchdutiesastheBoardortheseBy-Lawsmay,fromtimetotime,prescribe;andshallhavecustodyofthecorporatesealoftheCorporation.TheSecretary,oranAssistantSecretary,shallhaveauthoritytoaffixthecorporatesealtoanyinstrumentrequiringitandwhensoaffixed,itmaybeattestedbyhisorhersignatureorbythesignatureofsuchAssistantSecretary.TheBoardmaygivegeneralauthoritytoanyotherofficertoaffixthesealoftheCorporationandtoattesttheaffixingbyhisorhersignature.TheAssistantSecretary,oriftherebemorethanone,theassistantsecretariesintheorderdeterminedbytheBoard,shall,intheabsenceordisabilityoftheSecretary,performthedutiesandexercisethepowersoftheSecretaryandshallperformsuchotherdutiesandhavesuchotherpowersastheBoardmay,fromtimetotime,prescribe.

13.TheTreasurerandAssistantTreasurer.TheTreasurershallhavethecustodyofthecorporatefundsandsecurities;shallkeepfullandaccurateaccountsofreceiptsanddisbursementsinbooksbelongingtotheCorporation;shalldepositallmoniesandothervaluableeffectsinthenameandtothecreditoftheCorporationasmaybeorderedbytheBoard;shallcausethefundsoftheCorporationtobedisbursedwhensuchdisbursementshavebeendulyauthorized,takingpropervouchersforsuchdisbursements;andshallrendertotheChiefFinancialOfficerandtheBoard,atitsregularmeetingorwhentheBoardsorequires,anaccountoftheCorporation;shallhavesuchpowersandperformsuchdutiesastheBoardortheseBy-Lawsmay,fromtimetotime,prescribe.IfrequiredbytheBoard,theTreasurershallgivetheCorporationabond(whichshallberenderedevery6years)insuchsumsandwithsuchsuretyorsuretiesasshallbesatisfactorytotheBoardforthefaithfulperformanceofthedutiesoftheofficeofTreasurerandfortherestorationtotheCorporation,incaseofdeath,resignation,retirement,orremovalfromoffice,ofallbooks,papers,vouchers,money,andotherpropertyofwhateverkindinthepossessionorunderthecontroloftheTreasurerbelongingtotheCorporation.TheassistantTreasurer,orifthereshallbemorethanone,theassistantTreasurersintheorderdeterminedbytheBoard,shallintheabsenceordisabilityoftheTreasurer,performthedutiesandexercisethepowersoftheTreasurer.TheassistantTreasurersshallperformsuchotherdutiesandhavesuchotherpowersastheBoardmay,fromtimetotime,prescribe.

14.OtherOfficers,AssistantOfficersandAgents.Officers,assistantofficersandagents,ifany,otherthanthosewhosedutiesareprovidedforintheseBy-Laws,shallhavesuchauthorityandperformsuchdutiesasmayfromtimetotimebeprescribedbyresolutionoftheBoard.

15.AbsenceorDisabilityofOfficers.InthecaseoftheabsenceordisabilityofanyofficeroftheCorporationandofanypersonherebyauthorizedtoactinsuchofficer’splaceduringsuchofficer’sabsenceordisability,theBoardmayberesolutiondelegatethepowersanddutiesofsuchofficertoanyotherofficerortoanydirector,ortoanyotherpersonwhomitmayselect.

ARTICLE V.INDEMNIFICATION OF OFFICERS, DIRECTORS AND OTHERS

1.RighttoIndemnification.TheCorporationshallindemnifyandholdharmless,tothefullestextentpermittedbyapplicablelawasitpresentlyexistsormayhereafterbeamended,anyperson(a“CoveredPerson”)whowasorismadeoristhreatenedtobemadeapartyoris

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otherwiseinvolvedinanyaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative(a“proceeding”),byreasonofthefactthatheorshe,orapersonforwhomheorsheisthelegalrepresentative,isorwasadirectororofficeroftheCorporationor,whileadirectororofficeroftheCorporation,isorwasservingattherequestoftheCorporationasadirector,officer,employee,agentormanagerofanothercorporationorofapartnership,limitedliabilitycompany,jointventure,trust,enterpriseornonprofitentity,includingservicewithrespecttoemployeebenefitplans,againstallliabilityandlosssufferedandexpenses(includingattorneys’fees)reasonablyincurredbysuchCoveredPerson.Notwithstandingtheprecedingsentence,exceptasotherwiseprovidedinthisArticleV,theCorporationshallberequiredtoindemnifyaCoveredPersoninconnectionwithaproceeding(orpartthereof)commencedbysuchCoveredPersononlyifthecommencementofsuchproceeding(orpartthereof)bytheCoveredPersonwasauthorizedinthespecificcasebytheBoardoftheCorporation.

2.PrepaymentofExpense.TheCorporationshall,tothefullestextentnotprohibitedbyapplicablelaw,paytheexpenses(includingattorneys’fees)incurredbyaCoveredPersonindefendinganyproceedinginadvanceofitsfinaldisposition;provided,however,that,totheextentrequiredbylaw,suchpaymentofexpensesinadvanceofthefinaldispositionoftheproceedingshallbemadeonlyuponreceiptofanundertakingbytheCoveredPersontorepayallamountsadvancedifitshouldbeultimatelydeterminedthattheCoveredPersonisnotentitledtobeindemnifiedunderthisArticleVorotherwise.

3.Claims.Ifaclaimforindemnification(followingthefinaldispositionofsuchaction,suitorproceeding)oradvancementofexpensesunderthisArticleVisnotpaidinfullwithinthirtydays(30)afterawrittenclaimthereforbytheCoveredPersonhasbeenreceivedbytheCorporation,theCoveredPersonmayfilesuittorecovertheunpaidamountofsuchclaimand,ifsuccessfulinwholeorinpart,shallbeentitledtobepaidtheexpenseofprosecutingsuchsuit.InanysuchactiontheCorporationshallhavetheburdenofprovingthattheCoveredPersonisnotentitledtotherequestedindemnificationand/oradvancementofexpensesunderapplicable.

4.NonexclusivityofRights.TherightsconferredonanyCoveredPersonbythisArticleVshallnotbeexclusiveofanyotherrightswhichsuchCoveredPersonmayhaveorhereafteracquireunderanylaw,theCertificateofIncorporation,theseBylaws,agreement,voteofstockholdersordisinteresteddirectors,orotherwise.

5.OtherSources.TheCorporation’sobligation,ifany,toindemnifyortoadvanceexpensestoanyCoveredPersonwhowasorisservingatitsrequestasadirector,officer,employee,agentormanagerofanothercorporation,partnership,limitedliabilitycompany,jointventure,trust,enterpriseornonprofitentityshallbereducedbyanyamountsuchCoveredPersonmaycollectasindemnificationoradvancementofexpensesfromsuchothercorporation,partnership,limitedliabilitycompany,jointventure,trust,enterpriseornon-profitenterprise.

6.Amendment,ModificationorRepeal.Anyamendment,modificationorrepealoftheforegoingprovisionsofthisArticleVshallnotadverselyaffectanyrightorprotectionhereunderofanyCoveredPersoninrespectofanyactoromissionoccurringpriortothetimeofsuchrepealormodification.

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7.OtherIndemnificationandPrepaymentofExpenses.ThisArticleVshallnotlimittherightoftheCorporation,totheextentandinthemannerpermittedbylaw,toindemnifyandtoadvanceexpensestopersonsotherthanCoveredPersonswhenandasauthorizedbyappropriatecorporateaction.

ARTICLE VI.CERTIFICATES OF STOCK

1.Certificates.ThesharesofthestockoftheCorporationshallberepresentedbycertificates,providedthattheBoardmayprovidebyresolutionthatsomeorallsharesofanyorallseriesofitsstockshallbeuncertificatedshares.AnysuchresolutionshallnotapplytosharesrepresentedbyacertificateuntilsuchcertificateissurrenderedtotheCorporation.EveryholderofsharesofstockoftheCorporationrepresentedbycertificatesshallbeentitledtohaveacertificatesignedby,orinthenameoftheCorporationby(i)thechairpersonorvicechairpersonoftheBoard,orthepresidentoravicepresident,and(ii)theSecretaryoranAssistantSecretary,orthetreasureroranassistanttreasureroftheCorporation,certifyingthenumberofsharesrepresentedbythecertificateownedbysuchstockholderintheCorporation.

2.SignaturesonCertificates.Anyorallofthesignaturesonthecertificatemaybeafacsimile.Incaseanyofficer,transferagentorregistrarwhohassignedorwhosefacsimilesignaturehasbeenplaceduponacertificateshallhaveceasedtobesuchofficer,transferagentorregistrarbeforesuchcertificateisissued,itmaybeissuedbytheCorporationwiththesameeffectasifsuchpersonweresuchofficer,transferagentorregistraratthedateofissue.

3.Lost,StolenorDestroyedStockCertificates.TheCorporationmayissueanewcertificateofstockintheplaceofanycertificatetheretoforeissuedbyit,allegedtohavebeenlost,stolenordestroyed,andtheCorporationmayrequiretheownerofthelost,stolenordestroyedcertificate,orsuchowner’slegalrepresentative,togivetheCorporationabondsufficienttoindemnifyitagainstanyclaimthatmaybemadeagainstitonaccountoftheallegedloss,theftordestructionofanysuchcertificateortheissuanceofsuchnewcertificate.

4.FixingDateforDeterminationofStockholdersofRecord.InorderthattheCorporationmaydeterminethestockholders(a)entitledtonoticeofortovoteatanymeetingofstockholdersoranyadjournmentthereof,(b)toreceivepaymentofanydividendorotherdistributionorallotmentofanyrights,(c)toexerciseanyrightsinrespectofanychange,conversionorexchangeofstockor(d)forthepurposeofanyotherlawfulaction,theBoardmayfixarecorddate,whichrecorddateshallnotprecedethedateuponwhichtheresolutionfixingtherecorddateisadoptedbytheBoard,andwhichrecorddate:(i)inthecaseofdeterminationofstockholdersentitledtovoteatanymeetingofstockholdersoradjournmentthereof,shall,unlessotherwiserequiredbylaw,notbemorethansixty(60)norlessthanten(10)daysbeforethedateofsuchmeetingand(ii)inthecaseofanyotheraction,shallnotbemorethansixty(60)dayspriortosuchotheraction.Ifnorecorddateisfixed:(1)therecorddatefordeterminingstockholdersentitledtonoticeofortovoteatameetingofstockholdersshallbeatthecloseofbusinessonthedaynextprecedingthedayonwhichnoticeisgiven,or,ifnoticeiswaived,atthecloseofbusinessonthedaynextprecedingthedayonwhichthemeetingisheldand(2)therecorddatefordeterminingstockholdersforanyotherpurposeshallbeatthecloseofbusinessonthedayonwhichtheBoardadoptstheresolutionrelatingthereto.Adeterminationof

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stockholdersofrecordentitledtonoticeofortovoteatameetingofstockholdersshallapplytoanyadjournmentofthemeeting;provided,however,thattheBoardmayfixanewrecorddatefortheadjournedmeeting.

5.RegisteredStockholders.TheCorporationshallbeentitledtotreattheholderofrecordofanyshareorsharesofstockastheholderinfactthereofandaccordinglyshallnotbeboundtorecognizeanyequitableorotherclaimorinterestinsuchshareonthepartofanyotherperson,whetherornotitshallhaveexpressorothernoticethereof,saveasexpresslyprovidedbytheDGCL.

ARTICLE VII.GENERAL PROVISIONS

1.Dividends.DividendsuponthecapitalstockoftheCorporation,subjecttotheprovisionsoftheCertificateofIncorporation,ifany,maybedeclaredbytheBoardatanyregularorspecialmeeting,pursuanttolaw.Dividendsmaybepaidincash,inproperty,orinsharesofthecapitalstock,subjecttotheprovisionsoftheCertificateofIncorporation.Beforepaymentofanydividend,theremaybesetasideoutofanyfundsoftheCorporationavailablefordividendssuchsumorsumsasthedirectorsfromtimetotime,intheirabsolutediscretion,thinkproperasareserveorreservestomeetcontingencies,orforequalizingdividends,orforrepairingormaintaininganypropertyoftheCorporation,oranyotherpurposeandthedirectorsmaymodifyorabolishanysuchreserveinthemannerinwhichitwascreated.

2.Checks,DraftsorOrders.Allchecks,drafts,orotherordersforthepaymentofmoneybyortotheCorporationandallnotesandotherevidencesofindebtednessissuedinthenameoftheCorporationshallbesignedbysuchofficerorofficers,agentoragentsoftheCorporation,andinsuchmanner,asshallbedeterminedbyresolutionoftheBoardoradulyauthorizedcommitteethereof.

3.Contracts.TheBoardmayauthorizeanyofficerorofficers,oranyagentoragents,oftheCorporationtoenterintoanycontractortoexecuteanddeliveranyinstrumentinthenameofandonbehalfofthecompany,andsuchauthoritymaybegeneralorconfinedtospecificinstances.

4.Loans.NoloansshallbemadeorcontractedonbehalfoftheCorporationandnoevidencesofindebtednessshallbeissuedinitsnameunlessauthorizedbyresolutionorotherspecificapprovaloftheBoard.Suchauthoritymaybegeneralorconfinedtospecificinstances.

5.FiscalYear.ThefiscalyearoftheCorporationshallbefixedbyresolutionoftheBoard.

6.CorporateSeal.TheBoardmayprovideacorporatesealwhich,ifprovided,shallbeintheformofacircleandshallhaveinscribedthereonthenameoftheCorporationandthewords“CorporateSeal,Delaware”.Thesealmaybeusedbycausingitorafacsimilethereoftobeimpressedoraffixedorreproducedorotherwise.

7.VotingSecuritiesOwnedByCorporation.VotingsecuritiesinanyothercorporationheldbytheCorporationshallbevotedbythePresident,unlesstheBoardspecifically

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confersauthoritytovotewithrespectthereto,whichauthoritymaybegeneralorconfinedtospecificinstances,uponsomeotherpersonorofficer.Anypersonauthorizedtovotesecuritiesshallhavethepowertoappointproxies,withgeneralpowerofsubstitution.

8.InspectionofBooksandRecords.Anystockholderofrecord,inpersonorbyattorneyorotheragent,shall,uponwrittendemandunderoathstatingthepurposethereof,havetherightduringtheusualhoursforbusinesstoinspectforanyproperpurposetheCorporation’sstockledger,alistofitsstockholders,anditsotherbooksandrecords,andtomakecopiesorextractstherefrom.Aproperpurposeshallmeananypurposereasonablyrelatedtosuchperson’sinterestasastockholder.Ineveryinstancewhereanattorneyorotheragentshallbethepersonwhoseekstherighttoinspection,thedemandunderoathshallbeaccompaniedbyapowerofattorneyorsuchotherwritingwhichauthorizestheattorneyorotheragenttosoactonbehalfofthestockholder.ThedemandunderoathshallbedirectedtotheCorporationatitsregisteredofficeintheStateofDelawareoratitsprincipalplaceofbusiness.

9.SectionHeadings.SectionheadingsintheseBy-Lawsareforconvenienceofreferenceonlyandshallnotbegivenanysubstantiveeffectinlimitingorotherwiseconstruinganyprovisionherein.

10.InconsistentProvisions.IntheeventthatanyprovisionoftheseBy-LawsisorbecomesinconsistentwithanyprovisionoftheCertificateofIncorporation,theDGCLoranyotherapplicablelaw,theprovisionoftheseBy-Lawsshallnotbegivenanyeffecttotheextentofsuchinconsistencybutshallotherwisebegivenfullforceandeffect.

ARTICLE VIII.AMENDMENTS

TheseBy-Lawsmaybeamended,altered,orrepealedandnewby-lawsadoptedatanymeetingoftheBoardbyamajorityvote.NotwithstandingtheforegoingoranyotherprovisionsoftheseBy-LawsortheCertificateofIncorporationoftheCorporation(andnotwithstandingthefactthatalesserpercentageorseparateclassvotemaybespecifiedorpermittedbylaw,theseBy-LawsortheCertificateofIncorporationoftheCorporation),anyproposaltoamendorrepeal,ortoadoptanyprovisionoftheseBy-LawsinconsistentwithSections2and11ofArticleII,Sections2and3ofArticleIIIandArticleVIIIoftheseBy-Lawsshallrequiretheaffirmativevoteoftheholdersofnotlessthan662/3%ofthevotesentitledtobecastbytheholdersofallthethenoutstandingsharesofstockthenentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass.

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Exhibit 4

AMENDMENT TO STOCKHOLDER RIGHTS AGREEMENT

ThisAMENDMENT(this“Amendment”)totheStockholderRightsAgreement,datedasofOctober25,2007(the“Agreement”),byandbetweenUltaSalon,Cosmetics&Fragrance,Inc.(the“Company”)andAmericanStockTransfer&TrustCompany,asRightsAgent(“RightsAgent”),ismadeandenteredintoasofJanuary29,2017.CapitalizedtermsusedbutnotexpresslydefinedinthisAmendmentshallhavethemeaningsascribedtosuchtermsintheAgreement.

RECITALS

WHEREAS, Section25oftheAgreementprovidesthat,aslongastheRightsarethenredeemable(whichtheyarecurrently),theCompanymayinitssoleandabsolutediscretion,andtheRightsAgentshall,iftheCompanysodirects,supplementoramendanyprovisionoftheAgreementinanyrespectwithouttheapprovalofanyholdersofRightsorCommonShares;

WHEREAS, onJanuary29,2017,theCompanyimplementedaholdingcompanyreorganization(the“HoldingCompanyReorganization”)pursuanttowhich,amongotherthings,UltaBeauty,Inc.,aDelawarecorporation(“UltaBeauty”),replacedtheCompanyasthepublicly-tradedentityandeachoutstandingshareofcommonstockoftheCompanyautomaticallyconvertedintoashareofthecommonstockofUltaBeauty,havingthesamerights,powersandpreferences,andqualifications,limitationsandrestrictions(accordingly,uponconsummationoftheHoldingCompanyReorganization,theCompany’sthencurrentstockholdersbecamestockholdersofUltaBeauty);and

WHEREAS, inconnectionwith,andasaresultof,theHoldingCompanyReorganization,theBoardofDirectorsoftheCompanyhasdeterminedthatitisinthebestinterestsoftheCompanyanditsstockholderstoamendthetermsoftheAgreementassetforthbelowanddirectstheRightsAgenttoalsoexecutethisAmendment.

NOW, THEREFORE, inconsiderationofthepremisesandmutualcovenantshereinaftersetforthandforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,theCompany,UltaBeautyandtheRightsAgentherebyamendtheAgreementasfollows:

SECTION1.AmendmenttoCertainDefinitions.AllreferencesintheAgreementto“UltaSalon,Cosmetics&Fragrance,Inc.”shallbedeletedandreplacedwith“UltaBeauty,Inc.”Asaresult,amongotherthings,thedefinedtermthe“Company”shallmeanUltaBeauty,Inc.,thedefinedterm“CommonShares”whenusedwithreferencetotheCompanyshallmeanthesharesofcommonstock,parvalue$.01pershare,ofUltaBeauty,Inc.andthedefinedterm“PreferredShares”shallmeantheSeriesAJuniorParticipatingPreferredStockofUltaBeauty,Inc.havingtherights,powersandpreferencessetforthintheCertificateofDesignationsofSeriesAJuniorParticipatingPreferredStockfiledwiththeDelawareSecretaryofStateonDecember16,2016.

SECTION2.LegendinSection3.3oftheAgreement.ThestockcertificatelegendsetforthinSection3.3oftheAgreementisherebydeletedinitsentiretyandreplacedwiththefollowing:

ThiscertificatealsoevidencesandentitlestheholderhereoftocertainrightsassetforthinanAgreementbetweenUltaBeauty,Inc.(the“Company”)andAmericanStockTransfer&TrustCompany,asRightsAgent,datedasofOctober25,2007,asamendedasofJanuary29,2017,andasthesamemaybefurtheramendedfromtimetotime(the“Agreement”),thetermsofwhichareherebyincorporatedhereinbyreferenceandacopyofwhichisonfileattheprincipalexecutiveofficesoftheCompany.Undercertaincircumstances,assetforthintheAgreement,suchRightswillbeevidencedbyseparatecertificatesandwillnolongerbeevidencedbythiscertificate.TheCompanywillmailtotheholderofthiscertificateacopyoftheAgreementwithoutchargeafterreceiptofawrittenrequesttherefor.As described in the Agreement, Rights which are owned by, transferred to orhave been owned by Acquiring Persons or Associates or Affiliates thereof (as defined in the Agreement) shall become null and void and will nolonger be transferable.

SECTION3.RatificationofAgreement;EffectofAmendment.Excepttotheextentexpresslymodifiedherein,alloftheterms,covenantsandotherprovisionsoftheAgreementareherebyratifiedandconfirmedandshallcontinuetobeinfullforceandeffectinaccordancewiththeirrespectiveterms.IntheeventofanyconflictorinconsistencybetweenthetermsofthisAmendmentandthetermsoftheAgreement,thetermsofthisAmendmentwillcontrol.FromandafterthedateofthisAmendment,allreferencestotheAgreement(whetherintheAgreement,inthisAmendmentorotherwise)shallrefertotheAgreementasamendedbythisAmendment.

SECTION4.GoverningLaw.ThisAmendmentwillbegovernedbyandconstruedandenforcedinaccordancewiththelawsoftheStateofDelawarewithoutregardtoprinciplesofconflictsoflaw.

SECTION5.Counterparts.ThisAmendmentmaybeexecutedinoneormorecounterparts,andcounterpartsmaybeexchangedbyelectronictransmission,eachofwhichwillbedeemedanoriginal,butallofwhichtogetherconstituteoneandthesameinstrument.

SECTION6.Headings.TheheadingscontainedinthisAmendmentareincludedforpurposesofconvenienceonly,andwillnotaffectthemeaningorinterpretationofthisAmendment.

[SignaturePageFollows]

IN WITNESS WHEREOF ,theundersignedhaveexecutedthisAmendmentasofthedayandyearfirstabovewritten.

ULTA SALON, COSMETICS & FRAGRANCE, INC.

By: /s/JodiJ.Caro JodiJ.Caro GeneralCounselandCorporateSecretary

ULTA BEAUTY, INC.

By: /s/JodiJ.Caro JodiJ.Caro GeneralCounselandCorporateSecretary

AMERICAN STOCK TRANSFER & TRUST COMPANY

By: /s/JenniferDonovan JenniferDonovan

SeniorVicePresident,RegionalManager,RelationshipManagement

[SignaturePagetoAmendmenttoStockholderRightsAgreement]

Exhibit 10.1

COMPENSATION PLAN AGREEMENT

ThisCOMPENSATIONPLANAGREEMENT(this“Agreement”)datedasofJanuary27,2017isbetweenUltaSalon,Cosmetics&Fragrance,Inc.,aDelawarecorporation(“Salon”)(whichwillbethesurvivingentityfollowingthemergerinwhichUltaMergerSub,Inc.,aDelawarecorporation(“MergerSub”),willbemergedwithandintoSalon),andUltaBeauty,Inc.,aDelawarecorporation(“UltaBeauty”).AllcapitalizedtermsusedinthisAgreementandnotdefinedhereinhavetherespectivemeaningsascribedtothemintheAgreementandPlanofMerger,datedasofJanuary27,2017(the“MergerAgreement”),byandamongSalon,UltaBeautyandMergerSub.

RECITALS

WHEREAS,pursuanttotheMergerAgreement,attheEffectiveTime,MergerSubwillbemergedwithandintoSalon,withSaloncontinuingasthesurvivingentityinsuchmergerandeachoutstandingshareofcommonstockofSalon(“SalonStock”)willbeconvertedintooneshareofcommonstockofUltaBeauty(“UltaBeautyStock”)withthesamerightsandprivilegesrelativetoUltaBeautythatsuchsharehadrelativetoSalonpriortothemerger(the“Reorganization”);

WHEREAS,inconnectionwiththeReorganization,(1)Salonwilltransfer(includingsponsorshipof)toUltaBeauty,andUltaBeautywillassume(includingsponsorshipof),Salon’sequitycompensationplanslistedinExhibitAandanysubplans,appendicesoraddendumsthereto(the“SalonEquityCompensationPlans”)andallobligationsofSalonpursuanttoeachstockoptiontopurchaseashareofSalonStock(a“SalonOption”)andeachrighttoacquireorvestinashareofSalonStock,including,withoutlimitation,restrictedstockunitsandperformancebasedvestingshareunitawards(a“SalonUnit”andeachofaSalonOptionandaSalonUnit,a“SalonEquityAward”)thatisoutstandingimmediatelypriortotheEffectiveTimeand(a)issuedundertheSalonEquityCompensationPlansandunderlyinggrantagreements(eachsuchgrantagreement,a“SalonEquityAwardGrantAgreement”andsuchgrantagreementstogetherwiththeSalonEquityCompensationPlans,the“SalonEquityCompensationPlansandAgreements”)or(b)grantedbySalonoutsideoftheSalonEquityCompensationPlansandAgreementspursuanttoNasdaqListingRule5635(c),alluponthetermsandsubjecttotheconditionssetforthintheMergerAgreementandthisAgreement,and(2)eachsuchSalonEquityAwardwillbeconvertedinto(a)withrespecttoeachSalonUnit,arighttoacquireorvestinashareofUltaBeautyStockor(b)withrespecttoaSalonOption,anoptiontopurchaseashareofUltaBeautyStockatanexercisepricepershareequaltotheexercisepricepershareofSalonStocksubjecttosuchSalonOptionimmediatelypriortotheEffectiveTime;

WHEREAS,theBoardofDirectorsofSalonhasdeterminedthatitisinthebestinterestsofSalonforSalontoenterintothisAgreement;

WHEREAS,theBoardofDirectorsofUltaBeautyhasdeterminedthatitisinthebestinterestsofUltaBeautyanditsshareholdersforUltaBeautytoenterintothisAgreement;

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WHEREAS,theBoardofDirectorsofSalonandtheBoardofDirectorsofUltaBeautyhavedeterminedthattheReorganizationdoesnotconstitutea“ChangeinControl”undertheSalonEquityCompensationPlansandAgreementsortheSalonEquityAwards,assuchtermisdefinedtherein.

NOW,THEREFORE,forgoodandvaluableconsideration,thereceipt,adequacyandsufficiencyofwhichareherebyacknowledged,SalonandUltaBeautyherebyagreeasfollows:

I.EQUITY PLANS AND AWARDS

1.SubjecttoandasoftheEffectiveTime,UltaBeautywillassumeandwillperform,fromandaftertheEffectiveTime,alloftheobligationsofSalonpursuanttotheSalonEquityCompensationPlansandAgreements.

2.SubjecttoandasoftheEffectiveTime,(a)UltaBeautywillassumeeachSalonEquityAwardthatisoutstandingandunexercised,unvestedandnotyetpaidorpayableimmediatelypriortotheEffectiveTime(i)issuedundertheSalonEquityCompensationPlansandAgreementsor(ii)grantedbySalonoutsideoftheSalonEquityCompensationPlansandAgreementspursuanttoNasdaqListingRule5635(c)and(b)eachsuchSalonEquityAwardshallbeconvertedinto(i)withrespecttoeachSalonUnit,arighttoacquireorvestin,onotherwisethesametermsandconditionsaswereapplicableundertheapplicableSalonEquityCompensationPlanand/orSalonEquityAwardGrantAgreement(asmodifiedherein),ashareofUltaBeautyStockwiththesamerightsandprivilegesapplicabletotheshareofSalonStocksubjecttosuchSalonUnitimmediatelypriortotheEffectiveTimeand(ii)withrespecttoaSalonOption,anoptiontopurchase,onotherwisethesametermsandconditionsaswereapplicableundertheapplicableSalonEquityCompensationPlanand/orSalonEquityAwardGrantAgreement(asmodifiedherein),ashareofUltaBeautyStockwiththesamerightsandprivilegesapplicabletotheshareofSalonStocksubjecttosuchSalonOptionimmediatelypriortotheEffectiveTime,atanexercisepricepershareequaltotheexercisepricepershareofSalonStocksubjecttosuchSalonOptionimmediatelypriortotheEffectiveTime.AllSalonOptionsshallbeadjustedandconvertedinaccordancewiththerequirementsofSection424oftheUnitedStatesInternalRevenueCodeof1986,asamended,andregulationsthereunder.

3.AttheEffectiveTime,theSalonEquityAwards,theSalonEquityCompensationPlansandAgreementsandanyprovisionofanyothercompensatoryplan,agreementorarrangementprovidingforthegrantorissuanceofSalonStockshalleachbeautomaticallydeemedtobeamended,totheextentnecessaryorappropriate,toprovidethatreferencestoSaloninsuchawards,documentsandprovisionsshallbereadtorefertoUltaBeautyandreferencestoSalonStockinsuchawards,documentsandprovisionsshallbereadtorefertoUltaBeautyStock.UltaBeautyandSalonagreeto(i)prepareandexecuteallamendmentstotheSalonEquityCompensationPlansandAgreements,SalonEquityAwardsandotherdocumentsnecessarytoeffectuateUltaBeauty’sassumptionoftheSalonEquityCompensationPlansandAgreementsandoutstandingSalonEquityAwards,(ii)providenoticeoftheassumptiontoholdersofsuchSalonEquityAwards,and(iii)submitanyrequiredfilingswiththeSecuritiesandExchangeCommissioninconnectionwithsame.

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4.OnorpriortotheEffectiveTime,UltaBeautyshallreservesufficientsharesofUltaBeautyStocktoprovidefortheissuanceofUltaBeautyStocktosatisfyUltaBeauty’sobligationsunderthisAgreementwithrespecttotheSalonEquityCompensationPlansandAgreementsandSalonEquityAwards.

5.SalonandUltaBeautyagreethattheReorganizationdoesnotconstitutea“ChangeinControl”or“SaleoftheCompany”undertheSalonEquityCompensationPlansandAgreementsortheSalonEquityAwards,assuchtermisdefinedtherein.

II.MISCELLANEOUS

1.EachofSalonandUltaBeautywill,fromtimetotimeandatalltimeshereafter,uponeveryreasonablerequesttodosobyanyotherpartyhereto,make,do,executeanddeliver,orcausetobemade,done,executedanddelivered,allsuchfurtheracts,deeds,assurancesandthingsasmaybereasonablyrequiredornecessaryinordertofurtherimplementandcarryouttheintentandpurposeofthisAgreement.

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IN WITNESS WHEREOF ,theundersignedhaveexecutedthisCompensationPlanAgreementasofthedatefirstwrittenabove.

ULTA SALON, COSMETICS & FRAGRANCE, INC.

By: /s/ScottSettersten

ScottSetterstenChiefFinancialOfficer,TreasurerandAssistantSecretary

ULTA BEAUTY, INC.

By: /s/ScottSettersten

ScottSetterstenChiefFinancialOfficer,TreasurerandAssistantSecretary

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Exhibit A

EquityPlans• UltaSalon,Cosmetics&Fragrance,Inc.SecondAmendedandRestatedRestrictedStockOptionPlan,asfurtheramended

• UltaSalon,Cosmetics&Fragrance,Inc.2002EquityIncentivePlan

• UltaSalon,Cosmetics&Fragrance,Inc.2007IncentiveAwardPlan

• AmendedandRestatedUltaSalon,Cosmetics&Fragrance,Inc.2011IncentiveAwardPlan

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Exhibit 10.2

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

by and among

WELLS FARGO BANK, NATIONAL ASSOCIATION,as Administrative Agent, Collateral Agent and LC Issuer,

WELLS FARGO CAPITAL FINANCE, LLCJ.P. MORGAN SECURITIES LLC

as Joint Lead Arrangers and Joint Bookrunners

JPMORGAN CHASE BANK, N.A.,as Syndication Agent

PNC BANK, NATIONAL ASSOCIATION,

as Documentation Agent,

THE FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTY HERETO,as Lenders,

and

ULTA SALON, COSMETICS & FRAGRANCE, INC.as Borrower

Dated: as of October 19, 2011

As Further Amended through November 22, 2016

TABLE OF CONTENTS Page

SECTION1. DEFINITIONS 2

SECTION2. CREDITFACILITIES 21

2.1RevolvingLoans 212.2LetterofCreditAccommodations 232.3AvailabilityReserves 282.4Commitments 292.5SwingLineFacility 29

SECTION3. INTERESTANDFEES 31

3.1Interest 313.2OtherFees 333.3ChangesinLawsandIncreasedCostsofLoans 33

SECTION4. CONDITIONSPRECEDENT 35

4.1ConditionsPrecedenttoInitialLoansandLetterofCreditAccommodations 354.2ConditionsPrecedenttoAllLoansandLetterofCreditAccommodations 35

SECTION5. GRANTANDPERFECTIONOFSECURITYINTEREST 36

5.1GrantofSecurityInterest 365.2ExceptionfromSecurityInterest 375.3PerfectionofSecurityInterest 38

SECTION6. COLLECTIONANDADMINISTRATION 42

6.1Borrower’sLoanAccount 426.2Statements 436.3CollectionofAccounts 436.4Payments 466.5AuthorizationtoMakeLoans 476.6UseofProceeds 486.7ProRataTreatment 486.8SharingofPayments,Etc. 486.9SettlementProcedures 49

SECTION7. COLLATERALREPORTINGANDCOLLATERALCOVENANTS 50

7.1CollateralReporting 507.2AccountsCovenants 51

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7.3InventoryCovenants 527.4PowerofAttorney 537.5RighttoCure 547.6AccesstoPremises 54

SECTION8. REPRESENTATIONSANDWARRANTIES 55

8.1CorporateExistence;PowerandAuthority 558.2Name;StateofOrganization;ChiefExecutiveOffice;CollateralLocations 558.3FinancialStatements;NoMaterialAdverseChange 568.4PriorityofLiens;TitletoProperties 568.5TaxReturns 568.6Litigation 578.7CompliancewithOtherAgreementsandApplicableLaws 578.8EnvironmentalCompliance 588.9[intentionallydeleted] 588.10EmployeeBenefits 588.11BankAccounts 598.12RegulationU 598.13InvestmentCompanyAct 598.14OFAC 598.15AccuracyandCompletenessofInformation 608.16SurvivalofWarranties;Cumulative 608.17ExemptionfromIllinoisInterestAct 608.18UnrestrictedSubsidiaries 60

SECTION9. AFFIRMATIVEANDNEGATIVECOVENANTS 61

9.1MaintenanceofExistence 619.2NewCollateralLocations 619.3CompliancewithLaws,Regulations,Etc. 619.4PaymentofTaxesandClaims 629.5Insurance 639.6FinancialStatementsandOtherInformation 639.7SaleofAssets,Consolidation,Merger,Dissolution,Etc. 659.8Encumbrances 679.9Indebtedness 699.10Loans,Investments,Etc. 729.11DividendsandRedemptions 739.12TransactionswithAffiliates 769.13CreditCardAgreements 769.14MinimumExcessAvailability 769.15CompliancewithERISA 769.16CostsandExpenses 779.17FurtherAssurances 779.18UnrestrictedSubsidiaries 78

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SECTION10. EVENTSOFDEFAULTANDREMEDIES 78

10.1EventsofDefault 7810.2Remedies 80

SECTION11. JURYTRIALWAIVER;OTHERWAIVERSANDCONSENTS;GOVERNINGLAW 83

11.1GoverningLaw;ChoiceofForum;ServiceofProcess;JuryTrialWaiver 8311.2WaiverofNotices 8411.3AmendmentsandWaivers 8411.4WaiverofCounterclaims 8511.5Indemnification 86

SECTION12. THEAGENTS 86

12.1Appointment,PowersandImmunities 8612.2ReliancebyAgents 8712.3EventsofDefault 8712.4WellsFargoinitsIndividualCapacity 8712.5Indemnification 8812.6Non-RelianceonAgentsandOtherLenders 8812.7FailuretoAct 8912.8AdditionalLoans 8912.9ConcerningtheCollateralandtheRelatedFinancingAgreements 9012.10FieldAudit,ExaminationReportsandotherInformation;DisclaimerbyLenders 9012.11CollateralMatters 9012.12AgencyforPerfection 9212.13SuccessorAgent 9312.14HedgingAgreements;BankProducts;CashManagementServices 9312.15DefaultingLender 9412.16OtherAgents;ArrangersandManagers 95

SECTION13. TERMOFAGREEMENT;MISCELLANEOUS 95

13.1Term 9513.2InterpretativeProvisions 9613.3Notices 9713.4PartialInvalidity 9913.5Successors 9913.6Assignments;Participations 9913.7Confidentiality 10313.8EntireAgreement 10313.9Counterparts,Etc. 10413.10NoAdvisoryorFiduciaryResponsibility 10413.11CustomerIdentification-USAPatriotActNotice 105

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13.12ForeignAssetControlRegulations 10513.13WaiverofConsequentialDamages,Etc. 10513.14PressReleases 10513.15AmendmentandRestatement 106

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INDEX TOEXHIBITS AND SCHEDULES

ExhibitA AssignmentandAcceptance

ExhibitB InformationCertificate

ExhibitC FormofSwapAcknowledgmentAgreement

ExhibitD NoticeofConversion/Continuation

ExhibitE ClosingChecklist

ExhibitF NoticeofBorrowing

ExhibitG Reserved

ExhibitH Reserved

ExhibitI FormofBorrowingBaseCertificate

ExhibitJ InvestmentPolicy

ExhibitK FormofCreditCardNotification

ScheduleI LoanCommitments

ScheduleII CashManagementServicesandBankProducts

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AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

ThisAmendedandRestatedLoanandSecurityAgreement(asamended,restatedorotherwisemodifiedfromtimetotime,the“Agreement”)datedasofOctober19,2011isenteredintobyandamongULTASALON,COSMETICS&FRAGRANCE,INC.,aDelawarecorporation(“Borrower”),thefinancialinstitutionsfromtimetotimepartiesheretoaslenders(“Lenders”),WELLSFARGOBANK,NATIONALASSOCIATION, initscapacitiesasadministrativeagentforLenders(“AdministrativeAgent”),ascollateralagentforLenders(“CollateralAgent,”)andinitsindividualcapacity,(“WellsFargo”),WELLSFARGOBANKNATIONALASSOCIATION,asLCIssuer(“LCIssuer”)andJPMORGANCHASEBANK,N.A.,initscapacityasSyndicationAgent(“SyndicationAgent”);andPNCBANK,NATIONALASSOCIATION,initscapacityasdocumentationagentforLenders(“DocumentationAgent”)andinitsindividualcapacity(“PNC”).

W I T N E S S E T H:

WHEREAS,Borrower,WachoviaCapitalFinanceCorporation,(f/k/aCongressFinancialCorporation(Central)andindividually,“Wachovia”),asagent,andeachofWachoviaandBankofAmerica,N.A.(assuccessortoLaSalleNationalBank,NationalAssociation)(“BankofAmerica”),individuallyareeachpartytothatcertainLoanandSecurityAgreementdatedasofMay29,1997(the“1997LoanAgreement”)whichwasamendedandrestatedbythatcertainAmendedandRestatedLoanandSecurityAgreementdatedasofDecember20,2001(asamendedorotherwisemodifiedpriortoMay31,2005,the“2001LoanAgreement”),andwhichwasfurtheramendedbytheSecondAmendedandRestatedLoanandSecurityAgreementdatedasofMay31,2005(asamendedorotherwisemodifiedpriortoJune29,2007,the“2005LoanAgreement”andwhichwasfurtheramendedbythatcertainThirdAmendedandRestatedLoanandSecurityAgreementdatedasofJune29,2007(asamendedorotherwisemodifiedpriortoAugust31,2010,the“2007LoanAgreement”and,collectivelywiththe1997LoanAgreement,the2001LoanAgreementandthe2005LoanAgreement,the“PriorLoanAgreements”),pursuanttowhich,amongotherthings,thelendersthereundermadeavailabletoBorrowervarioussecuredfinancings;

WHEREAS,thepartiesheretoenteredintothatcertainLoanandSecurityAgreementdatedasofAugust31,2010(asamendedpriortothedatehereof,the“ExistingLoanAgreement”),pursuanttowhichBorrowerterminatedthePriorLoanAgreementsandsubjecttothetermsandconditionssetforththerein,replacedthefinancingunderthe2007LoanAgreementwithanewcreditfacilityasevidencedthereby;and

WHEREAS,theBorrowerhasrequested,andtheAdministrativeAgentandLendershaveagreedtoamendandrestatetheExistingLoanAgreementpursuanttothetermsandconditionssetforthinthisAgreement;

NOW,THEREFORE,inconsiderationofthemutualconditionsandagreementssetforthherein,andforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thepartiesheretoagreeasfollows:

SECTION 1. DEFINITIONS

ForpurposesofthisAgreement,thefollowingtermsshallhavetherespectivemeaningsgiventothembelow:

1.1“Accounts”shallmeanallpresentandfuturerightsofBorrowertopaymentofamonetaryobligation,whetherornotearnedbyperformance,whichisnotevidencedbychattelpaperoraninstrument,(a)forpropertythathasbeenoristobesold,leased,licensed,assigned,orotherwisedisposedof,(b)forservicesrenderedortoberendered,(c)forasecondaryobligationincurredortobeincurred,or(d)arisingoutoftheuseofacreditorchargecardorinformationcontainedonorforusewiththecard.

1.2“Acquisition”means,withrespecttoanyPerson(a)apurchaseofaControllinginterestintheCapitalStockofanyotherPerson,(b)apurchaseorotheracquisitionofallorsubstantiallyalloftheassetsorpropertiesof,anotherPersonorofanybusinessunitofanotherPerson,or(c)anymergerorconsolidationofsuchPersonwithanyotherPersonorothertransactionorseriesoftransactionsresultingintheacquisitionofallorsubstantiallyalloftheassets,oraControllinginterestintheCapitalStock,ofanyotherPerson,ineachcaseinanytransactionorgroupoftransactionswhicharepartofacommonplan.

1.3“AdditionalCredit”means$50,000,000.

1.4“AdditionalCreditAssumptionAgreement”meansanAdditionalCreditAssumptionAgreement,informandsubstancesatisfactorytotheAdministrativeAgent,amongtheBorrower,theAdministrativeAgentandoneormoreLendersprovidingadditionalCommitmentspursuanttoSection2.1(d).

1.5“AdjustedLIBORate”means:

(a)foranyInterestPeriodwithrespecttoanyLIBORateLoan,aninterestrateperannum(roundedupwards,ifnecessary,tothenext1/100ofonepercent)equalto(i)theLIBORateforsuchInterestPeriodmultipliedby(ii)theStatutoryReserveRate;and

(b)foranyinterestratecalculationwithrespecttoanyPrimeRateLoan,aninterestrateperannum(roundedupwards,ifnecessary,tothenext1/100ofonepercent)equalto(i)theLIBORateforanInterestPeriodcommencingonthedateofsuchcalculationandendingonthedatethatisthirty(30)daysthereaftermultipliedby(ii)theStatutoryReserveRate.

TheAdjustedLIBORatewillbeadjustedautomaticallyasoftheeffectivedateofanychangeintheStatutoryReserveRate.

1.6“Affiliate”shallmean,withrespecttoaspecifiedPerson,anyotherPersonwhichdirectlyorindirectly,throughoneormoreintermediaries,controlsoriscontrolledbyorisundercommoncontrolwithsuchPerson,andwithoutlimitingthegeneralityoftheforegoing,includes(a)anyPersonwhichbeneficiallyownsorholdsten(10%)percentormoreofanyclassofVotingStockofsuchPersonorotherequityinterestsinsuchPerson,(b)anyPersonofwhichsuchPersonbeneficiallyownsorholdsten(10%)percentormoreofanyclassofVotingStockorinwhichsuchPersonbeneficiallyownsorholdsten(10%)percentormoreoftheequity

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interestsand(c)anydirectororexecutiveofficerofsuchPerson.Forthepurposesofthisdefinition,theterm“control”(includingwithcorrelativemeanings,theterms“controlledby”and“undercommoncontrolwith”),asusedwithrespecttoanyPerson,meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementandpoliciesofsuchPerson,whetherthroughtheownershipofVotingStock,byagreementorotherwise.

1.7“Agents”shallmeaneachofAdministrativeAgentandCollateralAgent,oreachsuchentityasthecontextsoprovidesandanysuccessoragentshereunder.

1.8“ArmoredCarCompanies”shallmean,collectively,thearmoredcarservicescompaniessetforthonSchedule6.3oftheInformationCertificateoranyotherarmoredcarserviceselectedbyBorrowerafterthedatehereofwhichisreasonablyacceptabletoAdministrativeAgent.

1.9“AssignmentandAcceptance”shallmeananAssignmentandAcceptancesubstantiallyintheformofExhibitAattachedhereto(withblanksappropriatelycompleted)deliveredtotheAdministrativeAgentinconnectionwithanassignmentdescribedunderSection13.6hereoftotheextentsuchassignmentisnototherwiseprohibitedasbetweenoramongtheLenders.

1.10“AvailabilityReserves”shallhavethemeaningsetforthinSection2.3hereof.

1.11“BankProducts”meansanyservicesorfacilitiesprovidedtotheBorroweroranyObligorbyaLenderoranyofitsAffiliates(butexcludingCashManagementServices)onaccountof(a)HedgingAgreements,(b)purchasecards,(c)merchantservicesconstitutingalineofcredit(d)factoring,(e)commercialcreditcards,and(f)leasing.

1.12“BankProductReserves”means,ifandonlytotheextentdisclosedtotheAdministrativeAgentinwriting,suchreservesastheLender(oritsAffiliate)providingaBankProductandtheBorroweragreeinwritingfromtimetotimetoreflecttheliabilitiesandobligationsoftheBorroweroranyObligorwithrespecttosuchBankProductsthenprovidedoroutstanding.

1.13“BlockedAccounts”shallhavethemeaningsetforthinSection6.3hereof.

1.14“BusinessDay”shallmeananydayotherthanaSaturday,Sunday,orotherdayonwhichcommercialbanksareauthorizedorrequiredtocloseunderthelawsoftheStateofNewYork,IllinoisortheStateofNorthCarolina,andadayonwhichAdministrativeAgentisopenforthetransactionofbusiness,exceptthatifadeterminationofaBusinessDayshallrelatetoanyLIBORateLoans,thetermBusinessDayshallalsoexcludeanydayonwhichbanksareclosedfordealingsindollardepositsintheLondoninterbankmarketorotherapplicableLIBORatemarket.

1.15“CapitalStock”shallmean,withrespecttoanyPerson,anyandallshares,interests,participationsorotherequivalents(howeverdesignated)ofsuchPerson’scapitalstockorpartnership,limitedliabilitycompanyorotherequityinterestsatanytimeoutstanding,and

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anyandallrights,warrantsoroptionsexchangeablefororconvertibleintosuchcapitalstockorotherinterests(butexcludinganydebtsecuritythatisexchangeablefororconvertibleintosuchcapitalstock).

1.16“CashEquivalents”shallmean,atanytime,investmentsconsistentwiththeBorrower’sinvestmentpolicyattachedheretoasExhibitJ,assuchExhibitmaybemodifiedfromtimetotimewiththepriorwrittenconsentoftheAdministrativeAgent(nottobeunreasonablywithheld),totheextentsuchinvestmentpolicyismodifiedbytheBorrower’sboardofdirectors.

1.17“CashManagementReserves”means,ifandonlytotheextentdisclosedtotheAdministrativeAgentinwriting,suchreservesastheLender(oritsAffiliate)providingCashManagementServicesandtheBorroweragreeinwritingfromtimetotimetoreflecttheliabilitiesandobligationsoftheBorroweroranyObligorwithrespecttosuchCashManagementServicesthenprovidedoroutstanding.

1.18“CashManagementServices”meansanyoneormoreofthefollowingtypesorservicesorfacilitiesprovidedtotheBorroweroranyObligorbyaLenderoranyofitsAffiliates:(a)ACHtransactions,(b)cashmanagementservices,including,withoutlimitation,controlleddisbursementservices,treasury,depository,overdraft,andelectronicfundstransferservices,(c)foreignexchangefacilities,(d)creditordebitcards,(e)creditcardprocessingservices,(f)purchasecardsand(g)merchantservicesnotconstitutingaBankProduct.

1.19“ChangeinLaw”shallmeantheoccurrence,afterthedateofthisAgreement,ofanyofthefollowing:(a)theadoptionortakingeffectofanylaw,(b)anychangeinanylaw,orintheadministration,interpretation,implementationorapplicationthereof,byanyGovernmentalAuthorityor(c)themakingorissuanceofanyrequest,rule,guidelineordirective(whetherornothavingtheforceoflaw)byanyGovernmentalAuthority;providedthatnotwithstandinganythinghereintothecontrary,(x)theDodd-FrankWallStreetReformandConsumerProtectionActandallrequests,rules,regulations,guidelines,interpretationsordirectivesthereunderorissuedinconnectiontherewith(whetherornothavingtheforceoflaw)and(y)allrequests,rules,regulations,guidelines,interpretationsordirectivespromulgatedbytheBankforInternationalSettlements,theBaselCommitteeonBankingSupervision(oranysuccessororsimilarauthority)ortheUnitedStatesorforeignregulatoryauthorities(whetherornothavingtheforceoflaw),ineachcasepursuanttoBaselIII,shallineachcasebedeemedtobeaChangeinLawregardlessofthedateenacted,adopted,issued,promulgatedorimplemented.

1.20“ChangeofControl”shallbedeemedtohaveoccurredifaneventorseriesofevents(whetherastockpurchase,amalgamation,merger,consolidationorotherbusinesscombinationorotherwise)shallhaveoccurredbywhich(a)anyPersonorGroup(assuchtermisusedinSections14(d)(2)and13(d)(3),respectively,oftheSecuritiesExchangeAct)otherthananyofthePermittedHoldersisorbecomesthe“beneficialowner”(asdefinedinRule13d-3undertheSecuritiesExchangeAct)directlyorindirectlyofthirty-fivepercent(35%)ormoreofthecombinedvotingpowerofthethenoutstandingsecuritiesofHoldingsordinarily(andapartfromrightsaccruingundercertaincircumstances)havingtherighttovoteinelectionofdirectorsor(b)Holdingsshallnolongerdirectlyorindirectlybethebeneficialownerof100%oftheCapitalStockofeachofBorrowerandUltaInc.(subjecttoSection9.7(a)herein).

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1.21“ClosingDate”shallmeanOctober19,2011.

1.22“Code”shallmeantheInternalRevenueCodeof1986,asthesamenowexistsormayfromtimetotimehereafterbeamended,modified,recodifiedorsupplemented,togetherwithallrules,regulationsandinterpretationsthereunderorrelatedthereto.

1.23“Collateral”shallhavethemeaningsetforthinSection5hereof.

1.24“CollateralAccessAgreement”shallmeananagreementinwriting,informandsubstancesatisfactorytoAgents,fromanylessorofpremisestoBorrower,oranyotherpersontowhomanyCollateral(includingInventory,Equipment,billsofladingorotherdocumentsoftitle)isconsignedorwhohascustody,controlorpossessionofanysuchCollateralorisotherwisetheowneroroperatorofanypremisesonwhichanyofsuchCollateralislocated,pursuanttowhichsuchlessor,consigneeorotherperson,interalia,acknowledgesthefirstprioritysecurityinterestofCollateralAgentinsuchCollateral,agreestowaiveanyandallclaimssuchlessor,consigneeorotherpersonmay,atanytime,haveagainstsuchCollateral,whetherforprocessing,storageorotherwise,andagreestopermitCollateralAgentaccessto,andtherighttoremainon,thepremisesofsuchlessor,consigneeorotherpersonsoastoexerciseCollateralAgent’srightsandremediesandotherwisedealwithsuchCollateraland,inthecaseofanyconsigneeorotherpersonwhoatanytimehascustody,controlorpossessionofanyCollateral,acknowledgesthatitholdsandwillholdpossessionoftheCollateralforthebenefitofCollateralAgentandagreestofollowallinstructionsofCollateralAgentwithrespectthereto.

1.25“Commitments”shallmean,astoanyLender,theaggregatecommitmentofsuchLendertomakeLoansortoincurLetterofCreditAccommodationsinthemaximumprincipalamountssetforthonScheduleIheretonexttosuchLender’sname,orontheAssignmentandAcceptanceAgreementpursuanttowhichsuchLenderbecameaLenderhereunderinaccordancewiththeprovisionsofSection13.6hereof,orontheAdditionalCreditAssumptionAgreementpursuanttowhichsuchLenderbecameaLenderhereunderinaccordancewiththeprovisionsofSection2.1(d)hereof,assuchamountmaybeadjusted,ifatall,inaccordancewiththisAgreement.

1.26“Control”meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementorpoliciesofaPerson,whetherthroughtheabilitytoexercisevotingpower,bycontractorotherwise.“Controlling”and“Controlled”havemeaningscorrelativethereto.

1.27“ControlEvent”shallmeananyofthefollowing:(a)anEventofDefaulthasoccurredandiscontinuing;or(b)ExcessAvailabilityislessthanfortypercent(40%)ofthelesserof(i)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereofor(ii)theMaximumCreditforten(10)consecutiveBusinessDays;or(c)ExcessAvailabilityatanytimeislessthanthirtypercent(30%)ofthelesserof(i)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereofor(ii)theMaximumCredit.

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1.28“Cost”shallmean,astotheInventoryasofanydate,thecostofsuchInventoryasofsuchdate,determinedprincipallyontheaveragecostbasisinaccordancewithGAAP.

1.29“CreditCardAgreements”shallmeanallagreementsnoworhereafterenteredintobyBorroweranyCreditCardIssueroranyCreditCardProcessor,asthesamenowexistormayhereafterbeamended,modified,supplemented,extended,renewed,restatedorreplaced,including,butnotlimitedto,theagreementslistedandschedulesoftermslistedonSchedule8.9totheInformationCertificate.

1.30“CreditCardIssuer”shallmeananyperson(otherthanBorrower)whoissuesorwhosemembersissuecreditcards,including,withoutlimitation,MasterCardorVISAbankcreditordebitcardsorotherbankcreditordebitcardsissuedthroughMasterCardInternational,Inc.,Visa,U.S.A.,Inc.orVisaInternationalandAmericanExpress,Discover,DinersClub,CarteBlancheandothernon-bankcreditordebitcards,including,withoutlimitation,creditcardsissuedbyorthroughAmericanExpressTravelRelatedServicesCompany,Inc.andNovusServices,Inc.

1.31“CreditCardNotifications”shallmean,individuallyandcollectively,notificationsintheformofExhibitKfurnishedtoCreditCardProcessorsnotifyingsuchCreditCardProcessorsoftheCollateralAgent’sfirstprioritysecurityinterestinthemoniesdueortobecomesduetotheBorrower(including,withoutlimitation,creditsandreserves)undertheCreditCardAgreementsandfurnishinginstructionsforthetransferofsuchmoniestoaBlockedAccount.

1.32“CreditCardProcessor”shallmeananyservicingorprocessingagentoranyfactororfinancialintermediarywhofacilitates,services,processesormanagesthecreditauthorization,billingtransferand/orpaymentprocedureswithrespecttoanyofBorrower’ssalestransactionsinvolvingcreditcardordebitcardpurchasesbycustomersusingcreditcardsordebitcardsissuedbyanyCreditCardIssuer(including,butnotlimitedto,FirstDataMerchantServicesCorporation).

1.33“CreditFacilities”shallmeantheLoansandLetterofCreditAccommodationsprovidedtoorforthebenefitofBorrowerpursuanttoSections2.1and2.2.

1.34“Default”shallmeananact,conditionoreventwhichwithnoticeorpassageoftimeorbothwouldconstituteanEventofDefault.

1.35“DefaultingLender”shallhavethemeaningsetforthinSection12.15hereof.

1.36“DepositAccountControlAgreement”shallmeananagreementinwriting,informandsubstancesatisfactorytoAgents,byandamongAgents,BorrowerandanybankatwhichanydepositaccountofBorrowerisatanytimemaintainedwhichprovidesthatsuchbankwillcomplywithinstructionsoriginatedbytheAgentsdirectingdispositionofthefundsinthe

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depositaccountwithoutfurtherconsentbyBorrowerandsuchothertermsandconditionsasAgentsmayrequire,includingastoanysuchagreementwithrespecttoanyBlockedAccount,providingthatallitemsreceivedordepositedintheBlockedAccountsarethepropertyofCollateralAgent,thatthebankhasnolienupon,orrighttosetoffagainst,theBlockedAccounts,theitemsreceivedfordeposittherein,orthefundsfromtimetotimeondepositthereinandthatthebankwillwire,orotherwisetransfer,inimmediatelyavailablefunds,onadailybasistothePaymentAccountallfundsreceivedordepositedintotheBlockedAccounts.

1.37“DeterioratingLender”meansanyDefaultingLenderoranyLenderastowhich(a)theLCIssuerortheSwingLineLenderhasagoodfaithbeliefthatsuchLenderhasdefaultedinfulfillingitsobligationsunderoneormoreothersyndicatedcreditfacilities,or(b)aPersonthatcontrolssuchLenderhasbeendeemedinsolventorbecomethesubjectofabankruptcy,insolvencyorsimilarproceeding.

1.38“EligibleInventory”shallmeanInventoryconsistingoffinishedgoodsheldforresaleintheordinarycourseofthebusinessofBorrowerthatareacceptabletoAgentsbasedonthecriteriasetforthbelow.Ingeneral,EligibleInventoryshallnotinclude(a)packagingandshippingmaterials;(b)suppliesusedorconsumedinBorrower’sbusiness;(c)Inventoryatpremisesotherthanthoseowned,controlledorleasedbyBorrower,providedthatforInventoryatanynewlocationswhichtheBorrowerleasesafterthedatehereof(i)consistingofdistributioncentersorwarehousesor(ii)inVirginia,Pennsylvania,Washingtonandsuchotherstatesinwhichalandlord’sclaimforrentmayhavepriorityovertheLienoftheCollateralAgentinanyoftheCollateral(A)AgentsshallhavereceivedaLandlordAgreementdulyauthorized,executedanddeliveredbytheownerandlessorofsuchpremisesor(B)ifAgentshavenotreceivedsuchLandlordAgreement,thenAgentsshallhaveestablishedanAvailabilityReserveinrespectofamountsdueortobecomeduetotheownerandlessorofsuchretailstorelocation(withoutlimitinganyotherrightsandremediesofAgentsunderthisAgreementorundertheotherFinancingAgreementswithrespecttotheestablishmentofAvailabilityReservesorotherwise)andaftergivingeffecttosuchAvailabilityReserves,thereisExcessAvailability;provided,that,(1)BorrowershalluseitsbesteffortstoobtaintheLandlordAgreementwithrespecttoeachsuchnewlocation,and(2)theAvailabilityReservesestablishedpursuanttothisSectionshallnotexceedatanytime(x)one(1.0)timesthebasicmonthlyrentpayabletosuchownersandlessorsofsuchleasedlocationsplus(y)amounts,ifany,thenoutstandingandunpaidowedbyBorrowertosuchownersandlessors,provided,that,suchlimitationontheamountoftheAvailabilityReservespursuanttothisSectionshallonlyapplysolongas:(aa)noDefaultorEventofDefaultshallexistorhaveoccurred,(bb)BorrowerorAgentsshallnothavereceivednoticeofanydefaultoreventofdefaultundertheleasewithrespecttosuchretailstorelocationand(cc)Agentsshallhavereceivedevidence,informandsubstancesatisfactorytotheAgents,thatBorrowerhasnotgrantedtotheownerandlessorasecurityinterestinorlienuponanyassetsofBorrower;and(3)forclarity,theBorrowershallnotbeobligatedtoobtainanysuchLandlordAgreementsfordistributioncenters,warehousesorstorelocationsexistingonthedatehereof,(d)InventorysubjecttoasecurityinterestorlieninfavorofanypersonotherthanCollateralAgentexceptthosepermittedinthisAgreement;(e)billandholdgoods;(f)unserviceable,obsoleteorslowmovingInventory;(g)Inventorywhichisnotsubjecttothefirstpriority,validandperfectedsecurityinterestofCollateralAgent.(h)damagedand/ordefectiveInventory(i)returnedInventorythatisnotheldforresale;(j)Inventorytobereturnedtovendors;(k)InventorysubjecttodepositsmadebycustomersforsalesofInventorythathasnotbeendelivered;(1)Inventory

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heldaftertheapplicableexpirationdatethereof;(m)samples(excepttotheextentapprovedfromtimetotimebyAgents)and(n)Inventorypurchasedorsoldonconsignment.GeneralcriteriaforEligibleInventorymaybeestablishedandrevisedfromtimetotimebyAgentsingoodfaithbasedonanevent,conditionorothercircumstancearisingafterthedatehereof,orexistingonthedatehereoftotheextentneitherAgenthasanynoticethereofinwritingfromeitherBorroweroranyinventoryappraiser,whichadverselyaffectsorcouldreasonablybeexpectedtoadverselyaffecttheInventoryinanymaterialrespectinthegoodfaithdeterminationofAgents.AnyInventorywhichisnotEligibleInventoryshallneverthelessbepartoftheCollateral.TotheextentanySubsidiaryoftheBorrowerorofHoldingsisanObligororbecomesanObligorpursuanttoSection9.7(c),thenreferencesto“Borrower”setforthinthisdefinition(andanycomponentdefinitionusedinthisdefinition)shallbedeemedtoalsoincludereferencestosuchObligorforpurposesofincludingtheInventoryofsuchObligorasEligibleInventorysubjecttotheforegoingcriteria.

1.39“EligibleLetterofCreditInventory”means,asofanydateofdetermination(withoutduplicationofotherEligibleInventory),Inventory:

(a)whichhasbeendeliveredtoacarrierinaforeignportorforeignairportforreceiptbytheBorrowerintheUnitedStateswithinsixty(60)daysofthedateofdetermination,butwhichhasnotyetbeenreceivedbytheBorrower;

(b)thepurchaseorderforwhichisinthenameoftheBorrower,titlehaspassedtotheBorrowerandthepurchaseofwhichissupportedbyaLetterofCreditAccommodationmadeunderthisAgreementhavinganinitialexpiry,subjecttotheprovisohereto,within120daysafterthedateofinitialissuanceofsuchLetterofCreditAccommodation;

(c)exceptasotherwiseagreedbytheAgents,forwhichtheBorrowerisdesignatedas“shipper”and/orconsignorandthedocumentoftitleorwaybillreflectstheBorrowerasconsignee(alongwithdeliverytotheBorroweroritscustomsbrokerofthedocumentsoftitle,totheextentapplicable,withrespectthereto);

(d)astowhichanAgenthascontroloverthedocumentsoftitle,totheextentapplicable,whichevidenceownershipofthesubjectInventory;

(e)whichisinsuredinaccordancewiththeprovisionsofthisAgreementandtheotherFinancingAgreements,including,withoutlimitationmarinecargoinsurance;

(f)exceptasotherwiseagreedbytheAgents,astowhichanagreementwithanyPersonprovidingfreight,warehousingandconsolidationservicestotheBorrowerhasbeenexecutedanddeliveredinfavoroftheAgents,and

(g)whichotherwiseisnotexcludedfromthedefinitionofEligibleInventory;

providedthattheAdministrativeAgentmay,uponnoticetotheBorrower,excludeanyparticularInventoryfromthedefinitionof“EligibleLetterofCreditInventory”intheeventthattheAdministrativeAgentdeterminesthatsuchInventoryissubjecttoanyPerson’srightorclaimwhichis(oriscapableofbeing)seniorto,orparipassuwith,theLienoftheCollateralAgent(suchas,withoutlimitation,arightofstoppageintransit),asapplicable,ormayotherwiseadverselyimpacttheabilityoftheAdministrativeAgentortheCollateralAgenttorealizeuponsuchInventory.

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1.40“EligibleTransferee”shallmean(a)anyLender;(b)anyAffiliateofaLenderand(c)anyothercommercialbank,financialinstitutionor“accreditedinvestor”(asdefinedinRegulationDundertheSecuritiesActof1933)approvedbyAdministrativeAgent;provided,that,neithertheBorrowernoranyofitsAffiliatesshallqualifyasanEligibleTransferee.

1.41“EnvironmentalLaws”shallmeanallforeign,Federal,Stateandlocallaws(includingcommonlaw),legislation,rules,codes,licenses,permits(includinganyconditionsimposedtherein),authorizations,judicialoradministrativedecisions,injunctionsoragreementsbetweenBorrowerandanyGovernmentalAuthority,(a)relatingtopollutionandtheprotection,preservationorrestorationoftheenvironment(includingair,watervapor,surfacewater,groundwater,drinkingwater,drinkingwatersupply,surfaceland,subsurfaceland,plantandanimallifeoranyothernaturalresource),ortohumanhealthorsafety,(b)relatingtotheexposureto,ortheuse,storage,recycling,treatment,generation,manufacture,processing,distribution,transportation,handling,labeling,production,releaseordisposal,orthreatenedrelease,ofHazardousMaterials,or(c)relatingtoalllawswithregardtorecordkeeping,notification,disclosureandreportingrequirementsrespectingHazardousMaterials.Theterm“EnvironmentalLaws”includes(i)theFederalComprehensiveEnvironmentalResponse,CompensationandLiabilityActof1980,theFederalSuperfundAmendmentsandReauthorizationAct,theFederalWaterPollutionControlActof1972,theFederalCleanWaterAct,theFederalCleanAirAct,theFederalResourceConservationandRecoveryActof1976(includingtheHazardousandSolidWasteAmendmentsthereto),theFederalSolidWasteDisposalandtheFederalToxicSubstancesControlAct,theFederalInsecticide,FungicideandRodenticideAct,andtheFederalSafeDrinkingWaterActof1974,(ii)applicablestatecounterpartstosuchlaws,and(iii)anycommonlaworequitabledoctrinethatmayimposeliabilityorobligationsforinjuriesordamagesdueto,orthreatenedasaresultof,thepresenceoforexposuretoanyHazardousMaterials.

1.42“Equipment”shallmeanallofBorrower’snowownedandhereafteracquiredequipmentandfixtures,whereverlocated,includingmachinery,dataprocessingandcomputerequipmentandcomputerhardwareandsoftware,whetherownedorlicensed,andincludingembeddedsoftware,vehicles,tools,furniture,allattachments,accessionsandpropertynoworhereafteraffixedtheretoorusedinconnectiontherewith,andsubstitutionsandreplacementsthereof,whereverlocated.

1.43“ERISA”shallmeantheUnitedStatesEmployeeRetirementIncomeSecurityActof1974,togetherwithallrules,regulationsandinterpretationsthereunderorrelatedthereto.

1.44“ERISAAffiliate”shallmeananypersonrequiredtobeaggregatedwithBorroweroranyofitsSubsidiariesunderSections414(b),414(c),414(m)or414(o)oftheCode.

1.45“EventofDefault”shallmeantheoccurrenceorexistenceofanyeventorconditiondescribedinSection10.1hereof.

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1.46“ExcessAvailability”shallmeantheamount,asdeterminedbyAgents,calculatedatanytime,equalto:(a)thelesserof(i)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(ii)theMaximumCredit,minus(b)thesumof:(i)theamountofallthenoutstandingandunpaidprincipalamountoftheLoansandoutstandingLetterofCreditAccommodations,plus(ii)attheoptionofeitherAgent,theaggregateamountofalltradepayablesofBorrowerwhicharemorethansixty(60)dayspastdueasofsuchtime(andforwhichchecksincludedinclause(iii)belowhavenotbeenissued)plus(iii)theamountofchecksissuedbyBorrowertopaytradepayables,butnotyetsentandthebookoverdraftofBorrower.

1.47“FederalFundsRate”means,foranyday,therateperannumequaltotheweightedaverageoftheratesonovernightFederalfundstransactionswithmembersoftheFederalReserveSystemarrangedbyFederalfundsbrokersonsuchday,aspublishedbytheFederalReserveBankofNewYorkontheBusinessDaynextsucceedingsuchday;providedthat(a)ifsuchdayisnotaBusinessDay,theFederalFundsRateforsuchdayshallbesuchrateonsuchtransactionsonthenextprecedingBusinessDayassopublishedonthenextsucceedingBusinessDay,and(b)ifnosuchrateissopublishedonsuchnextsucceedingBusinessDay,theFederalFundsRateforsuchdayshallbetheaveragerate(roundedupward,ifnecessary,toawholemultipleof1/100of1%)chargedtoWellsFargoonsuchdayonsuchtransactionsasdeterminedbytheAdministrativeAgent.TheAdministrativeAgent’sdeterminationofsuchrateshallbebindingandconclusiveabsentmanifesterror.

1.48“FeeLetter”shallmeantheletteragreement,datedonoraboutAugust31,2010,byandbetweenBorrowerandAdministrativeAgent,asthesameexistsormayhereafterbeamended,modified,supplemented,extended,renewed,restatedorreplaced.

1.49“FinancingAgreements”shallmean,collectively,thisAgreementandallnotes,guarantees,securityagreementsandotheragreements,documentsandinstrumentsatanytimeexecutedand/ordeliveredbyBorroweroranyObligorinconnectionwiththisAgreement(totheextentnotsupersededorreplacedbyanyotherFinancingAgreement),asthesamenowexistormayhereafterbeamended,modified,supplemented,extended,renewed,restatedorreplaced.

1.50“FourthAmendmentEffectiveDate”shallmeanthedateonwhichalloftheconditionsprecedentsetforthinthatcertainAmendmentNo.4toAmendedandRestatedLoanandSecurityAgreementhavebeensatisfied.

1.51“GAAP”shallmeangenerallyacceptedaccountingprinciplesintheUnitedStatesofAmericaasineffectfromtimetotimeassetforthintheopinionsandpronouncementsoftheAccountingPrinciplesBoardandtheAmericanInstituteofCertifiedPublicAccountantsandthestatementsandpronouncementsoftheFinancialAccountingStandardsBoardwhichareapplicabletothecircumstancesasofthedateofdeterminationconsistentlyapplied,exceptthat,forpurposesofSections9.11and9.14hereof,GAAPshallbedeterminedonthebasisofsuchprinciplesineffectonthedatehereofandconsistentwiththoseusedinthepreparationofthemostrecentauditedfinancialstatementsdeliveredtoAdministrativeAgentpriortothedatehereof.

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1.52“GovernmentalAuthority”shallmeananynationorgovernment,anystate,province,orotherpoliticalsubdivisionthereof,anycentralbank(orsimilarmonetaryorregulatoryauthority)thereof,anyentityexercisingexecutive,legislative,judicial,regulatoryoradministrativefunctionsoforpertainingtogovernment,andanycorporationorotherentityownedorcontrolled,throughstockorcapitalownershiporotherwise,byanyoftheforegoing.

1.53“HazardousMaterials”shallmeananyhazardous,toxicordangeroussubstances,materialsandwastes,includinghydrocarbons(includingnaturallyoccurringorman-madepetroleumandhydrocarbons),flammableexplosives,asbestos,ureaformaldehydeinsulation,radioactivematerials,biologicalsubstances,polychlorinatedbiphenyls,pesticides,herbicidesandanyotherkindand/ortypeofpollutantsorcontaminants(includingmaterialswhichincludehazardousconstituents),sewage,sludge,industrialslag,solventsand/oranyothersimilarsubstances,materials,orwastesandincludinganyothersubstances,materialsorwastesthatareorbecomeregulatedunderanyEnvironmentalLaw(includinganythatareorbecomeclassifiedashazardousortoxicunderanyEnvironmentalLaw).

1.54“HedgingAgreements”shallmeananyandalltransactions,agreementsordocuments,nowexistingorhereafterenteredintowithaLenderoranAffiliateofaLendersubjecttoSection9.9(g)hereofandontermsandconditionsreasonablysatisfactory(inlightofstandardISDAdocumentationpractices)toAdministrativeAgentandBorroweroranyObligor,asapplicable,which(a)providesforaninterestrateswap,cap,floororcollarorsimilartransactionforthepurposeofhedgingBorrower’soranObligor’sexposuretofluctuationsininterestratesinrespectoftheObligations,(b)arenotenteredintoforspeculativepurposes,(c)arewithafinancialinstitutionhavingcombinedcapitalandsurplusandundividedprofitsofnotlessthan$250,000,000,(d)areunsecuredexcepttotheextentanyindebtednessofBorroweroranObligorthereunderconstitutesObligationssecuredherebyortotheextentsecuredbypledgesordepositspermittedunderSection9.8(i)hereofand(e)andforwhichthecounterpartytotheHedgingAgreementandtheBorroweroranyObligor,asapplicable,haveexecutedaSwapAcknowledgementAgreement.

1.55“HedgingBalance”shallmeanwithrespecttoanyHedgingAgreementsasofanydateofdetermination,anamountequalto(a)theaggregateamountowingbythecounterpartiesundertheHedgingAgreementstotheBorrowerless(b)theaggregateamountowingbytheBorrowertosuchcounterpartiesundersuchHedgingAgreementsplus(c)theaggregateamount,ifany,ofallcash,CashEquivalentsandinvestmentsecuritiespledgedordepositedtosecuretheobligationsofBorrowerundersuchHedgingAgreementspursuanttoSection9.8(i)hereof.

1.56“Holdings”meansUltaBeauty,Inc.,aDelawarecorporation.

1.57“InformationCertificate”shallmeantheInformationCertificateofBorrowerconstitutingExhibitBhereto(assupplementedfromtimetotimewithrevisedornewaccountnumbersorotherinformationprovidedtotheAgents)containingmaterialinformationwithrespecttoBorrower,itsbusinessandassetsprovidedbyoronbehalfofBorrowertoAdministrativeAgentinconnectionwiththepreparationofthisAgreementandtheotherFinancingAgreementsandthefinancingarrangementsprovidedforherein.

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1.58“IntellectualProperty”shallmeanBorrower’snowownedandhereafterarisingoracquired:patents,patentrights,patentapplications,copyrights,workswhicharethesubjectmatterofcopyrights,copyrightregistrations,trademarks,tradenames,tradestyles,trademarkandservicemarkapplications,andlicensesandrightstouseanyoftheforegoing;allextensions,renewals,reissues,divisions,continuations,andcontinuations-in-partofanyoftheforegoing;allrightstosueforpast,presentandfutureinfringementofanyoftheforegoing;inventions,tradesecrets,formulae,processes,compounds,drawings,designs,blueprints,surveys,reports,manuals,andoperatingstandards;goodwill(includinganygoodwillassociatedwithanytrademarkorthelicenseofanytrademark);customerandotherlistsinwhateverformmaintained;andtradesecretrights,copyrightrights,rightsinworksofauthorship,domainnamesanddomainnameregistrations;softwareandcontractrightsrelatingtosoftware,inwhateverformcreatedormaintained.

1.59“InterestPeriod”shallmeanforanyLIBORateLoan,aperiodofapproximatelyone(1),two(2),three(3)orsix(6)monthsdurationasBorrowermayelect,theexactdurationtobedeterminedinaccordancewiththecustomarypracticeintheapplicableLIBORatemarket;provided,that,BorrowermaynotelectanInterestPeriodwhichwillendaftertheTerminationDate.

1.60“InterestRate”shallmean,astoPrimeRateLoans,arateequaltothePrimeRateand,astoLIBORateLoans,arateofoneandone-halfpercent(1.50%)perannuminexcessoftheAdjustedLIBORate(basedontheLIBORateapplicablefortheInterestPeriodselectedbyBorrowerasineffecttwo(2)BusinessDaysafterthedateofreceiptbyAdministrativeAgentoftherequestofBorrowerforsuchLIBORateLoansinaccordancewiththetermshereof,whethersuchrateishigherorlowerthananyratepreviouslyquotedtoBorrower);provided,that,notwithstandinganythingtothecontrarycontainedherein,theInterestRateshallmeantherateoftwo(2%)percentperannuminexcessoftheratesotherwiseprovidedinthisdefinition(i)withoutnotice,atanytimeanEventofDefaultexistspursuanttoanyofSections10.1(f),10.1(g)and/or10.1(h)and/or(ii)uponthewrittenrequestofRequiredLenders,andotherwisewithoutnotice,fortheperiodfromandafterthedateoftheoccurrenceofanyEventofDefault,otherthananEventofDefaultdescribedintheimmediatelyprecedingclause(i),andforsolongassuchEventofDefaultiscontinuingasreasonablydeterminedbyAdministrativeAgent.

1.61“Inventory”shallmeanallofBorrower’snowownedandhereafterexistingoracquiredgoods,whereverlocated,which(a)areleasedbyBorroweraslessor;(b)areheldbyBorrowerforsaleorleaseortobefurnishedunderacontractofservice;(c)arefurnishedbyBorrowerunderacontractofservice;or(d)consistofrawmaterials,workinprocess,finishedgoodsormaterialsusedorconsumedinitsbusiness.

1.62“InvestmentPropertyControlAgreement”shallmeananagreementinwriting,informandsubstancesatisfactorytoAgents,byandamongtheAgents,Borrowerandanysecuritiesintermediary,commodityintermediaryorotherpersonwhohascustody,controlorpossessionofanyinvestmentpropertyofBorroweracknowledgingthatsuchsecuritiesintermediary,commodityintermediaryorotherpersonhascustody,controlorpossessionofsuchinvestmentpropertyonbehalfofAgents,thatitwillcomplywithentitlementordersoriginatedbytheAgentswithrespecttosuchinvestmentproperty,orotherinstructionsoftheAgents,or(as

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thecasemaybe)applyanyvaluedistributedonaccountofanycommoditycontractasdirectedbytheAgents,ineachcase,withoutthefurtherconsentofBorrowerandincludingsuchothertermsandconditionsastheAgentsmayrequire.

1.63“JPMControlAgreement”shallmeanthatcertainBlockedAccountControlAgreementdatedasofOctober28,2010enteredintoamongBorrower,JPMorganChaseBank,N.A.andtheAgents,asthesamemaybeamended,supplementedorotherwisemodifiedfromtimetotime.

1.64“LandlordAgreement”shallmeananagreementinwritingfromtheownerandlessorofpremises(including,distributioncenters,warehouses,andretailstorestotheextentrequiredinthedefinitionofEligibleInventory)leasedbyBorrowerafterthedatehereofinformandsubstancereasonablysatisfactorytotheAgents.

1.65“LCApplication”shallmean,withrespecttoanyrequestfortheissuanceofaLetterofCreditAccommodation,aletterofcreditapplicationintheformbeingusedbytheLCIssueratthetimeofsuchrequestforthetypeofletterofcreditbeingrequested.

1.66“LCIssuer”shallmeanWellsFargo,initscapacityastheissuerofLetterofCreditAccommodationsoranyAffiliateofWellsFargothatmayfromtimetotimeissueLetterofCreditAccommodations,andtheirsuccessorsandassignsinsuchcapacity.

1.67“Lenders”shallmeanthefinancialinstitutionswhoaresignatoriesheretoasLendersandotherpersonsmadeapartytothisAgreementasaLenderinaccordancewithSection13.6hereof,andtheirrespectivesuccessorsandassigns(andwithrespecttoBankProductsandCashManagementServices,includestheirrespectiveAffiliates);eachsometimesbeingreferredtohereinindividuallyasa“Lender”.

1.68“LetterofCreditAccommodations”shallmean,collectively,thelettersofcredit,merchandisepurchaseorotherguarantieswhicharefromtimetotimeeither(a)issuedoropenedbyAdministrativeAgent,anyLenderoranyAffiliateofLenderfortheaccountofBorroweroranyObligoror(b)withrespecttowhichAdministrativeAgent,anyLenderoranyAffiliateofLenderhasagreedtoindemnifytheLCIssuerorguaranteedtotheLCIssuertheperformancebyBorrowerofitsobligationstosuchLCIssuer,ineachcaseinaccordancewiththetermsofthisAgreement:sometimesbeingreferredtohereinindividuallyasa“LetterofCreditAccommodation”.

1.69“LIBORate”meansforanyInterestPeriodwithrespecttoaLIBORateLoan,therateperannumequaltotheBritishBankersAssociationLIBORRate(“BBALIBOR”),aspublishedbyReuters(orothercommerciallyavailablesourceprovidingquotationsofBBALIBORasdesignatedbytheAdministrativeAgentfromtimetotime)atapproximately11:00a.m.,Londontime,twoBusinessDayspriortothecommencementofsuchInterestPeriod,forDollardeposits(fordeliveryonthefirstdayofsuchInterestPeriod)withatermequivalenttosuchInterestPeriod.Ifsuchrateisnotavailableatsuchtimeforanyreason,thenthe“LIBORate”forsuchInterestPeriodshallbetherateperannumdeterminedbytheAdministrativeAgenttobetherateatwhichdepositsinDollarsfordeliveryonthefirstdayofsuchInterestPeriodinsamedayfundsintheapproximateamountoftheLIBORateLoanbeingmade,

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continuedorconvertedbyWellsFargoandwithatermequivalenttosuchInterestPeriodwouldbeofferedtoWellsFargobymajorbanksintheLondoninterbankeurodollarmarketinwhichWellsFargoparticipatesattheirrequestatapproximately11:00a.m.(Londontime)twoBusinessDayspriortothecommencementofsuchInterestPeriod.

1.70“LIBORateLoan”meansaRevolvingLoanthatbearsinterestataratebasedontheAdjustedLIBORate.

1.71“Loans”shallmeantheRevolvingLoansandtheSwingLineLoans.

1.72“MaterialAdverseEffect”shallmeanamaterialadverseeffecton(a)thecondition(financialorotherwise),business,performance,operationsorpropertiesofBorrower,(b)thelegality,validityorenforceabilityofthisAgreementoranyoftheotherFinancingAgreements;(c)thelegality,validity,enforceability,perfectionorpriorityofthesecurityinterestorliensofCollateralAgentonamaterialportionoftheCollateraloranyothermaterialpropertywhichissecurityfortheObligations;(d)amaterialportionoftheCollateraloranyothermaterialpropertywhichissecurityfortheObligations,orthevalueofamaterialportionoftheCollateralorsuchothermaterialproperty,or(e)theabilityofBorrowertorepaytheObligationsorofBorroweroranyObligortoperformitsobligationsunderthisAgreementoranyoftheotherFinancingAgreements.

1.73“MarginStock”shallmeanany“marginstock”asdefinedinRegulationUoftheBoardofGovernorsoftheFederalReserveSystem.

1.74“MasterLetterofCreditAgreement”shallmeanaLetterofCreditAgreement(tobeenteredintoupontherequestofWellsFargo)betweenBorrowerandWellsFargo,reasonablyacceptableinformandsubstancetotheBorrowerandWellsFargo,asthesamemaybeamended,supplementedorotherwisemodifiedfromtimetotime.

1.75“MaximumCredit”shallmean,asofanydateofdetermination,theaggregateamountoftheCommitmentsofallLendersonsuchdateofdetermination.

1.76“NetIncome”shallmean,withrespecttoanyPerson,foranyperiod,theaggregateofthenetincome(loss)ofsuchPersonanditsSubsidiaries,onaconsolidatedbasis,forsuchperiod(excludingtotheextentincludedthereinanyextraordinarygains)afterdeductingallchargeswhichshouldbedeductedbeforearrivingatthenetincome(loss)forsuchperiodandafterdeductingtheProvisionforTaxesforsuchperiod,allasdeterminedinaccordancewithGAAP,provided,that,(a)thenetincomeofanyPersonthatisnotawholly-ownedSubsidiaryorthatisaccountedforbytheequitymethodofaccountingshallbeincludedonlytotheextentoftheamountofdividendsordistributionspaidorpayabletoBorrowerorawholly-ownedSubsidiaryofsuchperson;(b)theeffectofanychangeinaccountingprinciplesadoptedbysuchPersonoritssubsidiariesafterthedatehereofshallbeexcluded;and(c)thenetincome(ifpositive)ofanywholly-ownedSubsidiarytotheextentthatthedeclarationorpaymentofdividendsorsimilardistributionsbysuchwholly-ownedSubsidiarytoBorrowerortoanyotherwholly-ownedSubsidiaryofBorrowerisnotatthetimepermittedbyoperationofthetermsofitscharteroranyagreement,instrument,judgment,decree,order,statute,ruleofgovernmentregulationapplicabletosuchwholly-ownedSubsidiaryshallbeexcluded.Forthepurposeofthis

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definition,netincomeexcludesanygain(butnotloss),togetherwithanyrelatedProvisionofTaxesforsuchgain(butnotloss)realizeduponthesaleorotherdispositionofanyassetsthatarenotsoldintheordinarycourseofbusiness(including,withoutlimitation,dispositionspursuanttosaleandleasebacktransactions),orofanyCapitalStockofsuchPersonoraSubsidiaryofsuchPersonandanynetincomerealizedasaresultofchangesinaccountingprinciplesortheapplicationthereoftosuchPerson.

1.77“NetRecoveryCostPercentage”shallmeanthefraction,expressedasapercentage,(a)thenumeratorofwhichistheamountequaltotherecoveryontheaggregateamountoftheInventoryatsuchtimeona“goingoutofbusinesssale”basisassetforthinthemostrecentacceptableappraisalofInventoryreceivedbytheAgentsinaccordancewithSection7.3,netofoperatingexpenses,liquidationexpensesandcommissions,and(b)thedenominatorofwhichistheoriginalCostoftheaggregateamountoftheInventorysubjecttosuchappraisal.

1.78“Obligations”shallmean(a)anyandallLoans,LetterofCreditAccommodationsandallotherobligations,liabilitiesandindebtednessofeverykind,natureanddescription(exceptthosedescribedinclause(b)ofthisdefinition)owingbyBorroweroranyObligortoanyAgentoranyLenderand/ortheirAffiliates,includingprincipal,interest,charges,fees,costsandexpenses,howeverevidenced,whetherasprincipal,surety,endorser,guarantororotherwise,whetherarisingunderthisAgreement,anyotherFinancingAgreementorotherwise,whethernowexistingorhereafterarising,whetherarisingbefore,duringoraftertheinitialoranyrenewaltermofthisAgreementorafterthecommencementofanycasewithrespecttoBorroweroranyObligorundertheUnitedStatesBankruptcyCodeoranysimilarstatute(includingthepaymentofinterestandotheramountswhichwouldaccrueandbecomeduebutforthecommencementofsuchcase,whetherornotsuchamountsareallowedorallowableinwholeorinpartinsuchcase),whetherdirectorindirect,absoluteorcontingent,jointorseveral,dueornotdue,primaryorsecondary,liquidatedorunliquidated,securedorunsecured,andhoweveracquiredbyanyAgentoranyLenderand(b)forpurposesonlyofSection5.1andSection9.9hereofandsubjecttopriorityandrightofpaymentunderSection6.4(a)hereof,anyandallobligations,liabilitiesandindebtednessofanykind,natureanddescriptionowingbyBorroweroranyObligorarisingunderorinconnectionwithCashManagementServices,HedgingAgreementsandotherBankProducts;provided,that,withrespecttoHedgingAgreements,theAgentsshallhaveenteredintoanagreementsubstantiallyintheformofExhibitCheretowiththecounterpartytosuchHedgingAgreement,asacknowledgedandagreedtobyBorroweroranObligor,asapplicable(the“SwapAcknowledgmentAgreement”);providedfurther,that,obligationsarisingunderorinconnectionwithCashManagementServicesorBankProductsotherthanHedgingAgreementsshallonlybeconsidered“Obligations”hereunderifsuchLenderprovidingsuchservicestoBorroweroranObligorhasprovidedwrittennoticeofsametotheAdministrativeAgentwithinten(10)daysofthedatesuchproductbecomeseffective.Thepartiesacknowledgethat,asoftheClosingDate,theCashManagementServicesandBankProductsdescribedonScheduleIIheretoshallconstitute“Obligations”hereunder.

1.79“Obligor”shallmeananyguarantor,endorser,acceptor,suretyorotherpersonliableonorwithrespecttotheObligationsorwhoistheownerofanypropertywhichissecurityfortheObligations,otherthanBorrower.

1.80“OFAC”shallmeantheOfficeofForeignAssetsControl.

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1.81“OtherHedgingAgreements”shallmeananyandalltransactions,agreementsordocumentsnowexistingorhereafterenteredintowithaPersonotherthanaLenderoranAffiliateofaLendersubjecttoSection9.9(g)(B)hereofwhich(a)providesforaninterestrateorforeignexchangeswap,cap,floororcollarorsimilartransactionforthepurposeofhedgingBorrower’soranyObligor’sexposuretofluctuationsininterestratesorcurrency,(b)arenotenteredintoforspeculativepurposes,(c)arewithafinancialinstitutionhavingcombinedcapitalandsurplusandundividedprofitsofnotlessthan$250,000,000,and(d)areunsecured.

1.82“Participant”shallmeananyfinancialinstitutionthatacquiresandholdsaparticipationintheinterestofanyLenderinanyoftheLoansandLetterofCreditAccommodationsinconformitywiththeprovisionofSection13.6ofthisAgreementgoverningparticipationsanditssuccessorsandassigns.

1.83“PaymentAccount”shallhavethemeaningsetforthinSection6.3hereof.

1.84“Permits”shallhavethemeaningsetforthinSection8.7hereto.

1.85“PermittedAcquisition”meansanAcquisitioninwhichallofthefollowingconditionsaresatisfied:

(a)NoDefaultorEventofDefaultthenexistsorwouldarisefromtheconsummationofsuchAcquisition;

(b)SuchAcquisitionshallhavebeenapprovedbytheBoardofDirectorsofthePerson(orsimilargoverningbodyifsuchPersonisnotacorporation)whichisthesubjectofsuchAcquisitionandsuchPersonshallnothaveannouncedthatitwillopposesuchAcquisitionorshallnothavecommencedanyactionwhichallegesthatsuchAcquisitionshallviolateapplicablelaw;and

(c)TheBorrowershallhavefurnishedtheAdministrativeAgentwithatleastten(10)days’priorwrittennoticeofsuchintendedAcquisitionandshallhavefurnishedtheAdministrativeAgentwith(i)noticeoftheanticipatedclosingdateforsuchAcquisition,togetherwithacurrentdraftoftheacquisitiondocuments(andfinalcopiesthereofasandwhenexecuted,whichdocumentsshallbemadeavailablebytheAdministrativeAgenttotheLenders),(ii)asummaryofanyduediligenceundertakenbyoronbehalfoftheBorrowerinconnectionwithsuchAcquisition(subjecttotheAdministrativeAgent’sexecutionofcustomarynon-relianceandconfidentialityagreements),whichsummarytheBorrowerauthorizestheAdministrativeAgenttomakeavailabletotheLenders(subjecttotheLenders’executionofcustomarynon-relianceandconfidentialityagreements),(iii)themostrecentfinancialstatementsreceivedbyBorrowerforthePersonwhichisthesubjectofsuchAcquisition,whichfinancialstatementsshallbemadeavailablebytheAdministrativeAgenttotheLendersand(iv)proformaprojectedfinancialstatementsforthetwelve(12)monthperiodfollowingsuchAcquisitionaftergivingeffecttosuchAcquisition(includingbalancesheets,cashflowsandincomestatementsbymonthonaconsolidatedbasisfortheBorrowerandObligors(includingtheacquiredPerson)),whichproformaprojectedfinancialstatementsshallbemadeavailablebytheAdministrativeAgenttotheLenders.

1.86“PermittedHolders”shallmeananyStrategicPurchaser.

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1.87“Person”or“person”shallmeananyindividual,soleproprietorship,partnership,corporation(includinganycorporationwhichelectssubchapterSstatusundertheCode),limitedliabilitycompany,limitedliabilitypartnership,businesstrust,unincorporatedassociation,jointstockcorporation,trust,jointventureorotherentityoranygovernmentoranyagencyorinstrumentalityorpoliticalsubdivisionthereof.

1.88“PrimeRate”means,foranyday,afluctuatingrateperannumequaltothehighestof(a)theFederalFundsRate,asineffectfromtimetotime,plusone-halfofonepercent(0.50%),(b)theAdjustedLIBORateplusonepercent(1.00%),or(c)therateofinterestineffectforsuchdayaspubliclyannouncedfromtimetotimebyWellsFargoasits“primerate.”The“primerate”isaratesetbyWellsFargobaseduponvariousfactorsincludingWellsFargo’scostsanddesiredreturn,generaleconomicconditionsandotherfactors,andisusedasareferencepointforpricingsomeloans,whichmaybepricedat,above,orbelowsuchannouncedrate.AnychangeinsuchrateannouncedbyWellsFargoshalltakeeffectattheopeningofbusinessonthedayspecifiedinthepublicannouncementofsuchchange,providedthattheAdministrativeAgentshallnotbeobligatedtogivenoticeofanychangeinthePrimeRate.

1.89“PrimeRateLoans”shallmeananyLoansorportionthereofonwhichinterestispayablebasedonthePrimeRateinaccordancewiththetermsthereof.

1.90“ProRataShare”shallmeanwithrespecttoallmattersrelatingtoanyLender,(a)withrespecttoallLoansandLetterofCreditAccommodationspriortothedateonwhichtheCommitmentshavebeenterminated,thepercentageobtainedbydividing(i)theCommitmentsofthatLender(aftersettlementandrepaymentofallSwingLineLoansbytheLenders)by(ii)theCommitmentsofallLenders,and(b)withrespecttoallLoansandLetterofCreditAccommodationsonandafterthedateonwhichtheCommitmentshavebeenterminated,thepercentageobtainedbydividing(i)theaggregateoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsheldbythatLender(aftersettlementandrepaymentofallSwingLineLoansbytheLenders),by(ii)theoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsheldbyallLenders.

1.91“ProvisionforTaxes”shallmean,withrespecttoafiscalyearofanyPersonanditsSubsidiaries,anamountequaltoalltaxesimposedonormeasuredbynetincome,whetherFederal,Stateorlocal,andwhetherforeignordomestic,thatarepaidorpayablebysuchPersonanditsSubsidiariesinrespectofsuchfiscalyearonaconsolidatedbasisinaccordancewithGAAP.

1.92“QualifiedPublicOffering”shallmean(i)anypublicofferingbyHoldingsofitsCapitalStockor(ii)anacquisitionofsharesofHoldingsinoneoraseriesofrelatedtransactionsbyaStrategicPurchaser,ineachcase,aslongastheaggregatecashproceedsreceivedbyHoldingsforthesharessoldinsuchofferingoracquisition,asthecasemay,isatleast$15,000,000.

1.93“Receivables”shallmeanallofthefollowingnowownedorhereafterarisingoracquiredpropertyofBorrower:(a)allAccounts;(b)allinterest,fees,latecharges,penalties,collectionfeesandotheramountsdueortobecomedueorotherwisepayableinconnectionwithanyAccount;(c)allpaymentintangiblesofBorrowerandothercontractrights,

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chattelpaper,instruments,notes,andotherformsofobligationsowingtoBorrower,whetherfromthesaleandleaseofgoodsorotherproperty,licensingofanyproperty(includingIntellectualPropertyorothergeneralintangibles),renditionofservicesorfromloansoradvancesbyBorrowerortoorforthebenefitofanythirdperson(includingloansoradvancestoanyAffiliatesorSubsidiariesofBorrower)orotherwiseassociatedwithanyAccounts,InventoryorgeneralintangiblesofBorrower(including,withoutlimitation,chosesinaction,causesofaction,taxrefunds,taxrefundclaims,anyfundswhichmaybecomepayabletoBorrowerinconnectionwiththeterminationofanyemployeebenefitplanandanyotheramountspayabletoBorrowerfromanyemployeebenefitplan,rightsandclaimsagainstcarriersandshippers,rightstoindemnification,businessinterruptioninsuranceandproceedsthereof,casualtyoranysimilartypesofinsuranceandanyproceedsthereofandproceedsofinsurancecoveringthelivesofemployeesonwhichBorrowerisabeneficiary).

1.94“Records”shallmeanallofBorrower’spresentandfuturebooksofaccountofeverykindornature,purchaseandsaleagreements,invoices,ledgercards,billsofladingandothershippingevidence,statements,correspondence,memoranda,creditfilesandotherdatarelatingtotheCollateraloranyaccountdebtor,togetherwiththetapes,disks,diskettesandotherdataandsoftwarestoragemediaanddevices,filecabinetsorcontainersinoronwhichtheforegoingarestored(includinganyrightsofBorrowerwithrespecttotheforegoingmaintainedwithorbyanyotherperson).

1.95“RefundedSwingLineLoan”shallhavethemeaningsetforthinSection2.5(c)hereof.

1.96“Register”shallhavethemeaningsetforthinSection13.6(b)hereof.

1.97“RequiredLenders”shallmeanLendershaving(i)morethan50%oftheCommitmentsofallLendersor(ii)iftheCommitmentshavebeenterminated,morethan50%oftheaggregateoutstandingamountofallLoansandLetterofCreditAccommodations;provided,however,thatintheeventthattherearethree(3)orfewerLenderspartyhereto,RequiredLendersmustconsistofatleasttwo(2)Lenders.

1.98“RevolvingLoans”shallmeantheloansnoworhereaftermadebyoronbehalfofanyLenderorbyAdministrativeAgenttoorforthebenefitofBorroweronarevolvingbasis(involvingadvances,repaymentsandreadvances)pursuanttoSection2.1hereof.

1.99“SanctionedCountry”meansacountrysubjecttoasanctionsprogramidentifiedonthelistmaintainedbyOFACandavailableathttp://www.treas.gov/offices/eotffc/ofac/sanctions/index.html,orasotherwisepublishedfromtimetotime.

1.100“SanctionedPerson”means(a)apersonnamedonthelistofSpeciallyDesignatedNationalsorBlockedPersonsmaintainedbyOFACavailableathttp://www.treas.gov/offices/eotffc/ofac/sdn/index.html,orasotherwisepublishedfromtimetotime,or(b)(i)anagencyofthegovernmentofaSanctionedCountry,(ii)anorganizationcontrolledbyaSanctionedCountry,or(iii)apersonresidentinaSanctionedCountry,totheextentsubjecttoasanctionsprogramadministeredbyOFAC.

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1.101“SecondAmendment”meanstheAmendmentNo.2toAmendedandRestatedLoanandSecurityAgreementdatedasofDecember6,2013enteredintoamongBorrower,theAgentsandtheLenders.

1.102“SecondAmendmentEffectiveDate”meansDecember6,2013.

1.103“SecuritiesAct”shallmeantheSecuritiesActof1933,asthesamenowexistsormayhereafterbeamended,modified,recodifiedorsupplemented,togetherwithallrules,regulationsandinterpretationsthereunderorrelatedthereto.

1.104“SecuritiesExchangeAct”shallmeantheSecuritiesExchangeActof1934,asthesamenowexistsormayhereafterfromtimetotimebeamended,modified,recodifiedorsupplemented,togetherwithallrules,regulationsandinterpretationsthereunderorrelatedthereto.

1.105“SpecialAgentAdvances”shallhavethemeaningsetforthinSection12.11.

1.106“StatedAmount”shallmean(i)inthecaseofterminationoftheAgreement,theMaximumCreditonsuchdateofdeterminationand(ii)inthecaseofaCommitmentreductionpursuanttoSection2.4(b),theamountofsuchCommitmentreduction.

1.107“StatutoryReserveRate”meansafraction(expressedasadecimal),thenumeratorofwhichisthenumberoneandthedenominatorofwhichisthenumberoneminustheaggregateofthemaximumreservepercentages(includinganymarginal,special,emergencyorsupplementalreserves)expressedasadecimalestablishedbytheFederalReserveBoardtowhichtheAdministrativeAgentissubjectwithrespecttotheAdjustedLIBORate,foreurocurrencyfunding(currentlyreferredtoas“EurocurrencyLiabilities”inRegulationDoftheFederalReserveBoard).SuchreservepercentagesshallincludethoseimposedpursuanttosuchRegulationD.LIBOLoansshallbedeemedtoconstituteeurocurrencyfundingandtobesubjecttosuchreserverequirementswithoutbenefitoforcreditforproration,exemptionsoroffsetsthatmaybeavailablefromtimetotimetoanyLenderundersuchRegulationDoranycomparableregulation.TheStatutoryReserveRateshallbeadjustedautomaticallyonandasoftheeffectivedateofanychangeinanyreservepercentage.

1.108“StoreBankAccounts”shallhavethemeaningsetforthinSection6.3(a)hereof.

1.109“StrategicPurchaser”shallmeanaPerson(i)whichhasitsshareslistedontheAmericanStockExchangeortheNewYorkStockExchangeorquotedontheNASDAQGlobalSelectMarkets,(ii)whichhasashorttermunsecureddebtratingscurrentlyassignedtothemofA-1orbetterbyStandardandPoor’sRatingsServices,adivisionofTheMcGrawHillCompanies,Inc.orP-1byMoody’sInvestorsService,Inc.(orintheabsencethereof,theequivalentlongtermunsecuredseniordebtratings)and(iii)whicheither(A)owns,operatesormanagesabusinesssimilartotheExistingBusinessor(B)owns,operatesormanagesaretailbusiness,orisasuppliertotheExistingBusiness,andhasmadeitsinvestmentinthesharesoftheBorrowerasapartofthestrategytoentertheExistingBusinessthroughtheBorrowerordeveloporstrategicallyintegratetheExistingBusinessinconjunctionwithitsownexisting

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business.Asusedherein,“ExistingBusiness”shallmeanthebusinessofprovidinghairdressing,beautysalonandotherspaservicesandsellingperfume,fragrances,cosmetics,salonproducts,beautyaidsandrelatedgoodsandservicesatretail(includingsalesofsuchgoodsovertheWorldWideWeb/Internet),oranycombinationofanyoftheforegoing.

1.110“Subsidiary”or“subsidiary”shallmean,withrespecttoanyPerson,anycorporation,limitedliabilitycompany,limitedliabilitypartnershiporotherlimitedorgeneralpartnership,trust,associationorotherbusinessentityofwhichanaggregateofatleastamajorityoftheoutstandingCapitalStockorotherinterestsentitledtovoteintheelectionoftheboardofdirectorsofsuchcorporation(irrespectiveofwhether,atthetime,CapitalStockofanyotherclassorclassesofsuchcorporationshallhaveormighthavevotingpowerbyreasonofthehappeningofanycontingency),managers,trusteesorothercontrollingpersons,oranequivalentcontrollinginteresttherein,ofsuchPersonis,atthetime,directlyorindirectly,ownedbysuchPersonand/oroneormoresubsidiariesofsuchPerson.NotwithstandinganythinginthisdefinitionorthisAgreementtothecontrary,theterm“Subsidiary”asusedintheFinancingAgreementsshallexcludetheUnrestrictedSubsidiariesexcept(a)asusedinthedefinitionof“UnrestrictedSubsidiaries”and(b)asusedinSection9.6(a)inwhichcasetheterm“Subsidiary”shallincludeUnrestrictedSubsidiariesonlyunderclause(b)ofsuchdefinition.

1.111“SwapAcknowledgmentAgreement”shallhavethemeaningsetforthinthedefinitionof“Obligations”.

1.112“SwingLineAvailability”shallmean,asofanydateofdetermination,thelesserof(a)theSwingLineCommitmentAmountonsuchdateand(b)ExcessAvailabilityonsuchdate.

1.113“SwingLineCommitmentAmount”means$10,000,000,orifless,theMaximumCreditonsuchdate,whichcommitmentconstitutesasubfacilityoftheCommitmentoftheSwingLineLender.

1.114“SwingLineLender”shallmeanWellsFargo.

1.115“SwingLineLoan”shallhavethemeaningsetforthinSection2.5(a)hereof.

1.116“TerminationDate”shallthemeaningsetforthinSection13.1hereof.

1.117“UCC”shallmeantheUniformCommercialCodeasineffectintheStateofIllinois,andanysuccessorstatute,asineffectfromtimetotime(exceptthattermsusedhereinwhicharedefinedintheUniformCommercialCodeasineffectintheStateofIllinoisonthedatehereofshallcontinuetohavethesamemeaningnotwithstandinganyreplacementoramendmentofsuchstatuteexceptasAdministrativeAgentmayotherwisedetermine).

1.118“UnrestrictedSubsidiary”meanseachdirectorindirectSubsidiaryoftheBorrower(a)thatisa“not-for-profit”Personwhoseprincipalactivitiesinvolvefacilitatingcharitablefundraising,donationsandothercharitableactivitiesor(b)thathasnotownedassetshavingavalueofmorethan$1,000,000foranyperiodofthirty(30)consecutivedays.

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1.119“Value”shallmean,asdeterminedbytheAgentsingoodfaith,withrespecttoInventory,thelowerof(a)Costor(b)marketvalue.

1.120“VotingStock”shallmeanwithrespecttoanyPerson,(a)one(1)ormoreclassesofCapitalStockofsuchPersonhavinggeneralvotingpowerstoelectatleastamajorityoftheboardofdirectors,managersortrusteesofsuchPerson,irrespectiveofwhetheratthetimeCapitalStockofanyotherclassorclasseshaveormighthavevotingpowerbyreasonofthehappeningofanycontingency,and(b)anyCapitalStockofsuchPersonconvertibleorexchangeablewithoutrestrictionattheoptionoftheholderthereofintoCapitalStockofsuchPersondescribedinclause(a)ofthisdefinition.

1.121“WellsFargo”shallmeanWellsFargoBank,NationalAssociation.

SECTION 2. CREDIT FACILITIES

2.1RevolvingLoans.

(a)Subjecttoanduponthetermsandconditionscontainedherein,eachLenderseverally(andnotjointly)agreestofunditsProRataShareofRevolvingLoanstoBorrowerfromtimetotimeinamountsrequestedbyBorroweruptotheamountequaltoninetypercent(90%)oftheNetRecoveryCostPercentagemultipliedbytheCostofEligibleInventoryorEligibleLetterofCreditInventory,asapplicable,lesstheamountofanyAvailabilityReserves.

(b)TheAgentsmayfromtimetotime,andineachcaseuponnotlessthanten(10)dayspriornoticetoBorrower,reducethelendingformulawithrespecttoEligibleInventorytotheextentthattheAgentsdeterminethat:(i)thenumberofdaysoftheturnoveroftheInventoryforanyperiodhaschangedinanymaterialrespector(ii)thenature,qualityormixoftheInventoryhasdeterioratedinanymaterialrespect.Indeterminingwhethertoreducethelendingformula(s),theAgentsmayconsiderevents,conditions,contingenciesorriskswhicharealsoconsideredindeterminingEligibleInventoryorinestablishingAvailabilityReserves.TotheextenttheAgentsshallhaveestablishedanAvailabilityReservewhichissufficienttoaddressanyevent,conditionormatterinamannersatisfactorytotheAgentsingoodfaith,theAgentsshallnotexerciseitsrightsunderthisSection2.1(b)toreducethelendingformulas,toaddresssuchevent,conditionormatter.TheamountofanyreductioninthelendingformulabytheAgentspursuanttothisSection2.1(b)shallhaveareasonablerelationshiptothematterwhichisthebasisforsuchareduction.

(c)ExceptinAdministrativeAgent’sdiscretion,withtheconsentofallLenders,theaggregateamountoftheLoansandtheLetterofCreditAccommodationsoutstandingatanytimeshallnotexceedtheMaximumCredit.IntheeventthattheoutstandingamountofanycomponentoftheLoans,ortheaggregateamountoftheoutstandingLoansandLetterofCreditAccommodations,exceedtheamountsavailableunderthelendingformulas,sublimitsforLetterofCreditAccommodationssetforthinSection2.2(d)ortheMaximumCredit,asapplicable,sucheventshallnotlimit,waiveorotherwiseaffectanyrightsofAgentsorLendersinthatcircumstanceoronanyfutureoccasionsandBorrowershall,upondemandbyAdministrativeAgent,whichmaybemadeatanytimeorfromtimetotime,immediatelyrepaytoAdministrativeAgenttheentireamountofanysuchexcess(es)forwhichpaymentisdemanded.

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(d)UncommittedIncreasesinMaximumCredit.

(i)ProvidednoDefaultorEventofDefaultthenexistsorwouldarisetherefrom,theBorrowermay,bywrittennoticetoAdministrativeAgentfromtimetotime,requestanincreaseintheMaximumCredit(bywayofanincreasetoanyexistingCommitmentor,inaccordancewithclause(iii)below,additionalCommitments)inanamount(forallsuchrequests)nottoexceedtheAdditionalCreditprovidedthat(i)anysuchrequestforanincreaseshallbeinminimumincrementsof$5,000,000andaminimumamountof$10,000,000orsuchlesseramountequaltotheremainingAdditionalCredit),and(ii)theBorrowermaymakeamaximumofthree(3)suchrequests.Atthetimeofsendingsuchnotice,theBorrower(inconsultationwiththeAdministrativeAgent)shallspecifythetimeperiodwithinwhicheachLenderisrequestedtorespond(whichshallinnoeventbelessthanten(10)BusinessDaysfromthedateofdeliveryofsuchnoticetotheLenders).

(ii)EachLendershallnotifytheAdministrativeAgentwithinsuchtimeperiodwhetherornotitagreestoincreaseitsCommitmentand,ifso,whetherbyanamountequalto,greaterthan,orlessthanitsProRataShareofsuchrequestedincrease.AnyLendernotrespondingwithinsuchtimeperiodshallbedeemedtohavedeclinedtoincreaseitsCommitment.

(iii)TheAdministrativeAgentshallnotifytheBorrowerandeachLenderoftheLenders’responsestoeachrequestmadehereunder.ToachievethefullamountofarequestedincreaseintheMaximumCreditandsubjecttotheapprovaloftheAdministrativeAgent,theLCIssuerandtheSwingLineLender(whichapprovalsshallnotbeunreasonablywithheld),totheextentthattheexistingLendersdeclinetoincreasetheirCommitments,ordeclinetoincreasetheirCommitmentstotheamountrequestedbytheBorrower,theAdministrativeAgent,inconsultationwiththeBorrower,willuseitsreasonableeffortstoarrangeforotherEligibleTransfereessatisfactorytoBorrowerorPersonsdescribedinSection13.6(a)(i)(A)or(C)tobecomeaLenderhereunder(eachsuchLender,an“AdditionalCommitmentLender”)andtoissuecommitmentsinanamountequaltotheamountoftheincreaseintheCommitmentsrequestedbytheBorrowerandnotacceptedbytheexistingLenders(andtheBorrowermayalsoinviteadditionalotherEligibleTransfereesorPersonsdescribedinSection13.6(a)(i)(A)or(C)tobecomeLenders),provided,however,thatwithouttheconsentoftheAdministrativeAgent,atnotimeshalltheCommitmentofanyAdditionalCommitmentLenderbelessthan$10,000,000.ThetermsandprovisionsofsuchadditionalCommitmentsandLoansmadeundersuchadditionalCommitmentsshallbeidenticaltothoseoftheexistingCommitmentsandLoans,respectively.

(iv)IftheMaximumCreditisincreasedinaccordancewiththisSection2.1(d),theAdministrativeAgent,inconsultationwiththeBorrower,shall

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determinetheeffectivedate(the“IncreaseEffectiveDate”)andthefinalallocationofsuchincrease.TheAdministrativeAgentshallpromptlynotifytheBorrowerandtheLendersofthefinalallocationofsuchincreaseandtheIncreaseEffectiveDateandontheIncreaseEffectiveDate(i)theMaximumCreditunder,andforallpurposesof,thisAgreementshallbeincreasedbytheaggregateamountofsuchCommitmentincreases,and(ii)ScheduleIheretoshallbedeemedmodified,withoutfurtheraction,toreflecttherevisedCommitmentsandProRataShareoftheLenders.Eachofthepartiesheretoherebyagreesthat,upontheeffectivenessofanyAdditionalCreditAssumptionAgreement,thisAgreementshallbedeemedamendedtotheextent(butonlytotheextent)necessarytoreflecttheexistenceoftheadditionalCommitmentandadditionalLoansevidencedthereby,andtheAdministrativeAgentandtheBorrowermayrevisethisAgreementtoevidencesuchamendments.

(v)AsaconditionprecedenttoanysuchincreasetotheMaximumCredit,(i)theBorrowershalldelivertotheAdministrativeAgentacertificatedatedasoftheIncreaseEffectiveDatesignedbyanauthorizedcorporateofficeroftheBorrower(A)certifyingthattheresolutionspreviouslyadoptedbytheBorrowerauthorizingtheincreaseintheMaximumCredithavenotbeenamended,modifiedorrepealedandremaininfullforceandeffect,(B)certifyingthat,beforeandaftergivingeffecttosuchincrease,(1)therepresentationsandwarrantiescontainedinSection8andintheotherFinancingDocumentsaretrueandcorrectonandasoftheIncreaseEffectiveDate,excepttotheextentthatsuchrepresentationsandwarrantiesspecificallyrefertoanearlierdate,inwhichcasetheyaretrueandcorrectasofsuchearlierdate,andexceptthatforpurposesofthisSection2.1(d),therepresentationsandwarrantiescontainedinSection8.3shallbedeemedtorefertothemostrecentstatementsfurnishedpursuanttoclause(a)ofSection9.6,and(2)noDefaultorEventofDefaultexistsorwouldarisefromsuchincreasetotheMaximumCredit,(ii)theBorrower,theAdministrativeAgent,andanyAdditionalCommitmentLendershallhaveexecutedanddeliveredanAdditionalCreditAssumptionAgreement;(iii)theBorrowershallhavepaidsuchfeesandothercompensationtotheAdditionalCommitmentLendersastheBorrowerandsuchAdditionalCommitmentLendersshallagree;(iv)theBorrowershallhavepaidsucharrangementfeestotheAdministrativeAgentastheBorrowerandtheAdministrativeAgentmayagree;(v)theBorrowersshallhaveexecutedanddeliveredanynotesrequestedbyLenderstoevidencetheirCommitmentsaftergivingeffecttoanyincreasesinCommitments;and(vi)noDefaultorEventofDefaultexists.

2.2LetterofCreditAccommodations.

(a)UpontherequestoftheLCIssuer,BorrowershallexecuteanddelivertotheLCIssueraMasterLetterofCreditAgreement.BorrowershallgivenoticetoAdministrativeAgentandtheLCIssueroftheproposedissuanceofeachLetterofCreditAccommodationonaBusinessDaywhichisatleastthree(3)BusinessDays(orsuchlessernumberofdaysasAdministrativeAgentandtheLCIssuershallagreeinanyparticularinstanceintheirsolediscretion)priortotheproposeddateofissuanceofsuchLetterofCreditAccommodationEach

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suchnoticeshallbeaccompaniedbyanLCApplication,dulyexecutedbyBorrowerandinallrespectssatisfactorytoAdministrativeAgentandtheLCIssuer,togetherwithsuchotherdocumentationasAdministrativeAgentortheLCIssuermayrequestinsupportthereof,itbeingunderstoodthateachLCApplicationshallspecify,amongotherthings,thedateonwhichtheproposedLetterofCreditAccommodationistobeissued,theexpirationdateofsuchLetterofCreditAccommodation(whichshallnotbelaterthantheTerminationDate(unlesssuchLetterofCreditAccommodationiscashcollateralizedpursuanttoSection10.2(b))andwhethersuchLetterofCreditAccommodationistobetransferableinwholeorinpart.AnyLetterofCreditAccommodationoutstandingaftertheTerminationDatewhichiscashcollateralizedforthebenefitoftheLCIssuershallbethesoleresponsibilityoftheLCIssuer.SolongastheLCIssuerhasnotreceivedwrittennoticethattheconditionsprecedentsetforthinSection4withrespecttotheissuanceofsuchLetterofCreditAccommodationhavenotbeensatisfied,andsubjecttotheprovisionsofSection2.2(h)hereof,theLCIssuershallissuesuchLetterofCreditAccommodationandofanyamendmentthereto,extensionthereoforeventorcircumstancechangingtheamountavailablefordrawingthereunder.IntheeventofanyinconsistencybetweenthetermsoftheMasterLetterofCreditAgreement,anyapplicationforaLetterofCreditAccommodationandthetermsofthisAgreement,thetermsofthisAgreementshallcontrol.

(b)TheLCIssuerherebyagrees,uponrequestofAdministrativeAgentoranyLender,todelivertoAdministrativeAgentorsuchLenderalistofalloutstandingLetterofCreditAccommodationsissuedbytheLCIssuer,togetherwithsuchinformationrelatedtheretoasAdministrativeAgentorsuchLendermayreasonablyrequest.

(c)TheLCIssuershallnotifyBorrowerandAdministrativeAgentwheneveranydemandforpaymentismadeunderanyLetterofCreditAccommodationbythebeneficiarythereunder;providedthatthefailureoftheLCIssuertosonotifyBorrowerorAdministrativeAgentshallnotaffecttherightsoftheLCIssuerortheLendersinanymannerwhatsoever.BorrowerherebyunconditionallyandirrevocablyagreestoreimbursetheLCIssuerforeachpaymentordisbursementmadebytheLCIssuerunderanyLetterofCreditAccommodationhonoringanydemandforpaymentmadebythebeneficiarythereunder,ineachcaseonthedatethatsuchpaymentordisbursementismade.IfBorrowerdoesnotpayanyreimbursementobligationwhendue,BorrowershallbedeemedtohaveimmediatelyrequestedthattheLendersmakeaRevolvingLoanwhichisaPrimeRateLoaninaprincipalamountequaltosuchreimbursementobligations(suchRevolvingLoanshallbereferredtohereinasan“LCReimbursementLoan”).AdministrativeAgentshallpromptlynotifysuchLendersofsuchdeemedrequestand,withoutthenecessityofcompliancewiththerequirementsofSection4,Section6.5orotherwisesuchLendershallmakeavailabletoAdministrativeAgentitsProRataShareofsuchLoan.TheproceedsofsuchLoanshallbepaidoverbyAdministrativeAgenttotheLCIssuerfortheaccountofBorrowerinsatisfactionofsuchreimbursementobligations.

(d)Borrower’sreimbursementobligationshereundershallbeirrevocableandunconditionalunderallcircumstances,including(i)anylackofvalidityorenforceabilityofanyLetterofCreditAccommodation,thisAgreementoranyotherFinancingAgreement,(ii)theexistenceofanyclaim,set-off,defenseorotherrightwhichBorrowermayhaveatanytimeagainstabeneficiarynamedinaLetterofCreditAccommodation,anytransfereeofanyLetterofCreditAccommodation(oranyPersonforwhomanysuchtransfereemaybeacting),

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AdministrativeAgent,theLCIssuer,anyLenderoranyotherPerson,whetherinconnectionwithanyLetterofCreditAccommodation,thisAgreement,anyotherFinancingAgreement,thetransactionscontemplatedhereinoranyunrelatedtransactions(includinganyunderlyingtransactionbetweenBorrowerandthebeneficiarynamedinanyLetterofCreditAccommodation),(iii)thevalidity,sufficiencyorgenuinenessofanydocumentwhichtheLCIssuerhasdeterminedcompliesonitsfacewiththetermsoftheapplicableLetterofCreditAccommodation,evenifsuchdocumentshouldlaterprovetohavebeenforged,fraudulent,invalidorinsufficientinanyrespectoranystatementthereinshallhavebeenuntrueorinaccurateinanyrespect,or(iv)thesurrenderorimpairmentofanysecurityfortheperformanceorobservanceofanyofthetermshereof.Withoutlimitingtheforegoing,noactionoromissionwhatsoeverbyAdministrativeAgentoranyLender(excludinganyLenderinitscapacityastheLCIssuer)underorinconnectionwithanyLetterofCreditAccommodationoranyrelatedmattersshallresultinanyliabilityoftheAdministrativeAgentoranyLendertoBorrower,orrelieveBorrowerofanyofitsobligationshereundertoanysuchPerson.

(e)ConcurrentlywiththeissuanceofeachLetterofCreditAccommodation,theLCIssuershallbedeemedtohavesoldandtransferredtoeachLenderwithaCommitment,andeachsuchLendershallbedeemedirrevocablyandunconditionallytohavepurchasedandreceivedfromtheIssuingLender,withoutrecourseorwarranty,anundividedinterestandparticipation,totheextentofsuchLender’sProRataShare,insuchLetterofCreditAccommodationandBorrower’sreimbursementobligationswithrespectthereto.IftheLCIssuermakesanypaymentordisbursementunderanyLetterofCreditAccommodationand(a)(x)BorrowerhasnotreimbursedtheLCIssuerinfullforsuchpaymentordisbursementby11:00A.M.onthedateofsuchpaymentordisbursementand(y)anLCReimbursementLoanmaynotbemadeinaccordancewithSection2.1or(b)anyreimbursementreceivedbytheLCIssuerfromBorrowerisormustbereturnedorrescindeduponorduringanybankruptcyorreorganizationofBorrowerorotherwise,eachotherLendershallbeobligatedtopaytoAdministrativeAgentfortheaccountoftheLCIssuer,infullorpartialpaymentofthepurchasepriceofitsparticipationinsuchLetterofCreditAccommodation,itsProRataShareofsuchpaymentordisbursement(butnosuchpaymentshalldiminishtheobligationsofBorrowerunderSection2.2(c)and(d)),and,uponnoticefromtheLCIssuer,AdministrativeAgentshallpromptlynotifyeachotherLenderthereof.EachotherLenderirrevocablyandunconditionallyagreestosopaytoAdministrativeAgentinimmediatelyavailablefundsfortheLCIssuer’saccounttheamountofsuchotherLender’sProRataShareofsuchpaymentordisbursement.IfandtotheextentanyLendershallnothavemadesuchamountavailabletoAdministrativeAgentby2:00P.M.ontheBusinessDayonwhichsuchLenderreceivesnoticefromAdministrativeAgentofsuchpaymentordisbursement(itbeingunderstoodthatanysuchnoticereceivedafter12:00noononanyBusinessDayshallbedeemedtohavebeenreceivedonthenextfollowingBusinessDay),suchLenderagreestopayinterestonsuchamounttoAdministrativeAgentfortheLCIssuer’saccountforthwithondemand,foreachdayfromthedatesuchamountwastohavebeendeliveredtoAdministrativeAgenttothedatesuchamountispaid,atarateperannumequalto(a)forthefirstthreedaysafterdemand,theFederalFundsRatefromtimetotimeineffectand(b)thereafter,thePrimeRatefromtimetotimeineffect.AnyLender’sfailuretomakeavailabletoAdministrativeAgentitsProRataShareofanysuchpaymentordisbursementshallnotrelieveanyotherLenderofitsobligationhereundertomakeavailabletoAdministrativeAgentsuchotherLender’sProRataShareofsuchpayment,butnoLendershallberesponsibleforthefailureofanyotherLendertomakeavailabletoAdministrativeAgentsuchotherLender’sProRataShareofanysuchpaymentordisbursement.

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(f)ExceptasotherwiseprovidedinSections2.5and2.2(e),noLendershallhaveanobligationtomakeanyLoan,ortopermitthecontinuationoforanyconversionintoanyLIBORateLoan,andtheLCIssuershallnothaveanyobligationtoissueanyLetterofCreditAccommodation,ifaDefaultorEventofDefaultexists.

(g)Inadditiontoanycharges,feesorexpenseschargedbyanybankorLCIssuerinconnectionwiththeLetterofCreditAccommodations,BorrowershallpaytoAdministrativeAgent,forthebenefitofLenders,aletterofcreditfeeatarateequalto(A)1.50%perannumonthedailyoutstandingbalanceoftheLetterofCreditAccommodationswithrespecttostandbylettersofcreditand(B)1.00%perannumonthedailyoutstandingbalanceoftheLetterofCreditAccommodationswithrespecttodocumentarylettersofcredit,ineachcasefortheimmediatelyprecedingmonth(orpartthereof),payableinarrearsasofthefirstdayofeachsucceedingmonth,exceptthatBorrowershallpaytoAdministrativeAgentfortheratablebenefitofLenders,suchletterofcreditfee,atAdministrativeAgent’soption,withoutnotice,atarateequaltotwopercent(2%)perannuminexcessoftherateotherwiseprovidedinthisSection2.2(h)onsuchdailyoutstandingbalance(i)withoutnotice,atanytimeanEventofDefaultpursuanttoanyofSections10.1(f),10.1(g)and/or10.1(h)and/or(ii)uponthewrittenrequestofRequiredLenders,andotherwisewithoutnotice,fortheperiodfromandafterthedateoftheoccurrenceofanyEventofDefault,otherthananEventofDefaultdescribedintheimmediatelyprecedingclause(i),andforsolongassuchEventofDefaultiscontinuingasdeterminedbyAdministrativeAgent.Suchletterofcreditfeeshallbecalculatedonthebasisofathreehundredsixty(360)dayyearandactualdayselapsedandtheobligationofBorrowertopaysuchfeeshallsurvivetheterminationofthisAgreement.

(h)NoLetterofCreditAccommodationsshallbeavailableunlessonthedateoftheproposedissuanceofanyLetterofCreditAccommodations,andaftergivingeffectthereto,

(i)ExcessAvailabilityisatleast$1.00;

(ii)noorder,judgmentordecreeofanyGovernmentalAuthorityorarbitratorshallbyitstermspurporttoenjoinorrestraintheLCIssuerfromissuingsuchletterofcredit,ornolawapplicabletotheLCIssueroranyrequestordirective(whetherornothavingtheforceoflaw)fromanyGovernmentalAuthoritywithjurisdictionovertheLCIssuershallprohibit,orrequestthattheLCIssuerrefrainfrom,theissuanceoflettersofcreditgenerallyorsuchletterofcreditinparticularorshallimposeupontheLCIssuerwithrespecttosuchletterofcreditanyrestriction,reserveorcapitalrequirement(forwhichtheLCIssuerisnototherwisecompensatedhereunder)notineffectonthedatehereof,orshallimposeupontheLCIssueranyunreimbursedloss,costorexpensewhichwasnotapplicableonthedatehereofandwhichtheLCIssueringoodfaithdeemsmaterialtoit;

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(iii)theissuanceofsuchletterofcreditwouldviolateoneormorepoliciesoftheLCIssuerapplicabletolettersofcreditgenerally;or

(iv)anyLenderisatsuchtimeaDefaultingLenderorDeterioratingLenderhereunder,unlesstheAdministrativeAgentorLCIssuerhasenteredintosatisfactoryarrangementswiththeBorrowerorsuchLendertoeliminatetheLCIssuer’sriskwithrespecttosuchLender.

(i)ExceptinAdministrativeAgent’sdiscretion,withtheconsentofallLenders,theamountofalloutstandingLetterofCreditAccommodationsandallothercommitmentsandobligationsmadeorincurredbyeitherAgentoranyLenderinconnectiontherewithshallnotatanytimeexceed$10,000,000.AtanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,uponAdministrativeAgent’srequest,BorrowerwilleitherfurnishcashcollateraltosecurethereimbursementobligationstotheLCIssuerinconnectionwithanyLetterofCreditAccommodationsorfurnishcashcollateraltoAdministrativeAgentfortheLetterofCreditAccommodations,andineithercase,theLoansotherwiseavailabletoBorrowershallnotbereducedasprovidedinSectionto2.2(i)theextentofsuchcashcollateral.

(j)BorrowershallindemnifyandholdAgentsandLendersharmlessfromandagainstanyandalllosses,claims,damages,liabilities,costsandexpenseswhicheitherAgentoranyLendermaysufferorincurinconnectionwithanyLetterofCreditAccommodationsandanydocuments,draftsoracceptancesrelatingthereto,includinganylosses,claims,damages,liabilities,costsandexpensesduetoanyactiontakenbyanyLCIssuerorcorrespondentwithrespecttoanyLetterofCreditAccommodation.BorrowerassumesallriskswithrespecttotheactsoromissionsofthedrawerunderorbeneficiaryofanyLetterofCreditAccommodationandforsuchpurposesthedrawerorbeneficiaryshallbedeemedBorrower’sagent.Borrowerassumesallrisksfor,andagreestopay,allforeign,Federal,Stateandlocaltaxes,dutiesandleviesrelatingtoanygoodssubjecttoanyLetterofCreditAccommodationsoranydocuments,draftsoracceptancesthereunder.BorrowerherebyreleasesandholdsAgentsandLendersharmlessfromandagainstanyacts,waivers,errors,delaysoromissions,whethercausedbyBorrower,byanyLCIssuerorcorrespondentorotherwisewithrespecttoorrelatingtoanyLetterofCreditAccommodation,exceptforthegrossnegligenceorwillfulmisconductofeitherAgentoranyLenderasdeterminedpursuanttoafinal,non-appealableorderofacourtofcompetentjurisdiction.TheprovisionsofthisSection2.2(k)shallsurvivethepaymentofObligationsandtheterminationofthisAgreement.

(k)NothingcontainedhereinshallbedeemedorconstruedtograntBorroweranyrightorauthoritytopledgethecreditofeitherAgentoranyLenderinanymanner.AgentsandLendersshallhavenoliabilityofanykindwithrespecttoanyLetterofCreditAccommodationprovidedbyanLCIssuerotherthaneitherAgentoranyLenderunlessAdministrativeAgenthasdulyexecutedanddeliveredtosuchLCIssuertheapplicationoraguaranteeorindemnificationinwritingwithrespecttosuchLetterofCreditAccommodation.BorrowershallbeboundbyanyinterpretationmadeingoodfaithbyAdministrativeAgent,oranyotherLCIssuerorcorrespondentunderorinconnectionwithanyLetterofCreditAccommodationoranydocuments,draftsoracceptancesthereunder,notwithstandingthatsuchinterpretationmaybeinconsistentwithanyinstructionsofBorrower.AtanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,AdministrativeAgentshallhavethesoleand

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exclusiverightandauthorityto,andBorrowershallnot:(i)approveorresolveanyquestionsofnon-complianceofdocuments,(ii)giveanyinstructionsastoacceptanceorrejectionofanydocumentsorgoods,(iii)executeanyandallapplicationsforsteamshiporairwayguaranties,indemnitiesordeliveryorders,(iv)grantanyextensionsofthematurityof,timeofpaymentfor,ortimeofpresentationof,anydrafts,acceptances,ordocuments,or(v)agreetoanyamendments,renewals,extensions,modifications,changesorcancellationsofanyofthetermsorconditionsofanyoftheapplications,LetterofCreditAccommodations,ordocuments,draftsoracceptancesthereunderoranylettersofcreditincludedintheCollateral;provided,that,Borrowershallnot,atanytimepriortoanEventofDefault,takeanyoftheactionsspecifiedinclauses(iv)and(v)aboveexceptafterpriorwrittennoticetoAdministrativeAgentandwiththepriorwrittenconsentofAdministrativeAgent,ifAdministrativeAgentshalldetermineingoodfaiththatanysuchactionshallincreasetheriskofAgentsorLenderswithrespecttosuchLetterofCreditAccommodations.AdministrativeAgentmaytakesuchactionseitherinitsownnameorinBorrower’sname.

(l)Anyrights,remedies,dutiesorobligationsgrantedorundertakenbyBorrowertoanyLCIssuerorcorrespondentinanyapplicationforanyLetterofCreditAccommodation,oranyotheragreementinfavorofanyLCIssuerorcorrespondentrelatingtoanyLetterofCreditAccommodation,shallbedeemedtohavebeengrantedorundertakenbyBorrowertoAdministrativeAgentfortheratablebenefitofLenders.AnydutiesorobligationsundertakenbyAdministrativeAgenttoanyLCIssuerorcorrespondentinanyapplicationforanyLetterofCreditAccommodation,oranyotheragreementbyAdministrativeAgentinfavorofanyLCIssuerorcorrespondentrelatingtoanyLetterofCreditAccommodation,shallbedeemedtohavebeenundertakenbyBorrowertoAdministrativeAgentfortheratablebenefitofLendersandtoapplyinallrespectstoBorrower.

2.3AvailabilityReserves.

WithoutlimitinganyotherrightsandremediesofAgentsorLendershereunderorundertheotherFinancingAgreements,allLoansandLetterofCreditAccommodationsotherwiseavailabletoBorrowershallbesubjecttotherightofAgentsfromtimetotime,toestablishandreviseingoodfaithreservesreducingtheamountofLoansandLetterofCreditAccommodationsthatwouldotherwisebeavailabletoBorrower(“AvailabilityReserves”):(a)toreflectevents,conditionsorcontingenciesthat,asdeterminedbytheAgentsingoodfaith,adverselyaffectorhaveareasonablelikelihoodofadverselyaffectingeither(i)theCollateraloranyotherpropertywhichissecurityfortheObligations,itsvalueortheamountwhichmayberealizedbyCollateralAgentfromthesaleorotherdispositionthereof,or(ii)theassetsorfinancialconditionofBorroweroranyObligor,or(iii)thesecurityinterestsandotherrightsofCollateralAgentintheCollateral(includingtheenforceability,perfectionandprioritythereof),or(b)toreflecteitherAgent’sgoodfaithbeliefthatanycollateralreportorfinancialinformationfurnishedbyoronbehalfofBorroweroranyObligortoAgentsisormayhavebeenincomplete,inaccurateormisleadinginanymaterialrespect,or(c)inrespectofanystateoffactswhicheitherAgentdeterminesingoodfaithconstitutesanEventofDefaultormay,withnoticeorpassageoftimeorboth,constituteanEventofDefault,or(d)toreflectinventoryshrinkage(asreflectedonthemostrecentfinancialstatementsdeliveredpursuanttoSection9.6(a)(i)),or(e)toreflecttheaggregateamountofdeposits,ifany,receivedbyBorrowerfromitsretailcustomersinrespectofunfilledorders,or(f)toreflectamountsdueortobecomedueinrespectofsales,useand/or

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withholdingtaxes,provided,that,anAvailabilityReservepursuanttothisSection2.3(f)willonlybeestablishedif(i)ExcessAvailability(withoutgivingeffecttoanyreserveforsuchamounts)shallbelessthan$1,000,000,or(ii)anEventofDefaultoract,conditionoreventwhichwithnoticeorpassageoftimeorbothwouldconstituteanEventofDefault,shallexistorhaveoccurredandbecontinuing,or(g)(i)toreflectanyrentalpayments,servicechargesorotheramountspastduetolessorsofrealorpersonalproperty,and(ii)toreflectanyrentalpayments,servicechargesorotheramountstobecomeduetolessorsofrealorpersonalproperty,whichAvailabilityReserveshallbecalculatedinaccordancewithclause(c)ofthedefinitionofEligibleInventory(excludingfromthisclause(g)(ii)only,(A)lessorsfromwhomaLandlordAgreementisnotrequiredtobedeliveredunderthedefinitionofEligibleInventoryor(B)lessorsfromwhomaLandlordAgreementisrequiredtobedeliveredunderthedefinitionofEligibleInventoryandwhohaveexecutedanddeliveredLandlordAgreements)totheextentInventoryorRecordsarelocatedinoronsuchpropertyorsuchRecordsareneededtomonitororotherwisedealwiththeCollateral,or(h)[intentionallydeleted],or(i)forBankProductReservesandCashManagementReserves.TotheextenttheAgentsmayrevisethelendingformulasetforthinSection2.1hereoforestablishnewcriteriaorreviseexistingcriteriaforEligibleInventorysoastoaddressanycircumstance,condition,eventorcontingencyinamannersatisfactorytotheAgents,theAgentsshallnotestablishanAvailabilityReserveforthesamepurpose(and,forclarity,anylimitationsontheAgents’rightstorevisethelendingformulasetforthinSection2.1hereofortoestablishnewcriteriaorreviseexistingcriteriaforEligibleInventory,shallinnowaylimittherightoftheAgentstoestablishormodifyAvailabilityReserves).TheamountofanyAvailabilityReserveestablishedbytheAgentsshallhaveareasonablerelationshiptotheevent,conditionorothermatterwhich,isthebasisforsuchreserveasdeterminedbytheAgentsingoodfaith.

2.4Commitments.

(a)TheaggregateamountofeachLender’sProRataShareoftheLoansandLetterofCreditAccommodationsshallnotexceedtheamountofsuchLender’sCommitments,asthesamemayfromtimetotimebeamendedinaccordancewiththeprovisionshereof.

(b)Borrowermayatanytimeuponatleastfive(5)days’priorwrittennoticetotheAdministrativeAgentpermanentlyreducetheCommitmentshereunder;providedthat(A)theCommitmentsmaynotbereducedtolessthanfiftypercent(50%)oftheMaximumCreditineffectimmediatelypriortosuchreduction,(B)anysuchreductionshallbeinaminimumamountof$5,000,000andintegralmultiplesof$250,000inexcessofsuchamount,and(C)suchreductionmustbeaccompaniedbypaymentofanyfundingbreakagecostsinaccordancewithSection3.1(c).

2.5SwingLineFacility.

(a)TheAdministrativeAgentshallnotifytheSwingLineLenderupontheAdministrativeAgent’sreceiptofanyNoticeofBorrowing(asdefinedinSection6.5)thatrequestsaSwingLineLoan.Subjecttothetermsandconditionshereof,upontheBorrower’srequestforaSwingLineLoanassetforthintheapplicableNoticeofBorrowing,theSwingLineLendermay,initssolediscretion,makeavailablefromtimetotimeuntiltheTerminationDateadvances(each,a“SwingLineLoan”)inaccordancewithanysuchnotice,notwithstandingthat

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aftermakingarequestedSwingLineLoan,thesumoftheSwingLineLender’sProRataShareoftheRevolvingLoansoutstandingandalloutstandingSwingLineLoansmayexceedtheSwingLineLender’sProRataShareoftheCommitment.TheprovisionsofthisSection2.5shallnotrelieveLendersoftheirobligationstomakeRevolvingLoansunderSection2.1;providedthatiftheSwingLineLendermakesaSwingLineLoanpursuanttoanysuchnotice,suchSwingLineLoanshallbeinlieuofanyRevolvingLoanthatotherwisemaybemadebytheLenderspursuanttosuchnotice.TheaggregateamountofSwingLineLoansoutstandingshallnotexceedatanytimeSwingLineAvailability.UntiltheTerminationDate,theBorrowermayfromtimetotimeborrow,repayandreborrowunderthisSection2.5;providedthattheSwingLineLendershallnotbeobligatedtomakeanySwingLineLoanatanytimewhenanyLenderisatsuchtimeaDefaultingLenderorDeterioratingLenderhereunder,unlesstheSwingLineLenderhasenteredintosatisfactoryarrangementswiththeBorrowerorsuchLendertoeliminatetheSwingLineLender’sriskwithrespecttosuchLender.EachSwingLineLoanshallbemadepursuanttoaNoticeofBorrowingdeliveredbytheBorrowertotheAdministrativeAgentinaccordancewithSection6.5(a).Anysuchnoticemustbegivennolaterthan2:00P.M.ontheBusinessDayoftheproposedSwingLineLoan.UnlesstheSwingLineLenderhasreceivedatleastoneBusinessDay’spriorwrittennoticefromtheRequiredLendersinstructingitnottomakeaSwingLineLoan,theSwingLineLendershall,notwithstandingthefailureofanyconditionprecedentsetforthinSection4.2,beentitledtofundthatSwingLineLoan,andtohavetheLendersmakeRevolvingLoansinaccordancewithSection2.5(c)orpurchaseparticipatingintereststhereininaccordancewithSection2.5(d).NotwithstandinganyotherprovisionofthisAgreementortheotherFinancingAgreements,eachSwingLineLoanshallconstituteaPrimeRateLoan.TheBorrowershallrepaytheaggregateoutstandingprincipalamountofeachSwingLineLoanupondemandthereforebytheAdministrativeAgent.

(b)TheentireunpaidbalanceofeachSwingLineLoanandallothernoncontingentObligationsshallbeimmediatelydueandpayableinfullinimmediatelyavailablefundsontheTerminationDateifnotsoonerpaidinfull.

(c)TheSwingLineLender,atanytimeandfromtimetotimenolessfrequentlythanonceweekly,shallonbehalfoftheBorrower(andtheBorrowerherebyirrevocablyauthorizestheSwingLineLendertosoactonitsbehalf)requesteachLenderwithaCommitment(includingtheSwingLineLender)tomakeaRevolvingLoantotheBorrower(whichshallbeaPrimeRateLoan)inanamountequaltothatLender’sProRataShareoftheprincipalamountofallSwingLineLoans(the“RefundedSwingLineLoan”)outstandingonthedatesuchnoticeisgiven.UnlessanyoftheeventsdescribedinanyofSections10.1(f),10.1(g)or10.1(h)hasoccurred(inwhicheventtheproceduresofSection2.5(d)shallapply)andregardlessofwhethertheconditionsprecedentsetforthinthisAgreementtothemakingofaRevolvingLoanarethensatisfied,eachLendershalldisbursedirectlytotheAdministrativeAgent,itsProRataShareonbehalfoftheSwingLineLender,priorto2:00P.M.inimmediatelyavailablefundsonthedatethatnoticeisgiven(providedthatsuchnoticeisgivenby12:00noononsuchdate,whichshallbeaBusinessDay).TheproceedsofthoseRevolvingLoansshallbeimmediatelypaidtotheSwingLineLenderandappliedtorepaytheRefundedSwingLineLoan.

(d)If,priortorefundingaSwingLineLoanwithaRevolvingLoanpursuanttoSection2.5(c),oneoftheeventsdescribedinanyofSections10.1(f),10.1(g)or10.1(h)hasoccurred,then,subjecttotheprovisionsofSection2.5(e)below,eachLendershall,onthedate

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suchRevolvingLoanwastohavebeenmadeforthebenefitoftheBorrower,purchasefromtheSwingLineLenderanundividedparticipationinterestintheSwingLineLoaninanamountequaltoitsProRataShareofsuchSwingLineLoan.Uponrequest,eachLendershallpromptlytransfertotheSwingLineLender,inimmediatelyavailablefunds,theamountofitsparticipationinterest.

(e)EachLender’sobligationtomakeRevolvingLoansinaccordancewithSection2.5(c)andtopurchaseparticipationinterestsinaccordancewithSection2.5(d)shallbeabsoluteandunconditionalandshallnotbeaffectedbyanycircumstance,including(i)anysetoff,counterclaim,recoupment,defenseorotherrightthatsuchLendermayhaveagainsttheSwingLineLender,theBorroweroranyotherPersonforanyreasonwhatsoever;(ii)theoccurrenceorcontinuanceofanyDefaultorEventofDefault;(iii)anyinabilityoftheBorrowertosatisfytheconditionsprecedenttoborrowingsetforthinthisAgreementatanytimeor(iv)anyothercircumstance,happeningoreventwhatsoever,whetherornotsimilartoanyoftheforegoing.IfandtotheextentanyLendershallnothavemadesuchamountavailabletotheAdministrativeAgentortheSwingLineLender,asapplicable,by2:00P.M.theamountrequiredpursuanttoSections2.5(c)or2.5(d),asthecasemaybe,ontheBusinessDayonwhichsuchLenderreceivesnoticefromtheAdministrativeAgentofsuchpaymentordisbursement(itbeingunderstoodthatanysuchnoticereceivedafternoononanyBusinessDayshallbedeemedtohavebeenreceivedonthenextfollowingBusinessDay),suchLenderagreestopayinterestonsuchamounttotheAdministrativeAgentfortheSwingLineLender’saccountforthwithondemand,foreachdayfromthedatesuchamountwastohavebeendeliveredtotheAdministrativeAgenttothedatesuchamountispaid,atarateperannumequalto(a)forthefirstthreedaysafterdemand,theFederalFundsRatefromtimetotimeineffectand(b)thereafter,thePrimeRatefromtimetotimeineffect.

SECTION 3. INTEREST AND FEES

3.1Interest.

(a)BorrowershallpaytoAdministrativeAgent,forthebenefitofLenders,interestontheoutstandingprincipalamountoftheLoansattheInterestRate.AllinterestaccruinghereunderonandafterthedateofanyEventofDefaultorterminationhereofshallbepayableondemand.

(b)BorrowermayfromtimetotimerequestthatPrimeRateLoansbeconvertedtoLIBORateLoansorthatanyexistingLIBORateLoanscontinueforanadditionalInterestPeriod.Borrowershallgivewrittennotice(eachsuchwrittennotice,a“NoticeofConversion/Continuation”)substantiallyintheformofExhibitDortelephonicnotice(followedimmediatelybyaNoticeofConversion/Continuation)totheAdministrativeAgentofeachproposedconversionorcontinuationnotlaterthan(i)inthecaseofconversionintoPrimeRateLoans,12:00noonontheproposeddateofsuchconversionand(ii)inthecaseofconversionintoorcontinuationofLIBORateLoans,12:00noonatleastthree(3)BusinessDayspriortotheproposeddateofsuchconversionorcontinuation,specifyingineachcase:(A)theproposeddateofconversionorcontinuation,(B)theaggregateamountofLoanstobeconvertedorcontinued,(C)thetypeofLoansresultingfromtheproposedconversionorcontinuation,and(D)inthecaseofconversioninto,orcontinuationof,LIBORateLoans,thedurationoftherequestedInterest

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Periodtherefore.Subjecttothetermsandconditionscontainedherein,three(3)BusinessDaysafterreceiptbyAdministrativeAgentofsucharequestfromBorrower,suchPrimeRateLoansshallbeconvertedtoLIBORateLoansorsuchLIBORateLoansshallcontinue,asthecasemaybe,provided,that,(i)noDefaultorEventofDefaultshallexistorhaveoccurredandbecontinuing,(ii)nopartyheretoshallhavesentanynoticeofterminationofthisAgreement,(iii)BorrowershallhavecompliedwithsuchcustomaryproceduresasareestablishedbyAdministrativeAgentandspecifiedbyAdministrativeAgenttoBorrowerfromtimetotimeforrequestsbyBorrowerforLIBORateLoans,(iv)nomorethanten(10)InterestPeriodsmaybeineffectatanyonetime,(v)theaggregateamountoftheLIBORateLoansmustbeinanamountnotlessthan$2,000,000oranintegralmultipleof$100,000inexcessthereofand(vi)AdministrativeAgentandeachLendershallhavedeterminedthattheInterestPeriodorAdjustedLIBORateisavailabletoAdministrativeAgentandsuchLenderandcanbereadilydeterminedasofthedateoftherequestforsuchLIBORateLoanbyBorrower.AnyrequestbyBorrowertoconvertPrimeRateLoanstoLIBORateLoansortocontinueanyexistingLIBORateLoansshallbeirrevocable.Notwithstandinganythingtothecontrarycontainedherein,AgentsandLendersshallnotberequiredtopurchaseUnitedStatesDollardepositsintheLondoninterbankmarketorotherapplicableLIBORatemarkettofundanyLIBORateLoans,buttheprovisionshereofshallbedeemedtoapplyasifAgentsandLendershadpurchasedsuchdepositstofundtheLIBORateLoans.AdministrativeAgentwillpromptlynotifyeachLenderofitsreceiptofaNoticeofConversion/ContinuationpursuanttothisSection3.1(b)or,ifnotimelynoticeisprovidedbytheBorrower,ofthedetailsofanyautomaticconversion.

(c)AnyLIBORateLoansshallautomaticallyconverttoPrimeRateLoansuponthelastdayoftheapplicableInterestPeriod,unlessAdministrativeAgenthasreceivedandapprovedarequesttocontinuesuchLIBORateLoanatleastthree(3)BusinessDayspriortosuchlastdayinaccordancewiththetermshereof.AnyLIBORateLoansshall,atAdministrativeAgent’soption,uponnoticebyAdministrativeAgenttoBorrower,converttoPrimeRateLoansintheeventthat(i)aDefaultoranEventofDefaultshallexist,(ii)thisAgreementshallterminateornotberenewed,or(iii)theaggregateprincipalamountofthePrimeRateLoanswhichhavepreviouslybeenconvertedtoLIBORateLoansorexistingLIBORateLoanscontinued,asthecasemaybe,atthebeginningofanInterestPeriodshallatanytimeduringsuchInterestPeriodexceedeither(A)theaggregateprincipalamountoftheLoansthenoutstanding,or(B)theLoansthenavailabletoBorrowerunderSection2hereof.BorrowershallpaytoAdministrativeAgent,forthebenefitofLenders,upondemandbyAdministrativeAgent(orAdministrativeAgentmay,atitsoption,chargeanyloanaccountofBorrower)anyamountsrequiredtocompensateanyLender,theAdministrativeAgentoranyParticipantforanyloss(otherthanthelossofanticipatedprofits),costorexpensereasonablyincurredbysuchperson,asaresultoftheconversionofLIBORateLoanstoPrimeRateLoanspursuanttoanyoftheforegoing.

(d)InterestaccruinginrespectofPrimeRateLoansshallbepayablebyBorrowertoAdministrativeAgent,forthebenefitofLenders,quarterlyinarrearsnotlaterthanthelastdayofeachcalendarquarterandshallbecalculatedonthebasisofathreehundredsixty(360)dayyearandactualdayselapsed.InterestaccruinginrespectofLIBORateLoansshallbepayableonthelastdayofeachapplicableInterestPeriod,unlesstheInterestPeriodisgreaterthanthree(3)months,inwhichcaseinterestshallbepayableonthelastdayofeachthree(3)monthintervalcommencingwiththefirstdayofsuchInterestPeriod.Theinterestrateonnon-contingent

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Obligations(otherthanLIBORateLoans)shallincreaseordecreasebyanamountequaltoeachincreaseordecreaseinthePrimeRateeffectiveonthefirstdayofthemonthafteranychangeinsuchPrimeRateisannouncedbasedonthePrimeRateineffectonthelastdayofthemonthinwhichanysuchchangeoccurs.InnoeventshallchargesconstitutinginterestpayablebyBorrowertoAgentsandLendersexceedthemaximumamountortheratepermittedunderanyapplicablelaworregulation,andifanysuchpartorprovisionofthisAgreementisincontraventionofanysuchlaworregulation,suchpartorprovisionshallbedeemedamendedtoconformthereto.

3.2OtherFees.

(a)BorrowershallpaytoAdministrativeAgent,fortheaccountofLenders,monthlyasbilled,anunusedlinefeeatarateequalto0.20%perannumcalculatedupontheamountbywhichtheMaximumCredit(orintheeventthattheMaximumCredithaschangedduringameasuringperiod,theaveragedailyMaximumCreditduringsuchperiod)exceedstheaveragedailyprincipalbalanceoftheoutstandingRevolvingLoansandLetterofCreditAccommodationsduringtheimmediatelyprecedingcalendarquarter(orpartthereof),whichfeeshallbepayableonthelastdayofeachcalendarquarterinarrears.

(b)BorroweragreestopaytheAdministrativeAgentfortheaccountofeachLenderontheClosingDateaclosingfeeforeachLenderof0.10%oftheirrespectiveCommitment.Additionally,inconsiderationoftheLendersenteringintotheSecondAmendment,BorroweragreestopaytheAdministrativeAgentfortheaccountofeachLenderontheSecondAmendmentEffectiveDateaclosingfeeforeachLenderof0.10%oftheirrespectiveCommitment.

(c)BorroweragreestopaytoAdministrativeAgenttheotherfeesandamountssetforthintheFeeLetterintheamountsandatthetimesspecifiedtherein.

3.3ChangesinLawsandIncreasedCostsofLoans.

(a)Notwithstandinganythingtothecontrarycontainedherein,allLIBORateLoansofanyLendershall,uponnoticebyAdministrativeAgenttoBorrower,converttoPrimeRateLoansintheeventthat(i)anyChangeInLaworregulation(ortheinterpretationoradministrationthereof)shalleither(A)makeitunlawfulforsuchLendertomakeormaintainLIBORateLoansortocomplywiththetermshereofinconnectionwiththeLIBORateLoans,or(B)shallresultintheincreaseinthecoststosuchLenderofmakingormaintaininganyLIBORateLoansbyanamountdeemedbyAdministrativeAgenttobematerial,or(C)reducetheamountsreceivedorreceivablebysuchLenderinrespectthereof,byanamountdeemedbyAdministrativeAgenttobematerialor(ii)thecosttosuchLenderofmakingormaintaininganyLIBORateLoansshallotherwiseincreasebyanamountdeemedbyAdministrativeAgenttobematerial.BorrowershallpaytoAdministrativeAgent,fortheratablebenefitofLenders,upondemandbyAdministrativeAgent(orAdministrativeAgentmay,atitsoption,chargeanyloanaccountofBorrower)anyamountsrequiredtocompensateanyLenderforanyloss(includinglossofanticipatedprofits),costorexpenseincurredbysuchpersonasaresultoftheforegoing,including,withoutlimitation,anysuchloss,costorexpenseincurredbyreasonoftheliquidationorreemploymentofdepositsorotherfundsacquiredbysuchpersontomakeormaintainthe

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LIBORateLoansoranyportionthereof.AcertificateofAdministrativeAgentortheapplicableLendersettingforththebasisforthedeterminationofsuchamountnecessarytocompensatesuchLenderasaforesaidshallbedeliveredtoBorrowerandshallbepresumptiveevidenceofsuchamount.

(b)IfanypaymentsorprepaymentsinrespectoftheLIBORateLoansarereceivedbyeitherAgentoranyLenderotherthanonthelastdayoftheapplicableInterestPeriod(whetherpursuanttoacceleration,uponmaturityorotherwise),includinganypaymentspursuanttotheapplicationofcollectionsunderSection6.3oranyotherpaymentsmadewiththeproceedsofCollateral,oriftheBorrowerfailstoprepay,borrow,continueorconvertanyLIBORateLoanotherthanaBaseRateLoanonthedateorintheamountnotifiedbytheBorrower,BorrowershallpaytoAdministrativeAgent,upondemandbyAdministrativeAgent(orAdministrativeAgentmay,atitsoption,chargeanyloanaccountofBorrower)anyamountsrequiredtocompensateanyLenderoranyParticipantforanyadditionalloss(includinglossofanticipatedprofits),costorexpenseincurredbysuchpersonasaresultofsuchprepaymentorpayment,including,withoutlimitation,anyloss,costorexpenseincurredbyreasonoftheliquidationorreemploymentofdepositsorotherfundsacquiredbysuchpersontomakeormaintainsuchLIBORateLoansoranyportionthereof.AcertificateofAdministrativeAgentortheapplicableLendersettingforththebasisforthedeterminationofsuchamountnecessarytocompensatesuchLendershallbedeliveredtoBorrowerandshallbepresumptiveevidenceofsuchamount.

(c)IfanyLenderdeliversnoticepursuanttoSections3.3(a)and3.3(b)aboveinwhichsuchLenderassertsaclaimforcompensationwhichclaimisnotbeingassertedbytheotherLenders,Borrowermayrequirewithin90daysofreceivingsuchnotice,atitsexpense,thatsuchLenderassign,atpar,withoutrecourse(inaccordancewithSection13.6(a)hereof)allofitsinterests,rightsandobligationshereunderandundertheotherFinancingAgreements(includingallofitsCommitmentsandtheLoansatthetimeowingtoitandanyparticipationsinLoansheldbyit)toanEligibleTransfereeproposedbyBorrower(a“SubstituteLender”),provided,that(i)noEventofDefaultshallexistatthetimeofsuchassignment,(ii)suchassignmentshallnotconflictwithorviolateanylaw,ruleorregulationororderofanycourtorothergovernmentalauthority,(iii)BorrowershallhavereceivedthewrittenconsentofAdministrativeAgenttosuchassignment(whichconsentshallnotbeunreasonablywithheldordelayed)and(iv)BorrowershallhavepaidtotheassigningLenderallmoniesaccruedandowinghereundertoit(includingpursuanttoSections3.3(a)and3.3(b)above.

(d)PromptlyafteranyLenderbecomesawareofanycircumstancethatwill,initssolejudgment,resultinarequestforincreasedcompensationpursuanttoSections3.3(a)and3.3(b)above,suchLendershallnotifytheBorrowerthereof.EachLenderwillusereasonableeffortstodesignatealendingoffice(oradifferentlendingoffice),solongassuchdesignationisnotadversetosuchLenderinsuchLender’ssolejudgment,ifsuchdesignationwouldavoidtheneedto,orreducetheamountwhichwouldberequiredto,compensatesuchLenderforanyadditionalcostsincurredorreductionssuffered.FailureonthepartofanyLendertosonotifyBorrowerortodemandcompensationforanyincreasedcostsinamountsreceivedorreceivablewithrespecttoanyperiodshallnotconstituteawaiverofsuchLender’srighttodemandcompensationwithrespecttosuchperiodoranyotherperiod.

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SECTION 4. CONDITIONS PRECEDENT

4.1ConditionsPrecedenttoInitialLoansandLetterofCreditAccommodations.

EachofthefollowingisaconditionprecedenttoAgentsandLendersmakingtheinitialLoansandprovidingtheinitialLetterofCreditAccommodationshereunder:

(a)allrequisitecorporateactionandproceedingsinconnectionwiththisAgreementandtheotherFinancingAgreementsshallbesatisfactoryinformandsubstancetoAdministrativeAgent,andAdministrativeAgentshallhavereceivedallinformationandcopiesofalldocuments,includingrecordsofrequisitecorporateactionandproceedingswhichAdministrativeAgentmayhaverequestedinconnectiontherewith,suchdocumentswhererequestedbyAdministrativeAgentoritscounseltobecertifiedbyappropriatecorporateofficers(andincludingacopyofthecertificateofincorporationofBorrowercertifiedbytheSecretaryofState(orequivalentGovernmentalAuthority)whichshallsetforththesamecompletecorporatenameofBorrowerasissetforthhereinandsuchdocumentasshallsetforththeorganizationalidentificationnumberofBorrower,ifoneisissuedinitsjurisdictionofincorporation);

(b)AgentsshallhavereceivedandreviewedlienandjudgmentsearchresultsforthejurisdictionofincorporationofBorrowerandthejurisdictionofthechiefexecutiveofficeoftheBorrower,whichsearchresultsshallbeinformandsubstancesatisfactorytotheAgents;

(c)Agentsshallhavereceived,informandsubstancesatisfactorytoAgents,suchopinionlettersofcounseltoBorrowerwithrespecttotheFinancingAgreementsandsuchothermattersasAgentsmayreasonablyrequest;

(d)AdministrativeAgentshallhavereceivedevidenceofpaymentbyBorrowerofallaccruedandunpaidfees,costsandexpensestotheextentthendueandpayableontheClosingDate,togetherwithallreasonablelegalexpensesandreasonableattorneys’feesincurredbytheAgents,plussuchadditionalamountsasshallconstitutetheAgents’reasonableestimateofreasonablelegalexpensesandreasonableattorneys’feesincurredortobeincurredbytheAgentsthroughtheclosingproceedings(providedthatsuchestimateshallnotthereafterprecludefinalsettlingofaccountsbetweenBorrowerandtheAgents);

(e)theagreements,instrumentsanddocumentssetforthontheclosingchecklistattachedasExhibitEheretoshallhavebeendulyexecutedanddeliveredtoAdministrativeAgent,informandsubstancesatisfactorytoAdministrativeAgent.

4.2ConditionsPrecedenttoAllLoansandLetterofCreditAccommodations.

EachofthefollowingisanadditionalconditionprecedenttoAgentsandLendersmakingLoansand/orprovidingLetterofCreditAccommodationstoBorrower,includingtheinitialLoansandLetterofCreditAccommodationsandanyfutureLoansandLetterofCreditAccommodations:

(a)allrepresentationsandwarrantiescontainedhereinandintheotherFinancingAgreementsshallbetrueandcorrectinallmaterialrespectswiththesameeffectasthoughsuchrepresentationsandwarrantieshadbeenmadeonandasofthedateofthemakingof

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eachsuchLoanorprovidingeachsuchLetterofCreditAccommodationandaftergivingeffectthereto,excepttotheextentthatsuchrepresentationsandwarrantiesexpresslyrelatesolelytoanearlierdate(inwhichcasesuchrepresentationsandwarrantiesshallhavebeentrueandaccurateonandasofsuchearlierdate);

(b)nolaw,regulation,order,judgmentordecreeofanyGovernmentalAuthorityshallexist,andnoaction,suit,investigation,litigationorproceedingshallbependingorthreatenedinanycourtorbeforeanyarbitratororGovernmentalAuthority,which(i)purportstoenjoin,prohibit,restrainorotherwiseaffect(A)themakingoftheLoansorprovidingtheLetterofCreditAccommodations,or(B)theconsummationofthetransactionscontemplatedpursuanttothetermshereofortheotherFinancingAgreementsor(ii)hasorcouldreasonablybeexpectedtohaveamaterialadverseeffectontheassets,businessorprospectsofBorrowerorwouldimpairtheabilityofBorrowertoperformitsobligationshereunderorunderanyoftheotherFinancingAgreementsorofeitherAgentoranyLendertoenforceanyObligationsorrealizeuponanyoftheCollateral;and

(c)noDefaultorEventofDefaultshallexistorhaveoccurredandbecontinuingonandasofthedateofthemakingofsuchLoanorprovidingeachsuchLetterofCreditAccommodationandaftergivingeffectthereto.

SECTION 5. GRANT AND PERFECTION OF SECURITY INTEREST

5.1GrantofSecurityInterest.

Borrowerherebyconfirmsthat,pursuanttotheExistingLoanAgreement,itgrantedtoCollateralAgent,foritselfandtheratablebenefitofLenders,acontinuingsecurityinterestin,alienupon,andarightofsetoffagainst,andassignedtoCollateralAgent,foritselfandtheratablebenefitofLenders,assecurity,theCollateral(ashereinafterdefined).TosecurepaymentandperformanceofallObligations,Borrowerhereby(i)ratifies,reaffirmsandrestatessuchgrantandassignmentand(ii)furthermoregrantstoCollateralAgent,foritselfandtheratablebenefitofLenders,acontinuingsecurityinterestin,alienupon,andarightofsetoffagainst,andassignstoCollateralAgent,foritselfandtheratablebenefitofLenders,assecurity,allpersonalandrealpropertyandfixturesandinterestsinpropertyandfixturesofBorrower,whethernowownedorhereafteracquiredorexisting,andwhereverlocated(togetherwithallothercollateralsecurityfortheObligationsatanytimegrantedtoorheldoracquiredbyeitherAgentoranyLender,collectively,the“Collateral”),including:

(a)allAccounts;

(b)allgeneralintangibles,including,withoutlimitation,allIntellectualProperty;

(c)allgoods,including,withoutlimitation,InventoryandEquipment;

(d)allchattelpaper(includingalltangibleandelectronicchattelpaper);

(e)allinstruments(includingallpromissorynotes);

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(f)alldocuments;

(g)alldepositaccounts;

(h)alllettersofcredit,banker’sacceptancesandsimilarinstrumentsandincludingallletter-of-creditrights;

(i)allsupportingobligationsandallpresentandfutureliens,securityinterests,rights,remedies,titleandinterestin,toandinrespectofReceivablesandotherCollateral,including(i)rightsandremediesunderorrelatingtoguaranties,contractsofsuretyship,lettersofcreditandcreditandotherinsurancerelatedtotheCollateral,(ii)rightsofstoppageintransit,replevin,repossession,reclamationandotherrightsandremediesofanunpaidvendor,lienororsecuredparty,(iii)goodsdescribedininvoices,documents,creditcardsalesdrafts,creditcardsalesslipsorchargeslipsorreceiptsandotherformsofstorereceipts,contractsorinstrumentswithrespectto,orotherwiserepresentingorevidencing,ReceivablesorotherCollateral,includingreturned,repossessedandreclaimedgoods,and(iv)depositsbyandpropertyofaccountdebtorsorotherpersonssecuringtheobligationsofaccountdebtors;

(j)all(i)investmentproperty(includingsecurities,whethercertificatedoruncertificated,securitiesaccounts,securityentitlements,commoditycontractsorcommodityaccounts)and(ii)monies,creditbalances,depositsandotherpropertyofBorrowernoworhereafterheldorreceivedbyorintransittoeitherAgent,anyLenderortheirAffiliatesoratanyotherdepositoryorotherinstitutionfromorfortheaccountofBorrower,whetherforsafekeeping,pledge,custody,transmission,collectionorotherwise;

(k)allcommercialtortclaims,including,withoutlimitation,thoseidentifiedintheInformationCertificate;

(l)totheextentnototherwisedescribedabove,allReceivables;

(m)allRecords;and

(n)allproductsandproceedsoftheforegoing,inanyform,includinginsuranceproceedsandallclaimsagainstthirdpartiesforlossordamagetoordestructionoforotherinvoluntaryconversionofanykindornatureofanyoralloftheotherCollateral.

5.2ExceptionfromSecurityInterest.

(a)NotwithstandinganythingtothecontrarysetforthinSection5.1above,thetypesoritemsofCollateraldescribedinsuchSectionshallnotincludeanyrightsorinterestsinanycontract,lease,permit,license,charterorlicenseagreementcoveringrealorpersonalproperty,assuch,ifunderthetermsofsuchcontract,lease,permit,license,charterorlicenseagreement,orapplicablelawwithrespectthereto,thevalidgrantofasecurityinterestorlienthereintoCollateralAgentisprohibitedandsuchprohibitionhasnotbeenorisnotwaivedortheconsentoftheotherpartytosuchcontract,lease,permit,license,charterorlicenseagreementhasnotbeenorisnototherwiseobtainedorunderapplicablelawsuchprohibitioncannotbewaived;provided,that,theforegoingexclusionshallinnowaybeconstrued(a)toapplyifanysuchprohibitionisunenforceableundertheUCCorotherapplicablelawor(b)soastolimit,

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impairorotherwiseaffectCollateralAgent’sunconditionalcontinuingsecurityinterestsinandliensuponanyrightsorinterestsofBorrowerinortomoniesdueortobecomedueunderanysuchcontract,lease,permit,license,charterorlicenseagreement(includinganyAccounts).

(b)NotwithstandinganythingtothecontrarycontainedinSection5.1above,theCollateralshallnotincludethetrademark“StudioGear”totheextentsuchtrademarkislicensedtoStudioGearCosmetics,Inc.pursuanttotheLicenseandDistributionAgreement,datedMay,1996,betweenBorrowerandStudioGearCosmetics,Inc.

(c)NotwithstandinganythingtothecontrarycontainedinSection5.1above,thetypesoritemsofCollateraldescribedinsuchSectionshallnotincludeanyEquipmentwhichis,oratthetimeofBorrower’sacquisitionthereofshallbe,subjecttoapurchasemoneymortgageorotherpurchasemoneylienorsecurityinterest(includingcapitalizedorfinanceleases)permittedunderSection9.8hereofif:(a)thevalidgrantofasecurityinterestorlientoCollateralAgentinsuchitemofEquipmentisprohibitedbythetermsoftheagreementbetweenBorrowerandtheholderofsuchpurchasemoneymortgageorotherpurchasemoneylienorsecurityinterestorunderapplicablelawandsuchprohibitionhasnotbeenorisnotwaived,ortheconsentoftheholderofthepurchasemoneymortgageorotherpurchasemoneylienorsecurityinteresthasnotbeenorisnototherwiseobtained,orunderapplicablelawsuchprohibitioncannotbewaivedand(b)thepurchasemoneymortgageorotherpurchasemoneylienorsecurityinterestonsuchitemofEquipmentisorshallbecomevalidandperfected.

(d)NotwithstandinganythingtothecontrarycontainedinSection5.1above,theCollateralshallnotincludetheassetsorCapitalStockof(x)anySubsidiarythatisacontrolledforeigncorporation(asdefinedunderSection957oftheCode(each,a“CFC”))exceptforCapitalStockrepresenting(i)65%ofthevotingCapitalStockofsuchSubsidiaryand(ii)100%ofthenon-votingCapitalStockofsuchSubsidiaryand(y)anyotherSubsidiarytotheextent(A)theinclusionofsuchassetsorCapitalStockwouldresultinanyadversetaxconsequences(including,withoutlimitation,asaresultoftheoperationofSection956oftheCodeoranysimilarlaworregulationinanyapplicablejurisdiction)toBorroweroranyofitsAffiliatesand(B)thesoleassetsofsuchSubsidiaryconsistsofCapitalStockinoneormoreCFCs.

5.3PerfectionofSecurityInterest

(a)BorrowerirrevocablyandunconditionallyauthorizesCollateralAgent(oritsagent)tofileatanytimeandfromtimetotimesuchfinancingstatementswithrespecttotheCollateralnamingCollateralAgentoritsdesigneeasthesecuredpartyandBorrowerasdebtor,asCollateralAgentmayrequire,andincludinganyotherinformationwithrespecttoBorrowerorotherwiserequiredbypart5ofArticle9oftheUniformCommercialCodeofsuchjurisdictionasCollateralAgentmaydetermine,togetherwithanyamendmentandcontinuationswithrespectthereto,whichauthorizationshallapplytoallfinancingstatementsfiledon,priortoorafterthedatehereof.BorrowerherebyratifiesandapprovesallfinancingstatementsnamingCollateralAgentoritsdesigneeassecuredpartyandBorrowerasdebtorwithrespecttotheCollateral(andanyamendmentswithrespecttosuchfinancingstatements)filedbyoronbehalfofCollateralAgentpriortothedatehereofandratifiesandconfirmstheauthorizationofCollateralAgenttofilesuchfinancingstatements(andamendments,ifany).BorrowerherebyauthorizesCollateral

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AgenttoadoptonbehalfofBorroweranysymbolrequiredforauthenticatinganyelectronicfiling.IntheeventthatthedescriptionofthecollateralinanyfinancingstatementnamingCollateralAgentoritsdesigneeasthesecuredpartyandBorrowerasdebtorincludesassetsandpropertiesofBorrowerthatdonotatanytimeconstituteCollateral,whetherhereunder,underanyoftheotherFinancingAgreementsorotherwise,thefilingofsuchfinancingstatementshallnonethelessbedeemedauthorizedbyBorrowertotheextentoftheCollateralincludedinsuchdescriptionanditshallnotrenderthefinancingstatementineffectiveastoanyoftheCollateralorotherwiseaffectthefinancingstatementasitappliestoanyoftheCollateral.InnoeventshallBorroweratanytimefile,orpermitorcausetobefiled,anycorrectionstatementorterminationstatementwithrespecttoanyfinancingstatement(oramendmentorcontinuationwithrespectthereto)namingCollateralAgentoritsdesigneeassecuredpartyandBorrowerasdebtor.

(b)Borrowerdoesnothaveanychattelpaper(whethertangibleorelectronic)orinstrumentsasofthedatehereof,exceptassetforthintheInformationCertificate.IntheeventthatBorrowershallbeentitledtoorshallreceiveanychattelpaperorinstrumentafterthedatehereof,BorrowershallpromptlynotifytheAgentsthereofinwriting.PromptlyuponthereceiptthereofbyoronbehalfofBorrower(includingbyanyagentorrepresentative),Borrowershalldeliver,orcausetobedeliveredtoCollateralAgent,alltangiblechattelpaperandinstrumentsthatBorrowerormayatanytimeacquire,accompaniedbysuchinstrumentsoftransferorassignmentdulyexecutedinblankasCollateralAgentmayfromtimetotimespecify,ineachcaseexceptastheAgentsmayotherwiseagree.AttheAgents’option,Borrowershall,orCollateralAgentmayatanytimeonbehalfofBorrower,causetheoriginalofanysuchinstrumentorchattelpapertobeconspicuouslymarkedinaformandmanneracceptabletotheAgentswiththefollowinglegendreferringtochattelpaperorinstrumentsasapplicable:“This[chattelpaper][instrument]issubjecttothesecurityinterestofWellsFargoRetailFinanceLLC,asCollateralAgent,andanysale,transfer,assignmentorencumbranceofthis[chattelpaper][instrument]violatestherightsofsuchsecuredparty.”

(c)IntheeventthatBorrowershallatanytimeholdoracquireaninterestinanyelectronicchattelpaperorany“transferablerecord”(assuchtermisdefinedinSection201oftheFederalElectronicSignaturesinGlobalandNationalCommerceActorinSection16oftheUniformElectronicTransactionsActasineffectinanyrelevantjurisdiction),BorrowershallpromptlynotifytheAgentsthereofinwriting.PromptlyupontheAgents’request,Borrowershalltake,orcausetobetaken,suchactionsastheAgentsmayreasonablyrequesttogiveCollateralAgentcontrolofsuchelectronicchattelpaperunderSection9-105oftheUCCandcontrolofsuchtransferablerecordunderSection201oftheFederalElectronicSignaturesinGlobalandNationalCommerceActor,asthecasemaybe,Section16oftheUniformElectronicTransactionsAct,asineffectinsuchjurisdiction.

(d)Borrowerdoesnothaveanydepositaccountsasofthedatehereof,exceptassetforthonSchedule6.3totheInformationCertificate.BorrowershalldirectitscreditcardprocessorstodepositanyandallpaymentsandotheramountsatanytimeowedbysuchcreditcardprocessorsintotheconcentrationaccountmaintainedwithJPMorganChaseBank,N.A.whichissubjecttotheJPMControlAgreement.Withinthirty(30)daysaftertheoccurrenceandduringthecontinuanceofaControlEvent,Borrowershallexecuteanddeliver(i)DepositAccountControlAgreementswithrespecttotheBlockedAccountsand(ii)InvestmentPropertyControlAgreementinrespectofanyinvestmentaccountsorsecuritiesaccountscontainingassets

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withafairmarketvalueinexcessof$500,000intheaggregate,ineachcaseastheAdministrativeAgentmayreasonablyrequirefromtimetotime.Inaddition,Borrowershallnot,directlyorindirectly,afterthedatehereofopen,establishormaintainanydepositaccountunlesseachofthefollowingconditionsissatisfied:(i)CollateralAgentshallhavereceivednotlessthanfive(5)BusinessDayspriorwrittennoticeoftheintentionofBorrowertoopenorestablishsuchaccountwhichnoticeshallspecifyinreasonabledetailandspecificityacceptabletotheAgentsthenameoftheaccount,theowneroftheaccount,thenameandaddressofthebankatwhichsuchaccountistobeopenedorestablished,theindividualatsuchbankwithwhomBorrowerisdealingandthepurposeoftheaccount,(ii)thebankwheresuchaccountisopenedormaintainedshallbeacceptabletotheAgents,and(iii)onorbeforetheopeningofsuchdepositaccount,BorrowershallastheAgentsmayspecifyeither(A)ifthenrequiredpursuanttothetermsofthissubsection(d)above,delivertoCollateralAgentaDepositAccountControlAgreementwithrespecttosuchdepositaccountdulyauthorized,executedanddeliveredbyBorrowerandthebankatwhichsuchdepositaccountisopenedandmaintainedor(B)arrangeforCollateralAgenttobecomethecustomerofthebankwithrespecttothedepositaccountontermsandconditionsacceptabletotheAgents.Notwithstandinganythingtothecontrarycontainedherein,thetermsofthissubsection(d)shallnotapplytoStoreBankAccountsortodepositaccountsspecificallyandexclusivelyusedforpayroll,taxes,otherobligationstothirdpartiesorotheremployeewageandbenefitpaymentstoorforthebenefitofBorrower’ssalariedemployees.

(e)Borrowerdoesnotownorhold,directlyorindirectly,beneficiallyorasrecordownerorboth,anyinvestmentproperty,asofthedatehereof,orhaveanyinvestmentaccount,securitiesaccount,commodityaccountorothersimilaraccountwithanybankorotherfinancialinstitutionorothersecuritiesintermediaryorcommodityintermediaryasofthedatehereof,ineachcaseexceptassetforthintheInformationCertificate.

(i)IntheeventthatBorrowershallbeentitledtoorshallatanytimeafterthedatehereofholdoracquireanycertificatedsecurities,Borrowershallpromptlyendorse,assignanddeliverthesametoCollateralAgent,foritselfandtheratablebenefitofLenders.accompaniedbysuchinstrumentsoftransferorassignmentdulyexecutedinblankasCollateralAgentmayfromtimetotimespecify.Ifanysecurities,noworhereafteracquiredbyBorrowerareuncertificatedandareissuedtoBorroweroritsnomineedirectlybytheissuerthereof,BorrowershallimmediatelynotifytheAgentsthereofandshallastheAgentsmayspecify,either(A)causetheissuertoagreetocomplywithinstructionsfromCollateralAgentastosuchsecurities,withoutfurtherconsentofBorrowerorsuchnominee,or(B)arrangeforCollateralAgent,foritselfandtheratablebenefitofLenders,tobecometheregisteredownerofthesecurities.

(ii)Borrowershallnot,directlyorindirectly,afterthedatehereofopen,establishormaintainanyinvestmentaccount,securitiesaccount,commodityaccountoranyothersimilaraccount(otherthanadepositaccount)withanysecuritiesintermediaryorcommodityintermediaryunlesseachofthefollowingconditionsissatisfied:(A)theAgentsshallhavereceivednotlessthanfive(5)BusinessDayspriorwrittennoticeoftheintentionofBorrowertoopenorestablishsuchaccountwhichnoticeshallspecifyinreasonabledetailand

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specificityacceptabletotheAgentsthenameoftheaccount,theowneroftheaccount,thenameandaddressofthesecuritiesintermediaryorcommodityintermediaryatwhichsuchaccountistobeopenedorestablished,theindividualatsuchintermediarywithwhomBorrowerisdealingandthepurposeoftheaccount,(B)thesecuritiesintermediaryorcommodityintermediary(asthecasemaybe)wheresuchaccountisopenedormaintainedshallbeacceptabletotheAgents,and(C)totheextentrequiredbySection5.3(d),onorbeforetheopeningofsuchinvestmentaccount,securitiesaccountorothersimilaraccountwithasecuritiesintermediaryorcommodityintermediary,BorrowershallastheAgentsmayspecifyeither(1)executeanddeliver,andcausetobeexecutedanddeliveredtoCollateralAgent,anInvestmentPropertyControlAgreementwithrespecttheretodulyauthorized,executedanddeliveredbyBorrowerandsuchsecuritiesintermediaryorcommodityintermediaryor(2)arrangeforCollateralAgent,foritselfandfortheratablebenefitofLenders,tobecometheentitlementholderwithrespecttosuchinvestmentpropertyontermsandconditionsacceptabletotheAgents.

(f)Borrowerisnotthebeneficiaryorotherwiseentitledtoanyrighttopaymentunderanyletterofcredit,banker’sacceptanceorsimilarinstrumentasofthedatehereof,exceptassetforthintheInformationCertificate.IntheeventthatBorrowershallbeentitledtoorshallreceiveanyrighttopaymentunderanyletterofcredit,banker’sacceptanceoranysimilarinstrument,whetherasbeneficiarythereoforotherwiseafterthedatehereof,BorrowershallpromptlynotifytheAgentsthereofinwriting.Borrowershallimmediately,astheAgentsmayspecify,either(i)deliver,orcausetobedeliveredtoCollateralAgent,withrespecttoanysuchletterofcredit,banker’sacceptanceorsimilarinstrument,thewrittenagreementoftheissuerandanyothernominatedpersonobligatedtomakeanypaymentinrespectthereof(includinganyconfirmingornegotiatingbank),informandsubstancesatisfactorytotheAgents,consentingtotheassignmentoftheproceedsoftheletterofcredittoCollateralAgent,foritselfandfortheratablebenefitofLenders,byBorrowerandagreeingtomakeallpaymentsthereondirectlytoCollateralAgent,foritselfandfortheratablebenefitofLenders,orasCollateralAgentmayotherwisedirector(ii)causeCollateralAgent,foritselfandfortheratablebenefitofLenders,tobecome,atBorrower’sexpense,thetransfereebeneficiaryoftheletterofcredit,banker’sacceptanceorsimilarinstrument(asthecasemaybe).

(g)Borrowerhasnocommercialtortclaimsasofthedatehereof,exceptassetforthintheInformationCertificate.IntheeventthatBorrowershallatanytimeafterthedatehereofassertanycommercialtortclaimsinrespectofwhichtheexpectednetrecoveryexceeds$250,000,BorrowershallpromptlynotifytheAgentsthereofinwriting,whichnoticeshall(i)setforthinreasonabledetailthebasisforandnatureofsuchcommercialtortclaimand(ii)ifrequestedbyanyAgent,includetheexpressgrantbyBorrowertoCollateralAgent,foritselfandtheratablebenefitofLenders,ofasecurityinterestinsuchcommercialtortclaim(andtheproceedsthereof).Intheeventthatsuchnoticedoesnotincludesuchgrantofasecurityinterest,thesendingthereofbyBorrowertotheAgentsshallbedeemedtoconstitutesuchgranttoCollateralAgent,foritselfandfortheratablebenefitofLenders.Uponthesendingofsuchnotice,anycommercialtortclaimdescribedthereinshallconstitutepartoftheCollateralandshallbedeemedincludedtherein.WithoutlimitingtheauthorizationofCollateralAgentprovidedinSection5.3(a)hereoforotherwisearisingbytheexecutionbyBorrowerofthis

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AgreementoranyoftheotherFinancingAgreements,CollateralAgentisherebyirrevocablyauthorizedfromtimetotimeandatanytimetofilesuchfinancingstatementsnamingCollateralAgentoritsdesigneeassecuredpartyandBorrowerasdebtor,oranyamendmentstoanyfinancingstatements,coveringanysuchcommercialtortclaimasCollateral.Inaddition,BorrowershallpromptlyupontheAgents’request,executeanddeliver,orcausetobeexecutedanddelivered,toCollateralAgentsuchotheragreements,documentsandinstrumentsastheAgentsmayrequireinconnectionwithsuchcommercialtortclaim.

(h)Borrowerdoesnothaveanygoods,documentsoftitleorotherCollateralinthecustody,controlorpossessionofathirdpartyasofthedatehereof,exceptassetforthintheInformationCertificateandexceptforgoodslocatedintheUnitedStatesintransittoalocationofBorrowerpermittedhereinintheordinarycourseofbusinessofBorrowerinthepossessionofthecarriertransportingsuchgoods.Intheeventthatanygoods,documentsofthetitleorotherCollateralareatanytimeafterthedatehereofinthecustody,controlorpossessionofanyotherpersonnotreferredtointheInformationCertificateorsuchcarriers,BorrowershallpromptlynotifytheAgentsthereofinwriting.PromptlyupontheAgents’request,BorrowershalldelivertoCollateralAgentaCollateralAccessAgreementdulyauthorized,executedanddeliveredbysuchpersonandBorrower.

(i)BorrowershalltakeanyotheractionsreasonablyrequestedbytheAgentsfromtimetotimetocausetheattachment,perfectionandfirstpriorityof,andtheabilityofCollateralAgenttoenforce,thesecurityinterestofCollateralAgentinanyandalloftheCollaterallocatedintheUnitedStates,CanadaorPuertoRico,including,withoutlimitation,(i)executing,deliveringand,whereappropriate,filingfinancingstatementsandamendmentsrelatingtheretoundertheUCCorotherapplicablelaw,totheextent,ifany,thatBorrower’ssignaturethereonisrequiredtherefore,(ii)causingCollateralAgent’snametobenotedassecuredpartyonanycertificateoftitleforatitledgoodifsuchnotationisaconditiontoattachment,perfectionorpriorityof,orabilityofCollateralAgenttoenforce,thesecurityinterestofCollateralAgentinsuchCollateral,(iii)complyingwithanyprovisionofanystatute,regulationortreatyoftheUnitedStates,CanadaorPuertoRicoastoanyCollateralifcompliancewithsuchprovisionisaconditiontoattachment,perfectionorpriorityof,orabilityofCollateralAgenttoenforce,thesecurityinterestofCollateralAgentinsuchCollateral,(iv)obtainingtheconsentsandapprovalsofanyGovernmentalAuthorityorthirdparty,including,withoutlimitation,anyconsentofanylicensor,lessororotherpersonobligatedonCollateral,andtakingallactionsrequiredbyanyearlierversionsoftheUCCorbyotherlaw,asapplicableinanyrelevantjurisdiction.

SECTION 6. COLLECTION AND ADMINISTRATION

6.1Borrower’sLoanAccount.

AdministrativeAgentshallmaintainoneormoreloanaccount(s)onitsbooksinwhichshallberecorded(a)allLoans,LetterofCreditAccommodationsandotherObligations,(b)allpaymentsmadebyoronbehalfofBorrowerand(c)allotherappropriatedebitsandcreditsasprovidedinthisAgreement,includingfees,charges,costs,expensesandinterest.Allentriesintheloanaccount(s)shallbemadeinaccordancewithAdministrativeAgent’scustomarypracticesasineffectfromtimetotime.TheRevolvingLoansshallbeevidencedbytheloan

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accountsmaintainedbyAdministrativeAgent;providedthatifanyLendersorequests,theBorrowerwillexecuteapromissorynoteinfavorofsuchLenderfurtherevidencingsuchLender’sCommitment.AdministrativeAgentisauthorizedbyallthepartiesheretotomakeallrevisionsandmodificationstoScheduleIheretoatanytimetoreflectthethencurrentCommitmentsofeachLender.

6.2Statements.

AdministrativeAgentshallrendertoBorrowereachmonthastatementsettingforththebalanceintheBorrower’sloanaccount(s)maintainedbyAdministrativeAgentforBorrowerpursuanttotheprovisionsofthisAgreement,includingprincipal,interest,fees,costsandexpenses.EachsuchstatementshallbesubjecttosubsequentadjustmentbyAdministrativeAgentbutshall,absentmanifesterrorsoromissions,beconsideredcorrectanddeemedacceptedbyBorrowerandconclusivelybindinguponBorrowerasanaccountstatedexcepttotheextentthatAdministrativeAgentreceivesawrittennoticefromBorrowerofanyspecificexceptionsofBorrowertheretowithinforty-five(45)daysafterthedatesuchstatementhasbeenmailedbyAdministrativeAgent.UntilsuchtimeasAdministrativeAgentshallhaverenderedtoBorrowerawrittenstatementasprovidedabove,thebalanceinBorrower’sloanaccount(s)shallbepresumptiveevidenceoftheamountsdueandowingtoAdministrativeAgentandLendersbyBorrower.

6.3CollectionofAccounts.

(a)Borrowershallestablishandmaintain,atitsexpense,depositaccountarrangementsandmerchantpaymentarrangementswiththebankssetforthonSchedule6.3totheInformationCertificateandafterpriorwrittennoticetoAdministrativeAgent,andsubjecttoSection5.3(d),suchotherbanksasBorrowermayhereafterselectasareacceptabletoAdministrativeAgent.ThebankssetforthonSchedule6.3totheInformationCertificateconstituteallofthebankswithwhomBorrowerhasdepositaccountarrangementsandmerchantpaymentarrangementsasofthedatehereofandsuchScheduleidentifieseachofthedepositaccountsatsuchbankstoaretailstorelocationofBorrowerorotherwisedescribesthenatureoftheuseofsuchdepositaccountbyBorrower.

(i)BorrowershalldepositallproceedsfromsalesofInventoryineveryform,including,withoutlimitation,cash,checks,creditcardsalesdrafts,creditcardsalesorchargeslipsorreceiptsandotherformsofstorereceipts,fromeachretailstorelocationofBorroweroneachBusinessDayintothedepositaccountsofBorrowerusedsolelyforsuchpurposeandidentifiedtoeachretailstorelocationassetforthonSchedule6.3totheInformationCertificate(togetherwithanyotherdepositaccountsatanytimeestablishedorusedbyBorrowerforreceivingsuchstorereceiptsfromanyretailstorelocation,collectively,the“StoreBankAccounts”)orasotherwiseprovidedinSection6.3(a)(iii)below.Borrowershallirrevocablyauthorizeanddirect,andshalluseitsbesteffortstocause,allavailablefundsdepositedintotheStoreBankAccountstobesentbywiretransferorbytransferusingtheautomatedclearinghousenetwork(“ACHtransfer”)onadailybasis,andallotherproceedsofCollateraltobesentbywiretransferorbyACHtransfer,totheBlockedAccountasprovidedinSection6.3(a)(ii)below

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(exceptnominalamountswhicharerequiredtobemaintainedinsuchStoreBankAccountsunderthetermsofBorrower’sarrangementswiththebankatwhichsuchStoreBankAccountsaremaintained,nottoexceed$10,000foreachindividualstoreutilizingsuchStoreBankAccount).Borrowershallirrevocablyauthorizeanddirectinwriting,informandsubstancesatisfactorytoAdministrativeAgent,eachofthebanksintowhichproceedsfromsalesofInventoryfromeachretailstorelocationofBorrowerareatanytimedepositedasprovidedaboveandallofthebanksinwhichBorrower’sconcentrationaccountsaremaintainedtosendallavailablefundsdepositedinsuchaccount(otherthanthenominalamountsreferredtoabove)bywiretransferorACHtransferonadailybasistotheBlockedAccount.Suchauthorizationanddirectionshallnotberescinded,revokedormodifiedwithoutthepriorwrittenconsentofAdministrativeAgent.IntheeventanyofsuchbanksfailstosendsuchfundstotheBlockedAccountasprovidedherein,Borrowershallpursueallofitsrightsandremediesasaresultofsuchfailure.Notwithstandingtheforegoing,forthoseStoreBankAccountsthattransferfundsdailybyACHtransferinitiatedbyBorrower’sstoremanagementnotifyingathirdpartyprocessor,Borrowershallirrevocablyauthorizeanddirectinwriting,informandsubstancesatisfactorytoAdministrativeAgent,thethirdpartyprocessorthatestablishestheroutingandexecutestheACHtransfertosendfundsonlytotheBlockedAccountsandtoagreetodosoatanytimeuponAdministrativeAgent’srequestandAdministrativeAgentshallreceiveanagreementfromsuchthirdpartyprocessorconfirmingitsagreementtodoso.Suchauthorizationanddirectionshallnotberescinded,revokedormodifiedwithoutthepriorwrittenconsentofAdministrativeAgent.

(ii)Borrowershallestablishandmaintain,atitsexpense,oneormoredepositaccountswithsuchbanksasareacceptabletoAdministrativeAgent(the“BlockedAccounts”)intowhichBorrowershallpromptlyeithercauseallamountsondepositintheStoreBankAccountstobesentasprovidedinSection6.3(a)(i)aboveorshallitselfdepositorcausetobedepositedallproceedsfromsalesofInventory,allamountspayabletoBorrowerfromCreditCardIssuersandCreditCardProcessorsandallotherproceedsofCollateral.TotheextentrequiredbySection5.3(d)hereof,thebanksatwhichtheBlockedAccountsareestablishedshallenterintoanagreement,informandsubstancesatisfactorytoAdministrativeAgent,providingthatallitemsreceivedordepositedintheBlockedAccountsarethepropertyofBorrowersubjecttothelienandsecurityinterestofCollateralAgent,forthebenefitofAgentsandLenders,thatthedepositorybankhasnolienupon,orrightofsetoffagainst,theBlockedAccounts,theitemsreceivedfordeposittherein,orthefundsfromtimetotimeondepositthereinandthatuponnotice(an“ActivationNotice”)fromeitherAgentatanytimethatanEventofDefaulthasoccurredandiscontinuingorthatExcessAvailabilityislessthanthirtypercent(30%)ofthelesserof(1)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(2)theMaximumCredit,thedepositorybankwillwire,orotherwisetransfer,immediatelyavailablefunds,on

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adailybasis,allfundsreceivedordepositedintotheBlockedAccountstosuchbankaccountofAdministrativeAgentasAdministrativeAgentmayfromtimetotimedesignateforsuchpurpose(“PaymentAccount”),whichagreements,onceenteredinto,shallremainineffectuntilthisAgreementisterminated.BorroweragreesthatallamountsdepositedinsuchBlockedAccountsorintheStoreBankAccountsorotherfundsreceivedandcollectedbyeitherAgent,whetherasproceedsofinventoryorotherCollateralorotherwiseshall,totheextentthatthereareObligationsoutstandingandanActivationNoticehasbeendelivered,bethepropertyofCollateralAgent,forthebenefitofAgentsandLenders.PriortotheoccurrenceofanEventofDefault,amountsinthePaymentAccountinexcessoftheLoanbalance(includinganyrequiredcashcollateralizationofLetterofCreditAccommodations)andotherObligationsthatarethendueandnotpaidbytheBorrowershallbepromptlyreturnedtoadisbursementaccountdesignatedbytheBorrower.AnActivationNotice,oncefurnished,shallremainineffect(i)solongassuchEventofDefaulthasnotbeencuredorwaived,and/or(ii)iftheActivationNoticewasfurnishedasaresultoftheBorrowers’failuretoachieveExcessAvailabilityasrequiredabove,untilExcessAvailabilityhasexceededthirtypercent(30%)ofthelesserof(1)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(2)theMaximumCreditforsixty(60)consecutivedays,inwhichcasetheAgentswillrescindtheActivationNotice;providedthatnosuchrescissionshallberequiredtobefurnished(evenifanEventofDefaultisnolongercontinuingand/orExcessAvailabilityexceedstherequiredamountforsixty(60)consecutivedays)afteranActivationNoticehasbeenrescindedonceinanytwelveconsecutivemonths.AtanytimethattheAgentsrescindtheActivationNoticeasprovidedabove,theBlockedAccountsshallremainineffectandsuchterminationshallinnowaylimit,waiveordelaytheobligationoftheBorrower,ortherightoftheAgents,toagainrequireallfundsbetransferredtothePaymentAccountupontheBorrower’sfailuretoachieveExcessAvailabilityintheamountsrequiredherein.

(iii)TotheextentBorrowermayelect,atBorrower’soption,tousetheArmoredCarCompaniestopickupandcollectcashorotherproceedsofsalesofInventoryfromaretailstorelocation,BorrowershalldelivertotheArmoredCarCompaniesallproceedsfromsalesofInventoryandotherCollateralfromsuchretailstorelocationofBorrower.BorrowershallirrevocablyauthorizeanddirecttheArmoredCarCompaniesinwriting,consistentwithpastpracticesdescribedtoAdministrativeAgent,toremitallsuchproceedsatanytimereceivedbytheArmoredCarCompaniesonlytothedepositaccountidentifiedonSchedule6.3totheInformationCertificateorotherStoreBankAccountsforsuchpurposeandthereaftertotheBlockedAccounts.SuchauthorizationanddirectiontotheArmoredCarCompaniesshallnotberescinded,revokedormodifiedwithoutthepriorwrittenconsentofAdministrativeAgentunlessBorrowershallceasetodobusinesswithsuchArmoredCarCompany,providedthatuponanysuchterminationtheArmoredCarCompanyshallnotbereleasedfromitsobligationtomakepaymentsforamountspreviouslydeliveredtosuchArmoredCarCompany.

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Asofthedatehereof,theonlyArmoredCarCompaniesusedbyBorrowerarethoseidentifiedinSchedule6.3totheInformationCertificate.BorrowershallnotuseanyotherArmoredCarCompaniesforanypurposeunlesstheaforesaidarrangementsareinplacewithsuchotherArmoredCarCompany.UponrequestoftheAdministrativeAgent,BorrowerwillpromptlyeitherobtainandprovideanagreementinwritingfromsuchotherArmoredCarCompanies,informandsubstancesatisfactorytoAdministrativeAgent,dulyauthorized,executedanddeliveredbysuchotherArmoredCarCompany,orceasedoingbusinesswithsuchArmoredCarCompany.

(b)ForpurposesofcalculatinginterestontheObligationsandtheamountofLoansavailabletoBorrower,paymentsorotherfundsreceivedinthePaymentAccountshallbeappliedtotheObligations(conditionaluponfinalcollection)promptlyandinaccordancewithitscustomarydepositorypracticeassuchamountsbecomeavailable.

(c)Borrowerandallofitssubsidiaries,shareholders,directors,employees,agentsorotherAffiliatesshall,actingastrusteeforCollateralAgent,receive,asthepropertyofBorrowersubjecttothelienandsecurityinterestofCollateralAgent,forthebenefitofAgentsandLenders,anycash,checks,creditcardsalesdrafts,creditcardsalesorchargeslipsorreceipts,notes,draftsandallformsofstorereceiptsoranyotherpaymentrelatingtoand/orproceedsofAccountsorotherCollateralwhichcomeintotheirpossessionorundertheircontrolandimmediatelyuponreceiptthereof,shalldepositorcausethesametobedepositedintheStoreBankAccounts(subjecttotheprovisionsofSection6.3(a)(i))ortheBlockedAccounts,orremitthesameorcausethesametoberemitted,inkind,toAdministrativeAgent.BorroweragreestoreimburseAdministrativeAgentondemandforanyamountsowedorpaidtoanybankatwhichaBlockedAccountisestablishedoranyotherbankorpersoninvolvedinthetransferoffundstoorfromtheBlockedAccountsarisingoutofAdministrativeAgent’spaymentstoorindemnificationofsuchbankorperson.TheobligationofBorrowertoreimburseAdministrativeAgentforsuchamountspursuanttothisSection6.3shallsurvivetheterminationofthisAgreement.

6.4Payments.

(a)AllObligationsshallbepayabletothePaymentAccountasprovidedinSection6.3orsuchotherplaceasAdministrativeAgentmaydesignatefromtimetotime.TheAgentsshallapplypaymentsreceivedorcollectedfromBorrowerorfortheaccountofBorrower(includingthemonetaryproceedsofcollectionsorofrealizationuponanyCollateral)asfollows:first,topayanyfees,indemnitiesorexpensereimbursementsthenduetoanyAgent,anyLenderortheirrepresentativesfromBorroweroranyObligor(otherthaninconnectionwithanyHedgingAgreements,BankProductsorCashManagementServices);second,topayinterestdueinrespectofanyLoansandSpecialAgentAdvances;third,topayprincipaldueinrespectoftheSwingLineLoansandSpecialAgentAdvances;fourth,topayprincipaldueinrespectoftheRevolvingLoans;fifth,topayanyotherObligations(otherthaninconnectionwithanyHedgingAgreements,BankProductsorCashManagementServices)thendueandowing,insuchorderandmannerasAdministrativeAgentdetermines;sixth,topayanyObligationsthendueandowingrelatingtoCashManagementServices(includingfees,indemnities,expensesandotheramountsarisingfromanyCashManagementServices),seventh,topayanyObligationsthendue

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andowingrelatingtoHedgingAgreementsandBankProducts(includingfees,indemnities,expensesandotheramountsarisingfromanyHedgingAgreementsorBankProducts)onaproratabasisandeighth,totheextentofanybalanceremaining,suchbalanceshallbedeliveredtoBorrowerorasacourtofcompetentjurisdictionmaydirect.NotwithstandinganythingtothecontrarycontainedinthisAgreement,(i)unlesssodirectedbyBorrower,orunlessaDefaultoranEventofDefaultshallexistorhaveoccurredandbecontinuing,noAgentshallapplyanypaymentswhichitreceivestoanyLIBORateLoans,exceptontheexpirationdateoftheInterestPeriodapplicabletoanysuchLIBORateLoansand(ii)totheextentBorrowerusesanyproceedsoftheLoansorLetterofCreditAccommodationstoacquirerightsinortheuseofanyCollateralortorepayanyIndebtednessusedtoacquirerightsinortheuseofanyCollateral,paymentsinrespectoftheobligationsshallbedeemedappliedfirsttotheObligationsarisingfromLoansandLetterofCreditAccommodationsthatwerenotusedforsuchpurposesandsecondtotheObligationsarisingfromLoansandLetterofCreditAccommodationstheproceedsofwhichwereusedtoacquirerightsinortheuseofanyCollateralinthechronologicalorderinwhichBorroweracquiredsuchrightsoruse.EachpaymentonanyoftheLoanstoorfortheaccountofoneormoreLendersentitledtosuchpaymentspursuanttothisSection6.4(a)shallbeallocatedamongsuchLendersbasedontheirrespectiveProRataSharesofsuchLoans.

(b)AtAdministrativeAgent’soption,allprincipal,interest,fees,costs,expensesandotherchargesprovidedforinthisAgreementortheotherFinancingAgreementsmaybechargeddirectlytotheloanaccount(s)ofBorrower.BorrowershallmakeallpaymentstoAgentsandLendersontheObligationsfreeandclearof,andwithoutdeductionorwithholdingfororonaccountof,anysetoff,counterclaim,defense,duties,taxes,levies,imposts,fees,deductions,withholding,restrictionsorconditionsofanykind.Ifafterreceiptofanypaymentof,orproceedsofCollateralappliedtothepaymentof,anyoftheObligations,anyAgentoranyLenderisrequiredtosurrenderorreturnsuchpaymentorproceedstoanyPersonforanyreason,thentheObligationsintendedtobesatisfiedbysuchpaymentorproceedsshallbereinstatedandcontinueandthisAgreementshallcontinueinfullforceandeffectasifsuchpaymentorproceedshadnotbeenreceivedbysuchAgentorsuchLender.BorrowershallbeliabletopaytoeachAgent,anddoesherebyindemnifyandholdAgentsandLendersharmlessfortheamountofanypaymentsorproceedssurrenderedorreturned.ThisSection6.4shallremaineffectivenotwithstandinganycontraryactionwhichmaybetakenbyanyAgentoranyLenderinrelianceuponsuchpaymentorproceeds.ThisSection6.4shallsurvivethepaymentoftheObligationsandtheterminationofthisAgreement.

(c)IfanypaymentofprincipalorinterestwithrespecttoanyoftheLoans,orofanyfees,fallsdueonadaywhichisnotaBusinessDay,thensuchduedateshallbeextendedtotheimmediatelyfollowingBusinessDay(unless,inthecaseofaLIBORateLoan,suchimmediatelyfollowingBusinessDayisthefirstBusinessDayofacalendarmonth,inwhichcasesuchduedateshallbetheimmediatelyprecedingBusinessDay)and,inthecaseofprincipal,additionalinterestshallaccrueandbepayablefortheperiodofanysuchextension.

6.5AuthorizationtoMakeLoans.

AgentsandLendersareauthorizedtomaketheLoansuponthereceiptbyAdministrativeAgentofawrittennotice(eachsuchwrittennotice,a“NoticeofBorrowing”)substantiallyintheformattachedheretoasExhibitFortelephonicnotice(followedimmediatelybyaNoticeof

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Borrowing)ofeachproposedborrowingnotlaterthan(a)inthecaseofaPrimeRateborrowing,12:00noonontheproposeddateofsuchborrowing,and(b)inthecaseofaLIBORateborrowing,12:00noonatleastthree(3)BusinessDayspriortotheproposeddateofsuchborrowing.EachsuchnoticeshallbeeffectiveuponreceiptbytheAdministrativeAgent,shallbeirrevocable,andshallspecifythedate,amountandtypeofborrowingand,inthecaseofaLIBORateborrowing,theinitialInterestPeriodtherefore.Promptlyuponreceiptofsuchnotice,theAdministrativeAgentshalladviseeachLenderthereof.Notlaterthan3:00P.M.onthedateofaproposedborrowing,eachLendershallprovidetheAdministrativeAgentattheofficespecifiedbytheAdministrativeAgentwithimmediatelyavailablefundscoveringsuchLender’sProRataShareofsuchborrowingand,solongastheAdministrativeAgenthasnotreceivedwrittennoticethattheconditionsprecedentsetforthinSection4withrespecttosuchborrowinghavenotbeensatisfied,theAdministrativeAgentshallpayoverthefundsreceivedbytheAdministrativeAgenttoBorrowerontherequestedborrowingdate.EachborrowingshallbeonaBusinessDay.EachLIBORateborrowingshallbeinanaggregateamountofatleast$2,000,000andanintegralmultipleofatleast$100,000.AllLoansandLetterofCreditAccommodationsunderthisAgreementshallbeconclusivelypresumedtohavebeenmadeto,andattherequestofandforthebenefitof,BorrowerwhendepositedtothecreditofBorrowerorotherwisedisbursedorestablishedinaccordancewiththeinstructionsofBorrowerorinaccordancewiththetermsandconditionsofthisAgreement.

6.6UseofProceeds.

AllLoansmadeorLetterofCreditAccommodationsprovidedtoBorrowerpursuanttotheprovisionshereofshallbeusedbyBorroweronlyforgeneraloperating,workingcapitalandotherpropercorporatepurposesofBorrowernototherwiseprohibitedbythetermshereof,includingwithoutlimitationthepaymentofallcosts,expensesandfeesinconnectionwiththepreparation,negotiation,executionanddeliveryofthisAgreementandtheotherFinancingAgreements.Noneoftheproceedswillbeused,directlyorindirectly,forthepurposeofpurchasingorcarryinganymarginsecurityorforthepurposesofreducingorretiringanyindebtednesswhichwasoriginallyincurredtopurchaseorcarryanymarginsecurityorforanyotherpurposewhichmightcauseanyoftheLoanstobeconsidereda“purposecredit”withinthemeaningofRegulationUoftheBoardofGovernorsoftheFederalReserveSystem,asamended.

6.7ProRataTreatment.

ExcepttotheextentotherwiseprovidedinthisAgreement:(a)themakingandconversionofLoansshallbemadeamongtheLendersbasedontheirrespectiveProRataSharesastotheLoansand(b)eachpaymentonaccountofanyObligationstoorfortheaccountofoneormoreofLendersinrespectofanyObligationsdueonaparticulardayshallbeallocatedamongtheLendersentitledtosuchpaymentsbasedontheirrespectiveProRataSharesandshallbedistributedaccordingly.

6.8SharingofPayments,Etc.

(a)Borroweragreesthat,inadditionto(andwithoutlimitationof)anyrightofsetoff,banker’slienorcounterclaimeitherAgentoranyLendermayotherwisehave,eachLendershallbeentitled,atitsoption(butsubject,asamongAgentsandLenders,tothe

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provisionsofSection12.3(b)hereof),tooffsetbalancesheldbyitfortheaccountofBorroweratanyofitsoffices,indollarsorinanyothercurrency,againstanyprincipaloforinterestonanyLoansowedtosuchLenderoranyotheramountpayabletosuchLenderhereunder,thatisnotpaidwhendue(regardlessofwhethersuchbalancesarethenduetoBorrower),inwhichcaseitshallpromptlynotifyBorrowerandAdministrativeAgentthereof;provided,that,suchLender’sfailuretogivesuchnoticeshallnotaffectthevaliditythereof.

(b)IfanyLender(includingeitherAgent)shallobtainfromBorroweroranyObligorpaymentofanyprincipaloforinterestonanyLoanowingtoitorpaymentofanyotheramountunderthisAgreementoranyoftheotherFinancingAgreementsthroughtheexerciseofanyrightofsetoff,banker’slienorcounterclaimorsimilarrightorotherwise(otherthanfromAdministrativeAgentasprovidedherein),and,asaresultofsuchpayment,suchLendershallhavereceivedmorethanitsProRataShareoftheprincipaloftheLoansormorethanitsshareofsuchotheramountsthenduehereunderorthereunderbyBorroweroranyObligortosuchLenderthanthepercentagethereofreceivedbyanyotherLender,itshallpromptlypaytoAdministrativeAgent,forthebenefitoftheapplicableLenders,theamountofsuchexcessandsimultaneouslypurchasefromsuchotherapplicableLendersaparticipationintheLoansorsuchotheramounts,respectively,owingtosuchotherLenders(orsuchinterestduethereon,asthecasemaybe)insuchamounts,andmakesuchotheradjustmentsfromtimetotimeasshallbeequitable,totheendthatallLendersofthesamecategoryofLoansshallsharethebenefitofsuchexcesspayment(netofanyexpensesthatmaybeincurredbysuchLenderinobtainingorpreservingsuchexcesspayment)inaccordancewiththeirrespectiveProRataSharesorasotherwiseagreedbytheapplicableLenders.TosuchendallapplicableLendersshallmakeappropriateadjustmentsamongthemselves(bytheresaleofparticipationsoldorotherwise)ifsuchpaymentisrescindedormustotherwiseberestored.

(c)BorroweragreesthatanyLenderpurchasingaparticipation(ordirectinterest)asprovidedinthisSectionmayexercise,inamannerconsistentwiththisSection,allrightsofsetoff,banker’slien,counterclaimorsimilarrightswithrespecttosuchparticipationasfullyasifsuchLenderwereadirectholderofLoansorotheramounts(asthecasemaybe)owingtosuchLenderintheamountofsuchparticipation.

(d)NothingcontainedhereinshallrequireanyLendertoexerciseanyrightofsetoff,banker’slien,counterclaimsorsimilarrightsorshallaffecttherightofanyLendertoexercise,andretainthebenefitsofexercising,anysuchrightwithrespecttoanyotherIndebtednessorobligationofBorroweroranyObligor.If,underanyapplicablebankruptcy,insolvencyorothersimilarlaw,anyLenderreceivesasecuredclaiminlieuofasetofftowhichthisSectionapplies,suchLendershall,totheextentpracticable,assignsuchrightstoAdministrativeAgentforthebenefitofLendersand,inanyevent,exerciseitsrightsinrespectofsuchsecuredclaiminamannerconsistentwiththerightsofLendersentitledunderthisSectiontoshareinthebenefitsofanyrecoveryonsuchsecuredclaim.

6.9SettlementProcedures.

(a)TheamountofeachLender’sProRataShareofoutstandingRevolvingLoansshallbecomputedweekly(ormorefrequentlyintheAdministrativeAgent’sdiscretion)andshallbeadjustedupwardordownwardbasedonallRevolvingLoansandrepaymentsof

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RevolvingLoansreceivedbytheAdministrativeAgentasof3:00p.m.onthefirstBusinessDay(suchdate,the“SettlementDate”)followingtheendoftheperiodspecifiedbytheAdministrativeAgent.

(b)TheAdministrativeAgentshalldelivertoeachoftheLenderspromptlyafteraSettlementDateasummarystatementoftheamountofoutstandingRevolvingLoansfortheperiodandtheamountofrepaymentsreceivedfortheperiod.Asreflectedonthesummarystatement,(i)theAdministrativeAgentshalltransfertoeachLenderitsProRataShareofrepayments,and(ii)eachLendershalltransfertotheAdministrativeAgent(asprovidedbelow)ortheAdministrativeAgentshalltransfertoeachLender,suchamountsasarenecessarytoinsurethat,aftergivingeffecttoallsuchtransfers,theamountofRevolvingLoansmadebyeachLendershallbeequaltosuchLender’sProRataShareofallRevolvingLoansoutstandingasofsuchSettlementDate.IfthesummarystatementrequirestransferstobemadetotheAdministrativeAgentbytheLendersandisreceivedpriorto11:00a.m.onaBusinessDay,suchtransfersshallbemadeinimmediatelyavailablefundsnolaterthan3:00p.m.thatday;and,ifreceivedafter11:00a.m.,thennolaterthan3:00p.m.onthenextBusinessDay.TheobligationofeachLendertotransfersuchfundsisirrevocable,unconditionalandwithoutrecoursetoorwarrantybytheAdministrativeAgent.IfandtotheextentanyLendershallnothavesomadeitstransfertotheAdministrativeAgent,suchLenderagreestopaytotheAdministrativeAgent,forthwithondemandsuchamount,togetherwithinterestthereon,foreachdayfromsuchdateuntilthedatesuchamountispaidtotheAdministrativeAgent,equaltothegreateroftheFederalFundsRateandaratedeterminedbytheAdministrativeAgentinaccordancewithbankingindustryrulesoninterbankcompensationplusanyadministrative,processing,orsimilarfeescustomarilychargedbytheAdministrativeAgentinconnectionwiththeforegoing.

(c)AllpaymentsunderSection3.3shallbemadebyBorrowerdirectlytotheLenderentitledtheretowithoutsetoff,counterclaimorotherdefense.

SECTION 7. COLLATERAL REPORTING AND COLLATERAL COVENANTS

7.1CollateralReporting.

BorrowershallprovidetheAgentswiththefollowingdocumentsinaformsatisfactorytotheAgents(a)onamonthlybasisormorefrequentlyaseitherAgentmayreasonablyrequest(i)aBorrowingBaseCertificateintheformofExhibitIhereto(orsuchotherformastheAdministrativeAgentmayrequire),(ii)inventoryreportsbycategoryandlocation(withsuchdetailsastothemixofInventoryaseitherAgentmayrequest),and(iii)agingsofaccountspayable;(b)uponreasonablerequestofeitherAgent(i)thestockstatusreportsofBorrower,(ii)reportsonsalesandusetaxpaymentandincludingmonthlysalesandusetaxaccruals,(iii)reportsofamountsofconsignedInventoryheldbyBorrowerbycategoryandconsignor,(iv)reportsofsalesofInventoryindicatingnetsales,(v)reportsofaggregateInventorypurchases(includingallcostsrelatedthereto,suchasfreight,dutyandtaxes)andidentifyingitemsofInventoryintransittoBorrowerrelatedtotheapplicabledocumentaryletterofcreditand/orbillofladingnumber,(vi)reportsoftheCostoftheInventory(netofmarkdowns),(vii)reportsonthestatusofallpaymentstoownersandlessorsoftheleasedretailstorelocationsofBorrowerandotherleasedpremisesofBorrower,(viii)copiesofcustomerstatementsandcreditmemos,remittanceadvicesandreports,andcopiesofdepositslipsandbankstatements,(ix)copiesof

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shippinganddeliverydocuments,(x)copiesofpurchaseorders,invoicesanddeliverydocumentsforInventoryandEquipmentacquiredbyBorrower,(xi)reportsbyretailstorelocationofsalesandoperatingprofitsforeachsuchretailstorelocation(xii)reportsofsalesforeachcategoryofInventoryand(xiii)themonthlystatementsreceivedbyBorrowerfromanyCreditCardIssuersorCreditCardProcessors,togetherwithsuchadditionalinformationwithrespecttheretoasshallbesufficienttoenabletheAgentstomonitorthetransactionspursuanttotheCreditCardAgreements;and(c)suchotherreportsastotheCollateralastheAgentsshallreasonablyrequestfromtimetotime.IfanyofBorrower’srecordsorreportsoftheCollateralarepreparedormaintainedbyanaccountingservice,contractor,shipperorotheragent,Borrowerherebyirrevocablyauthorizessuchservice,contractor,shipperoragenttodeliversuchrecords,reports,andrelateddocumentstotheAgentsandtofollowtheinstructionsoftheAgentswithrespecttofurtherservicesatanytimethatanEventofDefaultexistsorhasoccurredandiscontinuing.

7.2AccountsCovenants.

(a)[intentionallydeleted].

(b)[intentionallydeleted].

(c)WithrespecttoeachAccount:(i)theamountsshownonanyinvoicedeliveredtoeitherAgentorschedulethereofdeliveredtoeitherAgentshallbetrueandcomplete,(ii)nopaymentsshallbemadethereonexceptpaymentsimmediatelydeliveredtoAdministrativeAgentpursuanttothetermsofthisAgreement,(iii)nocredit,discount,allowanceorextensionoragreementforanyoftheforegoingshallbegrantedtoanyaccountdebtorexceptasreported,totheextentrequiredhereunder,toAdministrativeAgentinaccordancewiththisAgreementandexceptforcredits,discounts,allowancesorextensionsmadeorgivenintheordinarycourseofBorrower’sbusinessinaccordancewithpracticesandpoliciespreviouslydisclosedtoAdministrativeAgent,(iv)thereshallbenosetoffs,deductions,contras,defenses,counterclaimsordisputesexistingorassertedwithrespecttheretoexceptasreportedtoAdministrativeAgentinaccordancewiththetermsofthisAgreement,(v)noneofthetransactionsgivingrisetheretowillviolateanyapplicableforeign,Federal,Stateorlocallawsorregulations,alldocumentationrelatingtheretowillbelegallysufficientundersuchlawsandregulationsandallsuchdocumentationwillbelegallyenforceableinaccordancewithitsterms.

(d)TheAgentsmay,atanytimeortimesthatanEventofDefaultexistsorhasoccurred,(i)notifyanyorallaccountdebtors,CreditCardIssuersandCreditCardProcessorsthattheAccountshavebeenassignedtoCollateralAgentandthatCollateralAgenthasasecurityinterestthereinandCollateralAgentmaydirectanyorallaccountdebtors,CreditCardIssuersandCreditCardProcessorstomakepaymentsofAccountsdirectlytoCollateralAgent,(ii)extendthetimeofpaymentof,compromise,settleoradjustforcash,credit,returnoforotherwise,anduponanytermsorconditions,anyandallAccountsorotherobligationsincludedintheCollateralandtherebydischargeorreleasetheaccountdebtororanyotherpartyorpartiesinanywayliableforpaymentthereofwithoutaffectinganyoftheObligations,(iii)demand,collectorenforcepaymentofanyAccountsorsuchotherobligations,butwithoutanydutytodoso,andCollateralAgentshallnotbeliableforitsfailuretocollectorenforcethepaymentthereofnorforthenegligenceofitsagentsorattorneyswithrespecttheretoand(iv)takewhateverotheractionCollateralAgentmaydeemnecessaryordesirablefortheprotection

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ofitsinterests.AtanytimethatanEventofDefaultexistsorhasoccurredandiscontinuing,ateitherAgent’srequest,allinvoicesandstatementssenttoanyaccountdebtor,CreditCardIssuerorCreditCardProcessorshallstatethattheAccountsduefromsuchaccountdebtor,CreditCardIssuerorCreditCardProcessorandsuchotherobligationshavebeenassignedtoCollateralAgentandarepayabledirectlyandonlytoCollateralAgentandBorrowershalldelivertoCollateralAgentsuchoriginalsofdocumentsevidencingthesaleanddeliveryofgoodsortheperformanceofservicesgivingrisetoanyAccountsasCollateralAgentmayrequire.

(e)CollateralAgentshallhavetherightatanytimeortimes,inCollateralAgent’snameorinthenameofanomineeofCollateralAgent,toverifythevalidity,amountoranyothermatterrelatingtoanyAccountorotherCollateral,bymail,telephone,facsimiletransmissionorotherwise.

(f)BorrowershalldeliverorcausetobedeliveredtoCollateralAgent,withappropriateendorsementandassignment,withfullrecoursetoBorrower,allchattelpaperandinstrumentswhichBorrowernowownsormayatanytimeacquireimmediatelyuponBorrower’sreceiptthereof,exceptasCollateralAgentmayotherwiseagree.

7.3InventoryCovenants.

WithrespecttotheInventory:(a)BorrowershallatalltimesmaintaininventoryrecordsreasonablysatisfactorytoCollateralAgent,keepingcorrectandaccuraterecordsitemizinganddescribingthekind,type,qualityandquantityofInventory,Borrower’scostthereforanddailywithdrawalstherefromandadditionsthereto;(b)BorrowershallconductaphysicalcountoftheInventoryeitherthroughperiodiccyclecountsorwall-to-wallcountssothatallInventoryiscoveredbysuchcountsatleastonceeachyear,butatanytimeortimesasanyAgentmayrequestonorafteranEventofDefault,andpromptlyfollowingsuchphysicalinventory(whetherpursuanttoperiodiccyclecountsorotherwise)shall,totheextentrequested,supplyCollateralAgentwithareportintheformandwithsuchspecificityasmaybereasonablysatisfactorytoCollateralAgentconcerningsuchphysicalcount;(c)BorrowershallnotremoveanyInventoryfromthelocationssetforthorpermittedherein,withoutthepriorwrittenconsentofCollateralAgent,exceptforsalesofInventoryintheordinarycourseofBorrower’sbusinessandexcepttomoveInventorydirectlyfromonelocationsetforthorpermittedhereintoanothersuchlocationortoreturndefective,returnedorslowmovingInventorytotherelevantdistributioncenterordirectlytothesupplierforappropriatecredit;(d)BorrowershallmakeallmaterialpaymentsrequiredtobemadeunderleasesofpremisesatwhichInventoryislocatedwhendue,exceptasspecificallyreportedtoCollateralAgentpursuanttoSection7.1above;(e)uponCollateralAgent’srequest(subjecttotheprovisointhisclause(e)),Borrowershall,atitsexpense,nomorethanonceinanytwelve(12)monthperiod,butatanytimeortimesasCollateralAgentmayreasonablyrequestonorafteranEventofDefault,deliverorcausetobedeliveredtoCollateralAgentwrittenappraisalsastotheInventoryinform,scopeandmethodologyacceptabletoCollateralAgentandbyanappraiseracceptabletoCollateralAgent,addressedtoCollateralAgentanduponwhichCollateralAgentisexpresslypermittedtorely;provided,that,solongasnoEventofDefaultexistsorhasoccurredandiscontinuing,nosuchappraisalsshallberequestedunless(i)thereceasestoremainatleast$25,000,000intheaggregateinoneormoreBlockedAccounts,or(ii)theoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsisgreaterthan$0andhasbeenoutstandingforatleastfive(5)consecutive

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BusinessDaysor(iii)theoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsisinexcessof$20,000,000atanytime;(f)uponCollateralAgent’srequest,Borrowershall,atitsexpense,conductthroughRGISInventorySpecialists,Inc.oranotherinventorycountingserviceacceptabletoCollateralAgent,aphysicalcountoftheInventoryinform,scopeandmethodologyacceptabletoCollateralAgentnomorethanonceinanytwelve(12)monthperiod,butatanytimeortimesasCollateralAgentmayrequestonorafteranEventofDefault,theresultsofwhichshallbereporteddirectlybysuchinventorycountingservicetoCollateralAgentandBorrowershallpromptlydeliverconfirmationinaformsatisfactorytoCollateralAgentthatappropriateadjustmentshavebeenmadetotheinventoryrecordsofBorrowertoreconciletheinventorycounttoBorrower’sinventoryrecords;(g)Borrowershallproduce,use,storeandmaintaintheInventorywithallreasonablecareandcautionandinaccordancewithapplicablestandardsofanyinsuranceandinconformitywithapplicablelaws(includingtherequirementsoftheFederalFairLaborStandardsActof1938,asamendedandallrules,regulationsandordersrelatedthereto);(h)Borrowerassumes(asbetweenLenderandBorrower)allresponsibilityandliabilityarisingfromorrelatingtotheproduction,use,saleorotherdispositionoftheInventory;(i)BorrowershallnotsellInventorytoanycustomeronapproval,oranyotherbasiswhichentitlesthecustomertoreturnormayobligateBorrowertorepurchasesuchInventoryexceptfortherightofreturngiventoretailcustomersofBorrowerintheordinarycourseofthebusinessofBorrowerinaccordancewiththethencurrentreturnpolicyofBorrower;(j)BorrowershalluseitsbesteffortstokeeptheInventoryingoodandmarketableconditionandtoidentifyandmakeappropriateadjustmentsforInventorythatdoesnotmeetthatrequirementexceptthatwhichistobereturned;and(k)BorrowershallnotacquireoracceptanyInventoryonconsignmentorapprovalexcepttotheextentsuchInventoryisreportedtoCollateralAgentinaccordancewiththetermshereof.

7.4PowerofAttorney.

BorrowerherebyirrevocablydesignatesandappointseachAgent(andallpersonsdesignatedbyeitherAgent)asBorrower’strueandlawfulattorney-in-fact,andauthorizesCollateralAgent,inBorrower’sorCollateralAgent’sname,to:(a)atanytimeanEventofDefaultexistsorhasoccurredandiscontinuing(i)demandpaymentonReceivablesorotherCollateral,(ii)enforcepaymentofReceivablesbylegalproceedingsorotherwise,(iii)exerciseallofBorrower’srightsandremediestocollectanyReceivableorotherCollateral,(iv)sellorassignanyReceivableuponsuchterms,forsuchamountandatsuchtimeortimesastheCollateralAgentdeemsadvisable,(v)settle,adjust,compromise,extendorrenewanAccount,(vi)dischargeandreleaseanyReceivable,(vii)prepare,fileandsignBorrower’snameonanyproofofclaiminbankruptcyorothersimilardocumentagainstanaccountdebtororotherobligorinrespectofanyReceivablesorotherCollateral,(viii)notifythepostofficeauthoritiestochangetheaddressfordeliveryofremittancesfromaccountdebtorsorotherobligorsinrespectofReceivablesorotherproceedsofCollateraltoanaddressdesignatedbyCollateralAgent,andopenanddisposeofallmailaddressedtoBorrowerandhandleandstoreallmailrelatingtotheCollateral;and(ix)doallactsandthingswhicharenecessary,inCollateralAgent’sdetermination,tofulfillBorrower’sobligationsunderthisAgreementandtheotherFinancingAgreementsand(b)atanytimeto(i)takecontrolinanymannerofanyitemofpaymentinrespectofReceivablesorconstitutingCollateralorotherwisereceivedinorfordepositintheBlockedAccountsorotherwisereceivedbyeitherAgentoranyLender,(ii)haveaccesstoanylockboxorpostalboxintowhichremittancesfromaccountdebtorsorother

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obligorsinrespectofReceivablesorotherproceedsofCollateralaresentorreceived,(iii)endorseBorrower’snameuponanyitemsofpaymentinrespectofReceivablesorconstitutingCollateralorotherwisereceivedbyeitherAgentoranyLenderanddepositthesameinAdministrativeAgent’saccountforapplicationtotheObligations,(iv)endorseBorrower’snameuponanychattelpaper,document,instrument,invoice,orsimilardocumentoragreementrelatingtoanyReceivableoranygoodspertainingtheretooranyotherCollateral,includinganywarehouseorotherreceipts,orbillsofladingandothernegotiableornon-negotiabledocuments,(v)clearInventorythepurchaseofwhichwasfinancedwithLetterofCreditAccommodationsthroughU.S.CustomsorforeignexportcontrolauthoritiesinBorrower’sname,CollateralAgent’snameorthenameofCollateralAgent’sdesignee,andtosignanddelivertocustomsofficialspowersofattorneyinBorrower’snameforsuchpurpose,andtocompleteinBorrower’sorCollateralAgent’sname,anyorder,saleortransaction,obtainthenecessarydocumentsinconnectiontherewithandcollecttheproceedsthereof,(vi)signBorrower’snameonanyverificationofReceivablesandnoticesthereoftoaccountdebtorsoranysecondaryobligorsorotherobligorsinrespectthereof.BorrowerherebyreleaseseachAgentandLendersandtheirrespectiveofficers,employeesanddesigneesfromanyliabilitiesarisingfromanyactoractsunderthispowerofattorneyandinfurtherancethereof,whetherofomissionorcommission,exceptasaresultofsuchAgent’soranyLender’sowngrossnegligenceorwillfulmisconductasdeterminedpursuanttoafinalnon-appealableorderofacourtofcompetentjurisdiction.

7.5RighttoCure.

AdministrativeAgentmay,atitsoptionuponnoticetoBorrower(a)cureanydefaultbyBorrowerunderanymaterialagreementwithathirdpartythataffectstheCollateral,itsvalueortheabilityofAdministrativeAgenttocollect,sellorotherwisedisposeoftheCollateralortherightsandremediesofAdministrativeAgentthereinortheabilityofBorrowertoperformitsobligationshereunderorundertheotherFinancingAgreements,(b)payorbondonappealanyjudgmententeredagainstBorrower,(c)dischargetaxes,liens,securityinterestsorotherencumbrancesatanytimeleviedonorexistingwithrespecttotheCollateraland(d)payanyamount,incuranyexpenseorperformanyactwhich,inAdministrativeAgent’sjudgment,isnecessaryorappropriatetopreserve,protect,insureormaintaintheCollateralandtherightsofAgentsandLenderswithrespectthereto.AdministrativeAgentmayaddanyamountssoexpendedtotheObligationsandchargeBorrower’saccounttherefor,suchamountstoberepayablebyBorrowerondemand.AgentsandLendersshallbeundernoobligationtoeffectsuchcure,paymentorbondingandshallnot,bydoingso,bedeemedtohaveassumedanyobligationorliabilityofBorrower.AnypaymentmadeorotheractiontakenbyeitherAgentoranyLenderunderthisSectionshallbewithoutprejudicetoanyrighttoassertanEventofDefaulthereunderandtoproceedaccordingly.

7.6AccesstoPremises.

FromtimetotimeasreasonablyrequestedbyanyAgent,atthecostandexpenseofBorrower,(a)eachAgentoritsdesigneeshallhavecompleteaccesstoallofBorrower’spremisesduringnormalbusinesshoursandafternoticetoBorrower,oratanytimeandwithoutnoticetoBorrowerifanEventofDefaultexistsorhasoccurredandiscontinuing,forthepurposesofconductingfieldexaminations(whichCollateralAgentmayconductnotmorethantwiceperyearoratsuchgreaterfrequencyasAdministrativeAgentshallelectduringthe

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existenceofanEventofDefault),inspecting,verifyingandauditingtheCollateralandallofBorrower’sbooksandrecords,includingtheRecords;provided,that,solongasnoEventofDefaultexistsorhasoccurredandiscontinuing,nosuchfieldexaminations,inspections,verificationsorauditsshallbeconducteduntilsuchtimeaseither(i)theoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsisgreaterthan$0andhasbeenoutstandingforatleastfive(5)consecutiveBusinessDaysor(ii)theoutstandingprincipalbalanceoftheLoansandLetterofCreditAccommodationsisinexcessof$20,000,000atanytime,and(b)BorrowershallpromptlyfurnishtoeachAgentsuchcopiesofsuchbooksandrecordsorextractstherefromasanyAgentmayreasonablyrequest,and(c)anyAgentoranyAgent’sdesigneemayuseduringnormalbusinesshourssuchofBorrower’spersonnel,equipment,suppliesandpremisesasmaybereasonablynecessaryfortheforegoingandifanEventofDefaultexistsorhasoccurredandiscontinuingforthecollectionofReceivablesandrealizationofotherCollateral.

SECTION 8. REPRESENTATIONS AND WARRANTIES

BorrowerherebyrepresentsandwarrantstoAgentsandLendersthefollowing(whichshallsurvivetheexecutionanddeliveryofthisAgreement),thetruthandaccuracyofwhichareacontinuingconditionofthemakingofLoansandprovidingLetterofCreditAccommodationstoBorrower:

8.1CorporateExistence;PowerandAuthority.

Borrowerisacorporationdulyorganizedandingoodstandingunderthelawsofitsstateofincorporationandisdulyqualifiedasaforeigncorporationandingoodstandinginallstatesorotherjurisdictionswherethenatureandextentofthebusinesstransactedbyitortheownershipofassetsmakessuchqualificationnecessary,andinwhichthefailuretosoqualifywouldhaveaMaterialAdverseEffect.Theexecution,deliveryandperformanceofthisAgreement,theotherFinancingAgreementsandthetransactionscontemplatedhereunderandthereunder(a)areallwithinBorrower’scorporatepowers,(b)havebeendulyauthorizedand(c)arenotincontraventionoflaworthetermsofBorrower’scertificateofincorporation,by-laws,orotherorganizationaldocumentation,oranyindenture,agreementorundertakingtowhichBorrowerisapartyorbywhichBorroweroritspropertyarebound.ThisAgreementandtheotherFinancingAgreementsconstitutelegal,validandbindingobligationsofBorrowerenforceableinaccordancewiththeirrespectiveterms.BorrowerdoesnothaveanySubsidiariesexceptassetforthontheInformationCertificate.

8.2Name;StateofOrganization;ChiefExecutiveOffice;CollateralLocations.

(a)TheexactlegalnameofBorrowerisassetforthonthesignaturepageofthisAgreementandintheInformationCertificate.Borrowerhasnot,duringthepastfiveyears,beenknownbyorusedanyothercorporateorfictitiousnameorbeenapartytoanymergerorconsolidation,oracquiredallorsubstantiallyalloftheassetsofanyPerson,oracquiredanyofitspropertyorassetsoutoftheordinarycourseofbusiness,exceptassetforthintheInformationCertificate.

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(b)BorrowerisanorganizationofthetypeandorganizedinthejurisdictionsetforthintheInformationCertificate.TheInformationCertificateaccuratelysetsforththeorganizationalidentificationnumberofBorroweroraccuratelystatesthatBorrowerhasnoneandaccuratelysetsforththefederalemployeridentificationnumberofBorrower.

(c)ThechiefexecutiveofficeandmailingaddressofBorrowerandBorrower’sRecordsconcerningAccountsarelocatedonlyattheaddressidentifiedassuchinSchedule8.2totheInformationCertificateanditsonlyotherplacesofbusinessandtheonlyotherlocationsofCollateral,ifany,aretheaddressessetforthinSchedule8.2totheInformationCertificate,subjecttotherightofBorrowertoestablishnewlocationsinaccordancewithSection9.2below.TheInformationCertificatecorrectlyidentifiesanyofsuchlocationswhicharenotownedbyBorrowerandsetsforththeownersand/oroperatorsthereof.

8.3FinancialStatements;NoMaterialAdverseChange.

AllfinancialstatementsrelatingtoBorrowerwhichhavebeenormayhereafterbedeliveredbyBorrowertoAgentsandLendershavebeenpreparedinaccordancewithGAAP(exceptastoanyinterimfinancialstatements,totheextentsuchstatementsaresubjecttonormalyear-endadjustmentsanddonotincludeanynotes)andfairlypresentthefinancialpositionandtheresultsofoperationofBorrowerasatthedatesandfortheperiodssetforththerein.ExceptasdisclosedinanyinterimfinancialstatementsfurnishedbyBorrowertoAdministrativeAgentpriortothedateofthisAgreement,therehasbeennomaterialadversechangeintheassets,liabilities,propertiesandcondition,financialorotherwise,ofBorrower,sincethedateofthemostrecentauditedfinancialstatementsfurnishedbyBorrowertoAdministrativeAgentpriortothedateofthisAgreement.

8.4PriorityofLiens;TitletoProperties.

ThesecurityinterestsandliensgrantedtoCollateralAgentunderthisAgreementandtheotherFinancingAgreementsconstitutevalidandperfectedfirstpriorityliensandsecurityinterestsinandupontheCollateralwhichislocatedwithintheUnitedStatesofAmerica,CanadaorPuertoRicosubjectonlytotheliensindicatedonSchedule8.4totheInformationCertificateandtheotherlienspermittedunderSection9.8hereof.Borrowerhasgoodandmarketablefeesimpletitletoallofitsotherpropertiesandassetssubjecttonoliens,mortgages,pledges,securityinterests,encumbrancesorchargesofanykind,exceptthosegrantedtoCollateralAgentandsuchothersasarespecificallylistedonSchedule8.4totheInformationCertificateorpermittedunderSection9.8hereof.

8.5TaxReturns.

Borrowerhasfiled,orcausedtobefiled,inatimelymannerall(i)federalandstatetaxreturns,reportsanddeclarationswhicharerequiredtobefiledbyBorrowerand(ii)allothertaxreturns,reportsanddeclarationswhicharerequiredtobefiledbyBorrower,otherthansuchtaxreturns,reportsanddeclarationsthefailureofwhichtofilecouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.Allinformationinsuchtaxreturns,reportsanddeclarationsiscompleteandaccurateinallmaterialrespects.Borrowerhaspaidorcausedtobepaidalltaxesdueandpayableorclaimeddueandpayableinanyassessmentreceivedbyitandhascollected,

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depositedandremittedinaccordancewithallapplicablelawsallsalesand/orusetaxesapplicabletotheconductofitsbusiness,excepttaxesthevalidityofwhicharebeingcontestedingoodfaithbyappropriateproceedingsdiligentlypursuedandavailabletoBorrowerandwithrespecttowhichadequatereserveshavebeensetasideonitsbooksandexceptforanytaxesoflessthan$500,000intheaggregate.AdequateprovisionhasbeenmadeforthepaymentofallaccruedandunpaidFederal,State,county,local,foreignandothertaxeswhetherornotyetdueandpayableandwhetherornotdisputed.Borrowerhascollectedanddepositedinaseparatebankaccountorremittedtotheappropriatetaxauthorityallsalesand/orusetaxesapplicabletoitsbusinessrequiredtobecollectedandsodepositedunderthelawsoftheUnitedStatesandeachpossessionorterritorythereof,andeachStateorpoliticalsubdivisionthereof,includinganyStateinwhichBorrowerownsanyInventoryorownsorleasesanyotherproperty.

8.6Litigation.

ExceptassetforthinSchedule8.6totheInformationCertificate,thereisnopresentinvestigationbyanyGovernmentalAuthoritypending,ortothebestofBorrower’sknowledgethreatened,againstoraffectingBorrower,itsassetsorbusinessandthereisnoaction,suit,proceedingorclaimbyanyPersonpending,ortothebestofBorrower’sknowledgethreatened,againstBorroweroritsassetsorgoodwill,oragainstoraffectinganytransactionscontemplatedbythisAgreement,whichifadverselydeterminedagainstBorrowercouldreasonablybeexpectedtohaveaMaterialAdverseEffect.

8.7CompliancewithOtherAgreementsandApplicableLaws.

(a)Borrowerisnotindefaultinanyrespectunder,orinviolationinanyrespectofanyofthetermsof,anyagreement,contract,instrument,leaseorothercommitmenttowhichitisapartyorbywhichitoranyofitsassetsarebound,ineachcasewheresuchdefaultorviolationhasorwouldhaveaMaterialAdverseEffect.Borrowerisincomplianceinallrespectswiththerequirementsofallapplicablelaws,rules,regulationsandordersofanygovernmentalauthorityrelatingtoitsbusiness,including,withoutlimitation,thosesetforthinorpromulgatedpursuanttotheOccupationalSafetyandHealthActof1970,asamended,theFairLaborStandardsActof1938,asamended,ERISA,theCode,asamended,andtherulesandregulationsthereunder,theEnvironmentalLaws,allFederal,Stateandlocalstatutes,regulations,rulesandordersrelatingtoconsumercredit(including,withoutlimitation,aseachhasbeenamended,theTruth-in-LendingAct,theFairCreditBillingAct,theEqualCreditOpportunityActandtheFairCreditReportingAct,andregulations,rulesandorderspromulgatedthereunder),allFederal,Stateandlocalstates,regulations,rulesandorderspertainingtosalesofconsumergoods(including,withoutlimitation,theConsumerProductsSafetyActof1972,asamended,andtheFederalTradeCommissionActof1914,asamended,andallregulations,rulesandorderspromulgatedthereunder)ineachcasewherethefailuretocomplywouldhaveaMaterialAdverseEffect.

(b)Borrowerhasobtainedallmaterialpermits,licenses,approvals,consents,certificates,ordersorauthorizationsofanygovernmentalagencyrequiredforthelawfulconductofitsbusiness(the“Permits”).Schedule8.7totheInformationCertificatesetsforthallofthePermitsissuedtoorheldbyBorrowerasofthedatehereofbyanyFederal,StateorlocalgovernmentalagencyandanyapplicationspendingbyBorrowerwithsuchfederal,stateorlocal

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governmentalagency.ThePermitsconstituteallpermits,licenses,approvals,consents,certificates,ordersorauthorizationsnecessaryforBorrowertoownandoperateitsbusinessaspresentlyconductedorproposedtobeconductedwherethefailuretohavesuchPermitswouldhaveaMaterialAdverseEffect.AllofthePermitsarevalidandsubsistingandinfullforceandeffect.Therearenoactions,claimsorproceedingspendingorthreatenedthatseektherevocation,cancellation,suspensionormodificationofanyofthePermits.

8.8EnvironmentalCompliance.

(a)ExceptassetforthonSchedule8.8totheInformationCertificate,Borrowerhasnotgenerated,used,stored,treated,transported,manufactured,handled,producedordisposedofanyHazardousMaterials,onoroffitspremises(whetherornotownedbyit)inanymannerwhichviolatesanyapplicableEnvironmentalLawandtheoperationsofBorrowercomplywithallapplicableEnvironmentalLaws,ineachcasewheresuchviolationorfailuretosocomplywouldhaveaMaterialAdverseEffect.

(b)ExceptassetforthonSchedule8.8totheInformationCertificate,thereisnoinvestigation,proceeding,complaint,order,directive,claim,citationornoticebyanyGovernmentalAuthorityoranyotherpersonpendingortothebestofBorrower’sknowledgethreatened,withrespecttoanymaterialnon-compliancewithormaterialviolationoftherequirementsofanyapplicableEnvironmentalLawbyBorrower.

(c)ExceptassetforthinSchedule8.8totheInformationCertificate,Borrowerdoesnothaveanyliability(contingentorotherwise)inconnectionwitharelease,spillordischarge,threatenedoractual,ofanyHazardousMaterialsorthegeneration,use,storage,treatment,transportation,manufacture,handling,productionordisposalofanyHazardousMaterialswhichwouldhaveaMaterialAdverseEffect.

(d)Borrowerhasalllicenses,certificates,approvalsandotherPermitsrequiredtobeobtainedorfiledinconnectionwiththeoperationsofBorrowerunderanyEnvironmentalLawineachcasewherethefailuretoobtainorfilethesamewouldhaveaMaterialAdverseEffectandallsuchlicenses,permits,certificates,approvalsorsimilarauthorizationsarevalidandinfullforceandeffectwherethefailuretohaveanyofsuchlicenses,permits,certificates,approvalsorsimilarauthorizationwouldhaveaMaterialAdverseEffect.

8.9[intentionallydeleted].

8.10EmployeeBenefits.

(a)BorrowerhasnotengagedinanytransactioninconnectionwithwhichBorroweroranyofitsERISAAffiliatescouldbesubjecttoeitheracivilpenaltyassessedpursuanttoERISAorataximposedtheCode,includinganyaccumulatedfundingdeficiencydescribedinSection8.10(c)hereofandanydeficiencywithrespecttovestedaccruedbenefitsdescribedinSection8.10(d)hereof.

(b)NoliabilitytothePensionBenefitGuarantyCorporationhasbeenorisexpectedbyBorrowertobeincurredwithrespecttoanyemployeebenefitplanofBorroweroranyofitsERISAAffiliates.Therehasbeennoreportableevent(withinthemeaningofERISA)

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oranyothereventorconditionwithrespecttoanyemployeebenefitplanofBorroweroranyofitsERISAAffiliateswhichpresentsariskofterminationofanysuchplanbythePensionBenefitGuarantyCorporation.

(c)FullpaymenthasbeenmadeofallamountswhichBorroweroranyofitsERISAAffiliatesisrequiredunderERISAandtheCodetohavepaidunderthetermsofeachemployeebenefitplanascontributionstosuchplanasofthelastdayofthemostrecentfiscalyearofsuchplanendedpriortothedatehereof,andnoaccumulatedfundingdeficiency(asdefinedinERISAandtheCode),whetherornotwaived,existswithrespecttoanyemployeepensionbenefitplan,includinganypenaltyortaxdescribedinSection8.10(a)hereofandanydeficiencywithrespecttovestedaccruedbenefitsdescribedinSection8.10(d)hereof.

(d)ThecurrentvalueofallvestedaccruedbenefitsunderallemployeepensionbenefitplansmaintainedbyBorrowerthataresubjecttoTitleIVofERISAdoesnotexceedthecurrentvalueoftheassetsofsuchplansallocabletosuchvestedaccruedbenefits,includinganypenaltyortaxdescribedinSection8.10(a)hereofandanyaccumulatedfundingdeficiencydescribedinSection8.10(c)hereof.Theterms“currentvalue”and“accruedbenefit”havethemeaningsspecifiedinERISA.

(e)NeitherBorrowernoranyofitsERISAAffiliatesisorhaseverbeenobligatedtocontributetoany“multiemployerplan”(assuchtermisdefinedinERISA)thatissubjecttoTitleIofERISA.

8.11BankAccounts.

Allofthedepositaccounts,investmentaccountsorotheraccountsinthenameoforusedbyBorrowermaintainedatanybankorotherfinancialinstitutionaresetforthinSchedule6.3totheInformationCertificate,subjecttotherightofBorrowertoestablishnewaccountsinaccordancewithSection5.3(d)hereofandStoreBankAccounts(whichmaybeestablishedatanytime,subjecttotheprovisionsofSection6.3(a)(i)).

8.12RegulationU.

Borrowerisnotengagedprincipally,orasoneofitsimportantactivities,inthebusinessofextendingcreditforthepurposeofpurchasingorcarryingMarginStock.

8.13InvestmentCompanyAct.

NeitherBorrowernoranyofitsSubsidiariesisan“investmentcompany”oracompany“controlled”byan“investmentcompany”ora“subsidiary”ofan“investmentcompany,”withinthemeaningoftheInvestmentCompanyActof1940.

8.14OFAC.

NeitherBorrowernor,tothebestknowledgeofBorrower,anyAffiliateofBorrower(a)isaSanctionedPerson,(b)doesbusinessinaSanctionedCountryinviolationoftheeconomicsanctionsoftheUnitedStatesadministeredbyOFACor(c)doesbusinessinsuchcountryorwithanysuchagency,organizationorperson,inviolationoftheeconomicsanctionsoftheUnitedStatesadministeredbyOFAC.

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8.15AccuracyandCompletenessofInformation.

AllinformationfurnishedbyoronbehalfofBorrowerinwritingtoanyAgentoranyLenderinconnectionwiththisAgreementoranyoftheotherFinancingAgreementsoranytransactioncontemplatedherebyorthereby,includingallinformationontheInformationCertificateistrueandcorrectinallmaterialrespectsonthedateasofwhichsuchinformationisdatedorcertifiedanddoesnotomitanymaterialfactnecessaryinordertomakesuchinformationnotmisleading.NoeventorcircumstancehasoccurredwhichhashadorcouldreasonablybeexpectedtohaveaMaterialAdverseEffect,whichhasnotbeenfullyandaccuratelydisclosedtoAdministrativeAgentinwriting.

8.16SurvivalofWarranties;Cumulative.

AllrepresentationsandwarrantiescontainedinthisAgreementoranyoftheotherFinancingAgreementsshallsurvivetheexecutionanddeliveryofthisAgreementandshallbedeemedtohavebeenmadeagaintoAgentsandLendersonthedateofeachadditionalborrowingorothercreditaccommodationhereunderexcepttotheextentthatanysuchrepresentationsandwarrantiesexpresslyrelatesolelytoanearlierdate(inwhichcasesuchrepresentationsandwarrantiesshallhavebeentrueandaccurateonandasofsuchearlierdate)andshallbeconclusivelypresumedtohavebeenreliedonbyAgentsandLendersregardlessofanyinvestigationmadeorinformationpossessedbyanyAgentoranyLender.TherepresentationsandwarrantiessetforthhereinshallbecumulativeandinadditiontoanyotherrepresentationsorwarrantieswhichBorrowershallnoworhereaftergive,orcausetobegiven,toanyAgentoranyLender.InnoeventshallthecorporateofficersofBorrowerhaveanypersonalliabilitytoanyAgentoranyLenderifanyoftherepresentationsandwarrantiesofBorrowerinthisSection8arefalseormisleading,absentfraud.

8.17ExemptionfromIllinoisInterestAct.

Borrowerrepresentsandwarrantsthat,forthepurposesof815IllinoisCompiledStatutes205/4,theLoansandanySpecialAgentAdvancesconstituteabusinessloan.

8.18UnrestrictedSubsidiaries.

NoUnrestrictedSubsidiaryownsanyassets,otherthan(a)inthecaseofanyUnrestrictedSubsidiaryunderclause(a)ofsuchdefinition,thosenecessarytoconductprincipalactivitiesinvolvingfacilitatingcharitablefundraising,donationsandothercharitableactivities,includingfundsraisedinconnectiontherewith,(b)inthecaseofanyUnrestrictedSubsidiaryunderclause(b)ofsuchdefinition,assetshavingavalueofnotmorethan$1,000,000foranyperiodofthirty(30)consecutivedays,(c)books,records,rightsandotherassetsassociatedwithitsexistence,and(d)otherimmaterialassetsnotusedinconnectionwithanyoftheObligors’businessoperations.

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SECTION 9. AFFIRMATIVE AND NEGATIVE COVENANTS

9.1MaintenanceofExistence.

(a)Borrowershallatalltimespreserve,renewandkeepinfullforceandeffectitscorporateexistenceandrightsandfranchiseswithrespecttheretoandmaintaininfullforceandeffectallpermits,licenses,trademarks,tradenames,approvals,authorizations,leasesandcontractsnecessarytocarryonthebusinessaspresentlyorproposedtobeconducted.

(b)Borrowershallnotchangeitsnameunlesseachofthefollowingconditionsissatisfied:(ii)AdministrativeAgentshallhavereceivednotlessthanthirty(30)dayspriorwrittennoticefromBorrowerofsuchproposedchangeinitscorporatename,whichnoticeshallaccuratelysetforththenewname;and(ii)AdministrativeAgentshallhavereceivedacopyoftheamendmenttotheCertificateofIncorporationofBorrowerprovidingforthenamechangecertifiedbytheSecretaryofStateofthejurisdictionofincorporationororganizationofBorrowerassoonasitisavailable.

(c)Borrowershallnotchangeitschiefexecutiveofficeoritsmailingaddressororganizationalidentificationnumber(orifitdoesnothaveone,shallnotacquireone)unlessAdministrativeAgentshallhavereceivednotlessthanthirty(30)days’priorwrittennoticefromBorrowerofsuchproposedchange,whichnoticeshallsetforthsuchinformationwithrespecttheretoasAdministrativeAgentmayrequireandAdministrativeAgentshallhavereceivedsuchagreementsasAdministrativeAgentmayreasonablyrequireinconnectiontherewith.Borrowershallnotchangeitstypeoforganization,jurisdictionoforganizationorotherlegalstructure.

9.2NewCollateralLocations.

BorrowermayonlyopenanynewlocationwithintheUnitedStatesofAmerica,CanadaorPuertoRicoprovidedBorrowerhasgrantedtoCollateralAgent(i)aperfectedsecurityinterestintheCollateralatsuchlocationand(ii)aLandlordAgreementinrespectofsuchnewlocationifrequiredunderthedefinitionofEligibleInventory.Fromtimetotime,uponrequestoftheCollateralAgent,BorrowershallprovideCollateralAgentwithanaccuratelistshowinganynewlocationsorclosedlocationssincethelastsuchlistingprovidedhereunder.

9.3CompliancewithLaws,Regulations,Etc.

(a)Borrowershall,andshallcauseanySubsidiaryto,atalltimes,complyinallmaterialrespectswithalllaws,rules,regulations,licenses,Permits,approvalsandordersapplicabletoitanddulyobserveallrequirementsofanyforeign,Federal,StateorlocalGovernmentalAuthority,includingERISA,theCode,theOccupationalSafetyandHealthActof1970,asamended,theFairLaborStandardsActof1938,asamended,andallstatutes,rules,regulations,orders,permitsandstipulationsrelatingtoenvironmentalpollutionandemployeehealthandsafety,includingalloftheEnvironmentalLawsineachcasewherethefailuretosocomplytherewithorobservesuchrequirementswouldhaveaMaterialAdverseEffect.WithoutlimitationoftheprecedingprovisionsofthisSection9.3,Borrowershall(x)ensurethatneitherBorrowernor,tothebestknowledgeofBorrower,anyAffiliateofBorrower(i)becomesaSanctionedPerson,(ii)doesbusinessinaSanctionedCountryinviolationoftheeconomicsanctionsoftheUnitedStatesadministeredbyOFACor(iii)doesbusinessinsuchcountryor

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withanysuchagency,organizationorperson,inviolationoftheeconomicsanctionsoftheUnitedStatesadministeredbyOFAC,and(y)comply,andcauseeachofitsSubsidiariestocomply,withallapplicableBankSecrecyActandanti-moneylaunderinglawsandregulations.

(b)BorrowershallgivebothoralandwrittennoticetoAdministrativeAgentwithinfive(5)BusinessDaysofBorrower’sreceiptofanynoticeof,orBorrower’sotherwiseobtainingknowledgeof,(i)theoccurrenceofanyeventinvolvingtherelease,spillordischarge,threatenedoractual,ofanyHazardousMaterialatanyoneofBorrower’spropertiesor(ii)anyinvestigation,proceeding,complaint,order,directive,claims,citationornoticewithrespectto:(A)anymaterialnon-compliancewithormaterialviolationofanyEnvironmentalLawbyBorroweror(B)therelease,spillordischarge,threatenedoractual,ofanyHazardousMaterialor(C)thegeneration,use,storage,treatment,manufacture,handling,productionordisposalofanyHazardousMaterialsor(D)anyotherenvironmental,healthorsafetymatterwhichhasorwouldhaveaMaterialAdverseEffect.

(c)Withoutlimitingthegeneralityoftheforegoing,wheneverAdministrativeAgentreasonablydeterminesthatthereisnon-compliance,oranyconditionwhichrequiresanyactionbyoronbehalfofBorrowerinordertoavoidanymaterialnon-compliance,withanyEnvironmentalLaw,Borrowershall,atAdministrativeAgent’srequestandBorrower’sexpense:(i)causeanindependentenvironmentalengineeracceptabletoAdministrativeAgenttoconductsuchtestsofthesitewhereBorrower’snon-complianceorallegednon-compliancewithsuchEnvironmentalLawshasoccurredastosuchnon-complianceandprepareanddelivertoAdministrativeAgentareportastosuchnon-compliancesettingforththeresultsofsuchtests,aproposedplanforrespondingtoanymaterialenvironmentalproblemsdescribedtherein,andanestimateofthecoststhereofand(ii)providetoAdministrativeAgentasupplementalreportofsuchengineerwheneverthescopeofsuchnon-compliance,orBorrower’sresponsetheretoortheestimatedcoststhereof,shallchangeinanymaterialrespect.

(d)BorrowershallindemnifyandholdharmlessAgentsandLendersandtheirrespectivedirectors,officers,employees,agents,invitees,representatives,successorsandassigns,fromandagainstanyandalllosses,claims,damages,liabilities,costs,andexpenses(includingattorneys’feesandlegalexpenses)directlyorindirectlyarisingoutoforattributabletotheuse,generation,manufacture,reproduction,storage,release,threatenedrelease,spill,discharge,disposalorpresenceofaHazardousMaterial,includingthecostsofanyrequiredornecessaryrepair,cleanuporotherremedialworkwithrespecttoanypropertyofBorrowerandthepreparationandimplementationofanyclosure,remedialorotherrequiredplans.Allrepresentations,warranties,covenantsandindemnificationsinthisSection9.3shallsurvivethepaymentoftheObligationsandtheterminationofthisAgreement.

9.4PaymentofTaxesandClaims.

Borrowershall,andshallcauseanySubsidiaryto,dulypayanddischargealltaxes,assessments,contributionsandgovernmentalchargesuponoragainstitoritspropertiesorassets,exceptfortaxesthevalidityofwhicharebeingcontestedingoodfaithbyappropriateproceedingsdiligentlypursuedandavailabletoBorrowerorsuchSubsidiary,asthecasemaybe,andwithrespecttowhichadequatereserveshavebeensetasideonitsbooks.BorrowershallbeliableforanytaxorpenaltiesimposedonanyAgentoranyLenderasaresultofthefinancing

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arrangementsprovidedforhereinandBorroweragreestoindemnifyandholdAgentsandLendersharmlesswithrespecttotheforegoing,andtorepaytoAdministrativeAgent,forthebenefitofAgentsandLenders,ondemandtheamountthereof,anduntilpaidbyBorrowersuchamountshallbeaddedanddeemedpartoftheLoans,provided,that,nothingcontainedhereinshallbeconstruedtorequireBorrowertopayanyincomeorfranchisetaxesattributabletotheincomeofLendersfromanyamountschargedorpaidhereundertoLenders.TheforegoingindemnityshallsurvivethepaymentoftheObligationsandtheterminationofthisAgreement.

9.5Insurance.

Borrowershall,andshallcauseanySubsidiaryto,atalltimes,maintainwithfinanciallysoundandreputableinsurersinsurancewithrespecttotheCollateralagainstlossordamageandallotherinsuranceofthekindsandintheamountscustomarilyinsuredagainstorcarriedbycorporationsofestablishedreputationengagedinthesameorsimilarbusinessesandsimilarlysituated.SaidpoliciesofinsuranceshallbereasonablysatisfactorytoAdministrativeAgentastoform,amountandinsurer.Borrowershallfurnishcertificates,policiesorendorsementstoAdministrativeAgentasAdministrativeAgentshallrequireasproofofsuchinsurance,and,ifBorrowerfailstodoso,AdministrativeAgentisauthorized,butnotrequired,toobtainafterprovidingwrittennoticethereoftoBorrowersuchinsurancewithrespecttotheCollateralattheexpenseofBorrower.Allpoliciesshallprovideforatleastthirty(30)dayspriorwrittennoticetoAdministrativeAgentofanycancellationorreductionofcoverage.AdministrativeAgentmayactasattorneyforBorrowerinobtaining,andatanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,adjusting,settling,amendingandcancelinganysuchinsurancewhichrelatestotheCollateral.BorrowershallcauseCollateralAgenttobenamedasalosspayeeandeachAgentanadditionalinsured(butwithoutanyliabilityforanypremiums)undersuchinsurancepoliciesrelatingtotheCollateralandBorrowershallobtainnon-contributorylender’slosspayableendorsementstoallsuchinsurancepoliciesinformandsubstancesatisfactorytoAdministrativeAgent.Suchlender’slosspayableendorsementsshallspecifythattheproceedsofsuchinsuranceshallbepayabletoCollateralAgentasitsinterestsmayappearandfurtherspecifythatCollateralAgentshallbepaidregardlessofanyactoromissionbyBorroweroranyofitsAffiliates.AnyinsuranceproceedsreceivedbyCollateralAgentatanytimeshallbeappliedtopaymentoftheObligationsintheorderandmannersetforthinSection6.4(a)hereof.

9.6FinancialStatementsandOtherInformation.

(a)BorrowershallkeepproperbooksandrecordsinwhichtrueandcompleteentriesshallbemadeofalldealingsortransactionsoforinrelationtotheCollateralandthebusinessofBorroweranditsSubsidiaries(ifany)inaccordancewithGAAPandBorrowershallfurnishorcausetobefurnishedtoAdministrativeAgent:(i)withinforty-five(45)daysaftertheendofeachofthefirstthreefiscalquartersofeachfiscalyearofHoldings,(x)quarterlyunauditedconsolidatedfinancialstatements(includingbalancesheets,statementsofincomeandloss,statementsofcashflowandstatementsofshareholders’equity)allinreasonabledetail,fairlypresentingtheconsolidatedfinancialpositionandtheresultsoftheoperationsofHoldingsanditsSubsidiaries,asoftheendofandthroughsuchfiscalquarterand(y)quarterlyunauditedconsolidatedfinancialstatements(includingbalancesheets,statementsofincomeandlossandstatementsofcashflow)allinreasonabledetail,fairlypresentingthefinancialpositionandthe

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resultsoftheoperationsofBorroweranditsSubsidiaries,asoftheendofandthroughsuchfiscalquarter;(ii)withinninety(90)daysaftertheendfiscalyear,(x)auditedconsolidatedfinancialstatementsofHoldingsanditssubsidiaries(includingbalancesheets,statementsofincomeandloss,statementsofcashflowandstatementsofshareholders’equity),andtheaccompanyingnotesthereto,allinreasonabledetail,fairlypresentingtheconsolidatedfinancialpositionandtheresultsoftheoperationsofHoldingsanditssubsidiaries,asoftheendofandforsuchfiscalyear,togetherwiththeopinionofindependentcertifiedpublicaccountants,whichaccountantsshallbeanindependentaccountingfirmselectedbyHoldingsandreasonablyacceptabletoLender,thatsuchfinancialstatementshavebeenpreparedinaccordancewithGAAP,andpresentfairlytheresultsofoperationsandconsolidatedfinancialpositionofHoldingsanditssubsidiariesasoftheendofandforthefiscalyearthenendedand(y)unauditedconsolidatedfinancialstatementsofBorroweranditsSubsidiaries(includingbalancesheets,statementsofincomeandlossandstatementsofcashflow),andtheaccompanyingnotesthereto,allinreasonabledetail,fairlypresentingthefinancialpositionandtheresultsoftheoperationsofBorroweranditsSubsidiaries,asoftheendofandforsuchfiscalyear,togetherwithacertificationfromaseniorofficerofBorrowercertifyingthatsuchfinancialstatementshavebeenpreparedinaccordancewithGAAP,andpresentfairlytheresultsofoperationsandfinancialpositionofBorroweranditsSubsidiariesasoftheendofandforthefiscalyearthenended;and(iii)contemporaneouslywiththematerialsdescribedintheforegoingclause(ii),atrue,completeandcorrectlistofallUnrestrictedSubsidiariesexistingasoftheendofthefiscalyearthatisthesubjectofsuchmaterials.Documentsrequiredtobedeliveredpursuanttothisclause(a)(totheextentanysuchdocumentsareincludedinmaterialsotherwisefiledwiththeSecuritiesandExchangeCommission)maybedeliveredelectronicallyandifsodelivered,shallbedeemedtohavebeendeliveredonthedate(i)onwhichBorrowerpostssuchdocuments,orprovidesalinktheretoonBorrower’swebsiteontheInternetatthewebsiteaddresshttp://www.ulta.com;or(ii)onwhichsuchdocumentsarepostedonBorrower’sbehalfonanInternetorintranetwebsite,ifany,towhicheachLenderandtheAdministrativeAgenthaveaccess(whetheracommercial,third-partywebsiteorwhethersponsoredbyAdministrativeAgent);providedthat:(i)BorrowershalldeliverpapercopiesofsuchdocumentstoAdministrativeAgent,ifrequestedbyAdministrativeAgent,untilawrittenrequesttoceasedeliveringpapercopiesisgivenbyAdministrativeAgentand(ii)BorrowershallnotifyAdministrativeAgentandeachLender(bytelecopierorelectronicmail)ofthepostingofanysuchdocumentsandprovidetoAdministrativeAgentbyelectronicmailelectronicversions(i.e.,softcopies)ofsuchdocuments.AdministrativeAgentshallhavenoobligationtorequestthedeliveryortomaintaincopiesofthedocumentsreferredtoabove,andinanyeventshallhavenoresponsibilitytomonitorcompliancebyBorrowerwithanysuchrequestfordelivery.

(b)BorrowershallpromptlynotifyAdministrativeAgentinwritingofthedetailsof(i)anymaterialloss,damage,investigation,action,suit,proceedingorclaimrelatingtotheCollateraloranyotherpropertywhichissecurityfortheObligationsorwhichhasorwouldhaveaMaterialAdverseEffectand(ii)theoccurrenceofanyEventofDefaultoractconditionoreventwhich,withthepassageoftimeorgivingofnoticeorboth,wouldconstituteanEventofDefault.

(c)BorrowershallpromptlyafterthesendingorfilingthereoffurnishorcausetobefurnishedtoAdministrativeAgentcopiesofallreportswhichBorrowersendstoitsstockholdersgenerallyandcopiesofallreportsandregistrationstatementswhichBorrowerorHoldingsfileswiththeSecuritiesandExchangeCommission,anynationalsecuritiesexchangeortheNationalAssociationofSecuritiesDealers,Inc.

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(d)BorrowershallfurnishorcausetobefurnishedtoAdministrativeAgentsuchbudgets,forecasts,projectionsandotherinformationrespectingtheCollateralandthebusinessofBorrower,asAdministrativeAgentmay,fromtimetotime,reasonablyrequest.AdministrativeAgentisherebyauthorizedtodeliveracopyofanyfinancialstatementoranyotherinformationrelatingtothebusinessofBorrowertoanycourtorotherGovernmentalAuthorityortoanyLenderorParticipantortoanyprospectiveLenderorprospectiveParticipant.BorrowerherebyirrevocablyauthorizesanddirectsallaccountantsorauditorstodelivertoAdministrativeAgent,atBorrower’sexpense,copiesofthefinancialstatementsofBorrowerorHoldingsandanyreportsormanagementletterspreparedbysuchaccountantsorauditorsonbehalfofBorrowerorHoldingsandtodisclosetoanyAgentoranyLendersuchinformationastheymayhaveregardingthebusinessofBorrowerorHoldings.Anydocuments,schedules,invoicesorotherpapersdeliveredtoanyAgentoranyLendermaybedestroyedorotherwisedisposedofbysuchAgentorsuchLenderone(1)yearafterthesamearedeliveredtosuchAgentorsuchLender,exceptasotherwisedesignatedbyBorrowertosuchAgentorsuchLenderinwriting.

9.7SaleofAssets,Consolidation,Merger,Dissolution,Etc.

Borrowershallnot,andshallnotpermitanySubsidiaryto(andnoAgentnoranyLenderauthorizesBorrowerto),directlyorindirectly,

(a)mergeintoorwithorconsolidatewithanyotherPersonorpermitanyotherPersontomergeintoorwithorconsolidatewithitifsuchmergerorconsolidationresultsinaChangeofControl;provided,thatanyObligormaymergeintoanotherObligorortheBorrower(providedthattheBorroweristhesurvivingentityaftergivingeffectthereto)ormaydissolveorceasedoingbusinesssolongastheassetsofsuchObligoraretransferredtotheBorroweroranotherObligor;

(b)sell,assign,lease,transfer,abandonorotherwisedisposeofanyCapitalStockorindebtednesstoanyotherPersonoranyofitsassetstoanyotherPerson,exceptfor

(i)salesofInventoryintheordinarycourseofbusiness,

(ii)thedispositionofworn-outorobsoleteEquipmentsolongas(A)anyproceedsarepaidtoAdministrativeAgentand(B)suchsalesdonotinvolveEquipmenthavinganaggregatefairmarketvalueinexcessof$2,000,000forallsuchEquipmentdisposedofinanyfiscalyearofBorrower;

(iii)salesorotherdispositionsbyBorrowerofassetsinconnectionwiththeclosingorsaleofaretailstorelocationofBorrowerintheordinarycourseofBorrower’sbusinesswhichconsistofleaseholdinterestsinthepremisesofsuchstore,theEquipmentandfixtureslocatedatsuchpremisesandthebooksandrecordsrelatingexclusivelyanddirectlytotheoperationsofsuchstore;provided,that,astoeachandallsuchsales,(A)onthedateof,andaftergivingeffectto,anysuchsale,inanycalendaryear,Borrowershallnothaveclosedor

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soldretailstorelocationsaccountingformorethansevenandone-half(71/2%)percentofallsalesofBorrowerintheimmediatelyprecedingtwelve(12)monthperiod,(B)AdministrativeAgentshallhavereceivednotlessthanten(10)BusinessDayspriorwrittennoticeofsuchsale,whichnoticeshallsetforthinreasonabledetailsatisfactorytoAdministrativeAgent,thepartiestosuchsaleorotherdisposition,theassetstobesoldorotherwisedisposedof,thepurchasepriceandthemannerofpaymentthereofandsuchotherinformationwithrespecttheretoasAdministrativeAgentmayrequest,(C)asofthedateofsuchsaleorotherdispositionandaftergivingeffectthereto,noEventofDefault,oract,conditionoreventwhichwithnoticeorpassageoftimewouldconstituteanEventofDefault,shallexistorhaveoccurred,(D)suchsaleshallbeoncommerciallyreasonablepricesandtermsinabonafidearm’slengthtransaction,and(E)anyandallnetproceedspayableordeliveredtorespectofsuchsaleorotherdispositionshallbepaidordelivered,orcausedtobepaidordelivered,toAdministrativeAgentinaccordancewiththetermsofthisAgreementeither,atAdministrativeAgent’soption,forapplicationtotheObligationsinaccordancewiththetermshereof(excepttotheextentsuchproceedsreflectpaymentinrespectofindebtednesssecuredbyaproperlyperfectedfirstprioritysecurityinterestintheassetssold,inwhichcase,suchproceedsshallbeappliedtosuchindebtednesssecuredthereby)ortobeheldbyAdministrativeAgentascashcollateralfortheObligationsontermsandconditionsacceptabletoAdministrativeAgent;

(iv)sales,assignments,leases,transfersorotherdispositionsofassetsnottoexceedanaggregatefairmarketvalueof$10,000,000forallsuchassetsinanyfiscalyearofBorrower;

(v)othersales,assignments,leases,transfersorotherdispositionsofassetsnototherwisepermittedhereundersolongasExcessAvailabilityshallnotbelessthanthirtypercent(30%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(B)theMaximumCreditcalculatedonaproformabasisbothbeforeandaftergivingeffecttosuchdisposition;provided,thattheaggregatebookvalueofInventorythatmaybesubjecttosuchsales,assignments,leases,transfersorotherdispositionsshallnotexceed$100,000,000intheaggregateduringthetermofthisAgreement;

(vi)salesandissuanceofCapitalStockbytheSubsidiariesofBorrowertoBorrowerorsuchotherwhollyownedSubsidiariesandbyBorroweroranyotherObligor(thatisnotaSubsidiaryofBorrower)toHoldings;

(vii)anysale,releaseorotherdispositionofanyinterestofBorrowerintheStudioGeartrademarkoranyotherintellectualpropertyrightswithrespecttothatbrand;or

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(viii)sales,assignments,leases,transfersorotherdispositionsofassetsfrom(A)BorroweroranyObligortoBorroweroranyotherObligor,(B)anySubsidiarythatisnotanObligortoBorroweroranyotherSubsidiaryand(C)BorroweroranyObligortoaSubsidiarythatisnotanObligor;provided,thatwithrespecttothisclause(C),(1)theconditionssetforthinSection9.10(f)(i)-(iii)shallbesatisfiedwithrespecttoanysuchdispositionand(2)totheextentanyintellectualpropertywhichisrequiredtosellEligibleInventoryissubjecttosuchdisposition,theneithertheAdministrativeAgentshallretainalienonsuchintellectualpropertyortheSubsidiaryholdingsuchintellectualpropertyshallgranttoAdministrativeAgentanon-exclusiveroyaltyfreelicense(upontermsreasonablyacceptabletotheAdministrativeAgent)tousesuchintellectualpropertytosellEligibleInventoryduringthecontinuationofanEventofDefault;

(c)formoracquireanysubsidiariesexceptthatBorroweranditsSubsidiariesmay(i)acquireSubsidiariesinaccordancewithSection9.10(f)and(ii)formadditionalSubsidiaries;provided,thattotheextentanysuchacquiredorformedSubsidiaryisorganizedwithintheUnitedStates(andsubjecttothelimitationssetforthinSection5.2(d)),atthetimethatsuchPersonbecomesaSubsidiary,andpromptlythereafter(andinanyeventwithinten(10)days),Borrowershall,andshallcausesuchSubsidiaryto:(A)totheextentsuchSubsidiaryisnotaSubsidiarydescribedunderclause(y)ofSection5.2(d),becomeanObligorbyexecutinganddeliveringtotheAdministrativeAgentthefollowingdocuments,whichdocumentsshall,forclarity,incorporateastosuchSubsidiary,allrepresentationsandwarrantiesmadebytheBorrowerunderthisAgreementandallaffirmativeandnegativecovenantsapplicabletotheBorrowerunderthisAgreement:(1)aguarantyoftheObligationsinfavoroftheAdministrativeAgent,fortheratablebenefitoftheLenders,(2)asecurityagreement,pursuanttowhichsuchSubsidiarygrantsalientotheCollateralAgent,fortheratablebenefitoftheLenders,onsubstantiallyalltheassetsofsuchSubsidiarytosecuresuchguarantyandtheObligations,ontermsandconditionsconsistentwiththeBorrower’sgrantofliensunderthisAgreementand(3)documentsofthetypereferredtoinclauses(a)and(c)ofSection4.1,togetherwithanyotherdocumentsrequiredbythetermsoftheguarantyandsecurityagreementreferredtoinclauses(1)and(2)above,and(B)pledgetheCapitalStockofsuchSubsidiary(subjecttoSection5.2(d)totheextentsuchSubsidiaryisdescribedtherein)totheAdministrativeAgent,fortheratablebenefitoftheLenders,tosecuretheObligations;ineachcase,inform,contentandscopereasonablysatisfactorytotheAdministrativeAgent(itbeingunderstoodandagreedthat,withrespecttoanyPersonthatwasanUnrestrictedSubsidiarybutceasestosatisfythecriteriatherefor,atthetimethatsuchPersonceasestososatisfy,andpromptlythereafter(andinanyeventwithinten(10)days),Borrowershall,andshallcausesuchSubsidiaryto,becomeanObligor,pledgetheCapitalStockofsuchSubsidiary,andotherwisecomplywiththetermsofthisSection9.7(c));or

(d)agreetodoanyoftheforegoing.

9.8Encumbrances.

Borrowershallnot,andshallnotpermitanySubsidiaryto,create,incur,assume,sufferorpermittoexistanysecurityinterest,mortgage,pledge,lien,chargeorotherencumbranceofanynaturewhatsoeveronanyofitsassetsorproperties,includingtheCollateral,except:(a)the

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securityinterestsandliensofCollateralAgentforitselfandthebenefitofLenders;(b)lienssecuringthepaymentoftaxes,eithernotyetoverdueorthevalidityofwhicharebeingcontestedingoodfaithbyappropriateproceedingsdiligentlypursuedandavailabletoBorrowerorsuchSubsidiary,asthecasemaybeandwithrespecttowhichadequatereserveshavebeensetasideonitsbooks;(c)non-consensualstatutoryliens(otherthanlienssecuringthepaymentoftaxes)arisingintheordinarycourseofBorrower’sorsuchSubsidiary’sbusinesstotheextent:(i)suchlienssecureIndebtednesswhichisnotoverdueor(ii)suchlienssecureIndebtednessrelatingtoclaimsorliabilitieswhicharefullyinsuredandbeingdefendedatthesolecostandexpenseandatthesoleriskoftheinsurerorbeingcontestedingoodfaithbyappropriateproceedingsdiligentlypursuedandavailabletoBorrowerorsuchSubsidiary,ineachcasepriortothecommencementofforeclosureorothersimilarproceedingsandwithrespecttowhichadequatereserveshavebeensetasideonitsbooks;(d)zoningrestrictions,easements,licenses,covenantsandotherrestrictionsaffectingtheuseofrealpropertywhichdonotinterfereinanymaterialrespectwiththeuseofsuchrealpropertyorordinaryconductofthebusinessofBorrowerorsuchSubsidiaryaspresentlyconductedthereonormateriallyimpairthevalueoftherealpropertywhichmaybesubjectthereto;(e)purchasemoneysecurityinterestsinEquipment(includingCapitalLeases)andpurchasemoneymortgagesonrealestatenottoexceed$15,000,000intheaggregateatanytimeoutstandingsolongassuchinterestsandmortgagesdonotapplytoanypropertyofBorrowerotherthantheEquipmentorrealestatesoacquired,andtheindebtednesssecuredtherebydoesnotexceedthecostoftheEquipmentorrealestatesoacquired,andtheindebtednesssecuredtherebydoesnotexceedthecostoftheEquipmentorrealestatesoacquired,asthecasemaybe;(f)liensorrightsofsetoffsorcreditbalancesofBorrowerwithCreditCardProcessorsasaresultoffeesandchargebacks;(g)depositsofcashwiththeownerorlessorofretailstorelocationsleasedandoperatedbyBorrowerintheordinarycourseofthebusinessofBorrowertosecuretheperformancebyBorrowerofitsobligationsunderthetermsoftheleaseforsuchpremises;(h)liensonassetsofBorrowertosecureindebtednessofBorrowerpermittedunderSection9.9(d)below,provided,that,suchliensshallbejuniorandsubordinatetotheliensofCollateralAgentontermsandconditionsacceptabletoCollateralAgent;(i)pledgesanddepositsofcash,CashEquivalentsorinvestmentsecuritiesbyBorrowertosecureindebtednessofBorrowerpermittedunderSection9.9(g)hereof;provided,that,(i)theaggregateamountsopledgedordeposited,togetherwiththeamountofallLetterofCreditAccommodationsissuedinconnectionwithanyHedgingAgreements,shallnotintheaggregateexceed$2,500,000,(ii)asofeachofthethirty(30)daysimmediatelyprecedingthedateofsuchpledgeordepositandaftergivingeffectthereto,ExcessAvailabilityshallnotbelessthan$4,000,000,(iii)suchpledgeordeposit(ortherighttodemandsuchpledgeordeposit)shallberequiredbytheotherpartytotheHedgingAgreementasaconditiontoitenteringintosuchcontractwithBorrowerandAdministrativeAgentshallhavereceivedevidencethereofinformandsubstancesatisfactorytoAdministrativeAgentand(iv)asofthedateofsuchpledgeordepositandaftergivingeffectthereto,noDefaultorEventofDefaultshallexistorhaveoccurredandbecontinuing;and(j)thesecurityinterestsandlienssetforthonSchedule8.4totheInformationCertificate.

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9.9Indebtedness.

Borrowershallnot,andshallnotpermitanySubsidiaryto,incur,create,assume,becomeorbeliableinanymannerwithrespectto,sufferorpermittoexist,anyindebtednessoranyobligationsinrespectoftherepaymentofborrowedmoney,except:

(a)theObligations(excludingthosedescribedinSection9.9(g)below);

(b)tradeobligationsandnormalaccrualsintheordinarycourseofbusinessnotyetdueandpayable,orwithrespecttowhichBorroweriscontestingingoodfaiththeamountorvaliditythereofbyappropriateproceedingsdiligentlypursuedandavailabletoBorrowerandwithrespecttowhichadequatereserveshavebeensetasideonitsbooks;

(c)purchasemoneyindebtedness(includingcapitalleases)totheextentnotincurredorsecuredbyliens(includingcapitalleases)inviolationofanyotherprovisionofthisAgreement;

(d)indebtednessofBorrowerforborrowedmoney(otherthanindebtednesspermittedunderSection9.9(c)aboveorSection9.9(e)below)arisingafterthedatehereofowingtoanypersoninanaggregateamountnottoexceed$20,000,000atanytimeoutstanding;provided,that,astoeachandallofsuchindebtedness:(i)AdministrativeAgentshallhavereceivednotlessthanten(10)BusinessDayspriorwrittennoticeoftheintentiontoincursuchindebtedness,whichnoticeshallsetforthinreasonabledetailsatisfactorytoAdministrativeAgent,theamountofsuchindebtedness,thepersontowhomsuchindebtednesswillbeowed,theinterestrate,thescheduleofrepaymentsandmaturitydatewithrespecttheretoandsuchotherinformationwithrespecttheretoasAdministrativeAgentmayrequest,(ii)AdministrativeAgentshallhavereceivedtrue,correctandcompletecopiesofallagreements,documentsandinstrumentsevidencingorotherwiserelatedtosuchindebtedness,asdulyauthorized,executedanddeliveredbythepartiesthereto,(iii)suchindebtednessshallbeincurredbyBorroweratcommerciallyreasonableratesandtermsinabonafidearm’slengthtransaction,(iv)ifanyofsuchindebtednessistobesecuredbyanyassetsofBorrower,then(A)allofthetermsandconditionsofsuchindebtednessandthepersontowhomsuchindebtednessisowedshallbereasonablyacceptabletoAdministrativeAgent,(B)thesecurityinterestsandliensontheassetsofBorrowerinfavorofsuchpersontosecuresuchindebtednessshallbejuniorandsubordinatetothesecurityinterestsandliensofAdministrativeAgentonsuchassetsontermsandconditionsreasonablyacceptabletoAdministrativeAgent,and(C)AdministrativeAgentshallhavereceived,informandsubstancesatisfactorytoAdministrativeAgent,anintercreditoragreementbetweenAdministrativeAgentandsuchperson,asacknowledgedandagreedtobyBorrower,dulyauthorized,executedanddeliveredbysuchpersonandBorrower,providingfor,interalia,theparties’relativerightsandprioritieswithrespecttotheassetsofBorrower,(v)suchindebtednessshallnotatanytimeincludetermsandconditionswhichinanymanneradverselyaffectAgentsorLendersoranyrightsofeitherAgentorLendersasdeterminedingoodfaithbyAdministrativeAgentandconfirmedbyAdministrativeAgenttoBorrowerinwritingorwhicharemorerestrictiveorburdensomethanthetermsorconditionsofanyotherindebtednessofBorrowerasineffectonthedatehereof(otherthantheObligations),(vi)asofthedateofincurringsuchindebtednessandaftergivingeffectthereto,noEventofDefaultshallexistorhaveoccurred,(vii)Borrowermayonlymakeregularlyscheduledpaymentsofprincipalandinterestinrespectofsuchindebtedness,(viii)Borrowershallnot,directlyorindirectly,(A)amend,modify,alterorchangethetermsoftheagreementswithrespecttosuchindebtedness,except,that,Borrowermay,afterpriorwrittennoticetoAdministrativeAgent,amend,modify,alterorchangethetermsthereofsoastoextendthematuritythereofordeferthetimingofanypaymentsinrespectthereof,ortoforgiveorcancelaportionofsuchindebtedness(otherthanpursuanttopaymentsthereof),ortoreleaseanyliensorsecurityinterestsinanyassetsof

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Borrowerwhichsecuresuchindebtedness(ifany),ortoreducetherateoranyfeesinconnectiontherewith,ortomakeanycovenantscontainedthereinlessrestrictiveorburdensomeastoBorrowerorotherwisemorefavorabletoBorrower(asdeterminedingoodfaithbyAdministrativeAgent),or(B)redeem,retire,defease,purchaseorotherwiseacquiresuchindebtedness,orsetasideorotherwisedepositorinvestanysumsforsuchpurpose,and(ix)BorrowershallfurnishtoAdministrativeAgentallnoticesordemandsinconnectionwithsuchindebtednesseitherreceivedbyBorroweroronitsbehalfpromptlyafterthereceiptthereof,orsentbyBorroweronitsbehalf,concurrentlywiththesendingthereof,asthecasemaybe;

(e)indebtednessofBorrowerforborrowedmoneyafterthedatehereof(otherthanindebtednesspermittedunderSections9.9(c)and(d)above)arisingafterthedatehereof;provided,that,astoeachandallofsuchindebtedness:(i)AdministrativeAgentshallhavereceivednotlessthanten(10)BusinessDayspriorwrittennoticeoftheintentiontoincursuchindebtedness,whichnoticeshallsetforthinreasonabledetailsatisfactorytoAdministrativeAgent,theamountofsuchindebtedness,thepersontowhomsuchindebtednesswillbeowed,theinterestrate,thescheduleofrepaymentsandmaturitydatewithrespecttheretoandsuchotherinformationwithrespecttheretoasAdministrativeAgentmayrequest(ii)AdministrativeAgentshallhavereceivedtrue,correctandcompletecopiesofallagreements,documentsandinstrumentsevidencingorotherwiserelatedtosuchindebtedness,asdulyauthorized,executedanddeliveredbythepartiesthereto,(iii)suchindebtednessshallbeincurredbyBorroweratcommerciallyreasonableratesandtermsinabonafidearm’slengthtransaction,(iv)suchindebtednessisandshallremainatalltimesunsecured,(v)suchindebtednessis,andshallbe,subjectandsubordinateinrightofpaymenttotherightofAdministrativeAgenttoreceivethepriorindefeasiblepaymentandsatisfactioninfullofalloftheObligations,andBorrowershallnotmakeorberequiredtomakepaymentsincashorotherimmediatelyavailablefundsorotherproperty(butmaymakepaymentofinterestbyissuingindebtednessonthesameterms)atanytimeduringthethencurrenttermofthisAgreement,(vi)AdministrativeAgentshallhavereceived,informandsubstancesatisfactorytoAdministrativeAgent,asubordinationagreementbetweenAdministrativeAgentandsuchperson,asacknowledgedandagreedtobyBorrower,dulyauthorized,executedanddeliveredbysuchpersonandBorrower,providingfor,interaliathetermsofthesubordinationinrightofpaymentoftheindebtednessofBorrowertosuchpersontothepriorindefeasiblepaymentandsatisfactioninfullofalloftheObligations,(vii)suchindebtednessshallnotatanytimeincludetermsandconditionswhichinanymanneradverselyaffectAdministrativeAgentoranyrightsofAdministrativeAgentasdeterminedingoodfaithbyAdministrativeAgentandconfirmedbyAdministrativeAgenttoBorrowerinwritingorwhicharemorerestrictiveorburdensomethanthetermsorconditionsofanyotherindebtednessofBorrowerasineffectonthedatehereof(otherthantheObligations),(viii)asofthedateofincurringsuchindebtednessandaftergivingeffectthereto,noEventofDefaultshallexistorhaveoccurred,(ix)Borrowershallnot,directlyorindirectly,(A)amend,modify,alterorchangethetermsoftheagreementswithrespecttosuchindebtedness,except,that,Borrowermay,afterpriorwrittennoticetoAdministrativeAgent,amend,modify,alterorchangethetermsthereofsoastoextendthematuritythereofordeferthetimingofanypaymentsinrespectthereof,ortoforgiveorcancelaportionofsuchindebtedness(otherthanpursuanttoPaymentsthereof),ortoreducetherateoranyfeesinconnectiontherewith,ortomakeanycovenantscontainedthereinlessrestrictiveorburdensomeastoBorrowerorotherwisemorefavorabletoBorrower(asdeterminedingoodfaithbyAdministrativeAgent),or(B)redeem,retire,defease,purchaseorotherwiseacquiresuchindebtedness,orsetasideorotherwisedepositorinvestany

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sumsforsuchpurpose,and(x)BorrowershallfurnishtoAdministrativeAgentallnoticesordemandsinconnectionwithsuchindebtednesseitherreceivedbyBorroweroronitsbehalfpromptlyafterthereceiptthereof,orsentbyBorroweronitsbehalf,concurrentlywiththesendingthereof,asthecasemaybe;

(f)obligationsorindebtednessexistingasofthedatehereofsetforthonSchedule9.9totheInformationCertificate,provided,that,(i)Borrowermayonlymakeregularlyscheduledpaymentsofprincipalandinterestinrespectofsuchindebtednessinaccordancewiththetermsoftheagreementorinstrumentevidencingorgivingrisetosuchindebtednessasineffectonthedatehereof,(ii)Borrowershallnot,directlyorindirectly,(A)amend,modify,alterorchangethetermsofsuchindebtednessoranyagreement,documentorinstrumentrelatedtheretoasineffectonthedatehereof,except,that,Borrowermay,afterpriorwrittennoticetoAdministrativeAgent,amend,modify,alterorchangethetermsthereofsoastoextendthematuritythereofordeferthetimingofanypaymentsinrespectthereof,ortoforgiveorcancelaportionofsuchindebtedness(otherthanpursuanttopaymentsthereof),ortoreducetheinterestrateoranyfeesinconnectiontherewith,ortoreleaseanyoftheliensorsecurityinterestsinanyassetsandpropertiesofBorrowerwhichsecuresuchindebtedness,ortomakeanycovenantscontainedthereinlessrestrictiveorburdensomeastoBorrowerorotherwisemorefavorabletoBorrower(asdeterminedingoodfaithbyAdministrativeAgent),or(B)redeem,retire,defease,purchaseorotherwiseacquiresuchindebtedness,orsetasideorotherwisedepositorinvestanysumsforsuchpurpose,and(iii)BorrowershallfurnishtoAdministrativeAgentallnoticesordemandsinconnectionwithsuchindebtednesseitherreceivedbyBorroweroronitsbehalf,promptlyafterthereceiptthereof,orsentbyBorroweroronitsbehalf,concurrentlywiththesendingthereof,asthecasemaybe;

(g)(A)contingentliabilitiesofBorrowerand/oranyObligorspursuanttoanyHedgingAgreementsenteredintobyBorrowerand/oranyObligors;providedthattheaggregateprincipalnotionalamountofindebtednessthatmaybesubjecttoHedgingAgreementsatanyonetimeshallnotexceed$100,000,000atanytime.Notwithstandinganyprovisionhereintothecontrary,noAffiliateofaLendershallactasacounterpartytoaHedgingAgreementunlessanduntilsuchAffiliateshallhaveenteredintoawrittenagreementandacknowledgementinfavorofAdministrativeAgent,informandsubstancesatisfactorytoAdministrativeAgent,inwhichsuchAffiliateagreestobeboundbythetermsofthisAgreement,inthecapacityasacounterpartytoaHedgingAgreement,inthesamemannerasaLenderhereunder,inthecapacityasacounterpartytoaHedgingAgreementand(B)contingentliabilitiesofBorrowerand/oranyObligorspursuanttoanyOtherHedgingAgreementsenteredintobyBorrowerand/oranyObligors;providedthat(i)LendersshallhavebeengivenareasonableopportunitytomatchtheproposedtermsoftheOtherHedgingAgreementspriortoBorroweroranyObligorenteringintotheOtherHedgingAgreementsand(ii)theaggregateprincipalnotionalamountofindebtednessthatmaybesubjecttoOtherHedgingAgreementsatanyonetimeshallnotexceed$25,000,000;and

(h)indebtednessandobligationsconsistingofintercompanyloans,advancesandotherobligationspermittedunderSections9.10(f),(g)and(h).

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9.10Loans,Investments,Etc.

Borrowershallnot,andshallnotpermitanySubsidiaryto,directlyorindirectly,make,orsufferorpermittoexist,anyloansoradvancemoneyorpropertytoanyperson,oranyinvestmentin(bycapitalcontribution,dividendorotherwise)orpurchaseorrepurchasetheCapitalStockorindebtednessorallorasubstantialpartoftheassetsorpropertyofanyPerson,orguarantee,assume,endorseorotherwisebecomeresponsiblefor(directlyorindirectly)theindebtedness,performance,obligationsordividendsofanyPerson,oragreetodoanyoftheforegoing,except:

(a)theendorsementofinstrumentsforcollectionordepositintheordinarycourseofbusiness;

(b)investmentsinCashEquivalents,provided,that,astoanyoftheforegoing,unlesswaivedinwritingbyAdministrativeAgent,BorrowershalltakesuchactionsasaredeemednecessarybyAdministrativeAgenttoperfectthesecurityinterestofCollateralAgentinsuchinvestments;

(c)loansandadvancesbyBorrowertoemployeesofBorrowernottoexceedtheprincipalamountof$500,000intheaggregateatanytimeoutstandingforreasonableandnecessarywork-relatedtravelorotherordinarybusinessexpensestobeincurredbyemployeesinconnectionwiththeirworkforBorrower;

(d)theexistingloans,advancesandguaranteesbyBorroweroutstandingasofthedatehereofassetforthonSchedule9.10totheInformationCertificate;provided,that,astosuchloans,advancesandguarantees,(i)Borrowershallnotdirectlyorindirectly,(A)amend,modify,alterorchangethetermofsuchloans,advancesorguaranteesoranyagreement,documentorinstrumentrelatedthereto,or(B)astosuchguarantees,redeem,retire,defease,purchaseorotherwiseacquiresuchguaranteeorsetasideorotherwisedepositorinvestanysumsforsuchpurposeand(ii)BorrowershallfurnishtoAdministrativeAgentallnotices,demandsorothermaterialsinconnectionwithsuchloans,advancesorguaranteeseitherreceivedbyBorroweroronitsbehalf,promptlyafterthereceiptthereof,orsentbyBorroweroronitsbehalf,concurrentlywiththesendingthereof,asthecasemaybe;and

(e)loansbyBorrower,totheextenttheyarepermittedbyapplicablelaw,toofficersordirectorsofBorrowernottoexceed$15,000,000intheaggregateatanytime,provided,that,withrespecttoanysuchloan,(i)theofficerordirectorshallhaveexecutedanddeliveredtotheBorrowerapromissorynoteinformandsubstancesufficienttoevidencetheloan,(ii)theloanshallberecordedonthebooksandrecordsofBorrowerinamannersatisfactorytoAdministrativeAgent,(iii)theproceedsoftheloanshallbeusedeithertopurchasecommonorpreferredstockintheBorrower,ortofinancetheexerciseofrestrictedstockoptions,togetherwiththeordinaryincometaxattributabletosuchexercise(provided,thattheaggregateoutstandingamountofsuchloansusedtofinancetaxliabilitiesshallatnotimeexceed$7,500,000),(iv)thestocksopurchasedshallbepledgedbysuchofficerordirectortotheBorrowerassecurityfortheloan,(v)thematuritydateoftheloanshallnotbemorethanten(10)yearsfromthedatetheloanismadeand(vi)theinterestrateontheloanshallbesufficientunderregulationspromulgatedbytheInternalRevenueServicetopreventsuchloanfrombeingtreatedasabelow-marketloancausingtheattributiontosuchofficerordirectorofincomeasaresultoftheloantransaction;

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(f)otherloans,advancesand/orinvestments(includingbycapitalcontribution,dividendorotherwiseorbypurchaseorrepurchaseoftheCapitalStockorindebtednessorallorasubstantialpartoftheassetsorpropertyofanyPerson,orguarantee,assumption,endorsementorotherwisebecomingresponsiblefortheindebtedness,performance,obligationsordividendsofanyPerson),ineachcasetoorinaPersonthatisnottheBorroweroranObligorandaslongas(i)noEventofDefaulthasoccurredandiscontinuingatthetimeofsuchloan,advanceorinvestment,(ii)theaverageExcessAvailabilityfortheprecedingtwelvemonthsmostrecentlyendedshallnothavebeenlessthanthirtypercent(30%)ofthelesserof(A)theaverageamountoftheLoansavailabletoBorrowerduringsuchperiodbasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesestablishedbyAgentshereunderand(B)theMaximumCreditthenineffectand(iii)aftergivingproformaeffecttoanysuchloans,advancesand/orinvestments,projectedExcessAvailabilityasoftheendofeachoftheimmediatelyfollowingtwelvemonthsshallbenotlessthantwenty-fivepercent(25%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(B)theMaximumCredit,(iv)totheextentanysuchinvestmentconstitutesanAcquisition,theconditionssetforthinthedefinitionofPermittedAcquisitionaresatisfiedand(v)anyassetsacquiredinconnectionwithanyinvestmentshallnotbeeligibletobeincludedintheBorrowingBaseuntiltheAdministrativeAgentshallhavehadtheopportunitytoconductsuchduediligenceastheAdministrativeAgentmayrequire,theresultsofwhichshallbesatisfactorytotheAgents;

(g)loans,advancesand/orinvestments(includingcapitalcontributions)(i)fromBorroweroranyObligortoorinBorroweroranyotherObligor,(ii)fromanySubsidiarywhichisnotanObligortoorinanyotherSubsidiarywhichisnotanObligor,and(iii)fromanySubsidiarywhichisnotanObligortoBorroweroranyotherObligorsolongas,withrespecttothisclause(iii)only,atthetimeofanyrepaymentofanysuchloanoradvance,theconditionssetforthinSection9.10(f)(i)-(iii)aresatisfied;

(h)guaranteesbytheBorroweroranyotherObligoroftheperformancebyBorroweroranyotherObligorunderanycontract,leaseorotherobligation;and

(i)loansandadvancestoHoldingsinsuchamounts(inlieuofmaking,andwithoutduplicationof,dividendsanddistributionspermittedunderSection9.11)asarepermittedunderSection9.11asthoughsuchloansandadvancesweremadeasdividends.

9.11DividendsandRedemptions.Borrowershallnot,directlyorindirectly,declareorpayanydividendsonaccountofanysharesofclassofCapitalStockofBorrowernoworhereafteroutstanding,orsetasideorotherwisedepositorinvestanysumsforsuchpurpose,orredeem,retire,defease,purchaseorotherwiseacquireanysharesofanyclassofCapitalStock(orsetasideorotherwisedepositorinvestanysumsforsuchpurpose)foranyconsiderationotherthancommonstockorapplyorsetapartanysum,ormakeanyotherdistribution

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(byreductionofcapitalorotherwise)inrespectofanysuchsharesoragreetodoanyoftheforegoing,except,thatBorrowermaymakedividendsanddistributionsconsistingofitsCapitalStocktoHoldingsand:

(a)BorrowermaymakedividendsanddistributionstoHoldingstopermitHoldingstorepurchaseitssharesofCapitalStockfromanyformeremployeeofHoldingsorBorrower(orinconnectionwithanyseverancearrangementwithanyemployee)totheextentsuchCapitalStockwasobtainedbysuchemployeepursuanttotheexerciseofastockoptionoranyotheremployeestockpurchasearrangementgrantedintheordinarycourseofthebusinessofBorrower;provided,that,(i)noDefaultorEventofDefaultshallexistorhaveoccurredatthetimeoforaftergivingeffecttoanysuchpayments,(ii)theaggregateamountofsuchdividendsanddistributionsbyBorrower(includinganyamountforgivenbyBorrowerwithrespecttoanyloanoradvancemadetoanysuchemployeesunderclause(e)ofSection9.10)toallsuchformeremployeesofBorrowerorHoldingsshallnotinanytwelve(12)monthperiodexceed$25,000,000lesstheamountofanydividendsanddistributionswhicharemadeinsuchperiodunderSection9.11(c)belowandwhicharenotfundedfromaQualifiedPublicOffering,(iii)asofthedateofanysuchdividendsanddistributions,thedailyaverageoftheExcessAvailabilityfortheimmediatelyprecedingthirty(30)consecutivedayperiodshallbenotlessthan$7,500,000,and(iv)thereshallbenolimitationontherightofBorrowertomakesuchpurchasesusingnetcashproceedsofaQualifiedPublicOffering;

(b)BorrowermaydeclareandpaydividendsinrespectoftheCapitalStockofBorrowerconstitutingcommonstock,provided,that,eachofthefollowingconditionsissatisfied:(i)noDefaultorEventofDefaultshallexistorhaveoccurredatthetimeoforaftergivingeffecttoanysuchdividends,(ii)anydividendsshallbeoutoffundslegallyavailabletherefor,(iii)aftergivingproformaeffecttoanysuchdividends,ExcessAvailabilityshallbenotlessthantwentypercent(20%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(B)theMaximumCredit,(iv)projectedExcessAvailabilityasoftheendofeachofthesubsequenttwelvemonthperiodsshallbenotlessthantwentypercent(20%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunder,and(B)theMaximumCredit,and(v)AdministrativeAgentshallhavereceivednotlessthanten(10)BusinessDayspriorwrittennoticeoftheintentionofBorrowertopaysuchdividendsspecifyingtheamountofsuchdividendswhichBorrowerintendstopay,togetherwithprojectionsofExcessAvailabilitysupportedbyasetof12monthfinancialstatements(includingprofitandloss,balancesheetandcashflowstatements)preparedonabasisreasonablyacceptabletotheAdministrativeAgentandLenders(nottobeunreasonablywithheld);

(c)Borrowermaydeclareandpayanyaccruedandunpaiddividends,ormakedividendsanddistributionstoHoldingsforthepurposeofredeemingorretiringanysharesofCapitalStockofHoldings(inadditiontoanydividendspermittedunderSection9.11(a)and(b)above),provided,that,eachofthefollowingconditionsissatisfied:(i)noDefaultorEventofDefaultshallexistorhaveoccurredatthetimeoforaftergivingeffecttoanysuchpayments,(ii)anysuchpaymentsshallbeoutoffundslegallyavailabletherefor,(iii)allsuchpaymentsshalleither(A)bemadesolelywiththenetcashproceedsreceivedbyBorrowerfromaQualifiedPublicOfferingor(B)belimitedtoanamountinanytwelve(12)monthperiodof$25,000,000lessanyamountspaidduringsuchperiodunderSection9.11(a)above,providedthat,asofthedateofanypaymentunderthisSection9.11(c)(iii)(B),(1)thedailyaverageoftheExcess

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Availabilityfortheimmediatelyprecedingthirty(30)consecutivedayperiodshallbenotlessthan$7,500,000,and(iv)AdministrativeAgentshallhavereceivednotlessthanfive(5)BusinessDayspriorwrittennoticeoftheintentionofBorrowertomakesuchpaymentsspecifyingtheamountofsuchpaymentswhichBorrowerintendstomake;

(d)[Reserved];

(e)BorrowermaymakedividendsanddistributionstoHoldingstopermitHoldingstorepurchase,redeemorotherwiseretireanysharesofCapitalStockofHoldings(inadditiontoanyrepurchasesunderSections9.11(a)and(c)above);provided,that,eachofthefollowingconditionsissatisfied:(i)noDefaultorEventofDefaultshallexistorhaveoccurredatthetimeoforaftergivingeffecttoanysuchtransaction,(ii)anypaymentsshallbeoutoffundslegallyavailabletherefor,(iii)aftergivingproformaeffecttoanysuchtransaction,ExcessAvailabilityshallbenotlessthantwentypercent(20%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(B)theMaximumCredit,(iv)projectedExcessAvailabilityasoftheendofeachofthesubsequenttwelvemonthperiodsshallbenotlessthantwentypercent(20%)ofthelesserof(A)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunder,and(B)theMaximumCredit,and(v)AdministrativeAgentshallhavereceivednotlessthanfive(5)BusinessDayspriorwrittennoticeoftheintentionofBorrowertoengageinsuchtransactionspecifyingtheamountofpaymentswhichBorrowerintendstopay,togetherwithprojectionsofExcessAvailabilitysupportedbyasetof12monthfinancialstatements(includingprofitandloss,balancesheetandcashflowstatements)preparedonabasisreasonablyacceptabletotheAdministrativeAgentandLenders(nottobeunreasonablywithheld);

(f)intheeventBorrowerfilesaconsolidated,combined,unitaryorsimilartypeincometaxreturnwithHoldings,BorrowermaymakedividendsanddistributionstoHoldingsinamountsrequiredforHoldingstopayfederalandstateincometaxesthendueandpayablewhicharedirectlyattributabletotheincomeofBorrower;provided,thatsuchamountsareusedbyHoldingsforsuchpurposeanddonot,inanyfiscalyear,exceedtheamountBorrowerwouldhavebeenrequiredtopayinrespectoffederalandstateincometaxesforsuchfiscalyearhadBorrowerbeenastand-alonetaxpayerorstand-alonegroup(separatefromHoldings)forallfiscalyearsendingaftertheFourthAmendmentEffectiveDate;and

(g)BorrowermaymakedividendsanddistributionstoHoldingstopermitHoldingstopay(i)feesandexpenses(includingfranchiseorsimilartaxes)requiredtomaintainitsexistence,customarysalary,bonusandotherbenefitspayableto,andindemnitiesprovidedonbehalfof,officersandemployeesofHoldings,feesandout-of-pocketexpensesforboardofdirectorsandgeneraloperating,complianceandoverheadexpenses(includinglegal,accountingandotherprofessionalfeesandexpenses)ofHoldings,and(ii)feesandexpenses(otherthantoAffiliatesofBorrower)relatedtoanyequityordebtofferingofHoldings(whetherornotsuccessful);provided,thattheaggregateamountofallsuchdividendsanddistributionsmadetoHoldingstopermitHoldingstopayfeesandexpensesdescribedinthisSection9.11(g),totheextentsuchfeesandexpensesarenotdirectlyattributabletotheownershiporoperationoftheObligorsandtheirSubsidiaries,shallnotexceed$5,000,000intheaggregateinanyfiscalyearofBorrower.

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9.12TransactionswithAffiliates.

Exceptfor(a)transactionsbetweenoramongBorrower,itsSubsidiaries,UnrestrictedSubsidiariesandanyotherObligors,and(b)transactionsbetweenoramongBorroweranditsSubsidiaries,anyUnrestrictedSubsidiariesandanyotherObligors,ontheonehand,andothersubsidiariesofHoldings,ontheotherhand(whichexceptionshallnot,ineachcaseoftheseclauses(a)and(b),applytoanysuchtransactionsexpresslyprohibitedbyothersectionsofthisAgreement),Borrowershallnotdirectlyorindirectly,(i)purchase,acquireorleaseanypropertyfromorsell,transferorleaseanypropertyto,anyofficer,employee,shareholder,director,agentoranyotheraffiliateofBorrower,exceptintheordinarycourseofandpursuanttothereasonablerequirementsofBorrower’sbusinessanduponfairandreasonabletermsnolessfavorabletoBorrowerthanBorrowerwouldobtaininacomparablearm’slengthtransactionwithapersonwhoisnotanAffiliateor(ii)makeanypaymentsofmanagement,consultingorotherfeesformanagementorsimilarservices,orofanyIndebtednessowingtoanyofficer,employee,shareholder,directororotherpersonaffiliatedwithBorrowerexceptreasonablecompensationtoofficers,employeesanddirectorsforservicesrenderedtoBorrowerintheordinarycourseofbusiness.

9.13CreditCardAgreements.

Borrowershall(a)complywiththetermsoftheCreditCardAgreementstowhichitisapartytotheextentthefailuretosocomplywouldreasonablybelikelytohaveaMaterialAdverseEffectand(b)deliver,orcausetobedeliveredtoCollateralAgent,aCreditCardNotificationinfavorofCollateralAgentwithrespecttoeachCreditCardAgreementineffect.

9.14MinimumExcessAvailability.

Borrowershall,atalltimes,haveandmaintainExcessAvailabilityofnotlessthantenpercent(10%)ofthelesserof(i)theamountoftheLoansavailabletoBorrowerasofsuchtimebasedontheformulasetforthinSection2.1(a)hereof,subjecttothesublimitsandAvailabilityReservesfromtimetotimeestablishedbyAgentshereunderand(ii)theMaximumCredit;provided,thatExcessAvailabilityshallnotbelessthan$20,000,000atanytime.

9.15CompliancewithERISA.

(a)Borrowershallnotwithrespecttoany“employeebenefitplans”maintainedbyBorroweroranyofitsERISAAffiliates:(i)terminateanyofsuchemployeepensionplanssoastoincuranyliabilitytothePensionBenefitGuarantyCorporationestablishedpursuanttoERISA,(ii)alloworsuffertoexistanyprohibitedtransactioninvolvinganyofsuchemployeebenefitplansoranytrustcreatedthem-underwhichwouldsubjectBorrowerorsuchERISAAffiliatetoataxorpenaltyorotherliabilityonprohibitedtransactionsimposedundertheCodeorERISA,(iii)failtopaytoanysuchemployeebenefitplananycontributionwhichitisobligatedtopayunderERISA,theCodeorthetermofsuchplan,(iv)alloworsuffertoexistanyaccumulatedfundingdeficiency,whetherornotwaived,withrespecttoanysuchemployeebenefitplan,(v)alloworsuffertoexistanyoccurrenceofareportableeventoranyotherevent

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orconditionwhichpresentsamaterialriskofterminationbythePensionBenefitGuarantyCorporationofanysuchemployeebenefitplanthatisasingleemployerplan,whichterminationcouldresultinanyliabilitytothePensionBenefitGuarantyCorporationor(ii)incuranywithdrawalliabilitywithrespecttoanymultiemployerpensionplan.

(b)AsusedinthisSection9.15,theterm“employeepensionbenefitplans,”“employeebenefitplans”,“accumulatedfundingdeficiency”and“reportableevent”shallhavetherespectivemeaningsassignedtotheminERISA,andtheterm“prohibitedtransaction”shallhavethemeaningassignedtoitintheCodeandERISA.

9.16CostsandExpenses.

BorrowershallpaytoeachAgentondemandallreasonablecosts,expenses,filingfeesandtaxespaidorpayableinconnectionwiththepreparation,negotiation,execution,delivery,recording,administration,collection,liquidation,enforcementanddefenseoftheObligations,CollateralAgent’srightsintheCollateral,thisAgreement,theotherFinancingAgreementsandallotherdocumentsrelatedheretoorthereto,includinganyamendments,supplementsorconsentswhichmayhereafterbecontemplated(whetherornotexecuted)orenteredintoinrespecthereofandthereof,including,butnotlimitedto:(a)allcostsandexpensesoffilingorrecording(includingUniformCommercialCodefinancingstatementfilingtaxesandfees,documentarytaxes,intangiblestaxesandmortgagerecordingtaxesandfees,ifapplicable);(b)allreasonableappraisalfeesandsearchfees;(c)costsandexpensesofremittingloanproceeds,collectingchecksandotheritemsofpayment,andestablishingandmaintainingtheBlockedAccounts,togetherwitheachAgent’scustomarychargesandfeeswithrespectthereto;(d)charges,feesorexpenseschargedbyanybankorLCIssuerinconnectionwiththeLetterofCreditAccommodations;(e)reasonablecostsandexpensesofpreservingandprotectingtheCollateral;(f)costsandexpensespaidorincurredinconnectionwithobtainingpaymentoftheObligations,enforcingthesecurityinterestsandliensofCollateralAgent,sellingorotherwiserealizingupontheCollateral,andotherwiseenforcingtheprovisionsofthisAgreementandtheotherFinancingAgreementsordefendinganyclaimsmadeorthreatenedagainstanyAgentoranyLenderarisingoutofthetransactionscontemplatedherebyandthereby(including,withoutlimitation,preparationsforandconsultationsconcerninganysuchmatters);(g)allreasonableout-of-pocketexpensesandcostsheretoforeandfromtimetotimehereafterincurredbyCollateralAgentduringthecourseofperiodicfieldexaminationsoftheCollateralandBorrower’soperations,totheextentrequiredunderSection7.6hereof,and(h)thefeesanddisbursementsofcounsel(includinglegalassistants)toAgentsandLendersinconnectionwithanyoftheforegoing.

9.17FurtherAssurances.

AttherequestofanyAgentatanytimeandfromtimetotime,Borrowershall,atitsexpense,dulyexecuteanddeliver,orcausetobedulyexecutedanddelivered,suchfurtheragreements,documentsandinstruments,anddoorcausetobedonesuchfurtheractsasmaybenecessaryorpropertoevidence,perfect,maintainandenforcethesecurityinterestsandtheprioritythereofintheCollateralandtootherwiseeffectuatetheprovisionsorpurposesofthisAgreementoranyoftheotherFinancingAgreements.AdministrativeAgentmayatanytimeandfromtimetotimerequestacertificatefromanofficerofBorrowerrepresentingthatall

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conditionsprecedenttothemakingofLoansandprovidingLetterofCreditAccommodationscontainedhereinaresatisfied.IntheeventofsuchrequestbyAdministrativeAgent,AgentsandLendersmay,atAdministrativeAgent’soption,ceasetomakeanyfurtherLoansorprovideanyfurtherLetterofCreditAccommodationsuntilAdministrativeAgenthasreceivedsuchcertificateand,inaddition,AdministrativeAgenthasdeterminedthatsuchconditionsaresatisfied.

9.18UnrestrictedSubsidiaries.

Borrowershallnotpermit(a)anyUnrestrictedSubsidiaryunderclause(a)ofthedefinitionof“UnrestrictedSubsidiaries”toengageinanyactivitiesoracquireanyassets(otherthanthoseactivitiesdescribedinclause(a)ofthedefinitionof“UnrestrictedSubsidiaries”andthoseassetsreferredtoinSection8.18)and(b)anyUnrestrictedSubsidiaryunderclause(b)ofthedefinitionof“UnrestrictedSubsidiaries”toacquireanyassets(otherthanthoseassetsreferredtoinSection8.18),ineachcaseunless,priortosuchengagementoracquisition,suchUnrestrictedSubsidiaryshallhavebecomeanObligorhereunderandtakensuchstepsasarerequiredinconnectionwithsuchjoindertotheFinancingAgreementspursuanttoSection9.7(c).

SECTION 10. EVENTS OF DEFAULT AND REMEDIES

10.1EventsofDefault.

Theoccurrenceorexistenceofanyoneormoreofthefollowingeventsisreferredtohereinindividuallyasan“EventofDefault”,andcollectivelyas“EventsofDefault”:

(a)(i)BorrowerfailstopayanyoftheObligationswithinthree(3)BusinessDaysafterthesamebecomesdueandpayableor(ii)BorroweroranyObligorfailstoperformanyofthecovenantscontainedinSections5.3(d),9.1,9.2,9.3,9.4,9.6,9.13,9.14,9.15and9.16ofthisAgreementandsuchfailureshallcontinueforten(10)days;provided,that,suchten(10)dayperiodshallnotapplyinthecaseof:(A)anyfailuretoobserveanysuchcovenantwhichisnotcapableofbeingcuredatallorwithinsuchten(10)dayperiodorwhichhasbeenthesubjectofapriorfailurewithinasix(6)monthperiod(providedthatifanEventofDefaulthasoccurredasaresultoftheBorrower’sfailuretocomplywiththeprovisionsofSection9.14,then,exceptasprovidedinthesubsequentproviso,totheextentthattheBorrowerreceivesacashcapitalcontributioninasufficientamounttocuresuchEventofDefault(totheextentsuchEventofDefaultmaybecuredbyacashcapitalcontribution),whichadditionalcashcapitalcontributionshallbereceivedwithinfifteen(15)daysofthedateuponwhichtheBorrowerhasknowledgeoftheoccurrenceofsuchEventofDefault,thenupontimelysatisfactionoftheforegoingprovisionsinthisproviso,suchEventofDefaultshallbedeemedcuredorwaived;providedfurtherthatiftherighttosocureanyEventofDefaultunderSection9.14hasbeenexercisedontwooccasionsinanyfiscalyearoronsix(6)occasionsaftertheClosingDate,thennofurthercureofsuchfailurehereundermaybemade,orshallberequiredtobeacceptedbytheAgentsandtheLenders,duringtheremainderofsuchfiscalyearorduringtheremainingtermofthisAgreement,asapplicable);or(B)anintentionalbreachbyBorroweroranyObligorofanysuchcovenant,or(iii)Borrowerfailstoperformanyoftheterms,covenants,conditionsorprovisionscontainedinthisAgreementoranyoftheotherFinancingAgreementsotherthanthosedescribedinSections10.1(a)(i)and10.1(a)(ii)above;

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(b)anyrepresentation,warrantyorstatementoffactmadebyBorroweroranyObligortoanyAgentoranyLenderinthisAgreement,theotherFinancingAgreementsoranyotheragreement,schedule,confirmatoryassignmentorotherwiseshallwhenmadeordeemedmadebefalseormisleadinginanymaterialrespect;

(c)anyObligorrevokes,terminatesorfailstoperformanyoftheterms,covenants,conditionsorprovisionsofanyguarantee,endorsementorotheragreementofsuchpartyinfavorofanyAgentoranyLender(excepttotheextentsuchObligornolongerexistsasaresultofamergerordissolutionpermittedunderthisAgreement);

(d)anyjudgmentforthepaymentofmoneyisrenderedagainstBorroweroranyObligorinexcessof$5,000,000inanyonecaseorinexcessof$10,000,000intheaggregateandshallremainundischargedorunvacatedforaperiodinexcessofforty-five(45)daysorexecutionshallatanytimenotbeeffectivelystayed,oranyjudgmentotherthanforthepaymentofmoney,orinjunction,attachment,garnishmentorexecutionisrenderedagainstBorroweroranyObligororanyoftheirassets;

(e)anyObligor(beinganaturalpersonorageneralpartnerofanObligorwhichisapartnership)diesorBorroweroranyObligor,whichisapartnership,limitedliabilitycompany,limitedliabilitypartnershiporacorporation,dissolvesorsuspendsordiscontinuesdoingbusiness,exceptforObligorswhichmaymerge,dissolve,suspendordiscontinuedoingbusinessinaccordancewiththetermsofthisAgreement;

(f)BorroweroranyObligorbecomesinsolvent(howeverdefinedorevidenced),makesanassignmentforthebenefitofcreditors,makesorsendsnoticeofabulktransferorcallsameetingofitscreditorsorprincipalcreditors;

(g)acaseorproceedingunderthebankruptcylawsoftheUnitedStatesofAmericanoworhereafterineffectorunderanyinsolvency,reorganization,receivership,readjustmentofdebt,dissolutionorliquidationlaworstatuteofanyjurisdictionnoworhereafterineffect(whetheratlaworinequity)isfiledagainstBorroweroranyObligororalloranypartofitspropertiesandsuchpetitionorapplicationisnotdismissedwithinsixty(60)daysafterthedateofitsfilingorBorroweroranyObligorshallfileanyansweradmittingornotcontestingsuchpetitionorapplicationorindicatesitsconsentto,acquiescenceinorapprovalof,anysuchactionorproceedingorthereliefrequestedisgrantedsooner;

(h)acaseorproceedingunderthebankruptcylawsoftheUnitedStatesofAmericanoworhereafterineffectorunderanyinsolvency,reorganization,receivership,readjustmentofdebt,dissolutionorliquidationlaworstatuteofanyjurisdictionnoworhereafterineffect(whetheratalaworequity)isfiledbyBorroweroranyObligororforalloranypartofitsproperty;or

(i)anydefaultbyBorroweroranyObligorunderanyagreement,documentorinstrumentrelatingtoanyindebtednessforborrowedmoneyowingtoanypersonotherthanAgentandLenders,oranycapitalizedleaseobligations,contingentindebtednessinconnectionwithanyguarantee,letterofcredit,indemnityorsimilartypeofinstrumentinfavorofanypersonotherthanAgentsandLenders,inanycaseinanamountinexcessof$5,000,000,which

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defaultcontinuesformorethantheapplicablecureperiod,ifany,withrespectthereto,oranydefaultbyBorroweroranyObligorunderanymaterialcontract,lease,licenseorotherobligationtoanypersonotherthanAgentsandLenders,whichdefaultcontinuesformorethantheapplicablecureperiod,ifany,withrespectthereto;

(j)anyChangeofControl;

(k)theindictmentorthreatenedindictmentofBorroweroranyObligorunderanycriminalstatute.orcommencementorthreatenedcommencementofcriminalorcivilproceedingsagainstBorroweroranyObligor,pursuanttowhichstatuteorproceedingsthepenaltiesorremediessoughtoravailableincludeforfeitureofanyofthepropertyofBorrowerorsuchObligor;or

(l)thereshallbeaneventofdefaultunderanyoftheotherFinancingAgreements.

10.2Remedies.

(a)AtanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,AgentsandLendersshallhaveallrightsandremediesprovidedinthisAgreement,theotherFinancingAgreements,theUCCandotherapplicablelaw,allofwhichrightsandremediesmaybeexercisedwithoutnoticetoorconsentbyBorroweroranyObligor,exceptassuchnoticeorconsentisexpresslyprovidedforhereunderorrequiredbyapplicablelaw.Allrights,remediesandpowersgrantedtoAgentsandLendershereunder,underanyoftheotherFinancingAgreements,theUCCorotherapplicablelaw,arecumulative,notexclusive,andenforceable,inAdministrativeAgent’sdiscretion,alternatively,successively,orconcurrentlyonanyoneormoreoccasions,andshallinclude,withoutlimitation,therighttoapplytoacourtofequityforaninjunctiontorestrainabreachorthreatenedbreachbyBorrowerorofthisAgreementoranyoftheotherFinancingAgreements.AdministrativeAgentmay,inaccordancewiththetermshereof,atanytimeortimes,proceeddirectlyagainstBorroweroranyObligortocollecttheObligationswithoutpriorrecoursetoanyObligororanyoftheCollateral.

(b)Withoutlimitingtheforegoing,atanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,AdministrativeAgentmay,initsdiscretion,oruponthedirectionofRequiredLendersshall,and,withoutlimitation,(i)acceleratethepaymentofallObligationsanddemandimmediatepaymentthereoftoAdministrativeAgentforitselfandfortheratablebenefitofLenders(provided,that,upontheoccurrenceofanyEventofDefaultdescribedinSections10.1(g)and10.1(h),allObligationsshallautomaticallybecomeimmediatelydueandpayable),(ii)withorwithoutjudicialprocessortheaidorassistanceofothers,directCollateralAgentto,andCollateralAgentshall,enteruponanypremisesonorinwhichanyoftheCollateralmaybelocatedandtakepossessionoftheCollateralorcompleteprocessing,manufacturingandrepairofalloranyportionoftheCollateral,(iii)requireBorrower,atBorrower’sexpense,toassembleandmakeavailabletoCollateralAgentanypartoralloftheCollateralatanyplaceandtimedesignatedbyCollateralAgent,(iv)directCollateralAgentto,andCollateralAgentshall,collect,foreclose,receive,appropriate,setoffandrealizeuponanyandallCollateral,(v)directCollateralAgentto,andCollateralAgentshall,removeanyoralloftheCollateralfromanypremisesonorinwhichthesamemaybelocatedforthepurposeof

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effectingthesale,foreclosureorotherdispositionthereoforforanyotherpurpose,(vi)directCollateralAgentto,andCollateralAgentshall,sell,lease,transfer,assign,deliverorotherwisedisposeofanyandallCollateral(includingenteringintocontractswithrespectthereto,publicorprivatesalesatanyexchange,broker’sboard,atanyofficeofCollateralAgentorelsewhere)atsuchpricesortermsasCollateralAgentmaydeemreasonable,forcash,uponcreditorforfuturedelivery,withtheCollateralAgenthavingtherighttopurchasethewholeoranypartoftheCollateralatanysuchpublicsale,alloftheforegoingbeingfreefromanyrightorequityofredemptionofBorrower,whichrightorequityofredemptionisherebyexpresslywaivedandreleasedbyBorrower(vii)directtheCollateralAgenttoconductoneormoregoingoutofbusinesssales,intheCollateralAgent’sownrightorbyoneormoreagentsandcontractors.TheCollateralAgentandanysuchagentorcontractor,inconjunctionwithanysuchsale,mayaugmenttheInventorywithothergoods(allofwhichothergoodsshallremainthesolepropertyoftheCollateralAgentorsuchagentorcontractor);anyamountsrealizedfromthesaleofsuchgoodswhichconstituteaugmentationstotheInventory(netofanallocableshareofthecostsandexpensesincurredintheirdisposition)shallbethesolepropertyoftheCollateralAgentorsuchagentorcontractorandneithertheBorrowernoranyPersonclaimingunderorinrightofanyBorrowershallhaveanyinteresttherein;and/or(vii)terminatethisAgreement.IfanyoftheCollateralissoldorleasedbyCollateralAgentuponcredittermsorforfuturedelivery,theObligationsshallnotbereducedasaresultthereofuntilpaymentthereforisfinallycollectedbyCollateralAgent.IfnoticeofdispositionofCollateralisrequiredbylaw,ten(10)dayspriornoticebyCollateralAgenttoBorrowerdesignatingthetimeandplaceofanypublicsaleorthetimeafterwhichanyprivatesaleorotherintendeddispositionofCollateralistobemade,shallbedeemedtobereasonablenoticethereofandBorrowerwaivesanyothernotice.IntheeventanyAgentinstitutesanactiontorecoveranyCollateralorseeksrecoveryofanyCollateralbywayofprejudgmentremedy,Borrowerwaivesthepostingofanybondwhichmightotherwiseberequired.AtanytimeanEventofDefaultexistsorhasoccurredandiscontinuing,uponAdministrativeAgent’srequest,Borrowerwilleither,asAdministrativeAgentshallspecify,furnishcashcollateraltotheLCIssuertobeusedtosecureandfundAgent’sreimbursementobligationstotheLCIssuerinconnectionwithanyLetterofCreditAccommodationsorfurnishcashcollateraltoAdministrativeAgentfortheLetterofCreditAccommodations.Suchcashcollateralshallbeintheamountequaltoonehundredten(110%)percentoftheamountoftheLetterofCreditAccommodationsplustheamountofanyfeesandexpensespayableinconnectiontherewiththroughtheendoftheexpirationofsuchLetterofCreditAccommodations.

(c)TotheextentthatapplicablelawimposesdutiesonanyAgentoranyLendertoexerciseremediesinacommerciallyreasonablemanner(whichdutiescannotbewaivedundersuchlaw),BorroweracknowledgesandagreesthatitisnotcommerciallyunreasonableforAgentsandLenders(i)tofailtoincurexpensesreasonablydeemedsignificantbyanyAgentoranyLendertoprepareCollateralfordispositionorotherwisetocompleterawmaterialorworkinprocessintofinishedgoodsorotherfinishedproductsfordisposition,(ii)tofailtoobtainthirdpartyconsentsforaccesstoCollateraltobedisposedof,ortoobtainor,ifnotrequiredbyotherlaw,tofailtoobtainconsentsofanyGovernmentalAuthorityorotherthirdpartyforthecollectionordispositionofCollateraltobecollectedordisposedof,(iii)tofailtoexercisecollectionremediesagainstaccountdebtors,secondaryobligorsorotherpersonsobligatedonCollateralortoremoveliensorencumbrancesonoranyadverseclaimsagainstCollateral,(iv)toexercisecollectionremediesagainstaccountdebtorsandotherpersonsobligatedonCollateraldirectlyorthroughtheuseofcollectionagenciesandothercollection

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specialists,(v)toadvertisedispositionsofCollateralthroughpublicationsormediaofgeneralcirculation,whetherornottheCollateralisofaspecializednature,(vi)tocontactotherpersons,whetherornotinthesamebusinessasBorrowerforexpressionsofinterestinacquiringalloranyportionoftheCollateral,(vii)tohireoneormoreprofessionalauctioneerstoassistinthedispositionofCollateral,whetherornotthecollateralisofaspecializednature,(viii)todisposeofCollateralbyutilizingInternetsitesthatprovidefortheauctionofassetsofthetypesincludedintheCollateralorthathavethereasonablecapabilityofdoingso,orthatmatchbuyersandsellersofassets,(ix)todisposeofassetsinwholesaleratherthanretailmarkets,(x)todisclaimdispositionwarranties,(xi)topurchaseinsuranceorcreditenhancementstoinsureAgentsandLendersagainstrisksofloss,collectionordispositionofCollateralortoprovidetoCollateralAgentaguaranteedreturnfromthecollectionordispositionofCollateral,or(xii)totheextentdeemedappropriatebyCollateralAgent,toobtaintheservicesofotherbrokers,investmentbankers,consultantsandotherprofessionalstoassistCollateralAgentinthecollectionordispositionofanyoftheCollateral.BorroweracknowledgesthatthepurposeofthisSectionistoprovidenon-exhaustiveindicationsofwhatactionsoromissionsbyCollateralAgentwouldnotbecommerciallyunreasonableinCollateralAgent’sexerciseofremediesagainsttheCollateralandthatotheractionsoromissionsbyanyAgentoranyLendershallnotbedeemedcommerciallyunreasonablesolelyonaccountofnotbeingindicatedinthisSection.Withoutlimitationoftheforegoing,nothingcontainedinthisSectionshallbeconstruedtograntanyrightstoBorrowerortoimposeanydutiesonanyAgentoranyLenderthatwouldnothavebeengrantedorimposedbythisAgreementorbyapplicablelawintheabsenceofthisSection.

(d)ForthepurposeofenablingAgentstoexercisetherightsandremedieshereunder,BorrowerherebygrantstoAgents,totheextentassignable,anirrevocable,non-exclusivelicense(exercisablewithoutpaymentofroyaltyorothercompensationtoBorrower)touse,assign,licenseorsublicenseanyofthetrademarks,service-marks,tradenames,businessnames,tradestyles,designs,logosandothersourceofbusinessidentifiersandotherIntellectualProperty,generalintangiblesandotherassetsdescribedinSection5.2ofthisAgreement,nowownedorhereafteracquiredbyBorrower,whereverthesamemaybelocated,includinginsuchlicensereasonableaccesstoallmediainwhichanyofthelicenseditemsmayberecordedorstoredandtoallcomputerprogramsusedforthecompilationorprintoutthereof.

(e)AdministrativeAgentmayapplythecashproceedsofCollateralactuallyreceivedbyCollateralAgentfromanysale,lease,foreclosureorotherdispositionoftheCollateraltopaymentoftheObligations,inwholeorinpartandinsuchorderasAdministrativeAgentmayelect,whetherornotthendue.BorrowershallremainliabletoAgentsandLendersforthepaymentofanydeficiencywithinterestatthehighestrateprovidedforhereinandallcostsandexpensesofcollectionorenforcement,includingattorneys’feesandlegalexpenses.

(f)Withoutlimitingtheforegoing,upontheoccurrenceofaDefaultorEventofDefault,AdministrativeAgentmay,atitsoption,oruponthedirectionofRequiredLendersshall,withoutnotice,(i)ceasemakingLoansorarrangingforLetterofCreditAccommodationsorreducethelendingformulasoramountsofRevolvingLoansandLetterofCreditAccommodationsavailabletoBorrowerand/or(ii)terminateanyprovisionofthisAgreementprovidingforanyfutureLoansorLetterofCreditAccommodationstobemadebyAgentsandLenderstoBorrower.

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SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW

11.1GoverningLaw;ChoiceofForum;ServiceofProcess;JuryTrialWaiver.

(a)Thevalidity,interpretationandenforcementofthisAgreementandtheotherFinancingAgreementsandanydisputearisingoutoftherelationshipbetweenthepartieshereto,whetherincontract,tort,equityorotherwise,shallbegovernedbytheinternallawsoftheStateofIllinois(withoutgivingeffecttoprinciplesofconflictsoflaw).

(b)Borrower,AgentsandLendersirrevocablyconsentandsubmittothenon-exclusivejurisdictionoftheCircuitCourtofCookCounty,IllinoisandtheUnitedStatesDistrictCourtfortheNorthernDistrictofIllinoisandwaiveanyobjectionbasedonvenueorforumnonconvenienswithrespecttoanyactioninstitutedthereinarisingunderthisAgreementoranyoftheotherFinancingAgreementsorinanywayconnectedwithorrelatedorincidentaltothedealingsofthepartiesheretoinrespectofthisAgreementoranyoftheotherFinancingAgreementsorthetransactionsrelatedheretoorthereto,ineachcasewhethernowexistingorhereafterarising,andwhetherincontract,tort,equityorotherwise,andagreethatanydisputewithrespecttoanysuchmattersshallbeheardonlyinthecourtsdescribedabove(exceptthatAgentsandLendersshallhavetherighttobringanyactionorproceedingagainstBorroweroritspropertyinthecourtsofanyotherjurisdictionwhichAdministrativeAgentdeemsnecessaryorappropriateinordertorealizeontheCollateralortootherwiseenforceitsrightsagainstBorroweroritsproperty).

(c)Borrowerherebywaivespersonalserviceofanyandallprocessuponitandconsentsthatallsuchserviceofprocessmaybemadebycertifiedmail(returnreceiptrequested)directedtoitsaddresssetforthhereinandservicesomadeshallbedeemedtobecompletedfive(5)daysafterthesameshallhavebeensodepositedintheU.S.mails,or,atAdministrativeAgent’soption,byserviceuponBorrowerinanyothermannerprovidedundertherulesofanysuchcourts.Withinthirty(30)daysaftersuchservice,Borrowershallappearinanswertosuchprocess,failingwhichBorrowershallbedeemedindefaultandjudgmentmaybeenteredbyAdministrativeAgentagainstBorrowerfortheamountoftheclaimandotherreliefrequested.

(d)BORROWER,AGENTSANDLENDERSEACHHEREBYWAIVESANYRIGHTTOTRIALBYJURYOFANYCLAIM,DEMAND,ACTIONORCAUSEOFACTION(i)ARISINGUNDERTHISAGREEMENTORANYOFTHEOTHERFINANCINGAGREEMENTSOR(ii)INANYWAYCONNECTEDWITHORRELATEDORINCIDENTALTOTHEDEALINGSOFTHEPARTIESHERETOINRESPECTOFTHISAGREEMENTORANYOFTHEOTHERFINANCINGAGREEMENTSORTHETRANSACTIONSRELATEDHERETOORTHERETOINEACHCASEWHETHERNOWEXISTINGORHEREAFTERARISING,ANDWHETHERINCONTRACT,TORT,EQUITYOROTHERWISE.BORROWER,AGENTSANDLENDERSEACHHEREBYAGREESANDCONSENTSTHATANYSUCHCLAIM,DEMAND,ACTIONORCAUSEOFACTIONSHALLBEDECIDEDBYCOURTTRIALWITHOUTAJURYANDTHATBORROWERORLENDERMAYFILEANORIGINALCOUNTERPARTOFACOPYOFTHISAGREEMENTWITHANYCOURTASWRITTENEVIDENCEOFTHECONSENTOFTHEPARTIESHERETOTOTHEWAIVEROFTHEIRRIGHTTOTRIALBYJURY.

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(e)AgentsandLendersshallnothaveanyliabilitytoBorrower(whetherintort,contract,equityorotherwise)forlossessufferedbyBorrowerinconnectionwith,arisingoutof,orinanywayrelatedtothetransactionsorrelationshipscontemplatedbythisAgreement,oranyact,omissionoreventoccurringinconnectionherewith,unlessitisdeterminedbyafinalandnon-appealablejudgmentorcourtorderbindingonsuchAgentandsuchLender,thatthelossesweretheresultofactsoromissionsconstitutinggrossnegligenceorwillfulmisconductofsuchAgentorsuchLender.Inanysuchlitigation,AgentsandLendersshallbeentitledtothebenefitoftherebuttablepresumptionthatitactedingoodfaithandwiththeexerciseofordinarycareintheperformancebyitofthetermsofthisAgreement.

11.2WaiverofNotices.

Borrowerherebyexpresslywaivesdemand,presentment,protestandnoticeofprotestandnoticeofdishonorwithrespecttoanyandallinstrumentsandchattelpaper,includedinorevidencinganyoftheObligationsortheCollateral,andanyandallotherdemandsandnoticesofanykindornaturewhatsoeverwithrespecttotheObligations,theCollateralandthisAgreement,exceptsuchasareexpresslyprovidedforherein.NonoticetoordemandonBorrowerwhichanyAgentoranyLendermayelecttogiveshallentitleBorrowertoanyotherorfurthernoticeordemandinthesame,similarorothercircumstances.

11.3AmendmentsandWaivers.

(a)ExceptforactionsexpresslypermittedtobetakenbyanyAgent,noamendment,modification,terminationorwaiverofanyprovisionofthisAgreementoranyotherFinancingAgreement,oranyconsenttoanydeparturebyBorrowertherefrom,shallinanyeventbeeffectiveunlessthesameshallbeinwritingandsignedbyanauthorizedofficerofAdministrativeAgentandBorrower,andbyRequiredLendersorallaffectedLenders,asapplicable.Exceptassetforthinclauses(b)and(c)below,allsuchamendments,modifications,terminationsorwaiversrequiringtheconsentofanyLendersshallrequirethewrittenconsentofRequiredLenders.

(b)Noamendment,modification,terminationorwaiveroforconsentwithrespecttoanyprovisionofthisAgreementthat(i)increasesthepercentageadvanceratessetforthinSection2.1(a)hereof,makeslessrestrictivethenondiscretionarycriteriaforexclusionfrom“EligibleInventory”setforthinthedefinitionofsuchterm,or(ii)amendsSection12.8hereoforamendsthemaximumdollaramountinSection12.11(a)(i)hereofshallbeeffectiveunlessthesameshallbeinwritingandsignedbyAdministrativeAgent,eachoftheLendersandBorrower.Noamendment,modification,terminationorwaiveroforconsentwithrespecttoanyprovisionofthisAgreementthatwaivescompliancewiththeconditionsprecedentsetforthinSection4.2tothemakingofanyRevolvingLoanortheincurrenceofanyLetterofCreditAccommodationshallbeeffectiveunlessthesameshallbeinwritingandsignedbyAdministrativeAgent,RequiredLendersandBorrower.NotwithstandinganythingcontainedinthisAgreementtothecontrary,nowaiverorconsentwithrespecttoanyEventofDefaultshallbeeffectiveforpurposesoftheconditionsprecedenttothemakingofRevolvingLoansortheincurrenceofLetterofCreditAccommodationssetforthinSection4.2unlessthesameshallbeinwritingandsignedbyAdministrativeAgent,RequiredLendersandBorrower.

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(c)Noamendment,modification,terminationorwaivershall,unlessinwritingandsignedbyAdministrativeAgentandeachLenderdirectlyaffectedthereby:(i)increasetheprincipalamountofsuchLender’sCommitmentovertheamountthenineffect;(ii)reducetheprincipalof,rateofinterestonorfeespayablewithrespecttoanyLoanorLetterofCreditAccommodationsofanyaffectedLender;(iii)extendanyscheduledpaymentdateorfinalmaturitydateoftheprincipalamountofanyLoanofanyaffectedLender;(iv)waive,forgive,defer,extendorpostponeanypaymentofinterestorfeesastoanyaffectedLender;(v)releaseanyObligorexceptasotherwisepermittedherein(whichactionshallbedeemedtodirectlyaffectallLenders);(vi)changethepercentageoftheCommitmentsoroftheaggregateunpaidprincipalamountoftheLoansthatshallberequiredforLendersoranyofthemtotakeanyactionhereunder(whichactionshallbedeemedtodirectlyeffectallLenders);(vii)amendorwaivethisSection11.3orthedefinitionoftheterm“RequiredLenders”insofarassuchdefinitionaffectsthesubstanceofthisSection11.3;or(viii)permittheassignmentortransferbyBorrowerofanyofitsrightandobligationshereunder(whichactionshallbedeemedtodirectlyaffectallLenders).

(d)Noamendment,modification,terminationorwaivershall,unlessotherwisepermittedbythisAgreementorunlessconsentedtoinwritingandsignedbyAdministrativeAgentandallLenders,(i)release,orpermitBorroweroranyObligortosellorotherwisedisposeof,allorsubstantiallyalloftheCollateral,orreleaseanyObligorfromanyguarantyofanyoralloftheObligationsor(ii)amendSection6.4(a)hereof.

(e)AgentsandLendersshallnot,byanyact,delay,omissionorotherwisebedeemedtohaveexpresslyorimpliedlywaivedanyofitsortheirrights,powersand/orremediesunlesssuchwaivershallbeinwritingandsignedasprovidedherein.Anysuchwaivershallbeenforceableonlytotheextentspecificallysetforththerein.AwaiverbyanyAgentoranyLenderofanyright,powerand/orremedyonanyoneoccasionshallnotbeconstruedasabartoorwaiverofanysuchright,powerand/orremedywhichanyAgentoranyLenderwouldotherwisehaveonanyfutureoccasion,whethersimilarinkindorotherwise.

(f)TheconsentofeachAgentshallberequiredforanyamendment,waiverorconsentaffectingtherightsordutiesofsuchAgenthereunderorunderanyoftheotherFinancingAgreements,inadditiontotheconsentoftheLendersotherwiserequiredbythisSection.

(g)TheconsentofSwingLineLendershallberequiredforanyamendment,waiverorconsentaffectingtherightsordutiesoftheSwingLineLenderinitscapacityassuch.

11.4WaiverofCounterclaims.

Borrowerwaivesallrightstointerposeanyclaims,deductions,setoffsorcounterclaimsofanynature(otherthancompulsorycounterclaims)inanyactionorproceedingwithrespecttothisAgreement,theObligations,theCollateraloranymatterarisingtherefromorrelatingheretoorthereto.

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11.5Indemnification.

BorrowershallindemnifyandholdeachAgentandeachLender,andtheirrespectivedirectors,agents,employeesandcounsel,harmlessfromandagainstanyandalllosses,claims,damages,liabilities,costsorexpensesimposedon,incurredbyorassertedagainstanyoftheminconnectionwithanylitigation,investigation,claimorproceedingcommencedorthreatenedrelatedtothenegotiation,preparation,execution,delivery,enforcement,performanceoradministrationofthisAgreement,anyotherFinancingAgreements,oranyundertakingorproceedingrelatedtoanyofthetransactionscontemplatedherebyoranyact,omission,eventortransactionrelatedorattendantthereto,includingamountspaidinsettlement,courtcosts,andthefeesandexpensesofcounselexceptforanysuchlosses,claims,liabilities,costsorexpensesresultingfromthegrossnegligenceorwillfulmisconductofanyAgentoranyLenderasdeterminedpursuanttoafinalnon-appealableorderofacourtofcompetentjurisdiction.Totheextentthattheundertakingtoindemnify,payandholdharmlesssetforthinthisSectionmaybeunenforceablebecauseitviolatesanylaworpublicpolicy,BorrowershallpaythemaximumportionwhichitispermittedtopayunderapplicablelawtoAgentsandLendersinsatisfactionofindemnifiedmattersunderthisSection.TheforegoingindemnityshallsurvivethepaymentoftheObligationsandtheterminationofthisAgreement.

SECTION 12. THE AGENT S

12.1Appointment,PowersandImmunities.

EachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreement)irrevocablydesignates,appointsandauthorizesWellsFargotoactasbothAdministrativeAgentandCollateralAgent,hereunderandundertheotherFinancingAgreementswithsuchpowersasarespecificallydelegatedtoAdministrativeAgentandCollateralAgent,respectivelybythetermsofthisAgreementandoftheotherFinancingAgreements,togetherwithsuchotherpowersasarereasonablyincidentalthereto.Agents(a)shallhavenodutiesorresponsibilitiesexceptthoseexpresslysetforthinthisAgreementandintheotherFinancingAgreements,andshallnotbyreasonofthisAgreementoranyotherFinancingAgreementbeatrusteeorfiduciaryforanyLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices);(b)shallnotberesponsibletoLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)foranyrecitals,statements,representationsorwarrantiescontainedinthisAgreementorinanyoftheotherFinancingAgreements,orinanycertificateorotherdocumentreferredtoorprovidedforin,orreceivedbyanyofthemunder,thisAgreementoranyotherFinancingAgreement,orforthevalue,validity,effectiveness,genuineness,enforceabilityorsufficiencyofthisAgreementoranyotherFinancingAgreementoranyotherdocumentreferredtoorprovidedforhereinorthereinorforanyfailurebyBorroweroranyObligororanyotherPersontoperformanyofitsobligationshereunderorthereunder;and(c)shallnotberesponsibletoLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)foranyactiontakenoromittedtobetakenbyithereunderorunderanyotherFinancingAgreementorunderanyotherdocumentorinstrumentreferredtoorprovidedforhereinorthereinorinconnectionherewithortherewith,exceptforitsowngrossnegligenceorwillfulmisconductasdetermined

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byafinalnon-appealablejudgmentofacourtofcompetentjurisdiction.EachAgentmayemployagentsandattorneys-in-factandshallnotberesponsibleforthenegligenceormisconductofanysuchagentsorattorneys-in-factselectedbyitingoodfaith.Agentsmaydeemandtreatthepayeeofanynoteastheholderthereofforallpurposeshereofunlessanduntiltheassignmentthereofpursuanttoanagreement(ifandtotheextentpermittedherein)informandsubstancesatisfactorytoAgentsshallhavebeendeliveredtoandacknowledgedbyAgents.

12.2ReliancebyAgents.

EachAgentshallbeentitledtorelyuponanycertification,noticeorothercommunication(includinganythereofbytelephone,telecopy,telex,telegramorcable)believedbyittobegenuineandcorrectandtohavebeensignedorsentbyoronbehalfoftheproperPersonorPersons,anduponadviceandstatementsoflegalcounsel,independentaccountantsandotherexpertsselectedbysuchAgent.AstoanymattersnotexpresslyprovidedforbythisAgreementoranyotherFinancingAgreement,eachAgentshallinallcasesbefullyprotectedinacting,orinrefrainingfromacting,hereunderorthereunderinaccordancewithinstructionsgivenbytheRequiredLendersorallLendersasisrequiredinsuchcircumstance,andsuchinstructionsofsuchAgentandanyactiontakenorfailuretoactpursuanttheretoshallbebindingonallLenders.

12.3EventsofDefault.

(a)AgentsshallnotbedeemedtohaveknowledgeornoticeoftheoccurrenceofanEventofDefaultorotherfailureofaconditionprecedenttotheLoansandLetterofCreditAccommodationshereunder,unlessanduntiltherespectiveAgenthasreceivedwrittennoticefromaLender,orBorrowerspecifyingsuchEventofDefaultoranyunfulfilledconditionprecedent,andstatingthatsuchnoticeisa“NoticeofDefaultorFailureofCondition”.IntheeventthatAdministrativeAgentreceivessuchaNoticeofDefaultorFailureofCondition,AdministrativeAgentshallgivepromptnoticethereoftotheLenders.EachAgentshall(subjecttoSection12.7)takesuchactionwithrespecttoanysuchEventofDefaultorfailureofconditionprecedentasshallbedirectedbytheRequiredLenders.NotwithstandingtheexistenceoroccurrenceandcontinuanceofanEventofDefaultoranyotherfailuretosatisfyanyoftheconditionsprecedentsetforthinSection4ofthisAgreementtothecontrary,AdministrativeAgentmay,butshallhavenoobligationto,continuetomakeRevolvingLoansandissueorcausetobeissuedLetterofCreditAccommodationsfortheratableaccountandriskofLendersfromtimetotimeifAdministrativeAgentbelievesmakingsuchRevolvingLoansorissuingorcausingtobeissuedsuchLetterofCreditAccommodationsisinthebestinterestsofLenders.

(b)ExceptwiththepriorwrittenconsentofAdministrativeAgent,neitherCollateralAgentnoranyLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreement)mayassertorexerciseanyenforcementrightorremedyinrespectoftheLoans,LetterofCreditAccommodationsorotherObligations,asagainstBorroweroranyObligororanyoftheCollateralorotherpropertyofBorroweroranyObligor.

12.4WellsFargoinitsIndividualCapacity.

WithrespecttoanyCommitmentitmaymakeandanyLoansmadeandLetterofCreditAccommodationsissuedorcausedtobeissuedbyit(andanysuccessoractingasanAgent),if

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andtotheextentthatWellsFargoshallbeaLenderhereunder,itshallhavethesamerightsandpowershereunderasanyotherLenderandmayexercisethesameasthoughitwerenotactingasanAgent,andtheterm“Lender”or“Lenders”shall,unlessthecontextotherwiseindicates,includeWellsFargoinitsindividualcapacityasLenderhereunder.WellsFargo(andanysuccessoractingasAdministrativeAgentorCollateralAgent,respectively)anditsAffiliatesmay(withouthavingtoaccountthereforetoanyLender)lendmoneyto,makeinvestmentsinandgenerallyengageinanykindofbusinesswithBorrower(andanyofitsSubsidiariesorAffiliates)asifitwerenotactingasanAgent,andWellsFargoanditsAffiliatesmayacceptfeesandotherconsiderationfromBorrowerandanyofitsSubsidiariesandAffiliatesforservicesinconnectionwiththisAgreementorotherwisewithouthavingtoaccountforthesametoLenders.

12.5Indemnification.

Lenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)agreetoindemnifyAgents(totheextentnotreimbursedbyBorrowerhereunderandwithoutlimitinganyobligationsofBorrowerhereunder)ratably,inaccordancewiththeirProRataShares,foranyandallclaimsofanykindandnaturewhatsoeverthatmaybeimposedon,incurredbyorassertedagainstanyAgent(includingbyanyLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices))arisingoutoforbyreasonofanyinvestigationinorinanywayrelatingtoorarisingoutofthisAgreement,anyHedgingAgreement,anyBankProduct,anyCashManagementServices,oranyotherFinancingAgreementoranyotherdocumentscontemplatedbyorreferredtohereinorthereinorthetransactionscontemplatedherebyorthereby(includingthecostsandexpensesthateachAgentisobligatedtopayhereunder)ortheenforcementofanyofthetermshereoforthereoforofanysuchotherdocuments,provided,that,noLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)shallbeliableforanyoftheforegoingtotheextentitarisesfromthegrossnegligenceorwillfulmisconductofthepartytobeindemnifiedasdeterminedbyafinalnon-appealablejudgmentofacourtofcompetentjurisdiction,andfurtherprovidedthatifnoEventofDefaulthasoccurred,theLendersshallnotbeobligatedtoreimbursetheAgentsforanycostsincurredinconnectionwithfieldexaminationsunderSection7.6hereofinexcessof$15,000inanyyear.

12.6Non-RelianceonAgentsandOtherLenders.

EachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)agreesthatithas,independentlyandwithoutrelianceonanyAgentorotherLenders,andbasedonsuchdocumentsandinformationasithasdeemedappropriate,madeitsowncreditanalysisofBorrowerandObligorsandhasmadeitsowndecisiontoenterintothisAgreementandthatitwill,independentlyandwithoutrelianceuponanyAgentoranyotherLender,andbasedonsuchdocumentsandinformationasitshalldeemappropriateatthetime,continuetomakeitsownanalysisanddecisionsintakingornottakingactionunderthisAgreementoranyoftheotherFinancingAgreements.NeitherAgentshallberequiredtokeepitselfinformedastotheperformanceorobservancebyBorroweroranyObligorofanytermorprovisionofthisAgreementoranyoftheotherFinancingAgreementsoranyotherdocumentreferredtoorprovidedforhereinorthereinortoinspectthepropertiesorbooksofBorroweroranyObligor.

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AdministrativeAgentwillusereasonableeffortstoprovideLenderswithanyinformationreceivedbyAdministrativeAgentfromBorroweroranyObligorregardingitsfinancialperformanceortheCollateral(includingthecollateralreportsidentifiedinSection7.1andthefinancialinformationdeliveredbytheBorrowerhereunder)orwhichisotherwiserequiredtobeprovidedtoLendershereunderandwithacopyofanyNoticeofDefaultorFailureofConditionreceivedbyAdministrativeAgentfromBorroweroranyLender;provided,that,AdministrativeAgentshallnotbeliabletoanyLenderforanyfailuretodoso,excepttotheextentthatsuchfailureisattributabletoAdministrativeAgent’sowngrossnegligenceorwillfulmisconductasdeterminedbyafinalnon-appealablejudgmentofacourtofcompetentjurisdiction.

12.7FailuretoAct.

ExceptforactionexpresslyrequiredofAgentshereunderandundertheotherFinancingAgreements,eachAgentshallinallcasesbefullyjustifiedinfailingorrefusingtoacthereunderandthereunderunlessitshallreceivefurtherassurancestoitssatisfactionfromLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)oftheirindemnificationobligationsunderSection12.5hereofagainstanyandallliabilityandexpensethatmaybeincurredbyitbyreasonoftakingorcontinuingtotakeanysuchaction.

12.8AdditionalLoans.

AdministrativeAgentshallnotmakeanyRevolvingLoansorprovideanyLetterofCreditAccommodationstoBorroweronbehalfofLendersintentionallyandwithactualknowledgethatsuchRevolvingLoansorLetterofCreditAccommodationswouldcausetheaggregateamountofthetotaloutstandingRevolvingLoansandLetterofCreditAccommodationstoBorrowertoexceedtheamountoftheLoansavailabletoBorrowerasofsuchtimebasedonthelendingformulassetforthinSection2.1(a),withoutthepriorconsentofallLenders,except,that,AdministrativeAgentmaymakesuchadditionalRevolvingLoansorprovidesuchadditionalLetterofCreditAccommodationsonbehalfofLenders,intentionallyandwithactualknowledgethatsuchLoansorLetterofCreditAccommodationswillcausethetotaloutstandingRevolvingLoansandLetterofCreditAccommodationstoBorrowertoexceedtheamountoftheLoansavailabletoBorrowerasofsuchtimebasedonthelendingformulassetforthinSection2.1(a),asAdministrativeAgentmaydeemnecessaryoradvisableinitsdiscretion,provided,that:(a)thetotalprincipalamountoftheadditionalRevolvingLoansoradditionalLetterofCreditAccommodationstoBorrowerwhichAdministrativeAgentmaymakeorprovideafterobtainingsuchactualknowledgethattheaggregateprincipalamountoftheRevolvingLoansequalorexceedtheamountoftheLoansavailabletoBorrowerasofsuchtimebasedonthelendingformulassetforthinSection2.1.(a)shallnotexceedtheamountequalto$10,000,000outstandingatanytimelessthethenoutstandingamountofanySpecialAgentAdvancesandshallnotcausethetotalprincipalamountoftheRevolvingLoansandLetterofCreditAccommodationstoexceedtheMaximumCreditand(b)withouttheconsentofallLenders,AdministrativeAgentshallnotmakeanysuchadditionalRevolvingLoansorLetterofCreditAccommodationsmorethansixty(60)daysfromthedateofthefirstsuchadditionalRevolvingLoansorLetterofCreditAccommodations.EachLendershallbeobligatedtopayAdministrativeAgenttheamountofitsProRataShareofanysuchadditionalRevolvingLoansorLetterofCreditAccommodationsprovidedthatAdministrativeAgentisactinginaccordancewiththetermsofthisSection12.8.

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12.9ConcerningtheCollateralandtheRelatedFinancingAgreements.

EachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)authorizesanddirectsAgentstoenterintothisAgreementandtheotherFinancingAgreements.EachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)agreesthatanyactiontakenbyanyAgentorRequiredLendersorallLendersinaccordancewiththetermsofthisAgreementortheotherFinancingAgreementsandtheexercisebyanyAgentoranycategoryofLendersoftheirrespectivepowerssetforththereinorherein,togetherwithsuchotherpowersthatarereasonablyincidentalthereto,shallbebindinguponalloftheLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices).

12.10FieldAudit,ExaminationReportsandotherInformation;DisclaimerbyLenders.

BysigningthisAgreement,eachLender:

(a)isdeemedtohaverequestedthatCollateralAgentfurnishsuchLender,promptlyafteritbecomesavailable,acopyofeachfieldauditorexaminationreportandaweeklyreportwithrespecttotheamountoftheLoansavailabletoBorrowerasofsuchtimebasedonthelendingformulassetforthinSection2.1.(a)preparedbyCollateralAgent(eachfieldauditorexaminationreportandweeklyreportwithrespecttotheamountoftheLoansavailabletoBorrowerasofsuchtimebasedonthelendingformulassetforthinSection2.1.(a)beingreferredtohereinasa“Report”andcollectively,“Reports”)andBorrowerherebyconsentstothedistributionofsuchReports;

(b)expresslyagreesandacknowledgesthatCollateralAgent(A)doesnotmakeanyrepresentationorwarrantyastotheaccuracyofanyReport,or(B)shallnotbeliableforanyinformationcontainedinanyReport;

(c)expresslyagreesandacknowledgesthattheReportsarenotcomprehensiveauditsorexaminations,thatCollateralAgentoranyotherpartyperforminganyauditorexaminationwillinspectonlyspecificinformationregardingBorrowerandtheSubsidiariesandwillrelysignificantlyuponBorrower’sandtheSubsidiaries’booksandrecords,aswellasonrepresentationsofBorrower’sandtheSubsidiaries’personnel;and

(d)agreestokeepallReportsconfidentialandstrictlyforitsinternaluseandnottodistributeoruseanyReportinanyothermanner.

12.11CollateralMatters.

(a)AdministrativeAgentmay,atitsoption,fromtimetotime,atanytimeonorafteranEventofDefaultandforsolongasthesameiscontinuingoruponanyotherfailureof

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aconditionprecedenttotheRevolvingLoansandLetterofCreditAccommodationshereunder,makesuchdisbursementsandadvances(“SpecialAgentAdvances”)whichAdministrativeAgent,initssolediscretion,deemsnecessaryordesirableeither(i)topreserveorprotecttheCollateraloranyportionthereof(providedthatinnoeventshallSpecialAgentAdvancesforsuchpurposeexceedtheamountequalto$10,000,000intheaggregateoutstandingatanytimelessthethenoutstandingRevolvingLoansunderSection12.8hereof)or(ii)topayanyotheramountchargeabletoBorrowerpursuanttothetermsofthisAgreementoranyoftheotherFinancingAgreementsconsistingofcosts,feesandexpensesandpaymentstoanyLCIssuerofLetterofCreditAccommodations.SpecialAgentAdvancesshallberepayableondemand,shallbearinterestattheInterestRateforPrimeRateLoansineffectaftertheoccurrenceofanEventofDefault,andbesecuredbytheCollateral.SpecialAgentAdvancesshallnotconstituteLoansbutshallotherwiseconstituteObligationshereunder.AdministrativeAgentshallnotifyeachLenderandBorrowerinwritingofeachsuchSpecialAgentAdvance,whichnoticeshallincludeadescriptionofthepurposeofsuchSpecialAgentAdvance.WithoutlimitationofitsobligationspursuanttoSection6.9,eachLenderagreesthatitshallmakeavailabletoAdministrativeAgent,uponAdministrativeAgent’sdemand,inimmediatelyavailablefunds,theamountequaltosuchLender’sProRataShareofeachsuchSpecialAgentAdvance.IfsuchfundsarenotmadeavailabletoAdministrativeAgentbysuchLender,AdministrativeAgentshallbeentitledtorecoversuchfunds,ondemandfromsuchLendertogetherwithinterestthereonforeachdayfromthedatesuchpaymentwasdueuntilthedatesuchamountispaidtoAdministrativeAgentattheFederalFundsRateforeachdayduringsuchperiodandifsuchamountsarenotpaidwithinthree(3)daysofAdministrativeAgent’sdemand,atthehighestInterestRateprovidedforinSection3.1hereofapplicabletoPrimeRateLoans.

(b)Lenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)herebyirrevocablyauthorizeCollateralAgent,toreleaseanysecurityinterestin,mortgageorlienupon,anyoftheCollateral(i)uponterminationoftheCommitmentsandpaymentandsatisfactionofalloftheObligationsanddeliveryofcashcollateraltotheextentrequiredunderSection13.1below,or(ii)constitutingpropertybeingsoldordisposedofifBorrowercertifiestoCollateralAgentthatthesaleordispositionismadeincompliancewithSection9.7or9.16hereof(andCollateralAgentmayrelyconclusivelyonanysuchcertificate,withoutfurtherinquiry),or(iii)constitutingpropertyinwhichBorroweroranyObligordidnotownaninterestatthetimethesecurityinterest,mortgageorlienwasgrantedoratanytimethereafter,or(iv)ifapproved,authorizedorratifiedinwritingbytheapplicableLenderspursuanttoSection11.3hereof.Exceptasprovidedabove,CollateralAgentwillnotreleaseanysecurityinterestin,mortgageorlienupon,anyoftheCollateralwithoutthepriorwrittenauthorizationoftheapplicableLenderspursuanttoSection11.3hereof.

(c)WithoutanymannerlimitingCollateralAgent’sauthoritytoactwithoutanyspecificorfurtherauthorizationorconsentbytheLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices),eachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)agreestoconfirminwriting,uponrequestbyCollateralAgent,theauthoritytoreleaseCollateralconferreduponCollateralAgentunderthisSectionandinSection11.3(d)hereof.CollateralAgentshall(andisherebyirrevocablyauthorizedbyLendersto)executesuchdocumentsasmay

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benecessarytoevidencethereleaseofthesecurityinterest,mortgageorliensgrantedtoCollateralAgentuponanyCollateraltotheextentsetforthaboveandinSection11.3(d)hereof;provided,that,(i)CollateralAgentshallnotberequiredtoexecuteanysuchdocumentontermswhich,ineitherAgent’sopinion,wouldexposeCollateralAgenttoliabilityorcreateanyobligationsorentailanyconsequenceotherthanthereleaseofsuchsecurityinterest,mortgageorlienswithoutrecourseorwarrantyand(ii)suchreleaseshallnotinanymannerdischarge,affectorimpairtheObligationsoranysecurityinterest,mortgageorlienupon(orobligationsofBorroweroranyObligorinrespectof)theCollateralretainedbyBorrowerorsuchObligor.

(d)NoAgentshallhaveanyobligationwhatsoevertoanyLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)oranyotherPersontoinvestigate,confirmorassurethattheCollateralexistsorisownedbyBorroweroranyObligororiscaredfor,protectedorinsuredorhasbeenencumbered,orthatanyparticularitemsofCollateralmeettheeligibilitycriteriaapplicableinrespectoftheLoansorLetterofCreditAccommodationshereunder,orwhetheranyparticularreservesareappropriate,orthattheliensandsecurityinterestsgrantedtoCollateralAgentpursuantheretooranyoftheFinancingAgreementsorotherwisehavebeenproperlyorsufficientlyorlawfullycreated,perfected,protectedorenforcedorareentitledtoanyparticularpriority,ortoexerciseatallorinanyparticularmannerorunderanydutyofcare,disclosureorfidelity,ortocontinueexercising,anyoftherights,authoritiesandpowersgrantedoravailabletoCollateralAgentinthisAgreementorinanyoftheotherFinancingAgreements,itbeingunderstoodandagreedthatinrespectoftheCollateral,oranyact,omissionoreventrelatedthereto,subjecttothepriorconsentofAdministrativeAgent,CollateralAgentmayactinanymanneritmaydeemappropriate,initsdiscretion,givenCollateralAgent’sowninterestintheCollateralasaLenderandthat,subjecttoactinginaccordancewiththeconsentofAdministrativeAgent,CollateralAgentshallhavenodutyorliabilitywhatsoevertoanyotherLender.

12.12AgencyforPerfection.

EachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreement)andAdministrativeAgentherebyappointsCollateralAgentandeachotherLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreement)andAgentasagentandbaileeforthepurposeofperfectingthesecurityinterestsinandliensupontheCollateralofCollateralAgentinassetswhich,inaccordancewithArticle9oftheUCCcanbeperfectedonlybypossession(orwherethesecurityinterestofasecuredpartywithpossessionhaspriorityoverthesecurityinterestofanothersecuredparty)andeachLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)andAgentherebyacknowledgesthatitholdspossessionofanysuchCollateralforthebenefitofCollateralAgentassecuredparty.ShouldanyLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)obtainpossessionofanysuchCollateral,suchLender(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices)shallnotifyCollateralAgentthereof,and,promptlyuponCollateralAgent’srequestthereforshalldeliversuchCollateraltoCollateralAgentorinaccordancewithCollateralAgent’sinstructions.

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12.13SuccessorAgent.

EitherAgentmayresignatanytimebygivingnotlessthan30days’priorwrittennoticethereoftoLendersandBorrower.Uponanysuchresignation,theRequiredLendersshallhavetheright,withthepriorconsentofeachotherAgent,toappointasuccessorAdministrativeAgentorCollateralAgent,asapplicable.IfnosuccessorAgentshallhavebeensoappointedbytheRequiredLendersandotherAgentsandshallhaveacceptedsuchappointmentwithin30daysaftertheresigningAgent’sgivingnoticeofresignation,thentheresigningAgentmay,onbehalfofLenders(includinganyLenderinitscapacityasacounterpartytoaHedgingAgreement),appointasuccessorAgent,whichshallbeaLender,ifaLenderiswillingtoacceptsuchappointment,orotherwiseshallbeacommercialbankorfinancialinstitutionorasubsidiaryofacommercialbankorfinancialinstitutionifsuchcommercialbankorfinancialinstitutionisorganizedunderthelawsoftheUnitedStatesofAmericaorofanyStatethereofandhasacombinedcapitalandsurplusofatleast$500,000,000.IfnosuccessorAgenthasbeenappointedpursuanttotheforegoing,within30daysafterthedatesuchnoticeofresignationwasgivenbytheresigningAgent,suchresignationshallbecomeeffectiveandtheRequiredLendersshallthereafterperformallthedutiesofsuchresigningAgenthereunderuntilsuchtime,ifany,astheRequiredLendersappointasuccessorAgentasprovidedabove.AnysuccessorAgentappointedbyRequiredLendersandAgentshereundershallbesubjecttotheapprovalofBorrower,suchapprovalnottobeunreasonablywithheldordelayed;providedthatsuchapprovalshallnotberequiredifanEventofDefaulthasoccurredandiscontinuing.UpontheacceptanceofanyappointmentasAdministrativeAgentorCollateralAgent,asapplicable,hereunderbyasuccessorAgent,suchsuccessorAgentshallsucceedtoandbecomevestedwithalltherights,powers,privilegesanddutiesoftheresigningAgent.UpontheearlieroftheacceptanceofanyappointmentasAgenthereunderbyasuccessorAgentortheeffectivedateoftheresigningAgent’sresignation,theresigningAgentshallbedischargedfromitsdutiesandobligationsunderthisAgreementandtheotherFinancingAgreements,exceptthatanyindemnityrightsorotherrightsinfavorofsuchresigningAgentshallcontinue.AfteranyresigningAgent’sresignationhereunder,theprovisionsofthisSection12shallinuretoitsbenefitastoanyactionstakenoromittedtobetakenbyitwhileitwasactingasAgentunderthisAgreementandtheotherFinancingAgreements.

12.14HedgingAgreements;BankProducts;CashManagementServices.

EachLenderagreesthatinitscapacityasacounterpartytoaHedgingAgreementwithBorrowerorastheproviderofanyBankProductsorCashManagementServicestotheBorrower,itshallnotbedeemedtohaveanyrightsasaLenderhereunderexceptfortherighttoreceiveproceedsofCollateral,asacounterpartytoaHedgingAgreement,orproviderofBankProductsandCashManagementServicesintheorderandmannersetforthinSection6.4(a)hereof.EachLenderfurtheragreesthatAdministrativeAgentshallhavenodutiestoaLenderhereunderinitscapacityasacounterpartytoaHedgingAgreement,orasaproviderofBankProductsorCashManagementServices,otherthaninrespectofsuchLender’sentitlementstoproceedsofCollateral,asacounterpartytoaHedgingAgreementorproviderofBankProductsandCashManagementServices,intheorderandmannersetforthinSection6.4(a)hereof.NothinginthisSection12.14isintendedtodiminishorotherwisealteranyLender’srights,oreitherAgent’sdutiestosuchLender,underthisAgreementastoLenderinitscapacityasaLenderhereunder.

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12.15DefaultingLender.

(a)IfforanyreasonanyLendershallfailorrefusetoabidebyitsobligationsunderthisAgreement,includingwithoutlimitationitsobligationtomakeavailabletoAdministrativeAgentitsProRataShareofanyLoans,expensesorsetofforpurchaseitsProRataShareofaparticipationinterestintheSwingLineLoansorLetterofCreditAccommodationsandsuchfailureisnotcuredwithinone(1)BusinessDayafterreceiptfromtheAdministrativeAgentofwrittennoticethereof,then,inadditiontotherightsandremediesthatmaybeavailabletotheAgents,theotherLenders,theBorroweroranyotherpartyatlaworinequity,andnotatlimitationthereof,(i)suchDefaultingLender’srighttoparticipateintheadministrationof,ordecision-makingrightsrelatedto,theObligations,thisAgreementortheotherFinancingAgreementsshallbesuspendedduringthependencyofsuchfailureorrefusal,andsuchDefaultingLendershallnotbeentitledtovoteorconsentonanymatterpursuanttoSection11.3anditsLoansandCommitmentsshallbeexcludedfromthecalculationofRequiredLenders,and(ii)aDefaultingLendershallbedeemedtohaveassignedanyandallpaymentsduetoitfromtheBorrowerandObligors,whetheronaccountofoutstandingLoans,interest,feesorotherwise,totheremainingnon-DefaultingLendersforapplicationto,andreductionof,theirproportionatesharesofalloutstandingObligationsuntil,asaresultofapplicationofsuchassignedpaymentstheLenders’respectiveProRataSharesofalloutstandingObligationsshallhavereturnedtothoseineffectimmediatelypriortosuchdelinquencyandwithoutgivingeffecttothenonpaymentcausingsuchdelinquency,and/or(iii)attheoptionoftheAdministrativeAgent,anyamountpayabletosuchDefaultingLenderhereunder(whetheronaccountofprincipal,interest,feesorotherwise)shall,inlieuofbeingdistributedtosuchDefaultingLender,beretainedbytheAdministrativeAgentascashcollateralforfuturefundingobligationsoftheDefaultingLenderinrespectofanyLoanorexistingorfutureparticipatinginterestinanySwingLineLoanorLetterofCreditAccommodation.TheDefaultingLender’sdecision-makingandparticipationrightsandrightstopaymentsassetforthinclauses(i)and(ii)hereinaboveshallberestoredonlyuponthepaymentbytheDefaultingLenderofitsProRataShareofanyObligations,anyparticipationobligation,orexpensesastowhichitisdelinquent,togetherwithinterestthereonattheFederalFundsRatefromthedatewhenoriginallydueuntilthedateuponwhichanysuchamountsareactuallypaid.

(b)Thenon-DefaultingLendersshallalsohavetheright,butnottheobligation,intheirrespective,soleandabsolutediscretion,tocausetheterminationandassignment,withoutanyfurtheractionbytheDefaultingLenderfornocashconsideration(prorata,basedontherespectiveCommitmentsofthoseLenderselectingtoexercisesuchright),oftheDefaultingLender’sCommitmenttofundfutureLoans.UponanysuchpurchaseoftheProRataShareofanyDefaultingLender,theDefaultingLender’sshareinfutureLoansandLetterofCreditAccommodationsanditsrightsundertheFinancingAgreementswithrespecttheretoshallterminateonthedateofpurchase,andtheDefaultingLendershallpromptlyexecutealldocumentsreasonablyrequestedtosurrenderandtransfersuchinterest,including,ifsorequested,anAssignmentandAcceptance.AnyassignmentofaDefaultingLender’sLoansand/orCommitmentsshallbemadeinaccordancewithSection13.6.

(c)IfanyLenderisaDeterioratingLenderoraDefaultingLender,thentheBorrowermay,atitssoleexpenseandeffort,uponnoticetosuchLenderandtheAdministrativeAgent,requiresuchLendertoassignanddelegate,withoutrecourse(inaccordancewithand

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subjecttotherestrictionscontainedin,andconsentsrequiredby,Section13.6),allofitsinterests,rightsandobligationsunderthisAgreementandtherelatedFinancingAgreementstoanEligibleTransfereethatshallassumesuchobligations(whichEligibleTransfereemaybeanotherLender,ifaLenderacceptssuchassignment),providedthat:(i)suchLendershallhavereceivedpaymentofanamountequaltotheoutstandingprincipalofitsLoansandLetterofCreditAccommodationsowedtosuchLender,accruedinterestthereon,accruedfeesandallotheramountspayabletoithereunderandundertheotherFinancingAgreementsfromtheEligibleTransferee(totheextentofsuchoutstandingprincipalandaccruedinterestandfees)ortheBorrower(inthecaseofallotheramounts),(ii)suchassignmentdoesnotconflictwithapplicablelaw,and(iii)totheextentthatsuchEligibleTransfereeisnotaLender,suchassignmentshallbesubjecttothewrittenconsentoftheAdministrativeAgent,whichconsentshallnotbeunreasonablywithheld.ALendershallnotberequiredtomakeanysuchassignmentordelegationif,priorthereto,asaresultofawaiverbysuchLenderorotherwise,thecircumstancesentitlingtheBorrowertorequiresuchassignmentanddelegationceasetoapply.

(d)EachDefaultingLendershallindemnifytheAdministrativeAgentandeachnon-DefaultingLenderfromandagainstanyandallloss,damageorexpenses,includingbutnotlimitedtoreasonableattorneys’feesandfundsadvancedbytheAdministrativeAgentorbyanynon-DefaultingLender,onaccountofaDefaultingLender’sfailuretotimelyfunditsProRataShareofaLoanortootherwiseperformitsobligationsundertheFinancingAgreements.

12.16OtherAgents;ArrangersandManagers.

NoneoftheLendersorotherPersonsidentifiedonthefacingpageorsignaturepagesofthisAgreementasa“syndicationagent,”“documentationagent,”“co-agent,”“bookmanager,”“leadmanager,”“arranger,”“leadarranger”or“co-arranger”,ifany,shallhaveanyright,power,obligation,liability,responsibilityordutyunderthisAgreementotherthan,inthecaseofsuchLenders,thoseapplicabletoallLendersassuch.Withoutlimitingtheforegoing,noneoftheLendersorotherPersonssoidentifiedshallhaveorbedeemedtohaveanyfiduciaryrelationshipwithanyLender.EachLenderacknowledgesthatithasnotrelied,andwillnotrely,onanyoftheLendersorotherPersonssoidentifiedindecidingtoenterintothisAgreementorintakingornottakingactionhereunder.

SECTION 13. TERM OF AGREEMENT; MISCELLANEOUS

13.1Term.

(a)ThisAgreementandtheotherFinancingAgreementsshallbecomeeffectiveasofthedatesetforthonthefirstpagehereofandshallcontinueinfullforceandeffectforatermendingonDecember6,2018(the“TerminationDate”),unlesssoonerterminatedpursuanttothetermshereof.BorrowermayterminatethisAgreementatanytimeuponten(10)dayspriorwrittennoticetoAdministrativeAgent(whichnoticeshallbeirrevocable)andAdministrativeAgentorRequiredLendersmayterminatethisAgreementatanytimeonorafteranEventofDefault.UpontheeffectivedateofterminationofthisAgreement,BorrowershallpaytoAdministrativeAgent,infull,alloutstandingandunpaidObligationsandshallfurnishcashcollateraltoAdministrativeAgentinsuchamountsasAdministrativeAgentdeterminesarereasonablynecessarytosecure(orreimburse)AdministrativeAgentfromloss,cost,damageor

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expense,includingattorneys’feesandlegalexpenses,inconnectionwithanycontingentObligations,includingissuedandoutstandingLetterofCreditAccommodationsandchecksorotherpaymentsprovisionallycreditedtotheObligations,outstandingBankProducts,HedgingAgreementsandCashManagementServices,and/orastowhichanyAgentoranyLenderhasnotyetreceivedfinalandindefeasiblepayment.SuchpaymentsinrespectoftheObligationsandcashcollateralshallberemittedbywiretransferinFederalfundstosuchbankaccountofAdministrativeAgent,asAdministrativeAgentmay,initsdiscretion,designateinwritingtoBorrowerforsuchpurpose.InterestshallbedueuntilandincludingthenextBusinessDay,iftheamountssopaidbyBorrowertothebankaccountdesignatedbyAdministrativeAgentarereceivedinsuchbankaccountlaterthan2:00P.M.orasmaybeotherwisepermittedbytheAdministrativeAgentatitssolediscretion.

(b)NoterminationofthisAgreementortheotherFinancingAgreementsshallrelieveordischargeBorrowerofitsrespectiveduties,obligationsandcovenantsunderthisAgreementortheotherFinancingAgreementsuntilallObligationshavebeenfullyandfinallydischargedandpaid,andCollateralAgent’scontinuingsecurityinterestintheCollateralandtherightsandremediesofAgentsandtheLendershereunder,undertheotherFinancingAgreementsandapplicablelaw,shallremainineffectuntilallsuchObligationshavebeenfullyandfinallydischargedandpaid.

13.2InterpretativeProvisions.

(a)AlltermsusedhereinwhicharedefinedinArticle1orArticle9oftheUCCshallhavethemeaningsgiventhereinunlessotherwisedefinedinthisAgreement.

(b)Allreferencestothepluralhereinshallalsomeanthesingularandtothesingularshallalsomeanthepluralunlessthecontextotherwiserequires.

(c)AllreferencestoBorrower,AgentsandLenderspursuanttothedefinitionssetforthintherecitalshereto,ortoanyotherpersonherein,shallincludetheirrespectivesuccessorsandassigns.

(d)Thewords“hereof”,“herein”,“hereunder”,“thisAgreement”andwordsofsimilarimportwhenusedinthisAgreementshallrefertothisAgreementasawholeandnotanyparticularprovisionofthisAgreementandasthisAgreementnowexistsormayhereafterbeamended,modified,supplemented,extended,renewed,restatedorreplaced.

(e)Theword“including”whenusedinthisAgreementshallmean“including,withoutlimitation”.

(f)Allreferencestotheterm“goodfaith”usedhereinwhenapplicabletoeitherAgentshallmean,notwithstandinganythingtothecontrarycontainedhereinorintheUCC,honestyinfactintheconductortransactionconcerned.BorrowershallhavetheburdenofprovinganylackofgoodfaithonthepartofsuchAgentallegedbyBorroweratanytime.

(g)AnEventofDefaultshallexistorcontinueorbecontinuinguntilsuchEventofDefaultiswaivedinaccordancewithSection11.3oriscuredinamannerreasonablysatisfactorytoAdministrativeAgent,ifsuchEventofDefaultiscapableofbeingcuredasreasonablydeterminedbyAdministrativeAgent.

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(h)AnyaccountingtermusedinthisAgreementshallhave,unlessotherwisespecificallyprovidedherein,themeaningcustomarilygiveninaccordancewithGAAP,andallfinancialcomputationshereundershallbecomputedunlessotherwisespecificallyprovidedherein,inaccordancewithGAAPasconsistentlyappliedandusingthesamemethodforinventoryvaluationasusedinthepreparationofthefinancialstatementsofBorrowermostrecentlyreceivedbyAdministrativeAgentpriortothedatehereof.

(i)Inthecomputationofperiodsoftimefromaspecifieddatetoalaterspecifieddate,theword“from”means“fromandincluding”,thewords“to”and“until”eachmean“tobutexcluding”andtheword“through”means“toandincluding”.

(j)Unlessotherwiseexpresslyprovidedherein,(i)referenceshereintoanyagreement,documentorinstrumentshallbedeemedtoincludeallsubsequentamendments,modifications,supplements,extensions,renewals,restatementsorreplacementswithrespectthereto,butonlytotheextentthesamearenotprohibitedbythetermshereoforofanyotherFinancingAgreement,and(ii)referencestoanystatuteorregulationaretobeconstruedasincludingallstatutoryandregulatoryprovisionsconsolidating,amending,replacing,recodifying,supplementingorinterpretingthestatuteorregulation.

(k)Unlessotherwisespecified,allreferenceshereintotimesofdayshallbereferencestoCentraltime(daylightorstandard,asapplicable).

(l)ThecaptionsandheadingsofthisAgreementareforconvenienceofreferenceonlyandshallnotaffecttheinterpretationofthisAgreement.

(m)ThisAgreementandotherFinancingAgreementsmayuseseveraldifferentlimitations,testsormeasurementstoregulatethesameorsimilarmatters.Allsuchlimitations,testsandmeasurementsarecumulativeandshalleachbeperformedinaccordancewiththeirterms.

(n)ThisAgreementandtheotherFinancingAgreementsaretheresultofnegotiationsamongandhavebeenreviewedbycounseltoAdministrativeAgentandtheotherparties,andaretheproductsofallparties.Accordingly,thisAgreementandtheotherFinancingAgreementsshallnotbeconstruedagainstAgentsorLendersmerelybecauseofeitherAgent’soranyLender’sinvolvementintheirpreparation.

13.3Notices.

Allnotices,requestsanddemandshereundershallbeinwritinganddeemedtohavebeengivenormade:ifdeliveredinperson,immediatelyupondelivery;ifbytelex,telegramorfacsimiletransmission,immediatelyuponsendinganduponconfirmationofreceipt;ifbynationallyrecognizedovernightcourierservicewithinstructionstodeliverthenextBusinessDay,one(1)BusinessDayaftersending;andifbycertifiedmail,returnreceiptrequested,five(5)daysaftermailing.Allnotices,requestsanddemandsuponthepartiesaretobegiventothe

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followingaddresses(ortosuchotheraddressasanypartymaydesignatebynoticeinaccordancewiththisSection):

IftoBorrower:

UltaSalon,Cosmetics&Fragrance,Inc.Suite1201000RemingtonBlvd.Bolingbrook,IL60440-4708Attention:GreggBodnarTelephoneNo.:(630)410-4633TelecopyNo.:(630)410-4864

withacopy,inthecaseofaDefaultorEventofDefault,to:

Latham&WatkinsSuite5800233S.WackerDriveChicago,Illinois60606Attention:VikPuriTelephoneNo.:(312)876-7700TelecopyNo.:(312)993-9767

IftoAdministrativeAgentortheCollateralAgent:

WellsFargoBank,NationalAssociationOneBostonPlaceBoston,Massachusetts02109Attention:JasonSearleTelephoneNo.:(617)854-7292TelecopyNo.:(617)523-4029

withacopyto:

Riemer&BraunsteinLLPThreeCenterPlazaBoston,Massachusetts02108Attention:JasonDelMonicoTelephoneNo.:(617)880-3496TelecopyNo.:(617)880-3456

NoticesandothercommunicationstotheLendersandtheLCIssuerhereundermayalsobedeliveredorfurnishedbyelectroniccommunication(includinge-mailandInternetorintranetwebsites)pursuanttoproceduresapprovedbytheAdministrativeAgent.TheAdministrativeAgentortheBorrowermay,initsdiscretion,agreetoacceptnoticesandothercommunicationstoithereunderbyelectroniccommunicationspursuanttoproceduresapprovedbyit,providedthatapprovalofsuchproceduresmaybelimitedtoparticularnoticesorcommunications.UnlesstheAdministrativeAgentotherwiseprescribes,(i)noticesandothercommunicationssenttoane-mailaddressshallbedeemedreceiveduponthesender’sreceiptofanacknowledgementfromtheintendedrecipient(suchasbythe“returnreceiptrequested”function,asavailable,returne-mailorotherwrittenacknowledgement),providedthatifsuchnoticeorothercommunicationisnotsentduringthenormalbusinesshoursoftherecipient,suchnoticeorcommunicationshallbedeemedtohavebeensentattheopeningofbusinessonthenextBusinessDayfortherecipient,and(ii)noticesorcommunicationspostedtoanInternetorintranetwebsiteshallbedeemedreceiveduponthedeemedreceiptbytheintendedrecipientatitse-mailaddressasdescribedintheforegoingclause(i)ofnotificationthatsuchnoticeorcommunicationisavailableandidentifyingthewebsiteaddresstherefor.

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13.4PartialInvalidity.

IfanyprovisionofthisAgreementisheldtobeinvalidorunenforceable,suchinvalidityorunenforceabilityshallnotinvalidatethisAgreementasawhole,butthisAgreementshallbeconstruedasthoughitdidnotcontaintheparticularprovisionheldtobeinvalidorunenforceableandtherightsandobligationsofthepartiesshallbeconstruedandenforcedonlytosuchextentasshallbepermittedbyapplicablelaw.

13.5Successors.

ThisAgreement,theotherFinancingAgreementsandanyotherdocumentreferredtohereinorthereinshallbebindinguponandinuretothebenefitofandbeenforceablebyAgents,Lenders,Borrowerandtheirrespectivesuccessorsandassigns,exceptthatBorrowermaynotassignitsrightsunderthisAgreement,theotherFinancingAgreementsandanyotherdocumentreferredtohereinorthereinwithoutthepriorwrittenconsentofAgentsandLenders.Anysuchpurportedassignmentwithoutthepriorwrittenconsentshallbevoid.NoLendermayassignitsrightsandobligationsunderthisAgreementwithoutthepriorwrittenconsentofAdministrativeAgent,exceptasprovidedinSection13.6below.ThetermsandprovisionsofthisAgreementandtheotherFinancingAgreementsareforthepurposeofdefiningtherelativerightsandobligationsofBorrower,AgentsandLenderswithrespecttothetransactionscontemplatedherebyandthereshallbenothirdpartybeneficiariesofanyofthetermsandprovisionsofthisAgreementoranyoftheotherFinancingAgreements.

13.6Assignments;Participations.

(a)EachLendermay(i)assignalloraportionofitsrightsandobligationsunderthisAgreement(including,withoutlimitation,aportionofitsCommitments,theLoansowingtoitanditsrightsandobligationsasaLenderwithrespecttoLetterofCreditAccommodations)andtheotherFinancingAgreementsto(A)itsparentcompanyand/oranyAffiliateofsuchLenderwhichisatleastfifty(50%)percentownedbysuchLenderoritsparentcompanyor(B)oneormoreLendersor(C)anyperson(whetheracorporation,partnership,trustorotherwise)thatisengagedinthebusinessofmaking,purchasing,holdingorotherwiseinvestinginbankloansandsimilarextensionsofcreditintheordinarycourseofitsbusinessandisadministeredormanagedbyaLenderorwithrespecttoanyLenderthatisafundwhichinvestsinbankloansandsimilarextensionsofcredit,anyotherfundthatinvestsinbankloansandsimilarextensionsofcreditandismanagedbythesameinvestmentadvisorassuchLenderorbyanAffiliateofsuchinvestmentadvisoror(ii)assignalloraportionofitsrightsandobligationsunderthisAgreementtooneormoreEligibleTransferees,eachofwhichassigneesshallbecomeapartytothisAgreementasaLenderbyexecutionofanAssignmentandAcceptance;provided,that,(A)theconsentofAdministrativeAgentshallberequiredinconnectionwithanyassignmenttoanEligibleTransfereepursuanttoclause(ii)above,whichconsentshallnotbeunreasonablywithheld,(B)absenttheexistenceofanEventofDefault,theconsentofBorrowershallberequiredinconnectionwithanyassignmenttoanEligibleTransfereepursuanttoclause(ii)above,whichconsentshallnotbeunreasonablywithheld;

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(C)ifsuchEligibleTransfereeisnotabank,AdministrativeAgentshallreceivearepresentationinwritingbysuchEligibleTransfereethateither(1)nopartofitsacquisitionofitsLoansismadeoutofassetsofanyemployeebenefitplan,or(2)afterconsultation,ingoodfaith,withBorrowerandprovisionbyBorrowerofsuchinformationasmaybereasonablyrequestedbysuchEligibleTransferee,theacquisitionandholdingofsuchCommitmentsandLoansdoesnotconstituteanon-exemptprohibitedtransactionunderSection406ofERISAandSection4975oftheCode,or(3)suchassignmentisan“insurancecompanygeneralaccount,”assuchtermisdefinedintheDepartmentofLaborProhibitedTransactionClassExemption95.60(issuedJuly12,1995)(“PTCE95-60),and,asofthedateoftheassignment,thereisno“employeebenefitplan”withrespecttowhichtheaggregateamountofsuchgeneralaccount’sreservesandliabilitiesforthecontractsheldbyoronbehalfofsuch“employeebenefitplan”andallother“employeebenefitplans”maintainedbythesameemployer(andaffiliatesthereofasdefinedinSectionV(a)(1)ofPTCE95-60)orbythesameemployeeorganization(ineachcasedeterminedinaccordancewiththeprovisionsofPTCE95-60)exceedsten(10%)percentofthetotalreservesandliabilitiesofsuchgeneralaccount(asdeterminedunderPTCE95-60)(exclusiveofseparateaccountliabilities)plussurplusassetforthintheNationalAssociationofInsuranceCommissionersAnnualStatementfiledwiththestateofdomicileofsuchEligibleTransferee,(D)suchtransferorassignmentwillnotbeeffectiveuntilrecordedbytheAdministrativeAgentontheRegister,(E)exceptasAdministrativeAgentshallotherwiseagree,anysuchassignmentshallbeinaminimumaggregateamountequalto$5,000,000or,ifless,theremainingCommitmentandLoansheldbytheassigningLender.AsusedinthisSection,theterm“employeebenefitplan”shallhavethemeaningassignedtoitinTitleIofERISAandshallalsoincludea“plan”asdefinedinSection4975(e)(1)oftheCodeand(F)anyLenderdesiringtoassignalloranyportionofitsrightsandobligationsunderthisAgreementtoaPersonpursuanttoclause(ii)aboveshallfirstandpriortoanyassignmenttosuchPersonprovideawrittenoffertoeachoftheotherexistingLenderstoacceptsuchassignment,andeachLenderwhohasreceivedsuchoffershallhavetheright,butnoobligation,toacceptsuchassignment,providedthat,nolaterthanseven(7)daysafterreceiptofsuchnotice,eachsuchLendershalladviseAdministrativeAgentandtheBorrowerwhetheritintendstoacceptsuchassignment,andanyLenderthathasnotrespondedwithinsuchperiodshallbedeemedtohavedeclinedsuchassignmentandintheeventthatmorethanoneLenderacceptssuchassignment,theassigningLendershallassignitsrightsandobligationstosuchLendersonaproratabasis.

(b)AdministrativeAgentshallmaintainaregisterofthenamesandaddressesofLenders,theirCommitmentsandtheprincipalamountoftheirLoans(the“Register”).AdministrativeAgentshallalsomaintainacopyofeachAssignmentandAcceptancedeliveredtoandacceptedbyitandshallmodifytheRegistertogiveeffecttoeachAssignmentandAcceptance.TheentriesintheRegistershallbeconclusiveandbindingforallpurposes,absentmanifesterror,andBorrower,anyObligor,AgentsandLendersmaytreateachPersonwhosenameisrecordedintheRegisterasaLenderhereunderforallpurposesofthisAgreement.TheRegistershallbeavailableforinspectionbyBorrowerandanyLenderatanyreasonabletimeandfromtimetotimeuponreasonablepriornotice.

(c)Uponsuchexecution,delivery,acceptanceandrecording,fromandaftertheeffectivedatespecifiedineachAssignmentandAcceptance,(i)theassigneethereundershallbeapartyheretoandtotheotherFinancingAgreementsand,totheextentthatrightsandobligationshereunderhavebeenassignedtoitpursuanttosuchAssignmentandAcceptance,

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havetherightsandobligations(including,withoutlimitation,theobligationtoparticipateinLetterofCreditAccommodations)ofaLenderhereunderandthereunderand(ii)theassigningLendershall,totheextentthatrightsandobligationshereunderhavebeenassignedbyitpursuanttosuchAssignmentandAcceptance,relinquishitsrightsandbereleasedfromitsobligationsunderthisAgreement.IntheeventthatanyLenderassignsorotherwisetransfersalloranypartoftheObligations,AdministrativeAgentshallsonotifyBorrowerandBorrowershall,upontherequestoftheAdministrativeAgent,executenewpromissorynotesinexchangeforthepromissorynotesofsuchassigningLender,ifany.

(d)ByexecutionanddeliveryofanAssignmentandAcceptance,theassignorandassigneethereunderconfirmtoandagreewitheachotherandtheotherpartiesheretoasfollows:(i)otherthanasprovidedinsuchAssignmentandAcceptance,theassigningLendermakesnorepresentationorwarrantyandassumesnoresponsibilitywithrespecttoanystatements,warrantiesorrepresentationsmadeinorinconnectionwiththisAgreementoranyoftheotherFinancingAgreementsortheexecution,legality,enforceability,genuineness,sufficiencyorvalueofthisAgreementoranyoftheotherFinancingAgreementsfurnishedpursuanthereto,(ii)theassigningLendermakesnorepresentationorwarrantyandassumesnoresponsibilitywithrespecttothefinancialpositionofBorrower,anyObligororanyoftheirSubsidiariesortheperformanceorobservancebyBorroweroranyObligorofanyoftheObligations;(iii)suchassigneeconfirmsthatithasreceivedacopyofthisAgreementandtheotherFinancingAgreements,togetherwithsuchotherdocumentsandinformationithasdeemedappropriatetomakeitsowncreditanalysisanddecisiontoenterintosuchAssignmentandAcceptance,(iv)suchassigneewill,independentlyandwithoutrelianceupontheassigningLender,AdministrativeAgentandbasedonsuchdocumentsandinformationasitshalldeemappropriateatthetime,continuetomakeitsowncreditdecisionsintakingornottakingactionunderthisAgreementandtheotherFinancingAgreements,(v)suchassigneeappointsandauthorizesAdministrativeAgenttotakesuchactionasagentonitsbehalfandtoexercisesuchpowersunderthisAgreementandtheotherFinancingAgreementsasaredelegatedtoAgentsbythetermshereofandthereof,togetherwithsuchpowersasarereasonablyincidentalthereto,and(vi)suchassigneeagreesthatitwillperforminaccordancewiththeirtermsalloftheobligationswhichbythetermsofthisAgreementandtheotherFinancingAgreementsarerequiredtobeperformedbyitasaLender.AgentsandLendersmayfurnishanyinformationconcerningBorroweroranyObligorinthepossessionofeitherAgentoranyLenderfromtimetotimetoassigneesandParticipants.

(e)EachLendermaysellparticipationstooneormorebanksorotherentitiesinortoalloraportionofitsrightsandobligationsunderthisAgreementandtheotherFinancingAgreements(including,withoutlimitation,alloraportionofitsCommitmentsandtheLoansowingtoitanditsparticipationintheLetterofCreditAccommodations,withouttheconsentofAdministrativeAgentortheotherLenders);provided,that,(i)suchLender’sobligationsunderthisAgreement(including,withoutlimitation,itsCommitmenthereunder)andtheotherFinancingAgreementsshallremainunchanged,(ii)suchLendershallremainsolelyresponsibletotheotherpartiesheretofortheperformanceofsuchobligations,andBorrower,andAdministrativeAgentshallcontinuetodealsolelyanddirectlywithsuchLenderinconnectionwithsuchLender’srightsandobligationsunderthisAgreementandtheotherFinancingAgreements,(iii)theParticipantshallnothaveanyrightsunderthisAgreementoranyoftheotherFinancingAgreements(theParticipant’srightsagainstsuchLenderinrespectofsuch

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participation(includingrightsinconnectionwithincreasedcostspursuanttoSection3.3hereof)tobethosesetforthintheagreementexecutedbysuchLenderinfavoroftheParticipantrelatingthereto)andallamountspayablebyBorroweroranyObligorhereundershallbedeterminedasifsuchLenderhadnotsoldsuchparticipation;provided,thattheBorrowershallnotberequiredtoreimburseanyParticipantpursuanttotheincreasedcostprovisionsofSection3.3inanyamountwhichexceedstheamountthatwouldhavebeenpayableundersuchprovisionstosuchLenderhadsuchLendernotsoldsuchparticipation,(iv)absenttheexistenceofanEventofDefault,theconsentofBorrower,whichconsentshallnotbeunreasonablywithheld,shallberequiredinconnectionwithanyparticipationtoanEligibleTransfereethatdoesnotconsistof(A)anyLender’sparentcompanyand/oranyAffiliateofsuchLenderwhichisatleastfifty(50%)percentownedbysuchLenderoritsparentcompanyor(B)oneormoreLendersor(C)anyperson(whetheracorporation,partnership,trustorotherwise)thatisengagedinthebusinessofmaking,purchasing,holdingorotherwiseinvestinginbankloansandsimilarextensionsofcreditintheordinarycourseofitsbusinessandisadministeredormanagedbyaLenderorwithrespecttoanyLenderthatisafundwhichinvestsinbankloansandsimilarextensionsofcredit,anyotherfundthatinvestsinbankloansandsimilarextensionsofcreditandismanagedbythesameinvestmentadvisorassuchLenderorbyanAffiliateofsuchinvestmentadvisor,and(v)ifsuchParticipantisnotabank,representthateither(A)nopartofitsacquisitionofitsparticipationismadeoutofassetsofanyemployeebenefitplan,or(B)afterconsultation,ingoodfaith,withBorrowerandprovisionbyBorrowerofsuchinformationasmaybereasonablyrequestedbytheParticipant,theacquisitionandholdingofsuchparticipationdoesnotconstituteanon-exemptprohibitedtransactionunderSection406ofERISAandSection4975oftheCode,or(C)suchparticipationisan“insurancecompanygeneralaccount,“assuchtermisdefinedinthe“PTCE95-60”,and,asofthedateofthetransferthereisno“employeebenefitplan”withrespecttowhichtheaggregateamountofsuchgeneralaccount’sreservesandliabilitiesforthecontractsheldbyoronbehalfofsuch“employeebenefitplan”andallother“employeebenefitplans”maintainedbythesameemployer(andaffiliatesthereofasdefinedinSectionV(a)(1)ofPTCE95-60)orbythesameemployeeorganization(ineachcasedeterminedinaccordancewiththeprovisionsofPTCE95-60)exceedsten(10%)percentofthetotalreservesandliabilitiesofsuchgeneralaccount(asdeterminedunderPTCE95-60)(exclusiveofseparateaccountliabilities)plussurplusassetforthintheNationalAssociationofInsuranceCommissionersAnnualStatementfiledwiththestateofdomicileoftheParticipant.AsusedinthisSection,theterm“employeebenefitplan”shallhavethemeaningassignedtoitinTitleIofERISAandshallalsoincludea“plan”asdefinedinSection4975(e)(1)oftheCode.

(f)AnyLendermayatanytimepledgeorassignasecurityinterestinalloranyportionofitsrightsunderthisAgreement(includingunderitsNote,ifany)tosecureobligationsofsuchLender,including,withoutlimitation,anypledgeorassignmenttosecureobligationstoaFederalReserveBank;providedthatnosuchpledgeorassignmentshallreleasesuchLenderfromanyofitsobligationshereunderorsubstituteanysuchpledgeeorassigneeforsuchLenderasapartyhereto.

(g)Borrowershall,andshallcauseeachofitsSubsidiariesto,assistanyAgentoranyLenderpermittedtosellassignmentsorparticipationsunderthisSection13.6inwhatevermannerreasonablynecessaryinordertoenableoreffectanysuchassignmentorparticipation,including(butnotlimitedto)theexecutionanddeliveryofanyandallagreements,notesandotherdocumentsandinstrumentsasshallberequestedandthedeliveryof

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informationalmaterials,appraisalsorotherdocumentsfor,andtheparticipationofrelevantmanagementinmeetingsandconferencecallswith,potentialLendersorParticipants.Borrowershallcertifythecorrectness,completenessandaccuracy,inallmaterialrespects,ofalldescriptionsofBorroweranditsSubsidiariesandtheiraffairsprovided,preparedorreviewedbyBorrowerthatarecontainedinanysellingmaterialsandallotherinformationprovidedbyitandincludedinsuchmaterials.

13.7Confidentiality.

(a)EachAgentandeachLendershalluseallreasonableeffortstokeepconfidential,inaccordancewithitsrespectivecustomaryproceduresforhandlingconfidentialinformationandsafeandsoundlendingpractices,anynon-publicinformationsuppliedtothembyBorrowerpursuanttothisAgreementwhichisclearlyandconspicuouslymarkedasconfidentialatthetimesuchinformationisfurnishedbyBorrowertoanyAgentoranyLender,provided,that,nothingcontainedhereinshalllimitthedisclosureofanysuchinformation:(i)totheextentrequiredbystatute,rule,regulation,subpoenaorcourtorder,(ii)tobankexaminersandotherregulators,auditorsand/oraccountants,(iii)inconnectionwithanylitigationtowhichanyAgentoranyLenderisaparty,(iv)toanyassigneeorParticipant(orprospectiveassigneeorParticipant)solongassuchassigneeorParticipant(orprospectiveassigneeorParticipant)shallhavefirstagreedinwritingtotreatsuchinformationasconfidentialinaccordancewiththisSection13.7,(v)toanyAffiliate,employee,director,officeroragentofsuchAgentorsuchLendersolongassuchAffiliate,employee,director,officerofagentshallhavebeeninstructedtotreatsuchinformationasconfidentialinaccordancewiththisSection13.7or(vi)tocounselforeitherAgentoranyLenderoranyParticipantorassignee(orprospectiveparticipantorassignee);provided,that,inthecaseofclause(i),suchAgentorLender,asapplicable,shallusereasonableeffortstoprovideBorrowerwithpriornoticeofsuchrequireddisclosureandtheopportunitytoobtainaprotectiveorderinrespectthereofifnoconflictexistswithsuchAgent’sorLender’sgovernmental,regulatoryorlegalrequirements.

(b)InnoeventshallthisSection13.7oranyotherprovisionofthisAgreementorapplicablelawbedeemed:(i)toapplytoorrestrictdisclosureofinformationthathasbeenorismadepublicbyBorroweroranythirdpartywithoutbreachofthisSection13.7orotherwisebecomegenerallyavailabletothepublicotherthanasaresultofadisclosureinviolationhereof,(ii)toapplytoorrestrictdisclosureofinformationthatwasorbecomesavailabletoAgentsorLendersonanon-confidentialbasisfromapersonotherthanBorrower,(iii)requireAgentsorLenderstoreturnanymaterialsfurnishedbyBorrowertoAgentsorLendersor(iv)preventAgentsorLendersfromrespondingtoroutineinformationalrequestsinaccordancewiththeCodeofEthicsfortheExchangeofCreditInformationpromulgatedbyTheRobertMorrisAssociatesorotherapplicableindustrystandardsrelatingtotheexchangeofcreditinformation.TheobligationsofAgentsandLendersunderthisSection13.7shallsupersedeandreplacetheobligationsofAgentsandLendersunderanyconfidentialitylettersignedpriortothedatehereof.

13.8EntireAgreement.

ThisAgreement,theotherFinancingAgreements,anysupplementsheretoorthereto,andanyinstrumentsordocumentsdeliveredortobedeliveredinconnectionherewithortherewith

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representstheentireagreementandunderstandingconcerningthesubjectmatterhereofandthereofbetweenthepartieshereto,andsupersedeallotherprioragreements,understandings,negotiationsanddiscussions,representations,warranties,commitments,proposals,offersandcontractsconcerningthesubjectmatterhereof,whetheroralorwritten.IntheeventofanyinconsistencybetweenthetermsofthisAgreementandanyscheduleorexhibithereto,thetermsofthisAgreementshallgovern.

13.9Counterparts,Etc.

ThisAgreementoranyoftheotherFinancingAgreementsmaybeexecutedinanynumberofcounterparts,eachofwhichshallbeanoriginal,butallofwhichtakentogethershallconstituteoneandthesameagreement.DeliveryofanexecutedcounterpartofthisAgreementoranyoftheotherFinancingAgreementsbytelefacsimileshallhavethesameforceandeffectasthedeliveryofanoriginalexecutedcounterpartofthisAgreementoranyofsuchotherFinancingAgreements.Anypartydeliveringanexecutedcounterpartofanysuchagreementbytelefacsimileshallalsodeliveranoriginalexecutedcounterpart,butthefailuretodososhallnotaffectthevalidity,enforceabilityorbindingeffectofsuchagreement.

13.10NoAdvisoryorFiduciaryResponsibility

Inconnectionwithallaspectsofeachtransactioncontemplatedhereby,theBorrowerandtheObligorseachacknowledgeandagreethat:(i)thecreditfacilityprovidedforhereunderandanyrelatedarrangingorotherservicesinconnectiontherewith(includinginconnectionwithanyamendment,waiverorothermodificationhereoforofanyotherFinancingAgreement)areanarm’s-lengthcommercialtransactionbetweentheBorrowerandObligors,ontheonehand,andtheAgentsandtheLenders,ontheotherhand,andeachoftheBorrowersandObligorsiscapableofevaluatingandunderstandingandunderstandsandacceptstheterms,risksandconditionsofthetransactionscontemplatedherebyandbytheotherFinancingAgreements(includinganyamendment,waiverorothermodificationhereoforthereof);(ii)inconnectionwiththeprocessleadingtosuchtransaction,theeachAgentandLenderisandhasbeenactingsolelyasaprincipalandisnotthefinancialadvisor,agentorfiduciary,fortheBorrower,theObligorsoranyoftheirrespectiveAffiliates,stockholders,creditorsoremployeesoranyotherPerson;(iii)noneoftheAgentsortheLendershasassumedorwillassumeanadvisory,agencyorfiduciaryresponsibilityinfavoroftheBorrowerorObligorswithrespecttoanyofthetransactionscontemplatedherebyortheprocessleadingthereto,includingwithrespecttoanyamendment,waiverorothermodificationhereoforofanyotherFinancingAgreement(irrespectiveofwhetheranyoftheAgentsorLendershasadvisedoriscurrentlyadvisingtheBorrower,anyObligororanyofitsAffiliatesonothermatters)andnoneoftheAgentsandLendershasanyobligationtotheBorrower,anyObligororanyofitsAffiliateswithrespecttothetransactionscontemplatedherebyexceptthoseobligationsexpresslysetforthhereinandintheotherFinancingAgreements;(iv)theAgentsandtheLendersandtheirrespectiveAffiliatesmaybeengagedinabroadrangeoftransactionsthatinvolveintereststhatdifferfromthoseoftheBorrowerandObligorsandtheirrespectiveAffiliates,andnoneoftheAgentsorLendershasanyobligationtodiscloseanyofsuchinterestsbyvirtueofanyadvisory,agencyorfiduciaryrelationship;and(v)theAgentandtheLendershavenotprovidedandwillnotprovideanylegal,accounting,regulatoryortaxadvicewithrespecttoanyofthetransactionscontemplatedhereby(includinganyamendment,waiverorothermodificationhereoforofanyotherFinancing

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Agreement)andeachoftheBorrowerandObligorshasconsulteditsownlegal,accounting,regulatoryandtaxadvisorstotheextentithasdeemedappropriate.EachoftheBorrowerandObligorsherebywaivesandreleases,tothefullestextentpermittedbylaw,anyclaimsthatitmayhaveagainsteachoftheAgentsandLenderswithrespecttoanybreachorallegedbreachofagencyorfiduciaryduty.

13.11CustomerIdentification-USAPatriotActNotice.

EachLenderandAdministrativeAgent(foritselfandnotonbehalfofanyotherparty)herebynotifiesBorrowerthat,pursuanttotherequirementsoftheUSAPatriotAct,TitleIIIofPub.L.107-56,signedintolawOctober26,2001(the“Act”),itisrequiredtoobtain,verifyandrecordinformationthatidentifiesBorrowerand/oritssubsidiaries,whichinformationincludesthenameandaddressofBorrowerand/oritssubsidiariesandotherinformationthatwillallowsuchLenderorAdministrativeAgent,asapplicable,toidentifyBorrowerand/oritssubsidiariesinaccordancewiththeAct.

13.12ForeignAssetControlRegulations

NeitheroftheadvanceoftheLoansnortheuseoftheproceedsofanythereofwillviolatetheTradingWiththeEnemyAct(50U.S.C.§1etseq.,asamended)(the“TradingWiththeEnemyAct”)oranyoftheforeignassetscontrolregulationsoftheUnitedStatesTreasuryDepartment(31CFR,SubtitleB,ChapterV,asamended)(the“ForeignAssetsControlRegulations”)oranyenablinglegislationorexecutiveorderrelatingthereto(whichfortheavoidanceofdoubtshallinclude,butshallnotbelimitedto(a)ExecutiveOrder13224ofSeptember21,2001BlockingPropertyandProhibitingTransactionsWithPersonsWhoCommit,ThreatentoCommit,orSupportTerrorism(66Fed.Reg.49079(2001))(the“ExecutiveOrder”)and(b)theUnitingandStrengtheningAmericabyProvidingAppropriateToolsRequiredtoInterceptandObstructTerrorismActof2001(PublicLaw107-56)).Furthermore,noneoftheBorrowerorObligors(a)isorwillbecomea“blockedperson”asdescribedintheExecutiveOrder,theTradingWiththeEnemyActortheForeignAssetsControlRegulationsor(b)engagesorwillengageinanydealingsortransactions,orbeotherwiseassociated,withanysuch“blockedperson”orinanymannerviolativeofanysuchorder.

13.13WaiverofConsequentialDamages,Etc.

Tothefullestextentpermittedbyapplicablelaw,eachofthepartiesheretoagreesnottoassert,andherebywaives,anyclaimagainstanyotherpartyheretoanditsAffiliatesonanytheoryofliability,forspecial,indirect,consequentialorpunitivedamages(asopposedtodirectoractualdamages)arisingoutof,inconnectionwith,orasaresultof,thisAgreement,anyotherFinancingAgreementoranyagreementorinstrumentcontemplatedhereby,thetransactionscontemplatedherebyorthereby,anyLoanorletterofcreditortheuseoftheproceedsthereof.

13.14PressReleases.

TheBorrowerconsentstothepublicationbyAdministrativeAgentoranyLenderofadvertisingmaterialrelatingtothefinancingtransactionscontemplatedbythisAgreementusingtheBorrower’sname,productphotographs,logoortrademark.AdministrativeAgentorsuchLendershallprovideadraftreasonablyinadvanceofanyadvertisingmaterialtotheBorrower

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foritsapprovalpriortothepublicationthereof(whichapprovalshallnotbeunreasonablywithheldordelayed).AdministrativeAgentreservestherighttoprovidetoindustrytradeorganizationsinformationnecessaryandcustomaryforinclusioninleaguetablemeasurements.

13.15AmendmentandRestatement.

(a)AmendmentandRestatement;NoNovation.OntheClosingDate,theExistingCreditAgreementshallbeamendedandrestatedinitsentiretybythisAgreementand(i)allreferencestotheExistingCreditAgreementinanyFinancingAgreementotherthanthisAgreement(includinganyamendment,waiverorconsent)shallbedeemedtorefertotheExistingCreditAgreementasamendedandrestatedhereby,(ii)allreferencestoanysection(orsubsection)oftheExistingCreditAgreementinanyFinancingAgreement(butnotherein)shallbeamendedtobe,mutatismutandis,referencestothecorrespondingprovisionsofthisAgreement,(iii)exceptasthecontextotherwiseprovides,allreferencestothisAgreementherein(includingforpurposesofindemnificationandreimbursementoffees)shallbedeemedtobereferencestotheExistingCreditAgreementasamendedandrestatedhereby,(iv)theterm“Lenders”asdefinedintheotherFinancingDocumentsshallbedeemedtorefertotheterm“Lenders”asamendedandrestatedherebyand(v)BorrowerherebyreaffirmsallofitsobligationsundereachoftheFinancingDocumentstowhichitisaparty.ThisAgreementisnotintendedtoconstitute,anddoesnotconstitute,anovationoftheobligationsandliabilitiesundertheExistingCreditAgreement(includingtheObligations)ortoevidencepaymentofalloranyportionofsuchobligationsandliabilitiesexcepttotheextentexpresslyprovidedforherein.

(b)EffectonExistingCreditAgreementandontheObligations.OnandaftertheClosingDate,(i)subjecttoclause(iii)below,theExistingCreditAgreementshallbeofnofurtherforceandeffectexcepttoevidencetheincurrencebyBorrowerofthe“Obligations”underandasdefinedtherein(whetherornotsuch“Obligations”arecontingentasoftheClosingDate),(ii)all“ObligationsundertheExistingCreditAgreementasoftheClosingDateshallbedeemedtobeObligationsoutstandingunderthisAgreement(whetherornotsuch“Obligations”arecontingentasoftheClosingDate)and(iii)allsecurityinterestsandliensgrantedundertheFinancingDocumentsshallsurvivetheexecutionanddeliveryofthisAgreementandshallcontinuetosecureallObligations.

[SIGNATUREPAGESFOLLOW]

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INWITNESSWHEREOF,Agents,LendersandBorrowerhavecausedthesepresentstobedulyexecutedasofthedayandyearfirstabovewritten.WELLSFARGOBANK,NATIONALASSOCIATION BORROWER

asAdministrativeAgent,CollateralAgentandLeadArrangerandasaLender ULTASALON,COSMETICS&FRAGRANCE,INC.

By: /s/ By: /s/Title: Title:

Address: ChiefExecutiveOffice:

OneBostonPlace,19thFloor 1000RemingtonBlvd.Boston,Massachusetts02108 Bolingbrook,IL60440-4708

WELLSFARGOBANK,NATIONALASSOCIATION,asLCIssuer

By: /s/ Title:

Address:

JPMORGANCHASEBANK,N.A.,asSyndicationAgentandCo-LeadArranger

By: /s/ Title:

Address:

PNCBANK,NATIONALASSOCIATION,asDocumentationAgent

By: /s/Title:

Address:

Exhibit 99

CompanyContacts:ScottSetterstenChiefFinancialOfficer(630)410-4807

LaurelLefebvreVicePresident,InvestorRelations(630)410-5230

KarenMayDirector,PublicRelations(630)410-5457

ULTA BEAUTY ANNOUNCES FORMATION OF NEW HOLDING COMPANY

Bolingbrook,IL–January27,2017–UltaBeauty[NASDAQ:ULTA]todayannouncedthattheCompanywillimplementaholdingcompanyreorganizationonJanuary29,2017,thebeginningoftheCompany’snewfiscalyear.Theprimarypurposeofthereorganizationistocreateamoreefficientcorporatestructure.BusinessoperationsfortheCompanywillnotchangeasaresultofthereorganization.

Pursuanttothisholdingcompanyreorganization,UltaBeauty,Inc.willreplaceUltaSalon,Cosmetics&Fragrance,Inc.asthepublicly-tradedentity.AlloutstandingsharesofcommonstockofUltaSalon,Cosmetics&Fragrance,Inc.willautomaticallyconvertintothesamenumberofsharesofcommonstockofUltaBeauty,Inc.withallofthesamerights,powersandpreferences,andqualifications,limitationsandrestrictions.ThecommonstockoftheCompanywillcontinuetotradeonTheNASDAQGlobalSelectMarketunderthesymbol“ULTA.”ThereisnochangetothedirectorsandexecutiveofficersoftheCompanyasaresultofthecreationoftheholdingcompany.

About Ulta Beauty

UltaBeauty(NASDAQ:ULTA)isthelargestbeautyretailerintheUnitedStatesandthepremierbeautydestinationforcosmetics,fragrance,skin,haircareproductsandsalonservices.Sinceopeningitsfirststorein1990,UltaBeautyhasgrowntobecomethetopnationalretailerprovidingAllThingsBeauty,AllinOnePlace™.TheCompanyoffersmorethan20,000productsfromover500well-establishedandemergingbeautybrandsacrossallcategoriesandpricepoints,includingUltaBeauty’sownprivatelabel.UltaBeautyalsooffersafull-servicesalonineverystorefeaturinghair,skinandbrowservices.UltaBeautyisrecognizedforitscommitmenttopersonalizedservice,funandinvitingstoresanditsindustry-leadingUltamateRewardsloyaltyprogram.AsofJanuary27,2017,UltaBeautyoperates974retailstoresacross48statesandtheDistrictofColumbiaandalsodistributesitsproductsthroughitswebsite,whichincludesacollectionoftips,tutorialsandsocialcontent.Formoreinformation,visitwww.ulta.com.