Document:

Employment Agreement- Eugene V. DeFelice

 Exhibit 10.1 

 

 

 September 27, 2010 
 Mr. Eugene V. DeFelice 
 122 Fifth Avenue 

New York, NY 10011 
 Dear Mr. DeFelice:

 This letter agreement (the “Agreement”) is intended to set forth our mutual understanding regarding your employment as Vice
President, General Counsel and Corporate Secretary (“General Counsel”) of Barnes & Noble, Inc. (the “Company”). 

Accordingly, we are pleased to agree as follows: 
 1. Duties. You agree to be General Counsel for the term of this Agreement. In this capacity, you shall perform such duties and have such responsibilities as are typically associated with such
position, including such duties and responsibilities as are prescribed by the Board of Directors of the Company (the “Board”) consistent with such position. While you are the Company’s employee, you agree to devote your full business
time and attention to the performance of your duties and responsibilities hereunder. You shall report to the Company’s Chief Financial Officer. 
 2. Term. (a) Your first day of employment hereunder shall be September 27, 2010 (the “Effective Date”). The initial term of this Agreement shall be for a period beginning on the
Effective Date and ending on the third anniversary thereof or, if earlier, the termination of your employment in accordance with the provisions set forth below (the “Initial Term”). At the expiration (but not earlier termination) of the
Initial Term, and any subsequent “Renewal Term” (as defined below), the term of this Agreement shall automatically renew for additional periods of one year (each, a “Renewal Term”), unless your employment has earlier terminated
or either party hereto has given the other party written notice of non-renewal at least 90 days prior to the expiration date of the Initial Term or the Renewal Term, as applicable. In the event that either party has given written notice of
non-renewal, and your employment with the Company continues after the expiration of the Initial Term or any Renewal Term, such post-expiration employment shall be “at-will” and either party may terminate such employment with or without
notice and for any reason or no reason. 
 (b) Your employment hereunder shall terminate upon your death and may
be terminated by the Company upon written notice to you following your Disability (as defined below). Your employment hereunder may also be terminated by the Company immediately for Cause (as defined below) or following two weeks written notice to
you for any other reason. Your employment hereunder may also be terminated by you following written notice to the Company of your intention to resign with or without Good Reason (as defined below); provided that a resignation for Good Reason shall
comply with Section 2(c)(iv). 
 (c) For purposes of this Agreement: 

(i) “Cause” means (A) your engaging in intentional misconduct or gross negligence that, in either case, is
injurious to the Company; (B) your indictment, entry of a plea of nolo contendere or conviction by a court of competent jurisdiction with respect to any crime or violation of law involving fraud or dishonesty (with the exception of misconduct
based in good faith on the advice of professional consultants, such as attorneys and accountants) or any felony (or equivalent crime in a non-U.S. jurisdiction); (C) any gross negligence, intentional acts or intentional omissions by you (as
determined by a majority vote of the Board in its reasonable discretion and judgment) that constitute fraud, dishonesty, 

 
embezzlement or misappropriation in connection with the performance of your employment duties and responsibilities; (D) your engaging in any act of intentional misconduct or moral turpitude
(as determined by a majority vote of the Board in its reasonable discretion and judgment) reasonably likely to adversely affect the Company or its business; (E) your abuse of or dependency on alcohol or drugs (illicit or otherwise) that
adversely affects your job performance; (F) your willful failure or refusal to properly perform (as determined by a majority vote of the Board in its reasonable discretion and judgment) the duties, responsibilities or obligations of your
employment for reasons other than Disability or authorized leave, or to properly perform or follow (as determined by a majority vote of the Board in its reasonable discretion and judgment) any lawful direction by the Company (with the exception of a
willful failure or refusal to properly perform based in good faith on the advice of professional consultants, such as attorneys and accountants); or (G) your material breach of this Agreement or of any other contractual duty to, written policy
of, or written agreement with the Company (with the exception of a material breach based in good faith on the advice of professional consultants, such as attorneys and accountants). 

(ii) “Disability” shall mean a written determination by a majority of three physicians (one of which shall be
your most recent primary care provider) mutually agreeable to the Company and you (or, in the event of your total physical or mental disability, your legal representative) that you are physically or mentally unable to perform your duties as General
Counsel under this Agreement and that such disability can reasonably be expected to continue for a period of six consecutive months or for shorter periods aggregating 180 days in any 12-month period. 

(iii) “Good Reason” shall mean the occurrence of one or more of the following events without your written
consent: (A) there shall have been a material diminution of your authority, duties or responsibilities; (B) there shall have been a greater than 10% reduction in your Annual Base Salary (as defined below) in effect as of the Effective Date
pursuant to Section 3.1; (C) the principal executive offices of the Company shall be relocated to a location more than 50 miles from New York City; or (D) the Company fails to make material payments to you (or provide to you
restricted common stock) as required by this Agreement. 
 (iv) You shall only be deemed to terminate employment
for Good Reason if (A) you provide the Company with written notice of Good Reason within a period not to exceed 90 days after the initial existence of the condition alleged to give rise to Good Reason, (B) the Company fails to remedy the
condition within 30 days of such notice and (C) your termination is within six months following the initial existence of the condition alleged to give rise to Good Reason. 

3. Compensation. 
 3.1. Annual Base Salary. During your employment hereunder, the Company shall pay you, for all services you perform hereunder, an annual base salary of U.S. $550,000.00, or such higher amount as the
Compensation Committee of the Board (the “Compensation Committee”) may determine, payable in accordance with the Company’s payroll schedule applicable to executive officers of the Company (“Annual Base Salary”). 

3.2. Bonus Compensation. During your employment hereunder, the Company shall pay you annual bonus compensation, as determined by
the Compensation Committee, with an annual target amount of not less than 40% of your Annual Base Salary, which shall be paid in accordance with and subject to the terms and conditions of the Company’s Incentive Compensation Plan (attached
hereto as Exhibit A and incorporated herein by reference and as may be amended from time to time) or such other incentive or compensation plan or arrangement specified by the Compensation Committee. Notwithstanding the foregoing, subject to Sections
3.7 and 3.8, the amount of your annual bonus compensation for the fiscal year ending May 1, 2011 shall be guaranteed at 40% of your Annual Base Salary, 50% of which ($110,000) shall be paid on the Effective Date and, subject to your continued
employment with the Company through May 1, 2011, 50% of which ($110,000) shall be paid on or prior to June 30, 2011. 

3.3. Employee Benefits. During your employment hereunder, you shall be eligible to participate in and receive any benefits to
which you are entitled under the employee benefit plans that the Company provides for its employees generally, as well as any employee benefit plans that the Company provides for its executive officers generally. 

  
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 3.4. Expenses. During your employment hereunder, the Company shall reimburse you for
all expenses incurred by you in the performance of your duties and responsibilities under this Agreement, including entertainment and travel expenses, in accordance with the policies and procedures established by the Compensation Committee.

 3.5. Equity Awards. On October 1, 2010 (the “Grant Date”), you shall be granted 50,000 shares of
restricted common stock of the Company (the “Stock Grant”) in accordance with the Company’s 2009 Incentive Plan, vesting in four equal annual installments on the first through the fourth anniversaries of the Grant Date, except that no
installment shall vest unless you are still employed by the Company at the time of such vesting. Notwithstanding the foregoing, the Stock Grant shall vest immediately (i) upon the occurrence of a Change of Control (as defined in and pursuant
and subject to the terms of Section 3.8) or (ii) in the event that, during your employment hereunder, (x) your employment is terminated by the Company without Cause or (y) you voluntarily terminate your employment for Good
Reason. Except as provided above, the Stock Grant shall be subject to the terms and conditions set forth in the Company’s customary award agreements. During your employment hereunder, you shall be eligible to receive additional equity awards of
the Company under the terms of the Company’s 2009 Incentive Plan, as determined by the Compensation Committee. 
 3.6
Relocation. The Company shall reimburse you for certain relocation expenses in accordance with the Company’s Corporate Relocation Policy (attached hereto as Exhibit B and incorporated herein by reference and as may be amended from time
to time); provided, however, that, notwithstanding the section titled “Temporary Living Expenses” of the Company’s Corporate Relocation Policy, the Company shall reimburse you for the reasonable costs of temporary housing for up to
three months, in an amount not to exceed $20,000. 
 3.7. Severance. In the event that (a) your employment is
terminated by the Company without Cause or (b) you voluntarily terminate your employment for Good Reason, the Company shall pay you, in full satisfaction of the Company’s obligations hereunder, an amount equal to the product of the
Severance Multiple (as defined below) and the sum of (i) your then Annual Base Salary and (ii) (A) in the event that such termination occurs prior to September 27, 2011, $220,000, or (B) in all other cases, the average of
the annual bonuses actually paid to you with respect to the three completed years preceding the date of your termination of employment (or such lesser number of completed years beginning on the Effective Date and ending on the date of your
termination of employment), less all applicable withholding and other applicable taxes and deductions (“Severance Amount”); provided that (x) you execute and deliver to the Company, and do not revoke, a release of all claims against
the Company substantially in the form attached hereto as Exhibit C (“Release”) and (y) you have not materially breached as of the date of such termination any provisions of this Agreement and do not materially breach such provisions
at any time during the Relevant Period (as defined below). The Severance Multiple shall be equal to (I) two during the period between the Effective Date and the fourth anniversary thereof and (II) one at any time thereafter. The Company’s
obligation to make such payment shall be cancelled upon the occurrence of any such material breach and, in the event such payment has already been made, you shall repay to the Company such payment within 30 days after demand therefore; provided,
however, such repayment shall not be required if the Company shall have materially breached this Agreement prior to the time of your breach. The Severance Amount shall be paid in cash in a single lump sum on the later of (1) the first day of
the month following the month in which such termination occurs and (2) the date the Revocation Period (as defined in the Release) has expired. Notwithstanding anything in this paragraph to the contrary, if a Release is not executed and
delivered to the Company within 60 days of such termination of employment (or if such Release is revoked in accordance with its terms), the Severance Amount shall not be paid. Upon the expiration of this Agreement due to non-renewal, or upon the
termination of your employment hereunder for Cause or by your death or Disability, or by your voluntary termination of your employment hereunder without Good Reason, you shall be entitled only to the payment of such installments of your Annual Base
Salary that have been earned through the date of such expiration and/or termination. 
 3.8. Change of Control Payments.
(a) In the event that (i) there is a Change of Control (as defined below) and (ii) your employment is terminated by the Company without Cause or you voluntarily terminate your employment for Good Reason, in either case, within two
years following the Change of Control, then the Company shall pay you the Severance Amount. The Severance Amount shall be paid to you in cash in a single lump sum within 30 days after the date your employment terminates. In the event that it is
determined that the aggregate amount of the payments and benefits that could be considered “parachute payments” within the meaning of 

  
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Section 280G of the Internal Revenue Code of 1986, as amended (collectively, with the regulations and other guidance promulgated thereunder, the “Code”; and such payments and
benefits, the “Parachute Payments”) that, but for this Section 3.8 would be payable to you under this Agreement or any other plan, policy or arrangement of the Company, exceeds the greatest amount of Parachute Payments that could be
paid to you without giving rise to any liability for any excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the aggregate amount of Parachute Payments payable to you shall not exceed the amount that produces the
greatest after-tax benefit to you after taking into account any Excise Tax to be payable by you. Any reduction in Parachute Payments pursuant to the immediately preceding sentence shall be made in the following order: (1) cash payments that do
not constitute deferred compensation within the meaning of Section 409A of the Code, (2) welfare or in-kind benefits, (3) equity compensation awards and (4) cash payments that do constitute deferred compensation, in each case,
such reductions shall be made in the manner that maximizes the present value to you of all such payments. Subject to the Section 280G limitation referred to above, to the extent that you are not fully vested in any retirement benefits from any
pension, profit-sharing or other retirement plan or program maintained by the Company and your employment terminates in the circumstances contemplated by this Section 3.8(a), the Company shall pay directly to you within 30 days after the date
on which your employment terminates the difference between the amounts that would have been paid to you had you been fully vested on the date that your employment terminates and the amounts actually paid or payable to you pursuant to such plans or
programs. The amounts payable to you under this Section 3.8(a) during the two-year period following a Change of Control shall be in lieu of any amounts payable to you under Section 3.7 and shall be in full satisfaction of the
Company’s obligations hereunder; provided, however, that if your employment is terminated by the Company without Cause or by you for Good Reason following such two-year period, Section 3.7, and not Section 3.8, shall apply.

 (b) As used herein, “Change of Control” shall mean the occurrence of one or more of the following
events: 
 (i) after the Effective Date hereof, any person, entity or “group” as identified in
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “1934 Act”), other than you or any of your affiliates or Leonard Riggio or any of his heirs or affiliates, becomes a beneficial owner (as such term is defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing 40% or more of the total number of votes that may be cast for the election of directors of the Company; or 

(ii) within two years after a merger, consolidation, liquidation or sale of assets involving the Company, or a contested
election of a Company director, or any combination of the foregoing, the individuals who were directors of the Company immediately prior thereto shall cease to constitute a majority of the Board; or 

(iii) within two years after a tender offer or exchange offer for voting securities of the Company, the individuals who
were directors of the Company immediately prior thereto shall cease to constitute a majority of the Board. 
 4.
Non-Competition and Confidential Information. 
 4.1. Non-Competition. You agree that during your employment
hereunder and for a period of two years (the “Relevant Period”) after the termination for any reason of your employment, you shall not, directly or indirectly, (a) employ or retain, or induce or cause any other person or entity to
employ or retain, any person who is, or who at any time in the twelve-month period prior to such time had been, employed or retained by the Company or any of its subsidiaries or affiliates; or (b) provide services, whether as principal or as
agent, officer, director, employee, consultant, shareholder, or otherwise, alone or in association with any other person, corporation or other entity, to any Competing Business (as defined below); provided, however, that you may provide services to
a Competing Business (other than Amazon.com, Inc. and its subsidiaries and affiliates and their respective successors (collectively, “Amazon”)) that is engaged in one or more businesses other than the Business Area (as defined below) but
only to the extent that you do not provide services, directly or indirectly, to the segment of such Competing Business that is engaged in the Business Area. For purposes of this Agreement, the term “Competing Business” shall mean
(i) Amazon or (ii) any person, corporation or other entity engaged in the Business Area. For purposes of this Agreement, the term “Business Area” shall mean the sale, distribution or attempted sale or distribution of books,
textbooks, periodicals, newspapers, digital or audio versions of any of the foregoing or e-reading devices and related 

  
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software. Notwithstanding the foregoing, the restrictions of this Section 4.1 shall not apply to the placement of general advertisements or the use of general search firm services with
respect to a particular geographic area, but which are not targeted, directly or indirectly, towards employees of the Company or any of its subsidiaries. 
 4.2. Ownership of Other Securities. Nothing in Section 4.1 shall be construed as denying you the right to own securities of any corporation listed on a national securities exchange or quoted
in the NASDAQ System in an amount up to 5% of the outstanding number of such securities. 
 4.3. Confidential
Information. (a) You shall use best efforts and diligence both during and after any employment with the Company, regardless of how, when or why such employment ends, to protect the confidential, trade secret and/or proprietary character of
all Confidential Information and Trade Secret Information (as defined below). You shall not, directly or indirectly, use (for your benefit or for the benefit of any other person) or disclose any Confidential Information or Trade Secret Information,
for so long as it shall remain proprietary or protectable, except as may be necessary for the performance of your duties for the Company. For purposes of this Agreement, “Confidential Information” shall mean all confidential information of
the Company, regardless of the form or medium in which it is or was created, stored, reflected or preserved, information that is either developed by you (alone or with others) or to which you shall have had access during any employment with the
Company. Confidential Information includes, but is not limited to, Trade Secret Information, and also includes information that is learned or acquired by the Company from others with whom the Company has a business relationship in which, and as a
result of which, such information is revealed to the Company. For purposes of this Agreement, “Trade Secret Information” shall mean all information, regardless of the form or medium in which it is or was created, stored, reflected or
preserved, that is not commonly known by or generally available to the public and that: (i) derives or creates economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other
persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The Company’s Trade Secret Information may include, but is not
limited to, all confidential information relating to or reflecting the Company’s research and development plans and activities; compilations of data; product plans; sales, marketing and business plans and strategies; pricing, price lists,
pricing methodologies and profit margins; current and planned incentive, recognition and rewards programs and services; personnel; inventions, concepts, ideas, designs and formulae; current, past and prospective customer lists; current, past and
anticipated customer needs, preferences and requirements; market studies; computer software and programs (including object code and source code); and computer and database technologies, systems, structures and architectures. You understand that
Confidential Information and/or Trade Secret Information may or may not be labeled as such, and you shall treat all information that appears to be Confidential Information and/or Trade Secret Information as confidential unless otherwise informed or
authorized by the Company. Nothing in this Agreement shall be construed to mean that Company owns any intellectual property or ideas that were conceived by you before you commenced employment with Company and which you have previously disclosed to
the Company. Subject to Section 4.3(b), nothing in this Section 4.3(a) shall prevent you from complying with a valid legal requirement (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process) to disclose any Confidential Information or Trade Secret Information. 

(b) You agree that both during and after any employment with the Company, regardless of how, when or why such employment
ends, if you are legally required (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information or Trade Secret Information, you
shall promptly notify the Company of such request or requirement so that the Company may seek to avoid or minimize the required disclosure and/or to obtain an appropriate protective order or other appropriate relief to ensure that any information so
disclosed is maintained in confidence to the maximum extent possible by the agency or other person receiving the disclosure, or, in the discretion of the Company to waive compliance with the provisions of this Section 4.3. Thereafter, you shall
use reasonable efforts, in cooperation with the Company or otherwise, to avoid or minimize the required disclosure and/or to obtain such protective order or other relief. If, in the absence of a protective order or the receipt of a waiver hereunder,
you are compelled to disclose the Confidential Information or Trade Secret Information or else stand liable for contempt or suffer other sanction, censure or penalty, you shall disclose only so much of the Confidential Information or Trade Secret
Information to the party compelling disclosure as you believe in good faith on the basis of advice of counsel is required by law, and you shall give the Company prior notice of the Confidential Information or Trade Secret Information you believe you
are required to disclose. The Company shall reimburse any reasonable legal fees and related expenses you incur in order to comply with this Section 4.3(b). 

  
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 4.4. Inventions. You shall promptly disclose and provide to the Company, any original
works of authorship, designs, formulas, processes, improvements, compositions of matter, computer software programs, data, information or databases, methods, procedures or other inventions, developments or improvements of any kind that you conceive,
originate, develop, improve, modify and/or create, solely or jointly with others, during the period of your employment, or as a result of such employment (collectively, “Inventions”), and whether or not any such Inventions also may be
included within “Confidential Information” or “Trade Secret Information” (as defined under this Agreement), or are patentable, copyrightable or protectable as trade secrets. You acknowledge and agree that the Company is and shall
be the exclusive owner of all rights, title and interest in and to the Inventions and, specifically, that any copyrightable works prepared by you within the scope of your employment are “works for hire” under the Copyright Act, that such
“works for hire” are Inventions and that the Company shall be considered the author and owner of such copyrightable works. In the event that any Invention is deemed not to be a “work for hire”, or in the event that you should, by
operation of law, be deemed to be entitled to retain any rights, title or interest in and to any Invention, you hereby irrevocably waive all rights, title and interest and assign to the Company, without any further consideration and regardless of
any use by the Company of any such Inventions, all rights, title and interest, if any, in and to such Invention. You agree that the Company, as the owner of all Inventions, has the full and complete right to prepare and create derivative works based
upon the Inventions and to use, reproduce, publish, print, copy, market, advertise, distribute, transfer, sell, publicly perform and publicly display and otherwise exploit by all means now known or later developed, such Inventions and derivative
works anywhere throughout the world and at any time during or after your employment hereunder or otherwise. 
 4.5. Return of
Information. You shall promptly deliver to the Company, upon the termination for any reason of your employment, or at any other time at the Company’s request, without retaining any copies, all documents, information and other material in
your possession or control containing, reflecting and/or relating, directly or indirectly, to any Confidential Information and/or Trade Secret Information. 
 4.6 Cooperation. You agree that both during and after any employment with the Company, regardless of how, when or why such employment ends, you shall provide reasonable cooperation to the Company
and its affiliates in connection with any pending or future lawsuit, arbitration, or proceeding between the Company and/or any affiliate and any third party, any pending or future regulatory or governmental inquiry or investigation concerning the
Company and/or any affiliate and any other legal, internal or business matters of or concerning the Company and/or any affiliate. Such cooperation shall include meeting with and providing information the Company, any affiliate and/or their
respective attorneys, auditors or other representatives as reasonably requested by the Company. The Company shall reimburse any reasonable legal fees and related expenses you incur in order to comply with this Section 4.6. 

4.7. Non-Disparagement. During and after any employment with the Company, regardless of how, when or why such employment ends,
(a) you shall not make, either directly or by or through another person, any oral or written negative, disparaging or adverse statements or representations of or concerning the Company or its subsidiaries or affiliates, any of their clients or
businesses or any of their current or former officers, directors, employees or shareholders and (b) Company Parties (as defined below) shall not make any oral or written negative, disparaging or adverse statements or representations of or
concerning you; provided, however, that nothing herein shall prohibit (i) critical communications between you and the Company or Company Parties during your employment hereunder and in connection with your employment or (ii) you or any
Company Party from disclosing truthful information if legally required (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process). For purposes of this Agreement, the
term “Company Parties” shall mean the executive officers and designated spokespersons of the Company. 
 4.8.
Severability. If any of the restrictions in this Section 4 should for any reason whatsoever be declared invalid, the validity or enforceability of the remainder of this Agreement shall not be adversely affected thereby. 

  
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 4.9. Equitable Relief. (a) You acknowledge that your services to the Company are
of a unique character that gives them a special value to the Company. You further recognize that any violation of the restrictions in this Section 4 may give rise to losses or damages for which the Company cannot be reasonably or adequately
compensated in an action at law and that such violation may result in irreparable and continuing harm to the Company. Accordingly, you agree that, in addition to any other remedy that the Company may have at law or in equity, the Company shall be
entitled to injunctive relief to restrain any violation by you of the restrictions in this Section 4. 
 (b)
In addition, the Company recognizes that any violation of the restrictions in Section 4.7(b) may give rise to losses or damages for which you cannot be reasonably or adequately compensated in an action at law and that such violation may result
in irreparable and continuing harm to you. Accordingly, the Company agrees that, in addition to any other remedy that you may have at law or in equity, you shall be entitled to injunctive relief to restrain any violation by the Company of the
restrictions in Section 4.7(b). 
 4.10. Reasonableness. You acknowledge that the limitations and obligations
contained in this Section 4 are, individually and in the aggregate, reasonable and properly required by the Company and that in the event that any such limitations are found to be unreasonable and unenforceable, you shall submit to such
limitations and/or obligations in such form as the arbitrator shall determine. You agree that you shall not challenge or contest the reasonableness, validity or enforceability of any such limitations and obligations. 

5. Indemnification. You shall be indemnified by the Company, as an officer of the Company and its affiliates, against all actions,
suits, claims, legal proceedings and the like to the fullest extent permitted by law, including advancement of expenses, partial indemnification, indemnification following the termination of this Agreement, indemnification of your estate and similar
matters. For purposes of this Agreement, such indemnification shall extend to, to the fullest extent permitted by law, legal fees, costs, expenses, judgments, settlements, claim resolution payments, arbitration fees, arbitrator fees, mediation fees,
negotiation fees and hold harmless obligations. 
 6. Miscellaneous. 

6.1. Entire Agreement. This Agreement constitutes the entire agreement between you and the Company with respect to the terms and
conditions of your employment by the Company and supersedes all prior agreements, understandings and arrangements, oral or written, between you and the Company with respect to the subject matter hereof. 

6.2. Binding Effect; Benefits. This Agreement shall inure to the benefit of and shall be binding upon you and the Company and our
respective heirs, legal representatives, successors and assigns. 
 6.3. Amendments and Waivers. This Agreement may not
be amended or modified except by an instrument or instruments in writing signed by both parties to this Agreement. Electronic communications, even if receipt is acknowledged, shall not constitute an amendment or modification of this Agreement.

 6.4. Assignment. Neither this Agreement nor any rights or obligations that either party may have by reason of this
Agreement shall be assignable by either party without the prior written consent of the other party. 
 6.5. Notices. Any
notice that may or must be given under this Agreement shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepaid, or reputable overnight courier, addressed to you at the address set forth on the
first page hereof, or to the Company at 122 Fifth Avenue, New York, NY 10011 to the attention of the Vice President for Human Resources for the Company (with a copy to the Company’s Chief Financial Officer), or to such other address as you or
the Company, as the case may be, may designate in writing in accordance with the provisions of this section. 
 6.6. Section
and Other Headings; Other. The section and other headings contained in this Agreement are for reference purposes only and are not deemed to be a part of this Agreement or to affect the meaning and interpretation of this Agreement. For purposes
of this Agreement, the term “including” shall mean “including, without limitation.” 

  
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 6.7. Governing Law. This Agreement shall be construed (both as to validity and
performance) and enforced in accordance with and governed by the laws of the State of New York applicable to agreements made and to be performed wholly within the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. Except as provided in Section 6.9, exclusive jurisdiction for all
disputes or claims arising under or in connection with this Agreement, and any and all claims by or against you relating to your employment with the Company, shall lie in any Federal or state court located within the County of New York. 

6.8. Survival of Rights and Obligations. All rights and obligations arising hereunder shall continue to have full force and effect
after the termination of this Agreement unless otherwise provided herein to the extent necessary to preserve the intended benefits of such provisions. If any section of this Agreement is determined to be void, voidable or unenforceable, it shall
have no effect on the remainder of this Agreement, which shall remain in full force and effect, and the provisions so held invalid or unenforceable shall be deemed modified as to give such provisions the maximum effect permitted by applicable law.

 6.9. Arbitration. The parties agree that all disputes arising under or in connection with this Agreement, and any and
all claims by you relating to your employment with the Company, including any claims of discrimination or other employment-related claims arising under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act,
the Americans with Disabilities Act or any other employment-related Federal, state or local law, shall be submitted to arbitration before the American Arbitration Association (“AAA”) under its rules then prevailing for the type of claim in
issue before one arbitrator and to be held at the AAA’s office located in the County of New York. In any arbitration hereunder, the arbitrator shall have the power to issue appropriate injunctive or other non-monetary relief, and award
appropriate compensatory damages. The parties agree that no damages other than compensatory damages shall be sought or claimed by either party and each party waives any claim, right or entitlement to punitive, exemplary or consequential damages, or
any other damages, and each relevant arbitrator is specifically divested of any power to award any damages in the nature of punitive, exemplary or consequential damages, or any other damages of any kind or nature in excess of compensatory damages.
Nothing in this arbitration provision shall preclude, and the parties expressly acknowledge that either party may seek, temporary injunctive relief from any Federal or state court located within the County of New York in connection with or as
supplement to an arbitration hereunder, including regarding any claim under Section 4. For purposes of any such action or proceeding, the parties each hereby specifically submit to the personal jurisdiction of any Federal or state court located
within the County of New York and further agree that service of process may be made within or without the State of New York by giving notice in the manner provided in Section 6.5. 

6.10. Section 409A of the Code. It is intended that the provisions of this Agreement comply with Section 409A of the
Code, and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. If, at the time of your separation from service (within
the meaning of Section 409A of the Code), (a) you shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (b) the
Company shall make a good faith determination that an amount payable under this Agreement or any other plan, policy, arrangement or agreement of or with the Company (this Agreement and such other plans, policies, arrangements and agreements, the
“Company Plans”) constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in
order to avoid taxes or penalties under Section 409A of the Code, then the Company shall not pay any such amount on the otherwise scheduled payment date but shall instead accumulate such amount and pay it, without interest, on the first day of
the seventh month following such separation from service. Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to or for your benefit under any Company Plan
may not be reduced by, or offset against, any amount owing by you to the Company. Except as specifically permitted by Section 409A of the Code, the benefits and reimbursements provided to you under this Agreement and any Company Plan during any
calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this Agreement or Company Plan in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or
exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto. Further, in the case of 

  
 8 

 
reimbursement payments, such payments shall be made to you on or before the last day of the calendar year following the calendar year in which the underlying fee, cost or expense is incurred.
Notwithstanding the preceding, the Company makes no representations concerning the tax consequences of your participation in this Agreement under Section 409A of the Code or any other Federal, state or local tax law. Your tax consequences shall
depend, in part, upon the application of relevant tax law, including Section 409A of the Code, to the relevant facts and circumstances. You should consult a competent and independent tax advisor regarding the tax consequences of this Agreement.

 6.11. Representations and Warranties. You hereby represent and warrant to the Company that (a) your execution,
delivery and performance of this Agreement do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which you are a party or by which you are bound; (b) you
are not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity that has not been disclosed to the Company prior to the execution of this Agreement; (c) in the
performance of any duties and responsibilities on behalf of the Company, you shall not divulge or use in any way any trade secrets or confidential or proprietary information that are within your possession or knowledge (if any), are owned by any
other person or entity and regardless of whether or not such trade secrets or confidential or proprietary information are subject to any written agreement; and (d) upon the execution and delivery of this Agreement, it shall be a valid and
binding obligation, enforceable in accordance with its terms. You hereby acknowledge and represent that you fully understand the terms and conditions contained herein. 
 6.12. Counterparts. This Agreement may be executed in one or more identical counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same
instrument. 

  
 9 

 If the foregoing accurately reflects our agreement, kindly sign and return to us the
enclosed duplicate copy of this letter. 
  

			
	Very truly yours,
	
	BARNES & NOBLE, INC.
		
	By:	 	/s/ Michelle Smith
		 	Name: Michelle Smith
		 	Title: VP, Human Resources

  

			
	Accepted and Agreed to:
	
	EUGENE V. DEFELICE
		
	By:	 	/s/ Eugene V. DeFelice
		 	Name: Eugene V. DeFelice

 Date: 9/22/10 

[Signature Page to Employment Agreement] 

  
 10 

 EXHIBIT A 
 Barnes & Noble, Inc. 
 2011 Incentive Compensation Plan

 Performance Period: 1/31/10 – 4/30/11 
 Home Office Management 
 Objective 

The objective of the Incentive Compensation Plan is to reward key employees who have an impact on the overall results of the Company. Bonuses are based on
achieving established Company financial goals and individual performance goals. 
 Eligibility and Bonus Targets 

Employees of Barnes & Noble, Inc. are eligible to participate in the Plan based on their position within the organization and their level of
compensation. 
 Participants are eligible for a bonus based on a percentage of their base salary earned during the 2011 performance period. The
annual bonus percentage targets for eligible positions are: 
  

	 	•	 	 Vice Presidents
                                    25% - 30% of base salary

	 	•	 	 Directors
                                         
     15% - 20% of base salary 

	 	•	 	 Managers earning $65,000 and Up      10% of base salary 

Fiscal Year Impact 
 Due to the
change in the fiscal year, bonuses for 2011 will be based on 15 months of salary, instead of the usual 12 months. 
 Components and
Weightings 
 Bonus awards are based on achievement of company and individual performance. Each component is weighted as follows:

  

	 	•	 	 Consolidated EBITDA – (Weighted 50%) based on the total Company meeting its profitability target as measured by Consolidated Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA). 

  

	 	•	 	 Individual Component – (Weighted 50%) based on employee’s individual performance as evaluated by their manager using specific,
measurable objectives and overall performance. 

 Determination of Company Performance 

 

					
	 Performance Relative to Target
	  	% of Component	 
	 112% of Target or more
	  	 	115	% 
	 108% to less than 112%
	  	 	105	% 
	 92% to less than 108%
	  	 	100	% 
	 88% to less than 92%
	  	 	75	% 
	 84% to less than 88%
	  	 	50	% 
	 Less than 84% of Target
	  	 	0	% 

  
 1 

 EXHIBIT A 

 

 Determination of Individual Performance 

Each participant’s individual performance will be evaluated relative to specific goals established as well as overall job performance. Objectives
should be mutually agreed upon, specifying performance outcome and/or tasks to be accomplished within a specific time frame. Participants receive 100% payout for achievement of all personal objectives. If all goals are not achieved or are only
partially complete, a lesser amount may be awarded. 
 Plan Provisions 

 

	 	•	 	 The full bonus paid will be the aggregate of all Components awarded. 

 

	 	•	 	 Base salary is defined as the base salary as of 5/2/2010 and bonuses will be calculated based on 15 months of salary. 

 

	 	•	 	 Late entrants to the Plan will be based on the salary earned for the number of complete months during the performance period. Employees who transfer
from one bonus-eligible position to another during the performance period are eligible for a pro-rated bonus for each position. Anyone hired after January 31, 2011 will not be eligible to participate in the Plan until the following fiscal year.

  

	 	•	 	 Paid or unpaid time during a leave of absence exceeding three months will not be considered as eligible time for bonus calculation.

  

	 	•	 	 Employees must be actively employed in an eligible position and rated as “Meets Standards” or higher, not on a final warning or Improvement
Plan at the time bonuses are paid. The Company will deduct any federal, state or local taxes, which are required by law. 

  

	 	•	 	 Bonuses will be paid to participants as soon as financial results are available, calculations are complete and appropriate Senior Management approval
is obtained. The Compensation Committee is the ultimate authority for final approval of incentive compensation awards. 

  

	 	•	 	 The company shall pay bonuses (under this plan and other company bonus plans) in the aggregate of at least the amount declared by the Compensation
Committee in its last meeting before the company’s fiscal year end, which declaration is final and binding. 

 Plan
Administration 
 This 2011 Incentive Compensation Plan is the sole incentive compensation plan in effect for Home Office
Management, superseding and replacing all other plans, arrangements and agreements. The Plan is administered by the Compensation Committee, which retains sole authority to interpret the Plan and may suspend, amend or terminate the Plan in
whole or part at any time. 
 Any questions regarding the Plan should be directed to Michelle Smith, Vice President, Human Resources at
(212) 633-3280. 

  
 2 

 EXHIBIT B 
 Barnes & Noble, Inc. 
 Corporate Relocation Policy

 Revised 
 January 2010 

  
 1 

 EXHIBIT B 

 

 Barnes & Noble, Inc. 

Corporate Relocation Policy 
 Purpose 
 To provide assistance for Company initiated transfers in order to minimize
the financial and emotional impact of relocating for you and your family with minimal disruption. 
 Eligibility 

Relocation of General Office Management, Regional Directors, District Managers and Regional Management. 

Initiating Your Relocation 
 To
initiate the relocation process, a Relocation Authorization Form (sample attached) must be completed and approved by your Department Head or Regional Director. Once the form is completed and approved, it should be faxed directly to the
Human Resources Department at 516-338-8018. 
  

	 	•	 	 If you are relocating as a homeowner and selling your home, we will need to establish the anticipated sales price for the property. The Company will
arrange for a designated ERC certified real estate appraiser to conduct an independent appraisal. 

  

	 	•	 	 If a Relocation Advance is required, you will need to sign a Relocation Advance Request Confirmation and fax it back to the Human Resources Department
at (516) 338-8018 along with the completed and approved Relocation Authorization Form. Once approved, you will receive a check. 

 Any questions regarding the Corporate Relocation Policy should be directed to Kathy DeSimone in Human Resources at 516-338-8032. 
 Once the Relocation Expense Reports are completed and approved, submit all receipts to Kathy DeSimone in the Westbury office who will review and forward to Expense Payable for processing. 

Pre-Moving Expenses 
 You and your spouse or domestic partner shall be permitted two (2) weekend trips to the new location to look for suitable housing or one (1) full week trip depending upon the distance at the
direction of your supervisor. 
 Expenses to be Reimbursed for Relocation Travel 
 The following expenses will be reimbursed when incurred as a result of an overnight stay when searching for suitable housing: 

 

	 	•	 	 Meals – Reasonable actual expenses for breakfast and dinner will be reimbursed for you, your spouse or domestic partner and dependent
children. 

  

	 	•	 	 Lodging – You will be reimbursed for the expense of lodging consistent with the Company’s Travel & Expense Policy.

  

	 	•	 	 Transportation – You and your spouse shall be reimbursed for the cost of the airfare, or car travel at 16.5¢ per mile recorded
due to the relocation process for the use of a personal car for travel to and from airports, house hunting trips, etc. A rental car will be provided, if necessary, where you will be reimbursed for gas (with receipts). 

  
 2 

 EXHIBIT B 

 

 For further information regarding travel expense reimbursement, see the Travel & Expense
Policy. A copy of this policy can be obtained by contacting Kathy DeSimone in Human Resources at 516-338-8032. 
 Rental Assistance

 The following expenses will be reimbursed, provided the apartment rental is your principal place of residence. 

Lease Termination – Costs of terminating a lease for living quarters at your former location are reimbursed provided you make every effort to
sublet where permissible. Reimbursement is not to exceed the equivalent of two (2) month’s rent. A signed receipt from the landlord must be submitted with an expense report. 
 Note: Should any deposit money be withheld due to damages to the property, etc., the Company will not reimburse you for any expenses attributable to those damages or negligence. 

Rental Commission – Fees paid to a rental agent at the new location for locating rental property are reimbursable provided they do not exceed
one (1) month’s rent. An invoice or signed receipt must be obtained from the rental agent and submitted on an expense report. 

Home Sale Assistance 
 The
following expenses will be reimbursed, provided the house that you own is your principal place of residence, and you must be at least a 50% owner and listed on the title. 
 Closing Costs – The following are closing costs that are reimbursable on the sale of your former residence when relocating at the Company’s request. 

 

	 	•	 	 Attorney’s Fees 

  

	 	•	 	 Title Search Cost – If paid by Seller 

  

	 	•	 	 Real Estate Brokerage Fee – Reimbursement at the normal rate in effect for the area, not to exceed six (6) percent of the purchase price.

  

	 	•	 	 Loss of Sale between Appraised Value and Actual Selling Price – If necessary, the Company will reimburse you on the loss of sale of your residence
up to 10% of the appraised value to bring the sale price as close to the appraised value as possible. To establish the appraised value for the property, an independent appraisal will be conducted by a designated real estate appraiser selected by the
Company. 

 Delay on Sale of Residence – In instances where the sale of the home is delayed due to circumstances
beyond your control (e.g. your family cannot relocate at the same time, the closing on the sale of your home is delayed, etc.), the Company will reimburse you the interest, taxes, insurance and normal maintenance paid for the former home for a
period of up to three (3) months. 

  
 3 

 EXHIBIT B 

 

 Home Purchase Assistance 
 Closing Costs – The Company will reimburse the following expenses necessary for the purchase of a new home with proper documentation providing you are a current homeowner (prior to relocation)
and have initiated your relocation within one year from the effective date of your new position: 
  

	 	•	 	 Attorney’s Fees 

  

	 	•	 	 Lending Institution’s Attorney Fees 

  

	 	•	 	 Recording Fees for Deed and Mortgage 

  

	 	•	 	 Local and State Mortgage Taxes 

  

	 	•	 	 Title Insurance 

  

	 	•	 	 Appraisal Fee (if paid by purchaser) 

  

	 	•	 	 Survey Cost 

  

	 	•	 	 Mortgage Loan Origination Fee 

  

	 	•	 	 Real Estate Transfer Taxes 

Temporary Living Expenses 
 When
your family cannot move at the time of the transfer, you will be reimbursed for your temporary travel and living expenses for a period of up to thirty (30) days for the following expenses: 

 

	 	•	 	 Meals – Reasonable actual expenses for breakfast and dinner will be reimbursed. 

 

	 	•	 	 Lodging – You will be reimbursed for the expense of lodging consistent with the Company’s Travel & Expense Policy.

  

	 	•	 	 Transportation – You will be reimbursed the cost of airfare or car travel at 16.5¢ per mile recorded due to the relocation
process for the use of a personal car. A rental car will be provided, if necessary, where you will be reimbursed for gas (with receipts). 

  

	 	•	 	 Return Trips – When your family does not move at the same time, you will be reimbursed the travel costs for two (2) weekend trips to
your home. 

 Movement of Household Goods 
 You must notify the Human Resources Department two weeks in advance of your move with the approximate date and final destination. The Company will make the actual arrangements with the moving company and
the moving company will call you to finalize the arrangements. 
 The national carrier companies provide a maximum amount of coverage due to
damage during the move. The Company will not assume any additional liability. If you are moving any unusually large items, (i.e., a piano, etc.) you may wish to purchase additional insurance at your own expense. The following expenses are covered
when you move normal household goods from your old location to your new location: 
  

	 	•	 	 Packing at old location and transportation of the household goods to your new location. (Unpacking at the destination will not be reimbursed except for
large items such as beds, mattresses, mirrors, etc.) 

  
 4 

 EXHIBIT B 

 

  

	 	•	 	 If necessary, storage charges for household goods for a period of up to thirty (30) days may be reimbursed provided this charge has advance
approval from your supervisor. 

  

	 	•	 	 You shall be granted a reasonable amount of time off for moving with pay from date of packing to date of delivery at destination, if within five
(5) working days. 

  

	 	•	 	 In certain situations, (e.g. cross country moves), automobiles may be transported by an automobile carrier/moving company at the Company’s
expense. Prior approval must be obtained from your supervisor. 

 Non-covered Moving Expenses 

Transportation of items not covered under this policy includes (but not limited to): 

 

	 	•	 	 Boats 

  

	 	•	 	 Collectibles 

  

	 	•	 	 Precious metals or stones 

  

	 	•	 	 Perishables 

  

	 	•	 	 Hazardous material 

  

	 	•	 	 Pets/Livestock 

  

	 	•	 	 Free standing hot tubs, swimming pools, storage sheds, doghouses, etc. 

 

	 	•	 	 Yard ornaments including concrete furniture, statues, gazebos 

 Employee Transportation to New Residence 
 Should you use a personal car to transport your
family to the new location, mileage will be paid at 16.5¢ per mile recorded due to the relocation process, plus tolls for each vehicle driven, not to exceed two (2) vehicles. You will be reimbursed for either gas (with receipts) or
mileage, but not both. 
 Employee’s Liability 
 If you resign within one (1) year of your relocation, you will be required to repay 100% of your relocation expenses to the Company. 
 Taxes 
 The Internal Revenue Service requires that each employee include in income,
any non-deductible relocation expenses reimbursements received from the employer or paid on the employee’s behalf by the employer for the expense of moving from one residence to another. The IRS has established the rules for moving expenses and
has severely limited the costs, which are deductible by the employee. Some of the rules are as follows: 
  

	 	1.	Deductible Costs: 

  

	 	(a)	Cost of packing and moving household goods and other personal goods, including an in-transit storage. 

 

	 	(b)	Actual traveling expenses, including lodging, for an employee and his/her immediate family from his/her old to his/her new residence (no limit - one trip per family
member only). Note: This no longer includes the cost of meals. 

  

	 	2.	In order to qualify as a deductible, the employee must also meet two tests: 

 

	 	(a)	Distance – The new job must be at least 50 miles further from the taxpayer’s former residence than the former residence was from the former place of work.

  
 5 

 EXHIBIT B 

 

  

	 	(b)	Time – During the twelve months following the move, the taxpayer must be employed full-time, by the Company, for at least 39 weeks, during the 12 months
immediately after your move. 

  

	 	3.	The IRS requires that the employer withhold income taxes for the amounts reimbursed to the employee or paid by the employer on behalf of the employee for relocation
expenses, which are not deductible costs as per 1 above. 

  

	 	4.	Each year the Company will calculate the tax liability to non-deductible relocation expenses for each employee that relocated during the year. The Company will pay the
additional taxes due to these non-deductible expenses on behalf of each employee. You should not incur any additional tax liability due to the relocation process. 

 

	 	5.	Because of the complexity of the law, it is recommended that each employee who relocates at the Company’s request consult with a tax advisor to determine the
extent of tax liability. 

  
 6 

 EXHIBIT C 
 GENERAL RELEASE AND WAIVER 
 1. [Name] (“Employee”) hereby
acknowledges and agrees that Employee’s employment with Barnes & Noble, Inc. (the “Company”) terminated on
                    , 20     (the “Termination Date”). 

2. Employee acknowledges and agrees that Employee’s executing this General Release and Waiver (“Release”) is a condition
precedent to the Company’s obligation to pay (and the Employee’s right to retain) the payments and benefits set forth in Section 3.7 of the employment letter agreement, dated as of September 27, 2010, between Employee and the
Company (such agreement referred to herein as the “Employment Agreement” and such payments and benefits collectively referred to herein as the “Separation Benefit”), that the Separation Benefit is adequate consideration for this
Release, and that any monetary or other benefits that, prior to the execution of this Release, Employee may have earned or accrued, or to which Employee may have been entitled, have been paid or such payments or benefits have been released, waived
or settled by Releasor (as defined below) except as expressly provided in this Release. 
 3. (a) THIS SECTION PROVIDES A
COMPLETE RELEASE AND WAIVER OF ALL EXISTING AND POTENTIAL CLAIMS EMPLOYEE MAY HAVE AGAINST EVERY PERSON AND ENTITY INCLUDED WITHIN THE DESCRIPTION BELOW OF “RELEASEE.” BEFORE EMPLOYEE SIGNS THIS RELEASE, EMPLOYEE MUST READ THIS SECTION
CAREFULLY, AND MAKE SURE THAT EMPLOYEE UNDERSTANDS IT FULLY. 
 (b) In consideration of Employee’s receipt
and acceptance of the Separation Benefit from the Company, and on behalf of the Company and each Releasee (as defined below), Employee, on Employee’s behalf and on behalf of Employee’s heirs, executors, administrators, successors and
assigns (collectively, “Releasor”), hereby irrevocably, unconditionally and generally releases the Company, its current and former officers, directors, shareholders, trustees, parents, members, managers, affiliates, subsidiaries, branches,
divisions, benefit plans, agents, attorneys, advisors, counselors and employees, and the current and former officers, directors, shareholders, agents, attorneys, advisors, counselors and employees of any such parent, affiliate, subsidiary, branch or
division of the Company and the heirs, executors, administrators, receivers, successors and assigns of all of the foregoing (each, a “Releasee”), from or in connection with, and hereby waives and/or settles, except as provided in
Section 3(c), any and all actions, causes of action, suits, debts, dues, sums of money, accounts, controversies, agreements, promises, damages, judgments, executions, or any liability, claims or demands, known or unknown and of any nature
whatsoever, whether or not related to employment, and which Releasor ever had, now has or hereafter can, shall or may have as of the date of this Release, including, without limitation, (i) any rights and/or claims arising under any contract,
express or implied, written or oral, including, without limitation, the Employment Agreement; (ii) any rights and/or claims arising under any applicable foreign, Federal, state, local or other statutes, orders, laws, ordinances, regulations or
the like, or case law, that relate to employment or employment practices, including, without limitation, family and medical, and/or, specifically, that prohibit discrimination based upon age, race, religion, sex, color, creed, national origin,
sexual orientation, marital status, disability, medical condition, pregnancy, veteran status or any other unlawful bases, including, without limitation, the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, as amended, the Civil
Rights Acts of 1866 and 1871, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act of 1990, as amended, the Family Medical Leave Act of 1993, as amended, the Employee Retirement Income
Security Act of 1974, as amended, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, the Worker Adjustment and Retraining Notification Act of 1988, as amended, and any similar applicable statutes, orders, laws,
ordinances, regulations or the like, or case law, of the State of New York and any State in which any Releasee is subject to jurisdiction, or any political subdivision thereof, including, without limitation, the New York State Human Rights Law, the
New York State Labor Law and the New York City Human Rights Law, and all applicable rules and regulations promulgated pursuant to or concerning any of the foregoing statutes, orders, laws, ordinances, regulations or the like; (iii) any waivable
rights and/or claims relating to wages and hours, including under state or local labor or wage payment laws; (iv) any rights and/or claims to benefits that Employee may have or become entitled to receive under any severance, termination, change
of control, bonus or similar policy, plan, program, agreement or similar or related arrangements, including, without limitation, any offer letter, letter agreement or employment agreement between Employee and the Company; (v) any rights and/or
claims that Employee may have to receive any equity in the Company (whether restricted or unrestricted) in the future; and (vi) and any rights and/or claims for attorneys’ fees. Employee agrees not to challenge or contest the
reasonableness, validity or enforceability of this Release. 

  
 1 

 EXHIBIT C 

 

 (c) Notwithstanding the foregoing, Employee does not release any
Releasee from any of the following rights and/or claims: (i) any rights and/or claims Employee may have that arise after the date Employee signs this Release; (ii) any rights and/or claims that by law cannot be waived by private agreement;
(iii) Employee’s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission (“EEOC”) or similar government agency; provided that even though
Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or similar government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from any Releasee to the extent
permitted by law; (iv) Employee’s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA); (v) any rights and/or claims to insurance coverage under any directors’ and officers’
personal liability insurance or fiduciary insurance policy; and (vi) any rights and/or claims to enforce the Employment Agreement in accordance with its terms. 
 4. Employee represents and warrants that Employee has not filed or commenced any complaints, claims, actions or proceedings of any kind against any Releasee with any Federal, state or local court or any
administrative, regulatory or arbitration agency or body. Employee hereby waives any right to, and agrees not to, seek reinstatement or employment of any kind with any Releasee and, without waiver by any Releasee of the foregoing, the existence of
this Release shall be a valid, nondiscriminatory basis for rejecting any such application or, in the event Employee obtains such employment, for terminating such employment. This Release and the Separation Benefit are not intended to be, shall not
be construed as and are not, an admission or concession by any Releasee of any wrongdoing or illegal or actionable acts or omissions. 
 5. (a) Employee hereby represents and agrees that Employee shall keep confidential and not disclose orally or in writing, to any person, except as may be required by law, any and all information
concerning the existence or terms of this Release and the amount of any payments made hereunder. Employee further agrees that, except as shall be required by law, Employee shall keep confidential and not disclose orally or in writing, directly or
indirectly, to any person (except Employee’s immediate family, attorneys and accountant), any and all information concerning any facts, claims or assertions relating or referring to any experiences of Employee or treatment Employee received by
or on behalf of any Releasee through the date of this Release. 
 (b) If Employee is requested or required (by
oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any information covered by Section 5(a), Employee shall promptly notify the Company of such request or
requirement so that the Company may seek to avoid or minimize the required disclosure and/or to obtain an appropriate protective order or other appropriate relief to ensure that any information so disclosed is maintained in confidence to the maximum
extent possible by the agency or other person receiving the disclosure, or, in the discretion of the Company, to waive compliance with the provisions of this Release. Employee shall use reasonable efforts, in cooperation with the Company or
otherwise, to avoid or minimize the required disclosure and/or to obtain such protective order or other relief. If, in the absence of a protective order or the receipt of a waiver hereunder, Employee is compelled to disclose such information or else
stand liable for contempt or suffer other sanction, censure or penalty, Employee shall disclose only so much of such information to the party compelling disclosure as he believes in good faith on the basis of advice of counsel is required by law,
and Employee shall give the Company prior notice of such information he believes he is required to disclose. 
 6.
(a) Employee shall not make, either directly or by or through another person, any oral or written negative, disparaging or adverse statements or representations of or concerning any Releasee. 

(b) Without limitation to the survival of any other terms of the Employment Agreement subsequent to the end of
Employee’s employment, the expiration or termination of the Employment Agreement, and/or the execution and effectiveness of this Release, Employee and the Company expressly acknowledge that the terms of Sections 4 and 5 of the Employment
Agreement survive and shall be in full force and effect as provided in the Employment Agreement. 

  
 2 

 EXHIBIT C 

 

 7. The covenants, representations and acknowledgments made by Employee in this Release
shall continue to have full force and effect after the execution and effectiveness of this Release and the delivery of the Separation Benefit, and this Release shall inure to the benefit of each Releasee, and the successors and assigns of each of
them, to the extent necessary to preserve the intended benefits of such provisions. If any section of this Release is determined to be void, voidable or unenforceable, it shall have no effect on the remainder of this Release, which shall remain in
full force and effect, and the provisions so held invalid or unenforceable shall be deemed modified as to give such provisions the maximum effect permitted by applicable law. Without limitation to Section 3.7 of the Employment Agreement, the
Company shall be excused and released from any obligation to make payment of the Separation Benefit, and Employee shall be obligated to return to the Company the Separation Benefit, in the event that Employee is found to have (a) made a
material misstatement in any term, condition, covenant, representation or acknowledgment in this Release, or (b) Employee is found to have committed or commits a material breach of any term, condition or covenant in this Release. 

8. This Release and the Employment Agreement constitute the sole and complete agreement between the parties with respect to the matters
set forth therein and supersedes all prior agreements, understandings and arrangements, oral or written, between Employee and the Company with respect to the subject matter thereof. This Release may not be amended or modified except by an instrument
or instruments in writing signed by the party against whom enforcement of any such modification or amendment is sought. Either party may, by an instrument in writing, waive compliance by the other party with any term or provision of this Release to
be performed or complied with by such other party. 
 9. With respect to any claims or disputes under or in connection with this
Release or any claims released under Section 3 of this Release, Employee and the Company hereby acknowledge and agree that Sections 6.7 and 6.9 of the Employment Agreement shall govern. Employee acknowledges that a breach or threatened breach
of the provisions of this Release may give rise to losses or damages for which the Company cannot be reasonably or adequately compensated in an action at law, and that such violation may result in irreparable and continuing harm to the Company.
Accordingly, Employee agrees that, in addition to any other remedy that the Company may have at law or in equity, the Company shall be entitled to seek equitable relief, including, without limitation, injunction and specific performance and Employee
hereby waives any requirements for security or posting of any bond in connection with such relief. No specification in this Release of any particular remedy shall be construed as a waiver or prohibition of any other remedies (including claims for
damages) in the event of a breach or threatened breach of this Release. 
 10. Employee agrees and acknowledges that
(a) Employee has had an adequate opportunity to review this Release and all of its terms, (b) Employee understands all of the terms of this Release, which are fair, reasonable and are not the result of any fraud, duress, coercion, pressure
or undue influence exercised by or on behalf of any Releasee and (c) Employee has agreed to and/or entered into this Release and all of the terms hereof, knowingly, freely and voluntarily. 

11. By executing this Release, Releasor acknowledges that (a) Employee has been advised by the Company to consult with an
attorney before executing this Release; (b) Employee was provided adequate time (i.e., at least 21 days) to review this Release and to consider whether to sign this Release and (c) Employee has been advised that Employee has 7 days
following execution to revoke this Release (“Revocation Period”). Notwithstanding anything to the contrary contained herein or in the Employment Agreement, this Release shall not be effective or enforceable, and the Separation Benefit is
not payable and shall not be delivered or paid by the Company, until the Revocation Period has expired and provided that Employee has not revoked this Release. Employee agrees that any revocation shall be made in writing and delivered to
                , Vice President, Human Resources, Barnes & Noble, Inc., 122 Fifth Avenue, NY, NY 10011. Employee acknowledges that revocation of this
Release shall result in the Company’s not having an obligation to pay the Separation Benefit. 

									
					
	Signature:	 	 	 		 	Date:	 	 
		 	[Name]	 		 		 	

  
 3Amendment No. 3 to Amended and Restated Revolving Credit Agreement

 Exhibit 4.1.3 
 EXECUTION 
 AMENDMENT NO. 3 TO AMENDED AND RESTATED REVOLVING CREDIT
AGREEMENT 
 This AMENDMENT NO. 3 TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this
“Amendment No. 3”) is made and entered into as of the 11th day of May, 2010, by and among GREEN MOUNTAIN COFFEE ROASTERS, INC., a Delaware corporation (the “Borrower”), the Subsidiaries of Borrower as Guarantors, the lenders party hereto
(collectively, the “Lenders” and, individually, a “Lender”), BANK OF AMERICA, N.A. as Administrative Agent (the “Agent”), L/C Issuer and Swing Line Lender, and BANC OF AMERICA SECURITIES
LLC as sole lead Arranger (the “Arranger”) and sole Book Manager. Capitalized terms used herein without definition shall have the meaning assigned to such terms in the Credit Agreement (as defined below). 

WHEREAS, Borrower, Agent and Lenders named therein are parties to that certain Amended and Restated Revolving Credit Agreement,
dated as of December 3, 2007, as amended by that certain Amendment No. 1 to Amended and Restated Revolving Credit Agreement, dated as of July 18, 2008, and as further amended by that certain Agreement to Exercise Facility Increase
Option and Amendment No. 2 to Amended and Restated Revolving Credit Agreement (as the same may be further amended and in effect from time to time, the “Credit Agreement”), which provides for a senior secured revolving credit
facility of $225,000,000 (as the same may be amended or revised from time to time, the “Revolving Credit Facility”), and a senior secured Term Loan A facility in the original principal amount of $50,000,000, which was as a result of
the exercise in full of the previously existing increase option (as the same may be amended from time to time, the “Term Loan Facility,” and together with the Revolving Credit Facility, the “Existing Credit
Facilities”); 
 WHEREAS, Borrower has requested a new term loan in an aggregate amount of $140,000,000
(“Term Loan A1”); 
 WHEREAS, Borrower, Agent and Lenders are amending the Credit Agreement to effect
the new Term Loan A1, which amendments are set forth in Part I hereof; 
 WHEREAS, in addition to the amendments related
to adding Term Loan A1 to the existing Term Loan Facility, Borrower, Agent and Lenders are further amending the Credit Agreement to, among other things, add a new increase option in an aggregate amount of up to $100,000,000, increase the general
basket for Investments, increase the amount of permitted Indebtedness on account of capital leases and purchase money obligations, and increase the general basket for unsecured permitted Indebtedness, which amendments are set forth in Part II
hereof; 
 WHEREAS, contemporaneously with the effectiveness of this Amendment No. 3, Borrower is consummating the
“Closing” under, and as defined in, the Agreement and Plan of Merger (“Merger Agreement”), dated December 7, 2009, among Borrower, Pebbles Acquisition Sub, Inc. and Diedrich Coffee, Inc. (the “Diedrich
Acquisition”); and 

  
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 WHEREAS, in connection with the Diedrich Acquisition, Lenders are granting a waiver
to extend the time period within which Diedrich Coffee, Inc. (“Diedrich”), as a new Subsidiary, will be required to become a Guarantor under the Credit Agreement from 30 days to 120 days, and certain other waivers that will
facilitate the planned closing mechanics of the Diedrich Acquisition in accordance with the Merger Agreement, which waivers are set forth in Part III hereof. 
 NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 PART I 
 TERM LOAN A1 
 1.    Definitions. Capitalized
terms used herein without definition shall have the meaning assigned to such terms in the Credit Agreement. 

2.    Amendments to Section 1.01 of the Credit Agreement. Section 1.01 of the Credit
Agreement is hereby amended as follows: 
  

	 	a.	by (i) deleting the definition of “Aggregate Commitments” in its entirety, and (ii) replacing it with the following: 

““Aggregate Commitments” means the Commitments of all Lenders (including the Commitments to make the Term Loans),
which amount, as of the effective date of Amendment No. 3 to Amended and Restated Revolving Credit Agreement, is $411,250,000, (A) less (i) any reductions pursuant to Section 2.06 of this Agreement, (ii) any
prepayments or repayments of Term Loan A or Term Loan A1, and (iii) amortization of Term Loan A and Term Loan A1, (B) plus any increases pursuant to Section 2.14 of this Agreement, except that, all references to the
“Aggregate Commitments” in Article II of this Agreement, other than Section 2.14 thereof, shall exclude Commitments attributable to the Term Loans.” 

 

	 	b.	by (i) deleting the definition of “Committed Loan” in its entirety, and (ii) replacing it with the following: 

“Committed Loan” means Revolving Loans and Term Loans, except that, references to “Committed Loans” in
Sections 2.01, 2.03 through 2.04, 2.06 and 2.09 through 2.12 of the shall continue to refer only to Revolving Loans. 
  

	 	c.	by (i) deleting the definition of “Loan Documents” in its entirety, and (ii) replacing it with the following: 

  
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 ““Loan Documents” means this Agreement (as amended from time to
time), the Agreement to Exercise Facility Increase Option and Amendment No. 2 to Amended and Restated Revolving Credit Agreement (and any Note delivered pursuant thereto), Amendment No. 3 to Amended and Restated Revolving Credit Agreement
(and any Note delivered pursuant thereto), each Note, each Issuer Document, the Fee Letter, each Collateral Document, the Guaranty and the Omnibus Amendment.” 
  

	 	d.	by (i) deleting the definition of “Outstanding Amount” in its entirety, and (ii) replacing it with the following: 

““Outstanding Amount” means, (i) with respect to Revolving Loans and Swing Line Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any borrowing and prepayments or repayments of Revolving Loans or Swing Line Loans, as the case may be, occurring on such date; (ii) with respect to any L/C Obligations on
any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by Borrower of Unreimbursed Amounts; (iii) with respect to Term Loan A on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowing and prepayments or repayments of Term Loan A occurring on
or prior to such date; and (iv) with respect to Term Loan A1 on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowing and prepayments or repayments of Term Loan A occurring on or prior to such
date.” 
  

	 	e.	by inserting in the appropriate alphabetical order the following new definitions: 

“Amendment No. 3 to Amended and Restated Revolving Credit Agreement” means that certain Amendment No. 3 to
Amended and Restated Revolving Credit Agreement, dated as of the          day of May, 2010, by and among Borrower, the Subsidiaries of Borrower as Guarantors, the lenders party thereto, Bank of
America, N.A. as Administrative Agent, L/C Issuer and Swing Line Lender, and Banc of America Securities LLC as sole lead Arranger and sole Book Manager. 
 “Revolving Loans” means Committed Loans that are revolving loans made pursuant to Section 2.01 of this Agreement. 

“Revolving Loan Lenders” means those lenders of Revolving Loans hereunder as set forth on Schedule A hereof, each
of which shall be “Lenders” under and for all purposes of this Agreement. 

  
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 “Term A Lenders” means those lenders of Term Loan A hereunder as set forth
on Schedule A hereof, each of which shall be “Lenders” under and for all purposes of this Agreement. 

“Term A1 Lenders” means those lenders of Term Loan A1 hereunder as set forth on Schedule A hereof, each of which
shall be “Lenders” under and for all purposes of this Agreement. 
 “Term Loan A” means those certain
senior secured term loans made by the Term A Lenders to Borrower, pursuant to the Agreement to Exercise Facility Increase Option and Amendment No. 2 to Amended and Restated Revolving Credit Agreement, in the original aggregate principal amount
of $50,000,000. 
 “Term Loan A1” means those certain senior secured term loans made by Term A1 Lenders to
Borrower, pursuant to Amendment No. 3 to Amended and Restated Revolving Credit Agreement, in the original aggregate principal amount of $140,000,000. 
 “Term Loans” means Term Loan A, Term Loan A1, and any term loans, if any, that may be made from time to time pursuant to Section 2.14. 

3.    Applicable Percentage. “Applicable Percentage” as used in Article II of the Credit Agreement
(other than Section 2.12(a)(ii)), shall continue to apply only to Revolving Loans, Swing Line Loans and Letters of Credit; except that, (i) with respect to any prepayments of Term Loan A under Section 2.05 of the
Credit Agreement, or any repayments of Term Loan A, the term “Applicable Percentage” shall mean the Term Loan A Percentage of Term A Lenders as set forth on Schedule A hereto, and (ii) with respect to any prepayments of
Term Loan A1 under Section 2.05 of the Credit Agreement, or any repayments of Term Loan A1, the term “Applicable Percentage” shall mean the Term Loan A1 Percentage of Term A1 Lenders as set forth on Schedule A
hereto. 
 4.    Term Loan A1. 

4.1    Generally. Subject to the terms and conditions of this Amendment No. 3, each Term A1 Lender
severally agrees to lend to Borrower, and Borrower hereby agrees to borrow and repay to each Term A1 Lender in accordance with this Amendment No. 3 and the Credit Agreement, a Term Loan A1 in an original principal amount equal to the amount set
forth on Schedule A hereto opposite such Term A1 Lender’s name, the aggregate principal amount of which is $140,000,000. Schedule A hereto reflects Term Loan A1, each Term A1 Lender’s Applicable Percentage of Term Loan A1,
and each Lender’s Applicable Percentage of the Aggregate Commitments upon the effectiveness of Term Loan A1. Subject to the terms hereof, Term Loan A1 shall be disbursed immediately following the consummation of the Diedrich Acquisition, but on
or before June 15, 2010 (the “Closing Date”). 

  
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 4.2    Repayment; Prepayments. Borrower promises to repay Term
Loan A1 on the Maturity Date, and on the dates and in the amounts set forth below: 
  

			
	 DATE
	  	 AMOUNT

	 6/30/2010
	  	$    3,500,000
	 9/30/2010
	  	$    3,500,000
	 12/31/2010
	  	$    3,500,000
	 3/31/2011
	  	$    3,500,000
	 6/30/2011
	  	$    3,500,000
	 9/30/2011
	  	$    3,500,000
	 12/31/2011
	  	$    3,500,000
	 3/31/2012
	  	$    3,500,000
	 6/30/2012
	  	$    3,500,000
	 9/30/2012
	  	$    3,500,000
	 12/3/2012
	  	$105,000,000 or the unpaid balance,
whichever is more.

 Amounts repaid on Term Loan A1 may not be reborrowed. 
 Borrower may, subject to
the terms and conditions of Section 2.05(a) of the Credit Agreement, prepay Term Loan A1 at any time in whole or in part without premium or penalty upon written notice thereof in accordance with Section 2.05(a) thereof;
provided, however, that simultaneously with any such prepayments, Borrower must prepay a proportional amount of the Revolving Loans and Term Loan A under the Credit Agreement. Any such prepayments shall be applied to the remaining scheduled payments
of principal thereof pro rata against all remaining installments, and the amount of each Lender’s Applicable Percentage of such prepayment shall be such Lender’s Applicable Percentage with respect to each Loan as set forth on Schedule
A hereto. Notwithstanding the foregoing, payments and prepayments made during the continuance of an Event of Default shall be applied in the manner specified in Section 8.03 of the Credit Agreement. 

4.3     Interest Rate. 
 (a)    Subject to Section 2.8(b) of the Credit Agreement, (i) each Term Loan A1 that is a Eurodollar Rate Loan shall bear interest at the Eurodollar Rate plus
2.50% per annum, and Term Loan A1 shall, so long as the interest rate is based on the Eurodollar Rate, be deemed for all purposes of the Credit Agreement (other than under Section 2.08(a)(i) thereof) a Eurodollar Rate Loan, and
(ii) each Term Loan A1 that is a Base Rate Loan shall bear interest at the Base Rate plus 1.50% per annum, and Term Loan A1 shall, so long as the interest rate is based on the Base Rate, be deemed for all purposes of the Credit Agreement
(other than under Section 2.08(a)(ii) thereof) a Base Rate Loan. 
 (b)    Interest on Term Loan
A1 shall be due and payable at the times and in the manner specified in the Credit Agreement for all Loans. 

  
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 4.4    Borrowing, Conversion and Continuation of Term Loan A1.
Borrower shall specify in the Committed Loan Notice for Term Loan A1, attached hereto as Exhibit A, whether Term Loan A1 shall initially be a Base Rate Committed Loan or a Eurodollar Rate Loan, and if the latter, the duration of the Interest
Period relating thereto. Thereafter, Borrower may convert and continue all or any portion of Term Loan A1 as a Committed Loan of one Type or the other, in accordance with the terms of Section 2.02 of the Credit Agreement. 

4.5    Security Interest. Term Loan A1, as a Loan under the Credit Agreement, shall share ratably with all
other Loans and other Obligations under the Credit Agreement in respect to all Collateral existing from time to time under the Existing Credit Facilities, any treasury management and foreign exchange arrangements and any interest rate swap or
similar agreements with any Lender under the Existing Credit Facilities. 
 4.6    Notes. If any Term
A1 Lender requests a Note pursuant to Section 2.11(a) of the Credit Agreement to evidence such Term A1 Lender’s Term Loan A1, the Note to be issued with respect thereto shall be in the form of Exhibit B to this Amendment
No. 3. 
 5.    Agreement of Term A1 Lenders. Each Term A1 Lender acknowledges that it has,
independently and without reliance upon Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into the Term Loan
Facility as a Term A1 Lender. Each Term A1 Lender also acknowledges that it will, independently and without reliance upon Agent or any of their Related Parties and based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action under or based upon this Amendment No. 3 and any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 

6.    Use of Proceeds. The proceeds of Term Loan A1 shall be used to pay a portion of the purchase price for
the Diedrich Acquisition and for general corporate purposes of Borrower following the Diedrich Acquisition, and shall not be in contravention of any Law or of any Loan Document. 

PART II 

ADDITIONAL AMENDMENTS TO CREDIT AGREEMENT 
 7.    Additional Amendments. 

7.1.    Section 2.14 of the Credit Agreement is hereby inserted as follows: 

“2.14  Increase in Facility 
  

	 	(a)	 Request for Increase. Provided there exists no Default or Event of Default, upon notice to the Agent (who shall promptly notify the Lenders),
the Borrower may from time to time, request an increase in the Aggregate Commitments by an amount (for all such requests) not exceeding $100,000,000.00; provided that (i) any such request for an increase shall

  
 6 

	 	 
be in a minimum amount of $10,000,000, (ii) the Borrower may make a maximum of three such requests, and (iii) any such increase shall be in the form of an increase to the Revolving
Loans. At the time of sending such notice, the Borrower (in consultation with the Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery
of such notice to the Lenders). 

  

	 	(b)	Lender Elections to Increase. Each Lender shall notify the Agent in writing within such time period whether or not it agrees to increase its Commitment for
Revolving Loans and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its
Commitment. No Lender shall have any obligation to increase its Commitment. 

  

	 	(c)	Notification by Agent; Additional Lenders. The Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made hereunder. To
achieve the full amount of a requested increase and subject to the approval of the Agent, the Borrower may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance reasonably satisfactory to
the Agent and its counsel. 

  

	 	(d)	Effective Date and Allocations. If the Aggregate Commitments are increased in accordance with this Section, the Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation of such increase. The Agent shall promptly notify the Borrower and the Lenders of the final allocation of such increase and the Increase Effective Date.

  

	 	(e)	Conditions to Effectiveness of Increase. As a condition precedent to such increase, the Borrower shall deliver to the Agent a certificate of each Loan Party
dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase,
and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article 5 and the other Loan Documents are true and correct in all material
respects on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and
(B) no Default or Event of Default exists or will exist immediately following the effectiveness of the requested increase. 

  

	 	(f)	 Amendments. To the extent necessary to implement any increases in the Aggregate Commitments pursuant to this Section, Agent and Borrower

  
 7 

	 	 
shall amend Schedule A and the definition of “Applicable Percentage” to reflect such increase without the need of further consent by the Required Lenders.

  

	 	(g)	Conflicting Provisions. This Section shall supersede any provisions in Section 10.01 to the contrary.” 

7.2    Section 7.02(j) of the Credit Agreement is amended by (i) deleting the reference to
“$1,000,000”; and (ii) replacing it with the following: “$5,000,000”. 

7.3    Section 7.03(e) of the Credit Agreement is amended by (i) deleting the reference to
“$10,000,000”; and (ii) replacing it with the following: “$20,000,000”. 

7.4    Section 7.03(h) of the Credit Agreement is amended by: (i) deleting the reference to
“$1,000,000”; and (ii) replacing it with the following: “$10,000,000”. 
 PART III 

WAIVERS 

8.    Waivers. 
 8.1    Reference is made to Section 6.13 of the Credit Agreement, which requires Borrower to notify Agent at the time that any Person becomes a Subsidiary, and promptly
thereafter (and in any event within 30 days), cause any such Domestic Subsidiary to become a Guarantor by executing and delivering to Agent a counterpart of the Guaranty or such other document as Agent shall deem appropriate for such purpose in
form, content and scope reasonably satisfactory to Agent. 
 8.2    In connection with Borrower’s
consummation of the Diedrich Acquisition, Diedrich has become a new Domestic Subsidiary of Borrower. 

8.3    Agent and Lenders agree to extend the period within which Section 6.13 requires Borrower to cause
Diedrich to comply with clauses (a) and (b) of Section 6.13 of the Credit Agreement from 30 days to 120 days from the date Diedrich becomes a Subsidiary. Notwithstanding the foregoing, Borrower shall pledge all of the Equity
Interests it acquires in Diedrich on a rolling, as-acquired basis, as required by Section 6.16 the Credit Agreement. 
 8.4    Reference is further made to Section 7.03(g) of the Credit Agreement, which prohibits Indebtedness owning to sellers in Permitted Acquisitions in excess of
$2,000,000 in the aggregate at any one time. 
 (a)    In order to consummate the Diedrich Acquisition,
Borrower may be required to exercise its “Top-Up Option” (as defined in the Merger Agreement), pursuant to which Borrower would purchase a certain number of newly issued shares of common stock of Diedrich. Pursuant to the terms of the
Merger Agreement, Borrower may pay for any such shares by executing and delivering to Diedrich a promissory note. 

  
 8 

 (b)    For the sole purpose of facilitating the Borrower’s exercise
of its Top-Up Option in order to consummate the Diedrich Acquisition, Agent and Lenders hereby waive Section 7.03(g) of the Credit Agreement to the extent necessary to permit Borrower to execute and deliver such a promissory note,
provided that such promissory note shall not remain outstanding for more than one (1) Business Day. 

8.5    The waivers granted herein are limited solely to the Diedrich Acquisition and time period and shall not extend
to or affect the application of Section 6.13 or Section 7.03(g) to any other Permitted Acquisition or other formation of a new Domestic Subsidiary. 
 PART IV 
 OMNIBUS PROVISIONS 

9.    Upfront Fees. Borrower shall pay to Agent, for the account of the Lenders set forth below, a fee (the
“Upfront Fee”) as follows: (i) for each Term A1 Lender, an amount equal to 50 basis points on the amount of such Term A1 Lender’s Term Loan A1 Commitment; and, (ii) for all Lenders signatory hereto, whether or not
participating in Term Loan A1, an amount equal to 12.5 basis points on each such Lender’s Aggregate Commitments as an amendment fee in consideration for each such Lender’s consent to this Amendment No. 3. The Upfront Fee shall be
payable by Borrower to Agent in full on the Closing Date. 
 10.    Conditions to Effectiveness of this
Amendment No. 3. The effectiveness of this Amendment No. 3, and the obligation of each Term A1 Lender to make Term Loan A1 pursuant to this Amendment No. 3, are subject to the satisfaction of each of the following conditions
precedent: 
 10.1    Agent’s receipt of the following, each of which shall be originals or PDF
versions (in each case followed promptly by originals), each properly executed by a Responsible Officer of the signing Loan Party, each dated as of the Closing Date and each in form and substance reasonably satisfactory to Agent: 

(a)    executed counterparts of this Amendment No. 3 by Borrower, Agent and each Lender and the Consent of
Guarantor attached hereto as Exhibit C by each Guarantor, sufficient in number for distribution to Agent, each Lender and Borrower; 
 (b)    with respect to each Term A1 Lender, a Note executed by Borrower in favor of each Term A1 Lender requesting a Note, which shall be in the form of Exhibit B hereto;

 (c)    such certificates of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of each Loan Party as Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment
No. 3 and the other Loan Documents provided in connection herewith to which such Loan Party is a party, and certifying and attaching the resolutions adopted by such Loan Party approving or consenting to Term Loan A1, the amendments to the
Credit Agreement, and the waiver and extension of the 30-day guaranty requirement for Diedrich; 

  
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 (d)    such documents and certifications as Agent may reasonably require
to evidence that each Loan Party is duly organized, validly existing, in good standing and qualified to engage in business in each jurisdiction where such qualification is required, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; 
 (e)    a favorable opinion of counsel to the Loan Parties
reasonably acceptable to Agent addressed to Agent and each Lender, as to the matters set forth concerning the Loan Parties and the Loan Documents in the form and substance previously delivered to Agent pursuant to the Credit Agreement; 

(f)    a certificate signed by a Responsible Officer of Borrower certifying that: 

(i)    before and after giving effect to the Diedrich Acquisition, the borrowing of Term Loan A1 and
this Amendment No. 3, (1) no Default or Event of Default exists or would result from the Diedrich Acquisition, the borrowing of Term Loan A1 or from the application of the proceeds thereof, and (2) the representations and warranties
contained in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct in all material respects as of such earlier date. For purposes hereof, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit
Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement; 

(ii)    there has not occurred any event or state of facts that constitutes or reflects the occurrence
of a Material Adverse Effect under the Credit Agreement since September 30, 2008; 

(iii)    there is no action, suit, investigation or proceeding pending or, to the knowledge of
Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to (x) have a Material Adverse Effect, (y) adversely affect the ability of Borrower and the other Loan Parties to
perform their obligations under any of the Diedrich Acquisition, the Credit Agreement or this Amendment No. 3 or (z) adversely affect the rights and remedies of Agent or the Lenders under the Existing Credit Facilities; and 

(iv)    all consents, licenses, permits and approvals necessary for the execution, delivery and
performance of this Amendment No. 3 have been obtained and are in full force and effect; 

(g)    receipt by Agent of the financial statements required by Section 6.01(b) of the Credit Agreement
for the fiscal quarter ended September 26, 2009, and the certificates with respect thereto required by Section 6.02 of the Credit Agreement, and such financial statements and certificates shall not reflect the occurrence of any
Material Adverse Effect since September 27, 2008; 

  
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 10.2    Receipt by Agent of payment in cash of the fees in the amounts
specified in the Fee Letter, dated December 18, 2009, by and between Borrower, Agent and Banc of America Securities LLC, as the Arranger; 
 10.3    Borrower shall have paid all reasonable expenses, including, but not limited to, reasonable fees, charges and disbursements of counsel to Agent and Arranger (directly to such
counsel if requested by Agent) to the extent invoiced prior to the Closing Date, plus such additional amounts of such expenses, fees, charges and disbursements as shall constitute its reasonable estimate of such expenses, fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between Borrower and Agent), whether or not the closing occurs; 

10.4    On the Closing Date, after giving effect to the Diedrich Acquisition and the borrowing of Term Loan A1,
Borrower shall, on a consolidated basis, have a Leverage Ratio (as hereinafter defined) not exceeding 2.50:1.00. The “Leverage Ratio” shall mean the ratio of Funded Debt, determined on a pro forma basis as of the date of the Closing of the
Diedrich Acquisition, to Adjusted EBITDA (as defined in the Credit Agreement), determined as of the most recently completed fiscal quarter of Borrower for which a pro forma Compliance Certificate has been delivered, and calculated in a pro forma
basis in the manner provided for by the Credit Agreement; 
 10.5    Agent and Lenders shall have received
from Borrower updated financial projections and business assumptions covering the period until the Maturity Date, which shall be in a form and substance reasonably satisfactory to Agent and the Arranger; 

10.6    Receipt by Agent of the Upfront Fees payable to Lenders; and 

10.7    On the Closing Date, contemporaneously with the effectiveness of this Amendment No. 3, Borrower will
have consummated the Closing of the Diedrich Acquisition. 
 Without limiting the generality of the provisions of
Section 9.04 of the Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 10, each Lender that has signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Agent shall have received notice from such Lender prior to the proposed Closing
Date specifying its objection thereto. 
 11.    Representations and Warranties. Borrower represents
and warrants to Agent and the Lenders as follows: 
 11.1    Existence, Qualification and Power. Each
Loan Party and each Subsidiary thereof (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and
authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under this Agreement and the other
Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each 

  
 11 

 
jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i), or (c),
to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect. 

11.2    Authorization; No Contravention. The execution, delivery and performance by each Loan Party of this
Amendment No. 3 and other Loan Documents to which such Person is a party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any such Person’s
Organizational Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting
such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any
Law. 
 11.3    Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this
Amendment No. 3 or any Loan Document other than customary filings with respect to Collateral. 

11.4    Binding Effect. This Agreement has been, and each other Loan Document to be executed in connection
herewith, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other such Loan Document when so delivered will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or other Laws of general application affecting creditors and general
principles of equity. 
 11.5    Credit Agreement. Before and after giving effect to Term Loan A1 and
this Amendment No. 3, the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Closing Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date. For purposes hereof, the representations and warranties contained in subsections
(a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement.

 12.    Ratification, etc. Except as otherwise expressly provided hereunder, the Credit Agreement,
the other Loan Documents and all documents, instruments and agreements related thereto are hereby ratified and confirmed in all respects and shall continue in full force and effect. This Amendment No. 3 and the Credit Agreement as previously
amended shall hereafter be read and construed as a single document. 
 13.    Miscellaneous.

  
 12 

 13.1    Counterparts. This Amendment No. 3 may be executed
in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page
of this Amendment No. 3 by telecopy or PDF shall be as effective as delivery of an original executed counterpart of this Amendment No. 3. 
 13.2    Severability. If any provision of this Amendment No. 3 or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity
and enforceability of the remaining provisions of this Amendment No. 3 and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. 
 13.3    GOVERNING LAW; JURISDICTION;
ETC. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

  
 13 

 IN WITNESS WHEREOF, each of the undersigned has duly executed this Amendment
No. 3 as a sealed instrument as of the date first set forth above. 
  

			
	BORROWER:
	
	GREEN MOUNTAIN COFFEE ROASTERS, INC.
		
	By:	 	/s/ Frances G. Rathke
	 Name:
	 	Frances G. Rathke
	 Title:
	 	Chief Financial Officer and Treasurer

  

			
	BANK OF AMERICA, N.A.,
	 as Administrative Agent

		
	By:	 	/s/ Roberto Salazar
	 Name:
	 	Roberto Salazar
	 Title:
	 	Assistant Vice President

  

									
	 BANK OF AMERICA, N.A., as a Lender,
 Swing Line Lender and L/C Issuer
	 		 	KEYBANK NATIONAL ASSOCIATION, as a Lender
					
	By:	 	/s/ Christopher S. Allen	 		 	By:	 	/s/ Martin J. Costello
	 Name:
	 	 Christopher S. Allen
	 		 	 Name:
	 	Martin J. Costello
	 Title:
	 	 Senior Vice President
	 		 	 Title:
	 	Vice President
			
	 BANC OF AMERICA SECURITIES LLC,
 as Arranger
	 		 	 BMO CAPITAL MARKETS FINANCING, INC.,
 as Co-Documentation Manager

					
	By:	 	/s/ Mark Hardison	 		 	By:	 	/s/ Tara Cuprisin
	 Name:
	 	 Mark Hardison
	 		 	 Name:
	 	Tara Cuprisin
	 Title:
	 	 Vice President
	 		 	 Title:
	 	Vice President
			
	 SOVEREIGN BANK, as Syndication Agent
	 		 	 BMO CAPITAL MARKETS FINANCING, INC., as a Lender

					
	By:	 	/s/ Karen Ng	 		 	By:	 	/s/ Tara Cuprisin
	 Name:
	 	 Karen Ng
	 		 	 Name:
	 	Tara Cuprisin
	 Title:
	 	 Vice President
	 		 	 Title:
	 	Vice President

  

									
	SOVEREIGN BANK, as a Lender	 		 	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. “RABOBANK NEDERLAND”, NEW YORK BRANCH, as a Lender
					
	By:	 	/s/ Karen Ng	 		 	By:	 	/s/ Theodore W. Cox
	 Name:
	 	 Karen Ng
	 		 	 Name:
	 	Theodore W. Cox
	 Title:
	 	 Vice President
	 		 	 Title:
	 	Executive Director
					
		 		 		 	By:	 	/s/ Rebecca Morrow
		 		 		 	Name:	 	Rebecca Morrow
		 		 		 	Title:	 	Executive Director
			
	TD BANK, N.A., as Documentation Agent	 		 	BROWN BROTHERS HARRIMAN & CO., as a Lender
					
	By:	 	/s/ Douglas S. Graham	 		 	By:	 	/s/ J.E. Hall
	 Name:
	 	 Douglas S. Graham
	 		 	 Name:
	 	J.E. Hall
	 Title:
	 	 Senior Vice President
	 		 	 Title:
	 	Managing Director
			
	TD BANK, N.A., as a Lender	 		 	HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender
					
	By:	 	/s/ Douglas S. Graham	 		 	By:	 	/s/ David A. Carroll
	 Name:
	 	 Douglas S. Graham
	 		 	 Name:
	 	David A. Carroll
	 Title:
	 	 Senior Vice President
	 		 	Title:	 	Vice President, Senior Relationship Manager
				
	SUNTRUST BANK, as a Lender	 		 		 	
					
	By:	 	/s/ Gabe Bonfield	 		 		 	
	 Name:
	 	 Gabe Bonfield
	 		 		 	
	 Title:
	 	 Vice President
	 		 		 	

 SCHEDULE A 

COMMITMENTS, TERM LOAN A, TERM LOAN A1 AND APPLICABLE PERCENTAGES 

 

																																	
	 	  	REVOLVING LOANS
(Committed Loans Pursuant
to Section 2.01 of the Credit
Agreement)	 	 	TERM LOAN A	 	 	TERM LOAN A1	 	 	ALL LOANS	 
	 Lender
	  	Commitment
Amount	 	  	Revolving
Percentage	 	 	Term Loan
A Amount	 	  	Term Loan
A
Percentage	 	 	Term Loan
A1 Amount	 	  	Term Loan
A1
Percentage	 	 	Amount of
All Loans	 	  	Percentage
of All
Loans	 
	 Bank of America, N.A.
	  	$	50,000,000	  	  	 	22.22222222	% 	 	$	10,175,000	  	  	 	22.0	% 	 	$	28,000,000	  	  	 	20.0	% 	 	$	88,175,000	  	  	 	21.440729	% 
	 Sovereign Bank
	  	$	30,500,000	  	  	 	13.55555556	% 	 	$	6,290,000	  	  	 	13.6	% 	 	$	17,000,000	  	  	 	12.1428571	% 	 	$	53,790,000	  	  	 	13.079635	% 
	 TD Bank, N.A.
	  	$	30,500,000	  	  	 	13.55555556	% 	 	$	6,660,000	  	  	 	14.4	% 	 	$	20,000,000	  	  	 	14.2857143	% 	 	$	57,160,000	  	  	 	13.899088	% 
	 BMO Capital Markets Financing, Inc.
	  	$	23,000,000	  	  	 	10.22222222	% 	 	 	N/A	  	  	 	N/A	  	 	 	N/A	  	  	 	N/A	  	 	$	23,000,000	  	  	 	5.592705	% 
	 KeyBank National Association
	  	$	23,000,000	  	  	 	10.22222222	% 	 	 	N/A	  	  	 	N/A	  	 	$	10,000,000	  	  	 	7.1428571	% 	 	$	33,000,000	  	  	 	8.024316	% 
	 Rabobank Nederland, New York Branch
	  	$	23,000,000	  	  	 	10.22222222	% 	 	$	4,625,000	  	  	 	10.0	% 	 	$	20,000,000	  	  	 	14.2857143	% 	 	$	47,625,000	  	  	 	11.580547	% 
	 Brown Brothers Harriman & Co.
	  	$	15,000,000	  	  	 	6.66666667	% 	 	 	N/A	  	  	 	N/A	  	 	 	N/A	  	  	 	N/A	  	 	$	15,000,000	  	  	 	3.647416	% 
	 HSBC Bank USA, National Association
	  	$	15,000,000	  	  	 	6.66666667	% 	 	$	9,250,000	  	  	 	20.0	% 	 	$	20,000,000	  	  	 	14.2857143	% 	 	$	44,250,000	  	  	 	10.759878	% 
	 Sun Trust Bank
	  	$	15,000,000	  	  	 	6.66666667	% 	 	$	9,250,000	  	  	 	20.0	% 	 	$	25,000,000	  	  	 	17.8571429	% 	 	$	49,250,000	  	  	 	11.975684	% 
		  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 
	 TOTAL
	  	$	225,000,000	  	  	 	100.00000000	% 	 	$	46,250,000	  	  	 	100.00000	% 	 	$	140,000,000	  	  	 	100.00000	% 	 	$	411,250,000	  	  	 	100.000	% 
		  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 

 EXHIBIT A 

Form of Committed Loan Notice for Term Loan A1 
 Date: [                 ] [    ], 2010 

Bank of America, N.A., as Administrative Agent 

100 Federal Street 
 Boston, MA 02110 

Attention:
[                                    ] 

 

	Re:	Green Mountain Coffee Roasters, Inc. – Committed Loan Notice for Term Loan A1 

 Ladies and Gentlemen: 
 Green Mountain Coffee Roasters, Inc. (the
“Borrower”) hereby submits this Committed Loan Notice for Term Loan A1 pursuant to Section 2.02 of the Amended and Restated Credit Agreement, dated as of December 3, 2007, as amended by that certain Amendment
No. 1 to Amended and Restated Revolving Credit Agreement, dated as of July 18, 2008, as further amended by that certain Agreement to Exercise Facility Increase Option and Amendment No. 2 to Amended and Restated Revolving Credit
Agreement, as further amended by that certain Amendment No. 3 to Amended and Restated Revolving Credit Facility (as further amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement”), among Borrower, its Subsidiaries as Guarantors, the Lenders from time to time party thereto, Bank of America, N.A., as Administrative Agent (the “Agent”), L/C Issuer and Swing Line Lender, Banc of America
Securities LLC as sole Lead Arranger and sole Book Manager, Sovereign Bank as Syndication Agent, TD Bank, N.A. as Documentation Agent, and BMO Capital Markets Financing, Inc. and KeyBank National Association as Co-Documentation Managers. All
capitalized terms used in this Committed Loan Notice for Term Loan A1 shall have the respective meanings provided therefore in the Credit Agreement. 
 Borrower hereby represents, warrants and certifies to you that (a) Borrower has performed and complied with all of the terms and conditions contained in the Credit Agreement required to be performed
or complied with by Borrower prior to or at the time of the Borrowing requested hereunder, (b) the representations and warranties of Borrower contained in the Credit Agreement or otherwise made by Borrower in connection with the transactions
contemplated thereby were true and correct in all material respects when made and are true and correct in all material respects on and as of the date hereof with the same effect as if made herein (except to the extent that such representations and
warranties relate expressly to an earlier date) and (c) at and as of the date hereof, Borrower is not in default of any of its Obligations under the Credit Agreement, and no Default or Event of Default exists. 

 [Use applicable section] 
 Request for Term Loan A11. The undersigned hereby requests that the Term A1 Lenders make a Term Loan A1 on the Closing Date (as defined in Amendment No. 3) for the Interest Period commencing on the Closing Date and ending on
[                    ]2 in the aggregate principal amount of $140,000,000. 
 [or] 
 Request for [Conversion] [Continuation] [Type of Loan]3. The undersigned hereby requests a [conversion] [continuation] of a
[Type of Loan] on [insert requested date of conversion or continuation, as applicable]4 [for the Interest Period commencing on [requested date of Borrowing] and ending on
                    ]5 in the principal amount of
[$                    ].6 
 [Remainder of Page Left Blank] 
  

 

	1	Term Loan A1 requests must be received by Agent not later than 12:00 noon (i) three Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate Loans. 

	2	For Eurodollar Rate Loans, one, two, three or six months after the requested date of Borrowing (as set forth in more detail in Credit Agreement).

	3	See fn.1 above. 

	4	Requested day of conversion or continuation must be a Business Day. 

	5	See fn.2 above. 

	6	Each conversion to or continuation of Eurodollar Rate Loans shall be in the principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. Each
conversion to Base Rate Loans shall be in a principal amount of $250,000 or a whole multiple of $50,000 in excess thereof. 

 IN WITNESS WHEREOF, the undersigned has caused this Committed Loan Notice for Term
Loan A1 to be signed as an instrument under seal by its duly authorized officer as of the day and year first above written. 
  

			
	BORROWER:
	
	GREEN MOUNTAIN COFFEE ROASTERS, INC.
		
	By:	 	 
		 	
Name:                       
                                         
                  

		 	
Title:                       
                                         
                    

 EXHIBIT B 

Form of Term Loan A1 Note 
  

			
	$
[                            ]	  	[                           
     ] [        ], 2010

 FOR VALUE RECEIVED, the
undersigned (“Borrower”), hereby promises to pay to
                                         
        or registered assigns (“Term A1 Lender”) the principal amount set forth above, in accordance with the provisions of that certain Amended and Restated Credit Agreement, dated as of
December 3, 2007, as amended by that certain Amendment No. 1 to Amended and Restated Credit Agreement, dated as of July 18, 2008, as further amended by that certain Agreement to Exercise Facility Increase Option and Amendment
No. 2 to Amended and Restated Revolving Credit Agreement, dated as of June 29, 2009, as further amended by that certain Amendment No. 3 to Amended and Restated Revolving Credit Agreement, dated as of January
[        ], 2010, by and among Borrower, Subsidiaries of Borrower as Guarantors, the Lenders identified therein, Bank of America, N.A., as Administrative Agent (the “Agent”), L/C Issuers and
Swing Line Lender, and Banc of America Securities LLC, as sole Lead Arranger (the “Arranger”) and sole Book Manager (as further amended, restated, extended, supplemented or otherwise modified in writing from time to time, the
“Credit Agreement”). 
 Borrower promises to pay interest on the unpaid principal amount of Term Loan A1 from
the date made until such principal amount is paid in full, at such interest rates and at such times as provided in the Credit Agreement. All payments of principal and interest shall be made to Agent for the account of Term A1 Lender in Dollars in
immediately available funds at the Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as
well as after judgment) computed at the per annum rate set forth in the Credit Agreement. 
 This Note is one of the Notes
referred to in the Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein. This Note is also entitled to the benefits of the Guaranty (as defined in the
Credit Agreement) and is secured by the Collateral (as defined in the Credit Agreement). Upon the occurrence and continuation of one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Note
shall become, or may be declared to be, immediately due and payable all as provided in the Credit Agreement. Loans made by Term A1 Lender shall be evidenced by one or more loan accounts or records maintained by Term A1 Lender in the ordinary course
of business. The Term A1 Lender may also attach schedules to this Note and endorse thereon the date, amount and maturity of its Term Loan A1 and payments with respect thereto. 
 Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Note. 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS
RULES THEREOF. 

 IN WITNESS WHEREOF, the undersigned has caused this Term Loan A1 Note to be signed as
an instrument under seal by its duly authorized officer as of the day and year first above written. 
  

			
	 BORROWER:

	
	 GREEN MOUNTAIN COFFEE ROASTERS, INC.

		
	 By:
	 	  

		 	Name:                            
                                        
            
		 	Title:                            
                                         
              

 EXHIBIT C 

Consent of Guarantor 
 The undersigned guarantor (the “Guarantor”) has guaranteed all of the Obligations under (and as defined in) the Amended and Restated Credit Agreement, dated as of December 3, 2007,
as amended by that certain Amendment No. 1 to Amended and Restated Revolving Credit Agreement, dated as of July 18, 2008, as amended further by that certain Agreement to Exercise Facility Increase Option and Amendment No. 2 to Amended
and Restated Revolving Credit Agreement, dated as of June 29, 2009 (as further amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among Borrower, its
Subsidiaries as Guarantors, the Lenders from time to time party thereto, Bank of America, N.A., as Administrative Agent (the “Agent”), L/C Issuer and Swing Line Lender, Banc of America Securities LLC as sole Lead Arranger and sole
Book Manager, Sovereign Bank as Syndication Agent, TD Bank, N.A. as Documentation Agent, and BMO Capital Markets Financing, Inc. and KeyBank National Association as Co-Documentation Managers. By executing this consent, the Guarantor hereby
absolutely and unconditionally reaffirms to the Lenders that the Guarantor’s Guaranty remains in full force and effect and covers all Obligations under the Credit Agreement, including Term Loan A and Term Loan A1. In addition, the Guarantor
hereby acknowledges and agrees to the terms and conditions of Amendment No. 3 to Amended and Restated Revolving Credit Agreement, dated as of January [        ], 2010, among Borrower, Agent and the
Lenders named therein, and of the Credit Agreement and the other Loan Documents as affected hereby (including, without limitation, the making of the representations and warranties and the performance of the covenants applicable to it herein or
therein). 
  

	
	 [KEURIG, INCORPORATED

	
	
By:                       
                                         
                               

	 Name:

	 Title:]

 

	
	 [TRAIN STATION CAFÉ

	
	
By:                       
                                         
                               

	 Name:

	 Title:]

 

	
	 [PEBBLES ACQUISITION SUB, INC.

	
	
By:                       
                                         
                               

	 Name:

	 Title:]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]