Document:

Executive Agreement Plan

 Exhibit 10.41 
 WellPoint, Inc. 
 EXECUTIVE AGREEMENT PLAN 
 (Amended and Restated Effective October 1, 2007, 
 With Certain Other Effective Dates) 

 WellPoint, Inc. 
 Executive Agreement Plan 
 Amended and Restated 
 Effective October 1, 2007 (With Certain Other Effective Dates) 
 ARTICLE 1 
 ESTABLISHMENT, AMENDMENT, PURPOSE AND INTENT 
 1.1 Establishment, Amendment, Purpose and Intent. WellPoint, Inc., an Indiana corporation with its principal place of business in
Indianapolis, Indiana (“WellPoint”), established this WellPoint, Inc. Executive Agreement Plan (“Plan”), effective as of January 1, 2006, and amended and restated the Plan effective November 1,
2006. The Plan is hereby amended and restated in its entirety, effective October 1, 2007; provided, however, that with respect to any individual who became a Participant (as defined in Section 8.1.12 below) in the Plan prior to
October 1, 2007, such amendment and restatement shall be effective as of October 1, 2008 with respect to any provision of the Plan that adversely affects the rights to which such Participant was entitled to under the Plan prior to
October 1, 2007. The Plan is intended to protect key executive employees of WellPoint and its subsidiaries and affiliates (collectively, the “Company”) against an involuntary loss of employment so as to attract and retain
such employees, and motivate them to enhance the value of the Company. The Plan is intended to be an unfunded welfare plan subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); or to the extent it is a
pension plan subject to ERISA, as an unfunded pension plan maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees. Words and phrases used with initial capitals in the
Plan and not otherwise defined in the Plan have the meanings defined for them in Article 8. 
 ARTICLE 2 
 ELIGIBILITY AND PARTICIPATION 
 2.1 Participation. 
 (a) Each Executive shall become a Participant (“Participant”) upon mutual
execution by the eligible Executive and the Company of an agreement (an “Employment Agreement”) substantially in the form of that attached as Exhibit A. Each such executed Employment Agreement shall form part of this Plan and
is incorporated into this Plan by this reference. As soon as practicable after the date that the individual becomes an Executive, the Committee shall deliver a copy of the Plan to the Executive, advise the Executive of his or her eligibility, and
offer him or her for a period of forty-five (45) days the opportunity to enter into an Employment Agreement substantially in the form of that attached as Exhibit A. If an Executive does not enter into an Employment Agreement within forty-five
(45) days of such advice the Executive shall have no further opportunity to become a Participant in the Plan unless the Chief Executive Officer of the Company in his or her sole discretion affords the Executive a new or extended opportunity to
become a Participant in the Plan. 

 (i) If an Executive who is advised of his or her eligibility for this
Plan is at that time entitled to severance benefits under the WellPoint Health Networks, Inc. Officer Change-in-Control Plan or the WellChoice Change of Control Retention Agreement (the “Prior Plan”), then the Prior Plan shall
remain operative until the expiration of the Prior Plan in accordance with its terms as currently in effect and the benefit sections of this Plan shall not become operative until after such time. Notwithstanding the preceding sentence,
Sections 3.6 through 3.10 of this Plan shall become operative immediately upon the Executive’s agreement to become a Participant pursuant to Section 2.1(a). 
 2.2 Termination of Participation. A Participant’s participation in the Plan shall automatically terminate, without notice to or consent of the Participant, upon the earliest to occur
of the following events: 
 (a) termination of the Participant’s employment with the Company for any reason (including
but not limited to death, disability, Transfer of Business or other disposition of the subsidiary of the Company which employs the Participant) that is not an Eligible Separation from Service (as defined in Section 3.1); or 
 (b) expiration of the Employment Agreement. 
 ARTICLE 3 
 SEVERANCE BENEFITS 
 3.1 Eligible Separation from Service. Each Participant shall be entitled to severance and other benefits under the Plan in the
amount set forth in Sections 3.2 and 3.3 below (“Severance Benefits”) if the Participant incurs an Eligible Separation from Service. Entitlement to Severance Benefits is subject to the Participant’s compliance with Sections 3.6
and 3.7 of the Plan and the other terms and conditions of this Plan, and subject to the execution and delivery of a valid and unrevoked Waiver and Release Agreement as required by Section 3.5 and to the other conditions set forth below. For
this purpose an “Eligible Separation from Service” is: 
 (a) a Separation from Service by reason of a
termination of the Participant’s employment by the Company for any reason other than death, disability, Cause, or Transfer of Business; 
 (b) a Separation from Service by reason of a termination of the Participant’s employment by the Participant for Good Reason; 
 (c) a Separation from Service during an Imminent Change in Control Period by reason of a termination of the Participant’s employment by the Company for any reason other than death,
disability, Cause, or Transfer of Business. 
 No Severance Benefits shall be payable in respect of a Separation from Service that is not an
Eligible Separation from Service. For avoidance of doubt, none of the following shall be an Eligible Separation from Service: (i) termination of the Participant’s employment upon death or disability, (ii) termination of the Participant’s
employment by the Company for Cause or upon Transfer of Business, or (iii) any voluntary resignation that does not constitute a termination of the Participant’s employment for Good Reason. No Severance Benefits shall be payable merely upon
termination of an Employment Agreement without a Separation from Service. 
  

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 3.2 Amount of Severance Pay. 
 (a) The amount of severance pay (“Severance Pay”) to which the Participant is entitled under the Plan shall be the
product of the amount described in (i) multiplied by the percentage described in (ii), with such product reduced by the amount described in (iii): 
 (i) if a Vice President, Senior Vice President, Executive Vice President or Group Vice President, the sum of the Participant’s Annual Salary and Annual Target Bonus or if an Other Key
Executive, Annual Salary; 
 (ii) the applicable percentage set forth below opposite the Participant’s
employment classification at the time of Separation from Service (disregarding any adverse change in employment classification during an Imminent Change in Control Period or after a Change in Control); 
 (iii) the sum of (A) severance or similar payments made pursuant to any Federal, state or local law, including but
not limited to payments under the Federal Worker Adjustment and Retraining Notification Act (WARN), and (B) any termination or severance payments under any other termination or severance plans, policies or programs of the Company or any of its
subsidiaries and affiliates that the Participant receives notwithstanding subsection (c) below. 
 (iv)
In the event the Participant’s Eligible Separation from Service occurs outside an Imminent Change in Control Period or outside the thirty-six month period following a Change in Control, the applicable percentage shall be the percentage set
forth in column (A) below and the applicable severance period (“Severance Period”) shall be the period set forth in column (B) below. In the event the Participant’s Eligible Separation from Service occurs within an
Imminent Change in Control Period, provided the contemplated Change in Control occurs within one year of the Participant’s Eligible Separation from Service, or within the thirty-six month period following a Change in Control, the applicable
percentage shall be the percentage set forth in column (C) below and the applicable Severance Period shall be the period set forth in column (D) below. 
  

									
	 	 	 (A)
	 	 (B)
	 	 (C)
	 	 (D)

	 Position
	 	 Percentage
 absent Change
 in Control
	 	 Severance
 Period absent Change
 in Control
	 	 Percentage –
 Change in
 Control
	 	 Severance Period –
 Change in Control

	 Other Key Executive
	 	100%	 	One year	 	100%	 	 One year

	 Vice President
	 	100%	 	One year	 	100%	 	 One year

	 Senior Vice President
	 	150%	 	 One and one-
 half years
	 	250%	 	 Two and one-half years

	 Executive Vice President or
 Group Vice President
	 	200%	 	Two years	 	300%	 	 Three years

  

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 (b) There shall be no duplication of severance benefits in any manner. Severance Pay
under this Plan shall be in lieu of any termination or severance payments to which the Participant may be entitled under any other termination or severance plans, policies or programs of the Company or any of its subsidiaries and affiliates. No
Participant shall be entitled to Severance Pay hereunder for more than one position with the Company. 
 (c) A Participant
shall not be obligated to secure new employment, but each Participant shall report promptly to the Company any actual employment obtained during the Severance Period. Severance Pay under the Plan shall not be subject to mitigation except as provided
(i) in Section 3.2(a) and (c) hereof for other severance pay from the Company and (ii) in Section 3.3 for determining continuing eligibility for health and life benefits coverage. Severance Pay shall be subject to
Section 3.7. 
 (d) Severance Periods shall be measured from the date of the Eligible Separation from Service.

 3.3 Other Benefits. 
 (a) A Participant entitled to Severance Pay pursuant to Section 3.2 shall be entitled during the applicable Severance Period to receive the following additional benefits: 
 (i) continued participation for him or her (and for his or her eligible dependents) in the Company’s health benefit
plan on the same basis (excluding payment of contributions) as apply to active employees from time to time; provided that the Participant and his or her eligible dependents assume the cost, on an after-tax basis, for such continued coverage, and
further provided that this coverage shall terminate prior to the end of the Severance Period when the Participant (or his or her eligible dependents, as applicable) becomes entitled to health benefit plan coverage (whether or not comparable to plans
of the Company) from any successor employer; and 
 (ii) on or about January 31 of the year following the
year in which the Separation from Service occurs and continuing on or about each January 31 until the year following the year in which the Participant’s health benefit plan coverage continues pursuant to Section 3.3(a)(i), the Company
will make a payment to the Participant equal to the amount the Participant paid during the immediately preceding calendar year for health benefit plan continuation coverage described in Section 3.3(a)(i) that exceeds the amount that the
Participant would have paid if the Participant paid for such continued health benefit plan coverage on the same basis as applicable to active employees, provided that each such cash payment by the Company pursuant to this Section 3.3(a)(ii)
shall be considered a separate payment and not one of a series of payments for purposes of Section 409A; and 
 (iii) continued participation for him or her in the Company’s life insurance benefit plan on the same basis (including payment of contributions) as apply to active employees from time to time; provided that this coverage shall
terminate prior to the end of the Severance Period when the Participant (or his or her eligible dependents, as applicable) becomes entitled to health and life insurance benefit plan coverage (whether or not comparable to plans of the Company) from
any successor employer; and 
  

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 (iv) if the cash credits portion of the Directed Executive Compensation
program is available to the active employees at the Participant’s Executive level, the continuation of Directed Executive Compensation monthly cash payments, provided that each such cash payment by the Company pursuant to this
Section 3.3(a)(iv) shall be considered a separate payment and not one of a series of payments for purposes of Section 409A; and 
 (v) if financial planning services are available to the active employees at the Participant’s Executive level, the Company shall reimburse the Participant’s expenses for financial planning incurred during
the Severance Period. Such reimbursement shall be made no later than the last day of the calendar year following the calendar year in which the Participant incurs the financial planning expense. In no event will the amount of expenses so reimbursed
by the Company in one year affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. Each reimbursement of the Participant’s expenses for financial planning pursuant to this
Section 3.3(a)(v) shall be considered a separate payment and not one of a series of payments for purposes of Section 409A. 
 Neither Executive nor his dependents shall be eligible for continued participation in any disability income plan, travel accident insurance plan or tax-qualified retirement plan. Nothing herein shall be deemed to restrict the right of the
Company to amend or terminate any plan in a manner generally applicable to active employees. 
 (b) The period of
continuation coverage to which the Participant is entitled under Section 601 et seq. of ERISA (the “COBRA Continuation Period”) shall begin after the Severance Period. 
 (c) Eligible Participants shall be entitled to outplacement counseling with an outplacement firm of the Company’s selection in a
form and manner determined by the Company. 
 3.4 Payment.
Severance Pay (including payments pursuant to Section 4.5) and payments provided under Section 3.3(a)(ii), if any, shall commence to be paid as soon as practicable after the 45th day after the Eligible Separation from Service and shall be paid in substantially equal monthly (or more frequent periodic installments corresponding to the Company’s normal payroll practices for Executive
employees) payments over the Severance Period. Each such payment shall be considered a separate payment and not part of a series of installments. Notwithstanding the foregoing, in the event Severance Pay or any other payment under this Plan
is included in the phrase “deferral of compensation” (as such phrase is defined for purposes of Section 409A of the Code, such payment shall instead commence on the first day of the seventh month following the Executive’s
Separation from Service. In the event payment is delayed under the preceding sentence, any payments that would have been paid prior to the deferred payment shall be paid in a single lump sum the date payments commence, together with interest thereon
from the date that they would have been paid absent such delay through the date of payment at 120% of the applicable federal rate, determined under Section 1274(d) of the Code (the “AFR”). 
  

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 3.5 Waiver and Release. In order to receive benefits under the Plan, a Participant
must execute and deliver to the Company a valid Waiver and Release Agreement within thirty (30) days of his or her date of Separation from Service, in a form tendered by the Company, which shall be substantially in the form of the Waiver and
Release Agreement attached hereto as Exhibit B, with any changes thereto approved by WellPoint’s counsel prior to execution. No benefits shall be paid under the Plan until the Participant has executed his or her Waiver and Release Agreement and
the period within which a Participant may revoke his or her Waiver and Release Agreement has expired without revocation. A Participant may revoke his or her signed Waiver and Release Agreement within seven (7) days (or such other period
provided by law) after his or her signing the Waiver and Release Agreement. Any such revocation must be made in writing and must be received by the Company within such seven (7) day (or such other) period. A Participant who does not submit a
signed Waiver and Release Agreement to the Company within thirty (30) days of his or her Separation from Service shall not be eligible to receive any Severance Benefits under the Plan. A Participant who timely revokes his or her Waiver and
Release Agreement shall not be eligible to receive any Severance Benefits under the Plan. 
 3.6 Restrictive
Covenants. As a condition of participation in this Plan each Participant agrees as follows: 
 (a) Confidentiality.

 (i) The Participant recognizes that the Company derives substantial economic value from information created
and used in its business which is not generally known by the public, including, but not limited to, plans, designs, concepts, computer programs, formulae, and equations; product fulfillment and supplier information; customer and supplier lists, and
confidential business practices of the Company, its affiliates and any of its customers, vendors, business partners or suppliers; profit margins and the prices and discounts the Company obtains or has obtained or at which it sells or has sold or
plans to sell its products or services (except for public pricing lists); manufacturing, assembling, labor and sales plans and costs; business and marketing plans, ideas, or strategies; confidential financial performance and projections; employee
compensation; employee staffing and recruiting plans and employee personal information; and other confidential concepts and ideas related to the Company’s business (collectively, “Confidential Information”). The Participant expressly
acknowledges and agrees that by virtue of his or her employment with the Company, the Participant will have access and will use in the course of the Participant’s duties certain Confidential Information and that Confidential Information
constitutes trade secrets and confidential and proprietary business information of the Company, all of which is the exclusive property of the Company. For purposes of this Agreement, Confidential Information includes the foregoing and other
information protected under the Indiana Uniform Trade Secrets Act (the “Act”), or to any comparable protection afforded by applicable law, but does not include information that the Participant establishes by clear and convincing evidence
is or may become known to the Participant or to the public from sources outside the Company and through means other than a breach of this Agreement. 
  

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 (ii) The Participant agrees that the Participant will not for himself or
herself or for any other person or entity, directly or indirectly, without the prior written consent of the Company, while employed by the Company and thereafter: (i) use Confidential Information for the benefit of any person or entity other
than the Company or its affiliates; (ii) remove, copy, duplicate or otherwise reproduce any document or tangible item embodying or pertaining to any of the Confidential Information, except as required to perform the Participant’s duties
for the Company or its affiliates; or (iii) while employed and thereafter, publish, release, disclose or deliver or otherwise make available to any third party any Confidential Information by any communication, including oral, documentary,
electronic or magnetic information transmittal device or media. Upon termination of employment, the Participant shall return all Confidential Information and all other property of the Company. This obligation of non-disclosure and non-use of
information shall continue to exist for so long as such information remains Confidential Information. 
 (b) Disclosure
and Assignment of Inventions and Improvements. Without prejudice to any other duties express or implied imposed on the Participant hereunder it shall be part of the Participant’s normal duties at all times to consider in what manner and by
what methods or devices the products, services, processes, equipment or systems of the Company and any customer or vendor of the Company might be improved and promptly to give to the Chief Executive Officer of the Company or his or her designee full
details of any improvement, invention, research, development, discovery, design, code, model, suggestion or innovation (collectively called “Work Product”), which the Participant (alone or with others) may make, discover, create or
conceive in the course of the Participant’s employment. The Participant acknowledges that the Work Product is the property of the Company. To the extent that any of the Work Product is capable of protection by copyright, the Participant
acknowledges that it is created within the scope of the Participant’s employment and is a work made for hire. To the extent that any such material may not be a work made for hire, the Participant hereby assigns to the Company all rights in such
material. To the extent that any of the Work Product is an invention, discovery, process or other potentially patentable subject matter (the “Inventions”), the Participant hereby assigns to the Company all right, title, and interest in and
to all Inventions. The Company acknowledges that the assignment in the preceding sentence does not apply to an Invention that the Participant develops entirely on his or her own time without using the Company’s equipment, supplies, facilities
or trade secret information, except for those Inventions that either: 
  

	 	 (1)
	 relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or
development of the Company, or 

  

	 	 (2)
	 result from any work performed by the Participant for the Company. 

  

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 Execution of the Employment Agreement constitutes the Participant’s acknowledgment
of receipt of written notification of this Section and of notice of the general exception to assignments of Inventions provided under the Uniform Employee Patents Act, in the form adopted by the state having jurisdiction over this Plan or provision,
or any comparable applicable law. 
 (c) Non-Competition. During the Employment Period and any period in which the
Participant is employed by the Company during or after the Employment Period, and during a period of time after the Participant’s termination of employment (the “Restriction Period”) which is eighteen (18) months for
Executive Vice Presidents and Group Vice Presidents, fifteen (15) months for Senior Vice President, and twelve (12) months for all other Participants, the Participant will not, without prior written consent of the Company, directly or
indirectly seek or obtain a Competitive Position in a Restricted Territory and perform a Restricted Activity with a Competitor, as those terms are defined herein. 
 (i) Competitive Position means any employment or performance of services with a Competitor (A) in which the
Participant has executive level duties for such Competitor, or (B) in which the Participant will use any Confidential Information of the Company. 
 (ii) Restricted Territory means any geographic area in which the Company does business and in which the Participant had responsibility for, or Confidential Information about, such business,
within the thirty-six (36) months prior to the Participant’s termination of employment from the Company. 
 (iii) Restricted Activity means any activity for which the Participant had responsibility for the Company within the thirty-six (36) months prior to the termination of the Participant’s employment from the Company or about which
the Participant had Confidential Information. 
 (iv) Competitor means any entity or individual (other than
the Company or its affiliates) engaged in management of network-based managed care plans and programs, or the performance of managed care services, health insurance, long term care insurance, dental, life or disability insurance, behavioral health,
vision, flexible spending accounts and COBRA administration or other products or services substantially the same or similar to those offered by the Company while the Participant was employed, or other products or services offered by the Company
within twelve (12) months after the termination of Participant’s employment if the Participant had responsibility for, or Confidential Information about, such other products or services while the Participant was employed by the Company.

 (d) Non-Solicitation of Customers. During the Employment Period and any period in which the Participant is employed
by the Company during or after the Employment Period, and during the Restriction Period after the Participant’s termination of employment, the Participant will not, either individually or as an employee, partner, consultant, independent
contractor, owner, agent, or in any other capacity, directly or indirectly, for a Competitor of the Company as defined in subsection (c) above: (i) solicit business from any client or account of the Company 

  

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or any of its affiliates with which the Participant had contact, participated in the contact, or responsibility for, or about which the Participant had
knowledge of Confidential Information by reason of the Participant’s employment with the Company, (ii) solicit business from any client or account which was pursued by the Company or any of its affiliates and with which the Participant had
contact, or responsibility for, or about which the Participant had knowledge of Confidential Information by reason of the Participant’s employment with the Company, within the twelve (12) month period prior to termination of employment.
For purposes of this provision, an individual policyholder in a plan maintained by the Company or by a client or account of the Company under which individual policies are issued, or a certificate holder in such plan under which group policies are
issued, shall not be considered a client or account subject to this restriction solely by reason of being such a policyholder or certificate holder. 
 (e) Non-Solicitation of Employees. During the Employment Period and any period in which the Participant is employed by the Company during or after the Employment Period, and during the Restriction Period after
the Participant’s termination of employment as set forth on Schedule A to the Employment Agreement, the Participant will not, either individually or as an employee, partner, independent contractor, owner, agent, or in any other capacity,
directly or indirectly solicit, hire, attempt to solicit or hire, or participate in any attempt to solicit or hire, for any non-Company affiliated entity, any person who on or during the six (6) months immediately preceding the date of such
solicitation or hire is or was an officer or employee of the Company, or whom the Participant was involved in recruiting while the Participant was employed by the Company. 
 (f) Non-Disparagement. The Participant agrees that he or she will not, nor will he or she cause or assist any other person to, make any statement to a third party or take any action which
is intended to or would reasonably have the effect of disparaging or harming the Company or the business reputation of the Company’s directors, employees, officers and managers. 
 3.7 Return of Consideration. 
 (a) If at any time a Participant breaches any provision of Section 3.6 or Section 3.10, then: (i) the Company shall cease to provide any further Severance Pay or other benefits under Section 3.2 or
Section 3.3 and the Participant shall repay to the Company all Severance Pay and other benefits previously received under Section 3.2 or Section 3.3; (ii) all unexercised Company stock options under any Designated Plan (defined
below) whether or not otherwise vested shall cease to be exercisable and shall immediately terminate; (iii) the Participant shall forfeit any outstanding restricted stock or other outstanding equity award made under any Designated Plan and not
otherwise vested on the date of breach; and (iv) the Participant shall pay to the Company (A) for each share of common stock of the Company (“Common Share”) acquired on exercise of an option under a Designated Plan within
the 24 months prior to such breach, the excess of the fair market value of a Common Share on the date of exercise over the exercise price, and (B) for each share of restricted stock that became vested under any Designated Plan within the 24
months prior to such breach, the fair market value (on the date of vesting) of a Common Share. Any amount to be repaid pursuant to this Section 3.7 shall be held by the Participant in constructive trust for the benefit of the Company and
shall, upon written notice from the Company, within 10 days of such notice, be paid by the Participant to the Company with interest from the date such Common Share was acquired or the share of restricted stock became vested, 

  

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as the case may be, to the date of payment, at 120% of the AFR. Any amount described in clauses (i), (ii) and (iii) that the Participant forfeits
as a result of a breach of the provisions of Sections 3.6 or 3.10 shall not reduce any money damages that would be payable to the Company as compensation for such breach. 
 (b) The amount to be repaid pursuant to this Section 3.7 shall be determined on a gross basis, without reduction for any taxes incurred, as of the date of the realization event, and without
regard to any subsequent change in the fair market value of a Common Share. The Company shall have the right to offset such amount against any amounts otherwise owed to the Participant by the Company (whether as wages, vacation pay, or pursuant to
any benefit plan or other compensatory arrangement other than any amount pursuant to any nonqualified deferred compensation plan under Section 409A of the Code). 
 (c) For purposes of this Section 3.7, a “Designated Plan” is each annual bonus and incentive plan, stock option, restricted stock, or other equity compensation or long-term
incentive compensation plan, deferred compensation plan, or supplemental retirement plan, listed on Exhibit C. 
 (d) The
provisions of this Section 3.7 shall apply to awards described in clauses (i), (ii), (iii), and (iv) of subsection (a) earned or made after the date the Executive becomes a Participant in this Plan and executes an Employment
Agreement, and to awards earned or made prior thereto which by their terms are subject to cessation and recoupment under terms similar to those of this Section 3.7 
 3.8 Equitable Relief and Other Remedies. As a condition of participation in this Plan: 
 (a) The Participant acknowledges that each of the provisions of Section 3.6 and 3.7 of the Plan are reasonable and necessary to preserve the legitimate business interests of the Company, its present and potential
business activities and the economic benefits derived therefrom; that they will not prevent him or her from earning a livelihood in the Participant’s chosen business and are not an undue restraint on the trade of the Participant, or any of the
public interests which may be involved. 
 (b) The Participant agrees that beyond the amounts otherwise to be provided under
this Plan and the Employment Agreement, the Company will be damaged by a violation of the terms of this Plan and the amount of such damage may be difficult to measure. The Participant agrees that if the Participant commits or threatens to commit a
breach of any of the covenants and agreements contained in Sections 3.6 or 3.10 to the extent permitted by applicable law, then the Company shall have the right to seek and obtain all appropriate injunctive and other equitable remedies, without
posting bond therefor, except as required by law, in addition to any other rights and remedies that may be available at law or under this Plan, it being acknowledged and agreed that any such breach would cause irreparable injury to the Company and
that money damages would not provide an adequate remedy. Further, if the Participant violates Section 3.6 hereof the Participant agrees that the period of violation shall be added to the period in which the Participant’s activities are
restricted. 
  

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 (c) Notwithstanding the foregoing, the Company will not seek injunctive relief to prevent
a Participant residing in California from engaging in post termination competition in California under Section 3.6(c) or (d) of this Plan, provided that the Company may seek and obtain relief to enforce Section 3.7 of this Plan with
respect to such Participants. 
 (d) The parties agree that the covenants contained herein are severable. If an arbitrator or
court shall hold that the duration, scope, area or activity restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, area or activity restrictions reasonable and enforceable
under such circumstances shall be substituted for the stated duration, scope, area or activity restrictions to the maximum extent permitted by law. The parties further agree that the Company’s rights under Section 3.7 should be enforced to
the fullest extent permitted by law irrespective of whether the Company seeks equitable relief in addition to relief provided therein or if the arbitrator or court deems equitable relief to be inappropriate. 
 3.9 Survival of Provisions. The obligations contained in Sections 3.6, 3.7, 3.8 and Section 3.10 below shall survive the
cessation of the Employment Period (as defined in the Employment Agreement) and the Participant’s employment with the Company and shall be fully enforceable thereafter. 
 3.10 Cooperation. Upon the receipt of reasonable notice from the Company (including from outside counsel to the Company), the Participant agrees that while employed by the Company and for
two years (or, if longer, for so long as any claim referred to in this Section remains pending) after the termination of Participant’s employment for any reason, the Participant will respond and provide information with regard to matters in
which the Participant has knowledge as a result of the Participant’s employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of any claims that may be
made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of any claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of the
Participant’s employment with the Company (or any predecessor); provided, that with respect to periods after the termination of the Participant’s employment, the Company shall reimburse the Participant for any out-of-pocket expenses
incurred in providing such assistance [and if the Participant is required to provide more than ten (10) hours of assistance per week after his termination of employment then the Company shall pay the Participant a reasonable amount of money for
his services at a rate agreed to between the Company and the Participant; and] provided further that after the Participant’s termination of employment with the Company such assistance shall not unreasonably interfere with the Participant’s
business or personal obligations. The Participant agrees to promptly inform the Company if the Participant becomes aware of any lawsuits involving such claims that may be filed or threatened against the Company or its affiliates. The Participant
also agrees to promptly inform the Company (to the extent the Participant is legally permitted to do so) if the Participant is asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit
or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not do so unless legally required. 
  

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 ARTICLE 4 
 ADDITIONAL CHANGE IN CONTROL BENEFITS 
 4.1 Equity Vesting Upon Change in
Control. 
 (a) If the conditions of Section 4.1(b) are satisfied, then as of the date of the Change in Control (or
as soon thereafter as permitted by Section 4.1(c)), all Options and SARs of a Participant shall become fully and immediately exercisable, all Restricted Stock shall become fully vested and nonforfeitable and forthwith delivered to a Participant
if not previously delivered, and there shall be paid out in cash to the Participant within 30 days following the effective date of the Change in Control the value of the Performance Shares to which the Participant would have been entitled if
performance achieved 100% of the target performance goals established for such Performance Shares. 
 (b) Both of the
following conditions must be satisfied in order for Section 4.1(a) to apply: 
 (i) A Change in Control
must occur, and 
 (ii) on or prior to such Change in Control either (A) WellPoint has not confirmed the
continuation of the following awards without economic change, or (B) the successor to WellPoint in such Change in Control has not on or prior to such Change in Control assumed and continued the following awards without economic change:

  

	 	 (1)
	 any and all outstanding options (“Options”) to purchase Common Shares (or stock that has been converted into Common Shares),

  

	 	 (2)
	 any and all stock appreciation rights (“SARs”) based on appreciation in the value of Common Shares, 

  

	 	 (3)
	 any and all restricted Common Shares (or deferred rights thereto), regardless whether such restrictions are scheduled to lapse based on service or on performance
or both (“Restricted Stock”), and 

  

	 	 (4)
	 any outstanding awards providing for the payment of a variable number of Common Shares dependent on the achievement of performance goals, or of an amount based
on the fair market value of such shares or the appreciation thereof (“Performance Shares”), in each case awarded to a Participant under any Plan, contract or arrangement for Options, SARs, Restricted Stock or Performance Shares.

 (c) Notwithstanding the foregoing provisions of this Section 4.1, if the Change in Control is not a
Qualified Change in Control and such awards are deferred compensation subject to additional taxes or penalties under Section 409A of the Code if payment would commence immediately upon such Change in Control, payment of such awards shall not
occur prior to the earliest to occur of: (a) the Participant’s Separation from Service; (b) the Participant’s “disability” (as defined in Treasury Regulation Section 1.409A-3(i)(4)); (c) the
Participant’s 

  

 12 

 
death; (d) the occurrence of an “unforeseeable emergency” (as defined in Treasury Regulation Section 1.409A-3(i)(3)); and (e) the
specific date on which the awards could otherwise be exercised or paid in accordance with the underlying award agreement. In the event payment is deferred under the preceding sentence, any installments that would have been paid prior to the deferred
payment or commencement date but for Section 409A shall be paid in a single lump sum on such earliest payment or commencement date, together with interest from the date that they would have been paid absent such delay through the date of
payment at 120% of the AFR. 
 4.2 Guaranteed Annual Bonus for the Year of a Change in Control. This Section 4.2
does not apply to Participants who are classified as Other Key Executives. If a Change in Control occurs, each Participant’s annual bonus for the fiscal year in which the Change in Control occurs shall be in an amount (“Guaranteed
Amount”) equal to the greater of (i) the Participant’s Target Bonus for such fiscal year, or (ii) the bonus that is determined in the ordinary course under each annual bonus or short-term incentive plan (as determined by the
Committee in its sole discretion) (a “Bonus Plan”) covering the Participant for the fiscal year in which the Change in Control occurs. The Guaranteed Amount shall be paid in a lump sum at the normal time for the payment of a bonus
under the applicable Bonus Plan. 
 4.3 Equity Vesting Upon Termination Without Cause or for Good Reason. This
Section 4.3 does not apply to Participants who are classified as Other Key Executives. 
 (a) If the conditions of
Section 4.3(b) are satisfied, then as of the date of the Participant’s Eligible Separation from Service (i) all Pre-Change (as defined below) Options and Pre-Change SARs of such Participant shall become fully and immediately
exercisable, (ii) all Pre-Change Restricted Stock shall become fully vested and nonforfeitable and forthwith delivered to the Participant if not previously delivered, and (iii) there shall be paid out in cash to the Participant within 45
days following the Separation from Service the value of the Pre-Change Performance Shares to which the Participant would have been entitled if performance achieved 100% of the target performance goals established for such Performance Shares.

 (b) Both of the following conditions must be satisfied in order for Section 4.3(a) to apply: 
 (i) the Participant must have had a Separation from Service within the thirty-six (36) month period following a
Change in Control by reason of (A) a termination of the Participant’s employment by the Company other than for Cause, death or disability, or (B) a termination of the Participant’s employment by the Participant for Good Reason;
and 
 (ii) the Participant must have executed and delivered a valid Waiver and Release Agreement as required
by Section 3.5, and the period for revoking such Waiver and Release Agreement must have elapsed. 
 (c) For purposes of
this Section 4.3 a “Pre-Change” Option, SAR, Restricted Stock or Performance Shares means (i) an award of an Option, SAR, Restricted Stock or Performance Shares which was outstanding on both the date of the Change in
Control and the date of the Eligible Separation from Service, and (ii) an award of an Option, SAR, Restricted Stock or Performance Shares assumed and continued by a successor to WellPoint in such Change in Control without economic change.

  

 13 

 4.4 Pro-Rata Bonus Payment Upon Termination Without Cause or for Good Reason. This
Section 4.4 does not apply to Participants who are classified as Other Key Executives. 
 (a) If the conditions of
Section 4.4(b) are satisfied, then for the fiscal year in which the Participant’s Eligible Separation from Service occurs, the Participant shall be entitled to a pro-rata bonus (the “Pro-Rata Bonus”) equal to the product of the
applicable amount described in (i), multiplied by the fraction determined in (ii): 
 (i) the applicable
amount is the Guaranteed Amount described in Section 4.2 for the fiscal year in which the Eligible Separation from Service occurs, and 
 (ii) a fraction, the numerator of which is the number of days in such fiscal year before the date of the Eligible Separation from Service, and the denominator of which is the total number of days in such fiscal year.

 The Pro-Rata Bonus shall be paid in a lump sum at the normal time for payment of a bonus under the applicable Bonus Plan.

 (b) Both of the following conditions must be satisfied in order for Section 4.3(a) to apply: 
 (i) the Participant must have had a Eligible Separation from Service within the thirty-six (36) month period
following a Change in Control by reason of (A) a termination of the Participant’s employment by the Company other than for Cause, death or disability, or (B) a termination of the Participant’s employment by the Participant for
Good Reason; and 
 (ii) the Participant must have executed and delivered a valid and Waiver and Release
Agreement as required by Section 3.5, and the period for revoking such Waiver and Release Agreement must have elapsed. 
 4.5 Qualified and Supplemental Pension and 401(k) Match Contribution. This Section 4.5 does not apply to Participants who are classified as Other Key Executives. 
 (a) Severance Pay pursuant to Sections 3.2 and 3.4 shall be increased by an amount equal to the value of WellPoint ongoing contributions
to the Participant’s qualified and supplemental cash balance pension accounts, and qualified and supplemental 401(k) accounts if Severance Pay had been considered covered earnings in those programs. This amount, is equal to the product of:

 (i) Severance Pay multiplied by 
 (ii) a fraction, the numerator of which is (a) the Participant’s cash balance pension contribution percentage,
if any, plus (b) the Participant’s maximum WellPoint 401(k) matching percentage, and the denominator of which is 100%. 
  

 14 

 4.6 Gross-up for Certain Taxes. 
 (a) If it is determined that any benefit received or deemed received by the Participant from the Company pursuant to this Plan or
otherwise (collectively, “Payments”) is or will become subject to any excise tax under Section 4999 of the Code or any similar tax payable under any United States federal, state, local or other law, but not including any tax
payable under Section 409A of the Code (such excise tax and all such similar taxes collectively, “Excise Taxes”), then except as provided in subsection (b) the Participant shall receive in respect of such Payments
whichever of (i) or (ii) below would result in the Participant retaining, after application of all applicable income, Excise, and other taxes (“All Applicable Taxes”), the greater after-tax amount (the “After-Tax
Benefit”); where: 
 (i) is the Payments; and 
 (ii) is a reduced amount of Payments sufficient to avoid the imposition of Excise Taxes. 
 (b) Notwithstanding subsection (a), if (i) at any time during the Imminent Change in Control Period or after the date of the Change
in Control, the Participant is classified as an Executive Vice President, Group Vice President or Senior Vice President, and (ii) the reduced amount of Payments sufficient to avoid the imposition of Excise Taxes is 10% of Annual Salary or
greater, then there shall be no reduction and the Company shall pay the Participant as soon as practicable after the Change in Control an amount that, net of all taxes thereon, fully reimburses or “grosses up” the employee for the amount
of such excise tax. This amount, (the “Gross-up Payment”), is equal to the product of: 
 (i)
the amount of such Excise Taxes multiplied by 
 (ii) a fraction (the “Gross-Up Multiple”), the
numerator of which is one (1.0), and the denominator of which is one (1.0) minus the sum, expressed as a decimal fraction, of the effective marginal rates of All Applicable Taxes (the “Aggregate Effective Tax Rate”) applicable
to the Gross-up Payment. If different rates of tax are applicable to various portions of a Gross-up Payment, the weighted average of such rates shall be used. 
 The Gross-Up Payment shall be made no later than the end of the Executive’s fiscal year following the fiscal year in which the Executive remitted the taxes giving rise to the Gross-Up Payment. The Gross-up
Payment is intended to compensate the Participant who is an Executive Vice President or Senior Vice President for the Excise Taxes and any Federal, state, local or foreign income or excise taxes payable by the Participant with respect to the
Gross-up Payment. For all purposes of this Section 4.5, the Participant shall be deemed to be subject to the highest effective marginal rates of federal, state, local or other income or other taxes. 
 ARTICLE 5 
 CLAIMS 
 5.1 Good Reason and Competition Determinations. Any Participant believing he or she has a right to resign for Good Reason may
apply to the Committee for written confirmation 

  

 15 

 
that an event constituting Good Reason has occurred with respect to such Participant. The Committee shall confirm or deny in writing that Good Reason exists
within 21 days following receipt of any such application. Any Participant may apply to the Committee for written confirmation that specified activities proposed to be undertaken by the Participant will not violate Section 3.6 of the Plan. The
Committee shall confirm or deny in writing that specified activities proposed to be undertaken by the Participant will not violate Section 3.6 of the Plan within 21 days of receipt of any such application unless the Committee determines that it
has insufficient facts on which to make that determination, in which event the Committee shall advise the Participant of information necessary for the Committee to make such determination. Any confirmation of Good Reason by the Committee shall be
binding on the Company. Any confirmation that specified activities to be undertaken by the Participant will not violate Section 3.6 of the Plan shall be binding on the Company provided that all material facts have been disclosed to the
Committee and there is no change in the material facts. 
 5.2 Claims Procedure. If any Participant has (a) a
claim for compensation or benefits which are not being paid under the Plan or the Employment Agreement, (b) another claim for benefits under the Plan or Employment Agreement, (c) a claim for clarification of his or her rights under the
Plan (to the extent not provided for in Section 5.1) or Employment Agreement, or (d) a claim for breach by the Company of the Employment Agreement, then the Participant (or his or her designee) (a “Claimant”) may file with
the Committee a written claim setting forth the amount and nature of the claim, supporting facts, and the Claimant’s address. A claim shall be filed within six (6) months of (i) the date on which the claim first arises or (ii) if
later, the earliest date on which the Participant knows or should know of the facts giving rise to a claim. The Committee shall notify each Claimant of its decision in writing by registered or certified mail within 90 days after its receipt of a
claim, unless otherwise agreed by the Claimant. In special circumstances the Committee may extend for a further 90 days the deadline for its decision, provided the Committee notifies the Claimant of the need for the extension within 90 days after
its receipt of a claim. If a claim is denied, the written notice of denial shall set forth the reasons for such denial, refer to pertinent provisions of the Plan or Employment Agreement on which the denial is based, describe any additional material
or information necessary for the Claimant to realize the claim, and explain the claim review procedure under the Plan. 
 5.3
Claims Review Procedure. A Claimant whose claim has been denied or such Claimant’s duly authorized representative may file, within 60 days after notice of such denial is received by the Claimant, a written request for review of such
claim by the Committee. If a request is so filed, the Committee shall review the claim and notify the Claimant in writing of its decision within 60 days after receipt of such request, unless otherwise agreed by the Claimant. In special
circumstances, the Committee may extend for up to 60 additional days the deadline for its decision, provided the Committee notifies the Claimant of the need for the extension within 60 days after its receipt of the request for review. The notice of
the final decision of the Committee shall include the reasons for its decision and specific references to the Plan or Employment Agreement on which the decision is based. The decision of the Committee shall be final and binding on all parties in
accordance with but subject to Section 5.4(a) below. 
  

 16 

 5.4 Arbitration. 
 (a) In the event of any dispute arising out of or relating to this Plan (including the Employment Agreement) the determinations of fact
and the construction of this Plan (including the Employment Agreement) or any other determination by the Committee in its sole and absolute discretion pursuant to Section 6.3 of the Plan shall be final and binding on all persons and may not be
overturned in any arbitration or any other proceeding unless the party challenging the Committee’s determination can demonstrate by clear and convincing evidence that a determination of fact is clearly erroneous or any other determination by
the Committee is arbitrary and capricious; provided, however, that if a claim relates to benefits due following a Change in Control, the Committee’s determination shall not be final and binding if the party challenging the Committee’s
determination establishes by a preponderance of the evidence that he or she is entitled to the benefits in dispute. 
 (b)
Any dispute arising out of or relating to this Plan (including the Employment Agreement) shall first be presented to the Committee pursuant to the claims procedure set forth in Section 5.2 of the Plan and the claims review procedure of
Section 5.3 of the Plan within the times therein provided. In the event of any failure timely to use and exhaust such claims procedure and the claims review procedures, the decision of the Committee on any matter respecting the Plan (including
the Employment Agreement) shall be final and binding and may not be challenged by further arbitration, or any other proceeding. 
 (c) Any dispute arising out of or relating to this Plan (including the Employment Agreement), including the breach, termination or validity of the Employment Agreement, which has not been resolved as provided in subsection (b) of this
Section as provided herein shall be finally resolved by arbitration in accordance with the CPR Rules for Non-Administered Arbitration then currently in effect, by a sole arbitrator. The Company shall be initially responsible for the payment of any
filing fee and advance in costs required by CPR or the arbitrator, provided, however, if the Participant initiates the claim, the Participant will contribute an amount not to exceed $250.00 for these purposes. During the arbitration, each party
shall pay for its own costs and attorneys fees, if any. Attorneys fees and costs shall be awarded by the arbitrator to the prevailing party pursuant to subsection (h) below. 
 (d) The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16 and judgment upon the award rendered by
the arbitrator may be entered by any court having jurisdiction thereof. The arbitrator shall not have the right to award speculative damages or punitive damages to either party except as expressly permitted by statute (notwithstanding this provision
by which both parties hereto waive the right to such damages) and shall not have the power to amend this Agreement. The arbitrator shall be required to follow applicable law. The place of arbitration shall be Indianapolis, Indiana. Any application
to enforce or set aside the arbitration award shall be filed in a state or federal court located in Indianapolis, Indiana. 
 (e) Any demand for arbitration must be made or any other proceeding filed within six (6) months after the date of the Committee’s decision on review pursuant to Section 5.3. 
 (f) Notwithstanding the foregoing provisions of this Section, an action to enforce the Plan (including the Employment Agreement) shall be
filed within eighteen (18) months after the 

  

 17 

 
party seeking relief had actual or constructive knowledge of the alleged violation of the Plan (including the Employment Agreement) in question or any party
shall be able to seek immediate, temporary, or preliminary injunctive or equitable relief from a court of law or equity if, in its judgment, such relief is necessary to avoid irreparable damage. To the extent that any party wishes to seek such
relief from a court, the parties agree to the following with respect to the location of such actions. Such actions brought by the Participant shall be brought in a state or federal court located in Indianapolis, Indiana. Such actions brought by the
Company shall be brought in a state or federal court located in Indianapolis, Indiana; the Participant’s state of residency; or any other form in which the Participant is subject to personal jurisdiction. The Participant specifically consents
to personal jurisdiction in the State of Indiana for such purposes. 
 (g) IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES
NOT APPLICABLE, THEN EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER MATTER INVOLVING THE PARTIES HERETO. 
 (h) In the event of any contest arising under or in connection
with this Plan, the arbitrator or court, as applicable, shall award the prevailing party attorneys’ fees and costs to the extent permitted by applicable law. 
 ARTICLE 6 
 ADMINISTRATION 
 6.1 Committee. The Chief Executive Officer of WellPoint (“CEO”) shall appoint not less than three (3) members of a committee, to serve at the pleasure of the CEO to
administer this Plan. Members of the Committee may but need not be employees of the Company and may but need not be Participants in the Plan, but a member of the Committee who is a Participant shall not vote or act upon any matter which relates
solely to such member as a Participant. All decisions of the Committee shall be by a vote or written evidence of intention of the majority of its members and all decisions of the Committee shall be final and binding except as provided in
Section 5.4(a). 
 6.2 Committee Membership. Any member of the Committee may resign at any time by giving thirty
days’ advance written notice to the CEO and to the remaining members (if any) of the Committee. A member of the Committee who at the time of his or her appointment to the Committee was an employee or director of the Company, and who for any
reason becomes neither an employee nor director of the Company, shall cease to be a member of the Committee effective on the date he or she is neither an employee nor a director of the Company unless the CEO affirmatively continues his or her
appointment as a member of the Committee. If there is any vacancy in the membership of the Committee, the remaining members shall constitute the full Committee. The CEO may fill any vacancy in the membership of the Committee, or enlarge the
Committee, by giving written notice of appointment to the person so appointed and to the other members (if any) of the Committee, effective as stated in such written notice. However, the CEO shall not be required to fill any vacancy in the
membership of the Committee if there remain at least three members of the Committee. Any notice required by this Section may be waived by the person entitled thereto. 
  

 18 

 6.3 Duties. The Committee shall have the power and duty in its sole and absolute
discretion to do all things necessary or convenient to effect the intent and purposes of the Plan, whether or not such powers and duties are specifically set forth herein, and, by way of amplification and not limitation of the foregoing, the
Committee shall have the power in its sole and absolute discretion to: 
 (a) provide rules for the management, operation and
administration of the Plan, and, from time to time, amend or supplement such rules; 
 (b) construe the Plan in its sole and
absolute discretion to the fullest extent permitted by law, which construction shall be final and conclusive upon all persons except as provided in Section 5.4(a); 
 (c) correct any defect, supply any omission, or reconcile any inconsistency in the Plan in such manner and to such extent as it shall deem appropriate in its sole discretion to carry the same
into effect; 
 (d) make all determinations relevant to a Participant’s eligibility for benefits under the Plan,
including determinations as to Separation from Service, Cause, Good Reason, Transfer of Business, and the Participant’s compliance or not with Sections 3.6, 3.7, 3.8 and 3.10 of the Plan; 
 (e) to enforce the Plan in accordance with its terms and the Committee’s construction of the Plan as provided in subsection
(b) above; 
 (f) do all other acts and things necessary or proper in its judgment to carry out the purposes of the Plan
in accordance with its terms and intent. 
 6.4 Binding Authority. The decisions of the Committee or its duly
authorized delegate within the powers conferred by the Plan shall be final and conclusive for all purposes of the Plan, and shall not be subject to any appeal or review other than pursuant to Sections 5.2, 5.3, and 5.4. 
 6.5 Exculpation. No member of the Committee nor any delegate of the Committee serving as Plan Administrator nor any other officer
or employee of the Company acting on behalf of the Company with respect to this Plan shall be directly or indirectly responsible or otherwise liable by reason of any action or default as a member of that Committee, Plan Administrator or other
officer or employee of the Company acting on behalf of the Company with respect to this Plan, or by reason of the exercise of or failure to exercise any power or discretion as such person, except for any action, default, exercise or failure to
exercise resulting from such person’s gross negligence or willful misconduct. No member of the Committee shall be liable in any way for the acts or defaults of any other member of the Committee, or any of its advisors, agents or
representatives. 
  

 19 

 6.6 Indemnification. The Company shall indemnify and hold harmless each member of
the Committee, any delegate of the Committee serving as Plan Administrator, and each other officer or employee of the Company acting on behalf of the Company with respect to this Plan, against any and all expenses and liabilities arising out of his
or her own membership on the Committee, service as Plan Administrator, or other actions respecting this Plan on behalf of the Company, except for expenses and liabilities arising out of such person’s gross negligence or willful misconduct. A
person indemnified under this Section who seeks indemnification hereunder (“Indemnitee”) shall tender to the Company a request that the Company defend any claim with respect to which the Indemnitee seeks indemnification under this
Section and shall fully cooperate with the Company in the defense of such claim. If the Company shall fail to timely assume the defense of such claim then the Indemnitee may control the defense of such claim. However, no settlement of any claim
otherwise indemnified under this Section shall be subject to indemnity hereunder unless the Company consents in writing to such settlement. 
 6.7 Information. The Company and each Participant shall furnish to the Committee in writing all information the Committee may deem appropriate for the exercise of their powers and duties in the administration
of the Plan. Such information may include, but shall not be limited to, the names of all Participants, their earnings and their dates of birth, employment, retirement or death. Such information shall be conclusive for all purposes of the Plan, and
the Committee shall be entitled to rely thereon without any investigation thereof. 
 ARTICLE 7 
 GENERAL PROVISIONS 
 7.1 No Property Interest. The Plan is unfunded. Severance pay shall be paid exclusively from the general assets of the Company and any liability of the Company to any person with respect to benefits payable under the Plan shall give
rise solely to a claim as an unsecured creditor against the general assets of the Company. Any Participant who may have or claim any interest in or right to any compensation, payment or benefit payable hereunder, shall rely solely upon the unsecured
promise of the Company for the payment thereof, and nothing herein contained shall be construed to give to or vest in the Participant or any other person now or at any time in the future, any right, title, interest or claim in or to any specific
asset, fund, reserve, account, insurance or annuity policy or contract, or other property of any kind whatsoever owned by the Company, or in which the Company may have any right, title or interest now or at any time in the future. 
 7.2 Other Rights. Except as provided in Sections 3.2(a), 3.7 and 7.9, the Plan shall not affect or impair the rights or
obligations of the Company or a Participant under any other written plan, contract, arrangement, or pension, profit sharing or other compensation plan. Participation in the Plan is voluntary and no Executive shall be required to enter into an
Employment Agreement. 
 7.3 Amendment or Termination. The Plan, including but not limited to any provision of the
Plan incorporated by reference in an Employment Agreement, may be amended, modified, suspended, or terminated unilaterally by WellPoint at any time; provided, however, that no such amendment, modification, suspension or termination shall adversely
affect the rights to which a Participant would be entitled under his or her Employment Agreement if the Participant incurred 

  

 20 

 
a Separation from Service on the date of the amendment or termination unless: (i) the affected Participant approves such amendment in writing, or
(ii) the amendment is effective no earlier than one (1) year after Participants have received written notice of the amendment, or (iii) the amendment is required (as determined by the Committee) by law (including any provision of the
Code) whether such requirement impacts the Company or any Participant. Amendment or termination of the Plan shall not accelerate (or defer) the time of any payment under the Plan that is deferred compensation subject to Section 409A of the Code
if such acceleration (or deferral) would subject such deferred compensation to additional tax or penalties under Section 409A. 
 7.4 Successors. All obligations of WellPoint under the Plan shall be binding on any successor to WellPoint, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise,
of all or substantially all of the business and/or assets of WellPoint, and any such successor shall be required to perform the obligations of WellPoint under the Plan in the same manner and to the same extent that WellPoint would be required to
perform such obligations if no such succession had taken place. 
 7.5 Severability. If any term or condition of the
Plan shall be invalid or unenforceable to any extent or in any application, then the remainder of the Plan, with the exception of such invalid or unenforceable provision, shall not be affected thereby and shall continue in effect and application to
its fullest extent. If, however, the Committee determines in its sole discretion that any term or condition of the Plan (including any Employment Agreement) which is invalid or unenforceable is material to the interests of the Company, the Committee
may declare the Plan (including any Employment Agreement) null and void in its entirety or may declare any affected Employment Agreement null and void in its entirety. 
 7.6 No Employment Rights. Except as provided in the Employment Agreement, neither the establishment of the Plan, any provisions of the Plan, nor any action of the Committee shall be held
or construed to confer upon any employee the right to a continuation of employment by the Company. Subject to the applicable Employment Agreement, the Company reserves the right to dismiss any employee, or otherwise deal with any employee to the
same extent as though the Plan had not been adopted. 
 7.7 Transferability of Rights. The Company shall have the
right to transfer all of its obligations under the Plan and an Employment Agreement with respect to one or more Participants to any purchaser of all or any part of the Company’s business in a Transfer of Business or otherwise without the
consent of any Participant. No Participant or spouse of a Participant shall have any right to commute, encumber, transfer or otherwise dispose of or alienate any present or future right or expectancy which the Participant or such spouse may have at
any time to receive payments of benefits hereunder, which benefits and the right thereto are expressly declared to be non-assignable and nontransferable, except to the extent required by law. Any attempt to transfer or assign a benefit, or any
rights granted hereunder, by a Participant or the spouse of a Participant shall, in the sole discretion of the Committee (after consideration of such facts as it deems pertinent), be grounds for terminating any rights of the Participant or his or
her spouse to any portion of the Plan benefits not previously paid. 
 7.8 Beneficiary. Any payment due under this
Plan after the death of the Participant shall be paid to such person or persons, jointly or successively, as the Participant may designate, 

  

 21 

 
in writing filed by Participant with the Committee during the Participant’s lifetime in a form acceptable to the Committee, which the Participant may
change without the consent of any beneficiary by filing a new designation of beneficiary in like manner. If no designation of beneficiary is on file with the Committee or no designated beneficiary is living or in existence upon the death of the
Participant, such payments shall be made to the surviving spouse of the Participant, if any, or if none to the Participant’s estate. If and to the extent Section 409A permits acceleration of payments of deferred compensation upon death,
the Committee in its sole discretion may accelerate and pay in a lump sum, discounted at a rate approved by the payee, any Severance Pay payable after the death of a Participant. 
 7.9 Company Action. Any action required or permitted of WellPoint or the Company under this Plan shall be duly and properly taken
if taken by the Compensation Committee of the Board of Directors, or by any officer of the WellPoint to which the Compensation Committee has delegated (generally or specifically) and not withdrawn the right or power to take such action. 

7.10 Entire Document. The Plan (including Employment Agreements) as set forth herein, supersedes any and all prior practices,
understandings, agreements, descriptions or other non-written arrangements respecting severance, except for written employment or severance contracts signed by the Company with individuals other than Participants. 
 7.11 Plan Year. The fiscal records of the Plan shall be kept on the basis of a plan year which is the calendar year. 

7.12 Governing Law. This is an employee benefit plan subject to ERISA and shall be governed by and construed in accordance with
ERISA and, to the extent applicable and not preempted by ERISA, the law of the State of Indiana applicable to contracts made and to be performed entirely within that State, without regard to its conflict of law principal. 
 ARTICLE 8 
 DEFINITIONS 
 8.1 Definitions. The following words and phrases as used herein shall have the following meanings, unless a different meaning is
required by the context: 
 8.1.1 “Annual Salary” means the highest annualized rate of regular salary in
effect for the Participant (i) during the one-year period before Separation from Service or, if higher, (ii) during the period commencing one year prior to a Change in Control, and ending upon Separation from Service. 
 8.1.2 “Board of Directors” means the Board of Directors of WellPoint. 
 8.1.3 “Cause”, unless otherwise defined for purposes of termination of employment in a written employment agreement
between the Company and the Participant, shall mean any act or failure to act on the part of the Participant which constitutes: 
 (i) fraud, embezzlement, theft or dishonesty against the Company; 
  

 22 

 (ii) material violation of law in connection with or in the course of the
Participant’s duties or employment with the Company, 
 (iii) commission of any felony or crime involving
moral turpitude; 
 (iv) any violation of Section 3.6 of the Plan; 
 (v) any other material breach of the Employment Agreement; 
 (vi) material breach of any written employment policy of the Company; or 
 (vii) conduct which tends to bring the Company into substantial public disgrace or disrepute; 
 provided, however, that with respect to a termination of employment during an Imminent Change in Control Period or within the thirty-six (36) month
period after a Change in Control, clause (vi) shall apply only if such material breach is grounds for immediate termination under the terms of such written employment policy; and clauses (iv), (v), (vi), and (vii) shall apply only if such
violation, breach or conduct is willful. 
 8.1.4 “Change in Control” means the first to occur of the
following events with respect to the WellPoint: 
 (a) any person (as such term is used in Rule 13d-5 of the Securities and
Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 (the “Exchange Act”) or group (as such term is defined in Section 13(d) of the Exchange Act), other than a subsidiary of WellPoint or any
employee benefit plan (or any related trust) of the Company, becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of 20% or more of the common stock of WellPoint (“Common Stock”) or of other voting
securities representing 20% or more of the combined voting power of all voting securities WellPoint; provided, however, that (i) no Change in Control shall be deemed to have occurred solely by reason of any such acquisition by a corporation
with respect to which, after such acquisition, more than 80% of both the common stock of such corporation and the combined voting power of the voting securities of such corporation are then beneficially owned, directly or indirectly, by the persons
who were the Beneficial Owners of the Common Stock and other voting securities of WellPoint immediately before such acquisition, in substantially the same proportion as their ownership of the Common Shares and other voting securities of WellPoint
immediately before such acquisition; (ii) if any person or group owns 20% or more but less than 30% of the combined voting power of the Common Stock and other voting securities of WellPoint and such person or group has a “No Change in
Control Agreement” (as defined below) with the Company, no Change in Control shall be deemed to have occurred solely by reason of such ownership for so long as the No Change in Control Agreement remains in effect and such person or group is not
in violation of the No Change in Control Agreement; and (iii) once a Change in Control occurs under this subsection (a), the occurrence of the next Change in Control (if any) under this subsection (a) shall be determined by reference to a
person or group other than the person or group whose acquisition of Beneficial Ownership created such prior Change in Control unless the original person or group has in the meantime ceased to own 20% or more of the Common Shares of WellPoint or
other voting securities representing 20% or more of the combined voting power of all voting securities of WellPoint; or 
  

 23 

 (b) within any period of thirty-six (36) or fewer consecutive months individuals
who, as of the first day of such period were members of the Board of Directors of WellPoint (the “Incumbent Directors”) cease for any reason to constitute at least 75% of the members of the Board; provided, however, that
(i) any individual who becomes a Member of the Board of Directors after the first day of such period whose nomination for election to the Board was approved by a vote or written consent of at least 75% of the Members of the Board of Directors
who are then Incumbent Directors shall be considered an Incumbent Director, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the
election of the directors of the Company (as such terms are used in Rule 14a-11 of the SEC under the Exchange Act) or an Imminent Change in Control or other transaction described in subsection (a) above or (c) below; and (ii) once a
Change in Control occurs under this subsection (b), the occurrence of the next Change in Control (if any) under this subsection (b) shall be determined by reference to a period of thirty-six (36) or fewer consecutive months beginning not
earlier than the date immediately after the date of such prior Change in Control; or 
 (c) closing of a transaction which is
any of the following: 
 (i) a merger, reorganization or consolidation of WellPoint
(“Merger”), after which (A) the individuals and entities who were the respective beneficial owners of the Common Stock and other voting securities of WellPoint immediately before such Merger do not beneficially own, directly or
indirectly, more than 60% of, respectively, the Common Stock or the combined voting power of the common stock and voting securities of the corporation resulting from such Merger, in substantially the same proportion as their ownership of the Common
Stock and other voting securities of WellPoint immediately before such Merger; 
 (ii) a Merger after which
individuals who were members of the Board of Directors of WellPoint immediately before the Merger do not comprise a majority of the members of the Board of Directors of the corporation resulting from such Merger; 
 (iii) a sale or other disposition by WellPoint of all or substantially all of the assets owned by it (a
“Sale”) after which the individuals and entities who were the respective beneficial owners of the Common Stock and other voting securities of WellPoint immediately before such Sale do not beneficially own, directly or indirectly,
more than 60% of, respectively, the Common Stock or the combined voting power of the common stock and voting securities of the transferee in such Sale in substantially the same proportion as their ownership of the Common Stock and other voting
securities of WellPoint immediately before such Sale; or 
 (iv) a Sale after which individuals who were
members of the Board of Directors of WellPoint immediately before the Sale do not comprise a majority of the members of the board of directors of the transferee corporation. 
  

 24 

 8.1.5 “Code” means the Internal Revenue Code of 1986, as amended from
time to time. 
 8.1.6 “Committee” means a committee appointed by the Chief Executive Officer of WellPoint
to administer this Plan. 
 8.1.7 “Executive” means any person employed by the Company in a position of Vice
President, Senior Vice President, or Executive Vice President; and any other key executive of the Company employed in a position below that of Vice President (“Other Key Executive”) whom the Chief Executive Officer of WellPoint expressly
determines shall be eligible to be a Participant in this Plan. 
 8.1.8 “Good Reason” for a termination of
employment shall mean for Participants who are classified as Executive Vice President, Group Vice President, Senior Vice President or Vice President (a) the occurrence of the events set forth in clauses (ii), (v) or (vi) below within
the thirty-six (36) month period after a Change in Control, or (b) the occurrence of the events set forth in clauses (i), (iii) or (iv) below at any time before or after a Change in Control: 
 (i) a reduction exceeding 10% during any twenty-four (24) consecutive month period in the Participant’s Annual
Salary, or in the Participant’s annual total cash compensation (including Annual Salary and Target Bonus), but excluding in either case any reduction both (A) applicable to management employees generally, and (B) and not implemented
during an Imminent Change in Control Period or within the thirty-six (36) month period after a Change in Control); 
 (ii) a material adverse change without the Participant’s prior consent in the Participant’s position, duties, or responsibilities as an Executive of the Company and provided, however, that this clause shall
not apply in connection with a Transfer of Business if the position offered to the Participant by the transferee is substantially comparable in position, duties, or responsibilities with the position, duties and responsibilities of the Participant
prior to such Transfer of Business and is not in violation of the Participant’s rights under the Employment Agreement; 
 (iii) a material breach of the Employment Agreement or this Plan by the Company; 
 (iv) a change in the Participant’s principal work location to a location more than 50 miles from the Participant’s prior work location and more than 50 miles from the Participant’s principal residence as of the date of such
change in work location; 
 (v) the failure of any successor to Company by merger, consolidation, or
acquisition of all or substantially all of the business of the Company or by Transfer of Business to assume the Company’s obligations under this Plan (including any Employment Agreements). 
 Notwithstanding the foregoing provisions of this definition, Good Reason shall not exist if the Participant has in his or her sole discretion agreed in
writing that such event shall not be Good 

  

 25 

 
Reason. A Separation from Service shall not be considered to be for Good Reason unless (A) within sixty (60) days of the occurrence of the events
claimed to be Good Reason the Participant notifies the Committee in writing of the reasons why he or she believes that Good Reason exists, (B) the Company has failed to correct the circumstance that would otherwise be Good Reason within thirty
(30) days of receipt of such notice, and (C) the Participant terminates his or her employment within 60 days of such thirty (30) day period (or if earlier within 60 days of the date the Committee has confirmed to the Participant
pursuant to Section 5.1 that Good Reason exists). 
 8.1.9 “Imminent Change in Control Period” means
the period (i) beginning on the date of (A) the public announcement (whether by advertisement, press release, press interview, public statement, SEC filing or otherwise) of a proposal or offer which if consummated would be a Change in
Control, (B) the making to a director or executive officer of the Company of a written proposal which if consummated would be a Change in Control, or (C) approval by the Board of Directors or the stockholders of WellPoint of a transaction
that upon closing would be a Change in Control; and (ii) ending upon the first to occur of (A) a public announcement that the prospective Change in Control contemplated by the event(s) described in clause (i) has been terminated or
abandoned, (B) the occurrence of the contemplated Change in Control, or (C) the first annual anniversary of the beginning of the Imminent Change in Control Period. 
 8.1.10 “No Change in Control Agreement” means a legal, binding and enforceable agreement executed by and in effect between a person or all members of a group and WellPoint that
provides that: (1) such person or group shall be bound by the agreement for the time period of not less than five (5) years from its date of execution; (2) such person or group shall not acquire beneficial ownership or voting control
equal to a percentage of the Common Stock or the voting power of other voting securities of WellPoint that exceeds a percentage specified in the agreement which percentage shall in all events be less than 30%; (3) such person or group may not
designate for election as directors a number of directors in excess of 25% of the number of directors on the Board; and (4) such person or group shall vote the Common Stock and other voting securities of WellPoint in all matters in the manner
directed by the majority of the Incumbent Directors. If any agreement described in the preceding sentence is violated by such person or group or is amended in a fashion such that it no longer satisfies the requirements of the preceding sentence,
such agreement shall, as of the date of such violation or amendment, be treated for purposes hereof as no longer constituting a No Change in Control Agreement. 
 8.1.11 “Participant” means any Executive who is eligible to participate in the Plan and has become a Participant in accordance with Section 2.1, and has not had such
participation terminated pursuant to Section 2.2. 
 8.1.12 “Qualified Change in Control” means a
Change in Control which qualifies as a change in the ownership or effective control of WellPoint or in the ownership of a substantial portion of the assets of WellPoint within the meaning of Section 409A(a)(2)(A)(v) of the Code. 
 8.1.13 “Separation from Service” means a termination of the Participant’s employment with the Company which
constitutes a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code. Notwithstanding the preceding sentence a Separation from Service shall not include: 
 (i) the disposition by the Company of the subsidiary or affiliate which employs the Participant if such employing
subsidiary or affiliate adopts this Plan and continues (by assignment or otherwise) to be the employer of the Participant under the Employment Agreement, or 
  

 26 

 (ii) a termination of employment in a Transfer of Business in connection
with which the Participant receives a bona fide offer of employment from the transferee (or an affiliate of the transferee), whether or not accepted, for which purpose a bona fide offer of employment is an offer of employment effective on the
closing of the Transfer of Business on terms that does not have an effect described in clauses (i), (ii), (iv) or (v) of Section 8.1.9 (defining “Good Reason”). 
 (iii) A Participant shall cooperate with the transferee in a Transfer of Business by completing such employment
applications and providing such other information as the transferee may need in order to make a bona fide offer of employment. A Participant who fails to provide such cooperation shall be deemed to have received and rejected a bona fide offer of
employment. 
 8.1.14 “Target Bonus” means the Target Bonus Percentage times the Annual Salary. 

8.1.15 “Target Bonus Percentage” means the sum of the highest annualized target bonus percentage(s) (as a percentage
of salary) in effect for the Participant (i) during the one-year period before Separation from Service or, if higher, (ii) during the period commencing one year prior to a Change in Control, and ending upon Separation of Service under each
regular annual bonus or a short-term incentive plan including but not limited to WellPoint’s Annual Incentive Plan or successor plans and any sales incentive plans (as determined by the Committee in its sole discretion) covering the
Participant. 
 8.1.16 “Transfer of Business” means a transfer of the Participant’s position to another
entity, as part of either (i) a transfer to such entity as a going concern of all or part of the business function of the Company in which the Participant was employed, or (ii) an outsourcing to another entity of a business function of the
Company in which the Participant was employed. 
 IN WITNESS WHEREOF
WellPoint has caused this Amendment and Restatement of the Plan to be executed on its behalf by an authorized officer this 4th day of October, 2007.

  

			
	 WELLPOINT, INC.

		
	 By:
	 	 /s/ Angela F. Braly

		 	 Angela F. Braly

		 	 President and Chief Executive Officer

  

 27 

 EXHIBIT A 
 EMPLOYMENT AGREEMENT 
 EMPLOYMENT AGREEMENT (the “Agreement”) dated
as of                      (the “Agreement Date”), between WellPoint, Inc., an Indiana corporation (“WellPoint”) with its
headquarters and principal place of business in Indianapolis, Indiana (WellPoint, together with its subsidiaries and affiliates are collectively referred to herein as the “Company”), and the person listed on Schedule A (the
“Executive”). 
 W I T N E S S E T H 
 WHEREAS, the Company desires to retain the services of Executive and to provide Executive an opportunity to receive severance to
which Executive is not otherwise entitled in return for the diligent and loyal performance of Executive’s duties and Executive’s agreement to reasonable and limited restrictions on Executive’s post-employment conduct to protect the
Company’s investments in its intellectual property, employee workforce, customer relationships and goodwill; 
 WHEREAS, the Company has established the WellPoint, Inc. Executive Agreement Plan (“Plan”) to provide certain benefits for participants who enter into an employment agreement in the form of this Agreement; and 

WHEREAS, Executive is not required to execute this Agreement as a condition of continued employment; rather, Executive is
entering into this Agreement to enjoy the substantial additional payments and benefits available under the Plan and the Designated Plans (as hereinafter defined). 
 NOW THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows: 
 1. POSITION/DUTIES. 
 (a) During the Employment Period (as defined in Section 2 below), Executive shall serve in the position set forth on Schedule A, or
in such other position of comparable duties, authorities and responsibilities commensurate with the skills and talents of Executive to which the Company may from time to time assign Executive. In this capacity, Executive shall have such duties,
authorities and responsibilities as the Company shall designate that are commensurate with Executive’s position. 
 (b)
During the Employment Period, Executive shall comply with Company policies and procedures, and shall devote all of Executive’s business time, energy and skill, best efforts and undivided business loyalty to the performance of Executive’s
duties with the Company. Executive further agrees that while employed by the Company he shall not perform any services for remuneration for or on behalf of any other entity without the advance written consent of the Company. 

 2. EMPLOYMENT PERIOD. Subject to the termination provisions hereinafter provided,
the initial term of Executive’s employment under this Agreement shall commence on the Agreement Date listed above and end on the Anniversary Date which is one year after the Agreement Date; provided, however, that commencing on the day
following the Agreement Date the term will automatically be extended each day by one day, until a date (the “Expiration Date”) which is the first annual anniversary of the first date on which either the Company or Executive delivers to the
other written notice of non-renewal. The term beginning on the Agreement Date and ending on the Expiration Date shall constitute the “Employment Period” for purposes of this Agreement. Expiration of this Agreement shall not be construed to
terminate the employment of Executive. If the employment of Executive does not terminate on or before the Expiration Date in accordance with this Agreement, Executive shall continue to be an employee at will of the Company after the Expiration Date
unless such employment is otherwise terminated by the Company or Executive. 
 3. BASE SALARY. The Company agrees to
pay Executive a base salary at an annual rate set forth on Schedule A, payable in accordance with the regular payroll practices of the Company. Executive’s Base Salary shall be subject to annual review by the Company. The base salary as
determined herein from time to time shall constitute “Base Salary” for purposes of this Agreement. 
 4.
BONUS. During the Employment Period, Executive shall be eligible to receive consideration for an annual bonus upon such terms as adopted from time to time by the Company. The Target Bonus for which Executive is eligible for the year in which
this Agreement is executed is specified in Schedule A to this Agreement. 
 5. BENEFITS. Executive, his or her spouse
and their eligible dependents shall be entitled to participate in any employee benefit plan that the Company has adopted or may adopt, maintain or contribute to for the benefit of its executives at a level commensurate with Executive’s
position, subject to satisfying the applicable eligibility requirements therefore, in addition to the benefits available under the Plan. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time in
accordance with its terms. 
 6. TERMINATION. Executive’s employment and the Employment Period shall terminate on
the first of the following to occur: 
 (a) DISABILITY. Subject to applicable law, upon 10 days’ prior written
notice by the Company to Executive of termination due to Disability. “Disability” shall have the meaning defined for that term in the Plan. 
 (b) DEATH. Automatically on the date of death of Executive. 
 (c) CAUSE. The
Company may terminate Executive’s employment hereunder for Cause immediately upon written notice by the Company to Executive of a termination for Cause. “Cause” shall have the meaning defined for that term in the Plan. 
 (d) WITHOUT CAUSE. Upon written notice by the Company to Executive of an involuntary termination without Cause, other than for
death or Disability. 
  

 2 

 7. CONSEQUENCES OF TERMINATION. The Executive’s entitlement to payments and
benefits upon termination shall be as set forth in the Plan. 
 8. RELEASE. Any and all amounts payable and benefits
or additional rights provided pursuant to this Agreement beyond Accrued Benefits shall only be payable if Executive delivers to the Company and does not revoke a general release of all claims in a form tendered by the Company which shall be
substantially similar to the form attached as Exhibit B to the Plan or such other form acceptable to the Company within thirty (30) days of Executive’s termination of employment. 
 9. RESTRICTIVE COVENANTS. 
 (a) CONFIDENTIALITY. 
 (i) Executive recognizes that the Company
derives substantial economic value from information created and used in its business which is not generally known by the public, including, but not limited to, plans, designs, concepts, computer programs, formulae, and equations; product fulfillment
and supplier information; customer and supplier lists, and confidential business practices of the Company, its affiliates and any of its customers, vendors, business partners or suppliers; profit margins and the prices and discounts the Company
obtains or has obtained or at which it sells or has sold or plans to sell its products or services (except for public pricing lists); manufacturing, assembling, labor and sales plans and costs; business and marketing plans, ideas, or strategies;
confidential financial performance and projections; employee compensation; employee staffing and recruiting plans and employee personal information; and other confidential concepts and ideas related to the Company’s business (collectively,
“Confidential Information”). Executive expressly acknowledges and agrees that by virtue of his or her employment with the Company, Executive will have access and will use in the course of Executive’s duties certain Confidential
Information and that Confidential Information constitutes trade secrets and confidential and proprietary business information of the Company, all of which is the exclusive property of the Company. For purposes of this Agreement, Confidential
Information includes the foregoing and other information protected under the Indiana Uniform Trade Secrets Act (the “Act”), or to any comparable protection afforded by applicable law, but does not include information that Executive
establishes by clear and convincing evidence, is or may become known to Executive or to the public from sources outside the Company and through means other than a breach of this Agreement. 
 (ii) Executive agrees that Executive will not for himself or herself or for any other person or entity, directly or
indirectly, without the prior written consent of the Company, while employed by the Company and thereafter: (1) use Confidential Information for the benefit of any person or entity other than the Company or its affiliates; (2) remove,
copy, duplicate or otherwise reproduce any document or tangible item embodying or pertaining to any of the Confidential Information, except as required to perform Executive’s duties for the Company or its affiliates; or (3) while employed
and thereafter, publish, release, disclose or deliver or otherwise make available to any third party any Confidential Information by any communication, including oral, 

  

 3 

 
documentary, electronic or magnetic information transmittal device or media. Upon termination of employment, Executive shall return all Confidential
Information and all other property of the Company. This obligation of non-disclosure and non-use of information shall continue to exist for so long as such information remains Confidential Information. 
 (b) DISCLOSURE AND ASSIGNMENT OF INVENTIONS AND IMPROVEMENTS. Without prejudice to any other duties express or implied imposed on
Executive hereunder it shall be part of Executive’s normal duties at all times to consider in what manner and by what methods or devices the products, services, processes, equipment or systems of the Company and any customer or vendor of the
Company might be improved and promptly to give to the Chief Executive Officer of the Company or his or her designee full details of any improvement, invention, research, development, discovery, design, code, model, suggestion or innovation
(collectively called “Work Product”), which Executive (alone or with others) may make, discover, create or conceive in the course of Executive’s employment. Executive acknowledges that the Work Product is the property of the Company.
To the extent that any of the Work Product is capable of protection by copyright, Executive acknowledges that it is created within the scope of Executive’s employment and is a work made for hire. To the extent that any such material may not be
a work made for hire, Executive hereby assigns to the Company all rights in such material. To the extent that any of the Work Product is an invention, discovery, process or other potentially patentable subject matter (the “Inventions”),
Executive hereby assigns to the Company all right, title, and interest in and to all Inventions. The Company acknowledges that the assignment in the preceding sentence does not apply to an Invention that Executive develops entirely on his or her own
time without using the Company’s equipment, supplies, facilities or trade secret information, except for those Inventions that either: 
  

	 	 (1)
	 relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or
development of the Company, or 

  

	 	 (2)
	 result from any work performed by Executive for the Company. 

 Execution of this Agreement constitutes Executive’s acknowledgment of receipt of written notification of this Section and of notice of the general exception to assignments of Inventions provided under the Uniform
Employee Patents Act, in the form adopted by the state having jurisdiction over this Agreement or provision, or any comparable applicable law. 
 (c) NON-COMPETITION. During the Employment Period, and any period in which Executive is employed by the Company during or after the Employment Period, and during the period of time after Executive’s
termination of employment as set forth in Schedule A, Executive will not, without prior written consent of the Company, directly or indirectly seek or obtain a Competitive Position in a Restricted Territory and perform a Restricted Activity
with a Competitor, as those terms are defined herein. 
 (i) Competitive Position means any employment or
performance of services with a Competitor (A) in which Executive has executive level duties for such Competitor, or (B) in which Executive will use any Confidential Information of the Company. 
  

 4 

 (ii) Restricted Territory means any geographic area in which the Company
does business and in which the Executive had responsibility for, or Confidential Information about, such business within the thirty six (36) months prior to Executive’s termination of employment from the Company. 
 (iii) Restricted Activity means any activity for which Executive had responsibility for the Company within the thirty-six
(36) months prior to Executive’s termination of employment from the Company or about which Executive had Confidential Information. 
 (iv) Competitor means any entity or individual (other than the Company), engaged in management of network-based managed care plans and programs, or the performance of managed care services,
health insurance, long term care insurance, dental, life or disability insurance, behavioral health, vision, flexible spending accounts, COBRA administration or other products or services substantially the same or similar to those offered by the
Company while Executive was employed, or other products or services offered by the Company within twelve (12) months after the termination of Executive’s employment if the Executive had responsibility for, or Confidential Information
about, such other products or services while Executive was employed by the Company. 
 (d) NON-SOLICITATION OF
CUSTOMERS. During the Employment Period, and any period in which Executive is employed by the Company during or after the Employment Period, and for the period of time after Executive’s termination of employment as set forth in the Plan,
Executive will not, either individually or as a employee, partner, consultant, independent contractor, owner, agent, or in any other capacity, directly or indirectly, for a Competitor of the Company as defined in Section 9(c)(iv) above:
(i) solicit business from any client or account of the Company or any of its affiliates with which Executive had contact, or responsibility for, or about which Executive had knowledge of Confidential Information by reason of Executive’s
employment with the Company, (ii) solicit business from any client or account which was pursued by the Company or any of its affiliates and with which Executive had contact, or responsibility for, or about which Executive had knowledge of
Confidential Information by reason of Executive’s employment with the Company, within the twelve (12) month period prior to termination of employment. For purposes of this provision, an individual policyholder in a plan maintained by the
Company or by a client or account of the Company under which individual policies are issued, or a certificate holder in such plan under which group policies are issued, shall not be considered a client or account subject to this restriction solely
by reason of being such a policyholder or certificate holder. 
 (e) NON-SOLICITATION OF EMPLOYEES. During the
Employment Period, and any period in which Executive is employed by the Company during or after the Employment Period, and for the period of time after Executive’s termination of employment as set forth int he Plan, Executive will not, either
individually or as a employee, partner, independent contractor, owner, agent, or in any other capacity, directly or indirectly solicit, hire, attempt to solicit or hire, or participate in any attempt to solicit or hire, for any non-Company
affiliated entity, any person who on or during the six (6) months immediately preceding the date of such solicitation or hire is or was an officer or employee of the Company, or whom Executive was involved in recruiting while Executive was
employed by the Company. 
  

 5 

 (f) NON-DISPARAGEMENT. Executive agrees that he or she will not, nor will he or
she cause or assist any other person to, make any statement to a third party or take any action which is intended to or would reasonably have the effect of disparaging or harming the Company or the business reputation of the Company’s
directors, employees, officers and managers. 
 (g) CESSATION AND RECOUPMENT OF SEVERANCE PAYMENTS AND OTHER BENEFITS.
If at any time Executive breaches any provision of this Section 9 or Section 10, then: (i) the Company shall cease to provide any further severance Pay or other benefits previously received under the Plan and Executive shall repay to
the Company all Severance Pay and other benefits previously received under the Plan, (ii) all unexercised Company stock options under any Designated Plan (as defined in the Plan) whether or not otherwise vested shall cease to be exercisable and
shall immediately terminate; (iii) Executive shall forfeit any outstanding restricted stock or other outstanding equity award made under any Designated Plan and not otherwise vested on the date of breach; and (iv) the Executive shall pay
to the Company (A) for each share of common stock of the Company (“Common Share”) acquired on exercise of an option under a Designated Plan within the 24 months prior to such breach, the excess of the fair market value of a Common
Share on the date of exercise over the exercise price, and (B) for each Share of restricted stock that became vested under any Designated Plan within the 24 months prior to such breach, the fair market value (on the date of vesting) of a Common
Share. Any amount to be repaid pursuant to this Section 9(g) shall be held by the Executive in constructive trust for the benefit of the Company and shall, upon written notice from the Company, within 10 days of such notice, be paid by
Executive to the Company with interest from the date such Common Share was acquired or the share of restricted stock became vested, as the case may be, to the date of payment, at 120% of the applicable federal rate, determined under
Section 1274(d) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”). Any amount described in clauses (i), (ii) or (iii) that the Executive forfeits as a result of a breach of the provisions of
Sections 9 and 10 shall not reduce any money damages that would be payable to the Company as compensation for such breach. The amount to be repaid pursuant to this Section 9(g) shall be determined on a gross basis, without reduction for any
taxes incurred, as of the date of the realization event, and without regard to any subsequent change in the fair market value of a Common Share. The Company shall have the right to offset such gain against any amounts otherwise owed to Executive by
the Company (whether as wages, vacation pay, or pursuant to any benefit plan or other compensatory arrangement other than any amount pursuant to any nonqualified deferred compensation plan under Section 409A of the Code). For purposes of this
Section 9(g), a “Designated Plan” is each annual bonus and incentive plan, stock option, restricted stock, or other equity compensation or long-term incentive compensation plan, deferred compensation plan, or supplemental retirement
plan, listed on Exhibit C to the Plan. The provisions of this Section 9(g) shall apply to awards described in clauses (i), (ii), (iii) and (iv) of this Section earned or made after the date Executive becomes a participant in the Plan
and executes this Agreement, and to awards earned or made prior thereto which by their terms are subject to cessation and recoupment under terms similar to those of this paragraph. 
 (h) EQUITABLE RELIEF AND OTHER REMEDIES—CONSTRUCTION. 
 (i) Executive acknowledges that each of the provisions of this Agreement are reasonable and necessary to preserve the
legitimate business interests of the Company, its 

  

 6 

 
present and potential business activities and the economic benefits derived therefrom; that they will not prevent him or her from earning a livelihood in
Executive’s chosen business and are not an undue restraint on the trade of Executive, or any of the public interests which may be involved. 
 (ii) Executive agrees that beyond the amounts otherwise to be provided under this Agreement and the Plan, the Company will be damaged by a violation of this Agreement and the amount of such
damage may be difficult to measure. Executive agrees that if Executive commits or threatens to commit a breach of any of the covenants and agreements contained in Sections 9 and 10 to the extent permitted by applicable law, then the Company shall
have the right to seek and obtain all appropriate injunctive and other equitable remedies, without posting bond therefore, except as required by law, in addition to any other rights and remedies that may be available at law or under this Agreement,
it being acknowledged and agreed that any such breach would cause irreparable injury to the Company and that money damages would not provide an adequate remedy. Further, if Executive violates Section 9(b)—(e) hereof Executive agrees that
the period of violation shall be added to the Period in which Executive’s activities are restricted. 
 (iii) Notwithstanding the foregoing, the Company will not seek injunctive relief to prevent an Executive residing in California from engaging in post termination competition in California under Section 9(c) or 9(d) of this Agreement
provided that the Company may seek and obtain relief to enforce Section 9(g) of this Section with respect to such Executives. 
 (iv) The parties agree that the covenants contained in this Agreement are severable. If an arbitrator or court shall hold that the duration, scope, area or activity restrictions stated herein are unreasonable under
circumstances then existing, the parties agree that the maximum duration, scope, area or activity restrictions reasonable and enforceable under such circumstances shall be substituted for the stated duration, scope, area or activity restrictions to
the maximum extent permitted by law. The parties further agree that the Company’s rights under Section 9(g) should be enforced to the fullest extent permitted by law irrespective of whether the Company seeks equitable relief in addition to
relief provided thereon or if the arbitrator or court deems equitable relief to be inappropriate. 
 (i) SURVIVAL OF
PROVISIONS. The obligations contained in this Section 9 and Section 10 below shall survive the cessation of the Employment Period and Executive’s employment with the Company and shall be fully enforceable thereafter. 

10. COOPERATION. While employed by the Company and for two years (or, if longer, for so long as any claim referred to in
Section 3.10 of the Plan remains pending) after the termination of Executive’s employment for any reason, Executive will provide cooperation and assistance to the Company as provided in Section 3.10 of the Plan. 
 11. NOTIFICATION OF EXISTENCE OF AGREEMENT. Executive agrees that in the event that Executive is offered employment with another
employer (including service as a 

  

 7 

 
partner of any partnership or service as an independent contractor) at any time during the existence of this Agreement, or such other period in which post
termination obligations of this Agreement apply, Executive shall immediately advise said other employer (or partnership) of the existence of this Agreement and shall immediately provide said employer (or partnership or service recipient) with a copy
of Sections 9 and 10 of this Agreement. 
 12. NOTIFICATION OF SUBSEQUENT EMPLOYMENT. Executive shall report promptly
to the Company any employment with another employer (including service as a partner of any partnership or service as an independent contractor or establishment of any business as a sole proprietor) obtained during the period in which
Executive’s post termination obligations set forth in Section 9(b)—(f) apply. 
 13. NOTICE. For the
purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of delivery if delivered by hand, (ii) on the date of
transmission, if delivered by confirmed facsimile or e-mail, (iii) on the first business day following the date of deposit if delivered by guaranteed overnight delivery service, or (iv) on the fourth business day following the date
delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to Executive: 
 At the address (or to the facsimile number) shown on the records of the Company 
 If to the Company: 
 Randal L. Brown 
 Executive Vice President and Chief Human Resources Officer 
 WellPoint, Inc. 
 120 Monument Circle 
 Indianapolis, IN 46204 
 or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 14. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of this
Agreement shall control. 
 15. SUCCESSORS AND ASSIGNS—BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns, as the case may be. The Company may assign this Agreement to any affiliate of the Company and to any successor or assign of all or a substantial portion of the
Company’s business. Executive may not assign or transfer any of his rights or obligations under this Agreement. 
  

 8 

 16. SEVERABILITY. The provisions of this Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 
 17. DISPUTE RESOLUTION. 
 (a) In the event of any dispute arising out of or relating to this Agreement the
determinations of fact and the construction of this Agreement or any other determination by the Committee in its sole and absolute discretion pursuant to Section 6.3 of the Plan shall be final and binding on all persons and may not be
overturned in any arbitration or any other proceeding unless the party challenging the Committee’s determination can demonstrate by clear and convincing evidence that a determination of fact is clearly erroneous or any other determination by
the Committee is arbitrary and capricious; provided, however, that if a claim relates to benefits due following a Change in Control (as defined in the Plan), the Committee’s determination shall not be final and binding if the party challenging
the Committee’s determination establishes by a preponderance of the evidence that he or she is entitled to the benefit in dispute. 
 (b) Any dispute arising out of or relating to this Agreement shall first be presented to the Committee pursuant to the claims procedure set forth in Section 5.2 of the Plan and the claims review procedure of
Section 5.3 of the Plan within the times therein provided. In the event of any failure timely to use and exhaust such claims procedure, and the claims review procedures, the decision of the Committee on any matter respecting this Agreement
shall be final and binding and may not be challenged by further arbitration, or any other proceeding. 
 (c) Any dispute
arising out of or relating to this Agreement, including the breach, termination or validity thereof, which has not been resolved as provided in paragraph (b) of this Section as provided herein shall be finally resolved by arbitration in
accordance with the CPR Rules for Non-Administered Arbitration then currently in effect, by a sole arbitrator. The Company shall be initially responsible for the payment of any filing fee and advance in costs required by CPR or the arbitrator,
provided, however, if the Executive initiates the claim, the Executive will contribute an amount not to exceed $250.00 for these purposes. During the arbitration, each Party shall pay for its own costs and attorneys fees, if any. Attorneys fees and
costs should be awarded by the arbitrator to the prevailing party pursuant to Section 19 below. 
 (d) The arbitration
shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction thereof. The arbitrator shall not have the right to award
speculative damages or punitive damages to either party except as expressly permitted by statute (notwithstanding this provision by which both parties hereto waive the right to such damages) and shall not have the power to amend this Agreement. The
arbitrator shall be required to follow applicable law. The place of arbitration shall be Indianapolis, Indiana. Any application to enforce or set aside the arbitration award shall be filed in a state or federal court located in Indianapolis,
Indiana. 
 (e) Any demand for Arbitration must be made or any other proceeding filed within six (6) months after the
date of the Committee’s decision on review pursuant to Section 5.3 of the Plan. 
  

 9 

 (f) Notwithstanding the foregoing provisions of this Section, an action to enforce this
Agreement shall be filed within eighteen (18) months after the party seeking relief had actual or constructive knowledge of the alleged violation of the Employment Agreement in question or any party shall be able to seek immediate, temporary,
or preliminary injunctive or equitable relief from a court of law or equity if, in its judgment, such relief is necessary to avoid irreparable damage. To the extent that any party wishes to seek such relief from a court, the parties agree to the
following with respect to the location of such actions. Such actions brought by the Executive shall be brought in a state or federal court located in Indianapolis, Indiana. Such actions brought by the Company shall be brought in a state or federal
court located in Indianapolis, Indiana; the Executive’s state of residency; or any other forum in which the Executive is subject to personal jurisdiction. The Executive specifically consents to personal jurisdiction in the State of Indiana for
such purposes. 
 (g) IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE, THEN EACH PARTY, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER MATTER INVOLVING
THE PARTIES HERETO. 
 18. GOVERNING LAW. This Agreement forms part of an employee benefit plan subject to the
Employee Retirement Income Security Act of 1974 (“ERISA”), and shall be governed by and construed in accordance with ERISA and, to the extent applicable and not preempted by ERISA, the law of the State of Indiana applicable to contracts
made and to be performed entirely within that State, without regard to its conflicts of law principles. 
 19.
ATTORNEYS’ FEES. In the event of any contest arising under or in connection with this Agreement, the arbitrator or court, as applicable, shall award the prevailing party attorneys’ fees and costs to the extent permitted by
applicable law. 
 20. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by Executive and such officer or director as may be designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and the Plan
and together with all exhibits thereto sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein. No agreements or representations, oral or otherwise, express or implied, with respect to the subject
matter hereof have been made by either party which are not expressly set forth in this Agreement. 
 21. OTHER EMPLOYMENT
ARRANGEMENTS. Except as set forth on Schedule A or provided in Section 2.1(a)(i) of the Plan, any severance or change in control plan or agreement (other than the Plan) or other similar agreements or arrangements between Executive and the
Company including without limitation the Executive Agreement (the Anthem Non-Competition Agreement), shall, effective as of the Effective Date, be superseded by this Agreement and the Plan and shall therefore terminate and be null and void and of no
force or effect. 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above. 
  

			
	 WELLPOINT, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Its:
	 	  

	 Date:
	 	  

	
	 EXECUTIVE

	  

	 Date:
	 	  

  

 11 

 SCHEDULE A 
  

			
	 1. Name of Executive
	  	 [                                      
  ]

		
	 2. Position
	  	 [                                      
  ]

		
	 3. Agreement Date
	  	 [                                      
  ]

		
	 4. Base Salary
	  	 [$                                     
 ]

		
	 5. Annual Bonus Target Opportunity
	  	 [                                      
  ]

		
	 6. Severance Payments and Benefits in the case of a Termination Without Cause and in the absence of a Change in Control to be paid over the period indicated at times
corresponding with the Company’s normal payroll dates
	  	 [Key Employee and VPs – 12 months
 SVP – 18 months
 EVP – 24 months]
 [Base salary and bonus and benefit continuation per the Plan]

		
	 7. Severance Payments and Benefits in the case of a Termination Without Cause during an Imminent Change in Control period or during the thirty-six (36) month period
after a Change in Control or a Termination by Executive with Good Reason during the thirty-six (36) month period after a Change in Control
	  	 [Key Employee – 12 months
 VP – 12 months
 SVP – 30 months
 EVP – 36 months]
 [Base salary
and Change in Control payments and bonus and benefit continuation per the Plan]

		
	 8. Non Solicitation and Non Competition Period following Termination of Employment for any reason
	  	 [Key Employee and VP – 12 months
 SVP – 15 months
 EVP – 18 months]

 EXHIBIT B 
 WAIVER AND RELEASE 
 This is a Waiver and Release (“Release”)
between                      (“Executive”) and WellPoint, Inc. (the “Company”). The Company and the Executive agree that
they have entered into this Release voluntarily, and that it is intended to be a legally binding commitment between them. 
 1. In consideration for the promises made herein by the Executive, the Company agrees as follows: 
 (a) Severance Pay. The Company will pay to the Executive severance or change of control payments and bonus pay in the amount set forth in the WellPoint, Inc. Executive Agreement Plan (the “Plan”) and the entire Employment
Agreement executed in connection therewith. The Company will also pay Executive accrued but unused vacation pay for all of his or her accrued but unused vacation days. 
 (b) Other Benefits. The Executive will be eligible to receive other benefits as described in the Plan. 

(c) Unemployment Compensation. The Company will not contest the decision of the appropriate regulatory
commission regarding unemployment compensation that may be due to the Executive. 
 2. In consideration for and contingent
upon the Executive’s right to receive the severance pay and other benefits described in the Plan and the Employment Agreement and this Release, Executive hereby agrees as follows: 
 (a) General Waiver and Release. Except as provided in Paragraph 2.(f) below, Executive and any person acting
through or under the Executive hereby release, waive and forever discharge the Company, its past subsidiaries and its past and present affiliates, and their respective successors and assigns, and their respective present or past officers, trustees,
directors, shareholders, executives and agents of each of them, from any and all claims, demands, actions, liabilities and other claims for relief and remuneration whatsoever (including without limitation attorneys’ fees and expenses), whether
known or unknown, absolute, contingent or otherwise (each, a “Claim”), arising or which could have arisen up to and including the date of his execution of this Release, arising out of or relating to Executive’s employment or cessation
and termination of employment, or any other written or oral agreement, any change in Executive’s employment status, any benefits or compensation, any tortious injury, breach of contract, wrongful discharge (including any Claim for constructive
discharge), infliction of emotional distress, slander, libel or defamation of character, and any Claims arising under Title VII of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the Americans With Disabilities Act, the
Rehabilitation Act of 1973, the Equal Pay Act, the Older Workers Benefits Protection Act, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act of 1974, or any other federal, state or local statute, law, ordinance,
regulation, rule or executive order, any tort or contract 

 
claims, and any of the claims, matters and issues which could have been asserted by Executive against the Company or its subsidiaries and affiliates in any
legal, administrative or other proceeding. Executive agrees that if any action is brought in his or her name before any court or administrative body, Executive will not accept any payment of monies in connection therewith. 
 (b) Waiver Under Section 1542 of the California Civil Code. Executive, for Executive’s predecessors,
successors and assigns, hereby waives all rights which Executive may have under Section 1542 of the Civil Code of the State of California, which reads as follows: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially
affected his settlement with the debtor. 
 This waiver is not a mere recital but is a knowing waiver of the rights and
benefits otherwise available under said Section 1542. 
 (c) Miscellaneous. Executive agrees that
this Release specifies payment from the Company to himself or herself, the total of which meets or exceeds any and all funds due him or her by the Company, and that he or she will not seek to obtain any additional funds from the Company with the
exception of non-reimbursed business expenses. This covenant does not preclude the Executive from seeking workers compensation, unemployment compensation, or benefit payments under the Company’s employee benefit plans that could be due him or
her. 
 (d) Non-Competition, Non-Solicitation and Confidential Information and Inventions. Executive
warrants that Executive has, and will continue to comply fully with Sections 9 and 10 of the Employment Agreement and the requirements of the Plan. 
 (e) THE COMPANY AND THE EXECUTIVE AGREE THAT THE SEVERANCE PAY AND BENEFITS DESCRIBED IN THIS RELEASE AND THE PLAN ARE CONTINGENT UPON THE EXECUTIVE SIGNING THIS RELEASE. THE EXECUTIVE FURTHER
UNDERSTANDS AND AGREES THAT IN SIGNING THIS RELEASE, EXECUTIVE IS RELEASING POTENTIAL LEGAL CLAIMS AGAINST THE COMPANY. THE EXECUTIVE UNDERSTANDS AND AGREES THAT IF HE OR SHE DECIDES NOT TO SIGN THIS RELEASE, OR IF HE OR SHE REVOKES THIS RELEASE,
THAT HE OR SHE WILL IMMEDIATELY REFUND TO THE COMPANY ANY AND ALL SEVERANCE PAYMENTS AND OTHER BENEFITS HE OR SHE MAY HAVE ALREADY RECEIVED. 
 (f) The waiver contained in Section 2(a) and (b) above does not apply to any Claims with respect to: 
 (i) Any claims under employee benefit plans subject to the Employee Retirement Income Security Act of 1974
(“ERISA”) in accordance with the terms of the applicable employee benefit plan, 
  

 2 

 (ii) Any Claim under or based on a breach of this Release, 
 (iii) Rights or Claims that may arise under the Age Discrimination in Employment Act after the date that Executive signs
this Release, 
 (iv) Any right to indemnification or directors and officers liability insurance coverage to
which the Executive is otherwise entitled in accordance with the Company’s articles or by-laws. 
 (v)
EXECUTIVE ACKNOWLEDGES THAT HE OR SHE HAS READ AND IS VOLUNTARILY SIGNING THIS RELEASE. EXECUTIVE ALSO ACKNOWLEDGES THAT HE OR SHE IS HEREBY ADVISED TO CONSULT WITH AN ATTORNEY, HE OR SHE HAS BEEN GIVEN AT LEAST 30 DAYS TO CONSIDER THIS RELEASE
BEFORE THE DEADLINE FOR SIGNING IT, AND HE OR SHE UNDERSTANDS THAT HE OR SHE MAY REVOKE THE RELEASE WITHIN SEVEN (7) DAYS AFTER SIGNING IT. IF NOT REVOKED WITHIN SUCH PERIOD, THIS RELEASE WILL BECOME EFFECTIVE ON THE EIGHTH (8) DAY AFTER
IT IS SIGNED BY EXECUTIVE. 
 BY SIGNING BELOW, BOTH THE COMPANY AND EXECUTIVE AGREE THAT THEY UNDERSTAND AND ACCEPT EACH PART OF THIS
RELEASE. 
  

							
	  
	 		 	  

	 (Executive)
	 		 	 DATE

			
	 WELLPOINT, INC.
	 		 	
				
	 By:
	 	  
	 		 	  

		 		 		 	 DATE

  

 3 

 EXHIBIT C 
 DESIGNATED PLANS 
 Anthem 2001 Stock Incentive Plan 
 WellPoint 2006 Incentive Compensation PlanSecond Amended and Restated Loan Agreement

 Exhibit 10.11 
 SECOND AMENDED AND RESTATED LOAN AGREEMENT 
 DATED AS OF MARCH 23, 2006 
 BY AND BETWEEN 
 LUMBER LIQUIDATORS, INC.,

 AND 
 BANK OF AMERICA, N.A. 

 TABLE OF CONTENTS 
  

							
	 ARTICLE 1    TERM LOAN
	  	2
				
		 	 SECTION 1.1
	  	GENERAL DESCRIPTION; CONSOLIDATION	  	2
		 	 SECTION 1.2
	  	TERM LOAN NOTE	  	2
		 	 SECTION 1.3
	  	INTEREST RATE	  	2
		 	 SECTION 1.4
	  	PREPAYMENTS	  	2
		 	 SECTION 1.5
	  	APPLICABLE MARGIN	  	3
		 	 SECTION 1.6
	  	OTHER INTEREST RATE PROVISIONS	  	3
		
	 ARTICLE 1A    REVOLVING CREDIT FACILITY
	  	4
				
		 	 SECTION 1A.1
	  	GENERAL DESCRIPTION	  	4
		 	 SECTION 1A.2
	  	REVOLVING CREDIT NOTE	  	5
		 	 SECTION 1A.3
	  	PURPOSE	  	5
		 	 SECTION 1A.4
	  	REPAYMENT TERMS; INTEREST RATE	  	5
		 	 SECTION 1A.5
	  	MANNER OF BORROWING	  	5
		 	 SECTION 1A.6
	  	PREPAYMENTS	  	6
		 	 SECTION 1A.7
	  	UNUSED COMMITMENT FEE	  	6
		 	 SECTION 1A.8
	  	LETTERS OF CREDIT	  	6
		
	 ARTICLE 2    CONDITIONS PRECEDENT
	  	6
				
		 	 SECTION 2.1.
	  	APPROVAL OF BANK’S COUNSEL	  	6
		 	 SECTION 2.2
	  	COMPLIANCE	  	6
		 	 SECTION 2.3
	  	TERM LOAN NOTE AND REVOLVING CREDIT NOTE	  	7
		 	 SECTION 2.4
	  	SECURITY AGREEMENT	  	7
		 	 SECTION 2.5
	  	COMPANY ORGANIZATIONAL DOCUMENTS; EVIDENCE OF COMPANY ACTION	  	7
		 	 SECTION 2.6
	  	BANK AS PRINCIPAL DEPOSITORY	  	7
		 	 SECTION 2.7
	  	OTHER CONDITIONS	  	7
		
	 ARTICLE 2A    CONDITIONS PRECEDENT TO FUTURE INDEBTEDNESS
	  	7
				
		 	 SECTION 2A.1.
	  	 APPROVAL OF BANK’S COUNSEL
	  	7
		 	 SECTION 2A.2
	  	COMPLIANCE	  	8
		 	 SECTION 2A.3
	  	INDEBTEDNESS DOCUMENTS	  	8
		 	 SECTION 2A.4
	  	EVIDENCE OF INSURANCE	  	8
		 	 SECTION 2A.5
	  	OTHER CONDITIONS	  	8
		
	 ARTICLE 3    REPRESENTATIONS AND WARRANTIES
	  	8
				
		 	 SECTION 3.1
	  	 SUBSIDIARIES
	  	8
		 	 SECTION 3.2
	  	ORGANIZATION AND EXISTENCE	  	8
		 	 SECTION 3.3
	  	AUTHORITY	  	8
		 	 SECTION 3.4
	  	BINDING AGREEMENTS	  	9
		 	 SECTION 3.5
	  	LITIGATION	  	9
		 	 SECTION 3.6
	  	NO CONFLICTING AGREEMENTS	  	9
		 	 SECTION 3.7
	  	FINANCIAL CONDITION	  	9
		 	 SECTION 3.8
	  	TITLE TO PROPERTIES	  	9
		 	 SECTION 3.9
	  	EMPLOYEE BENEFIT PENSION PLANS	  	9
		 	 SECTION 3.10
	  	NO DEFAULTS	  	10
		 	 SECTION 3.11
	  	TAXES	  	10
		 	 SECTION 3.12
	  	ENVIRONMENTAL COMPLIANCE	  	10
		 	 SECTION 3.13
	  	FEDERAL REGULATIONS	  	10
		 	 SECTION 3.14
	  	ACCURACY OF INFORMATION	  	10
		 	 SECTION 3.15
	  	COMPLIANCE WITH LAWS	  	11

  

 - i - 

							
	 ARTICLE 4    AFFIRMATIVE COVENANTS
	  	11
				
		 	 SECTION 4.1
	  	FINANCIAL INFORMATION	  	11
		 	 SECTION 4.2
	  	 BANK AS PRINCIPAL DEPOSITORY
	  	12
		 	 SECTION 4.3
	  	TAXES	  	12
		 	 SECTION 4.4
	  	PAYMENT OF OBLIGATIONS	  	12
		 	 SECTION 4.5
	  	INSURANCE	  	12
		 	 SECTION 4.6
	  	EXISTENCE	  	12
		 	 SECTION 4.7
	  	LICENSES AND PERMITS	  	12
		 	 SECTION 4.8
	  	MAINTENANCE OF PROPERTIES	  	13
		 	 SECTION 4.9
	  	EMPLOYEE BENEFIT PENSION PLANS	  	13
		 	 SECTION 4.10
	  	COMPLIANCE WITH APPLICABLE LAWS	  	13
		 	 SECTION 4.11
	  	NOTICE OF LIABILITIES	  	13
		 	 SECTION 4.12
	  	FIXED CHARGE COVERAGE RATIO	  	13
		 	 4.13
	  	FUNDED DEBT TO EBITDAR RATIO	  	14
		
	 ARTICLE 5    NEGATIVE COVENANTS
	  	14
				
		 	 SECTION 5.1
	  	[INTENTIONALLY OMITTED].	  	14
		 	 SECTION 5.2
	  	MORTGAGES AND PLEDGES	  	14
		 	 SECTION 5.3
	  	MERGER, ACQUISITION, OR SALE OF ASSETS	  	14
		 	 SECTION 5.4
	  	CONTINGENT LIABILITIES	  	14
		 	 SECTION 5.5
	  	LOANS	  	15
		 	 SECTION 5.6
	  	CHARACTER OF BUSINESS	  	15
		
	 ARTICLE 6    EVENTS OF DEFAULT AND REMEDIES
	  	15
				
		 	 SECTION 6.1
	  	 EVENTS OF DEFAULT
	  	15
		 	 SECTION 6.2
	  	REMEDIES	  	16
		
	 ARTICLE 7    MISCELLANEOUS PROVISIONS
	  	17
				
		 	 SECTION 7.1
	  	INDEMNIFICATION	  	17
		 	 SECTION 7.2
	  	AUTODEBIT	  	17
		 	 SECTION 7.3
	  	COSTS AND EXPENSES	  	18
		 	 SECTION 7.4
	  	CUMULATIVE RIGHTS AND NO WAIVER	  	18
		 	 SECTION 7.5
	  	ARBITRATION AND WAIVER OF JURY TRIAL	  	18
		 	 SECTION 7.6
	  	NOTICES	  	20
		 	 SECTION 7.7
	  	APPLICABLE LAW	  	21
		 	 SECTION 7.8
	  	MODIFICATIONS	  	21
		 	 SECTION 7.9
	  	SURVIVORSHIP	  	21
		 	 SECTION 7.10
	  	EXECUTION IN COUNTERPARTS	  	21
		 	 SECTION 7.11
	  	HEADINGS	  	21
		 	 SECTION 7.12
	  	ENTIRE AGREEMENT; CONTROLLING DOCUMENT	  	21
		 	 SECTION 7.13
	  	REFERENCES	  	22
		 	 SECTION 7.14
	  	ACKNOWLEDGMENT BY THE BANK	  	22

  

 - ii - 

 SECOND AMENDED AND RESTATED
LOAN AGREEMENT 
 THIS SECOND AMENDED AND
RESTATED LOAN AGREEMENT (this “Agreement”) is dated as of the 23rd day of March, 2006, by and between LUMBER LIQUIDATORS, INC. (the
“Company”), a Massachusetts corporation, with a principal office located at 3000 John Deere Run, Toano, Virginia 23169, and BANK OF AMERICA, N.A. (the “Bank”), a national
banking association, with an office located at 1111 East Main Street, Richmond, Virginia 23219. 
 The Company and the Bank are parties
to an Amended and Restated Loan Agreement dated as of January 21, 2005 (the “Original Loan Agreement”), pursuant to which the Bank made at term loan to the Company (“Term Loan #1”), evidenced by an Amended and
Restated Term Loan Note dated June 11, 2004, in the stated principal amount of $6,500,000, made by the Company and payable to the order of the Bank. 
 Pursuant to the terms of a Second Amended and Restated Promissory Note dated February 2, 2005, in the stated principal amount of $5,000,000, made by the Company and payable to the order of the Bank, the Bank made
a draw-down term loan to the Company (“Term Loan #2”). 
 Pursuant to the terms of a Promissory Note dated July 19,
2005, in the stated principal amount of $2,000,000, made by the Company and payable to the order of the Bank, the Bank made a second draw-down term loan to the Company (“Term Loan #3” and, together with Term Loan #1 and Term Loan
#2, the “Existing Indebtedness”). 
 The Bank may from time to time in the future extend additional credit to or make other
financial accommodation available for the benefit of the Company (the “Future Indebtedness” and, together with the Existing Indebtedness, the “Indebtedness”), in each case pursuant to documents evidencing,
governing, guaranteeing, securing or otherwise executed by the Company or any other party in connection with such Future Indebtedness, including without limitation commitment letters, promissory notes, loan agreements, security agreements, guaranty
agreements, deeds of trust, letters of credit or reimbursement agreements or tri-party financing agreements (the documents relating to the Existing Indebtedness and the Future Indebtedness, together with the Loan Documents (as hereinafter defined),
being hereinafter referred to as the “Indebtedness Documents”). The Term Loan Note (as hereinafter defined), the Revolving Credit Note (as hereinafter defined) and each other promissory note executed and delivered by the Company to
the Bank to evidence the Existing Indebtedness and the Future Indebtedness shall be referred to herein individually as a “Note” and collectively as the “Notes.” 
 At the request of the Company, the Bank has agreed to amend and restate the terms of the Original Loan Agreement in order to (i) consolidate Term
Loan #1, Term Loan #2 and Term Loan #3 into a single term loan, (ii) provide for a revolving credit facility in the maximum principal amount of $5,000,000, (iii) modify the interest rates and certain financial and other covenants set forth
in the Original Loan Agreement, and (iv) provide that all Indebtedness will be governed by the terms and be subject to the conditions contained herein, as well as the terms and conditions set forth in the applicable Indebtedness Documents.

  

 - 1 - 

 Accordingly, the Company and the Bank agree that the Original Loan Agreement is hereby amended and
restated in its entirety as follows: 
 ARTICLE 1 
 TERM LOAN 
 Section 1.1 General Description; Consolidation.
The Company and the Bank acknowledge that the Bank has made Term Loan #1, Term Loan #2 and Term Loan #3 to the Company, and that the current aggregate outstanding principal balance of Term Loan #1, Term Loan #2 and Term Loan #3 on the date of this
Agreement is $9,880,533.62. The Company and the Bank agree that Term Loan #1, Term Loan #2 and Term Loan #3 shall be consolidated into a single term loan in the original principal amount of Nine Million Eight Hundred Eighty Thousand Five Hundred
Thirty-Three and 62/100 Dollars ($9,880,533.62) (the “Term Loan”). 
 Section 1.2 Term Loan Note. The
Company’s obligation to repay the Term Loan will be evidenced by a consolidated, amended and restated term loan note in the principal amount of the Term Loan, made by the Company and payable to the order of the Bank, and otherwise in form and
substance satisfactory to the Bank (as the same may be extended, amended, restated or replaced from time to time, the “Term Loan Note”), the terms of which are incorporated herein by this reference. 
 Section 1.3 Interest Rate. The outstanding principal balance of the Term Loan Note will bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at the per annum interest rate equal to the Base Rate (as hereinafter defined) plus the Applicable Margin (as hereinafter defined). For purposes hereof: 
 (a) “Base Rate” means, subject to Section 1.6, the LIBOR Daily Floating Rate; provided that the Company shall have the option,
exercisable at any time by notice to the Bank, to convert the Base Rate from the LIBOR Daily Floating Rate to the Prime Rate (as hereinafter defined). The Base Rate shall be adjusted with each change in the LIBOR Daily Floating Rate or Prime Rate,
as applicable. 
 (b) “LIBOR Daily Floating Rate” for any day means the fluctuating rate of interest (rounded upwards, if
necessary to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as the 1 month London interbank offered rate for deposits in United States Dollars at approximately 11:00 a.m. (London time) on the second preceding
business day, as adjusted from time to time in Lender’s sole discretion for then-applicable reserve requirements, deposit insurance assessment rates and other regulatory costs. 
 (c) “Prime Rate” for any day means the rate of interest equal to the Bank’s “Prime Rate” of interest publicly announced
from time to time by the Bank. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of a change in the Bank’s “Prime Rate”. 
 Section 1.4 Prepayments. The Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank
as the result of the Term Loan Note bearing interest at the LIBOR Daily Floating Rate), prepay amounts outstanding under the Term Loan Note in whole or in part at any time and from time to time, provided that (i) all 

  

 - 2 - 

 
accrued interest is paid at the time the Term Loan Note is paid in full and (ii) all partial prepayments shall be applied first to the interest accrued
to the prepayment date and then to the reduction of principal installments due under the Term Loan Note in their inverse chronological order of maturity, or in such other order as the Bank may determine in its sole and absolute discretion. The Term
Loan is not a revolving loan; the Company may not reborrow amounts voluntarily prepaid under the Term Loan Note. 
 Section 1.5
Applicable Margin. The term “Applicable Margin” means (i) 0.90% (or -1.75% in the event the Base Rate has been converted to the Prime Rate) for the period from the date hereof through and including the first day of the
first month following receipt by the Bank of the Company’s financial statements described in Section 4.1(a) for the fiscal year ending December 31, 2005, and (ii) thereafter shall be determined by reference to the Funded Debt to
EBITDAR Ratio (as hereinafter defined) in accordance with the following table: 
  

						
	 Funded Debt to EBITDAR Ratio
	  	 Applicable Margin
 when Base Rate is
 LIBOR Daily

 Floating Rate
	 	 	 Applicable Margin
 when Base Rate is
 Prime
Rate

	 Equal to or higher than 1.75 to 1
	  	1.15	%	 	-1.50
	 Equal to or higher than 1.25 to 1 but lower than 1.75 to 1
	  	0.90	%	 	-1.75
	 Equal to or higher than 0.75 to 1 but lower than 1.25 to 1
	  	0.65	%	 	-2.00
	 Lower than 0.75 to 1
	  	0.45	%	 	-2.20

 Except during the initial period described in clause (i) above, the Applicable Margin will be
automatically adjusted as of the first day of the first month following receipt by the Bank of the Company’s financial statements pursuant to Section 4.1(a) or Section 4.1(b) demonstrating to the Bank’s reasonable satisfaction
that there has been a change in the Funded Debt to EBITDAR Ratio which would cause a change in the Applicable Margin in accordance with the preceding table. Any such change shall apply to all Notes that, by their terms, bear interest at a rate which
incorporates the “Applicable Margin” set forth in this Agreement. At all times after and during the continuance of an Event of Default with respect to the Company’s obligations under Section 4.1(a) or Section 4.1(b) until
the delivery of the applicable financial statements required pursuant thereto, the Applicable Margin shall be 1.15% (or -1.50% in the event the Base Rate has been converted to the Prime Rate). 
 Section 1.6 Other Interest Rate Provisions. 
 (a) If either (i) the introduction of or any change (including, without limitation, any change by way of imposition or increase of reserve requirements other than those included in the computation of the LIBOR
Daily Floating Rate but excluding any income tax on the overall income of the Bank) after the date hereof in or in the interpretation of any law or regulation, or (ii) the compliance by the Bank with any guideline or directive (whether or not

  

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having the force of law) adopted or otherwise asserted after the date hereof by any central bank, the United States, any state or other political subdivision
thereof, or any court, agency, department, commission, board, bureau or instrumentality of any of the foregoing (each, a “Governmental Authority”), shall result in an increase in the cost to the Bank of making, funding or
maintaining any Indebtedness bearing interest at a rate based on the LIBOR Daily Floating Rate or reduce the amount receivable by the Bank with respect to such Indebtedness, then the Company shall from time to time, upon demand by the Bank, pay to
the Bank additional amounts sufficient to indemnify the Bank against such increased cost incurred or reduction in amount received. A certificate in reasonable detail as to the amount of such increased cost or reduction in amount and method of
calculation will be submitted to the Company by the Bank and will be conclusive absent manifest error. 
 (b) If the Bank determines that, by
reason of circumstances affecting the London interbank market generally, deposits in Eurodollars in the applicable amounts or for the applicable periods are not being quoted or offered to the Bank, the Bank shall promptly notify the Company,
whereupon (unless the Company and the Bank shall have agreed on an alternative method of determining the interest rate for any Indebtedness bearing interest at a rate based on the LIBOR Daily Floating Rate) the definition of “Base
Rate” applicable to such Indebtedness shall automatically be converted to the Prime Rate. The Company acknowledges and agrees that the Prime Rate is a reference used in determining interest rates on certain loans made by the Bank and is not
intended to be the lowest rate of interest charged on any extension of credit to any customer. 
 (c) If, after the date of this Agreement,
the introduction of, or any change in, any applicable law, rule or regulation or in the interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or compliance by the Bank with
any guideline or directive (whether or not having the force of law) of any such Governmental Authority, shall make it unlawful or impossible for the Bank to make, maintain or fund any Indebtedness at a rate based on the LIBOR Daily Floating Rate,
the Bank shall promptly notify the Company, and the obligation of the Bank to make or maintain such Indebtedness at a rate based on the LIBOR Daily Floating Rate shall forthwith be suspended for the duration of such illegality or impossibility. Upon
such notice, on either (i) the last day of the then current calendar month if the Bank may lawfully continue to maintain such Indebtedness at a rate based on the LIBOR Daily Floating Rate to such day, or (ii) immediately if the Bank may
not lawfully continue to maintain such Indebtedness at a rate based on the LIBOR Daily Floating Rate to such day, the definition of “Base Rate” applicable to such Indebtedness shall automatically be converted to the Prime Rate.

 ARTICLE 1A 
 REVOLVING CREDIT FACILITY 
 Section 1A.1 General Description. Upon
the terms and subject to the conditions contained in this Agreement (including, without limitation, the conditions contained in Article 2), the Bank agrees to make a revolving credit facility (the “Revolving Credit Facility”)
available to the Company, and to make advances under the Revolving Credit Facility to the Company from time to time, during the period from the date of this Agreement until the earlier to occur of (i) May 31, 2008, or (ii) the date on
which the Bank’s obligation to make further 

  

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advances under the Revolving Credit Facility is terminated pursuant to Section 6.2 (the “Revolving Credit Termination Date”); provided
that the aggregate principal amount of all outstanding advances under the Revolving Credit Facility plus the aggregate stated amount of any Letters of Credit (as hereinafter defined) issued by the Bank for the account of the Company shall not at any
time exceed Five Million and No/100 Dollars ($5,000,000) (the “Revolving Credit Facility Cap”). Within such limits, the Company may borrow, repay and reborrow under the Revolving Credit Facility on or after the date of this
Agreement and prior to the Revolving Credit Termination Date. 
 Section 1A.2 Revolving Credit Note. The Company’s
obligation to repay the advances made under the Revolving Credit Facility will be evidenced by a revolving credit note in the principal amount of the Revolving Credit Facility Cap, made by the Company and payable to the order of the Bank, and
otherwise in form and substance satisfactory to the Bank (as the same may be extended, amended, restated or replaced from time to time, the “Revolving Credit Note”), the terms of which are incorporated herein by this reference. The
Company acknowledges and agrees that the Bank may endorse on the Revolving Credit Note (or any schedule attached thereto) or otherwise make in the Bank’s records an appropriate notation of the date and amount of each advance made under the
Revolving Credit Facility and the date and amount of any payments or prepayments of the Revolving Credit Facility. Such endorsements or other notations shall, in the absence of manifest error, be conclusive as to the outstanding principal balance of
the Revolving Credit Facility; provided, however, the Bank’s error in making or failure to make any such endorsement or notation shall not limit or otherwise affect the obligations of the Company hereunder or under the Revolving Credit Note.

 Section 1A.3 Purpose. The Company will use advances under the Revolving Credit Facility for short-term working capital and for
other general corporate purposes. 
 Section 1A.4 Repayment Terms; Interest Rate. 
 (a) Accrued interest on the outstanding principal balance of the Revolving Credit Facility as it
exists from time to time will be due and payable on the first (1st) day of each month, on any date on which the Revolving Credit Facility is paid in
full and on the Revolving Credit Termination Date. On the Revolving Credit Termination Date, the entire outstanding principal balance of the Revolving Credit Facility, together with all unpaid accrued interest thereon and all other amounts then
owing thereunder, will be immediately due and payable in full. 
 (b) The outstanding principal balance of the Revolving Credit
Facility as it exists from time to time will bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at the per annum interest rate equal to the Base Rate plus the Applicable Margin. 
 Section 1A.5 Manner of Borrowing. Unless the Company and the Bank agree to the contrary in writing, each advance made by the Bank under the
Revolving Credit Facility will be made at the office of the Bank set forth at the beginning of this Agreement by crediting the amount of such advance to the general deposit account of the Company maintained at the Bank. The Company acknowledges and
agrees that the Bank may make advances under the Revolving 

  

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Credit Facility (i) upon receipt of a written or telephonic request therefor from any person the Bank reasonably believes to be an authorized
representative of the Company, or (ii) pursuant to the terms of the automatic borrowing feature described in any AutoBorrow Service Agreement entered into by and between the Company and the Bank on or after the date hereof. 
 Section 1A.6 Prepayments. 
 (a)
Voluntary. The Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank as the result of the Revolving Credit Facility bearing interest at the LIBOR Daily Floating Rate), prepay amounts
outstanding under the Revolving Credit Facility in whole or in part in any amount at any time and from time to time. 
 (b) Mandatory.
If, at any time, the outstanding principal balance of the Revolving Credit Facility plus the aggregate stated amount of any Letters of Credit issued by the Bank for the account of the Company exceeds the Revolving Credit Facility Cap, the Company
will immediately prepay the Revolving Credit Facility, without premium or penalty, in an amount sufficient to eliminate such excess. 
 Section 1A.7 Unused Commitment Fee. Commencing on April 1, 2006 (for the period from the date hereof until March 31 2006), and continuing on the first day of each July, October, January and April thereafter and on the
Revolving Credit Termination Date, the Company shall pay to the Bank a per annum non-refundable unused commitment fee equal to 0.25% of the difference between the Revolving Credit Facility Cap and the average outstanding principal balance of the
Revolving Credit Facility during the preceding three (3) month period. 
 Section 1A.8 Letters of Credit. The Company may
from time to time apply to the Bank for one or more letters of credit (each, a “Letter of Credit” and, collectively, the “Letters of Credit”) pursuant to applications and such other documentation as the Bank shall
require (collectively, the “Letter of Credit Documents”). Each Letter of Credit and any related Letter of Credit Documents shall constitute Indebtedness Documents hereunder. 
 ARTICLE 2 
 CONDITIONS PRECEDENT

 The obligation of the Bank to enter into this Agreement is subject to the following conditions precedent: 
 Section 2.1. Approval of Bank’s Counsel. All legal matters incident to the Indebtedness, including without limitation all documents and
opinions, shall be satisfactory to counsel for the Bank. 
 Section 2.2 Compliance. At the time of the execution of this
Agreement: 
 (a) Loan Documents. The Company shall have complied and shall then be in compliance with all of the terms, covenants and
conditions of this Agreement, the Term Loan Note, the Revolving Credit Note, the Security Agreement (as hereinafter defined) and all other documents, instruments or agreements to which the Company is a party that evidence, secure or otherwise relate
to the Indebtedness (all documents described in this paragraph (a) being collectively referred to herein as the “Loan Documents”; 
  

 - 6 - 

 (b) No Material Adverse Change. There shall not have occurred any material adverse change in the
financial condition or results of operations of the Company, and the Bank shall not have determined in good faith that the prospect of payment or performance of the Indebtedness has been materially impaired; 
 (c) No Default. There shall exist no Event of Default and no event shall have occurred or condition exist which, with the giving of notice or the
lapse of time, or both, would constitute an Event of Default; and 
 (d) Representations and Warranties. The representations and
warranties contained in Article 4 hereof shall be true as of the date hereof. 
 Section 2.3 Term Loan Note and Revolving Credit
Note. The Company shall have executed and delivered to the Bank the Term Loan Note and the Revolving Credit Note. 
 Section 2.4
Security Agreement. The Company shall have executed and delivered to the Bank an amended and restated security agreement in form and substance satisfactory to the Bank (the “Security Agreement”), granting the Bank a first
priority security interest in all of the Company’s inventory, whether now existing or hereafter acquired. 
 Section 2.5 Company
Organizational Documents; Evidence of Company Action. The Company shall have delivered to the Bank (a) a certificate to the effect that the articles of incorporation and the bylaws of the Company previously delivered to the Bank have not
been amended, restated or otherwise modified, (b) certified copies of all actions by the board of directors of the Company authorizing and approving the execution, delivery and performance of the Loan Documents, and (c) an incumbency
certificate as to the officers of the Company executing the Loan Documents. 
 Section 2.6 Bank as Principal Depository. The
Company shall have established the Bank as its principal depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 Section 2.7 Other Conditions. The Bank shall have received any and all other certificates, statements, opinions and other documents required
by the terms of this Agreement or otherwise requested by the Bank. 
 ARTICLE 2A 
 CONDITIONS PRECEDENT TO FUTURE INDEBTEDNESS 
 The obligation of the Bank to fund any Future Indebtedness or any advance under any Note is subject to the following conditions precedent: 
 Section 2A.1. Approval of Bank’s Counsel. All legal matters incident to the Indebtedness, including without limitation all documents and
opinions, shall be satisfactory to counsel for the Bank. 
  

 - 7 - 

 Section 2A.2 Compliance. At the time of the funding of such Future Indebtedness or such
advance: (a) the Company shall have complied and shall then be in compliance with all of the terms, covenants and conditions of all Indebtedness Documents to which it is a party, (b) there shall not have occurred any material adverse
change in the financial condition or results of operations of the Company, and the Bank shall not have determined in good faith that the prospect of payment or performance of any Note has been materially impaired, (c) there shall exist no Event
of Default and no event shall have occurred or condition exist which, with the giving of notice or the lapse of time, or both, would constitute an Event of Default, and (d) the representations and warranties contained in Article 4 hereof
shall, except to the extent that they relate to an earlier date, be true with the same effect as though such representations and warranties had been made at such time. The acceptance of such Future Indebtedness or such advance shall be deemed a
representation that each of the conditions contained in this Section 2A.2 has been satisfied. 
 Section 2A.3 Indebtedness
Documents. With respect to Future Indebtedness, the Company and all other necessary parties shall have executed and delivered to the Bank the Indebtedness Documents required by the Bank in connection with such Future Indebtedness, all in form
and substance satisfactory to the Bank. 
 Section 2A.4 Evidence of Insurance. The Company shall have delivered to the Bank
evidence satisfactory to the Bank that all insurance required by the terms of the Indebtedness Documents is in full force and effect. 
 Section 2A.5 Other Conditions. The Bank shall have received any and all other certificates, resolutions, statements, opinions and other documents required by the terms of the Indebtedness Documents or otherwise requested by the
Bank. 
 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES 
 The Company represents and warrants to the
Bank (which representations and warranties shall survive the execution of each Note and the making of each advance thereunder) that: 
 Section 3.1 Subsidiaries. The Company has no subsidiaries. 
 Section 3.2 Organization and Existence. The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the Commonwealth of Massachusetts, has the requisite power to own its property and carry on its business as now being conducted, and is duly
qualified to do business in and is in good standing in each jurisdiction in which the character of the properties owned by it therein or in which the transaction of its business makes such qualification necessary. 
 Section 3.3 Authority. The Company has full power and authority to (i) execute and deliver this Agreement and the other Indebtedness
Documents to which it is a party, (ii) make the borrowings hereunder and thereunder, and (iii) incur the obligations provided for herein and therein, all of which have been duly authorized by all proper and necessary corporate action. No
consent or approval of the stockholders of the Company which has not been obtained and no consent or approval of, notice to or filing with any public authority which has not been obtained or made is required as a condition to the validity of or the
performance by it of its obligations under this Agreement or the other Indebtedness Documents to which it is a party. 
  

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 Section 3.4 Binding Agreements. Each of the Indebtedness Documents to which it is a party
constitutes, or when executed and delivered to the Bank will constitute, its valid and legally binding obligations enforceable in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and other
laws of general application relating to the enforcement of creditors’ rights generally, and (ii) general principles of equity. 
 Section 3.5 Litigation. Except as previously disclosed to the Bank in writing, there are no actions, suits, proceedings or investigations pending or, so far as its officers, members or managers, as applicable, know, threatened
before any court or administrative agency naming it as a party that, in the opinion of its officers, members or managers, as applicable, will materially adversely affect (i) its financial condition or operations, (ii) its ability to
execute, deliver or perform the terms of this Agreement or the other Indebtedness Documents to which it is a party, or (iii) any of the liens the Company contemplates granting to the Bank hereunder or thereunder. 
 Section 3.6 No Conflicting Agreements. There is no provision of the organizational documents of the Company, and no provision of any existing
mortgage, lease, indenture, contract or agreement binding on it or affecting its property, that would conflict with or in any way prevent the execution, delivery, or carrying out of the terms of the Indebtedness Documents to which it is a party.

 Section 3.7 Financial Condition. The financial statements heretofore delivered to the Bank fairly present in all material
respects its financial condition and the results of its operations and changes in financial position as of the dates and for the periods referred to therein and have been prepared in accordance with generally accepted accounting principles and
practices applied on a consistent basis throughout the period involved. There are no liabilities, direct or indirect, fixed or contingent, that have not been disclosed to the Bank in writing. There has been no material adverse change in its
financial condition or operations since the date of the financial statements described in the first sentence of this Section 3.7. 
 Section 3.8 Title to Properties. It owns and has good and marketable title to, or has a valid and enforceable leasehold interest in, all of its assets and properties, except to the extent that failure to so own good and
marketable title or have a valid and enforceable leasehold interest would not reasonably be expected to have a material adverse effect on its financial condition or operations or its ability to perform its obligations under the Indebtedness
Documents to which it is a party. Except as previously disclosed to the Bank in writing, such assets and properties are free and clear of all liens or other encumbrances, other than liens or other encumbrances permitted by Section 5.2 hereof.

 Section 3.9 Employee Benefit Pension Plans. It is in compliance in all material respects with all applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Neither a Reportable Event (as defined in Section 4043 of ERISA) nor a Prohibited Transaction (as defined in Section 406 of ERISA) for which there is
not an applicable exemption has occurred or exists in connection with any employee benefit pension plan covered by ERISA (including any plan of any member of a controlled group of corporations 

  

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or entities and all trades and businesses (whether or not incorporated) under common control which, together with it, are treated as a single employer under
Section 414 of the Internal Revenue Code of 1986, as amended) (each, a “Plan”). No notice of intent to terminate any Plan has been filed, and no Plan has been terminated. No circumstances exist which might constitute grounds
for the termination of any Plan by the Pension Benefit Guaranty Corporation (the “PBGC”) or for the appointment of any trustee to administer a Plan, nor has the PBGC instituted any such proceedings. No circumstances exist which
might constitute grounds for the imposition of a lien in favor of any Plan pursuant to Section 302 of ERISA. It has not completely or partially withdrawn from a Multiemployer Plan (as described in Section 4001(a)(3) of ERISA). It has met
the minimum funding requirements of ERISA with respect to each of the Plans. It has incurred no liability to the PBGC under ERISA. 
 Section 3.10 No Defaults. It is not in default in the payment of the principal of or any interest on any material indebtedness or in default under any instrument under or subject to which any such indebtedness has been incurred,
and no event has occurred under the provisions of any such instrument which, with the giving or notice or the lapse of time, or both, would constitute a default or an event of default thereunder. 
 Section 3.11 Taxes. It has filed or caused to be filed all tax returns which are required to be filed by it pursuant to applicable law. It
has paid, or made provision for the payment of, all taxes, assessments, fees and other governmental charges which have or may have become due pursuant to those returns or otherwise, or pursuant to any assessment received by it, except such taxes, if
any, that are being contested in good faith and by appropriate proceedings and as to which adequate reserves (determined in accordance with generally accepted accounting principles) have been provided, and no tax liens have been filed and, so far as
its officers, members or managers, as applicable, know, no claims are being asserted against it with respect to any such taxes, fees or other charges. 
 Section 3.12 Environmental Compliance. None of its property or operations violate in any material respects any federal laws, rules or regulations relating to environmental protection (including, without
limitation, regulations of the Environmental Protection Agency) or any applicable local or state law, rule, regulation or rule of common law (or any judicial interpretation thereof) relating to the environment or hazardous materials (collectively,
“Environmental Laws”). It agrees to comply strictly and timely with all remediation plans and other recommendations described in any environmental report now or hereafter prepared with respect to any of its property. 
 Section 3.13 Federal Regulations. No part of the proceeds of the Indebtedness will be used, directly or indirectly, for
“purchasing” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time hereafter
in effect or for any other purpose which violates the provisions of any of the Regulations of such Board of Governors. If requested by the Bank, it will furnish to the Bank a statement to the foregoing effect in conformity with the requirements of
Federal Reserve Form U-1 referred to in Regulation U. 
 Section 3.14 Accuracy of Information. No document or instrument
executed or delivered by it or information (financial or otherwise) furnished by or on behalf of it in 

  

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connection with this Agreement, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained
herein or therein not misleading, and it has no knowledge of any fact that it has not disclosed to the Bank in writing that would reasonably be expected to have a material adverse effect on its financial condition or operations or its ability to
perform its obligations under the Indebtedness Documents to which it is a party. 
 Section 3.15 Compliance with Laws. It is in
compliance with all governmental laws and regulations applicable to the conduct of its business, except to the extent that noncompliance would not have a material adverse effect on (i) its financial condition or operations, or (ii) its
ability to execute, deliver or perform the terms of the Indebtedness Documents to which it is a party. 
 ARTICLE 4

 AFFIRMATIVE COVENANTS 
 Until payment in full of the Indebtedness and the performance of all other obligations of the Company hereunder, the Company shall: 
 Section 4.1 Financial Information. Provide (or cause to be provided) the following financial information and statements in form and content
acceptable to the Bank, and such additional information as reasonably requested by the Bank from time to time: 
 (a) Annual Financial
Statements. Within one hundred fifty (150) days after the Company’s fiscal year end, the Company’s annual financial statements. Such financial statements must be audited (with an unqualified opinion) by a certified public
accountant acceptable to the Bank, and prepared on a consolidated basis. 
 (b) Quarterly Financial Statements. Within forty-five
(45) days after the end of each fiscal quarter of the Company (including the last fiscal quarter in each fiscal year), the Company’s quarterly financial statements, certified and dated by an authorized financial officer of the Company. The
financial statements may be prepared by the Company, and shall be prepared on a consolidated basis. 
 (c) Management Letters.
Promptly, upon sending or receipt, copies of any management letters and correspondence relating to management letters, sent or received by the Company to or from the Company’s auditor, or, if no management letter is prepared, within thirty
(30) days of providing the annual audited financial statements in accordance with paragraph (a) above, a letter from such auditor stating that no deficiencies were noted that would otherwise be addressed in a management letter. 

(d) Compliance Certificates. Within the period(s) provided in paragraphs (a) and (b) above, a compliance certificate in form and
substance satisfactory to the Bank, signed by an authorized financial officer of the Company setting forth (i) the information and computations (in sufficient detail) to establish that the Company is in compliance with all financial covenants
at the end of the period covered by the financial statements then being furnished, and (ii) whether there existed or had occurred as of the date of such financial statements, and whether there exists or has occurred as of the date of the
certificate, any event or condition which, with the giving of notice or the lapse of time, or both, would constitute an Event of Default and, if any such event has occurred or condition exists, specifying the nature thereof and the action the
Company is taking or proposes to take with respect thereto. 
  

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 Section 4.2 Bank as Principal Depository. Maintain the Bank as its principal depository bank,
including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 Section 4.3 Taxes.
Pay and discharge all taxes, assessments, and governmental charges upon it, its income, and its properties prior to the date on which penalties are attached thereto, unless and to the extent only that (i) such taxes, assessments, and
governmental charges are being contested in good faith and by appropriate proceedings, and (ii) adequate reserves (determined in accordance with generally accepted accounting principles) have been set aside on its books with respect to such
tax, assessment or charge so contested. 
 Section 4.4 Payment of Obligations. Pay and discharge at or before their maturity all
of its material indebtedness and other material obligations and liabilities, unless and to the extent that (i) such indebtedness and other obligations are being contested in good faith and by appropriate proceedings, and (ii) adequate
reserves (determined in accordance with generally accepted accounting principles) have been set aside on its books with respect to such indebtedness, obligation or liability. 
 Section 4.5 Insurance. 
 (a) In
addition to any insurance required by the specific terms of the other Indebtedness Documents, maintain insurance on such of its properties, in such amounts and against such risks as are customarily maintained by similar businesses in the same
vicinity. 
 (b) Cause each of the policies of insurance relating to the coverages described above to include a standard mortgagee and loss
payable clause in favor of the Bank or show the Bank as an additional insured, as applicable. 
 (c) Cause each of the policies of insurance
relating to the coverages described above to provide for at least thirty (30) days prior notice to the Bank of any cancellation or termination thereof. 
 (d) Provide to the Bank evidence of the renewal or replacement of any of the policies of insurance relating to the coverages described above within thirty (30) days of renewal or termination date thereof.

 Section 4.6 Existence. Maintain its existence as a corporation in good standing in its jurisdiction of organization and
maintain its good standing in each jurisdiction in which the character of the properties owned by it therein or in which the transaction of its business makes such qualifications necessary. 
 Section 4.7 Licenses and Permits. Maintain all material permits, licenses, authorizations and approvals required to own and operate its
properties and businesses. 
  

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 Section 4.8 Maintenance of Properties. Maintain, preserve, and protect (i) all of its
tangible property material to the conduct of its business and keep the same in good repair, working order, and condition (ordinary wear and tear excepted), and (ii) all franchises, licenses, copyrights, trademarks and other intangible property
material to the conduct of its business, and permit the Bank and its agents to enter upon and inspect such properties upon reasonable notice and during normal business hours. 
 Section 4.9 Employee Benefit Pension Plans. Promptly during each year, (i) pay contributions that in the judgment of its officers,
members or managers, as applicable, after reasonable inquiry, are believed adequate to meet at least the minimum funding standards set forth in Sections 302 through 305 of ERISA, with respect to each Plan, if any, covered by ERISA, and
(ii) file each annual report required to be filed pursuant to Section 103 of ERISA in connection with each such Plan for each year; and notify the Bank within ten (10) days of the occurrence of a Reportable Event (as defined in
Section 4043 of ERISA) that might constitute grounds for termination of any such Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer any such Plan. 
 Section 4.10 Compliance with Applicable Laws. Comply with all applicable laws, rules, regulations and orders of any governmental authority
having jurisdiction over it, including without limitation all Environmental Laws, except where non-compliance would not adversely affect (i) its financial condition or operations, and (ii) its ability to execute, deliver or perform the
terms of the Indebtedness Documents to which it is a party. 
 Section 4.11 Notice of Liabilities. Notify the Bank promptly in
writing of (i) any condition, event, claim or act that would reasonably be expected to materially adversely affect its financial condition or operations, or any of the Bank’s rights or remedies under the Indebtedness Documents to which it
is a party, or that would reasonably be expected to result in a material fixed or contingent liability, (ii) any material litigation filed by or against it, (iii) the occurrence of any event that, with the giving of notice or the lapse of
time, or both, would constitute an event of default under any of the Indebtedness Documents to which it is a party, (iv) the occurrence of any uninsured or partially insured loss by it resulting from fire, theft, liability or property damage if
such loss is in excess of $100,000, and (v) the assumption, guarantee, endorsement or other act causing it to become surety for or upon any material obligation of any person, firm, joint venture or corporation, except by the endorsement of
negotiable instruments for deposit or collection in the ordinary course of business. 
 Section 4.12 Fixed Charge Coverage Ratio.
Maintain on a consolidated basis a Fixed Charge Coverage Ratio of greater than or equal to 1.25 to 1.0. “Fixed Charge Coverage Ratio” means the ratio of Cash Flow to the sum of the current portion of long term debt and the current
portion of capitalized lease obligations, plus interest expense on all obligations, plus actual rent paid with respect to real property. “Cash Flow” means (a) net income, after income tax, (b) less income or plus losses
from discontinued operations and extraordinary items, (c) plus depreciation, depletion, amortization and other non-cash charges, (d) plus interest expense on all obligations, (e) plus actual rent paid with respect to real property,
(f) minus dividends, withdrawals and other distributions. The Fixed Charge Coverage Ratio will be calculated at the end of each fiscal quarter of the Company, using the results of the twelve-month period ending with such fiscal quarter. The
current portion of long-term liabilities will be measured as of the 

  

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date twelve months prior to the current financial statements. Accounting terms used but not otherwise defined in this Agreement shall be determined both as
to classification of items and as to amounts in accordance with generally accepted accounting principles applied on a consistent basis. 
 4.13 Funded Debt to EBITDAR Ratio. Maintain on a consolidated basis a ratio of Funded Debt to EBITDAR not exceeding 2.25 to 1.0. “Funded Debt” means all outstanding liabilities of the Company for borrowed money and
other interest-bearing liabilities, including current and long-term debt, plus eight (8) times actual rent paid with respect to real property. “EBITDAR” means net income, after income tax, less income or plus loss from
discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus actual rent paid with respect to real property, plus depreciation, depletion, amortization and other non-cash charges. The ratio described in this
Section 4.13 is referred to herein as the “Funded Debt to EBITDAR Ratio” and will be calculated at the end of each fiscal quarter of the Company, using the results of the twelve-month period ending with such fiscal quarter.

 ARTICLE 5 
 NEGATIVE COVENANTS 
 Until payment in full of the Indebtedness and the
performance of all other obligations of the Company hereunder, the Company shall not: 
 Section 5.1 [Intentionally Omitted]. 

Section 5.2 Mortgages and Pledges. Create, incur, assume, or suffer to exist any mortgage, pledge, lien, or other encumbrance of any kind
upon, or any security interest in, any of its property or assets, whether now owned or hereafter acquired, except (i) liens for taxes not yet delinquent or being contested in good faith and by appropriate proceedings, (ii) liens in
connection with worker’s compensation, unemployment insurance, or other social security obligations, (iii) workman’s, carrier’s, or other like liens (excluding landlord’s liens) arising in the ordinary course of business
with respect to obligations that are not due or that are being contested in good faith, (iv) mortgages, pledges, liens, encumbrances and security interests in favor of the Bank, and (v) mortgages, pledges, liens, encumbrances and security
interests with respect to property or assets that do not constitute “Collateral” under the Security Agreement. 
 Section 5.3
Merger, Acquisition, or Sale of Assets. Enter into any merger or consolidation with, or acquire all or substantially all of the assets of, any person, firm, joint venture or corporation, or sell, assign, lease, or otherwise dispose of all or
substantially all of its business, properties or assets, or form or acquire any subsidiary. Notwithstanding the foregoing sentence, the Company may acquire all or substantially all of the assets of any person, firm, joint venture or corporation, or
form or acquire any subsidiary, provided that (a) the Company does not incur any additional indebtedness in connection with such transaction, and (b) such transaction, once consummated, would not result in a default under Section 4.12
or 4.13. 
 Section 5.4 Contingent Liabilities. Assume, guarantee, endorse, or otherwise become surety for or upon the material
obligation of any person, firm, joint venture, or corporation, except by the endorsement of negotiable instruments for deposit or collection in the ordinary course of business. 
  

 - 14 - 

 Section 5.5 Loans. Make any loan or extend credit to any person or entity, except for trade
credit extended in the ordinary course of its business on ordinary business terms. 
 Section 5.6 Character of Business. Change
the general character of its business as conducted on the date hereof or engage in any type of business not reasonably related to its business as presently conducted. 
 ARTICLE 6 
 EVENTS OF DEFAULT
AND REMEDIES 
 Section 6.1 Events of Default . The occurrence of any of the
following events (each, an “Event of Default”) shall constitute an event of default under this Agreement: 
 (a) default is
made in the payment of any installment of interest or principal on any Note, when and as the same becomes due and payable, whether at the stated maturity thereof, by acceleration or otherwise; or 
 (b) default is made in the due observance or performance of any term, covenant, or agreement contained in Sections 4.12 or 4.13 hereof; or

 (c) default is made in the due observance or performance of any other term, covenant, or agreement contained in this Agreement, and such
default continues unremedied for a period of thirty (30) days; or 
 (d) any representation or warranty made herein or in any of the
other Indebtedness Documents, or any statement or representation made in any certificate, report, or opinion delivered pursuant hereto or thereto proves to have been incorrect in any material respect when made; or 
 (e) the Company is generally not paying its debts as such debts become due, becomes insolvent or unable to meet its obligations as they mature, makes an
assignment for the benefit of creditors, consents to the appointment of a trustee or a receiver, or admits in writing its inability to pay its debts as they mature; or 
 (f) a trustee, receiver or custodian is appointed for the Company or for a substantial part of its properties without the consent of the Company and is not discharged within thirty (30) days; or 
 (g) any case in bankruptcy is commenced, or any reorganization, arrangement, insolvency, or liquidation proceedings are instituted, by or against the
Company and, if so commenced or instituted, are consented to by the Company or remain undismissed for a period of thirty (30) days; or 
 (h) any default is made in the performance of any other obligation incurred in connection with any indebtedness for borrowed money of the Company in an aggregate amount 

  

 - 15 - 

 
in excess of $50,000, if the effect of such default is to permit the holder of such indebtedness (or a trustee on behalf of such holder) to cause it to
become due prior to its stated maturity or to do so with the giving of notice or lapse of time, or both, or any such indebtedness becomes due prior to its stated maturity or shall not be paid when due; or 
 (i) any final judgment for the payment of money in excess of $100,000 which is not adequately insured or indemnified against is rendered against the
Company and the same remains undischarged for a period of twenty (20) days during which time execution shall not be effectively stayed; or 
 (j) any substantial part of the properties of the Company is sequestered or attached and is not returned to the possession of the Company or released from such attachment within thirty (30) days; or 
 (k) the occurrence of a Reportable Event as defined in Section 4043 of ERISA which might constitute grounds for termination by the PBGC of any Plan
covered by ERISA or grounds for the appointment by the appropriate United States District Court of a trustee to administer any such Plan; or 
 (l) the failure by the Company to make any required contribution to any Plan covered by ERISA which might constitute grounds for the imposition of a lien in favor of such Plan pursuant to Section 302 of ERISA; or 
 (m) an event of default occurs under any of the other Indebtedness Documents (taking into consideration any notice, grace and/or cure periods provided
therein), or any other document, instrument or agreement evidencing, securing or otherwise relating to any indebtedness, obligation or liability of the Company, whether now existing or hereafter arising, to the Bank or any subsidiary or affiliate of
Bank of America Corporation; or 
 (n) the occurrence, in one transaction or a series of transactions, of (i) a change in the ownership
of the Company that results in less than 90% of the issued and outstanding capital stock of the Company being owned by Thomas D. Sullivan, or (ii) any change in management or control of the Company. 
 Section 6.2 Remedies. 
 (a) Upon
the occurrence of an Event of Default described in Section 6.1(g) hereof, (i) the Bank’s obligation to make any further advances under the Notes shall automatically and immediately terminate, (ii) the entire outstanding principal
balance of each Note and all accrued interest thereon and all other amounts owing thereunder shall automatically become immediately due and payable without presentment, demand, protest, notice of dishonor or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein or in any Note to the contrary notwithstanding, and (iii) the Bank may proceed to enforce payment of the Notes, or any of them, and to exercise any and all rights and remedies
hereunder, under any of the other Indebtedness Documents and/or otherwise available to the Bank at law or equity. 
  

 - 16 - 

 (b) Upon the occurrence and during the continuation of any Event of Default other than an Event of
Default described in Section 6.1(g) hereof, the Bank may, if it deems appropriate, take any or all of the following actions, at the same or different times: (i) terminate forthwith its obligation to make any further advances under the
Notes, or any of them, (ii) declare the Notes, or any of them, to be forthwith due and payable, both as to principal and interest and all other amounts owing thereunder, without presentment, demand, protest, notice of dishonor or any other
notice of any kind, all of which are hereby expressly waived, anything contained herein or in any Note to the contrary notwithstanding, and/or (iii) proceed to enforce payment of the Notes, or any of them, and to exercise any and all rights and
remedies hereunder, under any of the other Indebtedness Documents and/or otherwise available to the Bank at law or equity. 
 (c) The Company
agrees that, in addition to the other rights and remedies of the Bank set forth herein and in the other Indebtedness Documents, upon the occurrence of an Event of Default the Bank shall have the right, without notice or demand to the Company, to set
off and apply against any and all of the amounts owing under the Notes, any and all deposits (general or special, time or demand, provisional or final) and any other indebtedness at any time held or owing by the Bank or any of the Bank’s agents
or affiliates to or for the credit of the account of the Company. 
 ARTICLE 7 
 MISCELLANEOUS PROVISIONS 
 Section 7.1 Indemnification. From and at all times after the date of this Agreement, and in addition to all of the Bank’s other rights and remedies against the Company, the Company hereby agrees to
hold the Bank harmless from, and to indemnify the Bank against, all losses, damages, costs and expenses (including, but not limited to, reasonable attorneys’ fees, costs and expenses) incurred by the Bank from and after the date hereof, whether
direct, indirect or consequential, as a result of or arising from or relating to any suit, action or proceeding by any person or entity other than the Company, whether threatened or initiated, asserting a claim for any legal or equitable remedy
against any person or entity under any statute or regulation, including, but not limited to, any federal or state securities laws, or under any common law or equitable cause of action or otherwise, arising from or in connection with the negotiation,
preparation, execution or performance of, or the financing transaction contemplated by, this Agreement and the other Indebtedness Documents, or the Bank’s furnishing of funds to the Company pursuant thereto; provided, however, that the
foregoing indemnification shall not protect the Bank from loss, damage, cost or expense directly attributable to the Bank’s willful misconduct or gross negligence. All of the foregoing losses, damages, costs and expenses of the Bank shall be
payable by the Company upon demand by the Bank and shall be secured by the liens granted to the Bank pursuant to the any of the Indebtedness Documents. 
 Section 7.2 Autodebit. The Company hereby authorizes the Bank to automatically deduct from such account of the Company with the Bank as the Company shall designate in writing (or any account of the Company
with the Bank if no particular account is so designated), the amount of each payment of principal (including without limitation the principal payment due on the final maturity date) and/or interest under any Note on the dates such payments become
due. If the funds in the account are insufficient to cover any payment, the Bank shall not be 

  

 - 17 - 

 
obligated to advance funds to cover the payment. This authorization shall not affect the obligation of the Company to pay such sums when due, without notice,
if there are insufficient funds in such account to make such payment in full on the due date thereof, or if the Bank fails to debit such account. 
 Section 7.3 Costs and Expenses. The Company hereby agrees to pay all reasonable out-of-pocket expenses incurred by the Bank in connection with the preparation of the Indebtedness Documents and all related documents (whether or
not the transactions hereby contemplated shall be consummated), including but not limited to the reasonable fees and disbursements of counsel for the Bank; and the Company hereby agrees to pay all expenses associated with recordation and filing
fees, survey costs, title insurance fees, financing statement searches and other costs and expenses associated with the closing of the transactions contemplated by this Agreement and the other Indebtedness Documents. In addition, the Company hereby
agrees that they will pay on demand all reasonable out-of-pocket expenses incurred by the Bank in connection with the preparation of any amendments to or other modifications of any of the foregoing documents, the making and administering of the
Indebtedness, and the enforcement of the rights of the Bank in connection with this Agreement and the other Indebtedness Documents, including but not limited to the reasonable fees and disbursements of counsel for the Bank. 
 Section 7.4 Cumulative Rights and No Waiver. Each and every right granted to the Bank hereunder or under any other document delivered
hereunder or in connection herewith, or allowed the Bank by law or equity, shall be cumulative and may be exercised from time to time. No failure on the part of the Bank to exercise, and no delay in exercising, any right shall operate as a waiver
thereof, nor shall any single or partial exercise by the Bank of any right preclude any other or future exercise thereof or the exercise of any other right. 
 Section 7.5 ARBITRATION AND WAIVER OF JURY TRIAL. 
 (A) THIS SECTION CONCERNS THE RESOLUTION OF
ANY CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES TO THIS AGREEMENT, WHETHER ARISING IN CONTRACT, TORT OR BY STATUTE, INCLUDING BUT NOT LIMITED TO CONTROVERSIES OR CLAIMS THAT ARISE OUT OF OR RELATE TO: (I) THIS AGREEMENT (INCLUDING ANY RENEWALS,
EXTENSIONS OR MODIFICATIONS), OR (II) ANY DOCUMENT RELATED TO THIS AGREEMENT (INDIVIDUALLY AND COLLECTIVELY, A “CLAIM”). FOR THE PURPOSES OF THIS SECTION ONLY, THE TERM “PARTIES” SHALL INCLUDE ANY PARENT CORPORATION,
SUBSIDIARY OR AFFILIATE OF THE BANK INVOLVED IN THE SERVICING, MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED IN OR EVIDENCED BY THIS AGREEMENT. 
 (B) AT THE REQUEST OF ANY PARTY TO THIS AGREEMENT, ANY CLAIM SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (TITLE 9, U.S. CODE) (THE “ACT”). THE ACT WILL APPLY EVEN
THOUGH THIS AGREEMENT PROVIDES THAT IT IS GOVERNED BY THE LAW OF A SPECIFIED STATE. THE ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO ANY FORM OF CLASS ACTION. 
  

 - 18 - 

 (C) ARBITRATION PROCEEDINGS WILL BE DETERMINED IN ACCORDANCE WITH THE ACT, THE THEN-CURRENT RULES AND
PROCEDURES FOR THE ARBITRATION OF FINANCIAL SERVICES DISPUTES OF THE AMERICAN ARBITRATION ASSOCIATION OR ANY SUCCESSOR THEREOF (“AAA”), AND THE TERMS OF THIS SECTION. IN THE EVENT OF ANY INCONSISTENCY, THE TERMS OF THIS SECTION SHALL
CONTROL. IF AAA IS UNWILLING OR UNABLE TO (I) SERVE AS THE PROVIDER OF ARBITRATION, OR (II) ENFORCE ANY PROVISION OF THIS SECTION, ANY PARTY TO THIS AGREEMENT MAY SUBSTITUTE ANOTHER ARBITRATION ORGANIZATION WITH SIMILAR PROCEDURES TO SERVE
AS THE PROVIDER OF ARBITRATION. 
 (D) THE ARBITRATION SHALL BE ADMINISTERED BY AAA AND CONDUCTED, UNLESS OTHERWISE REQUIRED BY LAW, IN ANY
U.S. STATE WHERE REAL OR TANGIBLE PERSONAL PROPERTY COLLATERAL FOR THE OBLIGATIONS HEREUNDER IS LOCATED OR IF THERE IS NO SUCH COLLATERAL, IN THE STATE SPECIFIED IN THE GOVERNING LAW SECTION OF THIS AGREEMENT. ALL CLAIMS SHALL BE DETERMINED BY ONE
ARBITRATOR; HOWEVER, IF CLAIMS EXCEED FIVE MILLION DOLLARS ($5,000,000), UPON THE REQUEST OF ANY PARTY, THE CLAIMS SHALL BE DECIDED BY THREE ARBITRATORS. ALL ARBITRATION HEARINGS SHALL COMMENCE WITHIN NINETY (90) DAYS OF THE DEMAND FOR
ARBITRATION AND CLOSE WITHIN NINETY (90) DAYS OF COMMENCEMENT AND THE AWARD OF THE ARBITRATOR(S) SHALL BE ISSUED WITHIN THIRTY (30) DAYS OF THE CLOSE OF THE HEARING. HOWEVER, THE ARBITRATOR(S), UPON A SHOWING OF GOOD CAUSE, MAY EXTEND THE
COMMENCEMENT OF THE HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS. THE ARBITRATOR(S) SHALL PROVIDE A CONCISE WRITTEN STATEMENT OF REASONS FOR THE AWARD. THE ARBITRATION AWARD MAY BE SUBMITTED TO ANY COURT HAVING JURISDICTION TO BE CONFIRMED,
JUDGMENT ENTERED AND ENFORCED. 
 (E) THE ARBITRATOR(S) WILL GIVE EFFECT TO STATUTES OF LIMITATION IN DETERMINING ANY CLAIM AND MAY DISMISS
THE ARBITRATION ON THE BASIS THAT THE CLAIM IS BARRED. FOR PURPOSES OF THE APPLICATION OF THE STATUTE OF LIMITATIONS, THE SERVICE ON AAA UNDER APPLICABLE AAA RULES OF A NOTICE OF CLAIM IS THE EQUIVALENT OF THE FILING OF A LAWSUIT. ANY DISPUTE
CONCERNING THIS SECTION OR WHETHER A CLAIM IS ARBITRABLE SHALL BE DETERMINED BY THE ARBITRATOR(S). THE ARBITRATOR(S) SHALL HAVE THE POWER TO AWARD LEGAL FEES PURSUANT TO THE TERMS OF THIS AGREEMENT AND THE OTHER INDEBTEDNESS DOCUMENTS. 

(F) THIS SECTION DOES NOT LIMIT THE RIGHT OF ANY PARTY TO: (I) EXERCISE SELF-HELP REMEDIES, SUCH AS BUT NOT LIMITED TO, SETOFF;
(II) INITIATE JUDICIAL OR NON-JUDICIAL FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL; (III) EXERCISE ANY JUDICIAL OR POWER OF SALE RIGHTS, OR (IV) ACT IN A COURT OF LAW TO OBTAIN AN INTERIM REMEDY, SUCH AS BUT NOT
LIMITED TO, INJUNCTIVE RELIEF, WRIT OF POSSESSION OR APPOINTMENT OF A RECEIVER, OR ADDITIONAL OR SUPPLEMENTARY REMEDIES. 
  

 - 19 - 

 (G) THE FILING OF A COURT ACTION IS NOT INTENDED TO CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY,
INCLUDING THE SUING PARTY, THEREAFTER TO REQUIRE SUBMITTAL OF THE CLAIM TO ARBITRATION. 
 (H) BY AGREEING TO BINDING ARBITRATION, THE
PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS SECTION, TO THE EXTENT ANY CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY AND
VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF SUCH CLAIM. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT AND THE OTHER INDEBTEDNESS DOCUMENTS. 
 Section 7.6 Notices. All notices, requests and other communications required to be given under this Agreement or any of the other
Indebtedness Documents shall be in writing (including facsimile transmission or similar writing) and shall be given to the applicable party at its address or facsimile number set forth below or such other address or facsimile number as such party
may hereafter specify in writing for the purpose of communication hereunder by notice to the other party hereto. Each such notice, request or other communication shall be effective (i) if given by facsimile transmission, when transmitted to the
facsimile number specified in this Section and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails, by certified or registered mail, with appropriate first class postage
prepaid, addressed as specified in this Section, or (iii) if given by any other means, when actually delivered to the address specified in this Section. Rejection or refusal to accept, or the inability to deliver because of a changed address of
which no notice was given, shall not affect the validity of notice given in accordance with this Section. 
 If to the
Company: 
 Lumber Liquidators, Inc. 
 3000 John Deere Run 
 Toano, Virginia 23169 
 Attn: Thomas D. Sullivan 
 Facsimile: 804-524-9461 
 If to the Bank: 
 Bank of America, N.A. 
 1111 East Main Street, 18th Floor 
 Richmond, Virginia 23219 
 Attn: Jeff S. Hallmark 
 Facsimile: 804-788-3432 
  

 - 20 - 

 with a courtesy copy to: 
 Troutman Sanders LLP 
 1001 Haxall Point (23219) 
 P.O. Box 1122 
 Richmond, Virginia 23218-1122 
 Attn: Christopher E. Vinyard, Esq. 
 Facsimile: 804-698-5126 
 Section 7.7 Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Virginia.

 Section 7.8 Modifications. No modification, amendment or waiver of any provision of this Agreement, nor consent to any
departure by the Company therefrom shall in any event be effective unless the same shall be in writing and signed by the Bank and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No
notice to or demand upon the Company in any case shall entitle the Company to any other or further notice or demand in the same or similar circumstances. The Company acknowledges and agrees that neither the payment by the Company under, nor the
acceptance by the Bank of any principal or interest on, any Note after the occurrence of an Event of Default shall constitute a waiver of any Event of Default, or any amendment to this Agreement, or otherwise prejudice or limit any other rights or
remedies of the Bank. 
 Section 7.9 Survivorship. All covenants, agreements, representations and warranties made herein and in
any certificates delivered pursuant hereto shall survive the execution and delivery of each Note and the making of each advance thereunder, and shall continue in full force and effect so long as any obligation of the Company hereunder or thereunder
is outstanding and unpaid. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party, and all covenants, promises and agreements by or on behalf of the
Company which are contained in this Agreement shall bind the successors and assigns of the Company and inure to the benefit of the successors and assigns of the Bank. The Company shall not have the right to assign any of its rights or obligations
hereunder. 
 Section 7.10 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. 
 Section 7.11 Headings. Article and Section headings in this Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose. 
 Section 7.12 Entire Agreement; Controlling Document. This Agreement
and the other Indebtedness Documents represent the final agreement of the Company and the Bank with respect to the subject matter hereof and thereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or
contemporaneous written or oral 

  

 - 21 - 

 
agreements of the Company and the Bank. To the extent of any conflict between the provisions of this Agreement and the provisions of any other Indebtedness
Documents with respect to any specific matters covered herein, the provisions of this Agreement with respect to such matters shall control. 
 Section 7.13 References. All references to the “Loan Agreement” or similar words in any document or instrument that refers to the Original Loan Agreement shall be deemed to be references to this Agreement. 

Section 7.14 Acknowledgement by the Bank. The Bank acknowledges that it is the sole legal holder of the Existing Indebtedness. 

[Signatures appear on following page] 
  

 - 22 - 

 IN WITNESS WHEREOF, each of the Company and the Bank has
caused this Agreement to be duly executed by its duly authorized officer, all as of the day and year first above written. 
  

			
	COMPANY:
	
	LUMBER LIQUIDATORS, INC.,
	  a Massachusetts corporation
		
	By:	 	 /s/ Thomas D. Sullivan

	Name:	 	Thomas D. Sullivan
	Title:	 	President
		
	BANK:	 	
	
	BANK OF AMERICA, N.A.,
	  a national banking association
		
	By:	 	 /s/ Jeff S. Hallmark

	Name:	 	Jeff S. Hallmark
	Title:	 	Senior Vice President

  

 - 23 - 

 First Amendment To Second Amended and Restated Loan Agreement 
 THIS FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED LOAN AGREEMENT (this “Amendment”) is dated as of the 31st day of July, 2006, by and between LUMBER
LIQUIDATORS, INC., a Massachusetts corporation (the “Company”), with a principal office located at 3000 John Deere Run, Toano, Virginia 23169, and BANK OF
AMERICA, N.A., a national banking association (the “Bank”), with an office located at 1111 East Main Street, 18th Floor,
Richmond, Virginia 23219. 
 The Company and the Bank are parties to a Second Amended and Restated Loan Agreement dated as of
March 23, 2006 (the “Loan Agreement”), and they now desire to amend certain provisions of the Loan Agreement as provided herein. 
 Accordingly, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Bank hereby agree as follows:

 1. Capitalized Terms; Effective Date. Capitalized terms used in this Amendment which are not otherwise defined herein shall have
the meanings assigned thereto in the Loan Agreement, as amended by this Amendment. Except as expressly provided to the contrary herein, all amendments to the Loan Agreement set forth herein shall be effective as of the date of this Amendment.

 2. Loan Agreement Amendments. Section 1A.1 of the Loan Agreement is amended to read as follows: 
 “Section 1A.1 General Description. Upon the terms and subject to the conditions contained in this Agreement (including,
without limitation, the conditions contained in Article 2), the Bank agrees to make a revolving credit facility (the “Revolving Credit Facility”) available to the Company, and to make advances under the Revolving Credit
Facility to the Company from time to time, during the period from the date of this Agreement until the earlier to occur of (i) May 31, 2008, or (ii) the date on which the Bank’s obligation to make further advances under the
Revolving Credit Facility is terminated pursuant to Section 6.2 (the “Revolving Credit Termination Date”); provided that the aggregate principal amount of all outstanding advances under the Revolving Credit Facility plus the
aggregate stated amount of any Letters of Credit (as hereinafter defined) issued by the Bank for the account of the Company shall not at any time exceed Ten Million and No/100 Dollars ($10,000,000) (the “Revolving Credit Facility
Cap”). Within such limits, the Company may borrow, repay and reborrow under the Revolving Credit Facility on or after the date of this Agreement and prior to the Revolving Credit Termination Date.” 
  

 34 

 3. Representations. The Company hereby represents and warrants to the Bank that: 
 3.1 The Company is in compliance with all of the terms, covenants and conditions of the Loan Agreement, as amended by this Amendment, and all of the
terms, covenants and conditions of each of the other Indebtedness Documents to which it is a party. 
 3.2 There exists no Event of Default
and no event has occurred or condition exists which, with the giving of notice or lapse of time, or both, would constitute such an Event of Default. 
 3.3 The representations and warranties contained in Article 3 of the Loan Agreement are, except to the extent that they relate solely to an earlier date, true with the same effect as though such representations
and warranties had been made on the date hereof. 
 3.4 The Company has full corporate power and authority to execute, deliver and perform
its obligations under this Amendment and the Replacement Revolving Credit Note (as hereinafter defined) and to incur the obligations provided for herein and therein, all of which have been duly authorized by all proper and necessary corporate
action. No consent or approval of the stockholders of the Company which has not been obtained and no consent or approval of, notice to or filing with, any public authority which has not been obtained or made is required as a condition to the
validity of this Amendment or the Replacement Revolving Credit Note. 
 3.5 This Amendment and the Replacement Revolving Credit Note
constitute the valid and legally binding obligations of the Company, enforceable in accordance with their respective terms, except as the enforceability hereof or thereof may be limited by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally or by general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 
 3.6 There are no actions, suits, proceedings or investigations pending or, so far as the officers of the Company know, threatened before any court or administrative agency that, in the opinion of the officers of the
Company, will materially adversely affect (i) the financial condition or operations of the Company, or (ii) the ability of the Company to execute or deliver this Amendment or the Replacement Revolving Credit Note, or to carry out the terms
of the Loan Agreement, as amended by this Amendment, or the Replacement Revolving Credit Note. 
 3.7 There is no charter, by-law, or
preference stock provision of the Company and no provision of any existing mortgage, lease, indenture, contract, or agreement binding on the Company or affecting its property that would conflict with or in any way prevent the execution or delivery
of this Amendment or the Replacement Revolving Credit Note, or the carrying out of the terms of the Loan Agreement, as amended by this Amendment, or the Replacement Revolving Credit Note. 
 4. Conditions. The effectiveness of this Amendment is subject to the following conditions precedent: 
 4.1 Amendment. The Company shall have executed and delivered to the Bank a counterpart of this Amendment. 
  

 35 

 4.2 Replacement Revolving Credit Note. The Company shall have executed and delivered to the Bank a
replacement Revolving Credit Note in form and substance satisfactory to the Bank (the “Replacement Revolving Credit Note”). 
 5. No Other Amendments; Reaffirmation; Waiver; No Novation. Except as expressly amended hereby, the terms of the Loan Agreement shall remain in full force and effect in all respects, and the Company hereby reaffirms its obligations
under the Loan Agreement, as amended by this Amendment, and under each of the other Indebtedness Documents to which it is a party. The Company hereby waives any claim, cause of action, defense, counterclaim, setoff or recoupment of any kind or
nature that it may assert against the Bank arising from or in connection with the Loan Agreement, as amended by this Amendment, or the transactions contemplated thereby or hereby that exist on the date hereof or arise from facts or actions occurring
prior hereto or on the date hereof. Nothing contained in this Amendment shall be construed to constitute a novation with respect to the indebtedness described in the Loan Agreement. 
 6. Security for Obligations. The Company hereby acknowledges and agrees that all indebtedness and other obligations of the Company under the Loan
Agreement, as amended by this Amendment, including, without limitation, the indebtedness evidenced by the Replacement Revolving Credit Note, are secured by the collateral described in the Indebtedness Documents. 
 7. References. All references in the Loan Agreement to “this Agreement,” “herein,” “hereunder” or other words of
similar import, and all references to the “Loan Agreement” or similar words in the other Indebtedness Documents, or any other document or instrument that refers to the Loan Agreement, shall be deemed to be references to the Loan Agreement
as amended by this Amendment. All references in the Loan Agreement, as amended by this Amendment, and in the other Indebtedness Documents to the “Revolving Credit Note” shall be deemed to be references to the Replacement Revolving Credit
Note. 
 8. Expenses. The Company hereby agrees that it will pay all reasonable out-of-pocket expenses incurred by the Bank in
connection with the preparation of this Amendment and the Replacement Revolving Credit Note and the consummation of the transactions described herein and therein, including, without limitation, the reasonable attorneys’ fees and expenses of the
Bank. 
 9. Applicable Law. This Amendment and the Replacement Revolving Credit Note shall be construed in accordance with and
governed by the laws of the Commonwealth of Virginia. 
 10. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument. 
 11.
Successors. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 12. Arbitration. The Company and the Bank hereby acknowledge and agree that any claim or controversy among the parties hereto including but not limited to those arising out of or 

  

 36 

 
related to this Amendment shall be determined by binding arbitration as described in Section 7.5 of the Loan Agreement. 
 13. Entire Agreement. This Amendment and the Replacement Revolving Credit Note represent the final agreements of the Company and the Bank with
respect to the subject matter hereof and thereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of the Company and the Bank. 
 [Signatures appear on following page] 
  

 37 

 IN WITNESS WHEREOF, the Company and the Bank have caused this Amendment to be duly executed by their duly
authorized officers, all as of the day and year first above written. 
  

			
	 LUMBER LIQUIDATORS, INC.,
 a Massachusetts corporation

		
	By:	 	 
	 Name:
 Title:
	 	 Thomas D. Sullivan
 President

	
	  
 BANK OF AMERICA, N.A.,

 a national banking association

		
	By:	 	 
	 Name:
 Title:
	 	 Jeff S. Hallmark
 Senior Vice President

  

 38 

 SECOND AMENDMENT TO 
 SECOND AMENDED AND RESTATED LOAN AGREEMENT  
 SECOND AMENDMENT TO SECOND AMENDED AND RESTATED LOAN
AGREEMENT (“Amendment”), dated as of August 7, 2007, by and between Lumber Liquidators, Inc. (the “Company”), a Massachusetts corporation, with a principal office located at 3000 John Deere Road, Toano, Virginia 23169, and
Bank of American, N.A. (the “Bank”), a national banking association, with an office located at 1111 East Main Street, Richmond, Virginia 23219. 
 W I T N E S S E T H : 
 WHEREAS, the Company and the Bank have entered into financing arrangement
pursuant to which the Bank has made and may make loans and advances and provide other financial accommodations to the Company as set forth in the Second Amended and Restated Loan Agreement, dated March 23, 2006, by and between the Company and
the Bank (as the same is amended and supplemented hereby and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”) and the agreements, documents and instruments at any time
executed and/or delivered in connection therewith or related thereto (collectively, together with the Loan Agreement, the “Financing Agreements”); 
 WHEREAS, the Company has formed or intends to form Lumber Liquidators, Inc., a Delaware corporation, as a new wholly-owned subsidiary of the Company (“LL Delaware”), and the Company intends to merger with
and into LL Delaware, with LL Delaware as the surviving corporation; 
 WHEREAS, after such merger, LL Delaware intends to engage in an
initial public offering (the “IPO”) of shares of its common stock; 
 WHEREAS, in connection with the transactions described above,
the Company has requested that the Bank consent thereto and agree to certain waivers and amendments to the Financing Agreements; and 
 WHEREAS, the Bank is willing to so consent and agree to such waivers and amendments to the extent, and subject to, the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 Section 1. Definitions. 
 1.1 Additional Definitions. As used herein, the following terms shall have the respective meanings given to them below and the Loan Agreement
shall be deemed and is hereby amended to include, in addition and not in limitation of, each of the following definitions: 
  

 1 

 (a) “Amendment” shall mean this Second Amendment to Second Amended and Restated Loan Agreement
by and between the Company and the Bank, as the same now exists and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced. 
 (b) “LL Delaware” shall mean Lumber Liquidators, Inc., a Delaware corporation, and its successors and assigns, including as the surviving corporation of the Merger. 
 (c) “Merger” shall mean the merger by the Company with and into LL Delaware, with LL Delaware as the surviving corporation, pursuant to the
Merger Documents. 
 (d) “Merger Documents” shall mean, collectively, the Agreement and Plan of Merger, dated on or before the
Merger Effective Time, by and between the Company and LL Delaware, the Certificate of Merger evidencing the Merger and all other agreements, documents and instruments executed, delivered and/or filed in connection therewith or related thereto.

 (e) “Merger Effective Time” shall mean the date on which the transactions contemplated by the Merger Documents have been
consummated and the Merger is effective under the laws of the applicable States. 
 1.2 Amendment to Definitions. 
 (a) All references to the term “Agreement” in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is
hereby amended to mean the Loan Agreement as such term is defined herein. 
 (b) As of the Merger Effective Time, all references to the term
“Company” in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to mean LL Delaware as such term is defined herein on and after the Merger. 
 1.3 Interpretation. For purposes of this Amendment, all terms used herein, including those terms used or defined in the recitals hereto, shall
have the respective meanings assigned thereto in the Loan Agreement. 
 Section 2. Consents and Waivers. Subject to the terms and
conditions contained herein, the Bank hereby: 
 2.1 consents to the formation by the Company of LL Delaware; 
 2.2 consents to the Merger; 
 2.3 consents
to the assumption by LL Delaware, as the surviving corporation of the Merger, of the Company’s rights and obligations under the Loan Agreement and the other Financing Agreements; and 
  

 2 

 2.4 waives any Event of Default that would otherwise be deemed to occur under Section 6.1(n) of the
Loan Agreement as a result of the consummation of the IPO. 
 Section 3. Additional Representations, Warranties and Covenants. In
addition to the continuing representations, warranties and covenants heretofore or hereafter made by the Company to the Bank pursuant to the other Financing Agreements, the Company hereby represents, warrants and covenants with and to the Bank as
follows (which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof and shall be incorporated into and made a part of the Financing Agreements): 
 3.1 Due Execution; Non-Contravention. As of the date hereof, this Amendment has been duly executed and delivered by all necessary action on the
part of the Company and, if necessary, their respective stockholders, and is in full force and effect as of the date hereof and the agreements and obligations of the Company contained herein constitute legal, valid and binding obligations of the
Company enforceable against the Company in accordance with their respective terms. 
 3.2 Merger. As of the Merger Effective Time:

 (a) The execution, delivery and performance of the Merger Documents and all other agreements in connection with the Merger (i) are
all within the Company’s corporate powers, (ii) have been duly authorized and (iii) to the Company’s knowledge, are not in contravention of law or the terms of the Company’s certificate of incorporation, by-laws or other
organizational documentation, or any indenture, agreement or undertaking to which the Company is a party or by which the Company or its property are bound. 
 (b) The Merger is valid and effective in accordance with the terms of the Merger Documents, and the corporation statutes of the Commonwealth of Massachusetts and the State of Delaware, and LL Delaware is the surviving
corporation pursuant to the Merger. 
 (c) All actions and proceedings required by the Merger Documents, applicable law and regulation with
respect to the Merger have been taken, and the transactions required thereunder had been duly and validly taken and consummated. 
 (d) No
court of competent jurisdiction has issued any injunction, restraining order or other order that prohibits consummation of the transactions described in the Merger Documents, and no governmental action or proceeding has been threatened or commenced
seeking any injunction, restraining order or other order which seeks to void or otherwise modify the transactions described in the Merger Documents. 
 (e) The Company has delivered, or caused to be delivered, to the Bank, true, correct and complete copies of the Merger Documents. 
  

 3 

 Section 4. As of the Merger Effective Time: 
 4.1 Continuing Liability. LL Delaware, as the surviving corporation pursuant to the Merger, shall continue to be directly and primarily liable in
all respects for the obligations of the Company arising under the Loan Agreement and the other Financing Agreements, including any Indebtedness (the “Obligations”), prior to the Merger Effective Time. 
 4.2 Continuation of Security Interest. The Bank shall continue to have a first priority security interest in all of the inventory owned and
acquired by LL Delaware from the Company, as the surviving corporation of the Merger, and all inventory hereafter acquired by LL Delaware. 
 4.3 No Adverse Effect on Rights of Agent or Lenders. Without limiting the generality of the foregoing, (a) none of the transactions contemplated by the Merger Documents shall in any way limit, impair or adversely affect the
Obligations or any security interest in any assets securing the same, and (b) the security interest and rights of the Bank in and to the assets of LL Delaware, as the surviving corporation of the Merger, have continued and upon and after the
consummation of the Merger shall continue to secure all Obligations of LL Delaware and the predecessor owners of such assets, in addition to all other existing and future Obligations of LL Delaware. 
 Section 5. Conditions. 
 5.1
General. Subject to Section 5.2 hereof, the effectiveness of each of the consents, waiver and amendments set forth in this Amendment shall be subject to the satisfaction of each of the following conditions: 
 (a) The Bank shall have received an original of this Amendment, duly authorized, executed and delivered by the Company; 
 (b) The Bank shall have received evidence, in form and substance satisfactory to the Bank, that the Company has obtained all necessary consents and
approvals to the execution, delivery and performance of this Amendment, which are and shall remain in full force and effect; 
 (c) The Bank
shall have received (i) a copy of the certificate of incorporation of LL Delaware, and all amendments thereto, certified by the Delaware Secretary of State as of the most recent practicable date certifying that each of the foregoing documents
remains in full force and effect and has not been modified or amended, except as described therein, (ii) a copy of the By-Laws of LL Delaware and (iii) a certificate from the Secretary or Assistant Secretary of LL Delaware dated on or
about the date hereof certifying that each of the foregoing documents remains in full force and effect and has not been modified or amended, except as described therein; and 
  

 4 

 (d) after giving effect to each of the consents, waivers and amendments set forth herein, no Event of
Default shall exist or have occurred. 
 5.2 Merger. The effectiveness of the consents and waiver set forth in Section 2.2 shall
be subject to the satisfaction of each of the following conditions: 
 (a) each of the conditions set forth in Section 5.1 hereof shall
be satisfied; 
 (b) The Bank shall have received, in form and substance satisfactory to the Bank, evidence that the Merger Documents have
been duly executed and delivered by and to the appropriate parties thereto and the transactions contemplated under the terms of the Merger Documents have been consummated, including evidence that the certificate of merger has been filed with the
Secretary of State of the State of Delaware and the Secretary of State of the Commonwealth of Massachusetts and the Merger is valid and effective in accordance with the terms and provisions of the Merger Documents and the applicable corporation
statutes of the State of Delaware and the Commonwealth of Massachusetts; 
 (c) The Bank shall have received the Merger Documents, which
shall be in form and substance satisfactory to the Bank; 
 (d) The Bank shall have received evidence, in form and substance satisfactory to
the Bank, that the Company have obtained all necessary consents and approvals to the execution, delivery and performance of the Merger Documents, which are and shall remain in full force and effect; and 
 (e) The Bank shall have received, in form and substance satisfactory to the Bank, evidence that all requisite corporate action and proceedings in
connection with this Amendment have been taken and approved, and the Bank shall have received all information and copies of all documents, including records of requisite corporate action and proceedings which the Bank may have reasonably requested
in connection therewith, such documents where requested by the Bank or its counsel to be certified by appropriate corporate officers. 
 (f)
Within five (5) business days after the Merger Effective Date, the Company shall cause financing statements to be filed in the appropriate jurisdictions to continue the Bank’s security interests under the Financing Agreements. 

Section 6. Miscellaneous. 
 6.1
Effect of this Amendment. Except as modified pursuant hereto, no other changes or modifications to the Financing Agreements are intended or implied, and in all other respects, the Financing Agreements are hereby specifically ratified,
restated and confirmed by all parties hereto as of effective date hereof. The Loan Agreement and this Amendment shall be read and construed as one agreement. To the extent of conflict between the terms of this Amendment and the other Financing
Agreements, the terms of this Amendment shall control. 
  

 5 

 6.2 Further Assurances. The parties hereto shall execute and deliver such additional documents and
take such additional actions as may be necessary to effectuate the provisions and purposes of this Amendment. 
 6.3 Applicable Law.
This Amendment shall be construed in accordance with and governed by the laws of the Commonwealth of Virginia. 
 6.4 Binding Effect.
This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
 6.5 Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same instrument. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and
delivered by their authorized officers as of the date and year first above written. 
  

			
	 COMPANY:
  
 LUMBER LIQUIDATORS, INC.,
     a Massachusetts corporation

		
	By:	 	/s/    Daniel Terrell        
	 Name: Daniel Terrell
 Title:
CFO

	
	 BANK:
  
 BANK OF AMERICA, N.A.,
     a national banking association

		
	By:	 	/s/     J. Thomas Johnson Jr
	 Name: J. Thomas Johnson Jr
 Title: Sr. Vice
President

  
 [Signature Page to
Second Amendment to Second Amended and Restated Loan Agreement] 
  

 7 

 CONSOLIDATED, AMENDED AND RESTATED
TERM LOAN NOTE 
  

			
	$9,880,533.62	 	March 23, 2006
		 	Richmond, Virginia

 FOR VALUE RECEIVED, LUMBER
LIQUIDATORS, INC. (the “Company”), a Massachusetts corporation, promises to pay to the order of BANK OF AMERICA, N.A. (the “Bank”) at its
office at 1111 East Main Street, Richmond, Virginia 23219, or at such other place as the holder hereof may from time to time designate in writing, the principal sum of NINE MILLION EIGHT
HUNDRED EIGHTY THOUSAND FIVE HUNDRED THIRTY-THREE AND 62/100 DOLLARS ($9,880,533.62), payable on the terms and
dates and in the amounts as hereinafter provided, and to pay interest on the outstanding principal balance of this Note as it exists from time to time from the date hereof as provided herein. 
 This Note consolidates, amends and restates in their entirety the $6,500,000 Amended and Restated Term Loan Note dated June 11, 2004, the $5,000,000
Second Amended and Restated Promissory Note dated February 2, 2005, and the $2,000,000 Promissory Note dated July 19, 2005, each made by the Company and payable to the order of the Bank (collectively, the “Prior Notes”),
and this Note is executed and delivered to the Bank as a replacement of and in substitution for the Prior Notes. The Company and the Bank acknowledge that the aggregate outstanding principal balance of the Prior Notes on the date hereof is
$9,880,533.62. The execution and delivery of this Note shall not constitute a novation of the debt originally evidenced by the Prior Notes and secured as hereinafter provided. 
 This Note is one of the “Notes” and one of the “Indebtedness Documents” described in, and (to the extent not inconsistent with the
terms of this Note) is subject to the terms and conditions of, a Second Amended and Restated Loan Agreement dated as of even date herewith (as the same may be extended, amended, restated or replaced from time to time, the “Loan
Agreement”), by and between the Company and the Bank. Capitalized terms used and not otherwise defined in this Note shall have the meanings set forth in the Loan Agreement. 
 The outstanding principal balance of this Note as it exists from time to time will bear interest (computed on the basis of the actual number of days
elapsed over a year of 360 days) at the per annum interest rate equal to the Base Rate plus the Applicable Margin. 
 This Note will be due and payable in sixty (60) installments of principal, each in the amount of $164,675.56, beginning on April 1, 2006, and continuing on the first (1st) day of each month thereafter to and including March 1, 2011 (the “Maturity Date”), on which date the entire unpaid principal balance of this Note, together with
all accrued interest hereon and all other amounts due hereunder, will be immediately due and payable in full. Accrued interest on the outstanding principal balance of this Note as it exists from time to time will be due and payable on the first
(1st) day of each month, beginning on April 1, 2006, on any date on which all or any part of this Note is prepaid, and on the Maturity Date. Any
accrued interest under the Prior Notes that remains unpaid on the date hereof will be due and payable on April 1, 2006. 
 Notwithstanding the foregoing or any other provision of this Note to the contrary, upon the occurrence of an Event of Default, the outstanding principal balance of this Note will bear 

 
interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at the per annum rate of interest (the “Default
Rate”) equal to the Base Rate plus the Applicable Margin plus four percent (4.00%). The Default Rate will be effective on the first date as of which the applicable Event of Default occurs notwithstanding the fact that such Event of Default
may not be reported or otherwise discovered until a subsequent date, and such Default Rate will not decrease for any reason thereafter unless the Bank, in its sole and absolute discretion, notifies the Company of such a change in writing.

 In the event that the Company fails to pay any installment of principal and/or interest on this Note within fifteen (15) days after
its due date, the Company will pay to the Bank without demand a late charge equal to four percent (4.00%) of the amount of such installment. 
 The Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank as the result of this Note bearing interest at the LIBOR Daily Floating Rate), prepay amounts outstanding under this Note
in whole or in part at any time and from time to time, provided that (i) all accrued interest is paid at the time this Note is paid in full and (ii) all partial prepayments will be applied first to the interest accrued to the prepayment
date and then to the reduction of principal installments due under this Note in their inverse chronological order of maturity, or in such other order as the Bank may determine in its sole and absolute discretion. This Note does not evidence a
revolving loan; the Company may not reborrow amounts voluntarily prepaid under this Note. 
 The Company agrees that all amounts owing under
this Note, including principal, interest and fees, will be deducted automatically on the due date thereof as set forth in Section 7.2 of the Loan Agreement. 
 The occurrence of any Event of Default will constitute a default under this Note, and such Events of Default are incorporated herein by this reference. In the event of the occurrence of any or all of such Events of
Default, the entire unpaid principal balance of this Note together with all accrued interest will become or may be declared immediately due and payable in the manner and with the effect as provided in the Loan Agreement, and the Bank will have all
other rights and remedies provided for in the Loan Agreement, the other Indebtedness Documents or otherwise available at law or equity. 
 The Company agrees to reimburse the Bank for any expenses it incurs in the preparation of this Note and any agreement or instrument related to this Note. Such expenses include, but are not limited to, reasonable attorneys’ fees,
including any allocated costs of the Bank’s in-house counsel to the extent permitted by applicable law. Furthermore, the Company will reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the Bank in connection with
the enforcement or preservation of any rights or remedies under this Note and any other documents executed in connection with this Note, and in connection with any amendment, waiver, “workout” or restructuring under this Note. In the event
of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event
that any case is commenced by or against the Company under the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related
to the 

  

 - 2 - 

 
preservation, protection or enforcement of any rights of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the
allocated costs of the Bank’s in-house counsel to the extent permitted by applicable law. 
 Presentment, demand, protest and notice of
dishonor are hereby waived by the Company and each endorser hereon or other guarantor or obligor hereof. 
 This Note will be governed by and
construed in accordance with the laws of the Commonwealth of Virginia. 
 THIS PARAGRAPH AND THE FOLLOWING SEVEN SUBPARAGRAPHS (THESE
“ARBITRATION PROVISIONS”) CONCERN THE RESOLUTION OF ANY CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES TO THIS NOTE, WHETHER ARISING IN CONTRACT, TORT OR BY STATUTE, INCLUDING BUT NOT LIMITED TO CONTROVERSIES OR CLAIMS THAT ARISE OUT
OF OR RELATE TO: (I) THIS NOTE (INCLUDING ANY RENEWALS, EXTENSIONS OR MODIFICATIONS), OR (II) ANY DOCUMENT RELATED TO THIS NOTE (INDIVIDUALLY AND COLLECTIVELY, A “CLAIM”). FOR THE PURPOSES OF THESE ARBITRATION PROVISIONS
ONLY, THE TERM “PARTIES” SHALL INCLUDE ANY PARENT CORPORATION, SUBSIDIARY OR AFFILIATE OF THE BANK INVOLVED IN THE SERVICING, MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED IN OR EVIDENCED BY THIS NOTE. 
 (B) AT THE REQUEST OF ANY PARTY TO THIS NOTE, ANY CLAIM SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (TITLE 9,
U.S. CODE) (THE “ACT”). THE ACT WILL APPLY EVEN THOUGH THIS NOTE PROVIDES THAT IT IS GOVERNED BY THE LAW OF A SPECIFIED STATE. THE ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO ANY FORM OF CLASS ACTION. 

(C) ARBITRATION PROCEEDINGS WILL BE DETERMINED IN ACCORDANCE WITH THE ACT, THE THEN-CURRENT RULES AND PROCEDURES FOR THE ARBITRATION OF FINANCIAL
SERVICES DISPUTES OF THE AMERICAN ARBITRATION ASSOCIATION OR ANY SUCCESSOR THEREOF (“AAA”), AND THE TERMS OF THIS SECTION. IN THE EVENT OF ANY INCONSISTENCY, THE TERMS OF THIS SECTION SHALL CONTROL. IF AAA IS UNWILLING OR UNABLE TO
(I) SERVE AS THE PROVIDER OF ARBITRATION, OR (II) ENFORCE ANY PROVISION OF THIS SECTION, ANY PARTY TO THIS NOTE MAY SUBSTITUTE ANOTHER ARBITRATION ORGANIZATION WITH SIMILAR PROCEDURES TO SERVE AS THE PROVIDER OF ARBITRATION. 
 (D) THE ARBITRATION SHALL BE ADMINISTERED BY AAA AND CONDUCTED, UNLESS OTHERWISE REQUIRED BY LAW, IN ANY U.S. STATE WHERE REAL OR TANGIBLE PERSONAL
PROPERTY COLLATERAL FOR THE OBLIGATIONS HEREUNDER IS LOCATED OR IF THERE IS NO SUCH COLLATERAL, IN THE STATE SPECIFIED IN THE GOVERNING LAW SECTION OF THIS NOTE. ALL CLAIMS SHALL BE DETERMINED BY ONE ARBITRATOR; HOWEVER, IF CLAIMS 

  

 - 3 - 

 
EXCEED FIVE MILLION DOLLARS ($5,000,000), UPON THE REQUEST OF ANY PARTY, THE CLAIMS SHALL BE DECIDED BY THREE ARBITRATORS. ALL ARBITRATION HEARINGS SHALL
COMMENCE WITHIN NINETY (90) DAYS OF THE DEMAND FOR ARBITRATION AND CLOSE WITHIN NINETY (90) DAYS OF COMMENCEMENT AND THE AWARD OF THE ARBITRATOR(S) SHALL BE ISSUED WITHIN THIRTY (30) DAYS OF THE CLOSE OF THE HEARING. HOWEVER, THE
ARBITRATOR(S), UPON A SHOWING OF GOOD CAUSE, MAY EXTEND THE COMMENCEMENT OF THE HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS. THE ARBITRATOR(S) SHALL PROVIDE A CONCISE WRITTEN STATEMENT OF REASONS FOR THE AWARD. THE ARBITRATION AWARD MAY BE
SUBMITTED TO ANY COURT HAVING JURISDICTION TO BE CONFIRMED, JUDGMENT ENTERED AND ENFORCED. 
 (E) THE ARBITRATOR(S) WILL GIVE EFFECT TO
STATUTES OF LIMITATION IN DETERMINING ANY CLAIM AND MAY DISMISS THE ARBITRATION ON THE BASIS THAT THE CLAIM IS BARRED. FOR PURPOSES OF THE APPLICATION OF THE STATUTE OF LIMITATIONS, THE SERVICE ON AAA UNDER APPLICABLE AAA RULES OF A NOTICE OF CLAIM
IS THE EQUIVALENT OF THE FILING OF A LAWSUIT. ANY DISPUTE CONCERNING THIS SECTION OR WHETHER A CLAIM IS ARBITRABLE SHALL BE DETERMINED BY THE ARBITRATOR(S). THE ARBITRATOR(S) SHALL HAVE THE POWER TO AWARD LEGAL FEES PURSUANT TO THE TERMS OF THIS
NOTE. 
 (F) THIS SECTION DOES NOT LIMIT THE RIGHT OF ANY PARTY TO: (I) EXERCISE SELF-HELP REMEDIES, SUCH AS BUT NOT LIMITED TO, SETOFF;
(II) INITIATE JUDICIAL OR NON-JUDICIAL FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL; (III) EXERCISE ANY JUDICIAL OR POWER OF SALE RIGHTS, OR (IV) ACT IN A COURT OF LAW TO OBTAIN AN INTERIM REMEDY, SUCH AS BUT NOT
LIMITED TO, INJUNCTIVE RELIEF, WRIT OF POSSESSION OR APPOINTMENT OF A RECEIVER, OR ADDITIONAL OR SUPPLEMENTARY REMEDIES. 
 (G) THE FILING OF
A COURT ACTION IS NOT INTENDED TO CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE SUING PARTY, THEREAFTER TO REQUIRE SUBMITTAL OF THE CLAIM TO ARBITRATION. 
 (H) BY AGREEING TO BINDING ARBITRATION, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS
SECTION, TO THE EXTENT ANY CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF SUCH CLAIM. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS NOTE.

 [Signatures appear on following page] 
  

 - 4 - 

 IN WITNESS WHEREOF, the Company has caused this Note to be
executed by its duly authorized officer as of the date first above written. 
  

			
	LUMBER LIQUIDATORS, INC.,
	  a Massachusetts corporation
		
	By:	 	 /s/ Thomas D. Sullivan

	Name:	 	Thomas D. Sullivan
	Title:	 	President

  

 - 5 - 

 AMENDED AND RESTATED REVOLVING
CREDIT NOTE 
  

			
	$10,000,000.00	 	July 31, 2006
		 	Richmond, Virginia

 FOR VALUE RECEIVED, LUMBER
LIQUIDATORS, INC. (the “Company”), a Massachusetts corporation, promises to pay to the order of BANK OF AMERICA, N.A. (the “Bank”) at its
office at 1111 East Main Street, Richmond, Virginia 23219, or at such other place as the holder hereof may from time to time designate in writing, the principal sum of TEN MILLION AND
NO/100 DOLLARS ($10,000,000.00), or such lesser principal amount as may be advanced hereunder by the Bank, payable on the terms and dates and in the amounts as hereinafter provided, and to pay interest on the
outstanding principal balance of this Note as it exists from time to time from the date hereof as provided herein. 
 This Note increases,
and amends and restates in its entirety, the $5,000,000 Revolving Credit Note of the Company dated March 23, 2006, payable to the order of the Bank (the “Prior Note”), and this Note is executed and delivered to the Bank as a
replacement of and in substitution for the Prior Note. The execution and delivery of this Note shall not constitute a novation of the debt originally evidenced by the Prior Note. 
 This Note is one of the “Notes” and one of the “Indebtedness Documents” described in, and (to the extent not inconsistent with the
terms of this Note) is subject to the terms and conditions of, a Second Amended and Restated Loan Agreement dated as of even date herewith, as amended (as the same may be extended, amended, restated or replaced from time to time, the “Loan
Agreement”), by and between the Company and the Bank. Capitalized terms used and not otherwise defined in this Note shall have the meanings set forth in the Loan Agreement. 
 The outstanding principal balance of this Note as it exists from time to time will bear interest (computed on the basis of the actual number of days
elapsed over a year of 360 days) at the per annum interest rate equal to the Base Rate plus the Applicable Margin. 
 Accrued interest on the outstanding principal balance of this Note as it exists from time to time will be due and payable on the first (1st) day of each month, beginning on August 1, 2006, on any date on which this Note is paid in full and on the Revolving Credit Termination Date. On the Revolving Credit Termination Date, the entire unpaid
principal balance of this Note, together with all accrued interest hereon and all other amounts due hereunder, will be immediately due and payable in full. Any accrued interest under the Prior Note that remains unpaid on the date hereof shall also
be due and payable on August 1, 2006. 
 The Company acknowledges and agrees that the Bank may endorse on this Note (or any
schedule attached hereto) or otherwise make in the Bank’s records an appropriate notation of the date and amount of each advance made hereunder and the date and amount of any payments or prepayments hereof. Such endorsements or other notations
shall, in the absence of manifest error, be conclusive as to the outstanding principal balance of this Note; provided, however, the Bank’s error in making or failure to make any such endorsement or notation shall not limit or otherwise affect
the obligations of the Company under this Note. 

 Notwithstanding the foregoing or any other provision of this Note to the contrary, upon the occurrence of
an Event of Default, the outstanding principal balance of this Note will bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at the per annum rate of interest (the “Default Rate”) equal
to the Base Rate plus the Applicable Margin plus four percent (4.00%). The Default Rate will be effective on the first date as of which the applicable Event of Default occurs notwithstanding the fact that such Event of Default may not be reported or
otherwise discovered until a subsequent date, and such Default Rate will not decrease for any reason thereafter unless the Bank, in its sole and absolute discretion, notifies the Company of such a change in writing. 
 In the event that the Company fails to pay any installment of principal and/or interest on this Note within fifteen (15) days after its due date,
the Company will pay to the Bank without demand a late charge equal to four percent (4.00%) of the amount of such installment. 
 The
Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank as the result of this Note bearing interest at the LIBOR Daily Floating Rate), prepay amounts outstanding under this Note in whole or in
part at any time and from time to time. 
 The Company agrees that all amounts owing under this Note, including principal, interest and fees,
will be deducted automatically on the due date thereof as set forth in Section 7.2 of the Loan Agreement. 
 The occurrence of any Event
of Default will constitute a default under this Note, and such Events of Default are incorporated herein by this reference. In the event of the occurrence of any or all of such Events of Default, the entire unpaid principal balance of this Note
together with all accrued interest will become or may be declared immediately due and payable in the manner and with the effect as provided in the Loan Agreement, and the Bank will have all other rights and remedies provided for in the Loan
Agreement, the other Indebtedness Documents or otherwise available at law or equity. 
 The Company agrees to reimburse the Bank for any
expenses it incurs in the preparation of this Note and any agreement or instrument related to this Note. Such expenses include, but are not limited to, reasonable attorneys’ fees, including any allocated costs of the Bank’s in-house
counsel to the extent permitted by applicable law. Furthermore, the Company will reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any rights or remedies
under this Note and any other documents executed in connection with this Note, and in connection with any amendment, waiver, “workout” or restructuring under this Note. In the event of a lawsuit or arbitration proceeding, the prevailing
party is entitled to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Company
under the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the preservation, protection or enforcement of
any rights of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s in-house counsel to the extent permitted by applicable law. 
  

 - 2 - 

 Presentment, demand, protest and notice of dishonor are hereby waived by the Company and each endorser
hereon or other guarantor or obligor hereof. 
 This Note will be governed by and construed in accordance with the laws of the Commonwealth
of Virginia. 
 THIS PARAGRAPH AND THE FOLLOWING SEVEN SUBPARAGRAPHS (THESE “ARBITRATION PROVISIONS”) CONCERN THE RESOLUTION
OF ANY CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES TO THIS NOTE, WHETHER ARISING IN CONTRACT, TORT OR BY STATUTE, INCLUDING BUT NOT LIMITED TO CONTROVERSIES OR CLAIMS THAT ARISE OUT OF OR RELATE TO: (I) THIS NOTE (INCLUDING ANY RENEWALS,
EXTENSIONS OR MODIFICATIONS), OR (II) ANY DOCUMENT RELATED TO THIS NOTE (INDIVIDUALLY AND COLLECTIVELY, A “CLAIM”). FOR THE PURPOSES OF THESE ARBITRATION PROVISIONS ONLY, THE TERM “PARTIES” SHALL INCLUDE ANY PARENT
CORPORATION, SUBSIDIARY OR AFFILIATE OF THE BANK INVOLVED IN THE SERVICING, MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED IN OR EVIDENCED BY THIS NOTE. 
 (A) AT THE REQUEST OF ANY PARTY TO THIS NOTE, ANY CLAIM SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (TITLE 9, U.S. CODE) (THE “ACT”). THE ACT WILL APPLY EVEN
THOUGH THIS NOTE PROVIDES THAT IT IS GOVERNED BY THE LAW OF A SPECIFIED STATE. THE ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO ANY FORM OF CLASS ACTION. 
 (B) ARBITRATION PROCEEDINGS WILL BE DETERMINED IN ACCORDANCE WITH THE ACT, THE THEN-CURRENT RULES AND PROCEDURES FOR THE ARBITRATION OF FINANCIAL
SERVICES DISPUTES OF THE AMERICAN ARBITRATION ASSOCIATION OR ANY SUCCESSOR THEREOF (“AAA”), AND THE TERMS OF THIS SECTION. IN THE EVENT OF ANY INCONSISTENCY, THE TERMS OF THIS SECTION SHALL CONTROL. IF AAA IS UNWILLING OR UNABLE TO
(I) SERVE AS THE PROVIDER OF ARBITRATION, OR (II) ENFORCE ANY PROVISION OF THIS SECTION, ANY PARTY TO THIS NOTE MAY SUBSTITUTE ANOTHER ARBITRATION ORGANIZATION WITH SIMILAR PROCEDURES TO SERVE AS THE PROVIDER OF ARBITRATION. 
 (C) THE ARBITRATION SHALL BE ADMINISTERED BY AAA AND CONDUCTED, UNLESS OTHERWISE REQUIRED BY LAW, IN ANY U.S. STATE WHERE REAL OR TANGIBLE PERSONAL
PROPERTY COLLATERAL FOR THE OBLIGATIONS HEREUNDER IS LOCATED OR IF THERE IS NO SUCH COLLATERAL, IN THE STATE SPECIFIED IN THE GOVERNING LAW SECTION OF THIS NOTE. ALL CLAIMS SHALL BE DETERMINED BY ONE ARBITRATOR; HOWEVER, IF CLAIMS EXCEED FIVE
MILLION DOLLARS ($5,000,000), UPON THE REQUEST OF ANY PARTY, THE CLAIMS SHALL BE DECIDED BY THREE ARBITRATORS. ALL ARBITRATION HEARINGS SHALL COMMENCE WITHIN NINETY (90) DAYS OF THE DEMAND FOR ARBITRATION AND CLOSE WITHIN NINETY (90) DAYS
OF 

  

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COMMENCEMENT AND THE AWARD OF THE ARBITRATOR(S) SHALL BE ISSUED WITHIN THIRTY (30) DAYS OF THE CLOSE OF THE HEARING. HOWEVER, THE ARBITRATOR(S), UPON A
SHOWING OF GOOD CAUSE, MAY EXTEND THE COMMENCEMENT OF THE HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS. THE ARBITRATOR(S) SHALL PROVIDE A CONCISE WRITTEN STATEMENT OF REASONS FOR THE AWARD. THE ARBITRATION AWARD MAY BE SUBMITTED TO ANY COURT
HAVING JURISDICTION TO BE CONFIRMED, JUDGMENT ENTERED AND ENFORCED. 
 (D) THE ARBITRATOR(S) WILL GIVE EFFECT TO STATUTES OF LIMITATION IN
DETERMINING ANY CLAIM AND MAY DISMISS THE ARBITRATION ON THE BASIS THAT THE CLAIM IS BARRED. FOR PURPOSES OF THE APPLICATION OF THE STATUTE OF LIMITATIONS, THE SERVICE ON AAA UNDER APPLICABLE AAA RULES OF A NOTICE OF CLAIM IS THE EQUIVALENT OF THE
FILING OF A LAWSUIT. ANY DISPUTE CONCERNING THIS SECTION OR WHETHER A CLAIM IS ARBITRABLE SHALL BE DETERMINED BY THE ARBITRATOR(S). THE ARBITRATOR(S) SHALL HAVE THE POWER TO AWARD LEGAL FEES PURSUANT TO THE TERMS OF THIS NOTE. 
 (E) THIS SECTION DOES NOT LIMIT THE RIGHT OF ANY PARTY TO: (I) EXERCISE SELF-HELP REMEDIES, SUCH AS BUT NOT LIMITED TO, SETOFF; (II) INITIATE
JUDICIAL OR NON-JUDICIAL FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL; (III) EXERCISE ANY JUDICIAL OR POWER OF SALE RIGHTS, OR (IV) ACT IN A COURT OF LAW TO OBTAIN AN INTERIM REMEDY, SUCH AS BUT NOT LIMITED TO, INJUNCTIVE
RELIEF, WRIT OF POSSESSION OR APPOINTMENT OF A RECEIVER, OR ADDITIONAL OR SUPPLEMENTARY REMEDIES. 
 (F) THE FILING OF A COURT ACTION IS NOT
INTENDED TO CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE SUING PARTY, THEREAFTER TO REQUIRE SUBMITTAL OF THE CLAIM TO ARBITRATION. 
 (G) BY AGREEING TO BINDING ARBITRATION, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS SECTION, TO THE EXTENT ANY
CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF SUCH CLAIM. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS NOTE. 
 [Signatures appear on following page] 
  

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 IN WITNESS WHEREOF, the Company has caused this Note to be
executed by its duly authorized officer as of the date first above written. 
  

			
	LUMBER LIQUIDATORS, INC.,
	  a Massachusetts corporation
		
	By:	 	 /s/ Thomas D. Sullivan

	Name:	 	Thomas D. Sullivan
	Title:	 	President

  

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