Document:

coup-ex101_402.htm

 

Exhibit 10.1

THIRD AMENDMENT TO OFFICE LEASE

This THIRD AMENDMENT TO OFFICE LEASE ("Third Amendment") is made and entered into as of April 26, 2017, by and between BCSP CROSSROADS PROPERTY LLC, a Delaware limited liability company ("Landlord"), and COUPA SOFTWARE INCORPORATED, a Delaware corporation ("Tenant").

R E C I T A L S :

A.Landlord, as successor in interest to Crossroads Associates, and Tenant are parties to that certain Lease Agreement dated March 20, 2016 (the "Lease Agreement"), whereby Tenant currently leases approximately 46,449 rentable square feet of space ("RSF") (collectively, the "Existing Premises") in the building (the "Building") located at 1855 South Grant Street, San Mateo, California, which Existing Premises is comprised of the entire 4th and 5th floors of the Building, Suite 100 on the 1st floor of the Building, and Suite 200 on the 2nd floor of the Building. The Lease Agreement, as amended by the First Amendment of Lease dated May 11, 2015, and the Second Amendment of Lease dated November 18, 2015, is referred to herein collectively as the "Lease".

B.Landlord and Tenant desire to extend the Term of the Lease, and expand the Existing Premises to include (i) approximately 8,488 RSF known as Suite 150 on the 1st floor of the Building ("Suite 150"), and (ii) approximately 13,484 RSF known as Suite 300 on the 3rd floor of the Building ("Suite 300") (Suite 150 and Suite 300, collectively, the "Expansion Premises"), as shown on Exhibit A attached hereto, and (iii) to make other modifications to the Lease, and in connection therewith, Landlord and Tenant desire to amend the Lease as hereinafter provided.

A G R E E M E N T :

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Terms.  All capitalized terms when used herein shall have the same respective meanings as are given such terms in the Lease unless expressly provided otherwise in this Third Amendment.

2.Remeasurement of Existing Premises; Modification of Premises.  

2.1Remeasurement of Existing Premises.  Notwithstanding any provision to the contrary set forth in the Lease, Landlord and Tenant hereby acknowledge and agree that effective as of May 1, 2017, the Existing Premises shall be deemed to consist of 47,248 RSF.  

2.2Modification of Premises.  Effective as of May 1, 2017 (the "Expansion Commencement Date"), Tenant shall lease from Landlord and Landlord shall lease to Tenant the 

			
	
 
	
 
	
 

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Expansion Premises.  Consequently, effective upon the Expansion Commencement Date, the Existing Premises shall be increased to include the Expansion Premises, and the "Premises" under the Lease, consisting of the Existing Premises and the Expansion Premises, shall be deemed to contain 69,220 RSF.

3.Extended Lease Term.  Pursuant to the Lease, the term of the Lease (the "Lease Term") is scheduled to expire on April 30, 2019.  Landlord and Tenant hereby agree to extend the Lease Term for a period of five (5) years, from May 1, 2019, through April 30, 2024, on the terms and conditions set forth in the Lease, as hereby amended by this Third Amendment, unless sooner terminated as provided in the Lease.  The period of time commencing as of the Expansion Commencement Date, and continuing through April 30, 2024, shall be referred to herein as the "Expansion Term".

4.Basic Rent.  Prior to May 1, 2017, Tenant shall continue to pay monthly installments of Basic Rent for the Premises in accordance with the terms of the Lease.  During the Expansion Term, Tenant shall pay monthly installments of Basic Rent for the Premises as follows: 

4.1Existing Premises. During the Expansion Term, Basic Rent payable for the Existing Premises shall be as follows:

 

	
Period During
Expansion Term
	
 
	
Annual
Basic Rent
	
 
	
Monthly Installment
of Basic Rent
	
 
	
Monthly Rental Rate
per RSF

	
May 1, 2017 – 
April 30, 2018
	
 
	
$2,001,022.92
	
 
	
$166,751.91
	
 
	
3.53

	
May 1, 2018 – 
April 30, 2019
	
 
	
$2,056,761.72
	
 
	
$171,396.81
	
 
	
3.63

	
May 1, 2019 – 
April 30, 2020
	
 
	
$2,307,586.32
	
 
	
$192,298.86
	
 
	
4.07

	
May 1, 2020 – 
April 30, 2021
	
 
	
$2,374,472.80
	
 
	
$197,872.74
	
 
	
4.19

	
May 1, 2021 – 
April 30, 2022
	
 
	
$2,446,933.30
	
 
	
$203,911.11
	
 
	
4.32

	
May 1, 2022 – 
April 30, 2023
	
 
	
$2,519,393.70
	
 
	
$209,949.48
	
 
	
4.44

	
May 1, 2023 – 
April 30, 2024
	
 
	
$2,597,428.00
	
 
	
$216,452.34
	
 
	
4.58

4.2Suite 150. During the Expansion Term, Basic Rent payable for Suite 150 shall be as follows:

 

	
Period During
Expansion Term
	
 
	
Annual
Basic Rent
	
 
	
Monthly Installment
of Basic Rent
	
 
	
Monthly Rental Rate
per RSF

	
May 1, 2017 – 
September 30, 2017
	
 
	
$0.00
	
 
	
$0.00
	
 
	
$0.00

			
	
 
	
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October 1, 2017 – 
April 30, 2018
	
 
	
$320,814.00
	
 
	
$26,734.50
	
 
	
3.15

	
May 1, 2018 – 
April 30, 2019
	
 
	
$330,685.20
	
 
	
$27,557.10
	
 
	
3.25

	
May 1, 2019 – 
April 30, 2020
	
 
	
$340,556.40
	
 
	
$28,379.70
	
 
	
3.34

	
May 1, 2020 – 
April 30, 2021
	
 
	
$350,427.60
	
 
	
$29,202.30
	
 
	
3.44

	
May 1, 2021 – 
April 30, 2022
	
 
	
$361,121.40
	
 
	
$30,093.45
	
 
	
3.55

	
May 1, 2022 – 
April 30, 2023
	
 
	
$371,815.20
	
 
	
$30,984.60
	
 
	
3.65

	
May 1, 2023 – 
April 30, 2024
	
 
	
$383,331.60
	
 
	
$31,944.30
	
 
	
3.76

4.3Suite 300. During the Expansion Term, Basic Rent payable for Suite 300 shall be as follows:

 

	
Period During
Expansion Term
	
 
	
Annual
Basic Rent
	
 
	
Monthly Installment
of Basic Rent
	
 
	
Monthly Rental Rate
per RSF

	
May 1, 2017 – 
December 31, 2017
	
 
	
$0.00
	
 
	
$0.00
	
 
	
$0.00

	
January 1, 2018 – 
April 30, 2018
	
 
	
$631,051.20
	
 
	
$52,587.60
	
 
	
$3.90

	
May 1, 2018 – 
April 30, 2019
	
 
	
$650,468.16
	
 
	
$54,205.68
	
 
	
$4.02

	
May 1, 2019 – 
April 30, 2020
	
 
	
$669,885.12
	
 
	
$55,823.76
	
 
	
$4.14

	
May 1, 2020 – 
April 30, 2021
	
 
	
$689,302.08
	
 
	
$57,441.84
	
 
	
$4.26

	
May 1, 2021 – 
April 30, 2022
	
 
	
$710,337.12
	
 
	
$59,194.76
	
 
	
$4.39

	
May 1, 2022 – 
April 30, 2023
	
 
	
$731,372.16
	
 
	
$60,947.68
	
 
	
$4.52

	
May 1, 2023 – 
April 30, 2024
	
 
	
$754,025.28
	
 
	
$62,835.44
	
 
	
$4.66

5.Additional Rent; Gross-Up of Expenses.  During the Expansion Term, Tenant shall continue to pay Additional Rent as adjusted in accordance with the terms of Section 4D of the Office Lease, provided, however, (i) effective as of May 1, 2017, Tenant's proportionate share, for purpose of calculating Additional Rent with respect to (1) the Building, shall be equal to 100% (for the entire Premises, the Existing Premises and the Expansion Premises), and (2) the Complex shall be equal to 16.86% (irrespective of the RSF of the Existing Premises and the Expansion Premises), and (ii) Additional Rent may include the cost of capital improvements or other costs incurred in connection with the Complex that are required under any governmental law or regulation; provided, however, that any capital expenditure shall be amortized (including interest 

			
	
 
	
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on the amortized cost) over such period of time as Landlord shall reasonably determine in accordance with generally accepted real estate management and accounting principles.  Notwithstanding the foregoing, if Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, expenses of operation, management and maintenance for the Complex shall be deemed to be increased by an amount equal to the additional expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant.  If the Complex is not one hundred percent (100%) occupied during all or a portion of any year, Landlord shall make an appropriate adjustment to the components of expenses of operation, management and maintenance for the Complex for such year to determine the amount of expenses that would have been incurred had the Complex been one hundred percent (100%) occupied; and the amount so determined shall be deemed to have been the amount of expenses of operation, management and maintenance for the Complex for such year.  Notwithstanding any provision to the contrary set forth herein, Landlord shall not collect or be entitled to collect Additional Rent from all of the tenants in the Building in an amount in excess of one hundred percent (100%) of the operating expenses actually paid by Landlord in connection with the operation of the Building or the Complex. 

6.Ground Floor Improvements. As more particularly set forth in the Tenant Work Letter attached hereto as Exhibit B, Landlord hereby grants Tenant the Ground Floor Improvement Allowance in the amount of $1,137,640 (the "Ground Floor Improvement Allowance"). Landlord shall construct improvements on the ground floor of the Building in accordance with the terms of the Tenant Work Letter, which improvements shall be at Tenant's sole cost and expense (subject to the application of the Ground Floor Improvement Allowance). 

7.Suite 300 and Existing Premises Refurbishments.  Landlord hereby grants Tenant a one-time allowance for the purchase and installation of improvements which are permanently affixed to Suite 300 or the Existing Premises (the “Suite 300 and Existing Premises Refurbishments”) in an amount equal to $371,994.00 ($277,606 for the Existing Premises, and $94,388.00 for Suite 300) (collectively, the “Refurbishment Allowance”).  Tenant shall construct any Suite 300 Refurbishments in accordance with the terms of Section 9 of the Lease, and in accordance with Landlord's reasonable construction rules and regulations.  Landlord shall disburse the Refurbishment Allowance to Tenant for costs incurred in connection with Refurbishments in accordance with Landlord's reasonable and customary disbursement requirements, which may include the requirement that Tenant provide reasonable evidence of amounts expended by Tenant on Refurbishments, together with applicable lien releases. Any Refurbishment Allowance remaining unallocated and undisbursed as of May 1, 2019, shall revert to Landlord and Tenant will have no further rights with respect thereto.

8.Landlord Building Upgrades. Landlord shall perform the work set forth in the Building lobby and exterior common areas (the "Landlord Work"), at Landlord's sole cost and expense. Landlord shall not be obligated to expend more than $667,880 (the "Landlord Work Allowance") for the design, permitting and construction of the Landlord Work. If following the completion of the Landlord Work, the total cost of the Landlord Work is less than the Landlord Work Allowance, then any remaining portions of the Landlord Work Allowance may be used by Tenant as an addition to the Ground Floor Improvement Allowance or the Refurbishment 

			
	
 
	
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Allowance, at Tenant's option. The Landlord Work shall consist of (i) renovation of the main Building entry lobby, (ii) installation and repair of the existing double entry doors, (iii) construction of a new entrance awning outside the main Building entrance, and construction of a new exterior common area patio space. The Landlord Work shall be constructed pursuant to plans and specifications prepared by Landlord and approved by Tenant, which approval shall not be unreasonably withheld, and shall be given or withheld within five (5) business days after request. 

9.As-Is.  Except as specifically set forth in Sections 6, 7 and 8, above, and in the Tenant Work Letter, Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Existing Premises or Expansion Premises, and Tenant shall accept the Existing Premises and Expansion Premises in their presently existing, "as-is" condition. 

10.Right of First Offer. Landlord hereby grants to the Tenant named in this Third Amendment (the "Original Tenant") a right of first offer with respect to any space located on the eighth (8th) and ninth (9th) floors of the building located at 1825 South Grant Street (the "First Offer Space"), but only so long as such building is owned by the same entity as the Landlord under the Lease, or an affiliate of Landlord.  Notwithstanding the foregoing, such first offer right of Tenant shall be subordinate to all rights of which are set forth in leases of space in such building or any other building in the project as of the date hereof, including any renewal, extension or expansion rights set forth in such leases, regardless of whether such renewal, extension or expansion rights are executed strictly in accordance with their terms, or pursuant to a lease amendment or a new lease (collectively, the "Superior Right Holders") with respect to such First Offer Space.  Tenant's right of first offer shall be on the terms and conditions set forth in this Section 10.

10.1Procedure for Offer.  Prior to Landlord entering into any new lease of the First Offer Space (other than to a Superior Right Holder) Landlord shall offer to lease to Tenant such First Offer Space (the "First Offer Notice").  If Landlord intends to lease the First Offer Space as a part of a transaction including additional space, then the First Offer Notice shall include such additional space as well as the First Offer Space.  The First Offer Notice shall describe the space so offered to Tenant and shall set forth the rent and other economic terms upon which Landlord is willing to lease such space to Tenant (the "First Offer Rent").

10.2Procedure for Acceptance.  If Tenant wishes to exercise Tenant's right of first offer with respect to the space described in the First Offer Notice, then within seven (7) business days after delivery of the First Offer Notice to Tenant, Tenant shall deliver notice to Landlord of Tenant's election to exercise its right of first offer with respect to the entire space described in the First Offer Notice on the terms contained in such notice.  If Tenant does not so notify Landlord within the seven (7) business day period, then Landlord shall be free to lease the space described in the First Offer Notice to anyone to whom Landlord desires on any terms Landlord desires.  Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first offer, if at all, with respect to all of the space offered by Landlord to Tenant at any particular time, and Tenant may not elect to lease only a portion thereof.

			
	
 
	
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10.3Construction In First Offer Space.  Tenant shall take the First Offer Space in its "as is" condition, subject to any improvement allowance granted as a component of the First Offer Rent, and the construction of improvements in the First Offer Space shall comply with the terms of the Lease.

10.4Amendment to Lease.  If Tenant timely exercises Tenant's right to lease the First Offer Space as set forth herein, Landlord and Tenant shall within fifteen (15) days thereafter execute an amendment to this Lease adding such First Offer Space (and any additional space) to the Premises upon the terms and conditions as set forth in the First Offer Notice and this Section 10.4.  Tenant shall commence payment of Rent for the First Offer Space, and the term of the First Offer Space shall commence upon the date of delivery of the First Offer Space to Tenant (the "First Offer Commencement Date") and terminate on the date set forth in the First Offer Notice.

10.5Termination of Right of First Offer.  The rights contained in this Section 10 shall be personal to the Original Tenant and a Permitted Assignee (defined below), and may only be exercised by the Original Tenant or a Permitted Assignee, as the case may be, (and not any other assignee, sublessee or other transferee of the Original Tenant's interest in the Lease) if the Original Tenant or a Permitted Assignee, as the case may be, occupies the entire Premises, and not less than two (2) years remain in the Term.  The right of first offer granted herein shall terminate upon the failure by Tenant to exercise its right of first offer with respect to First Offer Space as offered by Landlord.  Tenant shall not have the right to lease First Offer Space, as provided in this Section 10, if, as of the date of the attempted exercise of any right of first offer by Tenant, or as of the scheduled date of delivery of such First Offer Space to Tenant, Tenant is in default under the Lease, as amended, or Tenant has previously been in monetary or material non-monetary default under the Lease more than once. Tenant acknowledges that the terms of Section 2D of the Lease Agreement are terminated and of no further force or effect.  For the purposes of this Third Amendment, a "Permitted Assignee" shall mean any person or entity to whom the Lease is assigned pursuant to the terms of the Lease, as amended.

			
	
 
	
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11.Notices.  Notwithstanding anything to the contrary contained in the Lease, as of the date of this Third Amendment, any Notices to Landlord must be sent, transmitted, or delivered, as the case may be, to the following addresses:

 

		
	
if to Landlord:
	
c/o Beacon Capital Partners, LLC
One Sansome Street, Suite 710
San Francisco, California  94104
Attention:  Mr. McClure Kelly

And

	
 
	
c/o Beacon Capital Partners, LLC
200 State Street, 5th Floor
Boston, Massachusetts 02109
Attention:  General Counsel

And

	
 
	
Allen Matkins Leck Gamble Mallory & Natsis LLP
1901 Avenue of the Stars
Suite 1800
Los Angeles, California 90067
Attention:  Anton N. Natsis, Esq.

12.Insurance.  Effective as of the date hereof, Section 13 of the Office Lease shall be deleted and shall be replaced with the following:

"13.  LIABILITY INSURANCE. Tenant, at Tenant's expense, agrees to keep in force during the term of this Lease a policy of commercial general liability insurance with combined limits in the amount of $1,000,000 per occurrence/$5,000,000 aggregate per location for injuries to or death of persons and/or property damage occurring in, on or about the Premises or the Complex.  Tenant shall have the right to maintain the liability insurance required hereunder through any combination of primary general liability and "umbrella" policies of insurance, provided that the policies contain aggregate per location endorsements that provide the required levels of protection for the Premises and that such polices comply with the terms hereof.  Certificates of insurance evidencing this coverage shall be furnished to Landlord, shall name Landlord, and the entities designated on Exhibit C, attached hereto, as additional insured on a primary and non-contributory basis, and shall insure any liability of Landlord, contingent or otherwise, as respects acts or omissions of Tenant, its agents, employees or invitees or otherwise by any conduct or transactions of any of said persons in or about or concerning the Premises, including any failure of Tenant to observe or perform any of its obligations hereunder; shall be issued by an insurance company admitted to transact business in the -State of California; and the insurance effected thereby shall not be canceled, except upon thirty (30) days' prior written notice to Landlord. If, during the term of this Lease, in the considered opinion of Landlord's Lender or insurance advisor, the 

			
	
 
	
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amount of insurance described in this paragraph 13 is not adequate, Tenant agrees to increase said coverage to such reasonable amount as Landlord's Lender or insurance advisor shall reasonably deem adequate."

13.Remedies.  For the purposes of clarification, Landlord and Tenant hereby acknowledge and agree that pursuant to Section 22(b) of the Lease, Landlord shall continue to have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations).

14.Brokers.  Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Third Amendment other than Cushman & Wakefield and Jones Lang LaSalle (the "Brokers"), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Third Amendment.  Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys' fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent, other than the Brokers, occurring by, through, or under the indemnifying party.  The terms of this Section 14 shall survive the expiration or earlier termination of the term of the Lease, as hereby amended.

15.California Accessibility Disclosure. For purposes of Section 1938 of the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges that the Common Areas and the Premises have not undergone inspection by a Certified Access Specialist (CASp).  As required by Section 1938(e) of the California Civil Code, Landlord hereby states as follows:  "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law.  Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant.  The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises."  In furtherance of the foregoing, Landlord and Tenant hereby agree as follows:  (a) any CASp inspection requested by Tenant shall be conducted, at Tenant's sole cost and expense, by a CASp approved in advance by Landlord; and (b) pursuant to Section 17 of the Lease, Tenant, at its cost, is responsible for making any repairs within the Premises to correct violations of construction-related accessibility standards.

16.Counterparts. This Third Amendment may be executed in two or more identical counterparts and delivered by facsimile or electronic mail, with the same force and effect as if all required signatures were contained in a single, original instrument.

17.Ratification.  All of the terms of the Lease, as amended hereby, are hereby ratified and confirmed.

			
	
 
	
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18.Defined Terms.  Unless otherwise stated, all capitalized words in this Third Amendment that are not normally capitalized shall have the meaning ascribed in the Lease.

19.No Further Modification.  Except as specifically set forth in this Third Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

[signatures appear on following page]

			
	
 
	
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IN WITNESS WHEREOF, this Third Amendment has been executed as of the day and year first above written.

 

	
"LANDLORD"

 
	
BCSP CROSSROADS PROPERTY LLC, 

a Delaware limited liability company

 

	
By:
	
/s/ McClure Kelly
	
 

	
Name:
	
McClure Kelly
	
 

	
Title:
	
Senior Managing Director
	
 

	
 
	
Date:  May 1, 2017

The date of this Third Amendment shall be and remain as set in the introductory paragraph on page 1 of this Third Amendment.  The date below the Landlord's signature is merely intended to reflect the date of Landlord's execution of this Third Amendment.

	
"TENANT"
	
COUPA SOFTWARE INCORPORATED,

a Delaware corporation 

 

	
By:
	
/s/ Robert Bernshteyn
	
 

	
Name:
	
Robert Bernshteyn
	
 

	
Title:
	
Chief Executive Officer and Chairman of the Board
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Todd Ford
	
 

	
Name:
	
Todd Ford
	
 

	
Title:
	
Chief Financial Officer
	
 

 

 

			
	
 
	
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EXHIBIT A

OUTLINE OF EXPANSION PREMISES

 

			
	
 
	
EXHIBIT A

-1-
	
 

]

 

 

 

 

			
	
 
	
EXHIBIT A

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]

 

 

EXHIBIT B

TENANT WORK LETTER

 

This Tenant Work Letter shall set forth the terms and conditions relating to the construction of Suite 150.  This Tenant Work Letter is essentially organized chronologically and addresses the issues of the construction of improvements in Suite 150, in sequence, as such issues will arise during the actual construction of the Suite 150.  

SECTION 1

LANDLORD'S INITIAL CONSTRUCTION 

Landlord has constructed, at its sole cost and expense, the base, shell, and core (i) of Suite 150, and (ii) of the floor of the Building on which Suite 150 is located (collectively, the "Base, Shell, and Core"). 

SECTION 2

TENANT IMPROVEMENTS; GROUND FLOOR IMPROVEMENT ALLOWANCE

2.1Ground Floor Improvement Allowance.  Tenant shall be entitled to a one-time tenant improvement allowance (the "Ground Floor Improvement Allowance") in the amount of $1,137,640.00 for the costs relating to the initial design and construction of Tenant's improvements which are permanently affixed to Suite 150 (the "Tenant Improvements").  In no event shall Landlord be obligated to make disbursements pursuant to this Tenant Work Letter in a total amount which exceeds the Ground Floor Improvement Allowance.  All Tenant Improvements for which the Ground Floor Improvement Allowance has been made available shall be deemed Landlord's property under the terms of the Lease.

2.2Disbursement of the Ground Floor Improvement Allowance.  Except as otherwise set forth in this Tenant Work Letter, the Ground Floor Improvement Allowance shall be disbursed by Landlord (each of which disbursements shall be made pursuant to Landlord's disbursement process) for costs related to the construction of the Tenant Improvements and for the following items and costs (collectively, the "Ground Floor Improvement Allowance Items"):  (i) payment of the fees of the "Architect" and the "Engineers," as those terms are defined in Section 3.1 of this Tenant Work Letter, and payment of the fees incurred by, and the cost of documents and materials supplied by, Landlord and Landlord's consultants in connection with the preparation and review of the "Construction Drawings," as that term is defined in Section 3.1 of this Tenant Work Letter; (ii) the cost of any changes in the Base, Shell and Core when such changes are required by the Construction Drawings; (iii) the cost of any changes to the Construction Drawings or Tenant Improvements required by all applicable building codes (the "Code"); and (iv) the "Landlord Supervision Fee", as that term is defined in Section 4.3.2 of this Tenant Work Letter.

 

2.3Standard Tenant Improvement Package.  Landlord has established specifications (the "Specifications") for the Building standard components to be used in the construction of the Tenant Improvements in Suite 150 (collectively, the "Building Standards"), which Specifications shall be supplied to Tenant by Landlord.  The quality of Tenant Improvements shall be equal to or 

	
 
	
EXHIBIT B 

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]

 

 

of greater quality than the quality of the Specifications, provided that Landlord may, at Landlord's option, require the Tenant Improvements to comply with certain Specifications.  Landlord may make changes to the Specifications for the Building Standards from time to time.

 

2.4Remaining Ground Floor Improvement Allowance. If following the completion of the Tenant Improvements, the total cost of design, permitting and construction of such Tenant Improvements is less than the Ground Floor Improvement Allowance, then any such remaining amounts may be used by Tenant for "Refurbishments" in other areas of the Premises as set forth in Section 6 of the Third Amendment, or up to $10 per RSF of the ground floor Premises (i.e., $136,460 for Suites 100 and 150) may be used by Tenant as a credit against Basic Rent next coming due under the Lease. Any portion of the Ground Floor Improvement Allowance that remains unallocated and undisbursed, whether for payment of construction costs or as a credit against Basic Rent, as of October 1, 2019, shall revert to Landlord and Tenant shall have no further rights with respect thereto.

SECTION 3

CONSTRUCTION DRAWINGS

3.1Selection of Architect/Construction Drawings.  Tenant shall retain the architect/space planner designated by Landlord (the "Architect") to prepare the "Construction Drawings," as that term is defined in this Section 3.1.  Tenant shall retain the engineering consultants designated by Landlord (the "Engineers") to prepare all plans and engineering working drawings relating to the structural, mechanical, electrical, plumbing, HVAC, lifesafety, and sprinkler work of the Tenant Improvements.  The plans and drawings to be prepared by Architect and the Engineers hereunder shall be known collectively as the "Construction Drawings."  All Construction Drawings shall comply with the drawing format and specifications as determined by Landlord, and shall be subject to Landlord's approval.  Tenant and Architect shall verify, in the field, the dimensions and conditions as shown on the relevant portions of the base Building plans, and Tenant and Architect shall be solely responsible for the same, and Landlord shall have no responsibility in connection therewith.  Landlord's review of the Construction Drawings as set forth in this Section 3, shall be for its sole purpose and shall not imply Landlord's review of the same, or obligate Landlord to review the same, for quality, design, Code compliance or other like matters.  Accordingly, notwithstanding that any Construction Drawings are reviewed by Landlord or its space planner, architect, engineers and consultants, and notwithstanding any advice or assistance which may be rendered to Tenant by Landlord or Landlord's space planner, architect, engineers, and consultants, Landlord shall have no liability whatsoever in connection therewith and shall not be responsible for any omissions or errors contained in the Construction Drawings, and Tenant's waiver and indemnity set forth in this Lease shall specifically apply to the Construction Drawings.

3.2Final Space Plan.  On or before the date set forth in Schedule 1, attached hereto, Tenant and the Architect shall prepare the final space plan for Tenant Improvements in Suite 150 (collectively, the "Final Space Plan"), which Final Space Plan shall include a layout and designation of all offices, rooms and other partitioning, their intended use, and equipment to be contained therein, and shall deliver the Final Space Plan to Landlord for Landlord's approval.  At Landlord's option, prior to the submission of the "Final Working Drawings," as that term is defined 

	
 
	
EXHIBIT B 

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in Section 3.3, below, Tenant shall supply Landlord with intermediate stages of the Construction Drawings.

3.3Final Working Drawings.  On or before the date set forth in Schedule 1, Tenant, the Architect and the Engineers shall complete the architectural and engineering drawings for Suite 150, and the final architectural working drawings in a form which is complete to allow subcontractors to bid on the work and to obtain all applicable permits (collectively, the "Final Working Drawings") and shall submit the same to Landlord for Landlord's approval.

3.4Permits.  The Final Working Drawings shall be approved by Landlord (the "Approved Working Drawings") prior to the commencement of the construction of the Tenant Improvements.  Tenant shall immediately submit the Approved Working Drawings to the appropriate municipal authorities for all applicable building permits necessary to allow "Contractor," as that term is defined in Section 4.1, below, to commence and fully complete the construction of the Tenant Improvements (the "Permits"), and, in connection therewith, Tenant shall coordinate with Landlord in order to allow Landlord, at its option,  to take part in all phases of the permitting process and shall supply Landlord, as soon as possible, with all plan check numbers and dates of submittal and obtain the Permits on or before the date set forth in Schedule 1.  Notwithstanding anything to the contrary set forth in this Section 3.4, Tenant hereby agrees that neither Landlord nor Landlord's consultants shall be responsible for obtaining any building permit or certificate of occupancy for Suite 150 and that the obtaining of the same shall be Tenant's responsibility; provided however that Landlord shall, in any event, cooperate with Tenant in executing permit applications and performing other ministerial acts reasonably necessary to enable Tenant to obtain any such permit or certificate of occupancy.  No changes, modifications or alterations in the Approved Working Drawings may be made without the prior written consent of Landlord, provided that Landlord may withhold its consent, in its sole discretion, to any change in the Approved Working Drawings if such change would directly or indirectly delay the substantial completion of the Tenant Improvements.

3.5Time Deadlines.  Tenant shall use its best, good faith, efforts and all due diligence to cooperate with the Architect, the Engineers, and Landlord to complete all phases of the Construction Drawings and the permitting process and to receive the permits, and with Contractor for approval of the "Cost Proposal," as that term is defined in Section 4.2 of this Tenant Work Letter, as soon as possible after the execution of this Third Amendment, and, in that regard, shall meet with Landlord on a scheduled basis to be determined by Landlord, to discuss Tenant's progress in connection with the same.  The applicable dates for approval of items, plans and drawings as described in this Section 3, Section 4, below, and in this Tenant Work Letter are set forth and further elaborated upon in Schedule 1 (the "Time Deadlines"), attached hereto.  Tenant agrees to comply with the Time Deadlines.

SECTION 4

CONTRACTOR; CONTRACTOR'S WARRANTIES AND GUARANTIES

4.1Contractor.  A contractor designated by Landlord ("Contractor") shall construct the Tenant Improvements.  

	
 
	
EXHIBIT B 

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Landlord shall competitively bid the construction of the Tenant Improvements to three (3) general contractors selected by Landlord, and in the event that the total Construction Costs exceed the Ground Floor Improvement Allowance, then Landlord shall deliver the bids provided by such contractors to Tenant for its review, and Tenant shall thereafter, within two (2) business days (the "Tenant Improvement Elimination Period"), inform Landlord in writing as to any component of the Tenant Improvements which Tenant desires to eliminate from the Tenant Improvements (for purposes of reducing the total Construction Costs), and Landlord shall thereafter proceed with the construction of the Tenant Improvements (but excluding any components which Tenant elects not to have Landlord construct as provided above).  Tenant's failure to inform Landlord, on or before the expiration of the Tenant Improvement Elimination Period, of Tenant's election to eliminate any component of the Tenant Improvements shall be deemed Tenant's approval of the construction bids, and Landlord shall have the right to proceed with the construction of the Tenant Improvements pursuant to any such bid, as determined by Landlord.  

4.2Cost Proposal.  Landlord shall provide Tenant with a cost proposal from the Contractor, which cost proposal shall include, as nearly as possible, all costs to be incurred in connection with the design and construction of the Improvements (the "Cost Proposal").  Tenant shall approve and deliver the Cost Proposal to Landlord within five (5) business days of the receipt of the same, and upon receipt of the same by Landlord, Landlord shall be released by Tenant to purchase the items set forth in the Cost Proposal and to commence the construction relating to such items.  The date by which Tenant must approve and deliver the Cost Proposal to Landlord shall be known hereafter as the "Cost Proposal Delivery Date".  In the event Tenant does not approve or disapprove the Cost Proposal by the Cost Proposal Delivery Date, Tenant shall be deemed to have approved the same.  If Tenant disapproves the Cost Proposal because of a desire to value engineer the Improvements in a manner consistent with, and a logical extension of, the Final Space Plan and Landlord's Building standards, Landlord agrees to cause one (1) revision to the Cost Proposal in an effort to achieve such cost reductions; provided, however, that the time period commencing on the day immediately succeeding the Cost Proposal Delivery Date and ending on the date that Tenant approves the revised Cost Proposal or the initial Cost Proposal shall be deemed to be a period of Tenant Delay.

4.3Construction of Tenant Improvements by Contractor under the Supervision of Landlord.

4.3.1Over-Allowance Amount.  In the event that Cost Proposal is greater than the amount of the Ground Floor Improvement Allowance (the "Over-Allowance Amount"), then Tenant shall pay a percentage of each amount requested by the Contractor, which percentage shall be equal to the Over-Allowance Amount divided by the amount of the Cost Proposal (after deducting from the Cost Proposal any amounts expended in connection with the preparation of the Construction Drawings, and the cost of all other Ground Floor Improvement Allowance Items incurred prior to the commencement of construction of the Tenant Improvements), and such payments by Tenant (the "Over-Allowance Payments") shall be a condition to Landlord's obligation to pay any amounts from the Ground Floor Improvement Allowance.  In the event that, after the Cost Proposal Delivery Date, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs for such design and construction in excess of the Cost Proposal shall be added to the Over-Allowance Amount and the Cost Proposal, and the Over-Allowance Payments shall be recalculated in accordance with the terms of the immediately 

	
 
	
EXHIBIT B 

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]

 

 

preceding sentence.  All Tenant Improvements paid for by the Over-Allowance Amount shall be deemed Landlord's property under the terms of the Lease.  Tenant hereby acknowledges and agrees that Tenant shall be responsible for all costs associated with the Tenant Improvements to the extent the same exceed the Ground Floor Improvement Allowance (notwithstanding the content of the Cost Proposal).

4.3.2Landlord's Retention of Contractor.  Landlord shall independently retain Contractor, on behalf of Tenant, to construct the Tenant Improvements in accordance with the Approved Working Drawings and the Cost Proposal and Landlord shall supervise the construction by Contractor, and Tenant shall pay a construction supervision and management fee (the "Landlord Supervision Fee") to Landlord in an amount equal to the product of (i) three percent (3%) and (ii) an amount equal to the Ground Floor Improvement Allowance plus the Over-Allowance Amount (as such Over-Allowance Amount may increase pursuant to the terms of this Tenant Work Letter).

4.3.3Contractor's Warranties and Guaranties.  Landlord hereby assigns to Tenant all warranties and guaranties by Contractor relating to the Tenant Improvements, and Tenant hereby waives all claims against Landlord relating to, or arising out of the construction of, the Tenant Improvements.

4.3.4Tenant's Covenants.  Tenant hereby indemnifies Landlord for any loss, claims, damages or delays arising from the actions of Architect in Suite 150 or in the Building.  Within ten (10) days after completion of construction of the Tenant Improvements, Tenant shall cause Contractor and Architect to cause a Notice of Completion to be recorded in the office of the County Recorder of the county in which the Building is located in accordance with applicable law and furnish a copy thereof to Landlord upon recordation, failing which, Landlord may itself execute and file the same on behalf of Tenant as Tenant's agent for such purpose.  In addition, immediately after the substantial completion of the Tenant Improvements, Tenant shall have prepared and delivered to the Building a copy of the "as built" plans and specifications (including all working drawings) for the Tenant Improvements.

SECTION 5

MISCELLANEOUS

5.1Tenant's Representative.  Tenant has designated Adrianna Tozzi as its sole representative with respect to the matters set forth in this Tenant Work Letter, who shall have full authority and responsibility to act on behalf of the Tenant as required in this Tenant Work Letter.

5.2Landlord's Representative.  Landlord has designated Michael Pabros as its sole representatives with respect to the matters set forth in this Tenant Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as required in this Tenant Work Letter.

5.3Time of the Essence in This Tenant Work Letter.  Unless otherwise indicated, all references herein to a "number of days" shall mean and refer to calendar days.  If any item requiring approval is timely disapproved by Landlord, the procedure for preparation of the document and approval thereof shall be repeated until the document is approved by Landlord.

	
 
	
EXHIBIT B 

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5.4Tenant's Lease Default.  Notwithstanding any provision to the contrary contained in the Lease, as amended, if an event of default as described in the Lease or this Tenant Work Letter has occurred more than once on or before the substantial completion of the Tenant Improvements and such event of default has delayed the completion of the Tenant Improvements, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, as amended, Landlord may cause Contractor to cease the construction of the Tenant Improvements (in which case, Tenant shall be responsible for any delay in the substantial completion of the Tenant Improvements in Suite 150 caused by such work stoppage), and (ii) all other obligations of Landlord under the terms of this Tenant Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of this Lease (in which case, Tenant shall be responsible for any delay in the substantial completion of the Tenant Improvements in Suite 150 caused by such inaction by Landlord).

5.5Tenant's Vacation of Suite 150 During Construction.  Tenant hereby acknowledges that, notwithstanding Tenant’s occupancy of Suite 150 during the performance of the Tenant Improvements, Landlord shall be permitted to construct the Tenant Improvements in Suite 150 during normal business hours, and Tenant shall provide a clear working area for such work (including, but not limited to, the moving of furniture, fixtures and Tenant’s property away from the area in which Landlord is constructing the Tenant Improvements, or, depending on the scope of the Tenant Improvements, upon prior notice, entirely vacating Suite 150 during the course of construction of the Tenant Improvements).  Tenant hereby agrees that the construction of the Tenant Improvements, and vacation of all or any portion of Suite 150 during the course of construction, shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of rent.  Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the Tenant Improvements, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Tenant Improvements or Landlord’s actions in connection with the Tenant Improvements, or for any inconvenience or annoyance occasioned by the Tenant Improvements or Landlord's actions in connection with the Tenant Improvements.

 

	
 
	
EXHIBIT B 

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]

 

 

SCHEDULE 1

SCHEDULE TO EXHIBIT B

TIME DEADLINES

 

				
	
 
	
Dates
	
 
	
Actions to be Performed

	
A.
	
May 31, 2017
	
 
	
Final Space Plan to be completed by Tenant and delivered to Landlord.

	
 
	
 
	
 
	
 

	
B.
	
June 30, 2017
	
 
	
Tenant to deliver Final Working Drawings to Landlord.

	
 
	
 
	
 
	
 

	
C.
	
August 31, 2017
	
 
	
Tenant to deliver Permits to Contractor.

	
 
	
 
	
 
	
 

	
D.
	
Five (5) business days after the receipt of the Cost Proposal by Tenant
	
 
	
Tenant to approve Cost Proposal and deliver Cost Proposal to Landlord.

 

 

	
 
	
SCHEDULE 1

-1-
	
 

 

 

EXHIBIT C

NAME OF ADDITIONAL INSUREDS

 

BCSP VII Investments L.P. 

BCSP VII Alternative Investments L.P. 

BCSP Crossroads GP LLC 

BCSP Crossroads LP LLC 

BCSP Crossroads Alternative LP 

BCSP Co-Investment JV L.P. 

BCSP Crossroads Holding LLC 

BCSP Crossroads Property LLC 

BCSP Property Management LLC 

Beacon Capital Partners LLC

Jones Lang LaSalle Americas

			
	
 
	
EXHIBIT C 

-1-EX-10.1

 Exhibit 10.1 

WILLIAMS–SONOMA, INC. 2001 LONG-TERM INCENTIVE PLAN 

RESTRICTED STOCK UNIT AWARD AGREEMENT 

FOR GRANTS TO EMPLOYEES (“AGREEMENT”) 
  

			
	Name:	  	Employee ID:
		
	Grant Date:	  	Grant Number:
		
	Number of RSUs:	  	Grant Date FMV:

  

	1.	Award. Williams-Sonoma, Inc. (the “Company”), has awarded you the number of Restricted Stock Units indicated above (“Award”). Each Restricted Stock Unit entitles you to receive one share of
Common Stock of the Company upon the terms and subject to the conditions set forth in the Company’s 2001 Long-Term Incentive Plan (the “Plan”) and this Award. Prior to the distribution of any shares, this Award represents an unsecured
obligation, payable only from the general assets of the Company. 

 Except as specified herein, shares of Common Stock will be
issued to you or, in case of your death, your beneficiary designated in accordance with the procedures specified by the Administrator on or shortly following the Vesting Date. If at the time of your death, there is not an effective beneficiary
designation on file or you are not survived by your designated beneficiary, the shares will be issued to the legal representative of your estate or other beneficiary as determined under applicable law. 

 

	2.	Vesting. Subject to any acceleration provisions contained in the Plan or this Agreement, the Restricted Stock Units subject to this Award will vest as follows: 

Vesting of this Award is conditioned upon the Company achieving positive net cash provided by operating activities for fiscal [INSERT FISCAL
YEAR OF GRANT] as provided on the Company’s final audited consolidated statements of cash flows for fiscal [INSERT FISCAL YEAR OF GRANT], subject to adjustments, if any, as set forth in resolutions of the Compensation Committee of the Board,
dated [INSERT DATE] (the “Performance Goal”) and as certified by the Compensation Committee of the Board. If the Performance Goal has been achieved, 50% of this Award will vest on each anniversary of the Grant Date over two years
(“Vesting Dates”), subject to your continued employment with the Company or one of its affiliates through each relevant Vesting Date. 

Subject to the provisions of Sections 6, 13 and 14, shares of Common Stock will be issued in payment of the Award as soon as practicable upon
or after each Vesting Date (but in each such case no later than sixty (60) days following the Vesting Date), net of shares of Common Stock withheld by the Company to satisfy the minimum statutorily required federal, state, foreign and local tax
withholding obligations, as provided in Section 10. You will have no right to receive shares under this Award unless and until the Restricted Stock Units vest. 
  

	3.	Termination Of Employment. 

  

	 	(a)	If you cease to be employed due to your death or Disability (as defined below), then as of the first business day of the month following the date of termination of your employment, you will vest in the number of
unvested Restricted Stock Units equal to the Pro Rata Number (as defined below). In such event, the Pro Rata Number of shares underlying the remaining Restricted Stock Units shall be delivered as of the first business day of the month following the
date of termination of your employment, subject to the provisions of Sections 6, 13 and 14 below. The “Pro Rata Number” is defined as: 

50% of the number of Restricted Stock Units subject to this Award multiplied by a fraction, the numerator of which is the number of full
calendar months you continued employment with the Company from the most recently completed Vesting Date (or from the Grant Date for ceases of employment within twelve months of the Grant Date) through and including your termination date, and the
denominator of which is 12. 

  
 1 

 “Disability” is defined as any one or more of the following: (i) your being
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to last for a continuous period of not less than twelve (12) months; (ii) you are, by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less
than three (3) months under the Company’s accident and health plan covering the Company’s employees; or (iii) you have been determined to be totally disabled by the Social Security Administration. 

 

	 	(b)	If you cease to be employed due to your Retirement (as defined below), then as of the first business day of the month following the date of termination of your employment, you will become immediately vested in any
Restricted Stock Units that have not previously vested. In such event, all shares underlying any remaining Restricted Stock Units shall be delivered as of the first business day of the month following the date of termination of your employment,
subject to the provisions of Sections 6, 13 and 14 below. 

 “Retirement” is defined as your termination of
employment for a reason other than Disability or death subsequent to your having attained age 70 and having been employed by the Company or one of its affiliate for at least 15 years. Notwithstanding the preceding sentence, a termination will not be
considered a Retirement if you are terminated for “Cause” by the Company or one of its affiliates. For this purpose, “Cause” shall be defined as (i) embezzlement, theft or misappropriation by you of any property of any of
the Company or its affiliates; (ii) your breach of any fiduciary duty to the Company or its affiliates; (iii) your failure or refusal to comply with laws or regulations applicable to the Company or its affiliates and their businesses or
the policies of the Company and its affiliates governing the conduct of its employees or directors; (iv) your gross incompetence in the performance of your job duties; (v) commission by you of a felony or of any crime involving moral
turpitude, fraud or misrepresentation; (vi) your failure to perform duties consistent with a commercially reasonable standard of care; (vii) your failure or refusal to perform your job duties or to perform specific directives of your
supervisor or designee, or the senior officers or Board of Directors of the Company; or (viii) any gross negligence or willful misconduct by you resulting in loss to the Company or its affiliates, or damage to the reputation of the Company or
its affiliates. 
  

	 	(c)	If you cease to be employed other than due to a termination described in (a) or (b) above, and except as provided otherwise in a Company plan or individual agreement covering you, all then unvested Restricted Stock
Units (including dividend equivalents, if any) awarded hereby shall immediately terminate without notice to you and shall be forfeited. For the purposes of this Agreement, termination of employment shall be considered to be the last day of your
active service for the Company and its affiliates and such termination of employment date shall not be extended by any notice of termination period (or garden leave) required under applicable local law. 

 

	4.	No Employment Agreement. Neither the Award nor the delivery to you of this Agreement or any other document relating to the Restricted Stock Units will confer on you the right to continued employment with or other
service to the Company or any Parent or Subsidiary. You agree that this Agreement, the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued employment or service
for the vesting period, for any period, or at all, and will not interfere in any way with your right or the right of the Company (or the Parent or Subsidiary employing or retaining you) to terminate your employment or other service relationship at
any time, with or without cause or notice provided compliant with applicable local law. 

  

	5.	Dividend Equivalents. During the period beginning on the Grant Date as indicated above and ending on the date that the Restricted Stock Unit is settled or terminates, whichever occurs first, you will accrue cash
payments based on the cash dividend that would have been paid on the Restricted Stock Unit had the Restricted Stock Unit been an issued and outstanding share of Common Stock on the record date for the dividend. Such accrued dividends will vest and
become payable upon the same terms and at the same time as the Restricted Stock Units to which they relate, including any delay in payment to which the related Restricted Stock Units may be subject pursuant to Sections 6 and 13 and will be paid
in cash. Dividend equivalent payments will be net of federal, state, foreign and local withholding taxes to the extent such withholding is required. 

  
 2 

	6.	Deferral. If permitted by the Administrator, the issuance of the Common Stock issuable with respect to this Award may be deferred upon such terms and conditions as determined by the Administrator, subject to the
Administrator’s determination that any such right of deferral or any term thereof complies with applicable laws or regulations in effect from time to time. If you are located outside the U.S., you will not be permitted to elect to defer the
settlement of your Restricted Stock Units. 

  

	7.	Nontransferable. You may not sell, assign, pledge, encumber or otherwise transfer any interest in the Restricted Stock Units or the right to receive dividend equivalents thereon. 

 

	8.	Other Restrictions. The issuance of Common Stock under this Award is subject to compliance by the Company and you with all applicable legal requirements applicable thereto and with all applicable regulations of
any stock exchange on which the Common Stock may be listed at the time of issuance. The Company may delay the issuance of shares of Common Stock under this Award to ensure at the time of issuance there is a registration statement for the shares in
effect under the Securities Act of 1933. 

  

	9.	Additional Provisions. This Award is subject to the provisions of the Plan. Capitalized terms not defined in this Award are used as defined in the Plan. If the Plan and this Award are inconsistent, the provisions
of the Plan will govern, except as specifically provided herein. Interpretations of the Plan and this Award by the Committee are binding on you and the Company. 

  

	10.	Tax Withholding. You acknowledge that, regardless of any action taken by the Company or, if different, your employer, the ultimate liability for any or all income tax, social insurance contributions,
payroll tax or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”) is and remains your
responsibility and may exceed the amount withheld by the Company or your employer. You further acknowledge that the Company and/or your employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award and (2) do not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of
any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or your employer (or former employer, as applicable) may be required to withhold or account for Tax-Related
Items in more than one jurisdiction. 

 You agree that the Company may satisfy such withholding by any or a combination of the
following methods: (i) by requiring you to pay such amount in cash or check; (ii) by deducting such amount out of any other compensation otherwise payable to you; (iii) by the Company withholding a number of shares issuable in respect
of the Award having a fair market value equal to the amount of Tax-Related Items that the Company determines it or your employer is required to withhold; and/or (iv) arranging for the Company’s
designated broker (if any, or any broker acceptable to the Company) to sell shares having a fair market value equal to the amount of Tax-Related Items that the Company determines it is required to withhold
(and, in the case of using the Company’s designated broker, you authorize such sale by accepting the terms of this Award). If the obligation for Tax-Related Items is satisfied by withholding in shares,
for tax purposes, you are deemed to have been issued the full number of shares subject to the vested Award, notwithstanding that a number of the shares are held back solely for the purpose of paying the
Tax-Related Items. 
 If the Tax-Related Items are not
satisfied for any reason or if you otherwise fail to comply with your obligations in connection with the Tax-Related Items as described in this section, the Company may refuse to deliver the shares pursuant to
this Award. 
  

	11.	Address for Notices. Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company, in care of its Stock Plan Administrator, at 3250 Van Ness Avenue, San Francisco, CA
94109 USA, or at such other address as the Company may hereafter designate in writing. 

  

	12.	Non-accrual of Rights. In accepting your Award, you acknowledge that: 

  
 3 

	 	•	 	the Plan is established voluntarily by the Company; it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Award
Agreement; 

  

	 	•	 	the grant of your Award is voluntary and occasional and does not create any contractual or other right to receive future grants of awards, or benefits in lieu of awards, even if awards have been granted in the past;

  

	 	•	 	all decisions with respect to future Awards under the Plan, if any, will be at the sole discretion of the Company; 

  

	 	•	 	you are voluntarily participating in the Plan; 

  

	 	•	 	the Award and the shares of Common Stock subject to the Award are not intended to replace any pension rights or compensation; 

  

	 	•	 	the Award and the shares of Common Stock subject to the Award, and the income and value of same, are not part of normal or expected compensation or salary for any purpose, including, but not limited to, for purposes of
calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare
benefits or similar payments; 

  

	 	•	 	the future value of the shares of Common Stock subject to your Award is unknown, indeterminable and cannot be predicted with certainty; 

 

	 	•	 	no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from the termination of your employment or other service relationship (for any reason whatsoever, whether or not
later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment or service agreement, if any), and in consideration of the grant of the Award to which you are otherwise not
entitled, you irrevocably agree never to institute any such claim against the Company or any Subsidiary, waive your ability, if any, to bring any such claim, and release the Company and all Subsidiaries from any such claim; if, notwithstanding
the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to
request dismissal or withdrawal of such claim; 

  

	 	•	 	unless otherwise provided in the Plan or determined by the Company in its discretion, the Award and the benefits evidenced by this Award Agreement do not create any entitlement to have the Award or any such benefits
transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and 

 

	 	•	 	you acknowledge and agree that neither the Company nor any Subsidiary shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the
Award or of any amounts due to you pursuant to the settlement of the Award, the payment of dividend equivalents or the subsequent sale of any shares of Common Stock acquired upon settlement. 

 

	13.	409A Settlement Provisions. Please note Sections 13 and 14 are applicable only to U.S. taxpayers. Notwithstanding anything in the Plan or this Agreement to the contrary, if the vesting of the
balance, or some lesser portion of the balance, of the Restricted Stock Units is accelerated in connection with your Retirement or other termination of employment (provided that such termination is a “separation from service” within the
meaning of Section 409A, as determined by the Company), other than due to death, and if (x) you are a “specified employee” within the meaning of Section 409A at the time of such termination and (y) the payment of such
accelerated Restricted Stock Units will result in the imposition of additional tax under Section 409A if paid to you on or within the six (6) month period following your termination of employment, then the payment of such accelerated
Restricted Stock Units otherwise payable to you during such six (6) month period will accrue and will be paid to you on the date six (6) months and one (1) day following the date of your termination of employment, unless you die
following your termination of employment, in which case, the Restricted Stock Units will be paid in shares of Common Stock to your estate as soon as practicable following your death. It is the intent of this Agreement to comply with, or be exempt
from, the requirements of Section 409A so that none of the Restricted Stock Units provided under this Agreement or shares of Common Stock issuable thereunder will be subject to the additional tax imposed under Section 409A, and any
ambiguities herein will be interpreted to so comply or be exempt. For purposes of this Agreement, “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and any proposed, temporary or final Treasury
Regulations and Internal Revenue Service guidance thereunder, as each may be amended from time to time. 

  
 4 

	14.	Transactions. 

  

	 	(a)	Section 409A Change of Control. In the event of a Transaction that qualifies as a change in the ownership or effective control of the Company or a change in the ownership of a
substantial portion of the Company’s assets, each within the meaning of Section 409A (each, a “409A Change of Control”): 

  

	 	(i)	Following Share Deferral. If you have elected to defer receipt of your shares of Common Stock such that this Award is subject to Section 409A: 

 

	 	(x)	Vested Deferred Shares. With respect to the then-vested but deferred shares of Common Stock subject to this Award, if the Award is not assumed or substituted for as provided in Section 17 of the Plan, your
shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock in such Transaction) payable to you in connection with this portion of the Award will be delivered to you as soon as practicable
following the date on which such Transaction is consummated, within sixty (60) days of the consummation of the Transaction (or, if required for compliance with Section 409A, in accordance with the applicable deferral election and the
provisions hereof that apply thereunder), subject to Section 13 hereof. 

  

	 	(y)	Unvested Restricted Stock Units. With respect to then-unvested Restricted Stock Units subject to this Award, if such portion of the Award is not assumed or substituted for as provided in Section 17 of the
Plan, such portion of the Award will vest 100% immediately prior to its termination pursuant to Section 17 of the Plan, and your shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock
in such Transaction) payable to you in connection with this portion of the Award will be delivered to you as soon as practicable following the date on which such Transaction is consummated, within sixty (60) days of the consummation of the
Transaction (or, if required for compliance with 409A, in accordance with the applicable deferral election and the provisions hereof that apply thereunder), subject to Section 13 hereof. 

If the Award is assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award shall continue to vest (or
remain outstanding if already vested) in accordance with the terms of this Agreement and the Plan and be delivered to you in accordance with the applicable deferral election and the provisions hereof that apply thereunder (subject to Section 13
hereof). 
  

	 	(ii)	Retirement Eligibility. If this Award is subject to Section 409A by reason of your Retirement eligibility or any other reason, and you have not elected to defer receipt of your shares of Common Stock,
then with respect to then-unvested Restricted Stock Units subject to this Award: 

  

	 	(x)	If such portion of the Award is not assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award will vest 100% immediately prior to its termination pursuant to Section 17 of the
Plan, and all the shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock in such Transaction) payable to you in connection with this portion of the Award will be delivered to you as soon as
practicable following the date on which such Transaction is consummated, within sixty (60) days of the consummation of the Transaction (or, if required for compliance with Section 409A, on the same dates specified under the terms of this
Agreement including, but not limited to, Sections 2 and 3 hereof), subject to Section 13 hereof. 

  
 5 

	 	(y)	If such portion of the Award is assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award shall continue to vest in accordance with the terms of this Agreement and the Plan and be
delivered to you on the same dates specified under the terms of this Agreement (including, but not limited to Sections 2, 3 and 13 hereof). 

  

	 	(iii)	Following Both Share Deferral and Retirement Eligibility. If your Award is subject to Section 409A by reason of your Retirement eligibility and you have elected to defer receipt of your shares of
Common Stock, such that this Award is subject to Section 409A, the provisions of Section 14(a)(i) (“Section 409A Change of Control – Following Share Deferral”) shall apply. 

 

	 	(iv)	No Deferral or Retirement Eligibility. If you are not eligible for Retirement such that your Award is not subject to Section 409A and have not elected to defer receipt of your shares of Common Stock,
and this Award is otherwise exempt from Section 409A, the then-unvested Restricted Stock Units subject to this Award will be treated pursuant to Section 17 of the Plan, subject to the provisions of Section 13 hereof.

  

	 	(b)	Non-Section 409A Change of Control. In the event of a Transaction that does not qualify as a 409A Change of Control: 

 

	 	(i)	Following Share Deferral. If you have elected to defer receipt of your shares of Common Stock such that this Award is subject to Section 409A: 

 

	 	(x)	Vested Deferred Shares. With respect to the then-vested but deferred shares of Common Stock subject to this Award, regardless of whether such portion of the Award is or is not assumed or substituted for as
provided in Section 17 of the Plan, the shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock in such Transaction) payable to you in connection with this portion of the Award will be
delivered to you on the same dates specified in your deferral election and the provisions hereof that apply thereunder (subject to Section 13 hereof). 

  

	 	(y)	Unvested Restricted Stock Units. With respect to then-unvested Restricted Stock Units subject to this Award: 

  

	 	(1)	If such portion of the Award is not assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award will vest 100% immediately prior to its termination pursuant to Section 17 of the
Plan, but the shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock in such Transaction) payable to you in connection with this portion of the Award will be delivered to you on the same
dates specified in your deferral election and the provisions hereof that apply thereunder (subject to Section 13 hereof), in each case regardless of any acceleration of the vesting of such Restricted Stock Units which may occur in connection
with the Transaction. 

  

	 	(2)	If such portion of the Award is assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award shall continue to vest in accordance with the terms of this Agreement and the Plan and be
delivered to you in accordance with the applicable deferral election and the provisions hereof that apply thereunder (subject to Section 13 hereof). 

  

	 	(ii)	Retirement Eligibility. If this Award is subject to Section 409A by reason of your Retirement eligibility or any other reason, and you have not elected to defer receipt of your shares of Common Stock,
then with respect to then-unvested Restricted Stock Units subject to this Award: 

  
 6 

	 	(x)	If such portion of the Award is not assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award will vest 100% immediately prior to its termination pursuant to Section 17 of the
Plan, but the shares of Common Stock (or the per share consideration received by a majority of the holders of such Common Stock in such Transaction) payable to you in connection with this portion of the Award will be delivered to you on the same
dates specified under the terms of this Agreement (including, but not limited to Sections 2, 3 and 13 hereof), regardless of any acceleration of the vesting of such Restricted Stock Units which may occur in connection with the Transaction.

  

	 	(y)	If such portion of the Award is assumed or substituted for as provided in Section 17 of the Plan, such portion of the Award shall continue to vest in accordance with the terms of this Agreement and the Plan and,
regardless of any acceleration of the vesting of such Restricted Stock Units which may occur in connection with the Transaction, be delivered to you on the same dates specified under the terms of this Agreement (including, but not limited to
Sections 2, 3 and 13 hereof). 

  

	 	(iii)	Following Both Share Deferral and Retirement Eligibility. If this Award is subject to Section 409A by reason of your Retirement eligibility and you have elected to defer receipt of your shares of
Common Stock, such that this Award is subject to Section 409A, the provisions of Section 14(b)(i) (“Non-Section 409A Change of Control – Following Share Deferral”) shall apply.

  

	 	(iv)	No Deferral or Retirement Eligibility. If you are not eligible for Retirement such that your Award is not subject to Section 409A and have not elected to defer receipt of your shares of Common Stock,
and this Award is otherwise exempt from Section 409A, the then-unvested Restricted Stock Units subject to this Award will be treated pursuant to Section 17 of the Plan, subject to the provisions of Section 13 hereof.

  

	15.	Governing Law and Venue. The Award and the provisions of this Agreement are governed by, and subject to, the laws of the State of California without regard to the conflict of law provisions, as provided in the
Plan. Further, for purposes of any action, lawsuit or other proceedings brought to enforce this Agreement, relating to it, or arising from it, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of San
Francisco County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this grant is made and/or to be performed. 

 

	16.	Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. You hereby consent to
receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

  

	17.	Severability and Waiver. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions
shall nevertheless be binding and enforceable. Further, you acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any
subsequent breach by you or any other Plan participant. 

  

	18.	Imposition of Other Requirements. The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any shares of Common Stock acquired under the Plan, to the
extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

 

	19.	No Advice. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan or your acquisition or sale of Common Shares. You
are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

  
 7 

	20.	Language. If Employee has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the
English version will control. 

  

	21.	Country-Specific Appendix. Notwithstanding any provisions in this Agreement or the Plan, the grant of Restricted Stock Units shall be subject to any special terms and conditions as set forth in the Appendix to
this Agreement for your country of residence. Moreover, if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you to the extent the Company determines that the application
of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Appendix constitutes part of this Agreement. 

Revised for grants on or after April 22, 2014 

  
 8 

 APPENDIX TO WILLIAMS–SONOMA, INC. 2001 LONG-TERM INCENTIVE PLAN 

PERFORMANCE STOCK UNIT AWARD AGREEMENT 

ADDITIONAL TERMS AND PROVISIONS 

FOR EMPLOYEES OUTSIDE THE UNITED STATES 

Terms and Conditions 
 This Appendix includes
additional terms and conditions that govern the Awards granted to you under the Plan if you presently reside in or subsequently transfer to one of the countries listed below. Certain capitalized terms used but not defined in this
Appendix have the meanings set forth in the Plan and/or the Agreement. 
 Notifications 

This Appendix also includes information regarding exchange controls and certain other issues of which you should be aware with respect to your participation in
the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2014. Such laws are often complex and change frequently. As a result, the Company strongly recommends that you do
not rely on the information in this Appendix as the only source of information relating to the consequences of your participation in the Plan because the information may be out of date at the time that the Restricted Stock Units vest or you sell
shares acquired under the Plan. 
 In addition, the information contained herein is general in nature and may not apply to your particular situation and the
Company is not in a position to assure you of a particular result. Accordingly, you are advised to see appropriate professional advice as to how the relevant laws in your country may apply to your situation. 

Finally, if you are a citizen or resident of a country other than the one in which you are currently working, the information contained herein may not be
applicable to you. 
 The following provision regarding data privacy is applicable to all employees located outside the U.S. 

You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing your participation in the Plan. 

You understand that the Company and its Subsidiaries hold certain personal information about you, including, but not limited to, your name, home address
and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all awards or any other entitlement to shares of stock
awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”). You understand that Data may be transferred to any third parties assisting in the
implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere, including outside the European Economic Area, and that the recipient’s country may have different data privacy laws
and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker or
other third party with whom you may elect to deposit any shares of stock pursuant to this Award. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan, including any
deferral election thereunder. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any
case without cost, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your
consent, your employment status (if any) or service and career with the Company or your employer will not be adversely affected; the only adverse consequence of refusing or withdrawing your consent is that the Company would not be able to grant you
Restricted Stock Units or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of
your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative. 

  
 9 

 AUSTRALIA 

Terms and Conditions 
 Australian Securities
Laws. If the Company determines in its sole discretion that issuing shares to you at vesting is not permitted or not feasible under Australian securities regulations, the Company will cancel your Award without compensation or benefits in lieu of the
Award. Also, if you acquire shares of Common Stock under the Plan and resell them in Australia, you may be required to comply with certain Australian securities law disclosure requirements. 

CANADA 
 Terms and Conditions

 Form of Settlement. Awards granted to employees resident in Canada shall be paid in shares only. In no event shall any of such Awards be
paid in cash, notwithstanding any discretion contained in the Plan to the contrary. 
 Termination of Service. This provision replaces
Section 3 of the Agreement: 
 In the event of the termination of your service for any reason (whether or not in breach of local labor laws)
other than death, Disability or Retirement, all unvested Awards shall be immediately forfeited without consideration. For purposes of the preceding sentence, your right to vest in the Awards will terminate effective as of the date that is the
earlier of (1) the date you receive notice of termination of service from the Company or your employer, or (2) the date your service terminates, regardless of any notice period or period of pay in lieu of such notice required under local
law (including, but not limited to statutory law, regulatory law and/or common law); the Company shall have the exclusive discretion to determine when you are no longer providing service for purposes of the Awards. 

Authorization of Release and Transfer Necessary Personal Information. This provision supplements the data privacy consent provision above: 

You hereby authorize the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional
or not, involved in the administration and operation of the Plan. You further authorize the Company, any Subsidiary or Affiliate and the administrator of the Plan to disclose and discuss the Plan with their advisors. You further authorize the
Company and any Subsidiary or Affiliate to record such information and to keep such information in your employee file. 
 French Language Provision.
The following provisions will apply if you are a resident of Quebec: 
 The parties acknowledge that it is their express wish that this Agreement, as
well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 

  
 10 

 Les parties reconnaissent avoir exigé la redaction en anglais de cette convention
(“Agreement”), ainsi que de tous documents exécutés, avis donnés et procedures judiciaries intentées, directement ou indirectement, relativement a la présente convention. 

CHINA 
 Terms and Conditions

 Exchange Control Requirements. You understand and agree that, pursuant to local exchange control requirements, you will be required to
repatriate the cash proceeds from the sale of the shares issued upon the vesting of the Awards to China. You further understand that, under local law, such repatriation of your cash proceeds may need to be effectuated through a special exchange
control account established by the Company, Subsidiary or Affiliate or your employer, and you hereby consent and agree that any proceeds from the sale of any shares issued upon the vesting of the Awards you acquire may be transferred to such special
account prior to being delivered to you. If the proceeds from the sale of your shares are converted to local currency, you acknowledge that the Company is under no obligation to secure any exchange conversion rate, and the Company may face delays in
converting the proceeds to local currency due to exchange control restrictions in China. You agree to bear the risk of any exchange conversion rate fluctuation between the date the Awards vest and the date of conversion of the proceeds from the sale
of the shares issued upon vesting to local currency. You further agree to comply with any other requirements that may be imposed by the Company in the future in order to facilitate compliance with exchange control requirements in China. 

FRANCE 
 Terms and Conditions

 Not French-Qualified Award. Your Awards are not intended to be French tax qualified. 

Consent to Receive Information in English. By accepting the Awards, you confirm having read and understood the Plan and the Agreement, which were
provided in the English language. You accept the terms of those documents accordingly. 
 En acceptant cette attribution gratuite d’actions, vous
confirmez avoir lu et comprenez le Plan et ce Contrat, incluant tous leurs termes et conditions, qui ont été transmis en langue anglaise. Vous acceptez les dispositions de ces documents en connaissance de cause. 

INDIA 
 Notifications

 Exchange Control Information. You understand that you must repatriate any proceeds from the sale of shares acquired under the Plan to India
and convert the proceeds into local currency within 90 days of receipt. You will receive a foreign inward remittance certificate (“FIRC”) from the bank where you deposit the foreign currency. You should maintain the FIRC as evidence of the
repatriation of funds in the event the Reserve Bank of India or your employer requests proof of repatriation. 
 Tax Information. To determine the
taxable amount of income from your Award, the Company or your employer may obtain a valuation from a Merchant Banker in India. Neither the Company nor your employer is under any obligation to obtain a valuation at a particular price nor are they
required to obtain a valuation more frequently than every 180 days. 

  
 11 

 INDONESIA 

Notifications 
 Exchange Control Information.
If you remit proceeds from the sale of shares into Indonesia, the Indonesian Bank through which the transaction is made will submit a report on the transaction to the Bank of Indonesia for statistical reporting purposes. For transactions of
US$10,000 or more, a description of the transaction must be included in the report. Although the bank through which the transaction is made is required to make the report, you must complete a “Transfer Report Form.” The Transfer Report
Form will be provided to you by the bank through which the transaction is made. 
 ITALY 

Terms and Conditions 
 Authorization to Release
and Transfer Necessary Personal Information. This provision replaces in its entirety the data privacy consent provision above: 
 You understand
that your employer (the “Employer”) and/or the Company may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social security number (or any other social
or national identification number), salary, nationality, job title, number of shares held and the details of all Restricted Stock Units or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding (the
“Data”) for the purpose of implementing, administering and managing your participation in the Plan. You are aware that providing the Company with your Data is necessary for the performance of this Agreement and that your refusal to provide
such Data would make it impossible for the Company to perform its contractual obligations and may affect your ability to participate in the Plan. 

The Controller of personal data processing is Williams-Sonoma Italy S.r.l., and, pursuant to D.lgs 196/2003, its representative in Italy is with
registered offices at Via Ruini, 12—Montevarchi (Arezzo), Italy. You understand that the Data may be transferred to the Company or any of its Subsidiaries or Affiliates, or to any third parties assisting in the implementation, administration
and management of the Plan, including any transfer required to a broker or other third party with whom shares acquired pursuant to the vesting of the Restricted Stock Units or cash from the sale of such shares may be deposited. Furthermore, the
recipients that may receive, possess, use, retain and transfer such Data for the above mentioned purposes may be located in Italy or elsewhere, including outside of the European Union and that the recipients’ country (e.g., the United States)
may have different data privacy laws and protections than your country. The processing activity, including the transfer of your personal data abroad, outside of the European Union, as herein specified and pursuant to applicable laws and regulations,
does not require your consent thereto as the processing is necessary for the performance of contractual obligations related to the implementation, administration and management of the Plan. You understand that Data processing relating to the
purposes above specified shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Data are collected and with confidentiality and
security provisions as set forth by applicable laws and regulations, with specific reference to D.lgs. 196/2003. 
 You understand that Data
will be held only as long as is required by law or as necessary to implement, administer and manage your participation in the Plan. You understand that pursuant to art. 7 of D.Igs 196/2003, you have the right, including but not limited to, access,
delete, update, request the rectification of your Data and cease, for legitimate reasons, the Data processing. Furthermore, you are aware that your Data will not be used for direct marketing purposes. In addition, the Data provided can be reviewed
and questions or complaints can be addressed by contacting a local representative available at the following address 

  
 12 

 Plan Document Acknowledgment. In accepting the Restricted Stock Units, you acknowledge that you have
received a copy of the Plan and the Award Agreement and have reviewed the Plan and the Agreement, including this Appendix, in their entirety and fully understand and accept all provisions of the Plan and the Award Agreement, including this Appendix.
You further acknowledge that you have read and specifically and expressly approve the following paragraphs of the Agreement: Termination of Employment, Tax Withholding, Governing Law and Venue and Imposition of Other Requirements. 

Notifications 
 Exchange Control Information.
You are required to report in your annual tax return: (a) any transfers of cash or shares to or from Italy exceeding €10,000 or the equivalent amount in U.S. dollars; and (b) any foreign investments (including shares acquired
under the Plan and/or cash proceeds from the sale of shares). You exempt from the formalities in (a) if the investments are made through an authorized broker resident in Italy, as the broker will comply with the reporting obligation on your
behalf. 
 KUWAIT 
 There are no
country specific provisions. 
 PHILIPPINES 

Terms and Conditions 
 Settlement of Restricted
Stock Units and Sale of Shares. Due to local regulatory requirements, your Award will be settled in cash, not shares, equal to the Fair Market Value of shares on the Vesting Date(s). 

PORTUGAL 
 Notifications

 Exchange Control Information. If you receive shares upon vesting, the acquisition of the shares should be reported to the Banco de Portugal
for statistical purposes. If the shares are deposited with a commercial bank or financial intermediary in Portugal, such bank or financial intermediary should submit the report on your behalf. If the shares are not deposited with a commercial bank
or financial intermediary in Portugal, you are responsible for submitting the report to the Banco de Portugal. 
 SINGAPORE

 Notifications 
 Securities Law
Information. The Awards are being granted in reliance on section 273(1)(f) of the Securities and Futures Act (Cap. 289) (“SFA”) pursuant to which it is exempt from the prospectus and registration requirements under the SFA. 

Director Notification Obligation. If you are a director, associate director or shadow director of the Company’s Singapore Subsidiary or Affiliate,
you are subject to certain notification requirements under the Singapore Companies Act. Among these requirements is an obligation to notify the Company’s Singapore Subsidiary or Affiliate in writing when you receive an interest in the Company
or any parent, Subsidiary or Affiliate (e.g., Awards or shares). In addition, you must notify the Company’s Singapore Subsidiary or Affiliate when you sell shares or shares of any parent, Subsidiary or Affiliate (including when you sell shares
issued upon vesting and settlement of the Award). These notifications must be made within two days of acquiring or disposing of any interest in the Company or any parent, Subsidiary or Affiliate. In addition, a notification of your interests in the
Company or any parent, Subsidiary or Affiliate must be made within two days of becoming a director. 

  
 13 

 Exit Tax. You will be taxed on a “deemed exercise basis” if you cease employment with your
current employer (i.e., Company’s Singapore affiliate) and (i) you are neither a Singapore citizen nor Singapore permanent resident, or (ii) you are a Singapore permanent resident leaving Singapore permanently. Where the
“deemed exercise rule” applies, you will be deemed to have derived a gain (the “deemed gain”) with regard to any of your Awards that are outstanding and not vested as of the date you cease employment (to the extent such rights
are not forfeited upon employment cessation). The deemed gain is equal to the market price of the Company’s shares of Common Stock on the later of one month before the date you cease employment and the date of grant of the Awards. If your
Awards later vest and the actual open market price of the shares on the date of vesting is lower than the deemed gain, you may apply to the Inland Revenue Authority of Singapore (the “IRAS”) for a refund of the difference within four years
from the year of assessment following the year in which the “deemed exercise rule” is applied in accordance with its requirements. 

THAILAND 
 Notifications

 Exchange Control Information. When you sell shares issued at vesting, you must repatriate all cash proceeds to Thailand and then convert
such proceeds to Thai Baht or deposit them in a foreign currency bank account in Thailand within 360 days of repatriation. If the repatriated amount is US$20,000 or more, you are required to report the inward remittance to the Bank of Thailand on a
foreign exchange transaction form. 
 TURKEY 

Settlement of Restricted Stock Units and Sale of Shares. Due to local regulatory requirements, your Award will be settled in cash, not shares,
equal to the Fair Market Value of shares on the Vesting Date(s). 
 UNITED KINGDOM 

Terms and Conditions 
 Tax and National
Insurance Contributions Acknowledgment. The following provisions supplement Section 10 of the Agreement: 
 You agree that if you do not pay or
your employer (the “Employer”) or the Company does not withhold from you the full amount of Tax-Related Items that you owe due to the vesting of the Award, or the release or assignment of your Award
for consideration, or the receipt of any other benefit in connection with the Award (the “Taxable Event”) within 90 days after the end of the UK tax year following the Taxable Event, or such other period specified in Section 222(1)(c)
of the U.K. Income Tax (Earnings and Pensions) Act 2003, then the amount that should have been withheld shall constitute a loan owed by you to the Employer, effective 90 days after the end of the UK tax year following the Taxable Event. You agree
that the loan will bear interest at the HMRC’s official rate and will be immediately due and repayable by you, and the Company and/or the Employer may recover it at any time thereafter by withholding the funds from salary, bonus or any other
funds due to you by the Employer, by withholding in shares issued upon vesting and settlement of the Awards or from the cash proceeds from the sale of shares or by demanding cash or a cheque from you. You also authorize the Company to delay the
issuance of any shares to you unless and until the loan is repaid in full. 
 Notwithstanding the foregoing, if you are an officer or executive director (as
within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the terms of the immediately foregoing provision will not apply. In the event that you are an officer or executive director and Tax-Related Items are not collected from or paid by you within 90 days of the end of the UK tax year following the Taxable Event, the amount of any uncollected Tax-Related
Items may constitute a benefit to you on which additional income tax and national insurance contributions may be payable. You acknowledge that the Company or the Employer may recover any such additional income tax and national insurance
contributions at any time thereafter by any of the means authorized in the Agreement. 

  
 14 

 VIETNAM 

Terms and Conditions 
 Settlement of Restricted
Stock Units and Sale of Shares. Due to local regulatory requirements, your Award will be settled in cash, not shares, equal to the Fair Market Value of shares on the Vesting Date(s). Notwithstanding the foregoing provision, the Company
may, in its discretion, allow non Vietnamese nationals to receive shares at vesting provided the shares and the proceeds from the sale of shares are not brought into Vietnam. 

Exchange Control Consent. All cash proceeds received at settlement of the Award must be immediately repatriated to Vietnam. Such repatriation of
proceeds may need to be effectuated through a special exchange control account established by the Company, its parent, Subsidiary or Affiliate. By accepting the Award, you consent and agree that the cash proceeds may be transferred to such special
account prior to being delivered to you. 

  
 15

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