Document:

Distribution Agreement

 Exhibit 10.1 
  
 (Portions of this agreement have been omitted and marked confidential [*****] and filed separately with the

 Securities Exchange Commission) 
  
 Distribution Agreement 
  
 THIS DISTRIBUTION AGREEMENT (hereinafter this “Agreement”) is made and entered into this 25th day of February, 2004 (the
“Effective Date”), by and between HT Prostate Therapy Management Company, LLC, a Delaware Limited Liability Company (“HT Prostate”), and EDAP TMS S.A., a French société anonyme (“Parent
Corporation”), EDAP S.A., a French société anonyme (“HIFU Subsidiary”) and Technomed Medical Systems S.A., a French société anonyme (“Manufacturing Subsidiary” and, collectively
with Parent Corporation and HIFU Subsidiary, “EDAP”). 
  
 WHEREAS, HT Prostate is a wholly owned subsidiary of HealthTronics Surgical Services, Inc., a Georgia corporation (“HealthTronics”). HealthTronics and HT Prostate have expertise in gaining United States Food and Drug
Administration (“FDA”) approval for the marketing of medical devices in the United States. HT Prostate and HealthTronics also have expertise in the United States of America (the “Territory”) in distributing, and
providing services for, such medical devices; 
  
 WHEREAS, EDAP
desires to utilize the services of HT Prostate and HealthTronics to obtain FDA approval to market a medical device that utilizes High Intensity Focused Ultrasound (“HIFU”) to provide minimally invasive treatment of prostate cancer
(such medical device, the “Ablatherm”); and 
  
 WHEREAS, EDAP recognizes the substantial cost and time involved in obtaining FDA approval and therefore desires to grant HT Prostate in accordance with the terms set forth in the Transaction Documents (as defined below) (i) the exclusive
distribution rights to market the Ablatherm in the Territory and (ii) a warrant to purchase 1,000,000 ordinary shares of the Parent Corporation. 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, HT Prostate and EDAP, intending to be legally bound, agree as follows: 
  

	1.	Definitions and Interpretations 

  

	1.1.	Defined Terms. Unless the context shall otherwise require, terms used and not defined herein shall have the following meanings: 

  
 “Ablapak” has the meaning assigned to such term in Section
3.1. 
  
 “Ablatherm” has the meaning assigned to
such term in the recitals. 
  
 “Ablatherm Related
Devices” has the meaning assigned to such term in Section 4.1. 
  
 “Ablatherm Related Marks” has the meaning assigned to such term in Section 8.1. 
  
 “Agreement” has the meaning assigned to such term in the preamble. 
  
 “Approved Limited Use” has the meaning assigned to such term in Section 5.1(c). 
  
 “Base Year Price List” has the meaning assigned to such term
in Section 6.1(c). 
  
 “Board of Directors
Resolution” has the meaning assigned to such term in Section 12.1(a). 

 “Confidential Information” has the meaning assigned to such term in Section 11.

  
 “Disclosing Party” has the meaning assigned
to such term in Section 11. 
  
 “EDAP” has the
meaning assigned to such term in the preamble. 
  
 “EDAP
Indemnified Parties” has the meaning assigned to such term in Section 10.2. 
  
 “EDAP IP” has the meaning assigned to such term in Section 8.3. 
  
 “EDAP Party” has the meaning assigned to such term in Section 2.1. 
  
 “Effective Date” has the meaning assigned to such term in the preamble. 
  
 “Escrow Agent” means Euro Emetteurs Finance S.A 

 
 “Escrow Agreement” means that certain Contrat de
Service de Titres et de Sequestre, set forth as Exhibit D by and between Parent Corporation, HT Prostate and the Escrow Agent. 
  
 “Exclusive Distribution Rights” has the meaning assigned to such term in Section 4.1. 
  
 “FDA” has the meaning assigned to such term in the recitals.

  
 “First Renewal Term” has the meaning assigned
to such term in Section 9.1. 
  
 “HealthTronics”
has the meaning assigned to such term in the recitals. 
  
 “HIFU” has the meaning assigned to such term in the recitals. 
  
 “HIFU Subsidiary” has the meaning assigned to such term in the preamble. 
  
 “HT Prostate” has the meaning assigned to such term in the preamble. 
  
 “HT Prostate Corporate Headquarters” has the meaning assigned to such term in Section 6.1(a). 

 
 “HT Prostate Indemnified Parties” has the meaning
assigned to such term in Section 10.1. 
  
 “Initial
Term” has the meaning assigned to such term in Section 9.1. 
  
 “INSERM” has the meaning assigned to such term in Section 5. 
  
 “Losses” means any and all liabilities, obligations, duties, demands, claims, actions, causes of action, assessments, losses, costs, damages, deficiencies, fines or expenses, including, interest,
penalties, reasonable attorneys’ fees and all amounts paid in investigation, defense or settlement of any of the foregoing. 
  
 “Manufacturing IP” has the meaning assigned to such term in Section 5. 
  
 “Manufacturing Subsidiary” has the meaning assigned to such term in the preamble. 
  
 “New Treatment” has the meaning assigned to such term in
Section 4.1(a). 
  
 “Parent Corporation” has the
meaning assigned to such term in the preamble. 
  
 “PMA” has the meaning assigned to such term in Section 3.1. 
  

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 “Products” has the meaning assigned to such term in Section 3.1. 
  
 “Product Liability Claim” has the meaning assigned to such
term in Section 10.3. 
  
 “Receiving Party” has
the meaning assigned to such term in Section 11. 
  
 “Rules” has the meaning assigned to such term in Section 13.11(b). 
  
 “Sample Devices” has the meaning assigned to such term in Section 3.3. 
  
 “Specifications” has the meaning assigned to such term in Section 6.3. 
  
 “Subsequent Renewal Term” has the meaning assigned to such term in Section 9.1. 
  
 “Trainers” has the meaning assigned to such term in Section
3.5. 
  
 “Training Program” has the meaning
assigned to such term in Section 6.3. 
  
 “Transaction
Documents” means this Agreement and the Escrow Agreement. 
  
 “Territory” has the meaning assigned to such term in the recitals. 
  
 “Warrant Exercise Milestone” has the meaning assigned to such term in Section 12.1(b). 
  
 “Warrants” has the meaning assigned to such term in Section 12.1(a). 
  

	1.2.	Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth therein); (b) any reference herein
to any person or entity shall be construed to include such person’s or entity’s successors and permitted assigns; and (c) the words “herein”, “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision of this Agreement and all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections, Exhibits and Schedules of this
Agreement. 

  

	2.	Representations and Warranties. 

  

	2.1.	Representations and Warranties of EDAP. Parent Corporation, HIFU Subsidiary and Manufacturing Subsidiary (each, an “EDAP Party”) represent to HT
Prostate that, as of the date hereof: 

  
 (a) Each
EDAP Party is a société anonyme duly organized and validly existing under the laws of the Republic of France, with power and authority (corporate and other) to conduct its business, and has been duly qualified as a foreign corporation
for the transaction of business and is in good standing under the laws of each other jurisdiction in which it conducts any business so as to require such qualification, except where the failure to be so qualified would not reasonably be expected to
have, individually or in the aggregate, a material adverse effect on HT Prostate. 
  
 (b) Each EDAP Party has the corporate power and authority to execute and deliver each Transaction Document to which it is a party and to perform its obligations thereunder, and the Transaction Documents to which each
EDAP Party is a party have been duly and validly authorized by such EDAP Party, and have 
  

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 been duly and validly executed and delivered by such EDAP Party and, assuming due authorization,
execution and delivery by the other parties thereto, are valid and binding obligations of such EDAP Party, enforceable against such EDAP Party in accordance with their terms. 
  
 (c) The execution, delivery and performance by each EDAP Party of the Transaction Documents to which it is a party will not
conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any agreement or instrument to which such EDAP Party is a party or by which such EDAP Party or any material portion of its
properties or assets is bound, or result in any violation of any statute or any order, rule or regulation of any governmental authority having jurisdiction over such EDAP Party, except, in each case, as would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on HT Prostate, nor will such action result in any violation of the provisions of the statuts, corporate charter, by-laws or other constituent document of such EDAP Party.

  
 (d) HIFU Subsidiary is the owner of the Ablatherm Related
Marks and all goodwill associated therewith and has the right and ability to grant the trademark license granted in Section 8.1. To the knowledge of HIFU Subsidiary, the use of the Ablatherm Related Marks in accordance with the terms hereof does not
infringe any United States intellectual property rights of any third party. 
  
 (e) Subject, in each case, to the rights and interests held by INSERM, EDAP owns all rights in and to the Products, is the exclusive owner of all intellectual property rights associated with the Products, and has the
right to license the Products to HT Prostate in accordance with the terms of this Agreement. To the knowledge of EDAP, the use of the Products in accordance with the specification for such Products, a copy of which is attached as Schedule B, does
not infringe upon the intellectual property rights of any third party. EDAP is not aware of any invention, device or equipment that is owned, operated or marketed by any third party which infringes upon EDAP’s intellectual property rights in
and to the Products. 
  

	2.2.	Representations and Warranties of HT Prostate. HT Prostate represents to each EDAP Party that, as of the date hereof: 

  
 (a) HT Prostate is a limited liability company duly organized and validly
existing under the laws of the State of Delaware, with power and authority (corporate and other) to conduct its business, and has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of
each other jurisdiction in which it conducts any business so as to require such qualification, except where the failure to be so qualified would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on any
EDAP Party. 
  
 (b) HT Prostate has the corporate power and
authority to execute and deliver each Transaction Document to which it is a party and to perform its obligations thereunder, and the Transaction Documents to which HT Prostate is a party have been duly and validly authorized by HT Prostate, and have
been duly and validly executed and delivered by HT Prostate and, assuming due authorization, execution and delivery by the other parties thereto, are valid and binding obligations of HT Prostate, enforceable against HT Prostate in accordance with
their terms. 
  
 (c) The execution, delivery and performance by
HT Prostate of the Transaction Documents to which it is a party will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any agreement or instrument to which HT Prostate is a
party or by which HT Prostate or any material portion of its properties or assets is bound, or result in any violation of any statute or any order, rule or regulation of any governmental authority having jurisdiction over HT Prostate, except, in
each case, as would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on any EDAP Party, nor will such action result in any violation of the provisions of the corporate charter, by-laws or other
constituent document of HT Prostate. 
  

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	3.	FDA Pre-Market Approval. 

  

	3.1.	(a) HT Prostate hereby agrees to use commercially reasonable efforts to begin enrollment of patients and commence treatment on the initial patient or patients as part of the
human clinical trials necessary to obtain Pre-Market Approval from the FDA (“PMA”) to market the Ablatherm and the single-use consumable used with the Ablatherm in patient treatment (the “Ablapak”, and together with
the Ablatherm, the “Products”) in the Territory as a primary treatment for prostate cancer within one (1) year of the Effective Date of this Agreement. HT Prostate shall use commercially reasonable efforts to complete the necessary
patient enrollment in the requisite clinical trials for the Products not later than eighteen (18) months following its receipt of full approval of the investigational device exemption for the Products from the FDA. HT Prostate shall use its best
efforts to obtain the PMA from the FDA to market the Products in the Territory within five (5) years of the Effective Date of this Agreement. 

  
 (b) On a twice-yearly basis, HT Prostate shall provide EDAP with a written update regarding HT Prostate’s progress in obtaining a PMA for the
Products and, as applicable, any Ablatherm Related Device. Such updates shall include details regarding the clinical trials (including patient enrollment numbers) and all submissions to, and correspondence with, the FDA during such period. In
addition, prior to making any submission to the FDA regarding the Products or any Ablatherm Related Device, HT Prostate shall (i) provide EDAP copies of any such proposed submission materials and (ii) reasonably consider any comments or proposed
changes EDAP may make with respect to such submission materials. 
  

	3.2.	HT Prostate will pay all costs associated with obtaining a PMA for the Products, except as specifically detailed in Sections 3.3, 3.4, 3.5 and 3.6 of this Agreement.

  

	3.3.	EDAP shall provide ***** Ablatherm devices (the “Sample Devices”) to HT Prostate during the clinical trial period prior to submitting the PMA application to
the FDA. Upon submission of the PMA application and continuing until 6 months after approval of the PMA application, HT Prostate will have the option to purchase the Sample Devices at **************** determined as of the date the PMA application is
submitted to the FDA, *****************************************. 

  

	3.4.	During the clinical trials and prior to receipt of PMA for the Products, EDAP shall provide to HT Prostate at no cost, (a) all the Ablapaks required for and used in clinical
trials and (b) the parts required to keep the Sample Devices in proper working order. EDAP’s requirement to provide Ablapaks at no cost to HT Prostate, however, shall not exceed the amount necessary for use in clinical trials on the total
number of patients required to be enrolled in order to obtain PMA for the Products, plus an additional amount for ordinary course spoilage and/or breakage, not to exceed 10 Ablapaks. 

  

	3.5.	EDAP shall provide training at the offices of EDAP to 4 technicians of HT Prostate (or its service affiliate) (the “Trainers”) to enable the Trainers to (a)
maintain and service the Products and any Ablatherm Related Devices and (b) train and authorize other HT Prostate technicians to service the Products and any Ablatherm Related Devices and to provide treatment services with the Products and any
Ablatherm Related Devices, at no charge to HT Prostate until PMA is obtained; provided that HT Prostate shall pay the cost of any honorariums that EDAP is required to pay in connection with such training. Further, HT Prostate shall pay all travel,
accommodation and other reasonable expenses for such Trainers in connection with their training. HT Prostate shall bear all costs associated with the training of all HT Prostate technicians other than the Trainers. No person, other than a Trainer,
may authorize or train any other HT Prostate technician. 

  

	3.6.	For so long as HT Prostate is conducting clinical trials of the Products in accordance with the terms of this Agreement, EDAP shall pay the cost of any honorariums in
connection with not more than three healthcare educational experts’ visits to the United States each year. EDAP’s requirement to pay the cost of any such honorariums, however, shall be limited to those costs associated with visits not
exceeding, in the aggregate, twenty-one (21) days per year. The identity of such visiting experts and the schedule of visits shall be mutually agreed by the parties. HT Prostate will arrange and pay all travel, accommodation and other reasonable
expenses for such experts. 

  

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	3.7.	HT Prostate shall pay all associated costs for testing the Products in Europe if required in connection with obtaining PMA. 

  

	3.8.	(a) HT Prostate shall be the sole and exclusive owner of the PMA for (i) the Products and (ii) any Ablatherm Related Device for which HT Prostate obtains Exclusive
Distribution Rights pursuant to Section 4, upon approval and grant by the FDA. However, should HT Prostate abandon the Ablatherm, begin distributing a competing HIFU technology, or fail to meet its purchase commitments during the Initial Term, as
described in sections 4.2 and 9.1 below, or if this Agreement is otherwise terminated in accordance with Section 9, ownership of the PMA shall transfer to EDAP, and HT Prostate, promptly and at its sole expense, shall execute such deeds,
assignments, endorsements and other instruments and documents and shall take such further actions as shall be necessary to effect such transfer, including providing the FDA notice of such transfer. In the event of such transfer of ownership unless
the transfer occurs because of a material breach by HT Prostate of Section 5 or Section 8 hereof, EDAP shall license such PMA to HT Prostate on a non-exclusive basis to market the Products purchased from EDAP prior to such transfer.

  
 (b) Promptly following any transfer of the PMA
to EDAP as described in paragraph (a) of this Section 3.8, HT Prostate shall provide to EDAP all supportive materials and data substantiating representations made to the FDA or any other U.S. governmental authority in its filings therewith in
relation to the Products and any Ablatherm Related Device, including any and all testing data in the possession, or under the control, of HT Prostate or HealthTronics, whether or not submitted to the FDA or any other U.S. governmental authority.

  

	3.9.	HT Prostate shall deliver to EDAP in electronic format such labeling for the Products and any Ablatherm Related Device for which HT Prostate obtains Exclusive Distribution
Rights in accordance with Section 4 as is required by the FDA, whether upon receipt of PMA or at any time thereafter, including physicians’ manuals, training manuals and maintenance manuals. HT Prostate shall deliver such labeling in a timely
manner in order to allow EDAP to comply with any such FDA requirements in the manufacture, labeling and delivery of the Products and any Ablatherm Related Device for which HT Prostate obtains Exclusive Distribution Rights in accordance with Section
4. 

  

	3.10.	HT Prostate shall comply in all respects with all applicable laws, regulations and orders to which it may be subject that relate to its performance of obligations under this
Agreement including all FDA rules, regulations and procedures. HT Prostate will use its best efforts to maintain in full force and effect all consents, approvals and clearances of any governmental or other regulatory authority that are required to
be obtained by it to perform this Agreement and will use its best efforts to obtain any that may become necessary in the future. 

  

	4.	Exclusive Distributor. 

  

	4.1.	Subject to receipt by HT Prostate of PMA for the Products and pursuant to the terms of this Agreement: 

  

	 	(a)	EDAP hereby appoints HT Prostate, and HT Prostate hereby accepts its appointment, as the exclusive distributor of the Products in the Territory. Such distribution rights (the
“Exclusive Distribution Rights”) shall also include the exclusive distribution rights for any and all devices or processes currently or subsequently manufactured or distributed at any time by EDAP for the treatment of prostate
cancer in each case, that are an improvement, new model or new version of the Ablatherm (such devices, together with their related consumable, if any, “Ablatherm Related Devices”), all pursuant to the terms of this Agreement;
provided, that HT Prostate at its own cost and expense obtains the necessary FDA approvals for distribution of such devices in the Territory; provided, further that in the event HT Prostate does not desire Exclusive Distribution
Rights with respect to any Ablatherm Related Device, it shall nonetheless use its best efforts to obtain the necessary FDA approvals for such device so long as EDAP reimburses HT Prostate for any reasonable costs so incurred. In the event EDAP
wishes to obtain a PMA for, and distribute (or have distributed) in the Territory any device or process manufactured or distributed by EDAP for the treatment of prostate cancer other than the Products or any Ablatherm Related Device (a “New

  

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 Treatment”) then EDAP shall offer HT Prostate the right to obtain the PMA and to act as the
exclusive distributor for such New Treatment on terms (including timing, price and quantity) reasonably negotiated by EDAP and HT Prostate. If EDAP and HT Prostate fail to negotiate the terms of such agreement within 90 days, EDAP shall be free to
itself, or through any third party of its choosing, obtain a PMA for, and distribute such New Treatment in the Territory; provided that EDAP shall not permit a third party to obtain such PMA or distribute such New Treatment in the Territory
except on terms substantially equivalent to the terms initially offered to HT Prostate. 
  
 (b) EDAP agrees that it will not, directly or indirectly, sell, distribute, or offer treatment with, the Ablatherm or any Ablatherm Related Device, in the Territory, other than pursuant to this Agreement. EDAP shall
include in its contracts for sale of the Ablatherm or any Ablatherm Related Device for which HT Prostate has Exclusive Distribution Rights in accordance with this Section 4 outside the Territory limitations prohibiting resale or shipment by the
purchaser of such Ablatherms or such Ablatherm Related Devices into the Territory (and requiring any such subsequent purchaser to include such contractual limitations upon its resale or shipment of the Ablatherm or other such devices);
provided, that such provisions are legally enforceable in the relevant jurisdictions in the reasonable judgment of EDAP. EDAP will use commercially reasonable efforts to monitor and enforce such contractual restrictions for sales outside the
Territory. 
  
 (c) HT Prostate agrees that it will not, directly
or indirectly, sell, distribute, or offer treatment with, the Ablatherm or any Ablatherm Related Device, outside the Territory. HT Prostate shall include in its contracts for sale of the Ablatherm or any Ablatherm Related Devices in the Territory
limitations prohibiting resale or shipment by the purchaser of such Ablatherms or Ablatherm Related Devices outside the Territory (and requiring any such subsequent purchaser to include such contractual limitations upon its resale or shipment of the
Ablatherm or other such devices); provided, that such provisions are legally enforceable in the relevant jurisdictions in the reasonable judgment of HT Prostate. HT Prostate will use commercially reasonable efforts to monitor and enforce such
contractual restrictions for sales in the Territory. 
  
 (d) EDAP
will refer all inquiries for purchase or use of the Products or Ablatherm Related Devices in the Territory to HT Prostate. HT Prostate will refer all inquiries for purchase or use of the Products or Ablatherm Related Devices outside the Territory to
EDAP. 
  

	4.2.	In order to retain the Exclusive Distribution Rights, following receipt of PMA for the Products, HT Prostate must purchase Products, Ablatherm Related Devices, or repair
parts or services for the Products or the Ablatherm Related Devices from EDAP worth at least one million dollars (U.S.$1,000,000) per year and an average of two million dollars (U.S.$2,000,000) per year, such average to be calculated at the end of
each ten (10) year term in accordance with Section 9.1; provided, however, that HT Prostate shall have no further purchase requirement in the event it receives manufacturing rights for all Products and Ablatherm Related Devices for
which HT Prostate obtains Exclusive Distribution Rights under Section 5. 

  

	4.3.	EDAP shall deliver those Products and Ablatherm Related Devices ordered by HT Prostate in a manner ready for distribution by HT Prostrate in the Territory. HT Prostate shall
not relabel, repackage or otherwise modify any such Product or device and shall distribute any such Product or device as the same was received by HT Prostate from EDAP, unless as otherwise negotiated pursuant to Section 4.4 below.

  

	4.4.	Upon request of either party and as permitted by applicable law, the parties shall negotiate in good faith the terms of a co-branding arrangement for the Products and any
Ablatherm Related Devices in the Territory. 

  

	5.	Manufacturing Rights.  

  

	5.1.	(a) In the event EDAP is unable and unwilling to manufacture and deliver any medical device for which HT Prostate has Exclusive Distribution Rights (or any consumable of such
device) and for which HT Prostate has received the necessary FDA approvals, HT Prostate may request manufacturing rights for such device (or the related consumable). 

  

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 (b) Following delivery of any such manufacturing rights request, if EDAP: 
  
 (i) consents to such request; or 
  
 (ii) otherwise remains unable or unwilling to manufacture and deliver any
such device (or related consumable), as evidenced by EDAP’s failure to make available for delivery to HT Prostate any such device or consumable (other than any such failure caused by any of the factors described in Section 13.1) for a period
exceeding (A) 180 days following such request if EDAP is unable to manufacture and deliver any such device or consumable due to regulatory or legal constraints or (B) 90 days following such manufacturing rights request in other circumstances,

  
 then EDAP shall comply with such manufacturing rights request
as set forth in paragraph (c) of this Section 5. 
  
 (c) EDAP
shall grant to HT Prostate an exclusive, royalty-free, non-transferable, non-sublicensable, non-assignable license to EDAP’s patents and know-how (including technical drawings), in each case, that directly relate to the manufacture of such
device or consumable solely as and to the extent necessary to enable HT Prostate to manufacture and distribute such device or consumable in the Territory (the “Approved Limited Use”) for a period of ten (10) years from the date
granted (such patents and know-how, the “Manufacturing IP”); provided, that in the case of any such patents which EDAP jointly owns with the Institut National de la Santé et de Recherche Médicale
(“INSERM”), EDAP shall use commercially reasonable efforts to itself license or to cause INSERM to license such patents to HT Prostate. From and after the date HT Prostate is granted any such license, HT Prostate shall be liable for
any royalty or other amounts owing to INSERM (including amounts owed by EDAP as a result of the grant of such license to HT Prostate), if any, in connection with the use of any such patent by HT Prostate. EDAP shall use commercially reasonable
efforts to provide HT Prostate access to such accessories, disposables or service parts necessary in order to maintain or use any such devices which EDAP is no longer willing to manufacture or is unable to manufacture on the terms provided herein at
such cost as is mutually agreeable to the parties at such time. Upon such grant, EDAP, with the cooperation and assistance of HT Prostate and at HT Prostate’s sole expense, shall use commercially reasonable efforts to prepare and record the
license as it pertains to patents before the National Patent Registry in France and before the European Patent Office. 
  

	6.	Device Sales. 

  

	6.1.	(a) EDAP shall supply the Ablatherm or any Ablatherm Related Device as distributed pursuant to the terms of this Agreement to HT Prostate at a price of ******** per device
due 30 days after receipt of such device by HT Prostate in the Territory at its offices, at the address set forth on the signature page below or at any other address HT Prostate designates by notice to EDAP (such address, the “HT Prostate
Corporate Headquarters”). In the event that HT Prostate obtains Exclusive Distribution Rights with respect to any Ablatherm Related Device, the parties shall negotiate in good faith the applicable price for such device. However, EDAP agrees
to renegotiate the price of the Ablatherm or any Ablatherm Related Device if HT Prostate is not able, after diligent efforts, to secure at least a ************ margin on the resale of such Ablatherm or Ablatherm Related Device in the Territory.

  
  
 (b) EDAP shall supply Ablapaks used by the Ablatherm or any consumable required for use with any Ablatherm Related Device as distributed pursuant to the terms of this Agreement to HT Prostate at a price of **********
per unit due 30 days after receipt of such consumable by HT Prostate at the HT Prostate Corporate Headquarters. However, EDAP agrees to renegotiate the price of the Ablapak if HT Prostate is not able, after diligent efforts, to secure at least a
*********** margin on the resale or use of the Ablapak. 
  
  
 (c) EDAP shall supply to HT Prostate all repair parts and supplies for the Ablatherm or any Ablatherm Related Device at the US dollar equivalent price of
the prices listed in EDAP’s 2004 Ablatherm Distributors Price List (“Base Year Price List”), a copy of which is attached as Schedule C. EDAP agrees that the prices listed in the Base Year Price List shall not increase until one year
following receipt of PMA for the Products. Thereafter, EDAP further agrees that the prices in the Base Year Price List shall not increase by more than ****** for a period of 10 years; provided, that EDAP shall use reasonable efforts to pass
along any cost savings it realizes on such parts and supplies to HT Prostate. 
  

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 (d) EDAP will deliver ordered Products “Ex-Works,” as defined in Incoterms 2000 (published by
the International Chamber of Commerce) by placing the Products at the disposal of HT Prostate at EDAP’s manufacturing facility in Lyon, France on the specified delivery date. 
  

	6.2.	The prices quoted in Section 6.1(a) and Section 6.1(b) shall not increase during the first ****** following receipt of PMA for the Products. Thereafter, the parties shall
negotiate prices but in no event will any price quoted herein increase by more than *******. 

  

	6.3.	EDAP warrants that, for a period of ****** months, each Product and Ablatherm Related Device shall be free of defects and shall perform substantially in accordance with the
specifications for such Product or device (the “Specifications”), as such Specifications may be amended from time to time by notice to HT Prostate. (A copy of the Product Specifications as of the date hereof is attached as Schedule
B.) The ******-month period will begin upon HT Prostate’s placement of such Product or Ablatherm Related Device in service, however the warranty period shall not extend beyond ******* months after shipment to HT Prostate in accordance with
Section 6.1(d). During the warranty period, HT Prostrate’s sole remedy for breach of the warranty shall be that EDAP will repair or replace all Products or Ablatherm Related Devices that are defective; provided, that EDAP shall not be
obligated to repair or replace any Product or Ablatherm Related Device not functioning as a result of damage caused or misuse by HT Prostate, any sub-distributor or the end user and provided, further, that any warranty provided by EDAP
shall be void if the applicable Product or Ablatherm Related Device is repaired or serviced by any person not trained or authorized by EDAP to make such repair or provide such service or if it is repaired using parts not provided by EDAP. Any person
trained by a Trainer to make such repair or provide such service in accordance with the training materials and other certification guidelines provided by EDAP (as such materials may be updated from time to time, the “Training
Program”) shall be deemed to be authorized by EDAP upon its receipt of written confirmation from HT Prostate that such person has been trained in accordance with the Training Program. EDAP will supply to HT Prostate at no charge a basic
stock of spare parts that will include at least one of each component used in the Ablatherm and any Ablatherm Related Device. 

  

	6.4.	Following receipt of PMA for the Products, HT Prostate shall provide EDAP with a six (6) month rolling forecast of HT Prostate’s anticipated product needs during the
term of this Agreement. The forecast will contain two levels of order commitment. The first ninety (90) days will be a firm order and will be fixed with respect to both quantity and delivery date, as mutually agreed upon by EDAP and HT Prostate. The
second ninety (90) days will be a forecast and will contain HT Prostate’s current estimate of demand for the Products and Ablatherm Related Devices and will be provided only for EDAP’s planning purposes. 

  

	7.	Training. EDAP agrees to provide, at no charge to HT Prostate, a mutually agreed upon reasonable amount of training and education at the offices of the Parent Corporation to
5 designated employees of HT Prostate with respect to the sales, marketing and use of the Products described in this Agreement; provided, that HT Prostate shall pay the cost of any honorariums that EDAP is required to pay in connection with
such training. HT Prostate shall pay all travel, accommodation and other reasonable expenses for the trainees identified by HT Prostate. 

  

	8.	Intellectual Property.  

  

	8.1.	License. HIFU Subsidiary hereby grants HT Prostate, and HT Prostate hereby accepts, an exclusive, royalty-bearing, non-assignable, non-transferable,
non-sublicensable license to use the trademarks, proprietary names and other marks set forth in Schedule A (the “Ablatherm Related Marks”) in the Territory during the term of this Agreement solely for the purpose of marketing,
distributing and providing services for the Products and Ablatherm Related Devices as permitted herein. In consideration for this exclusive license, HT Prostate agrees to pay EDAP an amount equal to 10% of the sales price of the Products sold to HT
Prostate by EDAP. Both EDAP and HT Prostate agree that this royalty is included in the sales prices referenced in, or determined pursuant to, Section 6 of this Agreement. In marketing and distributing the Products and Ablatherm Related Devices, HT
Prostate shall use the Ablatherm Related 

  

 9 

 Marks only and shall not use any other trademark, proprietary name or other mark on any Product or
Ablatherm Related Device except as may be provided pursuant to Section 4.4. HT Prostate shall use the Ablatherm Related Marks in the same style, typeface and graphic appearance as specified by HIFU Subsidiary, unless otherwise approved in writing by
HIFU Subsidiary. HT Prostate shall not use the Ablatherm Related Marks in any other manner, either alone or in combination with any other word, mark, logo or symbol, except with the prior written consent of HIFU Subsidiary. The exercise of HT
Prostate’s rights to manufacture the Products under Section 5 and the subsequent removal of purchase requirements or royalty fees shall not terminate or affect the license provided herein. At HT Prostate’s expense, EDAP shall record the
trademark license granted herein with the National Trademark Registry. Following termination of this Agreement (other than a termination for material breach by HT Prostate of Section 5 or this Section 8), HT Prostate shall have a limited
non-exclusive, non-assignable, non-transferable, non-sublicensable license to use the Ablatherm Related Marks solely for the purpose of (i) providing services for Products or Ablatherm Related Devices purchased during the term of this Agreement and
(ii) advertising its provision of such services. The limited license shall continue only for so long as HT Prostate continues to provide such services and shall automatically terminate, without the need for any action by any party, thereafter.

  

	8.2.	Quality Control. HT Prostate acknowledges that the Ablatherm Related Marks have established extremely valuable goodwill and reputation, and are well
recognized among EDAP’s customers, and that it is of great importance to HIFU Subsidiary that these high standards and reputation be maintained. Accordingly, in its use of the Ablatherm Related Marks, HT Prostate shall at all times maintain the
high quality control standards for products and services relating to the use of such trademarks that are substantially equivalent to or stricter than the standards used by HT Prostate relating to the use of its trademarks or such other standards as
may be provided by written notice by HIFU Subsidiary to HT Prostate. HIFU Subsidiary shall have the right to exercise quality control over the use by HT Prostate of the Ablatherm Related Marks to the degree necessary, in its reasonable opinion, to
maintain the validity and enforceability of the Ablatherm Related Marks and to protect the goodwill associated therewith. In furtherance of the foregoing, upon the reasonable request of HIFU Subsidiary, HT Prostate shall supply HIFU Subsidiary with
samples of any marketing or promotional materials used by HT Prostrate in connection with the Products or any other Ablatherm Related Device. 

  

	8.3.	Ownership. HT Prostate acknowledges that, as between the parties: (a) one of the EDAP Parties is the owner of all right, title and interest in and to (i) the Ablatherm
Related Marks (including all goodwill associated therewith) and (ii) all of the Manufacturing IP, (together with the Ablatherm Related Marks, the “EDAP IP”), and all legal protections with respect to the EDAP IP remain exclusively
with the EDAP Party that is the owner thereof; and (b) except as expressly provided herein, it receives no proprietary rights whatsoever in or to the EDAP IP; (c) all goodwill and improved reputation generated by its use of any Ablatherm Related
Marks shall inure solely to the benefit of HIFU Subsidiary; and (d) upon the termination of (i) this Agreement and (ii) the trademark licenses granted herein for any reason, all goodwill in the Ablatherm Related Marks that may be held by HT Prostate
notwithstanding the foregoing shall be and hereby is assigned to HIFU Subsidiary, without the need for any further action by an person or entity, and, in any event, HT Prostate shall cooperate with EDAP to take any action reasonably necessary to
effect such assignment, which cooperation shall be provided without any additional consideration. For the avoidance of doubt, nothing herein is intended to give any EDAP Party any rights in any trademark of HT Prostate. 

  

	8.4.	Notification. During the term of this Agreement and for any period thereafter during which HT Prostate is using any EDAP IP pursuant to a license from EDAP, HT
Prostate shall notify EDAP immediately of any threat, warning or notice of any claim or action adverse to any EDAP Party’s rights in the EDAP IP of which HT Prostate may become aware from time to time. 

  

	8.5.	No Inconsistent Action. HT Prostate shall not take any action inconsistent with the acknowledgments or agreements set forth in this Section 8, or inconsistent with any
EDAP Party’s rights in the EDAP IP. Without limiting the foregoing, HT Prostate shall not during the term of this Agreement and for any period thereafter during which HT Prostate is using any EDAP IP pursuant to a license from EDAP undertake to
apply for intellectual property protection for the EDAP IP or any portion thereof. HT Prostate shall not: (a) use the EDAP IP in any way that may tend to impair the validity of any EDAP Party’s rights therein; or 

  

 10 

 (b) take any other action that in any EDAP Party’s reasonable opinion would jeopardize or impair
such EDAP Party’s rights in the EDAP IP or its validity or enforceability. 
  

	8.6.	Valuable Property. HT Prostate acknowledges and agrees that since the EDAP IP incorporates valuable trade secrets, any material violation by it of its
obligations with respect to the EDAP IP hereunder may cause the EDAP Parties irreparable injury not compensable by money damages and for which the EDAP Parties may have no adequate remedy at law. 

  

	8.7.	Enforcement and Protection of Intellectual Property Rights; Cooperation of HT Prostate. The enforcement and protection, including the decision of whether or not
to prosecute infringements or maintain registrations of the EDAP Parties’ rights in any EDAP IP will be in the sole discretion and control of the applicable EDAP Party and any and all recoveries resulting from such actions will be retained by
such EDAP Party. HT Prostate agrees that it shall execute such documents and provide such additional cooperation to the applicable EDAP Party, at such EDAP Party’s expense, as such EDAP Party reasonably may request in order to perfect,
evidence, protect or secure the EDAP IP and to conduct such prosecution, registration or defense. 

  

	8.8.	Modifications. To the extent any EDAP Party improves or modifies any Product or any Ablatherm Related Device in response to information supplied to any EDAP
Party by HT Prostate, HT Prostate acknowledges and agrees that any such improvement or modification and all intellectual property rights therein are the sole and exclusive property of the EDAP Party making such modification or improvement.

  

	8.9.	Abandonment. All limitations on HT Prostate provided in this Section 8 in regards to EDAP IP shall terminate with respect to any EDAP IP abandoned by EDAP.

  

	9.	Term and Termination. 

  

	9.1.	Term. The term of this Agreement will commence on the date first written above and, unless earlier terminated as set forth below, continue
for a period of ten (10) years from the date HT Prostate receives PMA for the Products (the “Initial Term”). This Agreement will renew automatically for an additional successive ten (10) year term (the “First Renewal
Term”) upon the termination of the Initial Term; provided, that (a) HT Prostate has met its commitment to purchase at least one million dollars (U.S. $1,000,000) per year during the Initial Term and an average of two million dollars
(U.S.$2,000,000) per year during the Initial Term, such average to be calculated at the end of the Initial Term, in each case worth of Products, Ablatherm Related Devices, or repair parts or services for the Products or Ablatherm Related Devices or
(b) any failure to meet such purchase commitment is waived by EDAP, in its sole discretion. Following the completion of the First Renewal Term, this Agreement will renew for additional successive ten (10) year terms (individually,
“Subsequent Renewal Term”) unless either party gives the other party written notice of termination at least thirty (30) days prior to the end of the then-current term. 

  

	9.2.	Default. The foregoing notwithstanding, a party by written notice of default to the other party, may terminate this Agreement (a) if the
other party breaches a material provision of this Agreement and the breach is incurable or the breaching party does not cure such material breach within forty-five (45) calendar days after receipt of written notice of the material breach; or (b)
immediately upon the other party’s insolvency, institution of bankruptcy, commencement of liquidation proceedings or the appointment of a trustee or receiver of the other party’s property or business. For avoidance of doubt, the following
shall be considered material breaches, subject to the cure period set forth in subsection 9.2(a) above: any failure by any party to pay an amount when due and payable under the Agreement and any failure by HT Prostate to comply with its obligations
pursuant to Sections 3.1(a), 3.2, 3.7, 3.8, 3.9, 3.10, 4.1, 4.2 or 8. A breach of Section 3.1(b) or 6.4 shall not constitute a material breach for purposes of this Section 9.2. 

  

	9.3.	Termination. Upon termination of this Agreement for any reason except for a material breach by EDAP or is EDAP meets any requirement of Section 9.2(b), HT
Prostate’s Exclusive Distribution Rights and, except as otherwise expressly provided herein, all licenses to use any EDAP IP shall terminate and EDAP shall have the right to distribute the Products and any Ablatherm Related Device for which HT
Prostate had obtained Exclusive Distribution Rights pursuant to Section 6 described herein directly or through another 

  

 11 

 distributor in the Territory. Notwithstanding the foregoing, following any such termination (other than a
termination as a result of a breach by HT Prostate of Section 8) HT Prostate shall retain the right to market and utilize any Products and Ablatherm Related Devices purchased from EDAP during the term of this Agreement and any Products or Ablatherm
Related Devices manufactured by HT Prostate pursuant to, and in accordance with the terms of, any manufacturing rights it may receive under Section 5. Each party’s rights and obligations under this Section 9.3 and Sections 3.8, 9.4, 10, 11 and
13 shall survive any termination of this Agreement, as shall any other rights and obligations which the parties herein expressly agree shall survive such termination. 
  

	9.4.	Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN SECTION 2 AND SECTION 6.3 OR EXCEPT AS OTHERWISE STATED HEREIN, NO EDAP PARTY, ANY OF THEIR
RESPECTIVE AFFILIATES, THIRD-PARTY VENDORS, CONTRACTORS, OR TECHNOLOGY SUPPLIERS, OR ANY OF THE FOREGOING PERSONS’ RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS MAKES ANY REPRESENTATION OR WARRANTY TO HT PROSTATE OR ANY OTHER PERSON AS TO
THE ABLATHERM, ABLAPAK, OR ANY ABLATHERM RELATED DEVICE OR ANY CONSUMABLE RELATED THERETO (INCLUDING, IN EACH CASE, ANY SOFTWARE THEREIN OR USED IN CONNECTION THEREWITH), WHETHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, ANY WARRANTY OF NON-INFRINGEMENT, OR ANY WARRANTY REGARDING THE USE OF OR INABILITY TO USE, OR THE RESULTS OF, THE ABLATHERM, ABLAPAK, ANY ABLATHERM RELATED DEVICE AND ANY CONSUMABLE RELATED THERETO (INCLUDING,
IN EACH CASE, ANY SOFTWARE THEREIN OR USED IN CONNECTION THEREWITH) OR ANY WARRANTY THAT THEY WILL CONFORM TO ANY DESCRIPTION THEREOF, BE FREE OF ERRORS OR DEFECTS OR PERFORM ANY DESIRED OPERATIONS OR FUNCTIONS. HT PROSTATE AGREES THAT, EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN OR AS EXPRESSLY SET FORTH IN SECTION 2 AND SECTION 6.3, THE ABLATHERM, ABLAPAK, OR ANY ABLATHERM RELATED DEVICE OR ANY CONSUMABLE RELATED THERETO (INCLUDING, IN EACH CASE, ANY SOFDTWARE THEREIN OR USED IN
CONNECTION THEREWITH) ARE PROVIDED ON AN “AS IS” BASIS AT HT PROSTATE’S SOLE RISK. FURTHER, WITHOUT LIMITING THE WARRANTIES EXPRESSELY STATED HEREIN, EACH EDAP PARTY EXPRESSLY DISCLAIMS, AND HT PROSTATE WAIVES, ANY AND ALL IMPLIED
WARRANTIES, INCLUDING WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

  

	10.	Indemnification. 

  

	10.1.	Indemnification by EDAP. Subject to the terms and conditions of this Section 10, EDAP agrees to indemnify and hold harmless HT Prostate, including any of its
directors, officers, employees or agents (the “HT Prostate Indemnified Parties”) from and against any and all Losses resulting from any third-party claim arising from a breach of any of the representations and warranties or
covenants of any EDAP Party contained in this Agreement. 

  

	10.2.	Indemnification by HT Prostate. Subject to the terms and conditions of this Section 10, HT Prostate agrees to indemnify and hold harmless each EDAP Party,
including any of its directors, officers, employees or agents (the “EDAP Indemnified Parties”) from and against any and all Losses resulting from any third- party claim arising from a breach of any of the representations and
warranties or covenants of HT Prostate contained in this Agreement. 

  

	10.3.	Indemnification for Product Liability Claims. Subject to Section 6.3: 

  
 (a) each of the EDAP Parties will also indemnify and hold harmless the HT Prostate Indemnified Parties, against all Losses
arising from any claims, threatened or actual, for product liability, including product liability claims brought under the Employee Retirement Income Security Act of 1974 (each, a “Product Liability Claim”) in so far as such Losses
result from (i) subject in each case to the exceptions to EDAP’s warranty in Section 6.3, the failure of a Product or Ablatherm Related Device to operate in accordance with the specifications therefor, (ii) a material defect in the design or
manufacture by any EDAP Party of any 
  

 12 

 such Product or device, (iii) the servicing or repair by any EDAP Party, any Trainer or any technician
trained by a Trainer in accordance with the Training Program of the Products or any Ablatherm Related Device relating thereto, (iv) the training by EDAP of the Trainers or (v) actions or omissions directly attributable to any EDAP Party; and

  
 (b) HT Prostate will also indemnify and hold harmless the
EDAP Indemnified Parties, against all Losses arising from any Product Liability Claim in so far as such Losses result from (i) the manufacture or modification by HT Prostate or any of its affiliates of the Products, any Ablatherm Related Device or
repair parts relating thereto, (ii) the servicing or repair by any person or any Product, Ablatherm Related Device or repair parts other than as authorized by EDAP, (iii) the marketing, distribution or installation of any Product or Ablatherm
Related Devices in the Territory, (iv) the training of any technicians, other than the Trainers, for servicing, repair or use of the Products or the Ablatherm Related Devices to the extent such training was not in accordance with the Training
Program, (v) any use by HT Prostate or any of its customers or transferees of any Product or Ablatherm Related Device other than in accordance with the labeling therefore, (vi) failure to properly maintain any such Product or device or to properly
train any user of any such Product or device or (vii) actions or omissions directly attributable to HT Prostate or any of its affiliates, employees or sub-distributors. 
  
 For avoidance of doubt, the parties hereby agree that the indemnification rights and obligations set forth in this Section
10.3 shall be the sole indemnifications rights and obligations of the parties in relation to any Product Liability Claim. 
  

	10.4.	IP Claims. In regards to any third party claim, action or demand relating to use by HT Prostate of the EDAP IP in accordance with the terms hereof in the event
that any such intellectual property in the opinion of EDAP is likely to or does become the subject of a claim, action, suit or other proceeding EDAP shall at its option and expense, procure for HT Prostate the right to continue using such
intellectual property, modify the intellectual property to make it non infringing or substitute intellectual property of similar capability. 

  

	10.5.	Each party’s indemnification obligations under this Section 10 are conditioned on the indemnified party’s giving the indemnifying party (a) prompt written notice of
any claim for which indemnification is sought; (b) complete control of the defense and settlement of such claim if requested by the indemnifying party; and (c) assistance and cooperation in such defense as the indemnifying party may reasonably
request; provided, that reasonable out-of-pocket expenses incurred by the indemnified party in connection with such assistance shall be reimbursed promptly by the indemnifying party. 

  

	10.6.	This indemnity shall survive the termination of this Agreement. 

  

	10.7.	Each of EDAP on the one hand, and HT Prostate on the other, must maintain, at its own cost, product liability insurance from an insurance carrier acceptable to the other with
respect to the Products and Ablatherm Related Devices sold and/or used in the Territory in an amount and form acceptable by the other until such date as HT Prostate notifies EDAP that no Products or Ablatherm Related Devices purchased or
manufactured by HT Prostate pursuant to this Agreement are being used in the Territory and for a 10 year period following such date. Each party shall use commercially reasonable efforts to include the other as an “also insured” party on
such product liability insurance and deliver to the other party a certificate of insurance from its insurance carrier confirming such coverage prior to the shipment of the first Product in accordance with Section 6.1(d) and thereafter within sixty
(60) days of the annual renewal of such policy.. 

  

	10.8.	Notwithstanding any other provision of the Agreement, the foregoing states the entire liability and obligation of each party with respect to claims of infringement of any
intellectual property made by third parties arising under or related to this Agreement. 

  

	10.9.	Limitation of Liability. EXCEPT WITH RESPECT TO CLAIMS UNDER SECTION 10 AND 11 OR CLAIMS RESPECTING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL
ANY PARTY OR ITS AFFILIATES, THIRD PARTY VENDORS, CONTRACTORS OR TECHNOLOGY SUPPLIERS OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, 

  

 13 

 EMPLOYEES, OR AGENTS BE LIABLE FOR ANY SPECIAL, INDIRECT, EXEMPLARY, INCIDENTAL, PUNITIVE OR
CONSEQUENTIAL DAMAGES RELATING IN ANY MANNER TO THIS AGREEMENT OR USE OF OR INABILITY TO USE THE ABLATHERM, ABLAPAK, OR ANY ABLATHERM RELATED DEVICE OR ANY CONSUMABLE RELATED THERETO (INCLUDING, IN EACH CASE, ANY SOFTWARE THEREIN OR USED IN
CONNECTION THEREWITH), REGARDLESS OF THE FORM OF ACTION (INCLUDING NEGLIGENCE AND STRICT LIABILITY), WHETHER OR NOT SUCH PERSONS HAVE BEEN ADVISED OF OR ANTICIPATED THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH DAMAGES COULD HAVE
BEEN FORESEEN. 
  

	11.	Confidentiality. 

  
 (a) Each party acknowledges that it may be given access to confidential information (“Confidential Information”) of the other disclosed
during the term of this Agreement, including ideas, trade secrets, procedures, methods, systems, concepts, technology, program code, source code, user interfaces, displays, file layouts, algorithms, inventions, technical know-how improvements, data,
files, information relating to suppliers and customer identities and lists, records, business and marketing plans, user, training and operational manuals, printed collateral documentation and all similar information and other proprietary property of
the parties, whether disclosed orally or in writing or by any other media. Notwithstanding the foregoing, upon disclosure of a referral customer under the terms of this Agreement, such customer shall no longer be deemed confidential or a trade
secret of the referring party in regards to the party to whom it was disclosed. Each party (the “Receiving Party”) acknowledges that the Confidential Information of the other party (the “Disclosing Party”) contains
valuable trade secrets and other proprietary information of the Disclosing Party and that any such Confidential Information will remain the sole and exclusive property of the Disclosing Party. 
  
 (b) Each party will use the Confidential Information provided hereunder only
for purposes directly related to the purpose for which it was provided and will further restrict disclosure of Confidential Information solely to its officers, employees and consultants with a need to know and who have agreed to be bound by the
terms of this Section 9. Neither party will disclose such Confidential Information to any other parties, and will otherwise protect the Confidential Information with no less restrictive measures than it uses to protect its own Confidential
Information which measures shall in no event be less than reasonably prudent measures. Information will not be deemed “Confidential Information” if such information: (a) was in the public domain at the time it was communicated to the
Receiving Party; (b) becomes generally available to the public other than as result of a disclosure by the Receiving Party; (c) is rightfully communicated to the Receiving Party free of any obligation of confidence subsequent to the time it is
communicated to the Receiving Party pursuant to this Agreement; (d) is independently developed or acquired by the Receiving Party without violation of this Agreement or (e) was in the Receiving Party’s possession free of any obligation of
confidence at the time it was communicated to the Receiving Party pursuant to this Agreement. 
  
 (c) Notwithstanding the above, the Receiving Party shall not be in violation of this Section 11 with regard to a disclosure that was in response to a valid order by a court or other governmental body; provided
that the Receiving Party provides the Disclosing Party with prompt written notice of such required disclosure where reasonably possible in order to permit the Disclosing Party to seek confidential treatment of such Confidential Information; and
provided, further that the disclosure is made only to the extent required by the applicable order. The obligations of confidentiality with respect to a trade secret under applicable law shall continue until such information or data
ceases to be a trade secret under applicable law and with respect to all other Confidential Information continue for the term of this Agreement and ten (10) years thereafter, or such longer period as may be required by applicable United States
federal or state laws. 
  

	12.	Warrants. 

  

	12.1.	Warrants. (a) As additional consideration for the time, expense and effort HT Prostate shall expend in obtaining PMA from the FDA for the Products and any Ablatherm
Related Device and for distribution by HT Prostate of certain lithotripters (as described more fully in a separate agreement between the parties), on 

  

 14 

 January 28, 2005 Parent Corporation shall issue to HT Prostate 1,000,000 warrants (bons de
souscription d’actions) (the “Warrants”), each of which shall entitle the owner thereof to purchase from Parent Corporation one newly-issued ordinary share of the Parent Corporation at a price of U.S. $1.50 per share
subject to the terms and restrictions set forth in the Escrow Agreement (including restrictions on transferability of the Warrants and any ordinary shares resulting from the exercise thereof). The Warrants shall be issued pursuant to the terms set
forth in a resolution of the Board of Directors of the Parent Corporation, substantially in the form set forth as Exhibit A (the “Board of Directors Resolution”), in accordance with the authority granted to the Board of Directors in
respect of such issuance pursuant to the resolution of the shareholders of the Parent Corporation, dated January 29, 2004 (a copy of which is attached hereto as Exhibit B). 
  
 (b) At any time following the occurrence of any of the events described in the Board of Directors Resolution (each, a
“Warrant Exercise Milestone”), HT Prostate shall be entitled to exercise an amount of Warrants equal to the amount set forth therein corresponding to such Warrant Exercise Milestone, in each case subject to the terms, procedures and
restrictions set forth in the Escrow Agreement and the Board of Directors Resolution. 
  
 (c) The parties hereby agree that promptly following the occurrence of any Warrant Exercise Milestone, each of HT Prostate and Parent Corporation shall execute and deliver to the other party and to the Escrow Agent a
written acknowledgement that such Warrant Exercise Milestone has occurred, which acknowledgement shall be substantially in the form set forth as Exhibit C. 
  

	13.	General. 

  

	13.1.	Force Majeure. Neither party hereto shall be responsible for any failure to perform its obligations under this Agreement (other than obligations to pay money)
if such failure is caused by acts of God, force majeure, strikes, revolutions, lack or failure of electrical or telecommunications facilities, including failure of the public Internet, laws or governmental regulations or other causes that are beyond
the reasonable control of such party; provided, however, that the party suffering such delay notifies the other party of the delay within a reasonable period after it learns of the delay. 

  

	13.2.	Governing Law. This Agreement will be construed and enforced in accordance with the laws of the State of Georgia. 

  

	13.3.	Severability. If any one or more provisions of this Agreement shall be held by a court of competent jurisdiction to be illegal, invalid, unenforceable, or void,
the remainder of this Agreement shall remain in full force and effect. 

  

	13.4.	Amendment. This Agreement may be amended or supplemented only by a writing that refers specifically to this Agreement and is signed by duly authorized
representatives of all parties. 

  

	13.5.	Waiver. Any failure of an EDAP Party or HT Prostate to comply with any obligation, provision or condition herein may be waived by HT Prostate or the EDAP Parties,
respectively, only by a written instrument signed by the party granting such waiver, but such waiver shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 

  

	13.6.	Notices. All notices required to be sent by any party under this Agreement shall be in writing and deemed given: (a) three (3) business days after being sent by
commercial overnight courier with written verification of receipt; or (b) when received after being mailed postage prepaid by certified or registered mail, return receipt requested to the party to be notified, at the respective addresses set forth
on the signature page below, or at such other address which may hereinafter be designated in writing. 

  

	13.7.	Successors and Assigns. This Agreement and the rights, duties and obligations arising hereunder shall be binding upon and inure to the benefit of the parties
and to their respective successors and permitted assigns. Neither HT Prostate nor any EDAP Party may assign this Agreement or its rights, duties or obligations hereunder without the prior written consent of the EDAP Parties or HT Prostate,
respectively, such consent 

  

 15 

 not to be unreasonably withheld or delayed, and any prohibited assignment of this Agreement shall be null
and void; provided, however that, except as otherwise provided herein, any party may assign its rights, duties or obligations hereunder to the successor of its business in connection with a merger, acquisition or another event resulting in
the sale of all, or substantially all, of the stock or assets of such party. 
  

	13.8.	Relationship. The relationship between the EDAP Parties, on the one hand, and HT Prostate, on the other hand, under this Agreement shall be that only of
an independent contractor. Nothing contained in this Agreement shall be construed as creating or deemed to create the relationship of employer and employee, a partnership, a joint venture, agency or other association between the EDAP Parties and HT
Prostate. Each party agrees at all times to comply with all applicable laws and regulations in its performance of this Agreement. Nothing in this Agreement, expressed or implied, confers on any person other than the parties hereto (or their
successors and permitted assigns), any rights, remedies, obligations or liabilities. 

  

	13.9.	Customers. Each party acknowledges that upon its entering into an agreement with a customer, the contractual agreement shall be exclusively between the customer and
the contracting party. The termination of any contractual agreement between the customer and such party, if any, shall have no effect on the ongoing relationship of such customer and the other parties. 1 

  

	13.10.	Entire Agreement. This Agreement, the Escrow Agreement and any attachments hereto or thereto (all of which are incorporated herein by reference), when executed
constitutes the entire agreement between the parties and supersedes any prior, collateral or contemporaneous negotiations, representations and agreements, oral or written, between the parties with respect to the subject matter hereof, including all
representations made by each party which induced the other party, or parties to enter into this Agreement. This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original, but all of which
taken together shall constitute one and the same instrument. The Section headings and captions used in this Agreement are included merely for convenience of reference and are not to be considered part of, or to be used in the interpretation of the
Agreement. 

  

	13.11.	Dispute Resolution. 

  
 (a) Any dispute between HT Prostate and any EDAP Party arising out of or in connection with or relating to this Agreement (or any agreements or documents
delivered by the parties hereto pursuant to the terms of this Agreement) or any alleged breach hereof may, at the option of either HT Prostate or such EDAP Party, be submitted for discussion and possible resolution by senior officers of HT Prostate
and such EDAP Party, as designated by their respective chief executive officers. 
  
 (b) All disputes arising out of or in connection with or relating to this Agreement, including those pertaining to the validity, interpretation, construction or breach hereof or of any legal obligation owed or claimed
to be owed by any party hereto to any other party hereto, that is not otherwise amicably settled between the parties shall exclusively be resolved by arbitration between EDAP and HT Prostate pursuant to the Commercial Arbitration Rules of the
American Arbitration Association (the “Rules”), with the arbitration to be conducted in the English language and taking place in New York, New York, United States of America. 
  
 (c) The arbitral tribunal shall be composed of three arbitrators appointed
in accordance with the Rules. The Chairman of the arbitral tribunal shall be nominated by the two arbitrators nominated respectively by the Parent Corporation and HT Prostate, and if they fail to agree upon such Chairman within 30 days after the
second arbitrator has been appointed, such Chairman shall be appointed by the American Arbitration Association. No arbitrator shall be or have been a present or past employee, officer, director, legal counsel, consultant or agent of either party or
its affiliates. All arbitrators shall be of legal education, unless the parties agree otherwise at the time. Unless prohibited or restricted by applicable law, each party agrees to provide to the arbitrators and the other party, subject to a strict
confidentiality agreement, such documents, other evidence, witness testimony as may reasonably be requested by the other party and as are relevant to the issues being arbitrated. The arbitrators may restrict or terminate discovery 
  

 16 

 requests that they conclude are unreasonable, unduly burdensome or not relevant to the issues being
arbitrated. Such discovery shall occur during a reasonable time period. The arbitrators shall not have the power to act as “amiable compositeurs” with respect to any dispute submitted to such arbitration, but rather shall make their
decision based on their understanding and interpretation of the applicable law and facts. The fees and disbursements of the arbitrators shall be allocated between the disputing party and the other party to the dispute in the same proportion that the
disputed items so submitted to the arbitrators that are unsuccessfully disputed by each (as finally determined by the arbitrators) bears to the total amount of all disputed items so submitted. Notwithstanding any provision of this Agreement to the
contrary, (i) any party shall be entitled to seek a judicial order for interim relief to the extent necessary to safeguard the property that is the subject matter of an arbitration proceeding hereunder, and (ii) judgment upon the award rendered in
any arbitration proceeding hereunder may be entered in any court having jurisdiction or application may be made to such court in a judicial acceptance of the award and an order by enforcement, as the case may be. 
  
 (d) The arbitrators shall have no authority to award punitive, consequential
or incidental damages nor any other damages not measured by the prevailing party’s actual damages. Furthermore, either party, before or during any arbitration, may apply to a court having jurisdiction for a temporary restraining order or
preliminary injunction where such relief is necessary to protect its interests pending completion of the arbitration proceedings. 
  
 (e) Notwithstanding any other provision in this Section 13.11 to the contrary, either party may bring court proceedings or claims against the other as
part of separate litigation commenced by an unrelated third party. 
  

	13.12.	Currency. All transactions between EDAP and HT Prostate pursuant to this Agreement shall be consummated with United States dollars. 

  
 Signatures on following page 
  

 17 

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

							
	“HT Prostate”	 	 “EDAP”

		
	HT PROSTATE THERAPY MANAGEMENT COMPANY, LLC	 	EDAP TMS S.A.
				
	By:	 	 /s/ Argil J. Wheelock, M.D.

	 	By:	 	 /s/ Philippe Chauveau

	 	 	Argil J. Wheelock, M.D., CEO	 	 	 	Philippe Chauveau, Chairman and CEO
				
	Address:	 	1841 West Oak Parkway	 	Address:	 	4-6 rue du Dauphiné
	 	 	Suite A	 	 	 	69120 Vaulx-en-Velin
	 	 	Marietta, GA 30062	 	 	 	FRANCE
		
	Telephone No.: 770-419-0691	 	Telephone No.: +33 4 72 15 31 50
	Facsimile No.: 770-419-9490	 	Facsimile No.: +33 4 72 15 31 51
			
	 	 	 	 	EDAP S.A.
				
	 	 	 	 	By:	 	 /s/ Hugues de Bantel

				
	 	 	 	 	Address:	 	Hugues de Bantel, President
	 	 	 	 	 	 	4-6 rue du Dauphiné
	 	 	 	 	 	 	69120 Vaulx-en-Velin
	 	 	 	 	 	 	FRANCE
			
	 	 	 	 	Telephone No.: +33 4 72 15 31 50
	 	 	 	 	Facsimile No.: +33 4 72 15 31 51
			
	 	 	 	 	TECHNOMED MEDICAL SYSTEMS S.A.
				
	 	 	 	 	By:	 	 /s/ Hugues de Bantel

	 	 	 	 	 	 	Hugues de Bantel, President
				
	 	 	 	 	Address:	 	4-6 rue du Dauphiné
	 	 	 	 	 	 	69120 Vaulx-en-Velin
	 	 	 	 	 	 	FRANCE
			
	 	 	 	 	Telephone No.: +33 4 72 15 31 50
	 	 	 	 	Facsimile No.: +33 4 72 15 31 51

  

 18 

 Schedule A 
  
 The Ablatherm Marks 
  
 ABLATHERM 
  
 ABLAPAK 
  
 ABLASONIC 
  

 Schedule B 
  
 Technical Specifications for the Products 
  
 [************] 
  
 [Page one of Schedule B has been omitted] 
  

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	**  *****  **
	  	 System Specification
	  	 

  

			
	INDUSTRIAL NAME	  	ABLATHERM

  

			
	 GENERAL SPECIFICATIONS
	  	 
	 Equipment designation
	  	**  *****  **
**  *****  **
	 Medical application
	  	**  *****  **
	 Classification
	  	**  *****  **
	 Mode of operation
	  	**  *****  **
**  *****  **
		
	 TECHNICAL DESCRIPTION
	  	 
	 [* * * * * *]
	  	 

  

 Page 2/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	******
	  	 System Specification
	  	 
	 [******]
	  	 	  	 

  

 Page 3/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	******
	  	 System Specification
	  	 
	 [******]
	  	 	  	 

  
  

 Page 4/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	******
	  	 System Specification
	  	 
	 [******]
	  	 	  	 

  

 Page 5/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	******
	  	 System Specification
	  	 

  

			
	 [******]
	  	 

  

 Page 6/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	*****
	  	 System Specification
	  	 

  

			
	 [******]
	  	 

  

			
	 Control module
	  	 
	 [******]
	  	 

  

 Page 7/8 

 

 
  

					
	 EDAP TECHNOMED
 RESEARCH and
 DEVELOPMENT
	  	ABLATHERM	  	TMS 507 094 D
	  	 System Specification
	  	 

  

			
	 INSTALLATION REQUIREMENTS
	  	 
	 [******]
	  	 
	 Environmental conditions for transport and storage
	  	 
	 [******]
	  	 
	 Environmental conditions of operations
	  	 
	 [******]
	  	 
	 INTERNATIONAL STANDARDS
	  	 
	 Classification
	  	 
	 [******]
	  	 
	 Main standards applied
	  	 
	 [******]
	  	 

  

 Page 8/8 

 Schedule C 
  
 2004 Ablatherm Distributors Price List 
  

 

 
  
 ABLATHERM: DISTRIBUTOR MAJOR
SPARE PARTS LIST 
  

					
	TECHNICAL CALCULATOR / CALCULATEUR TECHNIQUE
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Supply Module / Alimentation
	  	223066	  	**********
	 CPU PC 104 Board / Carte CPU PC 104
	  	222606	  	**********
	 Interface Board / Carte Interface
	  	222601	  	**********
	 IEEE Board / Carte IEEE
	  	222607	  	**********
	 A Mode Board / Carte Mode A
	  	222605	  	**********
	 I/O Board / Carte I/O
	  	224540	  	**********
	 I/O Rack / Rack E/S
	  	223308	  	**********
	
	SHOOTING UNIT / ENSEMBLE DE TIR
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Case of Probes / Valise de Sondes
	  	223048	  	**********
	
	COOLING UNIT / GROUPE FROID
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Cooling Tank / Bac de Refroidissement
	  	220516	  	**********
	 Pump / Pompe
	  	223316	  	**********
	 PT 100 Probe / Sonde PT 100
	  	223016	  	**********
	 Valve 1/4 / Vanne 1/4 de Tour
	  	223073	  	**********
	
	USER INTERFACE / INTERFACE UTILISATEUR
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Movement Keyboard / Clavier Mouvement
	  	222799	  	**********
	 Sector Keyboard / Clavier Secteur
	  	223004	  	**********
	 Treatment Keyboard / Clavier Traitement
	  	222800	  	**********
	
	CONTROL MODULE / MODULE DE CONTRÔLE
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Control Module Wheel (dia 0.75) / Roue du MDC (dia 0.75)
	  	223091	  	**********
	 Control Module Wheel (dia 125) / Roue du MDC (dia 125)
	  	223090	  	**********
	 	  	 	  	 
	 January 2004
	  	 	  	1/3

					
	X-Y-Z MOVEMENT / MOUVEMENT X-Y-Z
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Rotation System / Platine Rotation
	  	223463	  	**********
	 X Motion System (100mm) / Platine Translation X (100mm)
	  	223461	  	**********
	 Z Motion System (50mm) / Platine Translation Z (50mm)
	  	223462	  	**********
	 Automotion Rack / Rack Automatisme
	  	220507	  	**********
	 IEEE Cable / Câble IEEE
	  	223292	  	**********
	 Y Encoder / Encodeur Y
	  	222796	  	**********
	 L Encoder / Encodeur L
	  	222797	  	**********
	 T Encoder / Encodeur T
	  	222795	  	**********
	 Actuator / Vérin
	  	223346	  	**********
	
	ULTRASOUND RACK / RACK ECHOGRAPHE
	 `Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Ultrasound Rack / Rack Echographe
	  	217381	  	**********
	
	POWER OSCILLATOR / RACK PUISSANCE
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Power Amplifier / Amplificateur
	  	223322	  	**********
	 706705 Cable / Câble 706705
	  	223639	  	**********
	 712713 Cable / Câble 712713
	  	223672	  	**********
	 Calorimeter / Calorimètre
	  	220521	  	**********
	 Generator 15 Mhz / Générateur de Fonction 15 Mhz
	  	223323	  	**********
	 Wattmeter Rack / Sous-Ensemble Wattmètre
	  	223324	  	**********
	 Wattmeter / Wattmètre
	  	223892	  	**********
	
	PATIENT SUPPORT UNIT / SUPPORT PATIENT
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Patient Movement Detector / Détecteur de Mouvement Patient
	  	223467	  	**********
	 Treatment Module Wheel / Roue pour le Module de Traitement
	  	223011	  	**********
	 	  	 	  	 
	 January 2004
	  	 	  	2/3

					
	COMPUTER RACK / ENSEMBLE INFORMATIQUE
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Video Frame Grabber PC Board / Carte Acquisition Vidéo
	  	223335	  	**********
	 SCSI Controller PC Board / Carte Contrôleur SCSI
	  	223337	  	**********
	 Sound PC Board / Carte Son
	  	223332	  	**********
	 Keyboard / Clavier
	  	223341	  	**********
	 15” LCD Screen / Ecran LCD 15”
	  	223329	  	**********
	 Printer / Imprimante
	  	218129	  	**********
	 Software / Logiciel
	  	223302	  	**********
	 Computer / Ordinateur (UC)
	  	223336	  	**********
	 External CD Player / Lecteur CD Externe
	  	223338	  	**********
	 ASSY Computer / Ordinateur Equipé (UC)
	  	223331	  	**********
	 Mouse / Souris
	  	223340	  	**********
	
	MAINTENANCE TOOLS / OUTILS DE MAINTENANCE
	 Part Name / Désignation

	  	Ref /Code

	  	Distributor Prices /
Prix Distributeur

	 Testing Tank / Cuve Test
	  	221840	  	**********
	 Focal Point Test Tool / Ensemble Coupelle Point Focal
	  	220549	  	**********

  

			
	 SALES CONDITIONS
	  	CONDITIONS DE VENTE
		
	 WARRANTY
	  	GARANTIE
	 For each order of spare parts under warranty,
	  	Pour toute commande de pièces au titre de la garantie,
	 a warranty replacement request will have to be filled in
	  	un formulaire de demande d’échange sous garantie
	 and sent to us.
	  	devra être complété et nous être adressé.
		
	 These prices are without VAT and Ex-Works.
	  	Ces prix sont hors TVA et Départ Usine.
	 Minimum billing: EUR 450.00.
	  	Minimum de commande facturable : 450,00 EUR.
	 For any order below this amount, order processing
	  	Pour toute commande d’un montant inférieur, il sera
	 Costs in the amount of EUR 75.00 will be charged.
	  	facturé 75,00 EUR de frais de dossier.
	 Should you hesitate on a reference, please send us
	  	En cas de doute sur une référence, merci de nous
	 a diagram or a description of the required part at :
	  	adresser un schéma ou un plan de la pièce à :
	 SAV@edap-tms.fr
	  	SAV@edap-tms.fr
		
	 Purchase orders to be sent to:
	  	Toute commande de pièces sera adressée à :
	 Carine BUIRON
	  	Carine BUIRON
	 Telephone Nr.: 33 (0)4 72 15 31 50
	  	Téléphone : 33 (0)4 72 15 31 50
	 Telefax Nr.: 33 (0)4 72 15 31 51
	  	Fax : 33 (0)4 72 15 31 51
	 E-mail: CBuiron@edap-hifu.com
	  	E-mail : CBuiron@edap-hifu.com
		
	 Only confirmed and written orders with an order number
	  	Seules les commandes écrites avec un numéro de
	 (mail, fax or e-mail) will be entered.
	  	commande (fax, courrier ou e-mail) seront traitées.
	 For economic or technical reasons, the prices and
	  	Les prix et références peuvent être modifiés à tout
	 references can be modified at anytime.
	  	moment pour des raisons économiques ou techniques.
	 	  	 
	 January 2004
	  	3/3

 Exhibit A 
  
 Form of Resolution of Board of Directors of EDAP TMS S.A. 

 EDAP TMS S.A. 
 Limited Company with capital of [·] Euros 
 Registered office: Parc d’activité La Poudrette Lamartine 
 4, rue du
Dauphiné 
 69120 Vaulx-en-Velin (France) 
 RCS: Lyon B 316 488 204 
  
 MEETING MINUTES OF THE 
 BOARD OF DIRECTORS 
 ON 28 JANUARY 2005 
  
 [ January 28 ], 2005, at [            ] hours, the members of the Board of Directors of EDAP TMS S.A. (the “Company”) met [ with the registered office ], on
convocation of the President of the Board of Directors carried out in accordance with the statutes of the Company, in order to deliberate the agenda of the next day: 
  

	 	1.	Approval of the official report of the meeting of the Board of Directors on [date ] 

	 	2.	Emission of share warrants for the profit of HT Prostate Therapy Management Company L.L.C and fixing the methods of these shares. 

	 	3.	Other issues 

  
 Present and Registered in the Attendance Book: 
  

	 	-	Mr. Philippe Chauveau, President of the Board of Directors and General Manager, 

	 	-	Mr. Pierre Beysson, Director, 

	 	-	Professeur Guy Vallancien, Director, 

	 	-	Doctor Karim Fizazi, Director, 

	 	-	Mr. Olivier Missoffe, Director, and 

	 	-	Siemens France S.A., represented by Mr. Holger Schmidt. 

  
 Represented: 
  

	 	-	[·].] 

  
 Excused absent: 
  

	 	-	[·].] 

  
 Also Present : 
  

	 	-	Mr. Hugues de Bantel, President of the Board of Directors of Technomed Medical Systems S.A. and EDAP S.A., and 

	 	-	Ms. Blandine Confort, General Attachée. 

  
 The council is chaired by Mr. Chauveau, President 
  
 Ms. Blandine Confort is acting, on the request of the President, as Secretary. 

 Mr. President notes that the quorum is reached and that the Board can deliberate. A review of the agenda questions is
conducted: 
  

	 	1.	Approval of the minutes of the meeting of the Board of Directors on [ date ]  

  
 Mr. President submits to the Board the official report of the board meeting of [ date ]. 
  
 After having deliberated, the Council, unanimously, approves the official report on [ date ].

  

	 	2.	Emission of share warrants for the profit of HT Prostate Therapy Management Company L.L.C and fixing the method of these shares  

  
 The President reminds the Board that the General Assembly meeting of the shareholders of the
Company on January 29, 2004, in the 1st resolution, has, in accordance with the provisions of the L.228-95 article of the Commercial law, authorized the Board of Directors to carry out the emission, once or several times, of a maximum of 1,000,000
(a million) share warrants, of one or more categories, giving the right to subscribe to shares of the Company at a rate of one stock per share and for a price of 1.50 US dollars, or the exchange value in euros, per share. It has decided that these
shares would be allotted free to HT Prostate Therapy Management Company L.L.C. and removed the preferential duty of subscription of the shareholders for these shares and the stocks to which they give right, and authorized the Council to increase the
Company’s capital accordingly with the exercise of these shares. In addition, it is delegated to the Council all powers to carry out the emission of the shares, to stop the characteristics and the methods of exercise, to take measurements
necessary for the reservation of the rights of the shareholders, to carry out the new issues of capital resulting from their exercise and the correlative statutory modifications and to generally do what is deemed necessary. 
  
 The President points out that the emission of these shares lies within the scope of the
overall agreement reached with the HealthTronics group for the distribution of Ablatherm in the United States, an signed distribution agreement (Distribution Agreement) materialized on February [    ], 2004 between the Company,
EDAP S.A., Technomed Medical Systems S.A. and HT Prostate Therapy Management Company L.L.C. 
  
 Consequently, it proposes that the Board establish the methods and issue these 1,000,000 share warrants reserved at HT Prostate Therapy Management Company L.L.C. 
  
 After having deliberated on it, the Board, making use of the authorization and the powers
which were delegated to it by the General Assembly meeting referred to above in the 1st resolution, unanimously adopts the procedures of the emission of the shares warrants as follows: 
  

					
	1.	  	Number of Shares	  	Issue 1,000,000 (one million) autonomous share warrants, giving each one the right of subscription to the Company (a « share ») divided into seven distinct
categories:
			
	 	  	 	  	- 200,000 Shares A
	 	  	 	  	- 200,000 Shares B
	 	  	 	  	- 100,000 Shares C
	 	  	 	  	- 100,000 Shares D
	 	  	 	  	- 100,000 Shares E
	 	  	 	  	- 100,000 Shares F
	 	  	 	  	- 200,000 Shares G.

							
	2.	  	Title holder	  	 	  	The shares are reserved by HT Prostate Therapy Management Company L.L.C.
				
	3.	  	Price of subscription	  	 	  	The issue is free.
				
	4.	  	Date of issue	  	 	  	January 28, 2005.
				
	5.	  	Dates of exercise	  	 	  	In accordance with the Distribution Agreement and the trade agreement concluded between the Company, its subsidiary companies and HT Prostate Therapy Management Company L.L.C., the shares could
be exercised at the following dates (“milestones”), dependent on the process of obtaining per HT Prostate Therapy Management Company L.L.C. of “Pre-Market Approval” (“PMA”) validation of Ablatherm by the American
“Food and Drug Administration” (“FDA”) and acquisition by HT Prostate Therapy Management Company L.L.C. or any other HealthTronics Company (such as this term is defined in paragraph 10 below) lithotriteurs:
	 	  	 	  	-	  	Shares A will be exercisable, within the scope of work by HT Prostate Therapy Management Company L.L.C. of clinical trials for Ablatherm, as from the date of the last follow-up of the last
patient of the clinical trial Ablatherm led by HT Prostate Therapy Management Company L.L.C., within the framework of a “IDE” (“Investigational Device Exemption”). It is understood by “last follow-up of the last
patient” that this is the last evaluation such as defined in the protocol of the test concerned for constitution of the clinical file of first tender of PMA;
	 	  	 	  	-	  	Shares B will be exercisable from the tender by HT Prostate Therapy Management Company L.L.C. with the FDA filing of the homologation PMA (“Pre-Market Approval Application”) relating
to Ablatherm, complete, in final form and in conformity with the requirements of the FDA;
	 	  	 	  	-	  	Shares C will be exercisable at their issue, [HT Prostate Therapy Management Company L.L.C.] [or, if necessary: [·] [ name of the HealthTronics company carrying out the purchase], having

							
	 	  	 	  	 	  	purchased along with the company and its subsidiaries [indicate, if necessary, the company or the subsidiary of the company that HT Prostate bought lithotriteurs from during 2004] more than four
(4) lithotriteurs during 2004,
	 	  	 	  	-	  	Shares D will be exercisable as of January 1, 2006 in the event of the purchase of the Company or its subsidiaries, by HT Prostate Therapy Management Company L.L.C. or any other HealthTronics
Company, of at least four (4) lithotriteurs during 2005,
	 	  	 	  	-	  	Shares E will be exercisable as of January 1, 2007 in the event of the purchase of the Company or its subsidiaries, by HT Prostate Therapy Management Company L.L.C. or any other HealthTronics
Company, of at least four (4) lithotriteurs during 2006,
	 	  	 	  	-	  	Shares F will be exercisable as of January 1, 2008 in the event of the purchase of the Company or its subsidiaries, by HT Prostate Therapy Management Company L.L.C. or any other HealthTronics
Company, of at least four (4) lithotriteurs during 2007,
	 	  	 	  	-	  	Shares G will be exercisable from the receipt by HT Prostate Therapy Management Company L.L.C. written confirmation from the FDA of final receipt of the a valid PMA (“Pre-Market
Approval”) for Ablatherm.
			
	 	  	 	  	In any event, and in accordance with the provisions of the L.228-95 article of the Commercial law, the shares will have to be exerted within five (5) years from the date of their
issue, that is to say, at the latest, January 28 2010. The shares not having been exercised on this date will be null and void and lose any validity.
			
	6.	  	Suspension of exercise	  	In the event of new issue of capital, fusion or scission of the Company, or any other financial transaction of the Company comprising a preferential duty of subscription or a
priority right of the shareholders, the board of directors of the Company will be able to suspend, for a maximum of three months, the exercise of the shares, subject to the rules relating to the reservation of the rights of the stockholders. In this
case, the Company will inform preferred stockholders of the date on which the exercise of the shares will be suspended and of the date on which it will begin again.

							
	7.	  	Exercise right of subscription	  	HT Prostate Therapy Management Company L.L.C. will have the ability to subscribe at a rate of 1 (one) stock of 0.13 euro each at face value issued by the Company, for 1 (one) share
executed, at the price of 1.50 US dollar (a dollar fifty), or its exchange value in euros at the date of subscription, per stock.
			
	 	  	 	  	The subscriptions of stock of the Company gives right to the shares at the time of their exercise to be registered. The price of subscription referred to above will have to be
deposited completely in cash at the Company.
			
	8.	  	Possession of new stock	  	New stock issued as the result of the exercise of stocks will be subjected to all the provisions of the statutes of the Company and carry benefits the first day of the accounting
period during which they will have been subscribed. They will have rights, starting on this date and with stocks of the later exercises, of the same dividends (on the basis of face value) as that which could be distributed with the other stocks
carrying the same benefits.
			
	 	  	 	  	They will be, consequently, entirely comparable to the stocks, after payment of the dividend, with the preceding exercise or, if it were not distributed by it, after the annual
assembly session ruling on the aforementioned exercise.
			
	9.	  	Protection of the stockholders	  	In accordance with the L.225-153 article of the Commercial law, as long as there are valid and non-exercises shares:
				
	 	  	 	  	-	  	the Company avoids depreciating its capital and modifying the distribution of the benefit; however, the Company can create stocks with priority dividend without voting rights on the condition
under the conditions contained in L.225-154 of the Commercial law;
	 	  	 	  	-	  	in the event of reduction of capital moved by losses and realized by the reduction in the par value or the number of stocks, the rights of the stockholders will be reduced accordingly, as long
as the aforementioned holders had been shareholders as of the date of circulation of the stock.
			
	 	  	 	  	Moreover, in accordance with article L.225-154 of the Commercial law, as long as there will be valid and non-exercised shares, the Company will not be able to carry

					
	 	 	 	 	out the issue of shares against cash reserved to the shareholders or the issue of other
titles comprising a preferential duty of subscription, with incorporation of capital
reserves,
benefit or premiums issue, or the distribution of cash reserves, in the
condition of reserving the rights of the stockholders which would exercise their
shares.
			
	 	 	 	 	To this end, the Company will have, under the conditions described in articles 171 to 174 of the decree n° 67-236 of March 23, 1967, to allow to the stockholders which will exert the
application right related to these stocks, as the case may be, to subscribe on a purely irreducible basis of the stock or new titles or to obtain new stock on a purely free basis, or to receive cash or titles similar to the titles distributed in the
same quantities or proportions, except with regard to the possession, which if they had been shareholders at the time of the aforementioned emissions, incorporations or distributions; or, in the cases envisioned by the law, to allow them, if they
wish to take part in the operation, to exert their application right.
			
	 	 	 	 	For any movable issue of securities or another operation comprising a preferential duty of subscription reserved for the shareholders, the Company will have to inform, as a preamble, the
stockholders in writing (in accordance with the mentions outlined in article 174-2 of decree n° 67-236 of March 23, 1967).
			
	 	 	 	 	In the event of absorption of the Company by another company, of fusion with one or more other companies in a new company, or of scission by contribution of existing or new companies, the
holders of the scrip Certificates will be able to subscribe to the stock of the surviving company or new or the associated companies of the scission under the same conditions as those outlined for the origin, except carrying out the adjustments made
necessary by fusion or the scission in accordance with article L.225-156 of the Commercial law.
			
	 	 	 	 	When, because of the one of the situations mentioned above, the stockholders presenting their stocks have right to a number of actions because of this severed union, which will be presented in
cash. In accordance with the provisions of article 174-5 of the decree n° 67-236 of March 23, 1967, this payment will be equal to the new value resulting from the severed union by the value of the action calculated on the basis of
stockholders’ equity of the Company.

					
	10.	  	Restrictions of Transfer	  	The shares could be transferred by HT Prostate Therapy Management Company L.L.C. only to companies controlled by HT Prostate Therapy Management Company L.L.C., which control HT Prostate Therapy
Management Company L.L.C., or which are controlled by the same company as HT Prostate Therapy Management Company L.L.C., concept of control being defined by detention, direct or indirect, of the majority of the voting rights (these companies are
collectively indicated as the “HealthTronics Companies”). The HealthTronics Companies thus become titleholders of shares and will be, in turn, prohibited to transfer their shares, except with HT Prostate Therapy Management Company L.L.C.
or at other HealthTronics Companies.

  
 Moreover, in order to comply with
American legal provisions relating to transferable securities, shares, as well as the stocks which will be issued as a result of their exercise, these will be subject to sequestration, initially concluded near the company euro Transmitters Finances
which ensures the stocks of the Company, under the terms of a contract of sequestration of which a copy is appended to the present official report. 
  
 The Board of Directors may then decide to carry out without delay the emission of the 1,000,000 shares terms and allot them to HT Prostate Therapy Management Company
L.L.C. 
  
 In addition, the Council delegates to its President the powers
necessary to carry put the exercises of shares and the new issues of resulting capital, and to carry out the modifications necessary of the statutory clauses relating to the amount of the authorized capital and the number of stocks which make it up.

  
 After having discussed all on the agenda, the meeting is adjourned at
[    ] hour. 
  
 Aforementioned included, this official report
is drawn up and signed, after review, by the President and an administrator. 
  

			
	  

	 	

	Président	 	Administrator

 EDAP TMS S.A. 
 Limited Company with capital of [·] Euros 
 Registered office: Parc d’activité La Poudrette Lamartine 
 4, rue du
Dauphiné 
 69120 Vaulx-en-Velin (France) 
 RCS: Lyon B 316 488 204 
  
 OPINION OF CONVOCATION 
  
 Date
[·] 2005 
  
 Sirs, 
  
 Sirs, the administrators are requested
to attend the board meeting of the company to be held on[ [January 28 ] 2005, at [? ] hours, at [ with the registered office ], for the purpose of deliberating on the following agenda: 
  
 - approval of the minutes of the meeting of the Board of Directors on [? ] 
  
 - Emission of share warrants for the profit of HT Prostate Therapy Management Company L.L.C and fixing the methods of these shares

  
 - other issues 
  
 President, Board of Directors 

 Exhibit B 
  
 Resolution of Shareholders of EDAP TMS S.A. dated January 29, 2004 

 EDAP TMS S.A. 
 Société anonyme au capital de 1.087.166,73 Euros 
 Corporate Headquarters : Parc
d’activité La Poudrette Lamartine 
 4, rue du Dauphiné 
 69120 Vaulx-en-Velin (France) 
 316 488 204 RCS LYON 
  
 EXCERPT OF THE MINUTES OF THE 
 EXTRAORDINARY GENERAL SHAREHOLDERS 
 MEETING HELD 
 ON JANUARY 29, 2004 
  
 (COPY DULY CERTIFIED BY EDAP TMS’s CHAIRMAN AND C.E.O.) 
  
 On January 29 of the year 2004, 
 At 14:30 p.m., 
  
 The shareholders of EDAP
TMS, attended an Extraordinary Meeting of Shareholders at the headquarters of the Company, 4 Rue du Dauphiné - 69120 Vaulx-en-Velin, France, on notification sent from the Board of Directors, as per statutory provisions. 
  
 They adopted the following resolution: 
  

  
 “ The shareholders, in accordance with quorum and majority conditions required by extraordinary shareholders meetings, and after hearing the Board of Directors’
report and the Statutory Auditors’ special report: 
  

	a)	authorize the Board of Directors to proceed, pursuant to articles L. 228-95 of the French Commercial Code, in one or several times, to the issuance of a maximum of 1,000,000 (one
million) warrants (bons de souscription d’actions), of one or more categories, each warrant (bon de souscription d’actions) giving their owners the right to subscribe to one share of the Company of par value 0.13 Euro per
share; 

  

	b)	authorize the Board of Directors to increase the nominal share capital of the Company by an amount up to 130,000 (one hundred and thirty thousand) Euros, as a result of the exercise
of the subscription rights attached to the warrants (bons de souscription d’actions), such increase being subject to, if necessary, additional increases amounting the nominal amount of extra shares to be issued in favor of the
warrants-holders, in accordance with French law; 

  

	c)	decide to suppress in favor of the HT Prostate Therapy Management Company L.L.C. the shareholders’ preferential subscription rights for all of the warrants (bons de
souscription d’actions) to be issued and decide that HT Prostate Therapy Management Company L.L.C. will be the sole owner of the right to subscribe to the such warrants (bons de souscription d’actions), according to the present
authorization; 

	d)	decide that the warrants (bons de souscription d’actions) will be issued to HT Prostate Therapy Management Company L.L.C. without the payment of any subscription price
and that they may be exercised at a price of 1.50 US dollars (one dollar fifty) or its equivalent value in Euros per share; 

  

	e)	acknowledges that the present issuance of warrants (bons de souscription d’actions) will result in the waiver, in favor of the warrants-holders, of the
shareholders’ preferential subscription right to the Company’s ordinary shares resulting from the exercise of these warrants (bons de souscription d’actions); 

  

	f)	acknowledges that the warrants (bons de souscription d’actions) will be allocated in one or several times, within a maximum of one year from the present decision and
decides that they will have to be exercised within five (5) years from their issuance date, upon satisfaction of conditions or delays that the Board of Directors may define for each category of warrants (bons de souscription d’actions).

  
 Furthermore, the Shareholders’ Meeting delegates all powers
to the Board of Directors to: 
  

	a)	proceed with the issuance of the warrants (bons de souscription d’actions) within the framework and according to the terms of the present decision.

  

	b)	determine the characteristics and terms and conditions of the exercise of the warrants (bons de souscription d’actions), as for, but not limited to, the time periods and
conditions under which the warrants (bons de souscription d’actions) may be exercised, the terms of subscription and the dividend rights attached to the shares to be issued, and, as the case may be, the suspension of the right to
exercise the warrants (bons de souscription d’actions) during a maximum of three months). 

  

	c)	implement the necessary measures to reserve, pursuant to applicable French laws and regulations, the rights of the warrants-holders, should the Company undertake certain capital
transactions as defined in said articles for as long as all warrants (bons de souscription d’actions) have not been exercised; 

  

	d)	acknowledge, in accordance with French law, the amount of capital increases resulting from the exercise of the warrants (bons de souscription d’actions), and implement
the relevant statutory modifications to the Company’s by-laws as well as proceed with all formalities; 

  

	e)	more generally, undertake all necessary and useful measures to implement the present authorization. 

  
 This resolution has been adopted with 2.929.948 votes “FOR” and 172.378 votes “AGAINST.” 
  

  
 I certify that this excerpt of the minutes conforms the original 
  
 Philippe Chauveau 
 Chairman & C.E.O. 
 EDAP TMS SA 
  
 Vaulx-en-Velin, January 29,
2004 

 Exhibit C 
  
 Form of Warrant Exercise Acknowledgement 
  

			
	 To:
	 	 [HT Prostate Therapy Management Company, LLC

	 	 	 1841 West Oak Parkway

	 	 	 Suite A

	 	 	 Marietta, Georgia 30062]

	 	 	  
 [EDAP TMS
S.A.

	 	 	 4-6 rue du Dauphiné

	 	 	 69120 Vaulx-en-Velin

	 	 	 FRANCE]

	 	 	  
 Euro Emetteurs Finance
S.A.

	 	 	 48 boulevard des Batignolles

	 	 	 75017 PARIS

	 	 	 FRANCE

  
 [date], 200_

  

			
	Re:	 	 Occurrence of a Warrant Exercise Milestone

  
 Dear Sirs: 
  
 Reference is made to that Distribution Agreement, dated ·, 2004 by and between HT Prostate Therapy Management Company LLC (“HT Prostate”), EDAP TMS S.A. (“EDAP”) and certain
subsidiaries of EDAP (the “Distribution Agreement”). Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Distribution Agreement. We hereby confirm that as of the date hereof the Warrant Exercise
Milestone set forth below has occurred and as a result thereof, HT Prostate is entitled to exercise [number] Warrants at any time following the date hereof until January 28, 2010. 
  
 Warrant Exercise Milestone: · 
  
 Warrants exercisable as a result of the
occurrence of such Warrant Exercise Milestone: · 
  
 Aggregate amount of Warrants exercisable as of the date hereof: · 
  
 Yours faithfully, 

 Exhibit D 
  
 Form of the Escrow Agreement 

 

 
  
 EDAP TMS 
  
 SECURITIES SERVICE and 
 ESCROW AGREEMENT 
  
 Warrants 
  
 SERVICING WARRANTS 
  
 HANDLING EXERCISES OF WARRANTS 
  
 ESCROW OF WARRANTS AND SHARES 

 SECURITIES SERVICE AND ESCROW AGREEMENT 
  
 BY AND AMONG 

 
 EDAP TMS, (hereinafter the “Issuer”), a French corporation with a
board of directors, and with capital of €1,087,166.73, whose principal place of business is located at Parc d’activité de la Poudrette Lamartine, 4, rue du Dauphiné, 69120 Vaulx-en-Velin and recorded in the Commercial
Register Lyon B 316 488 204, 
 Represented by Mr. Philippe Chauveau, acting in his capacity as Chairman and Chief Executive Officer 
 party of the first part 
  
 HT PROSTATE THERAPY MANAGEMENT COMPANY L.L.C., (hereinafter “HT Prostate”), a limited liability company governed by the laws of the State of
Delaware (United States) whose principal place of business is located at 1841 West Oak Parkway, Suite A, Marietta, GA 30062 United States, 
 Represented by
Mr. Argil J. Wheelock, acting in his capacity as Chief Executive Officer 
  
 party of the second part 
  
 EURO
EMETTEURS FINANCE (EEF), (hereinafter the “Provider”), a French corporation with a managing board and a supervisory board, and with capital of €3,812,000 and recorded in the Commercial Register in Paris 430 250 183, whose
principal place of business is located at 48, boulevard des Batignolles - 75017 Paris, 
 Represented by Mr. Jean-François Martinville, acting in his
capacity as Chairman of the Managing Board 
 party of the third part. 
  
 WHEREAS: 
  
 Pursuant to a commercial agreement between the Issuer and certain companies in the Healthtronics group (including HT Prostate), which has
been formalized through the execution of a distribution agreement signed on February [        ], 2004, between the Issuer, its subsidiaries and HT Prostate (the “Distribution
Agreement”), the relevant companies in the Healthtronics group have agreed, among other things, (i) to take charge of clinical studies and the authorization procedure with the American authorities to permit certain products of the Issuer to
be sold in the United States and (ii) to purchase from the Issuer certain products sold by the Issuer. In consideration of these commitments, the Issuer has agreed to award to HT Prostate one million (1,000,000) warrants (the
“Warrants”) entitling the holder to subscribe to shares of the Issuer, at the rate of one share per warrant (the shares that will be issued by the Issuer when the Warrants are exercised are hereinafter referred to as the
“Underlying Shares”). Pursuant to the Distribution Agreement, these Warrants cannot be exercised until certain milestones are met; therefore, they will be divided into seven different categories in accordance with their terms and
exercise dates (as defined in Exhibit A to this Agreement), and distributed as follows: 

	 	-	200,000 A Warrants 

	 	-	200,000 B Warrants 

	 	-	100,000 C Warrants 

	 	-	100,000 D Warrants 

	 	-	100,000 E Warrants 

	 	-	100,000 F Warrants 

	 	-	200,000 G Warrants. 

  
 The issuance of the Warrants was authorized by the Issuer’s shareholders at a special meeting on January 29, 2004. The issue will be carried out, by authorization of said shareholders, by the Issuer’s board
of directors, who will establish the terms, exercise dates and other terms and conditions of these Warrants and the Underlying Shares and will decide on the issuance and award of these Warrants to HT Prostate. A certified copy of the resolution of
the Issuer’s shareholders authorizing the issuance of the Warrants is attached to this Agreement in Exhibit A. A certified copy of the resolution of the Issuer’s board of directors issuing Warrants and establishing their terms and
conditions will be sent by the Issuer to the Provider and to HT Prostate as soon as possible after it is adopted, and will also be attached to this Agreement in Exhibit A. 
  

 1 

 Neither the Warrants nor the Underlying Shares have been or will be registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and they are issued pursuant to an exemption from the registration obligation provided for by Section 4(2) of the Securities Act for sales of securities not involving a public offering. Consequently, the
Issuer and HT Prostate have agreed to place the Warrants and the Underlying Shares in escrow throughout the entire period during which these securities will be restricted securities as such term is defined in Paragraph (a)(3) of Rule 144
adopted pursuant to the Securities Act, subject to HT Prostate’s ability to resell the Warrants and Underlying Shares pursuant to Rule 144 or a registration statement declared effective by the Securities and Exchange Commission. 
  
 The Issuer desires to entrust to the Provider, which is already servicing the shares issued
by the Issuer, with servicing the Warrants and handling the Warrant exercise notices. Furthermore, the Issuer and HT Prostate desire to have the Provider provide the escrow services mentioned above. 
  
 NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 
  

	I-	SUBJECT MATTER OF THE AGREEMENT 

  
 The purpose of this Agreement is to define the terms on which the Provider will service the Warrants (II); handle the Warrant exercise notices (III); and hold the
Warrants and the Underlying Shares in escrow (IV). 
  

	II-	SERVICING OF THE WARRANTS 

  
 The Provider shall provide administrative and accounting services with respect to the Warrants issued by the Issuer. 
  
 In so doing, the Provider shall perform the following obligations: 
  

	•	Establish, manage and update the records of the Warrant holders (which shall be required to be in pure registered form)1; 

  

	•	Assign a personal identification number to these holders; 

  

	•	Send a certificate of registration to Warrant holders when they open an account; 

  

	•	Handle all requests by Warrant holders for information by mail or telephone; 

  

	•	Send to each Warrant holder an annual account statement showing the transactions carried out, the number of securities transferred and the number of securities remaining in the
account. This statement shall be accompanied by a response card allowing the holder to inform the Provider of any changes; 

  

	•	Examine and handle individual files (changes in type of registration, exercise of Warrants, transfer of ownership, etc.) in compliance with Articles III and IV of this Agreement;

  

	•	Prepare and send to the Issuer, upon request, lists of the registered holders classified in accordance with predefined sort criteria; 

	1	[Translator’s Note: “Pure registered form” means that transfer of ownership will be handled directly by the issuer, not by a bank.]

  

 2 

	•	Keep and make available to the Issuer a statement summarizing the number of Warrants not yet exercised, the number of Warrants exercised and the number of Warrants in Escrow (as
defined in Article IV of this Agreement); 

  

	•	In the event of a transaction by the Issuer, inform the Warrant holders of the actions taken by the Issuer to preserve the rights of Warrant holders, or if applicable, the periods
during which the Warrants may not be exercised and when they may be exercised again; 

  

	•	Archive documents for as long as required by law. 

  

	III-	HANDLING OF WARRANT EXERCISE NOTICES 

  
 As part of the process of handling notices that Warrants have been exercised, the Provider shall have the following obligations and duties: 
  

	•	Receive and verify the exercise notices from the Warrant holders; 

  

	•	Create new shares and, if applicable, handle the balances to be paid or received; 

  

	•	Update the accounts of Warrant holders. 

  
 It is specified that the Provider expressly agrees to handle the Warrant exercise notices in accordance with the following provisions: 
  

	•	In accordance with the Warrant exercise schedule described in the resolutions of the Issuer’s board of directors pursuant to which the Warrants were issued, as soon as a
milestone indicated in the schedule is reached, the Issuer must immediately send to the Provider a written instruction sent in accordance with the terms of this Agreement and in accordance with the model set forth in Exhibit 3-1 to this
Agreement, that the category of Warrants concerned has become exercisable and that the Warrants in this category may be exercised until the Expiration Date (as defined below) of the Warrants in question. 

  
 In accordance with the law and the terms of the resolution of the
Issuer’s board of directors, the expiration date of the validity of the Warrants shall be five years after the date on which said Warrants are issued by the Issuer’s board of directors (the “Expiration Date”). 

 

	•	Once this instruction is received by the Provider, HT Prostate or any Healthtronics Company that holds Warrants that have become exercisable may, at any time prior to the Expiration
Date of the Warrants in question, inform the Provider that it is exercising all or part of the Warrants in this category, in accordance with the model appearing in Exhibit 3-2 to this Agreement, indicating the number of Warrants exercised.
Said notice shall not be acceptable unless it is accompanied by a certificate from the Issuer, in the form set forth in Exhibit 3-3 to this Agreement certifying that the Issuer has received the payment by HT Prostate of the amount of the
exercise price of the Warrants in question, i.e., U.S.$1.50 per Warrant (or its equivalent in euros). 

  

	IV-	ESCROW OF THE WARRANTS AND THE UNDERLYING SHARES 

  
 The Provider shall escrow the Warrants and the Underlying Shares that are issued by the Issuer. 
  
 In so doing, the Provider shall perform the following obligations: 
  

 3 

 4-1 Establishment of the Warrant Escrow 
  
 The Issuer and HT Prostate hereby establish the Provider as escrow agent for the Warrants, and this task is accepted by the Provider.

  
 As soon as they are issued and awarded by the Issuer’s board of directors
to HT Prostate, the Warrants shall be immediately and irrevocably registered in an account in the name of HT Prostate in the register of Warrants kept by the Provider that are covered by this escrow (the Warrants thus escrowed shall be called the
“Escrowed Warrants”). All Warrants resulting from a new issue shall be recorded in a different new account (new identification number) because these Warrants shall be issued on a different date than the Escrowed Warrants previously
issued and placed in escrow. 
  
 The Provider expressly agrees not to move or
release the Escrowed Warrants except in accordance with the terms of this Agreement. 
  
 4-2 Establishment of the Escrow of the Underlying Shares 
  
 The Issuer and HT Prostate hereby establish the Provider as escrow agent for the Underlying Shares, and this task is accepted by the Provider. 
  
 Whenever a Warrant is exercised, the Underlying Shares resulting from the exercise shall be immediately and irrevocably recorded in a new account (new identification
number) in the name of their holder in the register of the Issuer’s shares kept by the Provider that are covered by this escrow (each new account is hereinafter referred to as an “Escrow Account” and the entirety of the shares
appearing in the Escrow Accounts are referred to hereinafter as the “Escrowed Shares”). 
  
 All Underlying Shares resulting from a new exercise of Warrants or any new shares placed in escrow shall be recorded in a new Escrow Account because these shares will be received by their holder on a different date
than the Escrowed Shares previously held or placed in escrow. 
  
 Moreover, all
shares or other securities of the Issuer that are sent to HT Prostate or to any other Healthtronics Company as a result of its holding of Warrants or Escrowed Shares (including by way of the reservation of rights of Warrant holders in the event of a
financial transaction by the Issuer, conversion, a stock split, reverse split, recapitalization, reclassification or any other change affecting the Issuer’s capital, as well as any share received as a dividend or other distribution or reduction
or redemption of capital) shall be automatically classified as Escrowed Shares and shall therefore be placed in escrow pursuant to this Agreement and governed by the terms hereof. Similarly, if the Issuer participates in an absorption, merger,
spin-off or contribution, entitling the holders of Warrants or Escrowed Shares to shares of the absorbing or new company or shares benefiting from the spin-off or contribution, the shares thus received shall be considered Escrowed Shares and shall
therefore be placed in escrow pursuant to this Agreement and governed by the terms hereof. 
  
 The Provider expressly agrees not to move or release the Escrowed Shares except in accordance with the terms of this Agreement. 
  

4-3 Release of Escrowed Shares 
  
 The Provider shall not release the Escrowed Shares in whole or in part except in accordance with the following provisions: 
  

	•	The Provider must have received a written notice from HT Prostate (or, as the case may be, the Healthtronics Company that holds the Escrowed Shares), in accordance with this
Agreement, a copy of which must be sent to the Issuer, including (x) a written instruction in the form appearing in Exhibit 4-3 to this Agreement and (y) a legal opinion (i) from an international law firm advising HT Prostate, with a
recognized reputation and expertise in U.S. securities law and (ii) sent to the Issuer and judged reasonably satisfactory by the Issuer, pursuant to which either (1) HT Prostate (or, as the case may be, the Healthtronics Company in question) is

  

 4 

 not an affiliate (as this term is defined in Rule 405 under the Securities Act) of the Issuer and
the Escrowed Shares are not restricted securities (as this term is defined in Paragraph (a)(3) of Rule 144 under the Securities Act) or (2) the Escrowed Shares in question will be resold in a transaction that meets the conditions of said Rule
144 or (3) the Escrowed Shares are covered by a registration statement declared effective by the Securities and Exchange Commission. 
  

	•	The Provider agrees to immediately send to the Issuer a copy of the notice thus received. 

  

	•	If the Issuer agrees that the legal opinion mentioned above is reasonably satisfactory, the Provider may release the Escrowed Shares and transfer them in accordance with the
instruction of HT Prostate (or of the Healthtronics Company concerned). 

  
 The Escrowed Shares that are released from escrow pursuant to this Article 4-3 shall no longer be Escrowed Shares. 
  
 4-4 Transfer of the Escrowed Warrants to another Healthtronics Company 
  
 In accordance with the terms and conditions of the Warrants, HT Prostate may only transfer all or part of its Warrants to companies
controlled by HT Prostate, that control HT Prostate, or are controlled by the same company as HT Prostate as of the date of transfer; the notion of control being defined as directly or indirectly holding a majority of the voting rights (these
companies are collectively referred to as the “Healthtronics Companies”). The Healthtronics Companies that thus become Warrant holders are in turn prohibited from transferring their Warrants, except to HT Prostate Therapy Management
Company L.L.C. or other Healthtronics Companies. 
  
 Consequently, the Provider
may transfer all or part of the Escrowed Warrants only in accordance with the following provisions: 
  

	•	The Provider must have received a written notice from HT Prostate, in accordance with this Agreement, a copy of which must have been sent to the Issuer, containing (x) a written
instruction in the form shown in Exhibit 4-4 to this Agreement; (y) a certificate from HT Prostate in the form shown in Exhibit 4-5 certifying that (i) the company or companies to which HT Prostate desires to transfer the Escrowed
Warrants are Healthtronics Companies and (ii) the contemplated transfer does not violate any provision of the Securities Act, and (z) a commitment by the Healthtronics Company or Companies in question to comply with all provisions of this
Agreement, in accordance with the form shown in Exhibit 4-6. 

  

	•	The Provider agrees to immediately send to the Issuer a copy of the notice thus received. 

  

	•	The Provider may then transfer the Escrowed Bonds in accordance with the instruction from HT Prostate. 

  
 The Escrowed Warrants transferred to one or more Healthtronics Companies pursuant to this Article 4-4 shall continue to be Escrowed Warrants
and shall be recorded in an escrow account opened by the Provider in the name of their holder, and shall be subject to all the terms of this Agreement, by which said Healthtronics Company or Companies shall be bound. 
  

	V-	LIABILITY OF THE PROVIDER 

  
 5-1 The Provider shall have no liability or obligation other than those expressly provided for in this Agreement, to the exclusion of any other. In particular, the
Provider shall not be required to evaluate the merits of or the reasons for the instructions received pursuant to Article IV of this Agreement, and shall not act on instructions other than those provided for or made pursuant to this Agreement,
except in the event of a legal obligation or an obligation resulting from an enforceable judgment (such as attachment of securities), in which case it shall not be liable for having complied with such obligation. 
  

 5 

 In the event of ambiguity or uncertainty with respect to any notice, instruction or other communication received by the
Provider, the Provider may refrain from taking any action and request that the Issuer and HT Prostate clarify the instruction with a joint notice eliminating the ambiguity or uncertainty. 
  
 5-2 Except in cases of negligence, bad faith and/or intentional misconduct, neither the Provider nor its directors, employees or officers
shall be held liable for any act or omission under this Agreement and shall be indemnified against any claim, action, liability, procedure or judgment that may be incurred by them or filed against them and against any loss, cost, charge, liability
or expense incurred under this Agreement (including costs reasonably incurred in judicial proceedings). 
  
 5-3 The Provider shall not have to verify the identity or capacity of any person or company signing this Agreement or any instruction, notice or other communication received under this Agreement. 
  

	VI-	REMUNERATION OF THE PROVIDER AND MISCELLANEOUS FEES 

  
 6-1 Remuneration of the Provider 
  
 The Provider shall receive a remuneration for performing its duties under this Agreement, as set forth in detail in Exhibit 6-1 to this Agreement. This
remuneration shall be paid by the Issuer. 
  
 6-2 Reimbursement of Expenses

  
 At the Provider’s request and upon presentation of receipts, the
Issuer shall reimburse any expenses incurred by the Provider in performing its duties under this Agreement, including but not limited to the following: mandatory notices to the holders of Warrants and related mailing expenses, in addition to
expenses for publication, advertising, mailing and attorneys, as well as the taxes thereon. 
  

	VII-	FEES AND TAXES 

  
 All present and future fees and taxes applicable to the commissions provided for in Article VI above shall be paid by the Issuer. 
  

	VIII-	TERM OF THE AGREEMENT 

  
 This Agreement shall take effect on the date of first issue of the Warrants and shall remain in effect until the date on which (i) all the Escrowed Shares have been
released from escrow in accordance with the provisions of this Agreement, and (ii) all the Warrants have been released from escrow in accordance with the provisions of this Agreement and/or exercised and/or become null and void by expiration of
their validity date. At this date, the Provider shall be released from all obligations under this Agreement. 
  

	-	The Issuer and HT Prostate may release the Provider from all its duties under this Agreement at any time, by registered letter, return receipt requested, signed by the Issuer and HT
Prostate, sent at least one (1) month prior to the effective date of this termination. The Issuer and HT Prostate shall inform the Provider of the name of the Provider’s successor at least ten business days prior to the term of the notice.

  

	-	Similarly, the Provider may terminate this Agreement at any time, by registered letter, return receipt requested, sent to the Issuer and to HT Prostate, in which case the
termination will be not effective until the Issuer and HT Prostate have informed the Provider of the name of the Provider’s successor. The Issuer and HT Prostate agree to use their best efforts to designate said successor within one (1) month
of the termination letter sent by the Provider. 

  

 6 

	-	This Agreement shall be terminated by operation of law in the event that the Provider no longer services the shares issued by the Issuer. In this event, the Issuer and HT Prostate
agree to use their best efforts to appoint, as soon as possible, an agency to service the Issuer’s shares and to assume the duties conferred on the Provider under this Agreement. 

  
 It is expressly agreed that, during the notice period mentioned above, all the provisions of
this Agreement shall remain in full force and effect. 
  
 Once the Provider’s
successor has been appointed, the Provider shall immediately transfer the Escrowed Warrants and the Escrowed Shares to the accounts designated for this purpose by the successor. As soon as this transfer is accomplished, the Provider shall be
released of all obligations under this Agreement. 
  

	IX-	GOVERNING LAW – DISPUTES 

  
 This Agreement shall be governed by and construed in accordance with French law. 
  

In the event of a dispute arising under this Agreement or in connection herewith, the Parties shall endeavor to resolve the dispute amicably and in good faith.

  
 If they are unable to do so, and without prejudice to the provisions of the
Distribution Agreement regarding the resolution of disputes between the Issuer and HT Prostate under the Distribution Agreement, all disputes arising under or in connection with this Agreement shall be finally decided by arbitration administered in
accordance with the International Disputes Resolution Procedures of the American Arbitration Association and shall be governed by French law. The languages of the arbitration shall be French and English. The arbitration shall be held in New York.

  
 Notwithstanding any provision to the contrary in this Agreement, any Party may
request from any French court of competent jurisdiction the interim relief necessary to protect its interests. 
  

	X-	SUBSTITUTION 

  
 In the event of a change in the corporate name, legal status, merger or transfer, in whole or in part, of the activity of one of the parties, the performance of this Agreement shall continue on the same terms with the
new entity without discontinuity. 
  
 The Party concerned agrees to report such
change to the other Parties within a reasonable period after the change has occurred. 
  
 This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns, and in particular the Healthtronics Companies to which the Warrants have been transferred pursuant to Article 4-4 above.

  

	XI-	NOTICES 

  
 Any notice given in connection with this Agreement must be in writing and sent by registered mail, return receipt requested, or by fax, provided that a copy of the fax be sent by registered mail, return receipt
requested (no later than the first business day following the day on which the fax is sent); however, failure to send said confirmation by mail shall not call into question the validity of the notice given by fax. The notice shall be deemed received
by its addressee on the date of the acknowledgment of receipt or, in the case of a fax, on the date on which the fax is received. 
  

 7 

 Notices shall be validly sent to the persons and addresses appearing in Exhibit 11-1 to this Agreement, or to any
other person or address that has been reported pursuant to this Article by the party concerned to the other two parties. 
  
 Any change thus reported shall result in a new Exhibit 11-1, which shall replace the current one. 
  
 A copy of any notice sent by or to the Provider must be sent to the other parties to this Agreement. 
  

	XII-	VALIDITY OF THE AGREEMENT – ADDENDUMS 

  
 12-1 In the event that any provision of this Agreement turns out to be null and void in whole or in part, this shall not affect the validity of the rest of the Agreement.
In this event, the Parties will replace the unlawful provision, if possible, with a lawful provision that is in keeping with the spirit and purpose of the unlawful provision. 
  
 12-2 Except as otherwise provided herein, this Agreement shall only be amended by an addendum signed by all Parties. 
  
 Signed in three (3) original counterparts. 
  

					
	 For EDAP TMS
	 	For HT Prostate	 	Pour Euro Emetteurs Finance
	 Lyon, [            ] 2005
  

	 	 [Paris], [            ] 2005
  

	 	 Paris, [            ] 2005
  

	 Philippe CHAUVEAU
	 	Argil J. WHEELOCK	 	Jean-François MARTINVILLE
	 Chairman & CEO
	 	Chief Executive Officer	 	Chairman & CEO

  

 8 

 EXHIBIT A 
  
 RESOLUTIONS REGARDING THE ISSUANCE OF THE WARRANTS– 
 WARRANT TERMS AND CONDITIONS 
  
 Certified Copy of the 1st Resolution 
 of the Special Meeting of the Shareholders of EDAP TMS dated January 29, 2004 

 Draft of the Terms and Conditions of the Warrants that will be issued by the 
 Board of Directors of EDAP TMS with the authorization of the special shareholders’ 
 meeting on January 29, 2004 
  
 These terms and conditions are only a draft and shall be replaced and superseded by the final resolution of EDAP TMS’s board of directors that will issue the
Warrants, and EDAP TMS agrees to inform the Provider and HT Prostate of this resolution upon its adoption. 
  

					
	1.	 	Number of Warrants	 	1,000,000 (one million) autonomous warrants of the Company, each entitling the holder to subscribe to one share of the Company (the “Warrants”), and divided into seven different
categories:
			
	 	 	 	 	 •      200,000 A Warrants

	 	 	 	 	 •      200,000 B Warrants

	 	 	 	 	 •      100,000 C Warrants

	 	 	 	 	 •      100,000 D Warrants

	 	 	 	 	 •      100,000 E Warrants

	 	 	 	 	 •      100,000 F Warrants

	 	 	 	 	 •      200,000 G Warrants

			
	2.	 	Warrant Holders	 	The Warrants are reserved for HT Prostate Therapy Management Company L.L.C.
			
	3.	 	Subscription Price	 	The issue is free of charge.
			
	4.	 	Issue Date	 	[January 28] 2005.
			
	5.	 	Exercise Dates	 	Pursuant to the Distribution Agreement and the commercial agreement entered into between the Company, its subsidiaries and HT Prostate Therapy Management Company L.L.C., the Warrants may be
exercised on the following dates (“milestones”), linked to the process of HT Prostate Therapy Management Company L.L.C.’s obtaining a “Pre-Market Approval” (“PMA”) for Ablatherm from the Food and Drug
Administration (“FDA”) and the acquisition by HT Prostate Therapy Management Company L.L.C. or any other Company (as defined in Paragraph 10 below) of lithotripters:
			
	 	 	 	 	 •      the A Warrants shall be exercisable, as part of HT Prostate Therapy Management Company
L.L.C.’s clinical testing of Ablatherm, as of the date of the final follow-up of the final patient at the Ablatherm test clinic conducted by HT Prostate Therapy Management Company L.L.C., under an “IDE” (“Investigational Device
Exemption”). The “final follow-up of the final patient” shall mean the final evaluation time as defined in the test protocol in question for constitution of the clinical dossier for the initial PMA submission;

	 	 	 	 	 •      the B Warrants shall be exercisable as of the submission by HT Prostate Therapy Management
Company L.L.C. to the FDA of a Pre-Market Approval Application regarding Ablatherm, complete, in final form and in accordance with FDA requirements;

	 	 	 	 	 •      the C Warrants shall be exercisable upon their issuance, [HT Prostate Therapy Management Company
L.L.C.] [or, as applicable: [·] [name of the Healthtronics Company making the purchase], having purchased
from the Company and its subsidiaries [indicate, as applicable, the name of the Company’s subsidiary or subsidiaries from which HT Prostate has purchased lithotripters in 2004 ] [more than] four (4) lithotripters in
2004,

					
	 	 	 	 	 •      the D Warrants shall be exercisable as of January 1, 2006 in the event that HT Prostate Therapy
Management Company L.L.C. or any other Healthtronics Company purchases at least four (4) lithotripters from the Company or its subsidiaries in 2005,

	 	 	 	 	 •      the E Warrants shall be exercisable as of January 1, 2007 in the event that HT Prostate Therapy
Management Company L.L.C. or any other Healthtronics Company purchases at least four (4) lithotripters from the from the Company or its subsidiaries in 2006,

	 	 	 	 	 •      the F Warrants shall be exercisable as of January 1, 2008 in the event that HT Prostate Therapy
Management Company L.L.C. or any other Healthtronics Company purchases at least four (4) lithotripters from the from the Company or its subsidiaries in 2007,

	 	 	 	 	 •      the G Warrants shall be exercisable as of receipt by HT Prostate Therapy Management Company
L.L.C. of the written confirmation by the FDA that final Pre-Market Approval has been granted for l’Ablatherm.

			
	 	 	 	 	In any event, and pursuant to Article L.228-95 of the French Commercial Code, the Warrants shall be exercised within five (5) years of their issue date, i.e., no later than [January 28] 2010.
Any Warrants that have not been exercised as of this date shall be null and void and shall lose their validity.
			
	6.	 	Suspension of Exercise	 	In the event of a capital increase, merger or spin-off of the Company, or any other financial transaction by the Company involving preemptive rights on the part of the shareholders, the
Company’s board of directors may suspend the right to exercise the Warrants for a maximum period of three months, subject to the rules regarding the Warrant holders’ reservation of rights. In this case, the Company shall inform the Warrant
holders in advance, indicating the date on which exercise of the Warrants will be suspended and the date on which it will begin again.
			
	7.	 	Exercise of Subscription Right	 	HT Prostate Therapy Management Company L.L.C. shall be entitled to subscribe at the rate of 1 (one) share with a par value of €0.13 each to be issued by the Company, for 1 (one) Warrant
exercised, at the price of U.S.$ 1.50 (one dollar fifty), or its equivalent in euros on the subscription date, per share.
			
	 	 	 	 	The subscriptions of Company shares to which the Warrants entitle their holders when they are exercised shall be received at Company headquarters. The subscription price mentioned above must
be paid in full to the Company in cash.
			
	8.	 	Dividend Entitlement of New Shares	 	The new shares issued as a result of the exercise of Warrants shall be subject to all the provisions of the Company’s bylaws and shall be entitled to dividends as of the first day of the
fiscal year during which they are subscribed to. They shall entitle their holders, for the fiscal year begun on this date and for subsequent fiscal years, to the same dividend (on the basis of the same par value) as the one that may be distributed
to the other shares having the same dividend rights.
			
	 	 	 	 	Therefore, they shall be completely comparable to said shares after the dividend is paid for the preceding fiscal year, or if it is not distributed, after the annual meeting held to approve
the financial statements for that fiscal year.

					
			
	9.	 	Protection of the Warrant Holders’ Rights	 	 
			
	 	 	 	 	Pursuant to Article L.225-153 of the French Commercial Code, as long as there are valid, unexercised Warrants:
			
	 	 	 	 	 •      the Company shall not redeem its capital and shall not modify the distribution of profits; however,
the Company may create non-voting shares that are entitled to preferred dividends provided that the rights of the Warrant holders are reserved on the terms established in Article L.225-154 of the French Commercial Code;

			
	 	 	 	 	 •      in the event of a capital decrease motivated by losses and carried out by decreasing the par value
or the number of shares, the rights of the Warrant holders shall be reduced accordingly, as if said Warrant holders had been shareholders as of the date on which the Warrants were issued.

			
	 	 	 	 	Moreover, in accordance with Article L.225-154 of the French Commercial Code, as long as there are valid, unexercised Warrants, the Company shall not issue shares to be subscribed for in cash
reserved for shareholders or issue other securities to which the shareholders have preemptive rights, or increase the capital from reserves, profits or issue premiums, or distribute reserves in cash or in portfolio securities, except on the
condition that the rights of Warrant holders who exercise their Warrants are preserved.
			
	 	 	 	 	To this end, the Company shall, on the terms established in Articles 171 to 174 of Decree No. 67-236 of March 23, 1967, allow the holders of Warrants who exercise the subscription right attached
to these Warrants, as applicable, to subscribe as of right to new shares or securities or to obtain new shares free of charge or to receive cash or securities similar to securities distributed in the same quantities or proportions as well as on the
same terms, except with respect to dividend rights, as if they had been shareholders at the time of said issues, incorporations or distributions; or, in the cases provided for by law, allow them to exercise their subscription right, if they desire
to participate in the transaction.
			
	 	 	 	 	For any issue of securities or other transaction with respect to which shareholders have preemptive rights, the Company must give prior notice thereof to the Warrant holders (in writing,
indicating the information provided for in Article 174-2 of Decree No. 67-236 of March 23, 1967).
			
	 	 	 	 	In the event that the Company is absorbed by another company, merged with one or more other companies into a new company or is spun off by way of contribution to new or existing companies, the
holders of Warrants may subscribe to the shares of the new company or absorbing company or the companies to which it is spun off on the same terms as those provided for originally, except that the adjustments made necessary by the merger or spin-off
pursuant to Article L.225-156 of the French Commercial Code shall be made.
			
	 	 	 	 	When, because of the one of the transactions mentioned above, the holders of Warrants who present their securities are entitled to a number of shares that includes a fraction resulting in an odd
lot, this odd lot will be paid to them in cash. Pursuant to Article 174-5 of Decree No. 67-236 of March 23, 1967, this payment shall be equal to the product of the fractional share forming the odd lot multiplied by the value of the share calculated
on the basis of the Company’s shareholders’ equity.
			
	10.	 	Restrictions on Transfer	 	The Warrants shall be transferred by HT Prostate Therapy Management Company L.L.C. only to companies controlled by HT Prostate Therapy Management Company L.L.C., that control HT Prostate Therapy
Management Company L.L.C., or that are controlled by the same company as HT Prostate Therapy Management Company L.L.C., and the notion of control shall be defined as directly or indirectly holding a majority of the

			
	 	 	voting rights (these companies are referred to collectively as the “Healthtronics Companies”). The Healthtronics Companies that thus become Warrant holders shall be prohibited from
transferring their Warrants except to HT Prostate Therapy Management Company L.L.C. or to other Healthtronics Companies.

  
 Moreover, in order to comply with
American law governing securities, the Warrants and the shares that will be issued upon their exercise shall be placed in escrow, initially with Euro Emetteurs Finance, which is already servicing the Company’s securities, on the terms of this
Securities Service and Escrow Agreement. 

 EXHIBIT B 
  
 BANK DETAILS 
  
 THE COMPANY’S ACCOUNT INFORMATION 
  
 All funds received by the Provider under this Agreement and intended for the Issuer shall be credited to the Issuer’s account as follows:  
  

			
	Accountholder:
                            EDAP TMS
	Address:	 	c/o Technomed Medical Systems - Parc d’activité de la Poudrette Lamartine, 4, rue du Dauphiné, 69120 Vaulx-en-Velin

  

							
	 Bank Code
	 	Branch Sort Code	 	Account No.	 	Rib Code
				
	 30007
	 	53029	 	************	 	91

  

			
	Name of the Bank:	 	Natexis Banques Populaires
	Address:	 	19 place Tolozan, 69209 Lyon Cedex 01
		
	SWIFT Reference:	 	CCBPFRPP925
		
	Contact Person:	 	M. Didier Berger

  
 THE PROVIDER’S
ACCOUNT INFORMATION 
  
 For the receipt of funds linked to
billing: 
  

			
	Accountholder:	 	Euro Emetteurs Finance
	Address:	 	48 boulevard des Batignolles
	 	 	75850 Paris Cedex 17

  

							
	Bank Code	 	Branch Sort Code	 	Account Number	 	Rib Code
				
	30002	 	00570	 	***********	 	09

  

			
	Name of the Bank:	 	Crédit Lyonnais

 EXHIBIT 3-1 
  
 FORM OF INSTRUCTION TO OPEN THE WARRANT EXERCISE PERIOD 
  
 Instruction to Open the Warrant Exercise Period 
  
 Euro Emetteurs Finances 
 48 Boulevard des
Batignolles 
 75850 Paris Cedex 17, France 
 Tel:
(33)(0)1.55.30.59.48 / Fax: (33)(0)1.55.30.59.50 
  
 Attention: Mrs. Edith
Martinot (Customer Service) 
  
 Dear Mrs. Martinot: 
  
 We refer to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”). 
  
 Pursuant to Article III of the Securities Service and Escrow Agreement, we hereby inform you that Category [            ] of the Warrants has become exercisable as of
[                    ], and that the [            ] [indicate the
number] Warrants in this category may be exercised by their holder(s) until their Expiration Date, i.e., until [            ]. 
  
 Sincerely, 
  

			
	EDAP TMS
	  

	By:	 	[                                   
 ]

  
 cc: HT Prostate Therapy
Management Company L.L.C. 

 EXHIBIT 3-2 
  
 FORM OF WARRANT EXERCISE NOTICE 
  
 Warrant Exercise Notice 
  
 Euro Emetteurs Finances 
 48 Boulevard des
Batignolles 
 75850 Paris Cedex 17, France 
 Tel:
(33)(0)1.55.30.59.48 / Fax: (33)(0)1.55.30.59.50 
  
 Attention: Mrs. Edith
Martinot (Customer Service) 
  
 Dear Mrs. Martinot: 
  
 We refer to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”) and to the instruction to open the exercise period for Warrants in Category [            ] that was sent to you by EDAP TMS
on [            ]. 
  
 Pursuant to Article III of the Securities Service and Escrow Agreement, we hereby inform you that we have exercised [            ] Warrants in
Category [            ], on [            ]. Enclosed please find a certificate from EDAP TMS that the exercise
price for these Warrants has been paid. 
  
 We hereby request that
in your capacity as accountholder for the Warrants and shares issued by EDAP TMS, you prepare all the paperwork for this exercise, including recording the Underlying Shares resulting from this exercise in a new account in our name. 
  

			
	Sincerely,
	
	[HT Prostate Therapy Management Company L.L.C.]
	[or: any other Healthtronics Company that holds Warrants]
	
	  

	By:	 	[                                      
  ]

  
 Encl.: Certificate from EDAP TMS
(payment of the exercise price for the Warrants) 
  
 cc: EDAP TMS 

 EXHIBIT 3-3 
  
 FORM OF CERTIFICATE FROM EDAP TMS 
 (PAYMENT OF THE EXERCISE PRICE FOR THE WARRANTS) 
  
 Certificate from EDAP TMS (payment of the exercise price for the Warrants) 
  
 EDAP TMS, a French corporation with capital of €[1,087,166.73], having its principal place of business at Parc d’activité La Poudrette
Lamartine, 4, rue du Dauphiné, 69120 Vaulx-en-Velin (France), recorded in the Commercial Register under the number Lyon B 316 488 204 (the “Issuer”) certifies: 
  

	 	•	that it has received the sum of [                    ], representing the
entirety of the payments in cash made by [HT Prostate Therapy Management Company L.L.C.] [or:any Healthtronics Company that holds Warrants] in exchange for the exercise of
[            ] Warrants in Category [            ]; 

  

	 	•	that the result of the payment of this exercise price is that [            ] new shares of the Issuer, with a par
value of € [0.13] each, have been subscribed to by [HT Prostate Therapy Management Company L.L.C.] [or:the Healthtronics Company holding the exercised Warrants]. 

 

			
	Done in [            ], on
[                ]
		
	By	 	[                            ], duly
authorized
	  

 EXHIBIT 4-3 
  
 FORM OF INSTRUCTION FOR THE RELEASE OF ESCROWED SHARES 
  
 Instruction for the Release of Escrowed Shares 
  
 Euro Emetteurs Finances 
 48 Boulevard des
Batignolles 
 75850 Paris Cedex 17, France 
 Tel:
(33)(0)1.55.30.59.48 / Fax: (33)(0)1.55.30.59.50 
  
 Attention: Mrs. Edith
Martinot (Customer Service) 
  
 Dear Mrs. Martinot: 
  
 We refer to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”). 
  
 Pursuant to Article 4-3 of the Securities Service and Escrow Agreement, we hereby request that you release [            ] Escrowed Shares appearing in the Escrow Account
[            ] [indicate the identification number], to
[                    ] [identify the assignee], in an escrow account opened for this purpose by the Provider. 
  
 Pursuant to Article 4-3 of the Securities Service and Escrow Agreement,
enclosed please find a copy of the legal opinion issued by the law firm of [                    ] [name and address of the law
firm] sent to EDAP TMS. 
  
 Please send this instruction
to EDAP TMS, and if EDAP TMS does not object to it within 5 business days of receipt, please release the securities mentioned above and make the relevant entries in your records. 
  

			
	Sincerely,
	
	[HT Prostate Therapy Management Company L.L.C.]
	  

	By:	 	[                                      
  ]

  
 Encl.: Legal opinion from the
law firm of [                    ] 
  
 cc: EDAP TMS 

 EXHIBIT 4-4 
  
 FORM OF INSTRUCTION FOR THE TRANSFER OF ESCROWED WARRANTS 
  
 Instruction for the Transfer of Escrowed Warrants 
  
 Euro Emetteurs Finances 
 48 Boulevard des Batignolles 
 75850 Paris Cedex 17, France 
 Tel: (33)(0)1.55.30.59.48 / Fax: (33)(0)1.55.30.59.50 
  
 Attention: Mrs. Edith Martinot (Customer Service) 
  
 Dear Mrs. Martinot:

  
 We refer to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”). 
  
 Pursuant to Article 4-4 of the Securities Service and Escrow Agreement, please transfer [            ] [number] Escrowed Warrants (in Category
[            ]) to [                    ] [indicate the Healthtronics
Company] in account [            ] [[in the event of transfer to more than one Healthtronics Company] and
[            ] Escrowed Warrants (in Category [            ]) to
[                    ] in account
[                    ].] 
  
 Pursuant to Article 4-4 of the Securities Service and Escrow Agreement, enclosed please find a copy of the certificate that the above-mentioned company or
companies [is a Healthtronics Company] [are Healthtronics Companies]. 
  
 Please transmit this instruction to EDAP TMS, and [if EDAP TMS does not object to it within 5 business days of receipt] please transfer the Escrowed Warrants mentioned above and make the relevant entries in your records. 
  

			
	Sincerely,
	
	[HT Prostate Therapy Management Company L.L.C.]
	
	

	By:	 	[                                      
  ]

  
 Encl.: Certificate from [HT
Prostate Therapy Management Company] 
  
 cc: EDAP TMS 

 EXHIBIT 4-5 
  
 FORM OF CERTIFICATE OF HT PROSTATE 
  
 Certificate 
  
 Reference is made to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”), 
  
 HT
Prostate Therapy Management Company L.L.C., a limited liability company governed by the laws of the State of Delaware (United States), having its principal place of business at
[                                ] (United States), represented by
[                    ] (name),
[                    ] (capacity) certifies that
[                    ] [indicate the Healthtronics Company to which the Warrants are to be transferred] is as of the date
hereof, and will remain as of the date on which the Warrants are transferred to it, a Healthtronics Company within the meaning of the Securities Service and Escrow Agreement. 
  

			
	Done in [            ], on
[            ]
		
	By	 	[                            ], duly
authorized

 EXHIBIT 4-6 
  
 FORM OF AGREEMENT OF HEALTHTRONICS COMPANIES 
  
 Agreement pursuant to the Securities Service and Escrow Agreement 
  
 Reference is made to the securities service and escrow agreement dated
[                    ] 2005, entered into by and among Euro Emetteurs Finances, EDAP TMS and HT Prostate Therapy Management Company L.L.C.
(the “Securities Service and Escrow Agreement”). 
  
 Pursuant to Article
4-4 of the Securities Service and Escrow Agreement, Warrants have been transferred today to [                    ] [indicate the
Healthtronics Company to which the Warrants are transferred] , a [limited liability] company governed by the laws of the State of
[                    ](United States), having its principal place of business at
[                                ] (United States). 
  
 Therefore, pursuant to the Article mentioned above,
[                    ] [indicate the name of the Healthtronics Company to which the Warrants are transferred], represented by
[                    ] (name),
[                    ] (capacity) hereby agrees to comply with all of the provisions of the Securities Service and Escrow
Agreement, to which it is now a party just as the parties that initially entered into the Agreement. 
  

			
	 Done in [            ], on
[            ]

		
	 By
	 	 [                            ], duly authorized

 EXHIBIT 6-1 
  
 RATE SHEET 
  
 This exhibit sets forth the terms of remuneration of the obligations performed by the Provider under this Agreement. 
  
 The amounts indicated are all pre-tax amounts. 
  
 Actual costs (document printing costs, costs of legal announcements, publications, postage,
etc.) shall be allocated pro rata. 
  
 1- HANDLING OF WARRANT EXERCISE NOTICES

  
 A fee of €100 per file shall be applied to any warrant
exercise notice. 
  
 This will be billed at the beginning of each calendar
year, in arrears, on the basis of the exercises handled during the course of the past year. 
  
 2 – SERVICING OF THE WARRANTS 
  
 This service will be remunerated with an annual lump sum of €300. 
  
 This commission will be billed at the beginning of each calendar year for the fiscal year in course. For the first year, it will be pro rated from the date the services begin until December 31, 2005.

 EXHIBIT 11-1 
  
 NOTICES 
  
 To the Issuer: 
  
 EDAP TMS 
 Parc d’activité la Poudrette Lamartine 
 4 rue du Dauphiné 
 69120 Vaulx-en-Velin, France 
 Attn : Blandine Confort (Responsable Juridique) 
  
 Telephone: (+33) (0)4 72 15 31 72 
 Fax: (+33) (0)4 72 15 31 51 
 E-mail: BConfort@edap-tms.com 
  
 To HT Prostate: 
  
 HT Prostate
Therapy Management Company, L.L.C. 
 1841 West Oak Parkway, Suite A 
 Marietta, GA 30062, United States 
 Attn: Ted Biderman (General Counsel) 
  
 Telephone: (+1)-770-419-0691 
 Fax:
(+1)-770-419-9490 
 E-mail: ted.biderman@healthtronics.com 
  
 To the Provider: 
  
 EURO EMETTEURS FINANCE 
 48 Boulevard des Batignolles 
 75850 Paris Cedex 17, France 
 Attn: Edith Martinot (Responsable Clientèle) 
  
 Telephone: (+33) (0)1.55.30.59.48. 
 Fax: (+33) (0)1.55.30.59.50 
 E-mail: edith.martinot@eef.frCredit Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 U.S. $750,000,000 
  
 CREDIT AGREEMENT 
  
 Dated as of August 30, 2004 
  
 among 
  
 THE GAP, INC. 
  
 as Borrower, 
  
 THE SUBSIDIARIES OF THE BORROWER NAMED HEREIN, 
  
 as Subsidiary Borrowers, 
  
 THE SUBSIDIARIES OF THE BORROWER NAMED HEREIN, 
  
 as LC Subsidiaries, 
  
 THE BANKS AND FINANCIAL INSTITUTIONS NAMED HEREIN, 
  
 as Lenders, 
  
 THE BANKS NAMED HEREIN 
  
 as Issuing Banks, 
  
 CITIGROUP GLOBAL MARKETS INC., 
  
 and 
  
 BANC OF AMERICA SECURITIES LLC 
  
 as Joint Lead Arrangers, 
  
 BANK OF AMERICA, N.A., 
  
 HSBC BANK USA, NATIONAL ASSOCIATION 
  
 and 
  
 JPMORGAN CHASE BANK

  
 as Co-Syndication Agents, 
  
 and 
  
 CITICORP USA, INC., 
  
 as Agent 
  
 for the Issuing Banks and the Lenders from time to time party hereto 

 TABLE OF CONTENTS 
  

			
	 	  	PAGE

	 ARTICLE I
 DEFINITIONS AND ACCOUNTING TERMS
	  	 
	  
		
	 SECTION 1.01 Certain Defined Terms
	  	1
		
	 SECTION 1.02 Computation of Time Periods
	  	18
		
	 SECTION 1.03 Accounting Terms
	  	18
		
	 ARTICLE II
 AMOUNTS AND TERMS OF THE ADVANCES
	  	 
	  
		
	 SECTION 2.01 The Advances
	  	19
		
	 SECTION 2.02 Making the Advances
	  	19
		
	 SECTION 2.03 Fees
	  	22
		
	 SECTION 2.04 Reduction and Increase of the Commitments; Reduction and Increase of the Swing Line Commitment; Additional Issuing
Banks
	  	23
		
	 SECTION 2.05 Repayment of Advances
	  	26
		
	 SECTION 2.06 Interest on Advances
	  	26
		
	 SECTION 2.07 Additional Interest on Eurodollar Rate Advances
	  	27
		
	 SECTION 2.08 Interest Rate Determination
	  	27
		
	 SECTION 2.09 Voluntary Conversion of Advances
	  	29
		
	 SECTION 2.10 Prepayments of Advances
	  	29
		
	 SECTION 2.11 Increased Costs
	  	29
		
	 SECTION 2.12 Illegality
	  	30
		
	 SECTION 2.13 Subsidiary Borrowers
	  	31

  

			
	 ARTICLE III
 AMOUNT AND TERMS OF LETTERS OF CREDIT AND PARTICIPATIONS THEREIN
	  	 
	  
		
	 SECTION 3.01 Letters of Credit
	  	31
		
	 SECTION 3.02 Limitation on the Issuance of Letters of Credit Denominated in Alternative Currencies
	  	32
		
	 SECTION 3.03 Issuing the Letters of Credit
	  	32
		
	 SECTION 3.04 Reimbursement Obligations
	  	33
		
	 SECTION 3.05 Participations Purchased by the Lenders
	  	33
		
	 SECTION 3.06 Letter of Credit Fees
	  	34
		
	 SECTION 3.07 Indemnification; Nature of the Issuing Banks’ Duties
	  	35
		
	 SECTION 3.08 Increased Costs
	  	36
		
	 SECTION 3.09 Uniform Customs and Practice
	  	37
		
	 SECTION 3.10 Reductions and Increases in Issuing Commitment
	  	37
		
	 SECTION 3.11 Existing Letters of Credit
	  	38
		
	 SECTION 3.12 Currency Provisions
	  	38
		
	 SECTION 3.13 Dollar Payment Obligation
	  	39
		
	 SECTION 3.14 Applications; Survival of Provisions; Cash Collateral
	  	40
		
	 SECTION 3.15 LC Subsidiaries
	  	40
		
	 ARTICLE IV
 PAYMENTS, TAXES, EXTENSIONS, ETC.
	  	 
	  
		
	 SECTION 4.01 Payments and Computations
	  	40
		
	 SECTION 4.02 Taxes
	  	42
		
	 SECTION 4.03 Sharing of Payments, Etc.
	  	46
		
	 SECTION 4.04 Evidence of Debt/Borrowings
	  	46
		
	 SECTION 4.05 Borrower Guaranty
	  	47

  

			
	 ARTICLE V
 CONDITIONS OF LENDING
	  	 
	  
		
	 SECTION 5.01 Conditions Precedent to Effectiveness of this Agreement
	  	49
		
	 SECTION 5.02 Conditions Precedent to Each Advance/Issuance
	  	51
		
	 ARTICLE VI
 REPRESENTATIONS AND WARRANTIES
	  	 
	  
		
	 SECTION 6.01 Representations and Warranties of the Borrower
	  	51
		
	 ARTICLE VII
 COVENANTS OF THE BORROWER
	  	 
	  
		
	 SECTION 7.01 Affirmative Covenants
	  	54
		
	 SECTION 7.02 Negative Covenants
	  	55
		
	 SECTION 7.03 Financial Covenants
	  	58
		
	 SECTION 7.04 Reporting Requirements
	  	58
		
	 ARTICLE VIII
 EVENTS OF DEFAULT
	  	 
	  
		
	 SECTION 8.01 Events of Default
	  	60
		
	 ARTICLE IX
 THE AGENT
	  	 
	  
		
	 SECTION 9.01 Authorization and Action
	  	62
		
	 SECTION 9.02 Agent’s Reliance, Etc.
	  	63
		
	 SECTION 9.03 CUSA, Citibank and Affiliates
	  	63
		
	 SECTION 9.04 Lender Credit Decision
	  	64

  

			
	 SECTION 9.05 Indemnification
	  	64
		
	 SECTION 9.06 Successor Agent
	  	65
		
	 SECTION 9.07 Co-Syndication Agents and Joint Lead Arrangers
	  	65
		
	 ARTICLE X
 MISCELLANEOUS
	  	 
	  
		
	 SECTION 10.01 Amendments, Etc.
	  	65
		
	 SECTION 10.02 Notices, Etc.
	  	66
		
	 SECTION 10.03 No Waiver; Remedies
	  	67
		
	 SECTION 10.04 Costs and Expenses
	  	68
		
	 SECTION 10.05 Right of Set-off
	  	69
		
	 SECTION 10.06 Binding Effect
	  	70
		
	 SECTION 10.07 Assignments and Participations
	  	70
		
	 SECTION 10.08 Severability of Provisions
	  	73
		
	 SECTION 10.09 Independence of Provisions
	  	73
		
	 SECTION 10.10 Confidentiality
	  	73
		
	 SECTION 10.11 Headings
	  	74
		
	 SECTION 10.12 Entire Agreement
	  	74
		
	 SECTION 10.13 Execution in Counterparts
	  	74
		
	 SECTION 10.14 Consent to Jurisdiction
	  	74
		
	 SECTION 10.15 GOVERNING LAW
	  	74
		
	 SECTION 10.16 WAIVER OF JURY TRIAL
	  	74

  

 SCHEDULES AND EXHIBITS 
  

					
	SCHEDULES	 	 	  	 
			
	Schedule I-A	 	-	  	Commitment Amounts
	Schedule I-B	 	-	  	List of Applicable Lending Offices
	Schedule II	 	-	  	Existing Liens
	Schedule III	 	-	  	Change of Control
	Schedule IV	 	-	  	Outstanding Balance of Existing Letters of Credit
	Schedule V	 	-	  	LC Subsidiaries
	Schedule VI	 	-	  	Subsidiary Borrowers
	Schedule VII	 	-	  	ERISA Matters
	Schedule VIII	 	-	  	Environmental Matters
	Schedule IX	 	-	  	Existing Debt
			
	EXHIBITS	 	 	  	 
			
	Exhibit A	 	-	  	Notice of Borrowing
	Exhibit B	 	-	  	Form of Promissory Note
	Exhibit C	 	-	  	Form of Assignment and Acceptance
	Exhibit D-1	 	-	  	Form of Opinion of In-House Counsel to the Loan Parties
	Exhibit D-2	 	-	  	Form of Corporate Opinion of Special New York Counsel to the Loan Parties
	Exhibit E	 	-	  	Form of Opinion of Special New York Counsel to the Agent
	Exhibit F	 	-	  	Form of Assumption Agreement

  

 CREDIT AGREEMENT, dated as of August 30, 2004 (this “Agreement”), among The Gap,
Inc., a Delaware corporation (the “Borrower”), the LC Subsidiaries (as hereinafter defined), the Subsidiary Borrowers (as hereinafter defined), the banks and financial institutions (the “Lenders”) listed on the
signature pages hereof, the Issuing Banks (as hereinafter defined), Citigroup Global Markets Inc. (“CGMI”) and Banc of America Securities LLC as joint lead arrangers and joint book managers (the “Joint Lead
Arrangers”), Bank of America, N.A., HSBC Bank USA, National Association and JPMorgan Chase Bank as co-syndication agents (the “Co-Syndication Agents”), and Citicorp USA, Inc. (“CUSA”), as agent (the
“Agent”) for the Lenders and the Issuing Banks hereunder. 
  
 PRELIMINARY STATEMENTS: 
  
 (1) The Borrower, certain of its subsidiaries, certain banks and financial institutions, and the Agent entered into a Credit Agreement dated as of June 25, 2003 (the “Existing Credit Agreement”).

  
 (2) The Borrower, the LC Subsidiaries, the
Subsidiary Borrowers, the Lenders, the Issuing Banks, the Joint Lead Arrangers, the Co-Syndication Agents and the Agent desire to enter into this Agreement to replace the Existing Credit Agreement and provide other financing facilities to the
Borrower, the LC Subsidiaries and the Subsidiary Borrowers as set forth below. 
  
 NOW THEREFORE, the Borrower, the LC Subsidiaries, the Subsidiary Borrowers, the Lenders, the Issuing Banks, the Joint Lead Arrangers, the Co-Syndication Agents and the Agent agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND ACCOUNTING TERMS 
  
 SECTION 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined): 
  
 “Advance” means an advance by Lender to the Borrower as part of a Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance, each of which shall be a “Type” of Advance;
and means a Swing Line Advance by a Swing Line Lender to a Subsidiary Borrower as the context may require. 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is
under common control with, such Person. 
  
 “Alternative Currency” means any lawful currency other than Dollars which is freely transferable and convertible into Dollars and which an Issuing Bank or Swing Line Lender can obtain in the ordinary course of its business.

  

 “Applicable Facility Fee” means, as of any date a percentage per annum
determined by reference to the applicable Performance Level in effect on such date as set forth below: 
  

																			
	 PERFORMANCE LEVEL

	  	LEVEL 1

	 	 	LEVEL 2

	 	 	LEVEL 3

	 	 	LEVEL 4

	 	 	LEVEL 5

	 	 	LEVEL 6

	 
	 Applicable Facility Fee
	  	.100	%	 	.125	%	 	.150	%	 	.200	%	 	.250	%	 	.375	%

  
 “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance, and such Lender’s Eurodollar Lending Office in the case of a Eurodollar
Rate Advance. 
  
 “Applicable Letter of
Credit Fee” means as of any date, a percentage per annum determined by reference to the applicable Performance Level in effect on such date as set forth below: 
  

																			
	 PERFORMANCE LEVEL

	  	LEVEL 1

	 	 	LEVEL 2

	 	 	LEVEL 3

	 	 	LEVEL 4

	 	 	LEVEL 5

	 	 	LEVEL 6

	 
	 Applicable Letter of Credit Fee
	  	.22500	%	 	.28125	%	 	.33750	%	 	.45000	%	 	.56250	%	 	.67500	%

  
 “Applicable Margin” means as of any date, a percentage per annum determined by reference to the applicable Performance Level in effect on such date as set forth below: 
  

																			
	 PERFORMANCE LEVEL

	  	LEVEL 1

	 	 	LEVEL 2

	 	 	LEVEL 3

	 	 	LEVEL 4

	 	 	LEVEL 5

	 	 	LEVEL 6

	 
	 Base Rate Applicable Margin
	  	.000	%	 	.000	%	 	.000	%	 	.000	%	 	.000	%	 	.125	%
	 Eurodollar Rate Applicable Margin
	  	.275	%	 	.375	%	 	.475	%	 	.550	%	 	.750	%	 	.875	%

  
 “Applicable Utilization Fee” means, as of any date a percentage per annum determined by reference to the applicable Performance Level in effect on such date as set forth below: 
  

																			
	 PERFORMANCE LEVEL

	  	LEVEL 1

	 	 	LEVEL 2

	 	 	LEVEL 3

	 	 	LEVEL 4

	 	 	LEVEL 5

	 	 	LEVEL 6

	 
	 Applicable Utilization Fee
	  	.125	%	 	.125	%	 	.125	%	 	.250	%	 	.250	%	 	.250	%

  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by the Agent (if such acceptance is required by this Agreement), in substantially the form of
Exhibit C. 
  
 “Assuming Lender”
means an Eligible Assignee acceptable to the Agent and each Issuing Bank and not previously a Lender that becomes a Lender hereunder pursuant to Section 2.04(c) and which has a Commitment of not less than $10,000,000. 
  

 2 

 “Assumption Agreement” means an agreement, substantially in the form of
Exhibit F, by which an Eligible Assignee agrees to become a Lender hereunder pursuant to Section 2.04(c), agreeing to be bound by all obligations of a Lender hereunder. 
  
 “Base Rate” means, for any period, a fluctuating interest rate per annum as shall be in
effect from time to time which rate per annum shall at all times be equal to the highest of: 
  
 (a) the rate of interest announced publicly by Citibank in New York, New York, from time to time, as Citibank’s base rate;

  
 (b) 1/2% per annum above the latest
three-week moving average of secondary market morning offering rates in the United States for three-month certificates of deposit of major United States money market banks, such three-week moving average being determined weekly on each Monday (or,
if any such date is not a Business Day, on the next succeeding Business Day) for the three-week period ending on the previous Friday by the Agent on the basis of such rates reported by certificate of deposit dealers to and published by the Federal
Reserve Bank of New York or, if such publication shall be suspended or terminated, on the basis of quotations for such rates received by the Agent from three New York certificate of deposit dealers of recognized standing selected by the Agent, in
either case adjusted to the nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to the next higher 1/4 of one percent; and 
  
 (c) 1/2% per annum above the Federal Funds Rate. 
  

“Base Rate Advance” means an Advance which bears interest as provided in Section 2.06(a). 
  
 “Borrowing” means a borrowing, consisting
of simultaneous Advances of the same Type made by each of the Lenders pursuant to Section 2.01(a). 
  
 “Business Day” means a day of the year on which banks are not required or authorized to close in New York City or San
Francisco, California and a day on which wire transfers may be effectuated among member banks of the Federal Reserve System through use of the fedwire funds transfer system and (i) if the applicable Business Day relates to any Eurodollar Rate
Advances, a day on which dealings are carried on in the London interbank market and (ii) if the applicable Business Day relates to any Swing Line Advance or Letter of Credit denominated in an Alternative Currency, a day on which commercial banks are
open for business in the country of issue of such Alternative Currency and on which dealings in such Alternative Currency are carried on by such commercial banks in such country of issue (if such Alternative Currency is other than the Euro) or if
such Alternative Currency is the Euro, a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System is in operation. 
  

“Capital Lease” of any Person means any lease of any property (whether real, personal or mixed) by such Person as
lessee, which lease should, in accordance with 

  

 3 

 
GAAP, be required to be accounted for as a capital lease on the balance sheet of such Person. 
  
 “Capital Lease Obligations” means the obligations of any Person to pay rent or other
amounts under a Capital Lease, the amount of which is required to be capitalized on the balance sheet of such Person in accordance with GAAP. 
  
 “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C.
§ 9601 et seq.), and any regulations promulgated thereunder. 
  
 “Change of Control” means the occurrence, after the date of this Agreement, of (i) any Person or two or more Persons
acting in concert acquiring beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Borrower (or other
securities convertible into such securities) representing 50% or more of the combined voting power of all securities of the Borrower entitled to vote in the election of directors; or (ii) during any period of up to 24 consecutive months, commencing
before or after the date of this Agreement, individuals who at the beginning of such 24-month period were directors of the Borrower ceasing for any reason to constitute a majority of the Board of Directors of the Borrower unless the Persons
replacing such individuals were nominated by the Board of Directors of the Borrower; or (iii) any Person or two or more Persons acting in concert acquiring by contract or otherwise, or entering into a contract or arrangement which upon consummation
will result in its or their acquisition of, control over securities of the Borrower (or other securities convertible into such securities) representing 50% or more of the combined voting power of all securities of the Borrower entitled to vote in
the election of directors; provided, that, the Person or group of Persons referred to in clauses (i) and (iii) of this definition of Change of Control shall not include any Person listed on Schedule III or any group of Persons in which
one or more of the Persons listed on Schedule III are members. 
  
 “Citibank” means Citibank, N.A. 
  
 “Commitment” means, as to each Lender, the amount set forth opposite such Lender’s name on Schedule I-A under the
caption “Commitment” or, if such Lender has entered into one or more Assignment and Acceptances, the amount set forth for such Lender with respect thereto in the Register maintained by the Agent pursuant to Section 10.07, in each
case as such amount may be reduced or increased pursuant to Section 2.04. 
  
 “Commitment Percentage” means, with respect to each Lender, the percentage which the then existing Commitment of such Lender is of the Commitments of all Lenders; provided, however, that
with respect to Letters of Credit which expire after the Termination Date has occurred, the Commitment Percentage of each Lender shall be the percentage which Lender’s Commitment immediately prior to the Termination Date is of the Commitment of
all Lenders immediately prior to the Termination Date. 
  

 4 

 “Confidential Information” means certain non-public, confidential or
proprietary information and material disclosed, from time to time, either orally, in writing, electronically or in some other form by the Borrower in connection with the Loan Documents. Confidential Information shall include, but not be limited to
non-public, confidential or proprietary information, trade secrets, know-how, inventions, techniques, processes, algorithms, software programs, documentation, screens, icons, schematics, software programs, source documents and other MIS related
information; contracts, customer lists, financial information, financial forecasts, sales and marketing plans and information and business plans, products and product designs; textile projections and results; ideas, designs and artwork for all types
of marketing, advertising, public relations and commerce (including ideas, designs and artwork related to the World Wide Web and any Web Site of the Borrower or any Subsidiary); textile designs; advertising, strategies, plans and results; sourcing
information; vendor lists, potential product labeling and marking ideas; all materials including, without limitation, documents, drawings, samples, sketches, designs, and any other information concerning, color palette and color standards furnished
to a Recipient by the Borrower or any Subsidiary; customer base(s); and other non-public information relating to the Borrower’s or any Subsidiary’s business. 
  
 “Consolidated” and any derivative thereof each means, with reference to the accounts or
financial reports of any Person, the consolidated accounts or financial reports of such Person and each Subsidiary of such Person determined in accordance with GAAP, including principles of consolidation, consistent with those applied in the
preparation of the Consolidated financial statements of the Borrower referred to in Section 6.01(f). 
  
 “Constitutive Documents” means, with respect to any Person, the certificate of incorporation or registration (including,
if applicable, certificate of change of name), articles of incorporation or association, memorandum of association, charter, bylaws, certificate of limited partnership, partnership agreement, trust agreement, joint venture agreement, certificate of
formation, articles of organization, limited liability company operating or members agreement, joint venture agreement or one or more similar agreements, instruments or documents constituting the organization or formation of such Person. 

 
 “Convert,” “Conversion”
and “Converted” each refers to a conversion of Advances of one Type into Advances of another Type pursuant to Section 2.08 or 2.09. 
  
 “Credit Extension” means each of the following: (a) an Advance made or to be made to the Borrower or any Subsidiary
Borrower; and (b) with respect to any Letter of Credit, any issuance, extension of the expiry date, or increase in the amount thereof, for the account of the Borrower or any LC Subsidiary. 
  
 “Debt” of any Person means, without
duplication, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price (excluding any deferred purchase price that constitutes an account payable incurred in the ordinary course of business) of property or services,
(ii) all obligations of such Person in connection with any agreement to purchase, redeem, exchange, convert or otherwise acquire for value any 

  

 5 

 
capital stock of such Person or to purchase, redeem or acquire for value any warrants, rights or options to acquire such capital stock, now or hereafter
outstanding, (iii) all obligations of such Person evidenced by bonds, notes, debentures, convertible debentures or other similar instruments, (iv) all indebtedness created or arising under any conditional sale or other title retention agreement
(other than under any such agreement which constitutes or creates an account payable incurred in the ordinary course of business) with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default, acceleration, or termination are limited to repossession or sale of such property), (v) all Capital Lease Obligations, (vi) obligations under direct or indirect guaranties in respect of, and obligations
(contingent or otherwise) to purchase or acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (i) through (v) above, (vii) all Debt referred to in clause
(i), (ii), (iii), (iv), (v), or (vi) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any lien, security interest or other charge or encumbrance upon or in property (including,
without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt and (viii) all mandatorily redeemable preferred stock of such Person, valued at the
applicable redemption price, plus accrued and unpaid dividends payable in respect of such redeemable preferred stock. 
  
 “Default” means an event which would constitute an Event of Default but for the requirement that notice be given or time
elapse, or both. 
  
 “Dollars,”
“dollars” and the sign “$” each means lawful money of the United States. 
  
 “Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic
Lending Office” opposite its name on Schedule I-B or in the Assignment and Acceptance pursuant to which it became Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Agent.

  
 “Domestic Subsidiary” means,
at any time, any of the direct or indirect Subsidiaries of the Borrower that is incorporated or organized under the laws of any state of the United States of America or the District of Columbia. 
  
 “EBITDA” means, for any period, Net Income
plus, to the extent deducted in determining such Net Income, the sum of (a) Interest Expense, (b) income tax expense, (c) depreciation expense and (d) amortization expense, all determined on a Consolidated basis for the Borrower and its Subsidiaries
in accordance with GAAP. 
  
 “Effective
Date” has the meaning specified in Section 5.01. 
  
 “Eligible Assignee” means (i) a commercial bank organized under the laws of the United States, or any State thereof, and having a combined capital and surplus of at least $100,000,000; (ii) a
commercial bank organized under the laws of any other country 

  

 6 

 
which is a member of the OECD, or a political subdivision of any such country, and having a combined capital and surplus of at least $100,000,000;
provided, that, such bank is acting through a branch or agency located in the United States; (iii) a Person that is primarily engaged in the business of commercial banking and that is (a) a Subsidiary of a Lender, (b) a Subsidiary of a
Person of which a Lender is a Subsidiary, or (c) a Person of which a Lender is a Subsidiary; (iv) any Lender or Affiliate of a Lender; (v) any other entity which is an “accredited investor” (as defined in Regulation D under the Securities
Act of 1933, as amended) which extends credit or buys loans as one of its businesses, including but not limited to, insurance companies, mutual funds and lease financing companies; and (vi) any other Person acceptable to the Issuing Banks and the
Agent and, provided no Event of Default is continuing, the Borrower. No Loan Party or any Affiliate thereof shall be an Eligible Assignee. 
  
 “Environmental Law” means any Requirement of Law relating to (a) the generation, use, handling, transportation,
treatment, storage, disposal, release or discharge of Hazardous Substances, (b) pollution or the protection of the environment, health, safety or natural resources or (c) occupational safety and health, industrial hygiene, land use or the protection
of human, plant or animal health or welfare, including, without limitation, CERCLA, in each case as amended from time to time, and including the regulations promulgated and the rulings issued from time to time thereunder. 
  
 “ERISA Affiliate” means any trade or
business (whether or not incorporated) which is a member of a controlled group of which the Borrower or any Subsidiary of the Borrower is a member or which is under common control with the Borrower or any Subsidiary of the Borrower within the
meaning of Section 414 of the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder. 
  
 “ERISA Event” means a reportable event with respect to a Plan within the meaning of §4043 of ERISA. 
  
 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board of Governors of the Federal
Reserve System, as in effect from time to time. 
  
 “Eurodollar Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I-B or in the Assignment and Acceptance pursuant
to which it became Lender (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Agent. 
  
 “Eurodollar Rate” means, for any Interest
Period for each Eurodollar Rate Advance comprising part of the same Borrowing, an interest rate per annum equal to (i) the rate per annum (rounded upwards, if necessary, to the nearest 1/16 of 1%) at which 

  

 7 

 
deposits in U.S. dollars appear on page 3750 (or any successor page thereto) of the Dow Jones Telerate Screen two Business Days before the first day of such
Interest Period and for a term comparable to such Interest Period, or (ii) if such rate does not so appear on the Dow Jones Telerate Screen on any date of determination, the rate per annum (rounded upwards, if necessary, to the nearest 1/16 of 1%)
at which deposits in U.S. dollars appear on the Reuters Screen LIBO Page two Business Days before the first day of such Interest Period and for a term comparable to such Interest Period, provided, however, that if the Reuters Screen
LIBO Page is being used to determine the Eurodollar Rate at any date of determination and more than one rate is specified thereon as the London interbank offered rate for deposits in U.S. dollars, the applicable rate shall be the average of all such
rates (rounded upward, if necessary, to the nearest whole multiple of 1/16 of 1% per annum), or (iii) if such rate does not so appear on either the Dow Jones Telerate Screen or Reuters Screen LIBO Page on any date of determination, then, the average
(rounded upward to the nearest whole multiple of 1/16 of 1% per annum) of the rates per annum at which deposits in Dollars are offered by the principal office of each of the Reference Banks in London, England, to prime banks in the London interbank
market at 11:00 A.M. (London time) two Business Days before the first day of such Interest Period in an amount substantially equal to such Reference Bank’s Eurodollar Rate Advance comprising part of such Borrowing and for a period equal to such
Interest Period. In such circumstances, the Eurodollar Rate for the Interest Period for each Eurodollar Rate Advance comprising part of the same Borrowing shall be determined by the Agent on the basis of the applicable rates given to and received by
the Agent from the Reference Banks two Business Days prior to the first day of such Interest Period, subject, however, to the provisions of Section 2.08. 
  
 “Eurodollar Rate Advance” means an Advance which bears interest as provided in Section
2.06(b). 
  
 “Eurodollar Rate Reserve
Percentage” of any Lender for any Interest Period for any Eurodollar Rate Advance means the reserve percentage applicable during such Interest Period (or if more than one such percentage shall be so applicable, the daily average of such
percentages for those days in such Interest Period during which any such percentage shall be so applicable) under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for such Lender with respect to liabilities or assets consisting of or including Eurocurrency Liabilities having a term
equal to such Interest Period. 
  
 “Events of Default” has the meaning specified in Section 8.01. 
  
 “Existing Credit Agreement” has the meaning specified in Preliminary Statement (1). 
  
 “Existing Letter of Credit” has the meaning
specified in Section 3.11. 
  

 8 

 “Federal Funds Rate” means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is
not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by
the Agent from three Federal funds brokers of recognized standing selected by it. 
  
 “Fiscal Quarter” means any quarter in any Fiscal Year, the duration of such quarter being defined in accordance with GAAP
applied consistently with that applied in the preparation of the Borrower’s financial statements referred to in Section 6.01(f). 
  
 “Fiscal Year” means a fiscal year of the Borrower and its Subsidiaries. 
  
 “Fixed Charge Coverage Ratio” means, for
any period, the ratio of (a) the amount equal to the sum of (i) Consolidated EBITDA and (ii) Lease Expense in each case for the Borrower and its Subsidiaries for such period, to (b) the sum of (i) Consolidated Interest Expense and (ii) Lease
Expense, in each case for the Borrower and its Subsidiaries for such period. 
  
 “Foreign Subsidiary” means, at any time, any direct or indirect Subsidiary of the Borrower that is not a Domestic Subsidiary. 
  
 “Funded Debt” means, as of any date of determination, all indebtedness (including Capital
Lease Obligations but excluding all accounts payable incurred in the ordinary course of business) of the Borrower and its Subsidiaries on a Consolidated basis that would (or would be required to) appear as liabilities for long-term Debt, short-term
Debt, current maturities of Debt, and other similar interest-bearing obligations on a Consolidated balance sheet of the Borrower and its Subsidiaries in accordance with GAAP. 
  
 “GAAP” means generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, applied on a basis consistent (except for changes concurred in by the Borrower’s independent public accountants) with the most recent audited consolidated financial
statements of the Borrower and its Subsidiaries delivered pursuant to Section 7.04. 
  
 “Governmental Authority” means any nation or government, any state, province, city, municipal entity or other political
subdivision thereof, and any governmental, executive, legislative, judicial, administrative or regulatory agency, department, authority, instrumentality, commission, board or similar body, whether federal, state, provincial, territorial, local or
foreign. 
  

 9 

 “Governmental Authorization” means any authorization, approval, consent,
franchise, license, covenant, order, ruling, permit, certification, exemption, notice, declaration or similar right, undertaking or other action of, to or by, or any filing, qualification or registration with, any Governmental Authority. 

 
 “Hazardous Substance” means (i) any
hazardous substance or toxic substance as such terms are presently defined or used in § 101(14) of CERCLA (42 U.S.C. § 9601(14)), in 33 U.S.C. § 1251 et. seq. (Clean Water Act), or 15 U.S.C. § 2601 et.
seq. (Toxic Substances Control Act) and (ii) as of any date of determination, any additional substances or materials which are hereafter incorporated in or added to the definition of “hazardous substance” or “toxic
substance” for purposes of CERCLA or any other applicable law. 
  
 “Hedge Agreements” means (a) any and all interest rate swaps, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions,
floor transactions, collar transactions, currency swaps, cross-currency rate swaps, currency options, spot contracts or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the
foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc., the International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such
agreement. 
  
 “Information
Memorandum” means the information memorandum dated August 2004 prepared in connection with this Agreement. 
  
 “Interest Expense” of any Person for any period means the aggregate amount of interest or fees paid, accrued or scheduled
to be paid or accrued in respect of any Debt (including the interest portion of rentals under Capital Leases) and all but the principal component of payments in respect of conditional sales, equipment trust or other title retention agreements paid,
accrued or scheduled to be paid or accrued by such Person during such period, net of interest income, determined in accordance with GAAP. 
  
 “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same Borrowing, the period commencing on
the date of such Type of Advance or the date of the Conversion of any Advance into such Type of an Advance and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, each subsequent period
commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each such Interest Period shall be 1, 2, 3, 6, 9 or, if
acceptable to the Majority Lenders, 12 months in the case of a Eurodollar Rate Advance, in each case as the Borrower may, upon notice received by the 

  

 10 

 
Agent not later than 12:00 noon (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided,
however, that: 
  
 (i) the Borrower may
not select any Interest Period which ends after the Termination Date; 
  
 (ii) Interest Periods commencing on the same date for Advances comprising part of the same Borrowing shall be of the same duration; 
  
 (iii) whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day,
the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, in the case of any Interest Period for a Eurodollar Rate Advance, that if such extension would cause the last day of such Interest Period
to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and 
  
 (iv) the Borrower may request in a Notice of Borrowing an Interest Period of 12 months for a Eurodollar Rate Advance and the Interest
Period for such Eurodollar Rate Advance shall be 12 months, if, and only if, the Agent determines a Eurodollar Rate for the tenor of such Interest Period and the Majority Lenders do not notify the Agent pursuant to Section 2.08(b) that the
Eurodollar Rate for such Interest Period will not adequately reflect the cost to the Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period; if both of the preceding conditions are not satisfied
with respect to such requested 12 month Interest Period, the duration of the requested Interest Period shall be the alternative specified in the Notice of Borrowing, or, if no alternative Interest Period is selected, 6 months. 
  
 “Investment” has the meaning specified
therefor in Section 7.02(c). 
  
 “Issue” means, with respect to any Letter of Credit, either to issue, or to extend the expiry of, or to renew, or to increase the amount of, such Letter of Credit, and the term “Issued” or
“Issuance” shall have corresponding meanings. 
  
 “Issuing Bank” means Citibank, Bank of America, N.A., HSBC Bank USA, National Association and JPMorgan Chase Bank, or any other Lender which agrees to become, and is designated as an Issuing Bank
under Section 2.04(d) or any Affiliate thereof as agreed to from time to time by the Borrower and such Issuing Bank, that may from time to time Issue Letters of Credit for the account of the Borrower or for the account of any LC Subsidiary.

  
 “Issuing Commitment” means,
as to any Issuing Bank, the amount set forth opposite such Issuing Bank’s name on Schedule I-A under the caption Issuing Commitment, as such amount may be reduced or increased pursuant to Section 2.04 or 3.10. 
  
 “L/C Collateral Account” has the meaning
given in Section 8.01. 
  

 11 

 “LC Subsidiary” means, as of the date hereof, the Subsidiaries of the
Borrower listed on Schedule V and, after the date hereof, any other Subsidiary of the Borrower that may from time to time become a party hereto (with respect to Letters of Credit only) and in connection therewith such other Subsidiary shall execute
such documents as are reasonably requested by the Agent to evidence its agreement to be bound hereunder as an LC Subsidiary, and for whose account an Issuing Bank may from time to time Issue Letters of Credit. 
  
 “Lease Expense” means, with respect to any
Person, for any period for such Person and its subsidiaries on a Consolidated basis, lease and rental expense accrued during such period under all leases and rental agreements, other than Capital Leases and leases of personal property, determined in
conformity with GAAP. 
  
 “Lender
Party” means any Lender and any Issuing Bank. 
  
 “Lenders” means the Lenders listed on the signature pages hereof as Lenders and as Swing Line Lenders, as the context may require, and each Eligible Assignee that shall become a party hereto pursuant to Section 10.07.

  
 “Letter of Credit” means
either a Trade Letter of Credit or a Standby Letter of Credit which in either case is in form satisfactory to the respective Issuing Bank, which is at any time Issued by such Issuing Bank pursuant to Article III, in each case as amended,
supplemented or otherwise modified from time to time. 
  
 “Letter of Credit Liability” means, as of any date of determination, all then existing liabilities of the Borrower and the LC Subsidiaries to the Issuing Banks in respect of the Letters of Credit Issued for the
Borrower’s account and for the account of the LC Subsidiaries, whether such liability is contingent or fixed, and shall, in each case, consist of the sum of (i) the aggregate maximum amount (the determination of such maximum amount to assume
compliance with all conditions for drawing) then available to be drawn under such Letters of Credit (including, without limitation, amounts available under such Letters of Credit for which a draft has been presented but not yet honored) and (ii) the
aggregate amount which has then been paid by, and not been reimbursed to, the Issuing Banks under such Letters of Credit. For the purposes of determining the Letter of Credit Liability, the face amount of Letters of Credit outstanding in an
Alternative Currency shall be expressed as the equivalent of such Alternative Currency in Dollars. 
  
 “Leverage Ratio” means, as of any date of determination, the ratio of (a) the amount equal to Consolidated Funded Debt
for the most recently completed four consecutive Fiscal Quarters ending on or prior to such date, to (b) Consolidated EBITDA for the most recently completed four consecutive Fiscal Quarters ending on or prior to such date, in each case for the
Borrower and its Subsidiaries as of such date. 
  
 “Lien” means any assignment, chattel mortgage, pledge or other security interest or any mortgage, deed of trust or other lien, or other charge or encumbrance, upon property or rights (including after-acquired property or
rights), or any preferential 

  

 12 

 
arrangement with respect to property or rights (including after-acquired property or rights) which has the practical effect of constituting a security
interest or lien. 
  
 “Loan
Documents” means, collectively, this Agreement, any note delivered pursuant to Section 2.02(g), and each application or agreement and other documents delivered in connection with Letters of Credit pursuant to Section 3.03, in each case as
amended, supplemented or otherwise modified hereafter from time to time in accordance with the terms thereof. 
  
 “Loan Parties” means, collectively, the Borrower, each of the LC Subsidiaries and each of the Subsidiary Borrowers.

  
 “Majority Lenders” means, at
any time, the Lenders having at least 51% of the aggregate amount of the Commitments, or, if the Commitments have been terminated or are otherwise no longer in effect, then the Lenders holding Credit Extensions representing at least 51% of the
aggregate amount of Credit Extensions. 
  
 “Margin Stock” has the meaning assigned to such term in Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Material Adverse Change” means any material adverse change in the business, condition
(financial or otherwise), results of operations, or prospects of the Borrower and its Subsidiaries, taken as a whole; provided, that a downgrade of the Borrower’s public debt ratings or a Negative Pronouncement shall not by itself be
deemed to be a material adverse change; provided, further, the occurrence or subsistence of any such material adverse change which has been disclosed (a) by the Borrower in any filing made with the Securities and Exchange Commission
prior to the date of this Agreement, (b) by the Borrower in a public announcement prior to the date of this Agreement, or (c) in the Information Memorandum prior to the date of this of this Agreement, shall not constitute a Material Adverse Change.

  
 “Material Adverse Effect”
means a material adverse effect on the financial condition or results of operations of the Borrower and its Subsidiaries taken as a whole. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Multiemployer Plan” means a “multiemployer plan” as defined in Section
4001(a)(3) of ERISA to which the Borrower or any Subsidiary of the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions or has within any of the preceding five plan years made or accrued an obligation to make
contributions. 
  
 “Negative
Pronouncement” means a public announcement by either S&P or Moody’s in respect to a possible downgrade of, or negative outlook with respect to, the public debt rating of the Borrower. 
  
 “Net Income” of any Person means, for any
period, net income before (i) extraordinary items, (ii) the results of discontinued operations and (iii) the effect of any cumulative change in accounting principles, determined in accordance with GAAP. 
  

 13 

 “Notice of Borrowing” has the meaning specified in Section 2.02(a).

  
 “Obligation” means, with
respect to any Person, any payment, performance or other obligation of such Person of any kind, including, without limitation, any liability of such Person on any claim, whether or not the right of any creditor to payment in respect of such claim is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any proceeding referred to in
Section 8.01(e). Without limiting the generality of the foregoing, the Obligations of the Borrower under the Loan Documents include (a) the obligation to pay principal, interest, commissions, charges, expenses, fees, attorneys’ fees and
disbursements, indemnity payments and other amounts payable by the Borrower under any Loan Document and (b) the obligation of the Borrower to reimburse any amount in respect of any of the foregoing items that any Lender Party, in its sole
discretion, may elect to pay or advance on behalf of such Loan Party. 
  
 “OECD” means the Organization for Economic Cooperation and Development. 
  
 “Other Taxes” has the meaning specified in Section 4.02(b). 
  
 “Payment Office” means the office of the
respective Issuing Bank as shall be from time to time selected by such Issuing Bank and notified by such Issuing Bank to the Borrower, the LC Subsidiaries, and the Lenders. 
  
 “Performance Level” means Performance Level 1, Performance Level 2, Performance Level 3,
Performance Level 4, Performance Level 5, or Performance Level 6, as identified by reference to the Public Debt Rating and Leverage Ratio in effect on such date as set forth below: 
  

			
	 Performance Level

	  	 Public Debt Rating

	 Level 1
	  	Long-Term Senior Unsecured Debt of the Borrower Rated at least A- by S&P or A3 by Moody’s or the Leverage Ratio is less than or equal to
1.25:1.00
		
	 Level 2
	  	Long-Term Senior Unsecured Debt of the Borrower Rated less than Level I but at least BBB+ by S&P or Baa1 by Moody’s or the Leverage Ratio is less than or
equal to 1.25:1.00
		
	 Level 3
	  	Long-Term Senior Unsecured Debt of the Borrower Rated less than Level II but at least BBB by S&P or Baa2 by Moody’s or the Leverage Ratio is less than or
equal to 1.25:1.00
		
	 Level 4
	  	Long-Term Senior Unsecured Debt of the Borrower Rated less than Level III but at least BBB- by S&P or Baa3 by Moody’s or the Leverage Ratio is less than
or equal to 1.50:1.00

  

 14 

			
		
	 Level 5
	  	Long-Term Senior Unsecured Debt of the Borrower Rated less than Level IV but at least BB+ by S&P or Ba1 by Moody’s or the Leverage Ratio is less than or
equal to 1.75:1.00
		
	 Level 6
	  	Long-Term Senior Unsecured Debt of the Borrower Rated less than Level 5 or the Leverage Ratio is greater than 1.75:1.00

  
 For purposes of this definition, the
Performance Level shall be determined by the applicable public debt rating or Leverage Ratio as follows: (a) the public debt ratings above shall be determined as follows: (i) the public debt ratings shall be determined by the then-current rating
announced by either S&P or Moody’s, as the case may be, for any class of non-credit-enhanced long-term senior unsecured debt issued by the Borrower, (ii) if only one of S&P and Moody’s shall have in effect a public debt rating, the
Performance Level shall be determined by reference to the available rating; (iii) if neither S&P nor Moody’s shall have in effect a public debt rating, the applicable Performance Level will be Performance Level 6; (iv) if the ratings on the
Borrower’s long-term senior unsecured debt established by S&P and Moody’s shall fall within different levels, the public debt rating will be determined by the higher of the two ratings, provided, that, in the event that
the lower of such ratings is more than one level below the higher of such ratings, the public debt rating will be determined based upon the level that is one level above the lower of such ratings; (v) if any rating established by S&P or
Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (vi) if S&P or Moody’s shall change the basis on which ratings are
established, each reference to the public debt rating announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be; (b) the Leverage Ratio shall be determined on
the basis of the most recent certificate of the Borrower to be delivered pursuant to Section 7.04(c) for the most recently ended Fiscal Quarter or Fiscal Year and any change in the Leverage Ratio shall be effective one Business Day after the date on
which the Agent receives such certificate; provided, that until the Borrower has delivered to the Agent such certificate pursuant to Section 7.04(c) in respect of the second Fiscal Quarter of 2004, the Leverage Ratio shall be deemed to be at
Level 4; provided, further, that for so long as the Borrower has not delivered such certificate when due pursuant to Section 7.04(c), the Leverage Ratio shall be deemed to be at Level 6 until the respective certificate is delivered to
the Agent; and (c) the Performance Level shall be determined in accordance with the Borrower’s respective public debt rating and Leverage Ratio, provided, that, if the Borrower’s public debt rating and the Leverage Ratio
shall fall within different levels, the Performance Level will be determined by the higher of the public debt rating and the Leverage Ratio, provided, further, that, in the event that the lower of the Borrower’s public debt
rating and the Leverage Ratio is more than one level below the higher of the Borrower’s public debt rating and the Leverage Ratio, the Performance Level shall be determined based upon the level that is one level above the lower of the
Borrower’s public debt rating and the Leverage Ratio. 
  

 15 

 “Permitted Lien” means: 
  
 (i) Liens for taxes, assessments or governmental charges or
levies to the extent not past due or to the extent contested, in good faith, by appropriate proceedings and for which adequate reserves have been established; 
  

(ii) Liens imposed by law, such as materialman’s, mechanic’s, carrier’s, worker’s, landlord’s and
repairman’s Liens and other similar Liens arising in the ordinary course of business which relate to obligations which are not overdue for a period of more than 30 days or which are being contested in good faith, by appropriate proceedings and
for which reserves required by GAAP have been established; 
  
 (iii) pledges or deposits in the ordinary course of business to secure obligations (including to secure letters of credit posted in connection therewith) under worker’s compensation or unemployment laws or
similar legislation or to secure the performance of leases or contracts (including insurance contracts issued by insurance companies which are Subsidiaries of the Borrower) entered into in the ordinary course of business or of public or statutory
obligations, bids, or appeal bonds; 
  
 (iv)
zoning restrictions, easements, licenses, landlord’s Liens or restrictions on the use of property which do not materially impair the use of such property in the operation of the business of the Borrower or any of its Subsidiaries; 

 
 (v) Liens upon assets subject to a Capital Lease and
securing payment of the obligations arising under such Capital Lease; 
  
 (vi) Liens of the Borrower and its Subsidiaries not described in the foregoing clauses (i) through (v) existing on the Effective Date and listed on Schedule II and any extensions, renewals or replacements of such
Liens for the same or lesser amount, provided, that, no such extension, renewal or replacement shall extend to or cover any property not theretofore subject to the Lien being extended, renewed or replaced; 
  
 (vii) judgment Liens in respect of judgments that do not
constitute an Event of Default under Section 8.01(f); and 
  
 (viii) Liens arising out of or pursuant to this Agreement. 
  
 “Person” means an individual, partnership, limited liability company, corporation (including a business trust), joint
stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
  
 “Plan” means an employee benefit plan (other than a Multiemployer Plan) maintained by the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate for its employees and subject to Title IV of ERISA. 
  
 “Recipient” has the meaning specified in Section 10.10. 
  

 16 

 “Reference Banks” means Citibank, Bank of America, N.A., HSBC Bank USA,
National Association and JPMorgan Chase Bank. 
  
 “Responsible Officer” means, with respect to any certificate, report or notice to be delivered or given hereunder, unless the context otherwise requires, the president, chief executive officer, chief financial officer or
treasurer of the Borrower or other executive officer of the Borrower who in the normal performance of his or her operational duties would have knowledge of the subject matter relating to such certificate, report or notice. 
  
 “Register” has the meaning specified in
Section 10.07(c). 
  
 “Requirements of
Law” means, with respect to any Person, all laws, constitutions, statutes, treaties, ordinances, rules and regulations, all orders, writs, decrees, injunctions, judgments, determinations and awards of an arbitrator, a court or any other
Governmental Authority, and all Governmental Authorizations, binding upon or applicable to such Person or to any of its properties, assets or businesses. 
  
 “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. 
  
 “Standby Letter of Credit” means a letter
of credit or other credit support instrument issued for the benefit of a Person party to a contractual arrangement with the Borrower or any of its Subsidiaries as credit support for the obligations of the Borrower or such Subsidiary thereunder.

  
 “Subsidiary” means, with
respect to any Person, any corporation, partnership, trust or other Person of which more than 50% of the outstanding capital stock (or similar property right in the case of partnerships and trusts and other Persons) having ordinary voting power to
elect a majority of the board of directors of such corporation (or similar governing body or Person with respect to partnerships and trusts and other Persons) (irrespective of whether or not at the time capital stock of any other class or classes of
such corporation shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other
Subsidiaries of such Person. 
  
 “Subsidiary Borrower” means, as of the date hereof, the Subsidiaries of the Borrower listed on Schedule VI and, after the date hereof, any other Subsidiary of the Borrower that may from time to time become a party hereto
(with respect to Swing Line Advances only) and in connection therewith such other Subsidiary shall execute such documents as are reasonably requested by the Agent to evidence its agreement to be bound hereunder as a Subsidiary Borrower, and to whom
the Swing Line Lenders may from time to time make Swing Line Advances. 
  
 “Subsidiary Obligations” has the meaning specified in Section 4.05. 
  
 “Swing Line Advance” means an advance made by a Swing Line Lender pursuant to Section 2.01(b). 
  

 17 

 “Swing Line Lender” means each Lender designated as such on the
signature pages hereto and each other Lender which agrees from time to time to act as a Swing Line Lender. 
  
 “Swing Line Commitment” means $3,000,000 on the Effective Date, as such amount may be increased or reduced from time to
time pursuant to Section 2.04(b), provided, that the Swing Line Commitment may not be more than $75,000,000 (or its equivalent in the respective Alternative Currencies). 
  
 “Tangible Net Worth” means the consolidated shareholder’s equity of the Borrower and
its Subsidiaries, determined in accordance with GAAP less goodwill and other intangibles (other than patents, trademarks, licenses, copyrights and other intellectual property and prepaid assets). 
  
 “Taxes” has the meaning specified in
Section 4.02(a). 
  
 “Termination
Date” means August 30, 2009, or the earlier date of termination in whole of the Commitments pursuant to Section 2.04(a) or 8.01. 
  
 “Total Assets” means, as of any date of determination, the consolidated assets of the Borrower and its Subsidiaries at
the end of the Fiscal Quarter immediately preceding such date, determined in accordance with GAAP. 
  
 “Trade Letter of Credit” means a direct-pay trade or documentary letter of credit issued for the benefit of a vendor in
connection with the purchase of goods by the Borrower or any of its Subsidiaries in the ordinary course of business. 
  
 “Type” refers to the distinction among Advances bearing interest at the Base Rate and Advances bearing interest at the
Eurodollar Rate. 
  
 “UCP” has
the meaning specified in Section 3.09. 
  
 “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA. 
  
 SECTION 1.02 Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”. 
  
 SECTION 1.03 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP applied in a
consistent manner with that applied in the preparation of the financial statements referred to in Section 6.01(f). 
  

 18 

 ARTICLE II 
  
 AMOUNTS AND TERMS OF THE ADVANCES 
  
 SECTION 2.01 The Advances. (a) Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make Advances to the Borrower
from time to time on any Business Day during the period from the Effective Date until the Termination Date in an aggregate amount not to exceed at any time outstanding such Lender’s Commitment, provided, that, the Lenders shall
not be obligated to, and shall not, make any Advances as part of a Borrowing if after giving effect to such Borrowing, the sum of the then outstanding aggregate amount of all Borrowings, the aggregate Swing Line Commitment then in effect (computed
without giving regard to usage) and the then outstanding aggregate amount of all Letter of Credit Liability shall exceed the aggregate amount of the Commitments in effect from time to time. Each Borrowing shall be in an aggregate amount not less
than (A) $15,000,000, in the case of a Borrowing consisting of Eurodollar Rate Advances and (B) $1,000,000, in the case of a Borrowing consisting of Base Rate Advances, or, in each case, in integral multiples of $1,000,000 in excess thereof and
shall consist of Advances of the same Type made on the same day by the Lenders ratably according to their respective Commitments. Within the limits of each Lender’s Commitment, the Borrower may from time to time borrow, prepay pursuant to
Section 2.10 and reborrow under this Section 2.01. 
  
 (b) The Swing Line Advances. A Subsidiary Borrower may request the respective Swing Line Lender to make, and such Swing Line Lender shall on the terms and conditions hereinafter set forth, make Swing Line Advances in Dollars or the
respective Alternative Currency to such Subsidiary Borrower from time to time on any Business Day during the period from the Effective Date until the Termination Date in an amount, when combined with all Swing Line Advances of all Swing Line
Lenders, not to exceed the lesser of (i) the Swing Line Commitment then in effect and (ii) such Swing Line Lender’s Commitment. Each Swing Line Advance shall be in an amount of $100,000 (or its equivalent in the respective Alternative Currency)
or an integral multiple thereof and shall bear interest at a rate to be agreed on by the respective Subsidiary Borrower and the respective Swing Line Lender. Within the limits of the first sentence of this Section 2.01(b), the respective Subsidiary
Borrower may borrow under this Section 2.01(b), repay pursuant to Section 2.05(b), prepay pursuant to Section 2.10(b) and reborrow under this Section 2.01(b). 
  

SECTION 2.02 Making the Advances. (a) Each Borrowing shall be made on notice given not later than (i) 12:00 noon (New York City time) on the
third Business Day prior to the date of the proposed Borrowing, if such proposed Borrowing consists of Eurodollar Rate Advances and (ii) 10:00 A.M. (New York City time) on the day of such proposed Borrowing, if such proposed Borrowing consists of
Base Rate Advances, by the Borrower to the Agent, which shall give to each Lender prompt notice thereof by telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telecopier or telephone (and if by
telephone, confirmed immediately in writing), in substantially the form of Exhibit A, specifying therein the requested (i) date of such Borrowing, (ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing and (iv) in
the case of a Borrowing comprised of Eurodollar Rate Advances, initial Interest Period for each such Advance. Each Lender shall, before 2:00 p.m. 

  

 19 

 
(New York City time) on the date of such Borrowing, make available for the account of its Applicable Lending Office to the Agent at its address referred to
in Section 10.02, in same day funds, such Lender’s ratable portion of such Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article V, the Agent will make such funds
available to the Borrower at the Agent’s aforesaid address. 
  
 (b) (i) Each Swing Line Advance shall be made on such notice and on such terms (subject to the provisions of Section 2.05(b)) as are agreed to from time to time between the respective Subsidiary Borrower and the
respective Swing Line Lender. Upon fulfillment of the applicable conditions set forth in Article V, the respective Swing Line Lender will make such funds available to the respective Subsidiary Borrower. No later than 30 days after the end of each
calendar quarter, each Swing Line Lender shall deliver to the Agent a report as to the outstanding amount of Swing Line Advances by such Swing Line Lender as of the end of such quarter and the identity of the respective Subsidiary Borrower. In
addition, each Swing Line Lender will provide such information as to the Swing Line Advances made by such Swing Line Lender as is requested by the Agent from time to time. 
  
 (ii) Upon demand by the respective Swing Line Lender, with a copy of such demand to the Agent (which shall
give prompt notice thereof to each Lender), each Lender shall purchase from such Swing Line Lender, and such Swing Line Lender shall sell and assign to each such Lender, such Lender’s ratable share (as determined by reference to such
Lender’s Commitment Percentage) of any outstanding Swing Line Advance by such Swing Line Lender as of the date of such demand, by making available to the respective Swing Line Lender, an amount equal to such ratable share. If such Swing Line
Advance is denominated in an Alternative Currency, the payment to be made by the Lenders pursuant to the preceding sentence shall be Converted into Dollars by the Swing Line Lender at a rate determined by such Swing Line Lender as provided in
Section 3.12(a). Each Lender hereby agrees to purchase its ratable share of an outstanding Swing Line Advance on (A) the Business Day on which demand therefor is made by the respective Swing Line Lender so long as notice of such demand is given not
later than one Business Day prior to such Business Day or (B) the first Business Day next succeeding such demand if notice of such demand is given after such time. The respective Subsidiary Borrower, hereby agrees to each such sale and assignment.
Upon any such assignment by the respective Swing Line Lender to any Lender of a portion of a Swing Line Advance, the respective Swing Line Lender represents and warrants to such Lender that such Swing Line Lender is the legal and beneficial owner of
such interest being assigned by it, but makes no other representation or warranty and assumes no responsibility with respect to such Swing Line Advance, the Loan Documents or any Loan Party. If and to the extent that any Lender shall not have so
made its ratable share of any applicable Swing Line Advance available to the respective Swing Line Lender in accordance with the foregoing provisions of this Section 2.02(b)(ii), such Lender hereby agrees to pay to the respective Swing Line Lender
forthwith on demand the amount of its ratable share, together with interest thereon, for each day from the date of demand by such Swing Line Lender 

  

 20 

 
therefor until the date such amount is paid to such Swing Line Lender, at the Federal Funds Rate. If such Lender shall pay to such Swing Line Lender the
amount of its ratable share on any Business Day, such amount so paid in respect of principal shall constitute a Swing Line Advance made by such Lender on such Business Day for all purposes of this Agreement, and the outstanding principal amount of
the Swing Line Advance made by the respective Swing Line Lender shall be reduced by such amount on such Business Day. 
  
 (iii) The obligation of each Lender to purchase its ratable share of each outstanding Swing Line Advance upon demand by the respective
Swing Line Lender therefor pursuant to clause (ii) of this Section 2.02(b) shall be absolute, unconditional and irrevocable, and shall be made strictly in accordance with the terms of clause (ii) of this Section 2.02(b) under all circumstances,
including, without limitation, the following circumstances: 
  
 (A) any lack of validity or enforceability of any Loan Document or any other agreement or instrument relating thereto; 
  
 (B) the existence of any claim, set-off, defense or other right that such Lender may have at any time against the respective Swing Line
Lender, the respective Subsidiary Borrower or any other Person, whether in connection with the transactions contemplated by the Loan Documents or any unrelated transaction; 
  
 (C) the occurrence and continuance of any Default or Event of Default; 
  
 (D) any other circumstance or happening whatsoever, whether
or not similar to any of the foregoing; or 
  
 (E) the failure of the respective Subsidiary Borrower to comply with the applicable conditions set forth in Article V. 
  
 (c) Anything in subsection (a) above to the contrary notwithstanding, the Borrower may not select Eurodollar Rate Advances for any
Borrowing if the aggregate amount of such Borrowing is less than $1,000,000 multiplied by the number of Lenders. 
  
 (d) Each Notice of Borrowing shall be irrevocable and binding on the Borrower or the respective Subsidiary Borrower, as the case may be.
In the case of any Borrowing which the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article V, including, without limitation, any loss (including loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Eurodollar Rate Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not
made on such date. 
  

 21 

 (e) Unless the Agent shall have received notice from a Lender (i) in the case of any
Borrowing consisting of (A) Eurodollar Rate Advances or (B) Base Rate Advances for which the Notice of Borrowing is given other than on the date thereof, prior to the date of such Borrowing or (ii) in the case of any Borrowing consisting of Base
Rate Advances for which the Notice of Borrowing is given on the date thereof, prior to the time at which such Lender is required to fund such Borrowing, which notice shall in either case state that such Lender will not make available to the Agent
such Lender’s ratable portion of such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent on the date of such Borrowing in accordance with Section 2.02(a) and the Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Agent, such Lender and the Borrower severally agree to repay to the
Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Agent at (x) in the case of the Borrower or the
respective Subsidiary Borrower, the interest rate applicable at the time to Advances comprising such Borrowing and (y) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to the Agent such corresponding amount, such amount
so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement. 
  
 (f) The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing. 
  
 (g) The Borrower shall, if requested by any Lender, execute
and deliver a promissory note, in substantially the form of Exhibit B, payable to the order of such Lender in an original principal amount equal to such Lender’s Commitment, duly executed by the Borrower. 
  
 SECTION 2.03 Fees. (a) Facility Fee. The Borrower agrees to pay
to the Agent for the account of each Lender a facility fee, from the date hereof in the case of each initial Lender and from the effective date specified in the Assumption Agreement or in the Assignment and Acceptance, respectively, pursuant to
which it became Lender in the case of each other Lender until the Termination Date at a rate per annum equal to the Applicable Facility Fee in effect from time to time, (i) on the amount of such Lender’s Commitment (computed without giving
effect to any usage of the Commitment of such Lender), payable quarterly in arrears on the last day of each January, April, July and October and on the Termination Date; and (ii) on the aggregate amount of Letter of Credit Liability under all
Letters of Credit that are outstanding beyond the Termination Date (regardless of the actual or deemed usage thereof) payable in arrears on the last day of each January, April, July and October after the Termination Date and on the first day after
the Termination Date on which no Letters of Credit are outstanding. 
  
 (b) Utilization Fee. The Borrower agrees to pay to the Agent for the account of each Lender a utilization fee, accruing, during all periods from and after the Effective 

  

 22 

 
Date when the aggregate amount of outstanding Advances (including any outstanding Swing Line Advances) exceeds 50% of the aggregate Commitments (without
regard to any usage thereof), at a rate per annum equal to the Applicable Utilization Fee in effect from time to time on the aggregate amount of Advances (including any Swing Line Advances) by such Lender outstanding from time to time during such
periods, payable quarterly in arrears on the last day of each January, April, July and October and on the Termination Date. 
  
 (c) Other Fees. The Borrower hereby agrees to pay the fees and charges referred to in that certain letter agreement, dated as of
the date hereof, among the Borrower, the Issuing Banks and the Agent. 
  
 SECTION 2.04 Reduction and Increase of the Commitments; Reduction and Increase of the Swing Line Commitment; Additional Issuing Banks. (a) The Borrower shall have the right, upon at least three Business Days’ notice to the
Agent, to irrevocably terminate in whole or reduce ratably in part the unused portions of the respective Commitments of the Lenders, provided, that, after giving effect to such reduction, the Commitments are not less than the sum of
the aggregate amount of all Letter of Credit Liability, the aggregate Swing Line Commitment then in effect (computed without giving regard to usage), and the then outstanding amount of all Borrowings; provided, further, that,
each partial reduction shall be in the aggregate amount of $25,000,000 or an integral multiple of $1,000,000 in excess thereof. 
  
 (b) Not more frequently than four times in any calendar year starting on the Effective Date, the Borrower shall have the right, upon at
least three Business Days’ notice to the Agent and the Swing Line Lenders to reduce in whole or in part the unused portion of the Swing Line Commitment or increase the amount of the Swing Line Commitment; provided, that, after
giving effect to any such reduction, the Swing Line Commitment is not less than the outstanding amount of all Swing Line Advances; provided, further, that, each partial reduction or increase shall be in the amount of $3,000,000
or an integral multiple of $500,000 in excess thereof (or, in each case, the equivalent amount in the respective Alternative Currency), provided, further, that, the Swing Line Commitment, after giving effect to any increase
thereof proposed herein, shall not exceed $75,000,000 and, together with the then outstanding aggregate amount of all Borrowings and the then outstanding aggregate amount of all Letter of Credit Liability, shall not exceed the aggregate amount of
the Commitments in effect from time to time and at the time of any proposed increase in the Swing Line Commitment and after giving effect thereto, no event has occurred and is continuing which constitutes an Event of Default or Default and,
provided, further, that, the Agent shall record any such increase or decrease in the Swing Line Commitment in the Register. 
  
 (c) Not more frequently than twice in any calendar year, the Borrower shall have the right prior to the Termination Date to (i) increase
the amount of the Commitments of one or more Lenders (subject to the consent of such Lenders in their sole and absolute discretion), (ii) add one or more Assuming Lenders as Lenders (subject to the consent of the Agent and the Issuing Banks in their
sole and absolute discretion) and (iii) increase the Issuing Commitment of an Issuing Bank (subject to the consent of 

  

 23 

 
such Issuing Bank in its sole and absolute discretion) (each such increase under clause (i), (ii) or (iii) being a “Commitment Increase”),
on and subject to the following terms: 
  
 (i)
The aggregate amount of the increase in the Commitments shall not exceed $250,000,000 after the date hereof; 
  
 (ii) The amount of each Commitment Increase by any Lender or any Assuming Lender shall be in a minimum amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof. 
  
 (iii) No proposed Commitment Increase shall occur unless each of the following requirements in respect thereof shall have been satisfied: 
  
 (A) The Agent shall have received from the Borrower an irrevocable written notice (a “Commitment Increase Notice”), dated
not earlier than 60 days before the proposed Commitment Increase Effective Date (as defined below) therefor and not later than 30 days (or such shorter period agreed to by the Agent) before such proposed Commitment Increase Effective Date, that (1)
specifies (w) (if applicable) the proposed Issuing Commitment increase of each Issuing Bank and/or of the Lenders which are to become Issuing Banks and the amount of each Issuing Bank’s Issuing Commitment after giving effect thereto, (x) the
aggregate amount of the proposed Commitment Increase, (y) the Lenders whose Commitments are to be increased by the proposed Commitment Increase and/or the Assuming Lenders which are to become Lenders and the amount by which each such Lender’s
Commitment is to be so increased and/or the amount of each such Assuming Lender’s Commitment and (z) the date (the “Commitment Increase Effective Date”) on which the proposed Commitment Increase shall become effective, and (2)
has been signed by each Lender whose Commitment is to be increased, evidencing the consent of such Lender to the proposed Commitment Increase and each Issuing Bank whose Issuing Commitment is to be increased evidencing the consent of such Issuing
Bank thereto and/or by each such Assuming Lender; and 
  
 (B) On and as of the Commitment Increase Effective Date of the proposed Commitment Increase (1) the following statements shall be true (and the giving of the applicable Commitment Increase Notice shall constitute a representation and
warranty by the Borrower that on such Commitment Increase Effective Date such statements are true): 
  
 (x) The representations and warranties contained in Section 6.01 are correct on and as of such Commitment Increase Effective Date before
and after giving effect to the proposed Commitment Increase, as though made on and as of such date; and 
  
 (y) No event has occurred and is continuing, or would result from such Commitment Increase, which constitutes an Event of Default or
Default; and 
  

 24 

 (z) the Agent shall have received such other approvals, opinions or documents as the
Agent may reasonably request. 
  
 (iv) Promptly
following its receipt of a Commitment Increase Notice in proper form, the Agent shall deliver copies thereof to each Lender and Issuing Bank. If, and only if, all of the terms, conditions and requirements specified in paragraphs (i) through (iv) are
satisfied in respect of any proposed Commitment Increase on and as of the proposed Commitment Increase Effective Date thereof and in the case of each such Assuming Lender, an Assumption Agreement, duly executed by such Assuming Lender, the Agent and
the Borrower, has been received by the Agent, then, as of such Commitment Increase Effective Date and from and after such date, (1) the Commitments of the Lenders consenting to such Commitment Increase shall be increased by the respective amounts
specified in the Commitment Increase Notice pertaining thereto, (2) references herein to the amounts of the Lenders’ respective Commitments shall refer to respective amounts giving effect to such Commitment Increase, and (3) each such Assuming
Lender shall be a Lender and Issuing Bank, if applicable, for all purposes hereof, and the Agent shall record all relevant information with respect to such Assuming Lender and its Commitment and, if applicable, with respect to any increased Issuing
Commitment of an Issuing Bank in the Register; 
  
 (v) It is understood that no Lender or Issuing Bank shall have any obligation whatsoever to agree to any request made by the Borrower for a Commitment Increase; 
  
 (vi) As part of such Commitment Increase, such Lender or Assuming Lender shall purchase assignments in the
Advances and Commitments of the other Lenders so that after giving effect thereto, the percentage held by each Lender of the aggregate Commitments is the same as prior to such Commitment Increase and such Lender or Assuming Lender shall have
acquired a ratable participation in all Swing Line Advances as contemplated by Section 2.02(b). In connection therewith, on each Commitment Increase Effective Date, (A) each Lender whose Commitment has been increased (each such Lender being an
“Increasing Lender”) shall, before 2:00 p.m. (New York City time) on such Commitment Increase Effective Date, make available for the account of its Applicable Lending Office to the Agent at the address specified in Section 10.02, in
same day funds, an amount equal to the excess of (1) such Increasing Lender’s ratable portion of the Advances then outstanding (calculated based on its Commitment as a percentage of the aggregate Commitments of the Lenders (including each such
Assuming Lender) outstanding after giving effect to the relevant Commitment Increase) over (2) the aggregate principal amount of then outstanding Advances made by such Increasing Lender and (B) each such Assuming Lender shall before 2:00 p.m. (New
York City time) on such Commitment Increase Effective Date, make available for the account of its Applicable Lending Office to the Agent at the address specified in Section 10.02 in same day funds, an amount equal to such Assuming Lender’s
ratable portion of the Advances then outstanding (calculated based on its Commitment as a 

  

 25 

 
percentage of the aggregate Commitments of the Lenders (including each such Assuming Lender) outstanding after giving effect to the relevant Commitment
Increase); and 
  
 (vii) After the Agent’s
receipt of such funds from each such Increasing Lender and such Assuming Lender, the Agent will promptly thereafter cause to be distributed like funds to the other Lenders for the account of their respective Applicable Lending Offices in an amount
to each other Lender such that the aggregate amount of the outstanding Advances owing to each Lender (including each such Assuming Lender) after giving effect to such distribution equals such Lender’s ratable portion of the Advances then
outstanding (calculated based on its Commitment as a percentage of the aggregate Commitments of the Lenders outstanding after giving effect to the relevant Commitment Increase). 
  
 (d) The Borrower may at any time, upon at least five Business Days’ prior written notice to the Agent
and the Lenders or as part of a proposed Commitment Increase pursuant to this Section 2.04, designate (i) as an Issuing Bank any Lender that has agreed in writing to act as an Issuing Bank and (ii) the Issuing Commitment of such Lender. Thereupon,
any Lender so designated as an Issuing Bank shall thenceforth issue Letters of Credit on the terms and subject to the conditions herein, and the Agent shall record all relevant information with respect to such Lender as such Issuing Bank in the
Register. 
  
 SECTION 2.05 Repayment of Advances. (a) The
Borrower shall repay in full the principal amount of each Advance made pursuant to Section 2.01(a) owing to each Lender, together with accrued interest and fees thereon, on the Termination Date. 
  
 (b) Swing Line Advances. The respective Subsidiary
Borrower shall repay the respective Swing Line Lender and each Lender that has made a Swing Line Advance on the earlier of (i) the maturity date for each Swing Line Advance (which maturity shall be no later than 30 days after the date of such
Advance) and (ii) the Termination Date, the principal amount of each such Swing Line Advance made by the Swing Line Lender and each such Lender and outstanding on such date. 
  
 SECTION 2.06 Interest on Advances. The Borrower or the respective Subsidiary Borrower, as the case may be, shall pay
interest on the unpaid principal amount of each Advance made by each Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum: 
  
 (a) Base Rate Advances. If such Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the respective Applicable Margin in effect from time to time, payable quarterly on the last day of each April, July, October, and
January and on the date such Base Rate Advance shall be Converted or paid in full; provided, that, any amount of principal which is not paid when due (whether at stated maturity, by acceleration or otherwise) shall bear interest, from
the date on which such amount is due until such amount is paid in full, payable on demand, at a rate per annum equal at all times to 2% per annum above the rate 

  

 26 

 
per annum required to be paid on such Advance immediately prior to the date on which such principal amount become due. 
  
 (b) Eurodollar Rate Advances. If such Advance is a
Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the Eurodollar Rate for such Interest Period plus (y) the respective Applicable Margin in effect from time to time,
payable on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day which occurs during such Interest Period every three months from the first day of such Interest Period;
provided, that, any amount of principal which is not paid when due (whether at stated maturity, by acceleration or otherwise) shall bear interest, from the date on which such amount is due until such amount is paid in full, payable on
demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such Advance (as if such Advance were a Base Rate Advance) immediately prior to the date on which such principal amount became due.

  
 (c) Swing Line Advances. If such
Advance is a Swing Line Advance, a rate per annum as agreed upon by the respective Swing Line Lender and respective Subsidiary Borrower. 
  
 SECTION 2.07 Additional Interest on Eurodollar Rate Advances. The Borrower shall pay to each Lender, so long as such Lender shall be required under
regulations of the Board of Governors of the Federal Reserve System to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional interest on the unpaid principal amount of each Eurodollar
Rate Advance of such Lender, from the date of such Advance until such principal amount is paid in full, at an interest rate per annum equal at all times to the remainder obtained by subtracting (i) the Eurodollar Rate for the Interest Period for
such Advance from (ii) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such
Advance. Such additional interest shall be determined by such Lender and notified to the Borrower through the Agent. 
  
 SECTION 2.08 Interest Rate Determination. (a) Each Reference Bank agrees to furnish to the Agent timely information for the purpose of determining
the Eurodollar Rate. If any one or more of the Reference Banks shall not furnish such timely information to the Agent for the purpose of determining such interest rate, the Agent shall determine such interest rate on the basis of timely information
furnished by the remaining Reference Banks. The Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Agent for purposes of Section 2.06(a) or (b), and the applicable rate, if any, furnished
by each Reference Bank for the purpose of determining the applicable interest rate under Section 2.06(b). 
  
 (b) If, with respect to any Eurodollar Rate Advances, the Majority Lenders notify the Agent that the Eurodollar Rate for any Interest
Period for such Advances will not adequately reflect the cost to such Majority Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify the Borrower and the
Lenders, whereupon: 
  
 (i) each outstanding
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, and 
  

 27 

 (ii) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 
  
 (c) If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of “Interest Period” in Section 1.01, the Agent will forthwith so notify the Borrower and the Lenders and such Advances will automatically, on the last day of the then existing Interest Period
therefor, Convert into Base Rate Advances. 
  
 (d) On the date on which the aggregate unpaid principal amount of Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $1,000,000 multiplied by the number of Lenders, such Advances shall,
if they are Advances of a Type other than Base Rate Advances, automatically Convert on the last day of the Interest Period with respect to such Advance into Base Rate Advances, and on and after such date the right of the Borrower to Convert such
Advances into Advances of a Type other than Base Rate Advances shall terminate; provided, however, that if and so long as each such Advance shall be of the same Type and have the same Interest Period as Advances comprising another
Borrowing or other Borrowings, and the aggregate unpaid principal amount of all such Advances shall equal or exceed $1,000,000 multiplied by the number of Lenders, the Borrower shall have the right to continue all such Advances as, or to Convert all
such Advances into, Advances of such Type having such Interest Period. 
  
 (e) Upon the occurrence and during the continuance of any Event of Default, (i) each Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor, convert into a Base Rate
Advance and (ii) the obligations of the Lenders to make, or to convert Advances into, Eurodollar Rate Advances will be suspended. 
  
 (f) If fewer than two Reference Banks furnish timely information to the Agent for determining the Eurodollar Rate for any Eurodollar Rate
Advances, 
  
 (i) the Agent shall forthwith
notify the Borrower and the Lenders that the interest rate cannot be determined for such Eurodollar Rate Advances, 
  
 (ii) each such Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance
(or if such Advance is then a Base Rate Advance, will continue as a Base Rate Advance), and 
  
 (iii) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the Agent
shall notify the 

  

 28 

 
Borrower and the Lenders that the circumstances causing such suspension no longer exist. 
  
 SECTION 2.09 Voluntary Conversion of Advances. The Borrower may on any Business Day, upon notice given to the Agent
not later than 12:00 noon (New York City time) on the third Business Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.08 and 2.12, Convert all Advances of one Type comprising the same Borrowing into
Advances of another Type; provided, however, that any Conversion of any Eurodollar Rate Advances into Advances of another Type shall be made on, and only on, the last day of an Interest Period for such Eurodollar Rate Advances. Each
such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the duration of the Interest
Period for each such Advance. 
  
 SECTION 2.10 Prepayments of
Advances. 
  
 (a) The Borrower may (i) upon
at least two Business Days’, in the case of Eurodollar Rate Advances and (ii) on the same Business Day, in the case of Base Rate Advances, notice to the Agent (to be received by the Agent prior to 12:00 noon (New York City time)) stating the
proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal amounts of the Advances comprising part of the same Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the principal amount prepaid (provided that any prepayment in connection with the termination and refinancing of this Agreement may be conditioned on the closing of such refinancing);
provided, however, that (x) each partial prepayment shall be in an aggregate principal amount not less than $15,000,000 if made with respect to Eurodollar Rate Advances, or $1,000,000, if made with respect to Base Rate Advances, and in
each case in $1,000,000 integral multiples in excess thereof and (y) in the case of any such prepayment of a Eurodollar Rate Advance, the Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 10.04(b).

  
 (b) The right of any Subsidiary Borrower to
prepay any Swing Line Advance shall be as set forth in an agreement between the respective Swing Line Lender and the respective Subsidiary Borrower. 
  
 SECTION 2.11 Increased Costs. (a) If, due to either (i) the introduction of or any change at any time after the date of this Agreement (other than
any change by way of imposition or increase of reserve requirements in the case of Eurodollar Rate Advances, included in the Eurodollar Rate Reserve Percentage) in or in the interpretation of any law or regulation or (ii) the compliance after the
date of this Agreement with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost (other than an increase in taxes, which increase is dealt
with exclusively in Article IV) to any Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Advances, then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost; 

  

 29 

 
provided, that, the Borrower shall have no obligation to reimburse any Lender for increased costs incurred more than 60 days prior to the date
of such demand. A certificate as to the amount of such increased cost setting forth the basis for the calculation of such increased costs, submitted to the Borrower and the Agent by such Lender, shall be conclusive and binding for all purposes,
absent manifest error. 
  
 (b) If, at any time
after the date of this Agreement, any Lender determines that compliance with any law or regulation or any guideline or request from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the
amount of capital required or expected to be maintained by such Lender or any corporation controlling such Lender and that the amount of such capital is increased by or based upon the existence of such Lender’s commitment to lend hereunder and
other commitments of this type, then, upon demand by such Lender (with a copy of such demand to the Agent), the Borrower shall immediately pay to the Agent for the account of such Lender, from time to time as specified by such Lender, additional
amounts sufficient to compensate such Lender or such corporation in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital to be allocable to the existence of such Lender’s commitment to
lend hereunder; provided, that, the Borrower shall have no obligation to pay such compensatory amounts that relate to an actual increase in the capital of such Lender undertaken by such Lender more than 60 days prior to the date of
such demand. A certificate as to such amounts submitted to the Borrower and the Agent by such Lender and setting forth the basis for the calculation of such amount shall be conclusive and binding for all purposes, absent manifest error. 

 
 (c) Without affecting its rights under Sections 2.11(a)
or 2.11(b) or any other provision of this Agreement, each Lender agrees that if there is any increase in any cost to or reduction in any amount receivable by such Lender with respect to which the Borrower would be obligated to compensate such Lender
pursuant to Sections 2.11(a) or 2.11(b), such Lender shall use reasonable efforts to select an alternative Applicable Lending Office which would not result in any such increase in any cost to or reduction in any amount receivable by such Lender;
provided, however, that no Lender shall be obligated to select an alternative Applicable Lending Office if such Lender determines that (i) as a result of such selection such Lender would be in violation of any applicable law,
regulation, treaty, or guideline, or would incur additional costs or expenses or (ii) such selection would be inadvisable for regulatory reasons or inconsistent with the interests of such Lender. 
  
 (d) Without prejudice to the survival of any other agreement
of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 2.11 shall survive the payment in full (after the Termination Date) of all Obligations. 
  
 SECTION 2.12 Illegality. (a) Notwithstanding any other provision of this Agreement, if any Lender shall notify the
Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful or impossible, or any central bank or other governmental authority asserts that it is unlawful, for any Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or to 

  

 30 

 
fund or maintain Eurodollar Rate Advances hereunder, (i) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall
be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist and (ii) the Borrower shall forthwith prepay in full all Eurodollar Rate Advances of all Lenders then outstanding,
together with interest accrued thereon, unless the Borrower, within five Business Days of notice from the Agent, Converts all Eurodollar Rate Advances of all Lenders then outstanding into Advances of another Type in accordance with Section 2.09.

  
 (b) Without affecting its rights under
Section 2.12(a) or under any other provision of this Agreement, each Lender agrees that if it becomes unlawful or impossible for such Lender to make, maintain or fund its Eurodollar Rate Advances as contemplated by this Agreement, such Lender shall
use reasonable efforts to select an alternative Applicable Lending Office from which such Lender may maintain and give effect to its obligations under this Agreement with respect to making, funding and maintaining such Eurodollar Rate Advances;
provided, however, that no Lender shall be obligated to select an alternative Applicable Lending Office if such Lender determines that (i) as a result of such selection such Lender would be in violation of any applicable law,
regulation, or treaty, or would incur additional costs or expenses or (ii) such selection would be inadvisable for regulatory reasons or inconsistent with the interests of such Lender. 
  
 SECTION 2.13 Subsidiary Borrowers. Any Subsidiary of the Borrower not a Subsidiary Borrower on the date hereof may
become a “Subsidiary Borrower” hereunder by delivering to the Agent appropriate authorizations in respect of it entering into this Agreement, an agreement, in form and substance satisfactory to the Agent, wherein such Subsidiary agrees to
be bound by all terms and provisions of this Agreement relating to Swing Line Advances to be made to such Subsidiary Borrower and delivers a written consent of the Borrower assenting to the inclusion of such Subsidiary as a “Subsidiary
Borrower” hereunder. Unless objected to by the Majority Lenders within the 10 day period referred to below, such Subsidiary shall become a “Subsidiary Borrower” hereunder 10 days after the Agent notifies the Borrower that such
agreement and consent are in form and substance satisfactory to it. 
  
 ARTICLE III 
  
 AMOUNT AND TERMS OF LETTERS OF CREDIT AND
PARTICIPATIONS THEREIN 
  
 SECTION 3.01 Letters of Credit.
(a) Each Issuing Bank agrees, on the terms and conditions hereinafter set forth, to Issue for the account of the Borrower or any LC Subsidiary, one or more Letters of Credit (in an aggregate amount not in excess of the Issuing Commitment of such
Issuing Bank) from time to time during the period from the date of this Agreement until the Termination Date in an aggregate undrawn amount not to exceed at any time the Commitments of the Lenders in effect at such time (inclusive of the Dollar
equivalent of Letters of Credit Issued in an Alternative Currency), each such Letter of Credit (except Standby Letter of Credit) upon its Issuance to expire, subject to the following proviso, on or before the date which occurs one year from the date
of its Issuance but in any event prior to the Termination Date; provided, however, that if any Letter of Credit shall have an expiration date beyond the Termination Date, the Borrower or any LC Subsidiary, as applicable, shall, at or
prior to the 

  

 31 

 
Termination Date deposit cash in the L/C Collateral Account in an amount equal to the Letter of Credit Liability (less the amount, if any, then on
deposit in the L/C Collateral Account) as collateral security for the Borrower’s or any LC Subsidiary’s, as applicable, reimbursement obligations in connection therewith, such cash to be returned promptly to the Borrower or such LC
Subsidiary, as applicable, when the respective Letter of Credit expires; and provided further, however, that, notwithstanding the foregoing, an Issuing Bank shall not be obligated to, and shall not, Issue any Letter of Credit
if: 
  
 (i) after giving effect to the Issuance
of such Letter of Credit, the sum of the then outstanding aggregate amount of all Letter of Credit Liability, the then outstanding principal amount of all Borrowings and the aggregate Swing Line Commitment then in effect (computed without giving
regard to usage) shall exceed the aggregate amount of the Commitments in effect from time to time; 
  
 (ii) after giving effect to the Issuance of such Letter of Credit, the then outstanding aggregate amount of all Letter of Credit Liability
in respect of Letters of Credit Issued by such Issuing Bank shall exceed the Issuing Commitment of such Issuing Bank; or 
  
 (iii) the Agent or the Majority Lenders shall have notified the Issuing Banks and the Borrower that no further Letters of Credit are to be
Issued by the Issuing Banks due to failure to meet any of the applicable conditions set forth in Article V, and such notice has not been withdrawn. 
  
 (b) Each Issuing Bank shall provide to the Agent in writing, no later than 5 days after the end of each month, a report with respect to
the outstanding Letters of Credit issued by such Issuing Bank, which report shall set forth the undrawn amount and drawn but unreimbursed amount as of the end of each day during that month of all such Letters of Credit. Promptly after receiving all
of such reports, the Agent shall forward copies thereof to each Lender. 
  
 Within
the limits of the obligations of the Issuing Banks set forth above and in Section 3.02, the Borrower and each LC Subsidiary may request the Issuing Banks to Issue one or more Letters of Credit, reimburse the Issuing Banks for payments made
thereunder pursuant to Section 3.04(a) and request the Issuing Banks to Issue one or more additional Letters of Credit under this Section 3.01. 
  
 SECTION 3.02 Limitation on the Issuance of Letters of Credit Denominated in Alternative Currencies. The Issuing Banks shall not be obligated to,
and shall not, Issue any Letter of Credit denominated in an Alternative Currency if, after giving effect to the Issuance of any Letter of Credit denominated in an Alternative Currency, the then outstanding aggregate amount of all Letter of Credit
Liability with respect to all Letters of Credit denominated in an Alternative Currency equals or exceeds (on a Dollar equivalent basis) $75,000,000. 
  
 SECTION 3.03 Issuing the Letters of Credit. Each Letter of Credit shall be Issued on notice from the Borrower or any LC Subsidiary, as the case may
be, to the respective Issuing Bank as provided in the application and agreement governing such Letter of Credit 

  

 32 

 
specifying the date, amount, currency, expiry and beneficiary thereof and whether such Letter of Credit is a Trade Letter of Credit or Standby Letter of
Credit and, if it is a Standby Letter of Credit, the amount of all Standby Letters of Credit then outstanding, accompanied by such documents as such Issuing Bank may specify to the Borrower or LC Subsidiary, as the case may be, in form and substance
satisfactory to such Issuing Bank. On the date specified by the Borrower or LC Subsidiary, as the case may be, in such notice and upon fulfillment of the applicable conditions set forth in Section 3.01, such Issuing Bank will Issue such Letter of
Credit and shall promptly notify the Agent thereof. 
  
 SECTION
3.04 Reimbursement Obligations. (a) The Borrower or the appropriate LC Subsidiary, as the case may be, shall: 
  
 (i) pay to the respective Issuing Bank an amount equal to, and in reimbursement for, each amount which such Issuing Bank pays under any
Letter of Credit not later than the date which occurs one Business Day after notice from the Issuing Bank to the Borrower or the appropriate LC Subsidiary of payment of such amount by such Issuing Bank under such Letter of Credit; and 
  
 (ii) pay to such Issuing Bank interest on any amount paid by
such Issuing Bank under any Letter of Credit from the date on which such Issuing Bank pays such amount under any Letter of Credit until such amount is reimbursed in full to such Issuing Bank pursuant to clause (i) above, payable on demand, at a
fluctuating rate per annum equal to 2% per annum above the rate per annum required to be paid on Base Rate Advances immediately prior to the date on which such Issuing Bank makes such payment under such Letter of Credit. 
  
 (b) All amounts to be reimbursed to an Issuing Bank in
accordance with subsection (a) above may, subject to the limitations set forth in Section 2.01 (inclusive of the minimum borrowing limitations), be paid from the proceeds of Advances. 
  
 SECTION 3.05 Participations Purchased by the Lenders. (a) On the date of Issuance of each Letter of Credit the
respective Issuing Bank shall be deemed irrevocably and unconditionally to have sold and transferred to each Lender without recourse or warranty, and each Lender shall be deemed to have irrevocably and unconditionally purchased and received from
such Issuing Bank, an undivided interest and participation, to the extent of such Lender’s Commitment Percentage in effect from time to time, in such Letter of Credit and all Letter of Credit Liability relating to such Letter of Credit and all
documents securing, guaranteeing, supporting, or otherwise benefiting the payment of such Letter of Credit Liability. The Agent or such Issuing Bank will notify each Lender promptly after the close of each calendar month of all Letters of Credit
then outstanding and of their respective dates of Issue, outstanding amounts (on a Dollar equivalent basis) as at the end of such month, currency, expiry dates and reference numbers. 
  
 (b) In the event that any reimbursement obligation under Section 3.04(a) is not paid when due to the
respective Issuing Bank with respect to any Letter of Credit, such Issuing Bank shall promptly notify the Agent who shall promptly notify the Lenders of the amount of such reimbursement obligation (on a Dollar equivalent basis in the case 

  

 33 

 
of Letters of Credit denominated in an Alternative Currency) and each Lender shall pay to such Issuing Bank, in lawful money of the United States and in same
day funds, an amount equal to such Lender’s Commitment Percentage then in effect of the amount of such unpaid reimbursement obligation with such payment to be made on the date of notification to such Lender, if such notification is made prior
to 12:00 noon (New York City time) on a Business Day and if such notification is made after 12:00 noon (New York City time) on a Business Day, such payment to be made on the immediately succeeding Business Day, and in each case with interest at the
Federal Funds Rate for each day after such payment is due until such amount is paid to such Issuing Bank. 
  
 (c) Promptly after the respective Issuing Bank receives a payment (including interest payments) on account of a reimbursement obligation
with respect to any Letter of Credit, such Issuing Bank shall promptly pay to each Lender which funded its participation therein, in lawful money of the United States, the Dollar equivalent of funds so received, in an amount equal to such
Lender’s Commitment Percentage thereof. 
  
 (d) Upon the request of any Lender, the Agent shall furnish, or cause the respective Issuing Bank to furnish, to such Lender copies of any outstanding Letter of Credit and any application and agreement for letter of credit as may be
reasonably requested by such Lender. 
  
 (e) The
obligation of each Lender to make payments under Section 3.05(b) shall be unconditional and irrevocable and shall remain in effect after the occurrence of the Termination Date with respect to any Letter of Credit that was Issued by the respective
Issuing Bank on behalf of the Borrower or any LC Subsidiary on or before the Termination Date and such payments shall be made under all circumstances, including, without limitation, any of the circumstances referred to in Section 3.07(b) other than
in connection with circumstances involving any willful misconduct or gross negligence of such Issuing Bank in Issuing a Letter of Credit or in determining whether documents presented under a Letter of Credit comply with the terms thereof.

  
 (f) If any payment received on account of any
reimbursement obligation with respect to a Letter of Credit and distributed to a Lender as a participant under Section 3.05(c) is thereafter recovered from the respective Issuing Bank in connection with any bankruptcy or insolvency proceeding
relating to the Borrower or an LC Subsidiary, each Lender which received such distribution shall, upon demand by such Issuing Bank, repay to such Issuing Bank such Lender’s ratable share of the amount so recovered together with an amount equal
to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered) of any interest or other amount paid or payable by such Issuing Bank in respect of the
total amount so recovered. 
  
 SECTION 3.06 Letter of Credit
Fees. 
  
 (a) Letter of Credit Fee.
The Borrower hereby agrees to pay to the Agent for the account of each Lender (in accordance with its Commitment Percentage), a letter of credit fee at a rate per annum equal in the case of Trade Letters of Credit to the 

  

 34 

 
Applicable Letter of Credit Fee in effect from time to time, and in the case of Standby Letters of Credit, to the Applicable Margin applicable to Eurodollar
Rate Advances in effect from time to time, on the maximum amount available to be drawn under each such Letter of Credit from time to time (the determination of such maximum amount to assume compliance with all conditions for drawing) from the date
of Issuance of each such Letter of Credit until the expiry date of each such Letter of Credit, payable in arrears on the last day of each January, April, July and October prior to the expiry date of each such Letter of Credit and on the expiry date
of each such Letter of Credit. 
  
 (b) Issuing
Bank Fees. The Borrower hereby agrees to pay to each Issuing Bank the fees and charges as agreed to from time to time by such Issuing Bank and the Borrower. 
  

SECTION 3.07 Indemnification; Nature of the Issuing Banks’ Duties. (a) The Borrower agrees to indemnify and save harmless the Agent, the
Issuing Banks and each Lender from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees) which the Agent, the respective Issuing Bank or such Lender may incur
or be subject to as a consequence, direct or indirect, of (i) the Issuance of any Letter of Credit or (ii) any action or proceeding relating to a court order, injunction, or other process or decree restraining or seeking to restrain an Issuing Bank
from paying any amount under any Letter of Credit; provided, that, an Issuing Bank shall not be indemnified for any of the foregoing caused by its gross negligence or willful misconduct. 
  
 (b) The obligations of the Borrower and each LC Subsidiary
hereunder with respect to Letters of Credit shall be unconditional and irrevocable, and shall be paid strictly in accordance with the terms hereof under all circumstances, including, without limitation, any of the following circumstances:

  
 (i) any lack of validity or enforceability of
any Letter of Credit or this Agreement or any agreement or instrument relating thereto; 
  
 (ii) the existence of any claim, setoff, defense or other right which the Borrower or any LC Subsidiary may have at any time against the
beneficiary, or any transferee, of any Letter of Credit, or the Issuing Banks, any Lender, or any other Person; 
  
 (iii) any draft, certificate, or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (iv) any lack of validity, effectiveness, or sufficiency of any instrument transferring or assigning or purporting to transfer or assign
any Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part; 
  
 (v) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or
of the proceeds thereof; 
  

 35 

 (vi) any exchange, release or non-perfection of any collateral, or any release or
non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any guarantee, for all or any of the obligations of the Borrower or an LC Subsidiary in respect of the Letters of Credit; 
  
 (vii) any change in the time, manner or place of payment of,
or in any other terms of, all or any of the obligations of the Borrower or any LC Subsidiary in respect of the Letters of Credit or any other amendment or waiver of or any consent to departure from all or any of this Agreement; 
  
 (viii) any failure of the beneficiary of a Letter of Credit
to strictly comply with the conditions required in order to draw upon any Letter of Credit; 
  
 (ix) any misapplication by the beneficiary of any Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

  
 (x) any other circumstance or happening
whatsoever, whether or not similar to the foregoing; 
  
 provided,
that, notwithstanding the foregoing, an Issuing Bank shall not be relieved of any liability it may otherwise have as a result of its gross negligence or willful misconduct. 
  
 SECTION 3.08 Increased Costs. (a) Change in Law. If, at any time after the date of this Agreement, any change
in any law or regulation or in the interpretation thereof by any court or administrative or governmental authority charged with the administration thereof shall either (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against letters of credit or guarantees issued by, or assets held by or deposits in or for the account of, the Issuing Banks or any Lender or (ii) impose on the Issuing Banks or any Lender any other condition regarding this Agreement or
the Letters of Credit or any collateral thereon, and the result of any event referred to in clause (i) or (ii) above shall be to increase the cost (other than an increase in taxes, which increase is dealt with exclusively in Article IV) to such
Issuing Bank or such Lender of issuing or maintaining, funding or purchasing participations in the Letters of Credit, then, upon demand by such Issuing Bank or such Lender (with a copy of such demand to the Agent), the Borrower shall pay to the
Agent for the account of such Issuing Bank or such Lender, from time to time as specified by such Issuing Bank or such Lender, additional amounts sufficient to compensate such Issuing Bank or such Lender for such increased cost; provided,
that, the Borrower shall have no obligation to reimburse an Issuing Bank or any Lender for increased costs incurred more than 60 days prior to the date of such demand. A certificate as to the amount of such increased cost setting forth the
basis for the calculation of such increased costs, submitted by an Issuing Bank or a Lender to the Borrower, shall be conclusive and binding for all purposes, absent manifest error. 
  
 (b) Capital. If, at any time after the date of this Agreement, an Issuing Bank or any Lender
determines that compliance with any law or regulation or any guideline or request from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of capital required or expected to be
maintained by such Issuing Bank or such Lender or any corporation controlling such 

  

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Issuing Bank or such Lender and that the amount of such capital is increased by or based upon the existence of such Issuing Bank’s or Lender’s
commitment hereunder and other commitments of this type or the issuance of (or commitment to purchase of participations in) the Letters of Credit (or similar contingent obligations), then, upon written demand by such Issuing Bank or such Lender
(with a copy of such demand to the Agent), the Borrower shall pay to the Agent for the account of such Issuing Bank or such Lender, from time to time as specified by such Issuing Bank or such Lender, additional amounts sufficient to compensate such
Issuing Bank or such Lender or such corporation in the light of such circumstances, to the extent that such Issuing Bank or such Lender reasonably determines such increase in capital to be allocable to the existence of such Issuing Bank’s or
such Lender’s commitment hereunder; provided, that, the Borrower shall have no obligation to pay such compensatory amounts that relate to an actual increase in the capital of such Issuing Bank or such Lender undertaken by such
Issuing Bank or such Lender more than 60 days prior to the date of such demand. A certificate as to such amounts setting forth the basis for the calculation of such amount submitted to the Borrower and the Agent by an Issuing Bank or a Lender shall
be conclusive and binding for all purposes, absent manifest error. 
  
 (c) Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 3.08 shall survive the payment in full (after the
Termination Date) of all Obligations. 
  
 (d)
Without affecting its rights under Sections 3.08(a) or 3.08(b) or any other provision of this Agreement, the Issuing Banks and each Lender agree that if there is any increase in any cost to or reduction in any amount receivable by the respective
Issuing Bank or Lender with respect to which the Borrower would be obligated to compensate such Lender pursuant to Sections 3.08(a) or 3.08(b), the respective Issuing Bank or Lender shall use reasonable efforts to select an alternative issuing
office or Applicable Lending Office, as the case may be, which would not result in any such increase in any cost to or reduction in any amount receivable by such Issuing Bank or such Lender; provided, however, that the Issuing Banks
and each Lender shall not be obligated to select an alternative issuing office or Applicable Lending Office if the respective Issuing Bank or such Lender determines that (i) as a result of such selection such Issuing Bank or such Lender would be in
violation of any applicable law, regulation, treaty, or guideline, or would incur additional costs or expenses or (ii) such selection would be inadvisable for regulatory reasons or inconsistent with the interests of such Issuing Bank or such Lender.

  
 SECTION 3.09 Uniform Customs and Practice. The Uniform
Customs and Practice for Documentary Credits as most recently published by the International Chamber of Commerce (“UCP”) shall in all respects be deemed a part of this Article III as if incorporated herein and shall apply to the
Letters of Credit. 
  
 SECTION 3.10 Reductions and Increases in
Issuing Commitment. (a) The Borrower shall have the right, upon at least three Business Days’ notice to the Issuing Banks and the Agent, to irrevocably reduce in whole or in part an Issuing Bank’s Issuing Commitment, provided,
that, each partial reduction shall be in the aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof and no such reduction shall reduce such Issuing 

  

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Bank’s Issuing Commitment below the then outstanding aggregate amount of all Letter of Credit Liability in respect of Letters of Credit Issued by such
Issuing Bank. 
  
 (b) The Borrower may at any
time, upon at least five Business Days’ prior written notice to the respective Issuing Bank and the Agent, increase the Issuing Commitment of an Issuing Bank and at the same time reduce by an equivalent amount the Issuing Commitment of one or
more of the other Issuing Banks; provided, that such notice is consented to by each Issuing Bank affected by such increase and decrease and provided, further, that the Agent shall record each such increase and decrease of
the Issuing Commitment of the respective Issuing Bank in the Register. 
  
 SECTION 3.11 Existing Letters of Credit. There currently are outstanding certain Standby Letters of Credit issued pursuant to the Existing Credit Agreement (collectively, the “Existing Letters of Credit”), the
outstanding balance of each of which is set forth on Schedule IV (as such Schedule may be modified between the date hereof and the fifth Business Day after the Effective Date). From and after the date hereof and upon fulfillment of the conditions to
initial Issuance specified in Section 5.01, each such Existing Letter of Credit shall be deemed and treated for all purposes hereof (including, without limitation, the calculation of fees payable under Section 3.06, and calculating the usage of the
respective Issuing Bank’s commitment under Section 3.01) as a “Letter of Credit” hereunder, any participation interest existing prior to the date hereof of any Lender in such Existing Letters of Credit shall, without further
action on its part, be deemed extinguished in full and each Lender, without further act on its part, shall be deemed to have purchased a participation in each such Existing Letter of Credit as provided in Section 3.05 in accordance with its
Commitment Percentage. 
  
 SECTION 3.12 Currency
Provisions. 
  
 (a) Equivalents. For
purposes of the provisions of Article II and III, (i) the equivalent in Dollars of any Alternative Currency shall be determined by using the mean of the bid and offer quoted spot rates at which the respective Issuing Bank’s or Swing Line
Lender’s principal office in New York, New York offers to exchange Dollars for such Alternative Currency in New York, New York at 11:00 A.M. (New York City time) on the Business Day on which such equivalent is to be determined and (ii) the
equivalent in any Alternative Currency of Dollars shall be determined by using the mean of the bid and offer quoted spot rates at which such Issuing Bank’s or Swing Line Lender’s principal office in New York, New York offers to exchange
such Alternative Currency for Dollars in New York, New York at 11:00 A.M. (New York City time) on the Business Day on which such equivalent is to be determined. 
  
 (b) Issuing Banks’ Commitment/Lenders’ Commitments. For purposes of determining the unused
portion of an Issuing Bank’s Issuing Commitment specified in Section 3.01 and of each Lender’s Commitment, the equivalent in Dollars of each Letter of Credit issued by an Issuing Bank in an Alternative Currency as determined on the date of
the Issuance of such Letter of Credit shall be the amount of such Issuing Bank’s Issuing Commitment used in connection with the Issuance of such Letter of Credit and the resulting proportionate amount of each Lender’s Commitment used, such
reduction to be calculated in accordance with its Commitment Percentage. Further adjustments shall 

  

 38 

 
be made with respect to the unused portion of an Issuing Bank’s Issuing Commitment to Issue Letters of Credit and each such Lender’s Commitment
based upon fluctuations thereafter in the value of the Alternative Currency of such Letter of Credit as provided in subsection (c) below. 
  
 (c) Mark to Market. If, on any day, the equivalent in Dollars of the aggregate face amount of all Letters of Credit then
outstanding (less the aggregate amount of cash collateral held by all the Issuing Banks with respect to outstanding Letters of Credit) exceeds the total of (x) the Commitments then in effect minus (y) the sum of the then outstanding aggregate amount
of all Borrowings and the aggregate Swing Line Commitment then in effect (computed without giving regard to usage), the Borrower shall, upon demand by the Agent, immediately deposit into the L/C Collateral Account, in Dollars, (i) the Dollar amount
of such excess plus (ii) a Dollar amount equal to the lesser of (A) $1,000,000 and (B) 10% of the Dollar equivalent of all then existing Letter of Credit Liability relating to Letters of Credit denominated in Alternative Currencies, which amount
shall be held by the Agent as cash collateral for the Borrowers’ and LC Subsidiaries’ obligations with respect to outstanding Letters of Credit. Amounts on deposit with the Agent as cash collateral in the L/C Collateral Account shall (so
long as no Default has occurred and is continuing) be released to the Borrower (1) if the Termination Date has not occurred, on the date on which the aggregate of all Letter of Credit Liability does not exceed 99% of the aggregate amount of the
Commitments then in effect (without regard to any usage thereof) minus the sum of the then outstanding aggregate amount of all Borrowings and the aggregate Swing Line Commitment then in effect (computed without giving regard to usage), or (2) if the
Termination Date has occurred, in accordance with Section 3.14. 
  
 (d) Monthly Report. Each Issuing Bank, on the last Business Day of each month until the Termination Date, shall calculate the Letter of Credit Liability on such date (converting any amounts of the Letter of
Credit Liability which are denominated in an Alternative Currency to Dollars for purposes of such calculation) and shall promptly send notice of such Letter of Credit Liability to the Agent, the Borrower and each Lender, and the Agent shall then
determine the excess amount, if any, referred to in the first sentence of Section 3.12(c) above and shall promptly inform the Borrower of such amount and the Borrower shall promptly upon receipt thereof make the payments provided for in Section
3.12(c) above if applicable. 
  
 SECTION 3.13 Dollar Payment
Obligation. Notwithstanding any other term or provision hereof to the contrary, if the Borrower or any LC Subsidiary fails to reimburse the respective Issuing Bank for any payment made by such Issuing Bank under a Letter of Credit denominated in
an Alternative Currency by the close of business on the Business Day when due at the Payment Office specified for such reimbursement payment, then the payment made by such Issuing Bank in such Alternative Currency shall be converted into Dollars
(the “Dollar Payment Amount”) by such Issuing Bank as provided for herein, and each of the Borrower and each LC Subsidiary for whose account such Letter of Credit was Issued agrees that it shall be unconditionally obligated to, and
shall immediately, reimburse such Issuing Bank the Dollar Payment Amount at such Issuing Bank’s then Payment Office for Dollars. 
  

 39 

 SECTION 3.14 Applications; Survival of Provisions; Cash Collateral. This Agreement shall control
over any provision of any application and agreement for Letters of Credit to the contrary, but additive or supplemental provisions of any such application and agreement shall apply to each Letter of Credit Issued pursuant to such application and
agreement. The provisions in this Article shall survive the Termination Date in respect of all Letters of Credit outstanding thereafter. On the Termination Date, the Borrower shall deposit into the L/C Collateral Account cash (in Dollars) in an
amount equal to the Letter of Credit Liability (less the amount, if any, then on deposit in the L/C Collateral Account) as collateral security for the reimbursement of drawings thereunder which shall be used to reimburse the respective
Issuing Bank promptly upon a drawing under its respective Letter of Credit, with the respective portion thereof to be returned promptly to the Borrower when the respective Letter of Credit expires. 
  
 SECTION 3.15 LC Subsidiaries. Any Subsidiary of the Borrower not an LC
Subsidiary on the date hereof may become an “LC Subsidiary” hereunder by delivering to the respective Issuing Bank (which shall promptly forward a copy thereof to each Lender and the Agent) an agreement, in form and substance satisfactory
to such Issuing Bank, wherein such Subsidiary agrees to be bound by all terms and provisions of this Agreement relating to Letters of Credit to be issued for the account of such Subsidiary and delivers a written consent of the Borrower assenting to
the inclusion of such Subsidiary as an “LC Subsidiary” hereunder. Unless objected to by the Majority Lenders within the 10 day period referred to below, such Subsidiary shall become an “LC Subsidiary” hereunder 10 days after such
Issuing Bank notifies the Borrower that such agreement and consent are in form and substance satisfactory to it; provided, that, no Subsidiary shall become an “LC Subsidiary” until such Issuing Bank shall have notified the
Borrower in writing that such agreement and consent are in form and substance satisfactory to such Issuing Bank. 
  
 ARTICLE IV 
  
 PAYMENTS, TAXES, EXTENSIONS, ETC. 
  
 SECTION 4.01
Payments and Computations. (a) Except as otherwise provided in Section 4.02, each Loan Party shall make each payment hereunder with respect to the Credit Extensions, the Lender Parties and the Agent free and clear of all claims, charges,
offsets or deductions whatsoever not later than: 
  
 (i) If such payment relates to Advances, 1:00 P.M. (New York City time) on the day when due in U.S. dollars to the Agent at its address referred to in Section 10.02 in same day funds; 
  
 (ii) If such payment relates to Letter of Credit fees or
other amounts due in respect of Letters of Credit (other than reimbursements for payments in an Alternative Currency made under Letters of Credit), 1:00 P.M. (New York City time) on the day when due in Dollars to the respective Issuing Bank at its
address referred to in Section 10.02 in same day funds; and 
  

 40 

 (iii) If such payment relates to reimbursement of a Letter of Credit denominated in an
Alternative Currency, (A) in such Alternative Currency, at the respective Issuing Bank’s Payment Office therefor so long as such payment is made by the close of business on the Business Day when due and (B) thereafter in Dollars (at the then
Dollar equivalent of the amount due on such preceding Business Day), by 1:00 P.M. (New York City time) to the respective Issuing Bank at its address referred to in Section 10.02 in same day funds as provided in Section 3.13. 
  
 The Agent or the respective Issuing Bank, as the case may be, will promptly
thereafter (if amounts are owed to the Lenders by the terms hereof) cause to be distributed like funds relating to the payment of principal or interest or reimbursement obligations or Letter of Credit fees or facility or utilization fees ratably
(other than amounts payable pursuant to Sections 2.04(c), 2.07, 2.11, 3.04(a), 3.08 or 4.02) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to such
Lender Party to be distributed to the appropriate Lender or Lenders and applied in accordance with the terms of this Agreement. Upon the Agent’s acceptance of an Assignment and Acceptance and recording of the information contained therein in
the Register pursuant to Section 10.07(d), from and after the effective date specified in such Assignment and Acceptance, the Agent or the respective Issuing Bank, as the case may be, shall make all payments hereunder in respect of the interest
assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 
  
 (b) Each of the Loan Parties hereby authorizes the Agent and
each Lender Party if and to the extent payment owed to the Agent or such Lender Party (including the immediate repayments of participations purchased and funded by a Lender pursuant to Section 3.05) is not paid when due hereunder to charge from time
to time against any or all of such Loan Party’s accounts with the Agent or such Lender Party any amount so due (it being understood and agreed that, notwithstanding anything in this Agreement or any of the other Loan Documents to the contrary,
accounts, deposits, sums, securities or other property of any Foreign Subsidiary or of any Subsidiary of a Foreign Subsidiary (including any Foreign Subsidiary or any Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower or LC Subsidiary)
will not serve at any time, directly or indirectly, to collateralize or otherwise offset the Obligations of the Borrower or any Domestic Subsidiary, and, in addition, unless otherwise agreed to by the Borrower, the accounts, deposits, sums,
securities or other property of a Foreign Subsidiary or Subsidiary of a Foreign Subsidiary will only serve to collateralize or offset the Obligations of another Foreign Subsidiary or Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower
or LC Subsidiary if such former Foreign Subsidiary or Subsidiary of a Foreign Subsidiary is owned by such latter Foreign Subsidiary or Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower or LC Subsidiary). 
  
 (c) All computations of interest based on the Base Rate and
of facility fees shall be made by the Agent or the respective Issuing Bank, as the case may be, on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest 

  

 41 

 
relating to utilization fees, or based on the Eurodollar Rate or the Federal Funds Rate shall be made by the Agent, and all computations of interest pursuant
to Section 2.07 shall be made by a Lender and all computations of Letter of Credit fees shall be made by the respective Issuing Bank, in each case on the basis of a year of 360 days for the actual number of days (including the first day but
excluding the last day) occurring in the period for which such interest or fees are payable. Each determination by the Agent, by an Issuing Bank or, in the case of Section 2.07, by a Lender of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error. 
  
 (d) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of
payment of interest or facility, utilization or Letter of Credit fee, as the case may be; provided, however, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next following
calendar month, such payment shall be made on the next preceding Business Day. 
  
 (e) Unless the Agent or the respective Issuing Bank, as the case may be, shall have received notice from a Loan Party prior to the date on
which any payment is due to the respective Lender Party or Lender Parties hereunder that such Loan Party will not make such payment in full, the Agent or such Issuing Bank may assume that the Loan Party has made such payment in full to the Agent or
such Issuing Bank on such date and the Agent or such Issuing Bank may, in reliance upon such assumption, cause to be distributed to such Lender Party or Lender Parties on such due date an amount equal to the amount then due such Lender Party or
Lender Parties. If and to the extent that the respective Loan Party shall not have so made such payment in full to the Agent or the respective Issuing Bank, as the case may be, each such Lender Party shall repay to the Agent or such Issuing Bank
forthwith on demand such amount distributed to such Lender Party together with interest thereon, for each day from the date such amount is distributed to such Lender Party until the date such Lender Party repays such amount to the Agent or such
Issuing Bank, at the Federal Funds Rate. 
  
 SECTION 4.02
Taxes. (a) Any and all payments by the Borrower, each Subsidiary Borrower and each LC Subsidiary hereunder shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender Party and the Agent, taxes imposed on its overall net income, and franchise taxes imposed on such Lender Party or the Agent, by the jurisdiction
under the laws of which such Lender Party or the Agent (as the case may be) is organized or any political subdivision thereof and, in the case of each Lender Party, taxes imposed on its overall net income, and franchise taxes imposed on such Lender
Party, by the jurisdiction of such Lender Party’s Applicable Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as
“Taxes”). If the Borrower, any Subsidiary Borrower or any LC Subsidiary shall be required by applicable Requirements of Law to deduct any Taxes from or in respect of any sum payable under any Loan Document to any Lender Party or the
Agent, (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable 

  

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under this Section 4.02) such Lender Party or the Agent (as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower, such Subsidiary Borrower or such LC Subsidiary, as the case may be, shall make such deductions, (iii) the Borrower, the respective Subsidiary Borrower or the respective LC Subsidiary, as the case may be,
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable Requirements of Law and (iv) as soon as practicable after the date of any payment of Taxes, the Borrower, the respective
Subsidiary Borrower or the respective LC Subsidiary, as the case may be, shall furnish to the Agent or the respective Issuing Bank, as the case may be, at its respective address referred to in Schedule I-B, the original or a certified copy of a
receipt evidencing payment thereof, to the extent such a receipt is issued therefore, or other evidence of payment thereof that is reasonably satisfactory to the Agent or such Issuing Bank. 
  
 (b) In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or from the execution, delivery or registration of, performance under or otherwise with respect to, this
Agreement or the Letters of Credit (hereinafter referred to as “Other Taxes”). 
  
 (c) The Borrower, the respective Subsidiary Borrower or the respective LC Subsidiary, as the case may be, will indemnify each of the
Lender Parties and the Agent for the full amount of Taxes and Other Taxes (including, without limitation, any Taxes of any kind imposed or asserted by any jurisdiction on amounts payable under this Section 4.02) imposed on or paid by such Lender
Party or the Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. A
reimbursement shall be made within 30 days from the date such Lender Party or the Agent (as the case may be) makes written demand therefor. The Agent and each Lender Party, as the case may be, shall give prompt (within 10 Business Days) notice to
the Borrower of the payment by the Agent or such Lender Party, as the case may be, of such amounts payable by the Borrower under the indemnity set forth in this subsection (c), and of the assertion by any governmental or taxing authority that such
amounts are due and payable, but the failure to give such notice shall not affect the Borrower’s, any Subsidiary Borrower’s or any LC Subsidiary’s obligations hereunder to reimburse the Agent and each Lender Party for such Taxes or
Other Taxes or Taxes imposed or asserted on amounts payable under this Section 4.02, except that none of the Borrower, any Subsidiary Borrower or any LC Subsidiary shall be liable for penalties or interest accrued or incurred from the commencement
of such 10 Business Day period until 10 Business Days after it receives the notice contemplated above, after which time it shall be liable for interest and penalties accrued or incurred prior to such 10 Business Day period and accrued or incurred
beginning 10 Business Days after such receipt. Neither the Borrower nor any Subsidiary Borrower shall be liable for any penalties, interest, expense or other liability with respect to such Taxes or Other Taxes after it has reimbursed the amount
thereof to the Agent or the appropriate Lender Party. 
  
 (d) Each Lender Party organized under the laws of a jurisdiction outside the United States, on or prior to the date of its execution and delivery of this Agreement in 

  

 43 

 
the case of each initial Lender Party and on the date of the Assumption Agreement or the Assignment and Acceptance, respectively, pursuant to which it
becomes a Lender Party in the case of each other Lender Party, and from time to time thereafter if requested in writing by the Borrower (but only so long as such Lender Party remains lawfully able to do so), shall provide the Borrower with Internal
Revenue Service form W-8BEN or W-8ECI, as appropriate, or any successor form prescribed by the Internal Revenue Service, certifying that such Lender Party is entitled to benefits under an income tax treaty to which the United States is a party which
reduces the rate of withholding tax on payments of interest payable by the Borrower or certifying that the interest is effectively connected with the conduct of a trade or business in the United States. Similarly, with respect to each Subsidiary
Borrower and LC Subsidiary organized under the laws of a jurisdiction outside of the United States, each Lender Party, on or prior to the date of its execution and delivery of this Agreement in the case of each initial Lender Party and on the date
of the Assumption Agreement or the Assignment and Acceptance, respectively, pursuant to which it becomes a Lender Party in the case of each other Lender Party, and from time to time thereafter if requested in writing by the Borrower, such Subsidiary
Borrower or such LC Subsidiary (but only so long as such Lender Party remains lawfully able to do so), shall provide the Borrower, such Subsidiary Borrower or such LC Subsidiary with appropriate documentation certifying applicable exemptions from
withholding tax imposed by any jurisdiction on payments of interest payable by such Subsidiary Borrower or LC Subsidiary. If the forms provided by a Lender Party at the time such Lender Party first becomes a party to this Agreement indicate a
withholding tax (including, without limitation, United States interest withholding tax) rate in excess of zero, withholding tax at such rate shall be considered excluded from “Taxes” unless and until such Lender Party provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such forms; provided, however, that, if at the date of
the Assumption Agreement or the Assignment and Acceptance, respectively, pursuant to which a Lender Party becomes a party to this Agreement, the Lender Party assignor was entitled to payments under Section 4.02(a) in respect of withholding tax with
respect to interest paid at such date, then, to such extent, the term Taxes shall include (in addition to withholding taxes that may be imposed in the future or other amounts otherwise includible in Taxes) withholding tax, if any, applicable with
respect to the Lender Party assignee on such date. 
  
 (e) For any period with respect to which a Lender Party has failed to provide the Borrower, any Subsidiary Borrower or any LC Subsidiary with the appropriate form described in Section 4.02(d) (other than if such failure is due
to a change in law occurring subsequent to the date on which a form originally was required to be provided, or if such form otherwise is not required under the first two sentences of Section 4.02(d)), such Lender Party shall not be entitled to
indemnification, and for purposes of clarification, none of the Borrower, any Subsidiary Borrower or any LC Subsidiary shall be required to increase any amounts payable to such Lender Party under Section 4.02(a) or 4.02(c) with respect to Taxes or
Other Taxes imposed by any jurisdiction (including, without limitation, the United States); provided, however, that should a Lender Party become subject to Taxes or Other Taxes because of its failure to deliver a form required 

  

 44 

 
hereunder, the Borrower shall take such steps as the Lender Party shall reasonably request to assist the Lender Party to recover such Taxes or Other Taxes.

  
 (f) Without affecting its rights under this
Section 4.02 or any provision of this Agreement, each Lender Party agrees that if any Taxes or Other Taxes are imposed and required by law to be paid or to be withheld from any amount payable to any Lender Party or its Applicable Lending Office with
respect to which the Borrower, any Subsidiary Borrower or any LC Subsidiary would be obligated pursuant to this Section 4.02 to increase any amounts payable to such Lender Party or to pay any such Taxes or Other Taxes, such Lender Party shall use
reasonable efforts to select an alternative Applicable Lending Office which would not result in the imposition of such Taxes or Other Taxes; provided, however, that no Lender Party shall be obligated to select an alternative Applicable
Lending Office if such Lender Party determines that as a result of such selection such Lender Party would be in violation of an applicable law, regulation, or treaty, or would incur unreasonable additional costs or expenses. 
  
 (g) In the event that an additional payment is made under
this Section 4.02 for the account of any Lender Party and such Lender Party, in its sole discretion, determines that it has finally and irrevocably received or been granted a credit against or release or remission for, or repayment of, any tax paid
or payable by it in respect of or calculated with reference to the deduction or withholding giving rise to such payment, such Lender Party shall, to the extent that it determines that it can do so without prejudice to the retention of the amount of
such credit, relief, remission or repayment, pay to the Borrower, Subsidiary Borrower or LC Subsidiary, as the case may be, such amount as such Lender Party shall, in its sole discretion, have determined to be attributable to such deduction or
withholding and which will leave such Lender Party (after such payment) in no worse position than it would have been in if the Borrower, Subsidiary Borrower or LC Subsidiary had not been required to make such deduction or withholding. Nothing herein
contained shall interfere with the right of a Lender Party to arrange its tax affairs in whatever manner it thinks fit nor oblige any Lender Party to claim any tax credit or to disclose any information relating to its tax affairs or any computations
in respect thereof or require any Lender Party to do anything that would prejudice its ability to benefit from any other credits, reliefs, remissions or repayments to which it may be entitled. 
  
 (h) Each Lender Party agrees with the Borrower that it will
take all reasonable actions by all usual means (i) to secure and maintain the benefit of all benefits available to it under the provisions of any applicable double tax treaty concluded by the United States of America to which it may be entitled by
reason of the location of such Lender Party’s Applicable Lending Office or place of incorporation or its status as an enterprise of any jurisdiction having any such applicable double tax treaty, if such benefit would reduce the amount payable
by the Borrower, any Subsidiary Borrower or any LC Subsidiary in accordance with this Section 4.02 and (ii) otherwise to cooperate with the Borrower to minimize the amount payable by the Borrower, any Subsidiary Borrower or any LC Subsidiary
pursuant to this Section 4.02; provided, however, that no Lender Party shall be obliged to disclose to the Borrower, any Subsidiary Borrower or any LC Subsidiary any information regarding its tax affairs or tax computations nor to
reorder its tax affairs or tax planning pursuant thereto. 
  

 45 

 (i) Without prejudice to the survival of any other agreement of the Borrower, any
Subsidiary Borrower or any LC Subsidiary hereunder, the agreements and obligations of the Borrower, the Subsidiary Borrowers and the LC Subsidiaries contained in this Section 4.02 shall survive the payment in full of the Obligations. 
  
 SECTION 4.03 Sharing of Payments, Etc.. If any Lender Party shall
obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances made by it or any Letter of Credit Liability of any Loan Party hereunder (other than pursuant to Section 2.07,
2.11, 3.08 or 4.02) in excess of its Commitment Percentage of any such payments on account of the Advances or such Letter of Credit Liability obtained by all the Lender Parties, such Lender Party shall forthwith purchase from the other Lender
Parties such participations in the Advances made by them or in such other Lender Parties’ participations purchased pursuant to Section 3.05, as the case may be, as shall be necessary to cause such purchasing Lender Party to share the excess
payment ratably with each other Lender Party, provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender Party, such purchase from each other Lender Party shall be rescinded
and each such Lender Party shall repay to the purchasing Lender Party the purchase price to the extent of such recovery together with an amount equal to each such Lender Party’s ratable share (according to the proportion of (i) the amount of
such Lender Party’s required repayment to (ii) the total amount so recovered from the purchasing Lender Party) of any interest or other amount paid or payable by the purchasing Lender Party in respect of the total amount so recovered. Each of
the Loan Parties agrees that any Lender Party so purchasing a participation or sub-participation from another Lender Party pursuant to this Section 4.03 may, to the fullest extent permitted by law, exercise all its rights of payment (including the
right of set-off) with respect to such participation or sub-participation as fully as if such Lender Party were the direct creditor of the respective Loan Party in the amount of such participation. 
  
 SECTION 4.04 Evidence of Debt/Borrowings. (a) Each Lender Party shall
maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender Party resulting from each Advance owing to such Lender Party from time to time, including the amounts of principal and
interest payable and paid to such Lender Party from time to time hereunder. 
  
 (b) The Register maintained by the Agent pursuant to Section 10.07(c) shall include a control account, and a subsidiary account for each Lender Party, in which accounts (taken together) shall be recorded (i) the date
and amount of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and the Interest Period applicable thereto, (ii) the terms of each Assignment and Acceptance delivered to and accepted by it, (iii) the amount of any
principal or interest due and payable or to become due and payable from the Borrower to each Lender Party hereunder, and (iv) the amount of any sum received by the Agent from the Borrower hereunder and each Lender Party’s share thereof.

  
 (c) The entries made in the Register shall be
conclusive and binding for all purposes, absent manifest error. 
  

 46 

 SECTION 4.05 Borrower Guaranty. 
  
 (a) Generally. The Swing Line Lenders and Issuing Banks may, from time to time, make Credit
Extensions for the account of each Subsidiary Borrower and LC Subsidiary as provided herein, provided, that, the repayment, reimbursement and other obligations of each such Subsidiary Borrower or LC Subsidiary in respect of such Credit
Extensions are and remain unconditionally guaranteed by the Borrower pursuant to this Section 4.05. 
  
 (b) Guaranty. The Borrower hereby unconditionally and irrevocably guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all obligations of the Subsidiary Borrowers and the LC Subsidiaries now or hereafter existing under this Agreement with respect to the Letter of Credit Liabilities and Credit Extensions issued for the
account of any of the Subsidiary Borrowers and LC Subsidiaries, including any extensions, modifications, substitutions, amendments and renewals thereof, whether for repayment or reimbursement obligations, interest, fees, expenses or otherwise (such
obligations being the “Subsidiary Obligations”), and agrees to pay any and all expenses (including reasonable counsel fees and expenses in accordance with Section 10.04) incurred by the Swing Line Lenders or the Lenders in enforcing
any rights hereunder with respect to the Subsidiary Obligations. Without limiting the generality of the foregoing, the Borrower’s liability shall extend to all amounts which constitute part of the Subsidiary Obligations and would be owed by any
Subsidiary Borrower or LC Subsidiary to the Swing Line Lenders, the Issuing Banks or the Lenders hereunder, or under the Credit Extensions issued for the account of a Subsidiary Borrower or LC Subsidiary, but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such Subsidiary Borrower or LC Subsidiary. 
  
 (c) Guaranty Absolute. The Borrower guarantees that the Subsidiary Obligations will be paid strictly in accordance with their
respective terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Swing Line Lenders, the Issuing Banks or the Lenders with respect thereto. The obligations
of the Borrower hereunder are independent of the Subsidiary Obligations and a separate action or actions may be brought and prosecuted against the Borrower to enforce the guaranty contained in this Section 4.05, irrespective of whether any action is
brought against any Subsidiary Borrower or LC Subsidiary or whether any Subsidiary Borrower or LC Subsidiary is joined in any such action or actions. The liability of the Borrower under the guaranty contained in this Section 4.05 shall be absolute
and unconditional irrespective of: 
  
 (i) any
lack of validity or enforceability of any of the Subsidiary Obligations or any agreement or instrument relating thereto against any Subsidiary Borrower or any other Person; 
  
 (ii) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Subsidiary Obligations or any other amendment or waiver of or any consent to departure with respect to Credit Extensions issued for 

  

 47 

 
the account of a Subsidiary Borrower or LC Subsidiary including, without limitation, any increase in the Subsidiary Obligations resulting from the Issuance
of Credit Extensions beyond the aggregate limitation specified in Section 2.01 to any and all Subsidiary Borrowers and LC Subsidiaries or otherwise; 
  
 (iii) any taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of or consent to
departure from any other guaranty, for all or any of the Subsidiary Obligations; 
  
 (iv) any manner of application of collateral, or proceeds thereof, to all or any of the Subsidiary Obligations, or any manner of sale or
other disposition of any collateral for all or any of the Subsidiary Obligations or any other assets of a Subsidiary Borrower or an LC Subsidiary; 
  
 (v) any change, restructuring or termination of the corporate structure or existence of a Subsidiary Borrower or an LC Subsidiary or any
Subsidiary Borrower’s or LC Subsidiary’s lack of corporate power or authority; or 
  
 (vi) any other circumstance which might otherwise constitute a defense available to, or a discharge of, a third party guarantor.

  
 The guaranty provided in this Section 4.05 shall continue to be effective or
be reinstated, as the case may be, if at any time any payment of any of the Subsidiary Obligations is rescinded or must otherwise be returned by any Swing Line Lender, any Issuing Bank or any Lender, respectively, upon the insolvency, bankruptcy or
reorganization of a Subsidiary Borrower or an LC Subsidiary or otherwise, all as though such payment had not been made. 
  
 (d) Waivers. The Borrower hereby waives, to the extent permitted by applicable law: 
  
 (i) any requirement that any Swing Line Lender or Issuing
Bank secure or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against any Subsidiary Borrower or LC Subsidiary or any other Person or any collateral; 
  
 (ii) any defense arising by reason of any claim or defense
based upon an election of remedies by any Swing Line Lender or Issuing Bank (including, without limitation, an election to nonjudicially foreclose on any real or personal property collateral) which in any manner impairs, reduces, releases or
otherwise adversely affects its subrogation, reimbursement or contribution rights or other rights to proceed against any Subsidiary Borrower or LC Subsidiary or any other Person or any collateral; 
  
 (iii) any defense arising by reason of the failure of any
Subsidiary Borrower or LC Subsidiary to properly execute any letter of credit application and agreement or otherwise comply with applicable legal formalities; 
  

 48 

 (iv) any defense or benefits that may be derived from California Civil Code §§
2808, 2809, 2810, 2819, 2845 or 2850, or California Code of Civil Procedure §§ 580a, 580d or 726, or comparable provisions of the laws of any other jurisdiction and all other suretyship defenses it would otherwise have under the laws of
California or any other jurisdiction; 
  
 (v) any
duty on the part of any Swing Line Lender or Issuing Bank to disclose to the Borrower any matter, fact or thing relating to the business, operation or condition of any Subsidiary Borrower or LC Subsidiary or its assets now known or hereafter known
by any Swing Line Lender or Issuing Bank; 
  
 (vi) all benefits of any statute of limitations affecting the Borrower’s liability under or the enforcement of the guaranty provided in this Section 4.05 or any of the Subsidiary Obligations or any collateral; 
  
 (vii) all setoffs and counterclaims; 
  
 (viii) promptness, diligence, presentment, demand for
performance and protest; 
  
 (ix) notice of
nonperformance, default, acceleration, protest or dishonor; 
  
 (x) except for any notice otherwise required by applicable laws that may not be effectively waived by the Borrower, notice of sale or other disposition of any collateral; and 
  
 (xi) notice of acceptance of the guaranty provided in this
Section 4.05 and of the existence, creation or incurring of new or additional Subsidiary Obligations. 
  
 ARTICLE V 
  
 CONDITIONS OF LENDING 
  
 SECTION 5.01 Conditions
Precedent to Effectiveness of this Agreement. This Agreement shall become effective on and as of the first date (the “Effective Date”) on which the following conditions precedent have been satisfied: 
  
 (a) The Agent shall have received the following in form and
substance satisfactory to the Agent: 
  
 (i)
Executed counterparts of this Agreement, sufficient in number for distribution by the Agent to each of the Lenders and the Borrower. 
  
 (ii) The notes to the order of the Lenders to the extent requested by any Lender pursuant to Section 2.02(g). 
  

 49 

 (iii) Certified copies of the resolutions of the board of directors (or persons
performing similar functions) of each domestic Loan Party approving the Agreement and each of the Loan Documents to which it is or is to be a party. 
  
 (iv) A copy of a certificate of the Secretary of State (or equivalent Governmental Authority) of the jurisdiction of organization of each
domestic Loan Party listing the certificate or articles of incorporation (or similar Constitutive Document) of each such Loan Party and each amendment thereto on file in the office of such Secretary of State (or such governmental authority) and
certifying (A) that such amendments are the only amendments to such Person’s certificate or articles of incorporation (or similar constitutive document) on file in its office, (B) if customarily available in such jurisdiction, that such Person
has paid all franchise taxes (or the equivalent thereof) to the date of such certificate and (C) that such Person is duly organized and is in good standing under the laws of the jurisdiction of its organization. 
  
 (v) A certificate of the Secretary or an Assistant Secretary
of each domestic Loan Party certifying the names and true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is a party and the other documents to be delivered hereunder. 
  
 (vi) A favorable opinion of General Counsel or Associate
General Counsel to the Loan Parties, substantially in the form of Exhibit D-1 and as to such other matters as any Lender through the Agent may reasonably request. 
  
 (vii) A favorable opinion of Skadden, Arps, Slate, Meagher & Flom LLP, special New York counsel to the
Loan Parties, in substantially the form of Exhibit D-2 and as to such other matters as any Lender through the Agent may reasonably request. 
  
 (viii) A favorable opinion of Shearman & Sterling LLP, special New York counsel to the Agent, in substantially the form of Exhibit E
and as to such other matters as any Lender through the Agent may reasonably request. 
  
 (ix) Evidence that the Borrower has terminated the commitments of the lenders, and has paid in full all debt outstanding, under the
Existing Credit Agreement and each of the Lenders that is a party to the Existing Credit Agreement hereby waives, by execution of this Agreement, the requirement of prior notice under the Existing Credit Agreement relating to the termination of
commitments thereunder. 
  
 (x) Such other
documents as the Agent may reasonably request. 
  
 (b) The Borrower shall have paid all accrued fees and expenses of the Agent and the Lenders (including the accrued fees and expenses of counsel to the Agent). 
  
 (c) All amounts owing by the Borrower or any of its Subsidiaries to the lenders and agents under the
Existing Credit Agreement shall have been, or concurrently 

  

 50 

 
with the initial extension of credit made on the Effective Date shall be, paid in full, and all commitments of the lenders under the Existing Credit
Agreement (except for the Existing Letters of Credit issued thereunder) shall have been, or concurrently with the initial extension of credit made on the Effective Date shall be, terminated in accordance with the terms of the Existing Credit
Agreement, and all guarantees given, and all security interests granted, in connection therewith shall have been terminated. 
  
 SECTION 5.02 Conditions Precedent to Each Advance/Issuance. The obligation of each Lender to make an Advance (including a Swing Line Advance),
including on the occasion of each Borrowing (including the initial Borrowing), and the obligation of each Issuing Bank to Issue each Letter of Credit (including the initial Letter of Credit) shall be subject to the further conditions precedent that
on the date of such Advance or Issuance the following statements shall be true (and each of the giving of the applicable Notice of Borrowing and the acceptance by the Borrower or the respective Subsidiary Borrower of the proceeds of such Advance and
the request for Issuance by the Borrower, a Subsidiary Borrower or an LC Subsidiary shall constitute a representation and warranty by the Borrower, such Subsidiary Borrower or such LC Subsidiary that on the date of such Borrowing or Issuance such
statements are true): 
  
 (a) The representations
and warranties contained in Section 6.01 (other than the representations and warranties contained in Section 6.01(e) and in Section 6.01(g)) are correct on and as of the date of such Borrowing or Issuance, before and after giving effect to such
Borrowing or Issuance, and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent that any such representation or warranty is stated to relate to an earlier date, in which case such representation
or warranty shall be true and correct on and as of such earlier date; 
  
 (b) No event has occurred and is continuing, or would result from such Borrowing or from the application of the proceeds therefrom or from such Issuance, which constitutes an Event of Default or Default; and

  
 (c) The making of such Advance will be in
compliance with the respective criteria set forth in Section 2.01(a) and Section 2.01(b)(i) and (ii), as the case may be, or the Issuance of such Letter of Credit will be in compliance with the criteria set forth in Section 3.01(a)(i) and (ii), as
the case may be. 
  
 ARTICLE VI 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 6.01 Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows: 
  
 (a) Corporate Status. Each Loan Party is duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization and possesses all powers (corporate or otherwise) and all
other 

  

 51 

 
authorizations and licenses necessary to carry on its business, except where the failure to so possess would not have a Material Adverse Effect. 

 
 (b) Corporate Authority; Non-Contravention. The
execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party and the consummation of the transactions contemplated thereby are within such Loan Party’s respective powers (corporate or otherwise), have been
duly authorized by all necessary action (corporate or otherwise), and do not (i) contravene such Loan Party’s Constitutive Documents, (ii) violate any Requirements of Law, (iii) conflict with or result in the breach of, or constitute a default
or require any payment to be made under, any material contract, loan agreement, indenture, mortgage, deed of trust, lease or other material instrument binding on or affecting any Loan Party or any of its properties or (iv) result in or require the
creation or imposition of any Lien upon or with respect to any of the properties of any Loan Party. No Loan Party is in violation of any such Requirements of Law or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust,
lease or other instrument, the violation or breach of which would be reasonably likely to have a Material Adverse Effect. 
  
 (c) Authorization. No authorization or approval or other action by, and no notice to or filing with, any governmental authority or
regulatory body is required for the due execution, delivery and performance by any Loan Party of the Loan Documents to which it is a party. 
  
 (d) Binding Effect. Each Loan Document is the legal, valid and binding obligation of the Loan Party thereto enforceable against
such Loan Party in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity (regardless
of whether considered in a proceeding in equity or at law). 
  
 (e) Litigation. There is no pending or, to the Borrower’s knowledge, threatened action or proceeding affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator,
(i) which has a reasonable probability (taking into account the exhaustion of all appeals and the assertion of all defenses) of having a Material Adverse Effect or (ii) which purports to affect the legality, validity or enforceability of any Loan
Document. 
  
 (f) Financial Statements.
The Consolidated balance sheets of the Borrower and its Subsidiaries as of January 31, 2004, and the related Consolidated statements of income and retained earnings of the Borrower and its Subsidiaries for the Fiscal Year then ended, certified by
Deloitte & Touche LLP, copies of which have been furnished to each Lender Party, fairly present the Consolidated financial condition of the Borrower and its Subsidiaries as at such date and the results of the operations of the Borrower and its
Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied. 
  

 52 

 (g) Material Adverse Change. Since January 31, 2004, there has been no Material
Adverse Change. 
  
 (h) Compliance With
Law. Each of Borrower and its Subsidiaries is in compliance with all Requirements of Law (including, without limitation, all applicable Environmental Laws) applicable to their respective properties, assets and business other than (i) where the
failure to so comply would (as to all such failures to comply in the aggregate) not have a Material Adverse Effect or (ii) as described on Schedule VIII. 
  
 (i) ERISA. Except as provided in Schedule VII: 
  
 (i) Neither the Borrower nor any ERISA Affiliate is a party or subject to, or has any obligation to make
payments, or incur any material Withdrawal Liability, to, any Multiemployer Plan. 
  
 (ii) Schedule B (Actuarial Information) to the most recently completed annual report (Form 5500 Series) for each Plan of the Borrower or
its Subsidiaries, copies of which have been or will be filed with the Internal Revenue Service, is complete and accurate in all material respects and fairly presents the funding status of such Plan, and since the date of such Schedule B there has
been no material adverse change in such funding status which would reasonably be likely to result in a Material Adverse Effect. 
  
 (iii) No ERISA Event has occurred with respect to any Plan that, when taken together with all other such ERISA Events for which liability
is reasonably expected to occur, would reasonably be likely to result in a Material Adverse Effect. 
  
 (iv) Neither the Borrower nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or has been terminated, within the meaning of Title IV of ERISA and no Multiemployer Plan is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 
  
 (j) Federal Reserve Regulations. The Borrower is not
engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Advance or drawing under any Letter of Credit will be used to purchase any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock. 
  
 (k) Investment Company. Neither the Borrower nor any of its Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. 
  
 (l) Disclosure. As of the Effective Date, neither the Information Memorandum nor any other information, exhibit or report furnished
by any Loan Party to the Agent or any Lender Party in connection with the negotiation and syndication of the 

  

 53 

 
Loan Documents or pursuant to the terms of the Loan Documents contained any untrue statement of a material fact or omitted to state a material fact necessary
to make the statements made therein not misleading; provided that all financial projections, if any, that have been or will be prepared by the Borrower and made available to the Joint Lead Arrangers, the Agent, any Lender or any potential Lender, or
any other party hereto, have been or will be prepared in good faith based upon reasonable assumptions, it being understood by the Lenders and all the other parties hereto that such projections are subject to significant uncertainties and
contingencies, many of which are beyond the Borrower’s control, and that no assurances can be given that the projections will be realized. 
  
 ARTICLE VII 
  
 COVENANTS OF THE BORROWER 
  
 SECTION 7.01 Affirmative Covenants. The Borrower will, unless the Majority Lenders shall otherwise consent in writing: 
  

(a) Preservation of Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its
existence (corporate or otherwise), rights (charter and statutory), and franchises except if, in the reasonable business judgment of the Borrower or such Subsidiary, as the case may be, it is in its best economic interest not to preserve and
maintain such rights or franchises and such failure to preserve and maintain such rights or franchises would not materially adversely affect the rights of the Lenders or the Issuing Banks hereunder or the ability of any Loan Party to perform its
obligations under the respective Loan Documents (it being understood that the foregoing shall not prohibit, or be violated as a result of, any transactions by or involving any Loan Party or other Subsidiary otherwise permitted under Section 7.02).

  
 (b) Compliance with Laws, Etc. Comply,
and cause each of its Subsidiaries to comply, in all material respects with all applicable laws (including, without limitation, ERISA and all Environmental Laws), rules, regulations and orders, such compliance to include, without limitation, paying
before the same become delinquent all taxes, assessments and governmental charges imposed upon it or upon its property except to the extent contested in good faith or where the failure to comply would not have a Material Adverse Effect. 

 
 (c) Visitation Rights. Permit, and cause each of
its Subsidiaries to permit, the Agent or any other Lender Party, or any agents or representatives thereof, from time to time, during normal business hours, and upon reasonable prior notice, to examine and make copies of and abstracts from its
records and books of account, to visit its properties, and to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with any of their respective directors, officers or agents. 
  
 (d) Maintenance of Books and Records. Keep, and cause
each of its Subsidiaries to keep, proper books of record and account, in which full and correct entries 

  

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shall be made of all financial transactions and the assets and business of the Borrower and each of its Subsidiaries in accordance with sound business
practice. 
  
 (e) Maintenance of Properties,
Etc. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties which are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted,
consistent with sound business practice, except where the failure to so maintain and preserve would not have a Material Adverse Effect. 
  
 (f) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain, insurance (other than earthquake or
terrorism insurance) in amounts, from responsible and reputable insurance companies or associations, with limitations, of types and on terms as is customary for the industry; provided, that, the Borrower and each of its Subsidiaries
may self-insure risks and liabilities in accordance with its practice as of the date hereof and may in addition self-insure risks and liabilities in amounts as are customarily self-insured by similarly situated Persons in the industry. 

 
 (g) Use of Proceeds. Use the proceeds of the
Advances and issuances of Letters of Credit solely to repay amounts owing under the Existing Credit Agreement and for general corporate purposes of the Borrower and its Subsidiaries, including, without limitation, commercial paper backup.

  
 SECTION 7.02 Negative Covenants. The Borrower will not,
without the written consent of the Majority Lenders: 
  
 (a) Liens, Etc. Create or suffer to exist, or permit any of its Subsidiaries to create or suffer to exist, any Lien (including an assignment of any right to receive income), other than: 
  
 (i) Permitted Liens; 
  
 (ii) Liens securing Debt in an aggregate outstanding
principal amount, or securing exposure under Hedge Agreements, when aggregated (without duplication) with the outstanding principal amount of all Debt incurred under Section 7.02(b)(viii), not in excess at any time of 7.5% of the Consolidated
Tangible Net Worth at the end of the immediately preceding Fiscal Quarter; 
  
 (iii) Liens upon or in any real property, equipment, fixed asset or capital asset acquired, constructed, improved or held by the Borrower or any Subsidiary in the ordinary course of business to secure the cost of
acquiring, constructing or improving such property, equipment or asset or to secure Debt incurred solely for the purpose of financing the acquisition of such property, equipment or asset, or Liens existing on such property, equipment or asset at the
time of its acquisition (other than any such Liens created in contemplation of such acquisition, construction or improvement that were not incurred to finance the acquisition, construction or improvement of such property, equipment or asset) or
extensions, renewals or replacements of any of the foregoing for the same or a lesser amount, provided, however, that no such Lien shall extend to or cover any 

  

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properties of any character other than the real property, equipment or asset being acquired, constructed or improved, and no such extension, renewal or
replacement shall extend to or cover any properties not theretofore subject to the Lien being extended, renewed or replaced; 
  
 (iv) Liens upon existing real property interests of the Borrower or any of its Subsidiaries to secure Debt in an aggregate principal
amount not in excess of $600,000,000; 
  
 (v)
Liens existing on property prior to the acquisition thereof by the Borrower or any of its Subsidiaries in the ordinary course of business or on property of a Person existing at the time such Person is merged into or consolidated with the Borrower or
any Subsidiary of the Borrower or becomes a Subsidiary of the Borrower; provided that such Liens were not created in contemplation of such merger, consolidation or acquisition and do not extend to any other assets of the Borrower or such
Subsidiary, and the replacement, extension or renewal of any such Lien upon or in the same property subject thereto or the replacement, extension or renewal (without increase in the amount, shortening the maturity or change in any direct or
contingent obligor if such change would be adverse to the Borrower) of the Debt permitted hereunder secured thereby; and 
  
 (vi) Liens securing obligations, in an aggregate amount outstanding at any time not in excess of $1,600,000,000, arising under or from
trade letters of credit issued (and outstanding) for the account of the Borrower or any of its Subsidiaries. 
  
 (b) Subsidiary Debt. Permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Debt, except: 
  
 (i) Debt under the Loan Documents; 
  
 (ii) Debt in respect of the letters of credit referred to in
Section 7.02(a)(vi); 
  
 (iii) Debt incurred
after the date of this Agreement and secured by Liens expressly permitted under Section 7.02(a)(iii) hereof in an aggregate principal amount not to exceed, when aggregated with the principal amount of all Debt incurred under clause (iv) of this
Section 7.02(b), $100,000,000 at any time outstanding; 
  
 (iv) Capital Leases incurred after the date of this Agreement which, when the principal amount thereof is aggregated with the principal amount of all Debt incurred under clause (iii) of this Section 7.02(b), do not exceed $100,000,000 at
any time outstanding; 
  
 (v) Debt referred to in
Section 7.02(a)(iv) in a principal amount not in excess of the amount referred to therein; 
  

 56 

 (vi) Debt existing on the Effective Date and described on Schedule IX (“Existing
Debt”), and any Debt extending the maturity of, or refunding, refinancing or replacing, in whole or in part, the Existing Debt; provided, that (A) the aggregate principal amount of such extended, refunding, refinancing or replacement
Debt shall not be increased above the principal amount of the Existing Debt and the premium, if any, thereon outstanding immediately prior to such extension, refunding, refinancing or replacement and (B) the direct and contingent obligors of the
Existing Debt shall not be changed as a result of or in connection with such extension, refunding, refinancing or replacement if such change would be adverse to the interests of the Borrower; 
  
 (vii) Debt owed to the Borrower or to any Subsidiary of the
Borrower; 
  
 (viii) Debt not otherwise permitted
under this Section 7.02(b) in an outstanding principal aggregate amount, when aggregated (without duplication) with the outstanding principal amount of all Debt secured by Liens permitted under Section 7.02(a)(ii), not in excess at any time of 7.5%
of the Consolidated Tangible Net Worth at the end of the immediately preceding Fiscal Quarter; 
  
 (ix) Obligations of a Subsidiary of the Borrower under direct or indirect guaranties in respect of, or obligations (contingent or
otherwise) to purchase or acquire, or otherwise to assure a creditor against loss in respect of, Debt of another Subsidiary of the Borrower permitted under clauses (i) through (viii) of this Section 7.02(b); and 
  
 (x) Endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business. 
  
 (c) Investments. Make, or permit any of its Subsidiaries to make, an investment in any Person that is not a Loan Party or Subsidiary of any Loan Party by way of the purchase of such Person’s capital stock
or securities or the making of capital contributions with respect thereto (an “Investment”) unless, on the date of and after giving pro forma effect to such investment, the Borrower would be in compliance with the financial
covenants set forth in Section 7.03. 
  
 (d)
Mergers, Etc. Merge or consolidate with or into any Person, or permit any of its Subsidiaries to do so, except (i) any Subsidiary of the Borrower may merge or consolidate with or into the Borrower or any Subsidiary of the Borrower,
(ii) the Borrower may merge with any other Person so long as the Borrower is the surviving corporation and (iii) in connection with any transaction permitted by Section 7.02(c) or (e). 
  
 (e) Sale of Assets. Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries
to sell, lease, transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any assets, in each case to any Person that is not a Loan Party or a Subsidiary of any Loan Party, except (i)
sales of inventory in the ordinary course of its business; (ii) the Borrower and its Subsidiaries 

  

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may, directly or indirectly through the Borrower or one or more of its Subsidiaries, sell, lease, transfer or otherwise dispose of any obsolete, damaged or
worn-out property or any other property that is otherwise no longer useful in the conduct of their business; (iii) the Borrower and its Subsidiaries may sell real property interests as part of one or more sale leaseback transactions provided that
the value of such real property interests shall not be in excess of $600,000,000 less, without duplication, the amount of Debt incurred as contemplated by Section 7.02(a)(iv) hereof; (iv) the Borrower and its Subsidiaries may sell cash equivalents
and other similar instruments in which it has invested from time to time; and (v) the Borrower and its Subsidiaries may sell, lease, transfer or otherwise dispose of property and assets so long as the aggregate fair market value of all such property
and assets sold, leased, transferred or otherwise disposed of pursuant to this clause (v) from the Effective Date to the date of determination does not exceed 25% of the Consolidated Total Assets. 
  
 (f) Change in Nature of Business. Make any material
change in the nature of the business of the Borrower and its Subsidiaries as conducted as of the date hereof. 
  
 SECTION 7.03 Financial Covenants. So long as any Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any Commitment hereunder, the Borrower will, unless it has the written consent of the Majority Lenders to do otherwise: 
  
 (a) Leverage Ratio. Maintain a Leverage Ratio as of
the last day of each Fiscal Quarter, determined on the basis of the most recently completed four consecutive Fiscal Quarters ending on such day, of not greater than 2.25:1.00. 
  
 (b) Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio as of the last day of each
Fiscal Quarter, determined on the basis of the most recently completed four consecutive Fiscal Quarters ending on such day, of not less than 2.00:1.00. 
  
 SECTION 7.04 Reporting Requirements. The Borrower will furnish to the Agent: 
  
 (a) As soon as available and in any event within 45 days after the end of each of the first three Fiscal
Quarters, Consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such Fiscal Quarters and Consolidated statements of income and retained earnings of the Borrower and its Subsidiaries for the period commencing at the end of
the previous Fiscal Year and ending with the end of such Fiscal Quarter, certified by the chief financial officer or treasurer of the Borrower and accompanied by a certificate of said officer stating that such have been prepared in accordance with
GAAP. 
  
 (b) As soon as available and in any
event within 90 days after the end of each Fiscal Year, a copy of the annual report for such year for the Borrower and its Subsidiaries, containing Consolidated financial statements of the Borrower and its Subsidiaries for such Fiscal Year certified
by Deloitte & Touche LLP or other independent public accountants reasonably acceptable to the Majority Lenders. 
  

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 (c) Together with the financial statements required by Sections 7.04(a) and (b), a
compliance certificate signed by the chief financial officer or treasurer of the Borrower stating (i) whether or not he or she has knowledge of the occurrence of any Event of Default or Default and, if so, stating in reasonable detail the facts with
respect thereto and (ii) whether or not the Borrower is in compliance with the requirements set forth in Section 7.03 and showing the computations used in determining such compliance or non-compliance. 
  
 (d) As soon as possible and in any event within five days
after a Responsible Officer becomes aware of each Event of Default and Default, a statement of a Responsible Officer of the Borrower setting forth details of such Event of Default or Default and the action which the Borrower has taken and proposes
to take with respect thereto. 
  
 (e) Promptly
after the sending or filing thereof, copies of all reports which the Borrower sends to any of its security holders, and copies of all reports and registration statements which the Borrower or any Subsidiary files with the Securities and Exchange
Commission (the “SEC”) or any national securities exchange. 
  
 (f) Promptly after the filing or receiving thereof, copies of all reports and notices which the Borrower or any Subsidiary files under ERISA with the Internal Revenue Service or the Pension Benefit Guaranty
Corporation or the U.S. Department of Labor or which the Borrower or any Subsidiary receives from such entities other than immaterial regular periodic notices and reports and notices and reports of general circulation. 
  
 (g) Within 120 days after the end of each Fiscal Year, a
summary, prepared by a Responsible Officer of the Borrower, of the Borrower’s (and its Subsidiaries’) major insurance coverages (and the amount of self-insurance) then in effect. 
  
 (h) Such other information respecting the condition or
operations, financial or otherwise, of the Borrower or any of its Subsidiaries as any Lender Party, through the Agent, may from time to time reasonably request. 
  

Notwithstanding the foregoing, the financial statements required to be delivered by the Borrower pursuant to Sections 7.04(a) and (b) and the reports and statements
required to be delivered by the Borrower pursuant to Section 7.04(e) shall be deemed to have been delivered (i) on the date on which the Borrower posts reports containing such financial statements or other materials on the Borrower’s website on
the internet at “www.gapinc.com” (or any successor page notified to the Lenders), (ii) when such reports containing such financial statements or other materials are posted on the SEC’s website on the internet at
“www.sec.gov” or (iii) with respect to financial statements required to be delivered under Sections 7.04(a) and (b), when such reports are delivered in accordance with Section 10.02(b); provided, however, that the Borrower
shall deliver paper copies of such financial statements or other materials to any Lender who so requests until the Borrower receives written notice from such Lender to cease delivering paper copies. 
  

 59 

 ARTICLE VIII 
  
 EVENTS OF DEFAULT 
  
 SECTION 8.01 Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 
  
 (a) Non-Payment. Any Loan Party shall fail to pay any
principal of any Advance or any reimbursement obligation under any Letter of Credit when the same becomes due and payable; or shall fail to pay any interest on any Advance, fees or any other amounts hereunder within five days after the same become
due and payable by it; or 
  
 (b)
Representations and Warranties. Any representation or warranty made by any Loan Party in any Loan Document (whether made on behalf of itself or otherwise) or by any Loan Party (or any of its officers) in connection with any Loan Document
shall prove to have been incorrect in any material respect when made; or 
  
 (c) Specific Covenants and Other Defaults. (i) Any Loan Party shall fail to perform or observe any covenant contained in Section 7.02 or 7.03, or any material provision of Section 4.05 shall for any reason
cease to be valid or binding on or enforceable against the Borrower or the Borrower shall so state in writing; or (ii) any Loan Party shall fail to perform or observe such other term, covenant or agreement contained in any Loan Document on its part
to be performed or observed if the failure to perform or observe such other term, covenant or agreement shall remain unremedied for 30 days after written notice thereof shall have been given to such Loan Party by any Lender Party; or 
  
 (d) Cross-Default. Any Loan Party shall fail to pay
any principal of or premium or interest on any Debt which is outstanding in a principal amount of at least $50,000,000 in the aggregate (but excluding Debt hereunder) of such Loan Party when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any such Debt shall be declared to be
due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case as a
result of a default thereunder and prior to the stated maturity thereof; or 
  
 (e) Insolvency Proceeding, Etc. Any Loan Party shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or against any Loan Party seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an 

  

 60 

 
order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in
the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or any Loan Party shall take any corporate action to authorize
any of the actions set forth above in this subsection (e); or 
  
 (f) Judgments. One or more judgments or orders for the payment of money in excess of $50,000,000 in the aggregate shall be rendered against any Loan Party and either (i) enforcement proceedings shall have been
commenced by any creditor upon such judgment or order or (ii) there shall be any period of forty-five (45) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; provided, however, that any such judgment or order shall not give rise to an Event of Default under this Section 8.01(f) if and so long as (A) the amount of such judgment or order which remains unsatisfied is covered by a valid
and binding policy of insurance between the respective Loan Party and the insurer covering full payment of such unsatisfied amount and (B) such insurer has been notified, and has not disputed the claim made for payment, of the amount of such
judgment or order; or 
  
 (g) Change of
Control. A Change of Control shall have occurred; or 
  
 (h) ERISA. Any of the following events or conditions shall have occurred and such event or condition, when aggregated with any and all other such events or conditions set forth in this subsection (h), has
resulted or is reasonably expected to result in liabilities of the Loan Parties and/or the ERISA Affiliates in an aggregate amount that would have a Material Adverse Effect: 
  
 (i) any ERISA Event shall have occurred with respect to a Plan; or 
  
 (ii) any of the Loan Parties or any of the ERISA Affiliates
shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan; or 
  
 (iii) any of the Loan Parties or any of the ERISA Affiliates shall have been notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization, is insolvent or is being terminated, within the meaning of Title IV of ERISA, and, as a result of such reorganization, insolvency or termination, the aggregate annual contributions of the Loan Parties and the
ERISA Affiliates to all of the Multiemployer Plans that are in reorganization, are insolvent or being terminated at such time have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such
Multiemployer Plans immediately preceding the plan year in which such reorganization, insolvency or termination occurs; or 
  

 61 

 (iv) any “accumulated funding deficiency” (as defined in Section 302 of
ERISA and Section 412 of the Internal Revenue Code), whether or not waived, shall exist with respect to one or more of the Plans; or 
  
 (v) or any Lien shall exist on the property and assets of any of the Loan Parties or any of the ERISA Affiliates in favor of the PBGC;

  
 then, and in any such event, the Agent shall at the request, or may with the
consent, of the Majority Lenders, by notice to the Borrower, (A) declare the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, (B) declare the Advances, all interest thereon and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower, (C) declare the obligation of the Issuing Banks to issue further Letters of Credit to be terminated, whereupon the same shall forthwith terminate, and/or (D) demand from time to time that the
Borrower, and if such demand is made the Borrower shall, pay to the Agent for the benefit of the Issuing Banks, an amount in immediately available funds equal to the then outstanding Letter of Credit Liability (plus the additional amounts specified
by Section 3.12(c), if applicable) which shall be held by the Agent (or the applicable Issuing Bank) as cash collateral in a cash collateral account under the exclusive control and dominion of the Agent (or applicable Issuing Bank) (an “L/C
Collateral Account”) and applied to the reduction of such Letter of Credit Liability as drawings are made on outstanding Letters of Credit; provided, however, that in the event of an actual or deemed entry of an order for
relief with respect to any Loan Party under the Federal Bankruptcy Code, the obligation of each Lender to make Advances shall automatically be terminated, the then outstanding Advances, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower and the obligation of the Issuing Bank to Issue Letters of Credit shall automatically be
terminated. 
  
 ARTICLE IX 
  
 THE AGENT 
  
 SECTION 9.01 Authorization and Action. Each Lender and each Issuing Bank hereby appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of the Advances), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully
protected in so acting or refraining from acting) upon the instructions of the Majority Lenders, and such instructions shall be binding upon all Lenders; provided, however, that the Agent shall not be required to take any action which
exposes the Agent to personal liability or which is contrary to this Agreement or applicable law. The Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement and any other
Loan Document unless the distribution of such notice is otherwise provided for herein or therein. 
  

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 Each Issuing Bank shall act on behalf of the Lenders with respect to any Letters of Credit Issued by it
and the documents associated therewith until such time and except for so long as the Agent may elect to act for each Issuing Bank with respect thereto; provided, however, that such Issuing Bank shall have all of the benefits and
immunities (i) provided to the Agent in this Article IX with respect to any acts taken or omissions suffered by such Issuing Bank in connection with Letters of Credit Issued by it or proposed to be Issued by it and the applications and agreements
for letters of credit pertaining to the Letters of Credit as fully as if the term “Agent,” as used in this Article IX, included such Issuing Bank with respect to such acts or omissions, and (ii) as additionally provided in this
Agreement with respect to such Issuing Bank. 
  
 SECTION 9.02
Agent’s Reliance, Etc. Neither the Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement, except for its or
their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, the Agent: (i) may treat the Lender which made any Advance (or purchased or funded a participation with respect to a Letter of Credit) as the
holder and owner of the Debt resulting therefrom until the Agent receives and accepts an Assignment and Acceptance entered into by such Lender, as assignor, and an Eligible Assignee, as assignee, as provided in Section 10.07; (ii) may consult with
legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (iii) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement on the part of the Borrower or to inspect the property (including the books and
records) of the Borrower or its Subsidiaries; (v) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished
pursuant hereto; and (vi) shall incur no liability under or in respect of this Agreement by acting upon any notice, consent, certificate or other instrument or writing (which may be by telecopier) believed by it to be genuine and signed or sent by
the proper party or parties. 
  
 SECTION 9.03 CUSA, Citibank
and Affiliates. With respect to CUSA’s Commitment and the Advances made by it, and with respect to Citibank as an Issuing Bank, CUSA and Citibank shall have the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not the Agent or an Issuing Bank, as the case may be; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include CUSA and Citibank in their individual
capacities. CUSA, Citibank and each of their respective Affiliates (and, as applicable, any of their respective officers and directors) may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of
business with, the Borrower, any of its Subsidiaries and any Person who may do business with or own securities of the Borrower or any such Subsidiary, all as if CUSA were not the Agent or Citibank were not an Issuing Bank, as the case may be, and
without any duty to account therefor to the Lenders. 
  

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 SECTION 9.04 Lender Credit Decision. Each Lender acknowledges that it has, independently and
without reliance upon the Agent, any Issuing Bank or any other Lender and based on the financial statements referred to in Section 6.01(f) and such other documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Agent, any Issuing Bank or any other Lender and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under this Agreement. 
  
 SECTION 9.05 Indemnification. 
  
 (a) Agent. The Lenders agree to indemnify the Agent (to the extent not reimbursed by the Borrower), ratably, according to their
respective Commitment Percentages, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by,
or asserted against the Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Agent under this Agreement, provided, that, no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the
Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the Agent is not reimbursed for such expenses by the Borrower. In the case of any
investigation, litigation or proceeding giving rise to any such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs expenses or disbursements, this Section 9.05(a) applies whether any such investigation, litigation
or proceeding is brought by the Agent, an Issuing Bank, any Lender or a third party. 
  
 (b) Issuing Bank. The Lenders agree to indemnify each Issuing Bank (to the extent not reimbursed by the Borrower), ratably
according to their respective Commitment Percentages, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against such Issuing Bank in any way relating to or arising out of this Agreement and the Letters of Credit issued by it or any action taken or omitted by such Issuing Bank under this Agreement or the Letters of
Credit Issued by it, provided, that, no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Issuing
Bank’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse such Issuing Bank promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees)
incurred by such Issuing Bank in connection with the preparation, execution, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or 

  

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otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or the Letters of Credit Issued by it, to the extent that the
Issuing Bank is not reimbursed for such expenses by the Borrower. In the case of any investigation, litigation or proceeding giving rise to any such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs expenses or
disbursements, this Section 9.05(b) applies whether any such investigation, litigation or proceeding is brought by the Issuing Bank, the Agent, any Lender or a third party. 
  
 SECTION 9.06 Successor Agent. The Agent may resign at any time by giving 30 days’ prior written notice thereof
to the Lenders and the Borrower and may be removed at any time with or without cause by the Majority Lenders; provided, that, the Agent may resign without having given such notice if it is required to do so as a matter of law. Upon any
such resignation or removal, the Majority Lenders, after consulting with the Borrower and giving due consideration to any successor agent recommended by the Borrower, shall have the right to appoint a successor Agent with the consent of the Borrower
(which shall not be unreasonably withheld). If no successor Agent shall have been so appointed by the Majority Lenders and consented to by the Borrower, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving
of notice of resignation or the Majority Lenders’ removal of the retiring Agent, then the retiring Agent may, after consulting with the Borrower and giving due consideration to any successor agent recommended by the Borrower, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank organized or licensed to do business under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $100,000,000. Upon
the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations under this Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of this Article IX shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Agent under this Agreement. 
  
 SECTION 9.07
Co-Syndication Agents and Joint Lead Arrangers. The financial institutions identified as Co-Syndication Agents and Joint Lead Arrangers herein shall not have any rights, powers, obligations, responsibilities or duties under this Agreement.
Without limiting the foregoing, any Lender so identified as Co-Syndication Agent or Joint Lead Arranger shall not have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not
rely, on any of the financial institutions so identified as Co-Syndication Agents or Joint Lead Arrangers in deciding to enter into this Agreement or in taking or not taking action hereunder. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 SECTION 10.01 Amendments, Etc. 
  
 (a) Majority Lenders. Except as is otherwise expressly provided in this Section 10.01, no amendment or waiver of any provision of
this Agreement, nor consent 

  

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to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders,
provided, however, that no amendment, waiver or consent by the Majority Lenders shall, unless in writing and signed by all the Lenders, do any of the following: (i) waive any of the conditions specified in Section 5.01 or 5.02, (ii)
increase the Commitments of the Lenders (other than as provided for in Section 2.04(b) and 2.04(c)), (iii) reduce the principal of, or interest on, the Advances made pursuant to Section 2.01(a) or any reimbursement obligation in respect of any
Letter of Credit or any fees or other amounts payable hereunder to the Lenders, (iv) postpone any date fixed for any payment of principal of, or interest on, the Advances made pursuant to Section 2.01(a) or any reimbursement obligation in respect of
any Letter of Credit or any fees or other amounts payable hereunder to the Lenders, (v) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances made pursuant to Section 2.01(a) or Letter of Credit
Liability hereunder, or the number of Lenders, which shall be required for the Lenders or any of them to take any action hereunder, or the definition of “Majority Lenders” hereunder (vi) release the Borrower as a guarantor under Section
4.05, or (vii) amend this Section 10.01(a). 
  
 (b) Agent and Issuing Banks. No amendment, waiver or consent given or effected pursuant to this Section 10.01 shall, unless in writing and signed by the Agent or each Issuing Bank, as the case may be, in addition to the Lenders
required above to take such action, affect the rights, obligations or duties of the Agent or such Issuing Bank, as the case may be, under this Agreement. 
  
 (c) Limitation of Scope. All waivers and consents granted under this Section 10.01 shall be effective only in the specific instance
and for the specific purpose for which given. 
  
 SECTION 10.02
Notices, Etc. (a) All notices and other communications provided for hereunder shall be in writing (including telecopier or electronic mail) and mailed, sent by overnight courier, telecopied, emailed, or delivered, if to the Borrower or any
other Loan Party, at its address at 2 Folsom Street, San Francisco, California, 94105, Attention: Treasurer, Telecopier: 415-427-4015, email sabrina_simmons@gap.com with a copy to 2 Folsom Street, San Francisco, CA 94105, Attention: General Counsel,
Telecopier: 415-427-6982, email lauri_shanahan@gap.com; and to 2 Folsom Street, San Francisco, CA 94105, Attention: Associate General Counsel, Telecopier: 415-427-7475, email tom_lima@gap.com; if to any Lender, at its Domestic Lending Office
specified opposite its name on Schedule I-B; if to any other Lender, at its Domestic Lending Office specified in the Assignment and Acceptance pursuant to which it became Lender; if to the Agent, at its address at 399 Park Avenue, New York, New York
10043, Attention: Credit Administration, Telecopier: 302-894-6120; and if to an Issuing Bank, at its Domestic Lending Office specified opposite its name in Schedule I-B; with a copy, in the case of notices to the Agent, to Citicorp North America,
Inc., One Sansome Street, San Francisco, California, Attention: Carolyn Wendler, Telecopier: 415-433-0307, email carolyn.wendler@citigroup.com, or, as to each party, at such other address or to such other person as shall be designated by such party
in a written notice to the other parties. All such notices and communications shall, when mailed, be effective three days after being deposited in the mails, when sent by overnight courier, be effective one day after being sent by overnight 

  

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courier, and when telecopied or sent by electronic mail, be effective when received (and, with respect to notices and communications sent by electronic mail,
upon confirmation by the recipient of the receipt of such notice or communication), respectively; and when delivered by hand, be effective upon delivery except that notices and communications to the Agent pursuant to Article II or IX and to an
Issuing Bank pursuant to Article III or IX shall not be effective until received by the Agent or such Issuing Bank, as the case may be. 
  
 (b) So long as Citibank or any of its Affiliates is the Agent, materials required to be delivered pursuant to Sections 7.04(a) and (b)
shall be delivered to the Agent in an electronic medium in a format reasonably acceptable to the Agent and the Lenders by email at oploanswebadmin@citigroup.com, provided, that any delay or failure to comply with the requirements of this
Section 10.02(b) shall not constitute a Default or an Event of Default hereunder. The Borrower agrees that the Agent may make such materials, as well as any other written information, documents, instruments and other material relating to the
Borrower, any of its Subsidiaries or any other materials or matters relating to this Agreement, the Notes or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Lenders by posting such notices
on Intralinks or a substantially similar electronic system (the “Platform”). The Borrower acknowledges that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and
other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications
or the Platform and each expressly disclaims liability for errors or omissions in the Communications or the Platform. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for
a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Agent or any of its Affiliates in connection with the Platform. 
  
 (c) Each Lender agrees that notice to it (as provided in the next sentence) (a “Notice”)
specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement; provided that if requested by any Lender the
Agent shall deliver a copy of the Communications to such Lender by email or telecopier. Each Lender agrees (i) to notify the Agent in writing of such Lender’s email address to which a Notice may be sent by electronic transmission (including by
electronic communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on record an effective email address for such Lender) and (ii) that any Notice may be sent
to such email address, delivery of any Notice to such email address being effective upon receipt by the sender of an email receipt of delivery or other email confirmation of delivery with respect thereto. 
  
 SECTION 10.03 No Waiver; Remedies. No failure on the part of any
Lender, the Issuing Bank or the Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  

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 SECTION 10.04 Costs and Expenses. 
  
 (a) The Borrower agrees to pay on demand all reasonable and documented costs and expenses of the Agent
incurred in connection with the preparation, execution, delivery, modification and amendment of this Agreement, and the other documents to be delivered hereunder, including, without limitation, the reasonable and documented fees and out-of-pocket
expenses of one counsel for the Agent (and appropriate local counsel) with respect thereto and with respect to advising the Agent as to its rights and responsibilities under this Agreement. The Borrower further agrees to pay on demand all costs and
expenses of the Agent, each Issuing Bank, each Swing Line Lender and each other Lender Party (including, without limitation, reasonable and documented fees and expenses of counsel), incurred in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of the Loan Documents, the Letters of Credit, the documents delivered in connection with the Swing Line Advances and the other documents to be delivered hereunder and thereunder. 
  
 (b) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance is made other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Sections 2.08(d), 2.10, 2.12, acceleration of the maturity of the Advances pursuant to Section
8.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last day of an Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 10.07 as a result of a
demand by the Borrower pursuant to Section 10.07(a), or if the Borrower fails for any reason to make any payment or prepayment of an Advance for which a notice of prepayment was given or that is otherwise required to be made, whether pursuant to
Sections 2.05, 2.10, 8.01 or otherwise, the Borrower shall, upon demand by any Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such Lender any amounts required to compensate such Lender for any additional
losses, costs or expenses which it may reasonably incur as a result of such payment or Conversion or such failure to pay or prepay, as the case may be, including, without limitation, any loss (including loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. 
  
 (c) The Borrower agrees to indemnify and hold harmless each of the Agent, each Lender, each Issuing Bank, the Joint Lead Arrangers, the
Co-Syndication Agents and each of their Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims (other than lost profits), damages,
liabilities and expenses (including, without limitation, reasonable and documented fees and disbursements of one counsel, absent a conflict of interest), which may be incurred by or asserted against any Indemnified Party in connection with or
arising out of any investigation, litigation, or proceeding (whether or not such Indemnified Party is party thereto) related to any acquisition or proposed acquisition by the Borrower, or by any Subsidiary of the Borrower, of all or any portion of
the stock or substantially all the assets of any Person or any use or proposed use of the Advances or Letters of Credit by any Loan Party, except to the extent such claim, damage, liability or expense shall have resulted from such Indemnified
Party’s gross negligence or willful 

  

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misconduct. In the event this indemnity is unenforceable as a matter of law as to a particular matter or consequence referred to herein, it shall be
enforceable to the full extent permitted by law. The indemnification provisions set forth above shall be in addition to any liability the Borrower may otherwise have. Without prejudice to the survival of any other obligation of the Borrower
hereunder, the indemnities and obligations of the Borrower contained in this Section 10.04 shall survive the payment in full of all the Obligations. 
  
 (d) The Borrower hereby acknowledges that the funding method by each Lender of its Advances hereunder shall be in the sole discretion of
such Lender. The Borrower agrees that for purposes of any determination to be made under Sections 2.07, 2.11(a), 2.12 or 10.04(b) each Lender shall be deemed to have funded its Eurodollar Rate Advances with proceeds of Dollar deposits in the London
interbank market. 
  
 SECTION 10.05 Right of Set-off. Upon
(i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 8.01 to authorize the Agent to declare the Advances due and payable pursuant to the
provisions of Section 8.01 or to demand payment of (or cash collateralization of) all then outstanding Letter of Credit Liability, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of
any Loan Party against any and all of the obligations of such Loan Party now or hereafter existing under this Agreement to such Lender (including, to the fullest extent permitted by law, obligations indirectly owed to such Lender by virtue of its
purchase of a participation or sub-participation of the Letter of Credit Liability pursuant to Section 3.05), whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured (it being
understood and agreed that, notwithstanding anything in this Agreement or any of the other Loan Documents to the contrary, accounts, deposits, sums, securities or other property of any Foreign Subsidiary or of any Subsidiary of a Foreign Subsidiary
(including any Foreign Subsidiary or any Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower or LC Subsidiary) will not serve at any time, directly or indirectly, to collateralize or otherwise offset the Obligations of the Borrower or
any Domestic Subsidiary, and, in addition, unless otherwise agreed to by the Borrower, the accounts, deposits, sums, securities or other property of a Foreign Subsidiary or Subsidiary of a Foreign Subsidiary will only serve to collateralize or
offset the Obligations of another Foreign Subsidiary or Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower or LC Subsidiary if such former Foreign Subsidiary or Subsidiary of a Foreign Subsidiary is owned by such latter Foreign
Subsidiary or Subsidiary of a Foreign Subsidiary that is a Subsidiary Borrower or LC Subsidiary). Each Lender agrees promptly to notify the Borrower and the Agent after any such set-off and application made by such Lender or any of its Affiliates,
provided, that, the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender and its Affiliates under this Section 10.05 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which such Lender and its Affiliates may have. 
  

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 SECTION 10.06 Binding Effect. This Agreement shall become effective when it shall have been
executed by the Borrower, each LC Subsidiary and each Subsidiary Borrower to be a party hereto on the date hereof, each Issuing Bank to be a party hereto on the date hereof, and the Agent and when the Agent shall have been notified by each Lender
that such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, each LC Subsidiary, each Subsidiary Borrower, each Issuing Bank, the Agent and each Lender and their respective successors and assigns,
except that the Borrower, each LC Subsidiary and each Subsidiary Borrower shall not have the right to assign its respective rights hereunder or any interest herein without the prior written consent of the Lenders. 
  
 SECTION 10.07 Assignments and Participations. (a) Each Lender may, and
if demanded by the Borrower (following a demand by such Lender pursuant to Section 2.07, 2.11, 3.08 or 4.02, upon at least 10 days’ notice to such Lender and the Agent) will, assign to one or more banks or other entities all or a portion of its
rights and obligations under this Agreement (including, without limitation, all or a portion, respectively, of its Commitment, the Advances owing to it, its Issuing Commitment and participations in Letter of Credit Liability and Swing Line
Advances); provided, however, that (i) each such respective assignment shall be of a percentage of all rights and obligations under this Agreement in respect of the assigning Lender’s Commitment, Advances, its Issuing Commitment
and participations in Letter of Credit Liability and Swing Line Advances, that is constant and not varying over time, (ii) the respective amounts of the rights and obligations under the Commitment of the assigning Lender being assigned pursuant to
each such assignment (determined as of the date of the Assignment and Acceptance with respect to such partial assignment) shall in no event be less than $5,000,000 (or an integral multiple of $500,000 in excess thereof), (iii) except during the
continuance of a Default, each such assignment shall be to an Eligible Assignee consented to by the Borrower (following reasonable advance written notice to the Borrower, which consent shall not be unreasonably withheld); provided,
that, the Borrower’s consent need not be obtained if such assignment is made to another Lender or to an Affiliate of the assigning Lender, provided that any Lender so assigning to any of its Affiliates shall give prompt notice thereof to
the Borrower and the Agent, (iv) each such assignment made as a result of a demand by the Borrower pursuant to this Section 10.07(a) shall be arranged by the Borrower (at its expense, including, without limitation, payment of the processing and
recordation fee referred to in subclause (vii) hereof) after consultation with the Agent and shall be either an assignment of all of the rights and obligations of the assigning Lender under this Agreement or an assignment of a portion of such rights
and obligations made concurrently with another such assignment or other such assignments which together cover all of the rights and obligations of the assigning Lender under this Agreement, (v) no Lender shall be obligated to make any such
assignment as a result of a demand by the Borrower pursuant to this Section 10.07(a) unless and until such Lender shall have received one or more payments from either the Borrower or one or more Eligible Assignees in an aggregate amount at least
equal to the aggregate outstanding principal amount of the Advances owing to such Lender, together with accrued interest thereon to the date of payment of such principal amount and all other amounts payable to such Lender under this Agreement, (vi)
each such assignment shall be consented to by each Issuing Bank and the Agent (which consent of the Agent shall not be unreasonably withheld) and (vii) the parties to each such assignment shall execute and deliver to the Agent, for its acceptance
and recording in the Register, an Assignment and Acceptance, together with a processing and recordation fee of $3,500; provided, that, no such fee shall be payable in connection with an assignment by an assigning Lender to an 

  

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Affiliate of such assigning Lender. Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment
and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of Lender hereunder and
(y) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement (and,
in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). 
  
 (b) By executing and delivering an Assignment and
Acceptance, the Lender assignor thereunder and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower, any LC
Subsidiary, any Subsidiary Borrower or any other Loan Party or the performance or observance by the Borrower, any LC Subsidiary, any Subsidiary Borrower or any other Loan Party of any of its obligations under this Agreement or any other instrument
or document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 6.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, any Issuing Bank, such assigning Lender or any other Lender and based
on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee
appoints and authorizes the Agent or the respective Issuing Bank to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Agent or such Issuing Bank by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement are required to be performed by it as Lender. 
  
 (c) The Agent shall maintain at its address referred to in
Section 10.02 a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances owing to, each Lender
from time to time and the names and addresses and the Issuing Commitments of each Issuing Bank from time to time (the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error,
and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register as Lender hereunder for all purposes of 

  

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this Agreement. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable
prior notice. 
  
 (d) Upon its receipt of an
Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, the Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit C, (i) accept
such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower and the Issuing Banks. 
  
 (e) Each Lender may sell participations to one or more banks or other entities in or to all or a portion of
its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it; provided, however, that (i) such Lender’s obligations under this Agreement
(including, without limitation, its Commitment) shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the owner of any Advance for
all purposes of this Agreement, and (iv) the Borrower, the Issuing Banks, the Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement,
provided, further, that, to the extent of any such participation (unless otherwise stated therein and subject to the preceding proviso), the purchaser of such participation shall, to the fullest extent permitted by law, have the
same rights and benefits hereunder as it would have if it were Lender hereunder; and provided, further, that each such participation shall be granted pursuant to an agreement providing that the purchaser thereof shall not have the
right to consent or object to any action by the selling Lender (who shall retain such right) other than an action which would (i) reduce principal of or interest on any Advance, any amount due hereunder with respect to the Letters of Credit or other
amounts or fees in which such purchaser has an interest, (ii) postpone any date fixed for payment of principal of or interest on any such Advance, such amounts due with respect to Letters of Credit or other amounts or such fees, (iii) extend the
Termination Date or (iv) release the Borrower as a guarantor under Section 4.05. 
  
 (f) Upon written request of the Borrower to a Lender, such Lender shall, to the extent consistent with the policies of such Lender, inform
the Borrower of the Dollar amount of any Full Term Participation (as hereinafter defined) that such Lender has entered into; provided, however, that no Lender shall be obligated to disclose such information if the disclosure thereof
would constitute a violation of law or regulation or violate any confidentiality agreement to which such Lender is subject. For the purposes of this subsection (f), “Full Term Participation” means a participation by a Lender to
another Person whereby such other Person has purchased (pursuant to a participation agreement) all or a portion of such Lender’s Commitment from the effective date of such participation agreement to the Termination Date. 
  
 (g) Notwithstanding anything herein contained to the
contrary, each Lender may assign any of its rights and obligations under this Agreement to any of its Affiliates without the consent of the Borrower or the Agent, provided that any Lender so assigning 

  

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to any of its Affiliates shall give prior notice thereof to the Borrower and the Agent; and each Lender or any of its Affiliates may assign any of its rights
(including, without limitation, rights to payment of principal and/or interest hereunder) under this Agreement to any Federal Reserve Bank without notice to or consent of the Borrower or the Agent. 
  
 (h) If any Lender requests any payment from the Borrower
under Section 2.07, 2.11, 3.08 or 4.02, then, subject to Section 10.07(a) and provided no Default or Event of Default shall have occurred and be continuing, the Borrower may request such Lender to (and, upon such request, such Lender, without any
obligation to pay any fees in respect thereof, shall) assign all of its rights and obligations under this Agreement to one or more Eligible Assignees acceptable to the Agent in accordance with Section 10.07(a) provided that at the time of any such
assignment the Borrower has paid to the Lender all amounts due it hereunder. 
  
 SECTION 10.08 Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
  
 SECTION 10.09 Independence of Provisions. All agreements and covenants hereunder shall be given independent effect
such that if a particular action or condition is prohibited by the terms of any such agreement or covenant, the fact that such action or condition would be permitted within the limitations of another agreement or covenant shall not be construed as
allowing such action to be taken or condition to exist. 
  
 SECTION 10.10 Confidentiality. Each Lender, each Issuing Bank and the Agent (for purposes of this Section 10.10, each a “Recipient”) agrees that it will not disclose to any third party any Confidential Information
provided to it by the Borrower; provided, that, the foregoing will not (i) restrict the ability of the Agent, the Issuing Banks, the Lenders and any loan participants from freely exchanging Confidential Information among themselves
(and their respective Affiliates, employees, attorneys, agents and advisors), (ii) restrict the ability to disclose Confidential Information to a prospective Eligible Assignee or participant, provided, that, such Eligible Assignee or
participant executes a confidentiality agreement with the selling Lender agreeing to be bound by the terms hereof prior to disclosure of Confidential Information to such Eligible Assignee or participant or (iii) prohibit the disclosure of
Confidential Information to the extent: (a) the Confidential Information is or has already become part of the public domain at the time of disclosure, by publication or otherwise, except by breach of this Section 10.10, (b) the Confidential
Information can be established by written evidence to have already been in the lawful possession of the Recipient prior to the time of disclosure; or (c) the Confidential Information is received by the Recipient from a third party not known to have
a similar restriction and without breach of this Section 10.10, or (d) the Confidential Information is required to be disclosed by order of a court of competent jurisdiction, administrative agency or governmental body, or by subpoena, summons or
other legal process, or by law, rule or regulation, or by applicable regulatory or professional standards provided that prior to such disclosure the Borrower and the non-disclosing party are each given reasonable advance notice of such order and an
opportunity to object to such disclosure; provided, that, no such notice or 

  

 73 

 
opportunity shall be required if disclosure is required in connection with an examination by a regulatory authority or is required in such circumstances
where the applicable Governmental Authority does not permit such notice or opportunity (it being understood the Recipient will inform such authority of the confidential nature of the Confidential Information being disclosed). 
  
 SECTION 10.11 Headings. Article and Section headings in this Agreement
are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 SECTION 10.12 Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to its subject matter and, except for
the letter agreements referred to in Sections 2.03(c) and 3.06(b), supersedes all previous understandings, written or oral, in respect thereof. 
  
 SECTION 10.13 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 SECTION 10.14 Consent to Jurisdiction. (a) Each of the parties hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York
State or Federal court sitting in the County of New York, The City of New York, in any action or proceeding arising out of or relating to the Loan Documents, and each of the parties hereby irrevocably agrees that all claims in respect of such action
or proceeding may be heard and determined in such New York State court or such Federal court. Each of the parties hereby irrevocably agrees, to the fullest extent each may effectively do so, that each will not assert any defense that such courts do
not have subject matter or personal jurisdiction of such action or proceeding or over any party hereto. Each of the parties hereby irrevocably consents to the service of copies of the summons and complaint and any other process which may be served
in any such action or proceeding by certified mail, return receipt requested, or by delivering of a copy of such process to such party at its address specified in Section 10.02 or by any other method permitted by law. Each of the parties hereby
agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or by any other manner provided by law. 
  
 (b) Nothing in this Section 10.14 shall affect the right of
any of the parties hereto to serve legal process in any other manner permitted by law or affect the right of any of the parties to bring any action or proceeding against any of the parties or their property in the courts of other jurisdictions.

  
 SECTION 10.15 GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, EXCEPT, IN THE CASE OF ARTICLE III, TO THE EXTENT SUCH LAWS ARE INCONSISTENT WITH THE UCP. 
  
 SECTION 10.16 WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE LC SUBSIDIARIES, THE SUBSIDIARY BORROWERS, THE AGENT,
THE LENDERS 

  

 74 

 
AND EACH ISSUING BANK HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE ADVANCES OR THE LETTERS OF CREDIT, OR THE ACTIONS OF THE AGENT, ANY LENDER OR THE ISSUING BANK IN CONNECTION WITH THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT THEREOF. 
  
 [The remainder of this page
intentionally left blank.] 
  

 75 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

			
	 THE BORROWER:

	
	 THE GAP, INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 THE LC SUBSIDIARIES:

	
	 BANANA REPUBLIC, LLC

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 GPS CONSUMER DIRECT, INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 GAP (CANADA) INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 GAP (FRANCE) S.A.S.

		
	 By:
	 	 
	 Name:
	 	 Lisa Mertens

	 Title:
	 	 President

  

			
	
	 GAP (JAPAN) K.K.

		
	 By:
	 	 
	 Name:
	 	 Thomas J. Lima

	 Title:
	 	 Director

	
	 GAP (NETHERLANDS) B.V.

		
	 By:
	 	 
	 Name:
	 	 Julie Kanberg

	 Title:
	 	 Director

	
	 GPS (GREAT BRITAIN) LIMITED

		
	 By:
	 	 
	 Name:
	 	 Byron Pollitt

	 Title:
	 	 Director

	
	 OLD NAVY (CANADA) INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 SUBSIDIARY BORROWERS:

	
	 GAP (CANADA) INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

	
	 GAP (FRANCE) S.A.S.

		
	 By:
	 	 
	 Name:
	 	 Lisa Mertens

	 Title:
	 	 President

  

			
	
	 GAP (JAPAN) K.K.

		
	 By:
	 	 
	 Name:
	 	 Thomas J. Lima

	 Title:
	 	 Director

	
	 GAP (NETHERLANDS) B.V.

		
	 By:
	 	 
	 Name:
	 	 Julie Kanberg

	 Title:
	 	 Director

	
	 GPS (GREAT BRITAIN) LIMITED

		
	 By:
	 	 
	 Name:
	 	 Byron Pollitt

	 Title:
	 	 Director

	
	 OLD NAVY (CANADA) INC.

		
	 By:
	 	 
	 Name:
	 	 Sabrina Simmons

	 Title:
	 	 Senior Vice President and Treasurer

  

			
	
	 THE AGENT:

	
	 CITICORP USA, INC.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	
	 THE CO-SYNDICATION AGENTS:

	
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 HSBC BANK USA, NATIONAL ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 JPMORGAN CHASE BANK

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	
	 THE SENIOR MANAGING AGENTS:

	
	 BANK OF NOVA SCOTIA

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 WILLIAM STREET COMMITMENT
 CORPORATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 U. S. BANK NATIONAL ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 WELLS FARGO BANK, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	
	 THE LENDERS:

	
	 KEYBANK NATIONAL ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 THE FIFTH THIRD BANK

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 FIRST NATIONAL BANK OF OMAHA

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	
	 THE ISSUING BANKS:

	
	 CITIBANK, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 HSBC BANK USA, NATIONAL ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 JPMORGAN CHASE BANK

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	
	 THE SWING LINE LENDERS:

	
	 CITIBANK, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 HSBC BANK USA, NATIONAL ASSOCIATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 JPMORGAN CHASE BANK

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 BANK OF NOVA SCOTIA

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

  
 SCHEDULES - REVOLVER CREDIT
AGREEMENT 
  

					
	 Schedule I-A
	 	-	 	Commitment Amounts
	 Schedule I-B
	 	-	 	List of Applicable Lending Offices
	 Schedule II
	 	-	 	Existing Liens
	 Schedule III
	 	-	 	Change of Control
	 Schedule IV
	 	-	 	Outstanding Balance of Existing Letters of Credit
	 Schedule V
	 	-	 	LC Subsidiaries
	 Schedule VI
	 	 	 	Subsidiary Borrowers
	 Schedule VII
	 	-	 	ERISA Matters
	 Schedule VIII
	 	-	 	Environmental Matters
	 Schedule IX
	 	-	 	Existing Debt

  

 Schedule I-A 
  
 COMMITMENT AMOUNTS 
  

							
	 Entity

	  	Commitment

	  	Issuing Commitment

	 Citicorp USA, Inc.
	  	$	105,000,000	  	 	N/A
	 Bank of America, N.A.
	  	$	105,000,000	  	$	187,500,000
	 HSBC Bank USA, National Association
	  	$	90,000,000	  	$	187,500,000
	 JPMorgan Chase Bank
	  	$	90,000,000	  	$	187,500,000
	 The Bank of Nova Scotia
	  	$	55,000,000	  	 	N/A
	 William Street Commitment Corporation
	  	$	55,000,000	  	 	N/A
	 U. S. Bank National Association
	  	$	55,000,000	  	 	N/A
	 Wells Fargo Bank, N.A.
	  	$	55,000,000	  	 	N/A
	 KeyBank National Association
	  	$	45,000,000	  	 	N/A
	 Wachovia Bank, National Association
	  	$	35,000,000	  	 	N/A
	 Fifth Third Bank
	  	$	35,000,000	  	 	N/A
	 First National Bank of Omaha
	  	$	25,000,000	  	 	N/A
	 Citibank, N.A.
	  	 	N/A	  	$	187,500,000
	 	  	
	
	  	
	

	 TOTAL
	  	$	750,000,000	  	$	750,000,000
	 	  	
	
	  	
	

 Schedule I-B 
  
 LIST OF APPLICABLE LENDING OFFICES 
  

					
	 Lender

	 	 Domestic Lending Office

	 	 Eurodollar Lending Office

	 Citicorp USA Inc./
 Citibank,
N.A.
	 	 2 Penns Way, Suite 110
 New Castle, DE
19720
 Attn: Carolyn Figueroa
 Tel: 302-894-6089
 Fax: 212-994-0847
	 	 2 Penns Way, Suite 110
 New Castle, DE
19720
 Attn: Carolyn Figueroa
 Tel: 302-894-6089
 Fax: 212-994-0847

			
	Bank of America, N.A.	 	 1850 Gateway Blvd
 Concord, CA 94520
 Attn: Nina Lemmer
 Tel: 925-675-7478
 Fax: 888-969-9281
	 	 1850 Gateway Blvd
 Concord, CA 94520
 Attn: Nina Lemmer
 Tel: 925-675-7478
 Fax: 888-969-9281

			
	HSBC Bank USA, National Association	 	 452 Fifth Avenue, 5th Floor
 New York, NY 10018
 Attn: Anne
Serewicz
 Tel: 212-575-2474
 Fax: 212-575-2479
	 	 452 Fifth Avenue, 5th Floor
 New York, NY 10018
 Attn: Anne
Serewicz
 Tel: 212-575-2474
 Fax:
212-575-2479

			
	JPMorgan Chase Bank	 	 270 Park Avenue, 4th Floor
 New York, NY 10017
 Attn: Barry
Bergman
 Tel: 212-270-0203
 Fax: 212-270-3279
	 	 270 Park Avenue, 4th Floor
 New York, NY 10017
 Attn: Barry
Bergman
 Tel: 212-270-0203
 Fax:
212-270-3279

			
	The Bank of Nova Scotia	 	 580 California Street, Suite 2100
 San Francisco, CA
94104
 Attn: Mark Sparrow
 Tel: 415-616-4108
 Fax: 415-397-0791
	 	 580 California Street, Suite 2100
 San Francisco, CA
94104
 Attn: Mark Sparrow
 Tel: 415-616-4108
 Fax: 415-397-0791

			
	William Street Commitment Corporation	 	 85 Broad Street, 6th Floor
 New York, NY 10004
 Attn: Philip F.
Green
 Tel: 212-357-7570
 Fax: 212-357-4597
	 	 85 Broad Street, 6th Floor
 New York, NY 10004
 Attn: Philip F.
Green
 Tel: 212-357-7570
 Fax: 212-357-4597

			
	U.S. Bank National Association	 	 555 S.W. Oak Street, Suite 400
 Mail Code
PD-OR-P4CB
 Portland, Oregon 97204
 Attn: Janet Jordan

Tel: 503-275-5871
 Fax: 503-275-5428
	 	 555 S.W. Oak Street, Suite 400
 Mail Code
PD-OR-P4CB
 Portland, Oregon 97204
 Attn: Janet Jordan

Tel: 503-275-5871
 Fax: 503-275-5428

			
	Wells Fargo Bank, N.A.	 	 201 Third Street
 San Francisco, CA 94103

Attn: Judy Chan
 Tel: 415-477-5433
 Fax: 415-979-0675
	 	 201 Third Street
 San Francisco, CA 94103

Attn: Judy Chan
 Tel: 415-477-5433
 Fax: 415-979-0675

			
	KeyBank National Association	 	 127 Public Square
 Cleveland, OH 44114
 Attn: Michael Vegh
 Tel: 216-689-7759
 Fax: 216-689-4981
	 	 127 Public Square
 Cleveland, OH 44114
 Attn: Michael Vegh
 Tel: 216-689-7759
 Fax: 216-689-4981

					
	 Lender

	 	 Domestic Lending Office

	 	 Eurodollar Lending Office

	Wachovia Bank, National Association	 	 1339 Chestnut Street, PA 4830
 Philadelphia, PA
14107
 Attn: Susan Vitale
 Tel: 267-321-6712
 Fax: 267-321-6700
	 	 1339 Chestnut Street, PA 4830
 Philadelphia, PA
14107
 Attn: Susan Vitale
 Tel: 267-321-6712
 Fax: 267-321-6700

			
	Fifth Third Bank	 	 38 Fountain Square Plaza
 Cincinnati, OH
45202
 Attn: Gary Losey
 Tel: 513-534-7757
 Fax: 513-534-5947
	 	 38 Fountain Square Plaza
 Cincinnati, OH
45202
 Attn: Gary Losey
 Tel: 513-534-7757
 Fax: 513-534-5947

			
	First National Bank of Omaha	 	 1620 Dodge Street
 Omaha, NE 68197
 Attn: Mark Baratta
 Tel: 402-633-3512
 Fax: 402-633-3519
	 	 1620 Dodge Street
 Omaha, NE 68197
 Attn: Mark Baratta
 Tel: 402-633-3512
 Fax: 402-633-3519

 Schedule II 
  
 EXISTING LIENS 
  
 Landlord Liens: 
  
 Lease Agreement,
between Metropolitan Life Insurance Company, on behalf of the Tower Fund, a commingled separate account, as Landlord and The Gap, Inc., as Tenant for Gateway Business Center, Building #1, City of Grove City, Ohio, dated January 29, 1998 (the Ohio
Catalog Center) 
  
 Amended and Restated Industrial Lease Agreement, between
Industrial Developments International, Inc., as Landlord and The Gap, Inc., as Tenant for 1200 Worldwide Blvd., Hebron, Kentucky, dated March 10, 1998 (the Gap Outlet Distribution Center) 
  
 Industrial Lease Agreement, between Industrial Developments International, Inc., as Landlord, and The Gap, Inc., as Tenant for 1405
Worldwide Blvd., Hebron, Kentucky, dated June 15, 2000 (the Old Navy Outlet Distribution Center) 

 Schedule III 
  
 CHANGE OF CONTROL 
  

	1.	Donald G. Fisher 

  

	2.	Doris F. Fisher 

  

	3.	Any person related by blood or marriage to any of the foregoing persons and any Person (as defined in this Agreement) as to which any of such persons has beneficial ownership of the
assets of such Person. 

  

	4.	The executive officers of The Gap, Inc. as of August 30, 2004. 

 Schedule IV 
  
 OUTSTANDING BALANCE OF EXISTING LETTERS OF CREDIT 
  

												
	 Bank

	  	LC Ref. No.

	  	 Beneficiary

	  	Issued Date

	  	Maturity

	  	Amount (USD)

	 B of A
	  	3046514	  	 Washington Intl. Insurance
	  	3/4/2002	  	Evergreen	  	$	30,000,000
	 B of A
	  	3049636	  	 Metropolitan Life Insurance Co.
	  	7/1/2002	  	Evergreen	  	$	484,200
	 	  	 	  	 	  	 	  	 	  	
	

	 	  	 	  	 	  	 	  	 	  	$	30,484,200

 Schedule V 
  
 LC SUBSIDIARIES 
  

	1.	Banana Republic, LLC 

  

	2.	GPS Consumer Direct, Inc. 

  

	3.	Gap (Canada) Inc. 

  

	4.	Gap (France) S.A.S. 

  

	5.	Gap (Japan) K.K. 

  

	6.	Gap (Netherlands) B.V. 

  

	7.	GPS (Great Britain) Limited 

  

	8.	Old Navy (Canada) Inc. 

 Schedule VI 
  
 SUBSIDIARY BORROWERS 

	

  

	 	1.	Gap (Canada) Inc. 

  

	 	2.	Gap (France) S.A.S. 

  

	 	3.	Gap (Japan) K.K. 

  

	 	4.	Gap (Netherlands) B.V. 

  

	 	5.	GPS (Great Britain) Limited 

  

	 	6.	Old Navy (Canada) Inc. 

 Schedule VII 
  
 ERISA MATTERS 
  
 None. 

 Schedule VIII 
  
 ENVIRONMENTAL MATTERS 
  
 None. 

 Schedule IX 
  
 EXISTING DEBT 
  

							
	 Borrower

	 	Amount

	  	 Type of Debt

	  	 Date Expires

	 Gap International BV
	 	Euro
226,593,000	  	5% 5-Year Notes	  	September 30, 2004
				
	 Gap (Japan) K.K.
	 	USD
50,000,000	  	6.25% 10-Year Notes	  	March 1, 2009
				
	 Gap (France) SAS
	 	Euro
2,145,619	  	Bank Guarantee for lease payments in France Societe Generale	  	Evergreen
				
	 GIS Singapore
	 	SGD
171,749	  	Bank Guarantee for lease payments in Citibank	  	Evergreen
				
	 GIS Holdings Ltd.
	 	HKD
5,749,506	  	Bank Guarantee for lease payments in Citibank	  	Evergreen
				
	 GIS Dubai
	 	USD
164,000	  	Continuing Guarantee for operating expenses in HSBC	  	Evergreen

 EXHIBIT A 
  
 NOTICE OF BORROWING 
  
 Citicorp USA, Inc., as Agent 
   for the Lenders Parties 

  to the Credit Agreement referred to below 
  
 Attention: 
  
 [Date] 
  
 Ladies and Gentlemen: 
  
 The undersigned, The Gap, Inc., refers to the Credit Agreement, dated as of
August 30, 2004 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, certain of the
undersigned’s Subsidiaries, certain Lenders parties thereto, certain Issuing Banks parties thereto, certain Co-Syndication Agents parties thereto, Citigroup Global Markets Inc. and Banc of America Securities LLC as Joint Lead Arrangers, and
Citicorp USA, Inc., as Agent for said Lenders and the Issuing Banks, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the Credit Agreement: 
  
 (i) The Business Day of the Proposed Borrowing is
                    , 200  . 
  

(ii) The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances] [Eurodollar Rate Advances]. 
  
 (iii) The aggregate amount of the Proposed Borrowing is
$                    . 
  
 (iv) [The Interest Period for each Eurodollar Rate Advance made as part of the Proposed Borrowing is [    month[s]].]

  
 The undersigned hereby certifies that the following statements
are true on the date hereof, and will be true on the date of the Proposed Borrowing: 
  
 (A) the representations and warranties contained in Section 6.01 of the Credit Agreement (other than, in the case of any Advance that does not increase the outstanding principal amount of the Advances, the
representations and warranties contained in Sections 6.01(e) and 6.01(g) of the Credit Agreement), before and after giving effect to the Proposed Borrowing and to the application of the proceeds therefrom, as though made on and as of such date;

 (B) no event has occurred and is continuing, or would result from such Proposed Borrowing or from the
application of the proceeds therefrom, which constitutes an Event of Default or Default; and 
  
 (C) the making of the Proposed Borrowing is in compliance with the respective criteria set forth in Section 2.01(a) of the Credit Agreement. 
  

			
	Very truly yours,
	
	THE GAP, INC.
		
	By	 	  

	Name:	 	 
	Title:	 	 

  

 Exh. A Page 2 

 EXHIBIT B 
  
 FORM OF PROMISSORY NOTE 
  

					
	 $                        
	  	 	 	Dated:                     
      , 200  

  
 FOR VALUE RECEIVED,
the undersigned, The Gap, Inc., a Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
[                                    ] (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date (as those terms are defined in the Credit Agreement referred to below) or prior thereto as provided in such Credit Agreement the aggregate principal
amount of the Advances (as defined below) owing to the Lender by the Borrower pursuant to the Credit Agreement dated as of August 30, 2004 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement,” terms defined therein, unless otherwise defined herein, being used herein as therein defined), among the Borrower, certain subsidiaries of the Borrower, the Lender and certain other banks and financial institutions party thereto
as Lenders, certain Issuing Banks, certain Co-Syndication Agents parties thereto, Citigroup Global Markets Inc. and Banc of America Securities LLC as Joint Lead Arrangers, and Citicorp USA, Inc. (“CUSA”), as Agent. 
  
 The Borrower also promises to pay interest on the unpaid principal amount of
each Advance from the date of such Advance until such principal amount is paid in full, at such interest rates, and payable at such times, as are specified in the Credit Agreement. Both principal and interest are payable in lawful money of the
United States of America to CUSA, as Agent, at 399 Park Avenue, New York, New York 10043 (or at such other address as the Agent may specify to the Borrower in writing) in same day funds, free and clear of and without any deduction, with respect to
the payee named above, subject to Section 4.02 of the Credit Agreement, for any and all present and future taxes, deductions, charges or withholdings, and all liabilities with respect thereto. 
  
 The Lender is authorized to record the date of each Advance or Conversion or
continuation thereof, each payment or prepayment of principal with respect thereto and, in the case of Eurodollar Rate Advances, each Interest Period and the interest rate applicable thereto, in the Lender’s internal records and, prior to any
transfer hereof, on a schedule annexed hereto and made a part hereof, and any such notation shall constitute prima facie evidence of the accuracy of the information so recorded. 
  
 This Promissory Note is issued pursuant to Section 2.02(g) of, and is entitled to the benefits of, the Credit Agreement. The
Credit Agreement, among other things, (i) provides for the making of advances (the “Advances”) by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the U.S. dollar amount first
above mentioned, the indebtedness of the Borrower resulting from each such Advance being evidenced by this Promissory Note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified. 

 The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to exercise,
and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of such rights. 
  
 This Promissory Note incorporates, and the Borrower and Lender hereby are subject to, the provisions set forth in Section 10.14 of the Credit Agreement.

  
 This Promissory Note shall be governed by, and construed in
accordance with, the laws of the State of New York, United States. 
  

			
	THE GAP, INC.
		
	By	 	  

	Name:	 	 
	Title:	 	 

  

 Exh. B Page 2 

 EXHIBIT C 
  
 FORM OF ASSIGNMENT AND ACCEPTANCE 
  
 Dated             , 200_ 
  
 Reference is made to the Credit Agreement, dated as of August 30, 2004 (the “Credit Agreement”), among The
Gap, Inc., a Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower, as “LC Subsidiaries” and “Subsidiary Borrowers,” as the case may be, the Lenders (as defined in the Credit
Agreement), certain Issuing Banks, certain Co-Syndication Agents parties thereto, Citigroup Global Markets Inc. and Banc of America Securities LLC as Joint Lead Arrangers, and Citicorp USA, Inc., as Agent for the Lenders and Issuing Banks (the
“Agent”). Terms defined in the Credit Agreement are used herein with the same meaning. 
  
              (the “Assignor”) and
             (the “Assignee”) agree as follows: 
  
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, such respective interests in
and to all of the Assignor’s rights and obligations under the Credit Agreement as of the date hereof which represent the respective percentage interests specified on Schedule 1 of all outstanding rights and obligations under the Credit
Agreement in respect of (a) the Assignor’s Commitment and the Advances owing to the Assignor and (b) the Issuing Commitment and participations in Letter of Credit Liability of the Assignor. After giving effect to such sale and assignment, (i)
the Assignee’s Commitment and the amount of the Advances owing to the Assignee and (ii) such Assignee’s Issuing Commitment and participations in Letter of Credit Liability will be as set forth, respectively, in Section 2 of Schedule 1.

  
 2. The Assignor (a) represents and warrants that it is the
legal and beneficial owner of the interests being assigned by it hereunder and that such interests are free and clear of any adverse claim; (b) makes no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant
thereto and (c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower, any Subsidiary Borrower or any LC Subsidiary or the performance or observance by the Borrower, any Subsidiary
Borrower or any LC Subsidiary of any of its respective obligations under the Credit Agreement or any other instrument or document furnished pursuant thereto. 
  
 3. The Assignee (a) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Section
6.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (b) agrees that it will, independently and without reliance upon the Agent,
the Issuing Banks, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, 

 continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (c) confirms that it
is an Eligible Assignee; (d) appoints and authorizes the Agent and the Issuing Banks to take such action on its behalf and to exercise such powers under the Credit Agreement as are delegated to the Agent and the Issuing Banks by the terms thereof,
together with such powers as are reasonably incidental thereto; (e) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as Lender; [and] (f)
specifies as its Domestic Lending Office (and address for notices) and Eurodollar Lending Office the offices set forth beneath its name on the signature pages hereof [and (g) attaches the forms prescribed by the Internal Revenue Service of the
United States certifying as to the Assignee’s status for purposes of determining exemption from United States withholding taxes with respect to all payments to be made to the Assignee under the Credit Agreement or such other documents as are
necessary to indicate that all such payments are subject to such rates at a rate reduced by an applicable tax treaty].* 
  
 4. Following the execution of this Assignment and Acceptance by the Assignor and the Assignee, it will be delivered to the Agent for acceptance and
recording by the Agent. The effective date of this Assignment and Acceptance shall be the date of acceptance thereof by the Agent, unless otherwise specified on Schedule 1 hereto (the “Effective Date”). 
  
 5. Upon such acceptance and recording by the Agent, as of the Effective Date,
(a) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of Lender thereunder and (b) the Assignor shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement. 
  
 6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the Agent shall make (and shall direct the Issuing Banks to make)
all payments under the Credit Agreement in respect of the interests assigned hereby (including, without limitation, all payments of principal, interest and utilization fees, facility fees and letter of credit facility fees with respect thereto) to
the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement for periods prior to the Effective Date directly between themselves. 
  
 7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the laws of the State of New York.

  
 IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed by their respective officers thereunto duly authorized, as of the date first above written, such execution being made on Schedule 1 hereto. 

	*	If the Assignee is organized under the laws of a jurisdiction outside the United States. 

  

 Exh. C - Page 2 

 Schedule 1 to 
 Assignment and Acceptance 
 Dated
            , 200_ 
  
 Section 1. 
  

			
	 Percentage Interest in Commitment and Advances:
	  	             %
	 Percentage Interest in participations in Letter of Credit Liability:
	  	             %

  
 Section 2. 
  

				
	 Assignee’s Commitment:
	  	$	                    
	 Issuing Commitment
	  	$	                    
	 Aggregate outstanding principal amount of Advances owing to Assignee:
	  	$	                    
	 Aggregate outstanding amount of Assignee’s participations in Letter of Credit Liability:
	  	$	                    

  
 Section 3. 
  

			
	 Effective Date1::
	 	            , 200_

  

			
	 [NAME OF ASSIGNOR]
  

	 By:
	 	  

	 Name
	 	 
	 Title:
  
	 	 
	 [NAME OF ASSIGNEE]
  

	 By:
	 	  

	 Name
	 	 
	 Title:
	 	 
	
	 Domestic Lending Office (and address for notices):

	 	 	 [Address]

	
	 Eurodollar Lending Office:

	 	 	 [Address]

	1	This date should be no earlier than the date of acceptance by the Agent. 

  

 Schedule 1 to Assignment and Acceptance – Page 1 

			
	 Accepted this              day

	 of
                    , 200  

	
	 CITICORP USA, INC., as Agent
  

	 By:
	 	  

	 Name
	 	 
	 Title:
	 	 
	
	 [Accepted this              day

	 of
                    , 200  

	
	THE GAP, INC.
		
	 By:
	 	  

	 Name
	 	 
	 Title:]2

	2	If required under Section 10.07 of the Credit Agreement 

  

 Schedule 1 to Assignment and Acceptance – Page 2 

 EXHIBIT F 
  
 FORM OF ASSUMPTION AGREEMENT 
  
 Dated:                     ,
200   
  
 The Gap, Inc. 
 900 Cherry Avenue 
 San Bruno, California 94066 
  
 Attention: Treasurer 
  
 Citicorp USA, Inc., 
     as
Agent for the Lender Parties 
     to the Credit Agreement referred to below 
 [399 Park Avenue 
 New York, New York 10043] 
  
 Attention: Credit Administration 
  
 Ladies and Gentlemen: 
  
 Reference is made to the Credit Agreement, dated as of August 30, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among The Gap, Inc., a Delaware corporation (the “Borrower”), certain Subsidiaries of the
Borrower, certain Lenders party thereto, certain Issuing Banks, certain Co-Syndication Agents parties thereto, Citigroup Global Markets Inc. and Banc of America Securities LLC as Joint Lead Arrangers, and Citicorp USA, Inc., as Agent for such
Lenders and the Issuing Banks. 
  
 The undersigned (the
“Assuming Lender”) proposes to become an Assuming Lender pursuant to Section 2.04(c) of the Credit Agreement and, in that connection, hereby agrees that it shall become a Lender for purposes of the Credit Agreement on the applicable
Commitment Increase Effective Date and that its Commitment shall as of such date be $                    . 
  
 The undersigned (a) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in Section 6.01(f) thereof, the most recent financial statements referred to in Section 7.04 thereof and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assumption Agreement; (b) agrees that it will, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (c) appoints and authorizes the Agent and the Issuing Banks to take such action as agent on its behalf and to exercise such
powers under the Credit Agreement as are delegated to the Agent and the Issuing Banks by the terms thereof, together with such powers as are reasonably incidental thereto; (d) agrees that it will perform in accordance with their terms all

 of the obligations which by the terms of the Credit Agreement are required to be performed by it as Lender; (e) confirms
that it is an Eligible Assignee; (f) specifies as its Applicable Lending Offices (and address for notices) the offices set forth beneath its name on the signature pages hereof; and (g) attaches the forms prescribed by the Internal Revenue Service of
the United States required under Section 4.02 of the Credit Agreement. 
  
 The effective date for this Assumption Agreement shall be the applicable Commitment Increase Effective Date. Upon delivery of this Assumption Agreement to the Borrower and the Agent, and satisfaction of all conditions imposed under Section
2.04(c) as of [date specified above], the undersigned shall be a party to the Credit Agreement and have the rights and obligations of a Lender thereunder. As of [date specified above], the Agent shall make all payments under the Credit Agreement in
respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and facility fees) to the Assuming Lender. 
  
 This Assumption Agreement may be executed in counterparts and by different parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart by telecopier shall be effective as delivery of a manually executed counterpart of this Assumption
Agreement. 
  

 Exh. F Page 2 

 This Assumption Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York. 
  

			
	Very truly yours,
	
	[NAME OF ASSUMING LENDER]
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	Domestic Lending Office (and address for notices):
	
	[Address]
	
	Eurodollar Lending Office
	
	[Address]

  
 Acknowledged and Agreed to:

  

			
	THE GAP, INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	CITICORP USA, INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 Exh. F Page 3

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