Document:

Exhibit 4.2

					
		 		 	Exhibit 4.2
	
	Incorporated Under the Laws of the State of Maryland
			
	     6.875% SERIES C CUMULATIVE
 REDEEMABLE PREFERRED STOCK
	 		 	 6.875% SERIES C CUMULATIVE
 REDEEMABLE PREFERRED STOCK

			
		 		 	 CUSIP 804395 70 5
 SUBJECT TO TRANSFER RESTRICTIONS
 - SEE LEGEND ON
REVERSE -
  
 SEE REVERSE FOR
CERTAIN
 DEFINITIONS

	
	Saul Centers, Inc.
			
	This Certifies that	 		 	
	
	SPECIMEN
			
	is the owner of	 		 	
	
	 FULLY PAID AND NON-ASSESSABLE SHARES OF

6.875% SERIES C CUMULATIVE REDEEMABLE PREFERRED STOCK, PAR VALUE $0.01, OF

	
	 Saul Centers, Inc., transferable on the books of the Corporation by the holder hereof in person, or by duly authorized
attorney upon surrender of the Certificate properly endorsed.
  
 This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar.
 Witness the seal of the Corporation and the signatures of the duly authorized officers.
  

Dated: February 12, 2013

	  

PRESIDENT
	 		 	 COUNTERSIGNED AND REGISTERED:
 CONTINENTAL STOCK TRANSFER & TRUST COMPANY
 (JERSEY
CITY, NJ)
 TRANSFER AGENT AND REGISTRAR

			
	  

SECRETARY
	 		 	  
 AUTHORIZED
SIGNATURE

 The following abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or regulations. 
  

													
	TEN COM	 	—	 	as tenants in common	 	UNIF GIFT MIN ACT -    	 	 	 	Custodian  	 	 
		 		 		 		 	   (Cust)   	 		 	   (Minor)   
	TEN ENT	 	—	 	as tenants by the entireties	 		 	under Uniform Gifts to Minors
		 		 		 		 	Act                           
                      
	JT TEN	 	—	 	 as joint tenants with right of
 survivorship and not as tenants
 in common
	 		 	(State)

 Additional abbreviations may also be used though not in the above list 

For value received
                                        
hereby sell, assign and transfer unto (PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:                                       
                                         
 ) 
  
  

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL CODE OF ASSIGNEE 

 
  
  

 
  

 
 Shares represented by the within Certificate, and
do hereby irrevocably constitute and appoint 
  
  

Attorney to transfer the said Shares on the books of the within named Corporation with full power of substitution in the premises. 

 

			
	Dated:                            
                     	  	 

 In presence of 
  

 
 SAUL CENTERS, INC.

 The securities represented by this certificate are subject to restrictions on transfer for the purpose of maintenance of the
Corporation’s status as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Except as otherwise provided pursuant to the Charter of the Corporation, no Person may
(i) Beneficially or Constructively Own shares of Equity Stock in excess of 2.5 percent (or such greater percentage as may be determined by the Board of Directors of the Corporation) of the Value of the outstanding shares of Equity Stock of the
Corporation (except in such circumstances as the Existing Holder Limit shall apply) or (ii) Beneficially Own Equity Stock which would result in the Corporation being “closely held” under Section 856(h) of the Code or otherwise
would cause the Corporation to fail to qualify as a REIT. Any Person who attempts or proposes to Beneficially or Constructively Own shares of Equity Stock in excess of the above limitations must notify the Corporation in writing at least fifteen
(15) days prior to the proposed or attempted transfer. If the transfer restrictions referred to herein are violated, the shares of Equity Stock represented hereby automatically will be held in trust by the Corporation, all as provided in the
Charter of the Corporation. All capitalized terms in this legend have the meanings identified in the Corporation’s Charter, as the same may be amended or restated from time to time, a copy of which, including the restrictions on transfer, will
be sent without charge to each stockholder who so requests. 
 The Corporation will furnish to any stockholder, upon request and
without charge, a full statement of the information required by Section 2-211(b) of the Maryland General Corporation Law with respect to the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations
as to distributions, qualifications, and terms and conditions of redemption of the stock of each class which the Corporation has authority to issue and, if the Corporation is authorized to issue any preferred or special class in series or classes,
(i) the difference in the relative rights and preferences between the shares of each series and class to the extent set, and (ii) the authority of the Board of Directors to set such rights and preferences of subsequent series and classes.
The foregoing summary does not purport to be complete and is subject to and qualified in its entirety by reference to the Charter of the Corporation, a copy of which will be sent without charge to each stockholder who so requests. Such request must
be made to the Secretary of the Corporation at its principal office.Third Amendment to Credit Agreement and Revolving Line of Credit Note

 Exhibit 10.26 
 THIRD AMENDMENT TO CREDIT AGREEMENT 
 THIS AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”) is entered into as of February 1, 2013, by and between BEBE STORES, INC., a California corporation (“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”). 

RECITALS 

WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that certain Credit Agreement between Borrower
and Bank dated as of May 15, 2009, as amended from time to time (“Credit Agreement”). 
 WHEREAS, Bank and
Borrower have agreed to certain changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said changes. 
 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows: 

1. Section 1.1 (a) is hereby amended by deleting “May 15, 2015” as the last day on which Bank will make advances
under the Line of Credit, and by substituting for said date “January 31, 2014,” with such change to be effective upon the execution and delivery to Bank of a promissory note dated as of February 1, 2013 (which promissory note shall
replace and be deemed the Line of Credit Note defined in and made pursuant to the Credit Agreement) and all other contracts, instruments and documents required by Bank to evidence such change. 

2. Section 4.9 is hereby deleted in its entirety, and the following substituted therefor: 

“SECTION 4.9. FINANCIAL CONDITION. Maintain Borrower’s consolidated financial condition as follows using
GAAP, consistently applied and used consistently with prior practices (except to the extent modified by the definitions herein) and with GAAP defined as generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other person as may be approved by a significant
segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 

(a) Tangible Net Worth not at any time less than the Required Amount, with the “Required Amount” defined
initially as $310,000,000.00, with such initial Required Amount to increase on a cumulative basis at and as of each fiscal year end of Borrower 

  
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to an amount equal to the sum of the then Required Amount plus an amount equal to fifty percent (50%) of Borrower’s consolidated net income for the fiscal year then ended, provided
however; that in no event shall any net loss suffered by Borrower at any time reduce the Required Amount. “Tangible Net Worth” shall be defined as the aggregate of total stockholders’ equity plus subordinated debt acceptable to Bank
less any intangible assets and less any loans or advances to, or investments in, any related entities or individuals. 
 (b) Liquid Assets (with “Liquid Assets” defined as the aggregate of unencumbered and unrestricted cash and readily marketable securities acceptable to Bank (and in no event to include
“auction rate securities”)) not less than $50,000,000.00 at any time thereafter.” 
 3. Except as specifically
provided herein, all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms defined in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and
the Credit Agreement shall be read together, as one document. 
 4. Borrower hereby remakes all representations and warranties
contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies that as of the date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or event
which with the giving of notice or the passage of time or both would constitute any such Event of Default. 
 IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first written above. 
  

											
		  		  		  	WELLS FARGO BANK,	  	
	BEBE STORES, INC.	  		  	NATIONAL ASSOCIATION	  	
						
	By:	  	 /s/ Walter Parks
	  		  	By:	  	 /s/ Rachelle Cayanan
	  	
		  	Walter Parks,	  		  		  	Rachelle Cayanan,	  	
		  	Chief Financial Officer,	  		  		  	Relationship Manager	  	
		  	Chief Operating Officer	  		  		  		  	

  
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 REVOLVING LINE OF CREDIT NOTE 

 

			
	$25,000,000.00	  	San Francisco, California
		  	February 1, 2013

 FOR VALUE RECEIVED, the undersigned BEBE STORES, INC. (“Borrower”)
promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office at 420 Montgomery Street, 9th Floor, San Francisco, California, or at such other place as the holder hereof may designate, in lawful money of the
United States of America and in immediately available funds, the principal sum of Twenty Five Million Dollars ($25,000,000.00), or so much thereof as may be advanced and be outstanding, with interest thereon, to be computed on each advance from the
date of its disbursement as set forth herein. 
 DEFINITIONS: 
 As used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth at the place defined: 

(a) “Business Day” means any day except a Saturday, Sunday or any other day on which commercial banks in California are
authorized or required by law to close. 
 (b) “Daily One Month LIBOR” means, for any day, the rate of interest equal
to LIBOR then in effect for delivery for a one (1) month period. 
 (c) “Fixed Rate Term” means a period
commencing on a Business Day and continuing for one (1) or three (3) months, as designated by Borrower, during which all or a portion of the outstanding principal balance of this Note bears interest determined in relation to LIBOR;
provided however, that no Fixed Rate Term may be selected for a principal amount less than Two Hundred Fifty Thousand Dollars ($250,000.00); and provided further, that no Fixed Rate Term shall extend beyond the scheduled maturity date hereof. If any
Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be extended to the next succeeding Business Day. 
 (d) “LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) and determined pursuant to the following formula: 

 

					
	LIBOR =	  	 Base LIBOR
	  	
		  	100% - LIBOR Reserve Percentage	  	

 (i) “Base LIBOR” means the rate per annum for United States dollar deposits quoted by Bank
(A) for the purpose of calculating effective rates of interest for loans making reference to LIBOR, as the Inter-Bank Market Offered Rate, with the understanding that such rate is quoted by Bank for the purpose of calculating effective rates of
interest for loans making reference thereto, on the first day of a Fixed Rate Term for delivery of funds on said date for a period of time approximately equal to the number of days in such Fixed Rate Term and in an

  
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amount approximately equal to the principal amount to which such Fixed Rate Term applies, or (B) for the purpose of calculating effective rates of interest for loans making reference to the
Daily One Month LIBOR Rate, as the Inter-Bank Market Offered Rate in effect from time to time for delivery of funds for one (1) month in amounts approximately equal to the principal amount of such loans. Borrower understands and agrees that
Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in its discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar
deposits on the London Inter-Bank Market. 
 (ii) “LIBOR Reserve Percentage” means the reserve percentage prescribed
by the Board of Governors of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such reserve
percentage during the applicable term of this Note. 
 INTEREST: 
 (a) Interest. The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year, actual days elapsed) either (i) at a fluctuating rate per annum
determined by Bank to be one and three quarters percent (1.75%) above the Daily One Month LIBOR Rate in effect from time to time, or (ii) at a fixed rate per annum determined by Bank to be one and three quarters percent (1.75%) above
LIBOR in effect on the first day of the applicable Fixed Rate Term. When interest is determined in relation to the Daily One Month LIBOR Rate, each change in the interest rate shall become effective each Business Day that the Bank determines that
the Daily One Month LIBOR Rate has changed. Bank is hereby authorized to note the date, principal amount and interest rate applicable thereto and any payments made thereon on Bank’s books and records (either manually or by electronic entry)
and/or on any schedule attached to this Note, which notations shall be prima facie evidence of the accuracy of the information noted. 
 (b) Selection of Interest Rate Options. At any time any portion of this Note bears interest determined in relation to LIBOR for a Fixed Rate Term, it may be continued by Borrower at the end of the
Fixed Rate Term applicable thereto so that all or a portion thereof bears interest determined in relation to the Daily One Month LIBOR Rate or to LIBOR for a new Fixed Rate Term designated by Borrower. At any time any portion of this Note bears
interest determined in relation to the Daily One Month LIBOR Rate, Borrower may at any time convert all or a portion thereof so that it bears interest determined in relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time as
Borrower requests an advance hereunder or wishes to select an interest rate determined in relation to the Daily One Month LIBOR Rate or a Fixed Rate Term for all or a portion of the outstanding principal balance hereof, and at the end of each Fixed
Rate Term, Borrower shall give Bank notice specifying: (i) the interest rate option selected by Borrower; (ii) the principal amount subject thereto; and (iii) for each LIBOR selection for a Fixed Rate Term, the length of the
applicable Fixed Rate Term. Any such notice may be given by telephone (or such other electronic method as Bank may permit) so long as, with respect to each LIBOR selection for a Fixed Rate Term, (A) if requested by Bank, Borrower provides to
Bank written confirmation thereof not later than three (3) Business Days after such notice is given, and (B) such notice is given to Bank prior to 10:00 a.m. on the first day of the 

  
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Fixed Rate Term, or at a later time during any Business Day if Bank, at its sole option but without obligation to do so, accepts Borrower’s notice and quotes a fixed rate to Borrower. If
Borrower does not immediately accept a fixed rate when quoted by Bank, the quoted rate shall expire and any subsequent LIBOR request from Borrower shall be subject to a redetermination by Bank of the applicable fixed rate. If no specific designation
of interest is made at the time any advance is requested hereunder or at the end of any Fixed Rate Term, Borrower shall be deemed to have made a Daily One Month LIBOR Rate interest selection for such advance or the principal amount to which such
Fixed Rate Term applied. 
 (c) Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in
addition to any other amounts due or to become due hereunder, any and all (i) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority
and related in any manner to LIBOR, and (ii) future, supplemental, emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by
any domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR to
the extent they are not included in the calculation of LIBOR. In determining which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its operations shall be conclusive
and binding upon Borrower. 
 (d) Payment of Interest. Interest accrued on this Note shall be payable on the first day of
each month, commencing February 1, 2013. 
 (e) Default Interest. From and after the maturity date of this Note, or
such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, or at Bank’s option upon the occurrence, and during the continuance of an Event of Default, the outstanding principal balance of this Note
shall bear interest at an increased rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to two percent (2.00%) above the rate of interest from time to time applicable to this Note. 

BORROWING AND REPAYMENT: 
 (a)
Borrowing and Repayment. Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note and of any
document executed in connection with or governing this Note; provided however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above. The unpaid principal balance of this obligation at
any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon by or for Borrower, which balance may be endorsed hereon from time to time by the holder. The outstanding principal balance
of this Note shall be due and payable in full on January 31, 2014. 
 (b) Advances. Advances hereunder, to the total
amount of the principal sum stated above, may be made by the holder at the oral or written request of (i) Walter Parks (or his 

  
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successor as Chief Financial Officer, as evidenced by a certificate of incumbency delivered, and in form and content acceptable, to Bank) acting alone, who is authorized to request advances and
direct the disposition of any advances until written notice of the revocation of such authority is received by the holder at the office designated above. The holder shall have no obligation to verify the identity of any person requesting an advance,
provided such person is believed in good faith by Bank to be the Chief Financial Officer of Borrower. 
 (c) Application of
Payments. Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof. All payments credited to principal shall be applied first, to the outstanding principal balance
of this Note which bears interest determined in relation to the Daily One Month LIBOR Rate, if any, and second, to the outstanding principal balance of this Note which bears interest determined in relation to LIBOR, with such payments applied to the
oldest Fixed Rate Term first. 
 PREPAYMENT: 
 (a) Daily One Month LIBOR Rate. Borrower may prepay principal on any portion of this Note which bears interest determined in relation to the Daily One Month LIBOR Rate at any time, in any amount
and without penalty. 
 (b) LIBOR. Borrower may prepay principal on any portion of this Note which bears interest
determined in relation to LIBOR at any time and in the minimum amount of Two Hundred Fifty Thousand Dollars ($250,000.00); provided however, that if the outstanding principal balance of such portion of this Note is less than said amount, the minimum
prepayment amount shall be the entire outstanding principal balance thereof. In consideration of Bank providing this prepayment option to Borrower, or if any such portion of this Note shall become due and payable at any time prior to the last day of
the Fixed Rate Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of the discounted monthly differences for each month from the month of prepayment through the month in
which such Fixed Rate Term matures, calculated as follows for each such month: 
  

	 	(i)	Determine the amount of interest which would have accrued each month on the amount prepaid at the interest rate applicable to such amount had it remained
outstanding until the last day of the Fixed Rate Term applicable thereto. 

  

	 	(ii)	Subtract from the amount determined in (i) above the amount of interest which would have accrued for the same month on the amount prepaid for the remaining
term of such Fixed Rate Term at LIBOR in effect on the date of prepayment for new loans made for such term and in a principal amount equal to the amount prepaid. 

 

	 	(iii)	If the result obtained in (ii) for any month is greater than zero, discount that difference by LIBOR used in (ii) above. 

  
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 Borrower acknowledges that prepayment of such amount may result in Bank incurring additional costs, expenses
and/or liabilities, and that it is difficult to ascertain the full extent of such costs, expenses and/or liabilities. Borrower, therefore, agrees to pay the above-described prepayment fee and agrees that said amount represents a reasonable estimate
of the prepayment costs, expenses and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of such prepayment fee shall thereafter bear interest until paid at a rate per annum two percent (2.00%) above the
Daily One Month LIBOR Rate in effect from time to time (computed on the basis of a 360-day year, actual days elapsed). 
 EVENTS OF DEFAULT:

 This Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement between Borrower and
Bank dated as of May 15, 2009, as amended from time to time (the “Credit Agreement”). Any default in the payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall
constitute an “Event of Default” under this Note. 
 MISCELLANEOUS: 

(a) Remedies. Upon the occurrence of any Event of Default, the holder of this Note, at the holder’s option, may declare all
sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which are expressly waived by Borrower, and the
obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate. Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses,
including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of the holder’s in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder’s rights and/or the
collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank
or any other person) relating to Borrower or any other person or entity. 
 (b) Obligations Joint and Several. Should
more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several. 

(c) Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California.

  
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 IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written
above. 
  

			
	BEBE STORES, INC.
		
	By:	 	 /s/ Walter Parks

		 	Walter Parks,
		 	Chief Financial Officer, Chief Operating Officer

  
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