Document:

Insurance Agreement

 EXHIBIT 10.4 
  
 EXECUTION COPY 
  

  
 INSURANCE AGREEMENT 
  
 among 
  
 MBIA INSURANCE CORPORATION, 
 as Note Insurer, 
  
 CAPITAL ONE
AUTO FINANCE, INC., 
 in its individual capacity and as Servicer, 
  
 CAPITAL ONE AUTO RECEIVABLES, LLC, 
 as Seller, 
  
 CAPITAL ONE AUTO
FINANCE TRUST 2005-D, 
 as Issuer 
  
 and 
  
 JPMORGAN CHASE BANK, N.A., 
 as Indenture Trustee 
  
 $1,400,000,000 
 Capital One Auto Finance Trust 2005-D 
 Asset Backed Notes, Series 2005-D

 Class A-1 Notes, Class A-2 Notes, 
 Class A-3 Notes, and Class A-4 Notes 
  
 Dated as of December 1 , 2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	ARTICLE I	  	 
	 DEFINITIONS
	  	1
		
	 ARTICLE II
 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	 
	  
			
	 Section 2.01.
	 	 Representations and Warranties of the COAF Companies
	  	9
			
	 Section 2.02.
	 	 Affirmative Covenants of the COAF Companies
	  	13
			
	 Section 2.03.
	 	 Negative Covenants of the COAF Companies
	  	16
			
	 Section 2.04.
	 	 Representation and Covenants of Indenture Trustee
	  	17
			
	 Section 2.05.
	 	 Representations, Warranties and Covenants of the Issuer
	  	17
			
	 Section 2.06.
	 	 Representations and Warranties of Note Insurer
	  	17
			
	 Section 2.07.
	 	 Covenant of Note Insurer; Confidentiality
	  	19
		
	 ARTICLE III
 THE POLICIES; REIMBURSEMENT
	  	 
			
	 Section 3.01.
	 	 Issuance of the Policies
	  	19
			
	 Section 3.02.
	 	 Payment of Fees and Premium
	  	22
			
	 Section 3.03.
	 	 Reimbursement and Additional Payment Obligation
	  	22
			
	 Section 3.04.
	 	 Indemnification; Limitation of Liability
	  	24
			
	 Section 3.05.
	 	 Payment Procedure
	  	26
			
	 Section 3.06.
	 	 Subrogation
	  	27
			
	 Section 3.07.
	 	 Reimbursement
	  	27
		
	 ARTICLE IV
 FURTHER AGREEMENTS
	  	 
	  
			
	 Section 4.01.
	 	 Effective Date; Term of the Insurance Agreement
	  	27
			
	 Section 4.02.
	 	 Further Assurances and Corrective Instruments
	  	27
			
	 Section 4.03.
	 	 Obligations Absolute
	  	28
			
	 Section 4.04.
	 	 Assignments; Reinsurance; Third-party Rights
	  	29
			
	 Section 4.05.
	 	 Liability of the Note Insurer
	  	30
			
	 Section 4.06.
	 	 Nonpetition Covenant
	  	30
			
	 Section 4.07.
	 	 Parties To Join in Enforcement Action
	  	30

					
	ARTICLE V
	DEFAULTS; REMEDIES
			
	 Section 5.01.
	 	Defaults	  	31
			
	 Section 5.02.
	 	Remedies; No Remedy Exclusive	  	32
			
	 Section 5.03.
	 	Waivers	  	33
	
	 ARTICLE VI
 MISCELLANEOUS

			
	 Section 6.01.
	 	Amendments, Etc	  	33
			
	 Section 6.02.
	 	Notices	  	33
			
	 Section 6.03.
	 	Severability	  	35
			
	 Section 6.04.
	 	Governing Law	  	35
			
	 Section 6.05.
	 	Consent to Jurisdiction	  	35
			
	 Section 6.06.
	 	Consent of the Note Insurer	  	36
			
	 Section 6.07.
	 	Counterparts	  	36
			
	 Section 6.08.
	 	Headings	  	36
			
	 Section 6.09.
	 	Trial by Jury Waived	  	36
			
	 Section 6.10.
	 	Limited Liability	  	36
			
	 Section 6.11.
	 	Entire Agreement	  	37
			
	 Section 6.12.
	 	Limitation of Liability	  	37

  

 ii 

 INSURANCE AGREEMENT 
  
 THIS INSURANCE AGREEMENT (this “Insurance Agreement”) is dated as of December 1, 2005 by and among
MBIA INSURANCE CORPORATION (the “Note Insurer”), CAPITAL ONE AUTO FINANCE, INC., in its individual capacity as seller under the Purchase Agreement (“COAF”) and as the Servicer (the “Servicer”), CAPITAL
ONE AUTO RECEIVABLES, LLC, as Seller (the “Seller”), CAPITAL ONE AUTO FINANCE TRUST 2005-D, as Issuer (the “Issuer”), and JPMORGAN CHASE BANK, N.A. in its capacity as indenture trustee (the “Indenture
Trustee”). 
  
 WHEREAS, the Indenture Trustee is
authenticating $1,400,000,000 principal amount of the Capital One Auto Finance Trust 2005-D, Asset Backed Notes, Series 2005-D, Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, and Class A-4 Notes, pursuant to an Indenture
as more specifically defined below. The Notes will be secured by the Trust Estate as defined in the Indenture; and 
  
 WHEREAS, the Issuer, Seller, COAF and Servicer have requested that the Note Insurer issue its Note Guaranty Insurance Policy (the “Note Insurance
Policy”) to guarantee payment of Insured Payments (as defined in Note Insurance Policy) with respect to the Notes, upon such terms and conditions as were mutually agreed upon by the parties and subject to the terms and conditions of the Note
Insurance Policy and has asked the Note Insurer to issue an Interest Rate Swap Insurance Policy (the “Swap Policy”, and together with the Note Insurance Policy, the “Policies”) and the Note Insurer has agreed to insure certain
amounts which may be due from the Owner Trustee on behalf of Capital One Auto Finance Trust 2005-D (the “Issuer”) to the Swap Provider under the Swap Agreement; and 
  
 WHEREAS, the parties hereto desire to specify the conditions precedent to the issuance of the Policies by the Note Insurer,
the indemnity and reimbursement to be provided by COAF and the Servicer in respect of amounts paid by the Note Insurer under the Policies and to provide for certain other matters; and 
  
 WHEREAS, the Note Insurer shall be paid an insurance premium pursuant to the Indenture, and the details of such premium are
set forth herein; and 
  
 WHEREAS, each COAF Company (as defined
below) has undertaken certain obligations in consideration for the Note Insurer’s issuance of the Policies; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 The terms defined in this Article I shall have the meanings provided herein for all purposes of this Insurance Agreement, unless the context clearly
requires otherwise, in both singular and plural form, as appropriate. Unless the context clearly requires otherwise, all 

 capitalized terms used herein and not otherwise defined in this Article I shall have the meanings assigned to them
in the Transaction Documents (as defined below). All words used herein shall be construed to be of such gender or number as the circumstances require. This “Insurance Agreement” shall mean this Insurance Agreement as a whole and as the
same may, from time to time hereafter, be amended, supplemented or modified. The words “herein,” “hereby,” “hereof,” “hereto,” “hereinabove” and “hereinbelow,” and words of similar import,
refer to this Insurance Agreement as a whole and not to any particular paragraph, clause or other subdivision hereof, unless otherwise specifically noted. 
  
 “Business Day” means any day other than a Saturday or a Sunday or a day on which banking institutions in the states of Delaware,
California, Texas, Virginia or New York, or in the state in which the Corporate Trust Office of the Indenture Trustee is located, are authorized or obligated by law, executive order or government decree to be closed. 
  
 “Capital One Information” means the information included in
the Prospectus, but excluding the Note Insurer Information and the Underwriter Information. 
  
 “COAF” means Capital One Auto Finance, Inc., a Texas corporation, and its successors and assigns. 
  
 “COAF Company” means COAF, in its individual capacity as seller under the Purchase Agreement and as Servicer, and the Seller. 

 
 “Commission” means the Securities and Exchange
Commission. 
  
 “Cumulative Net Charge-Off Ratio”
means, as of any Determination Date, the ratio of (a) the aggregate Principal Balance of Receivables that became Defaulted Receivables plus all the Cram Down Losses which occurred during the period from the Initial Cut-Off Date through the end
of the related Collection Period reduced by the amount of Liquidation Proceeds with respect to Defaulted Receivables received during such period which are applied to principal of the Defaulted Receivables to (b) the sum of (i) the initial
aggregate Principal Balance of the Initial Receivables plus (ii) the initial aggregate Principal Balance of the Subsequent Receivables as of their respective Subsequent Cut-Off Dates. 
  
 “Date of Issuance” means the date on which the Policies are
issued as specified therein. 
  
 “Default” means
any event which results, or which with the giving of notice or the lapse of time or both would result, in an Event of Default. 
  
 “Delinquency Ratio” means, as of a Determination Date, the ratio of (a) the aggregate Principal Balance of Receivables that were
Delinquent Receivables at the end of the related Collection Period to (b) the aggregate Principal Balance of all Receivables as of the first day of such related Collection Period. 
  
 “Delinquent Receivable” means any Receivable (other than a Defaulted Receivable) as to which any portion of
a scheduled payment remains unpaid for more than 60 days from the date on which it is due and payable. 
  

 2 

 “Event of Default” means any event of default specified in Section 5.01 of this
Insurance Agreement. 
  
 “Fee Letter” means the
fee letter dated as of December 1, 2005, from the Note Insurer to the Owner Trustee, the Servicer, and the Indenture Trustee. 
  
 “Financial Statements” means, with respect to COAF, the balance sheets and the statements of income, retained earnings and cash flows for
the 12-month period then ended and the notes thereto which have been provided to the Note Insurer. 
  
 “Fiscal Agent” means the Fiscal Agent, if any, designated pursuant to the terms the Note Policy or the Swap Policy, as applicable.

  
 “Fitch” means Fitch, Inc., and any successor
thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to refer to any other nationally recognized rating agency designated by the Note Insurer.

  
 “Indemnification Agreement” means that
certain Indemnification Agreement dated as of November 22, 2005 by and among the Note Insurer and Barclays Capital Inc. and Deutsche Bank Securities Inc., as Representatives of the several Underwriters (as defined therein). 
  
 “Indenture” means that certain Indenture dated as of
December 1, 2005, between the Issuer and the Indenture Trustee. 
  
 “Insurance Agreement Event of Default” means any of the following: 
  
 (a) any failure (i) to observe or perform any covenant or obligation of the Owner Trustee, COAF, the Seller, the Issuer or the
Servicer set forth herein, or in the Indenture, the Sale and Servicing Agreement or the Purchase Agreement which has not been cured within sixty (60) days (or such longer period not in excess of ninety (90) as may be reasonably necessary
to remedy such failure; provided that (i) that failure is capable of remedy within ninety (90) days or less and (ii) the Note Insurer consents in its sole discretion to that longer period) from the date of receipt by the Owner
Trustee, COAF, the Seller, the Issuer or the Servicer, as the case may be, of written notice from the Indenture Trustee or the Note Insurer of such breach or default and such breach or default could reasonably have a material adverse effect on the
interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion), or (ii) of any Person to deposit into the Collection Account or the Reserve Account all amounts required to be deposited therein by the
required deposit date and such failure could reasonably have a material adverse effect on the interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion) and such failure has continued for a period of
at least five (5) Business Days (A) after notice is received by such Person from the Indenture Trustee or the Note Insurer or (B) after discovery of such failure by a responsible officer of such Person; provided, however, that no
Insurance Agreement Event of Default will result from the breach by the Servicer of any covenant for which the repurchase of the affected Receivables is specified as the sole remedy pursuant to Section 3.6 of the Sale and Servicing Agreement
and such repurchase takes place within the time frame required by Section 2.3 and Section 3.6 of the Sale and Servicing Agreement; 
  

 3 

 (b) any representation, warranty or statement of the Indenture Trustee, the Servicer, the
Owner Trustee, COAF, the Issuer or the Seller (other than representations and warranties under Section 3.2 of the Purchase Agreement and Section 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and Servicing Agreement) contained herein or in the
Indenture or in the Sale and Servicing Agreement, the Purchase Agreement or in any report, document or certificate delivered pursuant to the foregoing agreements shall prove to be incorrect in any material respect as of the time when the same shall
have been made and, within sixty (60) days (or such longer period not in excess of ninety (90) as may be reasonably necessary to remedy such failure; provided that (i) that failure is capable of remedy within ninety (90) days or
less and (ii) the Note Insurer consents in its sole discretion to that longer period) after written notice thereof shall have been given to the Indenture Trustee and the defaulting party (if not the Indenture Trustee) by the Servicer, the Note
Insurer, the Indenture Trustee or by Noteholders constituting Noteholder Approval, the circumstances or condition in respect of which such representation, warranty or statement was incorrect shall not have been eliminated or otherwise cured or
waived by the Note Insurer and could reasonably have a material adverse affect on the interests of the Note Insurer or the Noteholders (as determined in the Note Insurer’s sole discretion); 
  
 (c) the cessation of a valid perfected first priority
security interest in the Receivables or the Trust Accounts in favor of the Indenture Trustee which is not cured within seven (7) Business Days of receipt of notice thereof; 
  
 (d) [reserved]; 
  
 (e) as of the Determination Date with respect to each Collection Period, the three month average of the Delinquency Ratios for such
Collection Period and the two Collection Periods immediately preceding such Collection Period is greater than the level specified for such month in such table: 
  

			
	 Collection Period

	  	Delinquency Ratio

	 December 2005-February 2006
	  	  8.00
	 March 2006-August 2006
	  	  6.50
	 September 2006
	  	  7.50
	 October 2006-February 2007
	  	  9.00
	 March 2007-August 2007
	  	  7.50
	 September 2007
	  	  8.50
	 October 2007-February 2008
	  	10.00
	 March 2008-August 2008
	  	  8.50
	 September 2008
	  	  9.50
	 October 2008-December 2008
	  	11.00
	 January 2009-February 2009
	  	12.00
	 March 2009-August 2009
	  	10.50
	 September 2009
	  	11.50

  

 4 

			
	 Collection Period

	  	Delinquency Ratio

	 October 2009-February 2010
	  	13.00
	 March 2010-August 2010
	  	11.50
	 September 2010
	  	12.50
	 October 2010-November 2010
	  	14.00

  
 provided that an
Insurance Agreement Event of Default occurring under this clause (e) shall be deemed to have been cured if, as of the Determination Date with respect to each of any three (3) consecutive Collection Periods following the occurrence of an
Insurance Agreement Event of Default pursuant to this clause (e), the average of the Delinquency Ratios for such Collection Periods is less than the percentage above for the applicable Collection Period; 
  
 (f) a draw is made on the Note Insurance Policy; 

 
 (g) as of the Determination Date in any month prior to
and including the applicable month set forth in the table below, the Cumulative Net Charge-Off Ratio exceeds the level specified for such month in such table: 
  

			
	 Month

	  	 Cumulative Net
 Charge-Off Ratio

	 June 2006-August 2006
	  	  7.00
	 September 2006-November 2006
	  	  9.30
	 December 2006-February 2007
	  	12.00
	 March 2007-May 2007
	  	14.30
	 June 2007-August 2007
	  	16.00
	 September 2007-November 2007
	  	17.30
	 December 2007-February 2008
	  	19.00
	 March 2008-May 2008
	  	20.00
	 June 2008 and thereafter
	  	21.00

  
 (h)
except as permitted by the Sale and Servicing Agreement, any assignment by the Servicer of its rights and obligations under the Sale and Servicing Agreement or any attempt to make such an assignment; 
  
 (i) failure to make any payment with respect to the Notes
pursuant to Section 4.4(a) of the Sale and Servicing Agreement, which continues unpaid for a period of five (5) Business Days; 
  
 (j) [reserved]; 
  
 (k) the occurrence of a Servicer Termination Event or Event of Default under the Indenture; or 
  

 5 

 (l) any Event of Default or Termination Event (as defined in the Swap Agreement) occurs
under the Swap Agreement. 
  
 “Investment Company
Act” means the Investment Company Act of 1940, including, unless the context otherwise requires, the rules and regulations thereunder, as amended. 
  
 “Issuer” means Capital One Auto Finance Trust 2005-D. 
  
 “Late Payment Rate” means the rate of interest as it is publicly announced by Citibank, N.A. at its
principal office in New York, New York as its prime rate (any change in such prime rate of interest to be effective on the date such change is announced by Citibank, N.A.) plus 2.0%. The Late Payment Rate shall be computed on the basis of
a year of 365 days calculating the actual number of days elapsed. In no event shall the Late Payment Rate exceed the maximum rate permissible under any applicable law limiting interest rates. 
  
 “Material Adverse Change” means, in respect of any Person, a
material adverse change in (a) the business, financial condition or results of operations of such Person or (b) the ability of such Person to perform its obligations under any of the Transaction Documents. 
  
 “Moody’s” means Moody’s Investors Service, Inc., a
Delaware corporation, and any successor thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized rating
agency designated by the Note Insurer. 
  
 “Note Insurer
Information” means the information relating to the Note Insurer in the Prospectus Supplement as of the date thereof under the heading “The Note Guaranty Insurance Policy and the Note Insurer” and the financial statements of the
Note Insurer incorporated by reference into the Prospectus Supplement. 
  
 “Notes” means the Capital One Auto Finance Trust 2005-D, Asset Backed Notes, Series 2005-D, designated as Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, and Class A-4 Notes issued in accordance
with the provisions of the Indenture. 
  
 “Owners” means registered holders of Notes. 
  
 “Person” means an individual, joint stock company, trust, unincorporated association, joint venture, corporation, limited liability company, business or owner trust, partnership or other organization or entity (whether
governmental or private). 
  
 “Premium” means the
premium payable in accordance with Section 3.02 of this Insurance Agreement. 
  
 “Prospectus” means, collectively, (a) the Preliminary Prospectus Supplement dated November 21, 2005 to the Prospectus dated June 17, 2005 and (b) the Final Prospectus Supplement
dated November 22, 2005 to the Prospectus dated June 17, 2005, each relating to the sale of the Notes on the Closing Date. 
  

 6 

 “Reserve Account Increase Condition” means the occurrence of one or both of the
following events: 
  
 (a) as of the Determination Date with
respect to any Collection Period, the average of the Delinquency Ratios for such Collection Period and the two Collection Periods immediately preceding such Collection Period is greater than the level specified for such month in the following table:

  

			
	 Collection Period

	  	Delinquency Ratio

	 December 2006-Feburary 2006
	  	  7.00
	 March 2006-August 2006
	  	  5.50
	 September 2006
	  	  6.50
	 October 2006-February 2007
	  	  8.00
	 March 2007-August 2007
	  	  6.50
	 September 2007
	  	  7.50
	 October 2007-February 2008
	  	  9.00
	 March 2008-August 2008
	  	  7.50
	 September 2008
	  	  8.50
	 October 2008-December 2008
	  	10.00
	 January 2009-February 2009
	  	11.00
	 March 2009-August 2009
	  	  9.50
	 September 2009
	  	10.50
	 October 2009-February 2010
	  	12.00
	 March 2010-August 2010
	  	10.50
	 September 2010
	  	11.50
	 October 2010-November 2010
	  	13.00

  
 provided that a
Reserve Account Increase Condition occurring under this clause (a) shall be deemed to have been cured if, as of the Determination Date with respect to each of any three (3) consecutive Collection Periods following the occurrence of a
Reserve Account Increase Condition pursuant to this clause, the average of the Delinquency Ratios for such Collection Periods is less than the percentage specified above for the applicable Collection Period; or 
  
 (b) as of the Determination Date in any month prior to and including the
applicable month set forth in the table below, the Cumulative Net Charge-Off Ratio exceeds the level specified for such month in such table: 
  

			
	 Month

	  	 Cumulative Net
 Charge-Off Ratio

	 March 2006-May 2006
	  	  4.00
	 June 2006-August 2006
	  	  6.00
	 September 2006-November 2006
	  	  8.30
	 December 2006-February 2007
	  	10.30

  

 7 

			
	 Month

	  	Cumulative Net
Charge-Off Ratio

	 March 2007-May 2007
	  	12.30
	 June 2007-August 2007
	  	14.00
	 September 2007-November 2007
	  	15.30
	 December 2007-February 2008
	  	16.00
	 March 2008-May 2008
	  	17.00
	 June 2008 and thereafter
	  	18.00

  
 “Securities
Act” means the Securities Act of 1933, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
  
 “Securities Exchange Act” means the Securities Exchange Act of 1934, including, unless the context
otherwise requires, the rules and regulations thereunder, as amended from time to time. 
  
 “S&P” means Standard & Poor’s Ratings Services, and any successor thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating
agency, “S&P” shall be deemed to refer to any other nationally recognized rating agency designated by the Note Insurer. 
  
 “Swap Agreement” means the ISDA Master Agreement dated as of December 1, 2005 between the Issuer, and the Swap Provider, the
Schedule thereto and the Swap Transaction Confirmation bearing Ref. No. N430489N dated December 1, 2005 which is the subject of the Swap Policy. 
  
 “Swap Policy” means the Interest Rate Swap Insurance Policy No. 47290(2) issued by MBIA Insurance Corporation, which guarantees
certain payments due under the Swap Agreement. 
  
 “Swap
Provider” means Deutsche Bank AG, New York Branch, and its permitted successors and assigns. 
  
 “Target Cumulative Net Charge-Off Ratio” means, with respect to the Payment Dates occurring in June 2007, December 2007 and June
2008, the Cumulative Net Charge-Off Ratio set forth below opposite such Payment Date: 
  

			
	 Payment Date

	  	Target Cumulative Net
Charge-Off Ratio

	 June 2007
	  	  6.00
	 December 2007
	  	  8.00
	 June 2008
	  	10.00

  
 “Term of the
Insurance Agreement” shall be determined as provided in Section 4.01 of this Insurance Agreement. 
  

 8 

 “Transaction” means the transactions contemplated by the Transaction Documents including
the transactions described in the Prospectus. 
  
 “Transaction Documents” means this Insurance Agreement, the Prospectus, the Indenture, the Swap Agreement, the Purchase Agreement, the Sale and Servicing Agreement, the Limited Guaranty, the Underwriting Agreement, the
Trust Agreement, and the Notes. 
  
 “Underwriter
Information” means the information furnished by the Underwriters in writing expressly for use in the Prospectus and included in the second paragraph (regarding concessions and discounts) and the second sentence of the ninth paragraph
(regarding market making) under the caption “Underwriting” in the Prospectus Supplement. 
  
 ARTICLE II 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 2.01. Representations and Warranties of the COAF Companies. 
  
 (a) Representations and Warranties of the Seller. The Seller makes the following representations and warranties as of the
date hereof and the Date of Issuance: 
  
 (i)
Existence and Power. The Seller is a Delaware limited liability company validly existing and in good standing under the laws of its state of organization and has, in all material respects, full power and authority to own its assets and
operate its business as presently owned or operated, and to execute, deliver and perform its obligations under the Transaction Documents to which it is a party. The Seller has obtained all necessary licenses and approvals in each jurisdiction where
the failure to do so could reasonably result in a Material Adverse Change. 
  
 (ii) Authorization and No Contravention. The execution, delivery and performance by the Seller of the Transaction Documents to which it is a party have been duly authorized by all necessary action on the part
of the Seller and do not contravene or constitute a default under (A) any applicable law, rule or regulation, (B) its organizational documents or (C) any material indenture or material agreement or material instrument to which the
Seller is a party or by which its properties are bound (other than violations of such laws, rules, regulations, indentures or agreements which do not affect the legality, validity or enforceability of any of such agreements and which, individually
or in the aggregate, could reasonably result in a Material Adverse Change). 
  
 (iii) No Consent Required. No approval or authorization by, or filing with, any Governmental Authority is required in connection with the execution, delivery and performance by the Seller of any Transaction
Document other than (A) UCC filings, (B) approvals and authorizations that have previously been obtained and filings that have previously been made or approvals, authorizations or filings which will be made on a timely fashion and
(C) , authorizations or filings which, if not obtained or made, would not reasonably result in a Material Adverse Change. 
  

 9 

 (iv) Binding Effect. Each Transaction Document to which the Seller is a party
constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
receivership, conservatorship or other similar laws affecting creditors’ rights generally and, if applicable, the rights of creditors of limited liability companies from time to time in effect or by general principles of equity. 
  
 (v) No Proceedings. There are no actions, suits or
proceedings pending or, to the knowledge of the Seller, threatened against the Seller before or by any Governmental Authority that (A) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents,
(B) seeking to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (C) seeking any determination or ruling that could reasonably result
in a Material Adverse Change, or (D) relating to the Seller that would materially and adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax attributes of the Notes. 
  
 (vi) Compliance With Securities Laws. The initial
offer and sale of the Notes comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the foregoing, the Prospectus does not contain any untrue
statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; provided, however, that no representation is made with
respect to the information in the Prospectus set forth under the heading “THE NOTE GUARANTY INSURANCE POLICY AND THE NOTE INSURER,” the consolidated financial statements of the Note Insurer incorporated by reference in the Prospectus or
the Underwriter Information. Neither the offer nor the sale of the Notes has been or will be in violation of the Securities Act or any other federal or state securities laws. Neither the Issuer nor the Seller is required to be registered as an
“investment company” under the Investment Company Act. 
  
 (vii) Transaction Documents. Each of the representations and warranties of the Seller contained in the Transaction Documents is true and correct in all material respects, and the Seller hereby makes each such
representation and warranty to, and for the benefit of, the Note Insurer as if the same were set forth in full herein, provided that the remedy for any breach of this paragraph shall be limited to the remedies specified in the related Transaction
Document. 
  
 (viii) Solvency. The Seller
is solvent and will not be rendered insolvent by the Transaction and, after giving effect to the Transaction, the Seller will not 
  

 10 

 be left with an unreasonably small amount of capital with which to engage in its business, nor does the
Seller intend to incur, or believe that it has incurred, debts beyond its ability to pay as they mature. The Seller does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a
receiver, liquidator, conservator, trustee or similar official in respect of any COAF Company or any of their assets. 
  
 (b) Representations and Warranties of Servicer. Each of the Servicer and COAF makes the following representations and
warranties as of the date hereof and the Date of Issuance: 
  
 (i) Existence and Power. Each of the Servicer and COAF is a Texas corporation validly existing and in good standing under the laws of its state of organization and has, in all material respects, full power and
authority to own its assets and operate its business as presently owned or operated, and to execute, deliver and perform its obligations under the Transaction Documents to which it is a party. Each of the Servicer and COAF has obtained all necessary
licenses and approvals in each jurisdiction where the failure to do so could reasonably result in a Material Adverse Change. 
  
 (ii) Authorization and No Contravention. The execution, delivery and performance by each of the Servicer and COAF of the
Transaction Documents to which it is a party have been duly authorized by all necessary action on the part of the Servicer and COAF and do not contravene or constitute a default under (A) any applicable law, rule or regulation, (B) its
organizational documents or (C) any material indenture or material agreement or instrument to which the Servicer or COAF is a party or by which its properties are bound (other than violations of such laws, rules, regulations, indentures or
agreements which do not affect the legality, validity or enforceability of any of such agreements and which, individually or if the aggregate, and would not reasonably result in a Material Adverse Change. 
  
 (iii) No Consent Required. No approval or
authorization by, or filing with, any Governmental Authority is required in connection with the execution, delivery and performance by the Servicer or COAF of any Transaction Document other than (A) UCC filings, (B) approvals and
authorizations that have previously been obtained and filings that have previously been made or approvals, authorizations or filings which will be made on a timely fashion and (C) approval, authorizations or filings which, if not obtained or
made, would not reasonably result in a Material Adverse Change. 
  
 (iv) Binding Effect. Each Transaction Document to which the Servicer or COAF is a party constitutes the legal, valid and binding obligation of the Servicer enforceable against it in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws affecting creditors’ rights generally and, if applicable, the rights of creditors
of limited liability companies from time to time in effect or by general principles of equity. 
  

 11 

 (v) No Proceedings. There are no actions, suits or proceedings pending or, to the
knowledge of the Servicer or COAF, threatened against the Servicer or COAF before or by any Governmental Authority that (A) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents, (B) seeking
to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (C) seeking any determination or ruling that would materially and adversely affect the
performance by the Servicer of its obligations under this Agreement or any of the other Transaction Documents, or (D) relating to the Servicer or COAF that would materially and adversely affect the federal or Applicable Tax State income,
excise, franchise or similar tax attributes of the Notes. 
  
 (vi) Financial Statements. The Financial Statements of Capital One Financial Corporation, (A) are, as of the dates and for the periods referred to therein, complete and correct in all material respects,
(B) present fairly the financial condition and results of operations of COAF as of the dates and for the periods indicated and (C) have been prepared in accordance with generally accepted accounting principles consistently applied, except
as noted therein (subject as to interim statements to normal year-end adjustments); since the date of the most recent Financial Statements, there has been no Material Adverse Change in respect of COAF; and except as disclosed in the Financial
Statements, COAF is not subject to any contingent liabilities or commitments that, individually or in the aggregate, have a material possibility of causing a Material Adverse Change in respect of COAF. 
  
 (vii) Compliance With Securities Laws. The offer and
sale of the Notes comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the foregoing, the Prospectus does not contain any untrue statement of a
material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; provided, however, that no representation is made with respect to the
information in the Prospectus set forth under the heading “THE NOTE GUARANTY INSURANCE POLICY AND THE NOTE INSURER,” the consolidated financial statements of the Note Insurer incorporated by reference in the Prospectus or the Underwriter
Information. Neither the offer nor the sale of the Notes has been or will be in violation of the Securities Act or any other federal or state securities laws. Neither the Issuer nor the Seller is required to be registered as an “investment
company” under the Investment Company Act. 
  
 (viii) Transaction Documents. Each of the representations and warranties of the Servicer and COAF contained in the Transaction Documents is true and correct in all material respects, and the Servicer and COAF hereby make 

 

 12 

 each such representation and warranty to, and for the benefit of, the Note Insurer as if the same were
set forth in full herein, provided that the remedy for any breach of this paragraph shall be limited to the remedies specified in the related Transaction Document. 
  
 (ix) Solvency. Each of the Servicer and COAF is solvent and will not be rendered insolvent by the
Transaction and, after giving effect to the Transaction, neither the Servicer nor COAF will be left with an unreasonably small amount of capital with which to engage in its business, nor does the Servicer or COAF intend to incur, or believe that it
has incurred, debts beyond its ability to pay as they mature. Neither the Servicer nor COAF contemplates the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator,
trustee or similar official in respect of any COAF Company or any of their assets. 
  
 Section 2.02. Affirmative Covenants of the COAF Companies. The COAF Companies hereby agree that during the Term of the Insurance Agreement, unless the Note Insurer shall otherwise expressly consent in writing:

  
 (a) Compliance With Agreements and
Applicable Laws. The COAF Companies shall not be in default under the Transaction Documents and shall comply with all material requirements of any law, rule or regulation applicable to each such party in all circumstances where
non-compliance could reasonably result in a Material Adverse Change. Except in accordance with any provision of the Transaction Documents that expressly states Note Insurer consent is not required, no COAF Company shall agree to any amendment to or
modification of the terms of any Transaction Documents or its respective organizational documents (including without limitation and as applicable its articles of incorporation, partnership agreement, bylaws, certificate of formation and limited
liability company agreement) unless the Note Insurer shall have otherwise consented. 
  
 (b) Corporate Existence. Each COAF Company, its successors and assigns, shall maintain its corporate or other existence and
shall at all times continue to be duly organized under the laws of its respective jurisdiction of incorporation or formation and duly qualified and duly authorized and shall conduct its business in accordance with the terms of its certificate of
incorporation and bylaws or other formation documents in all circumstances where failure could reasonably result in a Material Adverse Change. 
  
 (c) The Servicer To Provide Compliance Certificates; Accountants’ Reports; Other Information. The Servicer shall keep
or cause to be kept in reasonable detail books and records of account of COAF’s, and its consolidated subsidiaries’, assets and business, including, but not limited to, books and records relating to the Transaction. The Servicer shall
furnish or cause to be furnished to the Note Insurer: 
  
 (i) Servicer Reports and Compliance Certificates. All reports, certificates and reviews required to be furnished under Sections 3.8 and 3.9 of the Sale and Servicing Agreement. 
  

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 (ii) Initial and Continuing Reports. On or before the Closing Date, the Servicer
will provide the Note Insurer a copy of the electronic file or other such medium as may be acceptable to the Note Issuer to be delivered to the Indenture Trustee setting forth, as to each Receivable, the information required on the Schedule of
Receivables. 
  
 (iii) Other Information.
Promptly upon receipt thereof, copies of all schedules, financial statements or other similar reports delivered to or by the Servicer pursuant to the terms of the Sale and Servicing Agreement and, promptly upon request, such other data or reports
relating to the Transaction as the Note Insurer may reasonably request. 
  
 The Note Insurer agrees that it and its agents, accountants and attorneys shall keep confidential all financial statements, reports and other information delivered by the Servicer pursuant to this
subsection 2.02(c) to the extent provided in section 2.07 hereof. 
  
 (d) Access to Records; Discussions With Officers and Accountants. On an annual basis, or as often as the Note Insurer deems appropriate upon the occurrence of an Insurance Agreement Event of Default,
each COAF Company shall, upon the reasonable request of the Note Insurer, permit the Note Insurer or its authorized agents: 
  
 (i) to inspect its books and records as they may relate to the Notes, the obligations of such party under the Transaction Documents, and
the Transaction; 
  
 (ii) to discuss the affairs,
finances and accounts of each COAF Company with the chief operating officer and the chief financial officer of such COAF Company, as the case may be; and 
  
 (iii) with any COAF Company’s consent, which consent shall not be unreasonably withheld, to discuss the affairs, finances and
accounts of such COAF Company with such company’s independent accountants, provided that an officer of such COAF Company shall have the right to be present during such discussions; provided, however, that upon the occurrence of an Insurance
Agreement Event of Default, no such consent of the COAF Companies will be required but the Note Insurer will provide reasonable notice to such COAF Company prior to such discussions and such discussions may not create an undue burden on such COAF
Company’s or the accountants’ business. 
  
 Such inspections and discussions shall be conducted during normal business hours at the Note Insurer’s cost and expense and shall not unreasonably disrupt the business of such COAF Company. The books and records of each COAF Company
will be maintained at the address of such COAF Company designated herein for receipt of notices, unless the Servicer shall otherwise advise the parties hereto in writing. 
  

 14 

 (e) Notice of Material Events. Each COAF Company shall be obligated (which
obligation shall be satisfied as to each if performed by any of them) promptly to inform the Note Insurer in writing of the occurrence of any of the following to the extent any of the following relate to it: 
  
 (i) the submission of any claim or the initiation of any
legal process, litigation or administrative or judicial investigation, or rule-making or disciplinary proceeding by or against any COAF Company that (A) could be required to be disclosed to the Commission or to any COAF Company’s
shareholders or (B) is deemed reasonably likely to result in a Material Adverse Change with respect to any COAF Company, or to the knowledge of such COAF Company, the promulgation of any proceeding or any proposed or final rule which would
result in a Material Adverse Change with respect to any COAF Company; 
  
 (ii) any change in the location of any COAF Company’s principal offices, jurisdiction of organization, legal name as indicated on the public records of any COAF Company’s jurisdiction of organization which
shows any COAF Company to be organized, or any change in the location of any COAF Company’s books and records; 
  
 (iii) the occurrence of any Default, Insurance Agreement Event of Default, Event of Default under the Indenture; Servicer Termination
Event or of any Material Adverse Change; 
  
 (iv)
the commencement of any proceedings by or against any COAF Company under any applicable bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any proceeding in which a receiver,
liquidator, conservator, trustee or similar official shall have been, or may be, appointed or requested for any COAF Company or any of its assets; or 
  
 (v) the receipt of notice that (A) any COAF Company is being placed under regulatory supervision, (B) any license, permit,
charter, registration or approval necessary for the conduct of any COAF Company’s business is to be, or may be suspended or revoked, or (C) any COAF Company is to cease and desist any practice, procedure or policy employed by any COAF
Company in the conduct of its business, and such suspension, revocation or cessation may reasonably be expected to result in a Material Adverse Change with respect to any COAF Company. 
  
 (f) Financing Statements and Further Assurances. The Servicer will cause to be filed all
necessary financing statements or other instruments, and any amendments or continuation statements relating thereto, necessary to be kept and filed in such manner and in such places as may be required by law to preserve and protect fully the
interest of the Indenture Trustee in the Trust Estate. Each COAF Company shall, upon the request of the Note Insurer, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, within 10 days of
such request, such amendments hereto and such further instruments and take such further action as may be reasonably necessary to effectuate the intention, performance and provisions of the Transaction Documents. In addition, each of the COAF
Companies agrees to cooperate with S&P, Fitch and Moody’s in connection with any review of the Transaction that may be undertaken by S&P, Fitch and Moody’s after the date hereof. 
  

 15 

 (g) Maintenance of Licenses. Each COAF Company or any successors thereof
shall maintain all licenses, permits, charters and registrations which are material to the conduct of its business in all circumstances where failure reasonably could result in a Material Adverse Change. 
  
 (h) Redemption of Notes. The Servicer shall
instruct the Indenture Trustee, upon redemption of the Notes pursuant to the Transaction Documents, to furnish to the Note Insurer a notice of such redemption and, upon a redemption or other payment of all of the Notes to surrender the Note
Insurance Policy to the Note Insurer for cancellation. 
  
 (i) Third-party Beneficiary. Subject to the provisions of the Transaction Documents, each COAF Company agrees that the Note Insurer shall have all rights provided to the Note Insurer in the Transaction Documents and that the
Note Insurer shall constitute a third-party beneficiary of the Transaction Documents; provided, however, it is expressly acknowledged by the Note Insurer that the sole remedy for any breach of representation and warranty of COAF and the Seller under
Section 3.2 of the Purchase Agreement and Section 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and Servicing Agreement, the remedy for any breach shall be limited to the repurchase remedy specified in the Purchase Agreement. 
  
 (j) Amendments. The Servicer will provide the
Note Insurer with written notice of any change or amendment to any Transaction Document as currently in effect. 
  
 (k) Closing Documents. The Servicer shall provide or cause to be provided to the Note Insurer an executed original copy of
each document executed in connection with the Transaction within 90 days after the date of closing. 
  
 Section 2.03. Negative Covenants of the COAF Companies. Each COAF Company hereby agrees that during the Term of the Insurance Agreement, unless the
Note Insurer shall otherwise expressly consent in writing: 
  
 (a) Impairment of Rights. No COAF Company shall take any action, or fail to take any action, if such action or failure to take action is reasonably likely to result in a Material Adverse Change with
respect to any COAF Company, or may interfere in any material respect with the enforcement of any rights of the Note Insurer under or with respect to the Transaction Documents. Each COAF Company shall give the Note Insurer written notice of any such
action or, to the best of the knowledge of any COAF Company, failure to act on the earlier of (i) the date upon which any publicly available filing or release is made with respect to such action or failure to act or (ii) promptly prior to
the date of consummation of such action or failure to act. Each COAF Company shall furnish to the Note Insurer all information reasonably requested by it that is reasonably necessary to determine compliance with this paragraph. 
  
 (b) Waiver, Amendments, Etc. Except in
accordance with the Transaction Documents, no COAF Company shall waive, modify or amend, or consent to any waiver, modification or amendment of, any of the terms, provisions or conditions of the Transaction Documents without the consent of the Note
Insurer. 
  

 16 

 (c) Transaction Documents. No COAF Company will at any time in the future
deny that the Transaction Documents constitute the legal, valid and binding obligations of each COAF Company, as applicable. 
  
 Section 2.04. Representation and Covenants of Indenture Trustee. 
  
 (a) Representations and Warranties. As of the Date of Issuance, each of the representations
and warranties of the Indenture Trustee set forth in the Transaction Documents are true and correct in all material respects, and the Indenture Trustee makes each such representation and warranty to, and for the benefit of, the Note Insurer as if
the same were set forth in full herein. 
  
 (b)
Compliance and Amendments. The Indenture Trustee shall comply in all material respects with the terms and conditions of the Transaction Documents to which it is a party, and the Indenture Trustee shall not agree to any amendment to or
modification of the terms of any of the Transaction Documents to which both the Indenture Trustee and the Note Insurer are parties unless the Note Insurer shall otherwise consent, provided that such consent shall not be required if a Note Insurer
Default has occurred and is continuing. 
  
 Section 2.05.
Representations, Warranties and Covenants of the Issuer. The Issuer hereby represents and warrants as follows: 
  
 (a) Representations and Warranties. As of the Date of Issuance, each of the representations and warranties of the Issuer set
forth in the Transaction Documents is true and correct in all material respects and the Issuer makes each such representation and warranty to, and for the benefit of, the Note Insurer as if the same were set forth in full herein. 
  
 (b) Compliance and Amendments. The Issuer
shall comply in all material respects with the terms and conditions of the Transaction Documents it is a party and, except in accordance with the Transaction Documents, the Issuer shall not agree to any amendment to or modification of the terms of
any of the Transaction Documents to which it is a party unless the Note Insurer shall otherwise give its prior written consent. 
  
 (c) Principal Place of Business. The principal place of business of the Issuer is located in Wilmington, Delaware.

  
 Section 2.06. Representations and Warranties of Note
Insurer. The Note Insurer represents, warrants and agrees as follows as of the Closing Date: 
  
 (a) Organization and Licensing. The Insurer is a duly organized and validly existing New York stock insurance
corporation duly qualified to conduct an insurance business in the State of New York and in any other jurisdiction where qualification may be necessary to accomplish the Transaction. 
  

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 (b) Corporate Power. The Insurer has the corporate power and authority to
issue the Policy and execute and deliver this Insurance Agreement and to perform all of its obligations hereunder and thereunder. 
  
 (c) Authorization; Approvals. All proceedings legally required for the execution of the Policies and the execution,
issuance, delivery and performance of the Policies and this Insurance Agreement have been taken and all licenses, orders, consents or other authorizations or approvals of the Note Insurer’s Board of Directors or stockholders or any governmental
boards or bodies legally required for the enforceability of the Policies and this Insurance Agreement have been obtained or are not material to the enforceability of the Policies and this Insurance Agreement. 
  
 (d) Enforceability. The Policies, when issued,
will constitute and this Insurance Agreement constitutes, legal, valid and binding obligations of the Note Insurer, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium, receivership
and other similar laws affecting creditors’ rights generally and by general principles of equity and subject to principles of public policy limiting the right to enforce the indemnification provisions contained therein and herein, insofar as
such provisions relate to indemnification for liabilities arising under federal securities laws. 
  
 (e) No Conflict. The execution by the Note Insurer of the Policies and this Insurance Agreement will not, and the
performance of the provisions thereof and hereof will not, conflict with or result in a breach of any of the terms, conditions or provisions of the Articles of Incorporation or By Laws of the Note Insurer, or any restriction contained in any
contract, agreement or instrument to which the Note Insurer is a party or by which it is bound; constitute a default under any of the foregoing which would materially and adversely affect its ability to perform its obligations under the Policies or
this Insurance Agreement. 
  
 (f) Exempt
from Registration. The Policies, when issued, will be exempt from registration under the Securities Act. 
  
 (g) Note Insurer Information. The Note Insurer Information is true and correct in all material respects and does not contain
any untrue statement of material fact. 
  
 (h)
No Litigation. There are no actions, suits, proceedings or investigations pending or, to the best of the Note Insurer’s knowledge, threatened against it at law or in equity or before or by any court, governmental agency, board or
commission or any arbitrator which, if decided adversely, would materially and adversely affect its ability to perform its obligations under the Policies or this Insurance Agreement. 
  
 (i) Compliance With Law, Etc. No practice, procedure or policy employed, or proposed to be
employed, by the Note Insurer in the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to the Note Insurer that, if enforced, could result in a Material Adverse Change with respect to the Insurer.

  

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 Section 2.07. Covenant of Note Insurer; Confidentiality. The Note Insurer hereby covenants as
follows: The Note Insurer agrees that it and its shareholders, directors, agents, accountants and attorneys shall keep confidential any matter of which it becomes aware through such inspections or discussions (unless readily available from public
sources), except as may be otherwise required by regulation, law or court order or requested by appropriate governmental authorities or as necessary to preserve its rights or security under or to enforce the Transaction Documents, provided that the
foregoing shall not limit the right of the Note Insurer to make such information available to its regulators, securities rating agencies, reinsurers, credit and liquidity providers, counsel and accountants. If the Note Insurer is requested or
required (by oral questions, interrogatories, requests for information or documents subpoena, civil investigative demand or similar process) to disclose any information of which it becomes aware through such inspections or discussions, the Note
Insurer will promptly notify COAF or the Servicer of such request(s) so that COAF or the Servicer may seek an appropriate protective order and/or waive the Note Insurer’s compliance with the provisions of this Insurance Agreement. If, in the
absence of a protective order or the receipt of a waiver hereunder, the Note Insurer is, nonetheless, in the opinion of its counsel, compelled to disclose such information to any tribunal or else stand liable for contempt or suffer other censure or
significant penalty, the Note Insurer may disclose such information to such tribunal that the Note Insurer is compelled to disclose, provided that a copy of all information disclosed is provided to COAF or the Servicer, as the case maybe, promptly
upon such disclosure, so long as the Note Insurer is not prohibited from providing notice to COAF or Servicer by such tribunal. 
  
 ARTICLE III 
  
 THE POLICIES; REIMBURSEMENT 
  
 Section 3.01. Issuance of the Policies. The Note Insurer agrees to issue the Policies on the Closing Date subject to satisfaction of the conditions precedent set forth below: 
  
 (a) Payment of Initial Premium and Expenses.
The Note Insurer shall have been paid, by the Servicer, that portion of a nonrefundable Premium payable on the Date of Issuance and the Servicer shall agree to reimburse or pay directly other fees and expenses identified in Section 3.02 hereof
as payable, and the Note Insurer shall have received a fully executed copy of the Fee Letter. 
  
 (b) Transaction Documents. The Note Insurer shall have received a copy of each of the Transaction Documents, in form and
substance satisfactory to the Note Insurer, duly authorized, executed and delivered by each party thereto. 
  
 (c) Certified Documents and Resolutions. The Note Insurer shall have received a copy of (i) the certificate of
incorporation, limited liability company agreement and bylaws or other organizational documents, as applicable, of each COAF Company and (ii) the resolutions of each COAF Company’s Board of Directors or members or a committee thereof, as
applicable, authorizing the issuance of the Notes and the execution, delivery and performance by each COAF Company of the Transaction Documents and the transactions contemplated thereby, certified by the Secretary or an Assistant Secretary of each
COAF Company (which certificate shall state that such certificate of incorporation, bylaws and resolutions or other organizational documents are in full force and effect without modification on the Date of Issuance). 
  

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 (d) Incumbency Certificate. The Note Insurer shall have received a
certificate of the Secretary or an Assistant Secretary of each COAF Company certifying the names and signatures of the officers of such COAF Company authorized to execute and deliver the Transaction Documents and that shareholder, partner or member
(as applicable) consent to the execution and delivery of such documents is not necessary. 
  
 (e) Representations and Warranties; Certificate. The representations and warranties of each COAF Company set forth or
incorporated by reference in this Insurance Agreement shall be true and correct as of the Date of Issuance as if made on the Date of Issuance, and the Note Insurer shall have received a certificate of appropriate officers of each COAF Company to
that effect. 
  
 (f) Opinions of
Counsel. 
  
 (i) In-house counsel for
COAF shall have issued its favorable opinion, in form and substance acceptable to the Note Insurer and its counsel, regarding the corporate existence and authority of COAF, in its capacity as seller under the Purchase Agreement and as Servicer.

  
 (ii) The law firm of Richards,
Layton & Finger shall have issued its favorable opinion, in form and substance acceptable to the Note Insurer and its counsel, regarding the corporate existence and authority of the Seller. 
  
 (iii) The law firm of Richards, Layton & Finger
shall have issued its favorable opinion, in form and substance acceptable to the Note Insurer and its counsel, regarding the corporate existence and authority of the Issuer. 
  
 (iv) The law firm of Mayer, Brown, Rowe & Maw LLP shall have furnished its favorable opinion in
form and substance acceptable to the Note Insurer and its counsel, regarding the validity and enforceability of the Transaction Documents against COAF, in its capacity as seller under the Purchase Agreement and as Servicer. 
  
 (v) The law firm of Mayer, Brown, Rowe & Maw LLP
shall have furnished its favorable opinion in form and substance acceptable to the Note Insurer and its counsel, regarding the validity and enforceability of the Transaction Documents against the Seller and the Issuer. 
  
 (vi) The law firm of Mayer, Brown, Rowe & Maw LLP
shall have furnished its opinions, in form and substance acceptable to the Note Insurer and its counsel, regarding the transfer of the Trust Estate, certain bankruptcy and non-consolidation issues, security interest issues and the tax treatment of
the Notes under federal tax laws. 
  

 20 

 (vii) The Note Insurer shall have received such other opinions of counsel, in form and
substance acceptable to the Note Insurer and its counsel, addressing such other matters as the Note Insurer may reasonably request. 
  
 (g) Approvals, Etc. The Note Insurer shall have received true and correct copies of all approvals, licenses and consents, if
any, including, without limitation, any required approval of the shareholders of any COAF Company, required in connection with the Transaction. 
  
 (h) No Litigation, Etc. No suit, action or other proceeding, investigation or injunction, or final judgment relating
thereto, shall be pending or, to the knowledge of any COAF Company, threatened before any court or governmental agency in which it is sought to restrain or prohibit or to obtain damages or other relief in connection with the Transaction Documents or
the consummation of the Transaction. 
  
 (i)
Legality. No statute, rule, regulation or order shall have been enacted, entered or deemed applicable by any government or governmental or administrative agency or court that would make the transactions contemplated by any of the
Transaction Documents illegal or otherwise prevent the consummation thereof. 
  
 (j) Satisfaction of Conditions of the Underwriting Agreement. All conditions in the Underwriting Agreement relating to the Underwriters’ obligation to purchase the Notes shall have been satisfied.

  
 (k) Issuance of Ratings. The
Note Insurer shall have received confirmation that the risk secured by the Note Insurance Policy constitutes an investment-grade risk, that the Class A-1 Notes when issued will be rated “A-1+” by S&P, “Prime 1” by
Moody’s and “F1+” by Fitch and that the Class A-2 Notes, Class A-3 Notes, and Class A-4 Notes, when issued, will be rated “AAA” by S&P, “Aaa” by Moody’s and “AAA” by Fitch.

  
 (l) No Default. No Default or
Event of Default shall have occurred. 
  
 (m)
Additional Items. The Note Insurer shall have received such other documents, instruments, approvals or opinions requested by the Note Insurer as may be reasonably necessary to effect the Transaction, including, but not limited to,
evidence satisfactory to the Note Insurer that the conditions precedent, if any, in the Transaction Documents have been satisfied. 
  
 (n) Underwriting Agreement. The Note Insurer shall have received copies of each of the documents, and specifically be
entitled to rely on each of the documents, required to be delivered to the Underwriters pursuant to the Underwriting Agreement. 
  
 (o) Conform to Documents. The Note Insurer and its counsel shall have determined that all documents, certificates and
opinions to be delivered in connection with the Notes conform to the terms of the Transaction Documents. 
  

 21 

 (p) Perfection of Security Interest. All actions required to be taken to
perfect the security interest of the Issuer and the Indenture Trustee in the Trust Estate shall have been performed. 
  
 Section 3.02. Payment of Fees and Premium. 
  
 (a) Legal and Accounting Fees. The Servicer shall pay or cause to be paid, on the Date of Issuance, legal fees and
disbursements incurred by the Note Insurer in connection with the issuance of the Policies in accordance with the terms of the Fee Letter. Any fees of the Note Insurer’s auditors payable in respect of any amendment or supplement to the
Prospectus or any other Prospectus incurred after the Date of Issuance shall be paid by the Servicer on demand. 
  
 (b) Rating Agency Fees. The Servicer shall promptly pay the initial fees of the Rating Agencies with respect to the Notes
and the transactions contemplated hereby following receipt of a statement with respect thereto, and shall pay or cause to be paid any subsequent fees of the Rating Agencies with respect to, and directly allocable to, the Notes. The Note Insurer
shall not be responsible for any fees or expenses of the Rating Agencies. The fees for any other rating agency shall be paid by the party requesting such other rating agency’s rating. 
  
 (c) Premium. In consideration of the issuance
by the Note Insurer of the Policies, the Note Insurer shall be entitled to receive the Premium as and when due in accordance with the terms of the Fee Letter (i) in the case of Premium due on or before the Date of Issuance, directly from the
Servicer and (ii) in the case of Premium due after the Date of Issuance, pursuant to the Indenture. The Premium paid hereunder or under the Indenture shall be nonrefundable without regard to whether the Note Insurer makes any payment under the
Policies or any other circumstances relating to the Notes or provision being made for payment of the Notes prior to maturity. The Servicer or the Indenture Trustee, as the case may be, shall make all payments of Premium to be made by them by wire
transfer to an account designated from time to time by the Note Insurer by written notice to the Servicer or the Indenture Trustee, respectively. 
  
 Section 3.03. Reimbursement and Additional Payment Obligation. 
  
 (a) In accordance with the priorities established in Section 4.4(a) of the Sale and Servicing
Agreement, the Note Insurer shall be entitled to (i) reimbursement for any payment made by the Note Insurer under the Policies, which reimbursement shall be due and payable on the date that any amount is to be paid pursuant to a Notice (as
defined in the Note Insurance Policy) or Demand for Payment (as defined in the Swap Policy), in an amount equal to the amount to be so paid and all amounts previously paid that remain unreimbursed, together with interest on any and all amounts
remaining unreimbursed (to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the
Late Payment Rate, (ii) payment or reimbursement of any other amounts owed to the Note Insurer under this Agreement together with interest thereon at a rate equal to the Late Payment Rate and (iii)
  

 22 

 reimbursement for any payments made by the Insurer with respect to the fees and expenses of a successor
Servicer or with respect to any transition costs (not to exceed $200,000 in the aggregate) relating to the transfer of servicing from the Servicer to such Successor Servicer together with interest thereon at a rate equal to the Late Payment Rate.

  
 (b) The Servicer agrees to pay to the Note
Insurer as follows: anything in Section 3.03(a) to the contrary notwithstanding, the Note Insurer shall be entitled to reimbursement from the Servicer (i) for payments made under the Policies arising as a result of the failure by any COAF
Company to repurchase any Receivable required to be repurchased pursuant to Section 3.3 of the Purchase Agreement and Sections 2.3, 2.6 and 3.6 of the Sale and Servicing Agreement, together with interest on any and all amounts remaining
unreimbursed (to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the Late
Payment Rate, and (ii) for payments made under the Policies, arising as a result of the Servicer’s failure to deposit into the Collection Account any amount required to be so deposited pursuant to any Transaction Document, together with
interest on any and all amounts remaining unreimbursed (to the extent permitted by law, if in respect to any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at
a rate of interest equal to the Late Payment Rate. 
  
 (c) The Servicer and the Issuer agree to pay to the Note Insurer as follows: any and all charges, fees, costs and expenses that the Note Insurer may reasonably pay or incur, including, but not limited to, reasonable attorneys’ and
accountants’ fees and expenses, in connection with (i) the enforcement, defense or preservation of any rights in respect of any of the Transaction Documents, including, without limitation, instituting, defending, monitoring or
participating in any litigation or proceeding (including, without limitation, any insolvency or bankruptcy proceeding in respect of any Transaction participant or any affiliate thereof) relating to any of the Transaction Documents, any party to any
of the Transaction Documents, in its capacity as such a party, or the Transaction (ii) any action, proceeding or investigation affecting the Issuer, the Trust Property or the rights or obligations of the Note Insurer under the Policies or the
Transaction Documents, including (without limitation) any judgment or settlement entered into affecting the Note Insurer or the Note Insurer’s interests, or (iii) any consent, amendment, waiver or other action with respect to, or related
to, any Transaction Document, whether or not executed or completed (“Reimbursable Amounts”). Reimbursable Amounts due to the Note Insurer shall bear interest at a rate equal to the Late Payment Rate. In the event that the Servicer fails to
pay to the Note Insurer any Reimbursable Amounts, the Note Insurer shall be entitled to reimbursement of such amount together with interest thereon from Section 4.4 of the Sale and Servicing Agreement. In addition, the Note Insurer reserves the
right to charge a reasonable fee as a condition to executing any waiver, consent or amendment proposed in respect of any of the Transaction Documents. 
  

 23 

 (d) Servicer agrees to pay to the Note Insurer as follows: interest on any and all
amounts described in subclauses (b), (c) and (e) of this Section 3.03 from the date payable or paid by such party until payment thereof in full, and interest on any and all amounts described in Section 3.02 from the date due
until payment thereof in full, in each case, payable to the Note Insurer at the Late Payment Rate per annum. 
  
 (e) The Servicer agrees to pay to the Note Insurer as follows: any payments made by the Note Insurer on behalf of, or advanced to, the
Servicer or COAF, respectively, including, without limitation, any amounts payable by the Servicer or COAF pursuant to the Notes or any other Transaction Documents. All such amounts are to be immediately due and payable without demand. 

 
 (f) [Reserved]. 
  
 (g) Notwithstanding any other provisions of this Agreement,
none of the terms and provisions of this Agreement shall ever be construed to create a contract to pay to the Note Insurer for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to be charged
by the Note Insurer to any of the COAF Companies under applicable state or federal law from time to time in effect, and none of the COAF Companies shall ever be required to pay interest in excess of such maximum amount. If, for any reason, interest
is paid hereunder in excess of such maximum amount, then promptly upon any determination that such excess has been paid the Note Insurer will, at its option, either refund such excess to the payor thereof or apply such excess to the principal owing
by such payor hereunder. 
  
 Section 3.04. Indemnification;
Limitation of Liability. 
  
 (a) In addition
to any and all rights of indemnification or any other rights of the Note Insurer pursuant hereto or under law or equity, the Servicer, the Issuer and COAF and any successor thereto agree to pay, and to protect, indemnify and save harmless, the Note
Insurer and its officers, directors, shareholders, employees, agents and each person, if any, who controls the Note Insurer within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act (the
“Note Insurer Indemnified Parties”) from and against any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or reasonable expenses (including, without limitation, reasonable fees
and expenses of attorneys, consultants and auditors and reasonable costs of investigations) or obligations whatsoever paid by the Note Insurer Indemnified Parties (herein collectively referred to as “Liabilities”) of any nature (but
excluding lost profits and other consequential damages) arising out of or relating to the transactions contemplated by the Transaction Documents by reason of: 
  

(i) to the extent not covered by the Indemnification Agreement any act or omission of any COAF Company in connection with the offering,
issuance, sale or delivery of the Notes other than by reason of false or misleading Note Insurer Information or Underwriter Information; 
  

 24 

 (ii) any untrue statement or alleged untrue statement of a material fact contained in any
of the Capital One Information or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

  
 (iii) the misfeasance or malfeasance of, or
negligence or theft committed by, any director, officer, employee or agent of any COAF Company; 
  
 (iv) the violation by any COAF Company of any federal or state securities, banking or antitrust laws, rules or regulations in connection
with the issuance, offer and sale of the Notes or the transactions contemplated by the Transaction Documents; 
  
 (v) the violation by any COAF Company of any federal or state laws, rules or regulations relating to the Transaction or the origination of
the Receivables, including, without limitation, any consumer protection, lending and disclosure laws or any laws with respect to the maximum amount of interest permitted to be received on account of any loan of money or with respect to the
Receivables; 
  
 (vi) the breach by the Servicer,
the Issuer or COAF of any of its obligations under this Insurance Agreement or any of the other Transaction Documents (other than breaches under Section 3.2 of the Purchase Agreement or Section 2.2, 3.2, 3.3, 3.4 or 3.5 of the Sale and
Security Agreement); and 
  
 (vii) the breach by
the Servicer, the Issuer or COAF of any representation or warranty on the part of the Servicer, the Issuer or COAF contained in this Insurance Agreement or any of the other Transaction Documents or in any certificate or report furnished or delivered
to the Note Insurer thereunder other than any breach for which the remedy under the Transaction Documents is the repurchase of a Receivable, provided that such Receivable has been repurchased in accordance with the Transaction Documents. 

 
 This indemnity provision shall survive the termination of
this Insurance Agreement and shall survive until the statute of limitations has run on any causes of action which arise from one of these reasons and until all suits filed as a result thereof have been finally concluded. 
  
 (b) In addition to any and all rights of indemnification or
any other rights of the Servicer, the Issuer and COAF pursuant hereto or under law or equity, the Note Insurer agrees to pay, and to protect, indemnify and save harmless, the Servicer, the Issuer and COAF and their respective officers, directors,
shareholders, employees, agents and each person, if any, who controls the Servicer, the Issuer or COAF within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act (the “Capital One
Indemnified Parties”) from and against any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands, 
  

 25 

 damages, costs or reasonable expenses (including, without limitation, reasonable fees and expenses of
attorneys, consultants and auditors and reasonable costs of investigations) or obligations whatsoever paid by the Capital One Indemnified Parties (herein collectively referred to as “Liabilities”) of any nature arising out of or relating
to the transactions contemplated by the Transaction Documents by reason of: 
  
 (i) any untrue statement or alleged untrue statement of a material fact contained in any of the Note Insurer Information or any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 
  
 (ii) a breach of any of the representations, warranties or agreements of Note Insurer contained in Section 2.06 hereof; or

  
 (iii) any failure of the Note Insurer to make
a payment required to be made under the Policies. 
  
 (c) Any party which proposes to assert the right to be indemnified under this Section 3.04 will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim is to be
made against the indemnifying party under this Section 3.04(c), notify the indemnifying party of the commencement of such action, suit or proceeding, enclosing a copy of all papers served. In case any action, suit or proceeding shall be brought
against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in, and, to the extent that it shall wish, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any
legal or other expenses other than reasonable costs of investigation subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel in any such action the
defense of which is assumed by the indemnifying party in accordance with the terms of this subsection (c), but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of counsel by such
indemnified party has been authorized by the indemnifying party. The indemnifying party shall not be liable for any settlement of any action or claim effected without its consent. 
  
 Section 3.05. Payment Procedure. In the event of any payment by the Note Insurer, the Indenture Trustee and the
Servicer agree to accept the voucher or other evidence of payment as prima facie evidence of the propriety thereof and the liability therefor to the Note Insurer. All payments to be made to the Note Insurer under this Insurance Agreement shall be
made to the Note Insurer in lawful currency of the United States of America in immediately available funds at the notice address for the Note Insurer as specified in the Indenture on the date when due or as the Note Insurer shall otherwise
direct by written notice to the other parties hereto. In the event that the date of any payment to the Note Insurer or the expiration of any time period hereunder occurs on a day which is not a Business Day, then such payment or expiration of time
period 
  

 26 

 shall be made or occur on the next succeeding Business Day with the same force and effect as if such payment was made or
time period expired on the scheduled date of payment or expiration date. Payments to be made to the Note Insurer under this Insurance Agreement shall bear interest at the Late Payment Rate from the date when due to the date paid. 
  
 Section 3.06. Subrogation. The parties hereto acknowledge that, to the
extent of any payment made by the Note Insurer pursuant to the Policies, the Note Insurer shall be fully subrogated to the extent of such payment plus interest thereon at the Late Payment Rate, to the rights of the Noteholders or the Swap Provider,
as the case may be, to any moneys paid or payable in respect of the Notes or the Swap Agreement, as the case may be, under the Transaction Documents or otherwise subject to applicable law. The parties hereto agree to such subrogation and further
agree to execute such instruments and to take such actions as, in the sole and reasonable judgment of the Note Insurer, are necessary to evidence such subrogation and to perfect the rights of the Note Insurer to receive any such moneys paid or
payable in respect of the Notes or the Swap Agreement, under the Transaction Documents or otherwise. 
  
 Section 3.07. Reimbursement. The parties hereto acknowledge that, to the extent of any payment made by the Note Insurer pursuant to the Policies,
the Note Insurer has the right to be reimbursed such amounts plus interest thereon at the Late Payment Rate, all in accordance with Section 4.4 of the Sale and Servicing Agreement and in accordance with the priorities set forth therein for
reimbursement of the Note Insurer. 
  
 ARTICLE IV

  
 FURTHER AGREEMENTS 
  
 Section 4.01. Effective Date; Term of the Insurance Agreement. This
Insurance Agreement shall take effect on the Date of Issuance and shall remain in effect until the later of (a) such time as the Note Insurer is no longer subject to a claim under the Policies and the Policies shall have been surrendered to the
Note Insurer for cancellation and (b) all amounts payable to the Note Insurer by any COAF Company or from any other source under the Transaction Documents and all amounts payable under the Notes have been paid in full; provided, however, that
the provisions of Sections 3.03 and 3.04 hereof shall survive any termination of this Insurance Agreement. 
  
 Section 4.02. Further Assurances and Corrective Instruments. 
  
 (a) Excepting at such times as a default in payment under the Policies shall exist or shall have occurred,
none of the COAF Companies or the Indenture Trustee shall grant any waiver of rights under any of the Transaction Documents to which any of them is a party without the prior written consent of the Note Insurer, and any such waiver without the
written consent of the Note Insurer shall be null and void and of no force or effect. 
  
 (b) To the extent permitted by law, the COAF Companies agree that they will, from time to time, execute, acknowledge and deliver, or cause
to be executed, acknowledged and delivered, such supplements hereto and such further instruments as the 
  

 27 

 Note Insurer may reasonably request and as may be required in the Note Insurer’s reasonable judgment
to effectuate the intention of or facilitate the performance of this Insurance Agreement. 
  
 Section 4.03. Obligations Absolute. 
  
 (a) The obligations of the COAF Companies hereunder shall be absolute and unconditional and shall be paid or performed strictly in accordance with this Insurance Agreement under all circumstances irrespective of:

  
 (i) any lack of validity or enforceability
of, or any amendment or other modifications of, or waiver, with respect to any of the Transaction Documents, the Notes or the Policies; 
  
 (ii) any exchange or release of any other obligations hereunder; 
  
 (iii) the existence of any claim, setoff, defense, reduction, abatement or other right that any of the COAF
Companies may have at any time against the Note Insurer or any other Person; 
  
 (iv) any document presented in connection with the Policies proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (v) any payment by the Note Insurer under the Policies
against presentation of a certificate or other document that does not strictly comply with terms of the Policies; or 
  
 (vi) any failure of any of the COAF Companies to receive the proceeds from the sale of the Notes. 
  
 (b) Each of the COAF Companies and any and all others who
are now or may become liable for all or part of the obligations of any of the COAF Companies under this Insurance Agreement agree to be bound by this Insurance Agreement and (i) to the extent permitted by law, waive and renounce any and all
redemption and exemption rights and the benefit of all valuation and appraisement privileges against the indebtedness and obligations evidenced by any Transaction Document or by any extension or renewal thereof; (ii) waive presentment and
demand for payment, notices of nonpayment and of dishonor, protest of dishonor and notice of protest; (iii) waive all notices in connection with the delivery and acceptance hereof and all other notices in connection with the performance,
default or enforcement of any payment hereunder, except as required by the Transaction Documents; (iv) waive all rights of abatement, diminution, postponement or deduction, or any defense other than payment, or to any right of setoff or
recoupment arising out of any breach under any of the Transaction Documents, by any party thereto or any beneficiary thereof, or out of any obligation at any time owing to any of the COAF Companies; (v) agree that its liabilities hereunder
shall, except as otherwise expressly provided in this Section 4.03, be unconditional and without regard to any setoff, counterclaim or the liability of any other Person for the payment hereof; (vi) agree that 
  

 28 

 any consent, waiver or forbearance hereunder with respect to an event shall operate only for such event
and not for any subsequent event; (vii) consent to any and all extensions of time that may be granted by the Note Insurer with respect to any payment hereunder or other provisions hereof and to the release of any security at any time given for
any payment hereunder, or any part thereof, with or without substitution, and to the release of any Person or entity liable for any such payment; and (viii) consent to the addition of any and all other makers, endorsers, guarantors and other
obligors for any payment hereunder, and to the acceptance of any and all other security for any payment hereunder, and agree that the addition of any such obligors or security shall not affect the liability of the parties hereto for any payment
hereunder. 
  
 (c) Nothing herein shall be
construed as prohibiting any COAF Company from pursuing any rights or remedies it may have against any other Person in a separate legal proceeding. 
  
 Section 4.04. Assignments; Reinsurance; Third-party Rights. 
  
 (a) This Insurance Agreement shall be a continuing obligation of the parties hereto and shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. No COAF Company may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written
consent of the Note Insurer. 
  
 (b) The Note
Insurer shall have the right to give participations in its rights under this Insurance Agreement and to enter into contracts of reinsurance with respect to the Policies upon such terms and conditions as the Note Insurer may in its discretion
determine; provided, however, that no such participation or reinsurance agreement or arrangement shall relieve the Note Insurer of any of its obligations hereunder or under the Policies. 
  
 (c) In addition, the Note Insurer shall be entitled to assign or pledge to any bank or other lender
providing liquidity or credit with respect to the Transaction or the obligations of the Note Insurer in connection therewith any rights of the Note Insurer under the Transaction Documents or with respect to any real or personal property or other
interests pledged to the Note Insurer, or in which the Note Insurer has a security interest, in connection with the Transaction. 
  
 (d) Except as provided herein with respect to participants and reinsurers, nothing in this Insurance Agreement shall confer any right,
remedy or claim, express or implied, upon any Person, including, particularly, any Owner, other than the Note Insurer against any COAF Company, and all the terms, covenants, conditions, promises and agreements contained herein shall be for the sole
and exclusive benefit of the parties hereto and their successors and permitted assigns. Neither the Indenture Trustee, the Issuer nor any Owner shall have any right to payment from any Premiums paid or payable hereunder or under the Indenture or
from any other amounts paid by any COAF Company pursuant to Section 3.02, 3.03 or 3.04 hereof. 
  

 29 

 Section 4.05. Liability of the Note Insurer. Neither the Note Insurer nor any of its officers,
directors or employees shall be liable or responsible for (a) the use that may be made of the Policies by the Indenture Trustee, or the Swap Provider, as applicable, or for any acts or omissions of the Indenture Trustee in connection therewith;
or (b) the validity, sufficiency, accuracy or genuineness of documents delivered to the Note Insurer (or its Fiscal Agent) in connection with any claim under the Policies, or of any signatures thereon, even if such documents or signatures
should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged (unless the Note Insurer shall have actual knowledge thereof). In furtherance and not in limitation of the foregoing, the Note Insurer may accept documents
that appear on their face to be in order, without responsibility for further investigation. 
  
 Section 4.06. Nonpetition Covenant. Each party hereto agrees that, prior to the date which is one year and one day after payment in full of all obligations of each Bankruptcy Remote Party in respect of all
securities issued by any Bankruptcy Remote Party involved in this Transaction (a) such party shall not authorize such Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of or taking possession by any such official in an
involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of, its creditors generally, any party hereto or any other creditor of such Bankruptcy Remote Party, and (b) of
the parties hereto shall commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect in any
jurisdiction. This Section shall survive the termination of this Agreement. 
  
 Section 4.07. Parties To Join in Enforcement Action. 
  
 (a) To the extent necessary to enforce any right of the Note Insurer in or remedy of the Note Insurer under any Receivable or related
asset, the Indenture Trustee, the Issuer and each COAF Company agree to join in any action initiated by the Indenture Trustee or the Note Insurer for the protection of such right or exercise of such remedy. 
  
 (b) In the event of any court proceeding (x) with
respect to which a COAF Company is a party (including, without limitation, an insolvency or bankruptcy proceeding in respect of any COAF Company) which affects the Trust Estate, the Policies or the obligations of the Note Insurer under the
Transaction Documents, and (y) with respect to which such COAF Company fails to defend or answer, the Note Insurer shall have the right to direct, assume or otherwise participate in the defense thereof. In such event, the Note Insurer shall,
following written notice to the Indenture Trustee, have the exclusive-right to determine, in its sole discretion, the actions necessary to preserve and protect the Trust Estate. All costs and expenses of the Note Insurer in connection with such
action, proceeding or investigation, (including, without limitation, any judgment or settlement entered into or paid by the Note Insurer), shall be included in the Reimbursement Obligations. 
  

 30 

 (c) The Indenture Trustee shall cooperate with, and take such action as directed by, the
Note Insurer, including (without limitation) entering into such agreements and settlements as the Note Insurer in its sole discretion shall direct with respect to such court proceeding. The Indenture Trustee shall not be liable to the Note Insurer
for any such action that conforms to the direction of the Note Insurer. The Indenture Trustee’s reasonable out-of-pocket costs and expenses (including attorneys’ fees and expenses) with respect to any such action shall be reimbursed
pursuant to Section 4.4 of the Sale and Servicing Agreement; provided, however, that if such costs and expenses are not so reimbursed on the Payment Date immediately following the date incurred, then the Note Insurer shall reimburse the
Indenture Trustee for such costs and expenses within 60 days of such nonpayment. 
  
 (d) The Indenture Trustee hereby agrees to provide to the Note Insurer prompt written notice of any action, proceeding or investigation
that names the Owner Trustee or the Issuer as a party or that could adversely affect the Trust Estate or the rights or obligations of the Note Insurer hereunder or under the Policies or the other Transaction Documents, including (without limitation)
any insolvency or bankruptcy proceeding in respect of the Servicer, COAF, the Seller or any affiliate thereof. 
  
 (e) Notwithstanding anything contained herein or in any of the other Transaction Documents to the contrary, the Indenture Trustee shall
not, without the Note Insurer’s prior written consent or unless directed by the Note Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation affecting the Owner Trustee, the Issuer or the
Trust Estate or the rights or obligations of the Note Insurer hereunder or under the Policies or the other Transaction Documents. 
  
 ARTICLE V 
  
 DEFAULTS; REMEDIES 
  
 Section 5.01. Defaults. The occurrence of any of the following events shall constitute an Event of Default hereunder: 
  
 (a) An Insurance Agreement Event of Default shall occur and be continuing; 
  
 (b) (i) Any COAF Company shall fail to pay when due any amount payable by such COAF Company hereunder
and such failure has continued for a period of at least five (5) Business Days upon receipt of notice by the applicable COAF Company from the Note Insurer, or if specified in the applicable Transaction Document, the applicable grace period set
forth therein, or (ii) a legislative body has enacted any law that declares or a court of competent jurisdiction shall find or rule that any of the Transaction Documents are not valid and binding on any COAF Company; 
  
 (c) A decree or order of a court or agency or supervisory
authority having jurisdiction in the premises in an involuntary case under any present or future federal or 
  

 31 

 state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator
or other similar official in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against any COAF Company and such decree or
order shall have remained in force undischarged or unstayed for a period of 90 consecutive days; 
  
 (d) Any COAF Company shall consent to the appointment of a conservator or receiver or liquidator or other similar official in any
insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to any COAF Company or of or relating to all or substantially all of the property of any of them; or 
  
 (e) Any COAF Company shall admit in writing its inability to
pay its debts generally as they become due, file a petition to take advantage of or otherwise voluntarily commence a case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar statute, make an assignment for the
benefit of its creditors or voluntarily suspend payment of its obligations. 
  
 Section 5.02. Remedies; No Remedy Exclusive. 
  
 (a) Upon the occurrence of an Event of Default, the Note Insurer may exercise any one or more of the rights and remedies set forth below:

  
 (i) declare all indebtedness of every type or
description then owed by any COAF Company to the Note Insurer pursuant to the Transaction Documents to be immediately due and payable, and the same shall thereupon be immediately due and payable; provided, however, that any such payment by the
Seller or the Issuer shall be paid in accordance with Section 4.4 of the Sale and Servicing Agreement; 
  
 (ii) exercise any rights and remedies under the Transaction Documents in accordance with the terms of the Transaction Documents or direct
the Indenture Trustee to exercise such remedies in accordance with the terms of the Transaction Documents; or 
  
 (iii) take whatever action at law or in equity as may appear necessary or desirable in its judgment to collect the amounts then due under
this Insurance Agreement or the Transaction Documents or to enforce performance and observance of any obligation, agreement or covenant of any COAF Company under this Insurance Agreement or the Transaction Documents. 
  
 (b) Unless otherwise expressly provided, no remedy herein
conferred upon or reserved is intended to be exclusive of any other available remedy, but each remedy shall be cumulative and shall be in addition to other remedies given under this Insurance Agreement, the Transaction Documents or existing at law
or in equity. No delay or omission to exercise any right or power accruing under this Insurance Agreement or the Transaction Documents upon the happening of any event set forth in Section 5.01 hereof shall impair any such right or power or
shall be construed to be a waiver thereof, but any 
  

 32 

 such right and power may be exercised from time to time and as often as may be deemed expedient. In order
to entitle the Note Insurer to exercise any remedy reserved to the Note Insurer in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. 
  
 (c) Each party to this Insurance Agreement hereby agrees
that, in addition to any other rights or remedies existing in its favor, it shall be entitled to specific performance and/or injunctive relief in order to enforce any of its rights or any obligation owed to it under the Transaction Documents.

  
 Section 5.03. Waivers. 
  
 (a) No failure by the Note Insurer to exercise, and no delay
by the Note Insurer in exercising, any right hereunder shall operate as a waiver thereof. The exercise by the Note Insurer of any right hereunder shall not preclude the exercise of any other right, and the remedies provided herein to the Note
Insurer are declared in every case to be cumulative and not exclusive of any remedies provided by law or equity. 
  
 (b) The Note Insurer shall have the right, to be exercised in its complete discretion, to waive any Event of Default hereunder, by a
writing setting forth the terms, conditions and extent of such waiver signed by the Note Insurer and delivered to the Servicer. Unless such writing expressly provides to the contrary, any waiver so granted shall extend only to the specific event or
occurrence which gave rise to the Event of Default so waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
  
 ARTICLE VI 
  
 MISCELLANEOUS 
  
 Section 6.01. Amendments, Etc. This Insurance Agreement may be amended, modified or terminated only by written instrument or written instruments
signed by the parties hereto. The Servicer agrees to promptly provide a copy of any amendment to this Insurance Agreement to the Indenture Trustee and the Rating Agencies. No act or course of dealing shall be deemed to constitute an amendment,
modification or termination hereof. 
  
 Section 6.02.
Notices. All demands, notices and other communications to be given hereunder shall be in writing (except as otherwise specifically provided herein) and shall be mailed by registered mail or personally delivered or telecopied to the recipient as
follows: 
  

			
	To the Note Insurer:	  	MBIA Insurance Corporation
	 	  	113 King Street
	 	  	Armonk, NY 10504
	 	  	Attention: Insured Portfolio Management - Structured
	 	  	                  Finance (IPM-SF) (Capital One 2005-D)
	 	  	Facsimile: (914) 765-3810
	 	  	Confirmation: (914) 765-3781

  

 33 

			
	To the Servicer:	  	Capital One Auto Finance, Inc.
	 	  	1680 Capital One Drive
	 	  	McLean, VA 22102
	 	  	Attention: Director of Securitization
	 	  	Facsimile: (703) 720-2121
	 	  	Confirmation: (703) 720-1000
		
	With a copy to:	  	Capital One Auto Finance, Inc.
	 	  	1680 Capital One Drive
	 	  	McLean, VA 22102
	 	  	Attention: Legal Department
	 	  	Facsimile: (703) 720-2121
	 	  	Confirmation: (703) 875-1000
		
	To COAF:	  	Capital One Auto Finance, Inc.
	 	  	1680 Capital One Drive
	 	  	McLean, VA 22102
	 	  	Attention: Director of Securitization
	 	  	Facsimile: (703) 720-2121
	 	  	Confirmation: (703) 720-1000
		
	With a copy to:	  	Capital One Auto Finance, Inc.
	 	  	1680 Capital One Drive
	 	  	McLean, VA 22102
	 	  	Attention: Legal Department
	 	  	Facsimile: (703) 720-2121
	 	  	Confirmation: (703) 720-1000
		
	To the Seller:	  	Capital One Auto Receivables, LLC
	 	  	140 E. Shore Drive, Room 1052-D
	 	  	Glen Allen, VA 23059
	 	  	Attention: Capital Markets
	 	  	Facsimile: (804) 290-6666
	 	  	Confirmation: (804) 290-6736
		
	With a copy to:	  	Capital One Auto Receivables, LLC
	 	  	1680 Capital One Drive
	 	  	McLean, VA 22102
	 	  	Attention: Legal Department
	 	  	Facsimile: (703) 720-2121
	 	  	Confirmation: (703) 720-1000

  

 34 

			
	To the Indenture Trustee:	  	JPMorgan Chase Bank, N.A.
	 	  	6th Floor
	 	  	4 New York Plaza,
	 	  	New York, NY 10004-2413
	 	  	 Attention: Worldwide Securities Services/Structured
 Finance Services-Capital One Auto Finance 2005-D

	 	  	Facsimile: (212) 623-5932
	 	  	Confirmation: (212) 623-5379
		
	To the Issuer:	  	Capital One Auto Finance Trust 2005-D
	 	  	c/o Wilmington Trust Company
	 	  	Rodney Square North
	 	  	North Market Street
	 	  	Wilmington, DE 19890
	 	  	Attention: Corporate Trust Administration—
	 	  	                  Capital One Auto Finance Trust 2005-D
	 	  	Facsimile: (302) 651-8653
	 	  	Confirmation: (302) 651-8882

  
 A party may specify an
additional or different address or addresses by writing mailed or delivered to the other parties as aforesaid. All such notices and other communications shall be effective upon receipt. 
  
 Section 6.03. Severability. In the event that any provision of this Insurance Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, the parties hereto agree that such holding shall not invalidate or render unenforceable any other provision hereof. The parties hereto further agree that the holding by any court of competent
jurisdiction that any remedy pursued by any party hereto is unavailable or unenforceable shall not affect in any way the ability of such party to pursue any other remedy available to it. 
  
 Section 6.04. Governing Law. This Insurance Agreement shall be governed by and construed in accordance with the laws
of the State of New York. 
  
 Section 6.05. Consent to
Jurisdiction. 
  
 (a) The parties hereto
hereby irrevocably submit to the jurisdiction of the United States District Court for the Southern District of New York and any court in the State of New York located in the City and County of New York, and any appellate court
from any thereof, in any action, suit or proceeding brought against it and to or in connection with any of the Transaction Documents or the transactions contemplated thereunder or for recognition or enforcement of any judgment, and the parties
hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may be heard or determined in such New York state court or, to the extent permitted by taw, in such federal court. The parties
hereto agree that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, the
parties hereto hereby waive and agree not to 
  

 35 

 assert by way of motion, as a defense or otherwise in any such suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that the related documents or the subject
matter thereof may not be litigated in or by such courts. 
  
 (b) To the extent permitted by applicable law, the parties hereto shall not seek and hereby waive the right to any review of the judgment of any such court by any court of any other nation or jurisdiction which may be
called upon to grant an enforcement of such judgment. 
  
 (c) Nothing contained in this Insurance Agreement shall limit or affect the Note Insurer’s right to serve process in any other manner permitted by law or to start legal proceedings relating to any of the Transaction Documents against
any COAF Company or its or their property in the courts of any jurisdiction. 
  
 Section 6.06. Consent of the Note Insurer. In the event that the consent of the Note Insurer is required under any of the Transaction Documents, the determination whether to grant or withhold such consent shall
be made by the Note Insurer in its sole discretion without any implied duty towards any other Person, except as otherwise expressly provided therein. 
  
 Section 6.07. Counterparts. This Insurance Agreement may be executed in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument. 
  
 Section 6.08.
Headings. The headings of Articles and Sections and the Table of Contents contained in this Insurance Agreement are provided for convenience only. They form no part of this Insurance Agreement and shall not affect its construction or
interpretation. Unless otherwise indicated, all references to Articles and Sections in this Insurance Agreement refer to the corresponding Articles and Sections of this Insurance Agreement. 
  
 Section 6.09. Trial by Jury Waived. Each party hereto hereby waives,
to the fullest extent permitted by law, any right to a trial by jury in respect of any litigation arising directly or indirectly out of, under or in connection with any of the Transaction Documents or any of the transactions contemplated thereunder.
Each party hereto (a) certifies that no representative, agent or attorney of any party hereto has represented, expressly or otherwise, that it would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it has been induced to enter into the Transaction Documents to which it is a party by, among other things, this waiver. 
  
 Section 6.10. Limited Liability. No recourse under any Transaction Document shall be had against, and no personal liability shall attach to, any
officer, employee, director, affiliate or shareholder of any party hereto, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise in respect of any of the Transaction Documents,
the Notes or the Policies, it being expressly agreed and understood that each Transaction Document is solely a corporate obligation of each party hereto, and that any and all personal liability, either at common law or in equity, or by statute or
constitution, of every such 
  

 36 

 officer, employee, director, affiliate or shareholder for breaches by any party hereto of any obligations under any
Transaction Document is hereby expressly waived as a condition of and in consideration for the execution and delivery of this Insurance Agreement. 
  
 Section 6.11. Entire Agreement. This Insurance Agreement and the Policies set forth the entire agreement between the parties with respect to the
subject matter thereof, and this Insurance Agreement supersedes and replaces any agreement or understanding that may have existed between the parties prior to the date hereof in respect of such subject matter. 
  
 Section 6.12. Limitation of Liability. It is expressly understood and
agreed by and among the parties hereto (a) that this Insurance Agreement is executed and delivered by Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee under the Amended and Restated Trust Agreement dated as
of December 1, 2005 with Capital One Auto Receivables, LLC (the “Trust Agreement”) in the exercise of the power and authority conferred and vested in it as such Owner Trustee, (b) each of the representations, undertakings and
agreements made herein by the Issuer are not personal representations, undertakings and agreements of Wilmington Trust Company, but are binding only on the Issuer, (c) nothing contained herein shall be construed as creating any liability on
Wilmington Trust Company, individual or personally, to perform any covenant of the Issuer either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through
or under any such party, and (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuer under this Insurance Agreement. 
  
 [Remainder of page intentionally left blank] 
  

 37 

 IN WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement, all as of the day and year
first above mentioned. 
  

			
	MBIA INSURANCE CORPORATION,
	as Note Insurer
		
	By	 	 /s/ Adam M. Carta

	Name	 	 Adam M. Carta

	Title	 	 Assistant Secretary

	
	 CAPITAL ONE AUTO FINANCE, INC.,
 as Servicer
and in its capacity as seller under the
 Purchase Agreement

		
	By	 	 /s/ Jerry Hamstead

	Name	 	 Jerry Hamstead

	Title	 	 Assistant Vice President

	
	 CAPITAL ONE AUTO RECEIVABLES, LLC,
 as
Seller

		
	By	 	 /s/ Albert A. Ciafre

	Name	 	 Albert A. Ciafre

	Title	 	 Assistant Vice President

	
	CAPITAL ONE AUTO FINANCE TRUST 2005-D
		
	By	 	 WILMINGTON TRUST COMPANY, not
 in its individual capacity
but solely in its
 capacity as Owner Trustee

		
	By	 	 /s/ Michele C. Harra

	Name	 	 Michele C. Harra

		
	Title	 	 Financial Services Officer

  
 Capital One Auto Finance Trust
2005-D 
 Insurance Agreement Signature Page 

			
	JPMORGAN CHASE BANK, N.A.,
	 not in its individual capacity but solely as
 Indenture Trustee

		
	By	 	 /s/    Melissa Wilman

	Name	 	 Melissa Wilman

	Title	 	 Vice President

  
 Capital One Auto Finance Trust
2005-D 
 Insurance Agreement Signature Page 
  

 2Amended and Restated Credit Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 $550,000,000 
  
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 dated as of December 1, 2005 
  
  
 among 
  
  
 THE STANLEY WORKS, 
 as Initial Borrower 
  
  
 and 
  
  
 THE INITIAL LENDERS NAMED HEREIN,

 as Initial Lenders 
  
  
 and 
  
  
 CITIBANK, N.A., 
 as Administrative Agent 
  
  
 CITIGROUP GLOBAL MARKETS INC., 
 as Lead Arranger and Book Runner 
  
  
 BANK OF AMERICA, N.A. 
 BNP PARIBAS and 
 UBS SECURITIES LLC,

 as Co-Syndication Agents 

 TABLE OF CONTENTS 
  

			
	 	  	Page

	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	1
	 SECTION 1.01. Certain Defined Terms.
	  	1
	 SECTION 1.02. Computation of Time Periods; Terms Generally.
	  	14
	 SECTION 1.03. Accounting Terms.
	  	14
		
	 ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
	  	14
	 SECTION 2.01. The Commitment.
	  	14
	 SECTION 2.02. Making the Committed Advances.
	  	16
	 SECTION 2.03. Fees.
	  	19
	 SECTION 2.04. Continuation and Conversion.
	  	20
	 SECTION 2.05. Interest on Advances.
	  	21
	 SECTION 2.06. Additional Interest on Eurocurrency Rate Advances.
	  	21
	 SECTION 2.07. Repayment; Prepayment of Advances; Etc.
	  	22
	 SECTION 2.08. Increased Costs.
	  	23
	 SECTION 2.09. Payments and Computations.
	  	24
	 SECTION 2.10. Taxes.
	  	26
	 SECTION 2.11. Promissory Notes.
	  	26
	 SECTION 2.12. Use of Proceeds of Advances.
	  	27
	 SECTION 2.13. Uncommitted Advances.
	  	27
	 SECTION 2.14. Borrowings by Designated Borrowers.
	  	30
	 SECTION 2.15. European Monetary Union.
	  	31
		
	 ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING
	  	32
	 SECTION 3.01. Condition Precedent to Effectiveness.
	  	32
	 SECTION 3.02. Conditions Precedent to Each Advance.
	  	33
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	34
	 SECTION 4.01. Representations and Warranties of the Company.
	  	34
		
	 ARTICLE V COVENANTS OF THE BORROWER
	  	36
	 SECTION 5.01. Affirmative Covenants.
	  	36
	 SECTION 5.02. Negative Covenants.
	  	38
		
	 ARTICLE VI EVENTS OF DEFAULT
	  	40
	 SECTION 6.01. Events of Default.
	  	40
		
	 ARTICLE VII THE ADMINISTRATIVE AGENT
	  	42
	 SECTION 7.01. Authorization and Action.
	  	42
	 SECTION 7.02. Administrative Agent’s Reliance, Etc.
	  	42
	 SECTION 7.03. Citibank and Affiliates.
	  	43

  

 (i) 

			
	 SECTION 7.04. Lender Credit Decision.
	  	43
	 SECTION 7.05. Indemnification.
	  	43
	 SECTION 7.06. Successor Administrative Agent.
	  	43
		
	 ARTICLE VIII MISCELLANEOUS
	  	44
	 SECTION 8.01. Amendments, Etc.
	  	44
	 SECTION 8.02. Notices, etc.
	  	44
	 SECTION 8.03. No Waiver; Remedies.
	  	46
	 SECTION 8.04. Costs and Expenses; Breakage Indemnification.
	  	46
	 SECTION 8.05. Sharing of Payments, Etc.
	  	47
	 SECTION 8.06. Binding Effect.
	  	47
	 SECTION 8.07. Assignments and Participations.
	  	48
	 SECTION 8.08. Limitation on Assignments and Participations.
	  	50
	 SECTION 8.09. Withholding.
	  	50
	 SECTION 8.10. Mitigation.
	  	51
	 SECTION 8.11. Governing Law; Waiver of Jury Trial.
	  	51
	 SECTION 8.12. Execution in Counterparts.
	  	51
	 SECTION 8.13. Submission to Jurisdiction; Etc.
	  	51
	 SECTION 8.14. Judgment Currency.
	  	52
	 SECTION 8.15. USA PATRIOT Act.
	  	52
		
	 ARTICLE IX GUARANTEE
	  	53
	 SECTION 9.01. Guarantee
	  	53
	 SECTION 9.02. Acknowledgments, Waivers and Consents
	  	53
	 SECTION 9.03. Reinstatement
	  	56
	 SECTION 9.04. Subrogation
	  	56
	 SECTION 9.05. Remedies
	  	56
	 SECTION 9.06. Payments
	  	56

  

			
	 SCHEDULE I
	  	 ADDRESSES, APPLICABLE LENDING OFFICES AND COMMITMENTS

		
	 SCHEDULE II
	  	 MANDATORY COST RATE

		
	 SCHEDULE III
	  	 DESIGNATED BORROWER JURISDICTIONS

		
	 EXHIBIT A-1
	  	 FORM OF RATE REQUEST

		
	 EXHIBIT A-2
	  	 FORM OF NOTICE OF BORROWING

		
	 EXHIBIT B
	  	 FORM OF NOTICE OF CONVERSION OR CONTINUATION

		
	 EXHIBIT C
	  	 FORM OF QUOTE REQUEST

		
	 EXHIBIT D
	  	 FORM OF QUOTE

		
	 EXHIBIT E
	  	 FORM OF ACCEPTANCE

		
	 EXHIBIT F-1
	  	 FORM OF OPINION OF COUNSEL TO THE BORROWER

		
	 EXHIBIT F-2
	  	 FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO THE ADMINISTRATIVE AGENT

		
	 EXHIBIT G
	  	 FORM OF ASSIGNMENT AND ACCEPTANCE

		
	 EXHIBIT H-1
	  	 FORM OF COMMITTED NOTE

		
	 EXHIBIT H-2
	  	 FORM OF UNCOMMITTED NOTE

		
	 EXHIBIT I
	  	 FORM OF DESIGNATION LETTER

	 EXHIBIT J
	  	 FORM OF TERMINATION LETTER

  

 (ii) 

 CREDIT AGREEMENT 
  

This AMENDED AND RESTATED CREDIT AGREEMENT (as amended, supplemented or otherwise modified from time to time, the “Agreement”) is made
as of this 1st day of December, 2005 between THE STANLEY WORKS, a Connecticut corporation (the
“Company”), the banks, financial institutions and other institutional lenders (the “Initial Lenders”) listed on the signature pages hereof, and CITIBANK, N.A. (“Citibank”), as administrative agent
(in such capacity, the “Administrative Agent”) for the Lenders (as hereinafter defined). 
  
 The Company, certain banks, financial institutions and other institutional lenders and the Administrative Agent are parties to a Credit Agreement dated as
of October 14, 2004 (as amended, supplemented or otherwise modified from time to time, and as in effect on the date hereof, the “Existing Credit Agreement”), providing for the making of loans by such banks, financial
institutions and other institutional lenders to the Company in an aggregate principal amount at any one time outstanding not exceeding $400,000,000. 
  
 The parties hereto wish to amend the Existing Credit Agreement to, among other things, increase the aggregate amount of the Commitments to $550,000,000,
permit the Company to designate certain of its Subsidiaries as borrowers hereunder, permit such Subsidiaries to borrow in Alternate Currencies (as defined below) and make certain other amendments and to restate the entire Existing Credit Agreement,
as so amended, as set forth herein. 
  
 Accordingly, subject to
the occurrence of the Effective Date (as defined below), the parties hereto hereby agree that the Existing Credit Agreement is amended and restated to read in its entirety 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): 
  
 “Acquiring Person” means any person (other than the ESOP) who is or becomes the beneficial owner, directly or indirectly, of 10% or more of the Company’s outstanding common stock. 
  
 “Advance” means a Committed Advance or an Uncommitted
Advance. For the purposes of determining the unutilized amount of each Lender’s Commitment at any time, the amount of each Advance of such Lender that is outstanding in an Alternate Currency shall be deemed to be the Dollar Equivalent of the
amount of such Advance. 
  

 1 

 “Administrative Agent’s Account” means, with respect to any Currency, the account
of the Administrative Agent maintained by the Administrative Agent for such Currency and most recently designated by it by notice to the Lenders and the Company. 
  
 “Alternate Currencies” means Euros and Pounds Sterling. 
  
 “Applicable Eurocurrency Margin” means, on any date for each
Eurocurrency Rate Advance, (i) 0.1300% if on such date the Company’s outstanding Long-Term Indebtedness is rated A+ or higher by Standard & Poor’s or A1 or higher by Moody’s, (ii) 0.1700% if on such date clause
(i) is inapplicable and the Company’s outstanding Long-Term Indebtedness is rated A or higher by Standard & Poor’s or A2 or higher by Moody’s, (iii) 0.2600% if on such date clauses (i) and (ii) are
inapplicable and the Company’s outstanding Long-Term Indebtedness is rated A- or higher by Standard & Poor’s or A3 or higher by Moody’s, (iv) 0.3750% if on such date clauses (i), (ii) and (iii) are inapplicable
and the Company’s outstanding Long-Term Indebtedness is rated BBB+ or higher by Standard & Poor’s or Baa1 or higher by Moody’s, (v) 0.5750% if on such date clauses (i), (ii), (iii) and (iv) are inapplicable
(including if such Long-Term Indebtedness is no longer rated by either agency); provided that if the respective levels of the Company’s outstanding Long-Term Indebtedness credit ratings differ, the “Applicable Eurocurrency
Margin” will be determined based on the level one above that level applicable to the lower of said credit ratings. 
  
 “Applicable Facility Fee Rate” means, on any date, a rate per annum equal to (i) 0.0700% if on such date the Company’s
outstanding Long-Term Indebtedness is rated A+ or higher by Standard & Poor’s or A1 or higher by Moody’s, (ii) 0.0800% if on such date clause (i) is inapplicable and the Company’s outstanding Long-Term Indebtedness
is rated A or higher by Standard & Poor’s or A2 or higher by Moody’s, (iii) 0.0900% if on such date clauses (i) and (ii) are inapplicable and the Company’s outstanding Long-Term Indebtedness is rated A- or
higher by Standard & Poor’s or A3 or higher by Moody’s, (iv) 0.1250% if on such date clauses (i), (ii) and (iii) are inapplicable and the Company’s outstanding Long-Term Indebtedness is rated BBB+ or higher by
Standard & Poor’s or Baa1 or higher by Moody’s, and (v) 0.1750% if on such date clauses (i), (ii), (iii) and (iv) are inapplicable (including if such Long-Term Indebtedness is no longer rated by either agency);
provided that if the respective levels of the Company’s outstanding Long-Term Indebtedness credit ratings differ, the “Applicable Facility Fee Rate” will be determined based on the level one above that level applicable to the
lower of said credit ratings. 
  
 “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 Eurocurrency Lending Office in the case of a Eurocurrency Rate Advance and, in the case of an
Uncommitted Advance, the office of such Lender notified by such Lender to the Administrative Agent and the Company as its Applicable Lending Office with respect to such Uncommitted Advance. 
  
 “Applicable Utilization Fee Rate” means, for each day on
which the Utilization Ratio exceeds 0.50, a rate per annum equal to (i) 0.1000% if on such date the Company’s outstanding Long-Term Indebtedness is rated A- or higher by Standard & Poor’s or A3 or higher by Moody’s, and
(ii) 0.1250% if on such date clause (i) is inapplicable (including if such Long-Term Indebtedness is no longer rated by either agency); provided that if the respective levels of the Company’s outstanding Long-Term Indebtedness
credit ratings differ, the “Applicable Utilization Fee Rate” will be determined based on the level one above that level applicable to the lower of said credit ratings. 
  
 CREDIT AGREEMENT 
  

 2 

 “Assignment and Acceptance” means an assignment and acceptance accepted by the
Administrative Agent in substantially the form of Exhibit G hereto. 
  
 “Base Rate” means 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 the Reference
Bank in New York, New York, from time to time, as its base rate; 
  
 (b) 1/2 of one percent per annum above the Federal Funds Rate. 
  
 “Base Rate Advance” means a Committed Advance denominated in Dollars that bears interest as provided in Section 2.05(a). 
  
 “Borrowers” means, collectively, the Company and each Designated Borrower. 
  
 “Borrowing” means a Committed Borrowing or an Uncommitted
Borrowing. 
  
 “Business Day” means a day of the
year (a) on which banks are not required or authorized to close in New York City, (b) if the applicable Business Day relates to any Eurocurrency Rate Advances, on which dealings in Dollars are carried on in the London interbank market
(c) if such day relates to a Borrowing of, or a payment or prepayment of principal of or interest on or an Interest Period for an Advance denominated in Pounds Sterling, or a notice with respect thereto, that is also a day on which commercial
banks and foreign exchange markets settle payments in London, and (d) if such day relates to a Borrowing of, or a payment or prepayment of principal of or interest on or an Interest Period for an Advance denominated in Euros, or a notice with
respect thereto, that is also a Target Operating Day. 
  
 “Capital Lease” means any lease of property, real or personal, the obligations under which are capitalized on the consolidated balance sheet of the Company and its Subsidiaries. 
  
 “Change of Control” means, with respect to the Company, the
occurrence of any event, act or condition which results in either (i) any Person other than the ESOP becoming the beneficial owner, directly or indirectly, of 30% or more of the outstanding common stock of the Company or (ii) individuals
who constitute the Continuing Directors ceasing for any reason to constitute at least the majority of the Board of Directors of the Company. 
  
 “Citibank” has the meaning specified in the first paragraph of this Agreement. 
  
 “Commitment” means, with respect to any Lender, the amount
specified opposite such Lender’s name on Schedule I hereto or, if such Lender has entered into any Assignment and Acceptance, set forth for such Lender in the Register maintained by the Administrative Agent pursuant to Section 8.07(d), as
such amount may be increased pursuant to Section 2.01(c) or reduced pursuant to Section 2.01(b). The aggregate amount of the Commitments on the date hereof is $550,000,000. 
  
 CREDIT AGREEMENT 
  

 3 

 “Committed Advance” means an advance by a Lender to a Borrower as part of a Committed
Borrowing and refers to a Base Rate Advance or a Eurocurrency Rate Advance, each of which shall be a “Type” of Committed Advance. 
  
 “Committed Borrowing” means a borrowing consisting of simultaneous Committed Advances of the same Type made by each of the Lenders to a
Borrower pursuant to Section 2.01. 
  
 “Committed
Note” has the meaning provided in Section 2.11. 
  
 “Consolidated Net Tangible Assets” means the excess over current liabilities of all assets properly appearing on a consolidated balance sheet of the Company and its Subsidiaries after deducting goodwill, trademarks,
patents, other like intangibles and the minority interests of others in Subsidiaries. 
  
 “Consolidated Subsidiary” means at any date any Subsidiary or other entity the financial statements of which would, under GAAP, be consolidated with those of the Company in its consolidated financial
statements as of such date. 
  
 “Contingent
Obligation” as to any Person means any obligation of such Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor or otherwise to maintain
the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. 
  
 “Continuing Director” means any member of the Board of
Directors of the Company who is not affiliated with an Acquiring Person and who is a member of the Board of Directors of the Company immediately prior to the time that the Acquiring Person became an Acquiring Person and any successor to a Continuing
Director who is not affiliated with the Acquiring Person and is recommended to succeed a Continuing Director by a majority of Continuing Directors who are then members of the Board of Directors of the Company. 
  
 CREDIT AGREEMENT 
  

 4 

 “Currency” means either Dollars or an Alternate Currency. 
  
 “Default” means an event which would constitute an Event of
Default but for the giving of notice, the lapse of time or both. 
  
 “Designated Borrowers” means any Subsidiary of the Company as to which a Designation Letter has been delivered to the Administrative Agent in accordance with and together with the other documents required by
Section 2.14, and no Termination Letter has been delivered to the Administrative Agent thereunder. 
  
 “Designation Letter” has the meaning provided in Section 2.l4. 
  
 “Dollar Equivalent” means, with respect to any amount denominated in an Alternate Currency on any date, the
amount of Dollars that would be required to purchase such amount of such Alternate Currency at or about 11:00 A.M. (Local Time) on such date, for delivery two Business Days later, as determined by the Administrative Agent on the basis of the spot
selling rate for the offering of such Alternate Currency for Dollars in the London foreign exchange market, determinations thereof made in good faith by the Administrative Agent to be conclusive and binding on the parties in the absence of manifest
error. 
  
 “Dollars” and “$”
mean lawful money of the United States of America. 
  
 “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 hereto or in the Assignment and Acceptance or the
accession agreement pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify in writing to the Company and the Administrative Agent. 
  
 “EBITDA” means, for any period, the sum (without
duplication) for the Company and its Consolidated Subsidiaries on a consolidated basis of the following: (a) net income for such period plus (b) to the extent deducted in determining net income for such period, the sum of
(i) depreciation and amortization for such period, (ii) Interest Expense for such period and (iii) taxes for such period. 
  
 “Effective Date” has the meaning provided in Section 3.01. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any
successors thereto, and the regulations promulgated and the rulings found thereunder. 
  
 “ERISA Controlled Group” means a group consisting of any ERISA Person and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common
control with such Person that, together with such Person, are treated as a single employer under regulations promulgated under ERISA. 
  
 “ERISA Person” has the meaning provided in Section 3(9) of ERISA for the term “person.” 
  
 CREDIT AGREEMENT 
  

 5 

 “ERISA Plan” means (i) any Plan that (x) is not a Multiemployer Plan and
(y) has Unfunded Benefit Liabilities in excess of $20,000,000 and (ii) any Plan that is a Multiemployer Plan. 
  
 “ESOP” means Stanley Account Value Plan or any successor plan. 
  
 “Euro” has the meaning provided in Section 2.15. 
  
 “Eurocurrency Liabilities” has the meaning provided in
Regulation D (or any successor regulation) of the Federal Reserve Board, as in effect from time to time. 
  
 “Eurocurrency Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurocurrency Lending
Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance or the accession agreement pursuant to which it became a Lender (or, if no such office of such Lender is specified, its Domestic Lending Office), or such other
office of such Lender as such Lender may from time to time specify in writing to the Company and the Administrative Agent. 
  
 “Eurocurrency Rate” means, for any Interest Period: 
  
 (a) for each Eurocurrency Rate Advance denominated in Dollars comprising part of the same Committed Borrowing, an
interest rate per annum equal to the offered rate for deposits in such Currency as quoted on the relevant Screen Page at 11:00 A.M. (London time) two London Banking Days before the first day of such Interest Period in an amount substantially equal
to the Reference Bank’s Eurocurrency Rate Advance comprising part of such Committed Borrowing to be outstanding during such Interest Period and for a period equal to such Interest Period; 
  
 (b) for each Eurocurrency Rate Advance denominated in Pounds Sterling
comprising part of the same Committed Borrowing, (i) an interest rate per annum equal to the offered rate for deposits in such Currency as quoted on the relevant Screen Page at 11:00 A.M. (London time) on the first day of such Interest Period,
for a period equal to such Interest Period plus (ii) the MCR Cost, if any; or 
  
 (c) for each Eurocurrency Rate Advance denominated in Euros comprising part of the same Committed Borrowing, (i) an interest rate per annum equal to the offered rate for deposits in such Currency as quoted
on the relevant Screen Page at 11:00 A.M. (Brussels time) two TARGET Days before the first day of such Interest Period, for a period equal to such Interest Period plus (ii) the MCR Cost, if any. 
  
 “Eurocurrency Rate Advance” means a Committed Advance that
bears interest as provided in Section 2.05(b). 
  
 “Eurocurrency Rate Reserve Percentage” for any Lender for any Eurocurrency Rate Advances owing to such Lender means the reserve percentage applicable two Business Days before the first day of the applicable Interest Period
under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement 
  
 CREDIT AGREEMENT 
  

 6 

 (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 the applicable Interest Period. 
  
 “Events of Default” has the meaning provided in Section 6.01. 
  
 “Existing Credit Agreement” has the meaning specified in the recitals of this Agreement. 
  
 “Excluded Representation” means the representation and
warranty set forth in Section 4.01(g). 
  
 “Federal
Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, or any successor thereto. 
  
 “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 Board arranged by Federal fund 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 Reference Bank from three Federal funds brokers of recognized
standing selected by the Reference Bank. 
  
 “Federal
Reserve Board” means the Board of Governors of the Federal Reserve System as constituted from time to time. 
  
 “Fixed Rate” has the meaning provided in Section 2.13(c)(ii)(C). 
  
 “Fixed Rate Advance” means an Advance which bears interest as provided in Section 2.05(d). 

 
 “Fixed Rate Auction” means a solicitation of Quotes
setting forth Fixed Rates pursuant to Section 2.13. 
  
 “Floating Rate” means, for any Interest Period for a Floating Rate Advance, an interest rate per annum equal to the Base Rate in effect from time to time minus the Floating Rate Margin for such Advance and Interest Period.

  
 “Floating Rate Advance” means an Advance
which bears interest as provided in Section 2.05(c). 
  
 “Floating Rate Auction” means a solicitation of Quotes setting forth Floating Rate Margins based on the Base Rate pursuant to Section 2.13. 
  
 “Floating Rate Margin” has the meaning provided in Section 2.13(c)(ii)(B). 
  
 CREDIT AGREEMENT 
  

 7 

 “Foreign Currency Equivalent” means, with respect to any amount in Dollars, the amount
of an Alternate Currency that could be purchased with such amount of Dollars using the reciprocal of the foreign exchange rate specified in the definition of “Dollar Equivalent”, as determined by the Administrative Agent, such
determinations to be conclusive and binding on the parties in the absence of manifest error. 
  
 “Foreign Currency Sublimit” means the aggregate principal amount of Committed Advances denominated in Alternate Currencies permitted to be outstanding at any one time, as such amount may be increased
pursuant to Section 2.01(c). The Foreign Currency Sublimit on the date hereof is $250,000,000. 
  
 “GAAP” means United States generally accepted accounting principles as in effect from time to time. 
  
 “Hedge Agreements” means interest rate swap, cap or collar
agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other similar agreements. 
  
 “Indebtedness” of any Person means, without duplication, (i) all indebtedness of such Person for borrowed money or for the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course of business of such Person), (ii) all indebtedness of such Person evidenced by a note, bond, debenture or similar instrument, (iii) the
principal component of all Capital Lease obligations of such Person, (iv) the face amount of all letters of credit issued for the account of such Person and, without duplication, all unreimbursed amounts drawn thereunder, (v) all
indebtedness of any other Person secured by any Lien on any property owned by such Person, whether or not such indebtedness has been assumed, (vi) all Contingent Obligations of such Person, and (vii) all indebtedness of such Person in
respect of Hedge Agreements. 
  
 “Initial
Lenders” has the meaning specified in the first paragraph of this Agreement. 
  
 “Interest Coverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) EBITDA for such period to (b) Interest Expense for such period. 
  
 “Interest Expense” means, for any period, the sum
(determined without duplication) of the aggregate amount of interest reported in respect of such period on the Indebtedness of the Company and its Consolidated Subsidiaries on a consolidated basis, including, without limitation, the interest portion
of payments under Capital Lease obligations and any capitalized interest, minus (i) interest income of the Company and its Consolidated Subsidiaries on a consolidated basis reported in respect of such period and (ii) interest on
deferred compensation reported in respect of such period. 
  
 “Interest Period” means, for each Eurocurrency Rate Advance comprising part of the same Committed Borrowing, each Floating Rate Advance comprising part of the same Uncommitted Borrowing and each Fixed Rate Advance
comprising part of the same Uncommitted Borrowing, the period commencing on the date of such Advance or the date of the continuation of such Eurocurrency Rate Advance or the date of the conversion of any Base Rate 
  
 CREDIT AGREEMENT 
  

 8 

 Advance into such Eurocurrency Rate Advance and ending on the last day of the period selected by a Borrower pursuant to
the provisions below. The duration of each such Interest Period shall be (a) in the case of a Eurocurrency Rate Advance, one, two, three or six months, (b) in the case of a Fixed Rate Advance, from 14 to 180 days, and (c) in the case
of a Floating Rate Advance, from 30 to 180 days, in each case as a Borrower may select in the Notice of Borrowing, Quote Request or Notice of Conversion or Continuation for such Advance, as the case may be; provided that: 
  
 (i) a Borrower may not select any Interest Period which ends
after the Termination Date; 
  
 (ii) 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 that if, in the case of any Interest
Period with respect to any Eurocurrency Rate Advance, 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;

  
 (iii) any Interest Period which begins on the
last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to clause (iv) below, end on the last Business Day of a calendar
month; 
  
 (iv) any Interest Period which would
otherwise end after the Termination Date shall end on the Termination Date; 
  
 (v) if, upon the expiration of any Interest Period with respect to a Committed Borrowing consisting of Eurocurrency Rate Advances, a Borrower has failed to elect a new Interest Period to be applicable to such Advances
as provided above, such Borrower (x) if such Borrower is the Company, shall be deemed to have elected to convert such Advances into a Base Rate Advance effective as of the expiration date of such current Interest Period and (y) if such
Borrower is a Designated Subsidiary, shall be deemed to have elected a new Interest Period of 1 month to be applicable to such Advances; and 
  
 (vi) Interest Periods commencing on the same date for Eurocurrency Rate Advances comprising part of the same Committed Borrowing or for
Fixed Rate Advances or Floating Rate Advances comprising part of the same Uncommitted Borrowing shall be of the same duration. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 
  
 “Lenders” means the Initial Lenders and each Person that
shall become a party hereto pursuant to Section 8.07 or Section 2.01(c). 
  
 “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preferential payment arrangement, priority or other security
agreement of any kind or nature whatsoever, including, without 
  
 CREDIT AGREEMENT 
  

 9 

 limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same
effect as any of the foregoing and the filing of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any jurisdiction, domestic or foreign. 
  
 “Loan Documents” means, collectively, this Agreement, the
Notes, each Designation Letter and each Termination Letter. 
  
 “Local Time” means (a) with respect to any Advance denominated or any payment to be made in Dollars, New York City time, and (b) with respect to any Advance denominated or any payment to be made in an Alternate
Currency, the local time in the Principal Financial Center for such Alternate Currency. 
  
 “London Banking Day” means any day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London. 
  
 “Long-Term Indebtedness” means the long-term Senior
Unsecured Indebtedness of the Company. 
  
 “Margin
Stock” has the meaning provided in Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Material Adverse Effect” means a material adverse effect on the business, financial condition or results of operations of the Company
and its Consolidated Subsidiaries taken as a whole. 
  
 “MCR Cost” means, the percentage rate per annum calculated by the Administrative Agent in accordance with Schedule II. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and any successor or successors thereto. 
  
 “Multiemployer Plan” means a Plan which is a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA. 
  
 “Note” means a Committed Note or an Uncommitted Note. 
  
 “Notice of Borrowing” has the meaning provided in Section 2.02(b). 
  
 “Notice of Conversion or Continuation” has the meaning provided in Section 2.04(b) . 
  
 “Other Taxes” has the meaning provided in
Section 2.10(b). 
  
 “PBGC” means the
Pension Benefit Guaranty Corporation established under ERISA, or any successor thereto. 
  
 CREDIT AGREEMENT 
  

 10 

 “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof. 
  
 “Plan” means any employee benefit plan covered by Title IV of ERISA, the funding requirements of which:

  
 (i) were the responsibility of the Company or
a member of its ERISA Controlled Group at any time within the five years immediately preceding the date hereof, 
  
 (ii) are currently the responsibility of the Company or a member of its ERISA Controlled Group, or 
  
 (iii) hereafter become the responsibility of the Company or
a member of its ERISA Controlled Group, including any such plans as may have been, or may hereafter be, terminated for whatever reason. 
  
 “Pounds Sterling” means the lawful currency of the United Kingdom. 
  
 “Principal Financial Center” means, in the case of any Currency, the principal financial center in the
country of issue of such Currency, as reasonably determined by the Administrative Agent. 
  
 “Principal Property” means all real property and tangible personal property constituting a manufacturing plant owned by the Company or any of its Subsidiaries, exclusive of (i) motor vehicles,
mobile materials handling equipment and other rolling stock, (ii) office furnishings and equipment, information and electronic data processing equipment, (iii) any property financed through obligations issued by a state, territory or
possession of the United States, or any political subdivision or instrumentality of the foregoing, on which the interest cannot, in the opinion of tax counsel of recognized standing or in accordance with a ruling issued by the Internal Revenue
Service, be included in gross income of the holder under Section 103(a)(1) of the Internal Revenue Code (or any successor to such provision) as in effect at the time of the issuance of such obligations, (iv) any real property held for
development or sale, or (v) any property and equipment included therein without deduction of any depreciation reserves the book value of which property and equipment in the aggregate is less than 10% of Consolidated Net Tangible Assets or which
the Board of Directors of the Company determines is not material to the operation of the business of the Company and its Subsidiaries taken as a whole. 
  
 “Principal Subsidiary” means any Subsidiary of the Company which has net sales which represent 15% or more of the consolidated net sales
of the Company and its Consolidated Subsidiaries taken as a whole. 
  
 “Process Agent” has the meaning provided in Section 8.13(b). 
  
 “Pro Rata Share” means, with respect to any Lender, the percentage corresponding to the fraction the numerator of which shall be the amount of the Commitment of such Lender and the denominator of
which shall be the aggregate amount of the Commitments of all Lenders. 
  
 CREDIT AGREEMENT 
  

 11 

 “Quote” means an offer by any Lender to make an advance under Section 2.13.

  
 “Quote Request” has the meaning provided in
Section 2.13(b). 
  
 “Rate Notification” has
the meaning provided in Section 2.02(a). 
  
 “Rate
Request” has the meaning provided in Section 2.02(a). 
  
 “Reference Bank” means Citibank or, if Citibank is no longer the Administrative Agent, such Person (which shall be a Lender or the Administrative Agent) as shall be designated by the Company with the consent of the Required
Lenders, which consent shall not be unreasonably withheld. 
  
 “Register” has the meaning provided in Section 8.07(d). 
  
 “Reportable Event” has the meaning provided in Section 4043(b) of ERISA (other than a Reportable Event as to which the provision of 30 days notice to the PBGC is waived under applicable
regulations). 
  
 “Required Lenders” means at any
time Lenders representing in the aggregate at least 51% of the Commitments or, if the Commitments shall have terminated, Lenders representing in the aggregate at least 51% of the sum of the Advances owing to Lenders hereunder (computed, in the case
of Advances in an Alternate Currency, as the Dollar Equivalent thereof as determined by the Administrative Agent). 
  
 “Screen Page” means (a) the display designated as Page 3740 or 3750, as the case may be, on the Telerate Service (or such other page
as may replace that page on that service for the purpose of displaying London interbank offered rates or the Euro interbank offered rates of major banks) and (b) if the relevant rate does not appear on said Page, the “LIBO Page” so
designated on the Reuter Monitor Money Rates Service (or such other page as may replace that page on that service for the purpose of displaying London interbank offered rates or the Euro interbank offered rates of major banks). If more than one
relevant rate appears on said Page 3740 or 3750 with respect to an Interest Period, or, if no rates appear on said Page 3740 or 3750, or more than one relevant rate appears on the “LIBO Page” with respect to an Interest Period, the
Eurocurrency Rate for that Interest Period will be based upon the arithmetic mean of such relevant rates. 
  
 “Senior Unsecured Indebtedness” means Indebtedness that is not subordinated to any other Indebtedness and is not secured or supported by
a guarantee, letter of credit or other form of credit enhancement. 
  
 “Standard & Poor’s” means Standard & Poor’s Ratings Services and any successor or successors thereto. 
  
 CREDIT AGREEMENT 
  

 12 

 “Subsidiary” of any Person means (i) any corporation 50% or more of whose stock of
any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (ii) any partnership, association, joint venture, limited liability company or other entity in which
such Person, directly or indirectly through Subsidiaries, is either a general partner or has a 50% or more equity interest at the time. 
  
 “TARGET” means Trans–European Automated Real–time Gross Settlement Express Transfer payment system. 
  
 “TARGET Day” means any day on which TARGET is open for the
settlement of payments in Euros. 
  
 “Target Operating
Day” has the meaning provided in Section 2.15. 
  
 “Taxes” has the meaning provided in Section 2.10(a). 
  
 “Termination Date” means the earlier of (a) October 14, 2009 or (b) the date of termination in whole of the Commitments pursuant to Section 2.01(b) or Section 6.01.

  
 “Termination Event” means (i) a
Reportable Event, or (ii) the initiation of any action by the Company, any member of the Company’s ERISA Controlled Group or any ERISA Plan fiduciary to terminate an ERISA Plan or the treatment of an amendment to an ERISA Plan as a
termination under ERISA, or (iii) the institution of proceedings by the PBGC under Section 4042 of ERISA to terminate an ERISA Plan or to appoint a trustee to administer any ERISA Plan. 
  
 “Termination Letter” has the meaning provided in
Section 2.14. 
  
 “Type” has the meaning
provided in the definitions of Committed Advance and Uncommitted Advance. 
  
 “Uncommitted Advance” means an advance by a Lender to a Borrower as part of an Uncommitted Borrowing resulting from the auction bidding procedure described in Section 2.13 and refers to a
Floating Rate Advance or a Fixed Rate Advance, each of which shall be a “Type” of Uncommitted Advance. 
  
 “Uncommitted Borrowing” means a borrowing consisting of simultaneous Uncommitted Advances from each of the Lenders to a Borrower whose
offer to make one or more Uncommitted Advances as part of such borrowing has been accepted under the auction bidding procedure described in Section 2.13. 
  

“Uncommitted Note” has the meaning provided in Section 2.11. 
  
 “Unfunded Benefit Liabilities” means with respect to any Plan at any time, the amount (if any) by which
(i) the present value of all benefit liabilities under such Plan as defined 
  
 CREDIT AGREEMENT 
  

 13 

 in Section 4001(a)(16) of ERISA, exceeds (ii) the fair market value of all Plan assets allocable to such
benefits, all determined as of the then most recent valuation date for such Plan (on the basis of assumptions prescribed by the PBGC for the purpose of Section 4044 of ERISA). 
  
 “Utilization Ratio” means, at any time, the ratio of (i) the aggregate outstanding principal amount of
the Advances at such time to (ii) the aggregate amount of the Commitments at such time. 
  
 SECTION 1.02. Computation of Time Periods; Terms Generally. 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 mean “to but excluding”. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. 
  
 SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. 
  
 ARTICLE II 
  
 AMOUNTS AND TERMS OF THE ADVANCES 
  
 SECTION 2.01. The Commitment. (a) The Committed Advances. (i) Each Lender agrees, on the terms and conditions
hereinafter set forth to make Committed Advances to the Company and any Designated Borrower in Dollars or an Alternate Currency 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 (1) such Lender’s Commitment minus (2) such Lender’s Pro Rata Share of the aggregate principal amount of all Uncommitted Advances then outstanding; provided
that (A) at no time shall the aggregate outstanding principal amount of all Advances exceed the total amount of the Commitments at such time; and (B) at no time shall the Dollar Equivalent of the aggregate outstanding principal amount of
all Committed Advances denominated in an Alternate Currency to the Borrowers exceed the Foreign Currency Sublimit. 
  
 (ii) Within the limits of each Lender’s Commitment and subject to the limitation set forth in Section 2.07(c), each
Borrower may borrow, repay, prepay (as provided in Section 2.07) and reborrow such amount or any portion thereof. 
  
 (iii) Each Committed Borrowing shall be in an aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof
(or, in the case of a Committed Borrowing denominated in an Alternate Currency, the Foreign Currency Equivalent thereof in such Alternate Currency, rounded to the nearest 1,000,000 units of such Alternate Currency) or, if less, the aggregate amount
of the unused Commitments and shall consist of Committed Advances of the same Type made on the same day by the Lenders ratably according to their respective Commitments. Notwithstanding the foregoing restriction with respect to the minimum amount of
each Committed Borrowing, 
  
 CREDIT
AGREEMENT 
  

 14 

 each Borrower may borrow Committed Borrowings in an aggregate amount equal to the amount by which the
aggregate amount of a proposed Uncommitted Borrowing requested by such Borrower exceeds the aggregate amount of Uncommitted Advances offered to be made by the Lenders and accepted by such Borrower in respect of such Uncommitted Borrowing, if such
Uncommitted Borrowing is made on the same date as such Committed Borrowing. 
  
 (b) Termination and Reduction. The Company shall have the right, upon at least two Business Days’ notice to the Administrative Agent, to terminate in whole or reduce each Lender’s Pro Rata Share of
the unused Commitments, provided that the aggregate amount of the Commitments of the Lenders shall not be reduced to an amount that is less than the aggregate principal amount of the Uncommitted Advances then outstanding. Each partial
reduction of the Commitments shall be in the aggregate amount of at least $10,000,000 or a larger whole multiple of $1,000,000. 
  
 (c) Increase. 
  
 (i) The Company may, at any time but in any event not more than once during any calendar year, make a written request (an
“Increase Request”) to the Administrative Agent (who shall forward a copy to each Lender) that the Commitments be increased, in the amount of $10,000,000 or an integral multiple thereof, provided that after giving effect to
any such increase, the aggregate amount of the Commitments shall not exceed $750,000,000 and the Foreign Currency Sublimit shall not exceed $350,000,000. Such Increase Request shall include a certification by a senior officer of the Company that
(x) no Default has occurred and is continuing on and as of the date of such Increase Request and (y) the representations and warranties contained in Section 4.01 are correct in all material respects on and as of the Increase Date (as
defined below), before and immediately after giving effect to such increase, as though made on and as of such Increase Date. Any such increase in Commitments shall be effective as of a date (the “Increase Date”) specified in the
related Increase Request that is (i) prior to the Termination Date and (ii) at least 10 days after the date of such Increase Request. Each Increase Request shall specify the date by which Lenders who wish to increase their Commitments must
consent to such increase (the “Commitment Date”), which date shall be no later than five Business Days prior to the related Increase Date. Each Lender that is willing to increase its Commitment (each an “Increasing
Lender”), shall notify the Administrative Agent on or prior to the Commitment Date of the amount by which it is willing to increase its Commitment, which amount shall not exceed the respective amount specified in the relevant Increase
Request. No Lender shall be obligated to increase its Commitment pursuant to this Section 2.01(c) and any such increase shall be in the sole discretion of each Lender. If the Lenders notify the Administrative Agent that they are willing to
increase the amount of their respective Commitments by an aggregate amount that exceeds the amount of the requested increase, the requested increase shall be allocated among the Lenders willing to participate therein ratably in accordance with the
amount by which they offered to increase their respective Commitments on the Commitment Date. 
  
 (ii) Not later than two (2) days following each Commitment Date, the Administrative Agent shall notify the Company as to the amount,
if any, by which the 
  
 CREDIT
AGREEMENT 
  

 15 

 Lenders are willing to participate in the requested increase. If the aggregate amount by which the
Lenders are willing to increase their Commitments on any such Commitment Date is less than the requested amount, then the Commitments of those Lenders that are willing to increase their Commitments shall be increased as provided in
subsection (iii) below and any one or more other Persons designated by the Company and reasonably acceptable to the Administrative Agent (each, a “New Lender”) that agrees to provide Commitments for the shortfall may become
party to this Agreement by executing and delivering, together with the Company, an accession agreement in form and substance satisfactory to the Company and the Administrative Agent pursuant to which such Person or Persons shall become a party to
this Agreement as a Lender and, to the extent provided therein, shall have the rights and obligations of a Lender hereunder; provided that each such Person or Persons shall provide a Commitment in an amount of at least $5,000,000. 

 
 (iii) On each Increase Date, each Person that accepts an
offer to participate in a requested Commitment increase in accordance with Section 2.01(c) shall become a Lender party to this Agreement as of such Increase Date and the Commitment of each Increasing Lender shall be increased as of such
Increase Date by the amount set forth in its notice delivered to the Administrative Agent in accordance with Section 2.01(c)(i) (or by the amount allocated to such Lender pursuant to the last sentence of Section 2.01(c)(i)), and if on the
Increase Date any Committed Advances are outstanding, the Borrowers shall borrow Committed Advances from the New Lenders, and/or prepay the outstanding Committed Advances, in such amounts and in such Currency or Currencies as are required to cause
the outstanding Committed Advances to be held ratably by all Lenders. 
  
 SECTION 2.02. Making the Committed Advances. (a) Determination of Eurocurrency Rate. The Company (on its own behalf or on behalf of any Designated Borrower) may request the Reference Bank, no earlier than 9:00 A.M. (New York
City time) and no later than 11:00 A.M. (New York City time) on the third Business Day before a proposed Eurocurrency Rate Advance, to notify the Company of the Eurocurrency Rate that would be applicable to a Committed Advance in the principal
amount, in the Currency, and with the Interest Period as described by the Company in such request, which request shall be substantially in the form of Exhibit A-1 hereto (a “Rate Request”). Upon such request, the Reference Bank
shall furnish such interest rate to the Company no later than noon (New York City time) on the second Business Day before the proposed Eurocurrency Rate Advance by delivering to the Company a copy of the related Rate Request setting forth such rate
and executed by an authorized officer of the Reference Bank in the space provided therefor (a “Rate Notification”). The relevant Borrower shall be entitled to rely on any such notification and such rate shall be conclusive and
binding on the Lenders absent manifest error. 
  
 (b) Notice of
Borrowing. Each Committed Borrowing shall be made on notice by the Company (on its own behalf or on behalf of any Designated Borrower) to the Administrative Agent, which shall give to each Lender prompt notice thereof by telecopier, given not
later than 11:00 A.M. (New York City time) on the date of the proposed Committed Borrowing if such Committed Borrowing is to be comprised of Base Rate Advances and no earlier than 9:00 A.M. (New York City time) and no later than 4:00 P.M. (New York
City time) on the third Business Day prior to such date if such Committed Borrowing is to be comprised of Eurocurrency Rate Advances. Each such notice of a Committed Borrowing (a “Notice of  
  
 CREDIT AGREEMENT 
  

 16 

 Borrowing”) shall be by telecopier, or by telephone confirmed immediately in writing, in substantially the
form of Exhibit A-2 hereto, specifying therein: (i) the name of the Borrower (which shall be the Company or a Designated Borrower), (ii) the requested date of such Committed Borrowing, (iii) the Type of Advances comprising such
Committed Borrowing, (iv) the aggregate amount and, for any Designated Borrower, the Currency of such Committed Borrowing, and (v) in the case of a Committed Borrowing consisting of Eurocurrency Rate Advances, the initial Interest Period
for each such Committed Advance. Each Lender shall, before 1:00 P.M. (Local Time) on the date of such Committed Borrowing, make available for the account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s
Account for Advances denominated in the relevant Currency, in the relevant Currency and in same day funds, such Lender’s Pro Rata Share of the requested amount of such Committed Borrowing. Promptly after the Administrative Agent’s receipt
of such funds (and in any event by the close of business New York City time on the date of such Borrowing) and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make the funds so received
available to the Company or such other Borrower by depositing the same in such Currency and in immediately available funds into such account of the Company or such other Borrower, as applicable, maintained with the Administrative Agent in New York
City (if such Advance is denominated in Dollars) or in the Principal Financial Center for any other Currency (if such Advance is denominated in an Alternate Currency) as shall have been specified in the related Notice of Borrowing. 
  
 (c) Illegality, Etc. Anything in subsection (a) or (b) above
to the contrary notwithstanding, 
  
 (i) if any
Lender shall, at least one Business Day before the date of any requested Eurocurrency Advance or the date of any conversion to or continuation of a Eurocurrency Rate Advance, notify the Administrative Agent that the introduction of or any change in
or in the interpretation of any law or regulation makes it unlawful, or that any central bank or other governmental authority asserts that it is unlawful, for such Lender or its Eurocurrency Lending Office to perform its obligations hereunder to
make Eurocurrency Rate Advances or to fund or maintain Eurocurrency Rate Advances hereunder, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Company, whereupon (A) such Lender shall have no obligation
to make Eurocurrency Rate Advances, or to convert Advances into Eurocurrency Rate Advances, until such Lender notifies the Company and the Administrative Agent that the circumstances causing such suspension no longer exist and (B) each Borrower
shall be deemed to have converted all Eurocurrency Rate Advances of such Lender then outstanding into Base Rate Advances in accordance with Section 2.04 on and as of the date of the Administrative Agent’s receipt of such notice, unless and
to the extent such notice directs that one or more Eurocurrency Rate Advances shall be so converted on the last day of the applicable Interest Period, provided that (w) before giving any such notice, such Lender agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if the making of such a designation would avoid the need for such suspension and conversion and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such Lender, (x) any request by a Borrower for Eurocurrency Rate Advances during a time when a Lender’s obligation to make, or convert Advances into, Eurocurrency Rate
Advances shall be suspended hereunder shall be deemed to be a request for, or for 
  
 CREDIT AGREEMENT 
  

 17 

 conversion into, Base Rate Advances from such Lender, (y) all Advances that would otherwise be made
by such Lender as Eurocurrency Rate Advances during any such suspension shall instead be made as Base Rate Advances and (z) in the event any Lender shall notify the Administrative Agent and the Company of the occurrence of the circumstances
causing such suspension under this Section 2.02(c), all payments and prepayments of principal that would otherwise have been applied to repay the Eurocurrency Rate Advances that would have been made by such Lender or the converted Eurocurrency
Rate Advances shall instead be applied to repay the Base Rate Advances made by such Lender in lieu of, or resulting from the conversion of, such Eurocurrency Rate Advances; 
  
 (ii) if the Reference Bank cannot furnish the Eurocurrency Rate for any Committed Borrowing consisting of
Eurocurrency Rate Advances because of conditions existing in the London interbank market, the right of the Borrowers to select Eurocurrency Rate Advances shall be suspended until the Reference Bank shall notify the Company and the Lenders that the
circumstances causing such suspension no longer exist; 
  
 (iii) if the Required Lenders shall, at least one Business Day before the date of any requested Eurocurrency Rate Advance, notify the Administrative Agent that the Eurocurrency Rate for any Interest Period will not adequately reflect the
cost to the Required Lenders of making, funding or maintaining their respective Eurocurrency Rate Advances for such Interest Period, the Administrative Agent shall forthwith so notify the Company and the Lenders, whereupon the Lenders shall have no
obligation to make, or convert Committed Advances into, Eurocurrency Rate Advances until the Administrative Agent shall notify the Company and the Lenders that the circumstances causing such suspension no longer exist; and 
  
 (iv) if the Required Lenders shall, at least one Business
Day before the date of any Advance to a Designated Borrower, notify the Administrative Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or that any central bank or other
governmental authority asserts that it is unlawful, for such Lenders to perform their obligations hereunder to make Advances or to fund or maintain Advances hereunder to such Designated Borrower, the Administrative Agent shall forthwith give notice
thereof to the other Lenders and the Company, whereupon the Lenders shall have no obligation to make Advances to such Designated Borrower, until the Administrative Agent shall notify the Company and the Lenders that the circumstances causing such
suspension no longer exist. 
  
 (d) Effect of Failure to
Fulfill Conditions. Each Notice of Borrowing shall be irrevocable and binding on the Company and the relevant Designated Borrower. In the case of any Committed Borrowing that the related Notice of Borrowing specifies is to be comprised of
Eurocurrency Rate Advances, the relevant 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
Committed Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss (excluding anticipated profits), cost or expense reasonably incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the Committed Advance to be made by 
  
 CREDIT AGREEMENT 
  

 18 

 such Lender as part of such Committed Borrowing when such Advance, as a result of such failure, is not made on such date,
such indemnity to be paid promptly upon receipt by the relevant Borrower of a certificate of such Lender setting forth the calculation of the amount of the indemnity claimed by such Lender. 
  
 (e) Funds Available. Unless the Administrative Agent shall have
received notice from a Lender prior to the date of any Committed Borrowing that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Committed Borrowing, the Administrative Agent may assume that
such Lender has made such portion available to the Administrative Agent on the date of such Committed Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make
available to the relevant 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 Administrative Agent, such Lender and the relevant Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the relevant Borrower until the date such amount is repaid to the
Administrative Agent, at (i) in the case of the relevant Borrower, the interest rate applicable at the time to Committed Advances comprising such Committed Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such
Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Committed Advance as part of such Committed Borrowing for purposes of this Agreement. 
  
 (f) Failure to Make Advances. The failure of any Lender to make the
Committed Advance to be made by it as part of any Committed Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Committed Advance on the date of such Committed Borrowing, but no Lender shall be responsible
for the failure of any other Lender to make the Committed Advance to be made by such other Lender on the date of any Committed Borrowing. 
  
 SECTION 2.03. Fees. (a) Facility Fee. The Company agrees to pay to the Administrative Agent for the account of each Lender a facility fee in
Dollars on the aggregate amount of such Lender’s Commitment (whether or not utilized and, after the Termination Date, on the aggregate outstanding principal amount of the Advances of such Lender, if any) from the date hereof in the case of each
Lender and, in the case of each Person which becomes a Lender pursuant to Section 8.07, from the effective date specified in the Assignment and Acceptance pursuant to which it became a Lender and, in the case of a Person becoming a Lender
pursuant to Section 2.01(c), from the effective date specified in the accession agreement pursuant to which it became a Lender, until the Termination Date at the Applicable Facility Fee Rate, payable quarterly in arrears on the last day of each
March, June, September and December during the term hereof and on the Termination Date. All computations of the facility fee shall be based on a year of 360 days. 
  
 (b) Administrative Agent’s Fees. The Company shall pay to the Administrative Agent in Dollars for its own
account such fees as may from time to time be agreed between the Company and the Administrative Agent. 
  
 CREDIT AGREEMENT 
  

 19 

 (c) Utilization Fee. Each Borrower shall pay to the Administrative Agent for the pro rata account
of the Lenders a utilization fee on the outstanding principal amount of the Advances made to it (which fee shall be payable in the Currency in which such Advances were denominated), for each day on which the Utilization Ratio exceeds 0.50 and for
each day after the Termination Date regardless of the Utilization Ratio, at a rate per annum equal to the Applicable Utilization Fee Rate, payable on each day on which a payment of interest is due under Section 2.05. 
  
 SECTION 2.04. Continuation and Conversion. (a) General. Subject
to the other provisions hereof, each Borrower shall have the option (i) to convert all or any part of an outstanding Committed Borrowing consisting of Base Rate Advances to a Committed Borrowing consisting of Eurocurrency Rate Advances,
(ii) to convert all or any part of an outstanding Committed Borrowing in Dollars consisting of Eurocurrency Rate Advances to a Committed Borrowing consisting of Base Rate Advances, or (iii) to continue all or any part of an outstanding
Committed Borrowing consisting of Eurocurrency Rate Advances as a Committed Borrowing consisting of Eurocurrency Rate Advances for an additional Interest Period; provided that no Committed Borrowing consisting of Eurocurrency Rate Advances
shall be so converted other than as contemplated by Section 2.02(c) or continued, until the expiration of the Interest Period applicable thereto. 
  
 (b) Notice of Conversion or Continuation. In order to elect to convert or continue a Committed Borrowing hereunder, the Company (on its own behalf
or on behalf of any Designated Borrower) shall deliver an irrevocable notice thereof (a “Notice of Conversion or Continuation”) to the Administrative Agent by telecopier or by telephone confirmed immediately in writing, no later
than (i) 11:00 A.M., (New York City time) on the proposed conversion date in the case of a conversion to Base Rate Advances and (ii) no earlier than 9:00 A.M. (New York City time) and no later than 4:00 P.M. (New York City time) on the
third Business Day in advance of the proposed conversion or continuation date in the case of a conversion to, or a continuation of, Eurocurrency Rate Advances, substantially in the form of Exhibit B hereto. A Notice of Conversion or Continuation
shall specify (w) the requested conversion or continuation date (which shall be a Business Day), (x) the amount and Type of the Advances to be converted or continued, (y) whether a conversion or continuation is requested, and
(z) in the case of a conversion to, or a continuation of, Eurocurrency Rate Advances, the requested Interest Period. The relevant Eurocurrency Rate for such Interest Period in the case of a conversion to, or a continuation of, Eurocurrency Rate
Advances shall be determined in the manner provided in Section 2.02(a) as if such conversion or continuation is instead new Eurocurrency Rate Advances in such amount, on such date and for such Interest Period. If the Company fails to give a
Notice of Conversion or Continuation with respect to an outstanding Committed Borrowing consisting of Eurocurrency Rate Advances in Dollars as provided in clause (ii) above, the Company shall be deemed to have converted such Eurocurrency Rate
Advances into Base Rate Advances in accordance with this Section 2.04 if such Advances are outstanding after the last day of the Interest Period with respect thereto. If the Company fails to give a Notice of Conversion or Continuation with
respect to an outstanding Committed Borrowing consisting of Eurocurrency Rate Advances in an Alternate Currency as provided in clause (ii) above, the Company shall be deemed to have converted such Eurocurrency Rate Advances into a Eurocurrency
Rate Advance with an Interest Period of one (1) month in accordance with this Section 2.04 if such Advances are outstanding after the last day of the Interest Period with respect thereto. 
  
 CREDIT AGREEMENT 
  

 20 

 SECTION 2.05. Interest on Advances. Each Borrower shall pay interest on the unpaid principal
amount of each Advance owing to each Lender from the date the proceeds of such Advance are made available to such Borrower 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 to the Base Rate in effect from time to time, payable in arrears quarterly on the last Business Day of each fiscal quarter during the period such Base Rate Advance remains outstanding and on the date such Base
Rate Advance shall be paid in full; 
  
 (b)
Eurocurrency Rate Advances. If such Advance is a Eurocurrency Rate Advance, a rate per annum equal at all times during the Interest Period for such Advance to the sum of the Eurocurrency Rate for such Interest Period plus the Applicable
Eurocurrency Margin for such Advance, payable in arrears 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; 
  
 (c)
Floating Rate Advances. If such Advance is a Floating Rate Advance, a rate per annum equal at all times during the Interest Period for such Advance to the Floating Rate for such Interest Period quoted by such Lender in accordance with
Section 2.13, payable in arrears on the last Business 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; 
  
 (d) Fixed Rate
Advances. If such Advance is a Fixed Rate Advance, a rate per annum equal at all times during the Interest Period for such Advance to the Fixed Rate for such Interest Period quoted by such Lender in accordance with Section 2.13, payable in
arrears 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; and

  
 (e) Default Rate. In the event that,
and for so long as, any Event of Default shall have occurred and be continuing, the outstanding principal amount of all Advances and, to the extent permitted by law, overdue interest in respect of all Advances, shall bear interest at a rate per
annum equal to the sum of two percent (2%) plus the interest rate otherwise applicable hereunder to such principal amount in effect from time to time. In the event that, and for so long as, any Default under Section 6.01(a) shall have
occurred and be continuing, the outstanding principal amount of the Advance with respect to which such Default has occurred and is continuing shall bear interest at a rate per annum equal to the sum of two percent (2%) plus the interest rate
otherwise applicable hereunder to such principal amount in effect from time to time. 
  
 SECTION 2.06. Additional Interest on Eurocurrency Rate Advances. Each Borrower shall pay to each Lender, during each period as such Lender shall be required under regulations of the Federal Reserve Board to
maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional interest on the unpaid principal amount of each Eurocurrency Rate Advance of such Lender outstanding during such period,

  
 CREDIT AGREEMENT 
  

 21 

 from the later of the date such reserves are required and the making of such Advance until the earlier of the date such
reserves are no longer required and 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 Eurocurrency Rate for the Interest Period applicable to such Advance
from (ii) the rate obtained by dividing such Eurocurrency Rate by a percentage equal to 100% minus the average Eurocurrency Rate Reserve Percentage of such Lender during such period, payable on each date on which interest is payable on such
Advance. Such Lender shall determine the amount of such additional interest, if any, and promptly notify the relevant Borrower through the Administrative Agent of the amount thereof. 
  
 SECTION 2.07. Repayment; Prepayment of Advances; Etc. (a) Repayment. Each Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders on the Termination Date the aggregate principal amount of the Committed Advances then outstanding and each Borrower shall repay to the Administrative Agent for the account of the Lenders to
which Uncommitted Advances comprising part of the same Borrowing are owing the aggregate principal amount of such Uncommitted Advances then outstanding on the last day of the Interest Period with respect thereto. No Borrower shall have the right to
prepay any principal amount of any Advances other than as provided in this Section 2.07. Any Borrower may, upon notice no later than 11:00 A.M. (New York City time) on the second Business Day before the prepayment of Eurocurrency Rate Advances,
and no later than 11:00 A.M. (New York City time) on the day of the prepayment in the case of Base Rate Advances, in either case to the Administrative Agent and stating the proposed date and principal amount of the prepayment, and if such notice is
given such Borrower shall, prepay the outstanding principal amount of the Committed Advances comprising part of the same Committed Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal
amount prepaid; provided, however, that each partial prepayment shall be in the aggregate principal amount of at least $5,000,000 or a larger whole multiple of $1,000,000 (or, in the case of Advances denominated in an Alternate
Currency, the Foreign Currency Equivalent thereof in such Alternate Currency, rounded to the nearest 1,000,000 units of such Alternate Currency) and, in the case of a payment or prepayment of a Eurocurrency Rate Advance other than on the last day of
the Interest Period for such Advance as provided herein, shall have the consequences set forth in Section 8.04(b). 
  
 (b) Prepayment of Advances. The Company shall notify the Administrative Agent immediately upon becoming aware of any Change of Control. Upon
receipt of such notice and for a period of 90 days thereafter, the Required Lenders shall be entitled, by written notice to the Company received within such period, to terminate the Commitments in whole and require the Company and any other Borrower
to prepay all outstanding Advances within 5 Business Days of its receipt of such notice, together with any accrued and unpaid interest thereon to the date of such prepayment and any other amounts due hereunder. Notwithstanding any other provision
contained herein, a Change of Control shall not, in and of itself, constitute a Default hereunder. 
  
 (c) Alternate Currency Revaluation. (i) If at any time by reason of fluctuations in foreign exchange rates (1) the aggregate
outstanding principal amount of all Advances (for which purpose the amount of any Advance that is denominated in an Alternate Currency shall be deemed to be the Dollar Equivalent thereof as of the date of determination) exceeds 105% of the aggregate
amount of the Commitments at such time or (2) the aggregate outstanding principal 
  
 CREDIT AGREEMENT 
  

 22 

 amount of all Advances denominated in Alternate Currencies exceeds 105% of the Foreign Currency Sublimit at such time,
the Administrative Agent shall use all reasonable efforts to give prompt written notice thereof to the Company, specifying the amount to be prepaid under this clause (i), and the Company shall, within five Business Days of the date of such notice,
prepay the Advances, or cause Advances to be prepaid, in an amount so that after giving effect thereto the aggregate outstanding principal amount of the Advances (determined as aforesaid) does not exceed the aggregate amount of the Commitments;
provided that any such payment shall be accompanied by any amounts payable under Section 8.04(b). The determination of which Advances to prepay hereunder shall be at the sole option of the Company. The determinations of the
Administrative Agent hereunder shall be conclusive and binding on the Borrowers in the absence of manifest error. 
  
 (ii) In addition, if on the last day of any Interest Period the aggregate outstanding principal amount of the Advances (for which purpose the amount of
any Advance that is denominated in an Alternate Currency shall be deemed to be the Dollar Equivalent thereof as of the date of determination), would exceed 100% of the aggregate amount of the Commitments, the Administrative Agent shall use all
reasonable efforts to give prompt written notice thereof to the Company, specifying the amount to be prepaid under this clause (ii), and the Company shall, within five Business Days of the date of such notice, prepay the Advances, or cause Advances
to be prepaid, or reduce the requested Advances in such amounts that after giving effect to such action the aggregate outstanding principal amount of the Advances does not exceed the aggregate amount of the Commitments; provided that any such
payment shall be accompanied by any amounts payable under Section 8.04(b). The determination of which Advances to prepay hereunder shall be at the sole option of the Company. The determinations of the Administrative Agent hereunder shall be
conclusive and binding on the Borrowers in the absence of manifest error. 
  
 SECTION 2.08. Increased Costs. (a) Changes in Law, Etc. If, due to (i) the introduction of or any change in or in the interpretation of any law or regulation on or after the date of this Agreement,
or (ii) the compliance with any guideline or request not applicable on the date of this Agreement from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any
Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Advances, then the Company shall from time to time, promptly upon demand by such Lender (with a copy of such demand to the Administrative Agent) accompanied by the
certificate described in the next sentence, pay, or cause to be paid, to the Administrative Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost. A certificate as to the amount of such
increased cost, submitted to the Company and the Administrative Agent by such Lender, shall be conclusive and binding on the Borrowers for all purposes, absent manifest error. 
  
 (b) Capital Adequacy. If, due to (i) the introduction of or any change in or in the official interpretation of
any law or regulation on or after the date of this Agreement, or (ii) the compliance with any guideline or request not applicable on the date of this Agreement from any central bank or other governmental authority (whether or not having the
force of law), any Lender determines that the amount of capital required or expected to be maintained by such Lender or any corporation controlling such Lender has been or would be affected and that the amount of such capital is increased by or
based upon the existence of such Lender’s Advances or commitment to lend hereunder and other commitments of this type, then, upon demand by such 
  
 CREDIT AGREEMENT 
  

 23 

 Lender received by the Company within such time from the relevant change or introduction described above as is reasonably
required in order to determine the effect thereof (with a copy of such demand to the Administrative Agent) accompanied by a certificate of such Lender as to the amounts demanded, the Company shall pay, or cause to be paid, to the Administrative
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, as the case may be, to the extent that such Lender reasonably determines such increase
in capital to be allocable to the existence of such Lender’s Advances or commitment to lend hereunder, such amounts to be due and payable within two days of such Lender’s invoice therefor. A certificate as to such amounts submitted to the
Company and the Administrative Agent by such Lender shall be conclusive and binding on the Borrowers for all purposes, absent manifest error. 
  
 SECTION 2.09. Payments and Computations. (a) Manner of Payment. Each Borrower shall make each payment hereunder and under the Notes without
deduction, setoff or counterclaim not later than 11:00 A.M. (Local Time) on the day when due to the Administrative Agent at the Administrative Agent’s Account in the Principal Financial Center for the relevant Currency in same day funds. The
Administrative Agent will promptly thereafter cause to be distributed like Currency and funds relating to the payment of principal or interest or facility fees ratably (other than amounts payable pursuant to Section 2.02(d), 2.06, 2.08, 2.10,
2.13(f) or 8.04(b)) 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 any Lender to such Lender for the account of its Applicable Lending Office, in
each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained therein in the Register pursuant to Section 8.07(c), from and after the
effective date specified in such Assignment and Acceptance, the Administrative Agent shall make all payments hereunder and under the Notes in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such
Assignment and Acceptance (which shall not include any Borrower) shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. The making by any Borrower of any payment to the
Administrative Agent for the account of any Lender as herein provided shall pro tanto discharge the relevant obligation of such Borrower to such Lender. 
  

(b) Setoff. If an Event of Default shall have occurred and be continuing, each Lender 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, in whatever currency) at any time held and other indebtedness at any time owing by such Lender to any Borrower
against any of and all the obligations of such Borrower now or hereafter existing under this Agreement and the Notes held by such Lender, although such obligations may be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have. 
  
 (c) Interest. All computations of interest based on (i) the Base Rate and the Eurocurrency Rate for Advances denominated in Pounds Sterling shall be made by the Administrative Agent on the basis of a year
of 365 or 366 days, as the case may be, and (ii) the Eurocurrency Rate for Advances denominated in a Currency other than Pounds Sterling or the Federal Funds Rate or with respect to Uncommitted Advances and all computations of interest pursuant
to Section 2.06 shall be made by the Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last 
  
 CREDIT AGREEMENT 
  

 24 

 day) occurring in the period for which such interest is payable. Each determination by the Reference Bank of an interest
rate for any Committed Advance hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 (d) Business Days. Whenever any payment hereunder or under the Notes 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, facility fee or utilization fee, as the case may be; provided that if such extension would
cause payment of interest on or principal of Eurocurrency Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 
  
 (e) Assumption of Payment. Unless the Administrative Agent shall have received notice from a Borrower prior to the
date on which any payment is due to the Lenders hereunder that such Borrower will not make such payment in full, the Administrative Agent may assume that such Borrower has made such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall not have so made such payment in full to
the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the
date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate (if such Advance is denominated in Dollars) or at the London interbank offered rate for the relevant Currency (if such Advance is denominated in an Alternate
Currency). 
  
 (f) Rate Information. The Reference Bank
shall notify the Company and the Administrative Agent of the Base Rate in effect on the first Business Day on which a Base Rate or Floating Rate Advance is outstanding and each day on which a change in the Base Rate occurs, each in sufficient detail
to enable the Company to calculate interest payments hereunder with respect to Base Rate Advances and Floating Rate Advances, and shall provide such information to any Lender promptly upon its request. The Company will provide to the Administrative
Agent (i) promptly upon receipt thereof copies of the information received by the Company pursuant to the immediately preceding sentence or any Rate Notification received pursuant to Section 2.02(a), (ii) promptly upon the making of
any interest payment with respect to a Base Rate Advance or a Floating Rate Advance hereunder a schedule based on such information setting forth the Base Rate for each day in the period in which such Advance was outstanding, and (iii) promptly
upon obtaining knowledge thereof, notice of any change in the rating assigned by Standard & Poor’s or Moody’s to the Company’s Long-Term Indebtedness and the date of such change, provided that the Company’s
failure to provide any of the foregoing information shall be deemed not to be a Default or Event of Default hereunder. 
  
 (g) Currency of Payments. All payments of principal of and interest on, and utilization fees and any amounts payable under
Section 2.06 in respect of, an Advance that is denominated in a particular Currency shall be made in such Currency, and all other amounts payable under this Agreement (except as specified in Section 9.06) shall be paid in Dollars.

  
 CREDIT AGREEMENT 
  

 25 

 SECTION 2.10. Taxes. (a) General. Any and all payments by each Borrower hereunder or under
the Notes shall be made in accordance with Section 2.09, free and clear of and without deduction for any and all taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto (which are, with respect to
payments by the Company only, not in effect or not imposed on the date of this Agreement); excluding, in the case of each Lender and the Administrative Agent, taxes imposed on its income, and franchise taxes imposed on it by the jurisdiction
under the laws of which such Lender or the Administrative Agent (as the case may be) is organized or any political subdivision thereof and, in the case of each Lender, taxes imposed on its income, and franchise taxes imposed on it, by the
jurisdiction of such Lender’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”). 
  
 (b) Other Taxes. In
addition, each Borrower agrees to pay any stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or under the Notes or from the execution, delivery or registration of,
or otherwise with respect to, this Agreement not in effect or not imposed on the date of this Agreement or the Notes (hereinafter referred to as “Other Taxes”) upon notice from the Lender. 
  
 (c) Tax Indemnity. Each Borrower will indemnify each Lender and the
Administrative Agent for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.10) paid by such Lender or the Administrative Agent
(as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 30
days from the date such Lender or the Administrative Agent (as the case may be) makes written demand therefor. 
  
 (d) Receipt. Within 30 days after the date of any payment of Taxes, each Borrower will furnish to the Administrative Agent, at its address referred
to in Section 8.02, the original or a certified copy of a receipt evidencing payment thereof. 
  
 (e) Survival. Without prejudice to the survival of any other agreement of each Borrower hereunder, the agreements and obligations of such Borrower
contained in this Section 2.10 shall survive the payment in full of principal and interest hereunder. 
  
 SECTION 2.11. Promissory Notes. Any Lender may request that Advances of any Type made by it be evidenced by a promissory note. In such event, the
relevant Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) substantially in the form of Exhibit H-1 (a “Committed
Note”) in the case of the Committed Advances and substantially in the form of Exhibit H-2 (an “Uncommitted Note”), in the case of the Uncommitted Advances. Thereafter, such Advances evidenced by such promissory note and
interest thereon shall at all times (including after assignment pursuant to Section 8.07) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such
payee and its registered assigns). 
  
 CREDIT
AGREEMENT 
  

 26 

 SECTION 2.12. Use of Proceeds of Advances. Each Borrower will use the proceeds of the Advances
solely for general corporate purposes, including, without limitation, for the acquisition of Margin Stock. 
  
 SECTION 2.13. Uncommitted Advances. (a) The Uncommitted Advances Option. In addition to Committed Advances pursuant to Section 2.01,
the Company may, as set forth in this Section 2.13, request the Lenders to make offers to make Uncommitted Advances to the Borrowers. Each Lender may, but shall have no obligation to, make such offers and the Borrowers may, but shall have no
obligation to, accept any such offers in the manner set forth in this Section 2.13; provided that, following the making of each Uncommitted Borrowing, the aggregate amount of the Advances then outstanding shall not exceed the aggregate
amount of the Commitments of the Lenders. The Uncommitted Advances may be Floating Rate Advances or Fixed Rate Advances. 
  
 (b) Quote Request. When a Borrower wishes to request offers to make Uncommitted Advances as part of an Uncommitted Borrowing, the Company (on its
own behalf or on behalf of a Designated Borrower) shall transmit to the Administrative Agent, by telecopier, a quote request substantially in the form of Exhibit C hereto (a “Quote Request”) so as to be received no earlier than 9:00
A.M. (New York City time) and (x) no later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of Borrowing proposed therein, in the case of a Fixed Rate Auction, or (y) no later than 11:00 A.M. (New York City
time) on the Business Day immediately preceding the proposed date of Borrowing proposed therein, in the case of a Floating Rate Auction, specifying: 
  
 (i) the proposed date of Borrowing, which shall be a Business Day; 
  
 (ii) the proposed Currency of such Borrowing and the proposed aggregate amount of such Borrowing, which
shall be $10,000,000 or a larger whole multiple of $1,000,000 (or, in the case of an Uncommitted Borrowing denominated in an Alternate Currency, the Foreign Currency Equivalent thereof in such Alternate Currency, rounded to the nearest 1,000,000
units of such Alternate Currency); and 
  
 (iii)
the duration of the proposed Interest Period applicable thereto subject to the provisions of the definition of Interest Period. 
  
 The Administrative Agent shall in turn promptly notify each Lender of each request for an Uncommitted Borrowing received by it from the Company by sending such Lender a
copy of the related Quote Request. A Borrower may request offers to make Uncommitted Advances for more than one Interest Period in a single Quote Request. No Quote Request shall be given within five Business Days of any other Quote Request.

  
 (c) Submission and Contents of Quotes. (i) Each
Lender may but shall not be required to submit a Quote containing an offer or offers to make an Uncommitted Advance as part of a proposed Uncommitted Borrowing in response to any Quote Request. Each Quote must comply with the requirements of this
Section 2.13(c) and must be submitted to the Administrative Agent (which shall give prompt notice thereof to the Company) in writing (including by telecopy) no later than (A) 12:00 P.M. (New York City time) on the third Business Day
prior to the proposed date of borrowing in the case of a Fixed Rate Auction or (B)
  
 CREDIT AGREEMENT 
  

 27 

 12:00 P.M. (New York City time) on the Business Day immediately preceding the proposed date of borrowing, in the
case of a Floating Rate Auction; provided that if the Administrative Agent in its capacity as a Lender shall, in its sole discretion, elect to make any such offer, it shall notify the Company of such offer at least 30 minutes before the time
and on the date on which notice of such election is to be given to the Administrative Agent by the other Lenders. If any Lender shall elect not to make such an offer, such Lender shall so notify the Administrative Agent, before 12:00 P.M.
(New York City time) on the date on which notice of such election is to be given to the Administrative Agent by the other Lenders, and such Lender shall not be obligated to, and shall not, make any Uncommitted Advance as part of such
Uncommitted Borrowing; provided that the failure by any Lender to give such notice shall not cause such Lender to be obligated to make any Uncommitted Advance as part of such proposed Uncommitted Borrowing. Any Quote so made shall be
irrevocable except with the written consent of the Company. 
  
 (ii) A Quote may set forth each separate offer by a Lender with respect to each Interest Period specified in the related Quote Request. Each Quote shall be in substantially the form of Exhibit D hereto, and shall in any case specify:

  
 (A) the principal amount of the Uncommitted
Advance for each such offer, which principal amount (1) may be greater than or less than the Commitment of such Lender, (2) must be a whole multiple of $1,000,000 or, in the case of Uncommitted Advances in an Alternate Currency, the
Foreign Currency Equivalent thereof in such Alternate Currency, rounded to the nearest 1,000,000 units of such Alternate Currency, (3) may not exceed (but may be less than) the proposed principal amount of the proposed Uncommitted Borrowing set
forth in the related Quote Request, and (4) may be subject to an aggregate limitation as to the principal amount of Uncommitted Advances for which offers being made by such Lender may be accepted; 
  
 (B) in the case of a Floating Rate Auction, the margin below
the Base Rate (the “Floating Rate Margin”) offered for each such Uncommitted Advance expressed as a percentage (specified to the nearest 1/1,000th of 1%) to be subtracted from such Base Rate; and 
  
 (C) in the case of a Fixed Rate Auction, the rate of
interest per annum (specified to the nearest 1/1,000th of 1%) (the “Fixed Rate”) offered for each such Uncommitted Advance. 
  
 (iii) Any Quote shall be disregarded if it: 
  
 (A) is not substantially in conformity with the format described in the relevant Quote Request or does not specify all of the information
required by Section 2.13(c)(ii); 
  
 (B)
contains qualifying, conditional or similar language; 
  
 (C) proposes terms other than or in addition to those set forth in the applicable Quote Request; or 
  
 (D) is received by the Administrative Agent after the time set forth in Section 2.13(c)(i). 
  
 CREDIT AGREEMENT 
  

 28 

 (d) Acceptance and Notice by Company. Not later than (i) 1:00 P.M. (New York City time) on
the third Business Day prior to the proposed date of borrowing, in the case of a Fixed Rate Auction or (ii) 1:00 P.M. (New York City time) on the Business Day immediately preceding the proposed date of borrowing, in the case of a Floating Rate
Auction, the Company shall notify the Administrative Agent (which shall give prompt notice thereof to the Lenders) of the relevant Borrower’s acceptance or nonacceptance of the offers so notified to it pursuant to Section 2.13(c)
substantially in the form of Exhibit E hereto; provided that if the Company shall fail to so notify the Administrative Agent by the times set forth above, the Company shall be deemed to have notified the Administrative Agent of the relevant
Borrower’s nonacceptance of each such offer. In the case of acceptance, each such notice shall specify the aggregate principal amount of offers that are accepted. The relevant Borrower may accept any such offer in whole or in part;
provided that: 
  
 (i) the aggregate
principal amount of each Uncommitted Borrowing may not exceed the applicable amount set forth in the related Quote Request; 
  
 (ii) the principal amount of each Uncommitted Borrowing must be $10,000,000 or a larger whole multiple of $1,000,000 (or, in the case of
an Uncommitted Borrowing denominated in an Alternate Currency, the Foreign Currency Equivalent thereof in such Alternate Currency rounded to the nearest 1,000,000 units of such Alternate Currency); 
  
 (iii) acceptance of offers from the Lenders may only be made
on the basis of ascending Floating Rate Margins or Fixed Rates, as the case may be; and 
  
 (iv) the Company may not accept any offer that is described in Section 2.13(c)(iii) or that otherwise fails to comply with the
requirements of this Agreement. 
  
 (e) Allocation. If
offers are made by more than one Lender with the same Floating Rate Margins or Fixed Rates, as the case may be, for a greater aggregate principal amount than the amount in respect of which such offers are accepted, the principal amount of
Uncommitted Advances in respect of which such offers are accepted shall be allocated by the Administrative Agent among such Lenders as nearly as possible (in such multiples, not less than $1,000,000, or, in the case of Uncommitted Advances
denominated in an Alternate Currency, the Foreign Currency Equivalent thereof in such Alternate Currency rounded to the nearest 1,000,000 units of such Currency, as it may deem appropriate) in proportion to the aggregate principal amounts of such
offers. Determinations by the Administrative Agent of the allocations of Uncommitted Advances shall be binding and conclusive in the absence of manifest error. The Administrative Agent shall promptly notify the Company and the Lenders of any
allocation pursuant to this Section 2.13(e). 
  
 (f)
Funding. In the case of an Uncommitted Borrowing as to which the relevant Borrower has accepted the offer of one or more Lenders to make an Uncommitted Advance under clause (d) above, before 12:00 noon (Local Time) on the date of such
Uncommitted Borrowing, each such Lender shall make available for the account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s Account, in same day funds, such Lender’s portion of such Uncommitted
Borrowing. Upon fulfillment of the applicable conditions set forth in Article III and after receipt by the Administrative Agent of such funds, the 
  
 CREDIT AGREEMENT 
  

 29 

 Administrative Agent will promptly (and in any event by the close of business Local Time on the date of such Borrowing)
make such funds available to the Company by depositing the same in immediately available funds into such account as the Company shall have specified in the related notice of acceptance (in substantially the form of Exhibit E hereto). Promptly after
each Uncommitted Borrowing the Administrative Agent will notify each Lender of the amount of the Uncommitted Borrowing, the aggregate principal amount of the Uncommitted Advances then outstanding and the dates upon which such Uncommitted Advances
commenced and will mature. 
  
 SECTION 2.14. Borrowings by
Designated Borrowers. (a) The Company may, at any time or from time to time, upon not less than 10 Business Day’s notice to the Administrative Agent, designate one or more Subsidiaries organized in any of the jurisdictions listed on
Schedule III as Borrowers hereunder. Upon any such designation of a Subsidiary and the Administrative Agent’s receipt of each of the following (copies of which will be promptly furnished by the Administrative Agent to the Lenders), which
shall be in form and substance reasonably satisfactory to the Administrative Agent, such Subsidiary shall be a Designated Borrower and a Borrower entitled to make Borrowings on and subject to the terms and conditions of this Agreement: 

 
 (i) Executed Counterparts. A designation letter (a
“Designation Letter”) in duplicate, in substantially the form of Exhibit I, duly completed and executed by the Company and such Designated Borrower and delivered to the Administrative Agent at least ten Business Days before the
date on which such Subsidiary is to become a Designated Borrower; 
  
 (ii) Opinion of Counsel to the Designated Borrower. A favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the date of the Designation Letter) of reputable counsel to such
Designated Borrower (which may be internal counsel) in the relevant jurisdiction (and such Designated Borrower hereby and by delivery of such Designation Letter instruct such counsel to deliver such opinion to the Lenders and the Administrative
Agent), as to the due organization of such Designated Borrower under the laws of its jurisdiction of organization, the due authorization, execution and delivery by such Designated Borrower of such Designation Letter and of the making of Borrowings
by it hereunder, the obtaining of all licenses, approvals and consents of, and the making of all filings and registrations with, any applicable Governmental Authority required in connection therewith and the legality, validity and binding effect and
enforceability thereof, and such other legal matters relating thereto as the Administrative Agent may reasonably request; 
  
 (iii) Corporate Documents. Such documents and certificates as the Administrative Agent may reasonably request (including without
limitation certified copies of the charter and by-laws of such Designated Borrower and of resolutions of its Board of Directors authorizing such Designated Borrower’s acceptance of the Company’s designation as a “Designated
Borrower” and its becoming a Borrower under this Agreement, and of all documents evidencing all other necessary corporate or other action required with respect to such Designated Borrower becoming party to this Agreement; 
  
 CREDIT AGREEMENT 
  

 30 

 (iv) Process Agent. Evidence that the Process Agent has agreed to act as agent for
service of process in New York, New York on behalf of such Designated Borrower under the Loan Documents. 
  
 (v) Expenses. Evidence that such Designated Borrower or the Company shall have paid any and all expenses reasonably incurred by the
Administrative Agent (including the reasonable fees and expenses of counsel to the Administrative Agent) in connection with its designation as a Designated Borrower; and 
  
 (vi) Other Items. Such other documents relating thereto as the Administrative Agent or any Lender or
special New York counsel to the Administrative Agent may reasonably request, including any documentation and other evidence which may be requested by the Administrative Agent or any Lender to comply with and/or administer any “know your
customer” or other customer identification related policies and procedures required under applicable laws and regulations. 
  
 (b) So long as all principal of and interest on all Advances made to any Designated Borrower and all other amounts payable by such Designated
Borrower under this Agreement and the other Loan Documents have been paid in full, the Company may terminate the status of such Designated Borrower as a Borrower hereunder by furnishing to the Administrative Agent a letter (a “Termination
Letter”) in substantially the form of Exhibit J, duly completed and executed by the Company. Any Termination Letter furnished hereunder shall be effective upon receipt thereof by the Administrative Agent, which shall promptly so notify
the Lenders. Notwithstanding the foregoing, the delivery of a Termination Letter with respect to any Designated Borrower shall not terminate (i) any obligation of such Borrower that remains unpaid at the time of such delivery (including without
limitation any obligation arising thereafter in respect of such Borrower under Section 2.08 or Section 2.10) or (ii) the obligations of the Company under Article IX with respect to any unpaid obligations of such Borrower.

  
 SECTION 2.15. European Monetary Union. (a)
Definitions. In this Section 2.15 and in each other provision of this Agreement to which reference is made in this Section 2.15 (whether expressly or impliedly), the following terms have the meanings given to them in this
Section 2.15: 
  
 “EMU”
shall mean economic and monetary union as contemplated in the Treaty on European Union. 
  
 “EMU Legislation” shall mean legislative measures of the European Council for the introduction of, changeover to or
operation of a single or unified European currency, being in part the implementation of the third stage of EMU. 
  
 “Euro” shall mean the single currency of Participating Member States of the European Union. 
  
 “Participating Member State” shall mean
each state so described in any EMU Legislation. 
  
 “Target Operating Day” shall mean any day that is not (i) a Saturday or Sunday, (ii) Christmas Day or New Year’s Day or (iii) any other day on which the Trans-European 
  
 CREDIT AGREEMENT 
  

 31 

 Real-time Gross Settlement Express Transfer system (or any successor settlement system) is not operating
(as determined by the Administrative Agent). 
  
 “Treaty on European Union” shall mean the Treaty of Rome of March 25, 1957, as amended by the Single European Act 1986 and the Maastricht Treaty (which was signed at Maastricht on February 7, 1992, and came into
force on November 1, 1993), as amended from time to time. 
  
 (b) Payments by the Administrative Agent Generally. With respect to the payment of any amount denominated in the Euro, the Administrative Agent shall not be liable to the Company or any of the Lenders in any way whatsoever for any
delay, or the consequences of any delay, in the crediting to any account of any amount required by this Agreement to be paid by the Administrative Agent if the Administrative Agent shall have taken all relevant steps to achieve, on the date required
by this Agreement, the payment of such amount in immediately available, freely transferable, cleared funds to the account of the Company or any Lender, as the case may be, in the Principal Financial Center in the Participating Member State which the
Company or, as the case may be, such Lender shall have specified for such purpose. In this paragraph (b), “all relevant steps” shall mean all such steps as may be prescribed from time to time by the regulations or operating
procedures of such clearing or settlement system as the Administrative Agent may from time to time reasonably determine for the purpose of clearing or settling payments of the Euro. 
  
 (c) Determination of Eurocurrency Rate. For the purposes of determining the date on which the applicable rate for
Eurocurrency Rate Advances is determined under this Agreement for any Advance denominated in the Euro for any Interest Period therefor, references in this Agreement to London Banking Days shall be deemed to be references to Target Operating Days.

  
 ARTICLE III 
  
 CONDITIONS TO EFFECTIVENESS AND LENDING 
  
 SECTION 3.01. Condition Precedent to Effectiveness. The amendment and
restatement of this Agreement as set forth herein shall become effective as of 12:01 a.m. on the date (the “Effective Date”), which shall be on or before December 1, 2005, as of which the Administrative Agent shall confirm to
the Company that it has received the following, each dated such day, in form and substance satisfactory to the Administrative Agent and (except for any Notes) in sufficient copies for each Lender: 
  
 (a) Executed Counterparts. From each party hereto
either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page to this Agreement) that such
party has signed a counterpart of this Agreement; 
  
 (b) Authority and Approvals. Certified copies of the resolutions of the Board of Directors of the Company (or equivalent documents) authorizing and approving this Agreement, authorizing Borrowings by the Company and the Designated
Borrowers 
  
 CREDIT AGREEMENT

  

 32 

 hereunder in an aggregate principal amount up to but not exceeding the aggregate amount of the
Commitments at any one time outstanding and certified copies of all documents evidencing all necessary corporate action and all other necessary action (corporate, partnership or otherwise) and governmental approvals, if any, with respect to this
Agreement; 
  
 (c) Secretary’s or
Assistant Secretary’s Certificate. A certificate of the Secretary or an Assistant Secretary of the Company, dated the Effective Date, certifying the names and true signatures of the officers of the Company authorized to execute and deliver
this Agreement, the Notes, and the other documents to be delivered hereunder; 
  
 (d) Legal Opinions. An opinion of counsel to the Company, dated the Effective Date, substantially in the form of Exhibit F-1 hereto and an opinion of special New York counsel to the Administrative Agent, dated
the Effective Date, substantially in the form of Exhibit F-2 hereto; 
  
 (e) Closing Certificate. A certificate of a senior financial officer of the Company, dated the Effective Date, certifying that the representations and warranties set forth in Article IV are true on such date as
if made on and as of such date and that no Default has occurred and is continuing on such date; and 
  
 (f) Termination of Commitments; Fees and Expenses. Evidence satisfactory to the Administrative Agent that (i) the commitments
under the Existing Credit Agreements have been terminated and all accrued fees, expenses, interest, principal and other amounts thereunder have been paid, and (ii) the Company shall have paid to the Administrative Agent for account of the
Lenders such up-front fees in connection with the execution of this Agreement as the Company and the Administrative Agent shall have agreed upon. 
  
 SECTION 3.02. Conditions Precedent to Each Advance. The obligation of each Lender to make each Advance (including the initial Advance) as part of a
Borrowing shall be subject to the further conditions precedent that (i) on the date of such Borrowing the following statements shall be true (and each of the giving of the applicable Notice of Borrowing or the notice of acceptance under
Section 2.13(d), as the case may be, and the acceptance by the relevant Borrower of the proceeds of such Advance shall constitute a representation and warranty by such Borrower that on the date of such Advance the following statements shall be
true): (x) the representations and warranties contained in Section 4.01 (other than the Excluded Representation) and, to the extent applicable, in the Designation Letter of such Borrower are correct in all material respects on and as of
the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date, and (y) no event has occurred and is continuing, or would result from such
Borrowing or from the application of the proceeds therefrom, that would constitute an Event of Default, or would constitute an Event of Default but for the requirement that notice be given or time elapse or both; and (ii) in the case of a
requested Borrowing the proceeds of which are to be used to buy or carry any Margin Stock, the Company shall deliver to the Administrative Agent a certificate of a senior financial officer of the Company accompanying the relevant Notice of Borrowing
setting forth in reasonable detail the basis upon which the Company has made the representation set forth in the third sentence of Section 4.01(l) on and as of the date of such Borrowing, before and after giving effect to such Borrowing and to
the application of the proceeds therefrom, together with (if so requested by the Administrative Agent) a duly completed Form U-1 or Form G-3 satisfactory to the Administrative Agent. 
  
 CREDIT AGREEMENT 
  

 33 

 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 4.01. Representations and Warranties of the Company. The Company represents and warrants as follows: 
  
 (a) Corporate Existence. The Company is a corporation
duly organized and validly existing under the laws of the State of Connecticut. 
  
 (b) Corporate Authorization, Etc. The execution, delivery and performance by the Company of this Agreement and the Notes are within
the Company’s corporate powers, have been duly authorized by all necessary corporate action and do not contravene (i) the Company’s charter or bylaws or (ii) any law or contractual restriction binding on or affecting the Company
or any of its Subsidiaries. 
  
 (c) No
Approvals. No authorization, approval or 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 the Company of this Agreement or the Notes.

  
 (d) Enforceability. This Agreement is
and, upon issuance and delivery thereof in accordance with this Agreement, each Note will be the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms. 
  
 (e) Financial Information. The consolidated balance
sheet of the Company and its Consolidated Subsidiaries as of January 3, 2005 and the related statements of income and retained earnings of the Company and its Consolidated Subsidiaries for the fiscal year then ended, copies of which have been
furnished to the Lenders, fairly present in all material respects the financial condition of the Company and its Consolidated Subsidiaries as of such date and the results of the operations of the Company and its Consolidated Subsidiaries for the
period ended on such date, all in accordance with GAAP consistently applied. 
  
 (f) No Litigation. Except as disclosed or otherwise reflected in the Company’s Annual Report on Form 10-K for the year ended January 3, 2005, as updated by the Company’s Form 10-Q for the period
ending October 1, 2005, there is no pending or (to the best of the Company’s knowledge) threatened action or proceeding against the Company or any of its Subsidiaries or relating to any of their respective properties before any court,
governmental agency or arbitrator, which could reasonably be expected to have a Material Adverse Effect or which purports to affect the legality, validity or enforceability of this Agreement or any Note. 
  
 CREDIT AGREEMENT 
  

 34 

 (g) No Material Adverse Effect. Since January 3, 2005, there has been no
event, act or condition which has had a Material Adverse Effect. 
  
 (h) Environmental Matters. Except as disclosed or otherwise reflected in the Company’s Annual Report on Form 10-K for the year ended January 3, 2005, as updated by the Company’s Form 10-Q for the
period ending October 1, 2005, neither the Company nor any of its Subsidiaries has received notice or otherwise obtained knowledge of any claim, demand, action, event, condition, report or investigation indicating or concerning any potential or
actual liability which could reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect arising in connection with (i) any non-compliance with or violation of the requirements of any applicable federal, state or
local environmental health or safety statutes or regulations, or (ii) the release or threatened release of any toxic or hazardous waste, substance or constituent into the environment. 
  
 (i) Investment Company. The Company is not an
“investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (j) Disclosure. The information furnished in writing by or on behalf of the Company or any Designated Borrower to the Lenders in
connection with the negotiation, execution and delivery of this Agreement or any other Loan Document does not contain any material misstatements of fact or omit to state a material fact necessary to make the statements contained therein, in light of
the circumstances under which they were made, not misleading. 
  
 (k) No Defaults. The Company (i) is not in default under or with respect to this Agreement or any Note, and (ii) is not in default under or with respect to any other agreement, instrument or
undertaking to which it is a party or by which it or any of its property is bound in any respect which could reasonably be expected to result in a Material Adverse Effect. 
  
 (l) Use of Proceeds, Etc. All proceeds of each Advance will be used by each Borrower only in
accordance with the provisions of Section 2.12. No Borrower is or will be engaged in the business of extending credit for the purpose of buying or carrying Margin Stock and no proceeds of any Advance will be used to extend credit to others for
the purpose of buying or carrying any Margin Stock. Neither the making of any Advance nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulations U or X issued by the Board of Governors of the Federal
Reserve System. 
  
 CREDIT AGREEMENT

  

 35 

 ARTICLE V 
  
 COVENANTS OF THE BORROWER 
  
 SECTION 5.01. Affirmative Covenants. So long as any Advance or any other amount owing hereunder shall remain unpaid or any Lender shall have any
Commitment hereunder: 
  
 (a) Financial
Information. The Company will furnish to the Lenders: 
  
 (i) Quarterly Financial Statements. Within 50 days after the close of each quarterly accounting period in each fiscal year of the Company, the consolidated balance sheet of the Company and its Consolidated
Subsidiaries as at the end of such quarterly period and the related consolidated and consolidating statements of income, retained earnings and cash flows for such quarterly period and for the elapsed portion of the fiscal year ended with the last
day of such quarterly period, in each case setting forth comparative figures for the related periods in the prior fiscal year. 
  
 (ii) Annual Financial Statements. Within 95 days after the close of each fiscal year of the Company, the consolidated balance sheet
of the Company and its Consolidated Subsidiaries as at the end of such fiscal year and the related consolidated statement of income, retained earnings and cash flows for such fiscal year, setting forth comparative figures for the preceding fiscal
year and reported on without qualification by independent certified public accountants of recognized national standing, in each case together with a report of such accounting firm stating that in the course of its regular audit of the consolidated
financial statements of the Company, which audit was conducted in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge of any Default or Event of Default relating to accounting matters (including,
without limitation, in respect of Section 5.01(f)), or if in the opinion of such accounting firm such a Default or Event of Default has occurred and is continuing, a statement as to the nature thereof. 
  
 (iii) Officer’s Certificates. At the time of the
delivery of the financial statements under clauses (i) and (ii) above, a certificate of a senior financial officer of the Company which certifies (x) that such financial statements fairly present the financial condition and the
results of operations of the Company and its Consolidated Subsidiaries on the dates and for the periods indicated, and (y) that such officer has reviewed the terms of this Agreement and has made, or caused to be made under his or her
supervision, a review in reasonable detail of the business and condition of the Company and its Consolidated Subsidiaries during the accounting period covered by such financial statements, and that as a result of such review such officer has
concluded that no Default or Event of Default has occurred during the period commencing at the beginning of the accounting period covered by the financial statements accompanied by such certificate and ending on the date of such certificate or, if
any Default or Event of Default has occurred, specifying the nature and extent thereof and, if continuing, the action the Company proposes to take in respect thereof. Such certificate shall set forth the calculations required to establish whether
the Company was in compliance with the provisions of Section 5.01(f) for the twelve-month period ending as at the end of the accounting period covered by the financial statements accompanied by such certificate. 
  
 (iv) Notice of Default or Litigation. Promptly after
any Borrower obtains knowledge thereof, notice of (i) the occurrence of any Default or Event of Default, or (ii) any litigation or governmental proceeding pending or threatened against any Borrower or other event, act or condition which
could reasonably be expected to result in a Material Adverse Effect. 
  
 CREDIT AGREEMENT 
  

 36 

 (v) SEC Filings. Promptly upon transmission thereof, copies of all regular and
periodic financial information, proxy materials and other information and reports, if any, which the Company shall file with the Securities and Exchange Commission or any governmental agencies substituted therefor or which the Company shall send to
its stockholders. 
  
 (vi) Other
Information. From time to time, and as soon as reasonably practicable, such other information or documents (financial or otherwise) as any Lender through the Administrative Agent may from time to time reasonably request. 
  
 Reports and financial statements required to be delivered by the Company pursuant clauses
(i), (ii) and (v) of this Section 5.01 (a) shall be deemed to have been delivered on the date on which it posts such reports, or reports containing such financial statements, on its website on the Internet at
www.stanleyworks.com, or when such reports, or reports containing such financial statements are posted on the website of the Securities and Exchange Commission at www.sec.gov; provided that it shall deliver such paper copies of the
reports and financial statements referred to in Clauses (i), (ii) and (v) of this Section 5.01(a) to the Administrative Agent or any Lender who request it to deliver such paper copies until written notice to cease delivering paper
copies is given by the Administrative Agent or such Lender. 
  
 (b) Compliance with Law. The Company shall, and shall cause each of its Subsidiaries to, comply with all applicable laws, rules, statutes, regulations, decrees and orders of all governmental bodies, domestic or foreign, in respect of
the conduct of their business and the ownership of their property, except such non-compliance as could not reasonably be expected to result in a Material Adverse Effect at the time of such noncompliance or in the foreseeable future. 
  
 (c) Payment of Taxes. The Company shall pay or cause to be paid, and
shall cause each of its Subsidiaries to pay or cause to be paid, when due, all taxes, charges and assessments and all other lawful claims required to be paid by the Company or such Subsidiaries, except (x) as contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves have been established with respect thereto in accordance with GAAP and (y) where such nonpayment could not reasonably be expected to result in a Material Adverse Effect.

  
 (d) Preservation of Corporate Existence. The Company
shall, and shall cause each of its Subsidiaries to, do all things necessary to preserve, renew and keep in full force and effect its corporate existence and the licenses, permits, rights and franchises necessary to the proper conduct of its
business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries will engage in any business if, as a result, the general nature of the business, taken on
a consolidated basis, which would then be engaged in by the Company and its Subsidiaries would be substantially changed from the general nature of the business engaged in by the Company and its Subsidiaries on the date of this Agreement. 

 
 (e) Maintenance of Books and Records. The Company will maintain
financial records in accordance with GAAP, consistently applied. The representatives of the Administrative Agent or any of the Lenders shall have the right to visit and inspect any of the properties of the Company and of any of its Subsidiaries, to
examine their books of account and 
  
 CREDIT
AGREEMENT 
  

 37 

 records and take notes and make transcripts therefrom, and to discuss their affairs, finances and accounts with, and be
advised as to the same by, their officers upon reasonable prior notice at such reasonable times and intervals as may be requested (subject to the standard policies of the Company and its Subsidiaries as to access, safety and, without prejudice to
the reasonable requirements of lending institutions and their regulatory supervisors, confidentiality). 
  
 (f) Interest Coverage Ratio. The Company shall maintain, for each period of four consecutive fiscal quarters of the Company, an Interest Coverage
Ratio of not less than 5.00 to 1.00. 
  
 SECTION 5.02. Negative
Covenants. So long as any Advance or any other amount owing hereunder shall remain unpaid or any Lender shall have any Commitment hereunder: 
  
 (a) No Liens. The Company shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer to exist, directly or
indirectly, any Lien on any Principal Property now owned or hereafter acquired (unless the Company secures the Advances made hereunder equally and ratably with such Lien), other than: 
  
 (i) Liens existing and disclosed to the Lenders in writing prior to the date hereof; 
  
 (ii) Liens for taxes not yet due or which are being
contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves are being maintained in accordance with GAAP; 
  
 (iii) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other
Liens imposed by law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate bonds have been posted; 

 
 (iv) Liens incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts,
performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money); 
  
 (v) easements, rights-of-way, zoning and similar restrictions and other similar charges or encumbrances not interfering with the ordinary
conduct of the business of the Company or any of its Subsidiaries and which do not detract materially from the value of the property to which they attach or impair materially the use thereof by the Company or any of its Subsidiaries; 
  
 (vi) Liens on property of any Person existing at the time
such Person becomes a Subsidiary of the Company and not created in contemplation thereof; 
  
 CREDIT AGREEMENT 
  

 38 

 (vii) Liens securing Indebtedness owed by a Subsidiary of the Company to the Company or
another Subsidiary of the Company; 
  
 (viii) any
Lien arising solely by operation of law in the ordinary course of business or which is contained in a contract for the purchase or sale of goods or services entered into in the ordinary course of business; 
  
 (ix) Liens on any property existing at the time of
acquisition but only if the amount of outstanding Indebtedness secured thereby does not exceed the lesser of the fair market value or the purchase price of the property as purchased; 
  
 (x) any Lien securing the purchase price of revenues or assets purchased after the date hereof or the cost
of repairing or altering, constructing, developing or substantially improving all or any part of such revenues or assets; provided that such Lien attaches only to such revenues or assets (including any improvements) and the Indebtedness
thereby secured does not exceed the lesser of the fair market value or the purchase price of the revenues or assets (including any improvements) as purchased; 
  

(xi) any other Liens on Principal Properties securing Indebtedness which in the aggregate does not exceed 10% of Consolidated Net
Tangible Assets at any time outstanding; and 
  
 (xii) any extension, renewal or replacement of any of the Liens referred to above; provided that the Indebtedness secured by any such extension, renewal or replacement does not exceed the sum of the principal amount of the
Indebtedness originally secured thereby and any fee incurred in connection with such transaction. 
  
 (b) Merger, Etc. The Company shall not (i) enter into any merger or consolidation, or liquidate, wind up or dissolve (or suffer any
liquidation, wind-up or dissolution), discontinue its business or convey, lease, sell, transfer or otherwise dispose of, in one transaction or series of transactions, all or substantially all of its business or property, whether now or hereafter
acquired, or (ii) permit any of its Subsidiaries to do so, if such action could reasonably be expected to have a Material Adverse Effect, except that any wholly-owned Subsidiary of the Company may merge into or convey, sell, lease or transfer
all or substantially all of its assets to, the Company or any other wholly-owned Subsidiary of the Company and the Company or any of its Subsidiaries may enter into any merger or consolidation so long as in the case of a transaction involving the
Company, the Company, or in the case of any other transaction, a Subsidiary of the Company, is the surviving entity in such transaction and, after giving effect thereto, no Default or Event of Default shall have occurred or be continuing.

  
 (c) Sale-Leasebacks. The Company shall not, and shall
not permit any of its Subsidiaries to, become liable, directly or indirectly, with respect to any lease, whether an operating lease or a Capital Lease, of any property (whether real or personal or mixed) whether now owned or hereafter acquired
(except for property the aggregate value of which at the time such lease is entered into is less than 10% of Consolidated Net Tangible Assets), (i) which the Company or such Subsidiary has sold or transferred or is to sell or transfer to any
other Person, or (ii) which the Company or such Subsidiary intends to use for substantially the same purposes as any other property which has been or is to be sold or transferred by the Company or such Subsidiary to any other Person in
connection with such lease. 
  
 CREDIT
AGREEMENT 
  

 39 

 ARTICLE VI 
  
 EVENTS OF DEFAULT 
  
 SECTION 6.01. Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 

 
 (a) Any Borrower shall fail to pay when due (or, if any
such failure is due solely to technical or administrative difficulties relating to the transfer of such amounts, within two Business Days after its due date) any principal of any Advance; or any Borrower shall fail to pay when due any interest on
any Advance, any fee (other than the fees referenced in Section 2.03) or any other amount payable by it hereunder or under any Note and five (5) days shall have elapsed from the date such interest, fees or other amounts were due; or with
respect to the fees payable pursuant to Section 2.03, any Borrower shall fail to pay any such fee when due and two Business Days shall have elapsed from the Company’s receipt of notice of such nonpayment from the Administrative Agent or
any Lender; or 
  
 (b) Any representation or
warranty made by any Borrower herein or pursuant to this Agreement or any other Loan Document (including without limitation in any certificate of such Borrower delivered pursuant hereto) shall prove to have been incorrect in any material respect
when made or deemed made; or 
  
 (c) The Company
or any other Borrower, as applicable, shall fail to perform any term, covenant or agreement contained in the first sentence of Section 2.07(b), Section 5.01(a)(iv), 5.01(f) or 5.02 on its part to be performed or observed; or 
  
 (d) Any Borrower shall fail to perform any term, covenant or
agreement contained in this Agreement (except those described in clauses (a) and (c) above) and such failure shall continue for 30 days; or 
  
 (e) A court having jurisdiction in the premises shall enter a decree or order for relief in respect of any Borrower or any Principal
Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or other similar official of such
Borrower or such Principal Subsidiary or for any substantial part of its property, or ordering the winding up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or

  
 (f) Any Borrower or any Principal Subsidiary
shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of any order for relief in an involuntary case under any such law, or shall consent to the
appointment of or taking possession by a receiver, liquidator, assignee, trustee, sequestrator or other similar official of such Borrower or 
  
 CREDIT AGREEMENT 
  

 40 

 such Principal Subsidiary or for any substantial part of its property, or shall make any general
assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action in furtherance of any of the foregoing; or 
  
 (g) (A) Any Borrower or any Principal Subsidiary shall fail to make any payment in respect of
Indebtedness when due (whether by scheduled maturity, required prepayment, acceleration or otherwise) if the aggregate amount of such payment is $25,000,000 or more, or (B) any breach, default or event of default shall occur and be continuing
(and applicable grace and notice periods shall have expired) under any agreement or indenture relating to any Indebtedness of such Borrower or such Principal Subsidiary in an aggregate amount of $25,000,000 or more, and, except in the case of
financial covenant defaults, the maturity of any such Indebtedness has been accelerated in accordance with the terms thereof; or 
  
 (h) (A) Any Termination Event shall occur, or (B) any Plan shall incur an “accumulated funding deficiency” (as defined
in Section 412 of the Code or Section 302 of ERISA), whether or not waived, or (C) the Company or any member of its ERISA Controlled Group shall fail to pay when due an amount which it shall have become liable to pay to the PBGC, any
Plan or a trust established under Title IV of ERISA, or (D) a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that an ERISA Plan must be terminated or have a trustee appointed to administer
any ERISA Plan, or (E) the Company or a member of its ERISA Controlled Group suffers a partial or complete withdrawal from a Multiemployer Plan or is in “default” (as defined in Section 4219(c)(5) of ERISA) with respect to
payments to a Multiemployer Plan, or (F) a proceeding shall be instituted against the Company or any member of its ERISA Controlled Group to enforce Section 515 of ERISA, or (G) any other event or condition shall occur or exist with
respect to any Plan, if such events, transactions or conditions set forth in clauses (A) through (G) above could singly or in the aggregate be reasonably expected to have a Material Adverse Effect; or 
  
 (i) If there shall remain in force, undischarged,
unsatisfied and unstayed, for more than 30 days, whether or not consecutive, any final judgment against the any Borrower or any Principal Subsidiary which, when added to any other outstanding final judgments which remain undischarged, unsatisfied
and unstayed for more than 30 days against such Borrower or any such Principal Subsidiary, exceeds $25,000,000; 
  
 then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Company, declare
the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Company, declare all Advances, the
Notes, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon all Advances, the Notes, 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 each Borrower; provided, however, that in the case of any of the Events of Default specified in clauses (e) or (f) above
with respect to any Borrower, (A) the obligation of each Lender to make Advances shall automatically be terminated and (B) the Advances, the Notes, all 
  
 CREDIT AGREEMENT 
  

 41 

 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 each Borrower. 
  
 ARTICLE VII 
  
 THE ADMINISTRATIVE
AGENT 
  
 SECTION 7.01. Authorization and Action. Each
Lender hereby appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with
such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Notes), the Administrative 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 Required Lenders, and such instructions shall be
binding upon all Lenders and all holders of Notes; provided, however, that the Administrative Agent shall not be required to take any action that exposes the Administrative Agent to personal liability or that is contrary to this
Agreement or applicable law. The Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by the Company pursuant to the terms of this Agreement. 
  
 SECTION 7.02. Administrative Agent’s Reliance, Etc. Neither the Administrative 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 Administrative Agent: (i) may treat the payee of any Note as the holder thereof until the Administrative Agent receives and accepts an Assignment and Acceptance entered into by the Lender that is the payee of
such Note, as assignor, and an assignee, as provided in Section 8.07; (ii) may consult with legal counsel (including counsel for any 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 any Borrower or to inspect the property (including the books and records) of any Borrower; (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; (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; and (vii) shall be deemed not to have knowledge of any Default (other than a failure to pay any principal or
interest on the due date therefor) unless and until written notice thereof is given to the Administrative Agent by the Company or a Lender. 
  
 CREDIT AGREEMENT 
  

 42 

 SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the Advances made by it and
the Note or Notes issued to it, 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 Administrative Agent; and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated, include Citibank in its individual capacity. Citibank and its Affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, a Borrower, any of its Subsidiaries and any Person who may do business with or own securities of such Borrower or any such Subsidiary, all as if Citibank were not the Administrative Agent and without
any duty to account therefor to the Lenders. 
  
 SECTION 7.04.
Lender Credit Decision. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 4.01 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 Administrative 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 this Agreement. 
  
 SECTION 7.05. Indemnification. The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed
by the Company), ratably according to the respective principal amounts of their Commitments, as then or most recently in effect, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement and the Notes, or any action taken or omitted by the
Administrative Agent under this Agreement and the Notes, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that
are found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the Administrative Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Administrative 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 Administrative Agent is not reimbursed for such
expenses by the Company. 
  
 SECTION 7.06. Successor
Administrative Agent. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Company and may be removed at any time with or without cause by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Administrative Agent, which shall be (i) a Lender or (ii) if no Lender shall accept appointment as the Administrative Agent within 30 days after such resignation or
removal, any other Person, which Person, so long as no Default shall have occurred and be continuing, shall be reasonably acceptable to the Company. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall
have accepted such appointment, within 30 days after the 
  
 CREDIT AGREEMENT 
  

 43 

 retiring Administrative Agent’s giving of notice of resignation or the Required Lenders’ removal of the
retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, which shall be (i) a Lender or (ii) any other Person, which Person, so long as no Default shall
have occurred and be continuing, shall be reasonably acceptable to the Company. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed
to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement. After any
retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent
under this Agreement. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan
Document, nor consent to any departure by any Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Company and the relevant Designated Borrower, if applicable, and the Required Lenders, or in the
case of Section 2.13 and any Uncommitted Note, the Company and the Lender to which such Note is payable, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided that the written consent of the Company and all the Lenders shall be required in order to amend or waive any provision of the Agreement or the Notes other than Section 2.13 which would have the effect of (a) a reduction in
principal, interest or fees payable to the Lenders under this Agreement or the Committed Notes, (b) the postponement of any date fixed for the payment of any principal, interest or fees under this Agreement or the Committed Notes, (c) an
increase in the Commitments (excluding any such increases pursuant to Section 2.01(c)), (d) amending or waiving compliance with the last sentence of Section 2.01(a), Section 2.08, Section 8.05 or this Section 8.01,
(e) amending the definition of Required Lenders or (f) any release or modification of the Company’s guarantee under Article IX; and provided, further, that no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement, and provided, further, that the Commitment of any
Lender shall not be extended without the prior written consent of such Lender. 
  
 SECTION 8.02. Notices, etc. (a) Subject to clauses (b) through (f) of this Section 8.02, all notices and other communications provided for hereunder shall be in writing (including telecopier
communication) and mailed, telecopied or delivered, if to the Company or any Designated Borrower, at the Company’s address at 1000 Stanley Drive, New Britain, Connecticut 06053, Attention: Secretary, telecopy no. 860-827-3911, with a
copy to Craig A. Douglas, Treasurer, at the same address and telecopy no. 860-827-3886; if to any Initial Lender, at its Domestic Lending Office specified opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance or accession agreement pursuant to which it became a Lender; and if to the Administrative Agent, at its 
  
 CREDIT AGREEMENT 
  

 44 

 address at 2 Penns Way, Suite 200, New Castle, Delaware 19720, Attention: Bank Loans Syndication, telecopy
no. 302-894-6120; or, as to the Company, any Designated Borrower or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the Company and the Administrative Agent. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of
this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 
  
 (b) The Company (on behalf of itself and on behalf of each Designated Borrower) hereby agrees that it will provide to the Administrative Agent all
information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to this Agreement, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates
and other information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an existing, Borrowing (including any election of an interest rate or Interest Period relating thereto),
(ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement, (iv) relates to a request for
an increase in the Commitments, or to a reduction or termination of the Commitments, or (v) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Borrowing thereunder (all such
non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to
oploanswebadmin@citigroup.com. In addition, the Company (on behalf of itself and on behalf of each Designated Borrower) agrees to continue to provide the Communications to the Administrative Agent in the manner specified in this Agreement but
only to the extent requested by the Administrative Agent. 
  
 (c)
The Company further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications on Intralinks or a substantially similar electronic transmission system (the “Platform”).

  
 (d) THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. 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
PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY,
“AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR 
  
 CREDIT AGREEMENT 
  

 45 

 INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE)
ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 
  
 (e) The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall
constitute effective delivery of the Communications to the Administrative Agent for purposes of this Agreement. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the
Platform shall constitute effective delivery of the Communications to such Lender for purposes of this Agreement. Each Lender agrees (i) to notify the Administrative Agent in writing (including by electronic communication) from time to time of
such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address. 
  
 (f) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other
communication pursuant to this Agreement in any other manner specified herein. 
  
 SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder or under any Note 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.

  
 SECTION 8.04. Costs and Expenses; Breakage
Indemnification. (a) The Company agrees to pay on demand all reasonable costs and expenses, if any (including, without limitation, counsel fees and expenses reasonably incurred), of (i) the Administrative Agent in connection with the
negotiation, syndication, execution and delivery of this Agreement, the other Loan Documents and the other documents delivered hereunder and (ii) the Administrative Agent and each Lender in connection with enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and the other documents to be delivered hereunder, including, without limitation, reasonable counsel fees and expenses in connection with the enforcement of rights under this
Section 8.04(a). 
  
 (b) If any payment, prepayment or
conversion of any Eurocurrency Rate Advance or a Fixed Rate Advance is made by the Company or a Designated Borrower, as applicable, to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of
acceleration of the maturity of the Advances and the Notes pursuant to Section 6.01 or for any other reason other than in connection with Section 2.02(c), such Borrower shall, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative 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, including,
without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain such Advance. 
  
 CREDIT AGREEMENT 
  

 46 

 (c) The Company agrees to indemnify and hold harmless the Administrative Agent and each Lender and each
of their affiliates and their officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of, or in connection with the preparation for a defense of, any
investigation, litigation or proceeding arising out of, related to or in connection with the actual or proposed use of the proceeds of the Advances, including in connection with any acquisition or proposed acquisition by the Company or any
Subsidiary of the Company of another Person or one or more businesses of another Person (whether by means of a stock purchase, asset acquisition or otherwise), whether or not such investigation, litigation or proceeding is brought by the Company,
its directors, shareholders or creditors or an Indemnified Party or any other Person or any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. The Company agrees not to assert any
claim against any Indemnified Party on any theory of liability, for consequential, indirect, special or punitive damages arising out of or otherwise relating to this Agreement or any of the transactions contemplated hereby or the actual or proposed
use of the proceeds of the Advances. 
  
 SECTION 8.05. Sharing
of Payments, Etc. If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Committed Advances owing to it (other than pursuant to Section 2.02(d),
2.06, 2.08, 2.10 or 8.04(b)) in excess of its ratable share of payments on account of the Committed Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Committed Advances owing
to them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery 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 from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Company agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 8.05 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of setoff)
with respect to such participation as fully as if such Lender were the direct creditor of the Company in the amount of such participation. 
  
 SECTION 8.06. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company, each Designated Borrower, the
Administrative Agent and the Lenders and their respective successors and assigns, except that the Company shall not have the right to assign its rights or obligations hereunder or under any Note or any interest herein or therein (other than as
permitted by Section 5.02(b)) without the prior written consent of the Lenders. 
  
 CREDIT AGREEMENT 
  

 47 

 SECTION 8.07. Assignments and Participations. (a) Each Lender may assign to one or more Persons
all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, and the Committed Advances owing to it and the Committed Note or Notes held by it); provided,
however, that (i) each such assignment (other than assignment to an affiliate of such Lender) shall require the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed, and which consent of the
Company shall not be required if an Event of Default exists, (ii) each such assignment shall be of a constant, and not a varying, percentage of all rights and obligations under this Agreement (other than any right to make Uncommitted Advances,
Uncommitted Advances owing to it and Uncommitted Notes), (iii) except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender or an assignment of all of a Lender’s rights and obligations under this
Agreement, the amount of 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 assignment) shall in no event be less than $5,000,000 or
an integral multiple of $1,000,000 in excess thereof, and (iv) the parties to each such assignment shall execute and deliver to the Administrative Agent, for its acceptance and recording in the Register, an Assignment and Acceptance (which
shall include the agreement of the assignee party to such assignment, for the benefit of the Borrowers, to be bound by the terms and provisions of this Agreement to the same extent as if it were an original party hereto), together with any Committed
Note subject to such assignment and the assignor or assignee shall pay to the Administrative Agent a processing and recordation fee of $3,500. 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
a 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 any Borrower or the performance or
observance by any Borrower 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 4.01 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,

  
 CREDIT AGREEMENT 
  

 48 

 independently and without reliance upon the Administrative Agent, 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 appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto; and
(vi) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 
  
 (c) Upon its receipt of an Assignment and Acceptance executed by an assigning
Lender and an assignee, together with any Committed Note or Notes subject to such assignment, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit G hereto,
(i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Company. In the case of any Lender that holds a Committed Note, within five Business
Days after its receipt of such notice, the relevant Borrower, at its own expense, shall execute and deliver to the Administrative Agent in simultaneous exchange for the surrendered Committed Note a new Committed Note to the order of such assignee in
an amount equal to the Commitment assumed by it pursuant to such Assignment and Acceptance and, if the assigning Lender has retained a Commitment hereunder, a new Committed Note to the order of the assigning Lender in an amount equal to the
Commitment retained by it hereunder. Such new Committed Note or Notes shall be in an aggregate principal amount equal to the aggregate principal amount of such surrendered Committed Note or Notes, shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of Exhibit H-2. Such Assignment and Acceptance shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of such Person as a
Lender and the resulting adjustment of the Commitments, if any, arising from such assignment of Commitments to such Person. 
  
 (d) The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at its address referred to in Section 8.02
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
(the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Company or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
  
 (e) Each Lender may sell participations to one or more banks or other
financial institutions, or other entities engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions of credit in the ordinary course of their business, in all or a portion of its rights and/or obligations
under this Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing to it and the Note or Notes held by it); provided 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 
  
 CREDIT AGREEMENT 
  

 49 

 Borrowers for the performance of such obligations, (iii) the Borrowers shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under this Agreement and (iv) such participant’s right to consent to any modification, waiver or release of any of the provisions of this Agreement shall be
limited to the right to consent to (A) any reduction in principal, interest or fees payable to such Lender under this Agreement, (B) the postponement of any date fixed for the payment of any principal, interest or fees under this Agreement
and (C) any amendments to the foregoing clauses (A) and (B). 
  
 SECTION 8.08. Limitation on Assignments and Participations. (a) Any Lender may, in connection with any actual or proposed assignment or participation pursuant to Section 8.07, disclose to the actual or proposed assignee or
participant any information relating to any Borrower furnished to such Lender by or on behalf of such Borrower; provided that the actual or proposed assignee or participant shall have agreed prior to any such disclosure to preserve the
confidentiality of any confidential information relating to such Borrower received by it from such Lender or such Borrower. 
  
 (b) Notwithstanding anything in Section 8.07 to the contrary, no Lender shall have the right to assign its rights and obligations hereunder or any
interest therein or to sell participations to one or more banks or other financial institutions in all or a portion of its rights hereunder or any interest therein where the result of such assignment or participation would be reasonably expected to
entitle the Lender to claim additional amounts pursuant to Section 2.02(d), 2.06, 2.08, 2.10, 2.13(f) or 8.04 or would otherwise result in an increase in the a Borrower’s obligations. 
  
 (c) Anything in this Section 8.08 to the contrary notwithstanding, any
Lender may assign and pledge all or any portion of its rights to payment of the Advances owing to it hereunder to any Federal Reserve Bank (and its transferees) as collateral security pursuant to Regulation A of the Board of Governors of the Federal
Reserve System and any applicable Operating Circular issued by such Federal Reserve Bank. No such assignment shall have the effect of releasing such Lender from its obligations hereunder. 
  
 SECTION 8.09. Withholding. If any Lender, or any Person that becomes a party to this Agreement pursuant to
Section 8.07, is not incorporated under the laws of the United States of America or a state thereof, such Person agrees that, prior to the first date on which any payment is due to it hereunder, it will deliver to each of the Company and the
Administrative Agent (i) two duly completed copies of United States Internal Revenue Service Form W-8BEN or W-8ECI or successor applicable form, as the case may be, certifying in each case that such Person is entitled to receive payments under
this Agreement, without deduction or withholding of any United States federal income taxes, and (ii) an Internal Revenue Service Form W-8BEN or successor applicable form, as the case may be, to establish an exemption from United States backup
withholding tax. Each Person which delivers to the Company a Form W-8BEN or W-8ECI pursuant to the preceding sentence further undertakes to deliver to each of the Company and the Administrative Agent two further copies of Form W-8BEN or W-8ECI, or
successor applicable forms, or other manner of certification, as the case may be, on or before the date that any such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form previously
delivered by it to the Company and the Administrative Agent, and such extensions or renewals thereof as may reasonably be requested by the Company or the Administrative Agent, certifying in the case of a Form W-8BEN or W-8ECI that such 

 
 CREDIT AGREEMENT 
  

 50 

 Person is entitled to receive payments under this Agreement without deduction or withholding of any United States federal
income taxes, unless in any such case an event (including, without limitation, any change in treaty, law or regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Person from duly completing and delivering any such form with respect to it and such Person advises the Company and the Administrative Agent that it is not capable of receiving payments without any deduction or
withholding of United States federal income tax, and in the case of a Form W-8BEN, establishing an exemption from United States backup withholding tax. 
  
 SECTION 8.10. Mitigation. In the event that any Lender claims any amounts under Sections 2.02(d), 2.06, 2.08, 2.10 or 8.04(b), it shall use all
reasonable efforts (consistent with its internal policies and legal and regulatory restrictions) to take actions (including, without limitation, changing the jurisdiction of its Applicable Lending Office) so as to eliminate such additional amounts;
provided that such Lender shall not be required to take any action if, in its reasonable judgment, such action would be materially disadvantageous to it. 
  

SECTION 8.11. Governing Law; Waiver of Jury Trial. THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  
 SECTION 8.12. Execution in Counterparts. This Agreement may be
executed in any number of 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 of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 SECTION 8.13. Submission to Jurisdiction; Etc. 
  
 (a) Submission to Jurisdiction. Each Borrower hereby submits to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York State court sitting in New York City for purposes of all legal proceedings arising out of or relating to this Agreement and the Notes. 
  
 (b) Service of Process. Each Designated Borrower agrees that service of process in any action or proceeding may
be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to CT Corporation System (the “Process Agent”) as agent for such Designated Borrower in
New York, New York for service of process at its address at 111 Eighth Avenue, New York, New York 10011, or at such other address of which the Administrative Agent shall have been notified in writing by such Designated Borrower;
provided that, if the Process Agent ceases to act as such Designated Borrower’s agent for service of process, such Designated Borrower will, by an instrument reasonably satisfactory to the Administrative Agent, appoint another Person
(subject to the approval of the Administrative Agent) in the Borough of Manhattan, New York, New York to act as such Designated Borrower’s agent for service of process. Each other party hereto 
  
 CREDIT AGREEMENT 
  

 51 

 irrevocably consents to service of process in the manner provided for notices in Section 8.02. Nothing in this
Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law 
  
 (c) Waiver of Venue. Each Borrower irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such a court and a claim that such proceeding brought in such a court has been brought in an inconvenient forum. 
  
 SECTION 8.14. Judgment Currency. This is an international loan transaction in which the specification of Dollars or
an Alternate Currency, as the case may be (the “Specified Currency”), and any payment in New York City or the country of the Specified Currency, as the case may be (the “Specified Place”), is of the essence, and,
except as otherwise provided in this Agreement, the Specified Currency shall be the currency of account in all events relating to Advances denominated in the Specified Currency. Except as otherwise provided in this Agreement, the payment obligations
of the Designated Borrowers under this Agreement and the other Loan Documents shall not be discharged by an amount paid in another currency or in another place, whether pursuant to a judgment or otherwise, to the extent that the amount so paid on
conversion to the Specified Currency and transfer to the Specified Place under normal banking procedures does not yield the amount of the Specified Currency at the Specified Place due hereunder. If for the purpose of obtaining judgment in any court
it is necessary to convert a sum due hereunder in the Specified Currency into another currency (the “Second Currency”), the rate of exchange which shall be applied shall be that at which in accordance with normal banking procedures
the Administrative Agent could purchase the Specified Currency with the Second Currency on the Business Day next preceding that on which such judgment is rendered. The obligation of each Designated Borrower in respect of any such sum due from it to
the Administrative Agent or any Lender in respect of any judgment in any court shall, notwithstanding the rate of exchange actually applied in rendering such judgment, be discharged only to the extent that on the Business Day following receipt by
the Administrative Agent or such Lender, as the case may be, of any sum adjudged to be due hereunder or under the Notes in the Second Currency to the Administrative Agent or such Lender, as the case may be, may in accordance with normal banking
procedures purchase and transfer to the Specified Place the Specified Currency with the amount of the Second Currency so adjudged to be due; and the Company hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify
the Administrative Agent or such Lender, as the case may be, against, and to pay the Administrative Agent or such Lender, as the case may be, on demand in the Specified Currency, any difference between the sum originally due to the Administrative
Agent or such Lender, as the case may be, for such judgment in the Specified Currency and the amount of the Specified Currency so purchased and transferred. 
  
 SECTION 8.15. USA PATRIOT Act. Each Lender hereby notifies each Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other
information that will allow such Lender to identify the Borrowers in accordance with the Act. 
  
 CREDIT AGREEMENT 
  

 52 

 ARTICLE IX 
  
 GUARANTEE 
  
 SECTION 9.01. Guarantee. To induce the other parties to enter into this Agreement and for other valuable consideration, receipt of which is hereby
acknowledged, the Company hereby unconditionally and irrevocably guarantees to the Administrative Agent, each Lender and their respective successors and permitted assigns the prompt payment in full when due (whether at stated maturity, by
acceleration or otherwise) of the principal of and interest on the Advances to and the Notes of each Designated Borrower and all other amounts whatsoever now or hereafter payable or becoming payable by each Designated Borrower under this
Agreement and each other Loan Document, in each case strictly in accordance with the terms thereof (collectively, the “Guaranteed Obligations”). The Company hereby further agrees that if any Designated Borrower shall fail to pay in
full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, the Company will promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of
payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. This
Section 9.01 is a continuing guarantee and is a guarantee of payment and is not merely a guarantee of collection and shall apply to all Guaranteed Obligations whenever arising. 
  
 SECTION 9.02. Acknowledgments, Waivers and Consents. The Company agrees that its obligations under Section 9.01
shall be primary, absolute, irrevocable and unconditional under any and all circumstances and that the guarantee therein is made with respect to any Guaranteed Obligations now existing or in the future arising. Without limiting the foregoing, the
Company agrees that: 
  
 (a) The occurrence of any one or
more of the following shall not affect the enforceability or effectiveness of this Article IX in accordance with its terms or affect, limit, reduce, discharge or terminate the liability of the Company, or the rights, remedies, powers and
privileges of the Administrative Agent or any Lender, under this Article IX: 
  
 (i) any modification or amendment (including by way of amendment, extension, renewal or waiver), or any acceleration or other change
in the time for payment or performance of the terms of all or any part of the Guaranteed Obligations or any Loan Document, or any other agreement or instrument whatsoever relating thereto, or any modification of the Commitments; 
  
 (ii) any release, termination, waiver, abandonment,
lapse or expiration, subordination or enforcement of the liability of any other guarantee of all or any part of the Guaranteed Obligations; 
  
 (iii) any application of the proceeds of any other guarantee (including the obligations of any other guarantor of all or any part of
the Guaranteed Obligations) to all or any part of the Guaranteed Obligations in any such manner and to such extent as the Administrative Agent may determine; 
  
 CREDIT AGREEMENT 
  

 53 

 (iv) any release of any other Person (including any other guarantor with respect to
all or any part of the Guaranteed Obligations) from any personal liability with respect to all or any part of the Guaranteed Obligations; 
  
 (v) any settlement, compromise, release, liquidation or enforcement, upon such terms and in such manner as the Administrative Agent
may determine or as applicable law may dictate, of all or any part of the Guaranteed Obligations or any other guarantee of (including any letter of credit issued with respect to) all or any part of the Guaranteed Obligations; 
  
 (vi) the giving of any consent to the merger or
consolidation of, the sale of substantial assets by, or other restructuring or termination of the corporate existence of any Designated Borrower or any other Person or any disposition of any shares of the Company or any Designated Borrower;

  
 (vii) any proceeding against any
Designated Borrower or any other guarantor of all or any part of the Guaranteed Obligations or any collateral provided by any other Person or the exercise of any rights, remedies, powers and privileges of the Administrative Agent and the Lenders
under the Loan Documents or otherwise in such order and such manner as the Administrative Agent may determine, regardless of whether the Administrative Agent or the Lenders shall have proceeded against or exhausted any collateral, right, remedy,
power or privilege before proceeding to call upon or otherwise enforce this Article IX; 
  
 (viii) the entering into such other transactions or business dealings with any Designated Borrower, any Subsidiary or affiliate
thereof or any other guarantor of all or any part of the Guaranteed Obligations as the Administrative Agent or any Lender may desire; or 
  
 (ix) all or any combination of any of the actions set forth in this Section 9.02(a). 
  
 (b) The enforceability and effectiveness of this Article IX and the
liability of the Company, and the rights, remedies, powers and privileges of the Administrative Agent and the Lenders under this Article IX shall not be affected, limited, reduced, discharged or terminated, and the Company hereby expressly
waives to the fullest extent permitted by law any defense now or in the future arising, by reason of: 
  
 (i) the illegality, invalidity or unenforceability of all or any part of the Guaranteed Obligations, any Loan Document or any other
agreement or instrument whatsoever relating to all or any part of the Guaranteed Obligations; 
  
 (ii) any disability or other defense with respect to all or any part of the Guaranteed Obligations, including the effect of any
statute of limitations that may bar the enforcement of all or any part of the Guaranteed Obligations or the obligations of any such other guarantor; 
  
 (iii) the illegality, invalidity or unenforceability of any security for or other guarantee (including any letter of credit) of
all or any part of the Guaranteed Obligations or the lack of perfection or continuing perfection or failure of the priority of any Lien on any collateral for all or any part of the Guaranteed Obligations; 
  
 CREDIT AGREEMENT 
  

 54 

 (iv) the cessation, for any cause whatsoever, of the liability of any Designated
Borrower or any other guarantor with respect to all or any part of the Guaranteed Obligations (other than, subject to Section 9.03, by reason of the full payment of all Guaranteed Obligations); 
  
 (v) any failure of the Administrative Agent or any
Lender to marshal assets in favor of any Designated Borrower or any other Person (including any other guarantor of all or any part of the Guaranteed Obligations), to exhaust any collateral for all or any part of the Guaranteed Obligations, to pursue
or exhaust any right, remedy, power or privilege it may have against such Designated Borrower or any other guarantor of all or any part of the Guaranteed Obligations or any other Person or to take any action whatsoever to mitigate or reduce such or
any other Person’s liability, the Administrative Agent and the Lenders being under no obligation to take any such action notwithstanding the fact that all or any part of the Guaranteed Obligations may be due and payable and that such Designated
Borrower may be in default of its obligations under any Loan Document; 
  
 (vi) any counterclaim, set-off or other claim which any Designated Borrower or any other guarantor of all or any part of the Guaranteed Obligations has or claims with respect to all or any part of the Guaranteed
Obligations, or any counterclaim, set-off or other claim which the Company may have with respect to all or any part of any obligations owed to the Company by the Administrative Agent or any Lender (other than, without prejudice to Section 9.03,
any counterclaim or other claim that the amount of such Guaranteed Obligation which is being claimed has been finally paid in full); 
  
 (vii) any failure of the Administrative Agent or any Lender or any other Person to file or enforce a claim in any bankruptcy or other
proceeding with respect to any Person; 
  
 (viii) any bankruptcy, insolvency, reorganization, winding-up or adjustment of debts, or appointment of a custodian, liquidator or the like of it, or similar proceedings commenced by or against any Person, including any discharge of,
or bar or stay against collecting, all or any part of the Guaranteed Obligations (or any interest on all or any part of the Guaranteed Obligations) in or as a result of any such proceeding; 
  
 (ix) any action taken by the Administrative Agent or
any Lender that is authorized under this Article IX or by any other provision of any Loan Document or any omission to take any such action; 
  
 (x) any law, regulation, decree or order of any jurisdiction of Governmental Authority or any event affecting any term of the
Guaranteed Obligations; or 
  
 (xi) any
other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor. 
  
 (c) To the fullest extent permitted by law, the Company expressly waives, for the benefit of the Administrative Agent and the Lenders, all diligence,
presentment, demand for 
  
 CREDIT
AGREEMENT 
  

 55 

 payment or performance, notices of nonpayment or nonperformance, protest, notices of protest, notices of dishonor and all
other notices or demands of any kind or nature whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Designated Borrower under any Loan Document or other agreement or
instrument referred to herein or therein, or against any other Person under any other guarantee of, or security for, any of the Guaranteed Obligations, and all notices of acceptance of this Article IX or of the existence, creation, incurring or
assumption of new or additional Guaranteed Obligations. 
  
 SECTION 9.03. Reinstatement. The obligations of the Company under this Article IX shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Designated Borrower in respect of
the Guaranteed Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender, whether as a result of insolvency, any proceedings in bankruptcy, dissolution, liquidation or reorganization or otherwise.

  
 SECTION 9.04. Subrogation. The Company hereby agrees
that, until the final payment in full of all Guaranteed Obligations, it shall not exercise any right or remedy arising by reason of any performance by it of its guarantee in Section 9.01, whether by subrogation, reimbursement, contribution or
otherwise, against any Designated Borrower or any other guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed Obligations. 
  
 SECTION 9.05. Remedies. The Company agrees that, as between the Company and the Administrative Agent and the Lenders, the obligations of any
Designated Borrower under this Agreement or any other Loan Documents may be declared to be forthwith due and payable as provided in Section 6.01 (and shall be deemed to have become automatically due and payable in the circumstances provided in
said Section 6.01) for purposes of Section 9.01, notwithstanding any stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against such Designated
Borrower and that, in the event of such declaration (or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by such Designated Borrower) shall forthwith become due and
payable by such Company for purposes of Section 9.01. 
  
 SECTION 9.06. Payments. Each payment by the Company under this Article IX shall be made in accordance with Section 2.09 in the Currency in which the Guaranteed Obligations such payment is made in respect of are denominated,
without deduction, set-off or counterclaim at the Administrative Agent’s Account and free and clear of any and all present and future Taxes. 
  
 [remainder of page intentionally left blank] 
  
 CREDIT AGREEMENT 
  

 56 

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

			
	THE STANLEY WORKS
		
	 By
	 	 /s/ Craig A. Douglas

	 Name:
	 	 Craig A. Douglas

	 Title:
	 	 VP and Treasurer

  
 CREDIT AGREEMENT 
  

 57 

			
	CITIBANK, N.A.,
	as Administrative Agent and as Lender
		
	By	 	 /s/ Carolyn Kee

	Name:	 	Carolyn Kee
	Title:	 	Vice President

  
 CREDIT AGREEMENT 
  

 58 

			
	LENDERS
	
	 BANK OF AMERICA, N.A.

		
	By	 	 /s/ Kenneth S. Struglia

	Name:	 	Kenneth S. Struglia
	Title:	 	Managing Director

  
 CREDIT AGREEMENT 
  

 59 

			
	BNP PARIBAS
		
	By	 	 /s/ Angela Bentley-Arnold

	Name:	 	Angela Bentley-Arnold
	Title:	 	Vice President
		
	By	 	 /s/ Christopher Criswell

	Name:	 	Christopher Criswell
	Title:	 	Managing Director

  
 CREDIT AGREEMENT 
  

 60 

			
	UBS LOAN FINANCE LLC
		
	By	 	 /s/ Doris Mesa

	Name:	 	Doris Mesa
	Title:	 	Associate Director
		
	By	 	 /s/ Joselin Fernandes

	Name:	 	Joselin Fernandes
	Title:	 	Associate Director

  
 CREDIT AGREEMENT 
  

 61 

			
	MELLON BANK, N.A.
		
	By	 	 /s/ William M. Feathers

	Name:	 	William M. Feathers
	Title:	 	Vice President

  
 CREDIT AGREEMENT 
  

 62 

			
	BARCLAYS BANK, PLC
		
	By	 	 /s/ Nicholas A. Bell

	Name:	 	Nicholas A. Bell
	Title:	 	Director

  
 CREDIT AGREEMENT 
  

 63 

			
	HSBC BANK USA, NATIONAL ASSOCIATION
		
	By	 	 /s/ Diane M. Zieske

	Name:	 	Diane M. Zieske
	Title:	 	Senior Vice President

  
 CREDIT AGREEMENT 
  

 64 

			
	JPMORGAN CHASE BANK, N.A.
		
	By	 	 /s/ Randolph Cates

	Name:	 	Randolph Cates
	Title:	 	Vice President

  
 CREDIT AGREEMENT 
  

 65 

			
	MERRILL LYNCH BANK USA
		
	By	 	 /s/ Louis Adler

	Name:	 	Louis Adler
	Title:	 	Director

  
 CREDIT AGREEMENT 
  

 66 

			
	ROYAL BANK OF CANADA
		
	 By
	 	 /s/ Dustin Craven

	 Name:
	 	Dustin Craven
	 Title:
	 	Attorney-in-Fact
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 CREDIT AGREEMENT 
  

 67 

			
	WILLIAM STREET CREDIT CORPORATION
		
	By	 	 /s/ Mark Walton

	Name:	 	Mark Walton
	Title:	 	Assistant Vice President

  
 CREDIT AGREEMENT 
  

 68 

			
	NATIONAL CITY BANK, INDIANA
		
	By	 	 /s/ Christopher Susott

	Name:	 	Christopher Susott
	Title:	 	Vice President

  
 CREDIT AGREEMENT 
  

 69 

			
	THE NORTHERN TRUST COMPANY
		
	By	 	 /s/ Christopher McKean

	Name:	 	Christopher McKean
	Title:	 	Vice President

  
 CREDIT AGREEMENT 
  

 70 

 SCHEDULE I 
  
 ADDRESS AND APPLICABLE LENDING OFFICES 
  

					
	 Name of Lenders and Addresses
 For Notices

	 	 Domestic Lending Office

	 	 Eurocurrency Lending Office  

	 Citibank, N.A.
 2 Penns Way, Suite 200
 New Castle, DE 19720
  
 Attn:      Bank Loans Syndication
 Fax:        (302) 894-6120
	 	 Citibank, N.A.
 2 Penns Way, Suite 200
 New Castle, DE 19720
  
 Attn:      Bank Loans Syndication
 Fax:        (302) 894-6120
	 	 Citibank, N.A.
 2 Penns Way, Suite 200
 New Castle, DE 19720
  
 Attn:        Bank Loans Syndication
 Fax:        (302) 894-6120

	

	 Bank of America, N.A.
 2001 Clayton Road
 Concord, CA 94510
 Mailcode# CA4-702-02-25
  
 Attn:       Eileen
Rakish
 Tel:        (925) 675-7485
 Fax:        (888) 969-9226
	 	 Bank of America, N.A.
 100 Federal Street
 Boston, MA 02110
	 	 Bank of America, N.A.
 100 Federal Street
 Boston, MA 02110

	

	 BNP Paribas
 787 Seventh Avenue
 New York, NY 10019
  
 Attn:      Christopher Criswell
 Tel:        (212) 841-3404
 Fax:        (212) 841-3049
	 	 BNP Paribas
 787 Seventh Avenue
 New York, NY 10019
  
 Attn:      Christopher Criswell
 Tel:        (212) 841-3404
 Fax:        (212) 841-3049
	 	 BNP Paribas
 787 Seventh Avenue
 New York, NY 10019
  
 Attn:        Christopher Criswell
 Tel:        (212) 841-3404
 Fax:        (212) 841-3049

	

	 UBS Loan Finance LLC
 677 Washington Boulevard
 Stamford, CT 06901
  
 Primary Contact: Tim Costello
 Tel:        (203) 719-5274
 Fax:        (203) 719-3888
  
 Secondary Contact: David Vitti
 Tel:        (203) 719-5969
 Fax:        (203) 719-3888
	 	 UBS Loan Finance LLC
 677 Washington Boulevard
 Stamford, CT 06901
  
 Primary Contact: Tim Costello
 Tel:        (203) 719-5274
 Fax:        (203) 719-3888
  
 Secondary Contact: David Vitti
 Tel:        (203) 719-5969
 Fax:        (203) 719-3888
	 	 UBS Loan Finance LLC
 677 Washington Boulevard
 Stamford, CT 06901
  
 Primary Contact: Tim Costello
 Tel:        (203) 719-5274
 Fax:        (203) 719-3888
  
 Secondary Contact: David Vitti
 Tel:        (203) 719-5969
 Fax:        (203) 719-3888

	

	 Mellon Bank, N.A.
 3 Mellon Bank Center,
 12th Floor
 Pittsburgh, PA 15259
  
 Primary Contact: Barbara Gago
 Tel:        (412) 234-4710
 Fax:        (412) 209-6114
	 	 Mellon Bank, N.A.
 3 Mellon Bank Center,
 12th Floor
 Pittsburgh, PA 15259
  
 Primary Contact: Barbara Gago
 Tel:        (412) 234-4710
 Fax:        (412) 209-6114
	 	 Mellon Bank, N.A.
 3 Mellon Bank Center,
 12th Floor
 Pittsburgh, PA 15259
  
 Primary Contact: Barbara Gago
 Tel:        (412) 234-4710
 Fax:        (412) 209-6114

  
 SCHEDULE I 

					
	 Name of Lenders and Addresses
 For Notices

	 	 Domestic Lending Office

	 	 Eurocurrency Lending Office  

	 Barclays Bank, PLC
 200 Park Avenue
 New York, NY 10166
  
 Attn:      Jason Yoo
 Tel:        (212) 412-2432
 Fax:        (212) 412-5306
  
 Alternate Contact: Erik Hoffman
 Tel:        (212) 412-3706
	 	 Barclays Bank, PLC
 200 Park Avenue
 New York, NY 10166
  
 Attn:      Jason Yoo
 Tel:        (212) 412-2432
 Fax:        (212) 412-5306
  
 Alternate Contact: Erik Hoffman
 Tel:        (212) 412-3706
	 	 Barclays Bank, PLC
 200 Park Avenue
 New York, NY 10166
  
 Attn:      Jason Yoo
 Tel:        (212) 412-2432
 Fax:        (212) 412-5306
  
 Alternate Contact: Erik Hoffman
 Tel:        (212) 412-3706

	

	 HSBC Bank USA, National Association
 452 Fifth Avenue, 5/F
 New York, NY 10018
  
 Primary Contact: Diane M. Zieske
 Tel:        (212) 525-2487
 Fax:        (212) 525-2479
  
 Secondary Contact: Rochelle Forster
 Tel:        (212) 525-2489
 Fax:        (212) 525-2479
	 	 HSBC Bank USA, National Association
 452 Fifth Avenue, 5/F
 New York, NY 10018
  
 Primary Contact: Diane M. Zieske
 Tel:        (212) 525-2487
 Fax:        (212) 525-2479
  
 Secondary Contact: Rochelle Forster
 Tel:        (212) 525-2489
 Fax:        (212) 525-2479
	 	 HSBC Bank USA, National Association
 452 Fifth Avenue, 5/F
 New York, NY 10018
  
 Primary Contact: Diane M. Zieske
 Tel:        (212) 525-2487
 Fax:        (212) 525-2479
  
 Secondary Contact: Rochelle Forster
 Tel:        (212) 525-2489
 Fax:        (212) 525-2479

	

	 JPMorgan Chase Bank, N.A.
 270 Park Avenue
 New York, NY 10017
  
 Attn:      Anthony W. White
 Tel:         (212) 270-1051
 Fax:        (212) 270-6637
	 	 JPMorgan Chase Bank, N.A.
 270 Park Avenue
 New York, NY 10017
  
 Attn:      Anthony W. White
 Tel:        (212) 270-1051
 Fax:        (212) 270-6637
	 	 JPMorgan Chase Bank, N.A.
 270 Park Avenue
 New York, NY 10017
  
 Attn:      Anthony W. White
 Tel:        (212) 270-1051
 Fax:        (212) 270-6637

	

	 Merrill Lynch Bank USA
 15 W. South Temple, Suite 300
 Salt Lake City, UT 84101
  
 Attn:      Mark Cannon
 Tel:        (801) 526-8631
 Fax:        (801) 359-4467
	 	 Merrill Lynch Bank USA
 15 W. South Temple, Suite 300
 Salt Lake City, UT 84101
	 	 Merrill Lynch Bank USA
 15 W. South Temple, Suite 300
 Salt Lake City, UT 84101

	

	 Royal Bank of Canada
 New York Branch
 One Liberty Plaza, 3rd Floor
 165 Broadway
 New York, NY 10006-1404
  
 Attn:      Manager, Loans
                Administration
 Tel:        (212) 428-6369
 Fax:        (212) 428-2372
  
 With a copy to:
 Nigel Delph, CTM Group
 Fax:        (212) 429-2319
	 	 Royal Bank of Canada
 One Liberty Plaza, 3rd Floor
 165 Broadway
 New York, NY 10006-1404
  
 Attn:      Manager, Loans
                Administration
 Tel:        (212) 428-6369
 Fax:        (212) 428-2372
	 	 Royal Bank of Canada
 One Liberty Plaza, 3rd Floor
 165 Broadway
 New York, NY 10006-1404
  
 Attn:      Manager, Loans
                Administration
 Tel:        (212) 428-6369
 Fax:        (212) 428-2372

  
 SCHEDULE I 

					
	 Name of Lenders and Addresses
For Notices

	 	 Domestic Lending Office

	 	 Eurocurrency Lending Office

	 William Street Credit Corporation
 30 Hudson Street - 17th floor
 Jersey City, NJ 07302
  
 E-mail:    ficc-lstops-ny@gs.com
 Fax:        (212) 357-4597/
                 (212) 428-1022
	 	 William Street Credit Corporation
 1 New York Plaza, 48th Floor
 New York, NY 10004
  
 Primary Contact: Mark Walton
 Tel:        (917) 343-5303
 Fax:        (212) 428-1360
	 	 William Street Credit Corporation
 1 New York Plaza, 48th Floor
 New York, NY 10004
  
 Primary Contact: Mark Walton
 Tel:        (917) 343-5303
 Fax:        (212) 428-1360

	

	 National City Bank, Indiana
 National City Center
 Suite 200E
 Indianapolis, IN 46255
  
 Primary Contact: Jan Steed
 Tel:        (317) 267-7941
 Fax:        (317) 267-8899
  
 Secondary Contact: Cheryl Willard
 Tel:        (317) 267-7665
 Fax:        (317) 267-7141
	 	 National City Bank, Indiana
 National City Center
 Suite 200E
 Indianapolis, IN 46255
  
 Primary Contact: Jan Steed
 Tel:        (317) 267-7941
 Fax:        (317) 267-8899
  
 Secondary Contact: Cheryl Willard
 Tel: (317) 267-7665
 Fax: (317) 267-7141
	 	 National City Bank, Indiana
 National City Center
 Suite 200E
 Indianapolis, IN 46255
  
 Primary Contact: Jan Steed
 Tel:        (317) 267-7941
 Fax:         (317) 267-8899
  
 Secondary Contact: Cheryl Willard
 Tel:        (317) 267-7665
 Fax:        (317) 267-7141

	

	 The Northern Trust Company
 50 South LaSalle Street – C4N
 Chicago, IL 60675
  
 Attn:      Sharon Jackson
 Tel:        (312) 630-1609
 Fax:        (312) 630-1566
	 	 The Northern Trust Company
 50 South LaSalle Street – C4N
 Chicago, IL 60675
  
 Attn:      Sharon Jackson
 Tel:        (312) 630-1609
 Fax:        (312) 630-1566
	 	 The Northern Trust Company
 50 South LaSalle Street – C4N
 Chicago, IL 60675
  
 Attn:      Sharon Jackson
 Tel:        (312) 630-1609
 Fax:        (312) 630-1566

  
 SCHEDULE I 

 SCHEDULE I (cont’d) 
  
 LENDERS AND COMMITMENTS 
  

				
	 Lenders

	  	Commitment

	 Citibank, N.A.
	  	$	76,000,000
	 Bank of America, N.A.
	  	$	68,000,000
	 BNP Paribas
	  	$	68,000,000
	 UBS Loan Finance LLC
	  	$	68,000,000
	 Mellon Bank, N.A.
	  	$	40,000,000
	 Barclays Bank, PLC
	  	$	37,500,000
	 HSBC Bank USA, National Association
	  	$	37,500,000
	 JPMorgan Chase Bank, N.A.
	  	$	35,000,000
	 Merrill Lynch Bank USA
	  	$	30,000,000
	 Royal Bank of Canada
	  	$	30,000,000
	 William Street Credit Corporation
	  	$	30,000,000
	 National City Bank, Indiana
	  	$	15,000,000
	 The Northern Trust Company
	  	$	15,000,000
	                 TOTAL
	  	$	550,000,000

  
  

 SCHEDULE I 

 SCHEDULE II 
  

MANDATORY COST RATE 
  
 Calculation of Mandatory Cost Rate 
  

	1.	The MCR Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period for any Advance denominated in Pounds Sterling or Euros (or as soon as possible thereafter) the Administrative Agent shall calculate, as a
percentage rate, a rate (the “Additional Cost Rate”) for each Lender participating in such Advance, in accordance with the paragraphs set out below. The MCR Cost will be calculated by the Administrative Agent as a weighted average
of such Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each such Lender in the relevant Advance) and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Lender lending from an Applicable Lending Office in a Participating Member State (as defined in Section 2.15) will be the percentage notified
by that Lender to the Administrative Agent. This percentage will be certified by that Lender in its notice to the Administrative Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in
all Advances made from that Applicable Lending Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Applicable Lending Office. 

  

	4.	The Additional Cost Rate for any Lender lending from an Applicable Lending Office in the United Kingdom will be calculated by the Administrative Agent as follows:

  

	 	(a)	in relation to a Advance made in Pounds Sterling: 

  

			
	 

	 	per cent. per annum

  

	 	(b)	in relation to a Advance made in any Alternate Currency other than Pounds Sterling: 

  

	 	

			
	 

	 	per cent. per annum.

  

 SCHEDULE II 

 Where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which such Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	 	B	is the percentage rate of interest (excluding the Applicable Margin and the MCR Cost and, if applicable, any additional amount of interest specified in Section 2.07(b)) payable
for the relevant Interest Period on the Advance. 

  

	 	C	is the percentage (if any) of Eligible Liabilities which such Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits. 

  

	 	E	is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Administrative Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and expressed in Pounds Sterling per £1,000,000; 

  

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” has the meaning given to it from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England. 

  

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits. 

  

	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate). 

  

	 	(d)	“Special Deposits” has the meaning given to it from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England. 

  

	 	(e)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	If requested by the Administrative Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Administrative
Agent, the 

  

 SCHEDULE II 

 rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees
Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed
in Pounds Sterling per £1,000,000 of the Tariff Base of that Reference Bank. 
  

	8.	Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which it becomes a Lender: 

  

	 	(a)	the jurisdiction of its Applicable Lending Office; and 

  

	 	(b)	any other information that the Agent may reasonably require for such purpose. 

  

Each Lender shall promptly notify the Administrative Agent of any change to the information provided by it pursuant to this paragraph. 
  

	9.	The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Administrative
Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and
Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with an Applicable Lending Office in the same jurisdiction as its Applicable Lending Office. 

  

	10.	The Administrative Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	11.	The Administrative Agent shall distribute the additional amounts received as a result of the MCR to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above. 

  

	12.	Any determination by the Administrative Agent pursuant to this Schedule II in relation to a formula, the MCR, an Additional Cost Rate or any amount payable to a Lender shall,
in the absence of manifest error, be conclusive and binding on all Parties. 

  

	13.	The Administrative Agent may from time to time, after consultation with the Company and the Lenders, determine and provide notice to the Company and the Lenders of any amendments
which are required to be made to this Schedule II in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in
any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties to the Credit Agreement. 

  

 SCHEDULE II 

 SCHEDULE III 
  
 DESIGNATED BORROWER JURISDICTIONS 
  
 United Kingdom 
  
 Belgium 
  
 SCHEDULE II 

 EXHIBIT A-1 
  
 RATE REQUEST 
  
 Citibank, N.A., as Reference Bank under the Credit Agreement referred to below 
 2 Penns Way, Suite 200 
 New Castle, Delaware 19720 
 Attn:
[            ] 
  
 [Date] 
  
 Ladies and Gentlemen: 
  
 The undersigned, The Stanley
Works, refers to the Amended and Restated Credit Agreement, dated as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein
defined) among the undersigned, certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said Lenders and hereby requests notification from you pursuant to Section 2.02(a) thereof of the Eurocurrency Rate which is
applicable to the Committed Advance to be made (or converted or continued) on         , 200   in the principal amount of
[$            ] [€            ]
[£            ] with the Interest Period of      months. 
  

			
	 Very truly yours,

	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 TO BE COMPLETED AND RETURNED BY REFERENCE BANK: 
  

The rate requested above, determined as required by the Credit Agreement, is
        . 
  

			
	 CITIBANK, N.A., as Reference Bank

		
	 By
	 	  

	 	 	 Authorized Officer

  

 A1-1 

 EXHIBIT A-2 
  
 NOTICE OF BORROWING 
  
 Citibank, N.A., as Administrative Agent for the Lenders parties to the Credit Agreement referred to below 
 2 Penns Way, Suite 200 
 New Castle, Delaware 19720 
 Attn:
[            ] 
  
 [Date] 
  
 Ladies and Gentlemen: 
  
 The undersigned, The Stanley
Works, refers to the Amended and Restated Credit Agreement, dated as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein
defined), among the undersigned, certain Designated Borrowers, certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit
Agreement that the undersigned hereby requests a Committed Borrowing on the following terms under the Credit Agreement, and in that connection sets forth below the information relating to such Committed Borrowing (the “Proposed Committed
Borrowing ”) as required by Section 2.02(b) of the Credit Agreement: 
  
 (i) The Borrower is
                                . 
  
 (ii) The Business Day of the Proposed Committed Borrowing is
            , 200  . 
  
 (iii) The Type of Advances comprising the Proposed Committed Borrowing is [Base Rate]1 [Eurocurrency Rate]. 
  
 (iv) The aggregate amount of the Proposed Committed Borrowing is [$]2 [€] [£]             . 
  
 [(v)] The Initial Interest Period for each Eurocurrency Rate
Advance made as part of the Proposed Committed Borrowing is              month[s]]. 
  

[(v) The proceeds of the Proposed Committed Borrowing are to be used to buy or carry Margin Stock, and attached hereto are the
certificates required pursuant to Section 3.02(ii) of the Credit Agreement and a duly completed Form U-1 or Form G-3.]3 
  

	1	not available for any Designated Borrower 

	2	not available for any Designated Borrower 

	3	if applicable 

  

 A2-1 

 The undersigned hereby certifies that the following statements are true on the date hereof, and will be
true on the date of the Proposed Committed Borrowing: 
  
 (A) the
representations and warranties contained in Section 4.01 of the Credit Agreement (other than the Excluded Representation) are correct in all material respects, before and after giving effect to the Proposed Committed Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date; and 
  
 (B) no event has occurred and is continuing, or would result from such Proposed Committed Borrowing or from the application of the proceeds therefrom, which constitutes an Event of Default or would constitute an Event
of Default but for the requirement that notice be given or time elapse or both. 
  

			
	 Very truly yours,

	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 A2-2 

 EXHIBIT B 
  
 NOTICE OF CONVERSION OR CONTINUATION 
  
 [Date] 
  
 Citibank, N.A., as Administrative Agent for the Lenders parties to the Credit Agreement referred to below 
 2 Penns Way, Suite 200 
 New Castle, Delaware 19720 
 Attn:
[            ] 
  
 Ladies and Gentlemen: 
  
 The undersigned, The Stanley Works, refers to the Amended and Restated Credit Agreement, dated as of December 1, 2005 (as amended, modified or
supplemented from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said
Lenders, and hereby gives you notice, pursuant to Section 2.04(b) of the Credit Agreement that [the undersigned] [NAME OF DESIGNATED BORROWER] hereby elects to [convert][continue] the Committed Borrowing consisting of [Base Rate][Eurocurrency
Rate] Advances: 
  
 (i) which is in the amount of
$             ; 
  
 (ii) which, in the case of a Committed Borrowing consisting of Eurocurrency Rate Advances, has an Interest Period of
     month(s);4 and 
  
 (iii) which was borrowed (or previously converted or continued) on
            , 200  . 
  
 Such [conversion][continuation] shall become effective on             ,
200  , at which time such Advances shall be [converted into][continued as] [Base Rate][Eurocurrency Rate] Advances: 
  
 (i) which is in the amount of $             ;5 
  

 Omit clause (ii) if Committed Borrowing consisted of Base Rate Advances. 
  

 B-1 

 and 
  
 (ii) which has an Interest Period of      month(s)6. 
  

			
	 Very truly yours,

	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 ...(continued) 

	2	Omit clause (i) if conversion or continuation is for entire amount of Committed Borrowing. 

	3	Omit clause (ii) if conversion is into Base Rate Advance. 

  

 B-2 

 EXHIBIT C 
  
 FORM OF QUOTE REQUEST 
  
 [Date] 
  
 Citibank, N.A., as Administrative Agent for the Lenders parties to the Credit Agreement referred to below 
 2 Penns Way, Suite 200 
 New Castle, Delaware 19720 
 Attn: [            ] 
  
 Ladies and Gentlemen: 
  
 The undersigned, The Stanley Works, refers to the Amended and Restated
Credit Agreement, dated as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, certain
Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said Lenders, and hereby gives you notice pursuant to Section 2.13 of the Credit Agreement that the undersigned hereby requests offers to make an Uncommitted Borrowing
under the Credit Agreement, and in that connection sets forth the terms on which such Borrowing (the “Proposed Uncommitted Borrowing”) is requested to be made7: 
  
 (i) The Business Day of the Proposed Uncommitted Borrowing is
            , 200     . 
  
 (ii) The proposed aggregate amount of the Proposed Uncommitted Borrowing is
$            . 
  
 (iii) The duration of the proposed Interest Period for the Proposed Uncommitted Borrowing is
        . 
  
 (iv) The Type of Proposed Uncommitted Borrowing is [Fixed Rate] [Floating Rate]. 
  

	4	Information required for a Borrowing may be repeated as necessary if more than one Borrowing is being requested in one Form of Quote Request.

  

 C-1 

 The undersigned hereby certifies that the following statements are true on the date hereof, and will be
true on the date of the Proposed Uncommitted Borrowing: 
  
 (A)
the representations and warranties contained in Section 4.01 of the Credit Agreement (other than the Excluded Representation) are correct in all material respects, before and after giving effect to the Proposed Uncommitted Borrowing on the same
day and to the application of the proceeds therefrom, as though made on and as of such date; and 
  
 (B) no event has occurred and is continuing, or would result from such Proposed Uncommitted Borrowing or from the application of the proceeds therefrom,
which constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  

			
	 Very truly yours,

	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 C-2 

 EXHIBIT D 
  
 FORM OF QUOTE 
  
 [Date] 
  
 THE STANLEY WORKS 
 1000 Stanley Drive 
 New Britain, CT 06050 
  

	Re:	the Amended and Restated Credit Agreement dated as of December 1, 2005 among The Stanley Works, certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for
said Lenders (as amended, modified or supplemented from time to time, the “Credit Agreement”) 

  
 Ladies and Gentlemen: 
  
 The undersigned, [Name of Lender], refers to the above referenced Credit Agreement. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement. The undersigned hereby makes [a] Quote[s] pursuant to Section 2.13 of the Credit Agreement, in response to the Quote Request made by the Company on
        , and in response thereto, sets forth below the terms on which such Quote[s] [is] [are] made: 
  
 (i) The principal amount of the Uncommitted Advance is
$            . 
  
 (ii) The Type of Uncommitted Advance is [Fixed Rate] [Floating Rate]. 
  
 (iii) The Floating Rate Margin in the case of a Floating Rate Advance, or the Fixed Rate in the case of a
Fixed Rate Advance, is         .8 
  
 The undersigned hereby confirms that it is prepared, subject to the
conditions set forth in the Credit Agreement, to extend credit to the Company upon acceptance by the Company of this Quote in accordance with Section 2.13(d) of the Credit Agreement. 
  

			
	 Very truly yours,

	
	 [NAME OF LENDER]

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

	5	Clauses (i) through (iii) should be repeated as to each additional offer being made. 

  

 D-1 

 EXHIBIT E 
  
 FORM OF ACCEPTANCE 
  
 [Date] 
  
 Citibank, N.A., as Administrative Agent for the Lenders parties to the Credit Agreement referred to below 
 2 Penns Way, Suite 200 
 New Castle, Delaware
19720 
 Attn: [            ] 
  

	Re:	the Amended and Restated Credit Agreement, dated as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement”) among
the undersigned, certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said Lenders 

  
 Ladies and Gentlemen: 
  
 The undersigned, The Stanley Works, refers to the above referenced Credit Agreement. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement. In accordance with Section 2.13 of the Credit Agreements, we have received [a] Quote/Quotes in connection with our Quote Request, dated
        , for [an] Uncommitted Borrowing[s] to occur on         , and in accordance with Section 2.13(d) of the Credit Agreement, we
hereby accept the following offer/offers for the Interest Period of [            ]: 
  
 Principal
Amount                            Fixed Rate/Floating
Rate                    Lender 
  
  

			
	Very truly yours,
	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 E-1 

 EXHIBIT F-1 
  
 FORM OF OPINION OF COUNSEL TO THE BORROWER 
  
 December     , 2005 
  
 To each of the Lenders listed on 
 Schedule I hereto and to 
 Citibank, N.A., as Administrative Agent 
 For the Lenders 
  

	 	Re:	The $550,000,000 Amended and Restated Credit Agreement among The Stanley Works, the Lenders party thereto and Citibank, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 We have acted as special counsel to The Stanley Works, a Connecticut
corporation (the “Borrower”) in connection with the negotiation, execution and delivery of that certain $550,000,000 Amended and Restated Credit Agreement, dated as of the date hereof, by and among the Borrower, the lenders party thereto
(the “Lenders”) and Citibank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) (the “Credit Agreement”). 
  
 This opinion is being delivered pursuant to Section 3.01(d) of the Credit Agreement. Capitalized terms used herein and
not expressly defined herein have the definitions specified in the Credit Agreement. 
  
 In addition to the Credit Agreement, we have examined originals, certified copies or copies otherwise identified as being true copies of the following: 
  

	 	(a)	the Restated Certificate of Incorporation of the Borrower, dated September 11, 1998, filed with the Connecticut Secretary of State’s office on September 15, 1998,
certified by the Secretary of the Borrower as of the date hereof, 

  

	 	(b)	the Bylaws of the Borrower as in effect as of the date hereof, as certified by the Secretary of the Borrower as of the date hereof; 

  

	 	(c)	the resolutions duly adopted at a meeting of the Board of Directors of the Borrower on October 25, 2005 authorizing, among other things, the execution, delivery and performance
by the Borrower of the Credit Agreement and the transactions contemplated thereby; 

  

	 	(d)	the Certificate of Legal Existence of the Borrower as of October 27, 2005 issued by the Connecticut Secretary of State; 

  

 F1-1 

	 	(e)	the Certificate of the General Counsel of the Borrower, dated as of the date hereof, a copy of which is attached hereto as Exhibit A (the “Borrower’s
Certificate”); 

  

	 	(f)	a copy of the Borrowers Annual Report on Form 10-K for the year ended January 1, 2004 (the “Form 10-K”) filed with the Securities and Exchange Commission;

  

	 	(g)	a copy of the Borrower’s Quarterly Report on Form 10-Q for the period ended October 1, 2005 filed with the Securities and Exchange Commission; and

  

	 	(h)	copies of the Borrower’s Current Reports on Form 8-K, dated as of August 22, 2005, September 16, 2005, October 14, 2005, October 25, 2005 and
November 7, 2005. 

  
 In addition, we have
examined originals or copies authenticated to our satisfaction of such corporate records, certificates of officers and other representatives of the Borrower and public officials, and other documents as we have deemed relevant or necessary in
connection with our opinions set forth herein. As to questions of fact material to such opinions we have relied upon the representations of the Borrower set forth in the Credit Agreement, certificates of officers and other representatives of the
Borrower and factual information we have obtained from such other sources as we have deemed reasonable. We have assumed without investigation that there has been no relevant change or development between the dates as of which the information cited
in the preceding sentence was given and the date of this letter. We have not independently verified the accuracy of the matters set forth in the written statements or certificates upon which we have relied, nor have we undertaken any lien, suit or
judgment searches or searches of court dockets in any jurisdiction. For purposes of the opinions in paragraph 1 we have relied exclusively upon certificates issued by governmental authorities in the relevant jurisdictions, and such opinion is not
intended to provide any conclusion or assurance beyond that conveyed by those certificates. 
  
 We have assumed: (i) the genuineness and authenticity of all documents examined by us and all signatures thereon, and the conformity to originals of all copies of all documents examined by us; (ii) that the
execution, delivery and/or acceptance of the Credit Agreement has been duly authorized by all action, corporate or otherwise, necessary by the parties to the Credit Agreement other than the Borrower (those parties other than the Borrower are
hereinafter collectively referred to as the “Other Parties”); (iii) the legal capacity of all natural persons executing the Credit Agreement; (iv) that each of the Other Parties has satisfied those legal requirements that
are applicable to it to the extent necessary to make the Credit Agreement enforceable against it; (v) that the Credit Agreement constitutes a valid and binding obligation of the Other Parties and is enforceable against the Other Parties in
accordance with its terms; (vi) that each of the Other Parties has complied with all legal requirements pertaining to its status as such status relates to its rights to enforce the Credit Agreement; (vii) that the Credit Agreement
accurately describes and contains the mutual understandings of the parties, and that there are no oral or written statements or agreements or usages of trade or courses of prior dealings among the parties that would modify, amend or vary any of the
terms of the Credit Agreement ; (viii) that the Other Parties will act in accordance with, and will refrain from taking any action that is forbidden by, the terms and conditions of the Credit Agreement; (ix) that the constitutionality or
validity of a relevant statute, rule, regulation or agency action is not in issue; (x) that all agreements other than the Credit Agreement with respect to which we have provided 
  

 F1-2 

 advice in our letter or reviewed in connection with our letter would be enforced as written; (xi) that there has not
been any mutual mistake of fact or misunderstanding, fraud, duress or undue influence; and (xii) that each of the Other Parties and any agent acting for it in connection with the Credit Agreement has acted without notice of any defense against
the enforcement of any rights created by, or adverse claim to any property transferred pursuant to, the Credit Agreement. 
  
 While we have not conducted any independent investigation to determine facts upon which our opinions are based or to obtain information about which this
letter advises you, we confirm that we do not have any actual knowledge which has caused us to conclude that our reliance and assumptions cited in the two preceding paragraphs are unwarranted or that any information supplied in this letter is
incorrect. 
  
 As used in this opinion with respect to any matter,
the qualifying phrases “to the best of our knowledge” and “our actual knowledge” and any similar phrase means the conscious awareness of facts or other information by: (i) the lawyer signing this opinion; and (ii) any
lawyer who has had active involvement in negotiating or preparing the Credit Agreement or preparing this opinion. In this regard, we have not made any special review or investigation in connection with rendering any opinion so qualified. 

 
 Based on the foregoing, and in reliance thereon, and subject to the
qualifications, limitations and exceptions stated herein, we are of the opinion, having due regard for such legal considerations as we deem relevant, that: 
  
 1. The Borrower is a corporation validly existing and in good standing under the laws of the State of Connecticut. 
  
 2. The execution, delivery and performance by the Borrower of the Credit
Agreement and the consummation of the transaction contemplated thereby are within the power and authority of the Borrower and have been duly authorized by all necessary proceedings under the organizational documents of the Borrower, and did not and
do not (i) violate or conflict with any provision of the organizational documents of the Borrower, (ii) violate or conflict with any law, rule or regulation of any governmental authority applicable to the Borrower, (iii) require the
Borrower to obtain any approval, consent or waiver of, or make any filing with, any governmental agency or body (other than approvals, consents or waivers already obtained or filings already made), (iv) require the consent or authorization of,
or approval by, or notice to, any party to any material contract or agreement of which we have knowledge to which the Borrower is a party, except for such consents, authorizations, approvals or notices that (assuming the power and authority of the
consenting entity and the authority and capacity of the person signing on its behalf) have been obtained or made, or (v) violate or conflict with any judgment, order or decree of which we have knowledge to which the Borrower is a party or by
which any of its assets or properties is bound. 
  
 3. The Credit
Agreement has been duly executed and delivered by the Borrower; and the Credit Agreement constitutes the legal, valid and binding obligations of the Borrower, enforceable against it in accordance with its terms. 
  

 F1-3 

 4. The Borrower is not (a) an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended, or (b) a “holding company”, or a “subsidiary company” of a
“holding company”, within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 Our opinions as herein expressed are subject to the following qualifications and limitations: 
  
 (1) Since we do not represent the Borrower on a regular basis, we have
assumed the accuracy of the description of the Borrower’s business set forth in the Form 10-K. 
  
 (2) Our opinions are subject to the effect of Federal and state bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent conveyance and
other laws relating to or affecting the rights of creditors generally (or affecting the rights of only creditors of specific types of debtors), with respect to which we express no opinion. 
  
 (3) Our opinions are subject to limitations imposed by general principles of
equity and public policy upon (i) the enforceability of any of the remedies, covenants or other provisions of the Credit Agreement, including, without limitation, any rights to contribution or indemnification, concepts of materiality, good
faith and fair dealing, and (ii) the availability of injunctive relief or other equitable remedies, and are subject to the application of principles of equity (regardless of whether enforcement is considered in proceedings at law or in equity).

  
 (4) Our opinions are subject to the effect of the rules of law
that: 
  

	 	a.	limit or affect the enforcement of provisions of a contract that purport to waive, or to require waiver of, (i) the obligations of good faith, fair dealing, diligence and
reasonableness, (ii) statutory or regulatory rights, except to the extent that the statute or regulation explicitly allows waivers; and (iii) unknown future defenses; 

  

	 	b.	provide that choice of law (unless the monetary thresholds set forth in the General Obligations Laws of the State of New York have been satisfied), forum selection and jury waiver
clauses in contracts are not necessarily binding; 

  

	 	c.	provide a time limitation after which a remedy may not be enforced; 

  

	 	d.	limit the enforceability of provisions releasing, exculpating or exempting a party from, or requiring indemnification of a party for, liability for its own action or inaction, to
the extent the action or inaction involves gross negligence, recklessness, willful misconduct, unlawful conduct, or violation of public policy; 

  

	 	e.	may, where less than all of a contract may be unenforceable, limit the enforceability of the balance of the contract to circumstances in which the unenforceable portion is not an
essential part of the agreed exchange; 

  

	 	f.	govern and afford judicial discretion regarding the determination of damages and entitlement to attorneys’ fees and other costs; 

  

 F1-4 

 (5) We express no opinion with respect to the enforceability of provisions for late charges. 

 
 (6) We express no opinion with respect to the enforceability of any
provisions in the Credit Agreement: (i) purporting to create or waive an agency or attorney-in-fact relationship; or (ii) prohibiting oral amendment or waiver or limiting the effect of a course of dealings between the parties. 

 
 (7) We express no opinion as to the laws of any jurisdiction other than
the corporate laws of the State of Connecticut, the laws of the State of New York and the federal laws of the United States of America. 
  
 This opinion is rendered on the date hereof, and we have no continuing obligation hereunder to inform you of changes of law or fact subsequent to the date
hereof or facts of which we have become aware after the date hereof. 
  
 This opinion is solely for your benefit and may not be furnished to, or relied upon by, any other person or entity without the express prior written consent of the undersigned. This opinion is limited to the matters set forth herein, and no
opinion may be inferred or implied beyond the matters expressly stated in this letter. 
  
 Very truly yours, 
  
  
 SONNENSCHEIN NATH & ROSENTHAL LLP 
  

 F1-5 

 BORROWER’S CERTIFICATE 
  
 I, Bruce H. Beatt, am the General Counsel of The Stanley Works (the “Borrower”). I understand that, pursuant to
Section 3.01(d) of that certain Amended and Restated Credit Agreement, dated as of the date hereof (the “Credit Agreement”), among the Borrower, the lenders party thereto (the “Lenders”) and Citibank, N.A., as administrative
agent for the Lenders, Sonnenschein Nath & Rosenthal LLP is relying upon this certificate and the statements made herein in rendering certain legal opinions. Capitalized terms used herein but not otherwise defined shall have the meaning set
forth in the Credit Agreement. 
  
 With regard to the foregoing,
on behalf of the Borrower, I certify that: 
  
 1. Based solely
and exclusively on conversations with Craig A. Douglas, Treasurer of the Borrower: 
  
 a. The value of all securities owned by the Borrower (excluding those by majority-owned Subsidiaries of the Borrower) does not exceed ten
percent (10%) of the value of the Borrower’s total assets; 
  
 b. Less than twenty-five percent (25%) of the assets of the Borrower on a consolidated basis and on an unconsolidated basis consist of the margin stock (as such term is defined in Regulation U of the Board of
Governors of the Federal Reserve System); and 
  
 c. The Borrower is primarily engaged, directly or through a wholly-owned Subsidiary or Subsidiaries, in a business of businesses other than that of investing, reinvesting, owning, holding or trading in securities and is not engaged and does
not propose to engage in the business of investing, reinvesting, owning, holding or trading in securities, and does not own or propose to acquire investment securities having a value exceeding forty percent (40%) of the value of the
Borrower’s total assets (exclusive of government securities and cash items) on an unconsolidated basis. 
  
 2. Based solely and exclusively on a certain Statement by Holding Company Claiming Exemption Under Rule U-3A-2 form the Provisions of the Public Utility
Holding Company Act of 1935 (the “Act”), filed by the Borrower with the United States Securities and Exchange Commission on February 27, 2004 (Accession Number 0000093556-04-000056), the Borrower is exempt from the provisions of the
Act. 
  
 3. Based solely and exclusively on interviews of the
officers of the Borrower responsible for its financing activities and the lawyers under my supervision, the execution, delivery and performance by the Borrower of any of its obligations under the Credit Agreement does not and will not require the
Borrower to obtain any approval, consent or waiver of, or make any filing with, any governmental agency or body (other than approvals, consents or waivers already obtained or filings already made), require the consent or authorization of, or
approval by, or notice to, any party to any material contract or agreement to which the Borrower is a party, except for such consents, authorizations, approvals or notices that (assuming the power and authority of the consenting entity and the
authority and capacity of the person signing on its behalf) have been obtained or made, or violate or conflict with any judgment, order or decree to which the Borrower is a party or by which any of its assets or properties is bound. 
  

 F1-6 

 In Witness Whereof, I have executed this certificate as of December     ,
2005. 
  

			
	By:	 	  

	Name:	 	Bruce H. Beatt
	Title:	 	Vice President, General Counsel and
	 	 	Secretary

  

 F1-7 

 EXHIBIT F-2 
  
 FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO 
 THE ADMINISTRATIVE AGENT 
  
 December 1, 2005

  
 To the Lenders that are parties to the

     Amended and Restated Credit Agreement referred 
     to below and Citibank, N.A., as Administrative 
     Agent for such Lenders (the “Administrative Agent”) 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to the Administrative Agent in
connection with the $550,000,000 Amended and Restated Credit Agreement dated as of December 1, 2005 (the “Credit Agreement”) between The Stanley Works, a Connecticut corporation (the “Company”), the financial
institutions referred to as “Lenders” in the Credit Agreement (the “Lenders”) and the Administrative Agent, amending and restating the $400,000,000 Credit Agreement dated as of October 14, 2004 (the “Existing
Credit Agreement”). Terms defined in the Credit Agreement have the same respective defined meanings when used herein. 
  
 In rendering the opinions expressed below, we have examined an executed counterpart of the Credit Agreement. In our examination, we have assumed the
genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with authentic original documents of all documents submitted to us as copies. When relevant facts were not independently established, we
have relied upon representations made in or pursuant to the Credit Agreement or in certificates delivered by or on behalf of the Company pursuant thereto. We have also assumed that the Credit Agreement has been duly authorized, executed and
delivered by, and (except, to the extent set forth below, as to the Company and the Designated Borrowers) constitutes a legal, valid, binding and enforceable obligation of, all of the parties thereto, that all signatories thereto have been duly
authorized and that all such parties are duly organized and validly existing and have the power and authority (corporate or other) to execute, deliver and perform the same, and that all authorizations, approvals or consents of (including without
limitation all foreign exchange control approvals), and all filings or registrations with, any governmental or regulatory authority or agency of any Designated Borrower’s jurisdiction of organization (including the central bank of any such
jurisdiction, if applicable) required for the making and performance by such Designated Borrower of the Credit Agreement shall have been obtained or made and shall be in effect at the time of any Borrowing by such Designated Borrower. 
  
 In addition, we have assumed that (i) all Persons that are, immediately
before the Effective Date, parties to the Existing Credit Agreement have executed and delivered the Credit Agreement, and (ii) notice by the Administrative Agent to the Company confirming the occurrence of the Effective Date is being given
contemporaneously with the delivery of this opinion. 
  

 F2-1 

 Based upon and subject to the foregoing and subject also to the comments and qualifications set forth
below, and having considered such questions of law as we have deemed necessary as a basis for the opinions expressed below, we are of the opinion that the Credit Agreement constitutes a legal, valid and binding obligation of the Company and each
Designated Borrower, enforceable against the Company and such Designated Borrower in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws
relating to or affecting the rights of creditors generally, and, with respect to the Designated Borrowers, to the possible judicial application of foreign laws or governmental action affecting the rights of creditors generally, and except as the
enforceability of the Credit Agreement is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including without limitation (i) the possible unavailability of
specific performance, injunctive relief or any other equitable remedy and (ii) concepts of materiality, reasonableness, good faith and fair dealing. 
  
 The foregoing opinions are also subject to the following comments and qualifications: 
  
 (A) The enforceability of provisions in the Credit Agreement to the effect that terms may not be waived or
modified except in writing may be limited under certain circumstances. 
  
 (B) The enforceability of Section 8.04(c) of the Credit Agreement may be limited by laws limiting the enforceability of provisions exculpating or exempting a party from, or requiring indemnification of a party
for, liability for its own action or inaction, to the extent the action or inaction involves gross negligence, recklessness, willful misconduct or unlawful conduct. 
  
 (C) We express no opinion as to (i) the effect of the laws of any jurisdiction in which any Lender is
located (other than New York) that limits the interest, fees or other charges it may impose for the loan or use of money or other credit, (ii) Section 2.09(b) of the Credit Agreement, (iii) the last sentence of Section 8.05 of
the Credit Agreement, (iv) Section 8.13(a) of the Credit Agreement insofar as such sentence relates to the subject-matter jurisdiction of the United States District Court for the Southern District of New York to adjudicate any
controversy related to the Credit Agreement, (iv) the waiver of inconvenient forum set forth in Section 8.13(c) of the Credit Agreement with respect to proceedings in the United States District Court for the Southern District of New York,
and (v) Section 8.14 of the Credit Agreement. 
  
 (D) We wish to point out with reference to obligations stated to be payable in a currency other than Dollars that (i) a New York statute provides that a judgment rendered by a court of the State of New York in
respect of an obligation denominated in such other currency would be rendered in such other currency and would be converted into Dollars at the rate of exchange prevailing on the date of entry of the judgment and (ii) a judgment rendered by a
Federal court sitting in the State of New York in respect of an obligation denominated in such other currency may be expressed in Dollars, but we express no opinion as to the rate of exchange such Federal court would apply. 
  

 F2-2 

 (E) We express no opinion as to the last paragraph of any Designation Letter delivered
pursuant to Section 2.14 of the Credit Agreement to the extent it relates to immunity acquired after the date of execution and delivery of such Designation Letter. 
  
 (F) Section 9.02(b) of the Credit Agreement may not be enforceable to the extent that the Guaranteed
Obligations as defined therein are materially modified. 
  
 The
foregoing opinions are limited to matters involving the Federal laws of the United States and the law of the State of New York, and we do not express any opinion as to the law of any other jurisdiction. Without limiting the foregoing, we do not hold
ourselves out as experts on, or purport to advise on, the laws of the jurisdiction of organization of any Designated Borrower 
  
 This opinion letter is provided to you by us as special New York counsel to the Administrative Agent pursuant to Section 3.01(d) of the Credit
Agreement and may not be relied upon by any other person or for any purpose other than in connection with the transactions contemplated by the Credit Agreement without our prior written consent in each instance. 
  
 Very truly yours, 
  
 WFC/RMG 
  

 F2-3 

 EXHIBIT G 
 ASSIGNMENT AND ACCEPTANCE 
  
 Reference is made to the Amended and Restated Credit Agreement dated as of December 1, 2005 (as amended or modified from time to time, the “Credit Agreement”) among The Stanley Works, a Connecticut corporation (the
“Company”), the Lenders (as defined in the Credit Agreement) and Citibank, N.A., as administrative agent for the Lenders (the “Administrative Agent”). Terms defined in the Credit Agreement are used herein with the
same meaning. 
  
 The “Assignor” and the
“Assignee” referred to on Schedule I hereto agree as follows: 
  
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under the Credit Agreement as
of the date hereof (other than in respect of Uncommitted Advances and Uncommitted Notes) equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit Agreement (other than in respect of
Uncommitted Advances and Uncommitted Notes). After giving effect to such sale and assignment, the Assignee’s Commitment and the amount of the Committed Advances owing to the Assignee will be as set forth on Schedule 1 hereto. 

 
 2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim; (ii) 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;
(iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Company or the performance or observance by the Company of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iv) attaches the Committed Note held by the Assignor and requests that the Administrative Agent exchange such Committed Note for a new Committed Note payable to the order of the
Assignee in an amount equal to the Commitment assumed by the Assignee pursuant hereto or new Committed Notes payable to the order of the Assignee in an amount equal to the Commitment assumed by the Assignee pursuant hereto and the Assignor in an
amount equal to the Commitment retained by the Assignor under the Credit Agreement, respectively, as specified on Schedule 1 hereto. 
  
 3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in
Section 4.01 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; (ii) agrees that it will, independently and without
reliance upon the Administrative Agent, 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; (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated to the Administrative Agent by the terms
thereof, together with such powers and discretion as are reasonably incidental 
  

 G-1 

 thereto; (iv) agrees that it will perform in accordance with their terms all of the obligations that by the terms of
the Credit Agreement are required to be performed by it as a Lender; (v) agrees, for the benefit of the Company, that it will be bound by the terms and provisions of the Credit Agreement to the same extent as if it were an original party
thereto; and (vi) attaches any U.S. Internal Revenue Service forms required under Section 8.09 of the Credit Agreement. 
  
 4. Following the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance and recording by the
Administrative Agent. The effective date for this Assignment and Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Administrative Agent, unless otherwise specified on Schedule 1 hereto. 

 
 5. Upon such acceptance and recording by the Administrative Agent, as of
the Effective Date, (i) 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 a Lender thereunder and (ii) 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 Administrative Agent, from and after the Effective Date, the Administrative Agent shall make all payments
under the Credit Agreement and the Committed Notes in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and facility fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement and the Committed Notes 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 law of the State of
New York. 
  
 8. This Assignment and Acceptance 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. Delivery
of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. 
  
 IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto duly authorized as of the date specified thereon. 
  

			
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 G-2 

 Schedule 1 
 to 
 Assignment and Acceptance 
  

				
	 Percentage interest assigned:
	  	 	                %
		
	 Assignee’s Commitment:
	  	$	                
		
	 Aggregate outstanding principal amount of Committed
	  	$	                
	 Advances assigned:
	  	 	 
		
	 Principal amount of Committed Note payable to Assignee:
	  	$	                
		
	 Principal amount of Committed Note payable to Assignor:
	  	$	                
		
	 Effective Date9 :
	  	 	                    ,200    

  

			
	 [NAME OF ASSIGNOR],

	 as Assignor

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 Dated:
                    , 200    

	
	 [NAME OF ASSIGNEE],

	 as Assignee

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 Dated:
                    , 200    

	6	This date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to the Agent. 

  

 G-3 

 Domestic Lending Office: 
 [Address] 
  
 Eurocurrency Lending
Office: 
 [Address] 
  
 Accepted this                      day 
 of                     , 200    

  

			
	
	 Citibank, N.A., as Administrative Agent

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 [Approved this              day of
                    , 200    

	
	 The Stanley Works

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 G-4 

 EXHIBIT H-1 
  
 PROMISSORY NOTE 
 (Committed Advances)

  

	 [$][€][£]             
	 Dated:                    

  
 FOR VALUE RECEIVED, the undersigned, [THE
STANLEY WORKS, a Connecticut corporation] [DESIGNATED BORROWER, a [            ] corporation] (the “Borrower”), HEREBY PROMISES TO PAY to the order of [NAME OF
LENDER] (the “Lender”) the principal sum of [$][€][£]             or, if less, the aggregate principal amount of all Committed Advances made by the
Lender to the Borrower pursuant to the Credit Agreement referred to below outstanding on the Termination Date, and such amount shall be paid on or prior to the Termination Date as provided in the Credit Agreement referred to below. 
  
 Capitalized terms used herein and not defined herein shall have the meanings
provided in the Credit Agreement referred to below. 
  
 The
Borrower promises to pay interest on the principal amount of each Committed 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 referred to below. 
  
 Both principal of and interest on
each Committed Advance are payable in the Currency in which such Advance was denominated to Citibank, N.A., as Administrative Agent, at the Administrative Agent’s Account in the Principal Financial Center for such Currency for the account of
the Lender, in same day funds. Each Committed Advance made by the Lender to the Borrower and the maturity thereof, and all payments made on account of the principal amount thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is a part of this Promissory Note, which recordation shall be conclusive and binding absent manifest error but the failure to make such recording shall not have any effect on the Lender’s rights
hereunder. 
  
 This Promissory Note is one of the Committed Notes
referred to in, and is entitled to the benefits of, the Amended and Restated Credit Agreement dated as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement), among [The Stanley Works/the
Borrower], certain Designated Borrowers (if any), the Lender and certain other lenders parties thereto, and Citibank, N.A., as Administrative Agent for the Lender and such other lenders. The Credit Agreement, among other things, (i) provides
for the making of Committed Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Dollar amount first above mentioned, the indebtedness of the Borrower resulting from each such
Committed 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. 
  

 H1-1 

			
	[THE STANLEY WORKS]
	[DESIGNATED BORROWER]
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 H1-2 

 EXHIBIT H-2 
  
 PROMISSORY NOTE 
 (Uncommitted Advances)

  

	 [$][€][£]            
	 Dated:                    

  
 FOR VALUE RECEIVED, the undersigned, [THE
STANLEY WORKS, a Connecticut corporation,] [DESIGNATED BORROWER, a [            ] corporation] (the “Borrower”), HEREBY PROMISES TO PAY to the order of [NAME OF
LENDER] (the “Lender”) the aggregate principal amount of all Uncommitted Advances made by the Lender to the Borrower pursuant to the Credit Agreement referred to below and such amount shall be paid in the amounts and on the dates
provided in the Credit Agreement referred to below. 
  
 Capitalized terms used herein and not defined herein shall have the meanings provided in the Credit Agreement referred to below. 
  
 The Borrower promises to pay interest on the principal amount of each Uncommitted 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 referred to below. 
  
 Both principal and interest are payable in the Currency in which such Advance was denominated to Citibank, N.A., as Administrative Agent, at the
Administrative Agent’s Account in the Principal Financial Center for such Currency for the account of the Lender, in same day funds. Each Uncommitted Advance made by the Lender to the Borrower and the maturity thereof, and all payments made on
account of the principal amount thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is a part of this Promissory Note, which recordation shall be conclusive and binding absent
manifest error but the failure to make such recording shall not have any effect on the Lender’s rights hereunder. 
  
 This Promissory Note is one of the Uncommitted Notes referred to in, and is entitled to the benefits of, the Amended and Restated Credit Agreement dated
as of December 1, 2005 (as amended, modified or supplemented from time to time, the “Credit Agreement”), among [The Stanley Works/the Borrower], certain Designated Borrowers (if any), the Lender and certain other lenders
parties thereto, and Citibank, N.A., as Administrative Agent for the Lender and such other Lenders. The Credit Agreement, among other things, (i) provides for the making of Uncommitted Advances by the Lender to the Borrower from time to time,
the indebtedness of the Borrower resulting from each such Uncommitted 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. 
  

 H2-1 

			
	 [THE STANLEY WORKS]

	 [DESIGNATED BORROWER]

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 H2-2 

 EXHIBIT I 
  
 FORM OF DESIGNATION LETTER 
  
 [Date] 
  
 To Citibank, N.A., 
   as Administrative Agent 
 Two Penn’s Way, Suite 200 
 New Castle, DE 19720 
  
 Attention: [            ] 
  
 Ladies and Gentlemen: 
  
 We make reference to the $550,000,000 Amended and Restated Credit Agreement
dated as of December 1, 2005 (the “Credit Agreement”) among The Stanley Works (the “Company”), certain Designated Borrowers (if any), the Lenders party thereto and Citibank, N.A., as Administrative Agent.
Terms defined in the Credit Agreement are used herein as defined therein. 
  
 The Company hereby designates [            ] (the “Designated Borrower”), a corporation duly incorporated under the laws of
[            ] and a Subsidiary, as a Company in accordance with Section 2.14 of the Credit Agreement. 
  
 The Designated Borrower hereby accepts the above designation and hereby expressly and unconditionally accepts all of the
obligations of a Borrower under the Credit Agreement, adheres to the Credit Agreement and agrees and confirms that, upon your execution and return to the Company of the enclosed copy of this letter, it shall be a Borrower for all purposes of the
Credit Agreement, joins in each of the waivers, appointments and submissions in Article VIII thereof, and will perform and comply with the terms and provisions of the Credit Agreement applicable to it as if it had originally executed the Credit
Agreement as a Borrower. The Designated Borrower hereby authorizes and empowers the Company to act as its representative and attorney-in-fact for the purposes of signing documents and giving and receiving notices (including notices of Borrowing
under the Credit Agreement) and other communications in connection with the Credit Agreement and the transactions contemplated thereby and for the purposes of modifying or amending any provision of the Credit Agreement and further agrees that the
Administrative Agent and each Lender may conclusively rely on the foregoing authorization. 
  
 The Designated Borrower represents and warrants to the Administrative Agent and each Lender the following: 
  

	 	(a)	Corporate Existence. The Designated Borrower is an entity duly organized and validly existing under the laws of its jurisdiction of formation. 

  

 I-1 

	 	(b)	Corporate Authorization, Etc. The performance of its obligations under the Credit Agreement and the execution, delivery and performance by the Designated Borrower of this
Designation Letter and any Note executed by the Designated Borrower are within the Designated Borrower’s corporate powers, have been duly authorized by all necessary corporate action and do not contravene (i) the Designated Borrower’s
charter documents of (ii) any law or contractual restriction binding on or affecting the Designated Borrower. 

  

	 	(c)	No Approvals. No authorization, approval or 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 the Designated Borrower’s of this Designation Letter and any Note executed by the Designated Borrower or the performance of its obligations under the Credit Agreement. 

  

	 	(d)	Enforceability. Each of the Credit Agreement and this Designation Letter is and, upon issuance and delivery thereof in accordance with the Credit Agreement, each Note
executed by the Designated Borrower will be the legal, valid and binding obligations of the Designated Borrower, enforceable against the Designated Borrower in accordance with their respective terms. 

  

	 	(e)	Investment Company. The Designated Borrower is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

  

	 	(f)	No Defaults. The Designated Borrower is not in default under or with respect to any agreement, instrument or undertaking to which it is a party or by which it or any of its
property is bound in any respect which could reasonably be expected to result in a Material Adverse Effect. 

  

	 	(g)	Use of Proceeds, Etc. All proceeds of each Advance made to the Designated Borrower will be used by it only in accordance with the provisions of Section 2.12 of the
Credit Agreement. It is not, nor will be, engaged in the business of extending credit for the purpose of buying or carrying Margin Stock and no proceeds of any Advance will be used by it to extend credit to others for the purpose of buying or
carrying any Margin Stock. Neither the making of any Advance to the Designated Borrower nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulations U or X issued by the Board of Governors of the Federal
Reserve System. 

  
 The Designated
Borrower agrees that the address set forth below its name at the shall be its “Address for Notices” for all purposes of the Credit Agreement (including Section 8.13 thereof). The Designated Borrower acknowledges its receipt of the
notice of each Lender, provided pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), set forth in Section 8.15 of the Credit Agreement. 
  

 I-2 

 To the extent that the Designated Borrower or any of its Property has or hereafter may acquire, in any
jurisdiction in which judicial proceedings may at any time be commenced with respect to the Credit Agreement or any other Loan Document, any immunity from jurisdiction, legal proceedings, attachment (whether before or after judgment), execution,
judgment or set-off, the Designated Borrower hereby irrevocably agrees not to claim and hereby irrevocably waives such immunity. 
  

			
	 THE STANLEY WORKS

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 [NAME OF DESIGNATED BORROWER]

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	 [                                      
  ]

	 [                                      
  ]

	 [                                      
  ]

	
	 Attention: [                            ]

	 Telecopier: [                            ]

	 Telephone: [                            ]

  

			
	 ACCEPTED AND AGREED:

	
	 CITIBANK, N.A.,

	   as Administrative Agent

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 I-3 

 EXHIBIT J 
  
 FORM OF TERMINATION LETTER 
  
 [Date] 
  
 To Citibank, N.A., 
     as Administrative Agent 
 Two Penn’s Way, Suite 200 
 New Castle, DE 19720 
  
 Attention: [                    ] 
  
 Ladies and Gentlemen: 
  
 We make reference to the $550,000,000 Amended and Restated Credit Agreement dated as of December 1, 2005 (the “Credit Agreement”)
among The Stanley Works (the “Company”), certain Designated Borrowers (if any), the Lenders party thereto and Citibank, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein as defined therein.

  
 The Company hereby terminates the status as a Designated
Borrower of [                    ], a corporation incorporated under the laws of
[                    ], in accordance with Section 2.14 of the Credit Agreement, effective as of the date of receipt of this notice by
the Administrative Agent. The undersigned hereby represents and warrants that all principal and interest on any Advance of the above-referenced Designated Borrower and all other amounts payable by such Designated Borrower pursuant to the Credit
Agreement have been paid in full on or prior to the date hereof. Notwithstanding the foregoing, this Termination Letter shall not affect any obligation which by the terms of the Credit Agreement survives termination thereof. 
  

			
	 THE STANLEY WORKS

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 J-1

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