Document:

EX-10.2

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 Exhibit 10.2 
 Execution Version 
 LETTER OF CREDIT AGREEMENT 

Dated as of June 14, 2013 by and among 
 DELIA*S, INC. 
 (as the Lead Applicant), 

THE OTHER APPLICANTS PARTY HERETO FROM TIME TO TIME, 
 and GENERAL ELECTRIC CAPITAL CORPORATION 

**************************************** 

Table of Contents

 TABLE OF CONTENTS 

 

							
	 ARTICLE I. THE CREDITS
	  	 	1	  
		
	 1.1    The Letter of Credit Facility
	  	 	1	  
	 1.2    Transaction Accounts
	  	 	3	  
	 1.3    Fees and Interest
	  	 	5	  
	 1.4    Payments by the Applicants
	  	 	6	  
	 1.5    Lead Applicant
	  	 	7	  
		
	 ARTICLE II. CONDITIONS PRECEDENT
	  	 	8	  
		
	 2.1    Conditions of Initial Issuance
	  	 	8	  
	 2.2    Conditions to the Issuance of each Letter of Credit
	  	 	9	  
		
	 ARTICLE III. REPRESENTATIONS AND WARRANTIES
	  	 	9	  
		
	 3.1    Corporate Existence and Power
	  	 	10	  
	 3.2    Corporate Authorization; No Contravention
	  	 	10	  
	 3.3    Governmental Authorization
	  	 	10	  
	 3.4    Binding Effect
	  	 	11	  
	 3.5    Litigation
	  	 	11	  
	 3.6    No Default
	  	 	11	  
	 3.7    Solvency
	  	 	12	  
	 3.8    Ventures, Subsidiaries and Affiliates; Outstanding Stock
	  	 	12	  
	 3.9    Jurisdiction of Organization; Chief Executive Office
	  	 	12	  
	 3.10 Foreign Assets Control Regulations and Anti-Money Laundering
	  	 	12	  
	 3.11 Patriot Act
	  	 	13	  
	 3.12 ERISA Compliance
	  	 	13	  
	 3.13 Margin Regulations
	  	 	13	  
	 3.14 Taxes
	  	 	14	  
	 3.15 Regulated Entities.
	  	 	14	  
	 3.16 Brokers’ Fees; Transaction Fees
	  	 	14	  
		
	 ARTICLE IV. AFFIRMATIVE COVENANTS
	  	 	14	  
		
	 4.1    Financial Statements
	  	 	14	  
	 4.2    Certificates; Other Information
	  	 	16	  
	 4.3    Notices
	  	 	17	  
	 4.4    Preservation of Corporate Existence, Etc.
	  	 	18	  
	 4.5    Payment of Obligations
	  	 	18	  
	 4.6    Compliance with Laws
	  	 	19	  
	 4.7    Use of the L/C Facility
	  	 	19	  
	 4.8    The Cash Collateral Account
	  	 	19	  
	 4.9    Further Assurances
	  	 	20	  

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	 ARTICLE V. NEGATIVE COVENANTS
	  	 	20	  
		
	 5.1    Consolidations and Mergers
	  	 	20	  
	 5.2    Change in Business
	  	 	21	  
	 5.3    Change in Structure
	  	 	21	  
	 5.4    Changes in Accounting, Name or Jurisdiction of Organization
	  	 	21	  
	 5.5    OFAC; Patriot Act
	  	 	21	  
	 5.6    Margin Stock; Use of Proceeds
	  	 	21	  
	 5.7    Compliance with ERISA
	  	 	21	  
		
	 ARTICLE VI. EVENTS OF DEFAULT
	  	 	22	  
		
	 6.1    Events of Default
	  	 	22	  
	 6.2    Remedies
	  	 	24	  
	 6.3    Rights Not Exclusive
	  	 	24	  
	 6.4    Cash Collateral Account
	  	 	24	  
		
	 ARTICLE VII. MISCELLANEOUS
	  	 	25	  
		
	 7.1    Amendments and Waivers
	  	 	25	  
	 7.2    Notices
	  	 	25	  
	 7.3    Electronic Transmissions
	  	 	26	  
	 7.4    No Waiver; Cumulative Remedies
	  	 	27	  
	 7.5    Costs and Expenses
	  	 	27	  
	 7.6    Indemnity
	  	 	28	  
	 7.7    Marshaling; Payments Set Aside
	  	 	28	  
	 7.8    Successors and Assigns
	  	 	29	  
	 7.9    Assignments and Participations; Binding Effect
	  	 	29	  
	 7.10 Non-Public Information; Confidentiality
	  	 	30	  
	 7.11 Set-off; Sharing of Payments
	  	 	31	  
	 7.12 Counterparts; Facsimile Signature
	  	 	32	  
	 7.13 Severability
	  	 	32	  
	 7.14 Captions
	  	 	32	  
	 7.15 Independence of Provisions
	  	 	32	  
	 7.16 Interpretation
	  	 	32	  
	 7.17 No Third Parties Benefited
	  	 	33	  
	 7.18 Governing Law and Jurisdiction
	  	 	33	  
	 7.19 Waiver of Jury Trial
	  	 	34	  
	 7.20 Entire Agreement; Release; Survival
	  	 	34	  
	 7.21 Patriot Act
	  	 	35	  
	 7.22 Joint and Several
	  	 	35	  
	 7.23 Creditor-Debtor Relationship
	  	 	35	  
		
	 ARTICLE VIII. TAXES, YIELD PROTECTION AND ILLEGALITY
	  	 	36	  
		
	 8.1    Taxes
	  	 	36	  
	 8.2    Increased Costs and Reduction of Return
	  	 	39	  
	 8.3    Certificates of Claimants
	  	 	40	  

  
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	 ARTICLE IX. DEFINITIONS
	  	 	40	  
		
	 9.1    Defined Terms
	  	 	40	  
	 9.2    Other Interpretive Provisions
	  	 	53	  
	 9.3    Accounting Terms and Principles
	  	 	54	  
	 9.4    Payments
	  	 	54	  

  
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 SCHEDULES 

 

			
	 Schedule A
	  	Applicants
	 Schedule B
	  	GECB Letters of Credit
	 Schedule C
	  	Inactive Subsidiaries
	 Schedule D
	  	Rollover Letters of Credit
	 Schedule 3.5
	  	Litigation
	 Schedule 3.8
	  	Ventures, Subsidiaries and Affiliates; Outstanding Stock
	 Schedule 3.9
	  	Jurisdiction of Organization; Chief Executive Office
	 Schedule 3.14
	  	Closing Date Tax Audits/Examinations

 EXHIBITS 
  

			
	 Exhibit 1.1(a)
	  	Form of L/C Request
	 Exhibit 2.1
	  	Closing Checklist
	 Exhibit 4.2(b)
	  	Form of Compliance Certificate
	 Exhibit 9.1
	  	Form of Assignment

  
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 LETTER OF CREDIT AGREEMENT 

This LETTER OF CREDIT AGREEMENT (including all exhibits and schedules hereto, as the same may be amended, modified and/or restated
from time to time, this “Agreement”) is entered into as of June 14, 2013, by and among DELIA*S, INC., a Delaware corporation (the “Parent”), in its capacities as an Applicant and as the Lead Applicant,
each of the other Persons identified on Schedule A as Applicants (together with the Parent, referred to herein collectively as the “Applicants” and each, individually, an “Applicant”), and GENERAL ELECTRIC
CAPITAL CORPORATION, a Delaware corporation (“GE Capital”). 
 W I T N E S S E T H: 

WHEREAS, the Applicants have requested, and the L/C Issuers have agreed to make available to the Applicants, Letters of Credit
upon and subject to the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of
the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows: 
 ARTICLE I.

 THE CREDITS 
 1.1 The Letter of Credit Facility. 
 (a) Letters of Credit. Subject
to the terms and conditions of this Agreement, GE Capital hereby establishes a letter of credit facility (the “L/C Facility”) in the Applicants’ favor pursuant to which GE Capital shall cause Letters of Credit for the account
of one or more of the Applicants to be Issued as provided herein. 
 (i) Conditions. On the terms and subject to the
conditions contained herein, the Lead Applicant may request that one or more L/C Issuers Issue, in accordance with such L/C Issuers’ usual and customary business practices and for the account of the Applicants and in accordance with this
Agreement, Letters of Credit (denominated in Dollars) from time to time on any Business Day during the period from the Closing Date through the date that is seven (7) days prior to the Maturity Date; provided, however, that no L/C
Issuer shall Issue any Letter of Credit upon the occurrence of any of the following or, if after giving effect to such Issuance: 
 (A)(i) the Letter of Credit Obligations for all Letters of Credit would exceed the Credit Limit or (ii) the aggregate funds on deposit in the Cash Collateral Account would be less than 105% of all
Letter of Credit Obligations; 
 (B) the expiration date of such Letter of Credit (i) is not a Business
Day, (ii) is more than one year after the date of Issuance thereof or (iii)

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is later than seven (7) days prior to the Maturity Date; provided, however, that any Letter of Credit with a term not exceeding one year may provide for its renewal for
additional periods not exceeding one year as long as (x) each of the Applicants and the applicable L/C Issuer have the option to prevent such renewal before the expiration of such term or any such period and (y) neither such L/C Issuer nor
any Applicant shall permit any such renewal to extend such expiration date beyond the date set forth in clause (iii) above; or 
 (C)(i) any fee due under subsection 1.3(c) in connection with, and on or prior to, such Issuance has not been paid, (ii) such Letter of Credit is requested to be Issued in a form that is not
acceptable to such L/C Issuer or (iii) such L/C Issuer shall not have received, each in form and substance reasonably acceptable to it and duly executed by the Applicants or the Lead Applicant on their behalf, the documents that such L/C Issuer
generally uses in the Ordinary Course of Business for the Issuance of letters of credit of the type of such Letter of Credit (collectively, the “L/C Reimbursement Agreement”). 

In the event that any term contained in the L/C Reimbursement Agreement shall be contrary to any term contained in this Agreement, this Agreement shall
control and govern and such contrary provision shall be given no force or effect. Furthermore, GE Capital as an L/C Issuer may elect only to Issue Letters of Credit in its own name and may only Issue Letters of Credit to the extent permitted by
Requirements of Law, and such Letters of Credit may not be accepted by certain beneficiaries such as insurance companies. For each Issuance, the applicable L/C Issuer may, but shall not be required to, determine that, or take notice whether, the
conditions precedent set forth in Section 2.2 have been satisfied or waived in connection with the Issuance of any Letter of Credit. 
 (ii) Notice of Issuance. The Lead Applicant shall give the applicable L/C Issuer a notice of any requested Issuance of any Letter of Credit, which shall be effective only if received by such L/C
Issuer not later than 2:00 p.m. (New York time) on the third Business Day prior to the date of such requested Issuance. Such notice shall be made in a writing or Electronic Transmission substantially in the form of Exhibit 1.1(a) duly
completed or in a writing in any other form acceptable to such L/C Issuer (an “L/C Request”). 
 (iii)
Reimbursement Obligations of the Applicants. Applicants jointly and severally agree to pay to the L/C Issuer of any Letter of Credit, or to GE Capital for the benefit of such L/C Issuer, upon demand the L/C Reimbursement Obligation owing with
respect to such Letter of Credit in the event such L/C Issuer makes any payment to the beneficiary of such Letter of Credit. Upon the payment by the applicable L/C Issuer to the beneficiary of any Letter of Credit, such L/C Issuer shall notify the
Lead Applicant that such payment has been made under such Letter of Credit and that the L/C Reimbursement Obligation owing with respect to such Letter of Credit is then due and owing; provided, however, that any failure to give or
delay in giving such notice shall not relieve the Applicants of their L/C Reimbursement Obligation in respect of such Letter of Credit. The Applicants agree that at any time on or after the date upon

  
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which any L/C Reimbursement Obligation arises or any other Obligation becomes due and owing GE Capital shall have the right, without prior notice to or demand upon any of the Applicants, to
withdraw funds or Cash Equivalents from the Cash Collateral Account in the amount of such L/C Reimbursement Obligation or other Obligation and apply such funds or Cash Equivalents to pay such L/C Reimbursement Obligation or other Obligation.

 (iv) Obligations Absolute. The obligations of the Applicants pursuant to clause (iii) above shall be
absolute, unconditional and irrevocable and performed strictly in accordance with the terms of this Agreement irrespective of (A) (i) the invalidity or unenforceability of any term or provision in any Letter of Credit, any document
transferring or purporting to transfer a Letter of Credit, any Credit Document (including the sufficiency of any such instrument), or any modification to any provision of any of the foregoing, (ii) any document presented under a Letter of
Credit being forged, fraudulent, invalid, insufficient or inaccurate in any respect or failing to comply with the terms of such Letter of Credit or (iii) any loss or delay, including in the transmission of any document, (B) the existence
of any setoff, claim, abatement, recoupment, defense or other right that any Person (including any Applicant) may have against the beneficiary of any Letter of Credit or any other Person, whether in connection with any Credit Document or any other
Contractual Obligation or transaction, or the existence of any other withholding, abatement or reduction, (C) in the case of the obligations of the L/C Issuer, (i) the failure of any condition precedent set forth in Section 2.2
to be satisfied or (ii) any adverse change in the condition (financial or otherwise) of any Applicant and (D) any other act or omission to act or delay of any kind of the L/C Issuer or any other Person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this clause (iv), constitute a legal or equitable discharge of any obligation of the Applicants or the L/C Issuer hereunder. No provision hereof
shall be deemed to waive or limit the Applicants’ right to seek repayment of any payment of any L/C Reimbursement Obligations from the L/C Issuer under the terms of the applicable L/C Reimbursement Agreement or applicable law. 

(v) Rollover Letters of Credit. Each of the Rollover Letters of Credit shall be deemed to have been Issued under this Agreement
and shall be considered a Letter of Credit for all purposes under this Agreement and the other Credit Documents in accordance with the terms of the Transfer of Liability for Letters of Credit. 

1.2 Transaction Accounts. 
 (a) GE Capital shall record on its books and records the face amount of each Letter of Credit Issued hereunder, any unpaid L/C Reimbursement Obligation, all interest accrued and unpaid thereon and any
fees, costs, expenses or other Obligations that have accrued and/or become payable pursuant to this Agreement. GE Capital shall deliver to the Lead Applicant on a monthly basis a statement setting forth such record for

  
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the immediately preceding calendar month. Such record shall, absent manifest error, be conclusive evidence of the amount of the L/C Reimbursement Obligations and other Obligations of the
Applicants. Any failure to so record or any error in doing so, or any failure to deliver such statement shall not, however, limit or otherwise affect the L/C Reimbursement Obligations or the other Obligations of the Applicants or provide the basis
for any claim against GE Capital. 
 (b) GE Capital, acting as a non-fiduciary agent of the Applicants solely for tax purposes
and solely with respect to the actions described in this subsection 1.2(b), shall establish and maintain at its address referred to in Section 7.2 (or at such other address as GE Capital may notify the Lead Applicant) (A) a
record of ownership (the “Register”) in which GE Capital agrees to register by book entry the interests (including any rights to receive payment hereunder) of GE Capital and each L/C Issuer in the L/C Reimbursement Obligations and
the Letter of Credit Obligations, each of their obligations under this Agreement to participate in each Letter of Credit, the Letter of Credit Obligations and the L/C Reimbursement Obligations, and any assignment of any such interest, obligation or
right and (B) accounts in the Register in accordance with its usual practice in which it shall record (1) the name and address of each L/C Issuer (and each change thereto pursuant to Section 7.9), (2) the amount of the L/C
Reimbursement Obligations due and payable or paid in respect of Letters of Credit and (3) any other payment received by GE Capital from an Applicant and its application to the Obligations. 

(c) Notwithstanding anything to the contrary contained in this Agreement, the L/C Reimbursement Obligations are registered obligations,
the right, title and interest of each L/C Issuer and its assignees in and to such L/C Reimbursement Obligations shall be transferable only upon notation of such transfer in the Register and no assignment thereof shall be effective until recorded
therein and otherwise shall be in accordance with the terms of this Agreement. This Section 1.2 and Section 7.9 shall be construed so that the L/C Reimbursement Obligations are at all times maintained in “registered
form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code. 
 (d) The Applicants, GE Capital, and
the L/C Issuers shall treat each Person whose name is recorded in the Register as an L/C Issuer for all purposes of this Agreement. Information contained in the Register with respect to any L/C Issuer shall be available for access by the Applicants,
the Lead Applicant, GE Capital and such L/C Issuer during normal business hours and from time to time upon at least one Business Day’s prior notice. No L/C Issuer shall, in such capacity, have access to or be otherwise permitted to review
any information in the Register other than information with respect to such L/C Issuer unless otherwise agreed by GE Capital. 

  
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 1.3 Fees and Interest. 

(a) Fees. The Applicants shall pay to GE Capital, for its own account, fees in the amounts and at the times set forth in the Fee
Letter. 
 (b) Unused L/C Facility Fee. The Applicants shall pay to GE Capital a fee (the “Unused L/C Facility
Fee”) for the account of GE Capital in an amount equal to: 
 (i) The average daily amount of the Credit Limit during
the preceding calendar month, less 
 (ii) the average daily aggregate outstanding amount of the Letter of Credit Obligations
incurred by GE Capital during the preceding calendar month; provided, in no event shall the amount computed pursuant to clauses (i) and (ii) be less than zero, 

(iii) multiplied by three-eighths of one percent (0.375%) per annum. 
 Such fee shall be payable monthly in arrears on the first day of the calendar month following the date hereof and the first day of each calendar month thereafter as well as on the Maturity Date. The
Unused L/C Facility Fee provided in this subsection 1.3(b) shall accrue at all times from and after the execution and delivery of this Agreement. 
 (c) Letter of Credit Fee. The Applicants agree to pay to GE Capital, as compensation to GE Capital for Letter of Credit Obligations incurred by GE Capital hereunder, (i) without duplication of
costs and expenses otherwise payable to GE Capital hereunder or fees otherwise paid by the Applicants, all reasonable costs and expenses, excluding all Taxes and Excluded Taxes, incurred by GE Capital on account of such Letter of Credit Obligations,
and (ii) for each calendar month during which any Letter of Credit Obligation shall remain outstanding, a fee (the “Letter of Credit Fee”) in an amount equal to the product of the average daily undrawn face amount of all
Letters of Credit Issued, guaranteed or supported by risk participation agreements multiplied by a per annum rate equal to one and three-quarters of one percent (1.75%); provided, however, at GE Capital’s option, while an Event of
Default exists (or automatically while an Event of Default under subsection 7.1(a), 7.1(f) or 7.1(g) exists), such rate shall be increased by two percent (2.00%) per annum. Such fee shall be paid to GE Capital in arrears on
the first day of each calendar month and on the date on which all L/C Reimbursement Obligations have been discharged. In addition, the Applicants shall pay to GE Capital or any other L/C Issuer, as appropriate, on demand, GE Capital’s or such
other L/C Issuer’s customary fees at then prevailing rates, without duplication of fees otherwise payable hereunder (including all per annum fees), charges and expenses of GE Capital or such other L/C Issuer in respect of the application for,
and the Issuance, negotiation, acceptance, amendment, transfer and payment of, each Letter of Credit or otherwise payable pursuant to the application and related documentation under which such Letter of Credit is Issued. 

  
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 (d) Interest. Notwithstanding anything to the contrary contained herein, in the event
that any L/C Reimbursement Obligations or other Obligations are not paid when due, such L/C Reimbursement Obligations or other Obligations shall bear interest computed from the applicable due date until payment in full at a per annum interest rate
equal to the Base Rate plus one and three-quarters of one percent (1.75%) per annum and such interest shall be payable by the Applicants to GE Capital upon demand. 
 (e) Maximum Lawful Rate. Anything herein to the contrary notwithstanding, the obligations of the Applicants hereunder shall be subject to the limitation that payments of interest shall not be
required, for any period for which interest is computed hereunder, to the extent (but only to the extent) that contracting for or receiving such payment by GE Capital would be contrary to the provisions of any law applicable to GE Capital limiting
the highest rate of interest which may be lawfully contracted for, charged or received by GE Capital, and in such event the Applicants shall pay GE Capital interest at the highest rate permitted by applicable law (“Maximum Lawful
Rate”); provided, however, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Applicants shall continue to pay interest hereunder at the Maximum Lawful Rate until
such time as the total interest received by GE Capital is equal to the total interest that would have been received had the interest payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Closing Date as
otherwise provided in this Agreement. 
 1.4 Payments by the Applicants. 

(a) All payments to be made by the Applicants on account of any L/C Reimbursement Obligations or any interest, fees and other amounts
required to be paid hereunder shall be made without set-off, recoupment, counterclaim or deduction of any kind, shall, except as otherwise expressly provided herein, be made to GE Capital (for the ratable account of the Persons entitled thereto) at
the address for payment specified in the signature page hereof in relation to GE Capital (or such other address as GE Capital may from time to time specify in accordance with Section 7.2), including payments utilizing the ACH system, and
shall be made in Dollars and by wire transfer or ACH transfer in immediately available funds (which shall be the exclusive means of payment hereunder), no later than 1:00 p.m. (New York time) on the date due. Any payment which is received by GE
Capital later than 1:00 p.m. (New York time) may in GE Capital’s discretion be deemed to have been received on the immediately succeeding Business Day and any applicable interest or fee shall continue to accrue. Each Applicant hereby
irrevocably waives the right to direct the application during the continuance of an Event of Default of any and all payments in respect of any Obligation and any proceeds of the Cash Collateral Account during such pendency. 

  
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 (b) If any payment hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of interest or fees, as the case may be. 

(c) During the continuance of an Event of Default, GE Capital may apply any and all payments received by it in respect of any Obligation
in accordance with clauses first through sixth below. Notwithstanding any provision herein to the contrary, all payments made by the Applicants to GE Capital after any or all of the Obligations have been accelerated (so long as such acceleration has
not been rescinded), including proceeds of the Cash Collateral Account, shall be applied as follows: 

first, to payment of costs and expenses, including Attorney Costs, of GE Capital payable or reimbursable by the
Applicants under the Credit Documents; 
 second, to payment of Attorney Costs of the L/C Issuers payable
or reimbursable by the Applicants under this Agreement; 
 third, to payment of all accrued unpaid
interest on the Obligations and fees owed to GE Capital and the L/C Issuers; 
 fourth, to payment of
principal of the Obligations, including L/C Reimbursement Obligations then due and payable, and cash collateralization of unmatured L/C Reimbursement Obligations to the extent not then due and payable; 

fifth, to payment of any other amounts owing constituting Obligations; and 

sixth, unless otherwise required by law, be paid to the Applicants in account number XXXXX2090 maintained by the
Lead Applicant with JPMorgan Chase, N.A. 
 In carrying out the foregoing, (i) amounts received shall be applied in the
numerical order provided above until exhausted prior to the application to the next succeeding category and (ii) each of the L/C Issuers or other Persons entitled to payment shall receive an amount equal to its pro rata share of amounts
available to be applied pursuant to clauses third, fourth and fifth above. 
 1.5 Lead Applicant. Each Applicant hereby
designates and appoints the Parent as its representative and agent on its behalf (the “Lead Applicant”) for the purposes of L/C Requests, delivering certificates, giving and receiving all other notices and consents hereunder or
under any of the other Credit Documents and taking all other actions (including in respect of compliance with covenants) on behalf of any Applicant or the Applicants under the Credit Documents. The Lead Applicant hereby accepts such appointment. GE
Capital 

  
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and each other L/C Issuer may regard any notice or other communication pursuant to any Credit Document from the Lead Applicant as a notice or communication from all the Applicants. Each warranty,
covenant, agreement and undertaking made on behalf of an Applicant by the Lead Applicant shall be deemed for all purposes to have been made by such Applicant and shall be binding upon and enforceable against such Applicant to the same extent as if
the same had been made directly by such Applicant. 
 ARTICLE II. 

CONDITIONS PRECEDENT 
 2.1 Conditions of Initial Issuance. The obligation of GE Capital to cause any L/C Issuer to Issue the initial Letters of Credit hereunder (including the deemed Issuance of the Rollover Letters of
Credit) is subject to satisfaction of the following conditions in a manner satisfactory to GE Capital: 
 (a) Credit
Documents. GE Capital shall have received on or before the Closing Date all of the agreements, documents, instruments and other items set forth on the closing checklist attached hereto as Exhibit 2.1, each in form and substance reasonably
satisfactory to GE Capital; 
 (b) Repayment of Prior Lender Obligations; Satisfaction of Outstanding L/Cs. (i) GE
Capital shall have received a fully executed pay-off letter reasonably satisfactory to GE Capital confirming that all Prior Indebtedness owing by any Applicant to the Prior Lender will be repaid in full on the Closing Date and that the Rollover
Letters of Credit shall not be cancelled on the Closing Date but shall remain in full force and effect and shall be deemed to have been Issued under this Agreement in accordance with the terms of the Transfer of Liability for Letters of Credit;
(ii) GECB Letters of Credit shall have been cash collateralized in accordance with the terms of such pay-off letter; and (iii) all commitments of the Prior Lender to extend credit under the Prior Credit Agreement shall have been terminated
in accordance with the terms of such pay-off letter; 
 (c) Cash Collateral Account. The Applicants shall have deposited
immediately available funds in the amount of $10,321,150.27 into the Cash Collateral Account; 
 (d) Approvals. GE
Capital shall have received reasonably satisfactory evidence that the Applicants have obtained all consents and approvals of all Persons including all requisite Governmental Authorities, required to the execution, delivery and performance of this
Agreement and the other Credit Documents; 
 (e) Due Diligence. GE Capital shall have completed its business and legal
due diligence with respect to each Applicant (including satisfactory review of all material contracts and all pending or threatened litigation or proceedings in any court or before any arbitrator or Governmental Authority and background checks on
the Applicants and each of their respective management, Subsidiaries and Affiliates) and the results thereof shall be acceptable to GE Capital in its reasonable discretion; and 

  
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 (f) Payment of Fees. The Applicants shall have paid the fees required to be paid on
the Closing Date in the respective amounts specified in Section 1.3 (including the fees specified in the Fee Letter), and shall have reimbursed GE Capital for all fees, costs and expenses of closing presented as of the Closing Date to
the extent required by this Agreement. 
 2.2 Conditions to the Issuance of each Letter of Credit. Except as otherwise
expressly provided herein, GE Capital shall not be obligated to Issue or cause the Issuance of any Letter of Credit if as of the date of such Issue or Issuance and after giving effect thereto: 

(a) any representation or warranty by any Applicant contained herein or in any other Credit Document is untrue or incorrect in any
material respect (without duplication of any materiality qualifier contained therein) as of such date, except to the extent that such representation or warranty expressly relates to an earlier date (in which event such representations and warranties
were untrue or incorrect in any material respect (without duplication of any materiality qualifier contained therein) as of such earlier date), and GE Capital has determined not to Issue or cause the Issuance of such Letter of Credit as a result of
the fact that such warranty or representation is untrue or incorrect as of such date; 
 (b) any Default or Event of Default has
occurred and is continuing or would reasonably be expected to result after giving effect to the Issuance of such Letter of Credit, and GE Capital shall have determined not to Issue or cause the Issuance of such Letter of Credit as a result of that
Default or Event of Default; or 
 (c) the Applicants have not deposited immediately available funds into the Cash Collateral
Account in an amount equal to 105% of the face amount of such Letter of Credit. 
 The request by Lead Applicant and acceptance by the
Applicants of the Issuance of any Letter of Credit shall be deemed to constitute, as of the date thereof, (i) a representation and warranty by the Applicants that the conditions in this Section 2.2 have been satisfied and
(ii) a reaffirmation by each Applicant of the granting and continuance of GE Capital’s Lien in the Cash Collateral. 

ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES 
 The Applicants, jointly and severally,
represent and warrant to GE Capital and each L/C Issuer that the following are, as of the Closing Date, and after giving effect to the Issuance (or deemed Issuance) of each Letter of Credit will be, true, correct and complete: 

  
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 3.1 Corporate Existence and Power. Each Applicant and each of their respective
Subsidiaries: 
 (a) is a corporation or limited liability company, as applicable, duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, organization or formation, as applicable; 
 (b) has the power
and authority and all governmental licenses, authorizations, permits, registrations, certificates, consents and approvals required to own its assets, carry on its business and execute, deliver, and perform its obligations under the Credit Documents;

 (c) is duly qualified as a foreign corporation, limited liability company or limited partnership, as applicable, and licensed
and in good standing, under the laws of each jurisdiction where its ownership, lease or operation of Property or the conduct of its business requires such qualification or license; and 

(d) is in compliance with all Requirements of Law; 
 except, in each case referred to in clause (c) or clause (d), to the extent that the failure to do so would not reasonably be expected to have, either individually or in the aggregate,
a Material Adverse Effect. 
 3.2 Corporate Authorization; No Contravention. The execution, delivery and performance by
each of the Applicants of this Agreement, and by each Applicant of any other Credit Document to which such Person is party, are within such Applicant’s corporate and similar powers and, at the time of execution thereof, have been duly
authorized by all necessary action, and do not and will not: 
 (a) contravene the terms of any of that Person’s
Organization Documents; 
 (b) conflict with or result in any material breach or contravention of any document evidencing any
material Contractual Obligation to which such Person is a party or any order, injunction, writ or decree of any Governmental Authority to which such Person or its Property is subject; or 

(c) violate any Requirement of Law in any material respect. 
 3.3 Governmental Authorization. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection
with the execution, delivery or performance by, or enforcement against, any Applicant of this Agreement or any other Credit Document except for those obtained or made on or prior to the Closing Date. 

  
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 3.4 Binding Effect. This Agreement and each other Credit Document to which any
Applicant is a party constitute the legal, valid and binding obligations of each such Person which is a party thereto, enforceable against such Person in accordance with their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability. 
 3.5 Litigation Except as specifically disclosed in Schedule 3.5, there are no actions, suits, proceedings, claims or disputes pending, or to the knowledge of each Applicant, threatened or
contemplated, at law, in equity, in arbitration or before any Governmental Authority, against any Applicant, any Subsidiary of any Applicant or any of their respective Properties which: 

(a) purport to affect or pertain to this Agreement, any other Credit Document, or any of the transactions contemplated hereby or thereby;
or 
 (b) would reasonably be expected to result in equitable relief or monetary judgment(s), individually or in the aggregate,
in excess of $500,000. 
 No injunction, writ, temporary restraining order or any order of any nature has been issued by any court or other
Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement, any other Credit Document, or directing that the transactions provided for herein or therein not be consummated as herein or therein
provided. As of the Closing Date, no Applicant or any Subsidiary of any Applicant is the subject of an audit or, to each Applicant’s knowledge, any review or investigation by any Governmental Authority (excluding the IRS and other taxing
authorities) concerning the violation or possible violation of any Requirement of Law. 
 3.6 No Default. No Default or
Event of Default exists or would result from the Issuance (or deemed Issuance) of any Letter of Credit or incurring of any Obligations by any Applicant or the grant or perfection of GE Capital’s Liens on the Cash Collateral. No Applicant and no
Subsidiary of any Applicant is in default under or with respect to any Contractual Obligation in any respect which, individually or together with all such defaults, would reasonably be expected to have a Material Adverse Effect. 

  
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 3.7 Solvency. 

Both before and after giving effect to (a) the Letters of Credit Issued (or deemed Issued) on or prior to the date this representation and
warranty is made or remade and (b) the payment and accrual of all fees and other transaction costs in connection with the foregoing, all the Applicants taken as a whole and each Applicant individually are Solvent. 

3.8 Ventures, Subsidiaries and Affiliates; Outstanding Stock. Except as set forth in Schedule 3.8, as of the Closing Date,
no Applicant and no Subsidiary of any Applicant has any Subsidiaries, is engaged in any joint venture or partnership with any other Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Applicant (other than
Parent) and each Subsidiary of each Applicant is owned, as of the Closing Date, by each of the Persons and in the amounts set forth in Schedule 3.8. Except as set forth in Schedule 3.8, as of the Closing Date, there are no pre-emptive
or other outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which any Applicant may be required to issue, sell, repurchase or redeem any of its Stock or Stock Equivalents or any Stock or Stock Equivalents
of its Subsidiaries. Set forth in Schedule 3.8 is, as of the Closing Date, a true and complete organizational chart of Parent and its Subsidiaries. 
 3.9 Jurisdiction of Organization; Chief Executive Office. Schedule 3.9 lists each Applicant’s jurisdiction of organization, legal name and organizational identification number, if any,
and the location of such Applicant’s chief executive office or sole place of business, in each case as of the Closing Date, and such Schedule 3.9 also lists all jurisdictions of organization and legal names of such Applicant for the five
years preceding the Closing Date, which schedule shall be updated by the Applicants upon notice to GE Capital promptly following any change in any of the information set forth therein. 

3.10 Foreign Assets Control Regulations and Anti-Money Laundering. Each Applicant and each Subsidiary of each Applicant is and
will remain in compliance in all material respects with all U.S. economic sanctions laws, Executive Orders and implementing regulations as promulgated by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),
and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act and all regulations issued pursuant to it. No Applicant and no Subsidiary or Affiliate of an Applicant (i) is a Person designated by the U.S.
government on the list of the Specially Designated Nationals and Blocked Persons (the “SDN List”) with which a U.S. Person cannot deal with or otherwise engage in business transactions, (ii) is a Person who is otherwise the target
of U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business transactions with such Person or (iii) is controlled by (including without limitation by virtue of such person being a director or owning voting
shares or interests), or acts, directly or indirectly, for or on behalf of, any person or entity on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance under, this
Agreement or any other Credit Document would be prohibited under U.S. law. 

  
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 3.11 Patriot Act. The Applicants, each of their Subsidiaries and each of their
Affiliates are in compliance with (a) the Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B Chapter V, as amended) and any other enabling
legislation or executive order relating thereto, (b) the Patriot Act and (c) other federal or state laws relating to “know your customer” and anti-money laundering rules and regulations. No part of the proceeds of any
Letter of Credit will be used directly or indirectly for any payments to any government official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977. 
 3.12 ERISA Compliance. Each Benefit Plan, and each trust thereunder, intended to qualify for tax exempt status under Section 401 or 501 of the Code or other Requirements of Law so qualifies
(excluding, solely for this purpose, plan document or operational failures that (i) are eligible for correction under EPCRS, (ii) are promptly corrected under EPCRS and (iii) do not or are not reasonably expected to result in Liabilities in excess
of $500,000) and has received a favorable opinion letter or determination letter from the IRS to the effect that the form of such Benefit Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS
to be exempt from federal income tax under Section 501(a) of the Code, or an application for such letter was filed by the end of such Benefit Plan’s applicable remedial amendment cycle under Revenue Procedure 2005-66 (or such successor
promulgation), is currently being processed by the IRS or the deadline for filing such an application has not expired. Except for those that would not reasonably be expected to result in Liabilities in excess of $500,000 in the aggregate, (x) each
Benefit Plan is in compliance with applicable provisions of ERISA, the Code and other Requirements of Law, (y) there are no existing or pending (or to the knowledge of any Applicant, threatened) claims (other than routine claims for benefits in the
normal course), sanctions, actions, lawsuits or other proceedings or investigation involving any Benefit Plan to which any Applicant incurs or otherwise has or could have an obligation or any Liability and (z) no ERISA Event is reasonably expected
to occur or has occurred in connection with which obligations and liabilities (contingent or otherwise) remain outstanding. 

3.13 Margin Regulations. No Applicant and no Subsidiary of any Applicant is engaged in the business of purchasing or selling
Margin Stock or extending credit for the purpose of purchasing or carrying Margin Stock. 

  
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 3.14 Taxes. All federal, state, local and foreign income and franchise and other
material tax returns, reports and statements (collectively, the “Tax Returns”) required to be filed by any Tax Affiliate have been filed with the appropriate Governmental Authorities, all such Tax Returns are true and correct in all
material respects, and all taxes, assessments and other governmental charges and impositions reflected therein or otherwise due and payable have been paid prior to the date on which any Liability may be added thereto for non-payment thereof except
for those contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are maintained on the books of the appropriate Tax Affiliate in accordance with GAAP. As of the Closing Date, except as set forth on
Schedule 3.14, no Tax Return is under audit or examination by any Governmental Authority, and no notice of any audit or examination or any assertion of any claim for Taxes has been given or made by any Governmental Authority. Proper and accurate
amounts have been withheld by each Tax Affiliate from their respective employees for all periods in full and complete compliance with the tax, social security and unemployment withholding provisions of applicable Requirements of Law and such
withholdings have been timely paid to the respective Governmental Authorities. No Tax Affiliate has participated in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4(b) or has been a member of an
affiliated, combined or unitary group other than the group of which a Tax Affiliate is the common parent. 
 3.15 Regulated
Entities. None of any Applicant, any Person controlling any Applicant, or any Subsidiary of any Applicant, is (a) an “investment company” within the meaning of the Investment Company Act of 1940 or (b) subject to regulation under the
Federal Power Act, the Interstate Commerce Act, any state public utilities code, or any other Federal or state statute, rule or regulation limiting its ability to incur Indebtedness, grant Liens on its assets or perform its Obligations under the
Credit Documents. 
 3.16 Brokers’ Fees; Transaction Fees. Except for fees payable to GE Capital and the L/C
Issuers, none of the Applicants or any of their respective Subsidiaries has any obligation to any Person in respect of any finder’s, broker’s or investment banker’s fee in connection with the transactions contemplated hereby.

 ARTICLE IV. 
 AFFIRMATIVE COVENANTS 
 Each Applicant covenants and agrees that, so long
as GE Capital shall have an obligation hereunder to Issue or cause the Issuance of any Letters of Credit or any L/C Reimbursement Obligation or other Obligation (other than contingent indemnification Obligations to the extent no claim giving rise
thereto has been asserted) shall remain unpaid or unsatisfied: 
 4.1 Financial Statements. Each Applicant shall
maintain, and shall cause each of its Subsidiaries to maintain, a system of accounting established and administered in accordance with sound business practices to permit the preparation of financial statements in conformity with GAAP (provided that
monthly financial statements shall not be required to have footnote disclosures and are subject to normal year-end adjustments). The Applicants shall deliver to GE Capital by Electronic Transmission and in detail reasonably satisfactory to GE
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 (a) as soon as available, but not later than ninety (90) days after the end of each
Fiscal Year, a copy of the audited consolidated balance sheets of Parent and its Subsidiaries as at the end of such year and the related (i) consolidating statements of income or operations and (ii) consolidated statements of
shareholders’ equity and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, and accompanied by the report of any “Big Four” or other nationally-recognized
independent public accounting firm reasonably acceptable to GE Capital (provided that GE Capital acknowledges that BDO USA, LLP is acceptable to GE Capital as of the Closing Date) which report shall (y) contain an unqualified opinion, stating
that such consolidated financial statements present fairly in all material respects the financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior years and (z) not include any explanatory
paragraph expressing substantial doubt as to going concern status; 
 (b) as soon as available, but not later than forty-five
(45) days after the end of each Fiscal Quarter of each Fiscal Year, a copy of the unaudited consolidated balance sheets of Parent and its Subsidiaries, and the related (i) consolidating statements of income and (ii) consolidated
statements of shareholders’ equity and cash flows as of the end of such Fiscal Quarter and for the portion of the Fiscal Year then ended, all certified on behalf of the Applicants by an appropriate Responsible Officer of the Lead Applicant as
being complete and correct and fairly presenting, in all material respects, in accordance with GAAP, the financial position and the results of operations of Parent and its Subsidiaries, subject to normal year-end adjustments and absence of footnote
disclosures; and 
 (c) as soon as available, but not later than thirty (30) days after the end of each of the first two
fiscal months of each Fiscal Quarter, a copy of the unaudited consolidated balance sheets of Parent and its Subsidiaries, and the related (i) consolidating statements of income and (ii) consolidated statements of shareholders’ equity
and cash flows as of the end of such fiscal month and for the portion of the Fiscal Year then ended, all certified on behalf of the Applicants by an appropriate Responsible Officer of the Lead Applicant as being complete and correct and fairly
presenting, in all material respects, in accordance with GAAP, the financial position and the results of operations of Parent and its Subsidiaries, subject to normal year-end adjustments and absence of footnote disclosures. 

  
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 4.2 Certificates; Other Information. 

The Applicants shall furnish to GE Capital by Electronic Transmission, or shall permit and enable GE Capital to: 

(a) together with each delivery of financial statements pursuant to (i) subsections 4.1(a) and 4.1(b), a management
discussion and analysis report, in reasonable detail, signed by the chief financial officer of the Lead Applicant, describing the operations and financial condition of the Applicants and their Subsidiaries for the Fiscal Quarter and the portion of
the Fiscal Year then ended (or for the Fiscal Year then ended in the case of annual financial statements), and (ii) subsections 4.1(a), 4.1(b) and 4.1(c), a report setting forth in comparative form the corresponding figures
for the corresponding periods of the previous Fiscal Year and the corresponding figures from the most recent projections for the current Fiscal Year delivered pursuant to subsection 4.2(d) and discussing the reasons for any significant
variations; 
 (b) concurrently with the delivery of the financial statements referred to in subsections 4.1(a),
4.1(b) and 4.1(c), a fully and properly completed Compliance Certificate in the form of Exhibit 4.2(b), certified on behalf of the Applicants by a Responsible Officer of the Lead Applicant; 

(c) promptly after the same are sent, copies of all financial statements and reports which any Applicant sends to its shareholders or
other equity holders, as applicable, generally and promptly after the same are filed, copies of all financial statements and regular, periodic or special reports which such Person may make to, or file with, the Securities and Exchange Commission or
any successor or similar Governmental Authority; 
 (d) as soon as available and in any event no later than thirty
(30) days after the last day of each Fiscal Year of the Applicants, projections of the Applicants (and their Subsidiaries’) consolidated and consolidating financial performance for the forthcoming three (3) Fiscal Years on a year by
year basis, and for the forthcoming Fiscal Year on a month by month basis; 
 (e) promptly upon receipt thereof, copies of any
reports submitted by the certified public accountants in connection with each annual, interim or special audit or review of any type of the financial statements or internal control systems of any Applicant made by such accountants, including any
comment letters submitted by such accountants to management of any Applicant in connection with their services; and 
 (f)
promptly, such additional business, financial, corporate affairs and other information as GE Capital may from time to time reasonably request. 

  
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 4.3 Notices. The Applicants shall notify promptly GE Capital of the occurrence or
existence of each of the following (and in no event later than five (5) Business Days after a Responsible Officer becoming aware thereof): 
 (a) any Default or Event of Default, or any event or circumstance that foreseeably will become a Default or Event of Default; 
 (b) any breach or non-performance of, or any default under, any Contractual Obligation of any Applicant or any Subsidiary of any Applicant, or any violation of, or non-compliance with, any Requirement of
Law, which would reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect, including a description of such breach, non-performance, default, violation or non-compliance and the steps, if any, such
Person has taken, is taking or proposes to take in respect thereof; 
 (c) any dispute, litigation, investigation, proceeding or
suspension which may exist at any time between any Applicant or any Subsidiary of any Applicant and any Governmental Authority which would reasonably be expected to result, either individually or in the aggregate, in Liabilities in excess of
$500,000; 
 (d) the commencement of, or any material development in, any litigation or proceeding affecting any Applicant or
any Subsidiary of any Applicant (i) in which the amount of damages claimed is $500,000 (or its equivalent in another currency or currencies) or more, (ii) in which injunctive or similar relief is sought and which, if adversely determined,
would reasonably be expected to have a Material Adverse Effect, or (iii) in which the relief sought is an injunction or other stay of the performance of this Agreement or any other Credit Document; 

(e) any Material Adverse Effect subsequent to the date of the most recent audited financial statements delivered to GE Capital pursuant
to this Agreement; 
 (f) (i) on or prior to any filing by any ERISA Affiliate of any notice of any reportable event under
Section 4043 of ERISA or intent to terminate any Title IV Plan, a copy of such notice (ii) promptly, and in any event within ten (10) days, after any officer of any ERISA Affiliate knows or has reason to know that a request for a
minimum funding waiver under Section 412 of the Code has been filed with respect to any Title IV Plan or Multiemployer Plan, a notice describing such waiver request and any action that any ERISA Affiliate proposes to take with respect thereto,
together with a copy of any notice filed with the PBGC or the IRS pertaining thereto, and (iii) promptly, and in any event within ten (10) days after any officer of any ERISA Affiliate knows or has reason to know that an ERISA Event will
or has occurred, a notice describing such ERISA Event, and any action that any ERISA Affiliate proposes to take with respect thereto, together with a copy of any notices received from or filed with the PBGC, IRS, Multiemployer Plan or other Benefit
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 (g) any material change in accounting policies or financial reporting practices by any
Applicant or any Subsidiary of any Applicant; and 
 (h) (i) the creation, or filing with the IRS or the State of New York, of
any Contractual Obligation or other document extending, or having the effect of extending, the period for assessment or collection of any income or franchise or other material taxes with respect to any Tax Affiliate, (ii) the creation, or
filing with any other Governmental Authority of any Contractual Obligation or other document extending, or having the effect of extending, the period for assessment or collection of any material income, franchise or other taxes with respect to any
Tax Affiliate and (iii) the creation of any Contractual Obligation of any Tax Affiliate, or the receipt of any request directed to any Tax Affiliate, to make any material adjustment under Section 481(a) of the Code, by reason of a change
in accounting method or otherwise. 
 Each notice pursuant to this Section 4.3 shall be in electronic form accompanied by a
statement by a Responsible Officer of the Lead Applicant, on behalf of the Applicants, setting forth details of the occurrence referred to therein, and stating what action the Applicants or other Person proposes to take with respect thereto and at
what time. Each notice under subsection 4.3(a) shall describe with particularity any and all clauses or provisions of this Agreement or other Credit Document that have been breached or violated. 

4.4 Preservation of Corporate Existence, Etc. 
 Each Applicant shall, and shall cause each of its Subsidiaries to: 
 (a) preserve
and maintain in full force and effect its organizational existence and good standing under the laws of its jurisdiction of incorporation, organization or formation, as applicable, except in connection with transactions permitted by
Section 5.1; 
 (b) preserve and maintain in full force and effect all rights, privileges, qualifications, permits,
licenses and franchises necessary in the normal conduct of its business except in connection with transactions permitted by Section 5.1 and except as would not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect; and 
 (c) use its commercially reasonable efforts, in the Ordinary Course of Business, to preserve its
business organization and preserve the goodwill and business of the customers, suppliers and others having material business relations with it. 
 4.5 Payment of Obligations. Each Applicant shall, and shall cause each of its Subsidiaries to, pay, discharge and perform as the same shall become due and payable or required to be performed, all
their respective obligations and liabilities, except where the failure to perform would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 

  
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 4.6 Compliance with Laws. Each Applicant shall, and shall cause each of its
Subsidiaries to, comply with all Requirements of Law of any Governmental Authority having jurisdiction over it or its business, except where the failure to comply would not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect. 
 4.7 Use of the L/C Facility. The L/C Facility shall be used by the Applicants only in
connection with the acquisition of inventory from suppliers, to provide standby letters of credit to various factors, landlords, insurance providers and other parties in the Ordinary Course of Business and for other general corporate purposes not in
contravention of any Requirement of Law and not in contravention of this Agreement. The L/C Facility shall not be used to finance the purchase or carry of any Margin Stock. 
 4.8 The Cash Collateral Account. 
 (a) The Applicants shall cause the Cash
Collateral Account to at all times contain funds in an amount equal to not less than 105% of the Letter of Credit Obligations for all Letters of Credit then outstanding. 
 (b) The Cash Collateral Account shall be pledged by the Applicants to, and subject to the control of, GE Capital, for the benefit of itself and the other L/C Issuers, in a manner satisfactory to GE
Capital. Each Applicant hereby grants to GE Capital, for the benefit of the L/C Issuers, a present and continuing security interest in the Cash Collateral Account, all funds and Cash Equivalents held in the Cash Collateral Account from time to time,
and all proceeds of the foregoing (collectively, the “Cash Collateral”) as security for the payment of all L/C Reimbursement Obligations and the payment and performance of all other Obligations, whether or not then due. 

(c) No Applicant nor any Person claiming on behalf of or through any Applicant shall have any right to withdraw any of the funds or Cash
Equivalents held in the Cash Collateral Account, except that upon the termination of all Letter of Credit Obligations and the payment of all amounts payable by the Applicants to GE Capital, any funds or Cash Equivalents remaining in the Cash
Collateral Account shall be applied to other Obligations then due and owing and upon payment in full of such Obligations, any remaining amount shall, unless otherwise required by law, be paid to the Applicants in account number XXXXX2090 maintained
by the Lead Applicant with JPMorgan Chase, N.A. Interest earned on deposits in the Cash Collateral Account shall be for the account of GE Capital. 

  
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 (d) The Applicants shall not grant or create, or suffer to exist, any Lien on any of the
Cash Collateral or any of the Applicants’ rights, titles or interests in, to or under any of the Cash Collateral except for the security interest therein granted to GE Capital under this Agreement. 

(e) If at any time the Cash Collateral Account contains funds in an amount in excess of 105% of the Letter of Credit Obligations for all
Letters of Credit then outstanding, GE Capital shall apply such excess funds to any Obligations then due and owing and upon payment in full of such Obligations, any remaining amount shall, unless otherwise required by law, be paid to the Applicants
in account number XXXXX2090 maintained by the Lead Applicant with JPMorgan Chase, N.A. 
 4.9 Further Assurances. Each
Applicant shall ensure that all written information, exhibits and reports furnished to GE Capital do not and will not contain any untrue statement of a material fact and do not and will not omit to state any material fact or any fact necessary to
make the statements contained therein not misleading in light of the circumstances in which made, and will promptly disclose to GE Capital and correct any defect or error that may be discovered therein or in any Credit Document or in the execution,
acknowledgement or recordation thereof. 
 ARTICLE V. 

NEGATIVE COVENANTS 
 Each Applicant covenants and agrees that, so long as GE Capital shall have an obligation hereunder to Issue or cause the Issuance of any Letters of Credit or any L/C Reimbursement Obligation or other
Obligation (other than contingent indemnification Obligations to the extent no claim giving rise thereto has been asserted) shall remain unpaid or unsatisfied: 
 5.1 Consolidations and Mergers. No Applicant shall, and no Applicant shall suffer or permit any of its Subsidiaries to merge, consolidate with or into, or convey, transfer, lease or otherwise
dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except upon not less than five (5) Business Days prior written
notice to GE Capital, (a) any Subsidiary of an Applicant may merge with, or dissolve or liquidate into, an Applicant or a Wholly-Owned Subsidiary of an Applicant which is a Domestic Subsidiary, provided that such Applicant or such Wholly-Owned
Subsidiary which is a Domestic Subsidiary shall be the continuing or surviving entity and all actions required to maintain perfected Liens on the Cash Collateral Account in favor of GE Capital shall have been completed, (b) any Foreign
Subsidiary may merge with or dissolve or liquidate into another Foreign Subsidiary and (c) any Inactive Subsidiary may liquidate or be dissolved provided that proceeds, if any, of any such liquidation or dissolution shall be paid to an
Applicant. 

  
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 5.2 Change in Business. No Applicant shall, and no Applicant shall permit any of its
Subsidiaries to, engage in any line of business that is different from those lines of business carried on by it on the date hereof unless such new line of business is substantially similar or reasonably related thereto. 

5.3 Change in Structure. Except as otherwise permitted by this Agreement, no Applicant shall make any material changes in its
equity capital structure or amend any of its Organization Documents, in each case, in any respect adverse to GE Capital or any L/C Issuer. 
 5.4 Changes in Accounting, Name or Jurisdiction of Organization. No Applicant shall (i) make any significant change in accounting treatment or reporting practices, except as required by GAAP,
(ii) change the Fiscal Year or method for determining Fiscal Quarters of any Applicant or of any consolidated Subsidiary of any Applicant, (iii) change its name as it appears in official filings in its jurisdiction of organization
(provided, that Alloy Merchandise, LLC shall be permitted to change its name to A Merchandise LLC within 45 days following the Closing Date without any prior notice to GE Capital) or (iv) change its jurisdiction of organization,
in the case of clauses (iii) and (iv), without at least ten (10) days’ prior written notice to GE Capital (or such shorter period as shall be acceptable to GE Capital). 

5.5 OFAC; Patriot Act. No Applicant shall, and no Applicant shall permit any of its Subsidiaries to fail to comply with the laws,
regulations and executive orders referred to in Sections 3.10 and 3.11. 
 5.6 Margin Stock; Use of
Proceeds. No Applicant shall, and no Applicant shall suffer or permit any of its Subsidiaries to, use any portion of the proceeds of any Letter of Credit, directly or indirectly, to purchase or carry any Margin Stock or repay or otherwise
refinance Indebtedness of any Applicant or others incurred to purchase or carry any Margin Stock, or otherwise in any manner which is in contravention of any Requirement of Law or in violation of this Agreement. 

5.7 Compliance with ERISA. No ERISA Affiliate shall cause or suffer to exist (a) any event that could result in the
imposition of a Lien on any asset of an Applicant or a Subsidiary of an Applicant with respect to any Title IV Plan or Multiemployer Plan or (b) any other ERISA Event, that would, in the aggregate, result in Liabilities in excess of $500,000.
No Applicant shall cause or suffer to exist any event that could result in the imposition of a Lien with respect to any Benefit Plan. 

  
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 ARTICLE VI. 
 EVENTS OF DEFAULT 
 6.1 Events of Default. Any of the following
shall constitute an “Event of Default”: 
 (a) Non-Payment. Any Applicant fails (i) to pay when and
as required to be paid herein, any L/C Reimbursement Obligation or interest in respect thereof, or (ii) to pay within three (3) Business Days after the same shall become due, any fee or any other amount payable hereunder or pursuant to any
other Credit Document; 
 (b) Representation or Warranty. Any representation, warranty or certification by or on behalf
of any Applicant or any of its Subsidiaries made or deemed made herein, in any other Credit Document, or which is contained in any certificate, document or financial or other statement by any such Person, or their respective Responsible Officers,
furnished at any time under this Agreement, or in or under any other Credit Document, shall prove to have been incorrect in any material respect (without duplication of other materiality qualifiers contained therein) on or as of the date made or
deemed made; 
 (c) Specific Defaults. Any Applicant fails to perform or observe any term, covenant or agreement
contained in any of subsection 4.2(a), 4.2(b), 4.2(d), 4.3(a) or 7.10(d), Section 4.1, 4.7 or 4.8, or Article V or the Fee Letter; 

(d) Other Defaults. Any Applicant or Subsidiary of any Applicant fails to perform or observe any other term, covenant or agreement
contained in this Agreement or any other Credit Document, and such default shall continue unremedied for a period of fifteen (15) days after the earlier to occur of (i) the date upon which a Responsible Officer of any Applicant becomes
aware of such default and (ii) the date upon which written notice thereof is given to the Lead Applicant by GE Capital; 

(e) Cross-Default. Any Applicant or any Subsidiary of any Applicant (i) fails to make any payment in respect of any
Indebtedness (other than the Obligations or any Indebtedness owing to another Applicant) or Contingent Obligation (other than the Obligations) having an aggregate principal amount (including undrawn committed or available amounts and including
amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $500,000 when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after the
applicable grace or notice period, if any, specified in the document relating thereto on the date of such failure; or (ii) fails to perform or observe any other condition or covenant, or any other event shall occur or condition exist, under any
agreement or instrument relating to any such Indebtedness or Contingent Obligation (other than Contingent Obligations owing by one Applicant with respect to the obligations of another Applicant), if the effect of such failure, event or condition is
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beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause such Indebtedness to be declared to be due and payable
prior to its stated maturity (without regard to any subordination terms with respect thereto), or such Contingent Obligation to become payable or cash collateral in respect thereof to be demanded; 

(f) Insolvency; Voluntary Proceedings. An Applicant, individually, ceases or fails, or the Applicants and their Subsidiaries on a
consolidated basis, cease or fail, to be Solvent, or any Applicant or any Subsidiary of any Applicant: (i) generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if
any, whether at stated maturity or otherwise; (ii) voluntarily ceases to conduct its business in the ordinary course; (iii) commences any Insolvency Proceeding with respect to itself; or (iv) takes any action to effectuate or
authorize any of the foregoing; 
 (g) Involuntary Proceedings. (i) Any involuntary Insolvency Proceeding is
commenced or filed against any Applicant or any Subsidiary of any Applicant, or any writ, judgment, warrant of attachment, execution or similar process, is issued or levied against any such Person’s Properties with a value in excess of $500,000
individually or in the aggregate and any such proceeding or petition shall not be dismissed, or such writ, judgment, warrant of attachment, execution or similar process shall not be released, vacated or fully bonded within sixty (60) days after
commencement, filing or levy; (ii) any Applicant or Subsidiary of any Applicant admits the material allegations of a petition against it in any Insolvency Proceeding, or an order for relief (or similar order under non-U.S. law) is ordered in
any Insolvency Proceeding; (iii) any Applicant or any Subsidiary of any Applicant acquiesces in the appointment of a receiver, trustee, custodian, conservator, liquidator, mortgagee in possession (or agent therefor), or other similar Person for
itself or a substantial portion of its Property or business; or (iv) any Applicant takes any action for the purpose of preparing for or effecting or authorizing any of the foregoing; 

(h) Monetary Judgments. One or more judgments, non-interlocutory orders, decrees or arbitration awards shall be entered against
any one or more of the Applicants or any of their respective Subsidiaries involving in the aggregate a liability of $500,000 or more (excluding amounts covered by insurance to the extent the relevant independent third party insurer has not denied
coverage therefor), and the same shall remain unsatisfied, unvacated and unstayed pending appeal for a period of thirty (30) days after the entry thereof; 
 (i) Non-Monetary Judgments. One or more non-monetary judgments, orders or decrees shall be rendered against any one or more of the Applicants or any of their respective Subsidiaries which has or
would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, and there shall be any period of ten (10) consecutive days during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or 

  
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 (j) Change of Control. There shall occur any Change of Control. 

6.2 Remedies. Upon the occurrence and during the continuance of any Event of Default, GE Capital may: 

(a) declare its obligations hereunder to Issue or cause the Issuance of Letters of Credit to be suspended or terminated, whereupon such
obligations shall forthwith be suspended or terminated; 
 (b) declare all or any portion of any unpaid Obligations, all
interest accrued and unpaid thereon, and any fees, costs, expenses or other amounts owing or payable hereunder or under any other Credit Document to be immediately due and payable, in each case without presentment, demand, protest or other notice of
any kind, all of which are hereby expressly waived by each Applicant; and/or 
 (c) exercise all rights and remedies available
to it under the Credit Documents or applicable law; 
 provided, however, that upon the occurrence of any event specified in
subsection 6.1(f) or 6.1(g) above (in the case of clause (i) of subsection 6.1(g) upon the expiration of the sixty (60) day period mentioned therein), the obligations of GE Capital to Issue or cause the Issuance
of Letters of Credit shall automatically terminate and the unpaid Obligations and all interest, fees and other amounts as aforesaid shall automatically become due and payable without further act of GE Capital or any L/C Issuer. 

6.3 Rights Not Exclusive. The rights provided for in this Agreement and the other Credit Documents are cumulative and are not
exclusive of any other rights, powers, privileges or remedies provided by law or in equity, or under any other instrument, document or agreement now existing or hereafter arising. 

6.4 Cash Collateral Account. If an Event of Default has occurred and is continuing, if this Agreement shall be terminated for any
reason or if otherwise required by the terms hereof, the Applicants agree that GE Capital shall have the right to withdraw funds or Cash Equivalents from the Cash Collateral Account and apply such funds to pay any unpaid Obligations then due and
owing. The remaining balance of the cash collateral will be returned to the Applicants when all Letters of Credit have been terminated or discharged, obligations of the L/C Issuers to Issue Letters of Credit have been terminated and all Obligations
have been paid in full in cash or other satisfied. 

  
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 ARTICLE VII. 
 MISCELLANEOUS 
 7.1 Amendments and Waivers. No amendment or waiver
of any provision of this Agreement or any other Credit Document, and no consent with respect to any departure by any Applicant therefrom, shall be effective unless the same shall be in writing and signed by GE Capital and the Applicants, and then
such waiver shall be effective only in the specific instance and for the specific purpose for which given. 
 7.2
Notices. 
 (a) Addresses. All notices and other communications (“Communications”) required or
expressly authorized to be made by this Agreement shall be given in writing, unless otherwise expressly specified herein, and shall be addressed to the address set forth on the applicable signature page hereto or such other address as shall be
notified in writing to the other parties hereto. Transmissions made by electronic mail or E-Fax to GE Capital shall be effective only (x) for notices where such transmission is specifically authorized by this Agreement, (y) if such
transmission is delivered in compliance with procedures of GE Capital applicable at the time and previously communicated to the Lead Applicant, and (z) if receipt of such transmission is acknowledged by GE Capital. 

(b) Effectiveness. (i) All Communications described in clause (a) above and all other notices, demands, requests
and other communications made in connection with this Agreement shall be effective and be deemed to have been received (A) if delivered by hand, upon personal delivery, (B) if delivered by overnight courier service, one (1) Business
Day after delivery to such courier service, (C) if delivered by mail, three (3) Business Days after deposit in the mail and (D) if delivered by facsimile, upon sender’s receipt of confirmation of proper transmission;
provided, however, that no communications to GE Capital pursuant to Article I shall be effective until received by GE Capital. 
 (ii) The posting, completion and/or submission by Applicant of any communication pursuant to an E-System shall constitute a representation and warranty by the Applicants that any representation, warranty,
certification or other similar statement required by the Credit Documents to be provided, given or made by an Applicant in connection with any such communication is true, correct and complete except as expressly noted in such communication or
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 7.3 Electronic Transmissions. 

(a) Authorization. Subject to the provisions of subsection 7.2(a), GE Capital and each L/C Issuer, each Applicant and each
of their Related Persons, is authorized (but not required) to transmit, post or otherwise make or communicate, in its sole discretion, Electronic Transmissions in connection with any Credit Document and the transactions contemplated therein. Each
Applicant, each L/C Issuer and GE Capital acknowledge and agree that the use of Electronic Transmissions is not necessarily secure and that there are risks associated with such use, including risks of interception, disclosure and abuse and each
indicates it assumes and accepts such risks by hereby authorizing the transmission of Electronic Transmissions. 
 (b)
Signatures. Subject to the provisions of subsection 7.2(a), (i)(A) no posting to any E-System shall be denied legal effect merely because it is made electronically, (B) each E-Signature on any such posting shall be deemed
sufficient to satisfy any requirement for a “signature” and (C) each such posting shall be deemed sufficient to satisfy any requirement for a “writing”, in each case including pursuant to any Credit Document, any applicable
provision of any UCC, the federal Uniform Electronic Transactions Act, the Electronic Signatures in Global and National Commerce Act and any substantive or procedural Requirement of Law governing such subject matter, (ii) each such posting that
is not readily capable of bearing either a signature or a reproduction of a signature may be signed, and shall be deemed signed, by attaching to, or logically associating with such posting, an E-Signature, upon which GE Capital, each L/C Issuer and
each Applicant may rely and assume the authenticity thereof, (iii) each such posting containing a signature, a reproduction of a signature or an E-Signature shall, for all intents and purposes, have the same effect and weight as a signed paper
original and (iv) each party hereto or beneficiary hereto agrees not to contest the validity or enforceability of any posting on any E-System or E-Signature on any such posting under the provisions of any applicable Requirement of Law requiring
certain documents to be in writing or signed; provided, however, that nothing herein shall limit such party’s or beneficiary’s right to contest whether any posting to any E-System or E-Signature has been altered after
transmission. 
 (c) Separate Agreements. All uses of an E-System shall be governed by and subject to, in addition to
Section 7.2 and this Section 7.3, the separate terms, conditions and privacy policy posted or referenced in such E-System (or such terms, conditions and privacy policy as may be updated from time to time, including on such
E-System) and related Contractual Obligations executed by GE Capital and the Applicants in connection with the use of such E-System. 
 (d) LIMITATION OF LIABILITY. ALL E-SYSTEMS AND ELECTRONIC TRANSMISSIONS SHALL BE PROVIDED “AS IS” AND “AS AVAILABLE”. NONE OF GE CAPITAL, ANY L/C ISSUER OR ANY OF THEIR RELATED
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COMPLETENESS OF ANY E-SYSTEMS OR ELECTRONIC TRANSMISSION AND DISCLAIMS ALL LIABILITY FOR ERRORS OR OMISSIONS THEREIN. NO WARRANTY OF ANY KIND IS MADE BY GE CAPITAL, ANY L/C ISSUER OR ANY OF THEIR
RELATED PERSONS IN CONNECTION WITH ANY E-SYSTEMS OR ELECTRONIC COMMUNICATION, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS. Each of
the Applicants agrees that GE Capital has no responsibility for maintaining or providing any equipment, software, services or any testing required in connection with any Electronic Transmission or otherwise required for any E-System. 

7.4 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of GE Capital or any L/C
Issuer, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. No course of dealing between any Applicant, any Affiliate of any Applicant, GE Capital or any L/C Issuer shall be effective to amend, modify or discharge any provision of this Agreement or any of the
other Credit Documents. 
 7.5 Costs and Expenses. Any action taken by any Applicant under or with respect to any Credit
Document, even if required under any Credit Document or at the request of GE Capital or any other L/C Issuer, shall be at the expense of such Applicant, and neither GE Capital nor any other L/C Issuer shall be required under any Credit Document to
reimburse any Applicant or any Subsidiary of any Applicant therefor except as expressly provided therein. In addition, the Applicants agree to pay or reimburse upon written demand (a) GE Capital for all reasonable out-of-pocket costs and
expenses incurred by it or any of its Related Persons (but only to the extent GE Capital or its Affiliates are required to reimburse such Related Persons), in connection with the investigation, development, preparation, negotiation, syndication,
execution, interpretation or administration of, any modification of any term of or termination of, any Credit Document, any commitment or proposal letter therefor, any other document prepared in connection therewith or the consummation and
administration of any transaction contemplated therein, in each case including Attorney Costs of GE Capital, the cost of audits, background checks and similar expenses and (b) each of GE Capital, the other L/C Issuers and their Related Persons
for all costs and expenses incurred in connection with (i) any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work-out”, (ii) the enforcement or preservation of any right or remedy
under any Credit Document, any Obligation, with respect to the Cash Collateral Account or any other related right or remedy or (iii) the commencement, defense, conduct of, intervention in, or the taking of any other action with respect to, any
proceeding (including any bankruptcy or insolvency proceeding) related to any Applicant, any Subsidiary of any Applicant, or any Credit Document, Obligation or Letter of Credit or the use thereof (or the response to and preparation for any subpoena
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 7.6 Indemnity. Each Applicant agrees to indemnify, hold harmless and defend GE
Capital and each other L/C Issuer and each of their Related Persons (each such Person being an “Indemnitee”) from and against all Liabilities (including brokerage commissions, fees and other compensation) that may be imposed on,
incurred by or asserted against any such Indemnitee (whether brought by an Applicant, an Affiliate of an Applicant or any other Person) in any matter relating to or arising out of, in connection with or as a result of (i) any Credit Document,
any Obligation (or the repayment thereof), any Letter of Credit, the use or intended use of any Letter of Credit or any securities filing of, or with respect to, any Applicant, (ii) any commitment letter, proposal letter or term sheet with any
Person or any Contractual Obligation, arrangement or understanding with any broker, finder or consultant, in each case entered into by or on behalf of any Applicant or any Affiliate of any of them in connection with any of the foregoing and any
Contractual Obligation entered into in connection with any E-Systems or other Electronic Transmissions, (iii) any actual or prospective investigation, litigation or other proceeding, whether or not brought by any such Indemnitee or any of its
Related Persons, any holders of securities or creditors (and including attorneys’ fees in any case), whether or not any such Indemnitee, Related Person, holder or creditor is a party thereto, and whether or not based on any securities or
commercial law or regulation or any other Requirement of Law or theory thereof, including common law, equity, contract, tort or otherwise or (iv) any other act, event or transaction related, contemplated in or attendant to any of the foregoing
(collectively, the “Indemnified Matters”); provided, however, that no Applicant shall have any liability under this Section 7.6 to any Indemnitee with respect to any Indemnified Matter, and no Indemnitee
shall have any liability with respect to any Indemnified Matter other than (to the extent otherwise liable), to the extent such liability has resulted primarily from the gross negligence or willful misconduct of such Indemnitee or from such
Indemnitee’s breach of its obligations under this Agreement, as determined by a court of competent jurisdiction in a final non-appealable judgment or order. Furthermore, each of the Applicants executing this Agreement waives and agrees not to
assert against any Indemnitee, and shall cause each other Applicant to waive and not assert against any Indemnitee, any right of contribution with respect to any Liabilities that may be imposed on, incurred by or asserted against any Related Person.

 7.7 Marshaling; Payments Set Aside. Neither GE Capital nor any other L/C Issuer shall be under any obligation to
marshal any property in favor of any Applicant or any other Person or against or in payment of any Obligation. To the extent that GE Capital or any L/C other Issuer receives a payment from an Applicant, from the proceeds of the Cash Collateral
Account, from the exercise of its rights of setoff, any enforcement action or otherwise, and such payment is subsequently, in whole or in part, invalidated, declared to be fraudulent or 

  
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preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent of such recovery, the obligation or part thereof originally intended to be
satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not occurred. 
 7.8 Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that
any assignment by GE Capital shall be subject to the provisions of Section 7.9, and provided further that no Applicant may assign or transfer any of its rights or obligations under this Agreement without the prior written consent of GE
Capital. 
 7.9 Assignments and Participations; Binding Effect. 

(a) Binding Effect. This Agreement shall become effective when it shall have been executed by the Applicants and GE Capital.
Thereafter, it shall be binding upon and inure to the benefit of, but only to the benefit of the Applicants and GE Capital and each L/C Issuer receiving the benefits of the Credit Documents and, in each case, their respective successors and
permitted assigns. Except as expressly provided in any Credit Document, none of the Applicants, GE Capital or any other L/C Issuer shall have the right to assign any rights or obligations hereunder or any interest herein. 

(b) Right to Assign. GE Capital may sell, transfer, negotiate or assign (a “Sale”) all or a portion of its rights
and obligations hereunder (including all or a portion of its rights and obligations with respect to Letters of Credit) to any of the following Persons (i) any Affiliate or Approved Fund of GE Capital or (ii) any other Person (which in no
event shall be a Competitor of any Applicant) acceptable (which acceptance shall not be unreasonably withheld or delayed) to GE Capital and, as long as no Event of Default is continuing, the Lead Applicant (which acceptances shall be deemed to have
been given unless an objection is delivered to GE Capital within five (5) Business Days after notice of a proposed sale is delivered to the Lead Applicant). 
 (c) Procedure. The parties to each Sale made in reliance on clause (b) above shall execute and deliver an Assignment. 

(d) Effectiveness. Subject to the recording of an Assignment by GE Capital in the Register pursuant to subsection 1.2(b),
(i) the assignee thereunder shall become a party hereto and, to the extent that rights and obligations under the Credit Documents have been assigned to such assignee pursuant to such Assignment and (ii) the assignor thereunder shall, to
the extent that rights and obligations under this Agreement have been assigned by it pursuant to such Assignment, relinquish its rights (except for those surviving the termination of the assignor’s obligations to Issue Letters of Credit and the
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Credit Documents, other than those relating to events or circumstances occurring prior to such assignment (and, in the case of an Assignment covering all or the remaining portion of an GE
Capital’s rights and obligations under the Credit Documents, GE Capital shall cease to be a party hereto). 
 (e) Grant
of Security Interests. In addition to the other rights provided in this Section 7.9, GE Capital may grant a security interest in, or otherwise assign as collateral, any of its rights under this Agreement, whether now owned or
hereafter acquired (including rights to L/C Reimbursement Obligations or interest thereon), to (i) any federal reserve bank (pursuant to Regulation A of the Federal Reserve Board), or (ii) any holder of, or trustee for the benefit of the
holders of, GE Capital’s Indebtedness or equity securities; provided, however, that no such holder or trustee, whether because of such grant or assignment or any foreclosure thereon (unless such foreclosure is made through an
assignment in accordance with clause (b) above), shall be entitled to any rights of GE Capital hereunder and GE Capital shall not be relieved of any of its obligations hereunder. 

7.10 Non-Public Information; Confidentiality. 
 (a) Non-Public Information. Each of GE Capital and each other L/C Issuer acknowledges and agrees that it may receive material non-public information (“MNPI”) hereunder concerning
the Applicants and their Affiliates and agrees to use such information in compliance with all relevant policies, procedures and applicable Requirements of Laws (including United States federal and state security laws and regulations). 

(b) Confidential Information. Each of GE Capital and each other L/C Issuer agrees to use all reasonable efforts to maintain, in
accordance with its customary practices, the confidentiality of information obtained by it pursuant to any Credit Document and designated in writing by any Applicant as confidential, except that such information may be disclosed (i) with the
Lead Applicant’s consent, (ii) to Related Persons of such L/C Issuer or GE Capital, as the case may be, or to any Person that GE Capital causes to Issue Letters of Credit hereunder, who shall be advised of the confidential nature of such
information and instructed to keep such information confidential in accordance with the terms hereof, (iii) to the extent such information presently is or hereafter becomes (A) publicly available other than as a result of a breach of this
Section 7.10 or (B) available to such L/C Issuer, GE Capital or any of their Related Persons, as the case may be, from a source (other than any Applicant) not known by them to be subject to disclosure restrictions, (iv) to the
extent disclosure is required by applicable Requirements of Law or other legal process or requested or demanded by any Governmental Authority, (v) to the extent necessary or customary for inclusion in league table measurements,
(vi) (A) to the National Association of Insurance Commissioners or any similar organization, any examiner or any nationally recognized rating agency or (B) otherwise to the extent consisting of general portfolio information that does
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Applicants, (vii) to current or prospective assignees, or participants, and to their respective Related Persons, in each case to the extent such assignees, investors, participants or Related
Persons agree to be bound by provisions substantially similar to the provisions of this Section 7.10 (and such Person may disclose information to their respective Related Persons in accordance with clause (ii) above),
(viii) to any other party hereto, and (ix) in connection with the exercise or enforcement of any right or remedy under any Credit Document, in connection with any litigation or other proceeding to which such L/C Issuer or GE Capital or any
of their Related Persons is a party or bound, or to the extent necessary to respond to public statements or disclosures by Applicants or their Related Persons referring to such L/C Issuer or GE Capital or any of their Related Persons. In the event
of any conflict between the terms of this Section 7.10 and those of any other Contractual Obligation entered into with any Applicant (whether or not a Credit Document), the terms of this Section 7.10 shall govern. 

(c) Tombstones. Each Applicant consents to the publication by GE Capital of any press releases, advertising or other promotional
materials (including via any Electronic Transmission) relating to the financing transactions contemplated by this Agreement using such Applicant’s name, product photographs, logo or trademark. GE Capital shall provide a draft of any such
advertising material to the Applicants for review and comment prior to the publication thereof. 
 (d) Press Release and
Related Matters. No Applicant shall, and no Applicant shall permit any of its Affiliates to, issue any press release or other public disclosure (other than any document filed with any Governmental Authority relating to a public offering of
securities of any Applicant) using the name, logo or otherwise referring to GE Capital or of any of its Affiliates, the Credit Documents or any transaction contemplated herein or therein to which GE Capital or any of its Affiliates is party without
the prior consent of GE Capital except to the extent required to do so under applicable Requirements of Law and then, only after consulting with GE Capital. 
 7.11 Set-off; Sharing of Payments. 
 (a) Right of Setoff. During the
continuance of any Event of Default, GE Capital, each other L/C Issuer and each Affiliate (including each branch office thereof) of any of them is hereby authorized, without notice or demand (each of which is hereby waived by each Applicant), at any
time and from time to time during the continuance of any Event of Default and to the fullest extent permitted by applicable Requirements of Law, to set off and apply any and all deposits (whether general or special, time or demand, provisional or
final) at any time held and other Indebtedness, claims or other obligations at any time owing by GE Capital, such other L/C Issuer or any of their respective Affiliates to or for the credit or the account of the Applicants against any Obligation of
any Applicant now or hereafter existing, whether or not any demand was made under any Credit Document with respect to such Obligation and even though such Obligation may be unmatured. Each of GE Capital and each other L/C Issuer agrees

  
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promptly to notify the Lead Applicant after any such setoff and application made by GE Capital, such other L/C Issuer or their Affiliates; provided, however, that the failure to
give such notice shall not affect the validity of such setoff and application. The rights under this Section 7.11 are in addition to any other rights and remedies (including other rights of setoff) that GE Capital, the other L/C Issuers
and their Affiliates may have. 
 7.12 Counterparts; Facsimile Signature. This Agreement may be executed in any number of
counterparts and by different parties 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. Signature pages may be detached from
multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or Electronic Transmission shall be as effective as delivery of a manually executed counterpart
hereof. 
 7.13 Severability. The illegality or unenforceability of any provision of this Agreement or any instrument or
agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder. 

7.14 Captions. The captions and headings of this Agreement are for convenience of reference only and shall not affect the
interpretation of this Agreement. 
 7.15 Independence of Provisions. The parties hereto acknowledge that this Agreement
and the other Credit Documents may use several different limitations, tests or measurements to regulate the same or similar matters, and that such limitations, tests and measurements are cumulative and must each be performed, except as expressly
stated to the contrary in this Agreement. 
 7.16 Interpretation. This Agreement is the result of negotiations among and
has been reviewed by counsel to each of the Applicants and GE Capital, and is the work product of all parties hereto. Accordingly, this Agreement and the other Credit Documents shall not be construed against GE Capital or the other L/C Issuers
merely because of GE Capital’s involvement in the preparation of such documents and agreements. Without limiting the generality of the foregoing, each of the parties hereto has had the advice of counsel with respect to Sections 7.18 and
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 7.17 No Third Parties Benefited. This Agreement is made and entered into for the sole
protection and legal benefit of the Applicants, the L/C Issuers and GE Capital and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any of the other Credit Documents. Neither GE Capital nor any other L/C Issuer shall have any obligation to any Person not a party to this Agreement or the other Credit Documents. 

7.18 Governing Law and Jurisdiction. 
 (a) Governing Law. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN ALL MATTERS ARISING OUT OF, IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, INCLUDING ITS VALIDITY, INTERPRETATION, CONSTRUCTION,
PERFORMANCE AND ENFORCEMENT (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST). 

(b) Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO ANY CREDIT DOCUMENT SHALL BE BROUGHT EXCLUSIVELY IN
THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH APPLICANT HEREBY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL LIMIT THE RIGHT OF GE CAPITAL TO COMMENCE ANY PROCEEDING IN THE FEDERAL OR STATE COURTS OF
ANY OTHER JURISDICTION TO THE EXTENT GE CAPITAL DETERMINES THAT SUCH ACTION IS NECESSARY OR APPROPRIATE TO EXERCISE ITS RIGHTS OR REMEDIES UNDER THE CREDIT DOCUMENTS. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION
TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH JURISDICTIONS. 

(c) Service of Process. EACH APPLICANT HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES
AND OTHER DOCUMENTS AND OTHER SERVICE OF PROCESS OF ANY KIND AND CONSENTS TO SUCH SERVICE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED STATES OF AMERICA WITH RESPECT TO OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH ANY CREDIT DOCUMENT
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BY APPLICABLE REQUIREMENTS OF LAW, INCLUDING BY THE MAILING THEREOF (BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) TO THE ADDRESS OF THE APPLICANTS SPECIFIED HEREIN (AND SHALL BE EFFECTIVE
WHEN SUCH MAILING SHALL BE EFFECTIVE, AS PROVIDED THEREIN). EACH APPLICANT AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. 
 (d) Non-Exclusive Jurisdiction. NOTHING CONTAINED IN THIS SECTION 7.18 SHALL AFFECT THE
RIGHT OF GE CAPITAL OR ANY OTHER L/C ISSUER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE REQUIREMENTS OF LAW OR COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY APPLICANT IN ANY OTHER JURISDICTION. 

7.19 Waiver of Jury Trial. THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS AND ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE. 
 7.20 Entire Agreement; Release; Survival. 

(a) THE CREDIT DOCUMENTS EMBODY THE ENTIRE AGREEMENT OF THE PARTIES AND SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS RELATING TO THE
SUBJECT MATTER THEREOF AND ANY PRIOR LETTER OF INTEREST, COMMITMENT LETTER, CONFIDENTIALITY AND SIMILAR AGREEMENTS INVOLVING ANY APPLICANT AND GE CAPITAL OR ANY OF THEIR RESPECTIVE AFFILIATES RELATING TO A FINANCING OF SUBSTANTIALLY SIMILAR FORM,
PURPOSE OR EFFECT OTHER THAN THE FEE LETTER. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THIS AGREEMENT AND ANY OTHER CREDIT DOCUMENT, THE TERMS OF THIS AGREEMENT SHALL GOVERN (UNLESS OTHERWISE EXPRESSLY STATED IN SUCH OTHER CREDIT DOCUMENT OR
SUCH TERMS OF SUCH OTHER CREDIT DOCUMENTS ARE NECESSARY TO COMPLY WITH APPLICABLE REQUIREMENTS OF LAW, IN WHICH CASE SUCH TERMS SHALL GOVERN TO THE EXTENT NECESSARY TO COMPLY THEREWITH). 

  
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 (b) Execution of this Agreement by the Applicants constitutes a full, complete and
irrevocable release of any and all claims which each Applicant may have at law or in equity in respect of all prior discussions and understandings, oral or written, relating to the subject matter of this Agreement and the other Credit Documents. In
no event shall any Indemnitee be liable on any theory of liability for any special, indirect, consequential or punitive damages (including any loss of profits, business or anticipated savings). Each Applicant signatory hereto hereby waives, releases
and agrees (and shall cause each other Applicant to waive, release and agree) not to sue upon any such claim for any special, indirect, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist in its
favor. 
 (c) Any indemnification or other protection provided to any Indemnitee pursuant to this Section 7.20,
Sections 7.5 (Costs and Expenses) or 7.6 (Indemnity) or Article VIII (Taxes, Yield Protection and Illegality) shall (x) survive the termination of GE Capital’s obligations hereunder to Issue or cause the Issuance of
Letters of Credit and the payment in full of all Obligations and inure to the benefit of any Person that at any time held a right thereunder (as an Indemnitee or otherwise) and, thereafter, its successors and permitted assigns. 

7.21 Patriot Act. GE Capital and each other L/C Issuer that is subject to the Patriot Act hereby notifies the Applicants that
pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Applicant, which information includes the name and address of each Applicant and other information that will allow GE
Capital or such other L/C Issuer to identify each Applicant in accordance with the Patriot Act. 
 7.22 Joint and
Several. The obligations of the Applicants hereunder and under the other Credit Documents are joint and several. 
 7.23
Creditor-Debtor Relationship. The relationship between GE Capital and each other L/C Issuer, on the one hand, and the Applicants, on the other hand, is solely that of creditor and debtor. Neither GE Capital nor any other L/C Issuer has any
fiduciary relationship or duty to any Applicant arising out of or in connection with, and there is no agency, tenancy or joint venture relationship between GE Capital and each other L/C Issuer, on the one hand, and the Applicants, on the other hand,
by virtue of, any Credit Document or any transaction contemplated therein. 

  
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 ARTICLE VIII. 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 8.1 Taxes. 

(a) Except as otherwise provided in this Section 8.1, each payment by any Applicant under any Credit Document shall be made
free and clear of all present or future taxes, levies, imposts, deductions, charges or withholdings imposed by any Governmental Authority and all liabilities with respect thereto (and without deduction for any of them) (collectively, but excluding
Excluded Taxes, the “Taxes”). 
 (b) If any Taxes shall be required by law to be deducted from or in respect of
any amount payable under any Credit Document to GE Capital or any other L/C Issuer (i) such amount shall be increased as necessary to ensure that, after all required deductions for Taxes are made (including deductions applicable to any
increases to any amount under this Section 8.1), GE Capital or such other L/C Issuer receives the amount it would have received had no such deductions been made, (ii) the relevant Applicant shall make such deductions, (iii) the
relevant Applicant shall timely pay the full amount deducted to the relevant taxing authority or other authority in accordance with applicable Requirements of Law and (iv) within thirty (30) days after such payment is made, the relevant
Applicant shall deliver to GE Capital an original or certified copy of a receipt evidencing such payment or other evidence of payment reasonably satisfactory to GE Capital. 
 (c) In addition, the Applicants agree to pay, and authorize GE Capital to pay in their name, any stamp, documentary, excise or property tax, charges or similar levies imposed by any applicable Requirement
of Law or Governmental Authority and all Liabilities with respect thereto (including by reason of any delay in payment thereof), in each case arising from the execution, delivery or registration of, or otherwise with respect to, any Credit Document
or any transaction contemplated therein (collectively, “Other Taxes”). For the avoidance of doubt, Other Taxes shall not include any Taxes that are Excluded Taxes. Within thirty (30) days after the date of any payment of Other
Taxes by any Applicant, the Applicants shall furnish to GE Capital, at its address referred to in Section 7.2, the original or a certified copy of a receipt evidencing payment thereof or other evidence of payment reasonably satisfactory
to GE Capital. 
 (d) Without duplication of any amounts paid pursuant to Sections 8.1(a), 8.1(b) and
8.1(c), the Applicants shall reimburse and indemnify, within thirty (30) days after receipt of demand therefor (with a copy to GE Capital), GE Capital and each other L/C Issuer for all Taxes and Other Taxes (including any Taxes and Other
Taxes imposed by any jurisdiction on amounts payable under this Section 8.1) paid by GE Capital or such other L/C Issuer and any Liabilities arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted. A certificate of GE Capital or such other L/C Issuer claiming any compensation under this clause (d), setting forth the amounts to be paid thereunder and delivered to the Lead Applicant with copy to GE Capital,
shall be conclusive, binding and final for all purposes, absent manifest error. In determining such amount, GE Capital or such other L/C Issuer may use any reasonable averaging and attribution methods. 

  
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 (e) To the extent that GE Capital or any other L/C Issuer claims any additional amounts
payable pursuant to this Section 8.1 GE Capital or such other L/C Issuer shall use its commercially reasonable efforts (consistent with its internal policies and Requirements of Law) to change the jurisdiction of its Lending Office if
such a change would reduce any such additional amounts (or any similar amount that may thereafter accrue) and would not, in the sole determination of GE Capital or such other L/C Issuer, be otherwise disadvantageous to GE Capital or such other L/C
Issuer. 
 (f) 
 (i) Each Non-U.S. L/C Issuer Party that, at any of the following times, is entitled to an exemption from United States withholding tax or is subject to such withholding tax at a reduced rate under an
applicable tax treaty, shall (w) on or prior to the date such Non-U.S. L/C Issuer Party becomes a “Non-U.S. L/C Issuer Party” hereunder, (x) on or prior to the date on which any such form or certification expires or becomes
obsolete, (y) after the occurrence of any event requiring a change in the most recent form or certification previously delivered by it pursuant to this clause (i) and (z) from time to time if requested by the Lead Applicant or
GE Capital, provide GE Capital and the Lead Applicant with two completed originals of each of the following, as applicable: (A) Forms W-8ECI (claiming exemption from U.S. withholding tax because the income is effectively connected with a U.S.
trade or business), W-8BEN (claiming exemption from, or a reduction of, U.S. withholding tax under an income tax treaty) and/or W-8IMY (together with appropriate forms, certifications and supporting statements) or any successor forms, (B) in
the case of a Non-U.S. L/C Issuer Party claiming exemption under Sections 871(h) or 881(c) of the Code, Form W-8BEN (claiming exemption from U.S. withholding tax under the portfolio interest exemption) or any successor form and a certificate in form
and substance acceptable to GE Capital that such Non-U.S. L/C Issuer Party is not (1) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10 percent shareholder” of the Applicants within the
meaning of Section 881(c)(3)(B) of the Code or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code or (C) any other applicable document prescribed by the IRS certifying as to the
entitlement of such Non-U.S. L/C Issuer Party to such exemption from United States withholding tax or reduced rate with respect to all payments to be made to such Non-U.S. L/C Issuer Party under the Credit Documents. Unless the Lead Applicant and GE
Capital have received forms or other documents reasonably satisfactory to them indicating that payments under any Credit Document to or for a Non-U.S. L/C Issuer Party are not subject to United States withholding tax or are subject to such tax at a
rate reduced by an applicable tax treaty, the Applicants and GE Capital shall withhold amounts required to be withheld by applicable Requirements of Law from such payments at the applicable statutory rate. 

(ii) Each U.S. L/C Issuer Party shall (A) on or prior to the date such U.S. L/C Issuer Party becomes a “U.S. L/C Issuer
Party” hereunder, (B) on or prior to the date on which any such form or certification expires or becomes obsolete, (C) after the occurrence of any event requiring a change in the most recent form or certification previously delivered
by it pursuant to this clause (f)(ii) and (D) from time to time if 

  
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requested by the Lead Applicant or GE Capital, provide GE Capital and the Lead Applicant with two completed originals of Form W-9 (certifying that such U.S. L/C Issuer Party is entitled to an
exemption from U.S. backup withholding tax) or any successor form. Unless the Lead Applicant and GE Capital have received forms or other documents reasonably satisfactory to them indicating that payment under any Credit Document to or for a U.S. L/C
Issuer Party are not subject to United States withholding tax, the Applicants and GE Capital shall withhold amounts required to be withheld by applicable Requirements of Law from such payments at the applicable statutory rate. 

(iii) If a payment made to a Non-U.S. L/C Issuer Party would be subject to United States federal withholding tax imposed by FATCA if
such Non-U.S. L/C Issuer Party fails to comply with the applicable reporting requirements of FATCA, such Non-U.S. L/C Issuer Party shall deliver to GE Capital and the Lead Applicant any documentation under any Requirement of Law or reasonably
requested by GE Capital or the Lead Applicant sufficient for GE Capital or the Lead Applicant to comply with their obligations under FATCA and to determine that such Non-U.S. L/C Issuer Party has complied with such applicable reporting requirements.

 (g) The Applicants shall not be liable to any L/C Issuer to the extent such liability is caused by the breach by such L/C
Issuer of its obligations under this Section 8.1. 
 (h) If GE Capital or any other L/C Issuer determines, in its
sole discretion, that it has received a refund (whether by way of direct payment, offset or credit) of any Taxes or Other Taxes as to which it has been indemnified by an Applicant with respect to which an Applicant has been paid additional amounts
pursuant to Section 8.1, it shall pay over such refund to such Applicant (but only to the extent of indemnity payments made, or additional amounts paid, by such Applicant under this Section 8.1 with respect to Taxes or Other
Taxes giving rise to such refund), net of all related out-of-pocket expenses of GE Capital or such other L/C Issuer and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund);
provided that such Applicant, within ten (10) days following the request of GE Capital or such other L/C Issuer, agrees to repay the amount paid over to such Applicant to GE Capital or such other L/C Issuer in the event GE Capital or
such other L/C Issuer is required to repay such refund to such Governmental Authority. This Section 8.1(h) shall not be construed to require GE Capital or any other L/C Issuer to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to such Applicant or any other Person. 

  
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 8.2 Increased Costs and Reduction of Return. 

(a) If GE Capital or any other L/C Issuer shall determine that, due to either (i) the introduction of, or any change in, or in the
interpretation of, any Requirement of Law or (ii) the compliance with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), in the case of either clause (i) or
(ii) subsequent to the date hereof, there shall be any increase in the cost to such Person of Issuing or causing the Issuance, or maintaining any Letter of Credit, then the Applicants shall be liable for, and shall from time to time,
within thirty (30) days of demand therefor by such Person, pay to such Person for its own account, additional amounts as are sufficient to compensate such Person for such increased costs; provided that the Applicants shall not be
required to compensate such Person pursuant to this subsection 8.2(a) for any increased costs incurred more than ninety (90) days prior to the date that such Person notifies the Lead Applicant, in writing of the increased costs and of
such Person’s intention to claim compensation thereof; provided further that if the circumstance giving rise to such increased costs is retroactive, then the 90-day period referred to above shall be extended to include the period of
retroactive effect thereof. 
 (b) If GE Capital or any other L/C Issuer shall have determined that: 

(i) the introduction of any Capital Adequacy Regulation; 
 (ii) any change in any Capital Adequacy Regulation; 
 (iii) any change in the
interpretation or administration of any Capital Adequacy Regulation by any central bank or other Governmental Authority charged with the interpretation or administration thereof; or 

(iv) compliance by such Person (or its Lending Office) or any entity controlling such Person, with any Capital Adequacy Regulation;

 affects the amount of capital required or expected to be maintained by such Person or any entity controlling such Person and (taking into
consideration such Person’s or such entities’ policies with respect to capital adequacy and such Person’s contracted return on capital) reasonably determines that the amount of such capital is increased as a consequence of its credits
or obligations under this Agreement, then, within thirty (30) days of demand of such Person, the Applicants shall pay to such Person, from time to time as specified by such Person, additional amounts sufficient to compensate such Person (or the
entity controlling such Person) for such increase; provided that the Applicants shall not be required to compensate such Person pursuant to this subsection 8.2(b) for any amounts incurred more than ninety (90) days prior to the
date that such Person notifies the Lead Applicant, in writing of the amounts and of such Person’s intention to claim compensation thereof; provided further that if the event giving rise to such increase is retroactive, then the 90-day
period referred to above shall be extended to include the period of retroactive effect thereof. 
 (c) Notwithstanding anything
herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith shall be deemed to be a change in a Requirement of Law under
clause (a) above and/or a change in Capital Adequacy Regulation under clause (b) above, as applicable, regardless of the date enacted, adopted or issued. 

  
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 (d) This Section 8.2 shall not apply with respect to Taxes or Other Taxes
covered by Section 8.1 or the imposition of, or any change in the rate of, any Excluded Taxes. 
 8.3
Certificates of Claimants. To the extent GE Capital or any other L/C Issuer makes a claim for reimbursement or compensation pursuant to this Article VIII, such Person shall deliver to the Lead Applicant a certificate setting forth in
reasonable detail the amount payable to such Person hereunder and such certificate shall be conclusive and binding on the Applicants in the absence of manifest error. 
 ARTICLE IX. 
 DEFINITIONS 

9.1 Defined Terms. The following terms are defined in the Sections or subsections referenced opposite such terms: 

 

					
	 “Agreement”
	  		  	Preamble
	 “Applicant” and “Applicants”
	  		  	Preamble
	 “Communications”
	  		  	7.2(a)
	 “Event of Default”
	  		  	6.1
	 “GE Capital”
	  		  	Preamble
	 “Indemnified Matters”
	  		  	7.6
	 “Indemnitee”
	  		  	7.6
	 “L/C Facility”
	  		  	1.1(a)
	 “L/C Reimbursement Agreement”
	  		  	1.1(a)
	 “L/C Request”
	  		  	1.1(a)
	 “Lead Applicant”
	  		  	1.5
	 “Letter of Credit Fee”
	  		  	1.3(c)
	 “Maximum Lawful Rate”
	  		  	1.3(e)
	 “MNPI”
	  		  	7.10(a)
	 “OFAC”
	  		  	3.10
	 “Other Taxes”
	  		  	8.1(c)
	 “Parent”
	  		  	Preamble
	 “Register”
	  		  	1.2(b)
	 “Sale”
	  		  	7.9(b)
	 “SDN List”
	  		  	3.10
	 “Taxes”

“Tax Returns”
	  		  	 8.1(a)

3.14

	 “Unused L/C Facility Fee”
	  		  	1.3(b)

  
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 In addition to the terms defined elsewhere in this Agreement, the following terms have the
following meanings: 
 “Affiliate” means, as to any Person, any other Person which, directly or indirectly, is
in control of, is controlled by, or is under common control with, such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of the other Person, whether through the ownership of voting securities, by contract or otherwise. Without limitation, any director, executive officer or beneficial owner of (i) ten percent (10%) or more or
(ii) solely for purposes of Sections 3.10, 3.11 and 7.10(d), fifteen percent (15%) or more, of the Stock (either directly or through ownership of Stock Equivalents) of a Person shall for the purposes of this Agreement,
be deemed to be an Affiliate of the other Person. Notwithstanding the foregoing, neither GE Capital nor any L/C Issuer shall be deemed an “Affiliate” of any Applicant or of any Subsidiary of any Applicant solely by reason of the provisions
of the Credit Documents. 
 “Approved Fund” means any Person (other than a natural Person) that
(a) (i) is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the Ordinary Course of Business or (ii) temporarily warehouses loans for GE Capital or any
Person described in clause (i) above and (b) is advised or managed by (i) GE Capital, (ii) any Affiliate of GE Capital or (iii) any Person (other than an individual) or any Affiliate of any Person (other than an
individual) that administers or manages GE Capital. 
 “Assignment” means an assignment agreement entered into
by an L/C Issuer, as assignor, and any Person, as assignee, pursuant to the terms and provisions of Section 7.9 (with the consent of any party whose consent is required by Section 7.9), substantially in the form of Exhibit
9.1 or any other form approved by GE Capital. 
 “Attorney Costs” means and includes all reasonable fees
and disbursements of any law firm or other external counsel. 
 “Bankruptcy Code” means the Federal Bankruptcy
Reform Act of 1978 (11 U.S.C. §101, et seq.). 
 “Base Rate” means, for any day, a rate per annum equal to
the highest of (a) the rate last quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the
Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by GE
Capital) or any similar release by the Federal Reserve Board (as determined by GE Capital) and (b) the sum of 0.50% per annum and the Federal Funds Rate. Any change in the Base Rate due to a change in any of the foregoing shall be
effective on the effective date of such change in the Federal Funds Rate. 

  
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 “Benefit Plan” means any employee benefit plan as defined in
Section 3(3) of ERISA (whether governed by the laws of the United States or otherwise) to which any Applicant incurs or otherwise has any obligation or liability, contingent or otherwise. 

“Business Day” means any day other than a Saturday, Sunday or other day on which federal reserve banks are authorized or
required by law to close. 
 “Capital Adequacy Regulation” means any guideline, request or directive of any
central bank or other Governmental Authority, or any other law, rule or regulation, whether or not having the force of law, in each case, regarding capital adequacy of GE Capital or any other L/C Issuer or of any corporation controlling such Person.

 “Capital Lease” means any leasing or similar arrangement which, in accordance with GAAP, is classified as a
capital lease. 
 “Cash Collateral Account” means that certain account of GE Capital, account number 50-279-513
in the name of GE Capital at Deutsche Bank Trust Company Americas in New York, New York, ABA No. 021-001-033, or such other account as may be specified in writing by GE Capital as the “Cash Collateral Account.” 

“Capital Lease Obligations” means all monetary obligations of any Applicant or any Subsidiary of any Applicant under any
Capital Leases. 
 “Cash Equivalents” means (a) any readily-marketable securities (i) issued by, or
directly, unconditionally and fully guaranteed or insured by the United States federal government or (ii) issued by any agency of the United States federal government the obligations of which are fully backed by the full faith and credit of the
United States federal government, (b) any readily-marketable direct obligations issued by any other agency of the United States federal government, any state of the United States or any political subdivision of any such state or any public
instrumentality thereof, in each case having a rating of at least “A-1” from S&P or at least “P-1” from Moody’s, (c) any commercial paper rated at least “A-1” by S&P or “P-1” by
Moody’s and issued by any Person organized under the laws of any state of the United States, (d) any Dollar-denominated time deposit, insured certificate of deposit, overnight bank deposit or bankers’ acceptance issued or accepted by
(i) any L/C Issuer or (ii) any commercial bank that is (A) organized under the laws of the United States, any state thereof or the District of Columbia, (B) “adequately capitalized” (as defined in the regulations of its
primary federal banking regulators) and (C) has Tier 1 capital (as defined in such regulations) in excess of $250,000,000 and (e) shares of any United States money market fund that (i) has substantially all of its assets invested
continuously in the types of investments referred to in clause (a), (b), (c) or (d) above with maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000,000 and (iii) has
obtained from either S&P or Moody’s the highest rating obtainable for money market funds in the United States; provided, however, that the maturities of all obligations specified in any of clauses (a), (b), (c) or
(d) above shall not exceed 365 days. 

  
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 “Change of Control” means the occurrence of any of the following:
(a) any person shall become the legal or beneficial owner of, or shall have acquired, pursuant to any Contractual Obligation or otherwise, control over the voting rights of 35% or more of the issued and outstanding Voting Stock of the Parent;
(b) the first day on which a majority of the members of the board of directors of the Parent are not Continuing Directors; or (c) the Parent shall cease to own and control legally and beneficially all of the economic and voting rights
associated with all classes of the outstanding Stock of the other Applicants. For purpose of this definition, the following terms shall have the following meanings: (x) “person” means any “person” as such term is used
in the United States Securities Exchange Act of 1934, as amended, including any partnership, limited partnership, syndicate or group of persons that is deemed to be a “person” for purposes of Sections 13(d) and 14(d)(2) of such Securities
Exchange Act, (y) “beneficial owner” means any “beneficial owner” under and as defined in Rules 13d-3 and 13d-5 of the United States Securities and Exchange Commission under such Securities Exchange Act;
provided, however, that any person shall be deemed to be the beneficial owner of all Voting Stock that such person has the right to acquire, whether such right is exercisable immediately or with the passage of time and
(z) “continuing director” means, at any date of determination, each individual member of the board of directors of the Parent who (i) has been a member of such board in the period of twelve (12) successive calendar
months last ended prior to such date or (ii) whose nomination for election or appointment by the stockholders of the Parent was approved by a vote of at least two thirds of the directors who were continuing directors at the time of such
nomination. 
 “Closing Date” means June 14, 2013. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Competitor” means each of the Persons that is an actual competitor of the Applicants and that has been designated as
such in writing by the Lead Applicant and provided to GE Capital. 
 “Compliance Certificate” means a
certificate of the Lead Applicant, on behalf of each Applicant, in substantially the form of Exhibit 4.2(b) hereto, duly completed as of the applicable date under subsection 4.2(b). 

“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that
Person: (a) with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee
of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto;
(b) with respect to any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (c) under any Rate Contracts; (d) to make take-or-pay or similar payments if
required regardless of nonperformance by any other party or parties to an agreement; or (e) for the obligations of another Person through 

  
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any agreement to purchase, repurchase or otherwise acquire such obligation or any Property constituting security therefor, to provide funds for the payment or discharge of such obligation or to
maintain the solvency, financial condition or any balance sheet item or level of income of another Person. The amount of any Contingent Obligation shall be equal to the amount of the obligation so guaranteed or otherwise supported or, if not a fixed
and determined amount, the maximum amount so guaranteed or supported. 
 “Continuing Directors” means, as of
any date of determination, those members of the board of directors of the Parent, each of whom (a) was a member of such board of directors on the Closing Date or (b) was nominated for election or elected to such board of directors with the
approval of a majority of the then Continuing Directors who were members of such board of directors at the time of such nomination or election. 
 “Contractual Obligations” means, as to any Person, any provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or
other instrument, document or agreement to which such Person is a party or by which it or any of its Property is bound. 

“Credit Documents” means this Agreement, the Fee Letter, the Master Agreement for Standby Letters of Credit, the
Master Agreement for Documentary Letters of Credit, any L/C Reimbursement Agreements and all other documents delivered to GE Capital or any L/C Issuer in connection with any of the foregoing.  

“Credit Limit” means, as of any time of determination thereof, the sum of (i) $15,000,000 less (ii) the
aggregate amount then available to be drawn under the GECB Letters of Credit. 
 “Default” means any event or
circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured or otherwise remedied during such time) constitute an Event of Default. 
 “Dollars”, “dollars” and “$” each mean lawful money of the United States of America. 

“Domestic Subsidiary” means any Subsidiary other than a Foreign Subsidiary. 

“Electronic Transmission” means each document, instruction, authorization, file, information and any other communication
transmitted, posted or otherwise made or communicated by e-mail or E-Fax, or otherwise to or from an E-System or other equivalent service acceptable to GE Capital. 
 “Excluded Tax” means with respect to GE Capital or any other L/C Issuer (a) taxes measured by gross income, net income (including branch profits taxes) and franchise taxes imposed in
lieu of net income taxes, in each case imposed on such Person as a result of a present or former connection between such Person, on the one hand, and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or
taxing authority thereof or therein, on the other hand (other than such 

  
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connection arising solely such Person having executed, delivered or performed its obligations or received a payment under, or enforced, any Credit Document); (b) withholding taxes to the
extent that the obligation to withhold amounts existed on the date that such Person became a party to or an “L/C Issuer” under this Agreement in the capacity under which such Person makes a claim under Section 8.1(b) or
designates a new Lending Office; (c) taxes that are directly attributable to the failure (other than as a result of a change in any Requirement of Law) by such Person to deliver the documentation required to be delivered pursuant to
Section 8.1(f), and (d) in the case of a Non-U.S L/C Issuer Party, any United States federal withholding taxes imposed on amounts payable to such Non-U.S. L/C Issuer Party as a result of such Non-U.S. L/C Issuer Party’s failure
to comply with FATCA to establish a complete exemption from withholding thereunder. 
 “E-Fax” means any system
used to receive or transmit faxes electronically. 
 “EPCRS” means the Employee Plans Compliance Resolution
System, as described in Revenue Procedure 2008-50, or such successor Benefit Plan correction program. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“ERISA Affiliate” means, collectively, any Applicant and any Person under common control or treated as a single employer
with, any Applicant, within the meaning of Section 414(b), (c), (m) or (o) of the Code. 
 “ERISA
Event” means any of the following: (a) the occurrence of a reportable event described in Section 4043(b) or Section 4043(c) of ERISA with respect to a Title IV Plan or Multiemployer Plan, unless the 30-day notice requirement
has been duly waived under the applicable regulations; (b) the withdrawal of any ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in
Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal of any ERISA Affiliate from any Multiemployer Plan; (d) with respect to any Multiemployer Plan, the receipt by any ERISA Affiliate of notice of the filing of a notice
of reorganization, insolvency or termination (or treatment of a plan amendment as termination) under Section 4041A of ERISA; (e) the filing of a notice of intent to terminate a Title IV Plan (or treatment of a plan amendment as
termination) under Section 4041 of ERISA; (f) the receipt by any ERISA Affiliate of notice of the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (g) the failure to make any required
contribution of any ERISA Affiliate to any Title IV Plan or Multiemployer Plan when due; (h) the imposition of a lien under Section 412 or 430(k) of the Code or Section 303 or 4068 of ERISA on any property (or rights to property,
whether real or personal) of any ERISA Affiliate; (i) the failure of a Benefit Plan or any trust thereunder intended to qualify for tax exempt status under Section 401 or 501 of the Code or other Requirements of Law to qualify thereunder
(excluding, solely for purposes of this clause (i), plan document or operational failures that are eligible for correction 

  
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under EPCRS and are promptly corrected pursuant to EPCRS); (j) a Title IV plan is in “at risk” status within the meaning of Code Section 430(i); (k) receipt by any ERISA
Affiliate of notice that a Multiemployer Plan is in “endangered status” or “critical status” within the meaning of Section 432(b) of the Code; (l) receipt by any ERISA Affiliate of notice of the institution of
proceedings by the PBGC to terminate or appoint a trustee or administrator in respect of any Multiemployer Plan; and (m) any other event or condition that might reasonably be expected to constitute grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of any material liability upon any ERISA Affiliate under Title IV of ERISA other than for PBGC premiums due but not
delinquent. 
 “E-Signature” means the process of attaching to or logically associating with an Electronic
Transmission an electronic symbol, encryption, digital signature or process (including the name or an abbreviation of the name of the party transmitting the Electronic Transmission) with the intent to sign, authenticate or accept such Electronic
Transmission. 
 “E-System” means any electronic system approved by GE Capital, including
Intralinks® and ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by GE Capital, any of its Related Persons or any other
Person, providing for access to data protected by passcodes or other security system. 
 “FATCA” means sections
1471, 1472, 1473 and 1474 of the Code, the United States Treasury Regulations promulgated thereunder and published guidance with respect thereto. 
 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System
arranged by Federal Funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that if no such rate is so published on such next succeeding Business Day, the Federal Funds
Rate for such day shall be the average rate quoted to GE Capital on such day on such transactions as determined by GE Capital in a commercially reasonable manner. 
 “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any entity succeeding to any of its principal functions. 

“Fee Letter” means that certain Fee Letter, dated as of the Closing Date, made by the Applicants in favor of GE Capital.

 “First Tier Foreign Subsidiary” means a Foreign Subsidiary held directly by an Applicant or indirectly by an
Applicant through one or more Domestic Subsidiaries. 

  
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 “Fiscal Quarter” means any of the quarterly accounting periods of the
Applicants, ending on the Saturday nearest the last day of each of April, July, October and January of each year. 

“Fiscal Year” means any of the annual accounting periods of the Applicants ending on the Saturday nearest to the 31st
day of January of each year. 
 “Foreign Subsidiary” means, with respect to any Person, a Subsidiary of such
Person that is a “controlled foreign corporation” under Section 957 of the Code. 
 “GAAP” means
generally accepted accounting principles in the United States set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the accounting profession), which are applicable to the circumstances as of the date of determination, subject
to Section 9.3 hereof. 
 “GECB Letters of Credit” means each of the letters of credit issued prior
to the Closing Date under the Prior Credit Agreement and described by issuer, date of issuance, letter of credit number, undrawn amount and date of expiry on Schedule B hereto, including any modifications, extensions or renewals of any GECB
Letter of Credit. 
 “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other
entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing. 
 “Inactive
Subsidiary” means, at any time of determination, any Subsidiary that does not own or lease assets having an aggregate fair market value of equal to or greater than One Thousand Dollars ($1,000), as of the Closing Date each of which is
identified on Schedule C. 
 “Indebtedness” of any Person means, without duplication: (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or assumed as the deferred purchase price of Property or services (other than trade payables entered into in the Ordinary Course of Business); (c) the face amount of
all letters of credit issued for the account of such Person and without duplication, all drafts drawn thereunder and all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments issued by
such Person; (d) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of Property, assets or businesses; (e) all indebtedness created
or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to Property acquired by the Person (even 

  
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though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such Property); (f) all Capital Lease Obligations;
(g) the principal balance outstanding under any synthetic lease, off-balance sheet loan or similar off balance sheet financing product; (h) all obligations, whether or not contingent, to purchase, redeem, retire, defease or otherwise
acquire for value any of its own Stock or Stock Equivalents (or any Stock or Stock Equivalent of a direct or indirect parent entity thereof) prior to the date that is 180 days after the Maturity Date, valued at, in the case of redeemable preferred
Stock, the greater of the voluntary liquidation preference and the involuntary liquidation preference of such Stock plus accrued and unpaid dividends; (i) all indebtedness referred to in clauses (a) through (h) above
secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in Property (including accounts and contracts rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such indebtedness; and (j) all Contingent Obligations described in clause (a) of the definition thereof in respect of indebtedness or obligations of others of the kinds referred to in
clauses (a) through (i) above. 
 “Insolvency Proceeding” means (a) any case,
action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of
creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each case in (a) and (b) above, undertaken under U.S. Federal,
state or foreign law, including the Bankruptcy Code. 
 “IRS” means the Internal Revenue Service of the United
States and any successor thereto. 
 “Issue” means, with respect to any Letter of Credit, to issue, extend the
expiration date of, renew (including by failure to object to any automatic renewal on the last day such objection is permitted), increase the face amount of, or reduce or eliminate any scheduled decrease in the face amount of, such Letter of Credit,
or to cause any Person to do any of the foregoing. The terms “Issued” and “Issuance” have correlative meanings. 
 “L/C Issuer” means GE Capital or an Affiliate thereof or a bank or other legally authorized Person, in each case, reasonably acceptable to GE Capital, in such Person’s capacity as an
issuer of Letters of Credit hereunder. 
 “L/C Reimbursement Obligation” means, for any Letter of Credit, the
obligation of the Applicants to the L/C Issuer thereof or to GE Capital (as applicable), as and when matured, to pay all amounts drawn under such Letter of Credit. 
 “Lending Office” means, with respect to GE Capital or any other L/C Issuer, the office or offices of such Person specified as its “Lending Office” beneath its name on the
applicable signature page hereto, or such other office or offices of such Person as it may from time to time notify the Lead Applicant and GE Capital. 

  
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 “Letter of Credit” means documentary or standby letters of credit Issued
for the account of the Applicants by the L/C Issuers, and bankers’ acceptances Issued by an Applicant, for which GE Capital has incurred Letter of Credit Obligations. 
 “Letter of Credit Obligations” means all outstanding obligations incurred by GE Capital at the request of the Applicants or the Lead Applicant, whether direct or indirect, contingent or
otherwise, due or not due, in connection with the Issuance of Letters of Credit by the L/C Issuers. The amount of such Letter of Credit Obligations shall equal the maximum amount that may be payable by GE Capital thereupon or pursuant thereto and
shall not include any commitment of GE Capital or any L/C Issuer to Issue Letters of Credit. 
 “Liabilities”
means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions, charges, disbursements and expenses, in each case of any kind or nature (including
interest accrued thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or
otherwise. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit
arrangement, encumbrance, easement, lien (statutory or otherwise), security interest or other security arrangement and any other preference, priority or preferential arrangement of any kind or nature whatsoever, including those created by, arising
under or evidenced by any conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing.

 “Margin Stock” means “margin stock” as such term is defined in Regulation T, U or X of the Federal
Reserve Board. 
 “Material Adverse Effect” means: (a) a material adverse change in, or a material
adverse effect upon, the operations, business, Properties, condition (financial or otherwise) or prospects of any Applicant or the Applicants and their Subsidiaries taken as a whole; (b) a material impairment of the ability of any Applicant,
any Subsidiary of any Applicant or any other Person (other than the GE Capital or any other L/C Issuers) to perform in any material respect its obligations under any Credit Document; or (c) a material adverse effect upon (i) the legality,
validity, binding effect or enforceability of any Credit Document, or (ii) the perfection or priority of GE Capital’s security interests hereunder in the Cash Collateral.  

“Maturity Date” means the date that is the earlier to occur of (a) the fourth anniversary of the Closing Date,
(b) the voluntary termination of this Agreement by the Applicants by ten (10) days’ prior written notice to GE Capital (or such shorter notice as shall be acceptable to GE Capital) and (c) the Salus Indebtedness Termination Date.

  
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 “Multiemployer Plan” means any multiemployer plan, as defined in
Section 3(37) or 4001(a)(3) of ERISA, as to which any ERISA Affiliate incurs or otherwise has any obligation or liability, contingent or otherwise. 
 “Non-U.S. L/C Issuer Party” means each L/C Issuer that is not a United States person as defined in Section 7701(a)(30) of the Code. 

“Obligations” means all Indebtedness, advances, debts, liabilities, obligations, covenants and duties owing by any
Applicant to GE Capital, any other L/C Issuer or any other Person required to be indemnified, that arises under any Credit Document, whether or not for the payment of money, whether arising by reason of the Issuance of a Letter of Credit or a
guaranty, indemnification or in any other manner, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising and however acquired. 

“Ordinary Course of Business” means, in respect of any transaction involving any Person, the ordinary course of such
Person’s business, as conducted by any such Person in accordance with past practice and undertaken by such Person in good faith and not for purposes of evading any covenant or restriction in any Credit Document. 

“Organization Documents” means, (a) for any corporation, the certificate or articles of incorporation, the bylaws,
any certificate of determination or instrument relating to the rights of preferred shareholders of such corporation and any shareholder rights agreement, (b) for any partnership, the partnership agreement and, if applicable, certificate of
limited partnership, (c) for any limited liability company, the operating agreement and articles or certificate of formation or (d) any other document setting forth the manner of election or duties of the officers, directors, managers or
other similar persons, or the designation, amount or relative rights, limitations and preference of the Stock of a Person. 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, P.L. 107-56, as amended. 
 “PBGC” means the United States Pension Benefit
Guaranty Corporation any successor thereto. 
 “Person” means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture or Governmental Authority. 
 “Prior Credit Agreement” means the Credit Agreement, dated as of May 26, 2011, among the Applicants, the other Credit Parties party thereto, and GE Capital as Agent, Lender, L/C
Issuer and Swingline Lender, as such agreement may have been amended, supplemented or otherwise modified from time to time. 

  
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 “Prior Indebtedness” means all Loans, L/C Reimbursement Obligations and
other Obligations arising under (and as such terms are defined in) the Prior Credit Agreement, but excluding the L/C Reimbursement Obligations and other Obligations under the Prior Credit Agreement relating to the GECB Letters of Credit. 

“Prior Lender” means GE Capital. 
 “Property” means any interest in any kind of property or asset, whether real, personal or mixed, and whether tangible or intangible. 

“Rate Contracts” means swap agreements (as such term is defined in Section 101 of the Bankruptcy Code) and any
other agreements or arrangements designed to provide protection against fluctuations in interest or currency exchange rates. 

“Related Persons” means, with respect to any Person, each Affiliate of such Person and each director, officer, employee,
agent, trustee, representative, attorney, accountant and each insurance, environmental, legal, financial and other advisor (including those retained in connection with the satisfaction or attempted satisfaction of any condition set forth in
Article II) and other consultants and agents of or to such Person or any of its Affiliates. 
 “Requirement of
Law” means, as to any Person, any law (statutory or common), ordinance, treaty, rule, regulation, order, policy, other legal requirement or determination of an arbitrator or of a Governmental Authority, in each case applicable to or binding
upon such Person or any of its Property or to which such Person or any of its Property is subject. 
 “Responsible
Officer” means the chief executive officer or the president of an Applicant or the Lead Applicant, as applicable, or any other officer having substantially the same authority and responsibility; or, with respect to compliance with financial
covenants or delivery of financial information, the chief financial officer or the treasurer of an Applicant or the Lead Applicant, as applicable, or any other officer having substantially the same authority and responsibility. 

“Rollover Letters of Credit” means each of the letters of credit issued prior to the Closing Date under the Prior Credit
Agreement and described by issuer, date of issuance, letter of credit number, undrawn amount and date of expiry on Schedule D hereto, including any modifications, extensions or renewals of any Rollover Letter of Credit. 

“Salus Indebtedness Termination Date” means the date upon which each of the following shall occur: (a) the payment
in full in cash of the principal and interest on all indebtedness outstanding under that certain Credit Agreement, dated as of June 14, 2013, among the Lead Applicant and certain of its Subsidiaries party thereto from time to time, the lenders
party thereto from time to time, and Salus Capital Partners, LLC, as administrative agent and collateral agent, as amended or otherwise modified from time to time; (b) the payment in full in cash of all other obligations that are due and
payable or 

  
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otherwise accrued and owing at or prior to the time such principal and interest are paid (other than contingent indemnification obligations to the extent no claim giving rise thereto has been
asserted); and (c) the termination or expiration of all commitments, if any, to extend credit under such Credit Agreement. 

“Solvent” means, with respect to any Person as of any date of determination, that, as of such date, (a) the value
of the assets of such Person (both at fair value and present fair saleable value) is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person, (b) such Person is able to pay all liabilities
of such Person as such liabilities mature and (c) such Person does not have unreasonably small capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in
light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 “Stock” means all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership or membership interests, joint venture
interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting. 

“Stock Equivalents” means all securities convertible into or exchangeable for Stock or any other Stock Equivalent and
all warrants, options or other rights to purchase, subscribe for or otherwise acquire any Stock or any other Stock Equivalent, whether or not presently convertible, exchangeable or exercisable. 

“Subsidiary” of a Person means any corporation, association, limited liability company, partnership, joint venture or
other business entity of which more than fifty percent (50%) of the voting Stock, is owned or controlled directly or indirectly by the Person, or one or more of the Subsidiaries of the Person, or a combination thereof. 

“Tax Affiliate” means, (a) each Applicant and its Subsidiaries and (b) any Affiliate of an Applicant with
which such Applicant files or is required to file tax returns on a consolidated, combined, unitary or similar group basis. 

“Title IV Plan” means a pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA, other than
a Multiemployer Plan, to which any ERISA Affiliate incurs or otherwise has any obligation or liability, contingent or otherwise. 
 “Transfer of Liability for Letters of Credit” means that certain Transfer of Liability for Letters of Credit, dated as of even date herewith, by and among GE Capital Bank, GE Capital and
each of the Applicants party thereto. 
 “UCC” means the Uniform Commercial Code as in effect from time to time
in the State of New York. 
 “United States” and “U.S.” each means the United States of
America. 

  
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 “U.S. L/C Issuer Party” means each L/C Issuer that is a United States
person as defined in Section 7701(a)(30) of the Code. 
 “Voting Stock” means Stock of any Person having
ordinary power to vote in the election of members of the board of directors, managers, trustees or other controlling Persons, of such Person (irrespective of whether, at the time, Stock of any other class or classes of such entity shall have or
might have voting power by reason of the occurrence of any contingency). 
 “Wholly-Owned Subsidiary” means any
Subsidiary in which (other than directors’ qualifying shares required by law) one hundred percent (100%) of the Stock and Stock Equivalents, at the time as of which any determination is being made, is owned, beneficially and of record, by
any Applicant, or by one or more of the other Wholly-Owned Subsidiaries, or both. 
 9.2 Other Interpretive Provisions.

 (a) Defined Terms. Unless otherwise specified herein or therein, all terms defined in this Agreement or in any other
Credit Document shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto. The meanings of defined terms shall be equally applicable to the singular and plural forms of the defined terms. Terms
(including uncapitalized terms) not otherwise defined herein and that are defined in the UCC shall have the meanings therein described. 
 (b) The Agreement. The words “hereof”, “herein”, “hereunder” and words of similar import when used in this Agreement or any other Credit Document shall refer to this
Agreement or such other Credit Document as a whole and not to any particular provision of this Agreement or such other Credit Document; and subsection, section, schedule and exhibit references are to this Agreement or such other Credit Documents
unless otherwise specified. 
 (c) Certain Common Terms. The term “documents” includes any and all instruments,
documents, agreements, certificates, indentures, notices and other writings, however evidenced. The term “including” is not limiting and means “including without limitation.” 

(d) Performance; Time. Whenever any performance obligation hereunder or under any other Credit Document (other than a payment
obligation) shall be stated to be due or required to be satisfied on a day other than a Business Day, such performance shall be made or satisfied on the next succeeding Business Day. In the computation of periods of time from a specified date to a
later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means “to and including.” If any
provision of this Agreement or any other Credit Document refers to any action taken or to be taken by any Person, or which such Person is prohibited from taking, such provision shall be interpreted to encompass any and all means, direct or indirect,
of taking, or not taking, such action. 

  
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 (e) Contracts. Unless otherwise expressly provided herein or in any other Credit
Document, references to agreements and other contractual instruments, including this Agreement and the other Credit Documents, shall be deemed to include all subsequent amendments, thereto, restatements and substitutions thereof and other
modifications and supplements thereto which are in effect from time to time, but only to the extent such amendments and other modifications are not prohibited by the terms of any Credit Document. 

(f) Laws. References to any statute or regulation are to be construed as including all statutory and regulatory provisions related
thereto or consolidating, amending, replacing, supplementing or interpreting the statute or regulation. 
 9.3 Accounting
Terms and Principles. All accounting determinations required to be made pursuant hereto shall, unless expressly otherwise provided herein, be made in accordance with GAAP. All financial statements, Compliance Certificates and similar documents
provided hereunder shall be provided together with a reconciliation between the calculations and amounts set forth therein before and after giving effect to any change in GAAP. Notwithstanding any other provision contained herein, all terms of an
accounting or financial nature used herein shall be construed without giving effect to any election under Accounting Standards Codification 825-10 (or any other Financial Accounting Standard having a similar result or effect) to value any
Indebtedness or other liabilities of any Applicant or any Subsidiary of any Applicant at “fair value.” 
 9.4
Payments. GE Capital may set up standards and procedures to determine or redetermine the equivalent in Dollars of any amount expressed in any currency other than Dollars and otherwise may, but shall not be obligated to, rely on any
determination made by any Applicant or any other L/C Issuer. Any such determination or redetermination by GE Capital shall be conclusive and binding for all purposes, absent manifest error. No determination or redetermination by any Applicant or any
other L/C Issuer and no other currency conversion shall change or release any obligation of any Applicant or any other L/C Issuer (other than GE Capital and its Related Persons) under any Credit Document, each of which agrees to pay separately for
any shortfall remaining after any conversion and payment of the amount as converted. GE Capital may round up or down, and may set up appropriate mechanisms to round up or down, any amount hereunder to nearest higher or lower amounts and may
determine reasonable de minimis payment thresholds. 
 [Signature Pages Follow.] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
and delivered by their duly authorized officers as of the day and year first above written. 
  

	
	APPLICANTS:
	
	DELIA*S, INC.
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DELIA*S DISTRIBUTION COMPANY
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	ALLOY MERCHANDISE, LLC
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DELIA*S OPERATING COMPANY
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DELIA*S RETAIL COMPANY
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	AMG DIRECT, LLC
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer

  
 DELIA*S, INC.

 LETTER OF CREDIT AGREEMENT 
 SIGNATURE PAGE 

Table of Contents

 
	
	DELIA*S GROUP INC.
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DELIA*S BRAND LLC
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DACCS, INC.
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	DELIA*S ASSETS CORP.
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	
	 Address for notices:

dELiA*s, Inc.
 50 W. 23rd Street
 New York, New York 10010
 Attn: Marc Schuback

Facsimile: (212) 590-6310

  

  
 DELIA*S, INC.

 LETTER OF CREDIT AGREEMENT 
 SIGNATURE PAGE 

Table of Contents

 
	
	LEAD APPLICANT:
	
	DELIA*S, INC.
	
	By: /s/ David J.
Dick                                         
       
	Name: David J. Dick
	Title: Chief Financial Officer and Treasurer
	  
 Address for notices:

dELiA*s, Inc.
 50 W. 23rd Street
 New York, New York 10010
 Attn: Marc Schuback

Facsimile: (212) 590-6310
  

Address for wire transfers:
 JPMorgan Chase Bank,
N.A.
 270 Park Ave, 42nd Floor
 New
York, NY 10017

  
 DELIA*S, INC.

 LETTER OF CREDIT AGREEMENT 
 SIGNATURE PAGE 

Table of Contents

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
and delivered by their duly authorized officers as of the day and year first above written 
  

	
	GENERAL ELECTRIC CAPITAL CORPORATION
	
	By: /s/ Nicole M.
Cipriani                        
	 Name: Nicole M. Cipriani

Title: Duly Authorized Signatory

	
	Address for Notices:
	
	 General Electric Capital Corporation
 201 Merritt 7
 Norwalk, CT 06851
 Attn: dELiA*s Account Manager
 Facsimile: (203) 956-4098

 
 With copies to:

 
 General Electric Capital Corporation

10 Riverview Drive
 Danbury, CT 06810

Attn: Mark O’Leary
 Facsimile:
(203) 749-4562
  
 General Electric Capital Corporation

201 Merritt 7
 Norwalk, CT 06851

Attn: John Pistocchi
 Facsimile:
(203) 956-4098
  
 McGuireWoods LLP

1230 Peachtree Street N.E.
 Atlanta, GA
30309-3534
 Attention: Hilary P. Jordan, Esq.
 Facsimile (404) 443-5690
  

Address for payments:
  
 ABA No. 021-001-033
 Account Number 50279513

Deutsche Bank Trust Company Americas
 New York,
New York
 Account Name: General Electric Capital
 Corporation
 Reference: CFK1596/dELiA’s, Inc.

  
 DELIA*S, INC.

 LETTER OF CREDIT AGREEMENT 
 SIGNATURE PAGE 

Table of Contents

 SCHEDULE A 

Applicants 

DELIA*S, INC. 
 DELIA*S DISTRIBUTION
COMPANY 
 ALLOY MERCHANDISE, LLC 
 DELIA*S OPERATING COMPANY 
 DELIA*S RETAIL COMPANY 

AMG DIRECT, LLC 
 DELIA*S GROUP INC.

 DELIA*S BRAND LLC 

DACCS, INC. 
 DELIA*S ASSETS CORP.

Table of Contents

 SCHEDULE B 

GECB Letters of Credit 
  

															
	 Issuer
	  	Issuance Date	 	  	L/C Number	  	Amount	 	  	Expiry Date	 
	 GE Capital Bank
	  	 	2/13/2013	  	  	AS0022669U	  	$	600,000	  	  	 	9/30/2013	  
	 GE Capital Bank
	  	 	2/28/2012	  	  	AS0010265	  	$	300,000	  	  	 	12/31/2013	  

Table of Contents

 SCHEDULE C 

Inactive Subsidiaries 
 None. 

Table of Contents

 SCHEDULE D 

Rollover Letters of Credit 
  

											
	 Issuer
	  	Issuance Date	  	L/C Number	  	Amount	 	  	Expiry Date
	 General Electric Capital Corporation
	  	10/30/2001	  	NZS417370	  	$	1,500,000.00	  	  	12/31/2013
	 General Electric Capital Corporation
	  	10/30/2001	  	NZS417371	  	$	4,500,000.00	  	  	12/31/2013
	 General Electric Capital Corporation
	  	8/9/2004	  	NZS900622	  	$	250,000.00	  	  	12/31/2013
	 General Electric Capital Corporation
	  	8/9/2006	  	NZS902794	  	$	1,146,175.73	  	  	3/31/2014
	 General Electric Capital Corporation
	  	10/8/2010	  	NZS906617	  	$	300,000.00	  	  	12/31/2013
	 General Electric Capital Corporation
	  	3/16/2011	  	SC0102803U	  	$	2,000,000.00	  	  	12/31/2013
	 General Electric Capital Corporation
	  	5/9/2013	  	IC0311054G	  	$	65,722.50	  	  	7/31/2013
	 General Electric Capital Corporation
	  	5/9/2013	  	IC0311056G	  	$	67,768.69	  	  	7/31/2013

Table of Contents

 SCHEDULE 3.5 

Litigation 
 1.
GeoTag, Inc. v. Delias, Inc.; U.S. District Court, Eastern District of Texas; Case No. 2:12cv00454 (severed from previous lawsuit captioned GeoTag, Inc. v. Circle K Stores, Inc., et al; Case No. 2:11cv00405). On September 13,
2011, GeoTag, Inc. (“GeoTag”) sued Circle K Stores, Inc. in the U.S. District Court for the Eastern District of Texas for patent infringement of U.S. Patent No. 5,930,474. GeoTag filed an Amended Complaint on October 25,
2011, adding dELiA*s, Inc., along with 54 other defendants, to the lawsuit. On August 14, 2012, the Court severed the lawsuit into individual cases against each defendant. The Court subsequently consolidated virtually all of the
GeoTag cases pending in the Eastern District of Texas, including the case against dELiA*s, Inc., for all pretrial matters. Discovery is on-going in the case and the trial is currently scheduled for early December 2013. 

2. Vanida Shuller v. dELiA*s Retail Company, Circuit Court of Cook County, Illinois, County Department, Law Division
(No.: 13L001683). This is a customer accident in one of our stores. This matter is fully covered by insurance. 
 3. United
Fabrics v. dELiA*s, Inc.; Entry, Inc.; A’Gaci, LLC, et. al., United States District Court Central District of California (CV 12-02858). This is a copyright infringement action based on a fabric pattern allegedly used in material for a
dress sold by dELiA*s. This matter is still being investigated and is expected to be covered by our vendor or insurance company. 

Table of Contents

 SCHEDULE 3.8 

Ventures, Subsidiaries and Affiliates; Outstanding Stock 

 

							
	 Name
	  	 Record

Member/Owner
	  	Types of Interest Held
by Record
Owner/Member	  	State of
Incorporation
	 dELiA*s Assets Corp.
	  	dELiA*s, Inc.	  	100 Shares	  	Delaware
				
	 Alloy Merchandise, LLC
	  	dELiA*s, Inc.	  	Membership Interest	  	Delaware
				
	 DACCS, Inc.
	  	dELiA*s, Inc.	  	100 Shares	  	Ohio
				
	 dELiA*s Group, Inc.
	  	dELiA*s Assets Corp. (formerly dELiA*s Corp.)	  	1,000 Shares	  	Delaware
				
	 dELiA*s Brand LLC
	  	dELiA*s Assets Corp.	  	Membership Interest	  	Delaware
				
	 dELiA*s Operating Company
	  	dELiA*s Group, Inc. (formerly dELiA*s Inc.)	  	100 Shares	  	Delaware
				
	 dELiA*s Distribution Company
	  	dELiA*s Group, Inc. (formerly dELiA*s Inc.)	  	100 Shares	  	Delaware
				
	 dELiA*s Retail Company
	  	dELiA*s Group, Inc. (formerly dELiA*s Inc.)	  	100 Shares	  	Delaware
				
	 AMG Direct, LLC
	  	dELiA*s Operating Company	  	Membership Interest	  	Delaware

Table of Contents

  
 

 

Table of Contents

 SCHEDULE 3.9 

Jurisdiction of Organization; Chief Executive Office 

 

									
	 Name of
 Company
	  	 Type of

Organization
	  	 Jurisdiction of

Organization
	  	 Organizational

Identification

Number
	  	 Address of Chief

Executive Office

	 dELiA*s, Inc.
	  	Corporation	  	Delaware	  	3764172	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Distribution Company
	  	Corporation	  	Delaware	  	2765579	  	348 Poplar Street, Hanover, PA 17331
					
	 Alloy Merchandise, LLC
	  	Limited Liability Company	  	Delaware	  	3588203	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Operating Company
	  	Corporation	  	Delaware	  	2765574	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Retail Company
	  	Corporation	  	Delaware	  	2785335	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Assets Corp.
	  	Corporation	  	Delaware	  	2782683	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Group Inc.
	  	Corporation	  	Delaware	  	2661121	  	 50 West
23rd Street

New York, NY 10010

					
	 dELiA*s Brand LLC
	  	Limited Liability Company	  	Delaware	  	3622401	  	 50 West
23rd Street

New York, NY 10010

					
	 AMG Direct, LLC
	  	Limited Liability Company	  	Delaware	  	3803968	  	 50 West
23rd Street

New York, NY 10010

					
	 DACCS, Inc.
	  	Corporation	  	Ohio	  	1741826	  	 50 West
23rd Street

New York, NY 10010

 Prior Names 
  

			
	 Date of Change
	  	 Description of Change

	 June 27, 2011
	  	Droog, Inc. merged into dELiA*s Group Inc.
		
	 June 14, 2011
	  	GFLA, Inc. merged into dELiA*s, Inc.
		
	 June 14, 2011
	  	OG Restructuring, Inc. merged into dELiA*s, Inc.

Table of Contents

			
	 Date of Change
	  	 Description of Change

		
	 June 27, 2011
	  	dELiA*s Japan Company merged into dELiA*s Group Inc.
		
	 June 27, 2011
	  	dELiA*s Properties, Inc. merged into dELiA*s Group Inc.
		
	 June 27, 2011
	  	TSI Retail Company merged into dELiA*s Group Inc.
		
	 June 27, 2011
	  	SCREEM! Inc. merged into dELiA*s Group Inc.
		
	 June 27, 2011
	  	SBH Restructuring Corp. merged into dELiA*s Group Inc.
		
	 June 27, 2011
	  	TSI Promotional Company merged into dELiA*s Group Inc.
		
	 July 7, 2011
	  	iTurf Finance Company merged into dELiA*s Assets Corp.
		
	 June 14, 2011
	  	Skate Direct, LLC merged into dELiA*s, Inc.
		
	 June 14, 2011
	  	DC Restructuring, LLC merged into dELiA*s, Inc.
		
	 June 27, 2011
	  	dELiA*s Delaware Company merged into dELiA*s Group Inc.

Table of Contents

 SCHEDULE 3.14 

Closing Date Tax Audits/Examinations 
 None. 

Table of Contents

 EXHIBIT 1.1(a) 
 TO 
 LETTER OF CREDIT AGREEMENT 

FORM OF L/C REQUEST 

[NAME OF L/C ISSUER], as L/C Issuer 
 under the
Letter of Credit Agreement referred to below 

                    , 20__

 Re: dELiA*s, Inc. (the “Lead Applicant”) 

Reference is made to the Letter of Credit Agreement, dated as of June 14, 2013 (as the same may be amended, restated, supplemented
or otherwise modified from time to time, the “Letter of Credit Agreement”), among the Lead Applicant, the other Applicants from time to time party thereto, General Electric Capital Corporation (“GE Capital”), as an
L/C Issuer, and each of the other L/C Issuers from time to time party thereto. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Letter of Credit Agreement. 

The Lead Applicant, on behalf of the Applicants, hereby gives you notice, irrevocably, pursuant to Section 1.1(a) of the
Letter of Credit Agreement, of its request for your Issuance of a Letter of Credit, in a form satisfactory to GE Capital, for the benefit of [Name of Beneficiary], in the amount of
$            , to be Issued on             ,
             (the “Issue Date”) with an expiration date of             ,
            . 
 The undersigned hereby certifies that,
except as set forth on Schedule A attached hereto, the following statements are true on the date hereof and will be true on the Issue Date, both before and after giving effect to the Issuance of the Letter of Credit requested above and any
other Letter of Credit to be Issued on or before the Issue Date: 
 (i) the representations and warranties set
forth in Article III of the Letter of Credit Agreement and elsewhere in the Credit Documents are true and correct in all material respects (without duplication of any materiality qualifier contained therein), except to the extent such
representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such
earlier date; 
 (ii) no Default or Event of Default has occurred and is continuing; and 

(iii) the Applicants have deposited immediately available funds into the Cash Collateral Account in an amount equal to
105% of the original stated amount of the Letter of Credit requested above. 
 [Signature follows.] 

  
 1 

Table of Contents

 
			
	DELIA*S, INC., as the Lead Applicant
		
	By:	 	 
		 	 Name:

Title:

  
 DELIA*S, INC.

 L/C REQUEST DATED _____________, ____ 
 SIGNATURE PAGE 

Table of Contents

 EXHIBIT 2.1 
 TO 
 LETTER OF CREDIT AGREEMENT 

Dated as of June 14, 2013 
 by and among 
 DELIA*S, INC., 

as the Lead Applicant, 
 THE OTHER APPLICANTS PARTY THERETO FROM TIME TO TIME, 
 and

 GENERAL ELECTRIC CAPITAL CORPORATION 
 **************************************** 

Table of Contents

 Set forth below is a Closing Checklist, which lists documents and information delivered in
connection with the Letter of Credit Agreement (“Letter of Credit Agreement”) listed herein as Document No. 1, the other Credit Documents and the transactions contemplated thereunder. Each capitalized term used but not defined
herein shall have the meaning ascribed to such term in the Letter of Credit Agreement and all section references herein are to Sections of the Letter of Credit Agreement, unless otherwise indicated. All documents are dated as of June 14, 2013
unless otherwise indicated. 
 I. PARTIES 

 

					
	 A.
	  	GE Capital — General Electric Capital Corporation, a Delaware corporation
		
	 B.
	  	Lead Applicant — dELiA*s, Inc., a Delaware corporation
			
	 C.
	  	Applicants –	  	dELiA*s, Inc., a Delaware corporation
		  		  	 Alloy Merchandise, LLC, a Delaware limited liability company

		  		  	 dELiA*s Operating Company, a Delaware corporation

		  		  	 dELiA*s Distribution Company, a Delaware corporation

		  		  	 dELiA*s Retail Company, a Delaware corporation

		  		  	 dELiA*s Assets Corp., a Delaware corporation

		  		  	 DACCS, Inc., an Ohio corporation

		  		  	 AMG Direct, LLC, a Delaware limited liability company

		  		  	 dELiA*s Brand LLC, a Delaware limited liability company

		  		  	 dELiA*s Group Inc., a Delaware corporation

 II. COUNSEL TO PARTIES  

 

			
	 A.
	  	MW — McGuireWoods LLP, counsel to GE Capital
		
	 B.
	  	TS — Troutman Sanders LLP, counsel to the Applicants

Table of Contents

					
	 Action or Document
	  	 Responsibility
	  	 Executed by

	 PRINCIPAL CREDIT DOCUMENTS

			
	 1.      Letter of Credit Agreement
	  	MW	  	 Applicants

GE Capital

			
	 Schedules
	  	—	  	—
			
	 (i) Schedule A – Applicants
	  	Applicants	  	—
			
	 (ii) Schedule B – GECB Letters of Credit
	  	Applicants	  	—
			
	 (iii) Schedule C – Inactive Subsidiaries
	  	Applicants	  	—
			
	 (iv) Schedule D – Rollover Letters of Credit
	  	Applicants	  	—
			
	 (v) Schedule 3.5 – Litigation
	  	Applicants	  	—
			
	 (vi) Schedule 3.8 – Ventures, Subsidiaries and Affiliates; Outstanding Stock
	  	Applicants	  	—
			
	 (vii) Schedule 3.9 – Jurisdiction of Organization; Chief Executive Office
	  	Applicants	  	—
			
	 (viii) Schedule 3.14 – Closing Date Tax Audits/Examinations
	  	Applicants	  	—
			
	 Exhibits
	  	—	  	—
			
	 (i) Exhibit 1.1(a) – Form of L/C Request
	  	MW	  	—
			
	 (ii) Exhibit 2.1 – Closing Checklist
	  	MW	  	—
			
	 (iii) Exhibit 4.2(b) – Form of Compliance Certificate
	  	MW	  	—
			
	 (iv) Exhibit 9.1 – Form of Assignment
	  	MW	  	—
			
	 2.      Master Agreement for Standby Letters of Credit
	  	MW	  	 Applicants
 GE
Capital

  
 1 

Table of Contents

					
	 Action or Document
	  	 Responsibility
	  	 Executed by

			
	 3.      Master Agreement for Documentary Letters of Credit
	  	MW	  	 Applicants
 GE
Capital

			
	 4.      Fee Letter
	  	MW	  	 Applicants
 GE
Capital

			
	 CORPORATE AND ORGANIZATIONAL DOCUMENTS
	  		  	
			
	 5.      Certificates from secretary or assistant secretary of dELiA*s, Inc., certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) bylaws, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of
dELiA*s, Inc. executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s, Inc.
			
	 6.      Certificates from secretary or assistant secretary of Alloy Merchandise, LLC, certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) operating agreement, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of
the officers of Alloy Merchandise, LLC executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	Alloy Merchandise, LLC
			
	 7.      Certificates from secretary or assistant secretary of DACCS, Inc., certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) bylaws, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of
DACCS, Inc. executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	DACCS, Inc.

  
 2 

Table of Contents

					
	 Action or Document
	  	 Responsibility
	  	 Executed by

			
	 8.      Certificates from secretary or assistant secretary of dELiA*s Operating Company, certifying
to (a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) bylaws, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of dELiA*s
Operating Company executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Operating Company
			
	 9.      Certificates from secretary or assistant secretary of dELiA*s Distribution Company,
certifying to (a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) bylaws, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of
the officers of dELiA*s Distribution Company executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Distribution Company
			
	 10.    Certificates from secretary or assistant secretary of dELiA*s Retail Company, certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) bylaws, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of
dELiA*s Retail Company executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Retail Company
			
	 11.    Certificates from secretary or assistant secretary of AMG Direct, LLC, certifying to (a) articles
of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) operating agreement, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of AMG
Direct, LLC executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	AMG Direct, LLC

  
 3 

Table of Contents

					
	 Action or Document
	  	 Responsibility
	  	 Executed by

			
	 12.    Certificates from secretary or assistant secretary of dELiA*s Brand LLC, certifying to (a) articles of
incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) operating agreement, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of the officers of dELiA*s Brand LLC
executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Brand LLC
			
	 13.    Certificates from secretary or assistant secretary of dELiA*s Group Inc., certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) operating agreement, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of
the officers of dELiA*s Group Inc. executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Group Inc.
			
	 14.    Certificates from secretary or assistant secretary of dELiA*s Assets Corp., certifying to
(a) articles of incorporation, and all amendments thereto, certified by the secretary of the state of incorporation, (b) operating agreement, and all amendments thereto, (c) resolutions and (d) the incumbency and signatures of
the officers of dELiA*s Assets Corp. executing the Letter of Credit Agreement and the other Credit Documents.
	  	TS	  	dELiA*s Assets Corp.
			
	 15.    Certificates of good standing, foreign qualification to do business (or foreign equivalent thereof) of
the Applicants from the secretary of state indicated on Exhibit A
	  	TS	  	—-
			
	 MISCELLANEOUS CLOSING DOCUMENTS
	  		  	
			
	 16. Transfer of Liability (regarding certain Rollover L/Cs)
	  	MW	  	 GE Capital Bank
 GE
Capital
 Applicants

  
 4 

Table of Contents

					
	 Action or Document
	  	 Responsibility
	  	 Executed by

	
	 DEBT REPAYMENT DOCUMENTS

			
	 17.    Payoff Letter executed and delivered by GE Capital
	  	TS	  	 Applicants

GE Capital

			
	 18.    UCC3 Terminations
	  	MW	  	—
			
	 19.    Deposit Account Control Agreement Terminations
	  	MW	  	 Applicants
 JPMC

GE Capital

			
	 20.    Securities Account Control Agreement Termination
	  	MW	  	 Applicants
 Wells
Fargo
 GE Capital

			
	 21.    Termination of Credit Card Agreements from Chase Paymentech
	  	MW	  	 Applicants
 Chase

GE Capital

			
	 22.    Release of Security Interest in Trademarks
	  	MW	  	GE Capital
			
	 23.    Satisfaction of Mortgage
	  	MW	  	GE Capital
			
	 OPINION OF COUNSEL
	  		  	
			
	 24.    Opinion of TS
	  	TS	  	TS

  
 5 

Table of Contents

 EXHIBIT A 

GOOD STANDING CERTIFICATES AND FOREIGN QUALIFICATIONS TO DO BUSINESS 

 

			
	 ENTITY
	  	 JURISDICTIONS

		
	 dELiA*s, Inc.
	  	 Delaware
 New
York

		
	 Alloy Merchandise, LLC
	  	 Delaware
 New
York
 Ohio
 Pennsylvania

Virginia

		
	 DACCS, Inc.
	  	Ohio
		
	 dELiA*s Operating Company
	  	 Delaware

Louisiana
 Ohio

Pennsylvania
 California

		
	 dELiA*s Distribution Company
	  	 Delaware

Pennsylvania

		
	 dELiA*s Retail Company
	  	 Delaware
 Alabama

Arizona
 California

Connecticut
 Florida

Georgia
 Illinois

Indiana
 Iowa

Kansas
 Louisiana

Maine
 Maryland

Massachusetts

  
 6 

Table of Contents

			
		
		  	 Michigan

Minnesota
 Missouri

New Jersey
 New York

North Carolina
 Ohio

Pennsylvania
 Rhode Island

South Carolina
 Tennessee

Texas
 Virginia

Washington
 West Virginia

Wisconsin

		
	 AMG Direct, LLC
	  	 Delaware

Ohio

		
	 dELiA*s Brand LLC
	  	Delaware
		
	 dELiA*s Group Inc.
	  	 Delaware

Pennsylvania

		
	 dELiA*s Assets Corp. (dELiA*s Corp.)
	  	 Delaware

Pennsylvania

  
 7 

Table of Contents

 EXHIBIT 4.2(b) 
 TO 
 LETTER OF CREDIT AGREEMENT 

COMPLIANCE CERTIFICATE 
 DELIA*S, INC. 
 Date:
            , 201_ 
 This Compliance Certificate (this
“Certificate”) is given by DELIA*S, INC., a Delaware corporation (the “Parent”), in its capacity as the “Lead Applicant”, pursuant to subsection 4.2(b) of that certain Letter of Credit
Agreement, dated as of June 14, 2013, among the Parent and each of the other Persons party thereto as “Applicants”, GENERAL ELECTRIC CAPITAL CORPORATION (“GE Capital”), as an L/C Issuer, and each of the other
L/C Issuers from time to time party thereto (as such agreement may be amended, restated, supplemented or otherwise modified from time to time, the “Letter of Credit Agreement”). Capitalized terms used herein without definition shall
have the meanings set forth in the Letter of Credit Agreement. 
 The officer executing this Certificate is a Responsible
Officer of the Lead Applicant and as such is duly authorized to execute and deliver this Certificate on behalf of the Applicants. By executing this Certificate, such officer hereby certifies to GE Capital and each other L/C Issuer, on
behalf of the Applicants, that: 
 (a) the financial statements delivered with this Certificate in accordance with subsection
4.1(a), 4.1(b) and/or 4.1(c) of the Letter of Credit Agreement are correct and complete and fairly present, in all material respects, in accordance with GAAP the financial position and the results of operations of the Parent and
its Subsidiaries as of the dates of and for the periods covered by such financial statements (subject, in the case of interim financial statements, to normal year-end adjustments and the absence of footnote disclosure); 

(b) to the best of such officer’s knowledge, each Applicant and each of their Subsidiaries, during the period covered by such
financial statements, has observed and performed all of their respective covenants and other agreements in the Letter of Credit Agreement and the other Credit Documents to be observed or performed by them, and such officer does not have knowledge of
any Default or Event of Default [except as specified on the written attachment hereto]; and 
 (c) since the Closing Date
and except as disclosed in prior Certificates delivered to GE Capital, no Applicant has: 
 (i) changed its legal name,
identity, jurisdiction of incorporation, organization or formation or organizational structure or formed or acquired any Subsidiary except as follows:
                                         
               ; 
 (ii) merged or consolidated
with or into, any Person, except as follows:
                                         
                   ; or 

(iii) changed its address or otherwise relocated, except as follows:
                                         
                   . 

[Remainder of page intentionally blank; signatures follow.] 

Table of Contents

 IN WITNESS WHEREOF, the Lead Applicant has caused this Certificate to be executed by one of
its Responsible Officers this              day of                  201_. 

 

			
	DELIA*S, INC.
		
	By:	 	 
	Name:	 	 
	Its:	 	 

  
 DELIA*S, INC.

 COMPLIANCE CERTIFICATE 
 SIGNATURE PAGE 

Table of Contents

 EXHIBIT 9.1 
 TO 
 LETTER OF CREDIT AGREEMENT 

FORM OF ASSIGNMENT 
 This ASSIGNMENT, dated as of the Effective Date, is entered into between                  (“the
Assignor”) and                  (“the Assignee”). 
 The parties hereto hereby agree as follows: 
  

			
	 Applicants:
	  	dELiA*s, Inc., a Delaware corporation (the “Lead Applicant”), Alloy Merchandise, LLC, a Delaware limited liability company, DACCS, Inc., an Ohio corporation, dELiA*s
Operating Company, Inc., a Delaware corporation, dELiA*s Distribution Company, Inc., a Delaware corporation, dELiA*s Retail Company, a Delaware corporation, AMG Direct, LLC, a Delaware limited liability company, dELiA*s Brand LLC, a Delaware limited
liability company and dELiA*s Group, Inc., a Delaware corporation (together, the “Applicants”)
		
	 GE Capital:
	  	General Electric Capital Corporation (“GE Capital”)
		
	 Letter of Credit

Agreement:
	  	Letter of Credit Agreement, dated as of June 14, 2013, among the Lead Applicant, each of the other Applicants party thereto from time to time, GE Capital, as an L/C Issuer, and
each of the other L/C Issuers party thereto from time to time (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Letter of Credit Agreement”; capitalized terms used herein without
definition are used as defined in the Letter of Credit Agreement)
		
	 [Trade Date:
	  	_________, ____]1
		
	 Effective Date:
	  	_________, ____2

  

	1 	Insert for informational purposes only if needed to determine other arrangements between the assignor and the assignee. 

	2 	To be filled out by GE Capital upon entry in the Register. 

Table of Contents

					
	 Aggregate amount of

L/C Reimbursement

Obligations for all L/C
 Issuers5
	  	 Aggregate amount of

L/C Reimbursement

Obligations Assigned3
	  	 Percentage Assigned4

	 $_________
	  	$_________	  	__.____%
	 $_________
	  	$_________	  	__.____%
	 $_________
	  	$_________	  	__.____%

 [THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK] 

 

	3 	Amount to be adjusted by the counterparties to take into account any payments made between the Trade Date and the Effective Date. The aggregate amounts are inserted for
informational purposes only to help in calculating the percentages assigned which, themselves, are for informational purposes only. 

	4 	Set forth, to at least 9 decimals, the Assigned Interest as a percentage of the aggregate L/C Reimbursement Obligations. This percentage is set forth for informational
purposes only and is not intended to be binding. The assignments are based on the amounts assigned not on the percentages listed in this column. 

  
 DELIA*S, INC.

 ASSIGNMENT 

Table of Contents

 Section 1. Assignment. Assignor hereby sells and assigns to Assignee, and
Assignee hereby purchases and assumes from Assignor, Assignor’s rights and obligations in its capacity as an L/C Issuer under the Letter of Credit Agreement (including Liabilities owing to or by Assignor thereunder) and the other Credit
Documents, in each case to the extent related to the amounts identified above (the “Assigned Interest”). 
 Section 2. Representations, Warranties and Covenants of Assignors. Assignor (a) represents and warrants to Assignee that (i) it has full power and authority, and has taken all
actions necessary for it, to execute and deliver this Assignment and to consummate the transactions contemplated hereby and (ii) it is the legal and beneficial owner of its Assigned Interest and that such Assigned Interest is free and clear of
any Lien and other adverse claims and (iii) by executing, signing and delivering this assignment via
ClearPar® or any other electronic settlement system designated by GE Capital, the Person signing, executing and
delivering this Assignment on behalf of the Assignor is an authorized signatory for the Assignor and is authorized to execute, sign and deliver this Agreement, (b) makes no other representation or warranty and assumes no responsibility,
including with respect to the aggregate amount of the L/C Reimbursement Obligations, the percentage of the L/C Reimbursement Obligations represented by the amounts assigned, any statements, representations and warranties made in or in connection
with any Credit Document or any other document or information furnished pursuant thereto, the execution, legality, validity, enforceability or genuineness of any Credit Document or any document or information provided in connection therewith and the
existence, nature or value of the Cash Collateral and (c) assumes no responsibility (and makes no representation or warranty) with respect to the financial condition of any Applicant or the performance or nonperformance by any Applicant of any
obligation under any Credit Document or any document provided in connection therewith. 

Section 3. Representations, Warranties and Covenants of Assignees. Assignee (a) represents
and warrants to Assignor that (i) it has full power and authority, and has taken all actions necessary for Assignee, to execute and deliver this Assignment and to consummate the transactions contemplated hereby, (ii) it is [not] an
Affiliate or an Approved Fund of GE Capital, (iii) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest assigned to it hereunder and either Assignee or the Person exercising discretion
in making the decision for such assignment is experienced in acquiring assets of such type and (iv) by executing, signing and delivering this Assignment via ClearPar® or any other electronic settlement system designated by GE Capital, the Person signing, executing and delivering this Assignment on behalf of the Assignor is an
authorized signatory for the Assignor and is authorized to execute, sign and deliver this Agreement, (b) appoints and authorizes GE Capital to take such action on its behalf and to exercise such powers under the Credit Documents as are
delegated to GE Capital by the terms thereof, together with such powers as are reasonably incidental thereto, (c) shall perform in accordance with their terms all obligations that, by the terms of the Credit Documents, are required to be
performed by it as an L/C Issuer, (d) confirms it has received such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and shall continue to make its own credit
decisions in taking or not taking any action under any Credit Document independently and without reliance upon GE Capital, any other L/C Issuer or any other Indemnitee and based on such documents and information as it shall deem appropriate at the
time, (e) acknowledges and agrees that, as an L/C Issuer, it may receive material non-public information and confidential 

  
 DELIA*S, INC.

 ASSIGNMENT 

Table of Contents

 
information concerning the Applicants and their Affiliates and their Stock and agrees to use such information in accordance with Section 7.10 of the Letter of Credit Agreement,
(f) specifies as its applicable lending offices (and addresses for notices) the offices at the addresses set forth beneath its name on the signature pages hereof and (g) to the extent required pursuant to Section 8.1(f) of the
Letter of Credit Agreement, attaches two completed originals of Forms W-8ECI, W-8BEN, W-8IMY or W-9 and, if applicable, a portfolio interest exemption certificate. 
 Section 4. Determination of Effective Date; Register. Following the due execution and delivery of this Assignment by Assignor, Assignee and, to the extent required by
Section 7.9 of the Letter of Credit Agreement, the Lead Applicant, this Assignment (including its attachments) will be delivered to GE Capital for its acceptance and recording in the Register. The effective date of this Assignment (the
“Effective Date”) shall be the later of (i) the acceptance of this Assignment by GE Capital and (ii) the recording of this Assignment in the Register. GE Capital shall insert the Effective Date when known in the space
provided therefor at the beginning of this Assignment. 
 Section 5. Effect. As of the Effective Date,
(a) Assignee shall be a party to the Letter of Credit Agreement and, to the extent provided in this Assignment, have the rights and obligations of an L/C Issuer under the Letter of Credit Agreement and (b) Assignor shall, to the extent
provided in this Assignment, relinquish its rights (except those surviving the termination of the obligations to Issue Letters of Credit and the payment in full of the Obligations) and be released from its obligations under the Credit Documents
other than those obligations relating to events and circumstances occurring prior to the Effective Date. 

Section 6. Distribution of Payments. On and after the Effective Date, GE Capital shall make all payments under the
Credit Documents in respect of each Assigned Interest (a) in the case of amounts accrued to but excluding the Effective Date, to Assignor and (b) otherwise, to Assignee. 

Section 7. Miscellaneous. (a) The parties hereto, to the extent permitted by law, waive all right to trial by
jury in any action, suit, or proceeding arising out of, in connection with or relating to, this Assignment and any other transaction contemplated hereby. This waiver applies to any action, suit or proceeding whether sounding in tort, contract or
otherwise. 
 (b) On and after the Effective Date, this Assignment shall be binding upon, and inure to the benefit of, the
Assignor, Assignee, GE Capital and their Related Persons and their successors and assigns. 
 (c) THIS ASSIGNMENT SHALL BE
GOVERNED BY, AND BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 (d) This Assignment may
be executed in any number of counterparts and by different parties 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. 

(e) Signature pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed
signature page of this Assignment by facsimile transmission or Electronic Transmission shall be as effective as delivery of a manually executed counterpart of this Assignment. 

  
 DELIA*S, INC.

 ASSIGNMENT 

Table of Contents

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

			
	 [NAME OF ASSIGNOR]
 as Assignor

		
	By:	 	 
		 	 Name:

Title:

	
	 [NAME OF ASSIGNEE]
 as Assignee

		
	By:	 	 
		 	 Name:

Title:

	
	 Lending Office:
  

[Insert Address (including contact name, fax number and e-mail address)]

  
 DELIA*S, INC.

 ASSIGNMENT 
 SIGNATURE PAGE 

Table of Contents

 ACCEPTED and AGREED 
 this              day of             : 

GENERAL ELECTRIC CAPITAL CORPORATION 
  

			
	By:	 	 
		 	 Name:

Title:

  

			
	 [DELIA*S, INC.,
 as
the Lead Applicant]7

		
	By:	 	 
		 	 Name:

Title:

  

	7	Include only if required pursuant to Section 7.9 of the Letter of Credit Agreement. 

  
 DELIA*S, INC.

 ASSIGNMENT 
 SIGNATURE PAGEEX-4.1

 Exhibit 4.1 

 
 PAIN THERAPEUTICS, INC. 

and 

COMPUTERSHARE SHAREOWNER SERVICES LLC 
 AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT 
 Dated as of June
20, 2013 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	Section 1.	  	 Certain Definitions
	  	 	1	  
	Section 2.	  	 Appointment of Rights Agent
	  	 	8	  
	Section 3.	  	 Issuance of Rights Certificates
	  	 	8	  
	Section 4.	  	 Form of Rights Certificates
	  	 	10	  
	Section 5.	  	 Countersignature and Registration
	  	 	11	  
	Section 6.	  	 Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates
	  	 	11	  
	Section 7.	  	 Exercise of Rights; Exercise Price; Expiration Date of Rights
	  	 	12	  
	Section 8.	  	 Cancellation and Destruction of Rights Certificates
	  	 	14	  
	Section 9.	  	 Reservation and Availability of Preferred Shares
	  	 	14	  
	Section 10.	  	 Record Date
	  	 	16	  
	Section 11.	  	 Adjustment of Exercise Price, Number of Shares or Number of Rights
	  	 	16	  
	Section 12.	  	 Certificate of Adjusted Exercise Price or Number of Shares
	  	 	22	  
	Section 13.	  	 Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	  	 	23	  
	Section 14.	  	 Fractional Rights and Fractional Shares
	  	 	26	  
	Section 15.	  	 Rights of Action
	  	 	28	  
	Section 16.	  	 Agreement of Rights Holders
	  	 	28	  
	Section 17.	  	 Rights Certificate Holder Not Deemed a Stockholder
	  	 	29	  
	Section 18.	  	 Concerning the Rights Agent
	  	 	29	  
	Section 19.	  	 Merger or Consolidation or Change of Name of Rights Agent
	  	 	30	  
	Section 20.	  	 Duties of Rights Agent
	  	 	30	  
	Section 21.	  	 Change of Rights Agent
	  	 	32	  
	Section 22.	  	 Issuance of New Rights Certificates
	  	 	33	  
	Section 23.	  	 Redemption
	  	 	34	  
	Section 24.	  	 Exchange
	  	 	34	  
	Section 25.	  	 Notice of Certain Events
	  	 	37	  
	Section 26.	  	 Notices
	  	 	37	  
	Section 27.	  	 Supplements and Amendments
	  	 	38	  
	Section 28.	  	 Successors
	  	 	38	  
	Section 29.	  	 Determinations and Actions by the Board of Directors, etc
	  	 	39	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 

							
	 	  	 	  	Page	 
	Section 30.	  	 Benefits of this Agreement
	  	 	39	  
	Section 31.	  	 Severability
	  	 	39	  
	Section 32.	  	 Governing Law
	  	 	39	  
	Section 33.	  	 Counterparts
	  	 	39	  
	Section 34.	  	 Descriptive Headings
	  	 	40	  

  

			
	EXHIBITS	  	  
	Exhibit A	  	Form of Certificate of Designation
	Exhibit B	  	Form of Rights Certificate
	Exhibit C	  	Summary of Rights

  
 -ii-

 AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT 

This Amended and Restated Preferred Stock Rights Agreement (the “Agreement”) is dated as of June 20, 2013,
between Pain Therapeutics, Inc., a Delaware corporation, (the “Company”), and Computershare Shareowner Services LLC (f/k/a Mellon Investor Services LLC) (the “Rights Agent”). 

On April 28, 2005, (the “Rights Dividend Declaration Date”), the Board of Directors of the Company
authorized and declared a dividend of one Preferred Share Purchase Right (a “Right”) for each Common Share (as hereinafter defined) of the Company outstanding as of the Close of Business (as hereinafter defined) on
May 12, 2005 (the “Record Date”), each Right representing the right to purchase one one-thousandth (0.001) of a share of Series A Participating Preferred Stock (as such number may be adjusted pursuant to the provisions
of this Agreement), having the rights, preferences and privileges set forth in the form of Certificate of Designations of Rights, Preferences and Privileges of Series A Participating Preferred Stock attached hereto as Exhibit A, upon the terms and
subject to the conditions herein set forth, and further authorized and directed the issuance of one Right (as such number may be adjusted pursuant to the provisions of this Agreement) with respect to each Common Share that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the Expiration Date (as such terms are hereinafter defined), and in certain circumstances after the Distribution Date. 

On April 28, 2005, the Company and Mellon Investor Services LLC entered into the Preferred Stock Rights Agreement (the
“Original Agreement”). 
 On May 11, 2013, the Board of directors authorized certain amendments to be made to the
Original Agreement as set forth herein. 
 NOW, THEREFORE, in consideration of the promises and the mutual agreements herein set
forth, the parties hereby agree as follows: 
 Section 1. Certain Definitions. For purposes of this Agreement, the following terms
have the meanings indicated: 
 (a) “Acquiring Person” shall mean any Person, who or which, together with
all Affiliates and Associates of such Person, shall be the Beneficial Owner of 15% or more of the Common Shares then outstanding, but shall not include the Company, any Subsidiary of the Company or any employee benefit plan of the Company or of any
Subsidiary of the Company, or any entity holding Common Shares for or pursuant to the terms of any such plan; provided, however, that Eastbourne Capital Management, LLC, and its affiliates (“Eastbourne”) shall
not be deemed an “Acquiring Person” until such time as it together with its respective affiliates shall be the Beneficial Owner of 20% or more of the Company’s Common Shares then outstanding. Notwithstanding the foregoing, no Person
shall be deemed to be an Acquiring Person as the result of an acquisition of Common Shares by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or
more of the Common Shares of the Company then outstanding (or with respect to Eastbourne and its affiliates, increases such number of shares to 20% or more of the Common Shares of the Company then outstanding); provided, however, that if a
Person shall become the Beneficial Owner of 15% or more of the Common Shares of the Company then outstanding (or 

  
 1 

 
with respect to Eastbourne and its affiliates, shall become the Beneficial Owner of 20% or more of the Common Shares of the Company then outstanding) by reason of share purchases by the Company
and shall, after such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in
Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be deemed to be an Acquiring Person unless upon becoming the Beneficial Owner of such additional Common Shares of the Company such Person
does not beneficially own 15% or more of the Common Shares of the Company then outstanding (or with respect to Eastbourne and its affiliates, does not beneficially own 20% or more of the Common Shares of the Company then outstanding).
Notwithstanding the foregoing, (i) if the Company’s Board of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a),
has become such inadvertently (including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of the Common Shares that would otherwise cause such Person to be an “Acquiring Person,” as
defined pursuant to the foregoing provisions of this paragraph (a), or (B) such Person was aware of the extent of the Common Shares it beneficially owned but had no actual knowledge of the consequences of such beneficial ownership under this
Agreement) and without any intention of changing or influencing control of the Company, and if such Person divested or divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then such Person shall not be deemed to be or to have become an “Acquiring Person” for any purposes of this Agreement including, without limitation
Section 1(hh) hereof; (ii) if, as of April 28, 2005, any Person is the Beneficial Owner of 15% or more of the Common Shares outstanding, (or with respect to Eastbourne and its affiliates, is the Beneficial Owner of 20% or more of the
Common Shares outstanding) such Person shall not be or become an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), unless and until such time as such Person shall become the Beneficial Owner of
additional Common Shares (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the outstanding Common Shares or upon the acquisition
of additional Common Shares in a transaction specifically designated as exempt for purposes of this Section 1(a) by the Board of Directors of the Company or pursuant to grants or awards under, or participation in, equity incentive plans or
other arrangements maintained by the Company for or on behalf of its employees, officers or other service providers or otherwise acquired directly from the Company), unless, upon becoming the Beneficial Owner of such additional Common Shares, such
Person is not then the Beneficial Owner of 15% or more of the Common Shares then outstanding (or with respect to Eastbourne and its affiliates, is not the Beneficial Owner of 20% or more of the Common Shares outstanding); and (iii) any Person
who becomes the Beneficial Owner of 15% or more of the then-outstanding Common Shares as a result of the acquisition of Common Shares (A) directly from the Company or (B) in one or more transactions approved by the Board of Directors.

 (b) “Adjustment Fraction” shall have the meaning set forth in Section 11(a)(i) hereof.

  
 2 

 (c) “Affiliate” and “Associate” shall have
the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this Agreement. 
 (d) A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities: 

(i) which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly,
for purposes of Section 13(d) of the Exchange Act and Rule 13d-3 thereunder (or any comparable or successor law or regulation); 
 (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to
any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange
rights, rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed pursuant to this Section 1(d)(ii)(A) to be the Beneficial Owner of, or to beneficially own,
(1) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, or
(2) securities which a Person or any of such Person’s Affiliates or Associates may be deemed to have the right to acquire pursuant to any merger or other acquisition agreement between the Company and such Person (or one or more of its
Affiliates or Associates) if such agreement has been approved by the Board of Directors of the Company prior to there being an Acquiring Person; or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this Section 1(d)(ii)(B) if the agreement, arrangement or understanding to vote such security (1) arises solely from a
revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations of the Exchange Act and (2) is not also then reportable on
Schedule 13D under the Exchange Act (or any comparable or successor report); 
 (iii) which are beneficially
owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding, whether or not in writing (other
than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to
Section 1(d)(ii)(B)) or disposing of any securities of the Company; provided, however, that in no case shall an officer or director of the Company be deemed (x) the Beneficial Owner of any securities beneficially owned by another
officer or director of the Company solely by reason of actions undertaken by such persons in their capacity as officers or directors of the Company or (y) the Beneficial Owner of securities held of record by the trustee of any employee benefit
plan of the Company or any Subsidiary of the Company for the benefit of any employee of the Company or any Subsidiary of the Company, other than the officer or director, by reason of any influence that such officer or director may have over the
voting of the securities held in the plan; or 
  

  
 3 

 (iv) in respect of which such Person or any of such Person’s Affiliates
or Associates has a Synthetic Long Position (as hereinafter defined). 
 (e) “Business Day” shall mean
any day other than a Saturday, Sunday or a federal holiday. 
 (f) “Close of Business” on any given date
shall mean 5:00 P.M., San Francisco, CA time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., San Francisco, CA time, on the next succeeding Business Day. 

(g) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 

(h) “Common Shares” when used with reference to the Company shall mean the shares of Common Stock of the Company,
par value at $0.001 per share. Common Shares when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary
of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
 (i)
“Company” shall mean Pain Therapeutics, Inc., a Delaware corporation, subject to the terms of Section 13(a)(iii)(C) hereof. 
 (j) “Current Per Share Market Price” of any security (a “Security” for purposes of this definition), for all computations other than those made pursuant to
Section 11(a)(iii) hereof, shall mean the average of the daily closing prices per share of such Security for the thirty (30) consecutive Trading Days immediately prior to, but not including such date, and for purposes of computations made
pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price of any Security on any date shall be deemed to be the average of the daily closing prices per share of such Security for the ten (10) consecutive Trading Days
immediately prior to, but not including such date; provided, however, that in the event that the Current Per Share Market Price of the Security is determined during a period following the announcement by the issuer of such Security of
(i) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares or (ii) any subdivision, combination or reclassification of such Security, and prior to the expiration of the
applicable thirty (30) Trading Day or ten (10) Trading Day period, after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the
Current Per Share Market Price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange
or, if the Security is not listed or admitted to trading on the New York Stock 

  
 4 

 
Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or
admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last sale price or, if such last sale price is not reported, the average of the high bid and low asked prices in the
over-the-counter market, as reported by Nasdaq or such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the Security selected by the Board of Directors of the Company. If on any such date no market maker is making a market in the Security, the fair value of such shares on such date as determined in good faith by the Board of
Directors of the Company shall be used. If the Preferred Shares are not publicly traded, the Current Per Share Market Price of the Preferred Shares shall be conclusively deemed to be (x) the Current Per Share Market Price of the Common Shares
as determined pursuant to this Section 1(j), as appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after April 28, 2005, multiplied by (y) 1,000. If the Security is not publicly held or
so listed or traded, Current Per Share Market Price shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall
be conclusive for all purposes. 
 (k) “Current Value” shall have the meaning set forth in
Section 11(a)(iii) hereof. 
 (l) “Distribution Date” shall mean the earlier of (i) the Close
of Business on the tenth (10th) Business Day (or such later date as may be determined by action of the Company’s Board of Directors) after the Shares Acquisition Date (or, if the tenth (10th) Business Day after the Shares Acquisition
Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the Close of Business on the tenth (10th) Business Day (or such later date as may be determined by action of the Company’s Board of Directors) after
the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person organized, appointed or established by the
Company for or pursuant to the terms of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if, assuming the successful consummation thereof, such Person
would be an Acquiring Person. 
 (m) “Equivalent Shares” shall mean Preferred Shares and any other class
or series of capital stock of the Company which is entitled to the same rights, privileges and preferences as the Preferred Shares. 
 (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (o) “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof. 
 (p) “Exercise Price” shall have the meaning set forth in Section 4(a) hereof. 
 (q) “Expiration Date” shall mean the earliest to occur of: (i) the Close of Business on the Final Expiration Date, (ii) the Redemption Date, or (iii) the time at
which the Board of Directors of the Company orders the exchange of the Rights as provided in Section 24 hereof. 

  
 5 

 (r) “Final Expiration Date” shall mean May 12, 2015.

 (s) “Nasdaq” shall mean The Nasdaq Stock Market LLC. 

(t) “Person” shall mean any individual, firm, limited liability company, corporation or other entity, and shall
include any successor (by merger or otherwise) of such entity. 
 (u) “Post-Event Transferee” shall have
the meaning set forth in Section 7(e) hereof. 
 (v) “Preferred Shares” shall mean shares of Series
A Participating Preferred Stock, par value $0.001 per share, of the Company. 
 (w) “Pre-Event
Transferee” shall have the meaning set forth in Section 7(e) hereof. 
 (x) “Principal
Party” shall have the meaning set forth in Section 13(b) hereof. 
 (y) “Record Date”
shall have the meaning set forth in the recitals at the beginning of this Agreement. 
 (z) “Redemption
Date” shall have the meaning set forth in Section 23(a) hereof. 
 (aa) “Redemption
Price” shall have the meaning set forth in Section 23(a) hereof. 
 (bb) “Rights
Agent” shall mean (i) Computershare Shareowner Services LLC, a New Jersey limited liability company (ii) its successor or replacement as provided in Sections 19 and 21 hereof or (iii) any additional Person appointed
pursuant to Section 2 hereof. 
 (cc) “Rights Certificate” shall mean a certificate substantially
in the form attached hereto as Exhibit B. 
 (dd) “Rights Dividend Declaration Date”
shall have the meaning set forth in the recitals at the beginning of this Agreement. 
 (ee) “Section 11(a)(ii)
Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (ff) “Section 13
Event” shall mean any event described in clause (i), (ii) or (iii) of Section 13(a) hereof. 
 (gg)
“Securities Act” shall mean the Securities Act of 1933, as amended. 
 (hh) “Shares
Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an
Acquiring Person that an Acquiring Person has become such; provided that, if such Person is determined not to have become an Acquiring Person pursuant to Section 1(a) hereof, then no Shares Acquisition Date shall be deemed to have occurred by
virtue of such event. 
 (ii) “Spread” shall have the meaning set forth in Section 11(a)(iii)
hereof. 

  
 6 

 (jj) “Subsidiary” of any Person shall mean any corporation or other
entity of which an amount of voting securities sufficient to elect a majority of the directors or Persons having similar authority of such corporation or other entity is beneficially owned, directly or indirectly, by such Person, or any corporation
or other entity otherwise controlled by such Person. 
 (kk) “Substitution Period” shall have the
meaning set forth in Section 11(a)(iii) hereof. 
 (ll) “Summary of Rights” shall mean a summary of
this Agreement as in effect on April 28, 2005 substantially in the form attached hereto as Exhibit C. 
 (mm)
“Synthetic Long Position” shall mean any option, warrant, convertible security, stock appreciation right, swap agreement or other contractual right, whether or not presently exercisable (whether or not depending on the
occurrence of certain events or the passage of time), which has an exercise or conversion privilege or a settlement payment or mechanism at a price related to Common Shares or a value determined in whole or part with reference to, or derived in
whole or in part from, the market price or value of Common Shares, and which increases in value as the value of Common Shares increases or which provides to the holder of such right an opportunity, directly or indirectly, to profit or share in any
profit derived from any increase in the value of Common Shares, in any case without regard to whether (x) such right conveys any voting rights in such securities to the holder thereof or any of such holder’s Affiliates or Associates or is
required to be, or is capable of being, settled in whole or in part through delivery of such securities, or (y) the holder thereof or any of such Person’s Affiliates or Associates may have entered into other transactions that hedge the
economic effect thereof, but shall not include: 
 (i) rights of a pledgee under a bona fide pledge of Common
Shares; 
 (ii) rights of all holders of Common Shares to receive Common Shares pro rata, or obligations to
dispose of Common Shares, as a result of a merger, exchange offer, or consolidation involving the Company; 

(iii) rights or obligations to surrender Common Shares, or have Common Stock withheld, upon the receipt or exercise of a
derivative security or the receipt or vesting of equity securities, in order to satisfy the exercise price or the tax withholding consequences of receipt, exercise or vesting; 

(iv) interests in broad-based index options, broad-based index futures, and broad-based publicly traded market baskets of
stocks approved for trading by the appropriate federal governmental authority; 
 (v) interests or rights to
participate in employee benefit plans of the Company held by employees or former employees of the Company; or 

(vi) options granted to an underwriter in a registered public offering for the purpose of satisfying over-allotments in
such offering. 

  
 7 

 The Common Shares in respect of which a Person has a Synthetic Long Position shall be the notional or other
number of Common Shares specified in a filing by such Person or any of such Person’s Affiliates or Associates with the Securities and Exchange Commission in respect of which Common Shares are the “subject security” or in the
documentation evidencing the Synthetic Long Position as being subject to be acquired upon the exercise or settlement of the applicable right or as the basis upon which the value or settlement amount of such right, or the opportunity of the holder of
such right to profit or share in any profit, is to be calculated in whole or in part or, if no such number of Common Shares is specified in any filing or documentation, as determined by the Board of Directors in good faith to be the number of Common
Shares to which the Synthetic Long Position relates. For purposes of this Agreement, in determining the percentage of the outstanding Common Shares with respect to which a Person is the Beneficial Owner, all shares as to which such Person is deemed
the Beneficial Owner shall be deemed outstanding. 
 (nn) “Total Exercise Price” shall have the meaning
set forth in Section 4(a) hereof. 
 (oo) “Trading Day” shall mean a day on which the principal
national securities exchange on which a referenced security is listed or admitted to trading is open for the transaction of business or, if a referenced security is not listed or admitted to trading on any national securities exchange, a Business
Day. 
 (pp) A “Triggering Event” shall be deemed to have occurred upon any Person becoming an Acquiring
Person. 
 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in
accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written
notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any co-Rights Agent. 
 Section 3. Issuance of Rights Certificates. 
 (a) Until the
Distribution Date, (i) the Rights will be evidenced (subject to the provisions of Sections 3(b) and 3(c) hereof) by the certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be
Rights Certificates) and not by separate Rights Certificates and (ii) the right to receive Rights Certificates will be transferable only in connection with the transfer of Common Shares. Until the earlier of the Distribution Date or the
Expiration Date, the surrender for transfer of certificates for Common Shares shall also constitute the surrender for transfer of the Rights associated with the Common Shares represented thereby. As soon as practicable after the Distribution Date,
the Company will promptly notify the Rights Agent thereof and prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information,
send) by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Rights Certificate evidencing one Right for
each Common Share so held, subject to adjustment 

  
 8 

 
as provided herein. In the event that an adjustment in the number of Rights per Common Share has been made pursuant to Section 11 hereof, then at the time of distribution of the Rights
Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of
any fractional Rights (in accordance with Section 14(a) hereof). As of the Distribution Date, the Rights will be evidenced solely by such Rights Certificates and may be transferred by the transfer of the Rights Certificates as permitted hereby,
separately and apart from any transfer of Common Shares, and the holders of such Rights Certificates as listed in the records of the Company or any transfer agent or registrar for the Rights shall be the record holders thereof. 

(b) On the Record Date or as soon as practicable thereafter, the Company will send a copy of the Summary of Rights by first-class,
postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Record Date, at the address of such holder shown on the records of the Company’s transfer agent and registrar. With respect to certificates for
Common Shares outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with the Summary of Rights. 

(c) Unless the Board of Directors of the Company by resolution adopted at or before the time of the issuance of any Common Shares after
the Record Date but prior to the earlier of the Distribution Date or the Expiration Date (or, in certain circumstances provided in Section 22 hereof, after the Distribution Date) specifies to the contrary, Rights shall be issued in respect of
all Common Shares that are so issued, and Certificates representing such Common Shares shall also be deemed to be certificates for Rights, and shall bear a legend in substantially the following form: 

THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN AN AMENDED AND RESTATED RIGHTS AGREEMENT BETWEEN PAIN
THERAPEUTICS, INC. AND COMPUTERSHARE SHAREOWNER SERVICES LLC, AS THE RIGHTS AGENT, DATED AS OF             , 2013 (THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH ARE HEREBY
INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF PAIN THERAPEUTICS, INC. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES
AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE
RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR
BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 

  
 9 

 With respect to such certificates containing the foregoing legend, until the earlier of the Distribution
Date or the Expiration Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of
the Rights associated with the Common Shares represented thereby. 
 (d) In the event that the Company purchases or acquires any
Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common
Shares which are no longer outstanding. 
 (e) Notwithstanding anything to the contrary contained herein, Company Common Shares
and Rights (and any securities issuable on their exercise) may be issued and transferred by book-entry and not represented by physical certificates. Where Company Common Shares and Rights (and any securities issuable on their exercise) are held in
uncertificated form, the Company and the Rights Agent shall cooperate in all respects to give effect to the intent of the provisions contained herein. 
 Section 4. Form of Rights Certificates. 
 (a) The Rights Certificates
(and the forms of election to purchase Common Shares and of assignment to be printed on the reverse thereof) shall be substantially in the form of Exhibit B hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not, without the Rights Agent’s consent, affect the rights, duties or responsibilities of the Rights Agent) and are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or a national market system, on which the Rights may from
time to time be listed or included, or to conform to usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date (or in the case of Rights issued
with respect to Common Shares issued by the Company after the Record Date, as of the date of issuance of such Common Shares) and on their face shall entitle the holders thereof to purchase such number of one-thousandths (0.001) of a Preferred Share
as shall be set forth therein at the price set forth therein (such exercise price per one one-thousandth (0.001) of a Preferred Share being hereinafter referred to as the “Exercise Price” and the aggregate Exercise Price of
all Preferred Shares issuable upon exercise of one Right being hereinafter referred to as the “Total Exercise Price”), but the number and type of securities purchasable upon the exercise of each Right and the Exercise Price
shall be subject to adjustment as provided herein. 
 (b) Any Rights Certificate issued pursuant to Section 3(a) or
Section 22 hereof that represents Rights beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a Post-Event Transferee, (iii) a Pre-Event Transferee or (iv) any subsequent
transferee receiving transferred Rights from a Post-Event Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof
upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent the Rights Agent has written notice thereof and feasible) the following legend: 

  
 10 

 THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR
BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES
SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT. 
 Section 5. Countersignature and Registration. 

(a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its
Chief Financial Officer, its President or any Vice President, either manually or by facsimile signature, and by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature, and shall have affixed thereto the
Company’s seal (if any) or a facsimile thereof. The Rights Certificates shall be countersigned by the Rights Agent, either manually or by facsimile signature, and shall not be valid for any purpose unless countersigned. In case any officer of
the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights Certificates on behalf of the Company had not ceased to be such officer of the Company; and any
Rights Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the
execution of this Rights Agreement any such person was not such an officer. 
 (b) Following the Distribution Date, and receipt
by the Rights Agent of written notice to that effect and any other necessary shareholder information requested by the Rights Agent, the Rights Agent will keep or cause to be kept, at its office designated for such purposes, books for registration
and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the date
of each of the Rights Certificates. 
 Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated,
Destroyed, Lost or Stolen Rights Certificates. 
 (a) Subject to the provisions of Sections 7(e), 14 and 24 hereof, at any
time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Rights Certificates may be transferred, split up, combined or exchanged for another Rights
Certificate or Rights Certificates, entitling the registered holder to purchase a like number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets, as the case may be) as the

  
 11 

 
Rights Certificate or Rights Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or
Rights Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Rights Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent designated
for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder shall have properly completed and signed
the certificate contained in the form of assignment on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent shall, subject to Sections 7(e), 14 and 24 hereof, countersign and deliver to the person entitled thereto a Rights Certificate or Rights Certificates, as
the case may be, as so requested registered in such name or names as may be designated by the surrendering registered holder. The Company may require payment from the registered holder of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates. 
 (b) Upon receipt by
the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at
the request of the Company or the Rights Agent, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the
Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. The Rights Agent shall have no duty or
obligation to take any action under Sections 6, 7, 9, 10 and 13 of this Agreement, which require payment by a holder of the Rights of applicable taxes and/or governmental charges, unless and until it is satisfied, in the absence of bad faith, that
all such taxes and/or governmental charges have been paid. 
 Section 7. Exercise of Rights; Exercise Price; Expiration Date of
Rights. 
 (a) Subject to Sections 7(e), 23(b) and 24(b) hereof, the registered holder of any Rights Certificate may exercise
the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date and prior to the Close of Business on the Expiration Date by surrender of the Rights Certificate, with the form of
election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Exercise Price for each one-thousandth (0.001) of a Preferred Share (or,
following a Triggering Event, other securities, cash or other assets as the case may be) as to which the Rights are exercised. 

(b) The Exercise Price for each one-thousandth (0.001) of a Preferred Share issuable pursuant to the exercise of a Right shall initially
be $40.00 (forty dollars), shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below. 

  
 12 

 (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of
election to purchase duly executed, accompanied by payment of the Exercise Price for the number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) to be
purchased and an amount equal to any applicable tax or charge required to be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly
(i) (A) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent for the Preferred Shares) a certificate or certificates for the number of one-thousandths (0.001) of a
Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests or (B) if the
Company shall have elected to deposit the total number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) issuable upon exercise of the Rights hereunder with
a depository agent, requisition from the depository agent depository receipts representing such number of one-thousandths (0.001) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) as
are to be purchased (in which case certificates for the Preferred Shares (or, following a Triggering Event, other securities, cash or other assets as the case may be) represented by such receipts shall be deposited by the transfer agent with the
depository agent) and the Company hereby directs the depository agent to comply with such request, (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) after receipt of such certificates or depository receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be
designated by such holder and (iv) when appropriate, after receipt thereof, deliver such cash to or upon the order of the registered holder of such Rights Certificate. The payment of the Exercise Price (as such amount may be reduced (including
to zero) pursuant to Section 11(a)(iii) hereof) and an amount equal to any applicable tax or charge required to be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, may be made in cash or by certified
bank check, cashier’s check or bank draft payable to the order of the Company. In the event that the Company is obligated to issue securities of the Company other than Preferred Shares, pay cash and/or distribute other property pursuant to
Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary. 

(d) In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights
Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Rights Certificate or to his or her duly authorized assigns, subject to the provisions of
Section 14 hereof. 
 (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence
of a Triggering Event, any Rights beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee
after the Acquiring Person becomes such (a “Post-Event Transferee”), (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring

  
 13 

 
Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring
Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Company’s Board of Directors has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e) (a “Pre-Event Transferee”) or (iv) any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees, shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights,
whether under any provision of this Agreement or otherwise. The Company shall notify the Rights Agent when this Section 7(e) applies and shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and
Section 4(b) hereof are complied with, but neither the Company or the Rights Agent shall have any liability to any holder of Rights Certificates or to any other Person as a result of failure of the Company to make any determinations with
respect to an Acquiring Person or any of such Acquiring Person’s Affiliates, Associates or transferees hereunder. 
 (f)
Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in
Section 7 unless such registered holder shall, in addition to having complied with the requirements of subsection 7(a), have (i) properly completed and duly signed the certificate contained in the form of election to purchase set forth on
the reverse side of the Rights Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the
Rights Agent shall reasonably request. 
 Section 8. Cancellation and Destruction of Rights Certificates. 

All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to
any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any Rights Certificate purchased or acquired by the Company otherwise than upon
the exercise thereof. The Rights Agent shall deliver all canceled Rights Certificates to the Company, or shall, at the written request of the Company, and after any Securities and Exchange Commission required retention period, destroy such canceled
Rights Certificates, and in such case shall deliver a certificate evidencing the destruction thereof to the Company. 
 Section 9.
Reservation and Availability of Preferred Shares. 
 (a) The Company covenants and agrees that it will use its best
efforts to cause to be reserved and kept available out of its authorized and unissued Preferred Shares not reserved for another purpose (and, following the occurrence of a Triggering Event, out of its authorized and unissued Common Shares and/or
other securities), the number of Preferred Shares (and, following the occurrence of the Triggering Event, Common Shares and/or other securities) that will be sufficient to permit the exercise in full of all outstanding Rights. 

  
 14 

 (b) If the Company shall hereafter list any of its Preferred Shares on a national securities
exchange, then so long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable and deliverable upon exercise of the Rights may be listed on such exchange, the Company shall use
its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that the Board of Directors of the Company determines that it is reasonably likely that the Rights will be exercised), all shares reserved
for such issuance to be listed on such exchange upon official notice of issuance upon such exercise. 
 (c) The Company shall
use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a Triggering Event in which the consideration to be delivered by the Company upon exercise of the Rights is described in
Section 11(a)(ii) or Section 11(a)(iii) hereof, or as soon as is required by law following the Distribution Date, as the case may be, a registration statement under the Securities Act with respect to the securities purchasable upon
exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such filing and (iii) cause such registration statement to remain effective (with a prospectus at all
times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the Expiration Date. The Company may temporarily suspend, for a period not
to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective.
Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. 

The Company shall notify the Rights Agent whenever it makes a public announcement pursuant to this Section 9(c) and give the Rights Agent a copy of
such announcement. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights.
Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction, unless the requisite qualification in such jurisdiction shall have been obtained, or an exemption therefrom shall be available,
and until a registration statement has been declared and remains effective. 
 (d) The Company covenants and agrees that it will
take all such action as may be necessary to ensure that all Preferred Shares (or other securities of the Company) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such securities (subject to payment of the
Exercise Price), be duly and validly authorized and issued and fully paid and nonassessable. 
 (e) The Company further
covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the original issuance or delivery of the Rights Certificates or of any Preferred Shares (or other

  
 15 

 
securities of the Company) upon the exercise of Rights. The Company shall not, however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Rights
Certificates to a person other than, or the issuance or delivery of certificates or depository receipts for the Preferred Shares (or other securities of the Company) in a name other than that of, the registered holder of the Rights Certificate
evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depository receipts for Preferred Shares (or other securities of the Company) upon the exercise of any Rights until any such tax shall have been paid (any such
tax or charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s satisfaction that no such tax is due. 
 Section 10. Record Date. Each Person in whose name any certificate for a number of one-thousandths (0.001) of a Preferred Share (or other securities of the Company) is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of Preferred Shares (or other securities of the Company) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing
such Rights was duly surrendered and payment of the Total Exercise Price with respect to which the Rights have been exercised (and any applicable taxes and charges) was made; provided, however, that if the date of such surrender and payment
is a date upon which the transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books of
the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a holder of Preferred Shares (or other securities of the Company) for which the Rights shall be
exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided
herein. 
 Section 11. Adjustment of Exercise Price, Number of Shares or Number of Rights. The Exercise Price, the number and kind
of shares or other property covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
 (a) (i) Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares
payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares (by reverse stock split or otherwise) into a smaller number of Preferred Shares, or (D) issue any shares of its
capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such event, except as
otherwise provided in this Section 11 and Section 7(e) hereof: (1) the Exercise Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification shall be
adjusted so that the Exercise Price thereafter shall equal the result obtained by dividing the Exercise Price in effect immediately prior to such time by a fraction (the “Adjustment Fraction”), the numerator of which shall be
the total number of Preferred Shares (or shares of capital stock issued in such reclassification of the Preferred Shares) outstanding immediately following such time and the denominator of which shall be the total number of Preferred Shares
outstanding immediately prior to such time; provided, however, 

  
 16 

 
that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of
such Right; and (2) the number of one-thousandths (0.001) of a Preferred Share (or share of such other capital stock) issuable upon the exercise of each Right shall equal the number of one-thousandths (0.001) of a Preferred Share (or share of
such other capital stock) as was issuable upon exercise of a Right immediately prior to the occurrence of the event described in clauses (A)-(D) of this Section 11(a)(i), multiplied by the Adjustment Fraction; provided, however,
that, no such adjustment shall be made pursuant to this Section 11(a)(i) to the extent that there shall have simultaneously occurred an event described in clause (A), (B), (C) or (D) of Section 11(n) with a proportionate
adjustment being made thereunder. Each Common Share that shall become outstanding after an adjustment has been made pursuant to this Section 11(a)(i) shall have associated with it the number of Rights, exercisable at the Exercise Price and for
the number of one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) as one Common Share has associated with it immediately following the adjustment made pursuant to this Section 11(a)(i). 

(ii) Subject to Section 24 of this Agreement, in the event that a Triggering Event shall have occurred, then promptly following such
Triggering Event each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive for each Right, upon exercise thereof in accordance with the terms of this Agreement and payment of the Exercise
Price in effect immediately prior to the occurrence of the Triggering Event, in lieu of a number of one-thousandths (0.001) of a Preferred Share, such number of Common Shares of the Company as shall equal the quotient obtained by dividing
(A) the product obtained by multiplying (1) the Exercise Price in effect immediately prior to the occurrence of the Triggering Event by (2) the number of one-thousandths (0.001) of a Preferred Share for which a Right was exercisable
(or would have been exercisable if the Distribution Date had occurred) immediately prior to the first occurrence of a Triggering Event, by (B) fifty percent (50%) of the Current Per Share Market Price for Common Shares on the date of
occurrence of the Triggering Event; provided, however, that the Exercise Price and the number of Common Shares of the Company so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with
Section 11(e) hereof to reflect any events occurring in respect of the Common Shares of the Company after the occurrence of the Triggering Event. 
 (iii) In lieu of issuing Common Shares in accordance with Section 11(a)(ii) hereof, the Company may, if the Company’s Board of Directors determines that such action is necessary or appropriate
and not contrary to the interest of holders of Rights and, in the event that the number of Common Shares which are authorized by the Company’s Amended and Restated Certificate of Incorporation but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights, or if any necessary regulatory approval for such issuance has not been obtained by the Company, the Company shall: (A) determine
the excess of (1) the value of the Common Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Exercise Price (such excess, the “Spread”) and (B) with respect
to each Right, make adequate provision to substitute for such Common Shares, upon exercise of the Rights, (1) cash, (2) a reduction in the Exercise Price, (3) other equity securities of the Company (including, without limitation,
shares or units of shares of any series of preferred stock which the Company’s Board of Directors has deemed to have the same value as Common Shares (such shares or units of shares of preferred stock are

  
 17 

 
herein called “Common Stock Equivalents”)), except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance,
(4) debt securities of the Company, except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance, (5) other assets or (6) any combination of the foregoing, having an
aggregate value equal to the Current Value, where such aggregate value has been determined by the Company’s Board of Directors based upon the advice of a nationally recognized investment banking firm selected by the Company’s Board of
Directors; provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Triggering
Event and (y) the date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger Date”), then
the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Exercise Price, Common Shares (to the extent available), except to the extent that the Company has not obtained any necessary
stockholder or regulatory approval for such issuance, and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Company’s Board of Directors shall determine in good faith that it is likely that
sufficient additional Common Shares could be authorized for issuance upon exercise in full of the Rights or that any necessary regulatory approval for such issuance will be obtained, the thirty (30) day period set forth above may be extended to
the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares or take action to obtain such
regulatory approval (such period, as it may be extended, the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this
Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the
Substitution Period in order to seek any authorization of additional shares, to take any action to obtain any required regulatory approval and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to
determine the value thereof. In the event of any such suspension, the Company shall promptly notify the Rights Agent in writing and it shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement, with prompt written notice to the Rights Agent, at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Shares shall be the Current Per Share Market
Price of the Common Shares on the Section 11(a)(ii) Trigger Date and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Shares on such date. 

(b) In case the Company shall, at any time after the date of this Agreement, fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling such holders (for a period expiring within forty-five (45) calendar days after such record date) to subscribe for or purchase Preferred Shares or Equivalent Shares or securities convertible
into Preferred Shares or Equivalent Shares at a price per share (or having a conversion price per share, if a security convertible into Preferred Shares or Equivalent Shares) less than the then Current Per Share Market Price of the Preferred Shares
or Equivalent Shares on such record date, then, in each such case, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of Preferred Shares and Equivalent Shares 

  
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(if any) outstanding on such record date, plus the number of Preferred Shares or Equivalent Shares, as the case may be, which the aggregate offering price of the total number of Preferred Shares
or Equivalent Shares, as the case may be, to be offered or issued (and/or the aggregate initial conversion price of the convertible securities to be offered or issued) would purchase at such current market price, and the denominator of which shall
be the number of Preferred Shares and Equivalent Shares (if any) outstanding on such record date, plus the number of additional Preferred Shares or Equivalent Shares, as the case may be, to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of
the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the
Company’s Board of Directors, whose determination shall be described in a statement filed with the Rights Agent. Preferred Shares and Equivalent Shares owned by or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Exercise Price shall be adjusted to be the Exercise Price
which would then be in effect if such record date had not been fixed. 
 (c) In case the Company shall, at any time after the
date of this Agreement, fix a record date for the making of a distribution to all holders of the Preferred Shares or of any class or series of Equivalent Shares (including any such distribution made in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend, if any, or a dividend payable in Preferred Shares) or subscription rights, options or warrants
(excluding those referred to in Section 11(b)), then, in each such case, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the Current Per Share Market Price of a Preferred Share or an Equivalent Share on such record date, less the fair market value per Preferred Share or Equivalent Share (as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants
applicable to a Preferred Share or Equivalent Share, as the case may be, and the denominator of which shall be such Current Per Share Market Price of a Preferred Share or Equivalent Share on such record date; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. Such adjustments shall be made successively whenever such
a record date is fixed, and in the event that such distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price which would have been in effect if such record date had not been fixed. 

(d) Anything herein to the contrary notwithstanding, no adjustment in the Exercise Price shall be required unless such adjustment would
require an increase or decrease of at least one percent (1%) of the Exercise Price; provided, however, that any adjustments which by reason of this Section 11(d) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest 

  
 19 

 
cent or to the nearest ten-thousandth (0.0001) of a Common Share or other share or one hundred-thousandth (0.00001) of a Preferred Share, as the case may be. Notwithstanding the first sentence of
this Section 11(d), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction which requires such adjustment or (ii) the Expiration Date.

 (e) If as a result of an adjustment made pursuant to Section 11(a) or Section 13(a) hereof, the holder of any Right
thereafter exercised shall become entitled to receive any shares of capital stock other than Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right and, if required, the Exercise Price thereof, shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), 11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and
11(l), and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares shall apply on like terms to any such other shares. 
 (f) All Rights originally issued by the Company subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of
one-thousandths (0.001) of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 
 (g) Unless the Company shall have exercised its election as provided in Section 11(h), upon each adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and (c),
each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that number of Preferred Shares (calculated to the nearest one hundred-thousandth (0.00001) of
a share) obtained by (i) multiplying (x) the number of Preferred Shares covered by a Right immediately prior to this adjustment, by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price, and
(ii) dividing the product so obtained by the Exercise Price in effect immediately after such adjustment of the Exercise Price. 
 (h) The Company may elect on or after the date of any adjustment of the Exercise Price as a result of the calculations made in Section 11(b) or (c) to adjust the number of Rights, in
substitution for any adjustment in the number of Preferred Shares purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one-thousandths (0.001)
of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one
hundred-thousandth (0.00001)) obtained by dividing the Exercise Price in effect immediately prior to adjustment of the Exercise Price by the Exercise Price in effect immediately after adjustment of the Exercise Price. The Company shall make a public
announcement of its election to adjust the number of Rights, and notify the Rights Agent in writing, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date
on which the Exercise Price is adjusted or any day thereafter, but, if any Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each
adjustment of the number of Rights pursuant to this Section 11(h), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on 

  
 20 

 
such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option
of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new
Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall be issued, executed and delivered by the Company and countersigned and delivered by the
Rights Agent in the manner provided for herein (and may bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified in the public
announcement. 
 (i) Irrespective of any adjustment or change in the Exercise Price or the number of Preferred Shares issuable
upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price per one one-thousandth (0.001) of a Preferred Share and the number of one-thousandths (0.001) of a Preferred Share
which were expressed in the initial Rights Certificates issued hereunder. 
 (j) Before taking any action that would cause an
adjustment reducing the Exercise Price below the par or stated value, if any, of the number of one-thousandths (0.001) of a Preferred Share issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion
of its counsel, be necessary in order that the Company may validly and legally issue as fully paid and nonassessable shares such number of one-thousandths (0.001) of a Preferred Share at such adjusted Exercise Price. 

(k) In any case in which this Section 11 shall require that an adjustment in the Exercise Price be made effective as of a record
date for a specified event, the Company may elect to defer (and shall promptly notify the Rights Agent in writing of any such election) until the occurrence of such event the issuing to the holder of any Right exercised after such record date of the
number of one-thousandths (0.001) of a Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of one-thousandths (0.001) of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares (fractional or otherwise) upon the occurrence of the event requiring such adjustment. 
 (l) Anything in this Section 11 to the contrary notwithstanding, prior to the Distribution Date, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred or Common Shares, (ii) issuance
wholly for cash of any Preferred or Common Shares at less than the current market price, (iii) issuance wholly for cash of Preferred or Common Shares or securities which by their terms are convertible into or exchangeable for Preferred or
Common Shares, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred or Common Shares shall not be taxable to such stockholders.

  
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 (m) The Company covenants and agrees that, after the Distribution Date, it will not, except
as permitted by Sections 23, 24 or 27 hereof, take (or permit to be taken) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be
afforded by the Rights. 
 (n) In the event that the Company shall at any time after the date of this Agreement (A) declare
a dividend on the Common Shares payable in Common Shares, (B) subdivide the outstanding Common Shares, (C) combine the outstanding Common Shares (by reverse stock split or otherwise) into a smaller number of Common Shares, or
(D) issue any shares of its capital stock in a reclassification of the Common Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in
each such event, except as otherwise provided in this Section 11(a) and Section 7(e) hereof: (1) each Common Share (or shares of capital stock issued in such reclassification of the Common Shares) outstanding immediately following
such time shall have associated with it the number of Rights as were associated with one Common Share immediately prior to the occurrence of the event described in clauses (A)-(D) above; (2) the Exercise Price in effect at the time of the
record date for such dividend or of the effective date of such subdivision, combination or reclassification shall be adjusted so that the Exercise Price thereafter shall equal the result obtained by multiplying the Exercise Price in effect
immediately prior to such time by a fraction, the numerator of which shall be the total number of Common Shares outstanding immediately prior to the event described in clauses (A)-(D) above, and the denominator of which shall be the total
number of Common Shares outstanding immediately after such event; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the
Company issuable upon exercise of such Right; and (3) the number of one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) issuable upon the exercise of each Right outstanding after such event shall equal the
number of one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) as were issuable with respect to one Right immediately prior to such event. Each Common Share that shall become outstanding after an adjustment has been
made pursuant to this Section 11(n) shall have associated with it the number of Rights, exercisable at the Exercise Price and for the number of one-thousandths (0.001) of a Preferred Share (or shares of such other capital stock) as one Common
Share has associated with it immediately following the adjustment made pursuant to this Section 11(n). If an event occurs which would require an adjustment under both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment
provided for in this Section 11(n) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
 Section 12. Certificate of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the Company shall promptly (a) prepare a
certificate setting forth such adjustment and a brief statement of the facts and computations accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Preferred Shares a copy of such certificate and
(c) mail a brief summary thereof to each holder of a Rights Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing sentence, the failure of the Company to make such certification or give such notice shall not
affect the validity of such adjustment or the force or effect of the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement contained therein and shall not be
deemed to have knowledge of or duty with respect to such adjustment or any such statement unless and until it shall have received such certificate. 

  
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 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. 

(a) In the event that, following a Triggering Event, directly or indirectly: 

(i) the Company shall consolidate with, or merge with and into, any other Person (other than a wholly-owned Subsidiary of the Company in a
transaction the principal purpose of which is to change the state of incorporation of the Company and which complies with Section 11(m) hereof); 
 (ii) any Person shall consolidate with the Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation of such consolidation or merger and, in connection
with such merger, all or part of the Common Shares shall be changed into or exchanged for stock or other securities of any other Person (or the Company); or 
 (iii) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating fifty percent
(50%) or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or one or more of its wholly owned Subsidiaries in one or more transactions, each of
which individually (and together) complies with Section 11(m) hereof), 
 then, concurrent with and in each such case, 

(A) each holder of a Right (except as provided in Section 7(e) hereof) shall thereafter have the right to receive,
upon the exercise thereof at a price equal to the Total Exercise Price applicable immediately prior to the occurrence of the Section 13 Event in accordance with the terms of this Agreement, such number of validly authorized and issued, fully
paid, nonassessable and freely tradeable Common Shares of the Principal Party (as hereinafter defined), free of any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by dividing such Total
Exercise Price by an amount equal to fifty percent (50%) of the Current Per Share Market Price of the Common Shares of such Principal Party on the date of consummation of such Section 13 Event, provided, however, that the Exercise Price
and the number of Common Shares of such Principal Party so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(e) hereof; 

(B) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all
the obligations and duties of the Company pursuant to this Agreement; 
 (C) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; 

  
 23 

 (D) such Principal Party shall take such steps (including, but not limited
to, the reservation of a sufficient number of its Common Shares) in connection with the consummation of any such transaction as may be necessary to ensure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in
relation to its Common Shares thereafter deliverable upon the exercise of the Rights; and 
 (E) upon the
subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment
of the Total Exercise Price as provided in this Section 13(a), such cash, shares, rights, warrants and other property which such holder would have been entitled to receive had such holder, at the time of such transaction, owned the Common
Shares of the Principal Party receivable upon the exercise of such Right pursuant to this Section 13(a), and such Principal Party shall take such steps (including, but not limited to, reservation of shares of stock) as may be necessary to
permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property. 
 (F) For purposes hereof, the “earning power” of the Company and its Subsidiaries shall be determined in good faith by the Company’s Board of Directors on the basis of the operating income
of each business operated by the Company and its Subsidiaries during the three fiscal years preceding the date of such determination (or, in the case of any business not operated by the Company or any Subsidiary during three full fiscal years
preceding such date, during the period such business was operated by the Company or any Subsidiary). 
 (b) For purposes of this
Agreement, the term “Principal Party” shall mean: 
 (i) in the case of any transaction described in
clause (i) or (ii) of Section 13(a) hereof: (A) the Person that is the issuer of the securities into which the Common Shares are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer the
Common Shares of which have the greatest aggregate market value of shares outstanding, or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more
than one such Person, the Person the Common Shares of which have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the
merger (including the Company if it survives) or (z) the Person resulting from the consolidation; and 
 (ii) in the case
of any transaction described in clause (iii) of Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if more than one
Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred and each such portion would, were it not for the other equal portions, constitute the greatest portion of the assets
or earning power so transferred, or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value of shares

  
 24 

 
outstanding; provided that in any such case described in the foregoing clause (b)(i) or (b)(ii), if the Common Shares of such Person are not at such time or have not been continuously over the
preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect Subsidiary of another Person the Common Shares of which are and have been so registered, the term “Principal
Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of which are and have been so registered, the term “Principal Party” shall refer
to whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value of shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not
owned, directly or indirectly by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or
all of such joint venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its interest in such Person bears to the total of such interests. 

(c) The Company shall not consummate any Section 13 Event unless the Principal Party shall have a sufficient number of authorized
Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such issuer shall have executed and delivered to the
Rights Agent a supplemental agreement confirming that such Principal Party shall, upon consummation of such Section 13 Event, assume this Agreement in accordance with Sections 13(a) and 13(b) hereof, that all rights of first refusal or
preemptive rights in respect of the issuance of Common Shares of such Principal Party upon exercise of outstanding Rights have been waived, that there are no rights, warrants, instruments or securities outstanding or any agreements or arrangements
which, as a result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights and that such transaction shall not result in a default by such Principal Party under this
Agreement, and further providing that, as soon as practicable after the date of such Section 13 Event, such Principal Party will: 
 (i) prepare and file a registration statement under the Securities Act with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, use its best efforts to
cause such registration statement to become effective as soon as practicable after such filing and use its best efforts to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the Expiration Date, and similarly comply with applicable state securities laws; 
 (ii) use its best
efforts to list (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on a national securities exchange or to meet the eligibility requirements for quotation on Nasdaq and list (or continue the listing
of) the Rights and the securities purchasable upon exercise of the Rights on Nasdaq; and 
 (iii) deliver to holders of the
Rights historical financial statements for such Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act. 

  
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 In the event that at any time after the occurrence of a Triggering Event some or all of the
Rights shall not have been exercised at the time of a transaction described in this Section 13, the Rights which have not theretofore been exercised shall thereafter be exercisable in the manner described in Section 13(a) (without taking
into account any prior adjustment required by Section 11(a)(ii)). 
 (d) In case the “Principal Party” for
purposes of Section 13(b) hereof has provision in any of its authorized securities or in its certificate of incorporation or by-laws or other instrument governing its corporate affairs, which provision would have the effect of (i) causing
such Principal Party to issue (other than to holders of Rights pursuant to Section 13 hereof), in connection with, or as a consequence of, the consummation of a Section 13 Event, Common Shares or Equivalent Shares of such Principal Party
at less than the then Current Per Share Market Price thereof or securities exercisable for, or convertible into, Common Shares or Equivalent Shares of such Principal Party at less than such then Current Per Share Market Price, or (ii) providing
for any special payment, tax or similar provision in connection with the issuance of the Common Shares of such Principal Party pursuant to the provisions of Section 13 hereof, then, in such event, the Company hereby agrees with each holder of
Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of such
Principal Party shall have been canceled, waived or amended, or that the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection with or as a consequence of, the consummation of the proposed
transaction. 
 (e) The Company covenants and agrees that it shall not, at any time after the Distribution Date, effect or
permit to occur any Section 13 Event, if (i) at the time or immediately after such Section 13 Event there are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially
diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such Section 13 Event, the stockholders of the Person who constitutes, or would constitute, the
“Principal Party” for purposes of Section 13(b) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates or (iii) the form or nature of organization of the
Principal Party would preclude or limit the exercisability of the Rights. 
 (f) The provisions of this Section 13 shall
similarly apply to successive mergers or consolidations or sales or other transfers. 
 Section 14. Fractional Rights and Fractional
Shares. 
 (a) The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which
evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same
fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable, as determined pursuant to the second sentence of Section 1(i) hereof. 

  
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 (b) The Company shall not be required to issue fractions of Preferred Shares (other than
fractions that are integral multiples of one one-thousandth (0.001) of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions that are integral multiples of one
one-thousandth (0.001) of a Preferred Share). Interests in fractions of Preferred Shares in integral multiples of one one-thousandth (0.001) of a Preferred Share may, at the election of the Company, be evidenced by depository receipts, pursuant to
an appropriate agreement between the Company and a depository selected by it; provided, that such agreement shall provide that the holders of such depository receipts shall have all the rights, privileges and preferences to which they are entitled
as beneficial owners of the Preferred Shares represented by such depository receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth (0.001) of a Preferred Share, the Company shall pay to the registered
holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of a Preferred Share. For purposes of this Section 14(b), the current market value
of a Preferred Share shall be the product equal to (x) one thousand multiplied by (y) the closing price of a Common Share (as determined pursuant to the second sentence of Section 1(i) hereof) for the Trading Day immediately prior to
the date of such exercise. 
 (c) The Company shall not be required to issue fractions of Common Shares or to distribute
certificates which evidence fractional Common Shares upon the exercise or exchange of Rights. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as
herein provided an amount in cash equal to the same fraction of the current market value of a Common Share. For purposes of this Section 14(c), the current market value of a Common Share shall be the closing price of a Common Share (as
determined pursuant to the second sentence of Section 1(j) hereof) for the Trading Day immediately prior to the date of such exercise. 
 (d) The holder of a Right by the acceptance of the Right expressly waives his or her right to receive any fractional Rights or any fractional shares (other than fractions that are integral multiples of
one one-thousandth (0.001) of a Preferred Share) upon exercise of a Right. 
 (e) Whenever a payment for fractional rights or
fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payment and the prices and/or formulas
utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and
(i) shall not be deemed to have knowledge of any payment for fractional rights or fractional shares under any section of this Agreement relating to the payment of fractional Rights or fractional shares, unless and until the Rights Agent shall
have received such a certificate, and (ii) shall not be deemed to have any duty with respect to payment for fractional Rights or fractional shares under any Section of this Agreement relating to the payment of fractional rights or fractional
shares, unless and until the Rights Agent shall have received sufficient monies for such payment. 

  
 27 

 Section 15. Rights of Action. 

(a) All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent pursuant to
Section 18 and Section 20 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Rights
Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his or her own
behalf and for his or her own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his or her right to exercise the Rights evidenced by such Rights
Certificate in the manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Agreement.

 (b) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any
liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether
interlocutory or final) issued by a court or by a governmental, regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting
or otherwise restraining performance of such obligation; provided, however, that the Company must use all reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

 Section 16. Agreement of Rights Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and
the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares; 
 (b) after the Distribution Date, the Rights
Certificates are transferable only on the registry books of the Rights Agent if surrendered at the office or offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the
appropriate forms and certificates fully executed; and 
 (c) subject to Sections 6(a) and 7(f) hereof, the Company and the
Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights Certificates or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary. 

  
 28 

 Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any
Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose to be the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented
thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as specifically provided in Section 25
hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. 

Section 18. Concerning the Rights Agent. 
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and
counsel fees and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent
for, and to hold it harmless against, any loss, liability damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including, without limitation, reasonable fees and expenses of legal counsel, both in actions by the Company
against the Rights Agent and in actions by holders of the Rights against the Rights Agent), incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, (which gross negligence, bad faith or willful misconduct
must be determined by a final order, judgment, decree or ruling of a court of competent jurisdiction), for any action taken, suffered, or omitted to be taken by the Rights Agent in connection with the acceptance and administration of this Agreement,
including, without limitation, the costs and expenses of defending against any claim of liability in the premises. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the Company. The provisions of this
Section 18 and Section 20 below shall survive the termination of this Agreement, the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights Agent. 

(b) The Rights Agent shall be authorized and protected and shall incur no liability for, or in respect of any action taken, suffered or
omitted by it in connection with, its acceptance and administration of this Agreement, and the exercise and performance of its duties hereunder in reliance upon any Rights Certificate or certificate for the Preferred Shares or Common Shares or for
other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document reasonably believed by it to be genuine and to be
signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any event of
which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take any action in connection therewith unless and until it has received such notice 

  
 29 

 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 

(a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the stockholder services business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that such Person would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the
Rights Certificates and in this Agreement. 
 (b) In case at any time the name of the Rights Agent shall be changed and at such
time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the
Rights Certificates and in this Agreement. 
 Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the
duties and obligations expressly imposed by this Agreement (and no implied duties or obligations) upon the following terms and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be
bound: 
 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company or any employee of the
Rights Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered, or omitted by it in
the absence of bad faith and in accordance with such advice or opinion. 
 (b) Whenever in the performance of its duties under
this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of Current Per Share Market Price) be proved or established by
the Company prior to taking, suffering or omitting any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed
by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate
shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for any action taken or suffered or omitted to be taken by it in the absence of bad faith under the provisions of this
Agreement in reliance upon such certificate. 

  
 30 

 (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final order, judgment, decree or ruling of a court of competent jurisdiction). Anything to the contrary
notwithstanding, in no event shall the Rights Agent be liable for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised
of the likelihood of such loss or damage. Any liability of the Rights Agent under this Agreement will be limited to the amount of annual fees paid by the Company to the Rights Agent. 

(d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in
the Rights Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 

(e) The Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company
of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible or liable for any change in the exercisability of the Rights or any adjustment in the terms of the Rights (including the manner,
method or amount thereof) provided for in Sections 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates
after receipt by the Rights Agent of a certificate furnished pursuant to Section 12 describing such change or adjustment upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any Preferred Shares to be issued pursuant to this Agreement or any Rights Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued, fully paid and nonassessable.

 (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed,
acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder
from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Secretary or any Assistant Secretary of the Company, and to apply to such officers for advice or instructions
in connection with its duties, and such instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable for or in respect of any action taken, suffered, or omitted by it in the absence of bad
faith in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. The Rights 

  
 31 

 
Agent shall be fully authorized and protected in relying, in the absence of bad faith, upon the most recent instructions received by any such officer. Any application by the Rights Agent for
written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered, or omitted by the Rights Agent under this Rights Agreement and the date on and/or after which such action
shall be taken or suffered or such omission shall be effective. The Rights Agent shall not be liable for any action taken or suffered by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the
date specified in such application (which date shall not be less than five (5) Business Days after the date on which any officer of the Company actually receives such application, unless any such officer shall have consented in writing to an
earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken, suffered, or
omitted. 
 (h) The Rights Agent and any stockholder, affiliate, director, officer or employee of the Rights Agent may buy, sell
or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though
it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent or any such stockholder, affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person. 

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
(through its directors, officers or employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the
Company resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct, in the selection and continued employment thereof which gross negligence, bad faith or willful misconduct must be
determined by a final order, judgment, decree or ruling of a court of competent jurisdiction. 
 (j) No provision of this
Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be grounds, in the absence of bad
faith, for believing that repayment of such funds or adequate indemnification against such risk or liability is not assured to it. 
 (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may
be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.

 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon thirty (30) days’ notice in writing mailed to the Company by registered or certified mail. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights
Agent 

  
 32 

 
will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending
any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of
the Preferred Shares and the Common Shares by registered or certified mail, and to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company
shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit his or her Rights Certificate for inspection by the Company), then the registered holder of any Rights Certificate may apply
to any court of competent jurisdiction for the appointment of a new Rights Agent. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed
necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares and the Common Shares, and mail
a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22. Issuance of New Rights
Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Exercise Price and the number or kind or class of shares or other securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in
connection with the issuance or sale of Common Shares following the Distribution Date and prior to the redemption or expiration of the Rights, the Company (a) shall, with respect to Common Shares so issued or sold pursuant to the exercise of
stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company outstanding at the date hereof or upon the exercise, conversion or exchange of securities hereinafter issued by
the Company and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the appropriate number of Rights in connection with such issuance or sale;
provided, however, that (i) no such Rights Certificate shall be issued and this sentence shall be null and void ab initio if, and to the extent that, such issuance or this sentence would create a significant risk of or result in material
adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued or would create a significant risk of or result in such options’ or employee plans’ or arrangements’ failing to qualify for
otherwise available special tax treatment and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

  
 33 

 Section 23. Redemption. 

(a) The Company may, at its option and with the approval of the Board of Directors, at any time prior to the Close of
Business on the earlier of (i) the 10th Business Day
following the Shares Acquisition Date (or such later date as may be determined by action of the Company’s Board of Directors and publicly announced by the Company prior to such 10th Business Day) and (ii) the Final Expiration Date, redeem all but not less than all the then outstanding Rights at
a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after April 28, 2005 (such redemption price being herein referred to as the “Redemption
Price”) and the Company may, at its option, pay the Redemption Price either in Common Shares (based on the Current Per Share Market Price thereof at the time of redemption) or cash. Such redemption of the Rights by the Company may be
made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole discretion may establish. The date on which the Board of Directors of the Company elects to make the redemption effective shall
be referred to as the “Redemption Date.” Notwithstanding anything to the contrary in this Agreement, the Rights will not be exercisable after the first occurrence of a Triggering Event until such time as the Company’s
right of redemption pursuant to this Section 23 has expired. 
 (b) Immediately upon the action of the Board of Directors
of the Company ordering the redemption of the Rights, prompt written evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to exercise the Rights will terminate and the only
right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not
affect the validity of such redemption. Within ten (10) days after the action of the Board of Directors of the Company ordering the redemption of the Rights, the Company shall give written notice of such redemption to the Rights Agent and the
holders of the then outstanding Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for
the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will
be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or in Section 24 hereof, and
other than in connection with the purchase of Common Shares prior to the Distribution Date. 
 Section 24. Exchange. 

(a) Subject to applicable laws, rules and regulations, and subject to subsection 24(c) below, the Company may, at its option, by action of
the Board of Directors of the Company, at any time after the occurrence of a Triggering Event, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the
provisions of Section 7(e) hereof) for Common Shares (the “Exchange Securities”) at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring
after April 28, 2005 (such exchange ratio being 

  
 34 

 
hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at
any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any such Subsidiary, or any Person holding Common Shares for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares then outstanding. 
 The exchange of
the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. Without limiting the generality of the foregoing, prior to effecting such
an exchange, the Board of Directors may direct the Company to enter into a Trust Agreement in such form and with such terms as the Board of Directors shall then approve (the “Trust Agreement”). If the Board of Directors so
directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all or some (as designated by the Board of Directors) of the Exchange Securities issuable pursuant
to the exchange, and all or some (as designated by the Board of Directors) Persons entitled to receive Exchange Securities pursuant to the exchange shall be entitled to receive such Exchange Securities (and any dividends or distributions made
thereon after the date on which such Exchange Securities are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. 

Prior to effecting an exchange pursuant to this Section 24(a) and registering Exchange Securities in any Person’s name, including any nominee
or transferee of a Person, the Company may implement such procedures as it deems appropriate to minimize the possibility that any Exchange Securities issuable pursuant to this Section 24(a) are received by Persons whose Rights are null and void
pursuant to Section 7(e) hereof. Without limiting the generality of the foregoing, the Company may require (or cause the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide evidence, including, without
limitation, the identity of the Beneficial Owners thereof and their Affiliates and Associates (or former Beneficial Owners thereof and their Affiliates and Associates) as the Company shall reasonably request in order to determine if such Rights are
so null and void. If any Person shall fail to comply with such request, the Company shall be entitled conclusively to deem the Rights formerly held by such Person to be null and void pursuant to Section 7(e) hereof and not transferable or
exercisable or exchangeable in connection herewith. 
 Any Exchange Securities issued at the direction of the Board of Directors in connection
herewith shall be validly issued, fully paid and nonassessable shares of Common Stock or Preferred Stock (as the case may be), and the Company shall be deemed to have received as consideration for such issuance a benefit having a value that is at
least equal to the aggregate par value of the Exchange Securities so issued. Approval by the Board of Directors of the exchange shall constitute a determination by the Board of Directors that such consideration is adequate 

(b) Immediately upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to subsection 24(a)
of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Exchange Securities equal to
the number of such Rights held by such holder multiplied by the Exchange 

  
 35 

 
Ratio. The Company shall give public notice of any such exchange as well as prompt, written notice thereof to the Rights Agent; provided, however, that the failure to give, or any defect
in, such notice shall not affect the validity of such exchange. The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Exchange Securities for Rights will be effected and,
in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of
Section 7(e) hereof) held by each holder of Rights. 
 (c) In the event that there shall not be sufficient Exchange
Securities issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with Section 24(a), the Company shall either take such action as may be necessary to authorize additional Exchange
Securities for issuance upon exchange of the Rights or alternatively, at the option of a majority of the Board of Directors of the Company, with respect to each Right (i) pay cash in an amount equal to the Current Value (as hereinafter
defined), in lieu of issuing Exchange Securities in exchange therefor, or (ii) issue debt or equity securities or a combination thereof, having a value equal to the Current Value, in lieu of issuing Exchange Securities in exchange for each such
Right, where the value of such securities shall be determined by a nationally recognized investment banking firm selected by majority vote of the Board of Directors of the Company, or (iii) deliver any combination of cash, property, Exchange
Securities and/or other securities having a value equal to the Current Value in exchange for each Right. For purposes of this Section 24(c) only, the Current Value shall mean the product of the Current Per Share Market Price of Exchange
Securities on the date of the occurrence of the event described above in subsection (a), multiplied by the number of Exchange Securities for which the Right otherwise would be exchangeable if there were sufficient shares available. To the extent
that the Company determines that some action need be taken pursuant to clauses (i), (ii) or (iii) of this Section 24(c), the Board of Directors of the Company may temporarily suspend the exercisability of the Rights for a period of up
to sixty (60) days following the date on which the event described in Section 24(a) shall have occurred, in order to seek any authorization of additional Exchange Securities and/or to decide the appropriate form of distribution to be made
pursuant to the above provision and to determine the value thereof. In the event of any such suspension, the Company shall promptly notify the Rights Agent in writing of such suspension and shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended. 
 (d) The Company shall not be required to issue fractions of
Exchange Securities or to distribute certificates which evidence fractional Exchange Securities. In lieu of such fractional Exchange Securities, there shall be paid to the registered holders of the Rights Certificates with regard to which such
fractional Exchange Securities would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole share of Exchange Securities (as determined pursuant to the second sentence of Section 1(j) hereof).

  
 36 

 (e) The Company may, at its option, by majority vote of the Board of Directors of the
Company, at any time before any Person has become an Acquiring Person, exchange all or part of the then outstanding Rights for rights of substantially equivalent value, as determined reasonably and with good faith by the Board of Directors of the
Company based upon the advice of one or more nationally recognized investment banking firms. 
 (f) Immediately upon the action
of the Board of Directors of the Company ordering the exchange of any Rights pursuant to subsection 24(e) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only
right thereafter of a holder of such Rights shall be to receive that number of rights in exchange therefor as has been determined by the Board of Directors of the Company in accordance with subsection 24(e) above. The Company shall promptly notify
the Rights Agent in writing thereof and shall give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company shall mail a notice
of any such exchange to the Rights Agent and to all of the holders of such Rights at their last addresses as they appear upon the registry books of the transfer agent for the Exchange Securities of the Company. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Rights will be effected. 

Section 25. Notice of Certain Events. 
 (a) In case the Company shall propose to effect or permit to occur any Triggering Event or Section 13 Event, the Company shall give written notice thereof to the Rights Agent and to each holder of
Rights in accordance with Section 26 hereof at least twenty (20) days prior to occurrence of such Triggering Event or such Section 13 Event. 
 (b) In case any Triggering Event or Section 13 Event shall occur, then, in any such case, the Company shall as soon as practicable thereafter give to each holder of a Rights Certificate and to the
Rights Agent, in accordance with Section 26 hereof, a written notice of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under Sections 11(a)(ii) and 13 hereof. 

Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 

Pain Therapeutics, Inc. 
 7801 N. Capital of Texas Highway 
 Suite 260 

Austin, TX 78731 

with a copy to: 

Morrison & Foerster LLP 
 755 Page Mill Road 
 Palo Alto, California 94304-1050 

Attention: Michael O’Donnell 

  
 37 

 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be
given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Company) as follows: 
 Computershare Shareowner Services LLC 

330 N Brand Boulevard, Suite 701 
 Glendale, California, 91203-2389 
 Notices or demands authorized by this Agreement to be given or
made by the Company or the Rights Agent to the holder of any Rights Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books
of the Company. 
 Section 27. Supplements and Amendments. Prior to the occurrence of a Distribution Date, the Company may
supplement or amend this Agreement in any respect without the approval of any holders of Rights and the Rights Agent shall, if the Company so directs but subject to the further provision of this Section 27, execute such supplement or amendment.
From and after the occurrence of a Distribution Date, the Company and the Rights Agent may from time to time supplement or amend this Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity, (ii) correct
or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) shorten or lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any
manner that the Company may deem necessary or desirable and that shall not adversely affect the interests of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, this Agreement may not
be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable or (B) any other time period unless
such lengthening is for the purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a
certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance with the terms of this Section 27, and provided that such supplement or amendment does not specifically diminish or
change the Rights Agent’s rights or specifically increase or change the Rights Agent’s duties, liabilities, or obligations hereunder without the prior written consent of the Rights Agent, the Rights Agent shall execute such supplement or
amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Shares. 
 Section 28. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder. 

  
 38 

 Section 29. Determinations and Actions by the Board of Directors, etc. For all purposes of this
Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, shall be
made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board, or the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power (i) to interpret the provisions of
this Agreement and (ii) to make all determinations and calculations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such
actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights Certificates and all other Persons and (y) with respect to claims specifically arising from the Agreement, not subject the Board to any liability to the holders of the Rights.
The Rights Agent is entitled always to assume the Company’s Board of Directors acted in good faith and shall be protected and incur no liability in reliance thereon. 
 Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Rights
Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim pursuant to this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution Date, the Common Shares). 
 Section 31. Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, null, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction
is held by such court or authority to be invalid, null, void or unenforceable and the Board of Directors of the Company determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose
or effect of this Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated with prompt written notice thereof to the Rights Agent and shall not expire until the Close of Business on the tenth day following the date
of such determination by the Board of Directors of the Company. 
 Section 32. Governing Law. This Agreement and each Right and each
Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made
and performed entirely within such State. 
 Section 33. Counterparts. This Agreement may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same
authority, effect, and enforceability as an original signature. 

  
 39 

 Section 34. Descriptive Headings. Descriptive headings of the several Sections of this Agreement
are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or
failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of
data due to power failures or mechanical failures with information storage or retrieval systems, labor difficulties, war, or civil unrest. 
 [SIGNATURE PAGE TO FOLLOW] 

  
 40 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written. 
  

							
	“COMPANY”	 		 	Pain Therapeutics, Inc.
				
		 		 	By:	 	/s/ Peter S. Roddy
		 		 	Name:	 	Peter S. Roddy
		 		 	Title:	 	Vice President and
		 		 		 	Chief Financial Officer

  

							
	“RIGHTS AGENT”	 		 	Computershare Shareowner Services LLC
				
		 		 	By:	 	/s/ Dennis V. Moccia
		 		 	Name:	 	Dennis V. Moccia
		 		 	Title:	 	Manager, Contract Administration

 [SIGNATURE PAGE FOR AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT] 

  
 41 

 EXHIBIT A 
 CERTIFICATE OF DESIGNATION OF RIGHTS, PREFERENCES AND 
 PRIVILEGES OF
SERIES A PARTICIPATING PREFERRED STOCK OF 
 PAIN THERAPEUTICS, INC. 

The undersigned, Remi Barbier, does hereby certify: 
 1. That he is duly elected and acting President, Chief Executive Officer, and Chairman of the Board of Pain Therapeutics, Inc., a Delaware corporation (the “Corporation”).

 2. That pursuant to the authority conferred upon the Board of Directors by the Amended and Restated Certificate of
Incorporation of the Corporation, the Board of Directors of the Corporation on April 28, 2005 adopted the following resolutions creating a series of 600,000 shares of Preferred Stock designated as Series A Participating Preferred Stock:

 “RESOLVED, that pursuant to the authority vested in the Board of Directors of the corporation by the Amended and
Restated Certificate of Incorporation, the Board of Directors does hereby provide for the issue of a series of Preferred Stock of the Corporation and does hereby fix and herein state and express the designations, powers, preferences and relative and
other special rights and the qualifications, limitations and restrictions of such series of Preferred Stock as follows: 
 1.
Designation and Amount. The shares of such series shall be designated as “Series A Participating Preferred Stock.” The Series A Participating Preferred Stock shall have a par value of $0.001 per share, and the number
of shares constituting such series shall be 600,000. 
 2. Proportional Adjustment. In the event that the Corporation
shall at any time after the issuance of any share or shares of Series A Participating Preferred Stock (i) declare any dividend on Common Stock of the Corporation (“Common Stock”) payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Corporation shall simultaneously effect a proportional adjustment to the number of
outstanding shares of Series A Participating Preferred Stock. 
 3. Dividends and Distributions. 

(a) Subject to the prior and superior right of the holders of any shares of any series of Preferred Stock ranking prior and superior to
the shares of Series A Participating Preferred Stock with respect to dividends, the holders of shares of Series A Participating Preferred Stock shall be entitled to receive when, as and if declared by the Board of Directors out of funds legally
available for the purpose, quarterly dividends payable in cash on the last day of January, April, July, and October in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on
the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to 1,000 times the aggregate per share amount
of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares 

  
 42 

 
of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend
Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Participating Preferred Stock. 

(b) The Corporation shall declare a dividend or distribution on the Series A Participating Preferred Stock as provided in paragraph
(a) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock). 
 (c) Dividends shall begin to accrue on outstanding shares of Series A Participating Preferred Stock from the Quarterly Dividend Payment Date first following the date of issue of such shares of Series A
Participating Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such dividends shall begin to accrue from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Participating Preferred
Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of shares of Series A Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed
for the payment thereof. 
 4. Voting Rights. The holders of shares of Series A Participating Preferred Stock shall have
the following voting rights: 
 (a) Each share of Series A Participating Preferred Stock shall entitle the holder thereof to
1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. 
 (b) Except as otherwise provided
herein or by law, the holders of shares of Series A Participating Preferred Stock and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 

(c) Except as required by law, the holders of Series A Participating Preferred Stock shall have no special voting rights and their
consent shall not be required (except to the extent that they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 

  
 43 

 5. Certain Restrictions. 

(a) The Corporation shall not declare any dividend on, make any distribution on, or redeem or purchase or otherwise acquire for
consideration any shares of Common Stock after the first issuance of a share or fraction of a share of Series A Participating Preferred Stock unless concurrently therewith it shall declare a dividend on the Series A Participating Preferred Stock as
required by Section 3 hereof. 
 (b) Whenever quarterly dividends or other dividends or distributions payable on the Series
A Participating Preferred Stock as provided in Section 3 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Participating Preferred Stock outstanding shall
have been paid in full, the Corporation shall not 
 (i) declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Participating Preferred Stock; 

(ii) declare or pay dividends on, or make any other distributions on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series A Participating Preferred Stock, except dividends paid ratably on the Series A Participating Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 
 (iii)
redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Participating Preferred Stock, provided that the Corporation
may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A
Participating Preferred Stock; 
 (iv) purchase or otherwise acquire for consideration any shares of Series A
Participating Preferred Stock, or any shares of stock ranking on a parity with the Series A Participating Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all
holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result
in fair and equitable treatment among the respective series or classes. 
 (c) The Corporation shall not permit any subsidiary
of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (a) of this Section 5, purchase or otherwise acquire such shares at such time and in
such manner. 
 6. Reacquired Shares. Any shares of Series A Participating Preferred Stock purchased or otherwise
acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation 

  
 44 

 
become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors,
subject to the conditions and restrictions on issuance set forth herein and in the Amended and Restated Certificate of Incorporation, as then amended. 
 7. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, the holders of shares of Series A Participating Preferred Stock shall be entitled to
receive an aggregate amount per share equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends on such shares of Series A Participating
Preferred Stock. 
 8. Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger,
combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the shares of Series A Participating Preferred Stock shall at the
same time be similarly exchanged or changed in an amount per share equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common
Stock is changed or exchanged. 
 9. No Redemption. The shares of Series A Participating Preferred Stock shall not be
redeemable. 
 10. Ranking. The Series A Participating Preferred Stock shall rank junior to all other series of the
Corporation’s Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 
 11. Amendment. The Amended and Restated Certificate of Incorporation of the Corporation shall not be further amended in any manner which would materially alter or change the powers, preference or
special rights of the Series A Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority of the outstanding shares of Series A Participating Preferred Stock, voting separately as a series.

 12. Fractional Shares. Series A Participating Preferred Stock may be issued in fractions of a share which shall
entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Participating Preferred Stock.

 RESOLVED FURTHER, that the President, Chief Executive Officer or any Vice President of the Corporation be, and they
hereby is, authorized and directed to prepare and file a Certificate of Designation of Rights, Preferences and Privileges in accordance with the foregoing resolution and the provisions of Delaware law and to take such actions as they may deem
necessary or appropriate to carry out the intent of the foregoing resolution.” 
 [INTENTIONALLY LEFT BLANK]

  
 45 

 I further declare under penalty of perjury that the matters set forth in the foregoing
Certificate of Designation are true and correct of my own knowledge. 
 Executed at South San Francisco, California on April 28, 2005.

  

			
		 	/s/ REMI BARBIER
		 	Remi Barbier
		 	President, Chief Executive Officer, and Chairman of the Board

  
 46 

 EXHIBIT B 
 FORM OF RIGHTS CERTIFICATE 
  

			
	Certificate No. R—	  	                        
Rights

 NOT EXERCISABLE AFTER THE EARLIER OF (i) May 12, 2015, (ii) THE DATE TERMINATED BY THE COMPANY OR
(iii) THE DATE THE COMPANY EXCHANGES THE RIGHTS PURSUANT TO THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. 

[THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH RIGHTS
AGREEMENT.]1 

RIGHTS CERTIFICATE 
 PAIN THERAPEUTICS, INC. 
 This certifies that
            , or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and
conditions of the Amended and Restated Rights Agreement dated as of             , 2013 (the “Rights Agreement”), between Pain Therapeutics, Inc., a Delaware
corporation (the “Company”), and [Mellon Investor Services LLC] (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to 5:00 P.M., New York time, on May 12, 2015 at the office of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent, one one-thousandth (0.001) of a fully paid and non-assessable
share of Series A Participating Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company, at an Exercise Price of $40.00 (forty dollars) per one-thousandth (0.001) of a Preferred Share (the
“Exercise Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate duly executed. The number of Rights evidenced by this Rights Certificate (and the
number of one-thousandths (0.001) of a Preferred Share which may be purchased upon exercise hereof) set forth above are the number and Exercise Price as of May 12, 2005 based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the Exercise Price and the number and kind of Preferred Shares or other securities which may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the
happening of certain events. 
  
  

	1 	The portion of the legend in bracket shall be inserted only if applicable and shall replace the preceding sentence. 

  
 47 

 This Rights Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific
circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the above-mentioned office of the Rights Agent. 

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate (i) may be redeemed by the
Company, at its option, at a redemption price of $0.001 per Right or (ii) may be exchanged by the Company in whole or in part for Common Shares, substantially equivalent rights or other consideration as determined by the Company. 

This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate amount of securities as the Rights evidenced by the Rights Certificate or
Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for
the number of whole Rights not exercised. 
 No fractional portion of less than one one-thousandth (0.001) of a Preferred Share
will be issued upon the exercise of any Right or Rights evidenced hereby but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote
for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided
in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 

This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

  
 48 

 WITNESS the facsimile signature of the proper officers of the Company and its corporate
seal. Dated as of             .             . 

 

							
	ATTEST:	 		 	PAIN THERAPEUTICS, INC.
				
	 	 		 	By:	 	 
	Secretary	 		 		 	
				
		 		 	Its:	 	 
		 		 		 	
	 Countersigned:
	 		 		 	
				
	 COMPUTERSHARE SHAREOWNER SERVICES LLC
	 		 		 	
	 As Rights Agent
	 		 		 	
				
	By:
                                         
                               	 		 		 	
				
	Its:
                                         
                               	 		 		 	

  
 49 

 FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE 

FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such 
 holder desires to transfer the
Rights Certificate) 
 FOR VALUE RECEIVED
                     hereby sells, assigns and transfers unto             

  
  
 (Please print name and address of transferee) 
  

 
 this Rights Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint                      Attorney, to transfer the within Rights
Certificate on the books of the within-named Company, with full power of substitution. 
 Dated:
                ,          

 

			
		 	 
		 	Signature

 Signature Guaranteed: 
 Signatures must be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange
Act of 1934, as amended. 

  
 50 

 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) this
Rights Certificate [    ] is [    ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person, or an Affiliate or Associate of any such Person (as such terms are
defined in the Rights Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it
[    ] did [    ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of any such Person.

 Dated:                     ,
         
  

			
		
		 	 
		 	Signature

 Signature Medallion Guaranteed: 
 Signatures must be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange
Act of 1934, as amended. 

  
 51 

 FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE — continued 

FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to exercise the Rights Certificate) 
 To:
                             
 The undersigned hereby irrevocably elects to exercise
                         Rights represented by this Rights Certificate to purchase the number of one-thousandths (0.001)
of a Preferred Share issuable upon the exercise of such Rights and requests that certificates for such number of one-thousandths (0.001) of a Preferred Share issued in the name of: 
 Please insert social security 
 or other identifying number 

 
  
 (Please print name and address of transferee) 
  

 
 If such number of Rights shall not be all the
Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to: 
 Please insert social security 
 or other identifying number 

 
  
 (Please print name and address of transferee) 
  

 
 Dated:
                    ,          

 

			
		
		 	 
		 	Signature

 Signature Guaranteed: 
 Signatures must be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange
Act of 1934, as amended. 

  
 52 

 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) the
Rights evidenced by this Rights Certificate [    ] are [    ] are not being exercised by or on behalf of a Person who is or was an Acquiring Person, or an Affiliate or Associate of any such Person (as
such terms are defined in the Rights Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it
[    ] did [    ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of any such Person.

 Dated:                     ,
         
  

			
		
		 	 
		 	Signature

 Signature Medallion Guaranteed: 
 Signatures must be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange
Act of 1934, as amended. 

  
 53 

 FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE — continued 

NOTICE 

The signature in the foregoing Forms of Assignment and Election must conform to the name as written upon the face of this Rights
Certificate in every particular, without alteration or enlargement or any change whatsoever. 

  
 54 

 EXHIBIT C 
 SUMMARY OF STOCKHOLDER RIGHTS PLAN 
 PAIN THERAPEUTICS, INC.

  
 55 

 STOCKHOLDER RIGHTS PLAN 

PAIN THERAPEUTICS, INC. 
 Summary of Rights 
  

			
		
	 Distribution and Transfer
 of Rights; Rights

Certificate:
	  	The Board of Directors has declared a dividend of one Right for each outstanding share of Common Stock of Pain Therapeutics, Inc. (the “Company”). Prior to
the Distribution Date referred to below, the Rights will be evidenced by and trade with the certificates for the Common Stock. After the Distribution Date, the Company will mail Rights certificates to the Company’s stockholders and the Rights
will become transferable apart from the Common Stock.
		
	Distribution Date:	  	Rights will separate from the Common Stock and become exercisable following (a) the tenth day (or such later date as may be determined by the Company’s Board of Directors)
after a person or group acquires beneficial ownership of 15% or more (or 20% or more in the case of Eastbourne Capital Management, LLC and its affiliates (“Eastbourne”) of the Company’s Common Stock or (b) the tenth
business day (or such later date as may be determined by the Company’s Board of Directors) after a person or group announces a tender or exchange offer, the consummation of which would result in ownership by a person or group of 15% or more (or
20% or more in the case of Eastbourne of the Company’s Common Stock. The earlier of such date is referred to as the “Distribution Date”.
		
	 Preferred Stock

Purchasable Upon Exercise
 of
Rights:
	  	After the Distribution Date, each Right will entitle the holder to purchase for $40.00 (forty dollars) (the “Exercise Price”), one thousandth (0.001) of a
share of the Company’s Preferred Stock with economic terms similar to that of one share of the Company’s Common Stock.
		
	Flip-In:	  	If an acquirer (an “Acquiring Person”) obtains 15% or more of the Company’s Common Stock (or with respect to Eastborne, 20% or more), then each
Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of shares of the Company’s Common Stock having a then-current market value of twice the
Exercise Price.
		
	Flip-Over:	  	If, after an Acquiring Person obtains 15% or more of the Company’s Common Stock (or with respect to Eastborne, 20% or more), (a) the Company merges into another entity, (b) an
acquiring entity merges into the Company or (c) the Company sells more than 50% of the Company’s assets or earning power,

  
 56 

			
		
		  	then each Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of shares of Common
Stock of the person engaging in the transaction having a then current market value of twice the Exercise Price.
		
	Exchange Provision:	  	At any time after the date on which an Acquiring Person obtains 15% or more of the Company’s Common Stock (or with respect to Eastborne, 20% or more), and prior to the
acquisition by the Acquiring Person of 50% of the outstanding Common Stock, the Board of Directors of the Company may exchange the Rights (other than Rights owned by the Acquiring Person or its affiliates), in whole or in part, for shares of Common
Stock of the Company at an exchange ratio of one share of Common Stock per Right (subject to adjustment).
		
	Redemption of the Rights:	  	Rights will be redeemable at the Company’s option for $0.001 per Right at any time on or prior to the fifth day (or such later date as may be determined by the Company’s
Board of Directors) after public announcement that a Person has acquired beneficial ownership of 15% or more of the Company’s Common Stock (or with respect to Eastborne, 20% or more) (the “Shares Acquisition
Date”).
		
	Expiration of the Rights:	  	The Rights expire on the earliest of (a) May 12, 2015 or (b) exchange or redemption of the Rights as described above.
		
	Amendment of Terms of Rights:	  	The terms of the Rights and the Rights Agreement may be amended in any respect without the consent of the Rights holders on or prior to the Distribution Date; thereafter, the terms
of the Rights and the Rights Agreement may be amended without the consent of the Rights holders in order to cure any ambiguities or to make changes which do not adversely affect the interests of Rights holders (other than the Acquiring
Person).
		
	Voting Rights:	  	Rights will not have any voting rights.
		
	Anti-Dilution Provisions:	  	Rights will have the benefit of certain customary anti-dilution provisions.
		
	Taxes:	  	The Rights distribution should not be taxable for federal income tax purposes. However, following an event which renders the Rights exercisable or upon redemption of the Rights,
stockholders may recognize taxable income.

 The foregoing is a summary of certain principal terms of the Stockholder Rights Plan only and is qualified in its
entirety by reference to the Preferred Stock Rights Agreement dated as of April 28, 2005 between the Company and Mellon Investor Service LLC, as Rights Agent (the “Rights

  
 57 

 
Agreement”). The Rights Agreement may be amended from time to time. A copy of the Rights Agreement was filed with the Securities and Exchange Commission as an Exhibit to a
Registration Statement on Form 8-A dated                     , 2005. A copy of the Rights Agreement is available free of charge from the
Company. 

  
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