Document:

3-YEAR CREDIT AGREEMENT DATED AS OF NOVEMBER 26, 2003

 $562,500,000 
  
 3-YEAR 
 CREDIT AGREEMENT 
  
 dated as of 
  
 November 26, 2003 
  
 among 
  
 Consolidated Edison Company of New York, Inc. 
  
 Consolidated Edison, Inc. 
  
 Orange and Rockland 
 Utilities, Inc.

  
 The Banks Party Hereto 
  
 and 
  
 JPMorgan Chase Bank, 
 as Administrative Agent 
  

  
 Citibank, N.A., 
 Syndication Agent 
  
 The Bank of New York 
 HSBC Bank USA

 Mellon Bank, N.A., 
 Co-Documentation Agents 
  

  
 J.P. Morgan Securities Inc. 
  

and 
  
 Citigroup Global Markets Inc., 
 Lead Arrangers 
  

  
 TABLE OF CONTENTS

  

  

			
	 	  	PAGE

	ARTICLE 1    DEFINITIONS	  	 
		
	 SECTION 1.01. Definitions
	  	1
	 SECTION 1.02. Accounting Terms and Determinations
	  	17
	 SECTION 1.03. Types of Borrowings
	  	18
		
	ARTICLE 2    THE CREDITS	  	 
		
	 SECTION 2.01. Commitments
	  	18
	 SECTION 2.02. Notice of Committed Borrowing
	  	19
	 SECTION 2.03. Money Market Borrowings
	  	19
	 SECTION 2.04. Notice to Banks; Funding of Loans
	  	23
	 SECTION 2.05. Maturity of Loans
	  	24
	 SECTION 2.06. Interest Rates
	  	24
	 SECTION 2.07. Method of Electing Interest Rates
	  	27
	 SECTION 2.08. Fees
	  	29
	 SECTION 2.09. Termination or Reduction of Commitments
	  	30
	 SECTION 2.10. Optional Prepayments
	  	30
	 SECTION 2.11. General Provisions as to Payments
	  	31
	 SECTION 2.12. Funding Losses
	  	32
	 SECTION 2.13. Computation of Interest and Fees
	  	32
	 SECTION 2.14. Notes
	  	32
	 SECTION 2.15. Regulation D Compensation
	  	33
	 SECTION 2.16. Change of Control
	  	33
	 SECTION 2.17. Letters of Credit
	  	33
		
	ARTICLE 3    CONDITIONS	  	 
		
	 SECTION 3.01. Effectiveness
	  	39
	 SECTION 3.02. Borrowings and Issuances of Letters of Credit
	  	41

  

			
		
	ARTICLE 4    REPRESENTATIONS AND WARRANTIES	  	 
		
	 SECTION 4.01. Corporate Existence and Power
	  	42
	 SECTION 4.02. Corporate and Governmental Authorization; No Contravention
	  	42
	 SECTION 4.03. Binding Effect
	  	42
	 SECTION 4.04. Financial Information
	  	42
	 SECTION 4.05. Litigation
	  	43
	 SECTION 4.06. Compliance with ERISA
	  	43
	 SECTION 4.07. Environmental Matters
	  	43
	 SECTION 4.08. Taxes
	  	44
	 SECTION 4.09. Subsidiaries
	  	44
	 SECTION 4.10. Regulatory Restrictions on Borrowing
	  	44
	 SECTION 4.11. Full Disclosure
	  	44
		
	ARTICLE 5    COVENANTS	  	 
		
	 SECTION 5.01. Information
	  	45
	 SECTION 5.02. Payment of Obligations
	  	47
	 SECTION 5.03. Maintenance of Property; Insurance
	  	47
	 SECTION 5.04. Conduct of Business and Maintenance of Existence
	  	47
	 SECTION 5.05. Compliance with Laws
	  	48
	 SECTION 5.06. Inspection of Property, Books and Records
	  	48
	 SECTION 5.07. Consolidations, Mergers and Transfers of Assets
	  	49
	 SECTION 5.08. Use of Proceeds
	  	49
	 SECTION 5.09. Negative Pledge
	  	50
	 SECTION 5.10. Debt to Total Capital
	  	51
	 SECTION 5.11. Transactions with Affiliates
	  	51
		
	ARTICLE 6    DEFAULTS	  	 
		
	 SECTION 6.01. Events of Default
	  	51
	 SECTION 6.02. Notice of Default
	  	54
	 SECTION 6.03. Cash Cover
	  	54
		
	ARTICLE 7    THE AGENTS	  	 
		
	 SECTION 7.01. Appointment and Authorization
	  	55
	 SECTION 7.02. Administrative Agent and Affiliates
	  	55
	 SECTION 7.03. Action by Administrative Agent
	  	55
	 SECTION 7.04. Consultation with Experts
	  	55
	 SECTION 7.05. Liability of Administrative Agent
	  	55

  

			
	 SECTION 7.06. Indemnification
	  	56
	 SECTION 7.07. Credit Decision
	  	56
	 SECTION 7.08. Successor Administrative Agent
	  	56
	 SECTION 7.09. Administrative Agent’s Fee
	  	57
	 SECTION 7.10. Other Agents
	  	57
		
	ARTICLE 8    CHANGE IN CIRCUMSTANCES	  	 
		
	 SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair
	  	57
	 SECTION 8.02. Illegality
	  	58
	 SECTION 8.03. Increased Cost and Reduced Return
	  	58
	 SECTION 8.04. Taxes
	  	60
	 SECTION 8.05. Base Rate Loans Substituted for Affected Fixed Rate Loans
	  	62
	 SECTION 8.06. Substitution of Bank
	  	63
		
	ARTICLE 9    MISCELLANEOUS	  	 
		
	 SECTION 9.01. Notices
	  	63
	 SECTION 9.02. No Waivers
	  	63
	 SECTION 9.03. Expenses; Indemnification
	  	63
	 SECTION 9.04. Set-Offs
	  	64
	 SECTION 9.05. Amendments and Waivers
	  	65
	 SECTION 9.06. Successors and Assigns
	  	65
	 SECTION 9.07. Designated Lenders
	  	68
	 SECTION 9.08. No Reliance on Margin Stock
	  	69
	 SECTION 9.09. Confidentiality
	  	69
	 SECTION 9.10. Governing Law; Submission to Jurisdiction
	  	70
	 SECTION 9.11. Counterparts; Integration
	  	70
	 SECTION 9.12. WAIVER OF JURY TRIAL
	  	70

  

					
	 COMMITMENT SCHEDULE

	 PRICING SCHEDULES

			
	 EXHIBIT A
	  	–	  	Note
	 EXHIBIT B
	  	–	  	Money Market Quote Request
	 EXHIBIT C
	  	–	  	Invitation for Money Market Quotes
	 EXHIBIT D
	  	–	  	Money Market Quote
	 EXHIBIT E
	  	–	  	Opinion of Counsel for ConEd
	 EXHIBIT F
	  	–	  	Opinion of Counsel for Holdings
	 EXHIBIT G
	  	–	  	Opinion of Counsel for O&R
	 EXHIBIT H
	  	–	  	Opinion of Special Counsel for the Administrative Agent
	 EXHIBIT I
	  	–	  	Assignment and Assumption Agreement
	 EXHIBIT J
	  	–	  	Designation Agreement

  

  
 AGREEMENT dated as of
November 26, 2003 among CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., CONSOLIDATED EDISON, INC., ORANGE AND ROCKLAND UTILITIES, INC., the BANKS party hereto and JPMORGAN CHASE BANK, as Administrative Agent. 
  
 The parties hereto agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS 
  
 SECTION 1.1. Definitions. The following terms, as used herein, have the following meanings: 
  
 “Absolute Rate Auction” means a solicitation of Money Market
Quotes setting forth Money Market Absolute Rates pursuant to Section 2.03. 
  
 “Adjusted CD Rate” has the meaning set forth in Section 2.06(b). 
  
 “Administrative Questionnaire” means, with respect to each Bank, an administrative questionnaire in the form prepared by the
Administrative Agent, completed by such Bank and returned to the Administrative Agent (with a copy to each Borrower). 
  
 “Affiliate” means, with respect to any Borrower, (i) any Person that directly, or indirectly through one or more intermediaries, controls
such Borrower (a “Controlling Person”) or (ii) any Person (other than such Borrower or a Subsidiary of such Borrower) which is controlled by or is under common control with a Controlling Person. As used herein, the term
“control” means possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

 
 “Administrative Agent” means JPMorgan Chase Bank in its
capacity as administrative agent for the Banks hereunder, and its successors in such capacity. 
  
 “Agent” means any of the Administrative Agent, Co-Documentation Agents and the Syndication Agent, and “Agents” means any two or more of the foregoing. 
  
 “Applicable Lending Office” means, with respect to any Bank,
(i) in the case of its Domestic Loans, its Domestic Lending Office, (ii) in the case of its 

  

 
Euro-Dollar Loans, its Euro-Dollar Lending Office and (iii) in the case of its Money Market Loans, its Money Market Lending Office. 
  
 “Appropriate Share” has the meaning set forth in Section
8.03(d). 
  
 “Approved Fund” means any Fund that
is administered or managed by (i) a Bank, (ii) an affiliate of a Bank or (iii) an entity or an affiliate of an entity that administers or manages a Bank. 
  
 “Assessment Rate” has the meaning set forth in Section 2.06(b). 
  
 “Availability Share” means (i) 44.44444445% with respect to ConEd, (ii) 8.88888889% with respect to O&R
and (iii) 46.66666667% with respect to Holdings; provided if the Commitments are terminated pursuant to Section 6.01 with respect to less than all Borrowers, the Availability Share of each Borrower with respect to which the Commitments are
not terminated shall be redetermined to be equal to the percentage which its Maximum Availability bears to the aggregate Maximum Availabilities of all Borrowers as to which the Commitments have not been so terminated. 
  
 “Bank” means (i) each bank or other institution listed on
the Commitment Schedule, (ii) each Eligible Assignee which becomes a Bank pursuant to Section 9.06(b) and (iii) their respective successors. 
  
 “Base Rate” means, for any day, a rate per annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum of 1⁄2 of 1%
plus the Federal Funds Rate for such day. 
  
 “Base Rate
Loan” means a Committed Loan which bears interest at the Base Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election or the provisions of Section 2.07(a) or Article 8. 
  
 “BGS” means basic generation service transition costs, which
is defined under the Securitization Act to mean (i) the amount by which (A) the payment by an electric public utility for the procurement of power for basic generation service and related ancillary and administrative costs exceeds (B) the net
revenues from the basic generation service charge established by the Board of Public Utilities (the “Board”) for the period from and including August 1, 1999 through and including July 31, 2003 and (ii) interest on such amount at
the Board-approved rate that is reflected in a deferred balance account approved by the Board; provided that BGS shall include, but not be limited to, costs of purchases from the spot market, bilateral contracts, contracts with non-utility
generators, parting contracts with the purchaser of the electric public utility’s divested generation 

  

 2 

 
assets, short-term advance purchases, and financial instruments such as hedging contracts, forward contracts and options. 
  
 “Borrower” means each of ConEd, Holdings and O&R.
References herein to “a Borrower” or “the Borrower” in connection with any Loan or Group of Loans hereunder are to the particular Borrower to which such Loan or Loans are made or proposed to be made. 
  
 “Borrower’s 2002 Form 10-K” means, with respect to a
Borrower, such Borrower’s annual report on Form 10-K for the year ended December 31, 2002, as filed with the SEC pursuant to the Exchange Act. 
  
 “Borrower’s Latest Form 10-Q” means, with respect to a Borrower, such Borrower’s quarterly report on Form 10-Q for the quarter
ended September 30, 2003, as filed with the SEC pursuant to the Exchange Act. 
  
 “Borrowing” has the meaning set forth in Section 1.03. 
  
 “CD Base Rate” has the meaning set forth in Section 2.06(b). 
  
 “CD Loan” means a Committed Loan which bears interest at a CD Rate pursuant to the applicable Notice of
Committed Borrowing or Notice of Interest Rate Election. 
  
 “CD Margin” means a rate per annum determined in accordance with the Pricing Schedule. 
  
 “CD Rate” means a rate of interest determined pursuant to Section 2.06(b) on the basis of an Adjusted CD Rate. 
  
 “CD Reference Banks” means Citibank, N.A. and JPMorgan Chase
Bank. 
  
 “Change of Control” means: (i) with
respect to any Borrower, if any person or group of persons (within the meaning of Section 13 or 14 of the Exchange Act) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated by the SEC under said Act) of 30% or more
of the outstanding shares of common stock of Holdings; or, during any period of 12 consecutive calendar months, individuals who were trustees of Holdings on the first day of such period shall cease to constitute a majority of Holdings’ board of
trustees and (ii) with respect to ConEd or O&R, if such Borrower ceases to be a Subsidiary of Holdings. 
  

 3 

 “Co-Documentation Agent” means each of HSBC Bank USA, The Bank of New York, and Mellon
Bank, N.A. in its capacity as the co-documentation agent hereunder. 
  
 “Commitment” means (i) with respect to each Bank listed on the Commitment Schedule, the amount set forth opposite such Bank’s name on the Commitment Schedule and (ii) with respect to any Eligible Assignee which becomes
a Bank pursuant to Section 9.06(b), the amount of the transferor Bank’s Commitment assigned to it pursuant to Section 9.06(b), in each case as such amount may be changed from time to time pursuant to Section 2.09 or 9.06(b); provided
that, if the context so requires, the term “Commitment” means the obligation of a Bank to extend credit up to such amount to the Borrowers hereunder. 
  

“Commitment Schedule” means the Commitment Schedule attached hereto. 
  
 “Committed Loan” means a loan made by a Bank pursuant to Section 2.01(a); provided that, if any such
loan or loans (or portions thereof) are combined or subdivided pursuant to a Notice of Interest Rate Election, the term “Committed Loan” shall refer to the combined principal amount resulting from such combination or to each of the
separate principal amounts resulting from such subdivision, as the case may be. 
  
 “ConEd” means Consolidated Edison Company of New York, Inc., a New York corporation and wholly-owned Subsidiary of Holdings, and its successors. 
  
 “ConEd Settlement Agreement” means the Amended and Restated
Settlement Agreement dated September 19, 1997, among ConEd, the staff of the PSC and certain other parties, as filed with the SEC in ConEd’s Current Report on Form 8-K on September 23, 1997. 
  
 “Consolidated Debt” means, with respect to a Borrower, at
any date, the Debt (other than Non-recourse Debt) of such Borrower and its Consolidated Subsidiaries, determined on a consolidated basis as of such date. 
  
 “Consolidated Subsidiary” means, with respect to a Borrower, at any date, any Subsidiary or other entity the accounts of which would be
consolidated with those of such Borrower in its consolidated financial statements if such statements were prepared as of such date. 
  
 “Consolidated Total Capital” means, with respect to a Borrower, at any date, the sum of (x) Consolidated Debt plus (y) consolidated
stockholders’ equity of such Borrower and its Consolidated Subsidiaries (including for this purpose 

  

 4 

 
any amount attributable to stock which is required to be redeemed or is redeemable at the option of the holder, if certain events or conditions occur or
exist or otherwise), in each case determined at such date less (z) to the extent reflected in such consolidated stockholders’ equity, any excess of the net book value of assets or rights to receive revenue in respect of Electric and/or Steam
Stranded Cost subject to Liens securing Non-recourse Debt over the amount of the related Non-recourse Debt. 
  
 “Credit Exposure” means, with respect to any Bank at any time, (i) the amount of its Commitment (whether used or unused) at such time or
(ii) if the Commitments have terminated in their entirety, the aggregate outstanding principal amount of its Loans and Letter of Credit Liabilities at such time. 
  
 “Debt” of any Person means, at any date, without duplication, (i) all obligations of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable
arising in the ordinary course of business, (iv) all obligations of such Person as lessee which are capitalized in accordance with GAAP, (v) all non-contingent obligations (and, for purposes of Section 5.09 and the definitions of Material Debt and
Material Financial Obligations, all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit or similar instrument, (vi) all Debt secured by a Lien on any asset of such Person,
whether or not such Debt is otherwise an obligation of such Person, and (vii) all Guarantees by such Person of Debt of another Person (each such Guarantee to constitute Debt in an amount equal to the amount of such other Person’s Debt
Guaranteed thereby). 
  
 “Default” means, with
respect to a Borrower, any condition or event which constitutes an Event of Default with respect to such Borrower or which with the giving of notice or lapse of time or both would, unless cured or waived, become an Event of Default with respect to
such Borrower. 
  
 “Derivatives Obligations” of
any Person means all obligations of such Person in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any
of the foregoing transactions) or any combination of the foregoing transactions. 
  

 5 

 “Designated Lender” means, with respect to any Designating Bank, an Eligible Designee
designated by it pursuant to Section 9.07(a) as a Designated Lender for purposes of this Agreement. 
  
 “Designating Bank” means, with respect to each Designated Lender, the Bank that designated such Designated Lender pursuant to Section
9.07(a). 
  
 “Domestic Business Day” means any
day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close. 
  
 “Domestic Lending Office” means, as to each Bank, its office located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office) or such other office as such Bank may hereafter designate as its Domestic Lending Office by notice to each Borrower and the Administrative Agent; provided that any
Bank may so designate separate Domestic Lending Offices for its Base Rate Loans, on the one hand, and its CD Loans, on the other hand, in which case all references herein to the Domestic Lending Office of such Bank shall be deemed to refer to either
or both of such offices, as the context may require. 
  
 “Domestic Loans” means CD Loans or Base Rate Loans or both. 
  
 “Domestic Reserve Percentage” has the meaning set forth in Section 2.06(b). 
  
 “EDECA” means the Electric Discount and Energy Competition Act, P.L. 1999. ch. 23, N.J.S.A. 48:3-49 et seq., as amended, or any successor
statute. 
  
 “Effective Date” means the date this
Agreement becomes effective in accordance with Section 3.01. 
  
 “Electric and/or Steam Stranded Cost” means (i) charges in respect of prior utility investments and commitments (including investments in ConEd’s and O&R’s fossil-fueled generating plants and certain of
ConEd’s nuclear generating units and commitments for decommissioning of ConEd’s nuclear generating operations), (ii) charges under ConEd’s and O&R’s contracts with non-utility generators for electric power and energy, (iii)
charges in respect of prior utility investments and commitments in ConEd’s steam system and (iv) charges under ConEd’s contracts with non-utility steam suppliers. 
  
 “Eligible Assignee” means (i) a Bank; (ii) an affiliate of a Bank; (iii) an Approved Fund; and (iv) any
other Person (other than a natural Person) approved by the Administrative Agent, the Issuing Bank and, unless (x) such Person is 

  

 6 

 
taking delivery of an assignment in connection with physical settlement of a credit derivatives transaction or (y) an Event of Default has occurred and is
continuing with respect to such Borrower, each Borrower (each such approval not to be unreasonably withheld or delayed). If the consent of a Borrower to an assignment or to an Eligible Assignee is required hereunder (including a consent to an
assignment which does not meet the minimum assignment thresholds specified in paragraph (b)(i) of Section 9.06), such Borrower shall be deemed to have given its consent five Domestic Business Days after the date notice thereof has been delivered by
the assigning Bank (through the Administrative Agent) unless such consent is expressly refused by such Borrower prior to such fifth Domestic Business Day. 
  
 “Eligible Designee” means a special purpose corporation that (i) is organized under the laws of the United States or any state thereof,
(ii) is engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course of its business and (iii) issues (or the parent of which issues) commercial paper rated at least A-1 or the equivalent thereof by S&P or at
least P-1 or the equivalent thereof by Moody’s. 
  
 “Environmental Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to the environment or the effect of the environment on human health or to emissions, discharges or releases of pollutants, contaminants, Hazardous Substances or wastes
into the environment, including (without limitation) ambient air, surface water, ground water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants,
contaminants, Hazardous Substances or wastes or the clean-up or other remediation thereof. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute. 
  
 “ERISA Group” means with respect to a Borrower, such Borrower, any Subsidiary of such Borrower and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under common control which, together with such Borrower or any Subsidiary of such Borrower, are treated as a single employer under Section 414 of the Internal Revenue Code.

  
 “Euro-Dollar Business Day” means any Domestic
Business Day on which commercial banks are open for international business (including dealings in dollar deposits) in London. 
  

 7 

 “Euro-Dollar Lending Office” means, as to each Bank, its office, branch or affiliate
located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or affiliate of such Bank as it may hereafter designate as its
Euro-Dollar Lending Office by notice to each Borrower and the Administrative Agent. 
  
 “Euro-Dollar Loan” means a Committed Loan which bears interest at a Euro-Dollar Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election. 
  
 “Euro-Dollar Margin” means a rate per annum determined in
accordance with the Pricing Schedule. 
  
 “Euro-Dollar
Rate” means a rate of interest determined pursuant to Section 2.06(c) on the basis of a London Interbank Offered Rate. 
  
 “Euro-Dollar Reference Banks” means the principal London offices of Citibank, N.A. and JPMorgan Chase Bank. 
  
 “Euro-Dollar Reserve Percentage” means, for any day, that
percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement for a member bank of the Federal Reserve
System in New York City with deposits exceeding five billion dollars in respect of “Eurocurrency liabilities” (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on
Euro-Dollar Loans is determined or any category of extensions of credit or other assets which includes loans by a non-United States office of any Bank to United States residents). 
  
 “Events of Default” has the meaning set forth in Section 6.01. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time. 
  
 “Existing Credit
Agreements” means (i) the $387,500,000 364-Day Credit Agreement dated as of November 27, 2002 among Con Ed, Holdings, O&R, the banks party thereto and JPMorgan Chase Bank, as agent for such banks and (ii) the $175,000,000 Five-Year
Credit Agreement dated as of December 3, 1998, as amended by Amendment No. 1 dated as of November 7, 2000 and as amended by Amendment No. 2 dated as of June 10, 2002, among Holdings, the banks party thereto and JPMorgan Chase Bank (formerly known as
The Chase 

  

 8 

 
Manhattan Bank), as agent for such banks, in each case as amended or otherwise modified from time to time. 
  
 “Existing 3-Year Credit Agreement” means the $387,500,000
3-Year Credit Agreement (as amended from time to time) dated as of November 27, 2002 among Con Ed, Holdings, O&R, the banks party thereto and JPMorgan Chase Bank, as agent for such banks, and any refinancing, replacement or renewal thereof.

  
 “Federal Funds Rate” means, for any day, the
rate per annum (rounded upward, if necessary, to the nearest 1/100 of 1%) 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 Domestic Business Day next succeeding such day, provided that (i) if such day is not a Domestic Business Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Domestic Business Day as so published on the next succeeding Domestic Business Day and (ii) if no such rate is so published on such next succeeding Domestic Business Day, the Federal Funds Rate for such day shall be the average
rate quoted to JPMorgan Chase Bank on such day on such transactions as determined by the Administrative Agent. 
  
 “FERC” means the Federal Energy Regulatory Commission. 
  
 “Fiscal Quarter” means, with respect to a Borrower, a fiscal quarter of such Borrower. 
  
 “Fiscal Year” means, with respect to a Borrower, a fiscal
year of such Borrower. 
  
 “Fixed Rate Loans”
means CD Loans or Euro-Dollar Loans or Money Market Loans (excluding Money Market LIBOR Loans bearing interest at the Base Rate pursuant to Section 8.01) or any combination of the foregoing. 
  
 “Fund” means any Person (other than a natural Person) that
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 its business. 
  
 “GAAP” means, with respect to a Borrower, generally accepted accounting principles as in effect from time
to time, applied on a basis consistent (except for changes concurred in by such Borrower’s independent public accountants) with the most recent audited consolidated financial statements of such Borrower and its Consolidated Subsidiaries
delivered to the Banks. 
  

 9 

 “Group of Loans” means, at any time, a group of Loans consisting of (i) all Committed
Loans which are Base Rate Loans at such time, (ii) all Euro-Dollar Loans having the same Interest Period at such time or (iii) all CD Loans having the same Interest Period at such time, provided that, if a Committed Loan of any particular
Bank is converted to or made as a Base Rate Loan pursuant to Article 8, such Loan shall be included in the same Group or Groups of Loans from time to time as it would have been in if it had not been so converted or made. 
  
 “Guarantee” by any Person means any obligation, contingent
or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Debt (whether arising by virtue of partnership arrangements, by virtue of an agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise), (ii) to reimburse a bank for amounts drawn under a letter of credit for the purpose of paying such Debt or (iii) entered into for the purpose of assuring in any other manner the holder of such Debt of
the payment thereof or to protect such holder against loss in respect thereof (in whole or in part), provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business. The
term “Guarantee” used as a verb has a corresponding meaning. 
  
 “Hazardous Substances” means any toxic, radioactive, caustic or otherwise hazardous substance, including petroleum, its derivatives and by-products and other hydrocarbons, or any substance having any constituent elements
displaying any of the foregoing characteristics. 
  
 “Holdings” means Consolidated Edison, Inc. a New York corporation and the sole common shareholder of each of ConEd and O&R. 
  
 “Indemnitee” has the meaning set forth in Section 9.03(b). 
  
 “Interest Period” means: (1) with respect to each Euro-Dollar Loan, the period commencing on the date of
borrowing specified in the applicable Notice of Borrowing or on the date specified in an applicable Notice of Interest Rate Election and ending one, two, three or six months thereafter, as the Borrower may elect in such notice; provided that:

  
 (a) any Interest Period which would otherwise
end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business 

  

 10 

 
Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Euro-Dollar Business Day; 
  
 (b) any Interest Period which begins on the last Euro-Dollar
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to clause (c) below, end on the last Euro-Dollar Business Day of a calendar
month; and 
  
 (c) any Interest Period which
would end after the Termination Date shall end on the Termination Date; 
  
 (2) with respect to each CD Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing or on the date specified in an applicable Notice of Interest Rate Election and ending 30, 60, 90 or 180 days
thereafter, as the Borrower may elect in such notice; provided that: 
  
 (a) any Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall, subject to clause (b) below, be extended to the next succeeding Euro-Dollar Business Day; and 
  
 (b) any Interest Period which would end after the
Termination Date shall end on the Termination Date; 
  
 (3) with
respect to each Money Market LIBOR Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing and ending such whole number of months thereafter as the Borrower may elect in accordance with Section 2.03;
provided that: 
  
 (a) any Interest Period
which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period
shall end on the next preceding Euro-Dollar Business Day; 
  
 (b) any Interest Period which begins on the last Euro-Dollar Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period)
shall, subject to clause (c) below, end on the last Euro-Dollar Business Day of a calendar month; and 
  
 (c) any Interest Period which would end after the Termination Date shall end on the Termination Date; 
  

 11 

 (4) with respect to each Money Market Absolute Rate Loan, the period commencing on the date of borrowing
specified in the applicable Notice of Borrowing and ending such number of days thereafter (but not less than 7 days) as the Borrower may elect in accordance with Section 2.03; provided that: 
  
 (a) any Interest Period which would otherwise end on a day
which is not a Euro-Dollar Business Day shall, subject to clause (b) below, be extended to the next succeeding Euro-Dollar Business Day; and 
  
 (b) any Interest Period which would end after the Termination Date shall end on the Termination Date. 
  
 “Internal Revenue Code” means the Internal Revenue Code of
1986, as amended, or any successor statute. 
  
 “Issuing
Bank” means JPMorgan Chase Bank or any other Bank designated by a Borrower that may agree to issue letters of credit hereunder pursuant to an instrument in form reasonably satisfactory to the Administrative Agent, each in its capacity as an
issuer of a Letter of Credit hereunder. 
  
 “Letter of
Credit” means a letter of credit to be issued hereunder by an Issuing Bank. 
  
 “Letter of Credit Liabilities” means, for any Bank and at any time, such Bank’s ratable participation in the sum of (x) the aggregate amount then owing by all Borrowers in respect of amounts paid
by the Issuing Bank upon a drawing under a Letter of Credit issued hereunder and (y) the aggregate amount then available for drawing under all outstanding Letters of Credit. 
  
 “Letter of Credit Termination Date” means the fifth Domestic Business Day prior to the Termination Date.

  
 “LIBOR Auction” means a solicitation of Money
Market Quotes setting forth Money Market Margins based on the London Interbank Offered Rate pursuant to Section 2.03. 
  
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other
type of preferential arrangement that has substantially the same practical effect as a security interest, in respect of such asset. For purposes hereof, a Borrower or any of its Subsidiaries shall be deemed to own subject to a Lien any asset which
it has acquired or holds subject to the interest of a vendor or lessor under any 

  

 12 

 
conditional sale agreement, capital lease or other title retention agreement relating to such asset. 
  
 “Loan” means a Committed Loan or a Money Market Loan and
“Loans” means Committed Loans or Money Market Loans or any combination of the foregoing. 
  
 “London Interbank Offered Rate” has the meaning set forth in Section 2.06(c). 
  
 “Material Adverse Effect” means, with respect to a Borrower,
(i) a material adverse effect upon the business, financial condition or results of operations of such Borrower and its Subsidiaries, taken as a whole; (ii) a material adverse effect on the ability of such Borrower to perform its obligations under
this Agreement and the Notes; or (iii) a material adverse effect on the rights and remedies of the Administrative Agent, the Issuing Bank and the Banks under this Agreement and the Notes. 
  
 “Material Debt” means, with respect to a Borrower, Debt (except (i) Debt outstanding hereunder and (ii)
Non-recourse Debt) of such Borrower and/or one or more of its Subsidiaries, arising in one or more related or unrelated transactions, in an aggregate principal or face amount exceeding $100,000,000. 
  
 “Material Financial Obligations” means, with respect to a
Borrower, a principal or face amount of Debt (other than (i) the Loans and (ii) Non-recourse Debt) and/or payment or collateralization obligations in respect of Derivatives Obligations of such Borrower and/or one or more of its Subsidiaries, arising
in one or more related or unrelated transactions, exceeding in the aggregate $100,000,000. 
  
 “Material Plan” means, at any time, a Plan or Plans having aggregate Unfunded Liabilities in excess of $100,000,000. 
  
 “Material Subsidiary” means, with respect to a Borrower, at any time, any Subsidiary of the Borrower
that is a “significant subsidiary” (as such term is defined in Regulation S-X of the SEC (17 C.F.R. §210.1-02(w) (or any successor provision)), but treating all references therein to the “registrant” as
references to the Borrower). 
  
 “Maximum
Availability” means, subject to Section 6.01, (i) for O&R, $50,000,000, (ii) for Holdings, $262,500,000 and (iii) for Con Ed, the aggregate amount of the Commitments. 
  

 13 

 “Money Market Absolute Rate” has the meaning set forth in Section 2.03(d). 

 
 “Money Market Absolute Rate Loan” means a loan made or to
be made by a Bank pursuant to an Absolute Rate Auction. 
  
 “Money Market Lending Office” means, as to each Bank, its Domestic Lending Office or such other office, branch or affiliate of such Bank as it may hereafter designate as its Money Market Lending Office by notice to each
Borrower and the Administrative Agent; provided that any Bank may from time to time by notice to each Borrower and the Administrative Agent designate separate Money Market Lending Offices for its Money Market LIBOR Loans, on the one hand, and
its Money Market Absolute Rate Loans, on the other hand, in which case all references herein to the Money Market Lending Office of such Bank shall be deemed to refer to either or both of such offices, as the context may require. 
  
 “Money Market LIBOR Loan” means a loan made or to be made by
a Bank pursuant to a LIBOR Auction (including any such loan bearing interest at the Base Rate pursuant to Section 8.01). 
  
 “Money Market Loan” means a Money Market LIBOR Loan or a Money Market Absolute Rate Loan. 
  
 “Money Market Margin” has the meaning set forth in Section
2.03(d)(ii)(C). 
  
 “Money Market Quote” means an
offer by a Bank to make a Money Market Loan in accordance with Section 2.03. 
  
 “Multiemployer Plan” means, at any time, an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an
obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period. 
  
 “Non-recourse Debt” of any Person means Debt secured by a
Lien on one or more assets or rights to receive revenue in respect of Electric and/or Steam Stranded Cost of such Person where the rights and remedies of the holder of such Debt in respect of such Debt do not extend to any other assets or rights to
receive revenue in respect of Electric and/or Steam Stranded Cost of such Person (including, with respect to ConEd and O&R, Liens arising as a result of securitization of BGS by RECO pursuant to the EDECA and the Securitization Act) and, if such
Person is organized under the laws of or doing business in the 

  

 14 

 
United States or any political subdivision thereof or therein, as to which such holder has effectively waived (or subordinated in favor of the Banks) such
holder’s right to make the election provided under 11 U.S.C. § 1111(b)(1)(A). 
  
 “Notes” means promissory notes of a Borrower, substantially in the form of Exhibit A hereto, evidencing the obligation of such Borrower to repay the Loans made to it, and “Note” means
any one of such promissory notes issued hereunder. 
  
 “Notice of Borrowing” means a Notice of Committed Borrowing (as defined in Section 2.02) or a Notice of Money Market Borrowing (as defined in Section 2.03(f)). 
  
 “Notice of Interest Rate Election” has the meaning set forth in Section 2.07. 
  
 “O&R” means Orange and Rockland Utilities, Inc., a New
York corporation and wholly-owned Subsidiary of Holdings, and its successors. 
  
 “O&R Settlement Agreement” means the Settlement Agreement dated November 6, 1997 among O&R, the staff of the PSC and certain other parties, as filed with the SEC in O&R’s Current
Report on Form 8-K on November 25, 1997. 
  
 “Parent” means, with respect to any Bank, any Person controlling such Bank. 
  
 “Participant” has the meaning set forth in Section 9.06(d). 
  
 “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its
functions under ERISA. 
  
 “Percentage” means,
with respect to any Bank at any time, the percentage which the amount of its Commitment at such time represents of the aggregate amount of all the Commitments at such time. At any time after the Commitments shall have terminated, the term
“Percentage” shall refer to a Bank’s Percentage immediately before such termination, adjusted to reflect any subsequent assignments pursuant to Section 9.06(b). 
  
 “Person” means an individual, a corporation, a limited liability company, a partnership, an association, a
trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  

 15 

 “Plan” means, at any time, an employee pension benefit plan (other than a Multiemployer
Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of
the ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA
Group. 
  
 “Pricing Schedule” means the
appropriate Pricing Schedule for each Borrower attached hereto. 
  
 “Prime Rate” means the rate of interest publicly announced by JPMorgan Chase Bank in New York City from time to time as its Prime Rate. Each change in the Prime Rate shall be effective from and including the day such change
is publicly announced. 
  
 “PSC” means the New
York State Public Service Commission. 
  
 “Quarterly
Payment Dates” means each March 31, June 30, September 30 and December 31. 
  
 “RECO” means Rockland Electric Company, a New Jersey corporation. 
  
 “Reference Banks” means the CD Reference Banks or the Euro-Dollar Reference Banks, as the context may require, and “Reference
Bank” means any one of such Reference Banks. 
  
 “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Reimbursement Obligation” has the meaning specified in Section 2.17(c). 
  
 “Required Banks” means, at any time, Banks having more than 50% in aggregate amount of the Credit Exposures
at such time. 
  
 “Revolving Credit Period” means
the period from and including the Effective Date to but not including the Termination Date. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securitization Act” means P.L. 2002. ch. 84, N.J.S.A. 
  

 16 

 “Subsidiary” means, as to any Person, any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. Unless otherwise specified,
“Subsidiary” means a Subsidiary of a Borrower. 
  
 “Syndication Agent” means Citibank, N.A. in its capacity as syndication agent in respect of this Agreement. 
  
 “Termination Date” means November 26, 2006, or, if such day is not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business
Day. 
  
 “Total Outstanding Amount” means, at any
time, the sum of (i) the aggregate outstanding principal amount of the Loans of the Borrowers (including both Committed Loans and Money Market Loans) determined at such time after giving effect, if one or more Loans are being made at such time, to
any substantially concurrent application of the proceeds thereof to repay one or more other Loans plus, without duplication, (ii) the aggregate amount of the Letter of Credit Liabilities of all Banks at such time. 
  
 “Unfunded Liabilities” means, with respect to any Plan at
any time, the amount (if any) by which (i) the value of all benefit liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market
value of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess
represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA. 
  
 “United States” means the United States of America. 
  
 SECTION 1.2. Accounting Terms and Determinations. Unless otherwise specified herein, all accounting
terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP; provided that, if a Borrower notifies
the Administrative Agent that such Borrower wishes to amend any provision hereof to eliminate the effect of any change in GAAP after the date hereof (or if the Administrative Agent notifies a Borrower that the Required Banks wish to amend any
provision hereof for such purpose), then such provision shall be applied with respect to such Borrower on the basis of GAAP in effect immediately before the relevant change in GAAP became 

  

 17 

 
effective, until either such notice is withdrawn or such provision is amended in a manner satisfactory to the Borrowers and the Required Banks. 

 
 SECTION 1.3. Types of Borrowings. The term
“Borrowing” denotes (i) the aggregation of Loans made or to be made to the same Borrower by one or more Banks pursuant to Article 2 on the same day, all of which Loans are of the same type (subject to Article 8) and, except in the
case of Base Rate Loans, have the same initial Interest Period or (ii) if the context so requires, the borrowing of such Loans. Borrowings are classified for purposes hereof either (i) by reference to the pricing of Loans comprising such Borrowing
(e.g., a “Euro-Dollar Borrowing” is a Borrowing comprised of Euro-Dollar Loans) or (ii) by reference to the provisions of Article 2 under which participation therein is determined (i.e., a “Committed Borrowing” is a
Borrowing under Section 2.01(a) in which all Banks participate in proportion to their Commitments, while a “Money Market Borrowing” is a Borrowing under Section 2.03 in which one or more Banks participate on the basis of their bids).

  
 ARTICLE 2 
  
 THE CREDITS 
  
 SECTION 2.1. Commitments. 
  
 (a) Loans. Each Bank severally agrees, on the terms and conditions set
forth in this Agreement, to make loans to each Borrower pursuant to this Section from time to time during the Revolving Credit Period; provided that, immediately after each such loan is made, (i) the aggregate outstanding principal amount of
such Bank’s Committed Loans to all Borrowers plus the aggregate amount of such Bank’s Letter of Credit Liabilities shall not exceed its Commitment, (ii) the aggregate outstanding principal amount of Loans to any Borrower plus the aggregate
amount of Letter of Credit Liabilities owing by such Borrower shall not exceed the Maximum Availability of such Borrower and (iii) the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments. Within the foregoing limits,
the Borrower may borrow under this subsection, prepay Loans to the extent permitted by Section 2.10 and reborrow at any time during the Revolving Credit Period under this subsection. Loans made to any Borrower shall be the several obligations
of such Borrower. 
  
 (b) Minimum Amounts. Each Borrowing
under this Section shall be in an aggregate principal amount of $5,000,000 or any larger multiple of $1,000,000 (except that any such Borrowing may be in the aggregate amount available within 

  

 18 

 
the limitations set forth above) and shall be made from the several Banks ratably in proportion to their respective Commitments. 
  
 SECTION 2.2. Notice of Committed Borrowing. The
Borrower shall give the Administrative Agent notice (a “Notice of Committed Borrowing”) not later than 10:30 A.M. (New York City time) on (x) the date of each Base Rate Borrowing, (y) the third Domestic Business Day before each CD
Borrowing and (z) the third Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying: 
  
 (a) the date of such Borrowing, which shall be a Domestic Business Day in the case of a Domestic Borrowing or a Euro-Dollar Business Day
in the case of a Euro-Dollar Borrowing; 
  
 (b)
the aggregate amount of such Borrowing; 
  
 (c)
whether the Loans comprising such Borrowing are to bear interest initially at the Base Rate, a CD Rate or a Euro-Dollar Rate; and 
  
 (d) in the case of a CD Borrowing or a Euro-Dollar Borrowing, the duration of the initial Interest Period applicable thereto, subject to
the provisions of the definition of Interest Period. 
  
 SECTION 2.3. Money Market Borrowings. (a) The Money Market Option. In addition to Committed Borrowings pursuant to Section 2.01(a), each Borrower may, as set forth in this Section, request the Banks to make
offers to make Money Market Loans to such Borrower from time to time during the Revolving Credit Period. The Banks may, but shall have no obligation to, make such offers and such Borrower may, but shall have no obligation to, accept any such offers
in the manner set forth in this Section. 
  
 (b) Money Market
Quote Request. When the Borrower wishes to request offers to make Money Market Loans under this Section, it shall transmit to the Administrative Agent by telex or facsimile a Money Market Quote Request substantially in the form of Exhibit B
hereto so as to be received not later than 10:30 A.M. (New York City time) on (x) the fifth Euro-Dollar Business Day before the date of Borrowing proposed therein, in the case of a LIBOR Auction or (y) the Domestic Business Day next preceding the
date of Borrowing proposed therein, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Borrower and the Administrative Agent shall have mutually agreed and shall have notified the Banks not later than the
date of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective) specifying: 
  
 (i) the proposed date of Borrowing, which shall be a Euro-Dollar Business Day in the case of a LIBOR Auction or a Domestic Business Day in
the case of an Absolute Rate Auction, 
  

 19 

 (ii) the aggregate amount of such Borrowing, which shall be $5,000,000 or a larger
multiple of $1,000,000, 
  
 (iii) the duration of
the Interest Period applicable thereto, subject to the provisions of the definition of Interest Period, and 
  
 (iv) whether the Money Market Quotes requested are to set forth a Money Market Margin or a Money Market Absolute Rate. 
  
 The Borrower may request offers to make Money Market Loans for more than one Interest Period
in a single Money Market Quote Request. No Money Market Quote Request shall be given within five Euro-Dollar Business Days (or such other number of days as the Borrower and the Administrative Agent may agree) of any other Money Market Quote Request.

  
 (c) Invitation for Money Market Quotes. Promptly after
receiving a Money Market Quote Request, the Administrative Agent shall send to the Banks by telex or facsimile an Invitation for Money Market Quotes substantially in the form of Exhibit C hereto, which shall constitute an invitation by the Borrower
to each Bank to submit Money Market Quotes offering to make the Money Market Loans to which such Money Market Quote Request relates in accordance with this Section. 
  
 (d) Submission and Contents of Money Market Quotes. (i) Each Bank may submit a Money Market Quote containing an offer
or offers to make Money Market Loans in response to any Invitation for Money Market Quotes. Each Money Market Quote must comply with the requirements of this Section 2.03(d) and must be submitted to the Administrative Agent by telex or facsimile at
its address specified in or pursuant to Section 9.01 not later than (x) 2:00 P.M. (New York City time) on the fourth Euro-Dollar Business Day before the proposed date of Borrowing, in the case of a LIBOR Auction or (y) 9:30 A.M. (New York City time)
on the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Borrower and the Administrative Agent shall have mutually agreed and shall have notified the Banks not later than the date
of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective); provided that Money Market Quotes submitted by the Administrative Agent (or any affiliate of the Administrative
Agent) in the capacity of a Bank may be submitted, and may 

  

 20 

 
only be submitted, if the Administrative Agent or such affiliate notifies the Borrower of the terms of the offer or offers contained therein not later than
(x) one hour before the deadline for the other Banks, in the case of a LIBOR Auction or (y) 15 minutes before the deadline for the other Banks, in the case of an Absolute Rate Auction. Subject to Articles 3 and 6, any Money Market Quote so made
shall not be revocable except with the written consent of the Administrative Agent given on the instructions of the Borrower. 
  
 (ii) Each Money Market Quote shall be substantially in the form of Exhibit D hereto and shall in any case specify: 
  
 (A) the proposed date of Borrowing, 
  
 (B) the principal amount of the Money Market Loan for which
each such offer is being made, which principal amount (w) may be greater than or less than the Commitment of the quoting Bank, (x) must be $5,000,000 or a larger multiple of $1,000,000, (y) may not exceed the principal amount of Money Market Loans
for which offers were requested and (z) may be subject to an aggregate limitation as to the principal amount of Money Market Loans for which offers being made by such quoting Bank may be accepted, 
  
 (C) in the case of a LIBOR Auction, the margin above or
below the applicable London Interbank Offered Rate (the “Money Market Margin”) offered for each such Money Market Loan, expressed as a percentage (specified to the nearest 1/10,000 of 1%) to be added to or subtracted from the
applicable London Interbank Offered Rate, 
  
 (D)
in the case of an Absolute Rate Auction, the rate of interest per annum (specified to the nearest 1/10,000 of 1%) (the “Money Market Absolute Rate”) offered for each such Money Market Loan, and 
  
 (E) the identity of the quoting Bank. 
  
 A Money Market Quote may set forth up to five separate offers by the quoting Bank with
respect to each Interest Period specified in the related Invitation for Money Market Quotes. 
  

 21 

 (iii) Any Money Market Quote shall be disregarded if it: 
  
 (A) is not substantially in conformity with Exhibit D hereto
or does not specify all of the information required by subsection 2.03(d)(ii) above; 
  
 (B) contains qualifying, conditional or similar language; 
  
 (C) proposes terms other than or in addition to those set forth in the applicable Invitation for Money
Market Quotes; or 
  
 (D) arrives after the time
set forth in subsection 2.03(d)(i). 
  
 (e) Notice to
Borrower. The Administrative Agent shall promptly notify the Borrower of the terms of (i) any Money Market Quote submitted by a Bank that is in accordance with Section 2.03(d) and (ii) any Money Market Quote that amends, modifies or is otherwise
inconsistent with a previous Money Market Quote submitted by such Bank with respect to the same Money Market Quote Request. Any such subsequent Money Market Quote shall be disregarded by the Administrative Agent unless such subsequent Money Market
Quote is submitted solely to correct a manifest error in such former Money Market Quote. The Administrative Agent’s notice to the Borrower shall specify (A) the aggregate principal amount of Money Market Loans for which offers have been
received for each Interest Period specified in the related Money Market Quote Request, (B) the respective principal amounts and Money Market Margins or Money Market Absolute Rates, as the case may be, so offered and (C) if applicable, limitations on
the aggregate principal amount of Money Market Loans for which offers in any single Money Market Quote may be accepted. 
  
 (f) Acceptance and Notice by Borrower. Not later than 10:30 A.M. (New York City time) on (x) the third Euro-Dollar Business Day before the proposed
date of Borrowing, in the case of a LIBOR Auction or (y) the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Borrower and the Administrative Agent shall have mutually agreed and
shall have notified the Banks not later than the date of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective), the Borrower shall notify the Administrative Agent of its
acceptance or non-acceptance of the offers of which it has been so notified pursuant to Section 2.03(e). In the case of acceptance, such notice to the Administrative Agent (a “Notice of Money Market Borrowing”) shall specify the
aggregate principal amount of offers for each Interest Period that are accepted. The Borrower may accept any Money Market Quote in whole or in part; provided that: 
  
 (i) the aggregate principal amount of each Money Market Borrowing may not exceed the applicable amount set
forth in the related Money Market Quote Request; 
  

 22 

 (ii) the principal amount of each Money Market Borrowing must be $5,000,000 or a larger
multiple of $1,000,000; 
  
 (iii) acceptance of
offers may only be made on the basis of ascending Money Market Margins or Money Market Absolute Rates, as the case may be; 
  
 (iv) the Borrower may not accept any offer that is described in subsection 2.03(d)(iii) or that otherwise fails to comply with the
requirements of this Agreement; and 
  
 (v)
immediately after such Money Market Borrowing is made, (i) the aggregate outstanding principal amount of Loans to any Borrower shall not exceed the Maximum Availability of such Borrower and (ii) the aggregate outstanding principal amount of the
Loans shall not exceed the aggregate amount of the Commitments. 
  
 (g) Allocation by Administrative Agent. If offers are made by two or more Banks with the same Money Market Margins or Money Market Absolute Rates, as the case may be, for a greater aggregate principal amount than the amount in
respect of which such offers are accepted for the related Interest Period, the principal amount of Money Market Loans in respect of which such offers are accepted shall be allocated by the Administrative Agent among such Banks as nearly as possible
(in multiples of $1,000,000, as the Administrative Agent may deem appropriate) in proportion to the aggregate principal amounts of such offers. Determinations by the Administrative Agent of the amounts of Money Market Loans shall be conclusive in
the absence of manifest error. 
  
 SECTION 2.4.
Notice to Banks; Funding of Loans. (a) Promptly after receiving a Notice of Borrowing, the Administrative Agent shall notify each Bank of the contents thereof and of such Bank’s share (if any) of such Borrowing and such Notice of
Borrowing shall not thereafter be revocable by the Borrower. 
  
 (b) Not later than 12:00 Noon (New York City time) on the date of each Borrowing, each Bank participating therein shall make available its share of such Borrowing, in Federal or other funds immediately available in New York City, to the
Administrative Agent at its address specified in or pursuant to Section 9.01. Unless the Administrative Agent determines that any applicable condition specified in Article 3 has not been satisfied, the Administrative Agent will make 

  

 23 

 
the funds so received from the Banks available to the Borrower at the Administrative Agent’s aforesaid address. 
  
 (c) Unless the Administrative Agent shall have received notice from a Bank
before the date of any Borrowing that such Bank will not make available to the Administrative Agent such Bank’s share of such Borrowing, the Administrative Agent may assume that such Bank has made such share available to the Administrative
Agent on the date of such Borrowing in accordance with Section 2.04(b) and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Bank shall
not have so made such share available to the Administrative Agent, such Bank and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the
date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) if such amount is repaid by the Borrower, a rate per annum equal to the higher of the Federal Funds Rate and the interest
rate applicable to such Borrowing pursuant to Section 2.06 and (ii) if such amount is repaid by such Bank, the Federal Funds Rate. If such Bank shall repay to the Administrative Agent such corresponding amount, the Borrower shall not be required to
repay such amount and the amount so repaid by such Bank shall constitute such Bank’s Loan included in such Borrowing for purposes of this Agreement. 
  
 SECTION 2.5. Maturity of Loans. (a) Each Committed Loan shall mature, and the principal amount thereof shall be due and payable
(together with interest accrued thereon), on the Termination Date. 
  
 (b) Each Money Market Loan included in any Money Market Borrowing shall mature, and the principal amount thereof shall be due and payable (together with interest accrued thereon), on the last day of the Interest Period applicable to such
Borrowing. 
  
 SECTION 2.6. Interest Rates.
(a) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the Base Rate for such day. Such interest shall be payable
quarterly in arrears on each Quarterly Payment Date. Any overdue principal of or interest on any Base Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the Base Rate for such
day. 
  
 (b) Each CD Loan shall bear interest on the outstanding
principal amount thereof, for each day during each Interest Period applicable thereto, at a 

  

 24 

 
rate per annum equal to the sum of the CD Margin for such day plus the Adjusted CD Rate applicable to such Interest Period; provided that if any CD
Loan shall, as a result of clause (2)(b) of the definition of Interest Period, have an Interest Period of less than 30 days, such CD Loan shall bear interest for each day during such Interest Period at the Base Rate for such day. Such interest shall
be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than 90 days, at intervals of 90 days after the first day thereof. Any overdue principal of or interest on any CD Loan shall bear interest, payable on
demand, for each day until paid at a rate per annum equal to the sum of 2% plus the higher of (i) the Base Rate for such day and (ii) the sum of the CD Margin for such day plus the Adjusted CD Rate applicable to such Loan on the day before such
payment was due. 
  
 The “Adjusted CD Rate”
applicable to any Interest Period means a rate per annum determined pursuant to the following formula: 
  

									
	 ACDR
	  	 =
	  	[ CDBR ] *	  	 	  	 + AR

	  	  	[ 1.00 - DRP ]	  	 	  
			
	ACDR	  	=	  	Adjusted CD Rate
	CDBR	  	=	  	CD Base Rate
	DRP	  	=	  	Domestic Reserve Percentage
	AR	  	=	  	Assessment Rate

  

	*	The amount in brackets being rounded upward, if necessary, to the next higher 1/100 of 1% 

  
 The “CD Base Rate” applicable to any Interest Period is the rate of interest determined by the
Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the prevailing rates per annum bid at 10:00 A.M. (New York City time) (or as soon thereafter as practicable) on the first day of such Interest
Period by two or more New York certificate of deposit dealers of recognized standing for the purchase at face value from each CD Reference Bank of its certificates of deposit in an amount comparable to the principal amount of the CD Loan of such CD
Reference Bank to which such Interest Period applies and having a maturity comparable to such Interest Period. 
  
 “Domestic Reserve Percentage” means for any day that percentage (expressed as a decimal) which is in effect on such day, as prescribed by
the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including without limitation any 

  

 25 

 
basic, supplemental or emergency reserves) for a member bank of the Federal Reserve System in New York City with deposits exceeding five billion dollars in
respect of new non-personal time deposits in dollars in New York City having a maturity comparable to the related Interest Period and in an amount of $100,000 or more. The Adjusted CD Rate shall be adjusted automatically on and as of the effective
date of any change in the Domestic Reserve Percentage. 
  
 “Assessment Rate” means for any day the annual assessment rate in effect on such day which is payable by a member of the Bank Insurance Fund classified as adequately capitalized and within supervisory subgroup “A”
(or a comparable successor assessment risk classification) within the meaning of 12 C.F.R. § 327.4(a) (or any successor provision) to the Federal Deposit Insurance Corporation (or any successor) for such Corporation’s (or such
successor’s) insuring time deposits at offices of such institution in the United States. The Adjusted CD Rate shall be adjusted automatically on and as of the effective date of any change in the Assessment Rate. 
  
 (c) Each Euro-Dollar Loan shall bear interest on the outstanding principal
amount thereof, for each day during each Interest Period applicable thereto, at a rate per annum equal to the sum of the Euro-Dollar Margin for such day plus the London Interbank Offered Rate applicable to such Interest Period. Such interest shall
be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof. 
  
 The “London Interbank Offered Rate” applicable to any Interest Period means the average (rounded upward, if
necessary, to the next higher 1/16 of 1%) of the respective rates per annum at which deposits in dollars are offered to each of the Euro-Dollar Reference Banks in the London interbank market at approximately 11:00 A.M. (London time) two Euro-Dollar
Business Days before the first day of such Interest Period in an amount approximately equal to the principal amount of the Euro-Dollar Loan of such Euro-Dollar Reference Bank to which such Interest Period is to apply and for a period of time
comparable to such Interest Period. 
  
 (d) Any overdue principal
of or interest on any Euro-Dollar Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the higher of (i) the sum of 2% plus the Euro-Dollar Margin for such day plus the London Interbank Offered Rate
applicable to such Loan on the day before such payment was due and (ii) the sum of 2% plus the Euro-Dollar Margin for such day plus a rate per annum equal to the quotient obtained (rounded upward, if necessary, to the next higher 1/100 of 1%) by
dividing (x) the average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the respective rates per 

  

 26 

 
annum at which one day (or, if such amount due remains unpaid more than three Euro-Dollar Business Days, then for such other period of time not longer than
three months as the Administrative Agent may select) deposits in dollars in an amount approximately equal to such overdue payment due to each of the Euro-Dollar Reference Banks are offered to such Euro-Dollar Reference Bank in the London interbank
market for the applicable period determined as provided above by (y) 1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances described in clause 8.01(a) or 8.01(b) shall exist, at a rate per annum equal to the sum of 2% plus the Base
Rate for such day). 
  
 (e) Subject to Section 8.01, each Money
Market LIBOR Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the sum of the London Interbank Offered Rate for such Interest Period (determined in
accordance with Section 2.06(c) as if the related Money Market LIBOR Borrowing were a Committed Euro-Dollar Borrowing) plus (or minus) the Money Market Margin quoted by the Bank making such Loan. Each Money Market Absolute Rate Loan shall bear
interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the Money Market Absolute Rate quoted by the Bank making such Loan. Such interest shall be payable for each Interest
Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof. Any overdue principal of or interest on any Money Market Loan shall bear interest, payable on demand,
for each day until paid at a rate per annum equal to the sum of 2% plus the Base Rate for such day. 
  
 (f) The Administrative Agent shall determine each interest rate applicable to the Loans hereunder. The Administrative Agent shall promptly notify the
Borrower and the participating Banks of each rate of interest so determined, and its determination thereof shall be conclusive in the absence of manifest error. 
  

(g) Each Reference Bank agrees to use its best efforts to furnish quotations to the Administrative Agent as contemplated by this Section. If any
Reference Bank does not furnish a timely quotation, the Administrative Agent shall determine the relevant interest rate on the basis of the quotation or quotations furnished by the remaining Reference Bank or Banks or, if none of such quotations is
available on a timely basis, the provisions of Section 8.01 shall apply. 
  
 SECTION 2.7. Method of Electing Interest Rates. (a) The Loans included in each Committed Borrowing shall bear interest initially at the type of rate specified by the Borrower in the applicable
Notice of Committed Borrowing. 

  

 27 

 
Thereafter, the Borrower may from time to time elect to change or continue the type of interest rate borne by each Group of Loans (subject to Section 2.07(d)
and the provisions of Article 8), as follows: 
  
 (i) if such Loans are Base Rate Loans, the Borrower may elect to convert such Loans to CD Loans as of any Domestic Business Day or to Euro-Dollar Loans as of any Euro-Dollar Business Day; 
  
 (ii) if such Loans are CD Loans, the Borrower may elect to
convert such Loans to Base Rate Loans as of any Domestic Business Day or convert such Loans to Euro-Dollar Loans as of any Euro-Dollar Business Day or continue such Loans as CD Loans for an additional Interest Period, subject to Section 2.12 if any
such conversion is effective on any day other than the last day of an Interest Period applicable to such Loans; and 
  
 (iii) if such Loans are Euro-Dollar Loans, the Borrower may elect to convert such Loans to Base Rate Loans as of any Domestic Business Day
or convert such Loans to CD Loans as of any Euro-Dollar Business Day or elect to continue such Loans as Euro-Dollar Loans for an additional Interest Period, subject to Section 2.12 if any such conversion is effective on any day other than the last
day of an Interest Period applicable to such Loans. 
  
 Each such
election shall be made by delivering a notice (a “Notice of Interest Rate Election”) to the Administrative Agent not later than 10:30 A.M. (New York City time) on the third Euro-Dollar Business Day before the conversion or
continuation selected in such notice is to be effective (unless the relevant Loans are to be converted from Domestic Loans of one type to Domestic Loans of the other type or are CD Loans to be continued as CD Loans for an additional Interest Period,
in which case such notice shall be delivered to the Administrative Agent not later than 10:30 A.M. (New York City time) on the second Domestic Business Day before such conversion or continuation is to be effective). A Notice of Interest Rate
Election may, if it so specifies, apply to only a portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans comprising such Group and (ii) the portion to
which such Notice applies, and the remaining portion to which it does not apply, are each at least $5,000,000 (unless such portion is comprised of Base Rate Loans). If no such notice is timely received before the end of an Interest Period for any
Group of CD Loans or Euro-Dollar Loans, the Borrower shall be deemed to have elected that such Group of Loans be converted to Base Rate Loans at the end of such Interest Period. 
  

 28 

 (b) Each Notice of Interest Rate Election shall specify: 
  
 (i) the Group of Loans (or portion thereof) to which such
notice applies; 
  
 (ii) the date on which the
conversion or continuation selected in such notice is to be effective, which shall comply with the applicable clause of Section 2.07(a) above; 
  
 (iii) if the Loans comprising such Group are to be converted, the new type of Loans and, if the Loans resulting from such conversion are
to be CD Loans or Euro-Dollar Loans, the duration of the next succeeding Interest Period applicable thereto; and 
  
 (iv) if such Loans are to be continued as CD Loans or Euro-Dollar Loans for an additional Interest Period, the duration of such additional
Interest Period. 
  
 Each Interest Period specified in a Notice of
Interest Rate Election shall comply with the provisions of the definition of Interest Period. 
  
 (c) Promptly after receiving a Notice of Interest Rate Election from the Borrower pursuant to Section 2.07(a) above, the Administrative Agent shall notify each Bank of the contents thereof and such notice shall not
thereafter be revocable by the Borrower. 
  
 (d) The Borrower
shall not be entitled to elect to convert any Committed Loans to, or continue any Committed Loans for an additional Interest Period as, CD Loans or Euro-Dollar Loans if (i) the aggregate principal amount of any Group of CD Loans or Euro-Dollar Loans
created or continued as a result of such election would be less than $5,000,000 or (ii) a Default shall have occurred and be continuing when the Borrower delivers notice of such election to the Administrative Agent. 
  
 (e) If any Committed Loan is converted to a different type of Loan, the
Borrower shall pay, on the date of such conversion, the interest accrued to such date on the principal amount being converted. 
  
 SECTION 2.8. Fees. (a) Each Borrower shall pay to the Administrative Agent, for the account of the Banks ratably in proportion to
their Credit Exposures, a facility fee calculated for each day at the Facility Fee Rate for such day (determined in accordance with the Pricing Schedule) on such Borrower’s allocated share of the aggregate amount of the Credit Exposures on such
day. For 

  

 29 

 
this purpose, and solely for this purpose, there shall be allocated to each Borrower a portion of the aggregate Credit Exposures equal to the sum of (i) the
aggregate outstanding principal amount of all Loans to such Borrower at such date and (ii) such Borrower’s Availability Share of the excess, if any, at such date of the aggregate amount of the Commitments over the aggregate outstanding
principal amount of the Loans to all Borrowers. Such facility fee shall accrue for each day from and including the Effective Date to but excluding the day on which the Credit Exposures are reduced to zero. 
  
 (b) The Borrower shall pay (i) to the Administrative Agent for the account of
the Banks ratably a letter of credit fee accruing daily on the aggregate undrawn amount of all outstanding Letters of Credit at a rate per annum equal to the Euro-Dollar Margin for such day and (ii) to each Issuing Bank for its own account, a letter
of credit fronting fee accruing daily on the aggregate amount then available for drawing under all Letters of Credit issued by such Issuing Bank at such rate as may be mutually agreed between the Borrower and such Issuing Bank from time to time.

  
 (c) Fees accrued for the account of the Banks under this
Section shall be payable quarterly in arrears on each Quarterly Payment Date and on the day on which the Commitments terminate in their entirety (and, if later, on the day on which the Credit Exposures are reduced to zero). 
  
 SECTION 2.9. Termination or Reduction of Commitments.
(a) The Borrowers may, upon at least three Domestic Business Days’ notice to the Administrative Agent, (i) terminate the Commitments at any time, if no Loans or Letter of Credit Liabilities are outstanding at such time, or (ii) ratably reduce
from time to time by an aggregate amount of $5,000,000 or a larger multiple of $1,000,000, the aggregate amount of the Commitments in excess of the Total Outstanding Amount. Promptly after receiving a notice pursuant to this subsection, the
Administrative Agent shall notify each Bank of the contents thereof. 
  
 (b) Unless previously terminated, the Commitments shall terminate in their entirety on the Termination Date. 
  
 SECTION 2.10. Optional Prepayments. (a) Subject in the case of Fixed Rate Loans to Section 2.12, the Borrower may (i) upon at least
one Domestic Business Day’s notice to the Administrative Agent, prepay any Group of Domestic Loans (or any Money Market Borrowing bearing interest at the Base Rate pursuant to Section 8.01) or (ii) upon at least three Euro-Dollar Business
Days’ notice to the Administrative Agent, prepay any Group of Euro-Dollar Loans, in each case in whole at any time, or from time to time in part in amounts 

  

 30 

 
aggregating $5,000,000 or any larger multiple of $1,000,000, by paying the principal amount to be prepaid together with interest accrued thereon to the date
of prepayment. Each such optional prepayment shall be applied to prepay ratably the Loans of the several Banks included in such Group of Loans (or such Money Market Borrowing). 
  
 (b) Except as provided in Section 2.10(a) above, the Borrower may not prepay all or any portion of the principal amount of
any Money Market Loan before the maturity thereof. 
  
 (c)
Promptly after receiving a notice of prepayment pursuant to this Section, the Administrative Agent shall notify each Bank of the contents thereof and of such Bank’s ratable share (if any) of such prepayment, and such notice shall not thereafter
be revocable by the Borrower. 
  
 SECTION 2.11.
General Provisions as to Payments. (a) The Borrower shall make each payment of principal of, and interest on, the Loans and of fees hereunder not later than 12:00 Noon (New York City time) on the date when due, in Federal or other funds
immediately available in New York City, to the Administrative Agent at its address specified in or pursuant to Section 9.01. The Administrative Agent will promptly distribute to each Bank its ratable share of each such payment received by the
Administrative Agent for the account of the Banks. Whenever any payment of principal of, or interest on, the Domestic Loans or any payment of fees shall be due on a day which is not a Domestic Business Day, the date for payment thereof shall be
extended to the next succeeding Domestic Business Day. Whenever any payment of principal of, or interest on, the Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the
next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case the date for payment thereof shall be the next preceding Euro-Dollar Business Day. Whenever any payment of principal of, or
interest on, the Money Market Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Dollar Business Day. If the date for any payment of principal is extended
by operation of law or otherwise, interest thereon shall be payable for such extended time. 
  
 (b) Unless the Borrower notifies the Administrative Agent before the date on which any payment is due to the Banks hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume
that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance on such assumption, cause to be distributed to each Bank on such due date an amount equal to the amount then due

  

 31 

 
such Bank. If and to the extent that the Borrower shall not have so made such payment, each Bank shall repay to the Administrative Agent forthwith on demand
such amount distributed to such Bank together with interest thereon, for each day from the date such amount is distributed to such Bank until the date such Bank repays such amount to the Administrative Agent, at the Federal Funds Rate. 

 
 SECTION 2.12. Funding Losses. If the Borrower makes
any payment of principal with respect to any Fixed Rate Loan or any Fixed Rate Loan is converted to a different type of Loan (whether such payment or conversion is pursuant to Article 2, 6 or 8 or otherwise) on any day other than the last day of an
Interest Period applicable thereto, or the last day of an applicable period fixed pursuant to Section 2.06(d), or if the Borrower fails to borrow, prepay, convert or continue any Fixed Rate Loan after notice has been given to any Bank in accordance
with Section 2.04(a), 2.07(c) or 2.10(c), the Borrower shall reimburse each Bank within 15 days after demand for any resulting loss or expense incurred by it (or by an existing or prospective Participant in the related Loan), including (without
limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss of margin for the period after such payment or conversion or failure to borrow, prepay, convert or continue; provided that
such Bank shall have delivered to the Borrower a certificate as to the amount of such loss or expense, which certificate shall be conclusive in the absence of manifest error. 
  
 SECTION 2.13. Computation of Interest and Fees. Interest based on the Prime Rate hereunder shall be
computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All other interest and fees shall be computed on the basis of a year of 360
days and paid for the actual number of days elapsed (including the first day but excluding the last day). 
  
 SECTION 2.14. Notes. (a) Each Borrower hereby agrees that, upon the request of any Bank at any time, such Bank’s Loans shall be
evidenced by a promissory note or notes of such Borrower (each a “Note”), substantially in the form of Exhibit A hereto, payable to the order of such Bank and representing the obligation of such Borrower to pay the unpaid principal
amount of the Loans made to such Borrower by such Bank, with interest as provided herein on the unpaid principal amount from time to time outstanding. 
  
 (b) Each Bank shall record the date, amount and type of each Loan made by it and the date and amount of each payment of principal made by the Borrower
with respect thereto, and may, if such Bank so elects in connection with any transfer or enforcement of its Note, endorse on the schedule forming a part thereof appropriate notations to evidence the foregoing information with respect to each 

  

 32 

 
such Loan then outstanding; provided that a Bank’s failure to make (or any error in making) any such recordation or endorsement shall not affect
the Borrower’s obligations hereunder or under the Notes. Each Bank is hereby irrevocably authorized by the Borrower so to endorse its Note and to attach to and make a part of its Note a continuation of any such schedule as and when required.

  
 SECTION 2.15. Regulation D Compensation.
If and so long as a reserve requirement of the type described in the definition of “Euro-Dollar Reserve Percentage” is prescribed by the Board of Governors of the Federal Reserve System (or any successor), each Bank subject to such
requirement may require the Borrower to pay, contemporaneously with each payment of interest on each of such Bank’s Euro-Dollar Loans, additional interest on such Euro-Dollar Loan at a rate per annum determined by such Bank up to but not
exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus the Euro-Dollar Reserve Percentage over (ii) the applicable London Interbank Offered Rate. Any Bank wishing to require payment of such
additional interest (x) shall so notify the Borrower and the Administrative Agent, in which case such additional interest on the Euro-Dollar Loans of such Bank to such Borrower shall be payable to such Bank at the place indicated in such notice with
respect to each Interest Period commencing at least three Euro-Dollar Business Days after such Bank gives such notice and (y) shall notify the Borrower at least five Euro-Dollar Business Days before each date on which interest is payable on the
Euro-Dollar Loans of the amount then due it under this Section. 
  
 SECTION 2.16. Change of Control. If a Change of Control shall occur with respect to any Borrower, (i) such Borrower will, promptly after the occurrence thereof, give each Bank notice thereof and shall describe in
reasonable detail the facts and circumstances giving rise thereto and (ii) each Bank may, by three Domestic Business Days’ notice to such Borrower and the Administrative Agent given not later than 60 days after such notice of Change of Control
is received, terminate its Commitment as to such Borrower, which shall thereupon be terminated, and declare the Loans to such Borrower held by it (together with accrued interest thereon) and any other amounts payable hereunder for its account to be,
and such Loans and such other amounts shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by such Borrower. 
  
 SECTION 2.17. Letters of Credit. 
  
 (a) Commitment to Issue Letters of Credit. Subject to the terms and
conditions hereof, each Issuing Bank agrees to issue Letters of Credit from time to time on a date not less than 30 days prior to the Termination Date upon the request of each Borrower; provided that, immediately after each Letter of Credit
is 

  

 33 

 
issued, (A) the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments, (B) the aggregate outstanding principal amount of Loans to
any Borrower plus the aggregate amount of Letter of Credit Liabilities owing by such Borrower shall not exceed the Maximum Availability of such Borrower and (C) (1) the aggregate amount of the Letter of Credit Liabilities owing by O&R shall not
exceed $50,000,000, (2) the aggregate amount of the Letter of Credit Liabilities owing by Holdings shall not exceed $100,000,000 and (3) the aggregate amount of the Letter of Credit Liabilities owing by Con Ed shall not exceed $120,000,000. Upon the
date of issuance by an Issuing Bank of a Letter of Credit, the Issuing Bank shall be deemed, without further action by any party hereto, to have sold to each Bank, and each Bank shall be deemed, without further action by any party hereto, to have
purchased from the Issuing Bank, a participation in such Letter of Credit and the related Letter of Credit Liabilities in the proportion its respective Commitment bears to the aggregate Commitments. 
  
 (b) Method for Issuance; Terms; Extensions. 
  
 (i) The Borrower shall give the Issuing Bank notice at least
three Domestic Business Days (or such shorter notice as may be acceptable to the Issuing Bank in its discretion) prior to the requested issuance of a Letter of Credit (or, in the case of renewal or extension, prior to the Issuing Bank’s
deadline for notice of nonextension) specifying the date such Letter of Credit is to be issued, and describing the terms of such Letter of Credit and the nature of the transactions to be supported thereby (such notice, including any such notice
given in connection with the extension of a Letter of Credit, a “Notice of Issuance”). Upon receipt of a Notice of Issuance, the Issuing Bank shall promptly notify the Administrative Agent, and the Administrative Agent shall
promptly notify each Bank of the contents thereof and of the amount of such Bank’s participation in such Letter of Credit. 
  
 (ii) The obligation of the Issuing Bank to issue each Letter of Credit shall, in addition to the conditions precedent set forth in Section
3.02 be subject to the conditions precedent that such Letter of Credit shall be in such form and contain such terms as shall be reasonably satisfactory to the Issuing Bank and that the Borrower shall have executed and delivered such other customary
instruments and agreements relating to such Letter of Credit as the Issuing Bank shall have reasonably requested. The Borrower shall also pay to the Issuing Bank for its own account issuance, drawing, amendment, settlement and extension charges, if
any, in the amounts and at the times as agreed between the Borrower and the Issuing Bank. 
  

 34 

 (iii) The extension or renewal of any Letter of Credit shall be deemed to be an issuance
of such Letter of Credit, and if any Letter of Credit contains a provision pursuant to which it is deemed to be extended unless notice of termination is given by the Issuing Bank, the Issuing Bank shall timely give such notice of termination unless
it has theretofore timely received a Notice of Issuance and the other conditions to issuance of a Letter of Credit have also theretofore been met with respect to such extension. Each Letter of Credit shall expire at or before the close of business
on the date that is one year after such Letter of Credit is issued (or, in the case of any renewal or extension thereof, one year after such renewal or extension); provided that (i) a Letter of Credit may contain a provision pursuant to which
it is deemed to be extended on an annual basis unless notice of termination is given by the Issuing Bank and (ii) in no event will a Letter of Credit expire (including pursuant to a renewal or extension thereof) on a date later than the Letter of
Credit Termination Date. 
  
 (c) Payments; Reimbursement
Obligations. 
  
 (i) Upon receipt from the
beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the Issuing Bank shall notify the Administrative Agent and the Administrative Agent shall promptly notify the Borrower and each other Bank as to the amount
to be paid as a result of such demand or drawing and the date such payment is to be made by the Issuing Bank (the “Payment Date”). The Borrower shall be irrevocably and unconditionally obligated to reimburse the Issuing Bank for any
amounts paid by the Issuing Bank upon any drawing under any Letter of Credit, without presentment, demand, protest or other formalities of any kind. Such reimbursement shall be due on the Payment Date; provided that no such payment shall be
due from the Borrower any earlier than the date of receipt by it of notice of its obligation to make such payment (or, if such notice is received by the Borrower after 10:00 A.M. (New York City time) on any date, on the next succeeding Domestic
Business Day); and provided further that if and to the extent any such reimbursement is not made by the Borrower in accordance with this clause (i) or clause (ii) below on the Payment Date, then (irrespective of when notice thereof is
received by the Borrower), such reimbursement obligation shall bear interest, payable on demand, for each day from and including the Payment Date to but not including the date such reimbursement obligation is paid in full at a rate per annum equal
to the rate applicable to Base Rate Loans for such day. 
  

 35 

 (ii) If the Commitments remain in effect on the Payment Date, all such amounts paid by
the Issuing Bank and remaining unpaid by the Borrower after the date and time required by Section 2.17(c)(i) (a “Reimbursement Obligation”) shall, if and to the extent that the amount of such Reimbursement Obligation would be
permitted as a Borrowing of Committed Loans pursuant to Section 3.02, and unless the Borrower otherwise instructs the Administrative Agent by not less than one Domestic Business Day’s prior notice, convert automatically to Base Rate Loans on
the date such Reimbursement Obligation arises. The Administrative Agent shall, on behalf of the Borrower (which hereby irrevocably directs the Administrative Agent so to act on its behalf), give notice no later than 12:00 Noon (New York City time)
on such date requesting each Bank to make, and each Bank hereby agrees to make, a Base Rate Loan, in an amount equal to such Bank’s Percentage of the Reimbursement Obligation with respect to which such notice relates. Each Bank shall make such
Loan available to the Administrative Agent at its address referred to in Section 9.01 in immediately available funds, not later than 2:00 P.M. (New York City time), on the date specified in such notice. The Administrative Agent shall pay the
proceeds of such Loans to the Issuing Bank, which shall immediately apply such proceeds to repay the Reimbursement Obligation. 
  
 (iii) To the extent the Reimbursement Obligation is not refunded by a Bank pursuant to clause (ii) above, such Bank will pay to the
Administrative Agent, for the account of the Issuing Bank, immediately upon the Issuing Bank’s demand at any time during the period commencing after such Reimbursement Obligation arises until reimbursement therefor in full by the Borrower, an
amount equal to such Bank’s Percentage of such Reimbursement Obligation, together with interest on such amount for each day from the date of the Issuing Bank’s demand for such payment (or, if such demand is made after 1:00 P.M. (New York
City time) on such date, from the next succeeding Domestic Business Day) to the date of payment by such Bank of such amount at a rate of interest per annum equal to the Federal Funds Rate for the first three Domestic Business Days after the date of
such demand and thereafter at a rate per annum equal to the Base Rate for each additional day. The Issuing Bank will pay to each Bank ratably all amounts received from the Borrower for application in payment of its Reimbursement Obligations in
respect of any Letter of Credit, but only to the extent such Bank has made payment to the Issuing Bank in respect of such Letter of Credit pursuant hereto; provided that in the event such payment received by the Issuing Bank is required to be
returned, such Bank will return to the Issuing Bank any portion thereof previously distributed to it by the Issuing Bank. 
  

 36 

 (d) Obligations Absolute. The obligations of the Borrower and each Bank under subsection (c) above
shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever, including without limitation the following circumstances: 
  
 (i) any lack of validity or enforceability of this Agreement
or any Letter of Credit or any document related hereto or thereto; 
  
 (ii) any amendment or waiver of or any consent to departure from all or any of the provisions of this Agreement or any Letter of Credit or any document related hereto or thereto, provided by any party affected
thereby; 
  
 (iii) the use which may be made of
the Letter of Credit by, or any acts or omission of, a beneficiary of a Letter of Credit (or any Person for whom the beneficiary may be acting); 
  
 (iv) the existence of any claim, set-off, defense or other rights that the Borrower may have at any time against a beneficiary of a Letter
of Credit (or any Person for whom the beneficiary may be acting), any Bank (including the Issuing Bank) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated
transaction; 
  
 (v) any statement or any other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect whatsoever; 
  
 (vi) payment under a Letter of Credit against presentation to the Issuing Bank of documents that do not
comply with the terms of such Letter of Credit; 
  
 (vii) any termination of the Commitments prior to, on or after the Payment Date for any Letter of Credit, whether at the scheduled termination thereof, by operation of Section 6.01 or otherwise; or 
  
 (viii) any other act or omission to act or delay of any kind
by any Bank (including the Issuing Bank), the Administrative Agent or any other Person or any other event or circumstance whatsoever that might, but for the provisions of this subsection (viii), constitute a legal or equitable 

  

 37 

 
discharge of or defense to the Borrower’s or the Bank’s obligations hereunder; 
  
 provided, that this Section 2.17(d) shall not limit the rights of the Borrower under Section 2.17(e)(ii). 
  
 (e) Indemnification; Expenses. 
  
 (i) The Borrower hereby indemnifies and holds harmless each
Bank (including each Issuing Bank) and the Administrative Agent from and against any and all claims, damages, losses, liabilities, costs or expenses which it may reasonably incur in connection with a Letter of Credit issued pursuant to this Section
2.17; provided that the Borrower shall not be required to indemnify any Bank, or the Administrative Agent, for any claims, damages, losses, liabilities, costs or expenses, to the extent found by a court of competent jurisdiction to have been
caused by the gross negligence or willful misconduct of such Person. 
  
 (ii) None of the Banks (including, subject to subsection (g) below, an Issuing Bank) nor the Administrative Agent nor any of their officers or directors or employees or agents shall be liable or responsible, by reason
of or in connection with the execution and delivery or transfer of or payment or failure to pay under any Letter of Credit, including without limitation any of the circumstances enumerated in subsection (d) above; provided that,
notwithstanding Sections 2.17(d), the Borrower shall have a claim for direct (but not consequential) damage suffered by it, to the extent finally determined by a court of competent jurisdiction to have been caused by (x) the Issuing Bank’s
gross negligence or willful misconduct in determining whether documents presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the Issuing Bank’s failure to pay under any Letter of Credit after the
presentation to it of documents strictly complying with the terms and conditions of the Letter of Credit. The parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the Issuing Bank may, in its discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make
payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 
  
 (iii) Nothing in this subsection (e) is intended to limit the obligations of the Borrower under any other provision of this Agreement.

  

 38 

 
To the extent the Borrower does not indemnify an Issuing Bank as required by this subsection, the Banks agree to do so ratably in accordance with their
Commitments. 
  
 (f) Stop Issuance Notice. If the Required
Banks reasonably determine at any time that the conditions set forth in Section 3.02 would not be satisfied in respect of a Borrowing at such time, then the Required Banks may request that the Administrative Agent issue a “Stop Issuance
Notice”, and the Administrative Agent shall issue such notice to each Issuing Bank. Such Stop Issuance Notice shall be withdrawn upon a determination by the Required Banks that the circumstances giving rise thereto no longer exist. No
Letter of Credit shall be issued while a Stop Issuance Notice is in effect. The Required Banks may request issuance of a Stop Issuance Notice only if there is a reasonable basis therefor, and shall consider reasonably and in good faith a request
from the Borrower for withdrawal of the same on the basis that the conditions in Section 3.02 are satisfied, provided that the Administrative Agent and the Issuing Banks may and shall conclusively rely upon any Stop Issuance Notice while it
remains in effect. 
  
 (g) If the terms and conditions of any form
of letter of credit application or other agreement submitted by the Borrower to or entered into by the Issuing Bank relating to any Letter of Credit are not consistent with the terms and conditions of this Agreement, the terms and conditions of this
Agreement shall control, provided that, to the extent the Issuing Bank so agrees in such other documentation, its liabilities and responsibilities in connection with a Letter of Credit may be governed thereby rather than by subsection
(e)(ii), but such agreement by the Issuing Bank may not directly or indirectly alter the rights and obligations of any other Bank under this Agreement. 
  
 ARTICLE 3 
  
 CONDITIONS 
  
 SECTION 3.1. Effectiveness. This Agreement shall become effective on the date that each of the following conditions shall have been satisfied (or waived in accordance with Section 9.05):

  
 (a) the Administrative Agent shall have
received counterparts hereof signed by each of the parties hereto (or, in the case of any party as to which an executed counterpart shall not have been received, the Administrative Agent shall have received in form satisfactory to it 

  

 39 

 
telegraphic, telex or other written confirmation from such party of execution of a counterpart hereof by such party); 
  
 (b) the Administrative Agent shall have received an opinion
of the General Counsel or a Deputy General Counsel of each Borrower, substantially in the form of Exhibits E, F and G hereto, dated the Effective Date and covering such additional matters relating to the transactions contemplated hereby as the
Required Banks may reasonably request; 
  
 (c)
the Administrative Agent shall have received an opinion of Davis Polk & Wardwell, special counsel for the Administrative Agent, substantially in the form of Exhibit H hereto, dated the Effective Date and covering such additional matters relating
to the transactions contemplated hereby as the Required Banks may reasonably request; 
  
 (d) the Administrative Agent shall have received evidence satisfactory to it that all filings, consents and approvals, if any, required to
be made with, or obtained from, any governmental authority in connection with the transactions contemplated hereby shall have been made or obtained and shall be, in each case, in full force and effect on and as of the Effective Date; 
  
 (e) the Administrative Agent shall have received all
documents the Administrative Agent may reasonably request relating to the existence of the Borrowers, the corporate authority for and the validity of this Agreement and the Notes, and any other matters relevant hereto, all in form and substance
satisfactory to the Administrative Agent; and 
  
 (f) the Administrative Agent shall have received evidence satisfactory to it of the payment of all principal of and interest on any loans outstanding under, and of all other amounts payable under, the Existing Credit Agreements; 

 
 provided that this Agreement shall not become effective or be binding on any party
hereto unless all of the foregoing conditions are satisfied not later than November 28, 2003. The Administrative Agent shall promptly notify the Borrowers and the Banks of the Effective Date, and such notice shall be conclusive and binding on all
parties hereto. 
  
 The Banks that are parties to the Existing
Credit Agreements, comprising the “Required Banks” as defined in each of the Existing Credit Agreements, and the Borrowers agree that the commitments under the Existing Credit Agreements shall terminate in their entirety simultaneously
with and subject to the 

  

 40 

 
effectiveness of this Agreement and that the accrued facility fees thereunder to but excluding the date of such effectiveness shall be payable on the date of
such effectiveness. 
  
 SECTION 3.2. Borrowings
and Issuances of Letters of Credit. The obligation of any Bank to make a Loan on the occasion of any Borrowing, and the obligation of an Issuing Bank to issue (or renew or extend the term of) any Letter of Credit, is subject to the satisfaction
of the following conditions: 
  
 (a) receipt by
the Administrative Agent of a (i) Notice of Borrowing as required by Section 2.02 or 2.03, as the case may be or (ii) a Notice of Issuance as required by Section 2.17(b); 
  
 (b) the fact that, immediately after such Borrowing or issuance (or renewal or extension), (i) the Total
Outstanding Amount will not exceed the aggregate amount of the Commitments, (ii) the aggregate outstanding principal amount of the Loans made to each Borrower plus the aggregate amount of Letter of Credit Liabilities owing by such Borrower will not
exceed such Borrower’s Maximum Availability and (iii) (A) the aggregate amount of the Letter of Credit Liabilities owing by O&R shall not exceed $50,000,000, (B) the aggregate amount of the Letter of Credit Liabilities owing by Holdings
shall not exceed $100,000,000 and (C) the aggregate amount of the Letter of Credit Liabilities owing by Con Ed shall not exceed $120,000,000; 
  
 (c) the fact that, immediately before and after such Borrowing or issuance (or renewal or extension), no Default with respect to the
Borrower shall have occurred and be continuing; and 
  
 (d) the fact that the representations and warranties of the Borrower contained in this Agreement (except, in the case of any Borrowing subsequent to the Closing Date, those contained in Section 4.04(c)) shall be true on and as of the date
of such Borrowing or issuance (or renewal or extension). 
  
 Each Borrowing or
issuance of any Letter of Credit hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Borrowing as to the facts specified in the foregoing clauses 3.02(b), 3.02(c) and 3.02(d). 
  

 41 

 ARTICLE 4 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Each Borrower represents and warrants that: 
  
 SECTION 4.1. Corporate Existence and Power. Such Borrower is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, consents, authorizations and approvals required to carry on its business as now conducted.

  
 SECTION 4.2. Corporate and Governmental
Authorization; No Contravention. The execution, delivery and performance by such Borrower of this Agreement and its Notes are within such Borrower’s corporate powers, have been duly authorized by all necessary corporate action, require no
action by or in respect of, or filing with, any governmental body, agency or official (except (i) in the case of ConEd and O&R, the approval of the PSC, which has been obtained, (ii) the authorization of the FERC in respect of short-term
borrowings (A) by ConEd aggregating up to $1,000,000,000 and (B) by O&R aggregating up to $150,000,000, in each case prior to December 31, 2003, which has been obtained and (iii) the filing of such reports with the PSC and the FERC as may be
required under law) and do not contravene, or constitute a default under, any provision of applicable law or regulation or of such Borrower’s certificate of incorporation or by-laws or of any agreement, judgment, injunction, order, decree or
other instrument binding upon such Borrower or any Subsidiary of such Borrower or result in the creation or imposition of any Lien on any asset of such Borrower or any Subsidiary of such Borrower. 
  
 SECTION 4.3. Binding Effect. This Agreement constitutes
a valid and binding agreement of such Borrower and each Note of such Borrower, if and when executed and delivered in accordance with this Agreement, will constitute a valid and binding obligation of such Borrower, in each case enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity. 
  
 SECTION 4.4. Financial Information. (a) The consolidated balance sheet of such Borrower and its
Consolidated Subsidiaries as of December 31, 2002 and the related consolidated statements of income, cash flows, capitalization and retained earnings for the Fiscal Year then ended, reported on by PricewaterhouseCoopers LLP and set forth in such
Borrower’s 2002 Form 10-K, fairly present, in conformity with GAAP, the consolidated financial position of such Borrower and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for such
Fiscal Year. 
  
 (b) The unaudited consolidated balance sheet of
such Borrower and its Consolidated Subsidiaries as of September 30, 2003 and the related unaudited 

  

 42 

 
consolidated statements of income and cash flows for the fiscal period then ended, set forth in such Borrower’s Latest Form 10-Q, fairly present, on a
basis consistent with the financial statements referred to in Section 4.04(a), the consolidated financial position of such Borrower and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for
such fiscal period (subject to normal year-end adjustments). 
  
 (c) Since September 30, 2003 there has been no material adverse change in the business, financial position or results of operations of such Borrower and its Consolidated Subsidiaries, considered as a whole. 
  
 SECTION 4.5. Litigation. Except as disclosed in such
Borrower’s periodic reports filed with the SEC pursuant to the Exchange Act from time to time, there is no action, suit or proceeding pending against, or to such Borrower’s knowledge threatened against or affecting, such Borrower or any
Subsidiary of such Borrower before any court or arbitrator or any governmental body, agency or official in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, consolidated financial
position or consolidated results of operations of such Borrower and its Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity or enforceability of this Agreement or the Notes. 
  
 SECTION 4.6. Compliance with ERISA. Each member
of the ERISA Group of such Borrower has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance in all material respects with the presently applicable
provisions of ERISA and the Internal Revenue Code with respect to each Plan. No member of the ERISA Group of such Borrower has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of any Plan,
(ii) failed to make any contribution or payment to any Plan or Multiemployer Plan, or made any amendment to any Plan, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the
Internal Revenue Code or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. 
  
 SECTION 4.7. Environmental Matters. In the ordinary course of its business, such Borrower conducts an ongoing review of the effect
of Environmental Laws on the business, operations and properties of such Borrower and its Subsidiaries, in the course of which it identifies and evaluates associated liabilities and costs (including, without limitation, any capital or operating
expenditures required for clean-up or closure of properties presently or previously owned, any capital or operating expenditures required to achieve or maintain 

  

 43 

 
compliance with environmental protection standards imposed by law or as a condition of any license, permit or contract, any related constraints on operating
activities, including any periodic or permanent shutdown of any facility or reduction in the level of or change in the nature of operations conducted thereat, any costs or liabilities in connection with off-site disposal of wastes or Hazardous
Substances and any actual or potential liabilities to third parties, including employees, and any related costs and expenses). On the basis of this review, such Borrower has reasonably concluded that, except as disclosed in such Borrower’s
periodic reports filed with the SEC pursuant to the Exchange Act from time to time, such associated liabilities and costs, including the costs of complying with Environmental Laws, are unlikely to have a Material Adverse Effect with respect to such
Borrower. 
  
 SECTION 4.8. Taxes. Such
Borrower and its Subsidiaries have filed all United States Federal income tax returns and all other material tax returns which are required to be filed by them and have paid all taxes due pursuant to such returns or pursuant to any assessment
received by such Borrower or any Subsidiary of such Borrower, except to the extent that any such assessment is being contested in good faith by appropriate proceedings. The charges, accruals and reserves on the books of such Borrower and its
Subsidiaries in respect of material taxes or other governmental charges are, in such Borrower’s opinion, adequate. 
  
 SECTION 4.9. Subsidiaries. Each of such Borrower’s Material Subsidiaries (if any) is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted.

  
 SECTION 4.10. Regulatory Restrictions on
Borrowing. Such Borrower is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended. Holdings is a “holding company” within the meaning of the Public Utility Holding Company Act of
1935, as amended, but is exempt from regulation thereunder by virtue of Section 3(a)(i) of such Act, except as disclosed in Holding’s SEC filings. Each of O&R and Con Ed is a “subsidiary company” of an exempt “holding
company” within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 SECTION 4.11. Full Disclosure. Neither such Borrower’s Form 10-K for the year ended December 31, 2002, as of the date of filing
of such Form 10-K, nor any registration statement (other than a registration statement on Form S-8 (or its equivalent) or report on Form 10-K, 10-Q and 8-K (or their equivalents) which such Borrower shall have subsequently filed with the SEC as at
the time of filing 

  

 44 

 
of such registration statement or report, as applicable, contained any untrue statement of a material fact or omitted to state a material fact necessary in
order to make any statements contained therein, in the light of the circumstances under which they were made, not misleading. 
  
 ARTICLE 5 
  
 COVENANTS 
  
 Each Borrower agrees that, so long as any Bank has any Credit Exposure hereunder or any interest or fees accrued hereunder remain unpaid: 
  
 SECTION 5.1. Information. Such Borrower will deliver to each of the Banks: 
  
 (a) as soon as available and in any event within 95 days
after the end of each Fiscal Year, a consolidated balance sheet of such Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income, cash flows, capitalization and retained earnings
for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on in a manner acceptable to the SEC by PricewaterhouseCoopers LLP or other independent public accountants of nationally
recognized standing; 
  
 (b) as soon as available
and in any event within 50 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, a consolidated balance sheet of such Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Quarter, the related
consolidated statements of income and cash flows for such Fiscal Quarter and the related consolidated statements of income and cash flows for the portion of the Fiscal Year ended at the end of such Fiscal Quarter, setting forth in the case of each
such statement of income and cash flows in comparative form the figures for the corresponding period in the previous Fiscal Year, all certified (subject to normal year-end adjustments) as to fairness of presentation and consistency with GAAP by such
Borrower’s chief financial officer, chief accounting officer or controller, or treasurer; 
  
 (c) simultaneously with the delivery of each set of financial statements referred to in clauses 5.01(a) and 5.01(b) above, a certificate
of such Borrower’s chief financial officer or chief accounting officer (i) setting forth in reasonable detail the calculations required to establish 

  

 45 

 
whether such Borrower was in compliance with the requirements of Section 5.10 and (ii) stating whether any Default with respect to such Borrower exists on
the date of such certificate and, if any Default with respect to such Borrower then exists, setting forth the details thereof and the action which such Borrower is taking or proposes to take with respect thereto; 
  
 (d) within five Domestic Business Days after any officer of
such Borrower obtains knowledge of any Default with respect to such Borrower, if such Default with respect to such Borrower is then continuing, a certificate of such Borrower’s chief financial officer or chief accounting officer setting forth
the details thereof and the action which such Borrower is taking or proposes to take with respect thereto; 
  
 (e) promptly after the mailing thereof to such Borrower’s or Holdings’ shareholders generally, copies of all financial
statements, reports and proxy statements so mailed; 
  
 (f) promptly after the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8 or its equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents)
filed by such Borrower with the SEC; 
  
 (g) if
and when any member of the ERISA Group of such Borrower (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a
termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to
the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the
PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the
minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC;
(vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or makes any 

  

 46 

 
amendment to any Plan which has resulted or could result in the imposition of a Lien or the posting of a bond or other security, a certificate of such
Borrower’s chief financial officer or chief accounting officer setting forth details as to such occurrence and the action, if any, which such Borrower or applicable member of the ERISA Group of such Borrower is required or proposes to take; and

  
 (h) from time to time such additional
information regarding the financial position or business of such Borrower and its Subsidiaries as the Administrative Agent, at the request of any Bank, may reasonably request. 
  
 SECTION 5.2. Payment of Obligations. Such Borrower will pay and discharge, and will cause each
Subsidiary of such Borrower to pay and discharge, at or before maturity, all their respective material obligations and liabilities (including, without limitation, tax liabilities and claims of materialmen, warehousemen and the like which if unpaid
might by law give rise to a Lien), except where the same are contested in good faith by appropriate proceedings and except where the failure to pay and discharge the same could not reasonably be expected to have a Material Adverse Effect with
respect to such Borrower. 
  
 SECTION 5.3.
Maintenance of Property; Insurance. (a) Except as otherwise contemplated or required by the ConEd Settlement Agreement or the O&R Settlement Agreement, such Borrower will keep, and will cause each Material Subsidiary of such Borrower to
keep, all material property necessary in its business in good working order and condition, ordinary wear and tear excepted. 
  
 (b) Such Borrower will, and will cause each Material Subsidiary of such Borrower to, maintain (either in such Borrower’s name or in such
Subsidiary’s own name) with financially sound and responsible insurance companies, insurance on all their respective properties in at least such amounts (with no greater risk retention) and against at least such risks as are usually maintained,
retained or insured against in the same general area by companies of established repute engaged in the same or a similar business. Such Borrower will furnish to the Banks, upon request from the Administrative Agent, information presented in
reasonable detail as to the insurance so carried. 
  
 SECTION 5.4. Conduct of Business and Maintenance of Existence. Except as otherwise contemplated or required by the ConEd Settlement Agreement or the O&R Settlement Agreement, such Borrower and its Material
Subsidiaries will continue to engage in business of the same general type as now conducted by such Borrower and its Material Subsidiaries, and will preserve, renew and keep in full force and effect their respective corporate existences and their
respective 

  

 47 

 
rights, privileges and franchises necessary or desirable in the normal conduct of business; provided that nothing in this Section shall prohibit:

  
 (a) the merger of a Subsidiary of such
Borrower into such Borrower (other than the merger of ConEd or O&R into Holdings) if, after giving effect thereto, no Default with respect to such Borrower shall have occurred and be continuing; 
  
 (b) the merger or consolidation of a Subsidiary of such
Borrower with or into a Person other than such Borrower (other than the merger or consolidation of ConEd or O&R with or into Holdings) if, after giving effect thereto, no Default with respect to such Borrower shall have occurred and be
continuing; or 
  
 (c) the termination of the
corporate existence of a Subsidiary of such Borrower (other than the termination of the corporate existence of ConEd or O&R) if such Borrower in good faith determines that such termination is in the best interest of such Borrower and is not
materially disadvantageous to the Banks. 
  
 SECTION 5.5. Compliance with Laws. Such Borrower will comply, and will cause each Subsidiary of such Borrower to comply, in all material respects with all applicable laws, ordinances, rules, regulations and
requirements of governmental authorities (including, without limitation, Environmental Laws and ERISA and the rules and regulations thereunder), except where the necessity of compliance therewith is contested in good faith by appropriate proceedings
or except where the failure to comply could not reasonably be expected to have a Material Adverse Effect with respect to such Borrower. 
  
 SECTION 5.6. Inspection of Property, Books and Records. Such Borrower will keep, and will cause each Material Subsidiary of such
Borrower to keep, proper books of record and account in which full and correct entries shall be made of all dealings and transactions in relation to its business and activities; and will permit, and will cause each Subsidiary of such Borrower to
permit, at reasonable times and upon five Domestic Business Days’ notice, representatives of any Bank at such Bank’s expense to visit and inspect any of their respective properties, to examine and make abstracts from any of their
respective books and records and to discuss their respective affairs, finances and accounts with their respective officers, employees and independent public accountants. 
  

 48 

 SECTION 5.7. Consolidations, Mergers and Transfers of Assets. (a) Such Borrower
will not consolidate or merge with or into any other Person; provided that such Borrower may merge with another Person if: 
  
 (i) either (A) such Borrower is the corporation surviving such merger or (B) the Person (if other than such Borrower) formed by such
consolidation or into which such Borrower is merged (any such Person, the “Successor”), shall be organized and existing under the laws of the United States, any state thereof or the District of Columbia and shall expressly assume,
in a writing executed and delivered to the Administrative Agent for delivery to each of the Banks, in form reasonably satisfactory to the Administrative Agent, the due and punctual payment of the principal of and interest on its Loans and the
performance of the other obligations under this Agreement and its Notes on the part of such Borrower to be performed or observed, as fully as if such Successor were originally named as such Borrower in this Agreement; and 
  
 (ii) after giving effect to such merger, no Default with
respect to such Borrower shall have occurred and be continuing. 
  
 (b) Such Borrower will not sell, lease or otherwise transfer, directly or indirectly, all or substantially all of its assets, to any other Person; provided that the sale or transfer of (i) ConEd’s fossil-fueled generating
capacity, as contemplated or required by the ConEd Settlement Agreement, (ii) O&R’s fossil-fueled generating capacity, as contemplated or required by the O&R Settlement Agreement, (iii) ConEd’s generation assets in New York City,
as contemplated or required by the Order of the New York State Public Service Commission dated July 21, 1998 or (iv) O&R’s generation assets, as contemplated or required by the Order of the New York State Public Service Commission dated
April 16, 1998 (as modified by the Order of the New York State Public Service Commission dated October 7, 1998), individually or in the aggregate, shall not constitute a sale or transfer of all or substantially all of such Borrower’s assets.

  
 SECTION 5.8. Use of Proceeds. The
proceeds of the Loans or the Letters of Credit will be used by such Borrower in connection with the issuance by such Borrower of commercial paper, for non-hostile acquisitions and/or for general corporate purposes. None of such proceeds will be
used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any “margin stock” within the meaning of Regulation U. 
  

 49 

 SECTION 5.9. Negative Pledge. Neither such Borrower nor any Subsidiary of such
Borrower will create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except: 
  
 (a) Liens existing on the date of this Agreement securing Debt outstanding on the date of this Agreement in an aggregate principal or face
amount not exceeding $100,000,000; 
  
 (b) (i)
Liens arising pursuant to securitization of accounts receivable in respect of recovery by ConEd or O&R of Electric and/or Steam Stranded Cost and (ii) Liens arising as a result of securitization of BGS by RECO pursuant to the EDECA and the
Securitization Act; 
  
 (c) any Lien existing on
any asset of any Person at the time such Person becomes a Subsidiary and not created in contemplation of such event; 
  
 (d) any Lien on any asset securing obligations incurred or assumed for the purpose of financing all or any part of the cost of acquiring
ownership or use of such asset or a related asset, provided that such Lien attaches to such asset concurrently with or within 90 days after such acquisition; 
  
 (e) any Lien on any asset of any Person existing at the time such Person is merged or consolidated with or
into the Borrower or a Subsidiary and not created in contemplation of such event; 
  
 (f) any Lien existing on any asset prior to the acquisition thereof by the Borrower or a Subsidiary and not created in contemplation of
such acquisition; 
  
 (g) any Lien arising out of
the refinancing, extension, renewal or refunding of any Debt secured by any Lien permitted by any of the foregoing clauses of this Section, provided that such Debt is not increased and is not secured by any additional assets; 
  
 (h) Liens arising in the ordinary course of its business
which (i) do not secure Debt or Derivatives Obligations and (ii) do not secure any single obligation (or class of obligations having a common cause) in an amount exceeding $25,000,000; 
  
 (i) Liens on cash and cash equivalents securing Derivatives Obligations, provided that the aggregate
amount of cash and cash equivalents subject to such Liens shall at no time exceed $100,000,000; 
  
 (j) Liens incurred by Holdings, ConEd or O&R in the ordinary course of business for the purpose of securing or collateralizing energy

  

 50 

 
purchases or sales as may be required from time to time by an independent system operator or similar system-governing body in any jurisdiction; and

  
 (k) Liens not otherwise permitted by the
foregoing clauses of this Section securing Debt of such Borrower and its Subsidiaries in an aggregate principal or face amount not at any time exceeding 5% of Consolidated Total Capital of such Borrower. 
  
 SECTION 5.10. Debt to Total Capital. The ratio of
Consolidated Debt of such Borrower to Consolidated Total Capital of such Borrower shall not at any time exceed 0.65 to 1. 
  
 SECTION 5.11. Transactions with Affiliates. Such Borrower will not, and will not permit any Subsidiary of such Borrower to, directly
or indirectly, pay any funds to or for the account of, make any investment (whether by acquisition of stock or indebtedness, by loan, advance, transfer of property, guarantee or other agreement to pay, purchase or service, directly or indirectly,
any Debt, or otherwise) in, lease, sell, transfer or otherwise dispose of any assets, tangible or intangible, to, or participate in, or effect, any transaction with, any Affiliate of such Borrower except (i) on an arms-length basis on terms at least
as favorable to such Borrower or such Subsidiary of such Borrower as could have been obtained from a third party that was not an Affiliate of such Borrower or (ii) as contemplated or required by the ConEd Settlement Agreement or the O&R
Settlement Agreement; provided that the foregoing provisions of this Section shall not prohibit (x) any such Person from declaring or paying any lawful dividend or other payment ratably in respect of all its capital stock of the relevant
class and (y) ConEd and O&R from purchasing their own common stock or the common stock of Holdings, so long as in each case, after giving effect thereto, no Default shall have occurred and be continuing. 
  
 ARTICLE 6 
  
 DEFAULTS 
  
 SECTION 6.1. Events of Default. If one or more of the following events (“Events of Default”) shall have occurred
and be continuing with respect to a Borrower: 
  
 (a) such Borrower shall (i) fail to pay when due any principal of any Loan or any draw under any Letter of Credit (whether at stated maturity or at optional prepayment); or (ii) default in the payment of any 

  

 51 

 
interest on any Loan or any draw under any Letter of Credit, any fee or any other amount payable by it hereunder when due and such default shall have
continued unremedied for five days; 
  
 (b) such
Borrower shall fail to observe or perform any covenant contained in Article 5, other than those contained in Sections 5.01 through 5.06; 
  
 (c) such Borrower shall fail to observe or perform any covenant or agreement (other than those covered by clause 6.01(a) or 6.01(b) above)
contained in this Agreement or any amendment hereof for 7 days after the Administrative Agent gives notice thereof to such Borrower at the request of any Bank; 
  

(d) any representation, warranty, certification or statement made by such Borrower in this Agreement or any amendment hereof or in any
certificate, financial statement or other document delivered pursuant to this Agreement shall prove to have been incorrect in any material respect when made (or deemed made); 
  
 (e) such Borrower or any Material Subsidiary of such Borrower shall fail to make one or more payments in
respect of Material Financial Obligations of such Borrower when due or within any applicable grace period; 
  
 (f) any event or condition shall occur which results in the acceleration of the maturity of any Material Debt of such Borrower or enables
the holder of such Debt of such Borrower or any Person acting on such holder’s behalf to accelerate the maturity thereof; 
  
 (g) such Borrower or any Material Subsidiary of such Borrower shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing; 
  

 52 

 (h) an involuntary case or other proceeding shall be commenced against such Borrower or
any Material Subsidiary of such Borrower seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 days; or an order for relief shall be
entered against such Borrower or any Material Subsidiary of such Borrower under the federal bankruptcy laws as now or hereafter in effect; 
  
 (i) any member of the ERISA Group of such Borrower shall fail to pay when due an amount or amounts aggregating in excess of $100,000,000
which it shall have become liable to pay under Title IV of ERISA; or notice of intent to terminate a Material Plan shall be filed under Title IV of ERISA by any member of the ERISA Group of such Borrower, any plan administrator or any combination of
the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer, any Material
Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default, within the meaning of
Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or more members of the ERISA Group to incur a current payment obligation in excess of $100,000,000; or 
  
 (j) judgments or orders (other than judgments or orders in
respect of Non-recourse Debt) for the payment of money exceeding $100,000,000 in aggregate amount shall be rendered against such Borrower or any Subsidiary of such Borrower and such judgments or orders shall continue unsatisfied and unstayed for a
period of 10 days; 
  
 then, and in every such event, the Administrative Agent
shall (i) if requested by Banks having more than 50% in aggregate amount of the Commitments, by notice to such Borrower terminate the Commitments as to such Borrower and they shall thereupon terminate, and such Borrower shall no longer be entitled
to borrow hereunder, and the Maximum Availability of such Borrower shall be $0, and (ii) if requested by Banks holding more than 50% in aggregate unpaid principal amount of the Loans of such Borrower, by notice to such Borrower declare such Loans
(together with accrued interest thereon) to be, and such Loans (together with accrued interest thereon) shall thereupon become, immediately due and payable 

  

 53 

 
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower; provided that, if any Event of
Default specified in clause 6.01(g) or 6.01(h) occurs with respect to such Borrower, then without any notice to such Borrower or any other act by the Administrative Agent or the Banks, the Commitments shall thereupon terminate with respect to such
Borrower and the Loans to such Borrower (together with accrued interest thereon) shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower. Termination
of the Commitments or acceleration of Loans (by declaration or otherwise) as to a particular Borrower (or any related termination of such Borrower’s Maximum Availability) under this Section 6.01 shall not terminate the Commitments or the
Maximum Availability or accelerate the Loans as to any other Borrower. 
  
 SECTION 6.2. Notice of Default. The Administrative Agent shall give notice to a Borrower under Section 6.01(c) promptly upon being requested to do so by any Bank and shall thereupon notify all the Banks thereof.

  
 SECTION 6.3. Cash Cover. Each Borrower
agrees, in addition to the provisions of Section 6.01 hereof, that upon the occurrence and during the continuance of any Event of Default with respect to a Borrower, such Borrower shall, if requested by the Administrative Agent upon the instruction
of the Banks having more than 50% of the Letter of Credit Liabilities owing by such Borrower, pay to the Administrative Agent an amount in immediately available funds (which funds shall be held as collateral pursuant to arrangements satisfactory to
the Administrative Agent) equal to the aggregate amount available for drawing under all such Letters of Credit outstanding at such time (the “Cash Cover Amount”), provided that, upon the occurrence of any Event of Default specified
in Section 6.01(g) or 6.01(h) with respect to such Borrower, such Borrower shall pay such amount forthwith without any notice or demand or any other act by the Administrative Agent or the Banks. The Administrative Agent shall have exclusive dominion
and control, including exclusive right of withdrawal, over the account in which the Cash Cover Amount is deposited. If any Borrower is required to provide a Cash Cover Amount, such Cash Cover Amount (to the extent not applied pursuant to the
arrangements with the Administrative Agent) shall be returned to such Borrower within three Business Days after all Events of Default have been cured or waived. 
  

 54 

 ARTICLE 7 
  
 THE AGENTS 
  
 SECTION 7.1. Appointment and Authorization. Each Bank irrevocably appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent by the terms hereof or thereof, together with all such powers as are reasonably incidental thereto. 
  
 SECTION 7.2. Administrative Agent and Affiliates.
JPMorgan Chase Bank shall have the same rights and powers under this Agreement as any other Bank and may exercise or refrain from exercising the same as though it were not the Administrative Agent, and JPMorgan Chase Bank and its affiliates may
accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or affiliate of the Borrower as if it were not the Administrative Agent. 
  
 SECTION 7.3. Action by Administrative Agent. The
obligations of the Administrative Agent hereunder are only those expressly set forth herein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action with respect to any Default, except as
expressly provided in Article 6. 
  
 SECTION 7.4.
Consultation with Experts. The Administrative Agent may consult with legal counsel (who may be counsel for any Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted
to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 
  
 SECTION 7.5. Liability of Administrative Agent. None of the Administrative Agent, its affiliates and their respective directors,
officers, agents and employees shall be liable for any action taken or not taken by it in connection herewith (i) with the consent or at the request of the Required Banks (or such different number of Banks as any provision hereof expressly requires
for such consent or request) or (ii) in the absence of its own gross negligence or willful misconduct. None of the Administrative Agent, its affiliates and their respective directors, officers, agents and employees shall be responsible for or have
any duty to ascertain, inquire into or verify (i) any statement, warranty or representation made in connection with this Agreement or any borrowing or issuance of a Letter of Credit hereunder; (ii) the performance or observance of any of the
covenants or agreements of any Borrower; (iii) the satisfaction of any condition specified in Article 3, except receipt of items required to be delivered to the Administrative Agent; or (iv) the validity, effectiveness or genuineness of this
Agreement, the Notes or any other instrument or writing furnished in connection herewith. The Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent, certificate, statement or other writing (which may be a
bank wire, 

  

 55 

 
telex, facsimile or similar writing) believed by it to be genuine or to be signed by the proper party or parties. Without limiting the generality of the
foregoing, the use of the term “agent” in this Agreement with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead, such term is used merely as a matter of market custom and is intended to create or reflect only an administrative relationship between independent contracting parties. 
  
 SECTION 7.6. Indemnification. The Banks shall, ratably in proportion to their Credit Exposures,
indemnify the Administrative Agent and each Issuing Bank, its affiliates and their respective directors, officers, agents and employees (to the extent not reimbursed by the Borrower) against any cost, expense (including counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees’ gross negligence or willful misconduct) that such indemnitees may suffer or incur in connection with this Agreement or any Letter of Credit
or any action taken or omitted by such indemnitees hereunder. 
  
 SECTION 7.7. Credit Decision. Each Bank acknowledges that it has, independently and without reliance on any Agent or any other Bank, and based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Bank also acknowledges that it will, independently and without reliance on any Agent or any other Bank, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking any action under this Agreement. 
  
 SECTION 7.8. Successor Administrative Agent. The Administrative Agent may resign at any time by giving notice thereof to the Banks
and the Borrowers. Upon any such resignation, the Required Banks shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Banks, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on behalf of the Banks, appoint a successor Administrative Agent, which shall be a commercial bank organized
or licensed under the laws of the United States or of any State thereof and having a combined capital and surplus of at least $100,000,000. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor Administrative Agent,
such successor Administrative Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. After any retiring 

  

 56 

 
Administrative Agent resigns as Administrative Agent hereunder, the provisions of this Article shall inure to its benefit as to actions taken or omitted to
be taken by it while it was Administrative Agent. 
  
 SECTION 7.9. Administrative Agent’s Fee. Each Borrower shall pay to the Administrative Agent for its own account fees in the amounts and at the times previously agreed upon by such Borrower and the Administrative
Agent. 
  
 SECTION 7.10. Other Agents. None
of the Co-Documentation Agents nor the Syndication Agent, in their capacities as such, shall have any duties or obligations of any kind under this Agreement. 
  
 ARTICLE 8 
  
 CHANGE IN CIRCUMSTANCES 
  
 SECTION 8.1. Basis for Determining Interest Rate Inadequate or Unfair. If on or before the first day of any Interest Period for any
CD Loans, Euro-Dollar Loans or Money Market LIBOR Loan: 
  
 (a) the Administrative Agent is advised by the Reference Banks that deposits in dollars in the applicable amounts are not being offered to the Reference Banks in the relevant market for such Interest Period, or

  
 (b) in the case of CD Loans or Euro-Dollar
Loans, Banks having at least 50% in aggregate amount of the Commitments advise the Administrative Agent that the Adjusted CD Rate or the London Interbank Offered Rate, as the case may be, as determined by the Administrative Agent will not adequately
and fairly reflect the cost to such Banks of funding their CD Loans or Euro-Dollar Loans, as the case may be, for such Interest Period, 
  
 the Administrative Agent shall forthwith give notice thereof to the Borrowers and the Banks, whereupon until the Administrative Agent notifies the Borrower that the
circumstances giving rise to such suspension no longer exist, (i) the obligations of the Banks to make CD Loans or Euro-Dollar Loans, as the case may be, or to continue or convert outstanding Loans as or into CD Loans or Euro-Dollar Loans, as the
case may be, shall be suspended and (ii) each outstanding CD Loan or Euro-Dollar Loan, as the case may be, shall be converted into a Base Rate Loan on the last day of the then current Interest Period applicable thereto. Unless the Borrower notifies
the Administrative Agent at least two Domestic Business 

  

 57 

 
Days before the date of any affected Borrowing for which a Notice of Borrowing has previously been given that it elects not to borrow on such date, (i) if
such affected Borrowing is a CD Borrowing or Euro-Dollar Borrowing, such Borrowing shall instead be made as a Base Rate Borrowing and (ii) if such affected Borrowing is a Money Market LIBOR Borrowing, the Money Market LIBOR Loans comprising such
Borrowing shall bear interest for each day from and including the first day to but excluding the last day of the Interest Period applicable thereto at the Base Rate for such day. 
  
 SECTION 8.2. Illegality. If, on or after the date hereof, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Bank (or its Euro-Dollar Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency, shall make it unlawful or impossible for any Bank
(or its Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar Loans to a Borrower and such Bank shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Banks and such
Borrower, whereupon until such Bank notifies such Borrower and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Bank to make Euro-Dollar Loans, or to convert outstanding Loans
into Euro-Dollar Loans or continue outstanding Loans as Euro-Dollar Loans, in each case to such Borrower shall be suspended. Before giving any notice to the Administrative Agent pursuant to this Section, such Bank shall designate a different
Euro-Dollar Lending Office if such designation will avoid the need for giving such notice and will not, in the judgment of such Bank, be otherwise disadvantageous to such Bank. If such notice is given, each Euro-Dollar Loan of such Bank then
outstanding to such Borrower shall be converted to a Base Rate Loan either (a) on the last day of the then current Interest Period applicable to such Euro-Dollar Loan if such Bank may lawfully continue to maintain and fund such Loan as a Euro-Dollar
Loan to such day or (b) immediately if such Bank shall determine that it may not lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan to such day. Interest and principal on any such Base Rate Loan shall be payable on the same dates
as, and on a pro rata basis with, the interest and principal payable on the related Euro-Dollar Loans of the other Banks. 
  
 SECTION 8.3. Increased Cost and Reduced Return. (a) If on or after (x) the date hereof, in the case of any Committed Loan or Letter
of Credit or any obligation to make Committed Loans or issue or participate in any Letters of Credit or (y) the date of the related Money Market Quote, in the case of any Money Market Loan, the adoption of any applicable law, rule or regulation, or
any 

  

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change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank
or comparable agency charged with the interpretation or administration thereof, or compliance by any Bank (or its Applicable Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank
or comparable agency, shall impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding (i) with respect to any CD Loan any such
requirement included in an applicable Domestic Reserve Percentage and (ii) with respect to any Euro-Dollar Loan any such requirement with respect to which such Bank is entitled to compensation during the relevant Interest Period under Section 2.15),
special deposit, insurance assessment (excluding, with respect to any CD Loan, any such requirement reflected in an applicable Assessment Rate) or similar requirement against assets of, deposits with or for the account of, or credit (including
letters of credit and participations therein) extended by, any Bank (or its Applicable Lending Office) or shall impose on any Bank (or its Applicable Lending Office) or on the United States market for certificates of deposit or the London interbank
market any other condition affecting its Fixed Rate Loans or other Letters of Credit, its Notes or its obligation to make Fixed Rate Loans or its obligations hereunder in respect of Letters of Credit and the result of any of the foregoing is to
increase the cost to such Bank (or its Applicable Lending Office) of making or maintaining any Fixed Rate Loan or of issuing or participating in any Letter of Credit, or to reduce the amount of any sum received or receivable by such Bank (or its
Applicable Lending Office) or such Issuing Bank under this Agreement or under its Notes with respect thereto, by an amount deemed by such Bank or Issuing Bank to be material, then, within 15 days after demand by such Bank or Issuing Bank (with a
copy to the Administrative Agent), each Borrower shall pay to such Bank or Issuing Bank its Appropriate Share of such additional amount or amounts as will compensate such Bank or Issuing Bank for such increased cost or reduction. 
  
 (b) If any Bank shall have determined that, after the date hereof, the
adoption of any applicable law, rule or regulation regarding capital adequacy, or any change in any such law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect
of reducing the rate of return on capital of such Bank (or its Parent) as a consequence of such Bank’s obligations hereunder to a level below that which such Bank (or its Parent) could have achieved but for such adoption, change, request or
directive (taking into consideration its policies with respect to capital adequacy) by an amount deemed by such Bank to be material, then from 

  

 59 

 
time to time, within 15 days after demand by such Bank (with a copy to the Administrative Agent), each Borrower shall pay to such Bank its Appropriate Share
of such additional amount or amounts as will compensate such Bank (or its Parent) for such reduction. 
  
 (c) Each Bank will promptly notify the Borrowers and the Administrative Agent of any event of which it has knowledge, occurring after the date hereof,
which will entitle such Bank to compensation pursuant to this Section and will designate a different Applicable Lending Office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the judgment of
such Bank, be otherwise disadvantageous to it. A certificate of any Bank claiming compensation under this Section and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In
determining such amount, such Bank may use any reasonable averaging and attribution methods. 
  
 (d) The “Appropriate Share” of a Borrower with respect to any amount payable hereunder is the sum of (i) to the extent such amount is properly allocable to Loans and Letter of Credit outstanding
hereunder, the portion of such amount properly allocable to the Loans and Letter of Credit outstanding to such Borrower, and (ii) to the extent such amount is not properly allocable to Loans and Letters of Credit outstanding hereunder, the
Appropriate Share shall be the Availability Share of such Borrower. 
  
 SECTION 8.4. Taxes. (a) For the purposes of this Section, the following terms have the following meanings: 
  
 “Taxes” means any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings with respect to any
payment by a Borrower pursuant to this Agreement or under any Note, and all liabilities with respect thereto, excluding (i) in the case of each Bank and the Administrative Agent, taxes imposed on its net income, and franchise or similar taxes
imposed on it, by a jurisdiction under the laws of which it is organized or in which its principal executive office is located or, in the case of a Bank, in which its Applicable Lending Office is located and (ii) in the case of each Bank, any United
States withholding tax imposed on such payment, but not excluding any portion of such tax that exceeds the United States withholding tax which would have been imposed on such a payment to such Bank under the laws and treaties in effect when such
Bank first becomes a party to this Agreement. 
  
 “Other
Taxes” means any present or future stamp or documentary taxes and any other excise or property taxes, or similar charges or levies, which arise from any payment made pursuant to this Agreement or under any Note or from the 

  

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execution, delivery, registration or enforcement of, or otherwise with respect to, this Agreement or any Note. 
  
 (b) All payments by a Borrower to or for the account of any Bank or the
Administrative Agent hereunder or under any Note shall be made without deduction for any Taxes; provided that, if a Borrower shall be required by law to deduct any Taxes from any such payment, (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) such Bank or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) such Borrower shall make such deductions, (iii) such Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law and (iv) such
Borrower shall promptly furnish to the Administrative Agent, at its address specified in or pursuant to Section 9.01, the original or a certified copy of a receipt evidencing payment thereof. 
  
 (c) In addition, each Borrower agrees to pay its Appropriate Share of any
Other Taxes. 
  
 (d) Each Borrower agrees to indemnify each Bank
and the Administrative Agent for its Appropriate Share of the full amount of Taxes and Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or asserted (whether or not correctly) by any jurisdiction on amounts payable under
this Section) paid by such Bank, including any Issuing Bank, or the Administrative Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be
paid within 15 days after such Bank, including any Issuing Bank, or the Administrative Agent (as the case may be) makes demand therefor. 
  
 (e) Each Bank organized under the laws of a jurisdiction outside the United States, before it signs and delivers this Agreement in the case of each Bank
listed on the signature pages hereof and before it becomes a Bank in the case of each other Bank, and from time to time thereafter if requested in writing by a Borrower (but only so long as such Bank remains lawfully able to do so), shall provide
each of such Borrower and the Administrative Agent with Internal Revenue Service Form W-8BEN or W-8ECI, as appropriate, or any successor form prescribed by the Internal Revenue Service, certifying that such Bank is entitled to benefits under an
income tax treaty to which the United States is a party which exempts such Bank from United States withholding tax or reduces the rate of withholding tax on payments of interest for the account of such Bank or 

  

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certifying that the income receivable by it pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United States.

  
 (f) For any period with respect to which a Bank has failed to
provide a Borrower or the Administrative Agent with the appropriate form referred to in Section 8.04(e) (unless such failure is due to a change in treaty, law or regulation occurring after the date on which such form originally was required to be
provided), such Bank shall not be entitled to indemnification under Section 8.04(b) or 8.04(c) with respect to Taxes imposed by the United States; provided that if a Bank, that is otherwise exempt from or subject to a reduced rate of
withholding tax, becomes subject to Taxes because of its failure to deliver a form required hereunder, such Borrower shall take such steps as such Bank shall reasonably request to assist such Bank to recover such Taxes. 
  
 (g) If a Borrower is required to pay additional amounts to or for the account
of any Bank pursuant to this Section as a result of a change in law or treaty occurring after such Bank first became a party to this Agreement, then such Bank will, at such Borrower’s request, change the jurisdiction of its Applicable Lending
Office if, in the judgment of such Bank, such change will eliminate or reduce any such additional payment which may thereafter accrue and is not otherwise disadvantageous to such Bank. 
  
 SECTION 8.5. Base Rate Loans Substituted for Affected Fixed Rate Loans. If (i) the obligation of any
Bank to make, or to continue or convert outstanding Loans as or to, Euro-Dollar Loans to a Borrower has been suspended pursuant to Section 8.02 or (ii) any Bank has demanded compensation from a Borrower under Section 8.03 or 8.04 with respect to its
CD Loans or Euro-Dollar Loans to such Borrower, and in any such case such Borrower shall, by at least five Euro-Dollar Business Days’ prior notice to such Bank through the Administrative Agent, have elected that the provisions of this Section
shall apply to such Bank, then, unless and until such Bank notifies such Borrower that the circumstances giving rise to such suspension or demand for compensation no longer exist, all Loans to such Borrower which would otherwise be made by such Bank
as (or continued as or converted to) CD Loans or Euro-Dollar Loans, as the case may be, shall instead be Base Rate Loans on which interest and principal shall be payable contemporaneously with the related CD Loans or Euro-Dollar Loans of the other
Banks. If such Bank notifies such Borrower that the circumstances giving rise to such suspension or demand for compensation no longer exist, the principal amount of each such Base Rate Loan shall be converted into a CD Loan or Euro-Dollar Loan, as
the case may be, on the first day of the next succeeding Interest Period applicable to the related CD Loans or Euro-Dollar Loans of the other Banks. 
  

 62 

 SECTION 8.6. Substitution of Bank. If (i) the obligation of any Bank to make
Euro-Dollar Loans has been suspended pursuant to Section 8.02 or (ii) any Bank has demanded compensation under Section 8.03 or 8.04, the Borrowers shall have the right, with the assistance of the Administrative Agent, to seek a mutually satisfactory
substitute bank or banks (which may be one or more of the Banks) to purchase the Loans and assume the Commitment of such Bank. 
  
 ARTICLE 9 
  
 MISCELLANEOUS 
  
 SECTION 9.1. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including bank wire, telex, facsimile or similar writing) and shall be given to
such party: (a) in the case of a Borrower or the Administrative Agent, at its address, facsimile number or telex number set forth on the signature pages hereof, (b) in the case of any Bank, at its address, facsimile number or telex number set forth
in its Administrative Questionnaire or in the case of any party, at such other address, facsimile number or telex number as such party may hereafter specify for the purpose by notice to the Administrative Agent and the Borrowers. Each such notice,
request or other communication shall be effective (i) if given by telex, when transmitted to the telex number referred to in this Section and the appropriate answerback is received, (ii) if given by facsimile, when transmitted to the facsimile
number referred to in this Section and confirmation of receipt is received, (iii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iv) if given by any other
means, when delivered at the address referred to in this Section; provided that notices to the Administrative Agent under Article 2 or Article 8 shall not be effective until received. 
  
 SECTION 9.2. No Waivers. No failure or delay by the
Administrative Agent or any Bank in exercising any right, power or privilege hereunder or under any Note or Letter of Credit shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
  
 SECTION 9.3. Expenses; Indemnification. (a) Each Borrower shall pay its Appropriate Share of (i) all
out-of-pocket expenses of the Administrative Agent, including fees and disbursements of special counsel for the Administrative Agent, in connection with the preparation and administration of this Agreement, any 

  

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waiver or consent hereunder or any amendment hereof or any Default or alleged Default hereunder with respect to a Borrower and (ii) if an Event of Default
occurs with respect to a Borrower, all out-of-pocket expenses incurred by the Administrative Agent and each Bank (including any Issuing Bank), including (without duplication) the fees and disbursements of outside counsel and the allocated cost of
inside counsel, in connection with such Event of Default and collection, bankruptcy, insolvency and other enforcement proceedings resulting therefrom. 
  
 (b) Each Borrower agrees to indemnify the Administrative Agent and each Bank (including any Issuing Bank), their respective affiliates and the respective
directors, officers, agents and employees of the foregoing (each an “Indemnitee”) and hold each Indemnitee harmless from and against any and all liabilities, losses, damages, costs and expenses of any kind, including, without
limitation, the reasonable fees and disbursements of counsel, which may be incurred by such Indemnitee in connection with any investigative, administrative or judicial proceeding (whether or not such Indemnitee shall be designated a party thereto)
brought or threatened relating to or arising out of this Agreement or any Letter of Credit or any actual or proposed use of proceeds of Loans or Letters of Credit hereunder in each case to the extent of such Borrower’s Appropriate Share;
provided that no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful misconduct as determined by a court of competent jurisdiction. 
  
 (c) This Section 9.03 shall survive any termination of this Agreement, the
termination or assignment of the Commitments and the repayment of all outstanding Loans. 
  
 SECTION 9.4. Set-Offs. Each Bank agrees that if it shall, by exercising any right of set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and
interest then due with respect to the Loans and Letter of Credit Liabilities held by it which is greater than the proportion received by any other Bank in respect of the aggregate amount of principal and interest then due with respect to the Loans
and Letter of Credit Liabilities held by such other Bank, the Bank receiving such proportionately greater payment shall purchase such participations in the Loans and Letter of Credit Liabilities held by the other Banks, and such other adjustments
shall be made, as may be required so that all such payments of principal and interest with respect to the Loans and Letter of Credit Liabilities held by the Banks shall be shared by the Banks pro rata; provided that nothing in this Section
shall impair the right of any Bank to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of the Borrower other than its indebtedness in respect of the Loans and
Letter of Credit Liabilities. Each 

  

 64 

 
Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Loan or Letter of Credit
Liability, whether or not acquired pursuant to the foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with respect to such participation as fully as if such holder of a participation were a direct creditor of
such Borrower in the amount of such participation. 
  
 SECTION 9.5. Amendments and Waivers. Any provision of this Agreement or the Notes may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Borrowers and the Required Banks
(and, if the rights or duties of any Issuing Bank or the Administrative Agent are affected thereby, by the Administrative Agent); provided that no such amendment or waiver shall: 
  
 (a) unless signed by all the Banks, (i) increase or decrease the Commitment of any Bank (except for a ratable decrease in
the Commitments of all the Banks) or subject any Bank to any additional obligation, (ii) reduce the principal of or rate of interest on any Loan or the amount to be reimbursed in respect of any Letter of Credit or any interest thereon or any fees
hereunder, (iii) postpone the date fixed for any payment of principal of or interest on any Loan or for reimbursement in respect of any Letter of Credit or any fees hereunder or for the termination of any Commitment or (except as expressly provided
in Section 2.17) the expiry date of any Letter of Credit or (iv) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans, or the number of Banks, which shall be required for the Banks or any of them to take
any action under this Section or any other provision of this Agreement; or 
  
 (b) unless signed by a Designated Lender or its Designating Bank, subject such Designated Lender to any additional obligation or affect its rights hereunder (unless the rights of all the Banks hereunder are similarly
affected). 
  
 SECTION 9.6. Successors and
Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that none of the Borrowers may assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of each Bank (and any attempted assignment or transfer by any Borrower without such consent shall be null and void). 
  
 (b) Any Bank may assign to one or more Eligible Assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans and/or Letter of Credit Liabilities at the time owing to it); provided that (i) except in the case of an assignment of the 

  

 65 

 
entire remaining amount of the assigning Bank’s Commitment and the Loans and/or Letter of Credit Liabilities at the time owing to it or in the case of
an assignment to a Bank or an affiliate of a Bank or an Approved Fund with respect to a Bank, the aggregate amount of the Commitment (which for this purpose includes Loans and/or Letter of Credit Liabilities outstanding thereunder) subject to each
such assignment (determined as of the date the Assignment and Assumption Agreement, as hereinafter defined, with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000, unless each of the
Administrative Agent, the Issuing Bank and, so long as no Event of Default with respect to such Borrower has occurred and is continuing, each Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed), (ii) each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Bank’s rights and obligations under this Agreement with respect to the Loan and/or Letter of Credit Liability or the Commitment assigned, except that
this clause (ii) shall not apply to rights in respect of outstanding Money Market Loans and (iii) the parties to each assignment shall execute and deliver to the Administrative Agent an agreement, substantially in the form of Exhibit I hereto (an
“Assignment and Assumption Agreement”), together with a processing and recordation fee of $3,500, and the Eligible Assignee, if it shall not be a Bank, shall deliver to the Administrative Agent an Administrative Questionnaire.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption Agreement, the Eligible Assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of a Bank under this Agreement, and the assigning Bank thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all of the assigning Bank’s rights and obligations under this Agreement, such
Bank shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 8.03, 8.04 and 9.03). Any assignment or transfer by a Bank of rights or obligations under this Agreement that does not comply with this paragraph
shall be treated for purposes of this Agreement as a sale by such Bank of a participation in such rights and obligations in accordance with paragraph (d) of this Section. 
  
 (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at one of its
offices in the State of Delaware or New York a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Banks, and the Commitments of, and principal amount of the Loans
owing to, each Bank pursuant to the terms hereof from time to time (the “Register”). The entries in the 

  

 66 

 
Register shall be conclusive, and the Borrowers, the Administrative Agent and the Banks may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrowers and any Bank, at any reasonable time and from time to time upon
reasonable prior notice. 
  
 (d) Any Bank may, without the consent
of, or notice to, the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Bank’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Bank’s obligations under this Agreement shall remain unchanged, (ii) such Bank shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Banks shall continue to deal solely and directly with such Bank in connection with such Bank’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Bank sells such a participation shall provide that such Bank shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of
this Agreement; provided that such agreement or instrument may provide that such Bank will not, without the consent of the Participant, agree to any amendment, modification or waiver described in clause (i), (ii) or (iii) of Section 9.05(a)
that affects such Participant. Subject to paragraph (e) of this Section, each Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12 and 2.15 and Article 8 to the same extent as if it were a Bank and had acquired
its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.04 as though it were a Bank, provided such Participant agrees to be subject to
Section 9.04 as though it were a Bank. 
  
 (e) A Participant shall
not be entitled to receive any greater payment under Section 8.03 or 8.04 than the applicable Bank would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrowers’ prior written consent. A Participant organized under the laws of a jurisdiction outside the United States shall not be entitled to the benefits of Section 8.04 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of such Borrower, to comply with Section 8.04(e) as though it were a Bank. 
  

(f) Any Bank may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of
such Bank, including without limitation any pledge or assignment to secure obligations 

  

 67 

 
to a Federal Reserve Bank; provided that no such pledge or assignment of a security interest shall release a Bank from any of its obligations
hereunder or substitute any such pledgee or assignee for such Bank as a party hereto. 
  
 SECTION 9.7. Designated Lenders. (a) Subject to the provisions of this subsection (a), any Bank may at any time designate an Eligible Designee to provide all or a portion of the Loans to be made
by such Bank pursuant to this Agreement; provided that such designation shall not be effective unless each Borrower and the Administrative Agent consent thereto (which consents shall not be unreasonably withheld). When a Bank and its Eligible
Designee shall have signed an agreement substantially in the form of Exhibit J hereto (a “Designation Agreement”) and each Borrower and the Administrative Agent shall have signed their respective consents thereto, such Eligible
Designee shall become a Designated Lender for purposes of this Agreement. The Designating Bank shall thereafter have the right to permit such Designated Lender to provide all or a portion of the Loans to be made by such Designating Bank pursuant to
Section 2.01 or 2.03, and the making of such Loans or portion thereof shall satisfy the obligation of the Designating Bank to the same extent, and as if, such Loans or portion thereof were made by the Designating Bank. As to any Loans or portion
thereof made by it, each Designated Lender shall have all the rights that a Bank making such Loans or portion thereof would have had under this Agreement and otherwise; provided that (x) its voting rights under this Agreement shall be
exercised solely by its Designating Bank and (y) its Designating Bank shall remain solely responsible to the other parties hereto for the performance of such Designated Lender’s obligations under this Agreement, including its obligations in
respect of the Loans or portion thereof made by it. No additional Note shall be required to evidence the Loans or portion thereof made by a Designated Lender; and the Designating Bank shall be deemed to hold its Note as agent for its Designated
Lender to the extent of the Loans or portion thereof funded by such Designated Lender. Each Designating Bank shall act as administrative agent for its Designated Lender and give and receive notices and other communications on its behalf. Any
payments for the account of any Designated Lender shall be paid to its Designating Bank as administrative agent for such Designated Lender and neither the Borrower nor the Administrative Agent shall be responsible for any Designating Bank’s
application of such payments. In addition, any Designated Lender may, with notice to (but without the prior written consent of) each Borrower and the Administrative Agent, (i) assign all or portions of its interest in any Loans to its Designating
Bank or to any financial institutions consented to by each Borrower and the Administrative Agent that provide liquidity and/or credit facilities to or for the account of such Designated Lender to support the funding of Loans or portions thereof made
by it and (ii) disclose on a confidential basis any non-public information relating to its Loans or portions thereof to any rating 

  

 68 

 
agency, commercial paper dealer or provider of any guarantee, surety, credit or liquidity enhancement to such Designated Lender. 
  
 (b) Each party to this Agreement agrees that it will not institute against,
or join any other person in instituting against, any Designated Lender any bankruptcy, insolvency, reorganization or other similar proceeding under any federal or state bankruptcy or similar law, for one year and a day after all outstanding senior
indebtedness of such Designated Lender is paid in full. The Designating Bank for each Designated Lender agrees to indemnify, save, and hold harmless each other party hereto for any loss, cost, damage and expense arising out of its inability to
institute any such proceeding against such Designated Lender. This subsection (b) shall survive the termination of this Agreement. 
  
 SECTION 9.8. No Reliance on Margin Stock. Each of the Banks represents to each Agent and each of the other Banks that it in good
faith is not relying upon any “margin stock” (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement. 
  
 SECTION 9.9. Confidentiality. (a) The Administrative Agent and each Bank agrees to keep any
information delivered or made available by the Borrowers pursuant to this Agreement confidential from anyone other than persons employed or retained by such Bank who are engaged in evaluating, approving, structuring or administering the credit
facility contemplated hereby; provided that nothing herein shall prevent any Bank from disclosing such information (a) to any other Bank or to the Administrative Agent, (b) to any other Person if reasonably incidental to the administration of
the credit facility contemplated hereby, (c) upon the order of any court or administrative agency, (d) upon the request or demand of any regulatory agency or authority, (e) which had been publicly disclosed other than as a result of a disclosure by
the Administrative Agent or any Bank prohibited by this Agreement, (f) in connection with any litigation to which the Administrative Agent, any Bank or its subsidiaries or Parent may be a party, (g) to the extent necessary in connection with the
exercise of any remedy hereunder, (h) to such Bank’s or Administrative Agent’s legal counsel and independent auditors and (i) subject to provisions substantially similar to those contained in this Section, to any actual or proposed
Participant, Eligible Assignee or Eligible Designee. 
  
 (b)
Notwithstanding anything herein to the contrary, any party hereto (and any employee, representative or other agent of thereof) may disclose to any and all Persons, without limitation of any kind, the U.S. federal income tax treatment and the U.S.
federal income tax structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure. 

  

 69 

 
However, no disclosure of any information relating to such tax treatment or tax structure may be made to the extent nondisclosure is reasonably necessary in
order to comply with applicable securities laws. 
  
 SECTION 9.10. Governing Law; Submission to Jurisdiction. This Agreement and each Note shall be governed by and construed in accordance with the laws of the State of New York. Each Borrower hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting in New York City for purposes of all legal proceedings arising out of or relating to this Agreement or the
transactions contemplated hereby. Each Borrower irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient forum. 
  
 SECTION 9.11. Counterparts; Integration. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument. This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

  
 SECTION 9.12. WAIVER OF JURY
TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  

 70 

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

					
	 CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	 	 	 Address:
	 	 4 Irving Place New York,
 New York 10003

	 	 	 Facsimile:
	 	 (212) 260-5713

  

					
	 CONSOLIDATED EDISON, INC.

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	 	 	 Address:
	 	 4 Irving Place New York,
 New York 10003

	 	 	 Facsimile:
	 	 (212) 260-5713

  

					
	ORANGE AND ROCKLAND UTILITIES, INC.
		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	 	 	 Address:
	 	 4 Irving Place New York,
 New York 10003

	 	 	 Facsimile:
	 	 (212) 260-5713

  

  

					
	 JPMORGAN CHASE BANK, as Administrative Agent

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	 	 	 Address:
	 	 270 Park Ave. - 4th Floor
 New York, NY 10017

	 	 	 Facsimile:
	 	212-270-0213

  

  

					
	BANK ONE, N.A.
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 CITIBANK, N.A.

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 HSBC BANK USA

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 JPMORGAN CHASE BANK

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 KBC BANK N.V.

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	 
		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 KEYBANK NATIONAL ASSOCIATION

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	MELLON BANK, N.A.
		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 STATE STREET BANK AND TRUST COMPANY

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	THE BANK OF NEW YORK
		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  

					
	 WACHOVIA BANK NATIONAL ASSOCIATION

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

  
 COMMITMENT SCHEDULE

  

						
	 Bank

	  	 Title

	  	Commitment

	 JPMorgan Chase Bank, N.A.
	  	Administrative Agent	  	$	71,750,000
	 Citibank, N.A.
	  	Syndication Agent	  	$	71,750,000
	 The Bank of New York
	  	Co-Documentation Agent	  	$	65,000,000
	 HSBC Bank USA.
	  	Co-Documentation Agent	  	$	46,000,000
	 Mellon Bank, N.A.
	  	Co-Documentation Agent	  	$	46,000,000
	 Wachovia Bank National Association
	  	Co-Agent	  	$	65,000,000
	 KeyBank National Association
	  	Co-Agent	  	$	55,500,000
	 Credit Suisse First Boston (Cayman Islands Branch)
	  	Co-Agent	  	$	55,500,000
	 Bank One, N.A.
	  	Co-Agent	  	$	46,000,000
	 State Street Bank and Trust Company
	  	Participant	  	$	20,000,000
	 KBC Bank, NV
	  	Participant	  	$	20,000,000
	 Total
	  	 	  	$	562,500,000

  

  
 CONSOLIDATED EDISON, INC.

 PRICING SCHEDULE 
  
 Each of “Facility Fee Rate”, “Euro-Dollar Margin” and “CD Margin” for Holdings (the Borrower for
purposes of this Pricing Schedule) means, for any day, the rate per annum set forth below in the row opposite such term and in the column corresponding to the Pricing Level for the Borrower and Usage that apply on such day: 
  

																			
	 Pricing Level

	  	Level I

	 	 	Level II

	 	 	Level III

	 	 	Level IV

	 	 	Level V

	 	 	Level VI

	 
	 Facility Fee Rate
	  	0.090	%	 	0.100	%	 	0.125	%	 	0.150	%	 	0.175	%	 	0.300	%
							
	 Euro-Dollar Margin
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Usage £ 33%
	  	0.160	%	 	0.300	%	 	0.375	%	 	0.475	%	 	0.575	%	 	0.700	%
	 Usage > 33% and £ 66%
	  	0.285	%	 	0.425	%	 	0.500	%	 	0.600	%	 	0.700	%	 	0.825	%
	 Usage > 66%
	  	0.410	%	 	0.550	%	 	0.625	%	 	0.725	%	 	0.825	%	 	0.950	%
							
	 CD Margin
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Usage £ 33%
	  	0.285	%	 	0.425	%	 	0.500	%	 	0.600	%	 	0.700	%	 	0.825	%
	 Usage > 33% and £ 66%
	  	0.410	%	 	0.550	%	 	0.635	%	 	0.725	%	 	0.825	%	 	0.950	%
	 Usage > 66%
	  	0.535	%	 	0.675	%	 	0.760	%	 	0.850	%	 	0.950	%	 	1.075	%

  
 For purposes of this
Schedule, the following terms have the following meanings, subject to the concluding paragraph of this Schedule: 
  
 “Level I Pricing” applies on any day on which the Borrower’s long-term debt is rated AA- or higher by S&P or Aa3 or higher by
Moody’s. 
  
 “Level II Pricing” applies on
any day on which (i) the Borrower’s long-term debt is rated A+ or higher by S&P or A1 or higher by Moody’s and (ii) Level I Pricing does not apply. 
  
 “Level III Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated A or higher
by S&P or A2 or higher by Moody’s and (ii) neither Level I Pricing nor Level II Pricing applies. 
  
 “Level IV Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated A- or higher by S&P or A3 or higher by
Moody’s and (ii) none of Level I Pricing, Level II Pricing and Level III Pricing applies. 
  

 “Level V Pricing” applies on any day on which (i) the Borrower’s long-term debt is
rated BBB+ or higher by S&P or Baa1 or higher by Moody’s and (ii) none of Level I Pricing, Level II Pricing, Level III Pricing and Level IV Pricing applies. 
  
 “Level VI Pricing” applies on any day if no other Pricing Level applies on such day. 
  
 “Moody’s” means Moody’s Investors Service, Inc.

  
 “Pricing Level” refers to the determination
of which of Level I, Level II, Level III, Level IV, Level V or Level VI Pricing applies on any day. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  
 The “Usage” applicable to any date is the percentage
equivalent of a fraction (i) the numerator of which is the sum of (A) the Total Outstanding Amount at such date (after giving effect to any borrowing or payment on such date) plus (B) the aggregate outstanding principal amount of the
“Loans” of the Borrowers (including both “Committed Loans” and “Money Market Loans”) under the Existing 3-Year Credit Agreement at such date (after giving effect to any borrowing or payment on such date) and (ii) the
denominator of which is the sum of (A) the aggregate amount of the Commitments at such date (after giving effect to any reduction on such date) and (B) the aggregate amount of the “Commitments” under the Existing 3-Year Credit Agreement at
such date (after giving effect to any reduction on such date). If for any reason any Loans (or Letter of Credit Liabilities) remain outstanding following the termination of the Commitments, Usage will be deemed to be more than 66%. 
  
 The credit ratings to be utilized for purposes of this Schedule are those
assigned to the senior unsecured long-term debt securities of the relevant Borrower without third-party credit enhancement, and any rating assigned to any other debt security of such Borrower shall be disregarded. The ratings in effect for any day
are those in effect at the close of business on such day. 
  
 In
the case of split ratings from S&P and Moody’s, the rating to be used to determine the applicable Pricing Level is the higher of the two (e.g., A+/A2 results in Level II Pricing); provided that if the split is more than one full
rating category, the intermediate (or higher of the two intermediate ratings) will be used (e.g. A+/A3 results in Level III Pricing and AA-/A3 results in Level II Pricing). 
  

  
 CONSOLIDATED EDISON
COMPANY OF NEW YORK, INC. 
 ORANGE AND ROCKLAND UTILITIES, INC. 
 PRICING SCHEDULE 
  
 Each of “Facility Fee Rate”, “Euro-Dollar Margin” and “CD Margin” for Con Ed or O&R (the Borrower for purposes of this Pricing Schedule) means, for any day, the
rate per annum set forth below in the row opposite such term and in the column corresponding to the Pricing Level for the Borrower and Usage that apply on such day: 
  

																			
	 Pricing Level

	  	Level I

	 	 	Level II

	 	 	Level III

	 	 	Level IV

	 	 	Level V

	 	 	Level VI

	 
	 Facility Fee Rate
	  	0.090	%	 	0.100	%	 	0.110	%	 	0.125	%	 	0.150	%	 	0.200	%
							
	 Euro-Dollar Margin
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Usage £ 33%
	  	0.110	%	 	0.150	%	 	0.190	%	 	0.325	%	 	0.475	%	 	0.675	%
	 Usage > 33% and £ 66%
	  	0.235	%	 	0.275	%	 	0.315	%	 	0.450	%	 	0.600	%	 	0.800	%
	 Usage > 66%
	  	0.360	%	 	0.400	%	 	0.440	%	 	0.575	%	 	0.725	%	 	0.925	%
							
	 CD Margin
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Usage £ 33%
	  	0.235	%	 	0.275	%	 	0.315	%	 	0.450	%	 	0.600	%	 	0.800	%
	 Usage > 33% and £ 66%
	  	0.360	%	 	0.400	%	 	0.440	%	 	0.575	%	 	0.725	%	 	0.925	%
	 Usage > 66%
	  	0.485	%	 	0.525	%	 	0.565	%	 	0.700	%	 	0.850	%	 	1.050	%

  
 For purposes of this
Schedule, the following terms have the following meanings, subject to the concluding paragraph of this Schedule: 
  
 “Level I Pricing” applies on any day on which the Borrower’s long-term debt is rated AA- or higher by S&P or Aa3 or
higher by Moody’s. 
  
 “Level II Pricing”
applies on any day on which (i) the Borrower’s long-term debt is rated A+ or higher by S&P or A1 or higher by Moody’s and (ii) Level I Pricing does not apply. 
  
 “Level III Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated A or higher
by S&P or A2 or higher by Moody’s and (ii) neither Level I Pricing nor Level II Pricing applies. 
  

 “Level IV Pricing” applies on any day on which (i) the Borrower’s long-term debt is
rated A- or higher by S&P or A3 or higher by Moody’s and (ii) none of Level I Pricing, Level II Pricing and Level III Pricing applies. 
  
 “Level V Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated BBB+ or higher by S&P or Baa1 or
higher by Moody’s and (ii) none of Level I Pricing, Level II Pricing, Level III Pricing and Level IV Pricing applies. 
  
 “Level VI Pricing” applies on any day if no other Pricing Level applies on such day. 
  
 “Moody’s” means Moody’s Investors Service, Inc.

  
 “Pricing Level” refers to the determination
of which of Level I, Level II, Level III, Level IV, Level V or Level VI Pricing applies on any day. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  
 The “Usage” applicable to any date is the percentage
equivalent of a fraction (i) the numerator of which is the sum of (A) the Total Outstanding Amount at such date (after giving effect to any borrowing or payment on such date) plus (B) the aggregate outstanding principal amount of the
“Loans” of the Borrowers (including both “Committed Loans” and “Money Market Loans”) under the Existing 3-Year Credit Agreement at such date (after giving effect to any borrowing or payment on such date) and (ii) the
denominator of which is the sum of (A) the aggregate amount of the Commitments at such date (after giving effect to any reduction on such date) and (B) the aggregate amount of the “Commitments” under the Existing 3-Year Credit Agreement at
such date (after giving effect to any reduction on such date). If for any reason any Loans (or Letter of Credit Liabilities) remain outstanding following the termination of the Commitments, Usage will be deemed to be more than 66%. 
  
 The credit ratings to be utilized for purposes of this Schedule are those
assigned to the senior unsecured long-term debt securities of the relevant Borrower without third-party credit enhancement, and any rating assigned to any other debt security of such Borrower shall be disregarded. The ratings in effect for any day
are those in effect at the close of business on such day. 
  
 In
the case of split ratings from S&P and Moody’s, the rating to be used to determine the applicable Pricing Level is the higher of the two (e.g., A+/A2 results in Level II Pricing); provided that if the split is more than one full
rating category, the intermediate (or higher of the two intermediate ratings) will be used (e.g. A+/A3 results in Level III Pricing and AA-/A3 results in Level II Pricing). 
  

  
 EXHIBIT A 

 
 NOTE 
  
 New York, New York 
 November 26, 2003 
  
 For value received, [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.] [CONSOLIDATED EDISON, INC.] [ORANGE AND ROCKLAND UTILITIES, INC.], a New York
corporation (the “Borrower”), promises to pay to the order of
                                 (the “Bank”), for the account of
its Applicable Lending Office, the unpaid principal amount of each Loan made by the Bank to the Borrower pursuant to the Credit Agreement referred to below on the maturity date provided for in the Credit Agreement. The Borrower promises to pay
interest on the unpaid principal amount of each such Loan on the dates and at the rate or rates provided for in the Credit Agreement. All such payments of principal and interest shall be made in lawful money of the United States in Federal or other
immediately available funds at the office of JPMorgan Chase Bank, 270 Park Avenue, New York, New York. 
  
 All Loans made by the Bank, the respective types thereof and all repayments of the principal thereof shall be recorded by the Bank and, if the Bank so
elects in connection with any transfer or enforcement hereof, appropriate notations to evidence the foregoing information with respect to each such Loan then outstanding may be endorsed by the Bank on the schedule attached hereto, or on a
continuation of such schedule attached to and made a part hereof; provided that the failure of the Bank to make (or any error in making) any such recordation or endorsement shall not affect the Borrower’s obligations hereunder or under
the Credit Agreement. 
  
 This note is one of the Notes referred
to in the 3-Year Credit Agreement dated as of November 26, 2003 among Consolidated Edison Company of New York, Inc., Consolidated Edison, Inc., Orange and Rockland Utilities, Inc. the Banks party thereto and JPMorgan Chase Bank, as Administrative
Agent (as the same may be amended from time to time, the “Credit Agreement”). Terms defined in the Credit Agreement are used herein with the same meanings. Reference is made to the Credit Agreement for provisions for the prepayment
hereof and the acceleration of the maturity hereof. 
  

			
	 [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.]

	 [CONSOLIDATED EDISON, INC.]

	 [ORANGE AND ROCKLAND UTILITIES, INC.]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A-2 

  
 LOANS AND PAYMENTS OF
PRINCIPAL 
  

									
	 Date

	  	 Amount of Loan

	  	 Type of Loan

	  	 Amount of Principal Repaid

	  	 Notation Made By

	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 

  

 A-3 

  
 EXHIBIT B 

 
 FORM OF MONEY MARKET QUOTE REQUEST 
  
 [Date] 
  

	To:	JPMorgan Chase Bank (the “Administrative Agent”) 

  

	From:	[Consolidated Edison Company of New York, Inc.] [Consolidated Edison, Inc.] [Orange and Rockland Utilities, Inc.] (the “Borrower”) 

  

	Re:	3-Year Credit Agreement (the “Credit Agreement”) dated as of November 26, 2003 among the Borrower, the Banks party thereto and the Administrative Agent

  
 We hereby give notice pursuant to Section 2.03
of the Credit Agreement that we request Money Market Quotes for the following proposed Money Market Borrowing(s): 
  
 Date of Borrowing:
                                     
  

			
	 Principal Amount1

	  	 Interest Period2

	 $
	  	 

  
 Such Money Market
Quotes should offer a Money Market [Margin] [Absolute Rate]. [The applicable base rate is the London Interbank Offered Rate.] 

	1	Amount must be $5,000,000 or a larger multiple of $1,000,000. 

  

	2	Not less than one month (LIBOR Auction) or not less than 7 days (Absolute Rate Auction), subject to the provisions of the definition of Interest Period.

  

 Terms used herein have the meanings assigned to them in the Credit Agreement. 
  

			
	 [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.]

	 [CONSOLIDATED EDISON, INC.]

	 [ORANGE AND ROCKLAND UTILITIES, INC.]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 B-2 

  
 EXHIBIT C 

 
 FORM OF INVITATION FOR MONEY MARKET QUOTES 
  

	To:	[Name of Bank] 

  

	Re:	Invitation for Money Market Quotes to [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.] [CONSOLIDATED EDISON, INC.] [ORANGE AND ROCKLAND UTILITIES, INC.] (the
“Borrower”) 

  
 Pursuant to Section
2.03 of the 3-Year Credit Agreement dated as of November 26, 2003 among the Borrower, the Banks party thereto and the undersigned, as Administrative Agent, we are pleased on behalf of the Borrower to invite you to submit Money Market Quotes to the
Borrower for the following proposed Money Market Borrowing(s): 
  
 Date of
Borrowing:                                      
  

			
	 Principal Amount

	  	 Interest Period

	 $
	  	 

  
 Such Money Market
Quotes should offer a Money Market [Margin] [Absolute Rate]. [The applicable base rate is the London Interbank Offered Rate.] 
  
 Please respond to this invitation by no later than [2:00 P.M.] [9:30 A.M.] (New York City time) on [date]. 
  

			
	 JPMORGAN CHASE BANK, as Administrative Agent

		
	By:	 	 
	 	 	 Authorized Officer

  

  
 EXHIBIT D 

 
 FORM OF MONEY MARKET QUOTE 
  

	To:	JPMorgan Chase Bank, as Administrative Agent 

  

	Re:	Money Market Quote to [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.] [CONSOLIDATED EDISON, INC.] [ORANGE AND ROCKLAND UTILITIES, INC.] (the “Borrower”)

  
 In response to your invitation on behalf of the
Borrower dated                         ,             ,
we hereby make the following Money Market Quote on the following terms: 
  

	1.	Quoting Bank: ________________________________ 

  

	2.	Person to contact at Quoting Bank: ________________________________ 

  

	3.	Date of Borrowing: ________________________________1 

  

	4.	We hereby offer to make Money Market Loan(s) in the following principal amounts, for the following Interest Periods and at the following rates: 

  

							
	 Principal Amount2

	  	 Interest Period3

	  	 Money Market [Margin]4

	  	 [Absolute Rate]5

	 $
	  	 	  	 	  	 
	 $
	  	 	  	 	  	 

  
 [provided, that
the aggregate principal amount of Money Market Loans for which the above offers may be accepted shall not exceed
$                    .]2 

	1	As specified in the related Invitation. 

  

	2	Principal amount bid for each Interest Period may not exceed principal amount requested. Specify aggregate limitation if the sum of the individual offers exceeds the
amount the Bank is willing to lend. Each bid must be made for $5,000,000 or a larger multiple of $1,000,000. 

  

	3	Not less than one month or not less than 7 days, as specified in the related Invitation. No more than five bids are permitted for each Interest Period.

  

	4	Margin over or under the London Interbank Offered Rate determined for the applicable Interest Period. Specify percentage (to the nearest 1/10,000 of 1%) and specify
whether “PLUS” or “MINUS”. 

  

	5	Specify rate of interest per annum (to the nearest 1/10,000 of 1%). 

  

 We understand and agree that the offer(s) set forth above, subject to the satisfaction of the applicable
conditions set forth in the 3-Year Credit Agreement dated as of November 26, 2003 among the Borrower, the Banks party thereto and yourselves, as Administrative Agent, irrevocably obligate(s) us to make the Money Market Loan(s) for which any offer(s)
are accepted, in whole or in part. 
  

									
	 	 	 	 	 Very truly yours,

			
	 	 	 	 	 [NAME OF BANK]

					
	Dated:	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Officer

  

  
 EXHIBIT E 

 
 OPINION OF COUNSEL FOR 
 CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. 
  
 [Effective Date] 
  
 To the Banks and the Administrative Agent 
       Referred to Below 
 c/o JPMorgan Chase Bank, as Administrative Agent 
       270 Park Avenue 
       New York, New York 10017 
  
 Dear Sirs: 
  
 I am General Counsel of Consolidated Edison, Inc. and as such have general supervision of the legal affairs of Consolidated
Edison Company of New York, Inc., a New York corporation (the “Company”) and the personnel of the Company’s Law Department. I and other members of the Law Department have represented the Company in connection with the 3-Year
Credit Agreement dated as of November 26, 2003 (the “Credit Agreement”) among the Company, Consolidated Edison, Inc., Orange and Rockland Utilities, Inc., the Banks party thereto and JPMorgan Chase Bank, as Administrative Agent.
Capitalized terms used herein without definition are used as defined in the Credit Agreement. This opinion is being rendered to you at the request of our clients pursuant to Section 3.01(b) of the Credit Agreement. 
  
 In connection with this opinion letter, I have examined an execution copy of
the Credit Agreement and originals or copies, certified or otherwise identified to my satisfaction, of such documents, corporate records and certificates of public officials and have discussed the foregoing documents and such other matters with such
personnel of the Law Department and such officials of the Company, as I considered necessary or appropriate to enable me to express the opinions stated in this letter. In such examination, I have assumed the genuineness of all documents submitted to
me as originals, and the conformity to the originals of all documents submitted to me as copies. 
  
 Based on the foregoing and subject to the other qualifications, assumptions and limitations stated herein, it is my opinion that: 
  
 1. The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of New York and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted. 
  

 2. The execution, delivery and performance by the Company of the Credit Agreement and the Notes are
within the Company’s corporate powers, have been duly authorized by all necessary corporate action and governmental approvals (including the authorizations of the PSC and the FERC), and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Company’s certificate of incorporation or by-laws or of any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or any Material Subsidiary or result in
the creation or imposition of any Lien on any asset of the Company or any Material Subsidiary. Pursuant to the current FERC authorization the Company may issue and sell short-term debt in an amount up to $1,000,000,000 at any one time outstanding
during the period ending December 31, 2003. 
  
 3. The Credit
Agreement constitutes a valid and binding agreement of the Company and each Note issued thereunder today constitutes a valid and binding obligation of the Company, in each case enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity. 
  
 4. Except as otherwise disclosed in the Company’s periodic reports under the Exchange Act, to the best of my knowledge, there is no action, suit or
proceeding pending or threatened against or affecting the Company or any Material Subsidiary before any court or arbitrator or any governmental body, agency or official, in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the business, consolidated financial position or consolidated results of operations of the Company and its Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity of the
Credit Agreement or the Notes. 
  
 5. Each of the Company’s
Material Subsidiaries is a corporation validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to
carry on its business as now conducted. 
  
 This letter is
provided as a legal opinion only, and not as a guaranty or warranty of the matters discussed herein. The opinion expressed in this letter is 

  

 E-2 

 
limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated. 
  
 The opinions expressed in this letter are based on laws and regulations as in
effect on the date hereof and facts as I understand them as of the date hereof. I am not assuming any obligation, and do not undertake to revise, update or supplement this opinion letter after the date hereof notwithstanding any change in applicable
law or regulation or interpretation thereof, any amendment, supplement modification or rescission of any document examined or relied on in connection herewith, or any change in the facts, after the date hereof. 
  
 The opinions expressed in this letter are rendered in connection with the
transactions contemplated by the Credit Agreement solely for your benefit and are not to be relied upon, quoted, circulated, used or otherwise referred to for any other purpose, nor may it be relied upon by any other person, without my prior written
consent. 
  
 Very truly yours, 
  

 E-3 

  
 EXHIBIT F 

 
 OPINION OF COUNSEL FOR 
 CONSOLIDATED EDISON, INC. 
  
 [Effective Date] 
  
 To the Banks and the Administrative Agent 
       Referred to Below 
 c/o JPMorgan Chase Bank, as Administrative Agent 
       270 Park Avenue 
       New York, New York 10017 
  
 Dear Sirs: 
  
 I am General Counsel of Consolidated Edison, Inc., a New York corporation (the “Company”), and as such have
general supervision of the legal affairs of the Company and the personnel of the Law Department of the Company’s Subsidiary, Consolidated Edison Company of New York, Inc. I and other members of the Law Department have represented the Company in
connection with the 3-Year Credit Agreement dated as of November 26, 2003 (the “Credit Agreement”) among the Company, Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc., the Banks party thereto and
JPMorgan Chase Bank, as Administrative Agent. Capitalized terms used herein without definition are used as defined in the Credit Agreement. This opinion is being rendered to you at the request of our clients pursuant to Section 3.01(b) of the Credit
Agreement. 
  
 In connection with this opinion letter, I have
examined an execution copy of the Credit Agreement and originals or copies, certified or otherwise identified to my satisfaction, of such documents, corporate records and certificates of public officials and have discussed the foregoing documents
and such other matters with such personnel of the Law Department and such officials of the Company, as I considered necessary or appropriate to enable me to express the opinions stated in this letter. In such examination, I have assumed the
genuineness of all documents submitted to me as originals, and the conformity to the originals of all documents submitted to me as copies. 
  
 Based on the foregoing and subject to the other qualifications, assumptions and limitations stated herein, it is my opinion that: 
  
 1. The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of New York and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted. 
  

 F-1 

 2. The execution, delivery and performance by the Company of the Credit Agreement and the Notes are
within the Company’s corporate powers, have been duly authorized by all necessary corporate action and governmental approvals (including the authorizations of the PSC and the FERC), and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Company’s certificate of incorporation or by-laws or of any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or any Material Subsidiary or result in
the creation or imposition of any Lien on any asset of the Company or any Material Subsidiary. 
  
 3. The Credit Agreement constitutes a valid and binding agreement of the Company and each Note issued thereunder today constitutes a valid and binding obligation of the Company, in each case enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity. 
  
 4. Except as otherwise disclosed in the Company’s periodic reports under the Exchange Act, to the best of my knowledge, there is no action, suit or
proceeding pending or threatened against or affecting the Company or any Material Subsidiary before any court or arbitrator or any governmental body, agency or official, in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the business, consolidated financial position or consolidated results of operations of the Company and its Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity of the
Credit Agreement or the Notes. 
  
 5. Each of the Company’s
Material Subsidiaries is a corporation validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to
carry on its business as now conducted. 
  
 6. The Company is a
“holding company” within the meaning of the Public Utility Holding Company Act of 1935, as amended, but is exempt from regulation thereunder by virtue of Section 3(a)(i) of such Act. 
  
 This letter is provided as a legal opinion only, and not as a guaranty or
warranty of the matters discussed herein. The opinion expressed in this letter is 

  

 F-2 

 
limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated. 
  
 The opinions expressed in this letter are based on laws and regulations as in
effect on the date hereof and facts as I understand them as of the date hereof. I am not assuming any obligation, and do not undertake to revise, update or supplement this opinion letter after the date hereof notwithstanding any change in applicable
law or regulation or interpretation thereof, any amendment, supplement modification or rescission of any document examined or relied on in connection herewith, or any change in the facts, after the date hereof. 
  
 The opinions expressed in this letter are rendered in connection with the
transactions contemplated by the Credit Agreement solely for your benefit and are not to be relied upon, quoted, circulated, used or otherwise referred to for any other purpose, nor may it be relied upon by any other person, without my prior written
consent. 
  
 Very truly yours, 
  

 F-3 

  
 EXHIBIT G 

 
 OPINION OF COUNSEL FOR 
 ORANGE AND ROCKLAND UTILITIES, INC. 
  
 [Effective Date] 
  
 To the Banks and the Administrative Agent 
       Referred to Below 
 c/o JPMorgan Chase Bank, as Administrative Agent 
       270 Park Avenue 
       New York, New York 10017 
  
 Dear Sirs: 
  
 I am General Counsel of Consolidated Edison, Inc. and as such have general supervision of the legal affairs of Orange and
Rockland Utilities, Inc., a New York corporation (the “Company”) and the personnel of the Law Department of the Company’s Affiliate, Consolidated Edison Company of New York, Inc. I and other members of the Law Department have
represented the Company in connection with the 3-Year Credit Agreement dated as of November 26, 2003 (the “Credit Agreement”) among the Company, Consolidated Edison, Inc., Consolidated Edison Company of New York, Inc., the Banks
party thereto and JPMorgan Chase Bank, as Administrative Agent. Capitalized terms used herein without definition are used as defined in the Credit Agreement. This opinion is being rendered to you at the request of our clients pursuant to Section
3.01(b) of the Credit Agreement. 
  
 In connection with this
opinion letter, I have examined an execution copy of the Credit Agreement and originals or copies, certified or otherwise identified to my satisfaction, of such documents, corporate records and certificates of public officials and have discussed the
foregoing documents and such other matters with such personnel of the Law Department and such officials of the Company, as I considered necessary or appropriate to enable me to express the opinions stated in this letter. In such examination, I have
assumed the genuineness of all documents submitted to me as originals, and the conformity to the originals of all documents submitted to me as copies. 
  
 Based on the foregoing and subject to the other qualifications, assumptions and limitations stated herein, it is my opinion that: 
  
 1. The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of New York and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted. 
  

 G-1 

 2. The execution, delivery and performance by the Company of the Credit Agreement and the Notes are
within the Company’s corporate powers, have been duly authorized by all necessary corporate action and governmental approvals (including the authorizations of the PSC and the FERC), and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Company’s certificate of incorporation or by-laws or of any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or any Material Subsidiary or result in
the creation or imposition of any Lien on any asset of the Company or any Material Subsidiary. Pursuant to the current FERC authorization the Company may issue and sell short-term debt in an amount up to $150,000,000 at any one time outstanding
during the period ending December 31, 2003. 
  
 3. The Credit
Agreement constitutes a valid and binding agreement of the Company and each Note issued thereunder today constitutes a valid and binding obligation of the Company, in each case enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity. 
  
 4. Except as otherwise disclosed in the Company’s periodic reports under the Exchange Act, to the best of my knowledge, there is no action, suit or
proceeding pending or threatened against or affecting the Company or any Material Subsidiary before any court or arbitrator or any governmental body, agency or official, in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the business, consolidated financial position or consolidated results of operations of the Company and its Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity of the
Credit Agreement or the Notes. 
  
 5. Each of the Company’s
Material Subsidiaries is a corporation validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to
carry on its business as now conducted. 
  
 This letter is
provided as a legal opinion only, and not as a guaranty or warranty of the matters discussed herein. The opinion expressed in this letter is 

  

 G-2 

 
limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated. 
  
 The opinions expressed in this letter are based on laws and regulations as in
effect on the date hereof and facts as I understand them as of the date hereof. I am not assuming any obligation, and do not undertake to revise, update or supplement this opinion letter after the date hereof notwithstanding any change in applicable
law or regulation or interpretation thereof, any amendment, supplement modification or rescission of any document examined or relied on in connection herewith, or any change in the facts, after the date hereof. 
  
 The opinions expressed in this letter are rendered in connection with the
transactions contemplated by the Credit Agreement solely for your benefit and are not to be relied upon, quoted, circulated, used or otherwise referred to for any other purpose, nor may it be relied upon by any other person, without my prior written
consent. 
  
 Very truly yours, 
  

 G-3 

  
 EXHIBIT H 

 
 OPINION OF DAVIS POLK & WARDWELL, 
 SPECIAL COUNSEL FOR THE AGENT 
  
 [Effective Date] 
  
 To the Banks and the Administrative Agent 
       Referred to Below 
 c/o JPMorgan Chase Bank, as Administrative Agent 
       270 Park Avenue 
       New York, New York 10017 
  
 Dear Sirs: 
  
 We have participated in the preparation of the 3-Year Credit Agreement dated as of November 26, 2003 (the “Credit
Agreement”) among Consolidated Edison Company of New York, Inc., a New York corporation (“ConEd”), Consolidated Edison, Inc., a New York corporation (“Holdings”) and Orange and Rockland Utilities, Inc., a
New York corporation (“O&R” and, together with ConEd and Holdings, the “Borrowers” and each a “Borrower”), the Banks party thereto and JPMorgan Chase Bank, as Administrative Agent, and have
acted as special counsel for the Administrative Agent for the purpose of rendering this opinion pursuant to Section 3.01(c) of the Credit Agreement. Terms defined in the Credit Agreement are used herein as therein defined. 
  
 We have examined originals or copies, certified or otherwise identified to
our satisfaction, of such documents, corporate records, certificates of public officials and other instruments and have conducted such other investigations of fact and law as we have deemed necessary or advisable for purposes of this opinion.

  
 Upon the basis of the foregoing, we are of the opinion that:

  
 1. The execution, delivery and performance by each Borrower of
the Credit Agreement and the Notes are within such Borrower’s corporate powers and have been duly authorized by all necessary corporate action. 
  
 2. The Credit Agreement constitutes a valid and binding agreement of each Borrower and each Note issued thereunder today constitutes a valid and 

  

 
binding obligation of the Borrower issuing such Note, in each case enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or
similar laws affecting creditors’ rights generally and general principles of equity. 
  
 We are members of the Bar of the State of New York and the foregoing opinion is limited to the laws of the State of New York and the federal laws of the United States of America. In giving the foregoing opinion, we
express no opinion as to the effect (if any) of any law of any jurisdiction (except the State of New York) in which any Bank is located which limits the rate of interest that such Bank may charge or collect. 
  
 This opinion is rendered solely to you in connection with the above matter.
This opinion may not be relied upon by you for any other purpose or relied upon by any other Person without our prior written consent. 
  
 Very truly yours, 
  

 H-2 

  
 EXHIBIT I 

 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
  
 AGREEMENT dated as of
                    , 20     among [NAME OF ASSIGNOR] (the “Assignor”) and [NAME OF ASSIGNEE] (the
“Assignee”). 
  
 WHEREAS, this Assignment and
Assumption Agreement (the “Agreement”) relates to the 3-Year Credit Agreement dated as of November 26, 2003 among CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., A NEW YORK CORPORATION (“CONED”), CONSOLIDATED EDISON,
INC., A NEW YORK CORPORATION (“HOLDINGS”) AND ORANGE AND ROCKLAND UTILITIES, INC., A NEW YORK CORPORATION (“O&R” AND, TOGETHER WITH CONED AND HOLDINGS, THE “BORROWERS”), the Assignor and the
other Banks party thereto and JPMORGAN CHASE BANK, as Administrative Agent (the “Administrative Agent”) (as amended from time to time, the “Credit Agreement”); 
  
 WHEREAS, as provided under the Credit Agreement, the Assignor has a
Commitment to make Loans to the Borrowers in an aggregate principal amount at any time outstanding not to exceed $                    ;

  
 WHEREAS, [Committed] Loans made to the Borrowers by the
Assignor under the Credit Agreement in the aggregate principal amount of $                     are outstanding at the date hereof; 

 
 WHEREAS, the Assignor has Letter of Credit Liabilities in an aggregate
amount of $                     under the Credit Agreement at the date hereof; and 
  
 WHEREAS, the Assignor proposes to assign to the Assignee all of the rights of
the Assignor under the Credit Agreement in respect of a portion of its Commitment thereunder in an amount equal to $                     (the
“Assigned Amount”), together with a corresponding portion of each of its outstanding [Committed] Loans and Letter of Credit Liabilities, and the Assignee proposes to accept such assignment and assume the corresponding obligations of
the Assignor under the Credit Agreement; 
  
 NOW, THEREFORE, in
consideration of the foregoing and the mutual agreements contained herein, the parties hereto agree as follows: 
  
 SECTION 1. Definitions. All capitalized terms not otherwise defined herein have the respective meanings set forth in the Credit
Agreement. 
  

 SECTION 2. Assignment. The Assignor hereby assigns and sells to the Assignee all of
the rights of the Assignor under the Credit Agreement to the extent of the Assigned Amount and a corresponding portion of each of its outstanding [Committed] Loans and Letter of Credit Liabilities, and the Assignee hereby accepts such assignment
from the Assignor and assumes all of the obligations of the Assignor under the Credit Agreement to the extent of the Assigned Amount. Upon the execution and delivery hereof by the Assignor and the Assignee and the execution of the consent attached
hereto by the Borrowers and the Administrative Agent and the payment of the amounts specified in Section 3 required to be paid on the date hereof (i) the Assignee shall, as of the date hereof, succeed to the rights and be obligated to perform the
obligations of a Bank under the Credit Agreement with a Commitment in an amount equal to the Assigned Amount and acquire the rights of the Assignor with respect to a corresponding portion of each of its outstanding [Committed] Loans and Letter of
Credit Liabilities and (ii) the Commitment of the Assignor shall, as of the date hereof, be reduced by the Assigned Amount, and the Assignor shall be released from its obligations under the Credit Agreement to the extent such obligations have been
assumed by the Assignee. The assignment provided for herein shall be without recourse to the Assignor. 
  
 SECTION 3. Payments. As consideration for the assignment and sale contemplated in Section 2 hereof, the Assignee shall pay to the
Assignor on the date hereof in Federal funds the amount heretofore agreed between them.1 Facility fees [and
commitment fees] accrued before the date hereof are for the account of the Assignor and such fees accruing on and after the date hereof with respect to the Assigned Amount are for the account of the Assignee. Each of the Assignor and the Assignee
agrees that if it receives any amount under the Credit Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party’s interest therein and promptly
pay the same to such other party. 

	1	Amount should combine principal together with accrued interest and breakage compensation, if any, to be paid by the Assignee, net of any portion of any upfront fee
to be paid by the Assignor to the Assignee. It may be preferable in an appropriate case to specify these amounts generically or by formula rather than as a fixed sum. 

  

 I-2 

 SECTION 4. Consent of the Borrowers and the Administrative Agent. This Agreement is
conditioned upon the consent of the Issuing Bank [, the Borrower] and the Administrative Agent pursuant to Section 9.06(b) of the Credit Agreement. 
  
 SECTION 5. No Reliance on Assignor. The Assignor makes no representation or warranty in connection with, and shall have no
responsibility with respect to, the solvency, financial condition or statements of the Borrowers, or the validity and enforceability of the Borrowers’ obligations under the Credit Agreement or any Note. The Assignee acknowledges that it has,
independently and without reliance on the Assignor, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and will continue to be responsible for making its
own independent appraisal of the business, affairs and financial condition of the Borrowers. 
  
 SECTION 6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 SECTION 7. Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first
above written. 
  

			
	 [NAME OF ASSIGNOR]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [NAME OF ASSIGNEE]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 I-3 

 The undersigned consent to the foregoing assignment. 
  

			
	 [CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [CONSOLIDATED EDISON, INC.]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [ORANGE AND ROCKLAND UTILITIES, INC.]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [BANK NAME], as Issuing Bank

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 JPMORGAN CHASE BANK, as Administrative Agent

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 I-4 

  
 EXHIBIT J 

 
 DESIGNATION AGREEMENT 
  
 dated as of
                             ,
             
  
 Reference is made to the 3-Year Credit Agreement dated as of November 26, 2003 (as amended from time to time, the “Credit Agreement”) among CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., A NEW YORK
CORPORATION (“CONED”), CONSOLIDATED EDISON, INC., A NEW YORK CORPORATION (“HOLDINGS”) AND ORANGE AND ROCKLAND UTILITIES, INC., A NEW YORK CORPORATION (“O&R” AND, TOGETHER WITH CONED AND
HOLDINGS, THE “BORROWERS”), the BANKS party thereto, CITIBANK, N.A., as Syndication Agent, and JPMORGAN CHASE BANK, as Administrative Agent (the “Administrative Agent”). Terms defined in the Credit Agreement are
used herein with the same meaning. 
  
                                  (the “Designator”) and
                     (the “Designee”) agree as follows: 
  
 (a). The Designator designates the Designee as its Designated Lender under the Credit Agreement and the Designee accepts
such designation. 
  
 (b). The Designator makes no representations
or warranties and assumes no responsibility with respect to the financial condition of the Borrowers or the performance or observance by the Borrowers of any of their obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto. 
  
 (c). The Designee (i) confirms
that it is an Eligible Designee; (ii) appoints and authorizes the Designator as its administrative agent and attorney-in-fact and grants the Designator an irrevocable power of attorney to receive payments made for the benefit of the Designee under
the Credit Agreement and to deliver and receive all communications and notices under the Credit Agreement, if any, that the Designee is obligated to deliver or has the right to receive thereunder; (iii) acknowledges that the Designator retains the
sole right and responsibility to vote under the Credit Agreement, including, without limitation, the right to approve any amendment or waiver of any provision of the Credit Agreement; and (iv) agrees that the Designee shall be bound by all such
votes, approvals, amendments and waivers and all other agreements of the Designator pursuant to or in connection with the Credit Agreement, all subject to Section 9.05(b) of the Credit Agreement. 
  

 J-1 

 (d). The Designee (i) confirms that it has received a copy of the Credit Agreement, together with copies
of the most recent financial statements referred to in Article 4 or delivered pursuant to Article 5 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this
Designation Agreement and (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Designator or any other Bank and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking any action it may be permitted to take under the Credit Agreement. The Designee acknowledges that it is subject to and bound by the confidentiality provisions of the Credit Agreement (except as
provided in Section 9.07(a) thereof). 
  
 (e). Following the
execution of this Designation Agreement by the Designator and the Designee and the consent hereto by the Borrowers, it will be delivered to the Administrative Agent for its consent. This Designation Agreement shall become effective when the
Administrative Agent consents hereto or on any later date specified on the signature page hereof. 
  
 (f). Upon the effectiveness hereof, the Designee shall have the right to make Loans or portions thereof as a Bank pursuant to Section 2.01 or 2.03 of the
Credit Agreement and the rights of a Bank related thereto. The making of any such Loans or portions thereof by the Designee shall satisfy the obligations of the Designator under the Credit Agreement to the same extent, and as if, such Loans or
portions thereof were made by the Designator. 
  
 (g). This
Designation Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 IN WITNESS WHEREOF, the parties have caused this Designation Agreement to be executed by their respective officers hereunto duly authorized, as of the
date first above written. 
  
 Effective
Date:                             ,
             
  

			
	[NAME OF DESIGNATOR]
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [NAME OF DESIGNEE]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 J-2 

 The undersigned consent to the foregoing designation. 
  

			
	 CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 CONSOLIDATED EDISON, INC.

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 ORANGE AND ROCKLAND UTILITIES, INC.

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 JPMORGAN CHASE BANK, as Administrative Agent

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 J-3 

  
 CROSS-REFERENCE TARGET
LIST 
  
 NOTE: Due to the number of targets some target
names may not appear in the target pull-down list. 
 (This list is for the use of the wordprocessor only, is not a part of this document
and may be discarded.) 
  

			
	 ARTICLE/SECTION

	  	 TARGET NAME

	 1
	  	def.art
	 1.01
	  	def.sec
	 1.02
	  	acct.term.def.sec
	 1.03
	  	type.bor.sec
	 2
	  	cred.art
	 2.01(a)
	  	commit.lend.sec
	 2.02
	  	not.comm.bor.sec
	 2.02(a)
	  	domestic.bor
	 2.02(b)
	  	aggregate.bor
	 2.02(c)
	  	bear.interest.bor
	 2.02(d)
	  	duration.bor
	 2.03
	  	mon.mark.bor.sec
	 2.03(a)
	  	mon.mark.option
	 2.03(b)
	  	mon.mark.quote.req
	 2.03(c)
	  	invit.mon.mark
	 2.03(d)
	  	sub.cont.mon.mar
	 2.03(d)(i)
	  	ebm
	 2.03(d)(ii)
	  	emm
	 2.03(d)(ii)(C)
	  	lib
	 2.03(d)(iii)
	  	ammr
	 2.03(e)
	  	terms.not.bor.mon.mar
	 2.03(f)
	  	accep.not.bor
	 2.03(g)
	  	alloc.agent
	 2.04
	  	not.bank.fund.loan.art
	 2.04(a)
	  	after.rec.not.bor
	 2.04(b)
	  	not.later.12
	 2.04(c)
	  	unaud.cons.descrip.bor
	 2.05
	  	matur.loan.sec
	 2.05(a)
	  	each.comm.loan
	 2.05(b)
	  	each.mon.mar.loan
	 2.06
	  	interest.rate.sec
	 2.06(a)
	  	ea.base.rate
	 2.06(b)
	  	ea.cd.loan
	 2.06(c)
	  	ea.euro.doll
	 2.06(d)
	  	an.over.prin
	 2.06(e)
	  	ea.libor.loan
	 2.06(f)
	  	applic.here
	 2.06(g)
	  	ea.ref.bank
	 2.07
	  	meth.elect.ir.sec
	 2.07(a)
	  	incl.comm.bor
	 2.07(b)
	  	not.ir.elect
	 2.07(c)
	  	cont.thereof
	 2.07(d)
	  	not.ent.elect
	 2.07(e)
	  	if.conv.diff
	 2.08
	  	fees.sec
	 ?
	  	bor.pay.commit
	 ?
	  	bor.pay.cred.exp
	 2.08(c)
	  	pay.quarter
	 2.09
	  	term.reduc.sec
	 2.09(a)
	  	bor.three.dom.day
	 2.09(b)
	  	com.term.date
	 2.10
	  	opt.prepay.sec
	 2.10(a)
	  	firate
	 2.10(b)
	  	one.dom.day
	 2.10(c)
	  	bor.not.prepay
	 2.11
	  	gen.prov.pay.sec
	 2.11(a)
	  	pay.prin.12
	 2.11(b)
	  	ass.pay.full
	 2.12
	  	fund.losses.sec
	 2.13
	  	comp.int.fees.sec
	 2.14
	  	notes.sec
	 2.14(a)
	  	sing.note
	 ?
	  	sep.note
	 2.14(b)
	  	note.to.bank
	 2.15
	  	reg.d.comp
	 3
	  	cond.art
	 3.01
	  	closing.sec
	 ?
	  	ex.note.acct
	 3.01(b)
	  	op.counsel
	 3.01(c)
	  	op.dpw
	 ?
	  	bor.pay.acct.bank
	 3.01(e)
	  	recpt.ag
	 3.02
	  	borrowings.sec
	 ?
	  	drop.de.date
	 3.02(a)
	  	rec.ag
	 3.02(c)
	  	im.bef.aft
	 3.02(d)
	  	reps.wars
	 4
	  	reps.wars.art.bor
	 4.01
	  	cor.expow.sec.bor
	 4.02
	  	cor.gov.auth.sec.bor
	 4.03
	  	bind.effect.sec.bor
	 4.04
	  	fin.inf.sec.bor
	 4.04(a)
	  	cons.descrip.bor
	 4.04(b)
	  	con.subsid.bor
	 4.04(c)
	  	no.mat.adv.bor
	 4.05
	  	litig.sec.bor
	 4.06
	  	comp.erisa.sec.bor
	 4.07
	  	env.mat.sec.bor
	 4.08
	  	taxes.sec.bor
	 4.09
	  	subsid.sec.bor
	 4.10
	  	noreg.rest.sec.bor
	 4.11
	  	fu.disc.sec.bor
	 5
	  	cov.art.bor
	 5.01
	  	inf.sec.bor
	 5.01(a)
	  	win.90.bor
	 5.01(b)
	  	win.45.bor
	 5.01(b)
	  	acert.bor
	 ?
	  	astate.bor
	 5.01(d)
	  	copy.mail.bor
	 5.01(e)
	  	copy.regis.bor
	 5.01(f)
	  	erisa.notice.bor
	 5.01(g)(vii)
	  	tim.tim.bor
	 5.02
	  	pay.obl.sec.bor
	 5.03
	  	maint.prop.sec.bor
	 5.03(a)
	  	gd.wrk.ord.bor
	 5.03(b)
	  	resp.ins.co.bor
	 5.04
	  	cond.bus.sec.bor
	 5.04
	  	merg.sub.bor
	 5.04(a)
	  	merg.cons.bor
	 5.04(b)
	  	term.ex.bor
	 5.05
	  	comp.law.sec.bor
	 5.06
	  	insp.prop.sec.bor
	 5.07
	  	merg.sale.sec.bor
	 5.08
	  	use.proc.sec.bor
	 5.09
	  	neg.pledge.sec.bor
	 5.09
	  	l.aggr.prin.bor
	 5.09(b)(ii)
	  	l.contem.ev.bor
	 5.09(c)
	  	l.finan.all.bor
	 5.09(d)
	  	l.merg.cons.bor
	 5.09(e)
	  	l.prior.acqu.bor
	 5.09(f)
	  	l.refin.ex.bor
	 5.09(g)
	  	l.ord.course.bor
	 5.09(h)
	  	l.cash.bor
	 5.09(j)
	  	l.not.perm.bor
	 ?
	  	debt.cons.sec.bor
	 ?
	  	min.cons.sec.bor
	 ?
	  	fix.char.sec.bor
	 ?
	  	rest.pay.sec.bor
	 ?
	  	lease.pay.sec.bor
	 ?
	  	invest.sec.bor
	 ?
	  	invest.persons
	 ?
	  	temp.cash
	 ?
	  	any.invest
	 ?
	  	trans.affil
	 6
	  	default.art
	 6.01
	  	ev.def.sec
	 6.01(a)
	  	fail.pay
	 6.01(b)
	  	fail.obsr
	 6.01(b)
	  	fail.obs
	 6.01(c)
	  	bor.fail.perform
	 6.01(d)
	  	any.rep
	 6.01(e)
	  	bor.sub.fail
	 6.01(f)
	  	any.event
	 6.01(g)
	  	volun
	 6.01(h)
	  	involun
	 6.01(i)
	  	erisa.fail.pay
	 6.01(j)
	  	judge.render
	 ?
	  	grp.acqu.bene.own
	 6.02
	  	notice.def
	 7
	  	agt.art
	 7.01
	  	appt.auth.sec.ag
	 7.02
	  	agt.affil.sec.ag
	 7.03
	  	act.agt.sec.ag
	 7.04
	  	cons.exp.sec.ag
	 7.05
	  	liab.agt.sec.ag
	 7.06
	  	indem.sec.ag
	 7.07
	  	cred.dec.sec.ag
	 7.08
	  	suc.agt.sec.ag
	 7.09
	  	agt.fee.sec.ag
	 8
	  	change.circum.art
	 8.01
	  	det.int.inad.sec
	 8.01(a)
	  	ad.ref.bank
	 8.01(b)
	  	50%.more
	 8.02
	  	illegal.sec
	 8.03
	  	incr.cost.sec
	 8.03(a)
	  	on.aft.date
	 8.03(b)
	  	after.date
	 8.03(b)
	  	bank.prompt
	 8.04
	  	taxes.sec
	 8.04(a)
	  	foll.mean
	 8.04(b)
	  	acct.any.bank
	 8.04(b)(iv), 8.04(c)
	  	ind.ea.bank
	 8.04(e)
	  	juris.out.us
	 8.04(e)
	  	fail.prov.form
	 8.04(f)
	  	pay.add.amt
	 8.05
	  	brl.sub.afrl.sec
	 8.06
	  	sub.bank
	 9
	  	misc.art
	 9.01
	  	notices.sec
	 9.01(a)
	  	cas.bor.agt
	 9.01(b)
	  	cas.bank
	 9.01(b)
	  	cas.party
	 9.02
	  	no.waiver.sec
	 9.03
	  	bor.pay.agent
	 9.03(a)
	  	bor.pay.full
	 9.03(b)
	  	bor.agree
	 9.04
	  	share.set.off.sec
	 ?
	  	event.def
	 ?
	  	bank.agrees
	 9.05
	  	amend.and.waiv.sec
	 9.06
	  	succ.part.assign.sec
	 ?
	  	prov.bind
	 ?
	  	part.intr
	 ?
	  	bank.assign.bank
	 ?
	  	bank.portion.rights
	 ?
	  	no.entitled
	 9.08
	  	no.rel.mar.stk
	 9.10
	  	gov.law.sec
	 9.11
	  	counter.effect.sec
	 9.12
	  	waiv.jury.sec
	
	TARGET NAMES FOR OPINION OF COUNSEL FOR BORROWER
	 1, 1, 1
	  	tb
	 2, 3, 2, 3, 2, 3
	  	te
	 ?
	  	tc
	 4, 4, 4
	  	tt
	 5, 5, 6, 5
	  	eo
	
	TARGET NAMES FOR OPINION OF DAVIS POLK & WARDWELL, SPECIAL COUNSEL FOR THE AGENT
	 5
	  	ecd
	 5
	  	cac
	
	TARGET NAMES FOR ASSIGNMENT AND ASSUMPTION AGREEMENT
	 1
	  	de
	 2
	  	as
	 3
	  	pa
	 4
	  	cob
	 ?
	  	notes
	 5
	  	nra
	 6
	  	gl
	 7
	  	cp

  

 K-2Third Amendment and Restated Credit Agreement

 Deal Published CUSIP: 96949FAC2 
 Revolver Published CUSIP: 96949FAD0 
  
 Exhibit 10.2 
  

  
 THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
  
 among 
  
 WILLIAMS-SONOMA, INC., 
 as the Borrower, 
  
 BANK OF AMERICA, N.A., 
 as administrative agent and L/C Issuer, 
  
 the Lenders party hereto, 
  
 THE
BANK OF NEW YORK and WELLS FARGO BANK N.A., 
 as co-syndication agents 
  
 and 
  
 JPMORGAN CHASE BANK, N.A. and UNION BANK OF CALIFORNIA, N.A., 
 as co-documentation agents. 
  
 dated as of 
 February 22, 2005 
  
  

  
  
 BANC OF AMERICA SECURITIES LLC 
 Sole Lead Arranger and Sole Book Manager 

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	 DEFINITIONS
	  	1
			
	 Section 1.1
	  	 Definitions
	  	1
			
	 Section 1.2
	  	 Other Interpretive Provisions
	  	19
			
	 Section 1.3
	  	 Accounting Terms and Determinations
	  	20
			
	 Section 1.4
	  	 Time of Day
	  	21
			
	 Section 1.5
	  	 Letter of Credit Amounts
	  	21
			
	 ARTICLE 2
	  	 CREDIT FACILITY
	  	21
			
	 Section 2.1
	  	 Commitments
	  	21
			
	 Section 2.2
	  	 Notes
	  	22
			
	 Section 2.3
	  	 Repayment of Loan
	  	22
			
	 Section 2.4
	  	 Use of Proceeds
	  	22
			
	 Section 2.5
	  	 Termination or Reduction of Commitments
	  	22
			
	 Section 2.6
	  	 Increase of Commitments
	  	23
			
	 ARTICLE 3
	  	 LETTERS OF CREDIT
	  	24
			
	 Section 3.1
	  	 The Letter of Credit Commitment
	  	24
			
	 Section 3.2
	  	 Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit
	  	25
			
	 Section 3.3
	  	 Drawings and Reimbursements; Funding of Participations
	  	27
			
	 Section 3.4
	  	 Repayment of Participations
	  	28
			
	 Section 3.5
	  	 Obligations Absolute
	  	29
			
	 Section 3.6
	  	 Role of L/C Issuer
	  	30
			
	 Section 3.7
	  	 Cash Collateral
	  	30
			
	 Section 3.8
	  	 Applicability of ISP and UCP
	  	30
			
	 Section 3.9
	  	 Letter of Credit Fees
	  	31
			
	 Section 3.10
	  	 Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer
	  	31
			
	 Section 3.11
	  	 Conflict with Letter of Credit Application
	  	31
			
	 Section 3.12
	  	 Letters of Credit Issued for Subsidiaries
	  	32
			
	 ARTICLE 4
	  	 INTEREST AND FEES
	  	32
			
	 Section 4.1
	  	 Interest Rate
	  	32
			
	 Section 4.2
	  	 Determinations of Margins and Facility Fee Rate
	  	32
			
	 Section 4.3
	  	 Payment Dates
	  	33

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 4.4
	  	 Default Interest
	  	33
			
	 Section 4.5
	  	 Conversions and Continuations of Balances
	  	33
			
	 Section 4.6
	  	 Facility Fee
	  	34
			
	 Section 4.7
	  	 Administrative Fee
	  	34
			
	 Section 4.8
	  	 Utilization Fee
	  	34
			
	 Section 4.9
	  	 Computations
	  	34
			
	 ARTICLE 5
	  	 ADMINISTRATIVE MATTERS
	  	35
			
	 Section 5.1
	  	 Borrowing Procedure
	  	35
			
	 Section 5.2
	  	 Minimum Amounts
	  	35
			
	 Section 5.3
	  	 Certain Notices
	  	35
			
	 Section 5.4
	  	 Prepayments
	  	37
			
	 Section 5.5
	  	 Method of Payment
	  	37
			
	 Section 5.6
	  	 Pro Rata Treatment
	  	38
			
	 Section 5.7
	  	 Sharing of Payments
	  	38
			
	 Section 5.8
	  	 Non-Receipt of Funds by the Agent
	  	39
			
	 ARTICLE 6
	  	 CHANGE IN CIRCUMSTANCES
	  	40
			
	 Section 6.1
	  	 Increased Cost and Reduced Return
	  	40
			
	 Section 6.2
	  	 Limitation on Libor Balances and IBOR Balances
	  	41
			
	 Section 6.3
	  	 Illegality
	  	42
			
	 Section 6.4
	  	 Treatment of Affected Balances
	  	42
			
	 Section 6.5
	  	 Compensation
	  	43
			
	 Section 6.6
	  	 Taxes
	  	43
			
	 ARTICLE 7
	  	 GUARANTIES
	  	44
			
	 Section 7.1
	  	 Guaranties
	  	44
			
	 Section 7.2
	  	 New Guarantors
	  	45
			
	 ARTICLE 8
	  	 CONDITIONS PRECEDENT
	  	45
			
	 Section 8.1
	  	 Conditions to Effectiveness
	  	45
			
	 Section 8.2
	  	 All Advances
	  	47
			
	 ARTICLE 9
	  	 REPRESENTATIONS AND WARRANTIES
	  	48
			
	 Section 9.1
	  	 Existence, Power and Authority
	  	48
			
	 Section 9.2
	  	 Financial Condition
	  	48

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 9.3
	  	 Corporate and Similar Action; No Breach
	  	49
			
	 Section 9.4
	  	 Operation of Business
	  	49
			
	 Section 9.5
	  	 Litigation and Judgments
	  	49
			
	 Section 9.6
	  	 Rights in Properties; Liens
	  	49
			
	 Section 9.7
	  	 Enforceability
	  	50
			
	 Section 9.8
	  	 Approvals
	  	50
			
	 Section 9.9
	  	 Debt
	  	50
			
	 Section 9.10
	  	 Taxes
	  	50
			
	 Section 9.11
	  	 Margin Securities
	  	50
			
	 Section 9.12
	  	 ERISA
	  	50
			
	 Section 9.13
	  	 Disclosure
	  	51
			
	 Section 9.14
	  	 Subsidiaries; Capitalization
	  	51
			
	 Section 9.15
	  	 Material Agreements
	  	51
			
	 Section 9.16
	  	 Compliance with Laws
	  	52
			
	 Section 9.17
	  	 Investment Company Act
	  	52
			
	 Section 9.18
	  	 Public Utility Holding Company Act
	  	52
			
	 Section 9.19
	  	 Environmental Matters
	  	52
			
	 Section 9.20
	  	 Broker’s Fees
	  	53
			
	 Section 9.21
	  	 Employee Matters
	  	53
			
	 Section 9.22
	  	 Solvency
	  	53
			
	 ARTICLE 10
	  	 AFFIRMATIVE COVENANTS
	  	53
			
	 Section 10.1
	  	 Reporting Requirements
	  	54
			
	 Section 10.2
	  	 Maintenance of Existence; Conduct of Business
	  	57
			
	 Section 10.3
	  	 Maintenance of Properties
	  	57
			
	 Section 10.4
	  	 Taxes and Claims
	  	57
			
	 Section 10.5
	  	 Insurance
	  	57
			
	 Section 10.6
	  	 Inspection Rights
	  	57
			
	 Section 10.7
	  	 Keeping Books and Records
	  	57
			
	 Section 10.8
	  	 Compliance with Laws
	  	58
			
	 Section 10.9
	  	 Compliance with Agreements
	  	58
			
	 Section 10.10
	  	 Further Assurances
	  	58

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 10.11
	  	 ERISA
	  	58
			
	 ARTICLE 11
	  	 NEGATIVE COVENANTS
	  	58
			
	 Section 11.1
	  	 Debt
	  	58
			
	 Section 11.2
	  	 Limitation on Liens and Restrictions on Subsidiaries
	  	60
			
	 Section 11.3
	  	 Mergers, Etc
	  	61
			
	 Section 11.4
	  	 Restricted Payments
	  	62
			
	 Section 11.5
	  	 Investments
	  	62
			
	 Section 11.6
	  	 Limitation on Issuance of Capital Stock of Subsidiaries
	  	63
			
	 Section 11.7
	  	 Transactions with Affiliates
	  	64
			
	 Section 11.8
	  	 Disposition of Assets
	  	64
			
	 Section 11.9
	  	 Lines of Business
	  	64
			
	 Section 11.10
	  	 Limitations on Restrictions Affecting the Borrower and its Subsidiaries
	  	64
			
	 Section 11.11
	  	 Environmental Protection
	  	65
			
	 Section 11.12
	  	 ERISA
	  	65
			
	 ARTICLE 12
	  	 FINANCIAL COVENANTS
	  	66
			
	 Section 12.1
	  	 Leverage Ratio
	  	66
			
	 Section 12.2
	  	 Fixed Charge Coverage Ratio
	  	66
			
	 ARTICLE 13
	  	 DEFAULT
	  	66
			
	 Section 13.1
	  	 Events of Default
	  	66
			
	 Section 13.2
	  	 Remedies
	  	68
			
	 Section 13.3
	  	 Performance by the Agent
	  	69
			
	 Section 13.4
	  	 Set-off
	  	69
			
	 Section 13.5
	  	 Continuance of Default
	  	70
			
	 ARTICLE 14
	  	 THE AGENT
	  	70
			
	 Section 14.1
	  	 Appointment and Authority
	  	70
			
	 Section 14.2
	  	 Rights as a Lender
	  	70
			
	 Section 14.3
	  	 Exculpatory Provisions
	  	70
			
	 Section 14.4
	  	 Reliance by Agent
	  	71
			
	 Section 14.5
	  	 Delegation of Duties
	  	71
			
	 Section 14.6
	  	 Resignation of Agent
	  	72

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 14.7
	  	 Non-Reliance on Agent and Other Lenders
	  	72
			
	 Section 14.8
	  	 Agent May File Proofs of Claim
	  	73
			
	 Section 14.9
	  	 Guaranty Matters
	  	73
			
	 Section 14.10
	  	 Co-Agents; Lead Managers
	  	73
			
	 ARTICLE 15
	  	 MISCELLANEOUS
	  	74
			
	 Section 15.1
	  	 Attorney Costs, Expenses and Documentary Taxes
	  	74
			
	 Section 15.2
	  	 Indemnification; Damage Waiver
	  	74
			
	 Section 15.3
	  	 No Duty
	  	76
			
	 Section 15.4
	  	 No Fiduciary Relationship
	  	76
			
	 Section 15.5
	  	 Equitable Relief
	  	76
			
	 Section 15.6
	  	 No Waiver; Cumulative Remedies
	  	76
			
	 Section 15.7
	  	 Successors and Assigns
	  	76
			
	 Section 15.8
	  	 Survival
	  	79
			
	 Section 15.9
	  	 Entire Agreement
	  	80
			
	 Section 15.10
	  	 Amendments and Waivers
	  	80
			
	 Section 15.11
	  	 Maximum Interest Rate
	  	81
			
	 Section 15.12
	  	 Notices; Effectiveness; Electronic Communication
	  	81
			
	 Section 15.13
	  	 Governing Law; Venue; Service of Process
	  	83
			
	 Section 15.14
	  	 Counterparts
	  	84
			
	 Section 15.15
	  	 Severability
	  	84
			
	 Section 15.16
	  	 Headings
	  	84
			
	 Section 15.17
	  	 Construction
	  	84
			
	 Section 15.18
	  	 Independence of Covenants
	  	84
			
	 Section 15.19
	  	 Waiver of Jury Trial
	  	84
			
	 Section 15.20
	  	 Confidentiality
	  	85
			
	 Section 15.21
	  	 Foreign Lenders
	  	86
			
	 Section 15.22
	  	 Amendment and Restatement
	  	87
			
	 Section 15.23
	  	 USA PATRIOT Act Notice
	  	87

  

 -v- 

  
 INDEX TO EXHIBITS 

 

			
	EXHIBIT A	  	Form of Revolving Note
	EXHIBIT B	  	Form of Swingline Note
	EXHIBIT C	  	Form of Assignment and Acceptance
	EXHIBIT D	  	Form of Compliance Certificate
	EXHIBIT E	  	Form of Subsidiary Guaranty
	EXHIBIT F	  	Form of Notice of Borrowings, Conversions, Continuations or Prepayments
	EXHIBIT G	  	Form of Joinder Agreement
	EXHIBIT H	  	Form of Acknowledgment of Intercreditor Agreement
	
	INDEX TO SCHEDULES
		
	Schedule 1	  	Existing Letters of Credit
	Schedule 15.7	  	Processing and Recordation Fees
	Schedule 15.12	  	Addresses for Notices

  

 -vi- 

 THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
  
 THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Agreement”), dated as of February 22, 2005, is among WILLIAMS-SONOMA, INC., a corporation duly organized and validly existing under the laws of the State of California (the “Borrower”), each of the banks or other
lending institutions which is (or which may from time to time become) a party hereto or any successor or assignee thereof pursuant to Section 15.7(b) (individually, a “Lender” and, collectively, the
“Lenders”), and BANK OF AMERICA, N.A., a national banking association, as administrative agent for the Lenders (in its capacity as administrative agent, together with its successors in such capacity, the “Agent”)
and as L/C Issuer. 
  
 R E C I T A L S: 
  
 A.    The Borrower has requested that the Lenders extend
a $300,000,000 unsecured credit facility to the Borrower in the form of a revolving credit facility to refinance existing debt of the Borrower, finance capital expenditures, provide working capital to the Borrower and its Subsidiaries and for other
general corporate purposes. 
  
 B.    The
Lenders are willing to extend such credit to the Borrower upon the terms and conditions set forth in this Agreement and the other Loan Documents. 
  
 NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows: 
  
 ARTICLE 1 
  
 Definitions 
  
 Section 1.1    Definitions.  Wherever used in this Agreement, the following terms have the following meanings:

  
 “Acknowledgment of Intercreditor Agreement”
means an agreement, in substantially the form of Exhibit H, entered into by a Lender pursuant to Section 8.1(a)(vii) or an Eligible Assignee pursuant to Section 15.7(b). 
  
 “Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied by the Agent. 
  
 “Affected Balances” has the meaning specified in Section 6.4. 
  
 “Affected Libor/IBOR Balances” has the meaning specified in Section 6.5. 
  
 “Affiliate” means, with respect to any Person, any other Person: (a) that directly or indirectly, through one or more intermediaries,
controls or is controlled by, or is under common control with, such Person; (b) that directly or indirectly beneficially owns or holds ten percent (10.0%) or more of any class of Capital Stock of such Person; or (c) ten percent (10.0%) or more of
the Capital Stock of which is directly or indirectly beneficially owned or held by the Person in 

  

 
question. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause direction of
the management and policies of a Person, whether through the ownership of Capital Stock, by contract or otherwise; provided, however, in no event shall the Agent or any Lender be deemed an Affiliate of the Borrower or any Subsidiary of
the Borrower. 
  
 “Agent” has the meaning
specified in the introductory paragraph of this Agreement. 
  
 “Agent-Related Persons” means the Agent (including any successor administrative agent), each of the Agent’s Affiliates (including, in the case of Bank of America in its capacity as the Agent, the Arranger) and the
officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 
  
 “Agreement” has the meaning specified in the introductory paragraph of this Agreement, as the same may be amended, restated or otherwise modified. 
  
 “Applicable Lending Office” means, for each Lender and for
each Type of Balance, the “Lending Office” of such Lender (or of an Affiliate of such Lender) designated for such Type of Balance in such Lender’s Administrative Questionnaire (or, with respect to a Lender that becomes a party to this
Agreement pursuant to an assignment made in accordance with Section 15.7(b), in the Assignment and Acceptance executed by it) or such other office of such Lender (or an Affiliate of such Lender) as such Lender may from time to time specify to
the Agent and the Borrower by written notice in accordance with the terms hereof as the office by which advances of such Type of Balance are to be made and maintained. 
  
 “Applicable Rate” has the meaning specified in Section 4.1. 
  
 “Approved Fund” means any Fund that is administered or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 “Arranger” means Banc of America Securities LLC, in its capacity as sole lead arranger and sole book manager. 
  
 “Assignee Group” means two or more Eligible Assignees that
are Affiliates of one another or two or more Approved Funds managed by the same investment advisor. 
  
 “Assignment and Acceptance” means an assignment and acceptance, in substantially the form of Exhibit C, entered into by a Lender
and an Eligible Assignee pursuant to Section 15.7(b) and accepted by the Borrower (if required) and the Agent. 
  
 “Attorney Costs” means and includes all reasonable fees and disbursements of any law firm or other external counsel and the allocated
cost of internal legal services and all disbursements of internal counsel. 
  
 “Balance” means any of the Base Rate Balance , a Libor Balance or an IBOR Balance. 
  
 “Bank of America” means Bank of America, N.A. and its successors and assigns. 
  

 2 

 “Bankruptcy Code” has the meaning specified in Section 13.1(e). 
  
 “Base Rate” means for any day a fluctuating rate per annum
equal to the higher of (a) the Federal Funds Rate plus one-half of one percent (0.50%) and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate.” Such rate is a rate
set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above or
below such announced rate. Any change in such rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change. 
  
 “Base Rate Balance” means the portion of the Loan that bears
interest at a rate based upon the Base Rate. 
  
 “Base
Rate Margin” has the meaning specified in Section 4.2. 
  
 “Borrower” has the meaning specified in the introductory paragraph of this Agreement. 
  
 “Borrower Materials” has the meaning specified in Section 10.1. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are
authorized to close under the laws of, or are in fact closed in, the state where the Agent is located and, if such day relates to any Libor Balance or IBOR Balance, means any such day on which dealings in Dollar deposits are conducted by and between
banks in the offshore Dollar interbank market. 
  
 “Capital Lease Obligations” means, as to any Person, the obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or personal Property, which
obligations are classified and accounted for as a capital lease on a balance sheet of such Person in accordance with GAAP. For purposes of this Agreement, the amount of such Capital Lease Obligations shall be the capitalized amount thereof,
determined in accordance with GAAP. 
  
 “Capital
Stock” means corporate stock and any and all shares, partnership interests, limited liability company interests, membership interests, equity interests, participations, rights, securities or other equivalent evidences (however designated)
of ownership or any options, warrants, voting trust certificates or other instruments evidencing an ownership interest or a right to acquire an ownership interest in a Person (however designated) issued by any entity (whether a corporation,
partnership, limited liability company or other type of entity), provided, that in no event shall the term “Capital Stock” include debt securities. 
  
 “Cash Collateralize” has the meaning specified in Section 3.7. 
  
 “Change of Control” means, with respect to any Person, an event or series of events by which: (a) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such Person or its Subsidiaries, or any Person acting in its capacity as
trustee, agent or other fiduciary, or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 

  

 3 

 
13d-5 under the Securities Exchange Act of 1934, except that a Person shall be deemed to have “beneficial ownership” of all securities that such
Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of fifty percent (50.0%) or more of the membership interests of such Person; or (b) during any period of
twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent governing body of such Person cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first
day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) preceding constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clause (i) and clause (ii) preceding constituting at the time of
such election or nomination at least a majority of that board or equivalent governing body. 
  
 “Closing Date” has the meaning specified in Section 8.1. 
  
 “Code” means the Internal Revenue Code of 1986. 
  

“Commercial Letter of Credit” means any Letter of Credit that is drawable upon presentation of a sight draft and other documents
evidencing the sale or shipment of goods purchased by the Borrower and its Subsidiaries in the ordinary course of business. 
  
 “Commitment” means, as to each Lender, the obligation of such Lender to (a) make advances of funds pursuant to Section 2.1 and (b)
purchase participations in L/C Obligations in an aggregate principal amount at any one time outstanding up to but not exceeding the amount set forth opposite the name of such Lender on the signature pages hereto (or if applicable, the most recent
Assignment and Acceptance executed by such Lender) under the heading “Commitment,” as the same may be reduced or terminated pursuant to Section 2.5 or Section 13.2. The aggregate amount of the Commitments as of the Closing
Date equals three hundred million Dollars ($300,000,000). 
  
 “Commitment Percentage” means, with respect to each Lender, the percentage equivalent (carried to nine (9) decimal places) of a fraction, the numerator of which is the aggregate amount of the Commitment of such Lender (or
if such Commitment has terminated or expired, the outstanding principal amount of the Revolving Loan of such Lender with respect thereto) and the denominator of which is the aggregate amount of the Commitments of all of the Lenders (or if such
Commitments have terminated or expired, the outstanding principal amount of the Revolving Loans of all of the Lenders with respect thereto). 
  
 “Compliance Certificate” means a certificate in substantially the form of Exhibit D, properly completed and executed by the chief
financial officer or Vice President, Finance of the Borrower. 
  
 “Continue,” “Continuation” and “Continued” shall refer to the continuation pursuant to Section 4.5, from one Interest Period to the next Interest Period, of a Libor Balance as a
Libor Balance or of an IBOR Balance as an IBOR Balance. 
  

 4 

 “Convert,” “Conversion” and “Converted” shall refer to
a conversion pursuant to Section 4.5 or Article 6 of (a) Balances of one Type under the Revolving Loan into Balances of the other Type under the Revolving Loan and (b) Balances of one Type under the Swingline Advances into Balances of
the other Type under the Swingline Advances. 
  
 “Debt” means, with respect to any Person at any time (without duplication): (a) all obligations of such Person for borrowed money; (b) all obligations of such Person evidenced by bonds, notes, debentures or other similar
instruments; (c) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable of such Person arising in the ordinary course of business that are not past due by more than ninety (90) days
or that are being contested in good faith by appropriate proceedings diligently pursued and for which adequate reserves have been established in accordance with GAAP; (d) all Capital Lease Obligations of such Person; (e) Guarantees by such Person of
indebtedness, liabilities or obligations of the kinds described in clauses (a), (b), (c), (d), (f), (g), (h), (i), (j), (k) and (l) of this definition; (f) all
indebtedness, liabilities and obligations of the types described in the foregoing clauses (a) through (e) secured by a Lien existing on Property owned by such Person, whether or not the indebtedness, liabilities and obligations secured
thereby have been assumed by such Person or are non-recourse to such Person; provided, however, that the amount of such Debt of any Person described in this clause (f) shall, for purposes of this Agreement, be deemed to be equal
to the lesser of (i) the aggregate unpaid amount of such Debt or (ii) the fair market value of the Property encumbered, as determined by the Agent in its discretion; (g) all reimbursement obligations of such Person (whether contingent or otherwise)
in respect of letters of credit, bankers’ acceptances, surety or other bonds and similar instruments; (h) all liabilities of such Person in respect of unfunded vested benefits under any Plan (excluding obligations to deliver stock in respect of
stock options or stock ownership plans); (i) all vested obligations of such Person for the payment of money under any earn-out, noncompete, consulting or similar arrangements providing for the deferred payment of the purchase price for any property
to the extent that any such obligations are, according to GAAP, reflected as a capitalized liability on a balance sheet of such Person; (j) all obligations of such Person to redeem or retire shares of Capital Stock of such Person; (k) all
indebtedness, liabilities and obligations of such Person under any Hedge Agreement; and (l) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing
product to which such Person is a party, where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an operating lease in accordance with GAAP. The Debt of any Person shall include the Debt of any
partnership or joint venture in which such Person is a general partner or a joint venturer, but only to the extent to which there is recourse to such Person for payment of such Debt. 
  
 “Default” means an Event of Default or the occurrence of an event or condition which with notice or lapse
of time or both would become an Event of Default. 
  
 “Default Rate” means, in respect of any principal of the Loan or any other amount payable by the Borrower under any Loan Document, a rate per annum equal to the sum of two percent (2.00%), plus the Applicable Rate
for the Base Rate Balance as in effect from time to time (provided that for amounts outstanding as Libor Balances or IBOR Balances, the “Default Rate” for such principal shall be two percent (2.00%), plus the Applicable Rate
for each Libor 

  

 5 

 
Balance or IBOR Balance, as applicable, for the remainder of the applicable Interest Period as provided in Section 4.1, and, thereafter, the rate
provided for above in this definition). 
  
 “Defaulting
Lender” means any Lender that (a) has failed to fund any portion of the Revolving Loan, participations in L/C Obligations or participations in Swingline Advances required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to the Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith
dispute or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 
  
 “Disclosure Letter” means the disclosure letter, dated as of the date hereof, delivered by the Borrower to the Agent for the benefit of
the Lenders, as amended or otherwise modified from time to time. 
  
 “Dollars” and “$” mean lawful money of the U.S. 
  
 “Domestic Subsidiary” means any Subsidiary of the Borrower that is organized under the laws of any political subdivision of the United States. 
  
 “EBITDAR” means, for any period, the total of the following
calculated for the Borrower, without duplication, on a consolidated basis for such period: (a) Net Income; plus (b) any provision for (or less any benefit from) income or franchise taxes to the extent included in the determination of Net
Income; plus (c) Interest Expense to the extent included in the determination of Net Income; plus (d) amortization and depreciation expense to the extent included in the determination of Net Income; plus (e) other non-cash,
non-recurring charges to the extent included in the determination of Net Income; minus (f) other non-recurring gains to the extent included in the determination of Net Income; plus (g) all lease and rent expense for any real Property
to the extent included in the determination of Net Income. 
  
 “Eligible Assignee” means: (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person) approved by (i) the Agent, the L/C Issuer and Bank of America (in its
capacity as lender of Swingline Advances), and (ii) unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing,
“Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
  
 “Environmental Laws” means any and all federal, state and local laws, regulations and requirements regulating health, safety or the
environment. 
  
 “Environmental Liabilities”
means, as to any Person, all indebtedness, liabilities, obligations, responsibilities, Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and
expenses of counsel, expert and consulting fees and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand, by any Person, whether based in contract, tort, implied or
express warranty, strict liability or criminal or civil statute, including any Environmental Law, Permit, order or agreement with any Governmental Authority or other Person, arising from environmental, health 

  

 6 

 
or safety conditions or the Release or threatened Release of a Hazardous Material into the environment. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974. 
  
 “ERISA Affiliate” means any corporation
or trade or business which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the Borrower or any Subsidiary of the Borrower or is under common control (within the meaning of Section 414(c)
of the Code) with the Borrower or any Subsidiary of the Borrower. 
  
 “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, rounded upward to the next 1/100th of 1%) in effect on such day, whether or not applicable to
any Lender, under regulations issued from time to time by the Board of Governors of the Federal Reserve System for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect
to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Libor Rate for each outstanding Libor Balance and the IBOR Rate for each outstanding IBOR Balance shall be adjusted automatically as of the effective date
of any change in the Eurodollar Reserve Percentage. The determination of the Eurodollar Reserve Percentage by the Agent with respect to the Libor Rate and by Bank of America with respect to the IBOR Rate shall be conclusive in the absence of
manifest error. 
  
 “Event of Default” has the
meaning specified in Section 13.1. 
  
 “Existing
Letters of Credit” means the letters of credit issued by Bank of America and listed on Schedule 1 hereto. 
  
 “Facility Fee Rate” has the meaning specified in Section 4.2. 
  
 “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
(a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, (b) 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 charged to Bank of America on such day on such transactions as determined by the Agent and (c) with respect to determination of the IBOR Rate as of any day
and for any Interest Period, the rate for Federal funds transactions of a duration of such Interest Period as determined in accordance with clause (a) and clause (b) preceding by Bank of America. 
  
 “Fee Letter” means the certain letter agreement dated as of
January 5, 2005 among the Borrower, the Arranger and Bank of America. 
  
 “Fiscal Period” means one of the three fiscal periods in a Fiscal Quarter each of which is approximately one calendar month in duration. There are twelve (12) Fiscal Periods in a Fiscal Year. 
  

 7 

 “Fiscal Quarters” means one of four thirteen (13) week or, if applicable, fourteen (14)
week quarters in a Fiscal Year, with the first of such quarters beginning on the first day of a Fiscal Year and ending on the Sunday of the thirteenth (or fourteenth, if applicable) week in such quarter. 
  
 “Fiscal Year” means the Borrower’s fiscal year for
financial accounting purposes beginning on the Monday following the Sunday nearest January 31 of each year and ending on the Sunday nearest January 31 of the following year. The current (as of the date hereof) Fiscal Year of the Borrower will end on
January 29, 2006. 
  
 “Fixed Charge Coverage
Ratio” means, for any period and determined on a consolidated basis for the Borrower and its Subsidiaries, the ratio of (a) EBITDAR for such period to (b) the sum of each of the following for such period (i) Interest Expense to the extent
included in the determination of Net Income plus (ii) lease and rent expense for any real Property. 
  
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident
for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Foreign Subsidiary” means each Subsidiary of the Borrower that is not a Domestic Subsidiary. 

 
 “Fund” mean any Person (other than a natural person) that
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 its business. 
  
 “Funded Debt” means, with respect to any Person (the “subject Person”) at any time (without
duplication): (a) Debt described in clauses (a), (b), (c), (d), (f) and (g) of the definition of Debt, other than Debt consisting of Undrawn Trade Letters of Credit, and (b) Guarantees by the subject Person
of Funded Debt (as described in clause (a) preceding) of any other Person. 
  
 “GAAP” means generally accepted accounting principles, applied on a “consistent basis” (as such phrase is interpreted in accordance with Section 1.3), as set forth in Opinions of the
Accounting Principles Board of the American Institute of Certified Public Accountants and/or in statements of the Financial Accounting Standards Board and/or their respective successors and which are applicable in the circumstances as of the date in
question. 
  
 “Governmental Authority” means any
nation or government, any federal, state, county, municipal, parish, provincial, township or other political subdivision thereof, and any department, commission, board, court, agency or other instrumentality or entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Guarantee” means any indebtedness, liability or obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt of any other Person or indemnifying such other Person
for any Debt and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or 

  

 8 

 
advance or supply funds for the purchase or payment of) such Debt (whether arising by virtue of partnership arrangements, by agreement to keep-well, to
purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise) or (b) entered into for the purpose of assuring in any other manner to the obligee of such Debt the payment thereof or to
protect the obligee against loss in respect thereof (in whole or in part); provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be
deemed to be equal to the lesser of (y) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or (z) the maximum amount for which such guaranteeing Person may be liable pursuant to
the terms of the instrument embodying such Guarantee, unless such primary obligation and the maximum amount for which such guaranteeing Person may be liable are not stated or determinable, in which case the amount of such Guarantee shall be such
guaranteeing Person’s maximum reasonably anticipated liability in respect thereof as mutually determined by the Borrower and the Agent in good faith. The term “Guarantee” used as a verb has a corresponding meaning. 
  
 “Guarantor” means any Person who is or becomes a party to
any Guaranty of the Obligations or any part thereof, including each Domestic Subsidiary of the Borrower who is a party to the Subsidiary Guaranty pursuant to the terms of Article 7. 
  
 “Guaranty” means the Subsidiary Guaranty or any other
guaranty agreement executed and delivered by a Person in favor of the Agent, for the benefit of the Agent and the Lenders, and any and all amendments, restatements or other modifications thereof, and “Guaranties” means all of such
agreements, collectively. 
  
 “Hazardous
Material” means any substance, product, waste, pollutant, chemical, contaminant, insecticide, pesticide, constituent or material which is or becomes listed, regulated or addressed under any Environmental Law as a result of its hazardous or
toxic nature. 
  
 “Hedge Agreement” means any
agreement, device or arrangement designed to protect a Person from the fluctuations of interest rates, exchange rates or forward rates applicable to its assets, liabilities or exchange transactions, including, but not limited to, dollar-denominated
or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap, swap or collar protection agreements and forward rate currency or interest rate options, as the same may be amended or modified and in
effect from time to time, and any cancellation, buy-back, reversal, termination or assignment of any of the foregoing. 
  
 “IBOR Balance” means any portion of the Swingline Advances that bears interest at a rate based upon the IBOR Rate. 
  
 “IBOR Base Rate” means the interest rate at which Bank of
America’s Grand Cayman Banking Center, Grand Cayman, British West Indies, would offer Dollar deposits for the applicable Interest Period to other major banks in the offshore Dollar interbank market. 
  
 “IBOR Interest Period” means, with respect to any IBOR
Balance, each period commencing on the date such Balance is established or Continued or Converted from the Base Rate Balance under the Swingline Advances to an IBOR Balance or the last day of the next 

  

 9 

 
preceding Interest Period with respect to such IBOR Balance, and ending one, two, three, four, five, six or seven days thereafter, as the Borrower may select
as provided in Section 4.5 or Section 5.3. Notwithstanding the foregoing: (a) each IBOR Interest Period shall end on a Business Day; (b) no Interest Period may extend beyond the Maturity Date; and (c) no more than three (3) IBOR
Interest Periods shall be in effect at the same time. 
  
 “IBOR Rate” means, with respect to any IBOR Balance for the relevant Interest Period, a rate per annum determined by Bank of America pursuant to the following formula: 
  

					
	IBOR Rate =	 	 IBOR Base Rate

	  	 
	 	1.00 - Eurodollar Reserve Percentage	  	 

  
 “IBOR Rate
Margin” has the meaning specified in Section 4.2. 
  
 “Indemnified Liabilities” has the meaning specified in Section 15.2. 
  
 “Indemnitees” has the meaning specified in Section 15.2. 
  
 “Intellectual Property” means any U.S. or foreign patents, patent applications, trademarks, trade names,
service marks, brand names, logos and other trade designations (including unregistered names and marks), trademark and service mark registrations and applications, copyrights and copyright registrations and applications, inventions, invention
disclosures, protected formulae, formulations, processes, methods, trade secrets, computer software, computer programs and source codes, manufacturing research and similar technical information, engineering know-how, customer and supplier
information, assembly and test data drawings or royalty rights. 
  
 “Interest Expense” means, for any period and for any Person, the sum of (a) interest expense of such Person calculated without duplication on a consolidated basis for such period in accordance with GAAP, plus (b)
interest expenses paid under Hedge Agreements during such period minus (c) interest payments received under Hedge Agreements during such period. 
  
 “Interest Period” means a Libor Interest Period or an IBOR Interest Period, as applicable. 
  
 “Investments” has the meaning specified in Section
11.5. 
  
 “ISP” means, with respect to any
Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance). 
  
 “Joinder Agreement” means an agreement to be executed by a
Person pursuant to the terms of Section 7.2, in substantially the form of Exhibit G. 
  
 “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with
its Commitment Percentage. 
  

 10 

 “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a borrowing under the Loan. 
  
 “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the
increase of the amount thereof. 
  
 “L/C Issuer”
means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder. 
  
 “L/C Obligations” means, as at any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit plus
the aggregate of all Unreimbursed Amounts, including all outstanding L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with
Section 1.5. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of
Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. 
  
 “Lender” has the meaning specified in the introductory paragraph of this Agreement and, as the context requires, includes the L/C Issuer.

  
 “Letter of Credit” means any letter of credit
issued hereunder and shall include the Existing Letters of Credit. A Letter of Credit may be a Standby Letter of Credit or a Commercial Letter of Credit. 
  
 “Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in such form as
shall at any time be in use by the L/C Issuer. 
  
 “Leverage Ratio” means, as of any period end and determined on a consolidated basis for the Borrower and its Subsidiaries, the ratio of (a) Total Adjusted Funded Debt to (b) EBITDAR. 
  
 “Libor Balance” means any portion of the Revolving Loan that
bears interest at a rate based upon the Libor Rate. 
  
 “Libor Base Rate” means, with respect to any Libor Interest Period, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the Agent from time to time) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by
the Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Libor Balance being advanced, Continued or Converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two (2) Business Days prior to the
commencement of such Interest Period. 

  

 11 

 
The determination of the Libor Base Rate by the Agent shall be conclusive in the absence of manifest error. 
  
 “Libor Interest Period” means with respect to any Libor
Balance, each period commencing on the date such Balance is established or Continued or Converted from the Base Rate Balance to a Libor Balance, or the last day of the next preceding Libor Interest Period with respect to such Libor Balance, and
ending one week thereafter or on the numerically corresponding day in the first, second, third or sixth calendar month thereafter, as the Borrower may select as provided in Section 4.5 or Section 5.3, except that each such Libor
Interest Period which commences on the last Business Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month. Notwithstanding the foregoing: (a) each Libor Interest Period which would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day (or if such succeeding Business Day falls in the
next succeeding calendar month, on the next preceding Business Day); (b) any Libor Interest Period which would otherwise extend beyond the Maturity Date shall end on the Maturity Date; (c) no more than ten (10) Libor Interest Periods shall be in
effect at the same time; and (d) no Libor Interest Period for any Libor Balance shall have a duration of less than one (1) week and, if the Libor Interest Period would otherwise be a shorter period, the related Libor Balance shall not be available
hereunder. 
  
 “Libor Rate” means, with respect
to any Libor Balance for the relevant Interest Period, a rate per annum determined by the Agent pursuant to the following formula: 
  

					
	Libor Rate    =    	  	Libor Base Rate	  	 
	 	  	1.00 - Eurodollar Reserve Percentage	  	 

  
 “Libor Rate
Margin” has the meaning specified in Section 4.2. 
  
 “Lien” means any lien, mortgage, security interest, tax lien, pledge, charge, hypothecation, assignment, preference, priority or other encumbrance of any kind or nature whatsoever (including any conditional sale or title
retention agreement), whether arising by contract, operation of law or otherwise. 
  
 “Loan” means the Revolving Loan and the Swingline Advances. 
  
 “Loan Documents” means this Agreement, the Notes, the Subsidiary Guaranty, the Disclosure Letter, any Joinder Agreement and all other
agreements, documents and instruments now or hereafter executed and/or delivered pursuant to or in connection with any of the foregoing, and any and all amendments, modifications, supplements, renewals, extensions or restatements thereof (excluding
any commitment letter, term sheet or other agreement entered into prior to the Closing Date). 
  
 “Margin Adjustment Date” has the meaning specified in Section 4.2. 
  

 12 

 “Material Adverse Effect” means any material adverse effect, or the occurrence of any
event or the existence of any condition that could reasonably be expected to have a material adverse effect, on (a) the business or financial condition, prospects, performance or operations of the Borrower individually or the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower individually or the Borrower and its Subsidiaries taken as a whole to pay and perform the obligations for which it or they, as applicable, are responsible when due or (c) the validity or
enforceability of (i) any of the Loan Documents or (ii) the rights and remedies of the Agent or the Lenders under any of the Loan Documents. 
  
 “Maturity Date” means the day which is the fifth anniversary of the Closing Date. 
  
 “Maximum Rate” has the meaning specified in Section
15.11. 
  
 “Multiemployer Plan” means a
multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been made by the Borrower or any ERISA Affiliate at any time within the six (6) year period preceding the date hereof or hereafter and which is covered by Title
IV of ERISA. 
  
 “Net Income” means, for any
period and any Person, such Person’s consolidated net income (or loss) determined in accordance with GAAP, but excluding the income of any other Person (other than Subsidiaries) in which such Person or any Subsidiary of such Person has an
ownership interest, unless received by such Person or a Subsidiary of such Person in a cash distribution. 
  
 “Note Agreement” means that certain Note Agreement Re: $40,000,000 7.20% Senior Notes Due August 8, 2005, dated as of August 1, 1995,
entered into by the Borrower and the “Purchasers” party thereto and each other agreement, document or instrument entered into or delivered in connection therewith, as such agreements, documents and instruments may be amended, restated or
otherwise modified from time to time. 
  
 “Notes”
means the Revolving Notes and the Swingline Note. 
  
 “Obligations” means any and all (a) obligations, indebtedness and liabilities of the Borrower to the Agent and the Lenders, or any of them, arising pursuant to this Agreement or any other Loan Document or otherwise with
respect to the Loan or any Letter of Credit, whether now existing or hereafter arising, whether direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several or joint and several, including the obligation of the Borrower to repay the
Loan, interest on the Loan and all fees, costs and expenses (including Attorney Costs) provided for in the Loan Documents and (b) indebtedness, liabilities and obligations of the Borrower under any Hedge Agreement that the Borrower may enter into
with the Agent, any Lender or any of their respective Affiliates if and to the extent that such Hedge Agreement is permitted in accordance with Section 11.1(i). 
  
 “Offering Memorandum” means the Confidential Offering Memorandum dated January 2005, prepared and
distributed by the Arranger with respect to the syndication of the Commitments and the Loan evidenced by this Agreement. 
  

 13 

 “Original Agreement” means that certain Second Amended and Restated Credit Agreement,
dated as of October 22, 2002, among the Borrower, Bank of America, as agent, and the “Lenders” party thereto which originally provided for credit facilities in an aggregate principal amount of $200,000,000. 
  
 “Other Taxes” has the meaning specified in Section
6.6(b). 
  
 “Outstanding Amount” means (i)
with respect to the Loan on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of the Loan, as the case may be, occurring on such date and (ii) with respect to L/C
Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other change in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursement of any outstanding unpaid drawing under any Letter of Credit or any reduction in the maximum amount available for drawing under any Letter of Credit taking effect on such date. 
  
 “Participant” has the meaning specified in Section
15.7(d). 
  
 “PBGC” means the Pension Benefit
Guaranty Corporation or any entity succeeding to all or any of its functions under ERISA. 
  
 “Permit” means any permit, certificate, approval order, license or other authorization. 
  
 “Permitted Acquisition” means any acquisition of the Capital Stock of a Person or any acquisition of Property which constitutes a
significant or material portion of an existing business of a Person, in each case, in a transaction that satisfies each of the following requirements: 
  
 (a)    No Default; Certificate of Compliance.  Both before and after giving effect to such
acquisition and any advance of the Loan requested to be made in connection therewith, no Default exists or will exist or would result therefrom, and the Borrower shall be in pro forma compliance with Sections 12.1 and 12.2 as of the
date of and after giving effect to such acquisition; 
  
 (b)    Consideration.  The total consideration (whether classified as purchase price, noncompete payments or otherwise, and including the amount of all Debt incurred, assumed or acquired by the Borrower
and its Subsidiaries in connection with such acquisition, and without regard to whether such amount is paid at closing or paid over time and the Dollar value of all other assets, including Capital Stock of the Borrower, to be transferred by the
purchaser in connection with such acquisition to the seller or sellers, all valued in accordance with the applicable agreement entered into between the Target and/or the seller and the purchaser) to be paid by the Borrower and its Subsidiaries in
connection with all such acquisitions during any Fiscal Year shall not exceed thirty percent (30.0%) of the Borrower’s Tangible Net Worth as of the end of the immediately preceding Fiscal Year; 
  
 (c)    Diligence.  The
Borrower has completed due diligence to its satisfaction on the Target or the Property to be acquired and has provided the Agent and the Lenders with copies of all agreements and information (including due diligence materials) entered 

  

 14 

 
into or received by the Borrower or requested by the Agent or any Lender, as the Required Lenders may reasonably request; 
  
 (d)    Structure.  If
the proposed acquisition is an acquisition of the Capital Stock of a Target, the acquisition will be structured so that the Target will become a Wholly-Owned Subsidiary; if the proposed acquisition is an acquisition of assets, the acquisition will
be structured so that the Borrower or a Wholly-Owned Subsidiary shall acquire such assets; and, if the proposed acquisition is the acquisition of a Person, the Board of Directors of such Person has approved such acquisition; 
  
 (e)    Material Adverse
Effect.  Neither the Borrower nor any of its Subsidiaries shall, as a result of or in connection with any such acquisition, assume or incur any contingent liabilities (whether relating to environmental, tax, litigation or other
matters) that could reasonably be expected, as of the date of such acquisition, to result in the existence or occurrence of a Material Adverse Effect; and 
  
 (f)    Lines of Business.  The Target shall be engaged in substantially the same line or lines of
business, or a business reasonably related or complementary thereto, as the Borrower and its Subsidiaries. 
  
 “Permitted Liens” means the Liens permitted by Section 11.2. 
  
 “Permitted Sale-Leaseback” means a transaction designed to reduce state tax liability whereby the Borrower
or one of its Subsidiaries sells Property to another Person which finances the purchase price of such Property by selling notes to, or otherwise borrowing from, the Borrower or one of its Subsidiaries and leases such Property to the seller in an
operating lease transaction. 
  
 “Person” means
any individual, corporation, limited liability company, business trust, association, company, partnership, joint venture, Governmental Authority or other entity. 
  
 “Plan” means any employee benefit plan established or maintained by the Borrower or any ERISA Affiliate and
which is subject to Title IV of ERISA. 
  
 “Platform” has the meaning specified in Section 10.1. 
  
 “Principal Office” – see Schedule 15.12. 
  
 “Prohibited Transaction” means any transaction described in Section 406 or 407 of ERISA or Section 4975(c)(1) of the Code for which no
statutory or administrative exemption applies. 
  
 “Property” means, for any Person, property or assets of all kinds, real, personal or mixed, tangible or intangible (including all rights relating thereto), whether owned or acquired on or after the Closing Date. 

 
 “Quarterly Payment Date” means the last Business Day of
each March, June, September and December of each year, the first of which shall be March 31, 2005. 
  

 15 

 “Register” has the meaning specified in Section 15.7(c). 
  
 “Regulation D” means Regulation D of the Board of Governors
of the Federal Reserve System as the same may be amended, modified or supplemented from time to time or any successor regulation therefor. 
  
 “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as the same may be amended, modified or
supplemented from time to time or any successor regulation therefor. 
  
 “Regulatory Change” means, with respect to any Lender, the occurrence after the date of this Agreement of any of the following: (a) any change (other than with respect to taxes excluded by the first sentence of Section
6.6(a)) in U.S. federal, state or foreign laws, rules, regulations or treaties (including Regulation D); (b) the adoption or making of any guideline, directive or request (other than with respect to taxes excluded by the first sentence of
Section 6.6(a)) applying to a class of lenders including such Lender of or under any U.S. federal or state or any foreign laws or regulations (whether or not having the force of law) by any Governmental Authority or monetary authority charged
with the interpretation or administration thereof; or (c) any change in the administration, interpretation or application of any law, rule, regulation or treaty (whether or not having the force of law) by any Governmental Authority or monetary
authority charged with the interpretation or administration thereof. 
  
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates. 
  
 “Release” means, as to any Person, any release, spill,
emission, leaking, pumping, injection, deposit, disposal, disbursement, leaching or migration of Hazardous Materials into the indoor or outdoor environment or into or from Property owned or leased by such Person, including the migration of Hazardous
Materials through or in the air, soil, surface water, ground water or property, in violation of Environmental Laws. 
  
 “Remedial Action” means all actions required under applicable Environmental Laws to (a) clean up, remove, treat or otherwise address
Hazardous Materials in the indoor or outdoor environment, (b) prevent the Release or threat of Release or minimize the further Release of Hazardous Materials or (c) perform pre-remedial studies and investigations and post-remedial monitoring and
care; provided that “Remedial Action” shall not include such actions taken in the normal course of business and in material compliance with Environmental Laws. 
  
 “Reportable Event” means any of the events set forth in Section 4043 of ERISA for which the 30-day notice
requirement has not been waived by the PBGC. 
  
 “Required
Lenders” means any combination of Lenders having more than fifty percent (50.0%) of the sum of the Commitments or, if the Commitments have terminated, the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations being deemed “held” by such Lender for purposes of this definition). 
  

 16 

 “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of the Borrower. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or
other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower. 
  
 “Revolving Loan” means, as to any Lender, the advances made by such Lender pursuant to Section 2.1 (other than Swingline
Advances), and, as to all Lenders, all such advances made or held by the Lenders pursuant to Section 2.1. 
  
 “Revolving Notes” means the promissory notes provided for by Section 2.2 (other than the Swingline Note) and all amendments,
restatements or other modifications thereof. 
  
 “Securities” means any stock, shares, options, warrants, voting trust certificates or other instruments evidencing an ownership interest or a right to acquire an ownership interest in a Person or any bonds, debentures,
notes or other evidences of indebtedness for borrowed money, secured or unsecured. 
  
 “Solvent” means, with respect to any Person as of the date of any determination, that on such date (a) the fair value of the Property of such Person (both at fair valuation and at present fair
saleable value) is greater than the total liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the probable liability
of such Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of
business, (d) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature and (e) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving due consideration to current and anticipated future capital requirements and current
and anticipated future business conduct and the prevailing practice in the industry in which such Person is engaged. In computing the amount of contingent liabilities at any time, such liabilities shall be computed at the amount which, in light of
the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Standby Letter of Credit” means any Letter of Credit that is not a Commercial Letter of Credit. 
  
 “Subsidiary” means, (a) when used to determine the
relationship of a Person (the “parent”) to another Person, a Person (the “subsidiary”) of which an aggregate of more than fifty percent (50.0%) or more of the Capital Stock is owned of record or beneficially by the parent, or by
one or more Subsidiaries of the parent, or by the parent and one or more Subsidiaries of the parent, (i) if the holders of such Capital Stock (A) are ordinarily, in the absence of contingencies, entitled to vote for the election of a majority of the
directors (or other individuals performing similar functions) of the subsidiary, even though the right so to vote has been suspended by the 

  

 17 

 
happening of such a contingency or (B) are entitled, as such holders, to vote for the election of a majority of the directors (or individuals performing
similar functions) of the subsidiary, whether or not the right so to vote exists by reason of the happening of a contingency or (ii) in the case of Capital Stock which is not issued by a corporation, if such ownership interests constitute a majority
voting interest and (b) when used with respect to a Plan, ERISA or a provision of the Code pertaining to employee benefit plans, means, with respect to the parent, any corporation, trade or business (whether or not incorporated) which is under
common control with the parent and is treated as a single employer with the parent under Section 414(b) or Section 414(c) of the Code and the regulations thereunder. 
  
 “Subsidiary Guarantor” means a Domestic Subsidiary of the Borrower which is a Guarantor hereunder.

  
 “Subsidiary Guaranty” means a guaranty
agreement executed and delivered by a Subsidiary of the Borrower in favor of the Agent, for the benefit of the Agent and the Lenders, in substantially the form of Exhibit E, as such guaranty agreement may be amended, restated or otherwise
modified from time to time. 
  
 “Swingline
Advance” has the meaning specified in Section 2.1. 
  
 “Swingline Note” means the swingline promissory note provided for by Section 2.2 and all amendments, restatements or other modifications thereof. 
  
 “Tangible Net Worth” means the Borrower’s (a) consolidated shareholders’ equity (including
Capital Stock, additional paid-in capital and retained earnings) minus (b) all consolidated intangible assets, each as determined in accordance with GAAP. 
  
 “Target” means the Person who is to be acquired or whose assets are to be acquired by the Borrower or a
Wholly-Owned Subsidiary in connection with a Permitted Acquisition. 
  
 “Taxes” has the meaning specified in Section 6.6. 
  
 “Termination Event” means (a) a Reportable Event, (b) the filing of a notice of intent to terminate a Plan or the treatment of a Plan amendment as a termination under Section 4041 of ERISA or (c) the
institution of proceedings to terminate a Plan by the PBGC under Section 4042 of ERISA or the appointment of a trustee to administer any Plan. 
  
 “Total Adjusted Funded Debt” means, as of any date of determination, with respect to the Borrower and its Subsidiaries, (a) the average
outstanding principal balance of all Funded Debt of such Persons as of the end of each of the immediately preceding twelve (12) Fiscal Periods, plus (b) without duplication, all lease and rent expense for any real Property for the preceding
four (4) Fiscal Quarters multiplied by eight (8). 
  
 “Total Debt to Capitalization Ratio” means, as of any date of determination, with respect to the Borrower and its Subsidiaries, that ratio of (a) all Debt of the Borrower and its Subsidiaries at such time to (b) the sum at
such time of (i) the Borrower’s shareholders’ equity (including Capital Stock, additional paid-in capital and retained earnings), as determined in accordance with GAAP, plus (ii) all Debt of the Borrower and its Subsidiaries. 

 

 18 

 “Total Outstandings” means the aggregate Outstanding Amount of the Loan and all L/C
Obligations. 
  
 “Type” means any type of Balance
(i.e., a Base Rate Balance, a Libor Balance or an IBOR Balance). 
  
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of California. 
  
 “Undrawn Trade Letter of Credit” means any outstanding commercial or documentary letter of credit issued for the account of the Borrower
or any Subsidiary of the Borrower under which (a) a drawing for payment has not been made by the beneficiary, (b) a drawing for payment has been made by the beneficiary and was timely paid by the Borrower or such Subsidiary in accordance with the
terms thereof and a balance remains undrawn pursuant to the terms thereof or (c) a drawing has been made and remains unpaid by the Borrower or such Subsidiary and such drawing has been outstanding for a period not in excess of three (3) Business
Days. 
  
 “Unfunded Vested Accrued Benefits”
means, with respect to any Plan at any time, the amount (if any) by which (a) the present value of all vested nonforfeitable benefits under such Plan exceeds (b) the fair market value of all Plan assets allocable to such benefits, all determined as
of the then most recent valuation date for such Plan. 
  
 “Unreimbursed Amount” has the meaning set forth in Section 3.3(a). 
  
 “U.S.” means the United States of America. 
  
 “Utilization Fee Rate” has the meaning specified in Section 4.2. 
  
 “Voting Stock” means Capital Stock of a Person having by the terms thereof ordinary voting power to elect a
majority of the board of directors (or similar governing body) of such Person (irrespective of whether or not at the time Capital Stock of any other class or classes of such Person shall have or might have voting power by reason of the happening of
any contingency). 
  
 “Wholly-Owned Subsidiary”
means any Subsidiary of the Borrower that is owned 100% by the Borrower and/or a Subsidiary of the Borrower. 
  
 Section 1.2    Other Interpretive Provisions. 
  
 (a)    The meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms. 
  
 (b)    (i)    The words “hereof”, “herein”, “hereunder” and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any
particular provision of this Agreement. Unless otherwise specified, all Article, Exhibit, Section and Schedule references pertain to Articles, Exhibits, Sections and Schedules of this Agreement. 
  

 19 

 (ii)    The term “including” is not limiting and means
“including without limitation.” 
  
 (iii)    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.” 
  
 (c)    Unless otherwise expressly provided herein, (i) references to agreements (including this Agreement) and other
contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting the statute or regulation. 
  
 (d)    This Agreement and other Loan Documents may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are
cumulative and shall each be performed in accordance with their terms. Unless otherwise expressly provided, any reference to any action of the Agent or any Lender by way of consent, approval or waiver shall be deemed modified by the phrase “in
its/their sole discretion.” 
  
 (e)    Terms used herein that are defined in the UCC, unless otherwise defined herein, shall have the meanings specified in the UCC. 
  
 Section 1.3    Accounting Terms and Determinations.  Except as otherwise expressly
provided herein, all accounting terms used herein shall be interpreted, and all financial statements and certificates and reports as to financial matters required to be delivered to the Agent and the Lenders hereunder shall be prepared, in
accordance with GAAP on a “consistent basis” with those used in the preparation of the financial statements referred to in Section 9.2, as adjusted as appropriate to account for the SEC staff interpretation referred to in item 1 of
Schedule 9.2 of the Disclosure Letter. All calculations made for the purposes of determining compliance with the provisions of this Agreement shall be made by application of GAAP on a “consistent basis” with those used in the
preparation of the financial statements referred to in Section 9.2. Accounting principles are applied on a “consistent basis” when the accounting principles applied in a current period are comparable in all material respects to
those accounting principles applied in a preceding period. Changes in the application of accounting principles which do not have a material impact on calculating the financial covenants herein shall be deemed comparable in all material respects to
accounting principles applied in a preceding period. To enable the ready and consistent determination of compliance by the Borrower with its obligations under this Agreement, the Borrower will not, nor will it permit any of its Subsidiaries to,
change the manner in which either the last day of its Fiscal Year or the last day of each of the first three Fiscal Quarters of its Fiscal Year is determined without the prior written consent of the Required Lenders. If at any time any change in
GAAP would affect the computation of any financial ratio or requirement set forth in this Agreement, and either the Borrower or the Required Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend
such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of 

  

 20 

 
the Required Lenders); provided that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such
change therein. 
  
 Section 1.4    Time of
Day.  Unless otherwise indicated, all references in this Agreement to times of day shall be references to San Francisco, California time. 
  
 Section 1.5    Letter of Credit Amounts.  Unless otherwise specified, all references herein to the amount of a Letter
of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any document related
thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or
not such maximum stated amount is in effect at such time. 
  
 ARTICLE 2 
  
 Credit Facility 
  
 Section 2.1    Commitments.  Subject to
the terms and conditions of this Agreement, each Lender severally agrees to make advances to the Borrower from time to time, subject to the provisions of Section 2.4, from the Closing Date to the Maturity Date in an aggregate principal amount
at any time outstanding up to but not exceeding the amount of such Lender’s Commitment as then in effect; provided, however, (a) the aggregate Outstanding Amount of (i) the Revolving Loan outstanding applicable to a Lender
plus such Lender’s Commitment Percentage of the Outstanding Amount of all L/C Obligations shall not at any time exceed such Lender’s Commitment and (ii) the Loan (inclusive of such Lender’s obligation to make advances under the
Revolving Loan to pay Swingline Advances) outstanding applicable to a Lender plus such Lender’s Commitment Percentage of the Outstanding Amount of all L/C Obligations shall not at any time exceed such Lender’s Commitment and (b) the
Total Outstandings shall not at any time exceed the aggregate Commitments. Subject to the foregoing limitations, and the other terms and provisions of this Agreement, the Borrower may borrow, prepay and reborrow hereunder the amount of the
Commitments and may establish a Base Rate Balance and Libor Balances thereunder and, until the Maturity Date, the Borrower may Continue Libor Balances established under the Revolving Loan or Convert Balances established under the Revolving Loan as
either Libor Balances or Base Rate Balances into Base Rate Balances or Libor Balances, as applicable. Notwithstanding anything to the contrary contained in this Agreement, the Borrower may from time to time request, and Bank of America may in its
discretion from time to time advance (but shall in no event be obligated to advance), revolving loans which are to be funded solely by Bank of America (the “Swingline Advances”); provided, however, that (i) the
aggregate principal amount of the Swingline Advances outstanding at any time shall not exceed fifteen million Dollars ($15,000,000) and the Total Outstandings shall not exceed the aggregate principal amount of the Commitments and (ii) Bank of
America shall give the Agent and each Lender written notice of the aggregate outstanding principal amount of the Swingline Advances upon the written request of the Agent or any Lender (but no more often than once every calendar quarter).
Furthermore, upon one (1) Business Day’s prior written notice given by Bank of America to the Agent and the other Lenders at any time and from time to time (including at any time following the occurrence of a Default or an Event of Default)
and, in any event, without 

  

 21 

 
notice on the Business Day immediately preceding the Maturity Date, each Lender (including Bank of America) severally agrees, irrevocably and
unconditionally, as provided in the first sentence of this Section 2.1, and notwithstanding anything to the contrary contained in this Agreement, any Default or Event of Default or the inability or failure of the Borrower or any of its
Subsidiaries to satisfy any condition precedent to funding any advance under the Loan contained in Article 8 (which conditions precedent shall not apply to this sentence), to make an advance under the Revolving Loan, in the form of a Base
Rate Balance, in an amount equal to its Commitment Percentage of the aggregate principal amount of the Swingline Advances then outstanding, and the proceeds of such advance under the Revolving Loan shall be promptly paid by the Agent to Bank of
America and applied as a repayment of the aggregate principal amount of the Swingline Advances then outstanding. Subject to the other terms and provisions of this Agreement, the Borrower may borrow, prepay and reborrow hereunder the Swingline
Advances and may establish a Base Rate Balance and IBOR Balances thereunder and, until the Maturity Date, the Borrower may Continue IBOR Balances established under the Swingline Advances or Convert Balances established under the Swingline Advances
as either IBOR Balances or Base Rate Balances into Base Rate Balances or IBOR Balances, as applicable. Each Type of Balance under the Loan advanced by each Lender shall be established and maintained at such Lender’s Applicable Lending Office
for such Type of Balance. 
  
 Section
2.2    Notes.  The portion of the Revolving Loan made by each Lender shall be evidenced by a single promissory note of the Borrower, in substantially the form of Exhibit A (a “Revolving
Note”), payable to the order of such Lender, in the maximum principal amount equal to such Lender’s Commitment as originally in effect (or, if greater, its Commitment as thereafter increased) and otherwise duly completed, and the
Swingline Advances made by Bank of America shall be evidenced by a single promissory note of the Borrower in the maximum original principal amount of fifteen million Dollars ($15,000,000) payable to the order of Bank of America in substantially the
form of Exhibit B (the “Swingline Note”), dated the Closing Date. 
  
 Section 2.3    Repayment of Loan.  The Borrower shall pay to the Agent, for the account of the Lenders, (a) the prepayments of the Loan required pursuant to Section 5.4(a)
and (b) the outstanding principal amount of the Loan on the Maturity Date. 
  
 Section 2.4    Use of Proceeds.  Subject to the terms of this Agreement, the proceeds of the Loan shall be used by the Borrower (a) to renew the Borrower’s existing
indebtedness under the Original Agreement, (b) to finance capital expenditures by the Borrower and (c) for general corporate purposes, including to finance working capital requirements of the Borrower and its Subsidiaries, arising in the ordinary
course of business. 
  
 Section
2.5    Termination or Reduction of Commitments.  The Borrower shall have the right to terminate fully or to reduce in part the unused portion of the Commitments at any time and from time to time, provided
that: (a) the Borrower shall not have the right to terminate or reduce in part any unused portion of the Commitments that could or may be required to be advanced by the Lenders to refinance Swingline Advances then outstanding; (b) the Borrower shall
give the Agent at least three (3) Business Days’ notice of each such termination or reduction as provided in Section 5.3; and (c) each partial reduction shall be in an aggregate 

  

 22 

 
amount at least equal to $10,000,000 or any multiple of $5,000,000 in excess thereof. The Commitments may not be reinstated after they have been terminated
or reduced. 
  
 Section 2.6    Increase of
Commitments. 
  
 (a)    Upon notice to the Agent (who shall promptly notify the Lenders), the Borrower may, from time to time prior to the day which is the fifty-four (54) month anniversary of the Closing Date, request an increase in the
aggregate Commitments up to an aggregate of $400,000,000; provided that, in the event the Borrower has reduced the Commitments pursuant to Section 2.5, the amount of any increase in the Commitments pursuant to this Section 2.6
shall not exceed $100,000,000. At the time of sending such notice, the Borrower (in consultation with the Agent) shall specify the time period within which each Lender is requested to respond to such request. Each Lender shall respond within such
time period to the Agent as to whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to or less than its Commitment Percentage of such requested increase. Any Lender not responding within such time period shall
be deemed to have declined to increase its Commitment. The Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made hereunder. To achieve the full amount of a requested increase, the Borrower may also (i)
request that one or more other Lenders, in their sole and absolute discretion, nonratably increase their Commitment(s) and/or (ii) invite additional Eligible Assignees to become Lenders under the terms of this Agreement. 
  
 (b)    If any Commitments are increased
in accordance with this Section, the Agent and the Borrower shall determine the effective date of such increase (the “Increase Effective Date”). The Agent and the Borrower shall promptly confirm in writing to the Lenders the final
allocation of such increase and the Increase Effective Date. As a condition precedent to such increase, the Borrower shall deliver to the Agent a certificate dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of the Borrower (i) certifying and attaching the resolutions adopted by the Borrower and each Guarantor approving or consenting to such increase, (ii) including a Compliance Certificate demonstrating pro forma compliance with
Section 12.1 after giving effect to such increase and (iii) certifying that before and after giving effect to such increase, the representations and warranties contained in Article 9 are true and correct on and as of the Increase
Effective Date and no Default exists. The Borrower shall deliver new or amended Notes reflecting the new or increased Commitment of each new or affected Lender as of the Increase Effective Date. The Borrower shall prepay any Libor Balances
outstanding on the Increase Effective Date (and pay any costs incurred in connection with such prepayment pursuant to Section 6.5) to the extent necessary to keep outstanding Balances ratable with any revised Commitment Percentages arising
from any nonratable increase in the Commitments under this Section. 
  
 (c)    This Section shall supersede any provision in Section 15.10 to the contrary. 
  

 23 

  
 ARTICLE 3 
  
 Letters of Credit 
  
 Section 3.1    The Letter of Credit Commitment.

  
 (a)    Subject to the
terms and conditions set forth herein, (i) the L/C Issuer agrees, in reliance upon the agreements of the other Lenders set forth in this Article 3, (A) from time to time on any Business Day during the period from the Closing Date until the
Maturity Date, to issue Letters of Credit for the account of the Borrower, and to amend or extend Letters of Credit previously issued by it, in accordance with Section 3.2, and (B) to honor drawings under the Letters of Credit and (ii) the
Lenders severally agree to participate in Letters of Credit issued for the account of the Borrower; provided that the L/C Issuer shall not be obligated to make any L/C Credit Extension with respect to any Letter of Credit, and no Lender shall
be obligated to participate in any Letter of Credit if as of the date of such L/C Credit Extension, (x) the Total Outstandings would exceed the aggregate Commitments or (y) the aggregate Outstanding Amount of the portion of the Loan made by any
Lender, plus such Lender’s Commitment Percentage of the Outstanding Amount of all L/C Obligations would exceed the amount of such Lender’s Commitment. Each request by the Borrower for the issuance or amendment of a Letter of Credit
shall be deemed to be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and
conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving and, accordingly, the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed. All Existing Letters of Credit shall be deemed to have been issued pursuant hereto and, from and after the Closing Date, shall be subject to and governed by the terms and conditions hereof; without limiting the
foregoing, each Lender shall be deemed to have purchased from the L/C Issuer a risk participation in each Existing Letter of Credit on the Closing Date pursuant to Section 3.2(b). 
  
 (b)    The L/C Issuer shall be under no obligation to issue any Letter of Credit if:

  
 (i)    any order,
judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any law, rule or regulation applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or
shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it; 
  

 24 

 (ii)    subject to Section 3.2(c), the expiry date of such
requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; 
  
 (iii)    the expiry date of such requested Letter of Credit would occur more than one
year after the Maturity Date, unless all Lenders have approved such expiry date; 
  
 (iv)    the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer; 
  
 (v)    except as otherwise agreed by the
Agent and the L/C Issuer, such Letter of Credit is in an initial amount less than $250,000 or is to be denominated in a currency other than Dollars; or 
  
 (vi)    a default of any Lender’s obligations to fund under Section 3.3 exists or any Lender is at such
time a Defaulting Lender hereunder, unless the L/C Issuer has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender. 
  
 (c)    The L/C Issuer shall be under no
obligation to amend any Letter of Credit if (i) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof or (ii) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit. 
  
 (d)    The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (i)
provided to the Agent in Article 14 with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of
Credit as fully as if the term “Agent” as used in Article 14 included the L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with respect to the L/C Issuer. 
  
 Section 3.2    Procedures for Issuance and Amendment
of Letters of Credit; Auto-Extension Letters of Credit. 
  
 (a)    Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to the Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower. Such Letter of Credit Application must be received by the L/C Issuer and the Agent not later than 11:00 a.m. at least two Business Days (or such later
date and time as the L/C Issuer may agree in a particular instance in its sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for the initial issuance of a Letter of Credit, such
Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer: (i) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (ii) the amount thereof; (iii) the expiry date thereof;
(iv) the name and address of the 

  

 25 

 
beneficiary thereof; (v) the documents to be presented by such beneficiary in case of any drawing thereunder; (vi) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (vii) such other matters as the L/C Issuer may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail satisfactory to the L/C Issuer: (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as
the L/C Issuer may require. Additionally, the Borrower shall furnish to the L/C Issuer and the Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Letter of Credit
Application, as the L/C Issuer or the Agent may require. 
  
 (b)    Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the Agent (by telephone or in writing) that the Agent has received a copy of such Letter of
Credit Application from the Borrower and, if not, the L/C Issuer will provide the Agent with a copy thereof. Unless the L/C Issuer has received written notice from any Lender, the Agent or the Borrower, at least one Business Day prior to the
requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Article 8 shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on
the requested date, issue such Letter of Credit for the account of the Borrower (or the applicable Subsidiary) or enter into such amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business
practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to
the product of such Lender’s Commitment Percentage times the amount of such Letter of Credit. 
  
 (c)    If the Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Nonextension Notice
Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific request to the L/C Issuer for any such
extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than one
year after the Maturity Date; provided that the L/C Issuer shall not permit any such extension if (i) the L/C Issuer has determined that it would have no obligation at such time to issue such Letter of Credit in its extended form under the
terms hereof (by reason of the provisions of Section 3.1(b) or otherwise) or (ii) it has received notice (which may be by telephone or in writing) on or before the day that is five Business Days before the Nonextension Notice Date (A) from
the Agent that the Required Lenders have elected not to permit such extension or (B) from the Agent, any 

  

 26 

 
Lender or the Borrower that one or more of the applicable conditions specified in Section 8.2 is not then satisfied. 
  
 (d)    Promptly after its delivery of
any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower and the Agent a true and complete copy of such Letter of Credit or
amendment. 
  
 Section 3.3    Drawings and
Reimbursements; Funding of Participations. 
  
 (a)    Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the Agent of its receipt of such notice and the amount
of the requested drawing. Within one (1) Business Day of the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse the L/C Issuer through the Agent in an
amount equal to the amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time, the Agent shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed
Amount”) and the amount of such Lender’s Commitment Percentage thereof. In such event, the Borrower shall be deemed to have requested a borrowing to be disbursed on the Honor Date of an amount of the Loan in an amount equal to the
Unreimbursed Amount (which amount shall be a Base Rate Balance), without regard to the minimum and multiples specified in Section 5.2 for the principal amount of borrowings, but subject to the amount of the unutilized portion of the aggregate
Commitments and the conditions set forth in Section 8.2. Any notice given by the L/C Issuer or the Agent pursuant to this Section 3.3(a) may be given by telephone if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. 
  
 (b)    Each Lender (including the Lender acting as L/C Issuer) shall upon any notice pursuant to Section 3.3(a)
make funds available to the Agent for the account of the L/C Issuer at the Principal Office in an amount equal to its Commitment Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the
Agent, whereupon, subject to the provisions of Section 3.3(c), each Lender that so makes funds available shall be deemed to have made a portion of the Loan available to the Borrower in such amount, which portion shall be a Base Rate Balance.
The Agent shall remit the funds so received to the L/C Issuer. 
  
 (c)    With respect to any Unreimbursed Amount that is not fully refinanced by a borrowing of portions of the Loan because the conditions set forth in Section 8.2 cannot be satisfied or for
any other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. In such event, each Lender’s payment to the Agent for the account of the L/C Issuer pursuant to Section 3.3(b) shall be deemed payment in respect of its participation in such L/C Borrowing and

  

 27 

 
shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Article 3. 
  
 (d)    Until each Lender funds its
portion of the Loan or an L/C Advance pursuant to this Section 3.3 to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Commitment Percentage of such amount shall be solely for
the account of the L/C Issuer. 
  
 (e)    Each Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 3.3, shall be absolute and unconditional
and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the L/C Issuer, the Borrower or any other Person for any reason whatsoever, (ii) the
occurrence or continuance of a Default or (iii) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided that each Lender’s obligation to make available portions of the Loan pursuant to this
Section 3.3 is subject to the conditions set forth in Section 8.2. No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the amount of any payment made by the
L/C Issuer under any Letter of Credit, together with interest as provided herein. 
  
 (f)    If any Lender fails to make available to the Agent for the account of the L/C Issuer any amount required to be
paid by such Lender pursuant to the foregoing provisions of this Section 3.3 by the time specified in Section 3.3(b), the L/C Issuer shall be entitled to recover from such Lender (acting through the Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the L/C
Issuer in accordance with banking industry rules on interbank compensation. A certificate of the L/C Issuer submitted to any Lender (through the Agent) with respect to any amounts owing under this clause (f) shall be conclusive absent
manifest error. 
  
 Section
3.4    Repayment of Participations. 
  
 (a)    At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with
Section 3.3, if the Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied
thereto by the Agent), the Agent will distribute to such Lender its Commitment Percentage thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding)
in the same funds as those received by the Agent. 
  
 (b)    If any payment received by the Agent for the account of the L/C Issuer pursuant to Section 3.3(a) is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be returned
(including pursuant to any settlement 

  

 28 

 
entered into by the L/C Issuer in its discretion), each Lender shall pay to the Agent for the account of the L/C Issuer its Commitment Percentage thereof on
demand of the Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
  
 Section 3.5    Obligations Absolute.  The obligation of the Borrower to reimburse the L/C Issuer for each
drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

  
 (i)    any lack of
validity or enforceability of such Letter of Credit, this Agreement or any other agreement or instrument relating hereto or thereto; 
  
 (ii)    the existence of any claim, counterclaim, set-off, defense or other right that the Borrower may have at any
time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto or any unrelated transaction; 
  
 (iii)    any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, so long as any such document appeared to comply with the terms of such Letter of Credit, or any loss or delay in the transmission
or otherwise of any document required in order to make a drawing under such Letter of Credit; 
  
 (iv)    any payment by the L/C Issuer in good faith under such Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of such Letter of Credit, or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the
benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any bankruptcy or insolvency law; or

  
 (v)    any other
circumstance or happening whatsoever where the L/C Issuer has acted in good faith. 
  
 The Borrower shall examine a copy of each Letter of Credit and each amendment thereto that is delivered to it within one Business Day of such delivery and, in the event of any claim of noncompliance with the
Borrower’s instructions or other irregularity, the Borrower will immediately notify the L/C Issuer. The Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents unless such notice is
given as aforesaid. 
  

 29 

 Section 3.6    Role of L/C Issuer.  Each Lender and the
Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificate or document expressly required by such Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, the Agent, any of their respective Related Parties nor any of the respective
correspondents, participants or assignees of the L/C Issuer shall be liable to any Lender for: (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application.
The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the Agent, any of their respective Related Parties nor any of the respective correspondents,
participants or assignees of the L/C Issuer, shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 3.5; provided that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of such Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
  
 Section 3.7    Cash Collateral.  If, as of the Maturity Date, any Letter of Credit may for any reason remain
outstanding and partially or wholly undrawn, the Borrower shall immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. For purposes hereof, “Cash Collateralize” means to pledge and deposit with or deliver
to the Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substance satisfactory to the Agent and the L/C Issuer (which documents
are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower hereby grants to the Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing. Cash collateral shall be maintained in blocked, non-interest-bearing deposit accounts at Bank of America. 
  
 Section 3.8    Applicability of ISP and UCP.  Unless otherwise specified in an Existing Letter of Credit (or
any renewal thereof) or expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued (i) the rules of the ISP shall apply to each Standby Letter of Credit and (ii) the rules of the Uniform Customs and Practice for
Documentary Credits, as most 

  

 30 

 
recently published by the International Chamber of Commerce at the time of issuance shall apply to each Commercial Letter of Credit. 
  
 Section 3.9    Letter of Credit
Fees.  The Borrower shall pay to the Agent for the account of each Lender in accordance with its Commitment Percentage a Letter of Credit fee for each Letter of Credit equal to (x) in the case of each Standby Letter of Credit,
the Libor Rate Margin times the daily maximum amount available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit) and (y) in the case of each Commercial Letter of Credit,
50% of the Libor Rate Margin times the daily maximum amount available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit); provided that, while any Event of Default
exists, the rate per annum for Letter of Credit fees shall be increased by 2%. Such letter of credit fees shall be computed on a quarterly basis in arrears. Such letter of credit fees shall be due and payable (i) on each Quarterly Payment Date,
commencing with the first such date to occur after the issuance of such Letter of Credit, (ii) on the Maturity Date, (iii) if any Letters of Credit are outstanding on the Maturity Date, on the date on which the last of such Letters of Credit to be
outstanding expires or terminates and (iv) on the date on which the Agent takes any action described in Section 13.2(a), (b) or (c) (or on which any of such actions occurs automatically pursuant to the proviso to
Section 13.2) and thereafter on demand. If there is any change in the Libor Rate Margin during any quarter, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the Libor Rate Margin separately for each period
during such quarter that such Applicable Rate was in effect. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.5.

  
 Section 3.10    Fronting Fee and
Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C Issuer for its own account a fronting fee with respect to each Letter of Credit equal to 0.10% per annum times the daily
maximum amount available to be drawn on such Letter of Credit, computed for each day such Letter of Credit is outstanding, payable (i) on each Quarterly Payment Date, commencing with the first such date to occur after the issuance of such Letter of
Credit, (ii) on the Maturity Date, (iii) if any Letters of Credit are outstanding on the Maturity Date, on the date on which the last of such Letters of Credit to be outstanding expires or terminates and (iv) on the date on which the Agent takes any
action described in Section 13.2(a), (b) or (c) (or on which any of such actions occurs automatically pursuant to the proviso to Section 13.2) and thereafter on demand. In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect. Such customary
fees and standard costs and charges are due and payable on demand and are nonrefundable. 
  
 Section 3.11    Conflict with Letter of Credit Application.  In the event of any conflict between the terms hereof and the terms of any Letter of Credit Application, the terms
hereof shall control. Notwithstanding the terms of any Letter of Credit Application for a Commercial Letter of Credit, in no event may the Borrower extend the time for reimbursing any drawing under a Commercial Letter of Credit by obtaining a
bankers’ acceptance from the L/C Issuer. 
  

 31 

 Section 3.12    Letters of Credit Issued for
Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligation of, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse the L/C Issuer hereunder
for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives
substantial benefits from the businesses of such Subsidiaries. 
  
 ARTICLE 4 
  
 Interest and Fees 
  
 Section 4.1    Interest Rate.  The
Borrower shall pay to the Agent, for the account of each Lender (including Bank of America with respect to the Swingline Advances), interest on the unpaid principal amount of the Loan made by such Lender for the period commencing on the date of the
initial advance under the Loan to the date the Loan is due, at a fluctuating rate per annum equal to the Applicable Rate. The term “Applicable Rate” means: 
  
 (a)    during the period that the Loan or any portion thereof is outstanding as a Base
Rate Balance, the Base Rate, plus the Base Rate Margin; 
  
 (b)    during the period that the Revolving Loan or any portion thereof is outstanding as a Libor Balance or as Libor Balances, the Libor Rate, plus the Libor Rate Margin; and 
  
 (c)    during the period that any
Swingline Advance is outstanding as an IBOR Balance or as IBOR Balances, the IBOR Rate, plus the IBOR Rate Margin. 
  
 Section 4.2    Determinations of Margins and Facility Fee Rate.  From the Closing Date to the first Margin Adjustment
Date, the margins identified in Section 4.1 shall be as follows: (a) the margin of interest payable with respect to the Base Rate Balance (the “Base Rate Margin”) shall be 0.00%; (b) the margin of interest payable with
respect to the Libor Balance (the “Libor Rate Margin”) shall be 0.375%; and (c) the margin of interest payable with respect to the IBOR Balance (the “IBOR Rate Margin”) shall be 0.375%. From the Closing Date until
the first Margin Adjustment Date, the percentage used to determine fees payable under Section 4.6 (the “Facility Fee Rate”) shall be 0.125% and the percentage used to determine fees payable under Section 4.8 (the
“Utilization Fee Rate”) shall be 0.125%. Upon delivery of the certificate required pursuant to Section 10.1(c) after the end of each Fiscal Quarter commencing with such certificate delivered for the Fiscal Quarter ending
January 30, 2005, the Facility Fee Rate, the Base Rate Margin, the Libor Rate Margin, the IBOR Rate Margin and the Utilization Fee Rate shall automatically be adjusted to the fee or rate, as applicable, corresponding to the Leverage Ratio
(determined for the preceding twelve (12) Fiscal Periods then ending) of the Borrower set forth in the following table, such automatic adjustment to take effect as of the first day of the calendar month following the date on which such certificate
is delivered (the “Margin Adjustment Date”). 
  

 32 

											
	 LEVERAGE RATIO

	  	FACILITY
FEE RATE

	 	LIBOR RATE
MARGIN

	 	IBOR RATE
MARGIN

	 	UTILIZATION
FEE RATE

	 	BASE RATE
MARGIN

	 Greater than or equal to
 3.25 to 1.00
	  	0.200%	 	0.80%	 	0.80%	 	0.250%	 	0.00%
	 Greater than or equal to
 2.75 to 1.00 but less than
 3.25 to 1.00
	  	0.175%	 	0.70%	 	0.70%	 	0.125%	 	0.00%
	 Greater than or equal to
 2.25 to 1.00 but less than
 2.75 to 1.00
	  	0.150%	 	0.475%	 	0.475%	 	0.125%	 	0.00%
	 Greater than or equal to
 1.75 to 1.00 but less than
 2.25 to 1.00
	  	0.125%	 	0.375%	 	0.375%	 	0.125%	 	0.00%
	 Less than 1.75 to 1.00
	  	0.10%	 	0.30%	 	0.30%	 	0.10%	 	0.00%

  
 If the Borrower fails to deliver such
certificate with respect to any Fiscal Quarter which sets forth the Leverage Ratio within the period of time required by Section 10.1(c): (x) each of the Libor Rate Margin and the IBOR Rate Margin (each for Interest Periods commencing after
the applicable Margin Adjustment Date) shall automatically be adjusted to 0.80% per annum; (y) the Facility Fee Rate shall automatically be adjusted to 0.20% per annum; and (z) the Utilization Fee Rate shall automatically be adjusted to 0.25% per
annum. The automatic adjustments provided for in the preceding sentence shall take effect as of the date on which the referenced certificate is due and shall remain in effect until otherwise adjusted on the date such certificate is actually received
in accordance herewith. 
  
 Section
4.3    Payment Dates.  Accrued interest on the Loan shall be due and payable as follows: (a) in the case of the Base Rate Balance, on each Quarterly Payment Date and on the Maturity Date; and (b) in the case of
each Libor Balance and each IBOR Balance, (i) on the last day of the Interest Period with respect thereto, (ii) in the case of an Interest Period greater than three (3) months, at three (3) month intervals after the first day of such Interest Period
and (iii) on the Maturity Date. 
  
 Section
4.4    Default Interest.  Notwithstanding anything to the contrary contained in this Agreement, during the existence of an Event of Default, the Borrower will pay to the Agent for the account of each Lender
interest at the applicable Default Rate on any principal of the Loan made by such Lender and (to the fullest extent permitted by law) any other amount payable by the Borrower under any Loan Document to or for the account of the Agent or such Lender.

  
 Section 4.5    Conversions and
Continuations of Balances.  Subject to Section 5.2, 
  
 (a)    with respect to Balances under the Revolving Loan, the Borrower shall have the right from time to time to Convert all or part of either the Base Rate Balance or the Libor Balance into a
Balance of the other Type or to Continue Libor Balances in existence as Libor Balances, provided that: (i) the Borrower shall give the Agent notice 

  

 33 

 
of each such Conversion or Continuation as provided in Section 5.3; (ii) subject to Article 6, a Libor Balance may only be Converted on the
last day of the Interest Period therefor; and (iii) except for Conversions into the Base Rate Balance, no Conversions or Continuations shall be made without the consent of the Agent and the Required Lenders at any time during the existence of a
Default and 
  
 (b)    with
respect to Balances under the Swingline Advances, the Borrower shall have the right from time to time to Convert all or part of either the Base Rate Balance or the IBOR Balance into a Balance of the other Type or to Continue IBOR Balances in
existence as IBOR Balances, provided that: (i) the Borrower shall give the Agent notice of each such Conversion or Continuation as provided in Section 5.3; (ii) subject to Article 6, an IBOR Balance may only be Converted on the
last day of the Interest Period therefor; and (iii) except for Conversions into the Base Rate Balance, no Conversions or Continuations shall be made without the consent of the Agent and Bank of America at any time during the existence of a Default.

  
 Section 4.6    Facility
Fee.  For the period from the Closing Date to the Maturity Date, the Borrower agrees to pay to the Agent for the account of each Lender, pro rata according to its Commitment Percentage, a facility fee equal to the Facility Fee Rate
(determined according to the provisions of Section 4.2) multiplied by the aggregate amount of the Commitments (regardless of usage). Accrued facility fees under this Section shall be payable in arrears on each Quarterly Payment Date,
commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The facility fee shall accrue at all times, including at any time during which one or more of the conditions in Article 8 is not met. 

 
 Section 4.7    Administrative
Fee.  The Borrower agrees to pay to the Agent on the Closing Date and on each anniversary thereof the administrative fee described in the Fee Letter. 
  
 Section 4.8    Utilization Fee.  The Borrower shall pay to the Agent for the account of
each Lender in accordance with its Commitment Percentage, a utilization fee equal to the Utilization Fee Rate (determined according to the provisions of Section 4.2) times the Total Outstandings on each day that the Total Outstandings exceed
50% of the actual daily amount of the aggregate Commitments then in effect (or, if terminated, in effect immediately prior to such termination). The utilization fee shall be due and payable quarterly in arrears on each Quarterly Payment Date,
commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The utilization fee shall be calculated quarterly in arrears and if there is any change in the Utilization Fee Rate during any quarter, the daily amount
shall be computed and multiplied by the Utilization Fee Rate for each period during which such Utilization Fee Rate was in effect. The utilization fee shall accrue at all times, including at any time during which one or more of the conditions in
Article 8 is not met. 
  
 Section
4.9    Computations.  Interest and fees payable by the Borrower hereunder and under the other Loan Documents shall be computed on the basis of a year of 360 days and the actual number of days elapsed (including
the first day but excluding the last day) in the period for which interest is payable unless such calculation would result in a rate that exceeds the Maximum Rate, in which case interest shall be calculated on the basis of a year of 365 or 366 days,
as the case may be. Notwithstanding anything to the contrary contained in this Section, 

  

 34 

 
interest payable by the Borrower hereunder and under the other Loan Documents with respect to the Base Rate Balance shall be computed on the basis of a year
of 365 or 366 days, as the case may be, and the actual number of days elapsed (including the first day but excluding the last day) in the period for which interest is payable. Each determination of an interest rate by the Agent shall be conclusive
and binding on the Borrower and the Lenders in the absence of manifest error. The Agent will, at the request of the Borrower or any Lender, deliver to the Borrower or such Lender, as the case may be, a statement showing the quotations used by the
Agent in determining any interest rate and the resulting interest rate. 
  
 ARTICLE 5 
  
 Administrative Matters 
  
 Section 5.1    Borrowing Procedure.  The
Borrower shall give the Agent, and the Agent will give the Lenders, notice of each borrowing under the Commitments in accordance with Section 5.3. Not later than 10:00 a.m. on the date specified for each borrowing under the Commitment, each
Lender will make available the amount of the Loan to be advanced by it on such date to the Agent, at the Principal Office, in immediately available funds, for the account of the Borrower. The amounts received by the Agent shall, subject to the terms
and conditions of this Agreement, be made available to the Borrower by 1:00 p.m. at the Borrower’s direction by transferring the same, in immediately available funds by wire transfer, automated clearinghouse transfer or interbank transfer to
(a) a bank account of the Borrower designated by the Borrower in writing or (b) a Person or Persons designated by the Borrower in writing; provided that if, on the date the notice of borrowing with respect to such borrowing is given by the
Borrower, there are L/C Borrowings outstanding, then the proceeds of such borrowing shall be applied, first, to the payment in full of any such L/C Borrowings, and second, to the Borrower as provided above. 
  
 Section 5.2    Minimum Amounts.  Each
borrowing under the Commitments shall be in an amount equal to $5,000,000 or an integral multiple of $1,000,000 in excess thereof except that in the case of a Swingline Advance such borrowing may be in an amount equal to $250,000 or an integral
multiple of $250,000 in excess thereof. Except for Conversions and prepayments pursuant to Section 5.4(a) and Article 6, each Conversion and prepayment of principal of the Loan shall be in an amount equal to the minimum amounts set
forth in the preceding sentence. Notwithstanding the foregoing, each borrowing or Continuation under the Commitments as a Libor Balance or an IBOR Balance (as applicable) and each Conversion of amounts outstanding as all or a portion of the Base
Rate Balance to a Libor Balance or an IBOR Balance (as applicable) shall be in an amount equal to the minimum amounts set forth for borrowings in this Section. 
  

Section 5.3    Certain Notices. 
  
 (a)    Notices by the Borrower to the Agent of terminations or reductions of Commitments, of borrowings, Conversions,
Continuations and prepayments of the Loan and of the duration of Interest Periods shall be irrevocable and shall be effective only if received by the Agent not later than 10:00 a.m. on the Business Day prior to the date of the relevant termination,
reduction, borrowing, Conversion, Continuation or prepayment as specified below: 
  

 35 

			
	 Notice

	  	Number of
Business Days
Prior

	 Borrowing, Conversions, Continuations and prepayment of Swingline Advances
	  	0
		
	 Borrowing of the Revolving Loan as all or a portion of the Base Rate Balance
	  	1
		
	 Borrowing of the Revolving Loan as a Libor Balance
	  	3
		
	 Conversions or Continuations of Balances under the Revolving Loan and termination or reduction of Commitments
	  	3
		
	 Prepayment of the Revolving Loan which is all or a portion of the Base Rate Balance
	  	1
		
	 Prepayment of the Revolving Loan which is a Libor Balance
	  	3

  
 Any notices of the
type described in this Section which are received by the Agent after the applicable time set forth above on a Business Day shall be deemed to be received and shall be effective on the next Business Day. Each such notice of termination or reduction
shall specify the amount of the Commitments to be terminated or reduced. Each such notice of borrowing, Conversion, Continuation or prepayment shall be in the form of Exhibit F, appropriately completed by an authorized representative of the
Borrower, and shall specify: (i) the amount of the Loan to be borrowed or prepaid or the Balances to be Converted or Continued; (ii) the amount (subject to Section 5.2) to be borrowed (and whether any of such borrowing will be a Swingline
Advance), Converted, Continued or prepaid; (iii) in the case of a Conversion, the Type of Balance to result from such Conversion; (iv) in the case of a borrowing, the Type of Balance or Balances to be applicable to such borrowing and the amounts
thereof; (v) in the event a Libor Balance or an IBOR Balance is selected, the duration of the Interest Period therefor; and (vi) the date of borrowing, Conversion, Continuation or prepayment (which shall be a Business Day). 
  
 (b)    Any notices by the Borrower of
the type described in this Section may be made orally or in writing and, if made orally, must be confirmed immediately in writing (which may be by telecopy, provided that such telecopy is promptly followed by delivery of an original signed
notice) on the same Business Day on which such oral notice is given; provided that any such oral notice shall be deemed to be controlling and proper notice in the event of a discrepancy with or failure to receive a confirming written notice.
The Agent shall notify the affected Lenders of the contents of each such notice on the date of its receipt of the same or, if received after the applicable time set forth above on a Business Day, on the next Business Day. In the event the Borrower
fails to select the Type of Balance applicable to a borrowing of the Loan, or the duration of any Interest Period for any Libor Balance or IBOR Balance, within the time period and otherwise as 

  

 36 

 
provided in this Section, such Balance (if outstanding as a Libor Balance or an IBOR Balance) will be automatically Converted into the Base Rate Balance on
the last day of the Interest Period for such Libor Balance or IBOR Balance or (if outstanding as a portion of the Base Rate Balance) will remain as, or (if not then outstanding) will be made as, a portion of the Base Rate Balance. The Borrower may
not borrow under the Loan as a Libor Balance or an IBOR Balance, Convert any portion of the Base Rate Balance into Libor Balances or IBOR Balances, Continue any Libor Balance as a Libor Balance or Continue any IBOR Balance as an IBOR Balance if the
Applicable Rate for such Libor Balance or IBOR Balance (as applicable) would exceed the Maximum Rate. 
  
 Section 5.4    Prepayments. 
  
 (a)    Mandatory. 
  
 (i)    Overadvance.  If for any reason the Total Outstandings at any time exceed the aggregate
Commitments then in effect, the Borrower shall, within one Business Day after the occurrence thereof, prepay the Loan in an amount equal to such excess and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess or do a
combination of the foregoing in an aggregate amount equal to such excess; provided that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 5.4(a) unless after the prepayment in full of
the Loan the Total Outstandings exceed the aggregate Commitments then in effect. 
  
 (ii)    Swingline Advances.  Within one (1) Business Day after any demand therefor by the Agent or
Bank of America, the Borrower shall prepay in full the outstanding principal amount of the Swingline Advances. 
  
 (b)    Optional.  Subject to Section 5.2 and the provisions of this clause (b), the
Borrower may, at any time and from time to time without premium or penalty upon prior notice to the Agent as specified in Section 5.3, prepay or repay the Loan in full or in part. Libor Balances and IBOR Balances may be prepaid or repaid only
on the last day of the Interest Period applicable thereto unless the Borrower pays to the Agent, for the account of the applicable Lenders or Lender, any amounts due under Section 6.5 as a result of such prepayment or repayment. 

 
 Section 5.5    Method of
Payment.  Except as otherwise expressly provided herein, all payments of principal, interest and other amounts to be made by the Borrower under the Loan Documents shall be made to the Agent at the Principal Office for the account of
each Lender’s Applicable Lending Office in Dollars and in immediately available funds, without condition or deduction for any counterclaim, defense, recoupment or set-off, not later than 12:00 noon on the date on which such payment shall become
due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day). Unless Bank of America expressly agrees otherwise and subject to Section 5.4(a)(ii), all payments shall be
applied as follows: first, with respect to any outstanding L/C Borrowing until all L/C Borrowings have been paid in full, second, with respect to the Base Rate Balance outstanding under the Swingline Advances until such portion of the
Loan is repaid in full, third, with respect to the 

  

 37 

 
Base Rate Balance outstanding under the Revolving Loan until such portion of the Loan is repaid in full and fourth, with respect to the IBOR Balance
outstanding under the Swingline Advances until such portion of the Loan is paid in full. Subject to the preceding sentence, the Borrower shall, at the time of making each such payment, specify to the Agent the sums payable under the Loan Documents
to which such payment is to be applied (and in the event that the Borrower fails to so specify, or if an Event of Default is in existence, the Agent may apply such payment to the Obligations in such order and manner as it may elect (subject to the
preceding sentence) in its sole discretion, subject to Section 5.6 and provided that when applying any such amounts to any Balances, the portion of the Loan outstanding as the Base Rate Balance shall be prepaid in full prior to any
application to any portion of the Loan outstanding as a Libor Balance or an IBOR Balance). Each payment received by the Agent under any Loan Document for the account of a Lender shall be paid to such Lender by 1:00 p.m. on the date the payment is
deemed made to the Agent in immediately available funds, for the account of such Lender’s Applicable Lending Office. Whenever any payment under any Loan Document shall be stated to be due on a day that is not a Business Day, such payment may be
made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of the payment of interest. 
  
 Section 5.6    Pro Rata Treatment.  Except to the extent otherwise provided herein: (a) each advance of the Revolving
Loan shall be made by the Lenders, each payment of facility fees under Section 4.6, each payment of utilization fees under Section 4.8 and each termination or reduction of the Commitments shall be made, paid or applied (as applicable)
pro rata according to the Lenders’ respective Commitment Percentages; (b) the making, Conversion and Continuation of Balances of a particular Type (other than Conversions provided for by Section 6.4) shall be made pro rata among the
Lenders holding Balances of such Type according to their respective Commitment Percentages; and (c) each payment and prepayment of principal of or interest on the Revolving Loan by the Borrower shall be made to the Agent for the account of the
Lenders pro rata in accordance with the respective unpaid principal amounts of the Revolving Loan held by each Lender; provided that as long as no default in the payment of interest exists, payments of interest made when Lenders are holding
different types of Balances applicable to the Revolving Loan as a result of the application of Section 6.4 shall be made to the Lenders in accordance with the amount of interest owed to each. If at any time payment, in whole or in part, of
any amount distributed by the Agent hereunder is rescinded or must otherwise be restored or returned by the Agent as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, then each Person receiving any
portion of such amount agrees, upon demand, to return the portion of such amount it has received to the Agent. 
  
 Section 5.7    Sharing of Payments.  If a Lender shall obtain, on account of the portion of the Loan made by such
Lender or the participations by such Lender in L/C Obligations and Swingline Advances held by it, any payment (whether voluntary, involuntary, by right of setoff or otherwise) in excess of its ratable share (or other share contemplated hereunder)
thereof, it shall promptly purchase from the other Lenders participations in the portions of the Loan made by them and/or subparticipations in the participations in L/C Obligations and Swingline Advances held by them, as the case may be, as shall be
necessary to cause such purchasing Lender to share such excess payment pro rata with each of them. To such end, all of the Lenders shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if all or any
portion of such excess payment is thereafter rescinded or must otherwise 

  

 38 

 
be restored. The Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any Lender so purchasing a participation in
accordance with this Section may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such
participation. Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness, liability
or obligation of the Borrower. 
  
 Section
5.8    Non-Receipt of Funds by the Agent. 
  
 (a)    Funding by Lenders; Presumption by Agent.  Unless the Agent shall have received notice from a Lender prior to the proposed date of any borrowing of Libor Balances (or, in
the case of any borrowing of Base Rate Balances, prior to 12:00 noon on the date of such borrowing) that such Lender will not make available to the Agent such Lender’s share of such borrowing, the Agent may assume that such Lender has made such
share available on such date in accordance with Section 5.1 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
borrowing available to the Agent, then the applicable Lender and the Borrower severally agree to pay to the Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the
date such amount is made available to the Borrower to but excluding the date of payment to the Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Agent in accordance
with banking industry rules on interbank compensation and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Balances. If the Borrower and such Lender shall pay such interest to the Agent for the same
or an overlapping period, the Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable borrowing to the Agent, then the amount so paid shall
constitute such Lender’s Revolving Loan included in such borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Agent. A notice of
the Agent to any Lender or the Borrower with respect to any amount owing under this clause (a) shall be conclusive, absent manifest error. 
  
 (b)    Payments by Borrower; Presumption by Agent.  Unless the Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Agent for the account of the Lenders or the L/C Issuer hereunder that the Borrower will not make such payment, the Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the
L/C Issuer, as the case may be, severally agrees to repay to the Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to the Agent, at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with 

  

 39 

 
banking industry rules on interbank compensation. A notice of the Agent to any Lender or the Borrower with respect to any amount owing under this clause
(b) shall be conclusive, absent manifest error. 
  
 (c)    Obligations of Lenders Several.  The obligations of the Lenders hereunder to make the Revolving Loan, to fund participations in Letters of Credit and Swingline Advances and to make payments
pursuant to Section 15.2(b) are several and not joint. The failure of any Lender to make any Revolving Loan, to fund any such participation or to make any payment under Section 15.2(b) on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Revolving Loan, to purchase its participation or to make its payment under Section
15.2(b). 
  
 ARTICLE 6 
  
 Change in Circumstances 
  
 Section 6.1    Increased Cost and Reduced Return.

  
 (a)    Increased
Cost.  If any Regulatory Change: 
  
 (i)    shall subject any Lender (or its Applicable Lending Office) to any tax, duty or other charge with respect to any Libor Balances or IBOR Balances, its Note or its obligation to make Libor Balances or IBOR Balances
available to the Borrower or (as the case may be) issuing or participating in Letters of Credit, or change the basis of taxation of any amounts payable to such Lender (or its Applicable Lending Office) under this Agreement or its Note in respect of
any Libor Balances or IBOR Balances (other than franchise taxes or taxes imposed on or measured by the net income of such Lender by the jurisdiction in which such Lender is organized, has its principal office or such Applicable Lending Office or is
doing business); 
  
 (ii)    shall impose, modify or deem applicable any reserve, special deposit, assessment or similar requirement (other than the Eurodollar Reserve Percentage utilized in the determination of the Libor Rate or the IBOR
Rate) relating to any extensions of credit or other assets of, or any deposits with or other liabilities or commitments of, such Lender (or its Applicable Lending Office), including the Commitment of such Lender hereunder; or 
  
 (iii)    shall impose on such Lender (or
its Applicable Lending Office), the London interbank market or the offshore interbank market (with respect to the IBOR Rate) any other condition affecting this Agreement or its Note or any of such extensions of credit or liabilities or commitments;

  
 and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, Converting into, Continuing or maintaining any Libor Balances or IBOR Balances or to reduce any sum received or receivable by such Lender (or its Applicable Lending Office) under this Agreement or its
Note with respect 

  

 40 

 
to any Libor Balances or IBOR Balances, then the Borrower shall pay to such Lender on demand such amount or amounts as will compensate such Lender for such
increased cost or reduction. If any Lender requests compensation by the Borrower under this Section 6.1(a), the Borrower may, by notice to such Lender (with a copy to the Agent), suspend the obligation of such Lender to make or maintain Libor
Balances or IBOR Balances, or to Convert any portion of the Base Rate Balances into Libor Balances or IBOR Balances, until the event or condition giving rise to such request ceases to be in effect (in which case the provisions of Section 6.4
shall be applicable); provided that such suspension shall not affect the right of such Lender to receive the compensation so requested. 
  
 (b)    Capital Adequacy.  If, after the date hereof, any Lender shall have determined that any
Regulatory Change has or would have the effect of reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change, request or directive (taking into consideration its policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time
upon demand, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction. 
  
 (c)    Claims Under this Section 6.1.  Each Lender shall promptly notify the Borrower and the Agent
of any event of which it has knowledge, occurring after the date hereof, which will entitle such Lender to compensation pursuant to this Section 6.1 and will designate a different Applicable Lending Office if such designation will avoid the
need for, or reduce the amount of, such compensation and will not, in the judgment of such Lender, be otherwise disadvantageous to it. Any Lender claiming compensation under this Section 6.1 shall furnish to the Borrower and the Agent a
statement setting forth the additional amount or amounts to be paid to it hereunder, which shall be conclusive in the absence of manifest error. In determining such amount, such Lender may use any reasonable averaging and attribution methods.

  
 Section 6.2    Limitation on Libor
Balances and IBOR Balances.  If on or prior to the first day of any Interest Period for any Libor Balance or IBOR Balance: 
  
 (a)    the Agent (with respect to the Libor Rate) or Bank of America (with respect to the IBOR Rate) determines (which
determination shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Libor Rate or the IBOR Rate, as applicable, for such Interest Period; 
  
 (b)    the Required Lenders determine
(which determination shall be conclusive) and notify the Agent that the Libor Rate will not adequately and fairly reflect the cost to the Lenders of funding Libor Balances for such Interest Period; or 
  

 41 

 (c)    Bank of America determines (which determination shall be
conclusive) and notifies the Agent that the IBOR Rate will not adequately and fairly reflect the cost to Bank of America of funding IBOR Balances for such Interest Period; 
  
 then the Agent shall give the Borrower prompt notice thereof specifying the amounts or periods, and so long as such condition remains in
effect, the Lenders shall be under no obligation to make additional Libor Balances or IBOR Balances (as applicable) available to the Borrower, Continue Libor Balances or IBOR Balances (as applicable) or to Convert any portion of the Base Rate
Balance into Libor Balances or IBOR Balances (as applicable) and the Borrower shall, on the last day(s) of the then current Interest Period(s) for the outstanding Libor Balances or IBOR Balances (as applicable), either prepay such Libor Balances or
IBOR Balances (as applicable) or Convert such Libor Balances or IBOR Balances (as applicable) into the Base Rate Balance in accordance with the terms of this Agreement. 
  
 Section 6.3    Illegality.  Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its Applicable Lending Office to make, maintain or fund Libor Balances or IBOR Balances (as applicable) hereunder, then such Lender shall promptly notify the Borrower and the Agent thereof and
such Lender’s obligation to make or Continue Libor Balances or IBOR Balances (as applicable) and to Convert any portion of the Base Rate Balance into Libor Balances or IBOR Balances (as applicable) shall be suspended until such time as such
Lender may again make, maintain and fund Libor Balances or IBOR Balances (as applicable) (in which case the provisions of Section 6.4 shall be applicable). 
  
 Section 6.4    Treatment of Affected Balances.  If the obligation of any Lender to make
a particular Libor Balance or IBOR Balance (as applicable) available to the Borrower or to Continue or to Convert any portion of the Base Rate Balance into, Libor Balances or IBOR Balances (as applicable) shall be suspended pursuant to Section
6.1 or Section 6.3 (Balances of such Type being herein called “Affected Balances”), such Lender’s Affected Balances shall be automatically Converted into the Base Rate Balances on the last day(s) of the then current
Interest Period(s) for the Affected Balances (or, in the case of a Conversion required by Section 6.3, on such earlier date as such Lender may specify to the Borrower with a copy to the Agent) and, unless and until such Lender gives notice as
provided below that the circumstances specified in Section 6.1 or Section 6.3 that gave rise to such Conversion no longer exist: 
  
 (a)    to the extent that such Lender’s Affected Balances have been so Converted, all payments and prepayments of
principal that would otherwise be applied to such Lender’s Affected Balances shall be applied instead to its Base Rate Balance; and 
  
 (b)    all advances under the Loan that would otherwise be made or Continued by such Lender as Libor Balances or IBOR
Balances (as applicable) shall be made or Continued instead as part of the Base Rate Balance, and all portions of the Base Rate Balance of such Lender that would otherwise be Converted into Libor Balances or IBOR Balances (as applicable) shall
remain as all or a portion of the Base Rate Balance. 
  
 With respect to amounts
outstanding under the Revolving Loan, if such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances specified in Section 6.1 or Section 6.3 that gave rise to the Conversion of such Lender’s Affected
Balances no longer exist 

  

 42 

 
(which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when Libor Balances made by other Lenders are outstanding, such
Lender’s Base Rate Balance shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding Libor Balances, to the extent necessary so that, after giving effect thereto, all Balances held by
the Lenders holding Libor Balances and by such Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitment Percentages. 
  
 Section 6.5    Compensation.  Upon the request of any Lender, the Borrower shall pay to
such Lender such amount or amounts as shall be sufficient (in the reasonable opinion of such Lender) to compensate it for any loss, cost or expense (including loss of anticipated profits, reemployment of funds obtained to maintain any Balance, from
fees payable to terminate the deposits from which such funds were obtained, any customary administrative fees charged by the Lender in connection with the foregoing and any such amounts incurred in connection with syndication of the Loan) incurred
by it as a result of: 
  
 (a)    any payment, prepayment or Conversion by the Borrower of a Libor Balance or an IBOR Balance for any reason (including the acceleration of the Loan pursuant to Section 13.2) on a date other than the last day
of the Interest Period for such Libor Balance or IBOR Balance; or 
  
 (b)    any failure by the Borrower for any reason (including the failure of any condition precedent specified in Article 8 to be satisfied) to borrow, Convert, Continue or prepay a Libor
Balance or an IBOR Balance on the date for such borrowing, Conversion, Continuation or prepayment specified in the relevant notice of borrowing, prepayment, Continuation or Conversion under this Agreement. 
  
 Notwithstanding the foregoing provisions of this Section 6.5, if at any time the
mandatory prepayment of the Loan pursuant to Section 5.4(a) would result in the Borrower incurring breakage costs under this Section 6.5 as a result of Libor Balances or IBOR Balances being prepaid other than on the last day of an
Interest Period applicable thereto (collectively, the “Affected Libor/IBOR Balances”), then the Borrower may in its sole discretion initially deposit a portion (up to 100%) of the amounts that otherwise would have been paid in
respect of the Affected Libor/IBOR Balances with the Agent (which deposit, after giving effect to interest to be earned on such deposit prior to the last day of the relevant Interest Periods, must be equal in amount to the amount of Affected
Libor/IBOR Balances not immediately prepaid) to be held as security for the obligations of the Borrower hereunder pursuant to a cash collateral agreement to be entered into in form and substance satisfactory to the Agent, with such cash collateral
to be directly applied upon the first occurrence (or occurrences) thereafter of the last day of an Interest Period applicable to the Affected Libor/IBOR Balances (or such earlier date or dates as shall be requested by the Borrower), to repay an
aggregate principal amount of the Loan equal to the Affected Libor/IBOR Balances not initially repaid pursuant to this sentence. 
  
 Section 6.6    Taxes. 
  
 (a)    Withholding Taxes.  Except as otherwise provided in this Agreement, any and all payments by
the Borrower or any Guarantor to or for the account of any Lender or 

  

 43 

 
the Agent hereunder or under any other Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties,
levies, imposts, deductions, charges or withholdings and all liabilities with respect thereto, excluding, in the case of each Lender or the Agent (as applicable), taxes imposed on or measured by its income and franchise taxes imposed on it by
the jurisdiction under the laws of which such Lender (or its Applicable Lending Office) or the Agent (as the case may be) is organized, located or doing business or any political subdivision thereof, and excluding in the case of any Foreign
Lender taxes arising as a result of such Lender’s failure to comply with Section 15.21 (all such non-excluded taxes, duties, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as
“Taxes”). If the Borrower or any Guarantor shall be required by law to deduct any Taxes from or in respect of any sum payable under any Loan Document to any Lender or the Agent (as applicable), (i) the sum payable shall be increased
as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 6.6) such Lender or the Agent (as applicable) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower or any Guarantor, as applicable, shall make such deductions, (iii) the Borrower or any Guarantor, as applicable, shall pay the full amount deducted to the relevant taxing authority or other
authority in accordance with applicable law and (iv) the Borrower or any Guarantor, as applicable, shall furnish to the Agent the original or a certified copy of a receipt evidencing payment thereof. 
  
 (b)    Stamp Taxes,
Etc.  In addition, the Borrower agrees to pay any and all present or future stamp or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under this Agreement or any
other Loan Document or from the execution or delivery of, or otherwise with respect to, this Agreement or any other Loan Document (“Other Taxes”). 
  
 (c)    Tax Indemnification.  THE BORROWER AGREES TO INDEMNIFY EACH
LENDER AND THE AGENT-RELATED PERSONS FOR THE FULL AMOUNT OF TAXES AND OTHER TAXES (INCLUDING ANY TAXES OR OTHER TAXES IMPOSED OR ASSERTED BY ANY JURISDICTION ON AMOUNTS PAYABLE UNDER THIS SECTION 6.6) PAID BY SUCH LENDER OR ANY AGENT-RELATED
PERSON (AS THE CASE MAY BE) AND ANY LIABILITY (INCLUDING PENALTIES, INTEREST AND EXPENSES) ARISING THEREFROM OR WITH RESPECT THERETO, OTHER THAN PENALTIES, ADDITIONS TO TAX, INTEREST AND EXPENSES ARISING AS A RESULT OF GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT ON THE PART OF SUCH LENDER OR AGENT-RELATED PERSON. 
  
 ARTICLE 7 
  
 Guaranties 
  
 Section 7.1    Guaranties.  Each
Domestic Subsidiary of the Borrower in existence as of the Closing Date and any other Subsidiary of the Borrower which at any time Guarantees the indebtedness, liabilities and obligations of the Borrower under the Note Agreement (or any Debt 

  

 44 

 
of the Borrower or any Domestic Subsidiary permitted under Section 11.1(l)) shall guarantee payment and performance of the Obligations pursuant to the
Subsidiary Guaranty. Additionally, the Borrower shall cause one or more of its other Domestic Subsidiaries (if any) to Guarantee (by means of the execution and delivery of a Joinder Agreement) payment and performance of the Obligations pursuant to
the Subsidiary Guaranty as follows: (a) in the event that any Domestic Subsidiary of the Borrower which is not a Guarantor has assets of a net book value in excess of $25,000,000 or gross revenue for the most recently completed four (4) Fiscal
Quarters in excess of $25,000,000, the Borrower shall cause such Domestic Subsidiary to become a Guarantor as provided by Section 7.2 and (b) in the event that the Borrower’s Domestic Subsidiaries which are not previously Guarantors
hereunder have assets, in the aggregate for all such Domestic Subsidiaries, of a net book value in excess of $100,000,000 or gross revenue for the most recently completed four (4) Fiscal Quarters in excess of $100,000,000, the Borrower shall cause
one or more of such Subsidiaries to become Guarantors as provided by Section 7.2 with the effect that the assets and gross revenue of the remaining Domestic Subsidiaries of the Borrower which are not Guarantors hereunder do not exceed
$75,000,000 as of such date. 
  
 Section
7.2    New Guarantors.  In the event that the Borrower is required to cause one or more of its Subsidiaries to become Guarantors as set forth in Section 7.1, such new Guarantor or Guarantors (as the case
may be) shall, contemporaneously with the delivery of the financial statements required by Section 10.1(a) and Section 10.1(b), execute and deliver to the Agent a Joinder Agreement pursuant to which each such Subsidiary of the Borrower
becomes a Guarantor under this Agreement and such other certificates and documentation, including the items otherwise required pursuant to Section 8.1, as the Agent may reasonably request. 
  
 ARTICLE 8 
  
 Conditions Precedent 
  
 Section 8.1    Conditions to Effectiveness.  This Agreement shall become effective on the date (the “Closing
Date”) each of the conditions precedent set forth in this Section 8.1 has been satisfied or waived with the consent of the Lenders (or, with respect to Sections 8.1(a)(xiii) and 8.1(b), with the consent of the Persons entitled
to receive payment). The effectiveness of this Agreement is subject to the conditions that the Agent shall have received all of the following in form and substance satisfactory to the Agent and each Lender, and (except for the Notes) in sufficient
copies for the Agent and each Lender: 
  
 (a)    Deliveries.  The Agent shall have received on or before the Closing Date all of the following, each dated (unless otherwise indicated) the Closing Date, in form and substance satisfactory to the
Agent and each of the Lenders: 
  
 (i)    Resolutions; Authority.  For each of the Borrower and the Guarantors, resolutions of its board of directors (or similar governing body) certified by its Secretary or an Assistant Secretary which
authorize its execution, delivery and performance of the Loan Documents to which it is or is to be a party; 
  
 (ii)    Incumbency Certificate.  For each of the Borrower and the Guarantors, a certificate of
incumbency certified by the Secretary or an Assistant 

  

 45 

 
Secretary certifying the names of its officers (A) who are authorized to sign the Loan Documents to which it is or is to be a party (including the
certificates contemplated herein) together with specimen signatures of each such officer and (B) who will, until replaced by other officers duly authorized for that purpose, act as its representatives for the purposes of signing documentation and
giving notices and other communications in connection with this Agreement and the transactions contemplated hereby; 
  
 (iii)    Organizational Documents.  For each of the Borrower and the Guarantors, the certificate of
incorporation, certificate of formation, certificate of limited partnership or other similar document certified by the Secretary of State of the state of its incorporation, formation or organization and dated a current date (or, in lieu thereof, a
certification from the Secretary of such Person that such document has not changed from a certified copy thereof previously delivered to the Agent); 
  
 (iv)    Bylaws.  For each of the Borrower and the Guarantors, the bylaws, operating agreement,
partnership agreement or similar agreement certified by its Secretary or an Assistant Secretary (or, in lieu thereof, a certification from the Secretary of such Person that such document has not changed from a certified copy thereof previously
delivered to the Agent); 
  
 (v)    Governmental Certificates.  For each of the Borrower and the Guarantors, certificates (dated within thirty (30) days of the Closing Date) of the appropriate Governmental Authorities of the state
of incorporation, formation or organization as to its existence and, to the extent applicable, good standing; 
  
 (vi)    Credit Agreement.  This Agreement, together with all Exhibits and other attachments (if any),
duly executed by the Borrower, the Agent, the L/C Issuer and the Lenders; 
  
 (vii)    Acknowledgment of Intercreditor Agreement.  An Acknowledgment of Intercreditor Agreement duly executed by each Lender that is not a party thereto immediately prior to the
Closing Date; 
  
 (viii)    Notes.  The Revolving Notes and the Swingline Note executed by the Borrower; 
  
 (ix)    Subsidiary Guaranty.  A written confirmation of the Subsidiary Guaranty executed by each of
the Guarantors party thereto prior to the date hereof and a Joinder Agreement from each Domestic Subsidiary not a party thereto prior to the date hereof; 
  
 (x)    Disclosure Letter.  The Disclosure Letter, together with all Schedules and any other
attachments (if any), duly executed by the Borrower in form and substance acceptable to the Agent; 
  

 46 

 (xi)    Certificate of Compliance.  A certificate of
the chief financial officer or the Vice President, Finance of the Borrower setting forth a calculation of the financial covenants in Section 12.1 and Section 12.2 as of the Borrower’s Fiscal Quarter ended October 31, 2004 (using
the Borrower’s current lease accounting) and stating that the conditions in Section 8.2 have been satisfied; 
  
 (xii)    Consents.  Copies of all material consents or waivers necessary for the execution, delivery
and performance by the Borrower and each Guarantor of the Loan Documents to which it is a party, as the Agent may require; 
  
 (xiii)    Opinions of Counsel.  Satisfactory opinions of legal counsel to the Borrower and the
Guarantors as to such matters as the Agent may request; and 
  
 (xiv)    Fees.  Payment of all fees payable to the Lenders including those fees set forth in the Fee Letter; 
  
 (b)    Attorney Costs.  The Attorney Costs referred to in Section
15.1 for which statements have been presented shall have been paid in full (or shall be paid with the proceeds of the initial advance under the Loan made on the Closing Date); 
  
 (c)    No Material Adverse Change.  As of the Closing Date, no material
adverse change shall have occurred with respect to (i) the business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrower (individually) or the Borrower and its Subsidiaries (taken
as a whole) since February 1, 2004 or (ii) in the facts and information regarding such Persons disclosed to the Agent and the Lenders prior to the Closing Date; and 
  
 (d)    Additional Documentation.  The Agent and the Lenders shall have
received such additional approvals, opinions or other documentation as the Agent, the L/C Issuer or any Lender may reasonably request. 
  
 Section 8.2    All Advances.  The obligation of each Lender to make any advance under the Loan (including the initial
advance) and the obligation of the L/C Issuer to make any L/C Credit Extension (including the initial L/C Credit Extension) is subject to the following additional conditions precedent: 
  
 (a)    No Default.  No Default shall have occurred and be continuing,
or would result from such Loan; 
  
 (b)    Representations and Warranties.  All of the representations and warranties contained in Article 9 and in the other Loan Documents shall be true and correct in all material respects on and
as of the date of such Loan or L/C Credit Extension with the same force and effect as if such representations and warranties had been made on and as of such date except to the extent that such representations and warranties relate specifically to
another date; and 
  
 (c)    No Material Adverse Change.  No material adverse change shall have occurred with respect to the business, assets, liabilities (actual or contingent), operations, 

  

 47 

 
condition (financial or otherwise) or prospects of the Borrower (individually) or the Borrower and its Subsidiaries (taken as a whole) since February 1,
2004. 
  
 Each notice of borrowing and request for an L/C Credit Extension by the
Borrower hereunder shall constitute a representation and warranty by the Borrower that the conditions precedent set forth in this Section 8.2 have been satisfied (both as of the date of such notice and, unless the Borrower otherwise notifies
the Agent prior to the date of such borrowing or L/C Credit Extension, as applicable, as of the date of such borrowing or L/C Credit Extension). 
  
 ARTICLE 9 
  
 Representations and Warranties 
  
 To induce the Agent and the Lenders to enter into this Agreement, the Borrower represents and warrants that the following statements are, and after giving effect to the transactions contemplated hereby will be, true,
correct and complete: 
  
 Section
9.1    Existence, Power and Authority. 
  
 (a)    The Borrower and each of its Subsidiaries: (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization; (ii) has all requisite power
and authority to own its assets and carry on its business as now being or as proposed to be conducted; and (iii) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and where
failure to so qualify would have a Material Adverse Effect. 
  
 (b)    The Borrower and each of its Subsidiaries has the power and authority to execute, deliver and perform its respective obligations under the Loan Documents to which it is or may become a
party. 
  
 Section 9.2    Financial
Condition. 
  
 (a)    Financial Statements.  The Borrower has delivered to the Agent and each Lender (i) audited financial statements of the Borrower and its Subsidiaries as of and for the Fiscal Years ended February
3, 2002, February 2, 2003 and February 1, 2004 and (ii) unaudited financial statements of the Borrower and its Subsidiaries as of and for the portion of the current (as of the date hereof) Fiscal Year through the period ended October 31, 2004.
Except as set forth on Schedule 9.2 to the Disclosure Letter, such financial statements have been prepared in accordance with GAAP (subject to year-end audit adjustments and the absence of footnotes in the case of the financial statements
described in clause (ii) preceding), and present fairly the financial condition of the Borrower and its Subsidiaries as of the respective dates indicated therein and the results of operations for the respective periods indicated therein.
Neither the Borrower nor any of its Subsidiaries has any material contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments except as referred to or
reflected in the financial statements referred to in clause (ii) preceding. Since the date of the latest audited financial statements referred to in clause (i) preceding, no material adverse change has occurred with respect to the
business, assets, liabilities (actual or contingent), 

  

 48 

 
operations, condition (financial or otherwise) or prospects of the Borrower (individually) or of the Borrower and its Subsidiaries (taken as a whole).

  
 (b)    Projections.  The projections delivered by the Borrower to the Agent and included in the Offering Memorandum have been prepared by the Borrower in light of the past operation of the business of
the Borrower and its Subsidiaries. All such projections represent, as of the date thereof, a good faith estimate by the Borrower and its senior management of the financial conditions and performance of the Borrower and its Subsidiaries based on
assumptions believed to be reasonable at the time made (provided that the performance of the Borrower and its Subsidiaries may vary from such projections). 
  
 Section 9.3    Corporate and Similar Action; No Breach.  The execution, delivery and
performance by the Borrower and each of its Subsidiaries of the Loan Documents to which it is or may become a party, compliance with the terms and provisions thereof, the issuance of Letters of Credit, the borrowings hereunder and the use of
proceeds thereof have been duly authorized by all requisite action on the part of the Borrower and each of its Subsidiaries, respectively, and do not and will not (a) violate or conflict with, or result in a breach of, or require any consent under
(i) the articles of incorporation, bylaws or other organizational documents (as applicable) of such Person, (ii) any applicable law, rule or regulation or any order, writ, injunction or decree of any Governmental Authority or arbitrator or (iii) any
material agreement or instrument to which such Person is a party or by which any of them or any of their property is bound or subject or (b) constitute a default under any such material agreement or instrument, or result in the creation or
imposition of any Lien upon any of the revenues or assets of such Person. 
  
 Section 9.4    Operation of Business.  Each of the Borrower and its Subsidiaries possesses all material licenses, Permits, franchises, patents, copyrights, trademarks and
tradenames or rights thereto necessary to conduct its business substantially as now conducted and as presently proposed to be conducted, and neither the Borrower nor any of its Subsidiaries is in violation of any valid rights of others with respect
to any of the foregoing where such violation could be expected to have a Material Adverse Effect. Except as set forth in Schedule 9.4 to the Disclosure Letter, since February 1, 2004, the Borrower and its Subsidiaries have conducted their
respective businesses only in the ordinary and usual course. 
  
 Section 9.5    Litigation and Judgments.  Except as set forth in Schedule 9.5 to the Disclosure Letter, there is no action, suit, investigation or proceeding before or by any Governmental
Authority or arbitrator pending or threatened against or affecting the Borrower or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect. As of the Closing Date, except as set forth in Schedule 9.5 to
the Disclosure Letter, there are no outstanding judgments against the Borrower or any of its Subsidiaries in excess of $1,000,000. 
  
 Section 9.6    Rights in Properties; Liens.  The Borrower and each of its Subsidiaries has good title to or valid
leasehold interests in its respective Properties, real and personal, and none of such Properties or leasehold interests of the Borrower or any of its Subsidiaries is subject to any Lien, except as permitted by Section 11.2. 
  

 49 

 Section 9.7    Enforceability.  The Loan Documents to which the
Borrower or any Subsidiary of the Borrower is a party, when executed and delivered, shall constitute the legal, valid and binding obligations of the Borrower or such Subsidiary, as applicable, enforceable against such Person in accordance with their
respective terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights and general principles of equity. 
  
 Section 9.8    Approvals.  No authorization, approval or consent of, and no filing or
registration with, any Governmental Authority or other third party is or will be necessary for the execution, delivery or performance by the Borrower or any Subsidiary of the Borrower of the Loan Documents to which it is or may become a party,
except where the failure to obtain any such authorization, approval or consent could not reasonably be expected to have a Material Adverse Effect, or for the validity or enforceability thereof. 
  
 Section 9.9    Debt.  Neither the
Borrower nor any of its Subsidiaries has any Debt, except as set forth in Schedule 9.9 to the Disclosure Letter or as otherwise permitted by Section 11.1. 
  
 Section 9.10    Taxes.  Except as set forth in Schedule 9.10 to the Disclosure
Letter or, after the Closing Date, matters which do not violate Section 10.4, the Borrower and each Subsidiary of the Borrower have filed all federal and other material tax returns required to be filed, including all income, franchise and
employment tax returns, and all material property and sales tax returns, and have paid all of their respective liabilities for taxes, assessments, governmental charges and other levies shown as due and payable on such returns and all other material
liabilities for taxes, assessments, governmental charges and other levies that are due and payable other than, in each case, those being contested in good faith by appropriate proceedings diligently pursued for which adequate reserves have been
established in accordance with GAAP. Except as set forth in Schedule 9.10 to the Disclosure Letter or, after the Closing Date, matters which do not violate Section 10.4, there is no pending investigation of the Borrower or any
Subsidiary of the Borrower by any taxing authority with respect to any liability for tax or of any pending but unassessed tax liability of the Borrower or any Subsidiary of the Borrower. 
  
 Section 9.11    Margin Securities.  Neither the Borrower nor any of its Subsidiaries is
engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying margin stock (within the meaning of Regulation U or Regulation T or X of the Board of Governors of the Federal
Reserve System), and no part of the proceeds of the Loan will be used to buy or carry any margin stock or to extend credit to others for the purpose of buying or carrying margin stock. 
  
 Section 9.12    ERISA.  With respect to each Plan, the Borrower and each Subsidiary of
the Borrower is in compliance with all applicable provisions of ERISA. Neither a Reportable Event nor a Prohibited Transaction has occurred and is continuing with respect to any Plan. No notice of intent to terminate a Plan has been filed, nor has
any Plan been terminated. As of the Closing Date, no circumstances exist which constitute grounds entitling the PBGC to institute proceedings to terminate, or appoint a trustee to administer, a Plan, nor has the PBGC instituted any such proceedings.
Neither the Borrower, any of its Subsidiaries nor any ERISA Affiliate has completely or partially withdrawn from a Multiemployer Plan. The Borrower, each Subsidiary 

  

 50 

 
of the Borrower and each ERISA Affiliate have met their minimum funding requirements under ERISA with respect to each Plan. Except as set forth in
Schedule 9.12 to the Disclosure Letter, the present value of all vested benefits under each Plan do not exceed the fair market value of all Plan assets allocable to such benefits, as determined on the most recent valuation date of the Plan
and in accordance with ERISA. Neither the Borrower, any of its Subsidiaries nor any ERISA Affiliate has any outstanding liability to the PBGC under ERISA (other than liability for the payment of PBGC premiums in the ordinary course of business).

  
 Section
9.13    Disclosure.  All factual information furnished by or on behalf of the Borrower or any Subsidiary of the Borrower to the Agent or any Lender for purposes of or in connection with this Agreement, the other
Loan Documents or any transaction contemplated herein or therein is, and all other such factual information hereafter furnished by or on behalf of the Borrower or any Subsidiary of the Borrower to the Agent or any Lender will be, true and accurate
in all material respects on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information not misleading in any material respect at such time in light of the
circumstances under which such information was provided (it being recognized by the Lenders that projections and estimates as to future events are not to be viewed as facts and that the actual results during the period or periods covered by any such
projections and estimates may differ from projected or estimated results). 
  
 Section 9.14    Subsidiaries; Capitalization.  As of the Closing Date, the Borrower has no other Subsidiaries other than those listed in Schedule 9.14 to the Disclosure
Letter As of the Closing Date, Schedule 9.14 to the Disclosure Letter sets forth the jurisdiction of incorporation or organization of the Borrower and its Subsidiaries, the percentage of the Borrower’s ownership of the outstanding Voting
Stock of each Subsidiary of the Borrower, and the authorized, issued and outstanding Capital Stock of the Borrower and each Subsidiary of the Borrower. All of the outstanding Capital Stock of the Borrower and its Subsidiaries has been validly
issued, is fully paid, is nonassessable and has not been issued in violation of any preemptive or similar rights. As of the Closing Date, except as disclosed in Schedule 9.14 to the Disclosure Letter, there are (a) no outstanding
subscriptions, options, warrants, calls or rights (including preemptive rights) to acquire, and no outstanding securities or instruments convertible into, Capital Stock of the Borrower or any of its Subsidiaries and (b) no shareholder agreements,
voting trusts or similar agreements in effect and binding on any shareholder of (i) to the Borrower’s knowledge, the Borrower or any of its Capital Stock or (ii) any Subsidiary of the Borrower or any of their respective Capital Stock. All
shares of Capital Stock of the Borrower and its Subsidiaries were issued in compliance with all applicable state and federal securities laws. 
  
 Section 9.15    Material Agreements.  Except as set forth in Schedule 9.15 to the Disclosure Letter, neither
the Borrower nor any of its Subsidiaries is a party to any indenture, loan or credit agreement, or to any lease or other agreement or instrument, or subject to any charter or corporate restriction that could reasonably be expected to have a Material
Adverse Effect. Neither the Borrower nor any of its Subsidiaries is in default, or has knowledge of facts or circumstances that with the giving of notice or passage of time or both could be expected to result in a default, in any respect in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument (including any indenture, loan or credit agreement, or any lease or other similar agreement or instrument) to which it
is a party where such default could be expected to cause a Material Adverse Effect. 
  

 51 

 Section 9.16    Compliance with Laws.  Neither the Borrower nor any
of its Subsidiaries is in violation of any law, rule, regulation, order or decree of any Governmental Authority or arbitrator except for violations which could not be expected to have a Material Adverse Effect. 
  
 Section 9.17    Investment Company
Act.  Neither the Borrower nor any of its Subsidiaries is an “investment company” within the meaning of the Investment Company Act of 1940. 
  
 Section 9.18    Public Utility Holding Company Act.  Neither the Borrower nor any of
its Subsidiaries is a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of a “holding company” or a “public utility” within the meaning of the Public
Utility Holding Company Act of 1935. 
  
 Section
9.19    Environmental Matters. 
  
 Except as disclosed on Schedule 9.19 to the Disclosure Letter: 
  
 (a)    to the Borrower’s knowledge, the Borrower, each Subsidiary of the Borrower, and all of their respective
properties, assets and operations are in compliance with all Environmental Laws; neither the Borrower nor any of its Subsidiaries has knowledge of, nor has the Borrower or any Subsidiary of the Borrower received notice of, any past, present or
future condition, event, activity, practice or incident which interferes with or prevents the compliance or continued compliance of the Borrower or its Subsidiaries with all Environmental Laws; 
  
 (b)    the Borrower and its Subsidiaries
have obtained and maintained, and are in material compliance with, all material Permits, licenses and authorizations that are required under applicable Environmental Laws; 
  
 (c)    except in compliance in all material respects with applicable Environmental Laws,
during the course of the Borrower’s or any of its Subsidiaries’ ownership of or operations on any real Property, there has been no generation, treatment, recycling, storage or disposal of hazardous waste, as that term is defined in 40 CFR
Part 261 or any state equivalent, use of underground storage tanks or surface impoundments, use of asbestos-containing materials or use of polychlorinated biphenyls (PCB) in hydraulic oils, electrical transformers or other equipment that could
reasonably be expected to have a Material Adverse Effect, and the use which the Borrower and its Subsidiaries make and intend to make of their respective properties and assets will not result in the use, generation, storage, transportation,
accumulation, disposal or Release of any Hazardous Material on, in or from any of their properties or assets that could reasonably be expected to have a Material Adverse Effect; 
  
 (d)    neither the Borrower, any of its Subsidiaries, nor any of their respective
currently or previously owned or leased Properties or operations is subject to any outstanding or, to their knowledge, threatened order from or agreement with any Governmental Authority or other Person or subject to any judicial or administrative
proceeding with respect to (i) failure to comply with Environmental Laws, (ii) Remedial 

  

 52 

 
Action or (iii) any Environmental Liabilities arising from a Release or threatened Release; 
  
 (e)    there are no conditions or circumstances associated with the currently or
previously owned or leased Properties or operations of the Borrower or any Subsidiary of the Borrower that could reasonably be expected to result in any Environmental Liabilities or to have a Material Adverse Effect; 
  
 (f)    neither the Borrower nor any of
its Subsidiaries is or operates a treatment, storage or disposal facility requiring a permit under the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the regulations thereunder or any comparable provision of state law, and
except as would not reasonably be expected to have a Material Adverse Effect, each of the Borrower and each Subsidiary of the Borrower is in compliance with all applicable financial responsibility requirements of all applicable Environmental Laws;

  
 (g)    neither the
Borrower nor any of its Subsidiaries has filed or failed to file any notice required under applicable Environmental Law reporting an unauthorized Release; and 
  

(h)    no Lien arising under any Environmental Law has attached to any property or revenues of the Borrower or any
Subsidiary of the Borrower. 
  
 Section
9.20    Broker’s Fees.  Except as disclosed on Schedule 9.20 to the Disclosure Letter, no broker’s or finder’s fee, commission or similar compensation will be payable by the Borrower or any
Subsidiary of the Borrower with respect to the transactions contemplated by this Agreement. 
  
 Section 9.21    Employee Matters.  Except as set forth on Schedule 9.21 to the Disclosure Letter, as of the Closing Date (a) neither the Borrower nor any of its
Subsidiaries, nor any of their respective employees, is subject to any collective bargaining agreement, (b) no petition for certification or union election is pending with respect to the employees of the Borrower or any Subsidiary of the Borrower
and no union or collective bargaining unit has sought such certification or recognition with respect to the employees of the Borrower or any Subsidiary of the Borrower and (c) there are no strikes, slowdowns, work stoppages or controversies pending
or, to the best knowledge of the Borrower and the Subsidiaries of the Borrower after due inquiry, threatened between the Borrower or any Subsidiary of the Borrower and its respective employees. 
  
 Section 9.22    Solvency.  Each of the
Borrower and the Subsidiary Guarantors, individually and on a consolidated basis, is Solvent. 
  
 ARTICLE 10 
  
 Affirmative
Covenants 
  
 The Borrower covenants and agrees that, as long
as the Obligations or any part thereof are outstanding or any Lender has any Commitment hereunder or any Letter of Credit shall 

  

 53 

 
remain outstanding (unless such Letter of Credit is Cash Collateralized in full), it will perform and observe the following covenants: 
  
 Section 10.1    Reporting
Requirements.  The Borrower will furnish to the Agent and each Lender: 
  
 (a)    Annual Financial Statements.  As soon as available, and in any event within ninety (90) days
after the end of each Fiscal Year of the Borrower: (i) a copy of the annual audit report of the Borrower for such Fiscal Year containing, on a consolidated basis, a balance sheet and statements of income, retained earnings and cash flows as at the
end of such Fiscal Year and for the Fiscal Year then ended, in each case setting forth in comparative form the figures for the preceding Fiscal Year, all in reasonable detail and audited and certified on an unqualified basis by Deloitte & Touche
LLP or by other independent certified public accountants of recognized standing selected by the Borrower and reasonably acceptable to the Agent, to the effect that such report has been prepared in accordance with GAAP; and (ii) a copy of the annual
unaudited report of the Borrower and its Subsidiaries for such Fiscal Year containing, on a consolidating basis balance sheets and statements of income, retained earnings and cash flows as at the end of such Fiscal Year and for the Fiscal Year then
ended, in each case setting forth in comparative form the figures for the preceding Fiscal Year, and in reasonable detail certified by the chief financial officer or Vice President, Finance of the Borrower to have been prepared in accordance with
GAAP (except for the absence of footnotes and subject to normal year-end audit adjustments) and to fairly present the financial condition and results of operation of the Borrower and its Subsidiaries, on a consolidating basis at the date and for the
Fiscal Year then ended; 
  
 (b)    Quarterly Financial Statements.  As soon as available, and in any event within forty-five (45) days after the end of each of the first three Fiscal Quarters of each Fiscal Year of the Borrower,
beginning with the Fiscal Quarter ending May 1, 2005, a copy of an unaudited financial report of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter and for the portion of the Fiscal Year then ended containing, on a consolidated
basis, a balance sheet and statements of income, retained earnings and cash flows, in each case setting forth in comparative form the figures for the corresponding period of the preceding Fiscal Year, all in reasonable detail certified by the chief
financial officer or Vice President, Finance of the Borrower to have been prepared in accordance with GAAP and to fairly present the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis, at the
date and for the periods indicated therein, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (c)    Compliance Certificate.  As soon as available, and in any event accompanying the financial
statements delivered in accordance with Section 10.1(a) and Section 10.1(b), a Compliance Certificate, together with schedules setting forth the calculations supporting the computations therein; 
  
 (d)    Notice of Litigation,
Etc.  Promptly after receipt by the Borrower or any Subsidiary of the Borrower of notice of the commencement thereof, notice of all actions, 

  

 54 

 
suits and proceedings by or before any Governmental Authority or arbitrator affecting the Borrower or any Subsidiary of the Borrower which, if determined
adversely to the Borrower or such Subsidiary of the Borrower, could reasonably be expected to have a Material Adverse Effect; 
  
 (e)    Notice of Default.  As soon as possible and in any event within two (2) Business Days after
the chief executive officer, president, chief financial officer, any vice president, secretary, assistant secretary, treasurer or any assistant treasurer of the Borrower has knowledge of the occurrence of a Default, a written notice setting forth
the details of such Default and the action that the Borrower has taken and proposes to take with respect thereto; 
  
 (f)    ERISA.  As soon as possible and in any event within thirty (30) days after the Borrower or any
Subsidiary of the Borrower knows, or has reason to know, that 
  
 (i)    any Termination Event with respect to a Plan has occurred or will occur, 
  
 (ii)    the aggregate present value of the Unfunded Vested Accrued Benefits under all Plans is equal to an amount in
excess of $0 or 
  
 (iii)    the Borrower or any Subsidiary of the Borrower is in “default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan required by reason of the Borrower’s or
any of its Subsidiaries’ complete or partial withdrawal (as described in Section 4203 or 4205 of ERISA) from such Multiemployer Plan, 
  
 the Borrower will provide the Agent and the Lenders with a certificate of its chief financial officer or Vice President, Finance setting forth the details
of such event and the action which is proposed to be taken with respect thereto, together with any notice or filing which may be required by the PBGC or any other Governmental Authority with respect to such event; 
  
 (g)    Notice of Material Adverse
Effect.  As soon as possible and in any event within four (4) Business Days of the discovery of any event or condition that could reasonably be expected to have a Material Adverse Effect, notice of the same; 
  
 (h)    Proxy Statements, Periodic
Reporting, Etc.  As soon as available, one copy of each financial statement, report, notice or proxy statement sent by the Borrower or any Subsidiary of the Borrower to its stockholders generally and one copy of each regular, periodic
or special report, registration statement or prospectus filed by the Borrower or any Subsidiary of the Borrower with any securities exchange or the Securities and Exchange Commission or any successor agency; 
  
 (i)    Intercompany
Contracts.  Promptly upon entering into any such arrangement or contract (to the extent permitted by Section 11.7), copies or detailed descriptions of all tax sharing, cost allocation, overhead attribution and any similar

  

 55 

 
contracts or arrangements between the Borrower and any of its Affiliates at any time existing; and 
  
 (j)    General
Information.  Promptly, such other information concerning the Borrower or any Subsidiary of the Borrower as the Agent or any Lender may from time to time reasonably request. 
  
 Documents required to be delivered pursuant to Section 10.1(a), (b) or (h) (to the extent any such
documents are included in materials otherwise filed with the Securities and Exchange Commission) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents,
or provides a link thereto, on the Borrower’s website on the Internet at the website address listed on Schedule 15.12 or (ii) on which such documents are posted on the Borrower’s behalf on IntraLinks/IntraAgency or another relevant
website, if any, to which each Lender and the Agent have access (whether a commercial, third-party website or whether sponsored by the Agent); provided that (i) the Borrower shall deliver paper copies of such documents to the Agent or any
Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Agent or such Lender and (ii) the Borrower shall notify (which may be by facsimile or electronic mail) the Agent
and each Lender of the posting of any such documents and provide to the Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything to the contrary contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance Certificates required by Section 10.1(c) to the Agent and each of the Lenders. Except for such Compliance Certificates, the Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents. 
  
 The Borrower hereby acknowledges that (a) the Agent and/or the Arranger will make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the Borrower or its securities) (each, a “Public Lender”). The Borrower hereby agrees that (w) all Borrower Materials that are to be made available to Public
Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Agent, the Arranger, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of
United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Confidential Information, they shall be treated as set forth in Section 15.20); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor;” and (z) the Agent and the Arranger shall be entitled to treat any Borrower Materials that are not marked
“PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.” 
  

 56 

 Section 10.2    Maintenance of Existence; Conduct of
Business.  Except as permitted by Section 11.3, the Borrower will, and will cause each Subsidiary of the Borrower to, preserve and maintain (a) its corporate existence and (b) all of its leases, privileges, Permits, franchises,
qualifications and rights that are necessary in the ordinary conduct of its business. The Borrower will, and will cause each Subsidiary of the Borrower to, conduct its business in an orderly and efficient manner in accordance with good business
practices. 
  
 Section 10.3    Maintenance
of Properties.  Except as permitted by Section 11.3, the Borrower will, and will cause each Subsidiary of the Borrower to, maintain, keep and preserve all of its material Properties necessary in the conduct of its business in
good working order and condition, ordinary wear and tear excepted. 
  
 Section 10.4    Taxes and Claims.  The Borrower will, and will cause each Subsidiary of the Borrower to, pay or discharge at or before maturity or before becoming delinquent (a) all taxes, levies,
assessments and governmental charges imposed on it or its income or profits or any of its property and (b) all lawful claims for labor, material and supplies, which, if unpaid, might become a Lien upon any of its property; provided that
neither the Borrower nor any Subsidiary of the Borrower shall be required to pay or discharge any tax, levy, assessment or governmental charge or charge for labor, material and supplies (i) which is being contested in good faith by appropriate
proceedings diligently pursued, and for which adequate reserves in accordance with GAAP have been established and (ii) if the failure to pay the same would not result in a Lien on the Property of the Borrower or a Subsidiary of the Borrower other
than a Permitted Lien. 
  
 Section
10.5    Insurance.  To the extent reasonably available at commercially reasonable expense, the Borrower will, and will cause each of its Subsidiaries to, keep insured by financially sound and reputable insurers
that are not Affiliates of the Borrower all Property of a character usually insured by responsible businesses engaged in the same or a similar business similarly situated against loss or damage of the kinds and in the amounts customarily insured
against by such corporations or entities and carry such other insurance as is usually carried by such businesses. 
  
 Section 10.6    Inspection Rights.  The Borrower will, and will cause each of its Subsidiaries to, permit
representatives and agents of the Agent and each Lender, during normal business hours and upon reasonable notice to the Borrower, to examine, copy and make extracts from the Borrower’s or any of such Subsidiaries’ books and records, to
visit and inspect the Borrower’s or any of such Subsidiaries’ Properties and to discuss the business, operations and financial condition of the Borrower or any of its Subsidiaries with the officers and independent certified public
accountants of such Person. The Borrower will, and will cause each of its Subsidiaries to, authorize its accountants in writing (with a copy to the Agent) to comply with this Section. The Agent or its representatives may, at any time and from time
to time at the Borrower’s expense, conduct field exams for such purposes as the Agent or the Required Lenders may reasonably request. 
  
 Section 10.7    Keeping Books and Records.  The Borrower will, and will cause each of its Subsidiaries to, maintain
proper books of record and account in which full, true and correct entries in conformity with GAAP shall be made of all dealings and transactions in relation to its business and activities. 
  

 57 

 Section 10.8    Compliance with Laws.  The Borrower will, and will
cause each of its Subsidiaries to, comply in all material respects with all applicable laws (including all Environmental Laws, ERISA, the Code, Regulation U and Regulations T and X of the Board of Governors of the Federal Reserve System), rules,
regulations, orders and decrees of a material nature of any Governmental Authority or arbitrator other than any such laws, rules, regulations, orders and decrees contested by appropriate actions or proceedings diligently pursued, if adequate
reserves in conformity with GAAP and satisfactory to the Agent are established with respect thereto and except for violations which could not reasonably be expected to have a Material Adverse Effect. 
  
 Section 10.9    Compliance with
Agreements.  The Borrower will, and will cause each of its Subsidiaries to, comply with all agreements, contracts and instruments binding on it or affecting its properties or business other than such noncompliance which could not
reasonably be expected to have a Material Adverse Effect. 
  
 Section 10.10    Further Assurances. 
  
 (a)    Further Assurance.  The Borrower will, and will cause each of its Subsidiaries to, execute and/or deliver pursuant to this clause (a) such further documentation and
take such further action as may be reasonably requested by the Required Lenders to carry out the provisions and purposes of the Loan Documents. 
  
 (b)    Subsidiary Joinder.  The Borrower shall, and shall cause each Domestic Subsidiary of the
Borrower to, execute and deliver to the Agent such documentation, including a Joinder Agreement, as the Agent may require to cause each such Domestic Subsidiary to become a party to the Subsidiary Guaranty as required by Article 7.

  
 Section
10.11    ERISA.  With respect to each Plan, the Borrower will, and will cause each of its Subsidiaries to, comply with all minimum funding requirements and all other material requirements of ERISA so as not to
give rise to any liability in excess of $5,000,000. 
  
 ARTICLE 11

  
 Negative Covenants 
  
 The Borrower covenants and agrees that, as long as the Obligations or any
part thereof are outstanding or any Lender has any Commitment hereunder or any Letter of Credit shall remain outstanding (unless such Letter of Credit is Cash Collateralized in full), the Borrower will perform and observe the following covenants:

  
 Section
11.1    Debt.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, incur, create, assume or permit to exist any Debt, except: 
  
 (a)    Debt to the Lenders pursuant to
the Loan Documents; 
  
 (b)    Debt described on Schedule 9.9 to the Disclosure Letter and any extensions, renewals or refinancings of such existing Debt so long as (i) the principal amount of such Debt after such renewal, extension or
refinancing shall not exceed the 

  

 58 

 
principal amount of such Debt which was outstanding immediately prior to such renewal, extension or refinancing and (ii) such Debt shall not be secured by
any assets other than assets securing such Debt, if any, prior to such renewal, extension or refinancing; 
  
 (c)    Debt of a Subsidiary Guarantor owed to the Borrower or another Subsidiary Guarantor; provided that such
Debt must according to its terms be fully subordinate in all respects to any of such Subsidiary Guarantor’s indebtedness, liabilities or obligations to the Agent and the Lenders pursuant to any Loan Document; 
  
 (d)    Guarantees and other Debt
incurred in the ordinary course of business with respect to surety and appeal bonds, performance and return-of-money bonds, banker’s acceptances and other similar obligations including those of the type described in Section 11.2(f);

  
 (e)    Debt of the
Borrower or any Subsidiary of the Borrower constituting purchase money Debt (including Capital Lease Obligations) and secured by purchase money Liens permitted by Section 11.2(g), such Debt, in the aggregate, not to exceed at any time an
amount equal to fifteen percent (15.0%) of the Borrower’s Tangible Net Worth; 
  
 (f)    Debt of the Borrower or any Subsidiary of the Borrower of the type described in clause (l) of the
definition of Debt, such Debt, in aggregate principal or principal equivalent amount, not to exceed at any time an amount equal to twenty percent (20.0%) of the Borrower’s Tangible Net Worth; 
  
 (g)    Debt constituting obligations to
reimburse worker’s compensation insurance companies for claims paid by such companies on behalf of the Borrower or any Subsidiary of the Borrower in accordance with the policies issued to the Borrower or any such Subsidiary; 
  
 (h)    Debt secured by the Liens
permitted by Section 11.2(d) and Section 11.2(e); 
  
 (i)    unsecured Debt arising under, created by and consisting of Hedge Agreements, provided, (i) such Hedge Agreements shall have been entered into for the purpose of hedging actual risk
and not for speculative purposes and (ii) that each counterparty to such Hedge Agreement shall be a Lender (or an Affiliate thereof) or shall be rated at least AA- by Standard and Poor’s Rating Service or Aa3 by Moody’s Investors Service,
Inc.; 
  
 (j)    Debt arising
from endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business of the Borrower or a Subsidiary of the Borrower; 
  
 (k)    Debt consisting of commercial letters of credit and reimbursement obligations
therefor (and Guarantees of such reimbursement obligations by Subsidiaries of the Borrower) incurred in the ordinary course of business; and 
  

 59 

 (l)    In addition to the Debt described in the foregoing clauses
(a) through (k), Debt (including with respect to standby letters of credit) which does not exceed twenty five percent (25%) of the Borrower’s Tangible Net Worth in aggregate principal amount at any time outstanding. 
  
 Section 11.2    Limitation on Liens and Restrictions
on Subsidiaries.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, incur, create, assume or permit to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired,
except the following: 
  
 (a)    existing Liens described on Schedule 11.2 to the Disclosure Letter and any extensions, renewals or refinancings of the Debt secured by such Liens as permitted under Section 11.1(b), provided
that (i) no such Lien is expanded to cover any additional Property (other than after-acquired title in or on such Property and proceeds of the existing collateral) after the Closing Date and (ii) no such Lien is spread to secure any additional Debt
after the Closing Date; 
  
 (b)    Liens in favor of the Agent, for the benefit of the Agent and the holders of the Obligations; 
  
 (c)    encumbrances consisting of easements, zoning restrictions or other restrictions on the use of real Property
that do not (individually or in the aggregate) materially detract from the value of the real Property encumbered thereby or materially impair the ability of the Borrower or such Subsidiary to use such real Property in its business; 
  
 (d)    Liens for taxes, assessments or
other governmental charges (but excluding environmental Liens or Liens under ERISA) that are not delinquent or which are being contested in good faith and for which adequate reserves have been established in accordance with GAAP; 
  
 (e)    contractual or statutory Liens of
mechanics, materialmen, warehousemen, carriers, landlords or other similar Liens securing obligations that are not overdue or are being contested in good faith by appropriate proceedings diligently pursued and for which adequate reserves have been
established in accordance with GAAP and are incurred in the ordinary course of business; 
  
 (f)    Liens resulting from deposits to secure payments of worker’s compensation, unemployment insurance or other
social security programs or to secure the performance of tenders, statutory obligations, leases, insurance contracts, surety and appeal bonds, bids and other contracts incurred in the ordinary course of business (other than for payment of Debt);

  
 (g)    Liens for purchase
money obligations and Liens securing Capital Lease Obligations; provided that (i) the Debt secured by any such Lien is permitted under Section 11.1(e) and (ii) any such Lien encumbers only the Property so purchased or leased and the
products, proceeds (including insurance proceeds), accessions, replacements, substitutions and improvements thereto; 
  

 60 

 (h)    any attachment or judgment Lien not constituting an Event of
Default; 
  
 (i)    any
interest or title of a licensor, lessor or sublessor under any license or lease and any interest or title of a licensee, lessee or sublessee under any license, cross-license or lease in any event entered into in the ordinary course of business and
not otherwise prohibited by the terms of this Agreement; 
  
 (j)    Liens against equipment arising from precautionary UCC financing statement filings regarding operating leases entered into by such Person in the ordinary course of business; 
  
 (k)    Liens in favor of financial
institutions arising as a matter of law or otherwise and encumbering deposits of cash or financial assets (including the right of set-off) held by such financial institutions in the ordinary course of business in connection with deposit or
securities accounts, provided that no such account is (x) a dedicated cash collateral account and/or is subject to restrictions against access in excess of those set forth by regulations promulgated by the Federal Reserve Board and (y)
intended by the Borrower or any Subsidiary to provide collateral to the applicable financial institution; 
  
 (l)    Liens (including statutory and common law liens) in or against goods, documents or instruments, including
proceeds (including insurance proceeds), products, accessions, substitutions and replacements related thereto, related to or arising out of commercial or documentary letter of credit transactions, to the extent that such letter of credit
transactions constitute permitted Debt under Section 11.1(k); 
  
 (m)    Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties incurred in the ordinary course of business in connection with the
importation of goods, which customs duties are not overdue; and 
  
 (n)    Liens securing Debt in an aggregate principal amount outstanding at any time not exceeding $5,000,000. 
  
 Section 11.3    Mergers, Etc.  The Borrower will not, nor will it permit any Subsidiary
of the Borrower to, become a party to a merger or consolidation or purchase or otherwise acquire all or a substantial part of the business or Property of any Person or all or a substantial part of the business or Property of a division or branch of
a Person or a majority interest in the Capital Stock of any Person, or wind up, dissolve or liquidate itself; provided that notwithstanding the foregoing or any other provision of this Agreement as long as no Default exists or would result
therefrom and provided the Borrower gives the Agent and the Lenders prior written notice: 
  
 (a)    a Subsidiary of the Borrower may wind-up, dissolve or liquidate if its Property is transferred to the Borrower
or a Wholly-Owned Subsidiary; 
  
 (b)    any Subsidiary of the Borrower may merge or consolidate with the Borrower (provided the Borrower is the surviving entity) or a Wholly-Owned Subsidiary (provided the Wholly-Owned Subsidiary is the
surviving entity); 
  

 61 

 (c)    the Borrower or any Wholly-Owned Subsidiary may make Permitted
Acquisitions; and 
  
 (d)    to the extent the Required Lenders agree in writing, the Borrower or any Wholly-Owned Subsidiary may make additional acquisitions not included in Permitted Acquisitions. 
  
 Section 11.4    Restricted
Payments.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, directly or indirectly declare, order, pay, make or set apart any sum for (i) any redemption, conversion, exchange, retirement, sinking fund or
similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of any such Person now or hereafter outstanding or (ii) any payment made to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire shares of any class of Capital Stock of any such Person now or hereafter outstanding except: 
  
 (x)    the Borrower may repurchase its Capital Stock, provided that (A) the Total Debt to Capitalization Ratio
immediately after giving effect to such repurchase, calculated on a pro forma basis, shall not exceed 0.40:1 and (B) no Default shall be in existence at the time of such repurchase; and 
  
 (y)    the Borrower may acquire or redeem Capital Stock of the Borrower held by any
former officer, director or employee of the Borrower or beneficiaries of any such Person’s estate or trusts created by or for the benefit of any such Person or their beneficiaries. 
  
 Section 11.5    Investments.  The Borrower will not, nor will it permit any Subsidiary
of the Borrower to, make or permit to remain outstanding any advance, loan, extension of credit or capital contribution to or investment in any Person, or purchase or own any stocks, bonds, notes, debentures or other Securities of any Person, or be
or become a joint venturer with or partner of any Person (all the foregoing, herein “Investments”), except: 
  
 (a)    Permitted Acquisitions; 
  
 (b)    the Borrower or any Wholly-Owned Subsidiary may make Investments in Domestic
Subsidiaries; 
  
 (c)    the
Borrower may make Investments in Foreign Subsidiaries (subject to the requirements of Section 11.1 and Section 11.3); provided that (i) the aggregate amount of all Investments in Foreign Subsidiaries shall not exceed an
amount equal to fifteen percent (15.0%) of the Borrower’s consolidated assets at the time of making any such Investment and (ii) such Investments in Foreign Subsidiaries which constitute advances, loans, extensions of credit, bonds, notes or
debentures owed to the Borrower shall at all times be subordinate in all respects to the Obligations or any indebtedness, liability or obligation of such Foreign Subsidiary to the Agent and the Lenders (if any) under any Loan Document and must
otherwise be in compliance with Section 11.1 and Section 11.3; 
  

 62 

 (d)    Investments up to an aggregate amount at any time outstanding
of not more than 5% of the Borrower’s Tangible Net Worth; 
  
 (e)    readily marketable direct obligations of the U.S. or any agency thereof with maturities of one year or less from the date of acquisition; 
  
 (f)    fully insured certificates of
deposit with maturities of one year or less from the date of acquisition issued by any commercial bank operating in the U.S. having capital and surplus in excess of $250,000,000 and repurchase and reverse repurchase obligations entered into with any
such commercial bank; 
  
 (g)    commercial paper of a domestic issuer and equity or debt Securities of a domestic issuer if at the time of purchase such paper or debt Securities of such issuer is rated in one of the two highest rating categories
of Standard and Poor’s Rating Service or Moody’s Investors Service, Inc. or any successor thereto; 
  
 (h)    Investments received in connection with the settlement of delinquent obligations of, and disputes with,
customers and suppliers and other trade debtors arising in the ordinary course of business; 
  
 (i)    Investments in money market mutual funds registered with the Securities and Exchange Commission meeting the
requirements of Rule 2a-7 promulgated under the Investment Company Act of 1940, which funds are rated in one of the two highest rating categories of Standard and Poor’s Rating Service or Moody’s Investors Service, Inc. or any successor
thereto; 
  
 (j)    extensions of trade credit in the ordinary course of business; 
  
 (k)    to the extent permitted under applicable law, the Borrower and any Wholly-Owned Subsidiary may make loans and
advances to officers, directors and employees in the ordinary course of business and consistent with past practices up to an aggregate amount at any time outstanding of not more than $5,000,000; 
  
 (l)    Investments existing on the
Closing Date and listed on Schedule 11.5 to the Disclosure Letter; and 
  
 (m)    Investments consisting of purchases of debt Securities or other extensions of credit by the Borrower or any Subsidiary of the Borrower to the lessor/purchaser in connection with Permitted
Sale-Leasebacks. 
  
 The amount of Investments pursuant to clause (c)
preceding shall be the amount of all cash or other Property invested, loaned, advanced or otherwise contributed to all Foreign Subsidiaries of the Borrower whether such Investments are made as a single transaction or as one of a series of
transactions, and such amount shall be determined at the time of making of each Investment or portion thereof if in connection with a series of transactions. 
  
 Section 11.6    Limitation on Issuance of Capital Stock of Subsidiaries.  The Borrower will not permit any Subsidiary
of the Borrower to at any time issue, sell, assign or otherwise 

  

 63 

 
dispose of, except to the Borrower or a Wholly-Owned Subsidiary or in connection with a Permitted Acquisition, (a) any Capital Stock of a Subsidiary of the
Borrower, (b) any Securities exchangeable for or convertible into or carrying any rights to acquire any Capital Stock of a Subsidiary of the Borrower or (c) any option, warrant or other right to acquire any Capital Stock of a Subsidiary of the
Borrower. 
  
 Section 11.7    Transactions
with Affiliates.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, enter into any transaction, including the purchase, sale or exchange of property or the rendering of any service, with any Affiliate (as
used in this Section 11.7 the term “Affiliate” shall exclude any Subsidiary of the Borrower) of the Borrower or such Subsidiary of the Borrower, except in the ordinary course of and pursuant to the reasonable requirements of the
Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than would be obtained in a comparable arm’s-length transaction with a Person not an Affiliate of the
Borrower or such Subsidiary. 
  
 Section
11.8    Disposition of Assets.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, sell, lease, assign, transfer or otherwise voluntarily dispose of any of its Property other than (a)
sales of inventory in the ordinary course of business, (b) sales or other dispositions of assets in the ordinary course of business in connection with the closing of any retail location of the Borrower or any Subsidiary of the Borrower, (c)
dispositions of obsolete or worn-out equipment in the ordinary course of business, (d) transfers or dispositions of assets by a Subsidiary to the Borrower or a Wholly-Owned Subsidiary, (e) transfers or dispositions of assets by the Borrower to a
Subsidiary, provided that, with respect to transfers or dispositions to a Foreign Subsidiary, such transfers or dispositions are otherwise permitted by Section 11.5(c), (f) transfers consisting of the lease or licenses of Property in
the ordinary course of business consistent with past practice and (g) sales or other dispositions of assets in any Fiscal Year where the net book value of the assets disposed of does not exceed 10% of the Borrower’s Tangible Net Worth as of the
last day of the immediately preceding Fiscal Year. 
  
 Section
11.9    Lines of Business.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to, engage in any line or lines of business activity other than the business activities in which they are
engaged on the Closing Date or a business reasonably related or complementary thereto. 
  
 Section 11.10    Limitations on Restrictions Affecting the Borrower and its Subsidiaries.  Neither the Borrower nor any Subsidiary of the Borrower (i) shall enter into or assume
any agreement (other than the Loan Documents) prohibiting the creation or assumption of any Lien in favor of the Agent and the Lenders under the Loan Documents upon its Properties, whether now owned or hereafter acquired, or (ii) will directly or
indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary of the Borrower to (a) pay dividends or make any other distribution on
any of its Capital Stock, (b) pay any Debt owed to the Borrower or any Subsidiary of the Borrower, (c) make loans or advances to the Borrower or any Subsidiary of the Borrower, (d) transfer any Property of the Borrower or any Subsidiary of the
Borrower to any other Person, or (e) make any prepayment of any of the Obligations, provided that the foregoing shall not apply to: (1) restrictions and conditions imposed by applicable law; (2) restrictions by 

  

 64 

 
reason of customary provisions restricting assignments, subletting or other transfers contained in leases, licenses and similar agreements entered into in
the ordinary course of business (provided that such restrictions are limited to the property or assets subject to such leases, licenses or similar agreements, as the case may be); (3) restrictions with respect to the disposition or transfer of
assets or property in asset sale agreements, stock sale agreements and other similar agreements entered into in the ordinary course of business and in respect of transactions not otherwise prohibited hereunder, pending the closing of such
disposition or transfer (provided that in each case (A) the Borrower or any Subsidiary party to any such agreement is the seller, and (B) such restrictions are limited to the property or assets that are the subject of such agreement); (4)
customary restrictions with respect to the disposition or distribution of assets or property in joint venture agreements, partnership agreements and other similar agreements entered into in the ordinary course of business and in respect of
transactions not otherwise prohibited hereunder, in each case so long as the joint venture, partnership or other subject of such agreement is not a Subsidiary of the Borrower; and (5) restrictions in agreements evidencing Debt permitted by
Section 11.1(b), (e) or (f) that impose restrictions on the property financed by or the subject of such Debt (including the products, proceeds (including insurance proceeds), accessions, replacements, substitutions and
improvements thereto) and restrictions in agreements evidencing Liens permitted by Section 11.1(f) or (n) which affect only the assets subject to such Liens. 
  
 Section 11.11    Environmental Protection.  The Borrower will not, nor will it permit
any Subsidiary of the Borrower to, (a) use (or permit any tenant to use) any of its Properties for the handling, processing, storage, transportation or disposal of any Hazardous Material except in compliance with applicable Environmental Laws, (b)
generate any Hazardous Material except in compliance with applicable Environmental Laws, (c) conduct any activity that is likely to cause a Release or threatened Release of any Hazardous Material in violation of any Environmental Law or (d)
otherwise conduct any activity or use any of its Properties in any manner that in any material respect violates or is likely to violate any Environmental Law or create any Environmental Liabilities for which the Borrower or any Subsidiary of the
Borrower would be responsible that could be expected to have a Material Adverse Effect. 
  
 Section 11.12    ERISA.  The Borrower will not, nor will it permit any Subsidiary of the Borrower to: 
  
 (a)    allow or take (or permit any ERISA Affiliate to take) any action which would
cause any unfunded or unreserved liability for benefits under any Plan (exclusive of any Multiemployer Plan) in excess of $5,000,000 to exist or to be created; or 
  
 (b)    with respect to any Multiemployer Plan, allow or take (or permit any ERISA
Affiliate to take) any action which would cause any unfunded or unpaid liability by the Borrower or any ERISA Affiliate to any Multiemployer Plan in excess of $5,000,000 to exist or to be created, either individually as to any such Plan or in the
aggregate as to all such Plans. 
  

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 ARTICLE 12 
  
 Financial Covenants 
  
 The Borrower covenants and agrees that, as long as the Obligations or any
part thereof are outstanding or any Lender has any Commitment hereunder or any Letter of Credit shall remain outstanding (unless such Letter of Credit is Cash Collateralized in full), it will perform and observe the following financial covenants:

  
 Section 12.1    Leverage
Ratio.  As of the end of each Fiscal Quarter, the Borrower shall not permit the Leverage Ratio calculated as of the end of such Fiscal Quarter, for the preceding twelve (12) Fiscal Periods then ending, to exceed 3.50:1. 
  
 Section 12.2    Fixed Charge Coverage
Ratio.  As of the end of each Fiscal Quarter, the Borrower shall not permit the Fixed Charge Coverage Ratio, calculated as of the end of such Fiscal Quarter, for the preceding four (4) Fiscal Quarter period then ending, to be less than
2.50:1. 
  
 ARTICLE 13 
  
 Default 
  
 Section 13.1    Events of Default.  Each of the following shall be deemed an
“Event of Default”: 
  
 (a)    the Borrower shall fail to pay (i) when due any principal owing with respect to the Loan or any L/C Obligation payable under any Loan Document or any part thereof, (ii) within three (3) Business Days of the date
due any interest on the Loan or any L/C Obligation or fees payable under the Loan Documents or any part thereof or (iii) within three (3) Business Days after the date the Borrower receives written notice of the failure to pay when due, any other
Obligation or any part thereof, or any indebtedness, liability or obligation due to any Lender under any Hedge Agreement; 
  
 (b)    any representation, warranty or certification made or deemed made by the Borrower or any Subsidiary of the
Borrower (or any of their respective officers) in any Loan Document or in any certificate, report, notice or financial statement furnished at any time in connection with any Loan Document shall be false, misleading or erroneous in any material
respect when made or deemed to have been made; 
  
 (c)    the Borrower or any Subsidiary of the Borrower shall fail to perform, observe or comply with any covenant, agreement or term contained in Section 2.4, Section 5.4(a), Section 10.1, Section
10.2, Section 10.6, Section 10.10, Article 11 (other than related to non-consensual Liens under Section 11.2) or Article 12; 
  
 (d)    the Borrower or any Subsidiary of the Borrower shall fail to perform, observe or
comply with any other agreement or term contained in any Loan Document (other than as described in Section 13.1(a), Section 13.1(b) or Section 13.1(c)) and (i) such failure shall continue for a period of thirty (30) days after
the earlier of (A) the date 

  

 66 

 
the Agent provides the Borrower with notice thereof or (B) the date the Borrower should have notified the Agent thereof in accordance with Section
10.1(e) or (ii) as otherwise specifically provided by any other Loan Document; 
  
 (e)    the Borrower or any Subsidiary of the Borrower shall (i) apply for or consent to the appointment of, or the
taking of possession by, a receiver, custodian, trustee, examiner, liquidator or the like of itself or of all or a substantial part of its Property, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case
under the United States Bankruptcy Code (as now or hereafter in effect, the “Bankruptcy Code”), (iv) institute any proceeding or file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, liquidation, dissolution, winding-up or composition or readjustment of debts, (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the
Bankruptcy Code, (vi) admit in writing its inability to or be generally unable to pay its debts as such debts become due or (vii) take any corporate action for the purpose of effecting any of the foregoing; 
  
 (f)    (i) a proceeding or case shall be
commenced, without the application, approval or consent of the Borrower or any Subsidiary of the Borrower in any court of competent jurisdiction, seeking (A) its reorganization, liquidation, dissolution, arrangement or winding-up or the composition
or readjustment of its debts, (B) the appointment of a receiver, custodian, trustee, examiner, liquidator or the like of the Borrower or such Subsidiary or of all or any substantial part of its Property or (C) similar relief in respect of the
Borrower or such Subsidiary under any law relating to bankruptcy, insolvency, reorganization, winding-up or composition or readjustment of debts, and such proceeding or case shall continue undismissed, or an order, judgment or decree approving or
ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of sixty (60) or more days or (ii) an order for relief against the Borrower or any Subsidiary shall be entered in an involuntary case under the
Bankruptcy Code; 
  
 (g)    the Borrower or any Subsidiary of the Borrower shall fail within a period of thirty (30) days after the commencement thereof to discharge or obtain a stay of any attachment, sequestration, forfeiture or similar
proceeding or proceedings involving an aggregate amount in excess of $15,000,000 against any of its assets or Properties; 
  
 (h)    a final judgment or judgments for the payment of money in excess of $15,000,000 in the aggregate (to the extent
not paid or fully covered by insurance acknowledged by a carrier reasonably acceptable to the Agent) shall be rendered by a court or courts against the Borrower or any Subsidiary of the Borrower and the same shall not be satisfied, discharged or
dismissed (or provision shall not be made for such satisfaction, discharge or dismissal), or a stay of execution or other stay of enforcement thereof shall not be procured, within sixty (60) days from the date of entry thereof and the Borrower or
any Subsidiary of the Borrower, as applicable, shall not, within said period of sixty (60) days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during
such appeal; 
  

 67 

 (i)    the Borrower or any Subsidiary of the Borrower shall fail to
pay when due any principal of or interest on any Debt (other than the Obligations) beyond the period of grace (if any) if the aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors
under any combined or syndicated credit arrangement) of the affected Debt equals or exceeds $15,000,000, or the maturity of any such Debt shall have been accelerated or shall have been required to be prepaid prior to the stated maturity thereof or
(ii) any event shall have occurred with respect to any Debt in the aggregate principal amount equal to or in excess of $15,000,000 that permits the holder or holders of such Debt or any Person acting on behalf of such holder or holders to accelerate
the maturity thereof or require any prepayment (other than the right to require any prepayment pursuant to (x) a regularly scheduled option to require the Borrower or any Subsidiary to repurchase or prepay such Debt or (y) any redemption, repurchase
or prepayment voluntarily initiated by the Borrower or any Subsidiary) thereof; 
  
 (j)    this Agreement or any other Loan Document shall cease to be in full force and effect or shall be declared null
and void or the validity or enforceability thereof shall be contested or challenged by the Borrower or any Subsidiary, or the Borrower or any Subsidiary shall deny that it has any further liability or obligation under any of the Loan Documents;

  
 (k)    any of the
following events shall occur or exist with respect to the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate and in each case, such event or condition, together with all other such events or conditions, if any, have subjected or could
in the reasonable opinion of the Agent or the Required Lenders subject the Borrower or any Subsidiary of the Borrower (or any combination thereof) to any tax, penalty or other liability to a Plan, a Multiemployer Plan, the PBGC or otherwise (or any
combination thereof) which in the aggregate could reasonably be expected to exceed $5,000,000: (i) any Prohibited Transaction involving any Plan; (ii) any Reportable Event with respect to any Plan; (iii) the filing under Section 4041 of ERISA of a
notice of intent to terminate any Plan or the termination of any Plan; (iv) any event or circumstance that could reasonably be expected to constitute grounds entitling the PBGC to institute proceedings under Section 4042 of ERISA for the termination
of, or for the appointment of a trustee to administer, any Plan, or the institution by the PBGC of any such proceedings; or (v) the complete or partial withdrawal under Section 4201 or 4204 of ERISA from a Multiemployer Plan or the reorganization,
insolvency or termination of any Multiemployer Plan; or 
  
 (l)    the occurrence of a Change of Control. 
  
 Section 13.2    Remedies.  If any Event of Default shall occur and be continuing, the Agent may (and if directed by
the Required Lenders, shall) do any one or more of the following: 
  
 (a)    Acceleration.  By notice to the Borrower, declare all outstanding principal of and accrued and unpaid interest on the Notes and all other amounts payable by the Borrower
under the Loan Documents immediately due and payable, and the same shall thereupon become immediately due and payable, without further notice, demand, 

  

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presentment, notice of dishonor, notice of acceleration, notice of intent to accelerate, protest or other formalities of any kind, all of which are hereby
expressly waived by the Borrower except as where required by the specific terms of this Agreement or the other Loan Documents; 
  
 (b)    Termination of Commitments.  Declare the Commitments and any obligation of the L/C Issuer to
make L/C Credit Extensions to be terminated, whereupon such Commitments and obligation shall be terminated; 
  
 (c)    Cash Collateralization.  Require that the Borrower Cash Collateralize the L/C Obligations (in
an amount equal to the then Outstanding Amount thereof); 
  
 (d)    Judgment.  Reduce any claim to judgment; and 
  
 (e)    Rights.  Exercise any and all rights and remedies afforded by the laws of the State of
California, or any other jurisdiction governing any of the Loan Documents, by equity or otherwise; 
  
 provided, however, that, upon the occurrence of an Event of Default under Section 13.1(e) or Section 13.1(f) with respect to the Borrower or any Guarantor, the Commitments of all of the
Lenders and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate and the outstanding principal of and accrued and unpaid interest on the Notes and all other amounts payable by the Borrower or any other party
under the Loan Documents shall thereupon become immediately due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the
Agent or any Lender, and in each case without notice, demand, presentment, notice of dishonor, notice of acceleration, notice of intent to accelerate, protest or other formalities of any kind, all of which are hereby expressly waived by the
Borrower. 
  
 Section 13.3    Performance
by the Agent.  Upon the occurrence of a Default, if the Borrower or any Guarantor shall fail to perform any agreement in accordance with the terms of the Loan Documents, the Agent may, and at the direction of the Required Lenders
shall, perform or attempt to perform such agreement on behalf of the Borrower or such Guarantor, as applicable. In such event, at the request of the Agent, the Borrower shall promptly pay any amount expended by the Agent or the Lenders in connection
with such performance or attempted performance, to the Agent at the Principal Office together with interest thereon at the Default Rate applicable to the Base Rate Balance from the date of such expenditure to the date such expenditure is paid in
full. Notwithstanding the foregoing, it is expressly agreed that neither the Agent, the Arranger, nor any Lender shall have any liability or responsibility for the performance of any obligation of the Borrower or any Guarantor under any Loan
Document. 
  
 Section
13.4    Set-off.  If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, without notice to the Borrower or any other Person (any such
notice being hereby expressly waived), to set off and apply any and all deposits (general or special, time or demand, provisional or final, but excluding any account established by the Borrower as a fiduciary for another party) at any time held and
other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower against any and all of the Obligations now or hereafter existing under any Loan 

  

 69 

 
Document, irrespective of whether or not the Agent or such Lender shall have made any demand under such Loan Documents and although the Obligations may be
contingent or unmatured or denominated in a currency different from that of the applicable deposit or indebtedness. Each Lender agrees promptly to notify the Borrower (with a copy to the Agent) after any such set-off and application; provided
that the failure to give such notice shall not affect the validity of such set-off and application. The rights and remedies of each Lender hereunder are in addition to other rights and remedies (including other rights of set-off) which such Lender
may have. 
  
 Section 13.5    Continuance
of Default.  For purposes of all Loan Documents, a Default shall be deemed to have continued and exist until the Agent shall have actually received evidence satisfactory to the Agent that such Default shall have been remedied.

  
 ARTICLE 14 
  
 The Agent 
  
 Section 14.1    Appointment and Authority.  Each of the Lenders and the L/C Issuer
hereby irrevocably appoints Bank of America to act on its behalf as the Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the
terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Agent, the Lenders and the L/C Issuer, and neither the Borrower nor any Guarantor
shall have rights as a third party beneficiary of any of such provisions. 
  
 Section 14.2    Rights as a Lender.  The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Agent hereunder in its
individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other
Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account therefor to the Lenders. 
  
 Section 14.3    Exculpatory Provisions.  The Agent shall not have any duties or obligations except those expressly
set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Agent: 
  
 (a)    shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and
is continuing; 
  
 (b)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is
required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Agent shall not be 

  

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required to take any action that, in its opinion or the opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or
applicable law; and 
  
 (c)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of
its Affiliates that is communicated to or obtained by the Person serving as the Agent or any of its Affiliates in any capacity. 
  
 The Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 15.10 and 13.2) or (ii) in the absence of its own gross negligence or
willful misconduct. The Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Agent by the Borrower, a Lender or the L/C Issuer. 
  
 The Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness
of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article 8 or elsewhere herein, other than to confirm receipt of items expressly required to be
delivered to the Agent. 
  
 Section
14.4    Reliance by Agent.  The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Agent also may rely upon any
statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the
issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Agent shall have received
notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 Section 14.5    Delegation of Duties.  The Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub agents appointed by the Agent. The Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers
by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub agent and 

  

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to the Related Parties of the Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Agent. 
  
 Section 14.6    Resignation of Agent.  The Agent may at any time give notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, with the consent of the Borrower at all times other than during the existence of an Event of Default (which consent will not be unreasonably withheld or delayed), to appoint a successor, which shall be a bank
with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the Lenders and the L/C Issuer, after consulting with the Lenders and the Borrower, appoint a successor Agent meeting the qualifications set forth above;
provided that if the Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Agent shall be
discharged from its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to be made by, to or through the Agent shall instead be made by or to each Lender and the L/C
Issuer directly, until such time as the Required Lenders appoint a successor Agent as provided for above in this Section. Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Sections 15.1 and 15.2 shall continue in effect for the benefit of such retiring Agent, its sub agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent. 
  
 Any resignation by Bank of America as Agent pursuant to this Section shall also constitute its resignation as L/C Issuer. Upon the acceptance of a
successor’s appointment as Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the retiring L/C Issuer shall be discharged from all of
their respective duties and obligations hereunder or under the other Loan Documents and (c) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit. 
  
 Section 14.7    Non-Reliance on Agent and Other Lenders.  Each Lender and the L/C
Issuer acknowledges that it has, independently and without reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender and the L/C Issuer also acknowledges that it will, independently and without 

  

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reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 
  
 Section 14.8    Agent May File Proofs of
Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Borrower or any Guarantor, the Agent
(irrespective of whether the principal of the Loan or any L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Agent shall have made any demand on the Borrower) shall be
entitled and empowered, by intervention in such proceeding or otherwise 
  
 (i)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loan, L/C Obligations and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Agent and their
respective agents and counsel and all other amounts due the Lenders and the Agent under Sections 3.9, 3.10, 4.6, 4.7, 4.8, 15.1 and 15.2) allowed in such judicial proceeding; and 
  
 (ii)    to collect and receive any
monies or other property payable or deliverable on any such claims and to distribute the same; 
  
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Agent and, in the
event that the Agent shall consent to the making of such payments directly to the Lenders, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent and its agents and counsel, and any
other amounts due the Agent under Sections 4.7, 15.1 and 15.2. 
  
 Nothing contained herein shall be deemed to authorize the Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Agent to vote in respect of the claim of any Lender in any such proceeding. 
  
 Section 14.9    Guaranty Matters.  The Lenders irrevocably authorize the Agent, at its option and in its discretion,
to release any Guarantor from its obligations under the Guaranties if such Person ceases to be a Subsidiary of the Borrower as a result of a transaction permitted hereunder. Upon request by the Agent at any time, the Required Lenders will confirm in
writing the Agent’s authority to release any Guarantor from its obligations under the Guaranty pursuant to this Section 14.9. 
  
 Section 14.10    Co-Agents; Lead Managers.  None of the Lenders identified on the facing page or signature pages of
this Agreement as a “co-documentation agent”, “co-syndication agent” or other similar title shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those 

  

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applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified as a “co-documentation
agent”, “co-syndication agent” or other similar title shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other
Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 
  
 ARTICLE 15 
  
 Miscellaneous 
  
 Section
15.1    Attorney Costs, Expenses and Documentary Taxes.  The Borrower agrees (a) to pay or reimburse the Agent for, promptly after presentation of supporting documents, all reasonable costs and expenses incurred
in connection with the syndication of the credit facilities provided for herein, the development, preparation, negotiation and execution of this Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of the
provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated) and the consummation and administration of the transactions contemplated hereby and thereby, including all Attorney Costs, (b) to pay all
reasonable out of pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (c) to pay or reimburse the Agent and each Lender for all
costs and expenses incurred in connection with the enforcement, attempted enforcement or preservation of any rights or remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any
“workout” or restructuring in respect of the Obligations and during any legal proceeding, including any proceeding under any insolvency law), including all Attorney Costs. The foregoing costs and expenses shall include all search, filing,
recording, title insurance and appraisal charges and fees and documentary taxes related thereto, and other out-of-pocket expenses incurred by the Agent and the cost of independent public accountants and other outside experts retained by the Agent or
any Lender. All amounts due under this Section 15.1 shall be payable within thirty (30) Business Days after demand therefor. The agreements in this Section shall survive the termination of the Commitments and repayment of all other
Obligations. 
  
 Section
15.2    Indemnification; Damage Waiver. 
  
 (a)    Indemnification by the Borrower.  Whether or not the transactions contemplated hereby are consummated, the Borrower shall indemnify and hold harmless each Agent-Related
Person, each Lender and their respective Related Parties (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses
and disbursements (including Attorney Costs) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (i) the execution,
delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby
or, in the case of the Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Commitment, Loan or Letter of Credit or the use or proposed 

  

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use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower or
any Subsidiary or Affiliate of the Borrower, or any Environmental Liability related in any way to the Borrower or any Subsidiary or Affiliate of the Borrower or (iv) any actual or prospective claim, litigation, investigation or proceeding relating
to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding), whether brought by a third party,
the Borrower or a Guarantor, and regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in whole or in part, out
of the negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs,
expenses or disbursements have resulted from the gross negligence or willful misconduct of such Indemnitee. 
  
 (b)    Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under Section 15.1 or clause (a) of this Section to be paid by it to the Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any of the foregoing, each Lender severally agrees
to pay to the Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Commitment Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of
such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Agent (or any such sub-agent) or the L/C Issuer in its
capacity as such, or against any Related Party of any of the foregoing acting for the Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders under this clause (b) are subject to the
provisions of Section 5.8(c). 
  
 (c)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 
  
 (d)    Payments.  All
amounts due under this Section 15.2 shall be payable within thirty (30) Business Days after demand therefor. 
  

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 (e)    Survival.  The agreements in this Section
shall survive the resignation of the Agent, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other Obligations. 
  
 Section 15.3    No Duty.  All attorneys, accountants, appraisers and other professional
Persons and consultants retained by any of the Agent, the Arranger or any Lender shall have the right to act exclusively in the interest of Agent, the Arranger and the Lenders and shall have no duty of disclosure, duty of loyalty, duty of care or
other duty or obligation of any type or nature whatsoever to the Borrower or any Guarantor, any shareholders of the Borrower or any Guarantor or any other Person. 
  
 Section 15.4    No Fiduciary Relationship.  The relationship between the Borrower and
the Guarantors on the one hand and the Agent, the Arranger and the Lenders on the other is solely that of debtor and creditor, and neither any of the Agent, the Arranger nor any Lender has any fiduciary or other special relationship with the
Borrower or any Guarantor, and no term or condition of any of the Loan Documents shall be construed so as to deem the relationship between the Borrower and the Guarantors on the one hand and any of the Agent, the Arranger and each Lender on the
other to be other than that of debtor and creditor. 
  
 Section
15.5    Equitable Relief.  The Borrower recognizes that in the event the Borrower or any Guarantor fails to pay, perform, observe or discharge any or all of the Obligations under the Loan Documents, any remedy at
law may prove to be inadequate relief to the Agent and the Lenders. The Borrower therefore agrees that the Agent and the Lenders, if the Agent or the Required Lenders so request, shall be entitled to temporary and permanent injunctive relief in any
such case without the necessity of proving actual damages. 
  
 Section 15.6    No Waiver; Cumulative Remedies.  No failure on the part of the Agent or any Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or
privilege under any Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any Loan Document preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. The rights and remedies provided for in the Loan Documents are cumulative and not exclusive of any rights and remedies provided by law. 
  
 Section 15.7    Successors and Assigns. 
  
 (a)    The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any Guarantor may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of
each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of clause (b) of this Section, (ii) by way of participation in
accordance with the provisions of clause (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of clause (f) of this Section (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their 

  

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respective successors and assigns permitted hereby, Participants to the extent provided in clause (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b)    Any Lender may at any time assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the portion of the Loan (including for purposes of this clause (b), participations in L/C Obligations and in Swingline Advances) at
the time owing to it); provided that (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the portion of the Loan at the time owing to it or in the case of an assignment to a
Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes the Loan outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Revolving Loan of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $10,000,000 unless each of the Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (which consent of the
Borrower shall not be unreasonably withheld or delayed), provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to
an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met, (ii) each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender’s rights and obligations under this Agreement with respect to the portion of the Loan or the Commitment assigned, (iii) any assignment of a Commitment must be approved by the Agent and the L/C Issuer unless the
Person that is the proposed assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee) and (iv) the parties to each assignment shall execute and deliver to the Agent an Assignment and
Assumption and an Acknowledgement of Intercreditor Agreement, together with a processing and recordation fee in the amount, if any, required as set forth in Schedule 15.7, and the Eligible Assignee, if it shall not be a Lender, shall deliver
to the Agent an Administrative Questionnaire. Subject to acceptance and recording thereof by the Agent pursuant to clause (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 6.1, 6.5, 6.6, 15.1 and 15.2 with respect to facts and circumstances occurring prior to the
effective date of such assignment). Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender and, if applicable, shall deliver a replacement Note 

  

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to the assignor Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this clause (b)
shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause (d) of this Section. From time to time upon request of the Borrower, the Agent will inform
the Borrower of the identities of all Lenders and their respective Commitments. 
  
 (c)    The Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Principal Office a
copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the portion of the Loan and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is
listed in the Register as the Lender shall be conclusive and binding on any subsequent holder, assignee, or transferee of the corresponding Commitments or Obligations. The Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice. The Register shall be available for inspection by each of the Borrower and the L/C Issuer at any reasonable time and from time to time upon reasonable prior notice. In addition,
at any time that a request for a consent for a material or substantive change to the Loan Documents is pending, any Lender may request and receive from the Agent a copy of the Register. 
  
 (d)    Any Lender may at any time, without the consent of, but with notice to, the
Borrower and the Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s
rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loan (including such Lender’s participations in L/C Obligations) owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right
to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that a Lender selling a participation may, in any agreement with a Participant, give such Participant the right to
consent to any matter which (A) extends the Maturity Date as to such Participant or any other date upon which any payment of money is due to such Participant, (B) reduces the rate of interest owing to such Participant, any fee or any other monetary
amount owing to such Participant, (C) reduces the amount of any installment of principal owing to such Participant or (D) releases all or substantially all of the Guarantors of their obligations under the Subsidiary Guaranty. Subject to clause
(e) of this Section, the Borrower agrees that each 

  

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Participant shall be entitled to the benefits of Sections 6.1, 6.5 and 6.6 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to clause (b) of this Section. To the extent permitted by law, each Participant shall be also entitled to the benefits of Section 13.4 as though it were a Lender, provided such Participant
agrees to be subject to Section 5.7 as though it were a Lender. 
  
 (e)    A Participant shall not be entitled to receive any greater payment under Section 6.1, 6.5 or 6.6 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 6.5 or 6.6 unless such Participant agrees, for the benefit of the Borrower, to comply with Section 15.21 as though it were a Lender (it being understood that the Agent and the Borrower shall
be third party beneficiaries of such covenant). 
  
 (f)    Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a
party hereto. 
  
 (g)    The
words “execution,” “signed,” “signature,” and words of like import in any Assignment and Acceptance shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic
Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 
  
 (h)    Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its Commitment and portions of the Loan owing to it pursuant to clause (b) above, Bank of America may, upon 30 days’ notice to the Borrower and the Lenders, resign
as L/C Issuer. In the event of any such resignation as L/C Issuer, the Borrower shall be entitled to appoint from among the Lenders a successor L/C Issuer hereunder (and upon acceptance of such appointment by a Lender, such Lender shall be such
successor L/C Issuer); provided that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer. If Bank of America resigns as L/C Issuer, it shall retain all the rights, powers,
privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to
fund Base Rate Balances or fund risk participations in Unreimbursed Amounts pursuant to Section 3.3). 
  
 Section 15.8    Survival.  All representations and warranties made hereunder and in any other Loan Document or other
document delivered pursuant hereto or thereto or in connection 

  

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herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by
the Agent and each Lender, regardless of any investigation made by the Agent or any Lender or on their behalf and notwithstanding that the Agent or any Lender may have had notice or knowledge of any Default at the time of any extension of credit
hereunder, and shall continue in full force and effect as long as the Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding. Without prejudice to the survival of any other
obligation of the Borrower hereunder, the obligations under Article 6, Section 15.1 and Section 15.2 shall survive repayment of the Notes and termination of the Commitments. Upon the appointment of a successor L/C Issuer, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time
of such succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit. 
  
 Section 15.9    Entire Agreement.  This Agreement, together with the other Loan
Documents and any letter agreements referred to herein, comprises the complete and integrated agreement of the parties on the subject matter hereof and supersedes all prior agreements, written or oral, on the subject matter hereof. In the event of
any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control and govern; provided that the inclusion of supplemental rights or remedies in favor of the Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party,
but rather in accordance with the fair meaning thereof. 
  
 Section 15.10    Amendments and Waivers.  Any provision of any Loan Document may be amended or waived and any consent to any departure by the Borrower therefrom may be granted if, but only if, such
amendment, waiver or consent is in writing and is signed by the Borrower, and the Required Lenders; provided that no such amendment, waiver or consent shall: 
  
 (a)    waive any condition set forth in Section 8.1(a) without the written
consent of each Lender; 
  
 (b)    extend or increase the Commitment of any Lender (or reinstate any Commitment theretofore terminated) without the written consent of such Lender; 
  
 (c)    postpone any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 
  
 (d)    reduce the principal of, or the
rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iii) of the second proviso to this Section 15.10) any fees or other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender directly affected thereby, provided that only the 

  

 80 

 
consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest at the Default Rate; 
  
 (e)    change Section 5.7 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender; 
  
 (f)    change any provision of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender; or 
  
 (g)    release all or substantially all the Guarantors from the Guaranty without the written consent of each Lender; 
  
 and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required
above, affect the rights or duties of the L/C Issuer under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it, (ii) no amendment, waiver or consent shall, unless in writing and signed by
the Agent in addition to the Lenders required above, affect the rights or duties of the Agent under this Agreement or any other Loan Document and (iii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed
only by the parties thereto. 
  
 Section
15.11    Maximum Interest Rate.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable law (the “Maximum Rate”). If the Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excessive interest shall be applied to the principal of the
Obligations or, if it exceeds the unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged or received by the Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable law, (a) characterize any payment that is not principal as an expense, fee or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof and (c) amortize, prorate, allocate and spread in equal or unequal parts
the total amount of interest throughout the contemplated term of the Obligations. 
  
 Section 15.12    Notices; Effectiveness; Electronic Communication. 
  
 (a)    General.  Unless otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including by facsimile transmission). All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to clause (b) below) electronic mail
address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
  

 81 

 (i)    if to the Borrower, the Agent or the L/C Issuer, to the
address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 15.12; and 
  
 (ii)    if to any other Lender, to the address, facsimile number, electronic mail address or telephone number
specified in its Administrative Questionnaire. 
  
 All such
notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party
hereto, (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid, (C) if delivered by facsimile, when sent and receipt of such delivery has been confirmed by telephone from the receiving party and (D) if delivered by
electronic mail, as provided in clause (b) below; provided that notices and other communications to the Agent and the L/C Issuer pursuant to Article 3 and Article 4 shall not be effective until actually received by such
Person. In no event shall a voicemail message be effective as a notice, communication or confirmation hereunder. 
  
 (b)    Electronic Communications.  Notices and other communications to the Lenders and the L/C Issuer
hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that the foregoing shall not apply to notices to any Lender or the
L/C Issuer pursuant to Article 3 and Article 4 if such Lender or the L/C Issuer, as applicable, has notified the Agent that it is incapable of receiving notices under such Article by electronic communication. The Agent or the Borrower
may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or
communications. 
  
 Unless the Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. 
  
 (c)    The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED 

  

 82 

 
OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the
Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Agent’s transmission of Borrower
Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Borrower, any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages). 
  
 (d)    Change of Address, Etc.  Each of the Borrower, the Agent and the L/C Issuer may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the other parties hereto. Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrower, the Agent and the L/C Issuer. In addition, each
Lender agrees to notify the Agent from time to time to ensure that the Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender. 
  
 (e)    Reliance by Agent and Lenders.  The Agent and the Lenders shall be entitled to rely and act upon any notice (including telephonic notices of borrowing, Conversion and Continuation)
purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify each Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to and other communications with the Agent may be recorded by the Agent, and each of the parties hereto hereby consents to such recording. 
  
 Section 15.13    Governing Law; Venue; Service of
Process. 
  
 (a)    THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE AGENT AND EACH LENDER SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW. 
  

 83 

 (b)    ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES FOR SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, THE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWER, THE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAWS OF SUCH STATE. 
  
 Section 15.14    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same agreement. 
  
 Section 15.15    Severability.  Any provision of any Loan Document held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the
remainder of such Loan Document and the effect thereof shall be confined to the provision held to be invalid or illegal. 
  
 Section 15.16    Headings.  The headings, captions and arrangements used in this Agreement are for convenience of
reference only and shall not affect the interpretation of this Agreement. 
  
 Section 15.17    Construction.  The Borrower, each Guarantor (by its execution of the Loan Documents to which it is a party), the Agent and each Lender acknowledges that each of
them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review the Loan Documents with its legal counsel and that the Loan Documents shall be construed as if jointly drafted by the parties thereto.

  
 Section 15.18    Independence of
Covenants.  All covenants under the Loan Documents shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not avoid the occurrence of a Default if such action is taken or such condition exists. 
  
 Section 15.19    Waiver of Jury Trial.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE 

  

 84 

 
PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 Section 15.20    Confidentiality.  The Agent, each Lender and each Participant shall use any confidential non-public
information concerning the Borrower and its Subsidiaries that is furnished to the Agent or such Lender by or on behalf of the Borrower and its Subsidiaries in connection with the Loan Documents (collectively, “Confidential
Information”) solely for the purpose of evaluating and providing products and services to them and administering and enforcing the Loan Documents, and it will hold the Confidential Information in confidence. Notwithstanding the foregoing,
the Agent and each Lender may disclose Confidential Information (a) to their Affiliates or any of their or their Affiliates’ directors, officers, employees, auditors, counsel, advisors or representatives (collectively, the
“Representatives”) whom it determines need to know such information for the purposes set forth in this Section, (b) to any bank or financial institution or other entity to which such Lender has assigned or desires to assign an
interest or participation in the Loan Documents or the Obligations, provided that any such foregoing recipient of such Confidential Information agrees to keep such Confidential Information confidential as specified herein, (c) to any
Governmental Authority (or self-regulatory authority, such as the National Association of Insurance Commissioners) having or claiming to have authority to regulate or oversee any aspect of the Agent’s or such Lender’s business or that of
their Representatives in connection with the exercise of such authority or claimed authority, (d) to the extent necessary or appropriate to effect or preserve the Agent’s or such Lender’s or any of their Affiliates’ security (if any)
for any Obligation or to enforce any right or remedy or in connection with any claims asserted by or against the Agent or such Lender or any of their Representatives, (e) to the extent required by applicable law or pursuant to any subpoena or any
similar legal process, (f) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (g) subject to an agreement containing provisions substantially the same as those of this Section, to any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its
obligations and (h) with the consent of the Borrower. For purposes hereof, the term “Confidential Information” shall not include information that (x) is in the Agent’s or a Lender’s possession prior to its being provided by or on
behalf of the Borrower or any of its Subsidiaries; provided that such information is not known by the Agent or such 

  

 85 

 
Lender to be subject to another confidentiality agreement with, or other legal or contractual obligation of confidentiality to, the Borrower or any of its
Subsidiaries, (y) is or becomes publicly available (other than through a breach hereof by the Agent or such Lender) or (z) becomes available to the Agent or such Lender on a nonconfidential basis; provided, further, that the source of
such information was not known by the Agent or such Lender to be bound by a confidentiality agreement or other legal or contractual obligation of confidentiality with respect to such information. Any Person required to maintain the confidentiality
of Confidential Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information. 
  
 Each of the Agent,
the Lenders and the L/C Issuer acknowledges that (a) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public information in accordance with applicable law, including Federal and state securities laws. 
  
 Section 15.21    Foreign Lenders.  Each Foreign Lender (including an Eligible Assignee
that is a Foreign Lender and a Participant that would be a Foreign Lender if it were a Lender) shall deliver to the Agent, prior to receipt of any payment subject to withholding under the Code (or after accepting an assignment of an interest or
purchasing a participation herein), two (2) duly signed completed copies of either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to an exemption from withholding tax on all payments to be made to such
Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto (relating to all payments to be made to such Foreign Lender by the Borrower pursuant to this Agreement) or such other evidence satisfactory to the
Borrower and the Agent that such Foreign Lender is entitled to an exemption from U.S. withholding tax. Thereafter and from time to time, each such Foreign Lender shall (a) promptly submit to the Agent such additional duly completed and signed copies
of one of such forms (or such successor forms as shall be adopted from time to time by the relevant U.S. taxing authorities) as may then be available under then current U.S. laws and regulations to avoid, or such evidence as is satisfactory to the
Borrower and the Agent of any available exemption from U.S. withholding taxes in respect of all payments to be made to such Foreign Lender by the Borrower pursuant to this Agreement, (b) promptly notify the Agent of any change in circumstances which
would modify or render invalid any claimed exemption and (c) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Foreign Lender, and as may be reasonably necessary (including the re-designation of its
Applicable Lending Office) to avoid any requirement of applicable laws that the Borrower make any deduction or withholding for taxes from amounts payable to such Foreign Lender. If such Foreign Lender fails to deliver the above forms or other
documentation, then the Agent may withhold from any interest payment to such Foreign Lender an amount equivalent to the applicable withholding tax imposed by Sections 1441 and 1442 of the Code, without reduction. If any Governmental Authority
asserts that the Agent did not properly withhold any tax or other amount from payments made in respect of such Foreign Lender, such Foreign Lender shall indemnify the Agent therefor, including all penalties and interest, any taxes imposed by any
jurisdiction on the amounts payable to the Agent under this Section, and costs and expenses (including Attorney Costs) of the Agent. The 

  

 86 

 
obligation of the Lenders under this Section shall survive the payment of all Obligations and the resignation or replacement of the Agent. 
  
 Section 15.22    Amendment and
Restatement.  This Agreement amends, restates and replaces in its entirety the Original Agreement. All rights, benefits, indebtedness, interest, liabilities and obligations of the parties to the Original Agreement are hereby amended,
restated, replaced and superseded in their entirety according to the terms and provisions set forth herein. All indebtedness, liabilities and obligations under the Original Agreement, including all promissory notes executed by the Borrower pursuant
thereto, are hereby renewed by this Agreement, the Notes and the other Loan Documents executed by the Borrower pursuant to this Agreement and shall, from and after the Closing Date, be governed by this Agreement and the other Loan Documents. The
Borrower represents and warrants that as of the date hereof there are no claims or offsets against, or defenses or counterclaims to, its obligations under this Agreement, the Original Agreement or any of the other agreements, documents or
instruments executed in connection herewith or therewith. To induce the Agent and the Lenders to enter into this Agreement, the Borrower waives any and all such claims, offsets, defenses and counterclaims, whether known or unknown, arising prior to
the Closing Date and relating to the Original Agreement or this Agreement. 
  
 Section 15.23    USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as hereinafter defined) and the Agent (for itself and not on behalf of any Lender) hereby notifies
the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower in accordance with the Act. 
  
 [Remainder of page intentionally left blank] 
  

 87 

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

									
	 	 	 	 	 BORROWER:

			
	 	 	 	 	 WILLIAMS-SONOMA, INC.

	 	 	 	  
 By:
	 	  
 /s/ SHARON L. MCCOLLAM

	 	 	 	 	 	 	 Title:
	 	 Executive Vice President,
 Chief Financial Officer

  

					
	 	 	S-1	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
	 	 	 	 	 AGENT:

			
	 	 	 	 	 BANK OF AMERICA, N.A., as the Agent

	 	 	 	  
 By:
	 	  
 /s/ TIFFANY SHIN

	 	 	 	 	 	 	 Title:
	 	 Assistant Vice President

  

					
	 	 	S-2	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
	 	 	 	 	 LENDERS:

			
	 Commitment:
 $68,500,000
	 	 	 	 BANK OF AMERICA, N.A., as a Lender
 and as L/C Issuer

	 	 	 	  
 By:
	 	  
 /s/ RONALD J. DROBNY

	 	 	 	 	 	 	 Title:
	 	 Senior Vice President

  

					
	 	 	S-3	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $41,000,000
	 	 	 	 THE BANK OF NEW YORK

	 	 	 	  
 By:
	 	  
 /s/ RANDOLPH E. J. MEDRANO

	 	 	 	 	 	 	 Title:
	 	 Vice President

  

					
	 	 	S-4	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $41,000,000
	 	 	 	 WELLS FARGO BANK, N.A.

	 	 	 	  
 By:
	 	  
 /s/ JEFF BAILARD

	 	 	 	 	 	 	 Title:
	 	 Vice President

  

					
	 	 	S-5	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $41,000,000
	 	 	 	 JPMORGAN CHASE BANK, N.A.

	 	 	 	  
 By:
	 	  
 /s/ LISA A. WHATLEY

	 	 	 	 	 	 	 Title:
	 	 Managing Director

  

					
	 	 	S-6	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $41,000,000
	 	 	 	 UNION BANK OF CALIFORNIA, N.A.

	 	 	 	  
 By:
	 	  
 /s/ THERESA L. ROCHA

	 	 	 	 	 	 	 Title:
	 	 Vice President

  

					
	 	 	S-7	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $25,000,000
	 	 	 	 U.S. BANK NATIONAL ASSOCIATION

	 	 	 	  
 By:
	 	  
 /s/ GREGORY L. DRYDEN

	 	 	 	 	 	 	 Title:
	 	 Senior Vice President

  

					
	 	 	S-8	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $15,000,000
	 	 	 	 FIFTH THIRD BANK

	 	 	 	  
 By:
	 	  
 /s/ GARY S. LOSEY

	 	 	 	 	 	 	 Title:
	 	 Assistant Vice President –
 Relationship Manager

  

					
	 	 	S-9	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $15,000,000
	 	 	 	 NATIONAL CITY BANK

	 	 	 	  
 By:
	 	  
 /s/ MICHAEL DURBIN

	 	 	 	 	 	 	 Title:
	 	 Senior Vice President

  

					
	 	 	S-10	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $7,500,000
	 	 	 	 THE BANK OF NOVA SCOTIA

	 	 	 	  
 By:
	 	  
 /s/ MARK SPARROW

	 	 	 	 	 	 	 Title:
	 	 Director

  

					
	 	 	S-11	  	 Signature Page to Third Amended & Restated
 Credit Agreement

									
			
	 Commitment:
 $5,000,000
	 	 	 	 OAK BROOK BANK

	 	 	 	  
 By:
	 	  
 /s/ HENRY WESSEL

	 	 	 	 	 	 	 Title:
	 	 Vice President

  

					
	 	 	S-12	  	 Signature Page to Third Amended & Restated
 Credit Agreement

 EXHIBIT A 
  
 FORM OF REVOLVING NOTE 

 [AMENDED AND RESTATED] REVOLVING NOTE 
  

			
	 $                                    
	 	                        ,
        

  
 FOR VALUE RECEIVED,
the undersigned, WILLIAMS-SONOMA, INC., a corporation duly organized and validly existing under the laws of the State of California (the “Borrower”), hereby promises to pay to the order of
                                        
             (the “Payee”), on the Maturity Date, the principal amount of
                             DOLLARS
($                ), or such lesser principal amount of the Balances payable by the Borrower to the Payee as shall be outstanding on the Maturity Date, pursuant
to that certain Third Amended and Restated Credit Agreement dated as of February     , 2005 (as such agreement may be amended, restated or otherwise modified in writing from time to time, the “Credit
Agreement”) among the Borrower, the Lenders from time to time party thereto and BANK OF AMERICA, N.A., as the administrative agent (the “Agent”) and L/C Issuer. Terms defined in the Credit Agreement which are used herein
shall have the meanings provided in the Credit Agreement. 
  
 The
Borrower promises to pay interest on the unpaid principal amount of each Balance from the date of such Balance until such principal amount is paid in full, at such interest rates and payable at such times as are specified in the Credit Agreement.
All payments of principal and interest shall be made to the Agent for the account of the Payee in Dollars in immediately available funds at the Agent’s Principal Office. If any amount is not paid in full when due hereunder, such unpaid amount
shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement. 
  
 This [Amended and Restated] Revolving Note (“Revolving
Note”) is one of the “Revolving Notes” referred to in the Credit Agreement. Reference is hereby made to the Credit Agreement for rights and obligations of payment and prepayment, events of default, and the right of the
Payee to accelerate the maturity hereof upon the occurrence of such events. The advances made by the Payee hereunder shall be evidenced by one or more loan accounts or records maintained by the Payee in the ordinary course of business. The Payee may
also attach schedules to this Revolving Note and endorse thereon the date, amount and maturity of its advances hereunder and payments with respect thereto. 
  
 The Borrower, for itself, its successors and its assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor
and non-payment of this Revolving Note. 
  
 The Borrower agrees to
pay all collection expenses, court costs and Attorney Costs (whether or not litigation is commenced) which may be incurred by the Payee in connection with the collection or enforcement of this Revolving Note. 
  
 [This Revolving Note is in renewal of and is issued in amendment and
restatement of (but not in extinguishment of) [the indebtedness evidenced by that certain Revolving Note dated                     ,
             previously executed and delivered by the Borrower payable to the order of
                            , in the face amount of
$                , and the portion of such 

 
indebtedness represented hereby shall hereafter be governed by and payable in accordance with the terms hereof]. {Insert language modified as appropriate
into notes.} 
  
 THIS REVOLVING NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 WILLIAMS-SONOMA, INC. 
  
 By: __________________________________________ 
 Name: ________________________________________ 
 Title: _________________________________________ 
  

 -2- 

 LOANS AND PAYMENTS WITH RESPECT THERETO 
  
  

													
	Date	 	 Type of
 Balance
 Advanced
	 	 Amount of
 Balance
 Advanced
	 	 End of
 Interest
 Period
	 	 Amount of
 Interest or
 Principal
 Paid This
 Date
	 	 Outstanding
 Principal
 Balance This
 Date
	 	 Notation
 Made By

							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________
							
	__________	 	__________	 	__________	 	__________	 	__________	 	__________	 	__________

 EXHIBIT B 
  
 FORM OF SWINGLINE NOTE 

 SWINGLINE NOTE 
  

			
	 $                                    
	 	                        ,
        

  
  
 FOR VALUE RECEIVED, the undersigned, WILLIAMS-SONOMA, INC., a corporation duly organized and validly existing under the laws of the State of California
(the “Borrower”), hereby promises to pay to the order of BANK OF AMERICA, N.A. (the “Payee”), on the Maturity Date, the principal amount of
                     DOLLARS
($                    ), or such lesser principal amount of the Swingline Advances payable by the Borrower to the Payee as shall be
outstanding on the Maturity Date, pursuant to that certain Third Amended and Restated Credit Agreement dated as of February     , 2005 (as such agreement may be amended, restated or otherwise modified in writing from time
to time, the “Credit Agreement”) among the Borrower, the Lenders from time to time party thereto and BANK OF AMERICA, N.A., as the administrative agent (the “Agent”) and L/C Issuer. Terms defined in the Credit
Agreement which are used herein shall have the meanings provided in the Credit Agreement. 
  
 The Borrower promises to pay interest on the unpaid principal amount of each Swingline Advance from the date of such Swingline Advance until such principal amount is paid in full, at such interest rates and payable at
such times as are specified in the Credit Agreement. All payments of principal and interest shall be made to the Agent for the account of the Payee in Dollars in immediately available funds at the Agent’s Principal Office. If any amount is not
paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Credit
Agreement. 
  
 This Swingline Note is the “Swingline
Note” referred to in the Credit Agreement. Reference is hereby made to the Credit Agreement for rights and obligations of payment and prepayment, events of default, and the right of the Payee to accelerate the maturity hereof upon the
occurrence of such events. The advances made by the Payee hereunder shall be evidenced by one or more loan accounts or records maintained by the Payee in the ordinary course of business. The Payee may also attach schedules to this Swingline Note and
endorse thereon the date, amount and maturity of its advances hereunder and payments with respect thereto. 
  
 The Borrower, for itself, its successors, and its assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Swingline Note. 
  
 The Borrower
agrees to pay all collection expenses, court costs and Attorney Costs (whether or not litigation is commenced) which may be incurred by the Payee in connection with the collection or enforcement of this Swingline Note. 

 THIS SWINGLINE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA. 
  
 WILLIAMS-SONOMA, INC.

  
 By:
__________________________________________ 
 Name: ________________________________________ 
 Title: _________________________________________ 
  

 -2- 

 LOANS AND PAYMENTS WITH RESPECT THERETO 
  

									
	Date	 	 Amount of
 Advance
	 	 Amount of
 Principal or
 Interest Paid
 This Date
	 	 Outstanding
 Principal
 Balance This
 Date
	 	 Notation Made
 By

					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________
					
	______________	 	______________	 	______________	 	______________	 	______________

 EXHIBIT C 
  
 FORM OF ASSIGNMENT AND ACCEPTANCE 

 ASSIGNMENT AND ACCEPTANCE 
  
 This Assignment and Acceptance (this “Assignment and Acceptance”) is dated as of the Effective Date set
forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the
meanings given to them in the Third Amended and Restated Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in
Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Acceptance as if set forth herein in full. 
  
 For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Agent as contemplated below (i) the interest in and to all of
the Assignor’s rights and obligations as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto that represents the amount and percentage interest identified below of all of such outstanding rights
and obligations of the Assignor under the respective facilities identified below (including, without limitation, Letters of Credit included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits,
causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto
or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related
to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Acceptance, without representation or warranty by the Assignor. 
  

					
	1.    Assignor:	  	____________________________________________________________	  	 
			
	2.    Assignee:	  	____________________________________________________________	  	 [and is an Affiliate/Approved Fund of
 identify
Lender]1]

					
		
	3.    Borrower:	  	WILLIAMS-SONOMA, INC.
		
	4.    Agent:	  	BANK OF AMERICA, N.A., as the administrative agent under the Credit Agreement
		
	5.    Credit Agreement:	  	The Third Amended and Restated Credit Agreement, dated as of February     , 2005, among WILLIAMS-SONOMA, INC., the Lenders parties thereto, and BANK OF
AMERICA, N.A., as Agent and L/C Issuer.

 _________________________ 
 1 Select as applicable. 

   6.   Assigned Interest:        2 
  

							
	 Facility Assigned
  
	 	 Aggregate
 Amount of
 Commitment/Loans
 for all Lenders*
  
	 	 Amount of
 Commitment/Loans
 Assigned*
  
	 	 Percentage
 Assigned of
 Commitment/Loans3
  

	 ___________4
	 	 $___________
	 	 $___________
	 	 ___________%

	 ___________  
	 	 $___________
	 	 $___________
	 	 ___________%

	 ___________  
	 	 $___________
	 	 $___________
	 	 ___________%

	 	 	 	 	 	 	 

   7.  [Trade
Date:                                        
                                    ]5 
  
 Effective Date:
                                    ,
20     [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  
 The terms set forth in this Assignment and Acceptance are hereby agreed to: 
  
 ASSIGNOR 
 [NAME OF ASSIGNOR] 
  
 By: ___________________________________ 
 Title: 
  
 ASSIGNEE 
 [NAME OF ASSIGNEE] 
  
 By: ___________________________________ 
 Title: 
  
  
  
  
  
  
  
 ______________________________ 
  
 * Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 
 2 The reference to “Loans” in the table should be used only if the Credit Agreement provides for Term Loans. 
 3
Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 
 4 Fill in the appropriate terminology for the types
of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Credit Commitment”, “Term Loan Commitment”, etc.). 
 5 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

	
	 [Consented to and]6 Accepted:

	
	 BANK OF AMERICA, N.A., as

	   Agent and L/C Issuer

	
	 By: __________________________________

	        Title:

	
	 [Consented to:]7

	
	 By: __________________________________

	        Title:

  
  
  
  
  
 _____________________________ 
  
 6 To be added only if the consent of the Agent is required by the terms of the Credit Agreement. 
 7 To be added only if the
consent of the Borrower and/or other parties (e.g., L/C Issuer) is required by the terms of the Credit Agreement. 

 ANNEX 1 TO ASSIGNMENT AND ACCEPTANCE 
  
 WILLIAMS-SONOMA, INC. 
  
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
  
 STANDARD TERMS AND CONDITIONS FOR 
  
 ASSIGNMENT AND ACCEPTANCE 
  
 1.        Representations and
Warranties. 
  
 1.1      Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance
or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby; and (b) assumes no responsibility
with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of
its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
  
 1.2      Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the
Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 10.1 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Agent or any other Lender and (v) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed
by it as a Lender. 
  
 2.        Payments. From and after the Effective Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and 

 
other amounts) to the Assignee for amounts which have accrued prior to but excluding the Effective Date, and to the Assignee for amounts which have accrued
from and after the Effective Date. 
  
 3.        General Provisions. This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment
and Acceptance may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Acceptance by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Acceptance. This Assignment and Acceptance shall be governed by, and construed in accordance with, the law of the State of California. 

 EXHIBIT D 
  
 FORM OF COMPLIANCE CERTIFICATE 

 COMPLIANCE CERTIFICATE 
  
 The undersigned, duly appointed and acting chief financial officer or Vice President, Finance (as the case may be) of
WILLIAMS-SONOMA, INC. (the “Borrower”), being duly authorized, hereby delivers this Compliance Certificate to the Agent and the Lenders, pursuant to Section 10.1(c) of that certain Third Amended and Restated Credit Agreement,
dated as of February     , 2005, among the Borrower, BANK OF AMERICA, N.A., in its capacity as administrative agent (the “Agent”) and the Lenders party thereto, as such agreement may be amended, restated
or otherwise modified from time to time, reference to which hereby is made (the “Credit Agreement”). Terms defined in the Credit Agreement which are used herein shall have the meanings provided in the Credit Agreement. 

 
 1.        The Borrower hereby
delivers to the Agent and the Lenders [check as applicable]:        the audited Fiscal Year end financial statements and the unaudited consolidating financial statements required by Section 10.1(a); or
       the Fiscal Quarter end financial statements required by Section 10.1(b), dated as of
                        , 20    . Such financial statements are complete and correct in all
material respects and have been prepared in accordance with GAAP (as applicable) applied consistently throughout the periods reflected therein, except for year-end audit adjustments and the inclusion of footnotes for any financial statements
delivered pursuant to Section 10.1(b). 
  
 2.        The undersigned represents and warrants to the Agent and the Lenders that, except as may have been previously or concurrently disclosed to the Agent and the Lenders in writing by the
Borrower, the representations and warranties contained in Article 9 of the Credit Agreement are true and correct on and as of the date of this Compliance Certificate as if made on and as of the date hereof (except to the extent that such
representations and warranties are expressly by their terms made only as of the Closing Date or another specified date). 
  
 3.        The undersigned hereby states that, to the best of his or her knowledge and based upon an examination
sufficient to enable an informed statement [check as applicable]: 
  

	 	 ̈	  No Default exists as of the date hereof. 

  

	 	 ̈	One or more Defaults have occurred or exist as of the date hereof. Included within Exhibit A attached hereto is a written description specifying each such Default, its
nature, when it occurred, whether it is continuing as of the date hereof and the steps being taken by the Borrower with respect thereto. Except as so specified, no Default exists as of the date hereof. 

  
 4.        Exhibit B attached
hereto sets forth the calculations necessary to establish the status of the Borrower’s compliance with the covenants contained in Article 12 of the Credit Agreement as of the effective date of the financial statements referenced in
paragraph 1 above. 
  
 5.        Exhibit C attached hereto sets forth the determination of the Base Rate Margin, the Libor Rate Margin, the Facility Fee Rate and the Utilization Fee Rate to become effective on the
Margin Adjustment Date with respect to the financial statements referenced in paragraph 1 hereof. 

 Date of execution of this Compliance Certificate:
                     , 20    . 
  
 WILLIAMS-SONOMA, INC. 
  
  
 By:
________________________________________ 
 Name: ______________________________________ 
 Title: _______________________________________ 
  

 -2- 

 EXHIBIT A 
 to 
 COMPLIANCE CERTIFICATE 
 dated 
                      , 20     
  
  
 The following is attached to and made a part of the above
referenced Compliance Certificate. 
  
  
 [specify Defaults] 

 EXHIBIT B 
 to 
 COMPLIANCE CERTIFICATE 
 dated 
                      , 20     
  
  
 The following is attached to and made a part of
the above referenced Compliance Certificate. 
  

																	
	1.    	  	Leverage Ratio - Section 12.1:	  	 	  	 	  	Compliance
	 	  	(a)    	 	Total Adjusted Funded Debt:	  	 	  	 	  	 	  	 
	 	  	 	 	(i)	 	Average Funded Debt8, plus	  	 	  	$_______	  	 	  	 
	 	  	 	 	(ii)	 	(A)	 	all lease and rent expense for any real Property for the preceding four (4) Fiscal Quarters, multiplied by	  	 $_______	  	 	  	 	  	 
	 	  	 	 	 	 	(B)  	 	eight.	  	x               8	  	$_______	  	 	  	 
	 	  	 	 	(iii)	 	Total Adjusted Funded Debt
[1(a)(i) + 1(a)(ii)(B)]	  	 $_______	  	$_______	  	 	  	 
							
	 	  	(b)    	 	EBITDAR:	  	 	  	 	  	 	  	 
	 	  	 	 	(i)	 	Net Income, plus (or less any benefit from)	  	 $_______	  	 	  	 	  	 
	 	  	 	 	(ii)	 	Income or franchise taxes to the extent included in the determination of
Net Income, plus	  	 $_______	  	 	  	 	  	 
	 	  	 	 	(iii)	 	Interest Expense to the extent included in the determination of Net
Income, plus	  	 $_______	  	 	  	 	  	 
	 	  	 	 	(iv)	 	amortization and depreciation expense to the extent included in the
determination of Net Income, plus	  	 $_______	  	 	  	 	  	 
	 	  	 	 	(v)	 	Other non-cash, non-recurring charges to the extent included in the
determination of Net Income, minus	  	 $_______	  	 	  	 	  	 
	 	  	 	 	(vi)	 	Other non-recurring gains to the extent included in the determination of
Net Income, plus	  	 	  	 	  	 	  	 
	 	  	 	 	(vii)	 	All lease and rent expense for any real Property to the extent included in
the determination of Net Income	  	 	  	 	  	 	  	 
	 	  	 	 	(viii)	 	Total EBITDAR [sum of 1(b)(i) through 1(b)(vii)]	  	 	  	$_______	  	 	  	 
	 	  	(c)	 	Actual Leverage Ratio [1(a)(ii) ÷ 1(b)(viii)]	  	 	  	       to 1.00	  	 	  	 
	 	  	(d)	 	Required Maximum Leverage Ratio	  	 	  	3.50 to 1.00	  	Yes	  	No

  
  
  
  
  
  
  
  
  
  
 _________________________ 
  
 8. The average of all Funded Debt as of the end of each of the immediately preceding twelve (12) Fiscal Periods. 

																			
	2.    	 	Fixed Charge Coverage Ratio - Section 12.2	  	 	  	Compliance
							
	 	 	(a)	  	EBITDAR [1(b)(viii)]	  	 	  	$_______	  	 	  	 
	 	 	(b)	  	Fixed Charges	  	 	  	 	  	 	  	 
	 	 	 	  	(i)	 	Interest Expense to the extent included in the determination of Net Income
[1(b)(iii)], plus	  	$_______	  	 	  	 	  	 
	 	 	 	  	(ii)	 	lease and rent expense for any real Property, plus	  	$_______	  	 	  	 	  	 
	 	 	 	  	(iii)	 	Total fixed charges
[2(b)(i) + 2(b)(ii)]	  	 	  	$_______	  	 	  	 
	 	 	(c)	  	Actual Fixed Charge Coverage Ratio
[2(a) ÷ 2(b)(iii)]	  	 	  	      to 1.00	  	 	  	 
	 	 	(d)	  	Required Minimum Fixed Charge Coverage Ratio	  	 	  	2.50 to 1.00	  	Yes	  	No

 EXHIBIT C 
 to 
 COMPLIANCE CERTIFICATE 
  
 dated 
                  , 20     
  
  
  
 The following is attached to and made a part of the above referenced Compliance Certificate. 
  
 [insert determination of margins and rates] 

 EXHIBIT E 
  
 FORM OF SUBSIDIARY GUARANTY 

 GUARANTY AGREEMENT 
  
 (Subsidiary) 
  
 This GUARANTY AGREEMENT (“Guaranty”), dated as of August 23, 2000, is executed and delivered by each of the undersigned (collectively and
individually referred to herein as the “Guarantor”), to and in favor of the Agent (as defined below). 
  
 RECITALS: 
  
 A.        Williams-Sonoma, Inc. (the “Borrower”), the lenders party thereto (together with their
successors and assigns, the “Lenders”), and Bank of America, National Association, as administrative agent for the Lenders (the “Agent”), are, concurrently herewith entering into that certain amended and Restated
Credit Agreement dated as of August 23, 2000 (such Credit Agreement, as it may hereafter be amended, restated, or otherwise modified from time to time, being hereinafter referred to as the “Credit Agreement”; capitalized terms not
otherwise defined herein shall have the same meaning as set forth for such terms in the Credit Agreement). 
  
 B.        The Guarantor has directly and indirectly benefitted and will directly and indirectly benefit from the
loans evidenced and governed by the Credit Agreement. 
  
 C.        The execution and delivery of this Guaranty is required by the Credit Agreement and is a condition to the Lenders making extensions of credit available to the Borrower thereunder.

  
 NOW, THEREFORE, for valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Guarantor hereby irrevocably and unconditionally guarantees to the Agent, for the benefit of the Agent and the Lenders, the full and prompt payment and performance of the Guaranteed Indebtedness (as
defined below) upon the following terms: 
  
 1.        The term “Guaranteed Indebtedness”, as used herein means all of the “Obligations”, as defined in the Credit Agreement and shall include, without limitation, any
and all post-petition interest and expenses (including, without limitation, Attorney Costs) whether or not allowed under any bankruptcy, insolvency, or other similar law; provided that, notwithstanding anything to the contrary contained in
this Guaranty, the Guaranteed Indebtedness shall be limited to an aggregate amount equal to the greatest amount that would not render the Guarantor’s indebtedness, liabilities, or obligations hereunder subject to avoidance under Sections 544,
548, or 550 of the Bankruptcy Code or subject to being set aside or annulled under any applicable state law relating to fraud on creditors; provided, further, that, for purposes of the immediately preceding clauses, it shall be
presumed that the Guaranteed Indebtedness hereunder does not equal or exceed any aggregate amount which would render the Guarantor’s indebtedness, liabilities, or obligations hereunder subject to being so avoided, set aside, or annulled, and
the burden of proof to the contrary shall be on the party asserting to the contrary. Subject to but without limiting the generality of the foregoing sentence, the provisions of this Guaranty are severable and, in any legally binding action or
proceeding involving any state corporate law or any bankruptcy, insolvency, fraudulent transfer, or other laws of general application relating to the enforcement of creditors’ rights and general principles of equity, if the indebtedness,
liabilities, or obligations of the Guarantor hereunder would otherwise be held or 

  

 1 

 
determined to be void, invalid, or unenforceable on account of the amount of its indebtedness, liabilities, or obligations hereunder, then, notwithstanding
any other provision of this Guaranty to the contrary, the amount of such indebtedness, liabilities, or obligations shall, for purposes of determining the Guarantor’s obligations under this Guaranty, without any further action by the Guarantor
or any other Person, be automatically limited and reduced to the greatest amount which is valid and enforceable as determined in such action or proceeding. 
  
 2.        The Guarantor, together with each guarantor under any other guaranty (and specifically including each
Guarantor hereunder), if any, relating to the Credit Agreement (the “Related Guaranties”) which contain a contribution provision similar to that set forth in this paragraph 2, agrees that it and all such other guarantors
(collectively, the “Contributing Guarantors”) together desire to allocate among themselves, in a fair and equitable manner, their obligations arising under this Guaranty and the Related Guaranties. Accordingly, in the event any
payment or distribution is made by the Guarantor under this Guaranty or a guarantor under a Related Guaranty (a “Funding Guarantor”) that exceeds its Fair Share (as defined below), that Funding Guarantor shall be entitled to a
contribution from each of the other Contributing Guarantors in the amount of such other Contributing Guarantor’s Fair Share Shortfall (as defined below), with the result that all such contributions will cause each Contributing Guarantor’s
Aggregate Payments (as defined below) to equal its Fair Share; provided, however, that the obligations to or from any Funding Guarantor as described in this paragraph 2 shall be subordinate to the obligation of the Guarantor to
pay the Guaranteed Indebtedness as more fully set forth in paragraph 11 hereof. “Fair Share” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the
Adjusted Maximum Amount (as defined below) with respect to such Contributing Guarantor to (ii) the aggregate of the Adjusted Maximum Amounts with respect to all Contributing Guarantors, multiplied by (b) the aggregate amount paid or
distributed on or before such date by all Funding Guarantors under this Guaranty and the Related Guaranties in respect of the obligations guaranteed. “Fair Share Shortfall” means, with respect to a Contributing Guarantor as of any
date of determination, the excess, if any, of the Fair Share of such Contributing Guarantor over the Aggregate Payments of such Contributing Guarantor. “Adjusted Maximum Amount” means, with respect to a Contributing Guarantor as of
any date of determination, the maximum aggregate amount of the obligations of such Contributing Guarantor under this Guaranty or a Related Guaranty, in each case determined in accordance with the provisions hereof and thereof; provided that,
solely for purposes of calculating the “Adjusted Maximum Amount” with respect to any Contributing Guarantor for purposes of this paragraph 2, the assets or liabilities arising by virtue of any rights to or obligations of
contribution hereunder or under any similar provision contained in a Related Guaranty shall not be considered as assets or liabilities of such Contributing Guarantor. “Aggregate Payments” means, with respect to a Contributing
Guarantor as of any date of determination, the aggregate amount of all payments and distributions made on or before such date by such Contributing Guarantor in respect of this Guaranty and the Related Guaranties (including, without limitation, in
respect of this paragraph 2 or any similar provision contained in a Related Guaranty). The amounts payable as contributions hereunder and under similar provisions in the Related Guaranties shall be determined as of the date on which the
related payment or distribution is made by the applicable Funding Guarantor. The allocation among Contributing Guarantors of their obligations as set forth in this paragraph 2 or any similar provision contained in a Related Guaranty shall not
be construed in any way to limit the liability of any Contributing Guarantor hereunder or under a Related Guaranty. Each Contributing 

  

 2 

 
Guarantor under a Related Guaranty is a third party beneficiary to the contribution agreement set forth in this paragraph 2. 
  
 3.        This Guaranty shall be an
absolute, continuing, irrevocable, and unconditional guaranty of payment and performance and not a guaranty of collection, and the Guarantor shall remain liable on its obligations hereunder until the payment and performance in full of the Guaranteed
Indebtedness. No set-off, counterclaim, recoupment, reduction, or diminution of any obligation, or any defense of any kind or nature (other than payment or performance) which the Borrower may have against the Agent, any Lender, or any other party,
or which the Guarantor may have against the Borrower, the Agent, any Lender, or any other party, shall be available to, or shall be asserted by, the Guarantor against the Agent, any Lender, or any subsequent holder of the Guaranteed Indebtedness or
any part thereof or against payment of the Guaranteed Indebtedness or any part thereof. 
  
 4.        If the Guarantor becomes liable for any indebtedness owing by the Borrower to the Agent or any Lender by endorsement or otherwise, other than under this Guaranty, such
liability shall not be in any manner impaired or affected hereby, and the rights of the Agent and the Lenders hereunder shall be cumulative of any and all other rights that the Agent and the Lenders may ever have against the Guarantor. The exercise
by the Agent and the Lenders of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or remedy. 
  
 5.        In the event of default by
the Borrower in payment or performance of the Guaranteed Indebtedness, or any part thereof, when such Guaranteed Indebtedness becomes due, whether by its terms, by acceleration, or otherwise, the Guarantor shall promptly pay the amount due thereon
to the Agent, for the benefit of the Agent and the Lenders, without notice or demand in lawful currency of the U.S., and it shall not be necessary for the Agent or any Lender, in order to enforce such payment by the Guarantor, first to institute
suit or exhaust its remedies against the Borrower or others liable on such Guaranteed Indebtedness, or to enforce any rights against any collateral which shall ever have been given to secure such Guaranteed Indebtedness. In the event such payment is
made by the Guarantor, then the Guarantor shall be subrogated to the rights then held by the Agent and the Lenders with respect to the Guaranteed Indebtedness to the extent to which the Guaranteed Indebtedness was discharged by the Guarantor and, in
addition, upon payment by the Guarantor of any sums to the Agent hereunder, all rights of the Guarantor against the Borrower, any other guarantor of the Guaranteed Indebtedness, or any collateral arising as a result therefrom by way of right of
subrogation, reimbursement, or otherwise shall in all respects be subordinate and junior in right of payment to the prior indefeasible payment in full of the Guaranteed Indebtedness and no such right or remedy of subrogation, reimbursement or
otherwise shall be exercised or otherwise entered (except that proofs of claim may be filed in a bankruptcy or insolvency proceeding) unless and until the Guaranteed Indebtedness has been indefeasibly paid in full. 
  
 6.        If acceleration of the time
for payment of any amount payable by the Borrower under the Guaranteed Indebtedness is stayed upon the insolvency, bankruptcy, or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of the Guaranteed
Indebtedness shall nonetheless be payable by the Guarantor hereunder forthwith on demand by the Agent or any Lender. 
  

 3 

 7.        The Guarantor hereby agrees that its obligations under
this Guaranty shall not be released, discharged, diminished, impaired, reduced, or affected for any reason or by the occurrence of any event, including, without limitation, one or more of the following occurrences or events, whether or not with
notice to or the consent of the Guarantor: (a) the taking or accepting of collateral as security for any or all of the Guaranteed Indebtedness or the release, surrender, exchange, or subordination of any collateral now or hereafter securing any or
all of the Guaranteed Indebtedness; (b) any partial release of the liability of the Guarantor hereunder, or the full or partial release of any other guarantor of the Guaranteed Indebtedness from liability for any or all of the Guaranteed
Indebtedness; (c) any disability of the Borrower, or the dissolution, insolvency, or bankruptcy of the Borrower, the Guarantor, or any other party at any time liable for the payment of any or all of the Guaranteed Indebtedness; (d) any renewal,
extension, modification, waiver, amendment, or rearrangement of any or all of the Guaranteed Indebtedness or any instrument, document, or agreement evidencing, securing, or otherwise relating to any or all of the Guaranteed Indebtedness; (e) any
adjustment, indulgence, forbearance, waiver, or compromise that may be granted or given by the Agent or any Lender to the Borrower, the Guarantor, or any other party ever liable for any or all of the Guaranteed Indebtedness; (f) any neglect, delay,
omission, failure, or refusal of the Agent or any Lender to take or prosecute any action for the collection of any of the Guaranteed Indebtedness or to foreclose or take or prosecute any action in connection with any instrument, document, or
agreement evidencing, securing, or otherwise relating to any or all of the Guaranteed Indebtedness; (g) the unenforceability or invalidity of any or all of the Guaranteed Indebtedness or of any instrument, document, or agreement evidencing,
securing, or otherwise relating to any or all of the Guaranteed Indebtedness; (h) any payment by the Borrower or any other party to the Agent or any Lender is held to constitute a preference under applicable bankruptcy or insolvency law or if for
any other reason the Agent or any Lender is required to refund any payment or pay the amount thereof to someone else; (i) the settlement or compromise of any of the Guaranteed Indebtedness; (j) the non-perfection of any Lien securing any or all of
the Guaranteed Indebtedness; (k) any impairment of any collateral securing any or all of the Guaranteed Indebtedness; (l) the failure of the Agent or any Lender to sell any collateral securing any or all of the Guaranteed Indebtedness in a
commercially reasonable manner or as otherwise required by law; (m) any change in the corporate existence, structure, or ownership of the Borrower; or (n) any other circumstance which might otherwise constitute a defense available to, or discharge
of, the Borrower, the Guarantor, or any other party at any time liable for the payment of any or all of the Guaranteed Indebtedness other than payment of the Guaranteed Indebtedness. 
  
 8.        The Guarantor represents and warrants as follows: 
  
    (a)        All of
the representations and warranties in the Credit Agreement relating to the Guarantor are true and correct as of the date hereof and on each date the representations and warranties hereunder are restated pursuant to the Loan Documents with the same
force and effect as if such representations and warranties had been made on and as of such date except to the extent that such representations and warranties relate specifically to another date or to the extent that a fact, event, or circumstance
has occurred that makes such representation or warranty untrue but which is not prohibited to occur or exist (or which does not cause a Default or an Event of Default) under the Loan Documents. 
  

 4 

   (b)        The value of the consideration received
and to be received by the Guarantor as a result of the Borrower, the Agent, and the Lenders entering into the Credit Agreement and the Guarantor’s executing and delivering this Guaranty and the other Loan Documents to which it is a party is
reasonably worth at least as much as the liability and obligation of the Guarantor hereunder and thereunder, and the Credit Agreement and the extension of credit to the Borrower thereunder have benefitted and may reasonably be expected to benefit
the Guarantor directly or indirectly. Execution and delivery of this Guaranty and the other Loan Documents to which the Guarantor is a party is necessary or convenient to the conduct, promotion, and attainment of the business of the Guarantor.

  
   (c)        The Guarantor has, independently and without reliance upon the Agent or any Lender and based upon such documents and information as the Guarantor has deemed appropriate, made
its own analysis and decision to enter into the Loan Documents to which it is a party. 
  
   (d)        The Guarantor has adequate means to obtain from the Borrower on a continuing basis information concerning the financial condition and assets of the
Borrower, and the Guarantor is not relying upon the Agent or the Lenders to provide (and neither the Agent nor any Lender shall have any duty to provide) any such information to the Guarantor either now or in the future. 
  
 9.        The Guarantor covenants and
agrees that, as long as the Guaranteed Indebtedness or any part thereof is outstanding or any Lender has any commitment under the Credit Agreement, the Guarantor will comply with all covenants set forth in the Credit Agreement specifically
applicable to the Guarantor, the terms of which are incorporated herein by reference. 
  
 10.      During the existence of an Event of Default, the Agent and the Lenders shall have the right to set-off and apply against this Guaranty or the Guaranteed Indebtedness or both, at
any time and without notice to the Guarantor, any and all deposits (general or special, time or demand, provisional or final, but excluding any account established by the Guarantor as a fiduciary for another party) or other sums at any time credited
by or owing from the Agent and the Lenders to the Guarantor whether or not the Guaranteed Indebtedness is then due and irrespective of whether or not the Agent or any Lender shall have made any demand under this Guaranty. Each Lender agrees promptly
to notify the Borrower (with a copy to the Agent) after any such set-off and application; provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights and remedies of the Agent and
the Lenders hereunder are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Agent or any Lender may have. 
  
 11.      (a)        The Guarantor hereby agrees that
the Subordinated Indebtedness (as defined below) shall be subordinate and junior in right of payment to the prior indefeasible payment in full of all Guaranteed Indebtedness as herein provided. The Subordinated Indebtedness shall not be payable, and
no payment of principal, interest, or other amounts on account thereof, and no property or guarantee of any nature to secure or pay the Subordinated Indebtedness or any part thereof shall be made or given, directly or indirectly by or on behalf of
any Debtor (as defined below) or received, accepted, retained, or applied by the Guarantor unless and until the Guaranteed Indebtedness shall 

  

 5 

 
have been indefeasibly paid in full in cash; except that prior to occurrence of an Event of Default, the Guarantor shall have the right to receive payments
on the Subordinated Indebtedness made in the ordinary course of business unless, and except to the extent that, the payment or receipt of such payments is prohibited or otherwise restricted by the Credit Agreement or another Loan Document other than
this Guaranty. During the existence of a Default, no payments of principal or interest may be made or given, directly or indirectly, by or on behalf of any Debtor or received, accepted, retained, or applied by the Guarantor, except for payments in
Securities subordinated at least to the same extent as the Subordinated Indebtedness, unless and until the Guaranteed Indebtedness shall have been indefeasibly paid in full in cash. If any sums shall be paid to the Guarantor by any Debtor or any
other Person on account of the Subordinated Indebtedness when such payment is not permitted hereunder, such sums shall be held in trust by the Guarantor for the benefit of the Agent (for the benefit of the Agent and the Lenders) and shall forthwith
be paid to the Agent without affecting the liability of the Guarantor under this Guaranty and may be applied by the Agent against the Guaranteed Indebtedness in accordance with the terms of the Credit Agreement. Upon the request of the Agent, the
Guarantor shall execute, deliver, and endorse to the Agent such documentation as the Agent may request to perfect, preserve, and enforce its rights hereunder. For purposes of this Guaranty, the term “Subordinated Indebtedness” means
all indebtedness, liabilities, and obligations of the Borrower or any other party obligated at any time to pay any of the Guaranteed Indebtedness other than the Guarantor (the Borrower and such other obligated parties (including, without limitation,
any Contributing Guarantors) are referred to herein as the “Debtors”) to the Guarantor, whether such indebtedness, liabilities, and obligations now exist or are hereafter incurred or arise, or are direct, indirect, contingent,
primary, secondary, several, joint and several, or otherwise, and irrespective of whether such indebtedness, liabilities, or obligations are evidenced by a note, contract, open account, or otherwise, and irrespective of the Person or Persons in
whose favor such indebtedness, obligations, or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which they have been or may hereafter be acquired by the Guarantor. 
  
 (b)        The
Guarantor agrees that any and all Liens (including, without limitation, any judgment liens), upon any Debtor’s assets securing payment of any Subordinated Indebtedness shall be and remain inferior and subordinate to any and all Liens, if any,
upon any Debtor’s assets securing payment of the Guaranteed Indebtedness, or any part thereof, regardless of whether such Liens in favor of the Guarantor, the Agent, or any Lender presently exist or are hereafter created or attached. Without
the prior written consent of the Agent, until final repayment in full of all Guaranteed Indebtedness, the Guarantor shall not (i) file suit against any Debtor or exercise or enforce any other creditor’s right it may have against any Debtor
(provided that the Guarantor may file proofs of claim against the Borrower or any other Debtor in any bankruptcy or insolvency proceeding), or (ii) foreclose, repossess, sequester, or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including, without limitation, the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s relief, or insolvency proceeding) to enforce any obligations of any Debtor to the
Guarantor or any Liens held by the Guarantor on assets of any Debtor. 
  

 6 

 (c)        In the event of any receivership,
bankruptcy, reorganization, rearrangement, debtor’s relief, or other insolvency proceeding involving any Debtor as debtor, the Agent shall have the right to prove and vote any claim under the Subordinated Indebtedness and to receive directly
from the receiver, trustee, or other court custodian all dividends, distributions, and payments made in respect of the Subordinated Indebtedness, except payments in Securities subordinated at least to the same extent as the Subordinated
Indebtedness, until the Guaranteed Indebtedness has been indefeasibly paid in full in cash. The Agent may apply any such dividends, distributions, and payments against the Guaranteed Indebtedness in accordance with the terms of the Credit Agreement.

  
 (d) The Guarantor agrees that all promissory
notes, accounts receivable, ledgers, records, or any other evidence of Subordinated Indebtedness shall contain a specific written notice thereon that the indebtedness evidenced thereby is subordinated under the terms of this Guaranty. 
  
 12.      No amendment or waiver of any
provision of this Guaranty or consent to any departure by the Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Agent and the Required Lenders except as otherwise provided in the Credit
Agreement. No failure on the part of the Agent or any Lender to exercise, and no delay in exercising, any right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or
privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 13.      Any acknowledgment or new promise,
whether by payment of principal or interest or otherwise and whether by the Borrower or others (including, without limitation, any guarantor of the Guaranteed Indebtedness), with respect to any of the Guaranteed Indebtedness shall, if the statute of
limitations in favor of the Guarantor against the Agent or any Lender shall have commenced to run, toll the running of such statute of limitations and, if the period of such statute of limitations shall have expired, prevent the operation of such
statute of limitations. 
  
 14.      This Guaranty is for the benefit of the Agent (for the benefit of the Agent and the Lenders) and its successors and assigns, and in the event of an assignment of the Guaranteed Indebtedness, or any
part thereof, the rights and benefits hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. This Guaranty is binding not only on the Guarantor, but on the Guarantor’s successors and
assigns. 
  
 15.      The Guarantor
recognizes that the Agent and the Lenders are relying upon this Guaranty and the undertakings of the Guarantor hereunder and under the other Loan Documents to which the Guarantor is a party in making extensions of credit to the Borrower under the
Credit Agreement and further recognizes that the execution and delivery of this Guaranty and the other Loan Documents to which the Guarantor is a party is a material inducement to the Agent and the Lenders in entering into the Credit Agreement and
continuing to extend credit thereunder. The Guarantor hereby acknowledges that there are no conditions to the full effectiveness of this Guaranty or any other Loan Document to which it is a party. 
  

 7 

 16.      Any notice or demand to the Guarantor under or in connection with
this Guaranty or any other Loan Document to which it is a party shall be deemed effective if given to the Guarantor, at the address of the Borrower in accordance with the notice provisions in the Credit Agreement. 
  
 17.      The Guarantor shall pay on demand all
Attorney Costs and all other reasonable costs and expenses incurred by the Agent and the Lenders in connection with the administration, enforcement, or collection of this Guaranty. 
  
 18.      The Guarantor hereby waives promptness, diligence, notice of any default under the
Guaranteed Indebtedness, demand of payment, notice of acceptance of this Guaranty, presentment, notice of protest, notice of dishonor, notice of the incurring by the Borrower of additional indebtedness, and all other notices and demands with respect
to the Guaranteed Indebtedness and this Guaranty. 
  
 19.      The Credit Agreement, and all of the terms thereof, are incorporated herein by reference the same as if stated verbatim herein, and the Guarantor agrees that the Agent and the Lenders may exercise any
and all rights granted to any of them under the Credit Agreement and the other Loan Documents without affecting the validity or enforceability of this Guaranty. 
  

20.      Notwithstanding any provision of this Guaranty to the contrary: 
  
   (a)        The Guarantor understands and acknowledges that if the Agent or any Lender forecloses, either by judicial foreclosure or by exercise of power of sale, any deed of trust securing
the indebtedness, that foreclosure could impair or destroy any ability that the Guarantor may have to seek reimbursement, contribution, or indemnification from the Borrower or others based on any right the Guarantor may have of subrogation,
reimbursement, contribution, or indemnification for any amounts paid by the Guarantor under this Guaranty. The Guarantor further understands and acknowledges that in the absence of this paragraph, such potential impairment or destruction of the
Guarantor’s rights, if any, may entitle the Guarantor to assert a defense to this Guaranty based on Section 580d of the California Code of Civil Procedure as interpreted in Union Bank v. Gradsky, 265 Cal. App. 2d 40 (1968). By executing
this Guaranty, the Guarantor freely, irrevocably, and unconditionally (i) waives and relinquishes that defense and agrees that the Guarantor will be fully liable under this Guaranty even though the Agent or any Lender may foreclose, either by
judicial foreclosure or by exercise of power of sale, any deed of trust securing the Guaranteed Indebtedness, (ii) agrees that the Guarantor will not assert that defense in any action or proceeding which the Agent or any Lender may commence to
enforce this Guaranty, (iii) acknowledges and agrees that the rights and defenses waived by the Guarantor in this Guaranty include any right or defense that the Guarantor may have or be entitled to assert based upon or arising out of any one or more
of Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure or Section 2848 of the California Code, and (iv) acknowledges and agrees that the Agent or any Lender is relying on this waiver in creating the Guaranteed Indebtedness,
and that this waiver is a material part of the consideration which the Agent or any Lender is receiving for creating the Guaranteed Indebtedness. 
  

 8 

   (b)        The Guarantor waives any
rights and defenses that are or may become available to the Guarantor by reason of Sections 2787 to 2855, inclusive, of the California Civil Code. 
  
   (c)        The Guarantor waives all rights and defenses that the Guarantor may have
because any of the indebtedness is secured by real property. This means, among other things: (i) the Agent or any Lender may collect from the Guarantor without first foreclosing on any real or personal property collateral pledged by the Borrower;
and (ii) if the Agent or any Lender forecloses on any real property collateral pledged by the Borrower (1) the amount of the indebtedness may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the
collateral is worth more than the sale price, and (2) the Agent or any Lender may collect from the Guarantor even if the Agent or any Lender, by foreclosing on the real property collateral, has destroyed any right the Guarantor may have to collect
from the Borrower. This is an unconditional and irrevocable waiver of any rights and defenses the Guarantor may have because any of the indebtedness is secured by real property. These rights and defenses include, but are not limited to, any rights
or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure. 
  
 21.      THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF THE GUARANTOR WITH RESPECT TO THE GUARANTOR’S GUARANTY
OF THE GUARANTEED INDEBTEDNESS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY THE GUARANTOR AS A FINAL AND
COMPLETE EXPRESSION OF THE TERMS OF THIS GUARANTY, AND NO COURSE OF DEALING AMONG THE GUARANTOR, THE AGENT, AND THE LENDERS, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT, OR MODIFY ANY TERM OF THIS GUARANTY. THERE ARE NO ORAL AGREEMENTS AMONG THE GUARANTOR, THE AGENT, AND THE LENDERS. 
  
 22.      THIS GUARANTY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA AND THE APPLICABLE LAWS OF THE U.S. 
  
 [Remainder of page intentionally left blank] 
  

 9 

 EXECUTED as of the 23rd day of August, 2000. 
  
 THE GUARANTOR: 
  
 WILLIAMS-SONOMA, INC. 
  
  
 By: __________________________________________ 
 Name:
________________________________________ 
 Title: _________________________________________ 
  
 WILLIAMS-SONOMA STORES, INC. 
  
  
 By: __________________________________________ 
 Name:
________________________________________ 
 Title: _________________________________________ 
  
  
 WILLIAMS-SONOMA STORES, LLC 
  
  
 By: __________________________________________ 
 Name: ________________________________________ 
 Title: _________________________________________ 
  
  
 HOLD EVERYTHING, INC.

  
  
 By: __________________________________________ 
 Name: ________________________________________ 
 Title: _________________________________________ 
  
  
 POTTERY BARN, INC.

  
  
 By: __________________________________________ 
 Name: ________________________________________ 
 Title: _________________________________________ 
  

 10 

 POTTERY BARN KIDS, INC. 
  
  
 By:
_______________________________________ 
 Name: _____________________________________ 
 Title: ______________________________________ 
  

 
 CHAMBERS CATALOG COMPANY, INC. 
  
  
 By: _______________________________________ 
 Name: _____________________________________

 Title: ______________________________________ 
  
  
 WILLIAMS-SONOMA RETAIL
SERVICES, INC. 
  
  
 By: _______________________________________ 
 Name: _____________________________________ 
 Title: ______________________________________ 
  

 
 WILLIAMS-SONOMA DIRECT, INC. 
  
  
 By: _______________________________________ 
 Name: _____________________________________

 Title: ______________________________________ 
  

 11 

 EXHIBIT F 
  
 FORM OF NOTICE OF BORROWINGS, CONVERSIONS, CONTINUATIONS OR 
 REPAYMENTS 

 NOTICE OF BORROWINGS, CONVERSIONS, CONTINUATIONS OR REPAYMENTS 
  
 Date:
                            , 20         
  
 Bank of America, N.A., as Agent 
 Credit Services 
 1850 Gateway Boulevard 
 5th Floor 
 CA4-706-05-09 
 Concord CA 94520 
  
 Attention:  Leroy Granby 
  
     Reference is made to that certain Third Amended and Restated Credit Agreement, dated as of February
    , 2005 (as the same may be amended, restated or otherwise modified from time to time, the (“Credit Agreement”), among Williams-Sonoma, Inc. (the “Borrower”), the Lenders party thereto
(the “Lenders”) and Bank of America, N.A., as administrative agent for the Lenders (the “Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement. 
  
     The Borrower hereby
gives this Notice of Borrowings, Conversions, Continuations or Prepayments (“Notice”), irrevocably, pursuant to Section 5.3 of the Credit Agreement. The Borrower hereby notifies you of the following (check and/or complete the
applicable item):1 
  

									
	 _____
	  	(a)	  	    Borrowings.	  	 	  	 
		
	 	  	 (i)     Pursuant to the Credit Agreement, the Borrower requests a new borrowing under the Loan in the amount of
$             on                     ,
20    .

		
	 	  	 (ii)    The borrowing will be a [Revolving Loan] [Swingline Advance].

		
	 	  	 (iii)    If the borrowing is a Revolving Loan

		
	 	  	 (A)    the borrowing will be of the following Type:  [Base Rate Balance] [Libor Balance]

		
	 	  	 (B)    if the borrowing will be a Libor Balance, the Interest Period for such Balance will be [one week] [
             month(s)].

		
	 	  	 (iv)    If the borrowing is a Swingline Advance

		
	 	  	 (A)    the borrowing will be of the following Type:  [Base Rate Balance] [IBOR Balance]

 ______________________ 
 1 The Borrower shall also be required to provide the additional information (if any) required by the Credit
Agreement. 

									
	 	  	 (B)    if the borrowing will be an IBOR Balance, the Interest Period for such Balance will be
         day(s).

			
	 _____
	  	(b)	  	    [Conversion] [Continuation] of Loan.
		
	 	  	 (i)     The Borrower requests a [Conversion] [Continuation] of the Revolving Loan in the amount of
$             on                     ,
20    .

		
	 	  	 (A)    The Type of Balance to be [Converted] [Continued] will be a [Base Rate Balance] [Libor Balance].

		
	 	  	 (B)    The Revolving Loan resulting from the [Conversion] [Continuation] will be a [Base Rate Balance] [Libor
Balance].

		
	 	  	 (C)    If the Revolving Loan resulting from the [Conversion] [Continuation] will be a Libor Balance, the Interest Period for
such Balance will be [one week] [              month(s)].

		
	 	  	 (ii)     The Borrower requests a [Conversion] [Continuation] of the Swingline Advances in the amount of
$             on                     ,
20    .

		
	 	  	 (A)    The Type of Balance to be [Converted] [Continued] will be [a Base Rate Balance] [an IBOR Balance].

		
	 	  	 (B)    The Swingline Advance resulting from the [Conversion] [Continuation] will be [a Base Rate Balance] [an IBOR
Balance].

		
	 	  	 (C)    If the Swingline Advance resulting from the [Conversion] [Continuation] will be an IBOR Balance, the Interest Period for
such Balance will be          day(s).

			
	 _____
	  	(c)	  	    Prepayment.
		
	 	  	 (i)      The Borrower will make a prepayment of the principal of the Loan in the amount of
$             on                     ,
20    .

		
	 	  	 (ii)     The portion of the Loan to be prepaid will be the [Revolving Loan] [Swingline Advance].

		
	 	  	 (iii)    If the portion of the Loan to be prepaid is the Revolving Loan

		
	 	  	 (A)    the portion of the Revolving Loan being prepaid will be of the following Type: [Base Rate Balance] [Libor
Balance]

		
	 	  	 (B)    if the portion of the Revolving Loan being prepaid is a Libor Balance, it has an Interest Period of [one week]
[             month(s)] that will end on                     ,
20        .

		
	 	  	 (iv)    If the portion of the Loan to be prepaid is the Swingline Advances

  

 -2- 

									
	 	  	 (A)    the portion of the Swingline Advances being prepaid will be of the following Type:  [Base Rate Balance] [IBOR
Balance]

		
	 	  	 (B)    if the portion of the Swingline Advances being prepaid is an IBOR Balance, it has an Interest Period of
[     day(s)] that will end on                     , 20    ].

			
	 _____
	  	(d)	  	    Termination or Reduction of Commitment(s).
		
	 	  	 (i)      The Borrower hereby terminates the Commitments effective as of
                    , 20    .

		
	 	  	 (ii)     The Borrower hereby reduces the Commitments from
$             in aggregate principal amount to $             in aggregate principal amount effective as of
                    , 20    .

  
     The Borrower hereby certifies, represents and warrants to the Agent and the Lenders that all of the conditions precedent to the borrowing, Conversion, Continuation, prepayment and/or termination or reduction of
Commitment requested pursuant to this Notice contained in the Loan Documents (including, without limitation, the conditions precedent set forth in Article 8 of the Credit Agreement) have been satisfied in full (without exception or waiver
except as may have been agreed to by the Agent and the Lenders in accordance with the Credit Agreement). 
  
     IN WITNESS WHEREOF, the undersigned has executed this Notice as of the day and year first above written. 
  
 WILLIAMS-SONOMA, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________

 Title: __________________________________ 
  

 -3- 

 EXHIBIT G 
  
 FORM OF JOINDER AGREEMENT 

 JOINDER AGREEMENT 
  
 This Joinder Agreement (the “Agreement”) dated as of
                 , 20    , is executed by the undersigned (the “Debtor”) for the benefit of BANK OF AMERICA,
N.A., in its capacity as administrative agent for the Lenders party to the hereafter identified Credit Agreement (the “Agent”) and for the benefit of the Lenders in connection with that certain Third Amended and Restated Credit
Agreement, dated as of February     , 2005, among WILLIAMS-SONOMA, INC. (the “Borrower”), the Agent, and the Lenders from time to time party thereto (as such agreement may be amended, restated or otherwise
modified, the “Credit Agreement”; capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Credit Agreement). 
  
 RECITALS: 
  
 A.        The Debtor is a Subsidiary of the Borrower. 
  
 B.        Proceeds of the Loan under
the Credit Agreement will be utilized, in part, to provide working capital to the Debtor for its operations. 
  
 C.        As consideration for the benefits derived by the Debtor as described in Recital B, the Debtor has
agreed to become a party as a “Guarantor” to that certain Guaranty Agreement, dated as of August 23, 2000, entered into by each of the Guarantors pursuant to the terms of the Credit Agreement for the benefit of the Agent (the
“Guaranty Agreement”). The Debtor now desires to become a “Guarantor” under the Guaranty Agreement as required by the Credit Agreement. 
  
 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Debtor hereby agrees as follows: 
  
 AGREEMENT: 
  
 1.        The Debtor hereby assumes all the obligations of a “Guarantor” under the Guaranty Agreement and agrees that it is a “Guarantor” and bound as a “Guarantor” under
the terms of the Guaranty Agreement as if it had been a signatory thereto. In accordance with the foregoing and for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Debtor irrevocably and unconditionally
guarantees to the Agent and the Lenders the full and prompt payment and performance of the Guaranteed Indebtedness (as defined in the Guaranty Agreement) upon the terms and conditions set forth in the Guaranty Agreement. 
  
 2.        This Agreement shall be
deemed to be part of, and a modification to, the Guaranty Agreement and shall be governed by all the terms and provisions of the Guaranty Agreement, which terms are incorporated herein by reference, are ratified and confirmed and shall continue in
full force and effect as valid and binding agreements of the Debtor enforceable against the Debtor. The Debtor hereby waives notice of the Agent’s or any Lender’s acceptance of this Agreement. 

 IN WITNESS WHEREOF, the Debtor has executed this Agreement as of the day and year first written above.

  
 GUARANTOR: 
 _______________________________________ 
  
 By: ____________________________________ 
 Name: __________________________________ 
 Title: ___________________________________

  

 -2- 

 EXHIBIT H 
  
 FORM OF ACKNOWLEDGMENT OF INTERCREDITOR AGREEMENT 

 AGREEMENT REGARDING INTERCREDITOR AGREEMENT 
  
 Reference is hereby made to that certain Intercreditor Agreement dated August
1, 1995 (the “Intercreditor Agreement”), by and among BANK OF AMERICA, N.A., (formerly Bank of America National Trust and Savings Association) as “Lender”, and each of Teachers Insurance And Annuity Association of America,
Transamerica Life Insurance & Annuity Company, Transamerica Occidental Life Insurance Company, and New England Mutual Life Insurance Company as “Noteholders”. Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings ascribed thereto in the Intercreditor Agreement. 
  
 The Intercreditor Agreement was executed in connection with extensions of credit by the Noteholders and the Lender to WILLIAMS-SONOMA, INC., a California corporation (the “Company”), and provides,
among other things, for the pro rata sharing of certain payments under guaranties provided by the subsidiaries of the Company for the Company’s indebtedness to the Noteholders, the Lender and other lenders. 
  
 The undersigned,
                                        
                     (“                ”)
proposes to enter into a Third Amended and Restated Credit Agreement dated as of February     , 2005 (the “Credit Agreement”), with the Company pursuant to which various lenders, including
                                 will provide the Company with a revolving credit
facility of up to $                , which Credit Agreement will be guaranteed by certain of the Company’s subsidiaries (said guaranties being hereafter
referred to individually as a “Syndicated Credit Agreement Subsidiary Guaranty”, and collectively as the “Syndicated Credit Agreement Subsidiary Guaranties”). 
  
                                       
       hereby acknowledges that it has received a copy of the Intercreditor Agreement, has reviewed same and is familiar with all of the terms and provisions thereof. 
  
 By execution hereof,
                                        
     hereby agrees (i) to be bound by all of the terms and provisions of the Intercreditor Agreement with respect to payments under any Syndicated Credit Agreement Subsidiary Guaranty, (ii) that each Syndicated Credit
Agreement Subsidiary Guaranty shall constitute a “Subsidiary Guaranty” under and as defined in the Intercreditor Agreement, (iii) that all principal of, premium, if any, and interest on, the loans made under and pursuant to the Credit
Agreement and any other obligations of the Company under the Credit Agreement which are guaranteed by the Syndicated Credit Agreement Subsidiary Guaranties shall be “Subject Obligations” under and as defined in the Intercreditor Agreement,
(iv) that the Credit Agreement shall be a “Bank Credit Agreement” under and as defined in the Intercreditor Agreement, (v) that loans made under the Credit Agreement shall be “Loans” under and as defined in the Intercreditor
Agreement, and (vi) that                                     
shall be and become a “Creditor” under and as defined in the Intercreditor Agreement. 
  
 Any notices under the Intercreditor Agreement shall be delivered to
                                        
at the following address: 
  

 -2- 

			
	 	 	_______________________________
	 	 	_______________________________
	 	 	_______________________________
	 	 	Attention:       ____________________
	 	 	                          [Title]

  
 The signatories hereto
may execute this agreement in separate counterparts, all of which will constitute one and the same instrument when taken together. 
  
 Executed as of this      day of February, 2005. 
  
 ______________________________________ 
  
  
 By:
___________________________________ 
 Name: _________________________________ 
 Title: __________________________________ 
  
  
  
 BANK OF AMERICA, N.A., as Lender under the Intercreditor Agreement and as the administrative agent and L/C Issuer under the Credit Agreement, hereby acknowledges the foregoing undertaking by
                                    , and confirms and
reaffirms its obligations under the Intercreditor Agreement. 
  
 BANK OF AMERICA, N.A. 
  
  
 By: ___________________________________ 
 Name: _________________________________ 
 Title: __________________________________

  

 -3- 

 Further, each of the undersigned hereby acknowledges and agrees to the foregoing: 
  
 WILLIAMS-SONOMA, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________

 Title: __________________________________ 
  
  
  
 WILLIAMS-SONOMA STORES, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________ 
 Title: __________________________________ 
  
  
  
 WILLIAMS-SONOMA STORES, LLC 
  
 By Williams-Sonoma, Inc. its Sole Manager. 
  
  
 By: ___________________________________ 
 Name: _________________________________

 Title: __________________________________ 
  
  
  
 HOLD EVERYTHING, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________ 
 Title: __________________________________ 
  
  
  
 POTTERY BARN, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________

 Title: __________________________________ 
  

 -4- 

 POTTERY BARN KIDS, INC. 
  
  
 By:
______________________________________ 
 Name: ____________________________________ 
 Title: _____________________________________ 
  
  
  
 WILLIAMS-SONOMA HOME, INC. (f/k/a 
 CHAMBERS CATALOG COMPANY, INC.) 
  
  
 By: ______________________________________ 
 Name: ____________________________________

 Title: _____________________________________ 
  
  
  
 WILLIAMS-SONOMA RETAIL SERVICES, INC. 
  
  
 By: ______________________________________ 
 Name: ____________________________________ 
 Title: _____________________________________ 
  
  
  
 WILLIAMS-SONOMA DIRECT, INC. 
  
  
 By: ______________________________________ 
 Name: ____________________________________ 
 Title: _____________________________________ 
  
  
  
 POTTERY BARN TEEN, INC. 
  
  
 By: ______________________________________ 
 Name: ____________________________________ 
 Title: _____________________________________ 
  
  
  
 WEST ELM, INC. 
  

 -5- 

 By: ___________________________________ 
 Name: _________________________________ 
 Title: __________________________________ 
  
  
  
 WILLIAMS-SONOMA PUBLISHING, INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________

 Title: __________________________________ 
  
  
  
 WILLIAMS-SONOMA GIFT MANAGEMENT, 
 INC. 
  
  
 By: ___________________________________ 
 Name: _________________________________ 
 Title: __________________________________

  

 -6- 

  
 Schedule 1 
 to 
 Williams-Sonoma, Inc. 
 Credit Agreement 
  
 Existing Letters of Credit 
  

								
	LC#

	  	 Beneficiary

	  	Amount

	  	 Expiration
 Date

	#3037939	  	Travelers Indemnity Company	  	$	75,000,000	  	4/30/05
	#3049290	  	United States Fidelity & Guaranty Company	  	$	2,450,000	  	6/1/05
	#3049291	  	Hartford Fire Insurance Company	  	$	8,000,000	  	6/1/05
	#3050164	  	Liberty Mutual Insurance Company	  	$	290,554	  	7/15/05
	#3058296	  	United States Fidelity & Guaranty Company	  	$	6,500,000	  	6/1/05
	#3063105	  	The Bank of New York Trust Company	  	$	14,447,819.36	  	6/15/05

  
 Schedule 15.7 
 to 
 Williams-Sonoma, Inc. 
 Credit Agreement 
  
 Processing And Recordation Fees 
  
 The Agent will charge a processing and recordation fee (an “Assignment Fee”) in the amount of $2,500 for each assignment; provided, however, that in the event of two or more concurrent assignments to members
of the same Assignee Group (which may be effected by a suballocation of an assigned amount among members of such Assignee Group) or two or more concurrent assignments by members of the same Assignee Group to a single Eligible Assignee (or to an
Eligible Assignee and members of its Assignee Group), the Assignment Fee will be $2,500 plus the amount set forth below: 
  

				
	 Transaction

	  	Assignment Fee

	 First four concurrent assignments or suballocations to members of an Assignee Group (or from members of an Assignee Group, as
applicable)
	  	 	-0-
		
	 Each additional concurrent assignment or suballocation to a member of such Assignee Group (or from a member of such Assignee Group, as
applicable)
	  	$	500

 Schedule 15.12 
 to 
 Williams-Sonoma, Inc. 
 Credit Agreement 
  
 Addresses
for Notices 
  
 WILLIAMS - SONOMA, INC.: 
  
 Williams-Sonoma, Inc. 
 3250 Van Ness Avenue 
 San Francisco,
California 94109 
 Attention:         Sharon McCollam, Senior Vice President, Chief Financial
Officer 
 Telecopy No.:  415-733-3180 
  
 Website Address:     www.williams-sonomainc.com 
  

 BANK OF AMERICA, N.A. (as the Agent) 
  
 Funding Notices: 
  

			
	Bank of America, N.A.
	Credit Services
	1850 Gateway Boulevard, 5th
Floor
	CA4-706-05-09
	Concord, CA 94520
	Attention:	 	Leroy Granby
	Telephone:	 	925-675-8368
	Telecopier:	 	888-969-2419
	Electronic Mail:    Leroy.s.granby@bankofamerica.com

  
 Other Notices: 
  

			
	Bank of America, N.A.
	Agency Management
	800 Fifth Avenue, 37th Floor
	WA1-501-37-20
	Seattle, WA 98104
	Attention:	 	Tiffany Shin
	Telephone:	 	206-358-0078
	Telecopier:	 	206-358-0971
	Electronic Mail:    tiffany.shin@bankofamerica.com

  
 Agent’s Payment Instructions:

  
 Bank of America, N.A. 
 Dallas, TX 
 ABA # 111000012 
 Account Name: Corporate FTA 
 Account Number:
3750836479 
 Attention:    Leroy Granby 
 Reference:    Williams-Sonoma 
  

 BANK OF AMERICA, N.A. (as L/C Issuer) 
  
 For Standby Letters of Credit: 
  

			
	Bank of America, N.A.
	Trade Operations-Standby LC
	333 S. Beaudry Avenue, 19th
Floor
	CA9-703-19-23
	Los Angeles, CA 90017
	Attention:	 	Bolivar Carrillo
	Telephone:	 	213-345-0089
	Telecopier:	 	213-345-6684
	Electronic Mail:    Bolivar.carrillo@bankofamerica.com

  
 For Commercial Letters of Credit:

  

			
	Bank of America, N.A.
	Trade Operations-Commercial LC
	333 S. Beaudry Avenue, 19th
Floor
	CA9-703-19-15
	Los Angeles, CA 90017
	Attention:	 	Frantz Bellevue
	Telephone:	 	213-345-6616
	Telecopier:	 	213-345-9665
	Electronic Mail:    frantz.bellevue@bankofamerica.com

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