Exhibit 10.1

 

[Execution]

 

AMENDMENT NO. 2 AND CONSENT TO CREDIT AGREEMENT

 

This AMENDMENT NO. 2 AND CONSENT TO CREDIT AGREEMENT (this “Amendment”), dated
as of July 29, 2005, is entered into by and among WINN-DIXIE STORES, INC.,
Debtor and Debtor-in-Possession, a Florida corporation (“Winn-Dixie”),
WINN-DIXIE MONTGOMERY, INC., Debtor and Debtor-in-Possession, a Florida
corporation (“W-D Montgomery”), WINN-DIXIE PROCUREMENT, INC., Debtor and
Debtor-in-Possession, a Florida corporation (“W-D Procurement”), WINN-DIXIE
RALEIGH, INC., Debtor and Debtor-in-Possession, a Florida corporation (“W-D
Raleigh”), WINN-DIXIE SUPERMARKETS, INC., Debtor and Debtor-in-Possession, a
Florida corporation (“W-D Supermarkets”), DIXIE STORES, INC., Debtor and
Debtor-in-Possession, a New York corporation (“Dixie Stores” and together with
Winn-Dixie, W-D Montgomery, W-D Procurement, W-D Raleigh and W-D Supermarkets,
each a “Borrower” and, collectively, “Borrowers”), the various financial
institutions and other Persons from time to time parties to the Credit Agreement
(“Lenders”), WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent and
collateral monitoring agent for the Lenders (in such capacities, “Agent”),
GENERAL ELECTRIC CAPITAL CORPORATION and THE CIT GROUP/BUSINESS CREDIT, INC., as
syndication agents for the Lenders (in such capacities, “Syndication Agents”),
and BANK OF AMERICA, NA, MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH
BUSINESS FINANCIAL SERVICES, INC., GMAC COMMERCIAL FINANCE LLC and WELLS FARGO
FOOTHILL, LLC, as documentation agents for the Lenders (in such capacities,
“Documentation Agents”).

 

W I T N E S S E T H:

 

WHEREAS, Agent and Lenders have entered into financing arrangements with
Borrowers and Guarantors pursuant to which Agent and Lenders may, upon certain
terms and conditions, make loans and advances and provide other financial
accommodations to Borrowers as set forth in Credit Agreement, dated February 23,
2005, as amended by Amendment No. 1 to Credit Agreement, dated March 31, 2005,
among Agent, Syndication Agents, Documentation Agents, Lenders, Wachovia Capital
Markets, LLC, as sole lead arranger and sole bookrunner, and Borrowers (as the
same now exists and may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced, the “Credit Agreement”) and the other agreements,
documents and instruments referred to therein or any time executed and/or
delivered in connection therewith or related thereto, including this Amendment
(all of the foregoing, together with the Credit Agreement, as the same now exist
or may hereafter be amended, modified, supplemented, extended, renewed, restated
or replaced, being collectively referred to herein as the “Loan Documents”);

 

WHEREAS, Borrowers have requested that the Agent and the Required Lenders make
certain amendments to the Credit Agreement, and the Agent and Required Lenders
are willing to agree to such amendments, subject to the terms and conditions
contained herein; and

 

WHEREAS, the parties hereto desire to enter into this Amendment to evidence and
effectuate such amendments, subject to the terms and conditions and to the
extent set forth herein;

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NOW, THEREFORE, in consideration of the premises and covenants set forth herein
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

 

1. Definitions.

 

(a) Additional Definitions. As used herein, in the Credit Agreement or in any of
the other Loan Documents, the following terms shall have the meanings given to
them below, and the Credit Agreement shall be deemed and is hereby amended to
include, in addition and not in limitation, the following definitions in their
proper alphabetical order:

 

(i) “Amendment No. 2” means Amendment No. 2 to Credit Agreement, dated as of
July 29, 2005, among Agent, Lenders and Borrowers, as the same now exists and
may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

 

(ii) “GOB Agency Agreement” means the Agency Agreement, dated as of June 30,
2005, between Winn-Dixie and a joint venture composed of Hilco Merchant
Resources, LLC and Gordon Brothers Retail Partners, LLC.

 

(iii) “GOB Sale Documents” means the GOB Sale Order, the GOB Agency Agreement,
and the other agreements, documents and instruments to be executed and/or
delivered by any Borrower or Guarantor in connection therewith or related
thereto and all exhibits and schedules thereto, as the same now exist and may
hereafter be amended, modified or supplemented.

 

(iv) “GOB Sale Order” means the Order (A) Authorizing the Debtors to Retain
Liquidating Agent and Approving Agency Agreement, (B) Authorizing the Debtors to
Sell Merchandise Free and Clear of Liens through Store Closing Sales in
Accordance with the Attached Guidelines and (C) Granting Related Relief, which
was entered by the Bankruptcy Court on or about July 27, 2005.

 

(v) “Pharmacy Scripts Sale Documents” means the Pharmacy Scripts Sale Order, and
the agreements, documents and instruments to be executed and/or delivered by any
Borrower or Guarantor in connection therewith or related thereto and all
exhibits and schedules thereto, as the same now exist and may hereafter be
amended, modified or supplemented.

 

(vi) “Pharmacy Scripts Sale Order” means collectively, those Orders (A)
Authorizing the Sale of Pharmaceutical Prescriptions and Inventory Free and
Clear of Liens, Claims and Interests and (B) Granting Related Relief, which were
entered by the Bankruptcy Court on or about July 28, 2005.

 

(vii) “Reclamation Claim Documents” means the Reclamation Claim Order, the
Reclamation Claim Stipulation and the other agreements, documents and
instruments to be executed and/or delivered by any Borrower or Guarantor in
connection therewith or related thereto and all exhibits and schedules thereto,
as the same now exist and may hereafter be amended, modified or supplemented.

 

(viii) “Reclamation Claim Stipulation” means the Stipulation Between Debtors and
Certain Trade Vendors Regarding Reconciliation and Treatment of Trade Vendors’
Reclamation Claims and Establishing Post-Petition Trade Lien Program, dated July
29, 2005.

 

(ix) “Reclamation Claim Order” means the Order Approving Stipulation Between
Debtors and Certain Trade Vendors Regarding Reconciliation and Treatment of
Trade Vendors’ Reclamation Claims and Establishing Post-Petition Trade Lien
Program, which was entered by the Bankruptcy Court on or about July 29, 2005.

 

2

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(x) “Retail Store Sale Documents” means the Retail Store Sale Order and the
other agreements, documents and instruments to be executed and/or delivered by
any Borrower or Guarantor in connection therewith or related thereto and all
exhibits and schedules thereto, as the same now exist and may hereafter be
amended, modified or supplemented.

 

(xi) “Retail Store Sale Order” means collectively, those Orders (A) Authorizing
the Sale of Assets Free and Clear of Liens, Claims and Interests and Exempt from
Taxes, (B) Authorizing the Assumption and Assignment of Leases and Contracts and
(C) Granting Related Relief, which were entered by the Bankruptcy Court on or
about July 27 and July 28, 2005.

 

(b) Amendments to Definitions.

 

(i) Bankruptcy Court. The definition of “Bankruptcy Court” set forth in the
Credit Agreement is hereby amended by deleting such definition in its entirety
and replacing it with the following:

 

  “ ‘Bankruptcy Court’ means the United States Bankruptcy Court for the Middle
District of Florida, Jacksonville Division.”

 

(ii) Chapter 11 Cases. The definition of “Chapter 11 Cases” set forth in the
Credit Agreement is hereby amended by deleting such definition in its entirety
and replacing it with the following:

 

“ ‘Chapter 11 Cases’ means the Chapter 11 cases of Borrowers and Guarantors
referred to as In re Winn-Dixie Stores, Inc., et al., Chapter 11 Case No.
05-03817-3F1, currently pending in the Bankruptcy Court.”

 

(iii) Restructuring Plan. The definition of “Restructuring Plan” set forth in
the Credit Agreement is hereby amended by deleting such definition in its
entirety and replacing it with the following:

 

  “ ‘Restructuring Plan’ means the strategic plan of Winn-Dixie dated May 31,
2005 as described in Schedule VI to the Credit Agreement, as supplemented by the
GOB Sale Documents, the Pharmacy Scripts Sale Documents and the Retail Store
Sale Documents.”

 

(c) Interpretation. Capitalized terms used herein which are not otherwise
defined herein shall have the respective meanings ascribed thereto in the Credit
Agreement.

 

2. Consent to Reclamation Claim Stipulation. Notwithstanding anything to the
contrary contained in the Credit Agreement or any of the other Loan Documents
and subject to the terms and conditions set forth herein, the Agent and the
Required Lenders hereby consent to the execution and delivery by the Borrowers
of the Reclamation Claim Stipulation, so long as the conditions precedent set
forth below are satisfied as determined by the Agent.

 

3. Liens. Section 7.2.3 of the Credit Agreement is hereby amended by (a)
deleting “and” at the end of clause (p) of such Section and (b) inserting the
following immediately prior to the period at the end of such Section:

 

  “; and (r) the Liens of Participating Vendors (as defined in the Reclamation
Claim Stipulation) upon the Collateral to the extent permitted by the
Reclamation Claim Order; provided, that,

 

3

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(i) such Liens shall be junior and subordinate in all respects to the Liens,
claims and other rights of the Agent and the Lenders granted pursuant to this
Agreement, the other Loan Documents, the Final Financing Order, any other order
of the Bankruptcy Court or otherwise;

 

(ii) prior to the Termination Date, neither any agent for the holders of such
Liens nor any Participating Vendor in respect to any claim secured by such Liens
shall be permitted or have any right to: (A) exercise any rights or remedies
with respect to the Collateral, whether arising under the Reclamation Claim
Documents or otherwise, including any right to vote in the Chapter 11 Cases with
respect to any interest in the Collateral, or any right to foreclose or
otherwise move or take action against the Collateral; (B) seek any adequate
protection or relief from the automatic stay of the Bankruptcy Code or any other
stay in the Chapter 11 Cases with respect to any portion of the Collateral; or
(C) direct the Agent, any Lender or any holder of any of the Obligations (or any
representative thereof) with respect to any matters in connection with the
foregoing;

 

(iii) prior to the Termination Date, neither any agent for the holders of such
Liens nor any Participating Vendor solely in respect of its capacity as a holder
of such Liens shall be permitted or have any right to: (A) object to the use of
cash collateral with respect to the Collateral in the Chapter 11 Cases; (B)
object to the Agent or the Lenders seeking any adequate protection or relief
from the automatic stay with respect to the Collateral; (C) object to the sale
or other disposition of any assets or properties of the Borrowers or Guarantors,
including without limitation any of the Collateral; (D) take any action or vote
in any way so as to directly or indirectly challenge or contest (1) the validity
or the enforceability of any of the Loan Documents or any Liens granted to the
Agent, (2) the rights and duties of the Agent or any Lender established in the
Loan Documents, or (3) the validity or enforceability of the Reclamation Claim
Stipulation or Reclamation Claim Order; (E) seek, or acquiesce in any request,
to dismiss the Chapter 11 Cases or to convert the Chapter 11 Cases to cases
under Chapter 7 of the Bankruptcy Code; (F) seek, or acquiesce in any request
for, the appointment of a trustee or examiner with expanded powers for any
Borrower or Guarantor; (G) propose, vote in favor of or otherwise approve a plan
of reorganization or plan of arrangement or liquidation, or file any motion or
pleading in support of any plan of reorganization or plan of arrangement or
liquidation, unless it provides for the payment in full of the Obligations or
unless the Agent and the Lenders have approved of the treatment of their claims
with respect to the Obligations under such plan; (H) object to the treatment
under a plan of reorganization of the claims of the Agent or any Lender with
respect to the Obligations; (I) directly or indirectly oppose any relief
requested or supported by the Agent or the Lenders, including any sale or other
disposition of property free and clear of the liens and security interests of
the holders of such Liens under Section 363(f) of the Bankruptcy Code or any
other similar provision of applicable law; or (J) direct the Agent, any Lender
or any holder of any of the Obligations (or any representative thereof) with
respect to any matters in connection with the foregoing; and

 

4

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(iv) the extent, effectiveness, enforceability and validity of such Liens shall
otherwise be subject to the terms and conditions of the Reclamation Claim
Stipulation and the Reclamation Claim Order”.

 

4. Permitted Dispositions.

 

(a) Section 7.2.11(b)(i) of the Credit Agreement is hereby amended by deleting
such clause in its entirety and replacing it with the following:

 

“(i) the aggregate fair market value, as well as the aggregate book value, of
all such asset sales do not exceed $25,000,000 in any Fiscal Year and
$75,000,000 in the aggregate for the term of this Agreement; provided, that:

 

(A) (1) if any single asset sold for less than $1,000,000, then such asset shall
not be treated as usage of either the $25,000,000 or $75,000,000 baskets
contained in this clause (b)(i) unless such asset is sold as part of a group of
assets in a single transaction or a series of related transactions for an amount
in excess of $5,000,000 in the aggregate, in which case the entire amount shall
be treated as usage of the $25,000,000 and $75,000,000 baskets contained in this
clause (b)(i); and (2) if any single asset is sold for $1,000,000 or more, then
the entire amount shall be treated as usage of the $25,000,000 and $75,000,000
baskets contained in this clause (b)(i);

 

(B) assets sold in connection with Dispositions or facility closings as part of
the Restructuring Plan shall not be treated as usage of either the $25,000,000
or $75,000,000 baskets contained in this clause (b)(i); and

 

(C) Dispositions of assets that are not Borrowing Base Assets listed in Item
7.2.11(b)(i) of the Disclosure Schedule up to an aggregate net book value amount
not to exceed $65,000,000 shall not be treated as usage of either the
$25,000,000 or $75,000,000 baskets contained in this clause (b)(i);”

 

(b) Section 7.2.11(b)(iii) of the Credit Agreement is hereby amended by deleting
such Section in its entirety and replacing it with the following:

 

“(iii) any Net Disposition Proceeds shall be applied pursuant to clause (b)(ii)
of Section 3.1.1 to the extent required by the terms thereof; provided, that,
(A) any Net Disposition Proceeds relating to Dispositions of Inventory made
pursuant to the GOB Sale Documents shall be promptly remitted to a Majority
Account and (B) upon the receipt by any Borrower or any of its Subsidiaries of
any Net Disposition Proceeds relating to any other Dispositions made pursuant to
the Restructuring Plan, the Borrowers shall make a payment in respect of the
Revolving Loans or the Swing Line Loans (or both) in an aggregate amount equal
to the amount of such Net Disposition Proceeds;”

 

5. Schedules to Credit Agreement

 

(a) Percentages; LIBO Offices; Domestic Offices. Schedule II to the Credit
Agreement is hereby deleted in its entirety and replaced with Schedule II to
this Amendment.

 

(b) Restructuring Plan. Schedule VI to the Credit Agreement is hereby deleted in
its entirety and replaced with Schedule VI to this Amendment.

 

5

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6. Conditions Precedent to Amendment. The provisions contained herein shall be
effective as of the date hereof, but only upon the satisfaction of each of the
following conditions precedent, in a manner satisfactory to Agent:

 

(a) The Agent shall have received an original of this Amendment, duly
authorized, executed and delivered by each Borrower and each Lender;

 

(b) The Agent shall have received true, correct and complete copies of all of
the Reclamation Claim Documents, the GOB Sale Documents, the Retail Store Sale
Documents and the Pharmacy Scripts Sale Documents, each of which shall be in
form and substance satisfactory to the Agent in its discretion;

 

(c) The Borrowers and the Guarantors shall have complied in full with the notice
and all other requirements as provided for under the GOB Sale Order, the Retail
Store Sale Order, the Pharmacy Scripts Sale Order and the Reclamation Claim
Order;

 

(d) The GOB Sale Order, the Retail Store Sale Order, the Pharmacy Scripts Sale
Order and the Reclamation Claim Order (i) shall have been entered by the
Bankruptcy Court, (ii) shall be in full force and effect and (iii) shall not
have been reversed, stayed, modified or amended without the express written
consent of the Agent;

 

(e) Except as otherwise consented to by the Agent at any time, no application or
motion shall have been made to the Bankruptcy Court for any stay, modification
or amendment of any of the GOB Sale Order, the Retail Store Sale Order, the
Pharmacy Scripts Sale Order or the Reclamation Claim Order and no stay or motion
for a stay with respect to same shall have been entered or made;

 

(f) Agent shall have received, in form and substance satisfactory to Agent, all
consents, waivers, acknowledgments and other agreements from third persons which
Agent may deem necessary or desirable in order to effectuate the provisions or
purposes of this Amendment; and

 

(g) as of the date of this Amendment and after giving effect hereto, no Default
or Event of Default shall have occurred and be continuing.

 

7. Additional Representations, Warranties and Covenants. Each Borrower, jointly
and severally, represents, warrants and covenants with and to Agent and Lenders
as follows, which representations, warranties and covenants are continuing and
shall survive the execution and delivery hereof, and the truth and accuracy of,
or compliance with each, together with the representations, warranties and
covenants in the other Loan Documents, being a continuing condition of the
making of Loans by Lenders to Borrowers:

 

(a) Borrowers and Guarantors shall not, directly or indirectly, amend, modify,
alter or change the terms of any of the Reclamation Claim Documents, the GOB
Sale Documents, the Retail Store Sale Documents and the Pharmacy Scripts Sale
Documents, or enter into any Reclamation Claim Documents, GOB Sale Documents,
Retail Store Sale Documents or Pharmacy Scripts Sale Documents not in effect as
of the date hereof without in each case the prior written consent of the Agent;

 

(b) Borrowers and Guarantors shall furnish to Agent all notices or demands in
connection with the Reclamation Claim Documents, the GOB Sale Documents, the
Retail Store Sale Documents and the Pharmacy Scripts Sale Documents either
received by any Borrower or Guarantor or on its behalf promptly after the
receipt thereof, or sent by any Borrower or Guarantor or on its behalf
concurrently with the sending thereof, as the case may be;

 

6

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(c) this Amendment and the other agreements, documents and instruments to be
executed and/or delivered by any Borrower in connection herewith or related
hereto (together with this Amendment, collectively, the “Amendment Documents”)
have been duly authorized, executed and delivered by all necessary action on the
part of each Borrower which is a party hereto and thereto and, if necessary, its
stockholders and the agreements and obligations of Borrowers contained herein
and therein constitute legal, valid and binding obligations of each Borrower
enforceable against such Borrower in accordance with their respective terms;

 

(d) neither the execution and delivery of this Amendment, nor the consummation
of the transactions herein contemplated, nor compliance with the provisions
hereof (i) does or shall conflict with or result in the breach of, or constitute
a default in any respect under, any mortgage, deed of trust, security agreement,
agreement or instrument to which any Borrower is a party or may be bound, or
(ii) shall violate any provision of the Certificate of Incorporation or By-Laws
of any Borrower; and

 

(e) as of the date of this Amendment, no Default or Event of Default exists or
has occurred.

 

8. Effect of this Amendment; Entire Agreement. Except as modified pursuant
hereto, no other changes or modifications to the Loan Documents are intended or
implied, and in all other respects the Loan Documents are hereby specifically
ratified, restated and confirmed by all parties hereto as of the date hereof.
This Amendment represent the entire agreement and understanding concerning the
subject matter hereof and thereof between the parties hereto, and supersede all
other prior agreements, understandings, negotiations and discussions,
representations, warranties, commitments, proposals, offers and contracts
concerning the subject matter hereof, whether oral or written. To the extent of
conflict between the terms of this Amendment and the other Loan Documents, the
terms of this Amendment shall control. The Credit Agreement and this Amendment
shall be read and construed as one agreement.

 

9. Further Assurances. The parties hereto shall execute and deliver such
additional documents and take such additional action as may be reasonably
necessary or desirable to effectuate the provisions and purposes of this
Amendment.

 

10. Governing Law. This Amendment will be deemed to be a contract made under and
governed by the laws of the State of New York (including for such purpose
sections 5-1401 and 5-1402 of the General Obligations Law of the State of New
York) but excluding any principles of conflicts of law or other rule of law that
would cause the application of the law of any jurisdiction other than the laws
of the State of New York and the Bankruptcy Code.

 

11. Binding Effect. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns.

 

12. Headings. The headings listed herein are for convenience only and do not
constitute matters to be construed in interpreting this Amendment.

 

13. Counterparts. This Amendment may be executed in any number of counterparts,
but all of such counterparts shall together constitute but one and the same
agreement. In making proof of this Amendment, it shall not be necessary to
produce or account for more than one counterpart thereof signed by each of the
parties hereto. This Amendment may be executed and delivered by telecopier with
the same force and effect as if it were a manually executed and delivered
counterpart.

 

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

 

BORROWERS:

 

WINN-DIXIE STORES, INC.,
Debtor and Debtor-in-Possession, as the Administrative Borrower and a Borrower

By:

 

 

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Title:

   

WINN-DIXIE SUPERMARKETS, INC.,

    Debtor and Debtor-in-Possession,

    as a Borrower

By:

 

 

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Title:

    WINN-DIXIE MONTGOMERY, INC.,
    Debtor and Debtor-in-Possession,
    as a Borrower

By:

 

 

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Title:

    WINN-DIXIE PROCUREMENT, INC.,
    Debtor and Debtor-in-Possession,
    as a Borrower

By:

 

 

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Title:

    WINN-DIXIE RALEIGH, INC.,
    Debtor and Debtor-in-Possession,
    as a Borrower

By:

 

 

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Title:

    DIXIE STORES, INC.,
    Debtor and Debtor-in-Possession,
    as a Borrower

By:

 

 

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Title:

   

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AGENTS AND LENDERS:

 

WACHOVIA BANK, NATIONAL ASSOCIATION,
    as the Administrative Agent, the Collateral
    Monitoring Agent, the Issuer, a Lender and the
    Swing Line Lender

By:

 

 

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Title:

    GENERAL ELECTRIC CAPITAL
CORPORATION,
    as a Syndication Agent and a Lender By:  

 

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Title:     THE CIT GROUP/BUSINESS CREDIT, INC.,
    as a Syndication Agent and a Lender By:  

 

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Title:     BANK OF AMERICA, NA,
    as a Documentation Agent and a Lender By:  

 

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Title:     MERRILL LYNCH CAPITAL, A DIVISION OF
MERRILL LYNCH BUSINESS FINANCIAL
SERVICES, INC., as a Documentation Agent and a
Lender By:  

 

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Title:     GMAC COMMERCIAL FINANCE LLC,
    as a Documentation Agent and a Lender By:  

 

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Title:     WELLS FARGO FOOTHILL, LLC,
    as a Documentation Agent and a Lender By:  

 

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Title:

    LASALLE RETAIL FINANCE, A DIVISION OF
LASALLE BUSINESS CREDIT, INC., AS AGENT
FOR STANDARD FEDERAL BANK, as a Lender By:  

 

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Title:

   

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WESTERNBANK PUERTO RICO, as a Lender

By:

 

 

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Title:

    NATIONAL CITY BUSINESS CREDIT, INC.,
    as a Lender

By:

 

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Title:

    UBS AG, STAMFORD BRANCH,
    as a Lender

By:

 

 

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Title:

    PNC BANK, NATIONAL ASSOCIATION,
    as a Lender

By:

 

 

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Title:

    STATE OF CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM, as a Lender

By:

 

 

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Title:

    AMSOUTH BANK, as a Lender

By:

 

 

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Title:

    WEBSTER BUSINESS CREDIT CORP., as a
Lender

By:

 

 

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Title:

    ISRAEL DISCOUNT BANK OF NEW YORK,
    as a Lender

By:

 

 

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Title:

   

By:

 

 

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Title:

   

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HAMPTON FUNDING LLC, as a Lender By:  

 

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Title:     RZB FINANCE LLC, as a Lender

By:

 

 

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Title:

    By:  

 

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Title:     SOVEREIGN BANK, as a Lender By:  

 

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Title:     ERSTE BANK, as a Lender By:  

 

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Title:

    By:  

 

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Title:     AZURE FUNDING, as a Lender By:  

 

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Title:     SENIOR DEBT PORTFOLIO, as a Lender By:  

 

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Title:     GRAYSON & CO., as a Lender By:  

 

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Title:     EATON VANCE INSTITUTIONAL SENIOR
LOAN FUND, as a Lender By:  

 

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Title:    

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SCHEDULE II

TO

CREDIT AGREEMENT

 

Percentages; LIBO Office; Domestic Office

 

Lender

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   Percentage

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LIBO Office

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Domestic Office

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Wachovia Bank, National Association

   9.373    On file with Agent    On file with Agent

General Electric Capital Corporation

   8.750    On file with Agent    On file with Agent

The CIT Group/Business Credit, Inc.

   8.750    On file with Agent    On file with Agent

Bank of America, NA

   7.813    On file with Agent    On file with Agent Merrill Lynch Capital, a
Division of Merrill Lynch Business Financial Services, Inc.    7.188    On file
with Agent    On file with Agent

GMAC Commercial Finance LLC

   7.812    On file with Agent    On file with Agent

Wells Fargo Foothill, LLC

   7.187    On file with Agent    On file with Agent LaSalle Retail Finance, a
division of LaSalle Business Credit, Inc., as agent for Standard Federal Bank   
5.000    On file with Agent    On file with Agent Westernbank Puerto Rico   
4.063    On file with Agent    On file with Agent National City Business Credit,
Inc.    3.750    On file with Agent    On file with Agent UBS AG, Stamford
Branch    3.750    On file with Agent    On file with Agent PNC Bank, National
Association    3.750    On file with Agent    On file with Agent State Of
California Public Employees’ Retirement System    3.438    On file with Agent   
On file with Agent AmSouth Bank    2.500    On file with Agent    On file with
Agent Webster Business Credit Corp.    1.875    On file with Agent    On file
with Agent Israel Discount Bank of New York    1.875    On file with Agent    On
file with Agent Hampton Funding LLC    1.563    On file with Agent    On file
with Agent RZB Finance LLC    1.250    On file with Agent    On file with Agent
Sovereign Bank    1.563    On file with Agent    On file with Agent Erste Bank
   1.250    On file with Agent    On file with Agent AZURE Funding    2.500   
On file with Agent    On file with Agent Eaton Vance-Senior Debt Portfolio   
1.625    On file with Agent    On file with Agent Eaton Vance-Grayson & Co.   
2.875    On file with Agent    On file with Agent Eaton Vance Institutional
Senior Loan Fund    .500    On file with Agent    On file with Agent

TOTAL:

   100          

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SCHEDULE VI

TO

CREDIT AGREEMENT

 

Restructuring Plan

 

The Restructuring Plan includes the sale and/or closure of approximately 329
retail stores leased by Borrowers and/or Guarantors which are located in noncore
areas or are unprofitable, including the sale of approximately 79 retail stores
as going concerns, the closure of the remaining retail stores not sold as going
concerns, the sale and/or closure of certain manufacturing facilities and
certain distribution centers, and the liquidation of the Inventory, Pharmacy
Scripts, furniture, fixtures, equipment, Leasehold Properties and other assets
of the Borrowers and Guarantors from the closed retail stores and manufacturing
facilities not sold as going concerns.