Exhibit 10.1

AMENDMENT NO. 1
TO REVOLVING CREDIT AGREEMENT

     This Amendment No. 1 to Revolving Credit Agreement, dated as of August 29,
2002 (this “Amendment”), amends that certain Revolving Credit Agreement, dated
as of May 22, 2002 (the “Credit Agreement”), among BARNES & NOBLE, INC., a
Delaware corporation, (the “Borrower”), the lending institutions listed on
Schedule 1 to the Credit Agreement (the “Banks”), Fleet National Bank, as
administrative agent for itself and each other Bank (in such capacity, the
“Administrative Agent”), ING Capital LLC, as documentation agent, Wachovia Bank,
National Association, as syndication agent, and Fleet Securities, Inc. and First
Union Securities, Inc. (d/b/a Wachovia Securities), as co-arrangers.

     WHEREAS, the Borrower has requested certain amendments to the Credit
Agreement and the Bank parties hereto are willing to agree to such amendments.

     NOW, THEREFORE, in consideration of these premises, the promises, mutual
covenants and agreements contained in this Amendment and fully intending to be
legally bound hereby, the parties hereby agree as follows:

     1.     Capitalized Terms. Terms used in this Amendment which are not
defined herein, but which are defined in the Credit Agreement, shall have the
same respective meanings herein as therein.

     2.     Amendment to Credit Agreement.

     2.1. Amendment of Section 5.7. The second sentence of Section 5.7 of the
Credit Agreement is deleted and is replaced with the following two sentences:

      “Except as expressly set forth in the following sentence, no portion of
any Loans shall be used for the purpose of purchasing or carrying any “margin
security” or “margin stock” as such terms are used in Regulations U or X of the
Board of Governors of the Federal Reserve System. The Borrower will be permitted
to use Loan proceeds to purchase “margin security” or “margin stock” as such
term is used Regulations U or X of the Board of Governors of the Federal Reserve
System (“Regulations U or X”) so long as (i) immediately upon giving effect to
the purchase of such “margin security” or “margin stock”, there is no violation
of any of the so-called margin stock regulations set forth in Regulations U or
X, and (ii) the Borrower shall complete in all respects any required forms
(including, without limitation, Form FR U-1 and amendments thereto), with all
attachments thereto (including a then current list of collateral which
adequately supports all credit extended hereunder) pursuant to Regulations U or
X and deliver such forms in a timely manner to the Administrative Agent.”

     2.2. Amendment of Section 6.9(b). Section 6.9(b) is hereby amended and
restated in its entirety as follows:

      "(b) the Borrower may effect redemptions and repurchases of its stock and
pay dividends to its stockholders, provided that, with respect to this clause
(b), (x) no Default or Event of Default has occurred or is continuing, both
before and after giving effect to any such distributions, dividends,
redemptions,

 

--------------------------------------------------------------------------------

 

      repurchases and payments, and (y) the cumulative aggregate amount of
redemptions and repurchases made from and after the Closing Date, shall not
exceed, when made, an aggregate amount equal to the sum of $150,000,000 plus 15%
of the Borrower’s Cumulative Excess Cash Flow.”

     3.     Effectiveness. This Amendment shall become effective on the first
date when the following conditions are met (the “Amendment Effective Date”):

      (a) the Administrative Agent shall have received counterparts hereof
signed by the Required Banks, all of the Guarantors and the Borrower (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 a telecopy or other written confirmation from such party of execution of a
counterpart hereof by such party);         (b) the Administrative Agent shall
have received payment of an amendment fee for each Bank which shall have
executed and delivered a counterpart hereof as contemplated by clause (a), such
amendment fee to be in an amount equal to (1) 0.10% of such Bank’s Commitment if
such Bank shall have done so not later than 5:00 p.m. New York time on
August 21, 2002, or (2) 0.05% of such Bank’s Commitment if such Bank shall have
done so not later than 5:00 p.m. New York time on August 28, 2002; and        
(c) each of the Administrative Agent and the Arranger shall have received
payment of all amendment fees, other costs, fees and expenses (including,
without limitation, reasonable legal fees and expenses for which invoices shall
have been submitted to the Borrower) and other compensation payable to any of
the foregoing on or prior to the Amendment Effective Date in connection with the
Loan Documents.

     Promptly after the Amendment Effective Date occurs, the Administrative
Agent shall notify the Borrower and the Banks thereof, and such notice shall be
conclusive and binding on all parties hereto.

     4.     Ratification; Miscellaneous. Except as amended hereby, all other
provisions, terms and conditions of the Credit Agreement and the other Loan
Documents are hereby ratified and confirmed and shall continue in full force and
effect. Each of the representations and warranties made by the Borrower or any
other member of the Borrower Affiliated Group in any of the Loan Documents was
true and correct when made and is true and correct in all material respects on
and as of the date hereof (except to the extent that such representations and
warranties relate expressly to an earlier date), and no Default or Event of
Default exists on the date hereof. This Amendment shall not be deemed a waiver
of any defaults that may exist under any of the Loan Documents. This Amendment
may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all of which shall constitute one and the same
instrument. This Amendment and the rights and obligations of the parties
hereunder shall be construed in accordance with and governed by the law of the
State of New York without giving effect to the conflict of law principles
thereof.

 

--------------------------------------------------------------------------------

 

     IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 to
Revolving Credit Agreement as of this 29th day of August, 2002.

          BARNES & NOBLE, INC., Borrower               By: /s/ Larry Zilavy

--------------------------------------------------------------------------------

Name: Larry Zilavy
Title: Chief Financial Officer       FLEET NATIONAL BANK,
as a Bank and as Administrative Agent               By: /s/ Alexis Griffin

--------------------------------------------------------------------------------

Name: Alexis Griffin
Title: Vice President       ING CAPITAL LLC, as a Bank and as
Documentation Agent               By: /s/ William B. Redmond

--------------------------------------------------------------------------------

Name: William B. Redmond
Title: Director       WACHOVIA BANK, NATIONAL ASSOCIATION,
as a Bank and as Syndication Agent               By: /s/ Thomas M. Harper

--------------------------------------------------------------------------------

Name: Thomas M. Harper
Title: Senior Vice President       CITICORP USA, INC., as a Bank              
By: /s/ Marc C. Merlino

--------------------------------------------------------------------------------

Name: Marc C. Merlino
Title: Vice President

(Signatures continued on next page)

 

--------------------------------------------------------------------------------

 

          SUNTRUST BANK, as a Bank               By: /s/ Todd Sheets

--------------------------------------------------------------------------------

Name: Todd Sheets
Title: AVP       THE BANK OF NEW YORK, as a Bank               By: /s/ William
M. Barnum

--------------------------------------------------------------------------------

Name: William M. Barnum
Title: Vice President       WELLS FARGO BANK NA, as a Bank               By:    
   

--------------------------------------------------------------------------------

Name:
Title:       JPMORGAN CHASE BANK, as a Bank               By: /s/ Rebecca Vogel

--------------------------------------------------------------------------------

Name: Rebecca Vogel
Title: Vice President       MIZUHO CORPORATE BANK, LTD., as a Bank              
By: /s/ J. Kenneth Biegen

--------------------------------------------------------------------------------

Name: J. Kenneth Biegen
Title: Senior Vice President       SOVEREIGN BANK, as a Bank               By:
/s/ Jesse Wong

--------------------------------------------------------------------------------

Name: Jesse Wong
Title: AVP

(Signatures continued on next page)

 

--------------------------------------------------------------------------------

 

          NATIONAL CITY BANK, as a Bank               By: /s/ Thomas J.
McDonnell

--------------------------------------------------------------------------------

Name: Thomas J. McDonnell
Title: Senior Vice President       BANK OF AMERICA, N.A., as a Bank            
  By: /s/ Amy Krovocheck

--------------------------------------------------------------------------------

Name: Amy Krovocheck
Title: Vice President       COMERICA BANK, as a Bank               By: /s/ Joel
S. Gordon

--------------------------------------------------------------------------------

Name: Joel S. Gordon
Title: Assistant Vice President       FIFTH THIRD BANK, as a Bank              
By: /s/ Ann Pierson

--------------------------------------------------------------------------------

Name: Ann Pierson
Title: Corporate Banking Officer       MELLON BANK, N.A. , as a Bank            
  By: /s/ Louis E. Flori

--------------------------------------------------------------------------------

Name: Louis E. Flori
Title: Vice President       U.S. BANK, NATIONAL ASSOCIATION, as a Bank          
    By: /s/ Thomas L. Bayer

--------------------------------------------------------------------------------

Name: Thomas L. Bayer
Title: Vice President

(Signatures continued on next page)

 

--------------------------------------------------------------------------------

 

          ALLFIRST BANK, as a Bank               By: /s/ Carol A. Dalton

--------------------------------------------------------------------------------

Name: Carol A. Dalton
Title: Senior Vice President       FIRST HAWAIIAN BANK, as a Bank              
By: /s/ Charles L. Jenkins

--------------------------------------------------------------------------------

Name: Charles L. Jenkins
Title: Vice President, Manager       HIBERNIA NATIONAL BANK, as a Bank          
    By: /s/ Michael R. Geissler

--------------------------------------------------------------------------------

Name: Michael R. Geissler
Title: Vice President   Acknowledged and Agreed:    

      BARNES & NOBLE BOOKSELLERS, INC., Guarantor     By: /s/ Larry Zilavy    

--------------------------------------------------------------------------------

    Name: Larry Zilavy
Title: Chief Financial Officer
Hereunto Duly Authorized    

(Signatures continued on next page)

 

--------------------------------------------------------------------------------

 

      B. DALTON BOOKSELLER, INC., Guarantor           By: /s/ Larry Zilavy    

--------------------------------------------------------------------------------

    Name: Larry Zilavy
Title: Chief Financial Officer
Hereunto Duly Authorized           DOUBLEDAY BOOK SHOPS, INC., Guarantor        
  By: /s/ Larry Zilavy    

--------------------------------------------------------------------------------

    Name: Larry Zilavy
Title: Chief Financial Officer
Hereunto Duly Authorized           B&N.COM HOLDING CORP., Guarantor          
By: /s/ Larry Zilavy    

--------------------------------------------------------------------------------

    Name: Larry Zilavy
Title: Chief Financial Officer
Hereunto Duly Authorized           CCI HOLDINGS, INC., Guarantor           By:
/s/ Larry Zilavy    

--------------------------------------------------------------------------------

    Name: Larry Zilavy
Title: Chief Financial Officer
Hereunto Duly Authorized