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Exhibit 10.24

 
AGREEMENT TO CORRECT PAGE

THIS AGREEMENT TO CORRECT PAGE (this “Agreement”) is made and entered into as of
the 30th day of April, 2010, by and among (a) Borders Group, Inc. (“BGI”),
Borders, Inc. (“Borders” and together with BGI, the “Borrowers”), (b) the
Guarantors party to the Loan Agreement referenced below (the “Guarantors”), (c)
the financial institutions party to the Loan Agreement (the “Lenders”), and (d)
GA Capital, LLC, as administrative agent for the Lenders (in such capacity, the
“Administrative Agent”)..

W I T N E S S E T H:

WHEREAS, the above-referenced parties are parties to a certain Term Loan
Agreement dated as of March 31, 2010 (as the same has been thereafter amended,
supplemented or otherwise modified, the “Loan Agreement”), pursuant to which the
Lenders agreed to make available to the Borrowers a term loan upon and subject
to the terms and conditions set forth in the Loan Agreement; and

WHEREAS, the Borrowers, the Guarantors, the Required Lenders and the
Administrative Agent have each agreed that certain language intended for
inclusion in (i) Section 9.1(l) on page 67 of the Loan Agreement; and (ii)
Section 10.1(c) on page 76 of the Loan Agreement was inadvertently omitted from
the final execution version thereof; and

WHEREAS, the Borrowers, the Guarantors, the Required Lenders and the
Administrative Agent have each agreed to substitute in place of page 67 and 76
of the Loan Agreement the replacement page 67 and 76 attached hereto as
Attachment I (the “Replacement Pages”), all on the terms and conditions set
forth below in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the parties hereto hereby agree as follows:

 
1.
Definitions. All capitalized undefined terms used in this Agreement shall have
the meanings ascribed thereto in the Loan Agreement.

 
2.
Replacement of pages.  Pages 67 and 76 of the Loan Agreement are hereby deleted
in their entirety and the Replacement Pages are hereby substituted in their
stead.

 
3.
Further Assurances. The Borrowers and the Guarantors shall take any and all such
actions and execute any and all such instruments and agreements as the
Administrative Agent shall reasonably request for the purpose of effectuating
this Agreement.

 
4.
Limited Agreement.  Except as specifically modified hereby, the terms and
conditions of the Loan Agreement and the other Loan Documents shall remain in
full force and effect, and are hereby ratified and affirmed in all
respects.  This Agreement shall not be deemed a waiver of, or consent to, or a
modification or amendment of, any other term or condition of the Loan Agreement
or any other Loan Document, except as expressly set forth herein.

 
5.
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

 
6.
Counterparts. This Agreement may be executed in any number of counterparts,
which shall together constitute an entire original agreement, and shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

[remainder of page left intentionally blank]

 
 

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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as a
sealed instrument as of the date first set forth above.
 
 

 
BORDERS GROUP, INC.
 
By:
/s/ Mark R.Bierley
 
Name:
Mark R. Bierley
 
Title:
Executive Vice President and Chief Financial Officer
       
BORDERS, INC.
 
By:
   
Name:
   
Title:
   
BORDERS PROPERTIES, INC.
             
By:
   
Name:
   
Title:
   
BORDERS INTERNATIONAL SERVICES, INC.
             
By:
   
Name:
   
Title:
   
BGP (UK) LIMITED
 
By:
   
Name:
   
Title:
                     
BORDERS DIRECT, LLC
 
By:
Borders, Inc., its Sole Member
       
By:
   
Name:
   
Title:
 

[Signature Page to Agreement to Correct Page]

 
 

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GA CAPITAL, LLC, as Administrative Agent
       
By:
/s/ David C. Storer
 
Name:
David C. Storer
 
Title:
Director

[Signature Page to Agreement to Correct Page]

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SPECIAL VALUE CONTINUATION PARTNERS, LP, as Lender
       
By:
Tennenbaum Capital Partners, LLC
 
Its:
Investment Manager
       
By:
/s/ Mark Holdsworth
 
Name:
Mark Holdsworth
 
Title:
Managing Partner

[Signature Page to Agreement to Correct Page]

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TENNENBAUM OPPORTUNITIES PARTNERS V, LP, as Lender
       
By:
Tennenbaum Capital Partners, LLC
 
Its:
Investment Manager
       
By:
/s/ Mark Holdsworth
 
Name:
Mark Holdsworth
 
Title:
Managing Partner

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STONE TOWER CREDIT FUNDING I LTD, as Lender
       
By:
Stone Tower Fund Management LLC
 
Its:
Collateral Manager
 
By:
/s/ Michael W. DelPercie
 
Name:
Michael W. DelPercie
 
Title:
Authorized Signatory

[Signature Page to Agreement to Correct Page]
 
 
 

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1903 ONSHORE FUNDING, LLC, as a Lender
             
By:
GB Merchant Partners, LLC
 
Its
Investment Manager
       
By:
/s/ Lawrence Kalff
 
Name:
Lawrence Klaff
 
Title:
Principal & Managing Director

[Signature Page to Agreement to Correct Page]

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Attachment I

Replacement Page

[see attached]

Attachment I

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such Indebtedness is, at all times and in all respects, subject to the
Intercreditor Agreement; and

 
 

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(l)           other Indebtedness of BGI and/or its Subsidiaries in an aggregate
principal amount not to exceed $250,000,000 minus the amount of the Loans
provided hereunder; provided that (i) at the time of incurrence of such
Indebtedness, no Default or Event of Default has occurred and is continuing or
would result therefrom, (ii) to the extent such Indebtedness is secured, the
Administrative Agent shall have a first priority (or, in the case of the ABL
Priority Collateral, second priority, subject only to the First Lien Agent’s and
First Lien Secured Parties’ first priority security interest in the ABL Priority
Collateral) security interest on the assets securing such Indebtedness and (iii)
such Indebtedness is, at all times and in all respects, subject to an
intercreditor agreement (A) in form and substance substantially similar to, and
on terms no less favorable to the Lenders than as set forth in, the
Intercreditor Agreement and otherwise satisfactory to the Administrative Agent
or (B) in form and substance satisfactory to the Administrative Agent and the
Required Lenders; provided, however, that any such Indebtedness incurred by
Paperchase shall not exceed an amount equal to the dollar equivalent of
9,000,000 pounds sterling in the aggregate at any time.

9.2           Restrictions on Liens»

None of the Borrowers will, nor will permit any of its Subsidiaries to, (a)
create or incur or suffer to be created or incurred or to exist any Lien upon
any of its property or assets of any character whether now owned or hereafter
acquired, or upon the income or profits therefrom; (b) transfer any of such
property or assets or the income or profits therefrom for the purpose of
subjecting the same to the payment of Indebtedness or performance of any other
obligation in priority to payment of its general creditors; (c) acquire, or
agree to acquire, any property or assets upon conditional sale or other title
retention or purchase money security agreement, device or arrangement; (d)
suffer to exist for a period of more than thirty (30) days after the same shall
have been incurred any Indebtedness or claim or demand against it that if unpaid
might by law or upon bankruptcy or insolvency, or otherwise, be given any
priority whatsoever over its general creditors; or (e) sell, assign, pledge or
otherwise transfer any “receivables” as defined in clause (g) of the definition
of the term “Indebtedness,” with or without recourse; provided that any Borrower
or any of its Subsidiaries may create or incur or suffer to be created or
incurred or to exist:

(i)     Liens on the Collateral in favor of the Administrative Agent securing
the Obligations;

(ii)    Liens in favor of such Borrower on all or part of the assets of
Subsidiaries of such Borrower securing Indebtedness owing by Subsidiaries of
such Borrower to such Borrower;

(iii)   Liens to secure taxes, assessments and other government charges in
respect of obligations and Liens to secure claims for labor, material or
supplies, in each cash in respect of obligations not overdue or which are being
contested in good faith and by appropriate proceedings and for which such
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto;

(iv)  deposits or pledges made in connection with, or to secure payment of,
workmen’s compensation, general liability, unemployment or other insurance, old
age pensions or other social security obligations;

 
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Event, the Borrowers shall comply with the provisions of §8.15 hereof and
maintain only such amounts, if any, in deposit accounts or investment accounts
as may be expressly permitted under said §8.15.

10.           FINANCIAL COVENANTS.

Each of the Borrowers, jointly and severally, covenants and agrees that, so long
as any Loan or Note is outstanding:

10.1         Minimum Excess Availability.

(a) At all times the Borrowers shall maintain Excess Availability (the “Minimum
Excess Availability”) of not less than the greater of (i) ten percent (10%) of
the lesser of (A) the ABL Borrowing Base and (B) the Total First Lien Commitment
and (ii) $50,000,000 (the “Availability Requirement”).

(b) Notwithstanding the foregoing, at all times during the period commencing on
December 1 of each year and ending on the later of (i) January 31 of the
following year and (ii) the date on which the Borrowers deliver the financial
statements calculating Consolidated EBITDA for the period ending December 31 of
such year, the Borrowers will maintain Excess Availability of not less than the
sum of (x) the Incremental Seasonal Amount plus (y) the greater of (A) ten
percent (10%) of the lesser of (1) the ABL Borrowing Base and (2) the Total
First Lien Commitment and (B) $50,000,000 (the “Seasonal Availability
Requirement”).

(c) Notwithstanding anything to the contrary in this §10.1, (i) in the event
that the Consolidated EBITDA (calculated in accordance with the last sentence of
this §10.1(c)) of the Borrowers for the trailing eleven month period ending on
or about December 31, 2010 is less than $60,880,000 (i.e. 80% of $76,100,000) or
(ii) in the event that the Consolidated EBITDA (calculated in accordance with
the last sentence of this §10.1(c)) of the Borrowers for the trailing twelve
month period ending on or about December 31 of each year (commencing with the
twelve months ended on or about December 31, 2011) is less than 80% of the
projected Consolidated EBITDA (calculated in accordance with the last sentence
of this §10.1(c)) for such period contained in the projections provided by the
Borrowers to the Administrative Agent pursuant to §8.4(g) within thirty days
after the beginning of the applicable Fiscal Year of the Borrowers, which
projections shall be reasonably acceptable to the Administrative Agent, then, in
either case, the Borrowers shall be subject to the Seasonal Availability
Requirement at all times thereafter during the term of this Loan Agreement.  In
calculating Consolidated EBITDA under this §10.1(c) only, Consolidated EBITDA
shall be increased by the amount of non-cash restructuring charges which reduced
Consolidated Net Income during the applicable period.

10.2         Term Loan Facility Borrowing Base»

If at any time the outstanding principal amount of the Loans exceeds the Term
Loan Facility Borrowing Base, a reserve against the ABL Borrowing Base in an
amount equal to the difference between such outstanding principal amount of the
Loans and the Term Loan Facility Borrowing Base at such time (the “Term
Borrowing Base Reserve”) shall be included in the calculation of the ABL
Borrowing Base for all purposes of the First Lien Credit Agreement until the
delivery of a subsequent Borrowing Base Report reflecting that such excess is
eliminated.
 
 
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