----

| Section                                                                          |   |   | Page                                                                   |
|----------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|
|                                                                             |   |   |                                                                   |
| ARTICLE I DEFINITIONS AND ACCOUNTING TERMS                                       |   | 1      |
|                                                                             |   |   |
|                                                                             | 1.01   |   | Defined Terms                                                          |   | 1 |
|                                                                             | 1.02   |   | Other Interpretive Provisions                                          |   | 34 |
|                                                                             | 1.03   |   | Accounting Terms                                                       |   | 34 |
|                                                                             | 1.04   |   | Rounding                                                               |   | 34 |
|                                                                             | 1.05   |   | Times of Day                                                           |   | 35 |
|                                                                             | 1.06   |   | Letter of Credit Amounts                                               |   | 35 |
|                                                                             |   |   |                                                                   |   |   |
| ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS                                 |   | 35     |
|                                                                             |   |   |
|                                                                             | 2.01   |   | Committed Loans; Reserves                                              |   | 35 |
|                                                                             | 2.02   |   | Committed Borrowings, Conversions and Continuations of Committed Loans |   | 36 |
|                                                                             | 2.03   |   | Letters of Credit                                                      |   | 37 |
|                                                                             | 2.04   |   | Intentionally Omitted                                                  |   | 42 |
|                                                                             | 2.05   |   | Prepayments                                                            |   | 43 |
|                                                                             | 2.06   |   | Termination or Reduction of Commitments                                |   | 43 |
|                                                                             | 2.07   |   | Repayment of Committed Loans                                           |   | 44 |
|                                                                             | 2.08   |   | Interest                                                               |   | 44 |
|                                                                             | 2.09   |   | Fees                                                                   |   | 44 |
|                                                                             | 2.10   |   | Computation of Interest and Fees                                       |   | 44 |
|                                                                             | 2.11   |   | Evidence of Debt                                                       |   | 45 |
|                                                                             | 2.12   |   | Payments Generally; Administrative Agent’s Clawback              |   | 45 |
|                                                                             | 2.13   |   | Sharing of Payments by Lenders                                         |   | 46 |
|                                                                             | 2.14   |   | Settlement Amongst Lenders                                             |   | 47 |
|                                                                             |   |   |                                                                   |   |   |
| ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY; APPOINTMENT OF LEAD BORROWER |   | 47     |
|                                                                             |   |   |
|                                                                             | 3.01   |   | Taxes                                                                  |   | 47 |
|                                                                             | 3.02   |   | Illegality                                                             |   | 48 |
|                                                                             | 3.03   |   | Inability to Determine Rates                                           |   | 49 |
|                                                                             | 3.04   |   | Increased Costs; Reserves on LIBO Rate Loans                           |   | 49 |
|                                                                             | 3.05   |   | Compensation for Losses                                                |   | 50 |
|                                                                             | 3.06   |   | Mitigation Obligations; Replacement of Lenders                         |   | 50 |
|                                                                             | 3.07   |   | Survival                                                               |   | 51 |
|                                                                             | 3.08   |   | Designation of Lead Borrower as Borrowers’ Agent                 |   | 51 |
|                                                                             |   |   |                                                                   |   |   |
| ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS                             |   | 51     |
|                                                                             |   |   |
|                                                                             | 4.01   |   | Conditions of Initial Credit Extension                                 |   | 51 |
|                                                                             | 4.02   |   | Conditions to all Credit Extensions                                    |   | 54 |
|                                                                             |   |   |                                                                   |   |   |
| ARTICLE V REPRESENTATIONS AND WARRANTIES                                         |   | 54     |
|                                                                             |   |   |
|                                                                             | 5.01   |   | Existence, Qualification and Power                                     |   | 54 |
|                                                                             | 5.02   |   | Authorization; No Contravention                                        |   | 54 |
|                                                                             | 5.03   |   | Governmental Authorization; Other Consents                             |   | 55 |
|                                                                             | 5.04   |   | Binding Effect                                                         |   | 55 |
|                                                                             | 5.05   |   | Financial Statements; No Material Adverse Effect                       |   | 55 |
|                                                                             | 5.06   |   | Litigation                                                             |   | 55 |

----

|                             | 5.07   |   | No Default                                 |   | 56     |
|----------------------------------|--------|--------|--------------------------------------------|--------|--------|
|                             | 5.08   |   | Ownership of Property; Liens               |   | 56     |
|                             | 5.09   |   | Environmental Compliance                   |   | 56     |
|                             | 5.10   |   | Insurance                                  |   | 57     |
|                             | 5.11   |   | Taxes                                      |   | 57     |
|                             | 5.12   |   | ERISA Compliance                           |   | 57     |
|                             | 5.13   |   | Subsidiaries; Equity Interests             |   | 57     |
|                             | 5.14   |   | Margin Regulations; Investment Company Act |   | 58     |
|                             | 5.15   |   | Disclosure                                 |   | 58     |
|                             | 5.16   |   | Compliance with Laws                       |   | 58     |
|                             | 5.17   |   | Intellectual Property; Licenses, Etc.      |   | 58     |
|                             | 5.18   |   | Labor Matters                              |   | 58     |
|                             | 5.19   |   | Security Documents                         |   | 59     |
|                             | 5.20   |   | Solvency                                   |   | 59     |
|                             | 5.21   |   | Deposit Accounts; Credit Card Arrangements |   | 59     |
|                             | 5.22   |   | Brokers                                    |   | 59     |
|                             | 5.23   |   | Customer and Trade Relations               |   | 60     |
|                             | 5.24   |   | Material Contracts                         |   | 60     |
|                             | 5.25   |   | Casualty                                   |   | 60     |
|                             |   |   |                                       |   |   |
| ARTICLE VI AFFIRMATIVE COVENANTS |   | 60     |
|                             |   |   |
|                             | 6.01   |   | Financial Statements                       |   | 60     |
|                             | 6.02   |   | Certificates; Other Information            |   | 61     |
|                             | 6.03   |   | Notices                                    |   | 62     |
|                             | 6.04   |   | Payment of Obligations                     |   | 63     |
|                             | 6.05   |   | Preservation of Existence, Etc.            |   | 63     |
|                             | 6.06   |   | Maintenance of Properties                  |   | 63     |
|                             | 6.07   |   | Maintenance of Insurance                   |   | 64     |
|                             | 6.08   |   | Compliance with Laws                       |   | 65     |
|                             | 6.09   |   | Books and Records; Accountants             |   | 65     |
|                             | 6.10   |   | Inspection Rights                          |   | 65     |
|                             | 6.11   |   | Use of Proceeds                            |   | 66     |
|                             | 6.12   |   | Additional Loan Parties                    |   | 66     |
|                             | 6.13   |   | Cash Management                            |   | 66     |
|                             | 6.14   |   | Information Regarding the Collateral       |   | 67     |
|                             | 6.15   |   | Physical Inventories                       |   | 67     |
|                             | 6.16   |   | Environmental Laws                         |   | 68     |
|                             | 6.17   |   | Further Assurances                         |   | 68     |
|                             | 6.18   |   | Compliance with Terms of Leaseholds        |   | 68     |
|                             | 6.19   |   | Material Contracts                         |   | 68     |
|                             |   |   |                                       |   |   |
| ARTICLE VII NEGATIVE COVENANTS   |   | 69     |
|                             |   |   |
|                             | 7.01   |   | Liens                                      |   | 69     |
|                             | 7.02   |   | Investments                                |   | 69     |
|                             | 7.03   |   | Indebtedness; Disqualified Stock           |   | 69     |
|                             | 7.04   |   | Fundamental Changes                        |   | 69     |
|                             | 7.05   |   | Dispositions                               |   | 69     |
|                             | 7.06   |   | Restricted Payments                        |   | 69     |
|                             | 7.07   |   | Prepayments of Indebtedness                |   | 70     |
|                             | 7.08   |   | Change in Nature of Business               |   | 70     |
|                             | 7.09   |   | Transactions with Affiliates               |   | 70     |

----

|                                        | 7.10   |   | Burdensome Agreements                                  |   | 70     |
|---------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|
|                                        | 7.11   |   | Use of Proceeds                                        |   | 70     |
|                                        | 7.12   |   | Amendment of Material Documents                        |   | 70     |
|                                        | 7.13   |   | Fiscal Year                                            |   | 70     |
|                                        | 7.14   |   | Deposit Accounts; Credit Card Processors               |   | 71     |
|                                        | 7.15   |   | Financial Covenant                                     |   | 71     |
|                                        |   |   |                                                   |   |   |
| ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES |   | 71     |
|                                        |   |   |
|                                        | 8.01   |   | Events of Default                                      |   | 71     |
|                                        | 8.02   |   | Remedies Upon Event of Default                         |   | 73     |
|                                        | 8.03   |   | Application of Funds                                   |   | 73     |
|                                        |   |   |                                                   |   |   |
| ARTICLE IX ADMINISTRATIVE AGENT             |   | 74     |
|                                        |   |   |
|                                        | 9.01   |   | Appointment and Authority                              |   | 74     |
|                                        | 9.02   |   | Rights as a Lender                                     |   | 74     |
|                                        | 9.03   |   | Exculpatory Provisions                                 |   | 75     |
|                                        | 9.04   |   | Reliance by Agents                                     |   | 75     |
|                                        | 9.05   |   | Delegation of Duties                                   |   | 76     |
|                                        | 9.06   |   | Resignation of Agents                                  |   | 76     |
|                                        | 9.07   |   | Non-Reliance on Administrative Agent and Other Lenders |   | 76     |
|                                        | 9.08   |   | Intentionally Omitted                                  |   | 76     |
|                                        | 9.09   |   | Administrative Agent May File Proofs of Claim          |   | 76     |
|                                        | 9.10   |   | Collateral and Guaranty Matters                        |   | 76     |
|                                        | 9.11   |   | Notice of Transfer                                     |   | 77     |
|                                        | 9.12   |   | Reports and Financial Statements                       |   | 78     |
|                                        | 9.13   |   | Agency for Perfection                                  |   | 78     |
|                                        | 9.14   |   | Indemnification of Agents                              |   | 78     |
|                                        | 9.15   |   | Relation among Lenders                                 |   | 79     |
|                                        | 9.16   |   | Defaulting Lender                                      |   | 79     |
|                                        |   |   |                                                   |   |   |
| ARTICLE X MISCELLANEOUS                     |   | 79     |
|                                        |   |   |
|                                        | 10.01  |   | Amendments, Etc.                                       |   | 79     |
|                                        | 10.02  |   | Notices; Effectiveness; Electronic Communications      |   | 80     |
|                                        | 10.03  |   | No Waiver; Cumulative Remedies                         |   | 82     |
|                                        | 10.04  |   | Expenses; Indemnity; Damage Waiver                     |   | 82     |
|                                        | 10.05  |   | Payments Set Aside                                     |   | 83     |
|                                        | 10.06  |   | Successors and Assigns                                 |   | 83     |
|                                        | 10.07  |   | Treatment of Certain Information; Confidentiality      |   | 85     |
|                                        | 10.08  |   | Right of Setoff                                        |   | 86     |
|                                        | 10.09  |   | Interest Rate Limitation                               |   | 86     |
|                                        | 10.10  |   | Counterparts; Integration; Effectiveness               |   | 86     |
|                                        | 10.11  |   | Survival                                               |   | 86     |
|                                        | 10.12  |   | Severability                                           |   | 87     |
|                                        | 10.13  |   | Replacement of Lenders                                 |   | 87     |
|                                        | 10.14  |   | Governing Law; Jurisdiction; Etc.                      |   | 87     |
|                                        | 10.15  |   | Waiver of Jury Trial                                   |   | 88     |
|                                        | 10.16  |   | No Advisory or Fiduciary Responsibility                |   | 88     |
|                                        | 10.17  |   | USA PATRIOT Act Notice                                 |   | 89     |
|                                        | 10.18  |   | Foreign Asset Control Regulations                      |   | 89     |
|                                        | 10.19  |   | Time of the Essence                                    |   | 89     |
|                                        | 10.20  |   | Intentionally Omitted                                  |   | 89     |

----

|   | 10.21      |   | Press Releases         |   | 89     |
|--------|------------|--------|------------------------|--------|--------|
|   | 10.22      |   | Additional Waivers     |   | 90     |
|   | 10.23      |   | No Strict Construction |   | 91     |
|   | 10.24      |   | Attachments            |   | 91     |
|   |       |   |                   |   |   |
|   | SIGNATURES |   | S-92                   |

----

|   | 1.01       |   | Borrowers                                                          |
|--------|------------|--------|--------------------------------------------------------------------|
|   | 1.02       |   | Guarantors                                                         |
|   | 2.01       |   | Commitments and Applicable Percentages                             |
|   | 5.01       |   | Loan Parties Organizational Information                            |
|   | 5.05       |   | Supplement to Interim Financial Statements                         |
|   | 5.08(b)(1) |   | Owned Real Estate                                                  |
|   | 5.08(b)(2) |   | Leased Real Estate                                                 |
|   | 5.09       |   | Environmental Matters                                              |
|   | 5.10       |   | Insurance                                                          |
|   | 5.13       |   | Subsidiaries; Other Equity Investments                             |
|   | 5.18       |   | Collective Bargaining Agreements                                   |
|   | 5.21(a)    |   | DDAs                                                               |
|   | 5.21(b)    |   | Credit Card Arrangements                                           |
|   | 5.24       |   | Material Contracts                                                 |
|   | 6.02       |   | Financial and Collateral Reporting                                 |
|   | 7.01       |   | Existing Liens                                                     |
|   | 7.02       |   | Existing Investments                                               |
|   | 7.03       |   | Existing Indebtedness                                              |
|   | 10.02      |   | Administrative Agent’s Office; Certain Addresses for Notices |

| EXHIBITS |   |   |                       |
|----------|--------|--------|----------------------------|
|     |   |   |                       |
|     |   |   | Form of                    |
|     |   |   |                       |
|     | A      |   | Committed Loan Notice      |
|     | B      |   | Note                       |
|     | C      |   | Compliance Certificate     |
|     | D      |   | Assignment and Assumption  |
|     | E      |   | Borrowing Base Certificate |
|     | F      |   | Credit Card Notification   |

----

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (a) From and after the Closing Date until the first Adjustment Date, the percentages set forth in Level II of the pricing grid below; and                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (b) From and after the first Adjustment Date and on each Adjustment Date thereafter, the Applicable Margin shall be determined from the following pricing grid based upon the Average Daily Availability during the Fiscal Quarter ended immediately preceding such Adjustment Date; provided, however, that notwithstanding anything to the contrary set forth herein, |

----

|   | if Availability is at any time less than the amount calculated pursuant to clause (e) of the Borrowing Base, then the Applicable Margin otherwise in effect shall immediately increase by 0.50% and shall remain increased until the subsequent Adjustment Date; provided, further that upon the occurrence of an Event of Default, interest shall accrue at the Default Rate; provided further if any financial statement required to be delivered pursuant to Section 6.01 or any Borrowing Base Certificate is at any time restated or otherwise revised (including as a result of an audit) or if the information set forth in any such financial statement or Borrowing Base Certificate otherwise proves to be false or incorrect such that the Applicable Margin would have been higher than was in effect during any period, without constituting a waiver of any Default or Event of Default arising as a result thereof, interest due under this Agreement shall be immediately recalculated at such higher rate for any applicable periods and shall be due and payable on demand. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level |   | Average Daily Availability                                                 |   | LIBOR Margin |   | Base Rate Margin |
|-------|--------|----------------------------------------------------------------------------|--------|--------------|--------|------------------|
| I     |   | Less than $25,000,000                                                      |   | 3.50%        |   | 2.50%            |
| II    |   | Equal to or greater than $25,000,000 but less than or equal to $50,000,000 |   | 3.25%        |   | 2.25%            |
| III   |   | Greater than $50,000,000                                                   |   | 3.00%        |   | 2.00%            |

----

----

|   |           (a) the face amount of Eligible Credit Card Receivables multiplied by 85%;                                                                          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                            |
|   |           plus                                                                                                                                                |
|   |                                                                                                                                                                                                            |
|   |           (b) the Cost of Eligible Inventory, net of Inventory Reserves, multiplied by the Appraisal Percentage of the Appraised Value of Eligible Inventory; |
|   |                                                                                                                                                                                                            |
|   |           plus                                                                                                                                                |
|   |                                                                                                                                                                                                            |
|   |           (c) with respect to any Eligible Letter of Credit, the Appraisal Percentage of the Appraised Value of the Inventory                                 |

----

|   | supported by such Eligible Letter of Credit, multiplied by the Cost of such Inventory when completed, net of Inventory Reserves;                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           plus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (d) 100% of all Eligible Cash on Hand, provided that Eligible Cash on Hand included in the Borrowing Base may not be withdrawn from the deposit account at Administrative Agent, thereby reducing the Borrowing Base, unless and until the Lead Borrower furnishes the Administrative Agent with (i) notice of such intended withdrawal and (ii) a Borrowing Base Certificate as of the date of such proposed withdrawal reflecting that, after giving effect to such withdrawal, no Overadvance or Default or Event of Default will result; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           plus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (e) the least of (i) $18,750,000, (ii) the Real Estate Advance Rate multiplied by the Appraised Value of Eligible Real Estate, and (iii) the Real Estate Cap;                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           minus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (f) the then amount of all Availability Reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

|   |           (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, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) other than Marcy Syms becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 25% or more of the Equity Interests of the Lead Borrower entitled to vote for members of the board of directors or equivalent governing body of the Lead Borrower on a fully-diluted basis (and taking into account all such Equity Interests that such “person” or “group” has the right to acquire pursuant to any option right); or |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |           (b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Lead Borrower 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) above 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 clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); or |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |           (c) any Person or two or more Persons acting in concert (other than Marcy Syms) shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of the Lead                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

|   | Borrower, or control over the Equity Interests of the Lead Borrower entitled to vote for members of the board of directors or equivalent governing body of the Lead Borrower on a fully-diluted basis (and taking into account all such securities that such Person or Persons have the right to acquire pursuant to any option right) representing 25% or more of the combined voting power of such securities; or |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (d) any “change in control” or “sale” or “disposition” or similar event as defined in any Organizational Document of any Loan Party, or any document governing Material Indebtedness of any Loan Party; or                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (e) the Lead Borrower fails at any time to own, directly or indirectly, 100% of the Equity Interests of each other Loan Party free and clear of all Liens (other than the Liens in favor of the Collateral Agent), except where such failure is as a result of a transaction permitted by the Loan Documents.                                           |

----

----

----

----

|   |           (a) any Credit Card Receivable which does not constitute an “Account” (as defined in the UCC);                                                                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                               |
|   |           (b) Credit Card Receivables that have been outstanding for more than five (5) Business Days from the date of sale;                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                               |
|   |           (c) Credit Card Receivables with respect to which a Loan Party does not have good, valid and marketable title, free and clear of any Lien (other than Liens granted to the Collateral Agent);                                                          |
|   |                                                                                                                                                                                                                                                                                                               |
|   |           (d) Credit Card Receivables that are not subject to a first priority security interest in favor of the Collateral Agent (it being the intent that chargebacks in the ordinary course by such processors shall not be deemed violative of this clause); |

----

|   |           (e) Credit Card Receivables which are disputed, are with recourse, or with respect to which a claim, counterclaim, offset or chargeback has been asserted (to the extent of such claim, counterclaim, offset or chargeback);                                                                                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (f) Credit Card Receivables as to which the processor has the right under certain circumstances to require a Loan Party to repurchase the Accounts from such credit card processor;                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (g) Credit Card Receivables due from an issuer or payment processor of the applicable credit card which is the subject of any bankruptcy or insolvency proceedings;                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (h) Credit Card Receivables which are not a valid, legally enforceable obligation of the applicable issuer with respect thereto;                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (i) Credit Card Receivables which do not conform to all representations, warranties or other provisions in the Loan Documents relating to Credit Card Receivables;                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (j) Credit Card Receivables which are evidenced by “chattel paper” or an “instrument” of any kind unless such “chattel paper” or “instrument” is in the possession of the Collateral Agent, and to the extent necessary or appropriate, endorsed to the Collateral Agent; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (k) Credit Card Receivables which the Administrative Agent determines in its reasonable discretion to be uncertain of collection.                                                                                                                                                                                            |

|   |           (a) Inventory that is not solely owned by a Borrower or as to which a Borrower does not have good and valid title;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (b) Inventory that is leased by or is on consignment to a Borrower or which is consigned by a Borrower to a Person which is not a Loan Party;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (c) Inventory that is not located in the United States of America (excluding territories or possessions of the United States) at a location that is owned or leased by a Borrower, except (i) Inventory in transit between such owned or leased locations, or (ii) Inventory with respect to which the Borrowers have furnished to the Administrative Agent (A) any UCC financing statements or other documents that the Administrative Agent may determine to be necessary to perfect its security interest in such Inventory at such location, and (B) a Collateral Access Agreement executed by the Person owning any such location on terms reasonably acceptable to the Administrative Agent; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (d) Inventory that is located in a distribution center leased by a Borrower unless the applicable lessor has delivered to the Collateral Agent a Collateral Access Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (e) Inventory that is comprised of goods which (i) are damaged, defective, “seconds,” or otherwise unmerchantable, (ii) are to be returned to the vendor, (iii) are obsolete or slow moving, or custom items, work-in-process, raw materials, or that constitute spare parts, promotional, marketing, packaging and shipping materials or supplies used or consumed in a Borrower’s business, (iv) are not in compliance with all standards imposed by any Governmental Authority having regulatory authority over such Inventory, its use or sale, or (v) are bill-and-hold goods;                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (f) Inventory that is not subject to a perfected first-priority security interest in favor of the Collateral Agent;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (g) Inventory that consists of samples, labels, bags, packaging, and other similar non-merchandise categories;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (h) Inventory that is not insured in compliance with the provisions of Section 5.10 hereof;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (i) Inventory that has been sold but not yet delivered or as to which a Borrower has accepted a deposit;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (j) Inventory that is subject to any licensing, patent, royalty, trademark, trade name or copyright agreement with any third party from which any Borrower or any of its Subsidiaries has received notice of a dispute in respect of any such agreement; or                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (k) Inventory acquired in a Permitted Acquisition, unless and until the Collateral Agent has completed or received (A) an                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

|   | appraisal of such Inventory from appraisers satisfactory to the Collateral Agent, establishes Inventory Reserves (if applicable) therefor, and otherwise agrees that such Inventory shall be deemed Eligible Inventory, and (B) such other due diligence as the Agents may require, all of the results of the foregoing to be reasonably satisfactory to the Agents. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |           (a) A Loan Party owns such Real Estate in fee simple absolute;                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |           (b) The Administrative Agent shall have received evidence that all actions that the Administrative Agent may reasonably deem necessary or appropriate in order to create valid first and subsisting Liens (subject only to those Liens permitted by Section 6.02 hereof which have priority over the Lien of the Collateral Agent by operation of Law or otherwise reasonably acceptable to the Administrative Agent) on the property described in the Mortgages have been taken; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |           (c) The Administrative Agent shall have received an appraisal (based upon Appraised Value) of such Real Estate complying with the requirements of FIRREA by a third- party appraiser reasonably acceptable to the Administrative Agent and otherwise in form and substance reasonably satisfactory to the Administrative Agent; and                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |           (d) The Real Estate Eligibility Requirements have been satisfied.                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

----

----

|   |           (a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;                                                                                                                                                                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (b) the maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), banker’s acceptances, bank guaranties, surety bonds and similar instruments;                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (c) net obligations of such Person under any Swap Contract;                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business and, in each case, not past due for more than 60 days);                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (f) All Attributable Indebtedness of such Person;                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person (including, without limitation, Disqualified Stock), or any warrant, right or option to acquire such Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (h) all Guarantees of such Person in respect of any of the foregoing.                                                                                                                                                                                                                                                                                                                                                                                                 |

----

|   |           (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (ii) any Interest Period that begins on the last 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 end on the last Business Day of the calendar month at the end of such Interest Period; |
|   |                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (iii) no Interest Period shall extend beyond the Maturity Date; and                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (iv) notwithstanding the provisions of clause (iii), no Interest Period shall have a duration of less than one (1) month, and if any Interest Period applicable to a LIBO Borrowing would be for a shorter period, such Interest Period shall not be available hereunder.                                 |

|   |           (a) Obsolescence; |
|--------|-------------------------------------------------------------------------------|
|   |                                                                          |
|   |           (b) Seasonality;  |

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|   |           (c) Shrink;                                                                                                                                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                         |
|   |           (d) Imbalance;                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                         |
|   |           (e) Change in Inventory character;                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                         |
|   |           (f) Change in Inventory composition;                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                         |
|   |           (g) Change in Inventory mix;                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                         |
|   |           (h) Mark-downs (both permanent and point of sale);                                                                                                                                               |
|   |                                                                                                                                                                                                                                                         |
|   |           (i) Retail mark-ons and mark-ups inconsistent with prior period practice and performance, industry standards, current business plans or advertising calendar and planned advertising events; and |
|   |                                                                                                                                                                                                                                                         |
|   |           (j) Out-of-date and/or expired Inventory.                                                                                                                                                        |

----

----

----

----

|   |           (a) No Default then exists or would arise from the consummation of such Acquisition;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (b) Such Acquisition shall have been approved by the Board of Directors of the Person (or similar governing body if such Person is not a corporation) which is the subject of such Acquisition and such Person shall neither have announced that it will oppose such Acquisition nor commenced any action which alleges that such Acquisition shall violate applicable Law;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (c) The Lead Borrower shall have furnished the Administrative Agent with thirty (30) days’ prior written notice of such intended Acquisition and shall have furnished the Administrative Agent with a current draft of the Acquisition documents (and final copies thereof as and when executed), a summary of any due diligence undertaken by the Loan Parties in connection with such Acquisition, appropriate financial statements of the Person which is the subject of such Acquisition, pro forma projected financial statements for the twelve (12) month period following such Acquisition after giving effect to such Acquisition (including balance sheets, cash flows and income statements by month for the acquired Person, individually, and on a Consolidated basis with all Loan Parties), and such other information as the Administrative Agent may reasonably require, all of which shall be reasonably satisfactory to the Administrative Agent; |

----

|   |           (d) Either (i) the legal structure of the Acquisition shall be acceptable to the Administrative Agent in its discretion, or (ii) the Loan Parties shall have provided the Administrative Agent with a solvency opinion from an unaffiliated third party valuation firm reasonably satisfactory to the Administrative Agent;                                                                                                                                                                                                                                                                             |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (f) After giving effect to the Acquisition, if the Acquisition is an Acquisition of Equity Interests, a Loan Party shall acquire and own, directly or indirectly, a majority of the Equity Interests in the Person being acquired and shall Control a majority of any voting interests or shall otherwise Control the governance of the Person being acquired;                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (g) Any assets acquired shall be utilized in, and if the Acquisition involves a merger, consolidation or stock acquisition, the Person which is the subject of such Acquisition shall be engaged in, a business otherwise permitted to be engaged in by a Borrower under this Agreement;                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (h) If the Person which is the subject of such Acquisition will be maintained as a Subsidiary of a Loan Party, or if the assets acquired in an Acquisition will be transferred to a Subsidiary which is not then a Loan Party, such Subsidiary shall have been joined as a “Borrower” hereunder or as a Facility Guarantor, as the Administrative Agent shall determine, and the Collateral Agent shall have received a first priority security and/or mortgage interest in such Subsidiary’s property of the same nature as constitutes Collateral under the Security Documents; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (i) The Loan Parties shall have satisfied the Payment Conditions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   |           (a) dispositions of inventory in the ordinary course of business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (b) bulk sales or other dispositions of the Inventory of a Loan Party not in the ordinary course of business in connection with Store closings, at arm’s length, provided, that such Store closures and related Inventory dispositions shall not exceed (i) in any Fiscal Year of the Lead Borrower and its Subsidiaries, ten percent (10%) of the number of the Loan Parties’ Stores as of the beginning of such Fiscal Year (net of new Store openings) and (ii) in the aggregate from and after the Closing Date, twenty-five percent (25%) of the number of the Loan Parties’ Stores in existence as of the Closing Date (net of new Store openings), provided, that all sales of Inventory in connection with Store closings (in a single or series of related transactions) shall be in accordance with liquidation agreements and with professional liquidators reasonably acceptable to the Agents; provided, further that all Net Proceeds received in connection therewith are applied to the Obligations if then required in accordance with Section 2.05 hereof; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (c) non-exclusive licenses of Intellectual Property of a Loan Party or any of its Subsidiaries in the ordinary course of business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (d) licenses for the conduct of licensed departments within the Loan Parties’ Stores in the ordinary course of business; provided that, if requested by the Agents, the Agents shall have entered into an intercreditor agreement with the Person operating such licensed department on terms and conditions reasonably satisfactory to the Agents;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (e) dispositions of Equipment in the ordinary course of business that is substantially worn, damaged, obsolete or, in the judgment of a Loan Party, no longer useful or necessary in its business or that of any Subsidiary and is replaced with similar property having at least equivalent utility;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (f) sales, transfers and dispositions among the Loan Parties or by any Subsidiary to a Loan Party;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (g) sales, transfers and dispositions by any Subsidiary which is not a Loan Party to another Subsidiary that is not a Loan Party; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (h) as long as no Default then exists or would arise therefrom, sales of Real Estate of any Loan Party (or sales of any Person or Persons created to hold such Real Estate or the equity interests in such Person or Persons), including sale-leaseback transactions involving any such Real Estate pursuant to leases on market terms, as long as, (A) such sale is made for fair market value, (B) with respect to any Eligible Real Estate, the Net Proceeds paid in cash are in an amount at least equal to the greater of the amounts advanced or available to be advanced against such Eligible Real Estate under the Borrowing Base, (C) the Net Proceeds of such sale are utilized to repay the Obligations, and (D) in the case of any sale-leaseback transaction permitted hereunder, the Agents shall have received from such each purchaser or transferee a Collateral Access Agreement on terms and conditions reasonably satisfactory to the Agents.                                                                                                                             |

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|   |           (a) Liens imposed by law for Taxes that are not yet due or are being contested in compliance with Section 6.04;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (b) Carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by applicable Laws, arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being contested in compliance with Section 6.04;                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (c) Pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations, other than any Lien imposed by ERISA;                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (d) Deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (e) Liens in respect of judgments that would not constitute an Event of Default hereunder;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (f) Easements, covenants, conditions, restrictions, building code laws, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of a Loan Party and such other minor title defects or survey matters that are disclosed by current surveys that, in each case, do not materially interfere with the current use of the real property;                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (g) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased, (iii) the direct or any contingent obligor with respect thereto is not changed, and (iv) any renewal or extension of the obligations secured or benefited thereby is otherwise permitted hereunder);                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (h) Liens on fixed or capital assets acquired by any Loan Party which are permitted under clause (c) of the definition of Permitted Indebtedness so long as (i) such Liens and the Indebtedness secured thereby are incurred prior to or within ninety (90) days after such acquisition, (ii) the Indebtedness secured thereby does not exceed the cost of acquisition of such fixed or capital assets and (iii) such Liens shall not extend to any other property or assets of the Loan Parties;                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (i) Liens in favor of the Collateral Agent;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (j) Landlords’ and lessors’ Liens in respect of rent not in default;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (k) Possessory Liens in favor of brokers and dealers arising in connection with the acquisition or disposition of Investments owned as of the date hereof and Permitted Investments, provided that such liens (a) attach only to such Investments and (b) secure only obligations incurred in the ordinary course and arising in connection with the acquisition or disposition of such Investments and not any obligation in connection with margin financing;                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (l) Liens arising solely by virtue of any statutory or common law provisions relating to banker’s liens, liens in favor of securities intermediaries, rights of setoff or similar rights and remedies as to deposit accounts or securities accounts or other funds maintained with depository institutions or securities intermediaries;                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (m) Liens arising from precautionary UCC filings regarding “true” operating leases or, to the extent permitted under the Loan Documents, the consignment of goods to a Loan Party;                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (n) voluntary Liens on property (other than property of the type included in the Borrowing Base) in existence at the time such property is acquired pursuant to a Permitted Acquisition or on such property of a Subsidiary of a Loan Party in existence at the time such Subsidiary is acquired pursuant to a Permitted Acquisition; provided, that such Liens are not incurred in connection with or in anticipation of such Permitted Acquisition and do not attach to any other assets of any Loan Party or any Subsidiary;                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (o) Liens in favor of customs and revenues authorities imposed by applicable Laws arising in the ordinary course of business in connection with the importation of goods and securing obligations (i) that are not overdue by more than thirty (30) days, or (ii)(A) that are being contested in good faith by appropriate proceedings, (B) the applicable Loan Party or Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (C) such contest effectively suspends collection of the contested obligation and enforcement of any Lien securing such obligation; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (p) encumbrances referred to in Schedule B of the Mortgage Policies insuring the Mortgages.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|   |           (a) Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder, and the direct or contingent obligor with respect thereto is not changed as a result of or in connection with such refinancing, refunding, renewal or extension, (ii) the result of such extension, renewal or replacement shall not be an earlier maturity date or decreased weighted average life of such Indebtedness, and (iii) the terms relating to principal amount, amortization, maturity, collateral (if any), subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;                                                                                                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (b) Indebtedness of any Loan Party to any other Loan Party;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (c) Without duplication of Indebtedness described in clause (f) of this definition, purchase money Indebtedness of any Loan Party to finance the acquisition of any fixed or capital assets, including Capital Lease Obligations and Synthetic Lease Obligations, and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof or result in an earlier maturity date or decreased weighted average life thereof provided that the terms relating to principal amount, amortization, maturity, collateral (if any), subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate, provided, however, that the aggregate principal amount of Indebtedness permitted by this clause (b) shall not exceed $5,000,000 at any time outstanding and further provided that, if requested by the Collateral Agent, the Loan Parties shall cause the holders of such Indebtedness to enter into an agreement with respect to the use of such fixed or capital assets in connection with the realization on any Collateral by the Collateral Agent, on terms reasonably satisfactory to the Collateral Agent; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (d) obligations (contingent or otherwise) of any Loan Party or any Subsidiary thereof existing or arising under any Swap Contract, provided that such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with fluctuations in interest rates or foreign exchange rates, and not for purposes of speculation or taking a “market view;”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (e) Contingent liabilities under surety bonds or similar instruments incurred in the ordinary course of business in connection with the construction or improvement of Stores;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (f) Indebtedness incurred for the construction or acquisition or improvement of, or to finance or to refinance, any Real Estate owned or to be acquired by any Loan Party (including therein any Indebtedness incurred in connection with sale-leaseback transactions permitted hereunder), provided that, (A) with respect to any Eligible Real Estate, the Net Proceeds paid in cash are in an amount at least equal to the greater of the amounts advanced or available to be advanced against such Eligible Real Estate under the Borrowing Base and (B) all Net Proceeds received in connection with any such Indebtedness are applied to the Obligations, and (C) in the case of a sale-leaseback transaction, the Loan Parties shall cause the holders of such Indebtedness to enter into a Collateral Access Agreement on terms reasonably satisfactory to the Collateral Agent;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (g) Indebtedness with respect to the deferred purchase price for any Permitted Acquisition, provided that such Indebtedness does not require the payment in cash of principal (other than in respect of working capital adjustments) prior to the Maturity Date, has a maturity which extends beyond the Maturity Date, and is subordinated to the Obligations on terms reasonably acceptable to the Agents;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|   |           (h) Indebtedness of any Person that becomes a Subsidiary of a Loan Party in a Permitted Acquisition, which Indebtedness is existing at the time such Person becomes a Subsidiary of a Loan Party (other than Indebtedness incurred solely in contemplation of such Person’s becoming a Subsidiary of a Loan Party);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (i) Indebtedness of the Lead Borrower consisting of Guarantees executed by the Lead Borrower in favor of (i) suppliers of Inventory to SYL, LLC in support of trade credit extended to SYL, LLC relating to such Inventory and/or (ii) factors extending credit to suppliers of Inventory to SYL, LLC in order to induce such factors to permit such suppliers to extend trade credit to SYL, LLC and/or to accept assignments from such suppliers of accounts receivable with respect to which SYL, LLC is the account debtor; and extended to SYL, LLC relating to such Inventory and/or (ii) factors extending credit to suppliers of Inventory to SYL, LLC in order to induce such factors to permit such suppliers to extend trade credit to SYL, LLC and/or to accept assignments from such suppliers of accounts receivable with respect to which SYL, LLC is the account debtor; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (j) The Obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|   |           (a) readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than 360 days from the date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof;                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (b) commercial paper issued by any Person organized under the laws of any state of the United States of America and rated at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in each case with maturities of not more than 180 days from the date of acquisition thereof;                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (c) time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the principal banking subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or the parent of which issues) commercial paper rated as described in clause (b) of this definition and (iii) has combined capital and surplus of at least $1,000,000,000, in each case with maturities of not more than 180 days from the date of acquisition thereof; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (d) Fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above (without regard to the limitation on maturity contained in such clause) and entered into with a financial institution satisfying the criteria described in clause (c) above or with any primary dealer and having a market value at the time that such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such counterparty entity with whom such repurchase agreement has been entered into;                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (e) Investments, classified in accordance with GAAP as current assets of the Loan Parties, in any money market fund, mutual fund, or other investment companies that are registered under the Investment Company Act of 1940, as amended, which are administered by financial institutions that have the highest rating obtainable from either Moody’s or S&P, and which invest solely in one or more of the types of securities described in clauses (a) through (d) above;                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (f) Investments existing on the Closing Date, and set forth on Schedule 7.02, but not any increase in the amount thereof or any other modification of the terms thereof;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (g) (i) Investments by any Loan Party and its Subsidiaries in their respective Subsidiaries outstanding on the date hereof, (ii) additional Investments by any Loan Party and its Subsidiaries in Loan Parties, and (iii) additional Investments by Subsidiaries of the Loan Parties that are not Loan Parties in other Subsidiaries that are not Loan Parties;                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (h) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (i) Guarantees constituting Permitted Indebtedness;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (j) Investments by any Loan Party in Swap Contracts permitted hereunder;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

|   |           (l) advances to officers, directors and employees of the Loan Parties and Subsidiaries in the ordinary course of business in an amount not to exceed $5,000 to any individual at any time or in an aggregate amount not to exceed $50,000 at any time outstanding, for travel, entertainment, relocation and analogous ordinary business purposes; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (m) Investments constituting Permitted Acquisitions; and                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (n) Capital contributions made by any Loan Party to another Loan Party;                                                                                                                                                                                                                                                                            |

|   |           (a) Is made to maintain, protect or preserve the Collateral and/or the Credit Parties’ rights under the Loan Documents or which is otherwise for the benefit of the Credit Parties; or                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (b) Is made to enhance the likelihood of, or to maximize the amount of, repayment of any Obligation;                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (c) Is made to pay any other amount chargeable to any Loan Party hereunder; and                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (d) Together with all other Permitted Overadvances then outstanding, shall not (i) exceed five percent (5%) of the Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain outstanding for more than forty-five (45) consecutive Business Days, unless in each case, the Required Lenders otherwise agree; |

|   |           (a) Any Disposition (including pursuant to a sale and leaseback transaction) of any property or asset of a Loan Party;                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (b) Any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of a Loan Party, unless the proceeds therefrom are required to be paid to the holder of a Lien on such property or asset having priority over the Lien of the Collateral Agent; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (c) The issuance by a Loan Party of any Equity Interests, other than any such issuance of Equity Interests (i) to a Loan Party, (ii) as consideration for a Permitted Acquisition or (iii) as a compensatory issuance to any employee, director, or consultant (including under any option plan);                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (d) The incurrence by a Loan Party of any Indebtedness for borrowed money other than Permitted Indebtedness; or                                                                                                                                                                                                                             |

----

|   |           (e) The receipt by any Loan Party of any Extraordinary Receipts. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|                                       |   |                     |
|--------------------------------------------|--------|--------------------------|
| Period                                     |   | Real Estate Advance Rate |
|                                       |   |                     |
| Closing Date through November 9, 2009      |   | 50%                      |
|                                       |   |                     |
|                                       |   |                     |
| November 10, 2009 through February 9, 2010 |   | 45%                      |
|                                       |   |                     |
|                                       |   |                     |
| February 10, 2010 through May 9, 2010      |   | 40%                      |
|                                       |   |                     |
|                                       |   |                     |
| May 10, 2010 through August 9, 2010        |   | 35%                      |
|                                       |   |                     |
|                                       |   |                     |
| August 10, 2010 through November 9, 2010   |   | 30%                      |
|                                       |   |                     |
|                                       |   |                     |
| November 10, 2010 through February 9, 2011 |   | 25%                      |
|                                       |   |                     |
|                                       |   |                     |
| February 10, 2011 through May 9, 2011      |   | 20%                      |
|                                       |   |                     |
|                                       |   |                     |
| May 10, 2011 through August 9, 2011        |   | 15%                      |
|                                       |   |                     |
|                                       |   |                     |
| August 10, 2011 through November 9, 2011   |   | 10%                      |
|                                       |   |                     |
|                                       |   |                     |
| November 10, 2011 through February 9, 2012 |   | 5%                       |
|                                       |   |                     |
|                                       |   |                     |
| Thereafter                                 |   | 0%                       |
|                                       |   |                     |

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|   |           (a) The applicable Loan Party has executed and delivered to the Collateral Agent a Mortgage with respect to any Real Estate intended, by such Loan Party, to be included in Eligible Real Estate;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (b) Such Real Estate is used by a Loan Party for offices or as a store or distribution center;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (c) As to any particular property, the Loan Party is in compliance in all material respects with the representations, warranties and covenants set forth in the Mortgage relating to such Real Estate;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (d) The Collateral Agent shall have received fully paid American Land Title Association Lender’s Extended Coverage title insurance policies or marked-up title insurance commitments having the effect of a policy of title insurance) (the “Mortgage Policies”) in form and substance, with the endorsements reasonably required by the Agents (to the extent available at commercially reasonable rates) and in amounts reasonably acceptable to the Collateral Agent (provided that such amounts shall not exceed the Appraised Value of the applicable Mortgaged Property), issued, coinsured and reinsured (to the extent required by the Collateral Agent) by title insurers reasonably acceptable to the Collateral Agent, insuring the Mortgages to be valid first and subsisting Liens on the property or leasehold interests described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only those Liens permitted by Section 7.01 having priority over the Lien of the Collateral Agent under Law or otherwise reasonably acceptable to the Collateral Agent; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (e) With respect to any Real Estate intended by any Borrower or other Loan Party to be included in Eligible Real Estate, the Collateral Agent shall have received (i) a Phase I Environmental Site Assessment in accordance with ASTM Standard E1527-05, in form and substance reasonably satisfactory to the Collateral Agent, from an environmental consulting firm reasonably acceptable to the Collateral Agent, which report shall identify recognized environmental conditions and shall to the extent possible quantify any related costs and liabilities, associated with such conditions and the Collateral Agent shall be satisfied with the nature and amount of any such matters, and (ii) if required by the Collateral Agent, further environmental assessments or reports to the extent such further assessments or reports are recommended in the Phase I Environmental Site Assessment;                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (f) With respect to Real Estate located in an area identified by the Secretary of Housing and Urban Development as an area having special flood hazards, the applicable Loan Party shall have delivered to the Collateral Agent evidence of flood insurance naming the Collateral Agent as mortgagee as required by the National Flood Insurance Program as set forth in the Flood Disaster Protection Act of 1973, as amended and in effect, which shall be reasonably satisfactory in form and substance to the Collateral Agent; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (g) The applicable Loan Party shall have delivered such other information and documents as may be reasonably requested by the Agents, including, without limitation, such as may be necessary to comply with FIRREA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

----

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|   |           (a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (b) 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) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Lead Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Lead 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 the Required Lenders); providedthat, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Lead Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. |

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|   |                     (i) after giving effect to any Committed Borrowing, the Total Outstandings shall not exceed the Loan Cap,                                                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                     (ii) after giving effect to any Committed Borrowing, the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, shall not exceed such Lender’s Commitment, and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                     (iii) The Outstanding Amount of all L/C Obligations shall not at any time exceed the Letter of Credit Sublimit.                                                                                                                                                                   |

|   |                     (i) Shrink (an Inventory Reserve): An amount equal to one-half of one percent (0.50%) of the Inventory of SYL, LLC;                                                                                                                                                                                                                                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (ii) Damages/Return to Vendor (an Inventory Reserve): An amount equal to one percent (1.0%) of the Inventory of the Borrowers;                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (iii) Customer Deposits (an Availability Reserve): An amount equal to one hundred percent (100%) of the customer deposits held by the Borrowers as reflected in the Borrowers’ books and records;                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (iv) Customer Credit Liabilities (an Availability Reserve): An amount equal to fifty percent (50%) of the Customer Credit Liabilities as reflected in the Borrowers’ books and records;                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (v) Rent (an Availability Reserve): An amount equal to two (2) months’ rent for all of the Borrowers’ leased locations in each Landlord Lien State (which, as of the Closing Date consists solely of the Syms Corp location in Falls Church, Virginia), other than leased locations with respect to which the Collateral Agent has received a Collateral Access Agreement in form reasonably satisfactory to the Collateral Agent; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (vi) Taxes (an Availability Reserve): An amount equal to the ad valorem taxes then due and owing by the Borrowers to any Texas taxing authority.                                                                                                                                                                                                                                                                                                   |

----

----

|   |                               (A) subject to Section 2.03(b)(iii), the expiry date of such requested Standby 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; or                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                               (B) subject to Section 2.03(b)(iii), the expiry date of such requested Commercial Letter of Credit would occur more than 120 days after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; or                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                               (C) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless either such Letter of Credit is Cash Collateralized on or prior to the date of issuance of such Letter of Credit (or such later date as the L/C Issuer and the Administrative Agent may agree) or all the Lenders have approved such expiry date. |

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|   |                               (A) 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 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; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                               (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                               (C) such Letter of Credit is to be denominated in a currency other than Dollars; provided that if the L/C Issuer, in its discretion, issues a Letter of Credit denominated in a currency other than Dollars, all reimbursements by the Borrowers of the honoring of any drawing under such Letter of Credit shall be paid in the currency in which such Letter of Credit was denominated; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                               (D) a default of any Lender’s obligations to fund under Section 2.03(c) exists or any Lender is at such time a Defaulting Lender or Deteriorating Lender hereunder, unless the L/C Issuer has entered into satisfactory arrangements with the Borrowers or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|   |           (b) If, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit exceeds the amount of the Aggregate Commitments, such Letter of Credit Sublimit shall be automatically reduced by the amount of such excess.                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |           (c) The Administrative Agent will promptly notify the Lenders of any termination or reduction of the Letter of Credit Sublimit or the Aggregate Commitments under this Section 2.06. Upon any reduction of the Aggregate Commitments, the Commitment of each Lender shall be reduced by such Lender’s Applicable Percentage of such reduction amount. All fees (including, |

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|   | without limitation, commitment fees and Letter of Credit Fees) and interest in respect of the Aggregate Commitments accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |           (i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and                                                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |           (ii) the provisions of this Section shall not be construed to apply to (x) any payment made by the Loan Parties pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Committed Loans or subparticipations in L/C Obligations to any assignee or participant, other than to the Borrowers or any Subsidiary thereof (as to which the provisions of this Section shall apply). |

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|   |           (a) The amount of each Lender’s Applicable Percentage of outstanding Committed Loans shall be computed weekly (or more frequently in the Administrative Agent’s discretion) and shall be adjusted upward or downward based on all Committed Loans and repayments of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Committed Loans received by the Administrative Agent as of 3:00 p.m. on the first Business Day (such date, the “Settlement Date”) following the end of the period specified by the Administrative Agent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (b) The Administrative Agent shall deliver to each of the Lenders promptly after a Settlement Date a summary statement of the amount of outstanding Committed Loans for the period and the amount of repayments received for the period. As reflected on the summary statement, (i) the Administrative Agent shall transfer to each Lender its Applicable Percentage of repayments, and (ii) each Lender shall transfer to the Administrative Agent (as provided below) or the Administrative Agent shall transfer to each Lender, such amounts as are necessary to insure that, after giving effect to all such transfers, the amount of Committed Loans made by each Lender shall be equal to such Lender’s Applicable Percentage of all Committed Loans outstanding as of such Settlement Date. If the summary statement requires transfers to be made to the Administrative Agent by the Lenders and is received prior to 1:00 p.m. on a Business Day, such transfers shall be made in immediately available funds no later than 3:00 p.m. that day; and, if received after 1:00 p.m., then no later than 3:00 p.m. on the next Business Day. The obligation of each Lender to transfer such funds is irrevocable, unconditional and without recourse to or warranty by the Administrative Agent. If and to the extent any Lender shall not have so made its transfer to the Administrative Agent, such Lender agrees to pay to the Administrative Agent, forthwith on demand such amount, together with interest thereon, for each day from such date until the date such amount is paid to the Administrative Agent, equal to the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation plus any administrative, processing, or similar fees customarily charged by the Administrative Agent in connection with the foregoing. |

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|   |                     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States is a party,                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrowers within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                     (iv) any other form prescribed by Law as a basis for claiming exemption from or a reduction in United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by Law to permit the Lead Borrower to determine the withholding or deduction required to be made.                                                                                                                                                                                                                                                                |

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|   |                     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBO Rate) or the L/C Issuer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                     (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any LIBO Rate Loan made by it, or change the basis of taxation of payments to such Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                     (iii) impose on any Lender or the L/C Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or LIBO Rate Loans made by such Lender or any Letter of Credit or participation therein; and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any LIBO Rate Loan (or of maintaining its obligation to make any such Committed Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrowers will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered. |

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|   |           (a) any continuation, Conversion, payment or prepayment of any Committed Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Committed Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);                                                                                                                                                                                                                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (b) any failure by the Borrowers (for a reason other than the failure of such Lender to make a Committed Loan) to prepay, borrow, continue or Convert any Committed Loan other than a Base Rate Loan on the date or in the amount notified by the Lead Borrower; or                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (c) any assignment of a LIBO Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Lead Borrower pursuant to Section 10.13; including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Committed Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrowers shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. |

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|   |           (a) The Administrative Agent’s receipt of the following, each of which shall be originals, telecopies, or documents transmitted by electronic mail (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to the Administrative Agent: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                     (i) executed counterparts of this Agreement sufficient in number for distribution to the Administrative Agent, each Lender and the Lead Borrower;                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                     (ii) a Note executed by the Borrowers in favor of each Lender requesting a Note;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (iii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing (A) the authority of each Loan Party to enter into this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party; |

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|   | Loan Party to enter into this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (iv) copies of each Loan Party’s Organization Documents and such other documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to so qualify in such jurisdiction could not reasonably be expected to have a Material Adverse Effect;                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (v) a favorable opinion of Lowenstein Sandler PC, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (vi) a certificate signed by a Responsible Officer of the Lead Borrower certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, (B) that there has been no event or circumstance since the date of the Audited Financial Statements that has had or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (C) to the Solvency of the Loan Parties as of the Closing Date after giving effect to the transactions contemplated hereby, and (D) either that (1) no consents, licenses or approvals are required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, or (2) that all such consents, licenses and approvals have been obtained and are in full force and effect; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (vii) evidence that all insurance required to be maintained pursuant to the Loan Documents and all endorsements in favor of the Agents required under the Loan Documents have been obtained and are in effect;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (viii) a payoff letter from Israel Discount Bank of New York, as lender under the Existing Credit Agreement satisfactory in form and substance to the Administrative Agent evidencing that the Existing Credit Agreement has been or concurrently with the Closing Date is being terminated, all obligations thereunder are being paid in full, and all Liens securing obligations under the Existing Credit Agreement have been or concurrently with the Closing Date are being released;                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (ix) the Security Documents (including, without limitation, the Mortgages and certificates evidencing any stock being pledged thereunder, together with undated stock powers executed in blank, each duly executed by the applicable Loan Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (x) all other Loan Documents, each duly executed by the applicable Loan Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (xi) (A) appraisals (based on net liquidation value) by a third party appraiser acceptable to the Collateral Agent of all Inventory of the Borrowers, the results of which are satisfactory to the Collateral Agent and (B) a written report regarding the results of a commercial finance examination of the Loan Parties, the results of which shall be satisfactory to the Collateral Agent;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (xii) results of searches or other evidence reasonably satisfactory to the Collateral Agent (in each case dated as of a date reasonably satisfactory to the Collateral Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Encumbrances and Liens for which termination statements and releases, satisfactions and discharges of any Mortgages, and releases or subordination agreements satisfactory to the Collateral Agent are being tendered concurrently with such extension of credit or other arrangements satisfactory to the Collateral Agent for the delivery of such termination statements and releases, satisfactions and discharges have been made;                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (xiii) (A) all documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Collateral Agent to be filed, registered or recorded to create or perfect the first priority Liens intended to be created under the Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of the Collateral Agent, (B) the Credit Card Notifications, and Blocked Account Agreements required pursuant to Section 6.13 hereof, and (C) control agreements with respect to the Loan Parties’ securities and investment accounts;                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                     (xiv) evidence that all other actions that the Collateral Agent may deem necessary or desirable in order to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|   | create valid first and subsisting Liens on the property described in the Mortgages has been taken;                                                                                                                                                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                     (xv) an appraisal of each of the properties described in the Mortgages complying with the requirements of FIRREA by a third-party appraiser acceptable to the Collateral Agent and otherwise in form and substance satisfactory to the Collateral Agent; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                     (xvi) such other assurances, certificates, documents, consents or opinions as the Agents reasonably may require.                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                 |

|   |           (b) After giving effect to (i) the first funding under the Committed Loans and (ii) all Letters of Credit to be issued at, or immediately subsequent to, such establishment, Availability shall be not less than $20,000,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (c) The Administrative Agent shall have received a Borrowing Base Certificate dated the Closing Date, relating to the month ended on August 1, 2009, and executed by a Responsible Officer of the Lead Borrower, which Borrowing Base Certificate shall be acceptable to the Administrative Agent in all respects.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (d) The Administrative Agent shall be reasonably satisfied that any financial statements delivered to it fairly present the business and financial condition of the Loan Parties and that there has not occurred since February 28, 2009 (i) any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect or (ii) any action, suit, investigation or proceeding pending or, to the knowledge of the Borrowers, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect.                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (e) The Administrative Agent shall be reasonably satisfied that the Real Estate Eligibility Conditions have been satisfied.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (f) The Administrative Agent shall have received and be satisfied with (i) a detailed forecast (x) on a monthly basis for the twelve-month period following the Closing Date and (y) on an annual basis, for each Fiscal Year thereafter through the Maturity Date, including, in each case, an Availability model, Consolidated income statement, balance sheet, and statement of cash flow, by month, each prepared in conformity with GAAP and consistent with the Loan Parties’ then current practices and (ii) such other information (financial or otherwise) reasonably requested by the Administrative Agent.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (g) All of the information (other than any projections delivered to the Administrative Agent) shall be complete and correct in all material respects and no changes or developments shall have occurred, and no new or additional information, shall have been received or discovered by the Administrative Agent regarding the Lead Borrower or its Subsidiaries or the transactions contemplated hereby that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. All Projections prepared by the Lead Borrower or at its direction and delivered to the Administrative Agent will represent, at the time of delivery to the Administrative Agent, the Lead Borrower’s good-faith estimate of the future financial performance of the Lead Borrower and its Subsidiaries and will be based upon assumptions which are believed by the Lead Borrower to be reasonable in light of the past performance of the Lead Borrower and its Subsidiaries and then current business conditions. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (h) There shall not have occurred any default of any Material Contract of any Loan Party which could reasonably be expected to have a Material Adverse Effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (i) The consummation of the transactions contemplated hereby shall not violate any Law or any Organization Document.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (j) All fees required to be paid to the Agents on or before the Closing Date shall have been paid in full, and all fees required to be paid to the Lenders on or before the Closing Date shall have been paid in full.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (k) The Borrowers shall have paid all fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrowers and the Administrative Agent).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (l) The Administrative Agent shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA Patriot Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (m) No material changes in governmental regulations or policies affecting any Loan Party or any Credit Party shall have occurred prior to the Closing Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   |           (a) The representations and warranties of each Loan Party contained in Article V or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (b) No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (c) The Administrative Agent and, if applicable, the L/C Issuer shall have received a Request for Credit Extension in accordance with the requirements hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

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|   |           (b) Except as otherwise set forth in Schedule 5.09, to the knowledge of the Loan Parties, none of the properties currently or formerly owned or operated by any Loan Party or any Subsidiary thereof is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to the knowledge of any Loan Party, is adjacent to any such property; except for underground storage tanks currently in use and operated in compliance with Environmental Laws, there are no underground or above-ground storage tanks or surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Loan Party or any Subsidiary thereof or, to the best of the knowledge of the Loan Parties, on any property formerly owned or operated by any Loan Party or Subsidiary thereof except such as have been decommissioned in accordance with Environmental Laws in effect at the time of such decommissioning; there is no asbestos or asbestos-containing material on any property currently owned or operated by any Loan Party or Subsidiary thereof; and Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by any Loan Party or any Subsidiary thereof. |
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|   |           (c) Except as otherwise set forth on Schedule 5,09, no Loan Party or any Subsidiary thereof is undertaking, and no Loan Party or any Subsidiary thereof has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by any Loan Party or any Subsidiary thereof have                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|   | been disposed of in a manner not reasonably expected to result in material liability to any Loan Party or any Subsidiary thereof. |
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|   |           (a) The Security Agreement creates in favor of the Collateral Agent, for the benefit of the Secured Parties referred to therein, a legal, valid and enforceable security interest in the Collateral (as defined in the Security Agreement), the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Upon the filing of financing statements and/or the obtaining of “control”, in each case with respect to the relevant Collateral as required under the applicable UCC, the Collateral Agent will have a perfected Lien on, and security interest in, to and under all right, title and interest of the grantors thereunder in all Collateral that may be perfected by filing, recording or registering a financing statement or analogous document (including without limitation the proceeds of such Collateral subject to the limitations relating to such proceeds in the UCC) or by obtaining control, under the UCC (in effect on the date this representation is made), in each case prior and superior in right to any other Person, except for Permitted Encumbrances having priority under applicable Law. |
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|   |           (b) When appropriate documentation is recorded in the United States Patent and Trademark Office and the United States Copyright Office and when financing statements in appropriate form are filed in the appropriate office in the jurisdiction of formation of the appropriate Loan Party, the Collateral Agent will have a fully perfected Lien on, and security interest in, all right, title and interest of the applicable Loan Parties in the Intellectual Property (as defined in the Security Agreement) in which a security interest may be perfected by filing, recording or registering a security agreement, financing statement or analogous document in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, in each case prior and superior in right to any other Person (it being understood that subsequent recordings in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a Lien on registered trademarks, trademark applications and copyrights acquired by the Loan Parties after the date hereof).                                                                                                                                                                                                                         |
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|   |           (c) The Mortgages create in favor of the Collateral Agent, for the benefit of the Secured Parties referred to therein, a legal, valid, continuing and enforceable Lien on the Mortgaged Property (as defined in the Mortgages), the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Upon the recording of each Mortgage with the appropriate Governmental Authority, the Collateral Agent will have a valid mortgage Lien on, and security interest in, to and under all right, title and interest of the grantor thereunder in all Mortgaged Property covered by such Mortgage, having the priority and subject to the exceptions set forth in the Mortgage Policy relating to such Mortgage.                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   |           (a) as soon as available, but in any event within 90 days after the end of each Fiscal Year of the Lead Borrower (or, in the event the Lead Borrower timely files a Form 12b-25 under the Exchange Act, such longer period allowed under Rule 12b-25 of the rules and regulations promulgated under the Exchange Act), a Consolidated balance sheet of the Lead Borrower and its Subsidiaries as at the end of such Fiscal Year, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by (i) a report and unqualified opinion of a Registered Public Accounting Firm of nationally recognized standing reasonably acceptable to the Administrative Agent (and the Administrative Agent hereby agrees that BDO Seidman, LLP is reasonably acceptable to the Administrative Agent), which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit and (ii) an opinion of such Registered Public Accounting Firm independently assessing Loan Parties’ internal controls over financial reporting in accordance with Item 308 of SEC Regulation S-K, PCAOB Auditing Standard No. 2, and Section 404 of Sarbanes-Oxley expressing a conclusion that contains no statement that there is a material weakness in such internal controls, except for such material weaknesses as to which the Required Lenders do not object; |
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|   |           (b) as soon as available, but in any event within 45 days after the end of each Fiscal Quarter of each Fiscal Year of the Lead Borrower (or, in the event the Lead Borrower timely files a Form 12b-25 under the Exchange Act, such longer period allowed under Rule 12b-25 of the rules and regulations promulgated under the Exchange Act), a Consolidated balance sheet of the Lead Borrower and its Subsidiaries as at the end of such Fiscal Quarter, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Quarter and for the portion of the Lead Borrower’s Fiscal Year then ended, setting forth in each case in comparative form the figures for (A) such period set forth in the projections delivered pursuant to Section 6.01(d) hereof, (B) the corresponding Fiscal Quarter of the previous Fiscal Year and (C) the corresponding portion of the previous Fiscal Year, all in reasonable detail, certified by a Responsible Officer of the Lead Borrower as fairly presenting the financial condition, results of operations, Shareholders’ Equity and cash flows of the Lead Borrower and its Subsidiaries as of the end of such Fiscal Quarter in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           (c) as soon as available, but in any event within 30 days after the end of each Fiscal Month of each Fiscal Year of the Lead Borrower, a Consolidated balance sheet of the Lead Borrower and its Subsidiaries as at the end of such Fiscal Month, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Month, and for the portion of the Lead Borrower’s Fiscal Year then ended, setting forth in each case in comparative form the figures for (A) such                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   | period set forth in the projections delivered pursuant to Section 6.01(d) hereof, (B) the corresponding Fiscal Month of the previous Fiscal Year and (C) the corresponding portion of the previous fiscal year, all in reasonable detail, certified by a Responsible Officer of the Lead Borrower as fairly presenting the financial condition, results of operations, Shareholders’ Equity and cash flows of the Lead Borrower and its Subsidiaries as of the end of such Fiscal Month in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;                                                                                              |
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|   |           (d) as soon as available, but in any event at least 30 days before the end of each Fiscal Year of the Lead Borrower, forecasts prepared by management of the Lead Borrower, in form satisfactory to the Administrative Agent, which shall include an Availability model, Consolidated balance sheets and statements of income or operations and cash flows of the Lead Borrower and its Subsidiaries on a monthly basis for the immediately following Fiscal Year (including the fiscal year in which the Maturity Date occurs), and as soon as available, any significant revisions to such forecast with respect to such Fiscal Year. |

|   |           (a) concurrently with the delivery of the financial statements referred to in Section 6.01(a), a certificate of its Registered Public Accounting Firm certifying such financial statements and stating that in making the examination necessary for their certification of such financial statements, such Registered Public Accounting Firm has not obtained any knowledge of the existence of any Default or, if any such Default shall exist, stating the nature and status of such event;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   |           (b) concurrently with the delivery of the financial statements referred to in Sections 6.01(a), (b) and (c), (i) a duly completed Compliance Certificate signed by a Responsible Officer of the Lead Borrower, and in the event of any change in generally accepted accounting principles used in the preparation of such financial statements, the Lead Borrower shall also provide a statement of reconciliation conforming such financial statements to GAAP and (ii) a copy of management’s discussion and analysis with respect to such financial statements;                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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|   |           (c) on the tenth (10th) day of each Fiscal Month (or, if such day is not a Business Day, on the next succeeding Business Day), a certificate in the form of Exhibit E (a “Borrowing Base Certificate”) showing the Borrowing Base as of the close of business as of the last day of the immediately preceding Fiscal Month, each Borrowing Base Certificate to be certified as complete and correct by a Responsible Officer of the Lead Borrower; provided that at any time that an Accelerated Borrowing Base Delivery Event has occurred and is continuing, such Borrowing Base Certificate shall be delivered on Wednesday of each week (or, if Wednesday is not a Business Day, on the next succeeding Business Day), showing the Borrowing Base as of the close of business on the immediately preceding Saturday, and no additional Borrowing Base Certificate need be provided on the tenth (10th) day of any Fiscal Month with respect to which a Borrowing Base Certificate has been delivered weekly; |
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|   |           (d) promptly upon receipt, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of any Loan Party by its Registered Public Accounting Firm in connection with the accounts or books of the Loan Parties or any Subsidiary, or any audit of any of them, including, without limitation, specifying any Internal Control Event;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (e) promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Loan Parties, and copies of all annual, regular, periodic and special reports and registration statements which any Loan Party may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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|   |           (f) The financial and collateral reports described on Schedule 6.02 hereto, at the times set forth in such Schedule;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |           (g) promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of this Section 6.02;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   |           (h) as soon as available, but in any event within 30 days after the end of each Fiscal Year of the Loan Parties, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for each Loan Party and its Subsidiaries and containing such additional information as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably specify;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|   |           (i) promptly, and in any event within five Business Days after receipt thereof by any Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received from any Governmental Authority (including, without limitation, the SEC (or comparable agency in any applicable non-U.S. jurisdiction)) concerning any proceeding with, or investigation or possible investigation or other inquiry by such Governmental Authority regarding financial or other operational results of any Loan Party or any Subsidiary thereof or any other matter which, if adversely determined, could reasonably expected to have a Material Adverse Effect; and |
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|   |           (j) promptly, such additional information regarding the business affairs, financial condition or operations of any Loan Party or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably request.                                                                                                                                                                                                                                                                                                                                                                                |

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|   |           (b) at all times retain a Registered Public Accounting Firm which is are reasonably satisfactory to the Administrative Agent and shall instruct such Registered Public Accounting Firm to cooperate with, and be available to, the Administrative Agent or its representatives to discuss the Loan Parties’ financial performance, financial condition, operating results, controls, and such other matters, within the scope of the retention of such Registered Public Accounting Firm, as may be raised by the Administrative Agent. |
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|   |           (b) Upon the request of the Administrative Agent after reasonable prior notice, permit the Administrative Agent or professionals (including investment bankers, consultants, accountants, lawyers and appraisers) retained by the Administrative Agent to conduct appraisals, commercial finance examinations and other evaluations, including, without limitation, of (i) the Lead Borrower’s practices in the computation of the Borrowing Base and (ii) the assets included in the Borrowing Base and related financial information such as, but not limited to, sales, gross margins, payables, accruals and reserves. The Loan Parties shall pay the fees and expenses of the Administrative Agent and such professionals with respect to any real estate appraisals performed and up to two (2) Inventory appraisals and two (2) commercial finance examinations in any twelve-month period; provided that, if Availability is at any time less than twenty-five percent (25%) of the Loan Cap, the Loan Parties shall pay the fees and expenses of the Administrative Agent and such professionals with respect to up to three (3) Inventory appraisals and three (3) commercial finance examinations in any twelve month period. In addition to the foregoing, the Loan Parties shall pay the fees and expenses of the Administrative Agent and such professionals with respect to (i) one (1) additional Inventory appraisal, one (1) additional commercial finance examination, and two (2) additional desktop Inventory appraisals during 2009, and (ii) one (1) additional Inventory appraisal and one (1) additional commercial finance examination during 2010. Notwithstanding any of the foregoing, the Administrative Agent may cause additional appraisals and commercial finance examinations to be undertaken (i) as it in its discretion deems necessary or appropriate, at its own expense or, (ii) if required by Law or if a Default shall have occurred and be continuing, at the expense of the Loan Parties. |
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|   |           (c) Permit the Administrative Agent, from time to time, engage a geohydrologist, an independent engineer or other qualified consultant or expert, reasonably acceptable to the Administrative Agent, at the expense of the Loan Parties, to undertake Phase I environmental site assessments during the term of this Agreement of the Eligible Real Estate, provided that such assessments may only be undertaken (i) during the continuance of an Event of Default or (ii) if a Loan Party receives any notice or obtains knowledge of (A) any potential or known release of any Hazardous Materials at or from any Eligible Real Estate, notification of which must be given to any Governmental Authority under any Environmental Law, or notification of which has, in fact, been given to any Governmental Authority, or (B) any complaint, order, citation or notice with regard to air emissions, water discharges, or any other environmental health or safety matter affecting any Loan Party or any Eligible Real Estate from any Governmental Authority (including, without limitation, the Environmental Protection Agency). Environmental assessments may include detailed visual inspections of the Real Estate, including, without limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples, surface water samples and ground water samples, as well as such other investigations or analyses as are reasonably                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|   | necessary for a determination of the compliance of the Real Estate and the use and operation thereof with all applicable Environmental Laws. The Borrowers will, and will cause each of their Subsidiaries to, cooperate in all respects with the Administrative Agent and such third parties to enable such assessment and evaluation to be timely completed in a manner reasonably satisfactory to the Administrative Agent. |
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|   |                     (i) deliver to the Administrative Agent copies of notifications (each, a “Credit Card Notification”) substantially in the form attached hereto as Exhibit F which have been executed on behalf of such Loan Party and delivered to such Loan Party’s credit card clearinghouses and processors listed on Schedule 5.21(b); and |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                     (ii) enter into a Blocked Account Agreement satisfactory in form and substance to the Agents with each Blocked Account Bank (collectively, the “Blocked Accounts”).                                                                                                                                                                  |

|   |                     (i) all available cash receipts from the sale of Inventory and other assets;                                       |
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|   |                     (ii) all proceeds of collections of Accounts;                                                                      |
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|   |                     (iii) all Net Proceeds, and all other cash payments received by a Loan Party from any Person or from any source or |

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|   | on account of any sale or other transaction or event, including, without limitation, any Prepayment Event;                                                                                                                                                                                                                              |
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|   |                     (iv) the then contents of each DDA (net of any minimum balance, not to exceed $2,500.00, as may be required to be kept in the subject DDA by the depository institution at which such DDA is maintained);       |
|   |                                                                                                                                                                                                                                                                                                                                    |
|   |                     (v) the then entire ledger balance of each Blocked Account (net of any minimum balance, not to exceed $2,500.00, as may be required to be kept in the subject Blocked Account by the Blocked Account Bank); and |
|   |                                                                                                                                                                                                                                                                                                                                    |
|   |                     (vi) the proceeds of all credit card charges.                                                                                                                                                                   |

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|   |           (a) any Subsidiary which is not a Loan Party may merge with any one or more other Subsidiaries provided that (i) in any merger involving a Loan Party, the Loan Party shall be the continuing or surviving Person, and (ii) in any merger involving a wholly-owned Subsidiary, the continuing or surviving Person shall be wholly-owned Subsidiary;                                                                                                |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (b) any Loan Party may merge into any other Loan Party, provided that in any merger involving the Borrower, the Borrower shall be the continuing or surviving Person;                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (c) in connection with a Permitted Acquisition, any Subsidiary of a Loan Party may merge with or into or consolidate with any other Person or permit any other Person to merge with or into or consolidate with it; provided that (i) the Person surviving such merger shall be a wholly-owned Subsidiary of a Loan Party and (ii) in the case of any such merger to which any Loan Party is a party, such Loan Party is the surviving Person; and |
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|   |           (d) any CFC that is not a Loan Party may merge into any CFC that is not a Loan Party.                                                                                                                                                                                                                                                                                                                                                              |

|   |           (a) each Subsidiary of a Loan Party may make Restricted Payments to any Loan Party;                                                                                                        |
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|   |           (b) the Loan Parties and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person; |
|   |                                                                                                                                                                                                                                                   |
|   |           (c) if the Payment Conditions are satisfied, the Loan Parties and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it;                                 |

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|   |           (d) if the Payments Conditions are satisfied, the Lead Borrower may declare or pay cash dividends to its stockholders; and                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   |           (e) the Loan Parties may issue and sell Equity Interests provided that (i) (A) all dividends and other payments in respect thereof shall be paid in additional shares of such Equity Interests, in lieu of cash, (B) such Equity Interests shall not be subject to redemption other than redemption at the option of the Loan Party issuing such Equity Interests, and (C) all payments in respect of such Equity Interests shall be expressly subordinated to the Obligations, and (ii) no Loan Party shall issue any additional Equity Interests in a Subsidiary. |

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|   |           (a) Non-Payment. The Borrowers or any other Loan Party fails to pay when and as required to be paid herein, (i) any amount of principal of any Committed Loan or any L/C Obligation, or fails to deposit any funds as Cash Collateral in respect of L/C Obligations, or (ii) any interest on any Committed Loan or on any L/C Obligation, or any fee due hereunder, or (iii) any other amount payable hereunder or under any other Loan Document; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   |           (b) Specific Covenants. (i) Any Loan Party fails to perform or observe any term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03(a), (b), (c), (h) or (i), 6.05, 6.07, 6.10, 6.11, 6.12, 6.13 or 6.14 or Article VII; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |           (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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|   |           (d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of any Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith (including, without limitation, any Borrowing Base Certificate) shall be incorrect or misleading in any material respect when made or deemed made; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |           (e) Cross-Default. (i) Any Loan Party or any Subsidiary thereof (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Material Indebtedness (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement), or (B) fails to observe or perform any other agreement or condition relating to any such Material Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Material Indebtedness or the beneficiary or beneficiaries of any Guarantee thereof (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which a Loan Party or any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which a Loan Party or any Subsidiary thereof is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Loan Party or such Subsidiary as a result thereof is greater than $1,000,000; or |
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|   |           (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or a proceeding shall be commenced or a petition filed, without the application or consent of such Person, seeking or requesting the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer and the appointment continues undischarged, undismissed or unstayed for 60 calendar days or an order or decree approving or ordering any of the foregoing shall be entered; or any proceeding under any Debtor Relief Law relating to any such                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|   | Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any Subsidiary thereof becomes unable or admits in writing its inability or fails generally to pay its debts as they become due in the ordinary course of business, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issuance or levy; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (h) Judgments. There is entered against any Loan Party or any Subsidiary thereof (i) one or more judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $2,000,000 (to the extent not covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage), or (ii) any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, is not in effect; or                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $2,000,000 or which would reasonably likely result in a Material Adverse Effect, or (ii) a Loan Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $2,000,000 or which would reasonably likely result in a Material Adverse Effect; or                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (j) Invalidity of Loan Documents. (i) Any provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document or seeks to avoid, limit or otherwise adversely affect any Lien purported to be created under any Security Document; or (ii) any Lien purported to be created under any Security Document shall cease to be (except as permitted pursuant to the terms thereof or of this Agreement), or shall be asserted by any Loan Party or any other Person not to be, a valid and perfected Lien on any Collateral, with the priority required by the applicable Security Document; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (k) Change of Control. There occurs any Change of Control; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (l) Cessation of Business. Except as otherwise expressly permitted hereunder, any Loan Party shall take any action to suspend the operation of its business in the ordinary course (other than for the taking of a physical inventory in the ordinary course or at the request of the Agents), liquidate all or a material portion of its assets or Store locations, or employ an agent or other third party to conduct a program of closings, liquidations or “Going-Out-Of-Business” sales of any material portion of its business; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (m) Loss of Collateral. There occurs any uninsured loss to any material portion of the Collateral; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (n) Breach of Contractual Obligation. Any Loan Party or any Subsidiary thereof fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Material Contract or fails to observe or perform any other agreement or condition relating to any such Material Contract or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the counterparty to such Material Contract to terminate such Material Contract; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (o) Indictment. The indictment or institution of any legal process or proceeding against, any Loan Party or any Subsidiary thereof, under any federal, state, municipal, and other criminal statute, rule, regulation, order, or other requirement having the force of law for a felony;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (p) Guaranty. The termination or attempted termination of any Facility Guaranty except as expressly permitted hereunder or under any other Loan Document;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (q) Subordination. (i) The subordination provisions of the documents evidencing or governing any Subordinated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|   | Indebtedness (the “Subordinated Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of the applicable Subordinated Indebtedness; or (ii) any Borrower or any other Loan Party shall, directly or indirectly, disavow or contest in any manner (A) the effectiveness, validity or enforceability of any of the Subordination Provisions, (B) that the Subordination Provisions exist for the benefit of the Credit Parties, or (C) that all payments of principal of or premium and interest on the applicable Subordinated Indebtedness, or realized from the liquidation of any property of any Loan Party, shall be subject to any of the Subordination Provisions. |
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|   |           (a) declare the Commitments of each Lender to make Committed Loans 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;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (b) declare the unpaid principal amount of all outstanding Committed Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Loan Parties;                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (c) require that the Loan Parties Cash Collateralize the L/C Obligations; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           (d) whether or not the maturity of the Obligations shall have been accelerated pursuant hereto, proceed to protect, enforce and exercise all rights and remedies of the Credit Parties under this Agreement, any of the other Loan Documents or Law, including, but not limited to, by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant or agreement contained in this Agreement and the other Loan Documents or any instrument pursuant to which the Obligations are evidenced, and, if such amount shall have become due, by declaration or otherwise, proceed to enforce the payment thereof or any other legal or equitable right of the Credit Parties; |

|   |           First, to payment of that portion of the Obligations (excluding the Other Liabilities) constituting fees, indemnities, Credit Party Expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and the Collateral Agent and amounts payable under Article III) payable to the Administrative Agent and the Collateral Agent, each in its capacity as such;                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           Second, to payment of that portion of the Obligations (excluding the Other Liabilities) constituting indemnities, Credit Party Expenses, and other amounts (other than principal, interest and fees) payable to the Lenders and the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           Third, to the extent not previously reimbursed by the Lenders, to payment to the Lenders of that portion of the Obligations constituting principal and accrued and unpaid interest on any Permitted Overadvances, ratably among the Lenders in proportion to the amounts described in this clause Third payable to them;                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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|   |           Fourth, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Committed Loans L/C Borrowings and other Obligations, and fees (including Letter of Credit Fees), ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth payable to them; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Fifth, to payment of that portion of the Obligations constituting unpaid principal of the Committed Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fifth held by them;                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Sixth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit;                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Seventh, to payment of all other Obligations (including without limitation the cash collateralization of indemnification obligations as to which a claim has been made as provided in Section 10.04(g), but which is unliquidated as to amount, but excluding any Other Liabilities),                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | ratably among the Credit Parties in proportion to the respective amounts described in this clause Seventh held by them;                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Eighth, to payment of that portion of the Obligations arising from Cash Management Services to the extent secured under the Security Documents, ratably among the Credit Parties in proportion to the respective amounts described in this clause Eighth held by them;                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Ninth, to payment of all other Obligations arising from Bank Products to the extent secured under the Security Documents, ratably among the Credit Parties in proportion to the respective amounts described in this clause Ninth held by them; and                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Loan Parties or as otherwise required by Law.                                                                                                                                                                                             |

|   |           (a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative 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 Administrative Agent, the Lenders and the L/C Issuer, and no Loan Party or any Subsidiary thereof shall have rights as a third party beneficiary of any of such provisions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (b) Each of the Lenders (in its capacity as a Lender), and the L/C Issuer hereby irrevocably appoints Bank of America as Collateral Agent and authorizes the Collateral Agent to act as the agent of such Lender and the L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto. In this connection, the Collateral Agent, as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the Collateral Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Collateral Agent), shall be entitled to the benefits of all provisions of this Article IX and Article X (including Section 10.04(c)), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents, as if set forth in full herein with respect thereto. |

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|   |           (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           (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 Administrative Agent or the Collateral Agent, as applicable, 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 no Agent shall be required to take any action that, in its respective opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or 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 Loan Parties or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent, the Collateral Agent or any of its Affiliates in any capacity.                                                                                                                                                                                                                                                                                                     |

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|   |           (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Committed Loans, 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, the L/C Issuer, the Administrative Agent and the other Credit Parties (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer, the Administrative Agent, such Credit Parties and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer the Administrative Agent and such Credit Parties under Sections 2.03(i), 2.03(j), 2.09 and 10.04) allowed in such judicial proceeding; and |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |           (b) 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 and the L/C Issuer to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09 and 10.04.                                          |

|   |           (a) to release any Lien on any property granted to or held by the Collateral Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations for which no claim has been asserted) and the expiration or termination of all Letters of Credit, (ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) if approved, authorized or ratified in writing by the Applicable Lenders in accordance with Section 10.01; |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (b) to subordinate any Lien on any property granted to or held by the Collateral Agent under any Loan Document to the holder of any Lien on such property that is permitted by clause (h) of the definition of Permitted Encumbrances; and                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |           (c) to release any Guarantor from its obligations under the Facility Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   |           (a) agrees to furnish the Administrative Agent after the occurrence and during the continuance of a Cash Dominion Event (and thereafter at such frequency as the Administrative Agent may reasonably request) with a summary of all Other Liabilities due or to become due to such Lender. In connection with any distributions to be made hereunder, the Administrative Agent shall be entitled to assume that no amounts are due to any Lender on account of Other Liabilities unless the Administrative Agent has received written notice thereof from such Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (b) is deemed to have requested that the Administrative Agent furnish such Lender, promptly after they become available, copies of all financial statements required to be delivered by the Lead Borrower hereunder and all commercial finance examinations and appraisals of the Collateral received by the Agents (collectively, the “Reports”);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (c) expressly agrees and acknowledges that the Administrative Agent makes no representation or warranty as to the accuracy of the Reports, and shall not be liable for any information contained in any Report;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (d) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agents or any other party performing any audit or examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (e) agrees to keep all Reports confidential in accordance with the provisions of Section 10.07 hereof; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           (f) without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold the Agents and any such other Lender preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any Credit Extensions that the indemnifying Lender has made or may make to the Borrowers, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Committed Loan or Committed Loans; and (ii) to pay and protect, and indemnify, defend, and hold the Agents and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including attorney costs) incurred by the Agents and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. |

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|   |           (a) If for any reason any Lender shall fail or refuse to abide by its obligations under this Agreement, including without limitation its obligation to make available to Administrative Agent its Applicable Percentage of any Committed Loans, expenses or setoff or purchase its Applicable Percentage of a participation interest in the L/C Borrowings and such failure is not cured within two (2) days of receipt from the Administrative Agent of written notice thereof, then, in addition to the rights and remedies that may be available to the other Credit Parties, the Loan Parties or any other party at law or in equity, and not at limitation thereof, (i) such Defaulting Lender’s right to participate in the administration of, or decision-making rights related to, the Obligations, this Agreement or the other Loan Documents shall be suspended during the pendency of such failure or refusal, and (ii) a Defaulting Lender shall be deemed to have assigned any and all payments due to it from the Loan Parties, whether on account of outstanding Committed Loans, interest, fees or otherwise, to the remaining non-Defaulting Lenders for application to, and reduction of, their proportionate shares of all outstanding Obligations until, as a result of application of such assigned payments the Lenders’ respective Applicable Percentages of all outstanding Obligations shall have returned to those in effect immediately prior to such delinquency and without giving effect to the nonpayment causing such delinquency, and (iii) at the option of the Administrative Agent, any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent as cash collateral for future funding obligations of the Defaulting Lender in respect of any Committed Loan or existing or future participating interest in any Letter of Credit. The Defaulting Lender’s decision-making and participation rights and rights to payments as set forth in clauses (i) and (ii) hereinabove shall be restored only upon the payment by the Defaulting Lender of its Applicable Percentage of any Obligations, any participation obligation, or expenses as to which it is delinquent, together with interest thereon at the rate set forth in Section 2.14(b) hereof from the date when originally due until the date upon which any such amounts are actually paid. |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (b) The non-Defaulting Lenders shall also have the right, but not the obligation, in their respective, sole and absolute discretion, to cause the termination and assignment, without any further action by the Defaulting Lender for no cash consideration (prorata, based on the respective Commitments of those Lenders electing to exercise such right), of the Defaulting Lender’s Commitment to fund future Committed Loans. Upon any such purchase of the Applicable Percentage of any Defaulting Lender, the Defaulting Lender’s share in future Credit Extensions and its rights under the Loan Documents with respect thereto shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest, including, if so requested, an Assignment and Acceptance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (c) Each Defaulting Lender shall indemnify the Administrative Agent and each non-Defaulting Lender from and against any and all loss, damage or expenses, including but not limited to reasonable attorneys’ fees and funds advanced by the Administrative Agent or by any non-Defaulting Lender, on account of a Defaulting Lender’s failure to timely fund its Applicable Percentage of a Committed Loan or to otherwise perform its obligations under the Loan Documents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|   |           (a) extend or, increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written Consent of such Lender;                                                                                                                                                                                                                                                                                                                                                    |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           (b) postpone any date fixed by this Agreement or any other Loan Document for (i) any payment or mandatory prepayment of principal, interest, fees or other amounts due to the applicable Lenders (or any of them) hereunder or under any of the other Loan Documents without the written Consent of each Lender entitled to such payment, or (ii) any scheduled or mandatory reduction of the Aggregate Commitments hereunder or under any other Loan Document without the written Consent of each applicable Lender; |

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|   |           (c) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document, without the written Consent of each Lender entitled to such amount; provided, however, that only the Consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrowers to pay interest or Letter of Credit Fees at the Default Rate;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (d) change Section 2.13 or Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written Consent of each Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (e) 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;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (f) except as expressly permitted hereunder or under any other Loan Document, release, or limit the liability of, any Loan Party without the written Consent of each Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (g) except for Permitted Dispositions, release all or substantially all of the Collateral from the Liens of the Security Documents without the written Consent of each Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (h) increase the Aggregate Commitments without the written Consent of each Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (i) increase any advance rates set forth in the term “Borrowing Base” without the written Consent of each Lender, or otherwise change the definition of the term “Borrowing Base” or any component definition thereof if as a result thereof the amounts available to be borrowed by the Borrowers would be increased without the written Consent of the Required Supermajority Lenders, provided that the foregoing shall not limit the discretion of the Administrative Agent to change, establish or eliminate any Reserves;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (j) modify the definition of Permitted Overadvance so as to increase the amount thereof or, except as provided in such definition, the time period for a Permitted Overadvance without the written Consent of each Lender; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (k) except as expressly permitted herein or in any other Loan Document, subordinate the Obligations hereunder or the Liens granted hereunder or under the other Loan Documents, to any other Indebtedness or Lien, as the case may be without the written Consent of each Lender; and, providedfurther, 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 Issuer Document 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 Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; (iii) no amendment, waiver or Consent shall, unless in writing and signed by the Collateral Agent in addition to the Lenders required above, affect the rights or duties of the Collateral Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or Consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. |

|   |           (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | shall be made to the applicable telephone number, as follows:                                                                                                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                              |
|   |                     (i) if to the Loan Parties, the Agents or the L/C Issuer, to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and |
|   |                                                                                                                                                                                                                                                                                                              |
|   |                     (ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire.                                |

|   |           (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 Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Lead 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |           (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 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 Agents or any of their Related Parties (collectively, the “Agent Parties”) have any liability to any Loan Party, 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 Loan Parties’ or the Administrative 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 any Loan Party, 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 Loan Parties, the Agents and the L/C Issuer may change its mailing or electronic mail address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its mailing or electronic mail address, telecopier or telephone number for notices and other communications hereunder by notice to the Lead Borrower, the Agents and the L/C Issuer. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative 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 Agents, L/C Issuer and Lenders. The Agents, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices) purportedly given by or on behalf of the Loan Parties even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   | form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Loan Parties shall indemnify the Agents, the L/C Issuer, each Lender and the Related Parties of each of them 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 Loan Parties. All telephonic notices to and other telephonic communications with the Agents may be recorded by the Agents, and each of the parties hereto hereby consents to such recording. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |           (a) Costs and Expenses. The Borrowers shall pay all Credit Party Expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           (b) Indemnification by the Loan Parties. The Loan Parties shall indemnify the Agents (and any sub-agent thereof), each other Credit Party, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless (on an after tax basis) from, any and all losses, claims, causes of action, damages, liabilities, settlement payments, costs, and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by any Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Agents (and any sub-agents thereof) and their Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Committed Loan or Letter of Credit or the use or proposed 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 owned or operated by any Loan Party or any of its Subsidiaries, or any Environmental Liability related in any way to any Loan Party or any of its Subsidiaries, (iv) any claims of, or amounts paid by any Credit Party to, a Blocked |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Account Bank or other Person which has entered into a control agreement with any Credit Party hereunder, or (v) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Borrower or any other Loan Party or any of the Loan Parties’ directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           (c) Reimbursement by Lenders. Without limiting their obligations under Section 9.14 hereof, to the extent that the Loan Parties for any reason fail to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it, each Lender severally agrees to pay to the Agents (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable 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 Agents (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 Agents (or any such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.12(d).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by Law, the Loan Parties shall not assert, and hereby waive, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|   | Committed 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 to such unintended recipients by such Indemnitee 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 other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (e) Payments. All amounts due under this Section shall be payable on demand therefor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (f) Survival. The agreements in this Section shall survive the resignation of any Agent and the L/C Issuer, the assignment of any Commitment or Committed Loan by any Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.                                                                                                                                                                                                                                                                                       |

|   |                               (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Committed Loans 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, no minimum amount need be assigned; and                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                               (B) in any case not described in subsection (b)(i)(A)of this Section, the aggregate amount of the Commitment (which for this purpose includes Committed Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Committed Loans 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 Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the |

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|   | Administrative Agent and, so long as no Default has occurred and is continuing, the Lead Borrower otherwise consents (each such consent not to 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) Proportionate Amounts. 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 Committed Loans or the Commitment assigned;                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (iii) Required Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                               (A) the consent of the Lead Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) a Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; and                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                               (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of any Commitment if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                     (iv) Assignment and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500, provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. |

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|   |           (a) the Borrowers or such assignee shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);                                                                                                                                                                                                                                                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (b) such Lender shall have received payment of an amount equal to the outstanding principal of its Committed Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts); |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (c) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           (d) such assignment does not conflict with Laws.                                                                                                                                                                                                                                                                                                                                                                                                           |

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|   |           (a) Each Credit Party executing this Agreement agrees that neither it nor its Affiliates will in the future issue any press releases or other public disclosure using the name of Administrative Agent or its Affiliates or referring to this Agreement or the other Loan Documents without at least two (2) Business Days’ prior notice to Administrative Agent and without the prior written consent of Administrative Agent unless (and only to the extent that) such Credit Party or Affiliate is required to do so under Law and then, in any event, such Credit Party or Affiliate will consult with Administrative Agent before issuing such press release or other public disclosure.                                                                                                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |           (b) At any time after the Loan Parties shall have complied with the reporting requirements of the Securities Exchange Act of 1934 and all applicable regulations promulgated thereunder with respect to the financing transactions contemplated by this Agreement (including reporting requirements relating to any amendment to this Agreement or any other Loan Document), the Administrative Agent or any Lender shall be permitted to publish advertising material relating to the financing transactions contemplated by this Agreement using any Loan Party’s name, product photographs, logo or trademark, provided that, except with respect to advertising material consisting of a tombstone or league table measurement, reasonably in advance of the publication of such advertising material, the Administrative Agent or such Lender shall provide a draft thereof to the Lead |

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|   | Borrower for review and comment. Neither the Administrative Agent nor any Lender shall distribute any material non-public information relating to the Loan Parties without the prior consent of the Lead Borrower, which consent may be withheld by the Lead Borrower in its sole and absolute discretion. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | BORROWERS:                                          |
|--------|-----------------------------------------------------|
|   |                                                |
|   | SYMS CORP                                           |
|   |                                                |
|   | By:                                            | /s/ Philip A. Piscopo |
|   |                                                |
|   | Name: Philip A. Piscopo                             |
|   |                                                |
|   | Title: Vice President & Chief Financial Officer |
|   |                                                |
|   | SYL, LLC                                            |
|   | By: Syms Corp, sole member                          |
|   |                                                |
|   | By:                                                 | /s/ Philip A. Piscopo |
|   |                                                |
|   | Name: Philip A. Piscopo                             |
|   |                                                |
|   | Title: Vice President & Chief Financial Officer |

|   | BANK OF AMERICA, N.A., as Administrative Agent and as Collateral Agent |
|--------|------------------------------------------------------------------------|
|   |                                                                   |
|   | By:                                                               | /s/ Andrew Cerussi |
|   |                                                                   |
|   | Name: Andrew Cerussi                                                   |
|   |                                                                   |
|   | Title: Senior Vice President - Director                                |

|   | BANK OF AMERICA, N.A., as a Lender andas L/C Issuer |
|--------|-----------------------------------------------------|
|   |                                                |
|   | By:                                            | /s/ Andrew Cerussi |
|   |                                                |
|   | Name: Andrew Cerussi                                |
|   |                                                |
|   | Title: Senior Vice President - Director             |

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| Lender                | Commitment  | Applicable Percentage |
|-----------------------|-------------|-----------------------|
| Bank of America, N.A. | $75,000,000 | 100%                  |

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| Name                  | State ofOrganization | Type of Entity            | Organizational ID Number | FederalEmployer IDNumber |
|-----------------------|----------------------|---------------------------|--------------------------|--------------------------|
| Syms Corp             | New Jersey           | corporation               | 0100199752               | 22-2465228               |
| SYL, LLC              | Delaware             | limited liability company | 2109715                  | 51-0298277               |
| Syms Advertising Inc. | Delaware             | corporation               | 2011470                  | N/A – inactive     |

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| ACORDTM CERTIFICATE OF LIABILITY INSURANCE                                                                                                                                             | DATE (MM/DD/YYYY)8/27/2009                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PRODUCER     Phone: 516-358-3500     Fax: 516-358-3540City Underwriting Agency Inc.2001 Marcus AvenueSuite W180Lake Success NY 11042 | THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. |
|  INSURERS AFFORDING COVERAGE                                                                                                                                                      |  NAIC #                                                                                                                                                                                                |
| INSUREDSYMS Corpand ALL SubsidiariesOne Syms WaySecaucus NJ 07094                                                                                                                      | Insurer A: Liberty Mutual Fire Insurance                                                                                                                                                                    | 23035 |
| Insurer B: Liberty Mutual Ins                                                                                                                                                          |                                                                                                                                                                                                        |
| Insurer C:                                                                                                                                                                             |                                                                                                                                                                                                        |
| Insurer D:                                                                                                                                                                             |                                                                                                                                                                                                        |
| Insurer E;                                                                                                                                                                             |                                                                                                                                                                                                        |
| THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| INSRLTR                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ADD'LINSRD | TYPE OF INSURANCE | POLICY NUMBER | POLICY EFFECTIVE DATE (MM/DD/YY) | POLICY EXPIRATION DATE (MM/DD/YY) | LIMITS |
| A                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | GENERAL LIABILITY | TB2631509778038 | 11/15/2008 | 11/15/2009 | EACH OCCURRENCE | $[***] |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | COMMERCIAL GENERAL LIABILITY | DAMAGE TO RENTED PREMISES (Ea occurrence) | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | CLAIMS MADE | X | OCCUR | MED EXP (Any one person) | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | PERSONAL & ADV INJURY | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | GENERAL AGGREGATE | $[***] |
| GEN'L AGGREGATE LIMIT APPLIES PER:                                                                                                                                                                                                                                                                                                                                                                                                                                          | PRODUCTS-COMP/OP AGG | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | POLICY |   | PROJECT |   | LOC |   |   |
| A                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | AUTOMOBILE LIABILITY | AS2631509778028 | 11/15/2008 | 11/15/2009 | COMBINED SINGLE LIMIT(Ea accident) | $[***] |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | ANY AUTO |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ALL OWNED AUTOS | BODILY INJURY(Per person) | $ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | SCHEDULED AUTOS |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | HIRED AUTOS | BODILY INJURY(Per accident) | $ |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | NON-OWNED AUTOS |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | PHY. DAM COV. | PROPERTY DAMAGE(Per accident) | $ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | DED: $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | GARAGE LIABILITY |   |   |   | AUTO ONLY-EA ACCIDENT | $ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ANY AUTO | OTHER THANAUTO ONLY: | EA ACC | $ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | AGG | $ |
| B                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | EXCESS/UMBRELLA LIABILITY | TH2661065717018 | 11/15/2008 | 11/15/2008 | EACH OCCURRENCE | $[***] |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | OCCUR |   | CLAIMS MADE | AGGREGATE | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | DEDUCTIBLE |   | $ |
| X                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | RETENTION | $[***] |   | $ |
| A                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | WORKERS COMPENSATION ANDEMPLOYERS' LIABILITYANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED:If yes, described underSPECIAL PROVISIONS below | WA763D509778018 | 11/15/2008 | 11/15/2008 | X | WC STATU-TORY LIMITS | OTHER |   |
| E.L. EACH ACCIDENT                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $[***] |
| E.L. DISEASE-EA EMPLOYEE                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $[***] |
| E.L. DISEASE-POLICY LIMIT                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $[***] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | OTHER    |   |   |   |   |   |
| DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONSCertificate Holder is included as additional insured as their interest may appear.                                                                                                                                                                                                                                                               |
| CERTIFICATE HOLDER                                                                                                                                                                                                                                                                                                                                                                                                                                                          | CANCELLATION |
|  Bank of America, N.A., as Collateral Agent100 Federal Street, 9th FloorBoston MA 02110                                                                                                                                                                                                                                                                                                                                                                                | SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. |
| AUTHORIZED REPRESENTATIVE/s/                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ACORD 25 (2001/08)                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ©ACORD CORPORATION 1988 |

----

|   |    IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.   |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| ACORDTM EVIDENCE OF COMMERCIAL PROPERTY INSURANCE                                                                                                                                                                                                                                                                                                                                                             | DATE (MM/DD/YYYY)8/27/2009                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.                                                                                                                                                                                                                                                        |
| PRODUCER NAME, CONTACTPERSON AND ADDRESS                                                                                                                                                                                                                                                                                                                                                                      | PHONE (A/C, No, Ext): 617 437-6900                                                 | COMPANY NAME AND ADDRESS | NAIC NO:  10014 |
| FAX (A/C, No):            617 351-7430                                                                                                                                                                                                                                                                                                            | Affiliated FM Insurance Company225 Wyman StreetP.O. Box 9198Waltham, MA 02454-9198 |
| E-MAIL ADDRESS:                                                                                                                                                                                                                                                                                                                                                                                               |
| Willis of Massachusetts, Inc.Three Copley Place, Suite 300100 Huntington AvenueBoston, MA 02116-6501                                                                                                                                                                                                                                                                                                          |
| CODE:                                                                                                                                                                                                                                                                                                                                                                                                         | SUB CODE:                                                                          |
| AGENCYCUSTOMER ID #: 4108                                                                                                                                                                                                                                                                                                                                                                                | IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH                             |
| NAMED INSURED AND ADDRESSSyms Corp and all its SubsidiariesOne Syms WaySecaucus, NJ 07094                                                                                                                                                                                                                                                                                                                     | LOAN NUMBER                                                                        | POLICY NUMBER  AM269 |
| EFFECTIVE DATE  06/01/2009                                                                                                                                                                                                                                                                                                                                                                          | EXPIRATION DATE  06/01/2010                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                          | CONTINUED UNTILTERMINATED IF CHECKED                                               |
| ADDITIONAL NAMED INSURED(S)                                                                                                                                                                                                                                                                                                                                                                              | THIS REPLACES PRIOR EVIDENCE DATED:                                           |
| PROPERTY INFORMATION (Use additional sheets if more space is required)                                                                                                                                                                                                                                                                                                                                        |
| LOCATION/DESCRIPTIONall locations of the insured                                                                                                                                                                                                                                                                                                                                                         |
| COVERAGE INFORMATION                        CAUSE OF LOSS FORM                                                                                                                                                                                                                        |                                                                               | BASIC |   | BROAD | X | SPECIAL |   | OTHER |
| COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE:  $[***]DED:  $[***]                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                          | YES                                                                                | NO |   |
| BUSINESS INCOME / RENTAL VALUE                                                                                                                                                                                                                                                                                                                                                                                | X                                                                                  |   | If YES,     LIMIT: Included | X | Actual Loss Sustained    # of months: |
| BLANKET COVERAGE  [***]                                                                                                                                                                                                                                                                                                                                                                             | X                                                                                  |   | If YES, indicate amount of insurance on properties identified above: $ |
| TERRORISM COVERAGE                                                                                                                                                                                                                                                                                                                                                                                            | X                                                                                  |   | Attach signed Disclosure Notice / DEC |
| IS COVERAGE PROVIDED FOR "CERTIFIED ACTS" ONLY?                                                                                                                                                                                                                                                                                                                                                               |                                                                               | X | If YES,     SUB LIMIT:                       DED: |
| IS COVERAGE A STAND ALONE POLICY?                                                                                                                                                                                                                                                                                                                                                                             |                                                                               | X | If YES,     LIMIT:                              DED: |
| DOES COVERAGE INCLUDE DOMESTIC TERRORISM?                                                                                                                                                                                                                                                                                                                                                                     | X                                                                                  |   | If YES,     SUB LIMIT:    [***]          DED:[***] |
| COVERAGE FOR MOLD                                                                                                                                                                                                                                                                                                                                                                                             | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
| MOLD EXCLUSION (If "YES", specify organization's form used)                                                                                                                                                                                                                                                                                                                                                   |                                                                               | X |   |
| REPLACEMENT COST                                                                                                                                                                                                                                                                                                                                                                                              | X                                                                                  |   |   |
| AGREED AMOUNT                                                                                                                                                                                                                                                                                                                                                                                                 | X                                                                                  |   |   |
| COINSURANCE                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                               | X | If YES,                      % |
| EQUIPMENT BREAKDOWN (If Applicable)                                                                                                                                                                                                                                                                                                                                                                           | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
| LAW AND ORDINANCE  - Coverage for loss to undamaged portion of building                                                                                                                                                                                                                                                                                                                                  | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
|   - Demolition Costs                                                                                                                                                                                                                                                                                                                                                                                | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
|   - Incr. Cost of Construction                                                                                                                                                                                                                                                                                                                                                                      | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
| EARTHQUAKE (If Applicable)                                                                                                                                                                                                                                                                                                                                                                                    | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
| FLOOD (If Applicable)                                                                                                                                                                                                                                                                                                                                                                                         | X                                                                                  |   | If YES,     LIMIT:            [***]          DED:     [***] |
| WIND / HAIL (If Separate Policy)                                                                                                                                                                                                                                                                                                                                                                              |                                                                               |   | If YES,     LIMIT:                               DED: |
| PERMISSION TO WAIVE SUBROGATION PRIOR TO LOSS                                                                                                                                                                                                                                                                                                                                                                 | X                                                                                  |   |   |
| REMARKS - Including Special Conditions (Use additional sheets if more space is required)                                                                                                                                                                                                                                                                                                                      |
| Bank of America N.A. as Administrative Agent and Collateral Agent as Loss Payee                                                                                                                                                                                                                                                                                                                |
| CANCELLATION                                                                                                                                                                                                                                                                                                                                                                                                  |
| THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW    30    DAYS WRITTEN NOTICE, AND WILL SENT NOTIFICATION OF ANY CHANGES TO THE POLICYTHAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. |
| ADDITIONAL INTEREST                                                                                                                                                                                                                                                                                                                                                                                           |
| NAME AND ADDRESSBank of America, N.A.,as Collateral Agent100 Federal Street, 9th FloorBoston, MA 02110                                                                                                                                                                                                                                                                                         | LENDER SERVICING AGENT NAME AND ADDRESS                                       |
| X                                                                                                                                                                                                                                                                                                                                                                                                             | MORTGAGEE                                                                          | X | LENDER LOSS PAYEE | AUTHORIZED REPRESENTATIVE |
| X                                                                                                                                                                                                                                                                                                                                                                                                             | LOSS PAYEE                                                                         |   |   | /s/ |

|  ACORD 28 (2003/10)  1 of 1 |   |  211 |   | LJD        ©ACORD CORPORATION 2003 |
|--------------------------------------------|--------|-----------|--------|----------------------------------------------------------------------------|

----

----

| NAMED INSURED:  |   | Syms Corporation and to the extent you are required by contract to provide insurance, your affiliated, subsidiary associated companies or corporations and your interest in partnerships and joint ventures as now exist or may hereafter be constituted or acquired.                                                                                                                                                                |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| ADDRESS:        |   | 1 Syms WaySecaucus, NJ 07094                                                                                                                                                                                                                                                                                                                                                                                                         |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| EFFECTIVE DATE: |   | June 1, 2009 – June 1, 2010                                                                                                                                                                                                                                                                                                                                                                                                    |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| PERILS INSURED: |   | "All Risks" of Direct Physical Loss, Including Flood, Earthquake and Boiler & Machinery                                                                                                                                                                                                                                                                                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| INTEREST:       |   | Real & Personal Property                                                                                                                                                                                                                                                                                                                                                                                                         |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| TIV:            |   | $[***] (Syms) + $[***] (Filene's Basement acquisition)                                                                                                                                                                                                                                                                                                                                                                               |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| TERRITORY:      |   | United States of America and Puerto Rico                                                                                                                                                                                                                                                                                                                                                                                             |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| VALUATION:      |   | Property Damage – Replacement CostTime Element – Actual Loss Sustained                                                                                                                                                                                                                                                                                                                                                   |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| PERILS INSURED: |   | All Risk of direct and physical loss or damage, including Certified and Non Certified Terrorism on Real and Personal Property, EDP Equipment and Media, Rental Value, Valuable Papers & Records, Accounts Receivable, Business Interruption including Ordinary Payroll, Extra Expense, Consequential, Boiler and Machinery and Property in Transit, and as more fully defined in policy form and subject to the sublimits below: |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| LIMITS:         |   | $[***] Per Occurrence                                                                                                                                                                                                                                                                                                                                                                                                                |

| SUBLIMITS:                                                                    |   |
|-------------------------------------------------------------------------------|--------|
| Earth Movement, except;                                                       | [***]  |
| Unnamed Locations                                                             | [***]  |
| Flood, except;                                                                | [***]  |
| Unnamed Locations                                                             | [***]  |
| Boiler & Machinery, except;                                               | [***]  |
| Expediting Expense                                                            | [***]  |
| Hazardous Substance                                                           | [***]  |
| Perishable Goods                                                              | [***]  |
| Data Restoration                                                              | [***]  |
| Extra Expense                                                                 | [***]  |
| Off Premises Power Coverage — Telephone and Telecommunications Coverage | [***]  |
| Fire Fighting Materials and Expenses                                          | [***]  |
| Professional Fees                                                             | [***]  |
| Expediting Expenses                                                           | [***]  |
| Trees, Shrubs, Plants and Lawns not to exceed $1,000 per item                 | [***]  |
| Pavements and Roadways                                                        | [***]  |

----

----

| SUBLIMITS (CONT'D):                                                              |   |
|----------------------------------------------------------------------------------|--------|
| Land and Water Clean Up Expense                                                  | [***]  |
| Installation Floater                                                             | [***]  |
| Newly Acquired Property                                                          | [***]  |
| Unnamed Locations Coverage                                                       | [***]  |
| Fine Arts                                                                        | [***]  |
| Accounts Receivable                                                              | [***]  |
| Valuable Papers and Records                                                      | [***]  |
| Electronic Data Processing, Data and Media                                       | [***]  |
| Demolition and Increased Cost of Construction, Undamaged Portion (A)             | [***]  |
| Demolition and Increased Cost of Construction, Demolition/Compliance with Law/BI | [***]  |
| Errors and Omissions                                                             | [***]  |
| Transit                                                                          | [***]  |
| Fungus Mold or Mildew                                                            | [***]  |
| Deferred Payment                                                                 | [***]  |
| Off-Premises Service Interruption — Property Damage                        | [***]  |
| Arson and Theft Reward                                                           | [***]  |
| Money and Securities                                                             | [***]  |
| Locks and Keys                                                                   | [***]  |
| Tenant Legal Liability and Expense                                               | [***]  |
| Soft Costs                                                                       | [***]  |
| Contingent Business Interruption                                                 | [***]  |
| Research and Development Expense                                                 | [***]  |
| Ingress/Egress                                                                   | [***]  |
| Tax Treatment                                                                    | [***]  |
| Days of Civil Authority                                                          | [***]  |
| Extended Period of Indemnity                                                     | [***]  |
|                                                                             |   |
| DEDUCTIBLES:                                                                     |   |
| Property Damage and Time Element, including B&M, except                      | [***]  |
|                                                                             |   |
| Earth Movement                                                                   | [***]  |
|                                                                             |   |
| Flood                                                                            | [***]  |

| Wind & Hail, Tier 1 and 2 Counties |   | [***] TIV (PD & TE) at each location involved in loss or damage, subject to a $[***] minimum |
|----------------------------------------|--------|--------------------------------------------------------------------------------------------------|

| CANCELLATION:      |   | 90 Days NOC and Non-Renewal, except 10 days for non-payment of premium |
|--------------------|--------|------------------------------------------------------------------------|
|  POLICY FORM: |   |  Affiliated FM PRO 3100                                           |

----

| Subsidiary Name       | State of Organization | Equity Interests                                                                                                                            |
|-----------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| SYL, LLC              | Delaware              | Syms Corp is the sole member                                                                                                                |
| Syms Advertising Inc. | Delaware              | unknown # of shares of authorized common stock, all of which are issued and outstanding and owned beneficially & of record by Syms Corp |

----

----

| Name of Grantor       | Type of Account                    | Account Number | Name & Address                                                                 |
|-----------------------|------------------------------------|----------------|------------------------------------------------------------------------------------|
| Financial Institution |
| Syms Corp.            | Secaucus                           | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Hazelton                           | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Payroll                            | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Settlement                         | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Operating                          | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Disbursement                       | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Investment                         | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Stanley Blacker                    | [***]          | Commerce Bank, N.A.1701 Route 10 EastCherry Hill, NJ 08034-5400                    |
| Syms Corp.            | Letter of Credit                   | [***]          | IDB BankCallip RoadWest Paterson, NJ 07424                                         |
| Syms Corp.            | Local Cash - Secaucus              | [***]          | JPMorgan Chase Bank, N.A.Northeast MarketP.O. Box 260180Baton Rouge, LA 70826-0180 |
| Syms Corp.            | Local Cash – West Palm Beach | [***]          | WachoviaNC8502P.O. Box 563966Charlotte, NC 28256-3966                              |

----

| Name of Grantor       | Type of Account | Account Number | Name & Address |
|-----------------------|-----------------|----------------|--------------------|
| Financial Institution |

| Syms Corp. | Local Cash – Woodbridge | [***] | TD Bank1701 Route 70 EastCherry Hill, NJ 08034-5400                                                                            |
|------------|-------------------------------|-------|--------------------------------------------------------------------------------------------------------------------------------|
| Syms Corp. | Local Cash – Miami      | [***] | TotalbankP.O. Box 450678Miami, FL 33245-0678                                                                                   |
| Syms Corp. | Southfield (Detroit)          | [***] | Comerica BankP.O. Box 75000Detroit, MI 48275-8259                                                                              |
| Syms Corp. | Local Cash – Niles      | [***] | Glennview State Bank800 Waukegan RoadGlennview, IL 60025                                                                       |
| Syms Corp. | Local Cash – Atlanta    | [***] | WachoviaNC8502P.O. Box 563966Charlotte, NC 28256-3966                                                                          |
| Syms Corp. | Local Cash – Plano      | [***] | Comerica BankP.O. Box 650282Dallas, TX 75265-0282                                                                              |
| Syms Corp. | Houston                       | [***] | Wells FargoP.O. Box 63020San Francisco, CA 94163                                                                               |
| Syms Corp. | Local Cash – Tampa      | [***] | Bank of AmericaP.O. Box 25118Tampa, FL 33622-5118                                                                              |
| Syms Corp. | Commack                       | [***] | JPMorgan Chase Bank, N.A.Northeast MarketP.O. Box 260180Baton Rouge, LA 70826-0180 39 Vanderbilt ParkwayCommack, NY 11746 |
| Syms Corp. | Local Cash – Fairfield  | [***] | People's United BankP.O. Box 1580Brid. CT                                                                                      |
| Syms Corp. | Local                         | [***] | WebsterBankP.O. Box 191Waterbury, CT 06720-0191                                                                                |
| Syms Corp. | Local Cash - Hurst            | [***] | JPMorgan Chase Bank, N.A.Texas MarketP.O. Box 260180Baton Rouge, LA 70826-0180                                                 |

----

| Name of Grantor       | Type of Account | Account Number | Name & Address |
|-----------------------|-----------------|----------------|--------------------|
| Financial Institution |

| Syms Corp.                   | Local – Troy         | [***] | Bank of AmericaP.O. Box 25118Tampa, FL 33622-5118                                  |
|------------------------------|----------------------------|-------|------------------------------------------------------------------------------------|
| Syms Corp.                   | Local Cash – Addison | [***] | Bank of AmericaP.O. 25118Tampa, FL 33622-5118                                      |
| Syms Corp.                   | Local Cash - Westbury      | [***] | JPMorgan Chase Bank, N.A.Northeast MarketP.O. Box 260180Baton Rouge, LA 70826-0180 |
| Syms Corp.                   | Local Cash - Paramus       | [***] | Bank of AmericaP.O. Box 25118Tampa, FL 33622-5118                                  |
| Syms Corp.                   | Local Cash –Norwood  | [***] | Bank of AmericaP.O. Box 25118Tampa, FL 33622-5118                                  |
| Syms Corp.                   | Local Cash                 | [***] | TD Banknorth N.A.P.O. Box 1377Lewiston, ME 04243-1377                              |
| SYL. LLC (Filene's Basement) | DC-Conn Ave                | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLC (Filene's Basement) | DC-Wisconsin Ave           | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLC (Filene's Basement) | NY, NY Broadway            | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLC (Filene's Basement) | NY, Manhasset              | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLCBasement)            | NY Flushing                | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLC (Filene's Basement) | NY, NY Union Sq.           | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |
| SYL. LLC (Filene's Basement) | NY, NY                     | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308                         |

----

| Name of Grantor       | Type of Account | Account Number | Name & Address |
|-----------------------|-----------------|----------------|--------------------|
| Financial Institution |

| SYL. LLC (Filene's Basement) | Atlanta, GA                                                      | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308 |
|------------------------------|------------------------------------------------------------------|-------|------------------------------------------------------------|
| SYL. LLC (Filene's Basement) | Aventura, FL                                                     | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308 |
| SYL. LLC (Filene's Basement) | Chicago, IL – N. State St. and N. Michigan                 | [***] | 135 South LaSalle St.Chicago, IL 60603                     |
| SYL. LLC (Filene's Basement) | DC – 14th St.                                              | [***] | Bank of America600 Peachtree NE 9th FloorAtlanta, GA 30308 |
| SYL. LLC (Filene's Basement) | MA – Watertown, Peabody, Newton, Boston, Braintree, Saugus | [***] | CitizensExchange Place, 53 State St. BldgBoston, MA 02109  |
| SYL. LLC (Filene's Basement) | MD, Rockville,NJ, Paramus,MD, Baltimore                          | [***] | M&T25 S. Charles St.Baltimore, MD 21201                |
| SYL. LLC (Filene's Basement) | OH, Warrensville,Hts., Columbus                                  | [***] | National City155 East Broad St.Columbus, OH 43215          |

----

|   | First Data Merchant Services Corporation1307 Walt Whitman RoadMelville, New York 11747Attention: Jan Hamiltonemail: Jan.Hamilton@firstdata.com |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                           |
|   | GE Money Sales Finance950 Forrer BoulevardKettering, Ohio 45420Michael Rojas937-534-975                                                        |

|   | BA Merchant Services1231 Durrett LaneLouisville, Kentucky 40213-2008renee.stelter@bankofamerica.com       |
|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |
|   | Discover Network2500 Lake Cook RdRiverwoods, Illinois 60015amyschneider@discover.com                      |
|   |                                                                                                      |
|   | American Express CompanyWorld Financial Center200 Vesey StNew York, New York 10285wendy.s.radtke@aexp.com |

----

----

----

| Schedule 6.02                                                               |   |
|-----------------------------------------------------------------------------|--------|
|                                                                        |   |
| Financial and Collateral Reporting                                          |   |
|                                                                        |   |
| A. On the 10th day of each Fiscal Month1                                    |   |
| 1. Borrowing Base Certificate                                               |   |
| 2. Summary source document of Stock Ledger                                  |   |
| 3. Summary document of the following:                                       |   |
| (i) On hand, not detail received                                            |   |
| (ii) Pack & hold                                                        |   |
| (iii) Un-entered inventory                                                  |   |
| (iv) In yard                                                                |   |
| (v) Trailers in-transit                                                     |   |
| (vi) Cross dock merchandise in process                                      |   |
| 4. Summary source document showing L/C Inventory                            |   |
| 5. Summary source document showing Credit Card A/R                          |   |
| 6. Summary report of cash balances included on Borrowing Base Certificate   |   |
| 7. Gift card/merchandise credit liability report                            |   |
| 8. Monthly store rent in WA, VA, PA                                         |   |
| 9. Texas ad valorem tax liability                                           |   |
|                                                                        |   |
| B. Within 30 days after the end of each Fiscal Month                        |   |
| 1. Monthly consolidated balance sheet                                       |   |
| 2. Monthly consolidated statement of income                                 |   |
| 3. Monthly consolidated statement of cash flows                             |   |
| 4. Compliance Certificate with management's discussion & analysis       |   |
|                                                                        |   |
| C. Within 45 days after the end of each Fiscal Quarter                      |   |
| 1. Quarterly consolidated balance sheet                                     |   |
| 2. Quarterly consolidated statement of income                               |   |
| 3. Quarterly consolidated statement of cash flows                           |   |
| 4. Compliance Certificate with management's discussion & analysis       |   |
|                                                                        |   |
| D. Within 90 days after the end of each Fiscal Year                         |   |
| 1. Annual audited consolidated balance sheet                                |   |
| 2. Annual audited consolidated statement of income                          |   |
| 3. Annual audited consolidated statement of cash flows                      |   |
| 4. Compliance Certificate with management's discussion & analysis       |   |
| 5. Certification by Registered Public Accounting Firm                       |   |
|                                                                        |   |
| E. Within 30 days before the end of each Fiscal Year                        |   |
| 1. Projected monthly consolidated balance sheet for upcoming year           |   |
| 2. Projected monthly consolidated statement of income for upcoming year     |   |
| 3. Projected monthly consolidated statement of cash flows for upcoming year |   |
| 4. Availability model                                                       |   |

| 1 | Provided that at any time that an Accelerated Borrowing Base Delivery Event has occurred and is continuing, such Borrowing Base Certificate shall be delivered on Wednesday of each week (or, if Wednesday is not a Business Day, on the next succeeding Business Day), showing the Borrowing Base as of the close of business on the immediately preceding Saturday, and no additional Borrowing Base Certificate need be provided on the tenth (10th) day of any Fiscal Month with respect to which a Borrowing Base Certificate has been delivered weekly. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| 1. | The Lead Borrower hereby requests [a Committed Borrowing][a conversion of Loans from one Type to the other][a continuation of LIBO Rate Loans]:2 |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | On _________________________ (a Business Day)3 |
|--------|-----|------------------------------------------------|

|   | (b) | In the amount of $___________________4 |
|--------|-----|----------------------------------------|

|   | (c) | Comprised of [Base Rate][LIBO Rate]Loans (Type of Committed Loan)5 |
|--------|-----|--------------------------------------------------------------------|

| 2 | A Committed Borrowing must be a borrowing consisting of simultaneous Loans of the same Type and, in the case of LIBO Rate Loans, must have the same Interest Period. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Each notice of a Committed Borrowing must be received by the Administrative Agent not later than: (i) 11:00 a.m. three (3) Business Days prior to the requested date of any Committed Borrowing of LIBO Rate Loans, or (ii) 11:00 a.m. on the requested date of any Committed Borrowing of Base Rate Loans. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Each Committed Borrowing, conversion to, or continuation of LIBO Rate Loans must be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof, and each Committed Borrowing of or conversion to Base Rate Loans must be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Committed Loans may be either Base Rate Loans or LIBO Rate Loans. If the Type of Committed Loan is not specified, then the applicable Committed Loans will be made as Base Rate Loans. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | For LIBO Rate Loans: with an Interest Period of ____ months6 |
|--------|-----|--------------------------------------------------------------|

----

|   | Syms Corp, as Lead Borrower |
|--------|-----------------------------|
|   |                        |
|   |                        |
|   | By:                         |   |
|   | Name:                       |   |
|   | Title:                      |   |

----

----

----

| $_______________ | _____________, 2009 |
|------------------|---------------------|

----

----

----

|   | BORROWERS:                 |
|--------|----------------------------|
|   |                       |
|   | Syms Corp                  |
|   |                       |   |   |
|   |                       |   |   |
|   | By:                        |   |   |
|   |                       |   |   |
|   | Name:                      |   |   |
|   |                       |   |   |
|   | Title:                     |   |   |
|   |                       |   |   |
|   |                       |   |   |
|   | SYL, LLC                   |
|   |                       |
|   | By: Syms Corp, sole member |
|   |                       |   |   |
|   |                       |   |   |
|   | By:                        |   |   |
|   |                       |   |   |
|   | Name:                      |   |   |
|   |                       |   |   |
|   | Title:                     |   |   |

----

| To:    |   | Bank of America, N.A.         | Date:  __________________ |
|--------|--------|-------------------------------|-------------------------------------|
|   |   | 100 Federal Street, 9th Floor |                                |
|   |   | Boston, Massachusetts 02110   |                                |
|   |   | Attention: Kathleen Dimock    |                                |

| 1. | No Default. |
|----|-------------|

|   | a. | To the best knowledge of the undersigned Responsible Officer, except as set forth in Appendix I, no Default or Event of Default has occurred and is continuing. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | If a Default or Event of Default has occurred and is continuing, the Borrowers propose to take action as set forth in Appendix I with respect to such Default or Event of Default. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | No Material Accounting Changes, Etc. The financial statements furnished to the Agent for the Fiscal Month/Fiscal Quarter/Fiscal Year ending [_____] were prepared in accordance with GAAP consistently applied and present fairly in all material respects the financial condition of the Borrowers on a consolidated basis at the close of, and the results of the Borrowers' operations and cash flows for, the period(s) covered, subject to, with respect to the monthly/quarterly financial statements, normal year end audit adjustments and the absence of footnotes. There has been no change in GAAP or the application thereof since the date of the audited financial statements furnished to the Agent for the Fiscal Year ending [_____], other than the material accounting changes as disclosed on Appendix II hereto. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | By:    |   |                                 |
|--------|--------|--------|--------------------------------------|
|   |   |   | Responsible Officer of Lead Borrower |
|   |   |   |                                 |
|   | Name:  |   |                                 |
|   | Title: |   |                                 |

----

----

----

| 1 | For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Select as appropriate. |
|---|------------------------|

| 4 | Include bracketed language if there are either multiple Assignors or multiple Assignees. |
|---|------------------------------------------------------------------------------------------|

----

| 1.     | Assignor[s]:  |   |   |
|--------|--------------------|--------|--------|
|   |               |   |   |
|   |               |   |   |
|   |               |   |   |
| 2.     | Assignee[s]:  |   |   |
|   |               |   |   |
|   |               |   |   |

| 3. | Borrowers:  | Syms Corp and SYL, LLC |
|----|------------------|------------------------|

| 4. | Administrative Agent:  Bank of America, N.A., as the Administrative Agent under the Credit Agreement. |
|----|-----------------------------------------------------------------------------------------------------------------|

| 5. | Credit Agreement:  Credit Agreement, dated as of August 27, 2009, by and among (i) the Borrowers, (ii) the Guarantors party thereto from time to time, (iii) the Lenders party thereto from time to time, and (iv) Bank of America, N.A. as administrative agent (in such capacity, the "Administrative Agent ") for itself and the other Credit Parties, (v) Bank of America, N.A. as collateral agent (in such capacity, the "Collateral Agent") for itself and the other Credit Parties, and (vi) Bank of America, N.A., as L/C Issuer. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Assigned Interest[s]: |
|----|-----------------------|

| Assignor[s]5 | Assignee[s]6 | Aggregate Amount of Commitment/ Loans for all Lenders7 | Amount of Commitment/ Loans Assigned8 | Percentage Assigned of Commitment/ Loans9 |
|--------------|--------------|--------------------------------------------------------|---------------------------------------|-------------------------------------------|
|         |         | $_________                                             | $_________                            | _________%                                |
|         |         | $_________                                             | $_________                            | _________%                                |

| 5 | List each Assignor, as appropriate. |
|---|-------------------------------------|

| 6 | List each Assignee, as appropriate. |
|---|-------------------------------------|

| 7 | Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Subject to minimum amount requirements pursuant to Section 10.06(b)(i)(B) of the Credit Agreement and subject to proportionate amount requirements pursuant to Section 10.06(b)(ii) of the Credit Agreement. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | Set forth, to at least 9 decimals, as a percentage of the Aggregate Commitments/Committed Loans of all Lenders thereunder. |
|---|----------------------------------------------------------------------------------------------------------------------------|

----

| [7. | Trade Date:  __________________]10 |
|-----|----------------------------------------------|

|   | ASSIGNOR           |
|--------|--------------------|
|   | [NAME OF ASSIGNOR] |
|   |               |
|   |               |
|   | By:                |   |   |
|   | Name:              |   |   |
|   | Title:             |   |   |
|   |               |   |   |
|   |               |   |   |
|   | ASSIGNEE           |
|   | [NAME OF ASSIGNEE] |
|   |               |
|   |               |
|   | By:                |   |   |
|   | Name:              |   |   |
|   | Title:             |   |   |

| By:    |   |   |
|--------|--------|--------|
| Name:  |   |   |
| Title: |   |   |

| 10 | To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. |
|----|--------------------------------------------------------------------------------------------------------------------------------------|

| 11 | To the extent that the Administrative Agent's consent is required under Section 10.06(b)(iii) of the Credit Agreement. |
|----|------------------------------------------------------------------------------------------------------------------------|

----

| By:    |   |   |   |
|--------|--------|--------|--------|
| Name:  |   |   |   |
| Title: |   |   |   |

----

----

----

----

| Syms Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Certificate No.  |   |   |              | 1      |         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-------------------|--------|--------------|
| Borrowing Base Certificate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Certificate Date |   |   |              |   |         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Information as of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Syms             |   |   | Filene's Basement |   |         | Consolidated |   |
| Eligible Credit Card Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             |   |   |              |   |         |   |   |   |
| Advance Rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 85.0%  |   |              |   | 85.0%        |   |   | $ | - |   |
| Credit Card Receivable Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Stock Ledger Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |              |   |         |   |   |   |   |   |
|    On hand, not detail received                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |   |   |              |   |         |   |   |   |   |   |
|    Pack & Hold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             |   |   |              |   |         |   |   |   |   |   |
|    Un-Entered Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |              |   |         |   |   |   |   |   |
|    In Yard                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |   |   |              |   |         |   |   |   |   |   |
|    Trailers In-Transit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |   |   |              |   |         |   |   |   |   |   |
|    Cross Dock Merchandise in Process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |              |   |         |   |   |   |   |   |
| Total Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |   |   |              |   |         |   |   |   |   |   |
| Less ineligibles:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             |   |   |              |   |         |   |   |   |   |   |
|    Damages/RTV (1.0% of inventory)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
|    Damages/RTV (1.0% of inventory)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
|    Shrink (0.5% of Inventory at FB ONLY)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Total ineligibles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Eligible inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Appraised NOLV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |   |   |              |   |         |   |   |   |   |   |
| Advance Rate (85% x NOLV)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 0.0%   |   |              |   | 0.0%         |   |   |   |   |   |
| Inventory Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Eligible Letters of Credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |   |   |              |   |         |   |   | $ | - |   |
| Appraised NOLV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |   |   |              |   |         |   |   |   |   |   |
| Advance Rate (85% x NOLV)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 0.0%   |   |              |   | 0.0%         |   |   |   |   |   |
| Letter of Credit Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
|  Appraised Value of Eligible Real Estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             |   |   |              | $      | - 50.0% |   |   | $ | -  |   |
| Real Estate Advance Rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             | 50.0%  |   |              |   |         |   |   |   |   |   |
|    (capped at the lesser of $18.75MM and 25% of the Loan Cap)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |   |   |              |   |         |   |   |   |   |   |
| Real Estate Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Eligible Cash in BOA Control Account                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                | -      |   |              |   |         |   |   | $ | - |   |
| Advance Rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 100.0% |   |              |   | 100.0%       |   |   |   |   |   |
| Cash in BOA Control Account Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |              |   |         |   |   |   |   |   |
| Total Available Collateral Before Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Less availability reserves:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |   |   |              |   |         |   |   |   |   |   |
|    Gift certificates and merchandise credits (50%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             |   |   |              |   |         |   |   | $ | - |   |
|    Customer deposits (100%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |   |   |              |   |         |   |   | $ | - |   |
|    Landlord Lien reserve (2 months rent in PA, VA and WA)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |   |   |              |   |         |   |   | $ | - |   |
|    TX Ad Valorem Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |   |   |              |   |         |   |   | $ | - |   |
| Total availability reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
| Total Borrowing Base (capped at $75MM)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                | -      |   |              | $      | -            |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |              |
| Availability Calculation As of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |              |
| Total Borrowing Base                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | $      | -      |              |
| Beginning Principal Balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | $      | -      |              |
| Add: Prior Day Advance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |              |
| Add: Fees Charged Today                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             |   |   |              |
| Ending Principal Balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             | $      | -      |              |
| Add: Standby Letters of Credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | $      | -      |              |
| Add: Documentary Letter of Credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | $      | -      |              |
| Total Obligations Prior to Today's Advance Request                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | $      | -      |              |
| Total Availability Prior to Advance Request                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | $      | -      |              |
| Pay Down Amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |   |   |              |
| Advance Request                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |   |   |              |
| Excess Availability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | $      | -      |              |
|  The undersigned represents and warrants that (a) the information set forth above is true, complete and accurate, and has been prepared in accordance with the requirements of the Credit Agreement between the Borrower and Bank of America, N.A.; (b) no "Default" (as defined in the Credit Agreement) is presently in existence; and (c) all or a portion of the advance requested hereby will be set aside by the Borrower to cover 100% of the Borrower's obligation for sales tax on account of sales since the most recent borrowing under the Credit Agreement. |   |
|  Authorized signer:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |
|  Name:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |
|  Title:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |

----

| To:  | [Name and Address of Credit Card Processor] (The "Processor") |
|-----------|---------------------------------------------------------------|
|      |                                                          |   |
|      | Re:                                                      | Syms Corp (the "Company") |
|      |                                                          | Merchant Account Number:  ________________ |

| 1.     | Until the Processor receives written notification from an officer of the Collateral Agent to the contrary, all amounts as may become due from time to time from the Processor to the Company shall continue to be transferred only as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                           |
|   | (a)                                                                                                                                                                                                                                            | By ACH, Depository Transfer Check, or Electronic Depository Transfer to: |
|   |                                                                                                                                                                                                                                           |   |
|   |                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                           | ABA # |   |   |
|   |                                                                                                                                                                                                                                           | Account No. |   |   |
|   |                                                                                                                                                                                                                                           | Re: Syms Corp |
|   |                                                                                                                                                                                                                                           |   |   |   |
|   |                                                                                                                                                                                                                                           | or |   |   |

----

|   | (b)                                                                                                                                                                                                                                                                                                                               | As the Processor may be instructed from time to time in writing by an officer of the Collateral Agent. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                              |                                                                                                   |
| 2.     | Upon request of the Collateral Agent, a copy of each periodic statement provided by the Processor to the Company should be provided to the Collateral Agent at the following address (which address may be changed upon seven (7) days' written notice given to the Processor by the Collateral Agent):                           |
|   |                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                              | Bank of America, N.A.                                                                                  |   |   |
|   |                                                                                                                                                                                                                                                                                                                              | 100 Federal Street, 9th Floor                                                                          |   |   |
|   |                                                                                                                                                                                                                                                                                                                              | Boston, Massachusetts 02110                                                                            |   |   |
|   |                                                                                                                                                                                                                                                                                                                              | Attention: Andrew Cerussi                                                                              |   |   |
|   |                                                                                                                                                                                                                                                                                                                              | Re: Syms Corp                                                                                          |   |   |
|   |                                                                                                                                                                                                                                                                                                                              |                                                                                                   |   |   |
| 3.     | The Processor shall be fully protected in acting on any order or direction by the Agents respecting the Charges and the Credit Card Proceeds without making any inquiry whatsoever as to the Collateral Agent's right or authority to give such order or direction or as to the application of any payment made pursuant thereto. |

----

|   | Very truly yours, |
|--------|-------------------|
|   |              |
|   | Syms Corp         |
|   |              |
|   |              |
|   | By:               |   |
|   | Name:             |   |
|   | Title:            |   |