| 1.   | Definitions. All capitalized undefined terms used in this Consent shall have the meanings ascribed thereto in the Credit Agreement. |
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| 2.   | Consent.  Subject to the conditions precedent set forth herein, the Borrowers, the Required Lenders and the Administrative Agent hereby consent to amend the definition of “Equity Reserve” in the Credit Agreement by amending and restating such definition as follows: |
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| 3.   | Conditions Precedent.  This Consent shall be deemed effective as of the date hereof upon the satisfaction of the following conditions to effectiveness: |
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| a.   | The Administrative Agent and the Lenders shall have received this Consent, duly executed by the Borrowers, the Guarantors, the Administrative Agent and the Required Lenders, and this Consent shall be in full force and effect. |
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| b.   | The Administrative Agent shall have received a duly executed copy of that certain Consent, Waiver and First Amendment to Term Loan Agreement dated as of even date, by and among the Loan Parties, the Second Lien Agent and the Second Lien Lenders, a true and complete copy of which is annexed hereto as Exhibit A. |
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| c.   | All necessary consents and approvals to this Consent shall have been obtained. |
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| d.   | All action on the part of the Loan Parties necessary for the valid execution, delivery and performance by the Loan Parties of this Consent shall have been duly and effectively taken. |
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| e.   | No Default or Event of Default shall have occurred and be continuing, both before and immediately after giving effect to the execution of this Consent. |
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| 4.   | Further Assurances. The Loan Parties shall take any and all such actions and execute any and all such instruments and agreements as the Administrative Agent shall reasonably request for the purpose of effectuating this Consent. |
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| 5.   | Limited Consent.  Except as specifically modified hereby, the terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect, and are hereby ratified and affirmed in all respects.  This Consent shall not be deemed a waiver of, or consent to, or a modification or amendment of, any other term or condition of the Credit Agreement or any other Loan Document, except as expressly set forth herein. |
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| 6.   | Governing Law. This Consent shall be governed by and construed in accordance with the laws of the State of New York. |
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| 7.   | Counterparts. This Consent may be executed in any number of counterparts, which shall together constitute an entire original agreement, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. |
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|   | BORDERS GROUP, INC.  By:                                                         Name:Title:                                           |
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|   | BORDERS, INC.  By:                                                         Name:Title:                                                 |
|   | BORDERS PROPERTIES, INC.  By:                                                         Name:Title:                                      |
|   | BORDERS INTERNATIONAL SERVICES, INC.  By:                                                         Name:Title:                          |
|   | BGP (UK) LIMITED  By:                                                         Name:Title:                                              |
|   | BORDERS DIRECT, LLC By: Borders, Inc., its Sole Member  By:                                                         Name:Title:   |

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