Exhibit 10.1




---



##### 



TABLE OF CONTENTS
 PageARTICLE I DEFINITIONS, ACCOUNTING TERMS AND RULES OF CONSTRUCTION
    
    
    2Section 1.01 Definitions
    
    
    2Section 1.02 Accounting Terms
    
    
    24Section 1.03 Computation of Time Periods
    
    
    24Section 1.04 Rules of Construction
    
    
    24ARTICLE II REVOLVING CREDIT LOANS
    
    
    25Section 2.01 Revolving Credit
    
    
    25Section 2.02 [Intentionally Omitted.]
    
    
    25Section 2.03 Notice and Manner of Borrowing
    
    
    25Section 2.04 Conversions and Continuation
    
    
    26Section 2.05 Non-Receipt of Funds by Agent
    
    
    27Section 2.06 Interest
    
    
    27Section 2.07 Notes
    
    
    27Section 2.08 Repayments and Mandatory and Optional Prepayments
    
    
    28Section 2.09 Method of Payment
    
    
    29Section 2.10 Use of Proceeds
    
    
    30Section 2.11 Minimum Amounts
    
    
    30Section 2.12 Establishment of Loan Account; Collection of Accounts
    
    
    30Section 2.13 Closing Fee
    
    
    30Section 2.14 Fee Letter
    
    
    31Section 2.15 Commitment Fee
    
    
    31Section 2.16 Defaulting Bank
    
    
    31ARTICLE III LETTERS OF CREDIT
    
    
    32Section 3.01 Trade Letters of Credit; Cash Collateral for Letters of Credit Expiring After Termination Date
    
    
    32Section 3.02 Reimbursement Obligation
    
    
    33Section 3.03 Payment of Commissions, Expenses and Interest
    
    
    34Section 3.04 Proper Drawing; Letter of Credit Issuing Banks Honoring
    
    
    34Section 3.05 Standby Letters of Credit
    
    
    35Section 3.06 Amendment; Change; Modification; No Waiver
    
    
    35Section 3.07 U.C.P. and I.S.P.; Agreements and Acknowledgments; Indemnification
    
    
    35Section 3.08 Licenses; Insurance; Regulations
    
    
    37Section 3.09 Airway and Steamship Guaranties
    
    
    37Section 3.10 Additional Security
    
    
    38Section 3.11 Continuing Rights and Obligations
    
    
    38Section 3.12 Instructions; No Liability
    
    
    38Section 3.13 Steamship Guaranty
    
    
    39Section 3.14 Letter of Credit Application and Agreement
    
    
    39Section 3.15 Existing Letters of Credit; Use of Term Letter of Credit Issuing Bank
    
    
    39Section 3.16 Borrowers Obligations Under Letters of Credit
    
    
    39
  i




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##### 



PageARTICLE IV PARTICIPATION
    
    
    39Section 4.01 Participating Banks Pro Rata Shares
    
    
    39Section 4.02 Sale and Purchase of Participation
    
    
    40Section 4.03 Participation in Fees and Collateral; Relationship
    
    
    40Section 4.04 Procedures
    
    
    40Section 4.05 Collections and Remittances
    
    
    41Section 4.06 Sharing of Setoffs and Collections
    
    
    41Section 4.07 Indemnification; Costs and Expense
    
    
    42Section 4.08 Administration; Standard of Care
    
    
    42Section 4.09 Independent Investigation by the Participating Banks
    
    
    43Section 4.10 Participating Banks Ownership of Interests in the Participation; Repurchases by
the Letter of Credit Issuing Banks
    
    
    44ARTICLE V GUARANTY
    
    
    44Section 5.01 Guaranty
    
    
    44Section 5.02 Guarantors Guaranty Obligations Unconditional
    
    
    45Section 5.03 Waivers
    
    
    45Section 5.04 Subrogation
    
    
    46Section 5.05 Limitation of Liability
    
    
    46ARTICLE VI CONDITIONS PRECEDENT
    
    
    46Section 6.01 Conditions Precedent to Use of a Credit Facility on and after the Restatement Date
    
    
    46Section 6.02 Conditions Precedent to All Credit Facilities
    
    
    48Section 6.03 Deemed Representation
    
    
    48ARTICLE VII REPRESENTATIONS AND WARRANTIES
    
    
    49Section 7.01 Incorporation
    
    
    49Section 7.02 Corporate Power and Authority; No Conflicts
    
    
    49Section 7.03 Legally Enforceable Agreements
    
    
    49Section 7.04 Litigation
    
    
    49Section 7.05 Financial Statements
    
    
    50Section 7.06 Ownership and Liens
    
    
    50Section 7.07 Taxes
    
    
    50Section 7.08 ERISA
    
    
    50Section 7.09 Subsidiaries; Ownership of Guarantors; Investments
    
    
    51Section 7.10 Operation of Business
    
    
    51Section 7.11 No Default on Outstanding Judgments or Orders
    
    
    51Section 7.12 No Defaults on Other Agreements
    
    
    51Section 7.13 Labor Disputes and Acts of God
    
    
    51Section 7.14 Governmental Regulation
    
    
    52Section 7.15 Partnerships
    
    
    52Section 7.16 Environmental Protection
    
    
    52Section 7.17 Solvency
    
    
    52Section 7.18 Properties; Priority of Liens
    
    
    52Section 7.19 No Burdensome Restrictions
    
    
    52
  ii




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##### 



PageSection 7.20 Federal Regulations
    
    
    52Section 7.21 Deposit and Securities Accounts
    
    
    53Section 7.22 Disclosure
    
    
    53Section 7.23 Security Interests
    
    
    53Section 7.24 Anti-Terrorism Laws
    
    
    53Section 7.25 Trading with the Enemy
    
    
    54ARTICLE VIII AFFIRMATIVE COVENANTS
    
    
    54Section 8.01 Maintenance of Existence
    
    
    54Section 8.02 Conduct of Business
    
    
    55Section 8.03 Maintenance of Properties
    
    
    55Section 8.04 Maintenance of Records
    
    
    55Section 8.05 Maintenance of Insurance
    
    
    55Section 8.06 Compliance with Laws
    
    
    55Section 8.07 Right of Inspection
    
    
    55Section 8.08 Reporting Requirements
    
    
    56Section 8.09 Compliance With Environmental Laws
    
    
    59Section 8.10 Contractual Obligations
    
    
    59Section 8.11 Payment of Fees
    
    
    59Section 8.12 Execution of Supplemental Instruments
    
    
    59(a)
    
    
    59Section 8.13 Inactive Subsidiaries
    
    
    59ARTICLE IX NEGATIVE COVENANTS
    
    
    60Section 9.01 Debt
    
    
    60Section 9.02 Guaranties
    
    
    61Section 9.03 Liens
    
    
    61Section 9.04 Sale of Assets
    
    
    63Section 9.05 Transactions with Affiliates
    
    
    63Section 9.06 Investments; Acquisitions
    
    
    64Section 9.07 Mergers
    
    
    64Section 9.08 Leases
    
    
    65Section 9.09 Dividends
    
    
    65Section 9.10 Restricted Payments
    
    
    65Section 9.11 Fiscal Year
    
    
    65Section 9.12 Changes, Amendments or Modifications
    
    
    65Section 9.13 Nature of Business
    
    
    65Section 9.14 Double Negative Pledge
    
    
    66Section 9.15 Factoring Agreements
    
    
    66Section 9.16 Deposit and Securities Accounts
    
    
    66Section 9.17 Anti-Terrorism Laws
    
    
    66Section 9.18 Trading with the Enemy Act
    
    
    67
  iii




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##### 



PageARTICLE X FINANCIAL COVENANTS
    
    
    67Section 10.01 Consolidated EBITDA
    
    
    67Section 10.02 Consolidated Capital Expenditures
    
    
    67Section 10.03 Minimum Liquidity Amount
    
    
    67Section 10.04 Net Availability
    
    
    67Section 10.05 Loan Clean-Up Period
    
    
    67ARTICLE XI EVENTS OF DEFAULT
    
    
    68Section 11.01 Events of Default
    
    
    68Section 11.02 Remedies
    
    
    70Section 11.03 Application of Proceeds
    
    
    70ARTICLE XII THE AGENT AND COLLATERAL MONITOR
    
    
    71Section 12.01 Appointment, Powers and Immunities of Agent
    
    
    71Section 12.02 Reliance by Agent
    
    
    71Section 12.03 Defaults
    
    
    72Section 12.04 Rights of Agent as a Bank
    
    
    72Section 12.05 Indemnification of Agent
    
    
    72Section 12.06 Documents
    
    
    72Section 12.07 Non-Reliance on Agent and Other Banks
    
    
    73Section 12.08 Failure of Agent to Act
    
    
    73Section 12.09 Resignation of Agent
    
    
    73Section 12.10 Amendments Concerning Agency Function
    
    
    74Section 12.11 Liability of Agent
    
    
    74Section 12.12 Transfer of Agency Function
    
    
    74Section 12.13 Withholding Taxes
    
    
    74Section 12.14 Collateral Monitor
    
    
    74ARTICLE XIII YIELD PROTECTION
    
    
    75Section 13.01 Additional Costs
    
    
    75Section 13.02 Illegality
    
    
    76Section 13.03 Certain Compensation
    
    
    77Section 13.04 Substitution of Banks
    
    
    77ARTICLE XIV MISCELLANEOUS
    
    
    78Section 14.01 Amendments and Waivers
    
    
    78Section 14.02 Usury
    
    
    78Section 14.03 Expenses; Indemnification
    
    
    78Section 14.04 Assignment; Participation; Additional Bank
    
    
    79Section 14.05 Notices
    
    
    81Section 14.06 Setoff; Sharing
    
    
    81Section 14.07 Jurisdiction; Immunities
    
    
    82Section 14.08 Governing Law
    
    
    82Section 14.09 Counterparts
    
    
    82Section 14.10 Exhibits and Schedules
    
    
    83Section 14.11 Table of Contents; Headings
    
    
    83Section 14.12 Severability
    
    
    83Section 14.13 Integration; Conflicts
    
    
    83Section 14.14 Jury Trial Waiver
    
    
    83Section 14.15 HSBC
    
    
    83Section 14.16 USA PATRIOT Act Notice
    
    
    83Section 14.17 Amendment and Restatement
    
    
    84
  iv




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##### 



Exhibits
 Exhibit A
    
    Form of Pledge AgreementExhibit B
    
    Form of Security AgreementExhibit C
    
    Form of Trademark Security AgreementExhibit D
    
    Form of Borrowing NoticeExhibit E
    
    Form of Borrowing Base CertificateExhibit F
    
    Form of Revolving Credit NoteExhibit G
    
    [Intentionally Omitted]Exhibit H
    
    Form of Assignment and AcceptanceExhibit I
    
    Form of Reaffirmation AgreementExhibit J
    
    Form of Booked Order Report
 Schedules
 Schedule 1.01(a)
    
    Eligible Inventory LocationsSchedule 1.01(b)
    
    Eligible Trade Letter of Credit LocationsSchedule 1.01(c)
    
    Existing Letters of CreditSchedule 3.01
    
    Trade Letter of Credit CeilingSchedule 7.04
    
    LitigationSchedule 7.06
    
    TrademarksSchedule 7.09
    
    Direct and Indirect Subsidiaries;
Inactive Subsidiaries; Ownership of Guarantors, InvestmentsSchedule 7.13
    
    Labor Disputes and Acts of GodSchedule 7.21
    
    Deposit and Securities AccountsSchedule 9.03
    
    Permitted LiensSchedule 10.01
    
    Consolidated EBITDA
  v




---



##### 



RECITALS:
       1




---



##### 



ARTICLE I
 DEFINITIONS, ACCOUNTING TERMS AND RULES OF CONSTRUCTION
 Section 1.01 Definitions.
       Section 3.09
   2




---



##### 



Exhibit H
        3




---



##### 



Section 9.06
  et seq
            4




---



##### 



provided however plus
 plus
 plus
 less
  Exhibit
E
 Section 2.03
     5




---



##### 



person group beneficial owner Voting Shares
           6




---



##### 



plus
         7




---



##### 



Section
9.03(e)(iii)
      8




---



##### 



9




---



##### 



10




---



##### 



Schedule 1.01(a)
         11




---



##### 



Schedule 1.01(b)
     provided however
   12




---



##### 



Section 11.01 hereof
  Schedule 7.21
    Schedule 1.01(c)
 Section 9.03(e)
    13




---



##### 



provided
  Section 8.07
      Section 7.05
   Section 8.11 Section 8.11 provided however
   14




---



##### 



Section 5.01
 Section 5.01
       Section 2.03 provided that provided further that
   15




---



##### 



16




---



##### 



Article II
 Section 2.12(a)
          17




---



##### 



less
   Section 14.04(h)
  provided however
  18




---



##### 



Section 4.01
 Section 14.16
     Maximum
    
    
    Minimum
    
    
    ApplicableInvestment Type
    
    Maturity
    
    
    Rating
    
    
    PercentageCash
    
    
    N/A
    
    
    
    N/A
    
    
    
    100
    %US Government Agency Bills, Notes
and Bonds (excluding savings, Zero Coupons and STRIPs)
    
    1 year
    
    
    
    N/A
    
    
    
    95
    %Commercial Paper
    
    9 months
    
    
    
    A1/P1
    
    
    
    80
    %Asset Backed Commercial Paper
    
    9 months
    
    
    
    A2/P2
    
    
    
    80
    %Domestic Certificate of Deposit
    
    1 year
    
    
    
    N/A
    
    
    
    90
    %Corporate Bonds
    
    1 year
    
    
    AAA
    
    
    
    85
    %Municipal Notes/Bonds
    
    1 year
    
    
    AAA
    
    
    
    85
    %Tax Exempt or Taxable Money Market
Funds
    
    
    N/A
    
    
    AAA
    
    
    
    95
    %Stock,
obligations or securities received in settlement of debts
(created in the ordinary course of
business) owing to the Borrower
    
    
    N/A
    
    
    
    N/A
    
    
    
    0
    %
 Section 9.03
  19




---



##### 



Section 3(3)
 Exhibit A
        20




---



##### 



Exhibit I
      21




---



##### 



Section 1.01
  Section 9.02
   Section 2.01
 Section 2.07
     Exhibit B
   22




---



##### 



Section 3.05
 Section 3.03
  Section 3.09
   Section 8.08
   23




---



##### 



Section 3.01
 Section 3.01
 Section 3.03
  Exhibit C
    Section 1.02.
 Section 1.03.
 Section 1.04.
  24




---



##### 



ARTICLE II
 REVOLVING CREDIT LOANS
 Section 2.01 Revolving Credit.
 Section 2.11 Section 2.08 Section
2.01
  Section 14.01 hereof
 Section 2.02 [Intentionally Omitted.]
 Section 2.03 Notice and Manner of Borrowing. Exhibit D Article VI
  25




---



##### 



Section 2.04 Conversions and Continuation.
 provided that
 provided that
 Section 2.04(b) provided that Section 11.01(a) (e)
 Section 11.01(a) (e)
 Section 2.04(a) Section 2.04(b)
  26




---



##### 



Section 2.05 Non-Receipt of Funds by Agent. Section 2.03
 Section 2.06 Interest.
  Section 2.08
 Section 2.07 Notes. Exhibit F provided however
  27




---



##### 



Section 2.08 Repayments and Mandatory and Optional Prepayments.
   Section 13.03 provided that
 Section 2.08(d)
  28




---



##### 



Section 2.08 Section 2.01 Section 2.08(f)
 Section 2.08 Section 2.08(d)
 Section 2.09 Method of Payment. Article XIII
    29




---



##### 



Section 2.10 Use of Proceeds.
  Section 2.11 Minimum Amounts.
 Section 2.12 Establishment of Loan Account; Collection of Accounts.
   Section 2.13 Closing Fee.
  30




---



##### 



Section 2.14 Fee Letter
 Section 2.15 Commitment Fee. Section 2.14
 Section 2.16 Defaulting Bank.
     31




---



##### 



Section 14.04
   ARTICLE III
 LETTERS OF CREDIT
 Section 3.01 Trade Letters of Credit; Cash Collateral for Letters of Credit Expiring After
Termination Date. provided that provided further that, Schedule 3.01
  32




---



##### 



provided that
 Section 3.02 Reimbursement Obligation.
  33




---



##### 



Section 3.03 Payment of Commissions, Expenses and Interest.
 Article III
   Section 3.04 Proper Drawing; Letter of Credit Issuing Banks Honoring.
   34




---



##### 



Section 3.05 Standby Letters of Credit. provided that Section 3.01
 Section 3.06 Amendment; Change; Modification; No Waiver.
 Section 3.07 U.C.P. and I.S.P.; Agreements and Acknowledgments; Indemnification.
   35




---



##### 



36




---



##### 



Section 3.08 Licenses; Insurance; Regulations.
  Section 3.09 Airway and Steamship Guaranties. provided however
  37




---



##### 



Section 3.10 Additional Security.
 Section 3.11 Continuing Rights and Obligations.
 Section 3.12 Instructions; No Liability. ; provided that ,
  38




---



##### 



Section 3.13 Steamship Guaranty.
 Section 3.14 Letter of Credit Application and Agreement.
 Section 3.15 Existing Letters of Credit; Use of Term Letter of Credit Issuing Bank.
 Article IV
  Section 3.16 Borrowers Obligations Under Letters of Credit.
 ARTICLE IV
 PARTICIPATION
 Section 4.01 Participating Banks Pro Rata Shares. Article IV
  39




---



##### 



Section 4.02 Sale and Purchase of Participation. Section 4.05
 Section 4.03 Participation in Fees and Collateral; Relationship.
 Article IV Article IV Article IV Article IV Article IV
 Section 4.04 Procedures.
   40




---



##### 



Section 4.05 Collections and Remittances.
  Section
4.04 pro rata
  Section 4.06 Sharing of Setoffs and Collections. Section 4.05 pro rata provided however
  41




---



##### 



Section 4.07 Indemnification; Costs and Expense. provided however Section 4.07
 Section 4.08 Administration; Standard of Care. Section 4.08
   42




---



##### 



Section 4.08 Article IV
  Section 4.09 Independent Investigation by the Participating Banks. Article IV Article IV
  43




---



##### 



Section 4.10 Participating Banks Ownership of Interests in the Participation; Repurchases .
 Article IV provided however
 ARTICLE V
 GUARANTY
 Section 5.01 Guaranty.
  44




---



##### 



Section 5.02 Guarantors Guaranty Obligations Unconditional
     Section 5.03 Waivers. Section 5.03
  45




---



##### 



Section 5.04 Subrogation.
 Section 5.05 Limitation of Liability.
 ARTICLE VI
 CONDITIONS PRECEDENT
 Section 6.01 Conditions Precedent to Use of a Credit Facility on and after the Restatement
Date.
 Evidence of Due Organization and all Corporate Actions by Borrower and each Guarantor.
 Incumbency
and Signature Certificates of Borrower and each Guarantor.
  46




---



##### 



Good Standing Certificates of Borrower and each Guarantor.
 Notes.
 Reaffirmation
Agreement.
 Security Documents.
 Control
Agreements. Schedule 7.21
 Opinions
of Counsel for Borrower and Guarantors.
 Payment
of Fees.
 Officers
Certificate.
   Terminations.
  47




---



##### 



Pre-Closing Borrowing Base Certificate.
 USA Patriot Act. Section 14.16
 Additional Documentation.
 Section 6.02 Conditions Precedent to All Credit Facilities.
     Section 6.03 Deemed Representation. Section 6.02(a) Section 6.02(a)
  48




---



##### 



ARTICLE VII
 REPRESENTATIONS AND WARRANTIES
  Section 7.01 Incorporation. Good Standing and Due Qualification.
 Section 7.02 Corporate Power and Authority; No Conflicts.
 Section 7.03 Legally Enforceable Agreements.
 Section 7.04 Litigation. Schedule 7.04 Schedule 7.04
  49




---



##### 



Section 7.05 Financial Statements.
 Section 7.06 Ownership and Liens. Section 7.05 Schedule
7.06
 Section 7.07 Taxes.
 Section 7.08 ERISA.
  50




---



##### 



Section 7.09 Subsidiaries; Ownership of Guarantors; Investments. Schedule 7.09 Schedule
7.09 Schedule 7.09
 Section 7.10 Operation of Business.
 Section 7.11 No Default on Outstanding Judgments or Orders.
 Section 7.12 No Defaults on Other Agreements.
 Section 7.13 Labor Disputes and Acts of God. Schedule 7.13
  51




---



##### 



Section 7.14 Governmental Regulation.
 Section 7.15 Partnerships.
 Section 7.16 Environmental Protection.
  Section 7.17 Solvency.
 Section 7.18 Properties; Priority of Liens.
 Section 7.19 No Burdensome Restrictions.
 Section 7.20 Federal Regulations.
  52




---



##### 



Section 7.21 Deposit and Securities Accounts. Schedule 7.21 Section
9.16
 Section 7.22 Disclosure.
 Section 7.23 Security Interests.
 Section 7.24 Anti-Terrorism Laws.
 General
 Executive Order No. 13224 Blocked Person
  53




---



##### 



Section 7.25 Trading with the Enemy.
 ARTICLE VIII
 AFFIRMATIVE COVENANTS
  Section 8.01 Maintenance of Existence. Section 9.07
  54




---



##### 



Section 8.02 Conduct of Business.
 Section 8.03 Maintenance of Properties.
 Section 8.04 Maintenance of Records.
 Section 8.05 Maintenance of Insurance.
 Section 8.06 Compliance with Laws.
 Section 8.07 Right of Inspection.
 ; provided that ,
 ; provided that ,
  55




---



##### 



Section 8.08 Reporting Requirements.
 Borrowing
Base Certificate.
 Borrowers
Monthly Financial Statements.
 Booked
Order Report.
  56




---



##### 



Borrowers Quarterly Financial Statements.
 Borrowers Annual Financial Statements. Section 8.08(b)(i) Section 8.08(b)(i)
 Management Letters.
 Certificate of No Default. Article X
 Notice of Litigation.
  57




---



##### 



Notices of Defaults and Events of Default.
 ERISA Reports.
 Annual Business Plan. ; provided that ,
 Insurance. Section 8.05
 Material Adverse Change.
 Environmental Notices.
  58




---



##### 



Required Licensors.
 General Information.
 Section 8.09 Compliance With Environmental Laws.
 Section 8.10 Contractual Obligations.
 Section 8.11 Payment of Fees.
 Section 8.12 Execution of Supplemental Instruments.
   Section 8.13 Inactive Subsidiaries. Section 9.06(c)
  59




---



##### 



ARTICLE IX
 NEGATIVE COVENANTS
  Section 9.01 Debt.
  provided that
 Section 9.03
 Section 9.01(c)
      Section 9.02
   60




---



##### 



Section 9.02 Guaranties.
     Section 9.06(e)
 Section 9.03 Liens.
      61




---



##### 



Section 9.15
     provided that
  Schedule 9.03
 provided that
   62




---



##### 



Section 9.04 Sale of Assets. Section 9.15 Sections 9.05 9.06 9.10
 Section 9.05 Transactions with Affiliates.
  63




---



##### 



Section 9.06 Investments; Acquisitions. Sections 9.05 9.10 Section 9.10 provided that Section 8.05 Sections 6.01(a), (b), (c), (f), (h) (i) provided that provided further that
 Section 9.07 Mergers. except that Section 9.06
  64




---



##### 



Section 9.08 Leases. Section 9.03(m) Section 10.04
 Section 9.09 Dividends.
 Section 9.10 Restricted Payments. Article IX except that
 Section 9.11 Fiscal Year.
 Section 9.12 Changes, Amendments or Modifications.
 Section 9.13 Nature of Business.
  de minimis provided however Section 9.13(b) Section 8.11
  65




---



##### 



Section 9.14 Negative Pledge.
 Section 9.15 Factoring Agreements. Section 9.03(e)(i) (ii) (iii) provided that
 Section 9.16 Deposit and Securities Accounts
 Section 9.17 Anti-Terrorism Laws.
     66




---



##### 



Section 9.18 Trading with the Enemy Act.
 ARTICLE X
 FINANCIAL COVENANTS
  Section 10.01 Consolidated EBITDA. Schedule 10.01
 Section 10.02 Consolidated Capital Expenditures.
 Fiscal Year
    
    Capital Expenditures12/31/09
    
    $
    1,500,00012/31/10
    
    $
    1,000,000
 Section 10.03 Minimum Liquidity Amount.
 Section 10.04 Net Availability.
 Section 10.05 Loan Clean-Up Period.
  67




---



##### 



ARTICLE XI
 EVENTS OF DEFAULT
 Section 11.01 Events of Default.
 Section 2.08 (d Section 2.08 (e) Section 8.08(a)(i)
  Section 11.01(c) Section 8.08(a)(i)
   68




---



##### 



Article V Article V
     69




---



##### 



Section 11.02 Remedies. provided however Section 11.01(e)
 Section 11.03
Application of Proceeds. first second third fourth fifth sixth seventh eighth
  70




---



##### 



ARTICLE XII
 THE AGENT AND COLLATERAL MONITOR
 Section 12.01 Appointment, Powers and Immunities of Agent.
 Section 12.02 Reliance by Agent.
  71




---



##### 



Section 12.03 Defaults. Section 12.08 provided that provided further that,
 Section 12.04 Rights of Agent as a Bank.
 Section 12.05 Indemnification of Agent. Section 13.03 Section 13.03 Section 13.03 provided that
 Section 12.06 Documents.
  72




---



##### 



Section 12.07 Non-Reliance on Agent and Other Banks. provided however Section 6.01
 Section 12.08 Failure of Agent to Act. ) Section 12.05
 Section 12.09 Resignation of Agent. Article XII
  73




---



##### 



Section 12.10 Amendments Concerning Agency Function.
 Section 12.11 Liability of Agent.
 Section 12.12 Transfer of Agency Function. provided that
 Section 12.13 Withholding Taxes.
 Section 12.14 Collateral Monitor.
   74




---



##### 



ARTICLE XIII
 YIELD PROTECTION
 Section 13.01 Additional Costs. Section 13.01(a)
  75




---



##### 



Section 13.01
 Section 13.01 Section
13.01(c)
 Section
13.01 Section 13.01 provided that Section 13.01
 Section 13.02 Illegality.
  76




---



##### 



Section 13.03 Certain Compensation.
   Section 13.03
 Section 13.04 Substitution of Banks. Section 13.01 Subject Bank Section 13.04 Affected Bank provided that Section 14.04(b) Section 14.01
  77




---



##### 



ARTICLE XIV
 MISCELLANEOUS
 Section 14.01 Amendments and Waivers. provided however Section 14.01 provided further
 Section 14.02 Usury.
 Section 14.03 Expenses; Indemnification.
  78




---



##### 



Section 14.03
 Section 14.04 Assignment; Participation; Additional Bank.
  Section 14.04 Article XIII Section14.03 Section 14.04
  79




---



##### 



Section 14.04 Section 14.04
 provided that Sections 14.01 (a) through (g)
 Article
XIII Section 12.13
  80




---



##### 



Section 14.04(g)
 Non-Consenting Bank Section 14.01 provided that Section 14.04(b) Section 14.01
 Section 14.05 Notices. Section 14.05 provided that
 Section 14.06 Setoff; Sharing. provided that pro rata provided however
  81




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##### 



Section 14.07 Jurisdiction; Immunities. Section 14.05
 Section 14.07
  Section 14.08 Governing Law.
 Section 14.09 Counterparts.
  82




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##### 



Section 14.10 Exhibits and Schedules.
 Section 14.11 Table of Contents; Headings.
 Section 14.12 Severability.
 Section 14.13 Integration; Conflicts.
 Section 14.14 Jury Trial Waiver.
 Section 14.15 HSBC. Section 3.12
 Section 14.16 USA PATRIOT Act Notice. Patriot Act
  83




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##### 



Section 14.17 Amendment and Restatement.
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
  84




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##### 



HAMPSHIRE GROUP, LIMITED, as a Borrower,
a Letter of Credit Account Party and a GuarantorBy:
    /s/ Jonathan W. NorwoodName:
    Jonathan W. NorwoodTitle:
    Treasurer and Chief Financial OfficerHAMPSHIRE DESIGNERS, INC., as a
Letter of Credit Account Party and a GuarantorBy:
    /s/ Jonathan W. NorwoodName:
    Jonathan W. NorwoodTitle:
    TreasurerITEM-EYES , INC., as a Letter of Credit
Account Party and a GuarantorBy:
    /s/ Jonathan W. NorwoodName:
    Jonathan W. NorwoodTitle:
    Treasurer Address of Borrower, each Letter of Credit Account Party
and each Guarantor for Notices:c/o Hampshire Group, Limited
1924 Pearman Dairy Road
Anderson, SC 29625
Attention: Jonathan Norwood
Fax Number: 864 231-1201




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##### 



HSBC BANK USA, NATIONAL ASSOCIAION,
as a Bank, as Letter of Credit Issuing Bank
and as AgentBy:

/s/
Thomas G. Getty, Jr.Name:
    Thomas G. Getty, Jr.Title:
    Vice President Address for Notices:HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 1 0018
Attention: Thomas G. Getty, Jr.
Fax Number: 212-525-5676Pro Rata Share of Revolving Credit 
Commitment and Letters of Credit
    
    
    38.2
    %




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##### 



JPMORGAN CHASE BANK, N.A.
as a BankBy:

/s/
Joseph A. LisackName:
    Joseph A. LisackTitle:
    Vice President Address for Notices:JPMORGAN CHASE BANK, N.A.270 Park Avenue, 44th Floor
New York, NY 10017Attention: Joseph LisackFax Number: 646 534-2270Pro Rata Share of Revolving Credit 
Commitment and Letters of Credit
    
    
    35
    %




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##### 



WACHOVIA BANK, NATIONAL ASSOCIATION
as a BankBy:

/s/
Jeff ReevesName:
    Jeff ReevesTitle:
    Senior Vice President Address for Notices:WACHOVIA BANK, NATIONAL ASSOCIATIONSpecialized Loans, 7711 Plantation Rd.
Roanoke, VA 24019
Attention: Specialized LoansFax Number: 704 715-0099Pro Rata Share of Revolving Credit 
Commitment and Letters of Credit
    
    
    18
    %




---



##### 



BANK LEUMI USA
as a BankBy:

/s/
Paul J. DeChagasName:
    Paul J. DeChagasTitle:
    Vice President Address for Notices:BANK LEUMI USA562 Fifth Avenue
New York, NY 10036
Attention: Paul J. DeChagasFax Number: 212 626-1329Pro Rata Share of Revolving Credit 
 Commitment and Letters of Credit
    
    
    8.8
    %