Document:

ramexh10112.htm

SECOND AMENDMENT TO

EMPLOYMENT LETTER AGREEMENT

This Second Amendment to Employment Letter Agreement (this “Amendment”) is made and entered into this 23rd day of March, 2011, by and between RAM ENERGY RESOURCES, INC., a Delaware corporation (the “Company”), and G. LES AUSTIN, an individual (the “Executive”).

WHEREAS, the Company and the Executive are parties to that certain letter agreement dated March 13, 2008 (accepted March 14, 2008), pursuant to which the Executive accepted employment with the Company on the terms set out therein (as amended pursuant to that certain First Amendment to Employment Letter Agreement dated December 30, 2008, the “Agreement”); and

WHEREAS, the Company and the Executive have agreed that the Agreement should be further amended in certain respects as hereinafter provided; and

WHEREAS, capitalized terms used but not defined herein have the meanings ascribed to such terms in the Agreement.

NOW, THEREFORE, it is hereby agreed as follows:

1.           Section 8 of the Agreement is hereby deleted in its entirety and the following substituted therefor:

“8.           Severance and Change of Control Protection.  If, during the period commencing on the date of this Agreement and ending April 1, 2012, (i) your employment with the Company is terminated (in a manner that constitutes a “separation from service” under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder) by the Company  other than for Cause (as hereinafter defined), or (ii) a Change of Control (as hereinafter defined) occurs, and upon such Change of Control or within six (6) months thereafter your employment with the Company is terminated (in a manner that constitutes a “separation from service” under Section 409A of the Code and the Treasury Regulations promulgated thereunder) either (A) by the Company other than for Cause, or (B) by you for Good Reason (as hereinafter defined), then in either such event, the Company shall pay to you as a severance benefit, within thirty (30) days after the date of termination, an amount equal to the sum of (y) your then current annual base salary, plus (z) an amount equal to the average of your three (3) then most recent annual cash bonuses.  In the event a Change of Control occurs before your receive your first annual cash bonus, such amount shall be deemed to be $125,000.”

2.           Notwithstanding the above amendment to Section 8 of the Agreement, it is not the intent of this Amendment to delete, amend or otherwise change Subsection 8.1, 8.2 or 8.3 of the Agreement, and all such Subsections remain in full force and effect

3.           In all other respects the Agreement remains in full force and effect.

 

EXECUTED this 23rd day of March, 2011.

	  	
“COMPANY”

	  	  	  
	  	
RAM ENERGY RESOURCES, INC., a Delaware corporation

	  	  	  
	  	
By

	
/s/  Sabrina Gicaletto

	  	  	
Sabrina Gicaletto, Vice President

	  	  	  
	  	
“EXECUTIVE”

	  	  
	  	/s/  G. Les Austin  
	  	
G. Les Austin3B2 EDGAR HTML -- c64713_10k.htm

EXHIBIT 10.4(1)

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT
BETWEEN SOMERSET HILLS BANCORP
AND STEWART E. MCCLURE, JR.
DATED MARCH 8, 2001 (THE “AGREEMENT”)

The Agreement is hereby amended by the addition of a new Section 7.7(d), which shall read as follows:

	 

	
      “(d)
	 
	 
	 	
      If all or any portion of the amounts payable to the Employee under this Agreement, either alone or together with other payments which the Employee has the right to receive from the Employer or any related entity or successor entity, constitute “excess parachute payments” within the meaning of Section 280G of the
      Internal Revenue Code of 1986, as amended (the “Code”), that are subject to the excise tax imposed by Section 4999 of the Code (or any successor sections), the Employer or any related entity or successor entity shall increase the amounts payable hereunder to the extent necessary to place the Employee in the same after-
      tax position as he would have been in had no such excise tax been imposed on the payments hereunder. The determination of the amount of any such excise taxes shall be initially be made by the independent accounting firm employed by the Employer immediately prior to the Change in Control.

	
    

	
     
	 	
     
	 	
    If at a later date it is determined (pursuant to final regulations or published rulings of the Internal Revenue Service, assessment by the Internal Revenue Service or otherwise) that the amount of excise taxes payable by the Employee is greater than the amount initially so determined, then the Employer or any related entity
      or successor entity shall pay the Executive an amount equal to the sum of (i) such additional excise taxes, plus (ii) any interest, fines and penalties with respect to such additional excise taxes, plus (iii) the amount necessary to reimburse the Executive for any income, excise or other taxes payable by the Executive with
      respect to the amounts specified in (i) and (ii) above and the reimbursement provided by this clause (iii).”

    

Except as modified above, the Agreement remains in full force and effect.

	 
	 
	 

	
      Dated: May 15, 2003
	 	
      s/ Stewart E. McClure, Jr.     

	 
	 	
      Stewart E. McClure, Jr.

	 	 	 
	 
	 	
      Somerset Hills Bancorp

	 	 	 
	 
	 	
      By: s/Bette A. Schmitt     

	 
	 	
      Bette A. Schmitt3B2 EDGAR HTML -- c64713_10k.htm

Exhibit 10.4(2)

THIRD AMENDMENT AGREEMENT

  This Agreement amends that certain Employment Agreement by and between Somerset Hills Bancorp, a New Jersey corporation having its principal place of business located at 155 Morristown Road, Bernardsville, New Jersey 07924 (“Employer”) and Stewart E. McClure, Jr., an individual residing at 90 Springhill Road,
  Mendham, New Jersey 07945 (“Employee”) dated March 8, 2001 and amended on May 15, 2003 and September 26, 2007 (the “Employment Agreement”).

  WHEREAS, the Employer has applied to participate in the Treasury Department’s Capital Purchase Program (the “CPP”) undertaken pursuant to the terms of the Emergency Economic Stabilization Act of 2008 (the “EESA”);

  WHEREAS, under the terms of the CPP and the EESA, Employer and Employee must amend certain terms of the Employment Agreement to comply with the provisions of the EESA;

  NOW, THEREFORE, the parties hereto hereby agree as follows:

  1. Section 7.7(d) of the Employment Agreement is deleted in its entirety and replaced with the following:

“Section 7.7(d): (i) Notwithstanding any other provision herein, in the event Employee becomes entitled to receive any payment provided for under any provision of this Article VII, and the amount of such payment, when aggregated with any other payments or benefits payable to Employee under any other agreement or plan of
  Employer in connection with the event triggering the Employee’s right to payment under this Article VII exceeds an amount equal to three (3) times the Employee’s “base amount” (an “Excess Payment”), such benefits, in the aggregate, shall be reduced to an amount that is $1.00 less than three (3) times Employee’s “base
  amount”. For purposes hereof, the term “base amount” shall have the meaning set forth in 26 U.S.C. 280G(b)(3) and 26 CFR 1.280G-1, Q&A-34, except that with regard to payments under Section 7.7(a) hereof, references to “change in ownership or control” shall be treated as referring to “an applicable severance from
  employment”, as that term is defined in 31 CFR 30.9(b).

(ii) The determination of whether any payment provided for hereunder is an Excess Payment, and the amount by which such payment exceeds three (3) times Employee’s “base amount” and the assumptions to be utilized in arriving at such determinations, shall be made by a nationally recognized firm of accountants or
  compensation consultants selected and retained by the Board of Directors of the Employer (the “Accounting Firm”) within fifteen (15) calendar days of the event triggering the right to payment under Article VII. The Accounting Firm shall be reasonably acceptable to the Employee, and shall provide detailed supporting
  calculations both to the Employer and the Employee within fifteen (15) business days of its retention, or such earlier time as is requested by the Employer. All fees and expenses of the Accounting Firm shall be borne solely by the Employer. Any determination by the Accounting Firm shall be binding upon the Employer and the
  Employee.”

  2. Except as amended hereby, the terms and conditions of the Employment Agreement shall remain in full force and effect, unaltered in any way.

  IN WITNESS WHEREOF, the undersigned have executed this Agreement as of this 16th day of January, 2009.

SOMERSET HILLS BANCORP

By: /s/ Edward B. Deutsch  
 Edward B. Deutsch,
 Chairman

/s/ Stewart E. McClure, Jr.  
 Stewart E. McClure, Jr.Exhibit 10.1

EXHIBIT 10.1

THE BON-TON DEPARTMENT STORES, INC.,

THE ELDER-BEERMAN STORES CORP.,

CARSON PIRIE SCOTT II, INC.,

BON-TON DISTRIBUTION, INC.,

and

MCRIL, LLC,

as Borrowers,

and

the other Obligors party hereto,

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

Dated as of March 21, 2011

$625,000,000

CERTAIN FINANCIAL INSTITUTIONS,

as Lenders

and

BANK OF AMERICA, N.A.,

as Agent

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

GE CAPITAL MARKETS, INC.,

and

WELLS FARGO CAPITAL FINANCE, LLC,

as Joint Lead Arrangers and Joint Book Runners,

GENERAL ELECTRIC CAPITAL CORPORATION

and

WELLS FARGO CAPITAL FINANCE, LLC,

as Co-Syndication Agents,

BANK OF AMERICA, N.A. and GENERAL ELECTRIC CAPITAL CORPORATION

as Co-Collateral Agents

CITIZENS BANK OF PENNSYLVANIA and U.S. BANK NATIONAL ASSOCIATION

as Co-Documentation Agents

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
	 	 	1	 
	1.1. Definitions
	 	 	1	 
	1.2. Accounting Terms
	 	 	41	 
	1.3. Certain Matters of Construction
	 	 	41	 
	1.4. Letter of Credit Amounts
	 	 	42	 
	1.5. Certifications
	 	 	42	 
	1.6. Times of Day
	 	 	42	 
	SECTION 2. CREDIT FACILITIES
	 	 	42	 
	2.1. Commitment
	 	 	42	 
	2.1.1. Loans
	 	 	42	 
	2.1.2. Evidence of Debt; Notes
	 	 	43	 
	2.1.3. Use of Proceeds
	 	 	43	 
	2.1.4. Overadvances
	 	 	43	 
	2.1.5. Protective Advances
	 	 	44	 
	2.2. Voluntary Reduction or Termination of Commitments
	 	 	44	 
	2.2.1. Voluntary Reduction or Termination of Tranche A Revolver Commitments
	 	 	44	 
	2.2.2. Voluntary Reduction or Termination of Tranche A-1 Revolver Commitments
	 	 	45	 
	2.3. Letter of Credit Facility
	 	 	45	 
	2.3.1. Issuance of Letters of Credit
	 	 	45	 
	2.3.2. Reimbursement; Participations
	 	 	48	 
	2.3.3. Cash Collateral
	 	 	49	 
	2.3.4. Role of Issuing Bank
	 	 	50	 
	2.3.5. Applicability of ISP
	 	 	50	 
	2.4. Increase in Tranche A Revolver Commitments
	 	 	50	 
	2.4.1. Request for Increase, Etc
	 	 	50	 
	2.4.2. Conditions to Effectiveness of Increase
	 	 	51	 
	SECTION 3. INTEREST, FEES AND CHARGES
	 	 	51	 
	3.1. Interest
	 	 	51	 
	3.1.1. Rates and Payment of Interest
	 	 	51	 
	3.1.2. Application of Adjusted LIBOR to Outstanding Loans
	 	 	52	 
	3.1.3. Interest Periods
	 	 	52	 

 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	3.1.4. Interest Rate Not Ascertainable
	 	 	52	 
	3.2. Fees
	 	 	53	 
	3.2.1. Unused Line Fee
	 	 	53	 
	3.2.2. LC Facility Fees
	 	 	53	 
	3.2.3. Agent Fees
	 	 	53	 
	3.3. Computation of Interest, Fees, Yield Protection
	 	 	53	 
	3.4. Reimbursement Obligations
	 	 	53	 
	3.5. Illegality
	 	 	54	 
	3.6. Increased Costs
	 	 	54	 
	3.7. Capital Adequacy
	 	 	56	 
	3.8. Mitigation
	 	 	56	 
	3.9. Funding Losses
	 	 	56	 
	3.10. Maximum Interest
	 	 	56	 
	SECTION 4. LOAN ADMINISTRATION
	 	 	57	 
	4.1. Manner of Borrowing and Funding Loans
	 	 	57	 
	4.1.1. Notice of Borrowing
	 	 	57	 
	4.1.2. Fundings by Lenders
	 	 	57	 
	4.1.3. Swingline Loans; Settlement
	 	 	58	 
	4.1.4. Notices
	 	 	58	 
	4.2. Defaulting Lender
	 	 	58	 
	4.3. Number and Amount of LIBOR Loans; Determination of Rate
	 	 	59	 
	4.4. Borrower Agent
	 	 	59	 
	4.5. One Obligation
	 	 	60	 
	4.6. Effect of Termination
	 	 	60	 
	SECTION 5. PAYMENTS
	 	 	60	 
	5.1. General Payment Provisions
	 	 	60	 
	5.2. Repayment of Loans
	 	 	61	 
	5.2.1. Certain Other Mandatory Repayments of the Loans and Reduction of
Commitments
	 	 	61	 
	5.3. Payment of Other Obligations
	 	 	61	 
	5.4. Marshaling; Payments Set Aside
	 	 	61	 
	5.5. Allocation of Payments
	 	 	61	 
	5.5.1. Pre-Default Allocation of Payments
	 	 	61	 
	5.5.2. Post-Default Allocation of Payments
	 	 	62	 
	5.5.3. Erroneous Application
	 	 	63	 

 

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	 	 	Page	 
	 
	5.6. Application of Payments
	 	 	63	 
	5.7. Loan Account; Account Stated
	 	 	64	 
	5.7.1. Loan Account
	 	 	64	 
	5.7.2. Entries Binding
	 	 	64	 
	5.8. Taxes
	 	 	64	 
	5.9. Withholding Tax Exemption
	 	 	65	 
	5.10. Nature and Extent of Each Borrower’s Liability
	 	 	65	 
	5.10.1. Joint and Several Liability
	 	 	65	 
	5.10.2. Waivers
	 	 	66	 
	5.10.3. Extent of Liability; Contribution
	 	 	66	 
	5.10.4. Joint Enterprise
	 	 	67	 
	5.10.5. Subordination
	 	 	67	 
	SECTION 6. CONDITIONS PRECEDENT
	 	 	67	 
	6.1. Conditions Precedent to Initial Loans
	 	 	67	 
	6.2. Conditions Precedent to All Credit Extensions
	 	 	70	 
	6.3. Limited Waiver of Conditions Precedent
	 	 	70	 
	SECTION 7. COLLATERAL
	 	 	70	 
	7.1. Grant of Security Interest
	 	 	70	 
	7.2. Lien on Deposit Accounts; Cash Collateral
	 	 	72	 
	7.2.1. Deposit Accounts
	 	 	72	 
	7.2.2. Cash Collateral
	 	 	72	 
	7.3. Real Estate Collateral
	 	 	72	 
	7.4. Other Collateral
	 	 	73	 
	7.4.1. Commercial Tort Claims
	 	 	73	 
	7.4.2. Certain After-Acquired Collateral
	 	 	73	 
	7.5. No Assumption of Liability
	 	 	73	 
	7.6. Further Assurances
	 	 	73	 
	7.7. Foreign Subsidiary Stock
	 	 	73	 
	7.8. Lien Releases
	 	 	73	 

 

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	 	 	Page	 
	 
	SECTION 8. COLLATERAL ADMINISTRATION
	 	 	74	 
	8.1. Borrowing Base Certificates
	 	 	74	 
	8.2. Administration of Accounts and Credit Card Receivables
	 	 	74	 
	8.2.1. Credit Card Notifications; Records
	 	 	74	 
	8.2.2. Account Verification
	 	 	74	 
	8.2.3. Maintenance of Dominion Accounts
	 	 	75	 
	8.2.4. Proceeds of Collateral
	 	 	75	 
	8.3. Administration of Inventory
	 	 	75	 
	8.3.1. Records and Reports of Inventory
	 	 	75	 
	8.3.2. Returns of Inventory
	 	 	75	 
	8.3.3. Acquisition, Sale and Maintenance
	 	 	75	 
	8.4. Administration of Equipment
	 	 	75	 
	8.4.1. Records and Schedules of Equipment
	 	 	75	 
	8.4.2. Dispositions of Equipment
	 	 	75	 
	8.4.3. Condition of Equipment
	 	 	76	 
	8.5. Administration of Deposit Accounts
	 	 	76	 
	8.6. General Provisions
	 	 	76	 
	8.6.1. Location of Collateral
	 	 	76	 
	8.6.2. Insurance of Collateral; Condemnation Proceeds
	 	 	77	 
	8.6.3. Protection of Collateral
	 	 	77	 
	8.6.4. Defense of Title to Collateral
	 	 	77	 
	8.7. Power of Attorney
	 	 	77	 
	SECTION 9. REPRESENTATIONS AND WARRANTIES
	 	 	78	 
	9.1. General Representations and Warranties
	 	 	78	 
	9.1.1. Organization and Qualification
	 	 	78	 
	9.1.2. Power and Authority
	 	 	78	 
	9.1.3. Enforceability
	 	 	78	 
	9.1.4. Capital Structure
	 	 	78	 
	9.1.5. Corporate Names; Locations
	 	 	79	 
	9.1.6. Title to Properties; Priority of Liens
	 	 	79	 
	9.1.7. Security Documents
	 	 	79	 
	9.1.8. Financial Statements
	 	 	79	 
	9.1.9. Surety Obligations
	 	 	79	 

 

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	 	 	Page	 
	 
	9.1.10. Taxes
	 	 	79	 
	9.1.11. Brokers
	 	 	79	 
	9.1.12. Intellectual Property
	 	 	79	 
	9.1.13. Governmental Approvals
	 	 	79	 
	9.1.14. Compliance with Laws
	 	 	80	 
	9.1.15. Compliance with Environmental Laws
	 	 	80	 
	9.1.16. Burdensome Contracts
	 	 	80	 
	9.1.17. Litigation
	 	 	80	 
	9.1.18. Insurance
	 	 	80	 
	9.1.19. No Defaults
	 	 	81	 
	9.1.20. ERISA
	 	 	81	 
	9.1.21. Trade Relations
	 	 	81	 
	9.1.22. Labor Relations
	 	 	81	 
	9.1.23. Not a Regulated Entity
	 	 	81	 
	9.1.24. Margin Stock
	 	 	81	 
	9.1.25. Plan Assets
	 	 	81	 
	9.1.26. Complete Disclosure
	 	 	81	 
	9.1.27. Anti-Terrorism
	 	 	82	 
	SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
	 	 	82	 
	10.1. Affirmative Covenants
	 	 	82	 
	10.1.1. Inspections; Appraisals
	 	 	82	 
	10.1.2. Financial and Other Information
	 	 	83	 
	10.1.3. Notices
	 	 	86	 
	10.1.4. Storage Agreements
	 	 	86	 
	10.1.5. Compliance with Laws; Organic Documents; Material Contracts
	 	 	87	 
	10.1.6. Taxes
	 	 	87	 
	10.1.7. Insurance
	 	 	87	 
	10.1.8. Licenses
	 	 	87	 
	10.1.9. Future Subsidiaries; Designation of Subsidiaries
	 	 	87	 
	10.1.10. Lien Waivers
	 	 	87	 
	10.1.11. Preservation of Existence
	 	 	88	 
	10.1.12. Maintenance of Properties
	 	 	88	 
	10.1.13. Books and Records
	 	 	88	 
	10.1.14. Operation and Maintenance Plan
	 	 	88	 

 

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	 	 	Page	 
	 
	10.2. Negative Covenants
	 	 	88	 
	10.2.1. Permitted Debt
	 	 	88	 
	10.2.2. Permitted Liens
	 	 	90	 
	10.2.3. Cash Accumulation
	 	 	92	 
	10.2.4. Distributions; Upstream Payments
	 	 	92	 
	10.2.5. Restricted Investments
	 	 	92	 
	10.2.6. Disposition of Assets
	 	 	93	 
	10.2.7. Loans
	 	 	93	 
	10.2.8. Restrictions on Payment of Certain Debt
	 	 	93	 
	10.2.9. Fundamental Changes
	 	 	94	 
	10.2.10. Subsidiaries
	 	 	94	 
	10.2.11. Organic Documents
	 	 	94	 
	10.2.12. Tax Consolidation
	 	 	94	 
	10.2.13. Accounting Changes
	 	 	94	 
	10.2.14. Restrictive Agreements
	 	 	94	 
	10.2.15.
Hedging Agreements
	 	 	94	 
	10.2.16. Conduct of Business
	 	 	94	 
	10.2.17. Affiliate Transactions
	 	 	95	 
	10.2.18. Plans
	 	 	95	 
	10.2.19. Amendments to Certain Material Contracts
	 	 	95	 
	10.2.20. No Speculative Transactions
	 	 	95	 
	10.2.21. Passive Company Status
	 	 	95	 
	10.2.22. General Partner
	 	 	95	 
	10.2.23. Sale-Leaseback Transactions
	 	 	95	 
	10.2.24. Debt under Senior Note Debt Documents
	 	 	96	 
	10.2.25. Use of Proceeds
	 	 	96	 
	10.2.26. No Inconsistent Agreements
	 	 	96	 
	10.2.27. Stay, Extension and Usury Laws
	 	 	96	 

 

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	 	 	Page	 
	 
	10.3. Financial Covenants
	 	 	96	 
	10.3.1. Minimum Excess Availability
	 	 	96	 
	SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
	 	 	96	 
	11.1. Events of Default
	 	 	96	 
	11.2. Remedies upon Default
	 	 	98	 
	11.3. License
	 	 	99	 
	11.4. Setoff
	 	 	99	 
	11.5. Remedies Cumulative; No Waiver
	 	 	99	 
	11.5.1. Cumulative Rights
	 	 	99	 
	11.5.2. Waivers
	 	 	99	 
	SECTION 12. AGENT
	 	 	100	 
	12.1. Appointment, Authority and Duties of Agent
	 	 	100	 
	12.1.2. Duties
	 	 	100	 
	12.1.3. Agent Professionals
	 	 	100	 
	12.1.4. Instructions of Required Lenders
	 	 	100	 
	12.1.5. Co-Collateral Agents
	 	 	101	 
	12.1.6. No Fiduciary Relationship
	 	 	101	 
	12.2. Agreements Regarding Collateral and Field Examination Reports
	 	 	101	 
	12.2.1. Lien Releases; Care of Collateral
	 	 	101	 
	12.2.2. Possession of Collateral
	 	 	101	 
	12.2.3. Reports
	 	 	101	 
	12.3. Reliance By Agent
	 	 	102	 
	12.4. Action Upon Default
	 	 	102	 
	12.5. Ratable Sharing
	 	 	102	 
	12.6. Indemnification of Agent Indemnitees
	 	 	102	 
	12.6.1. INDEMNIFICATION
	 	 	102	 
	12.6.2. Proceedings
	 	 	102	 
	12.7. Limitation on Responsibilities of Agent
	 	 	103	 
	12.8. Successor Agent
	 	 	103	 
	12.8.1. Resignation; Successor Agent
	 	 	103	 
	12.8.2. Separate Collateral Agent
	 	 	103	 
	12.9. Due Diligence and Non-Reliance
	 	 	104	 
	12.10. Replacement of Certain Lenders
	 	 	104	 
	12.11. Remittance of Payments and Collections
	 	 	105	 

 

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	12.11.1. Remittances Generally
	 	 	105	 
	12.11.2. Failure to Pay
	 	 	105	 
	12.11.3. Recovery of Payments
	 	 	105	 
	12.12. Agent in its Individual Capacity
	 	 	105	 
	12.13. Agent Titles
	 	 	105	 
	12.14. No Third Party Beneficiaries
	 	 	105	 
	12.15. Junior Debt Intercreditor Agreements
	 	 	106	 
	12.16. Mortgage Intercreditor Agreement
	 	 	106	 
	12.17. Post-Closing Agreement
	 	 	106	 
	SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
	 	 	106	 
	13.1. Successors and Assigns
	 	 	106	 
	13.2. Assignments
	 	 	106	 
	13.2.1. Assignments by Lenders
	 	 	106	 
	13.2.2. Register
	 	 	107	 
	13.2.3. Certain Pledges
	 	 	108	 
	13.2.4. Electronic Execution of Assignments
	 	 	108	 
	13.3. Participations
	 	 	108	 
	13.3.1. Participations
	 	 	108	 
	13.3.2. Limitations upon Participant Rights
	 	 	108	 
	13.4. Tax Treatment
	 	 	108	 
	13.5. Representation of Lenders
	 	 	109	 
	SECTION 14. MISCELLANEOUS
	 	 	109	 
	14.1. Consents, Amendments and Waivers
	 	 	109	 
	14.1.1. Amendment
	 	 	109	 
	14.1.2. Limitations
	 	 	109	 
	14.1.3. Payment for Consents
	 	 	110	 
	14.1.4. Generally
	 	 	110	 
	14.2. Indemnity
	 	 	110	 
	14.3. Notices and Communications
	 	 	111	 
	14.3.1. Notice Address
	 	 	111	 
	14.3.2. Electronic Communications; Voice Mail
	 	 	111	 
	14.3.3. Non-Conforming Communications
	 	 	111	 

 

viii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	14.4. Performance of Borrowers’ Obligations
	 	 	112	 
	14.5. Credit Inquiries
	 	 	112	 
	14.6. Severability
	 	 	112	 
	14.7. Cumulative Effect; Conflict of Terms
	 	 	112	 
	14.8. Counterparts; Facsimile Signatures
	 	 	112	 
	14.9. Entire Agreement
	 	 	112	 
	14.10. Obligations of Lenders
	 	 	112	 
	14.11. Confidentiality
	 	 	113	 
	14.12. GOVERNING LAW
	 	 	113	 
	14.13. Consent to Forum
	 	 	113	 
	14.13.1. Forum
	 	 	113	 
	14.14. Waivers by Borrowers
	 	 	113	 
	14.15. Patriot Act Notice
	 	 	114	 
	14.16. Survival of Representations and Warranties
	 	 	114	 
	14.17. No Advisory or Fiduciary Responsibility
	 	 	114	 
	14.18. Resignation as Issuing Bank or Provider of Swingline Loans after Assignment
	 	 	115	 
	14.19. Amendment and Restatement of Existing Loan Agreement
	 	 	115	 

 

ix

 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 	 	 
	Exhibit A Tranche A Revolver Note
	 	 	 	 
	Exhibit B Tranche A-1 Revolver Note
	 	 	 	 
	Exhibit C Assignment and Assumption Agreement
	 	 	 	 
	Exhibit D Compliance Certificate
	 	 	 	 
	Exhibit E Credit Card Notification
	 	 	 	 
	Exhibit F Guaranty
	 	 	 	 
	Exhibit G Co-Collateral Agent Rights Agreement
	 	 	 	 
	Exhibit H Joinder to Credit Agreement
	 	 	 	 
	 
	Schedule 1.1(a) Commitments of Lenders
	 	 	 	 
	Schedule 1.1(b) Restricted Investments Existing on the Closing Date
	 	 	 	 
	Schedule 1.1(c) Certain Existing Bank Products
	 	 	 	 
	Schedule 2.3.2 Existing Letters of Credit
	 	 	 	 
	Schedule 7.1(c) Commercial Tort Claims
	 	 	 	 
	Schedule 7.2.1 Secondary Operating Deposit Accounts
	 	 	 	 
	Schedule 7.3 Mortgaged Real Estate
	 	 	 	 
	Schedule 7.3A
Mortgage Amendments
	 	 	 	 
	Schedule 8.2.1 Existing Credit Card Arrangements
	 	 	 	 
	Schedule 8.5 Deposit Accounts
	 	 	 	 
	Schedule 8.5(a) Excluded Deposit and Disbursement Accounts
	 	 	 	 
	Schedule 8.5(b) Excluded Trust Accounts
	 	 	 	 
	Schedule 8.6.1 Chief Executive Offices and other Business Locations
	 	 	 	 
	Schedule 9.1.4 Names and Capital Structure
	 	 	 	 
	Schedule 9.1.5 Former Corporate Names and Trade Names
	 	 	 	 
	Schedule 9.1.12 Intellectual Property
	 	 	 	 
	Schedule 9.1.15 Environmental Matters
	 	 	 	 
	Schedule 9.1.16 Restrictive Agreements
	 	 	 	 
	Schedule 9.1.17 Litigation
	 	 	 	 
	Schedule 9.1.22 Labor Contracts
	 	 	 	 
	Schedule 10.2.1 Existing Debt
	 	 	 	 
	Schedule 10.2.2 Existing Liens
	 	 	 	 
	Schedule 10.2.2(c) Existing Tax Liens
	 	 	 	 
	Schedule 10.2.17 Existing Affiliate Transactions
	 	 	 	 

 

 

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as may be amended, amended and
restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) is
dated as of March 21, 2011, by and among THE BON-TON DEPARTMENT STORES, INC. (“Bon-Ton”), a
Pennsylvania corporation, THE ELDER-BEERMAN STORES CORP., an Ohio corporation
(“Elder-Beerman”)), CARSON PIRIE SCOTT II, INC., a Mississippi corporation (“CPS
II”), BON-TON DISTRIBUTION, INC., an Illinois corporation (“Distribution”) and MCRIL,
LLC, a Virginia limited liability company (“McRIL”, and, together with Bon-Ton,
Elder-Beerman, CPS II, Distribution and any other person from time to time a borrower hereunder,
collectively, the “Borrowers”), each of the other Obligors party hereto, the financial
institutions party to this Loan Agreement from time to time as lenders (collectively,
“Lenders”), and BANK OF AMERICA, N.A., a national banking association, as administrative
agent for the Lenders (“Agent”), with MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
GE CAPITAL MARKETS, INC. and WELLS FARGO CAPITAL FINANCE, LLC, acting as joint lead arrangers and
joint bookrunners hereunder (in such capacity, the “Joint Lead Arrangers”), GENERAL
ELECTRIC CAPITAL CORPORATION and WELLS FARGO CAPITAL FINANCE, LLC, as co-syndication agents (in
such capacity, the “Co-Syndication Agents”), BANK OF AMERICA, N.A., and GENERAL ELECTRIC
CAPITAL CORPORATION acting as co-collateral agents hereunder (in such capacity, the
“Co-Collateral Agents”), and CITIZENS BANK OF PENNSYLVANIA and U.S. BANK NATIONAL
ASSOCIATION, acting as co-documentation agents hereunder (in such capacity, the “Documentation
Agents”).

R E C I T A L S:

Borrowers have requested that Lenders make available a credit facility, to be used by
Borrowers to finance their mutual and collective business enterprise. Lenders are willing to
provide such credit facility on the terms and conditions set forth in this Loan Agreement.

NOW, THEREFORE, for valuable consideration hereby acknowledged, the parties agree as follows:

SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION

1.1. Definitions. As used herein, the following terms have the meanings set forth below:

Account — as defined in the UCC, including all rights to payment for goods sold
or leased, or for services rendered.

Account Control Agreements — each deposit account control agreement and other
bank account control agreement required pursuant to Section 7.2.1 or Section 8.5, in each
case, in form and substance reasonably satisfactory to Agent.

Account Debtor — a Person who is obligated under an Account, Chattel Paper or
General Intangible.

Adjusted LIBOR — for any Interest Period, with respect to LIBOR Loans, the per
annum rate of interest (rounded upward, if necessary, to the nearest 1/16th of 1%) equal to
the British Bankers Association per annum LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by Agent from time to time) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest
Period. If such rate is not available at such time for any reason, then “Adjusted LIBOR” for such Interest Period shall be the rate
per annum (rounded upward, if necessary, to the nearest 1/16th of 1%) equal to the rate
determined by Agent to be the rate at which deposits in Dollars for delivery on the first
day of such Interest Period in same day funds in the approximate amount of the LIBOR Loan
being made, continued or converted by Bank of America and with a term equivalent to such
Interest Period would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m. (London
time) two Business Days prior to the commencement of such Interest Period). If the Board of
Governors shall impose a Reserve Percentage with respect to LIBOR deposits, then Adjusted
LIBOR shall equal the amount determined above, divided by (1 minus the Reserve
Percentage).

 

-1-

 

Affiliate — with respect to any Person, another Person (a) who directly, or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with such first Person; (b) who beneficially owns 10% or more of the voting
securities or any class of Equity Interests of such first Person; (c) at least 10% of whose
voting securities or any class of Equity Interests is beneficially owned, directly or
indirectly, by such first Person; or (d) who is an officer, director, partner or managing
member of such first Person. “Control” means the possession, directly or
indirectly, of the power to direct or cause direction of the management and policies of a
Person, whether through ownership of Equity Interests, by contract or otherwise.

Agent — as defined in the Preamble.

Agent Indemnitees — Agent and its Related Parties.

Agent Parties — as defined in Section 10.1.2.

Agent Professionals — attorneys, accountants, appraisers, auditors, business
valuation experts, environmental engineers or consultants, turnaround consultants, and other
professionals and experts retained by Agent.

Aggregate Borrowing Base — means, on any date of determination, collectively,
the Tranche A Borrowing Base and the Tranche A-1 Borrowing Base on such date.

Allocable Amount — as defined in Section 5.10.3.

Anti-Terrorism Laws — any laws relating to terrorism or money laundering,
including the Patriot Act.

Applicable Law — all laws, rules, regulations and governmental guidelines
applicable to the Person, conduct, transaction, agreement or matter in question, including
all applicable statutory law, common law and equitable principles, and all provisions of
constitutions, treaties, statutes, rules, regulations, orders and decrees of Governmental
Authorities.

Applicable Margin — with respect to any Type of Loan, the margin set forth
below, as determined by the average daily Availability Percentage during the Fiscal Quarter
most recently then ended:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LIBOR	 	 	LIBOR	 	 	Base Rate	 	 	Base Rate	 
	 	 	 	 	Tranche A	 	 	Tranche A-1	 	 	Tranche A	 	 	Tranche A-1	 
	 	 	Availability	 	Revolver	 	 	Revolver	 	 	Revolver	 	 	Revolver	 
	Level	 	Percentage	 	Loans	 	 	Loans	 	 	Loans	 	 	Loans	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I
	 	Greater than 60%	 	 	2.00	%	 	 	3.50	%	 	 	1.00	%	 	 	2.50	%
	II
	 	Less than or equal  to 60% and greater than 30%	 	 	2.25	%	 	 	3.75	%	 	 	1.25	%	 	 	2.75	%
	III
	 	Less than or equal to 30%	 	 	2.50	%	 	 	4.00	%	 	 	1.50	%	 	 	3.00	%

 

-2-

 

Until the first day of the Fiscal Quarter following the first full Fiscal Quarter after
the Closing Date, margins shall be determined as if Level II were applicable. Thereafter,
the margins shall be subject to increase or decrease on a quarterly basis. Not more than
ten (10) Business Days after the first day of each Fiscal Quarter, Agent shall determine the
Applicable Margin for such Fiscal Quarter (which shall be effective as of the first Business
Day of such Fiscal Quarter) based on the average daily Availability Percentage for the prior
Fiscal Quarter.

Appraised Value — the fair market value of any Eligible Real Estate as
determined pursuant to the most recent appraisal received by Agent from an independent
third-party appraiser reasonably acceptable to Required Lenders, pursuant to Section
10.1.1(b).

Approved Fund — any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

Approved Shipper — any reputable and creditworthy shipper or freight forwarder
transporting finished goods Inventory to a Borrower’s Distribution Center.

Asset Disposition — a sale, lease, license, consignment, transfer or other
disposition of Property of an Obligor, including a disposition of Property in connection
with a sale-leaseback transaction or synthetic lease; provided, however,
that in no event shall a termination of a lease be deemed to be an Asset Disposition.

Assignee Group — two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

Assignment and Assumption Agreement — an assignment and assumption agreement
between a Lender and Eligible Assignee, substantially in the form of Exhibit C.

Available Basket Amount — means, on any date of determination, an amount equal
to the result of (i) the aggregate amount of cash proceeds actually received by an Obligor
from the issuance of any Equity Interests (or capital contributions in respect of Equity
Interests held in an Obligor) after the Closing Date (“equity issuance proceeds”),
minus (ii) such equity issuance proceeds which have been utilized by the Obligors
and their Subsidiaries to make Investments after the Closing Date.

Availability Percentage — means, on any date of determination, the quotient
(expressed as a percentage) of (a) Excess Availability divided by (b) the lesser of (i) the
aggregate Commitments and (ii) the Aggregate Borrowing Base on such date.

 

-3-

 

Availability Reserve — the sum (without duplication) of (a) the Inventory
Reserve; (b) Credit Card Receivables Reserve, (c) the Rent and Charges Reserve; (d) the Bank
Product Reserve; (e) such reserves which Agent may establish from time to time in the
reasonable exercise of its credit judgment with respect to any liabilities secured by Liens
upon Collateral that are or which may become senior to Agent’s Liens (irrespective of
whether such liabilities or Liens are permitted hereunder and provided that imposition of
any such reserve shall not waive an Event of Default arising therefrom); (f) reserves in
respect of store closures or liquidations as
Agent in the reasonable exercise of its credit judgment may elect to impose from time
to time, (g) reserves in respect of such claims against or liabilities as Agent in the
reasonable exercise of its credit judgment determines may need to be satisfied in connection
with any realization on the Collateral, (h) reserves in respect of consignment arrangements
and any proceeds arising therefrom (but limited to the amount of the associated consignment
payable) as Agent in the reasonable exercise of its credit judgment may elect to impose from
time to time, unless Agent has received a Consignment Agreement in respect of such
arrangements, (i) reserves in respect of Debt in an aggregate principal amount of
$25,000,000 or more maturing within 45 days of the date of determination as Agent in the
reasonable exercise of its credit judgment may elect to impose from time to time and (j)
such additional reserves, in such amounts and with respect to such matters (including,
without limitation, reserves which Agent may establish from time to time, in its reasonable
exercise of its credit judgment, as being appropriate to reflect impediments to Agent’s
ability to realize the full value of the Collateral in a liquidation) as Agent in its
reasonable exercise of its credit judgment may elect to impose from time to time.

Bank of America — Bank of America, N.A., a national banking association, and
its successors and permitted assigns.

Bank of America Indemnitees — Bank of America and its officers, directors,
employees, Affiliates, agents, advisors and attorneys.

Bank Product — any of the following products, services or facilities extended
to Parent or any Subsidiary by any Lender or any of its Affiliates: (a) Cash Management
Services; (b) products under Hedging Agreements; (c) commercial credit card and purchasing
cards extended to Parent or such Subsidiary; (d) other banking products or services as may
be requested by Parent or any Subsidiary, other than letters of credit and leases and (e)
those other bank products and services set forth on Schedule 1.1(c); provided,
however, that for any of the foregoing to be included for purposes of a distribution
under Section 5.5.1(j) or Section 5.5.2(k) (as applicable), the applicable bank product
provider and Obligor must have provided written notice to Agent of (i) the existence of such
Bank Product, (ii) the maximum dollar amount of obligations arising thereunder to be
included as a Bank Product Reserve (“Bank Product Amount”), and (iii) the
methodology to be used by such parties in determining the Bank Product Debt owing from time
to time (which notice, in the case of a distribution under Section 5.5.2(k), must have been
received prior to the occurrence of the Event of Default resulting in the application of
Section 5.5.2(k)). The Bank Product Amount may be changed from time to time upon written
notice to Agent by the Secured Party and Obligor. Notwithstanding anything to the contrary
contained herein, Bank Products provided by Bank of America or any of its branches or
Affiliates shall not be subject to the requirements in the proviso of the first sentence of
this definition in order for such Bank Products to be included as an “Obligation” for
purposes of a distribution under Section 5.5.1(j) or Section 5.5.2(k) (as applicable).

Bank Product Amount — as defined in the definition of Bank Product.

Bank Product Debt — Debt and other obligations of an Obligor or any Subsidiary
relating to Bank Products.

Bank Product Reserve — the aggregate amount of reserves established by Agent in
the reasonable exercise of its credit judgment from time to time, in consultation with the
Borrower Agent, in respect of Bank Product Debt.

Bankruptcy Code — Title 11 of the United States Code, as amended and in effect.

 

-4-

 

Base Rate — for any day, a fluctuating rate per annum equal to the highest of
(a) the
Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime rate,” and (c)
the Adjusted LIBOR for a one-month Interest Period in effect for such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1.00%. The “prime
rate” is a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above, or below
such publicly announced rate. Any change in the Base Rate due to a change in any of the
foregoing shall take effect at the opening of business on the day specified in the public
announcement of such change.

Base Rate Loan — any Loan that bears interest based on the Base Rate.

Base Rate Tranche A Revolver Loan — a Tranche A Revolver Loan that bears
interest at the Base Rate plus the Applicable Margin for Base Rate Tranche A Revolver Loans.

Base Rate Tranche A-1 Revolver Loan — a Tranche A-1 Revolver Loan that bears
interest at the Base Rate plus the Applicable Margin for Base Rate Tranche A-1 Revolver
Loans.

Board of Directors — (a) with respect to a corporation, the board of directors
of the corporation or, except in the context of the definitions of “Change of Control” and
“Continuing Directors,” a duly authorized committee thereof; (b) with respect to a
partnership, the Board of Directors of the general partner of the partnership or, if the
partnership has more than one general partner, the managing general partner of the
partnership; and (c) with respect to any other Person, the board or committee of such Person
serving a similar function.

Board of Governors — the Board of Governors of the Federal Reserve System.

Bon-Ton — as defined in the Preamble.

Borrowed Money — with respect to any Obligor, without duplication, its (a) Debt
that (i) arises from the lending of money by any Person to such Obligor, (ii) is evidenced
by notes, drafts, bonds, debentures, credit documents or similar instruments, (iii) accrues
interest or is a type upon which interest charges are customarily paid (excluding trade
payables owing in the Ordinary Course of Business), or (iv) was issued or assumed as full or
partial payment for Property; (b) Capital Leases; (c) reimbursement obligations with respect
to letters of credit; and (d) guaranties of any Debt of the foregoing types owing by another
Person.

Borrower Account — a special account established by Borrowers, at Bank of
America or another bank reasonably acceptable to Agent, subject to a control agreement in
favor of Agent, for the benefit of the Lenders, in form and substance reasonably
satisfactory to Agent.

Borrower Agent — as defined in Section 4.4.

Borrowing — a group of Loans of one Type that are made on the same day or are
converted into Loans of one Type on the same day.

Borrowing Base Certificate — a certificate, in form and substance reasonably
satisfactory to Agent, by which Borrowers certify calculation of the Tranche A Borrowing
Base and the Tranche A-1 Borrowing Base.

Business Day — any day (a) excluding Saturday, Sunday and any other day on
which banks are permitted to be closed under the laws of the State of New York and (b) when
used with reference to a LIBOR Loan, also excluding any day on which banks do not conduct
dealings in Dollar deposits on the London interbank market.

 

-5-

 

Capital Adequacy Regulation — any law, rule, regulation, guideline, request or
directive of any central bank or other Governmental Authority, whether or not having the
force of law, regarding capital adequacy of a bank or any Person controlling a bank.

Capital Expenditures — all liabilities incurred, expenditures made or payments
due (whether or not made) by Parent or any Subsidiary for the acquisition of any fixed
assets, or any improvements, replacements, substitutions or additions thereto, in each case
that are required to be capitalized for financial reporting purposes in accordance with
GAAP.

Capital Lease — any lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

Capital Stock — (a) in the case of a corporation, corporate stock; (b) in the
case of an association or other business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock; (c) in
the case of a partnership or limited liability company, partnership or membership interests
(whether general or limited); and (d) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or distributions of assets
of, the issuing Person.

Cash Collateral — cash, and any interest or other income earned thereon, that
is delivered to Agent to Cash Collateralize any Obligations.

Cash Collateral Account — a demand deposit, money market or other account
established by Agent at such financial institution as Agent may select in its discretion,
which account shall be subject to Agent’s Liens for the benefit of Secured Parties.

Cash Collateralize — the delivery of cash to Agent, as security for the payment
of Obligations, in an amount equal to (a) with respect to LC Obligations, 103% of the
aggregate LC Obligations, and (b) with respect to any inchoate or contingent Obligations
(including Obligations arising under Bank Products), Agent’s good faith estimate of the
amount due or to become due, including all fees and other amounts relating to such
Obligations. “Cash Collateralization” has a correlative meaning.

Cash Equivalents — (a) marketable obligations issued or unconditionally
guaranteed by, and backed by the full faith and credit of, the United States government,
maturing within 12 months of the date of acquisition; (b) certificates of deposit, time
deposits and bankers’ acceptances maturing within 12 months of the date of acquisition, and
overnight bank deposits, in each case which are issued by a commercial bank organized under
the laws of the United States or any state or district thereof, rated A-1 (or better) by S&P
or P-1 (or better) by Moody’s at the time of acquisition, and (unless issued by a Lender)
not subject to offset rights; (c) repurchase obligations with a term of not more than 30
days for underlying investments of the types described in clauses (a) and (b) entered into
with any bank meeting the qualifications specified in clause (b); (d) commercial paper rated
A-1 (or better) by S&P or P-1 (or better) by Moody’s, and maturing within nine months of the
date of acquisition; and (e) shares of any money market fund that has substantially all of
its assets invested continuously in the types of investments referred to above, has net
assets of at least $500,000,000 and has the highest rating obtainable from either Moody’s or
S&P.

Cash Management Services — any services provided from time to time by any
Lender or any of its Affiliates to Parent or any Subsidiary in connection with operating,
collections, payroll, trust, or other depository or disbursement accounts, including
automatic clearinghouse, controlled disbursement, depository, electronic funds transfer,
information reporting, lockbox, stop payment, overdraft and/or wire transfer services.

 

-6-

 

CERCLA — the Comprehensive Environmental Response Compensation and Liability
Act (42 U.S.C. § 9601 et seq.).

Change of Control- means the occurrence of any of the following: (a) the direct
or indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of
the properties or assets of the Parent and the other Obligors, taken as a whole, to any
“person” (as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934);
(b) the adoption by the shareholders of Parent of a plan relating to the liquidation or
dissolution of the Parent; (c) the Parent (by way of a report or any other filing pursuant
to Section 13(d) of the Securities Exchange Act of 1934, proxy, vote, written notice or
otherwise) becomes aware of the acquisition by any “person” or “group” (within the meaning
of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, or any
successor provision), including any group acting for the purpose of acquiring, holding or
disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Securities
Exchange Act of 1934, or any successor provision), other than the Permitted Holders, in a
single transaction or in a series of related transactions, by way of merger, consolidation
or other business combination or purchase of beneficial ownership (within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934, or any successor provision) of 50% or
more of the total voting power of the Voting Stock of the Parent; (d) the first day on which
a majority of the members of the Board of Directors of the Parent are not Continuing
Directors; (e) the Parent consolidates with, or merges with or into, any Person, or any
Person consolidates with, or merges with or into, the Parent, in any such event pursuant to
a transaction in which any of the outstanding Voting Stock of the Parent or such other
Person is converted into or exchanged for cash, securities or other property, other than any
such transaction where (A) the Voting Stock of the Parent outstanding immediately prior to
such transaction is converted into or exchanged for Voting Stock (other than Disqualified
Stock) of the surviving or transferee Person constituting a majority of the voting power of
the outstanding shares of such Voting Stock of such surviving or transferee Person
(immediately after giving effect to such issuance) and (B) immediately after such
transaction, no “person” or “group” (as such terms are used in Section 13(d) and 14(d) of
the Securities Exchange Act of 1934) other than a Permitted Holder becomes, directly or
indirectly, the beneficial owner (within the meaning of Rule 13d-3 under the Securities
Exchange Act of 1934, or any successor provision) of 50% or more of the voting power of the
Voting Stock of the surviving or transferee Person or (f) the failure of (x) Bon-Ton to be a
wholly-owned direct Subsidiary of the Parent or (y) any Borrower (other than Bon-Ton) to be
a wholly-owned indirect Subsidiary of the Parent.

Chattel Paper — as defined in the UCC.

Claims — as defined in Section 14.2.

CAA — the Clean Air Act (42 U.S.C. §7401 et. seq.)

Closing Date — as defined in Section 6.1.

Closing Date Facility Usage Percentage — means the Facility Usage calculated
for the Closing Date (after giving effect to any Loans made, and all Letters of Credit
issued or outstanding, on the Closing Date) divided by the aggregate Commitments on
the Closing Date.

Co-Collateral Agents — as defined in the Preamble.

Co-Collateral Agent Rights Agreement — a letter agreement by and among Agent,
the Co-Collateral Agents and the Obligors setting for the rights of the Co-Collateral Agents
concerning certain matters, substantially in the form of Exhibit G hereto.

 

-7-

 

Co-Documentation Agents — as defined in the Preamble.

Co-Syndication Agents — as defined in the Preamble.

Collateral — all Property described in Section 7.1, all Property described in
any Security Documents as security for any Obligations, and all other Property that now or
hereafter secures (or is intended to secure) any Obligations.

Commercial Tort Claim — as defined in the UCC.

Commitment — for any Lender, the aggregate amount of such Lender’s Tranche A
Revolver Commitment and Tranche A-1 Revolver Commitment. “Commitments” means the
aggregate amount of all Tranche A Revolver Commitments and Tranche A-1 Revolver Commitments.

Commitment Termination Date — the earliest to occur of (a) the Termination
Date; (b) the date on which Borrowers terminate the Commitments pursuant to Section 2.2; or
(c) the date on which the Commitments are terminated pursuant to Section 11.2.

Compliance Certificate — a certificate, substantially in the form of Exhibit D
hereto, by which Borrowers certify compliance with Section 10.3 and calculate the applicable
Level for the Applicable Margin and Unused Line Fee Rate.

Consignment Agreement — a written agreement by the relevant consignor and
consignee Obligor in favor of the Agent, in form and substance reasonably satisfactory to
Agent, expressly acknowledging that (x) such goods are held on consignment and the
consignor thereof retains title to such goods, (y) the consignor of such goods shall
disclaim any interest or Lien it may have in the proceeds of such goods, and (z) consignee
shall segregate such consigned goods from the consignee’s other personal Property.

Consolidated EBITDA — for any period, for the Parent and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period plus
(a) the following to the extent deducted in calculating such Consolidated Net Income: (i)
Consolidated Fixed Charges for such period, (ii) the provision for Federal, state, local and
foreign income taxes of the Parent and its Subsidiaries for such period, (iii) depreciation
and amortization expense, (iv) all cash proceeds of business interruption insurance received
by the Obligors to the extent not included in Consolidated Net Income, (v) non-cash losses
in respect of obligations under Hedging Agreements, (vi) cost savings in connection with any
Permitted Acquisition to the extent (A) actually realized, (B) projected or anticipated and
permitted or required under Regulation S-K under the Securities Laws or Regulation S-X under
the Securities Laws or (C) reasonably expected to be realized (and, in the case of clause
(c), reasonably approved by the Agent as such) within the next four (4) Fiscal Quarters
after such Permitted Acquisition is effected; provided that all such cost savings
shall be set forth in an officer’s certificate from a Senior Officer of the Borrowers in
reasonable detail describing and quantifying such cost savings, (vii) non-cash impairment
charges, asset write-offs or charges due to the disposal of long-lived assets under GAAP to
the extent such impairment charge, asset write-off or charge reduced Consolidated Net
Income, (viii) the cumulative non-cash effect of accounting changes to the extent such
changes result in a reduction of Consolidated Net Income, (ix) any non-cash losses, expenses
or charges reducing Consolidated Net Income, excluding any non-cash charge that, in the
ordinary course of business, results in an accrual of a reserve for cash charges in any
future period, (x) expenses reducing Consolidated Net Income incurred to the extent
reimbursed in cash by indemnification provisions in any agreement in connection with any
Permitted Acquisition and such reimbursed amount was not included within the calculation of

 

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Consolidated
Net Income, (xi) non-cash losses recognized and expenses incurred in connection with the effect of currency and exchange
rate fluctuations on intercompany balances and other balance sheet items, and (xii) other
non-recurring or unusual expenses of the Obligors and their Subsidiaries which are allowed
in accordance with GAAP to be classified as non-recurring or unusual expenses to the extent
reducing such Consolidated Net Income; provided that such expenses shall not exceed
$20,000,000 in any period of four consecutive Fiscal Quarters and minus (b) the
following to the extent included in calculating such Consolidated Net Income: (i) Federal,
state, local and foreign income tax credits of the Parent and its Subsidiaries for such
period, (ii) all non-cash items increasing Consolidated Net Income for such period, (iii)
amounts paid in cash in respect of non-cash charges which were added back to Consolidated
EBITDA in a prior period and (iv) other non-recurring or unusual income of the Obligors and
their Subsidiaries which are allowed in accordance with GAAP to be classified as
non-recurring or unusual income to the extent increasing such Consolidated Net Income and in
excess of $20,000,000 in any period of four consecutive Fiscal Quarters.

Consolidated Fixed Charges — for any period, for the Parent and its
Subsidiaries on a consolidated basis, the sum of cash payments made or required to be made
on a pro forma basis for (a) all scheduled permanent principal payments, interest, premium
payments, debt discount, fees (excluding (x) any fees incurred in connection with the Loan
Documents, including, without limitation, any waiver, amendment, extension, supplement or
other modification with respect thereto, (y) any fees incurred in connection with the
incurrence, creation or assumption by any Obligor or any Subsidiary thereof of any Debt
permitted hereunder, including, without limitation, in connection with any Refinancing of
the Senior Note Debt, and (z) any premium payments in connection with any Refinancing of the
Senior Note Debt), charges and related expenses of the Parent and its Subsidiaries in
connection with Borrowed Money (including capitalized interest) or in connection with the
deferred purchase price of assets, in each case determined in accordance with GAAP, (b) the
portion of rent expense of the Parent and its Subsidiaries with respect to such period under
Capital Leases determined in accordance with GAAP and (c) Distributions made during such
period.

Consolidated Fixed Charge Coverage Ratio — as of any date of determination, the
ratio of (a) the result of (i) Consolidated EBITDA for the four prior Fiscal Quarter period
ending on such date, minus (ii) Capital Expenditures (net of landlord or vendor
contributions for Capital Expenditures) for such period (but not less than zero),
minus (iii) cash Federal, state, local or foreign income taxes (net of tax refunds
in cash) of the Parent and its Subsidiaries paid for such period (but not less than zero),
to (b) Consolidated Fixed Charges for such period.

Consolidated Net Income — for any period, for the Parent and its Subsidiaries
on a consolidated basis, the net income of the Parent and its Subsidiaries (excluding
extraordinary gains and extraordinary losses, in each case determined in accordance with
GAAP) for that period.

Contingent Obligation — any obligation of a Person arising from a guaranty,
indemnity or other assurance of payment or performance of any Debt, lease, dividend or other
obligation (“primary obligations”) of another obligor (“primary obligor”) in
any manner, whether directly or indirectly, including any obligation of such Person under
any (a) guaranty, endorsement, co-making or sale with recourse of an obligation of a primary
obligor; (b) obligation to make take-or-pay or similar payments regardless of nonperformance
by any other party to an agreement; and (c) arrangement (i) to purchase any primary
obligation or security therefor, (ii) to supply funds for the purchase or payment of any
primary obligation, (iii) to maintain or assure working capital, equity capital, net worth
or solvency of the primary obligor, (iv) to purchase Property or services for the purpose of
assuring the ability of the primary obligor to perform a primary obligation, or (v)
otherwise to assure or hold harmless the holder of any primary obligation against loss in
respect thereof; provided that “Contingent Obligation” shall not include any
product warranties given in the ordinary course of business. The amount of any Contingent
Obligation shall be deemed to be the stated or determinable amount of the primary obligation
(or, if less, the maximum amount for which such Person may be liable under the instrument
evidencing the Contingent Obligation) or, if not stated or determinable, the maximum
reasonably anticipated liability with respect thereto.

 

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Continuing Directors — as of any date of determination, those members of the
Board of Directors of the Parent, each of whom: (1) was a member of such Board of Directors
on the Closing Date; or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the then Continuing Directors who were members of such
Board of Directors at the time of such nomination or election.

Convertible Note Debt — unsecured Debt of Bon-Ton and any other Obligor which
may be convertible, exercisable or exchangeable for or into Capital Stock of Bon-Ton or any
other Obligor (other than Disqualified Stock).

Convertible Note Debt Documents — all agreements, instruments and documents
from time to time executed in favor of all or any of the holders of the Convertible Note
Debt.

Copyright Security Agreements — each memorandum of grant of security interest
in copyrights or other copyright security agreement pursuant to which an Obligor grants to
Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in copyrights,
as security for the Obligations.

Credit Card Issuer — collectively (x) MasterCard International, Inc., Visa,
U.S.A., Inc., Visa International and American Express, World Financial Network National Bank
and Discover and (y) HSBC, as issuer of the Borrowers’ private label credit card program,
and any replacement thereof that is reasonably acceptable to Agent.

Credit Card Notification — as defined in Section 6.1(n).

Credit Card Processor — any Person that acts as a credit card clearinghouse or
processor with respect to any sales transactions involving credit card purchases by
customers using credit cards issued by any Credit Card Issuer.

Credit Card Receivables — collectively, all present and future rights of
Obligors to payment from (a) any Credit Card Issuer or Credit Card Processor arising from
sales of goods or rendition of services to customers who have purchased such goods or
services using a credit or debit card and (b) any Credit Card Issuer or Credit Card
Processor in connection with the sale or transfer of Accounts arising pursuant to the sale
of goods or rendition of services to customers who have purchased such goods or services
using a credit card or a debit card, including, but not limited to, all amounts at any time
due or to become due from any Credit Card Issuer or Credit Card Processor under the Credit
Card Notifications or otherwise.

Credit Card Receivables Reserve — reserves, established by Agent in its
reasonable exercise of its credit judgment, to reflect factors that may negatively impact
the value of Credit Card Receivables (including, without limitation, for chargeback or other
accrued liabilities or offsets by Credit Card Processors and amounts to adjust for material
claims, offsets, defenses or counterclaims or other material disputes with an Account
Debtor).

CWA — the Clean Water Act (33 U.S.C. §§ 1251 et seq.).

 

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Debt — as applied to any Person, without duplication, whether or not included
as indebtedness or liabilities in accordance with GAAP (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) all direct or contingent obligations of
such Person arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments; (c) net obligations of
such Person under any Hedging Agreement; (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); (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) Capital
Leases and synthetic lease obligations; (g) all obligations of such Person in respect of
Disqualified Stock; and (h) all Guarantees of such Person in respect of any of the
foregoing. For all purposes hereof, the Debt of any Person shall include the Debt of any
partnership or joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a general partner or a joint venturer,
unless such Debt is expressly made non-recourse to such Person.

Default — an event or condition that, with the lapse of time or giving of
notice, would constitute an Event of Default.

Default Rate — for any Obligation (including, to the extent permitted by law,
interest not paid when due), 2% plus the interest rate otherwise applicable thereto.

Defaulting Lender — any Lender that (a) has failed to fund any portion of the
Loans or any payment in respect of an LC Obligation required to be funded by it hereunder
within one Business Day of the date required to be funded by it hereunder unless such
failure has been cured, (b) has otherwise failed to pay over to any Agent or any other
Lender any other amount required to be paid by it hereunder within one Business Day of the
date when due unless the subject of a good faith dispute or unless such failure has been
cured, (c) has been deemed insolvent or become the subject of an Insolvency Proceeding, (d)
with respect to which the Agent or any Issuing Bank has a good faith belief that such Lender
has defaulted in fulfilling its obligations under one or more other syndicated credit
facilities or (e) with respect to which an entity that controls such Lender has been deemed
insolvent or become subject to an Insolvency Proceeding.

Deposit Account — as defined in the UCC.

Disqualified Institution — a business competitor of the Borrowers and their
Subsidiaries identified by the Borrower Agent in its reasonable discretion and in writing to
the Agent from time to time, and any Persons known by Agent to be an Affiliate of such
competitor.

Disqualified Stock - any Capital Stock that, by its terms (or by the terms of
any security into which it is convertible, or for which it is exchangeable, in each case at
the option of the holder thereof), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at
the option of the holder thereof, in whole or in part, on or prior to the date that is six
months after the Termination Date. Notwithstanding the preceding sentence, any Capital
Stock that would constitute Disqualified Stock solely because the holders thereof have the
right to require the Parent to repurchase such Capital Stock upon the occurrence of a change
of control or an asset sale shall not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Parent may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption complies with Section
10.2.4. The term “Disqualified Stock” shall also include any options, warrants or other
rights that are convertible into Disqualified Stock or that are redeemable at the option of
the holder, or required to be redeemed, prior to the date that is six
months after the Termination Date.

 

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Distribution — any declaration or payment of a distribution, interest or
dividend on any Equity Interest (other than payment-in-kind); any distribution, advance or
repayment of Debt to a holder of Equity Interests; or any purchase, redemption, or other
acquisition or retirement for value of any Equity Interest.

Distribution Center — the warehouse and distribution facilities operated by the
Obligors and located at 3585 S. Church Street, Whitehall, Pennsylvania, 1340 East
Dayton-Yellow Springs Road, Fairborn, Ohio, 4650 Shepard Trial, Rockford, Illinois and 1835
Jefferson Avenue, Naperville, Illinois, and any other warehouse and distribution facilities
operated by the Borrowers.

Document — as defined in the UCC.

Dollars — lawful money of the United States.

Dominion Account — each special account established by Borrowers at Bank of
America or another bank reasonably acceptable to Agent, over which Agent has exclusive
control for withdrawal purposes.

Eligible Assignee — a Person that is (a) a Lender, U.S.-based Affiliate of a
Lender or Approved Fund; (b) any other financial institution approved by Agent (such
approval not to be unreasonably withheld or delayed) and, so long as no Event of Default
under Section 11.1(a) or Section 11.1(k) has occurred and is continuing, Borrower Agent
(which approval by Borrower Agent shall not be unreasonably withheld or delayed, and shall
be deemed given if no objection is made within two Business Days after notice of the
proposed assignment), that is organized under the laws of the United States or any state or
district thereof, has total assets in excess of $5 billion, extends asset-based lending
facilities in its ordinary course of business and whose becoming an assignee would not
constitute a prohibited transaction under Section 4975 of ERISA or any other Applicable Law;
provided that the foregoing criteria in this clause (b) may be waived pursuant to
the written approval of both of Agent and Borrower Agent; and (c) during any Event of
Default under Section 11.1(a) or Section 11.1(k), any Person acceptable to Agent in its
discretion; provided that notwithstanding the foregoing, “Eligible Assignee” shall
not include (i) any Obligor or any Affiliate or Subsidiary of any Obligor and (ii) any
Disqualified Institution who is identified by the Borrower Agent as such prior to an
assignment.

Eligible Credit Card Accounts — at the time of any determination thereof, each
Credit Card Receivable that satisfies the following criteria at the time of creation and
continues to meet the same at the time of such determination: such Credit Card Receivable
has been earned by performance and represents the bona fide amounts due to a Borrower from
a Credit Card Processor and/or Credit Card Issuer, and in each case originated in the
ordinary course of business of such Borrower. Without limiting the foregoing, to qualify
as an Eligible Credit Card Account, an Account shall indicate no Person other than a
Borrower as payee or remittance party. In determining the amount to be so included, the
face amount of an Account shall be reduced by, without duplication, to the extent not
reflected in such face amount, (i) the amount of all accrued and actual discounts, claims,

 

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credits or credits pending, promotional program allowances, price adjustments, finance
charges or other allowances (including any amount that a Borrower may be obligated to
rebate to a customer, a Credit Card Processor or Credit Card Issuer pursuant to the terms
of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all
cash received in respect of such Account but not yet applied by the Obligors to reduce the
amount of such Credit Card Receivable. Any Credit Card Receivables meeting the foregoing
criteria shall be deemed Eligible Credit Card Accounts but only as long as such Credit
Card Receivable is not included within any of the following categories, in which case
such Credit Card Receivable shall not constitute an Eligible Credit Card Account:

(a) Credit Card Receivables which do not constitute an “Account” (as defined in the
UCC);

(b) Credit Card Receivables due from Credit Card Processors that have been outstanding
for more than five (5) Business Days from the date of sale;

(c) Credit Card Receivables that are not denominated in U.S. dollars;

(d) Credit Card Receivables with respect to which the Borrowers do not have good,
valid and marketable title thereto;

(e) Credit Card Receivables due from Credit Card Processors or Credit Card Issuers
that (i) are not subject to a first priority (other than Permitted Liens permitted pursuant
to any of clauses (c), (d), (f), (o), (t), (u), (w) or (x) of such definition and entitled
to priority under Applicable Law) perfected security interest in favor of Agent for the
benefit of the Secured Parties or (ii) are subject to any Liens except for (x) Liens in
favor of the Agent and (y) Liens permitted pursuant to clauses (c) through (x) of Section
10.2.2, so long as such Liens (other than Permitted Liens entitled to priority under
Applicable Law) are junior to the Liens granted to Agent;

(f) Credit Card Receivables due from Credit Card Processors or Credit Card Issuers
which are disputed between a Borrower and a Credit Card Processor or Credit Card Issuers,
or with respect to which a claim, counterclaim, offset or chargeback has been asserted, by
the related Credit Card Processor or Credit Card Issuers (but only to the extent of such
dispute, claim, counterclaim, offset or chargeback);

(g) Credit Card Receivables due from Credit Card Processors or Credit Card Issuers as
to which the Credit Card Processor or the Credit Card Issuers has the right under certain
circumstances to require the Borrowers to repurchase such Accounts from such Credit Card
Processor or such Credit Card Issuers;

(h) Except as otherwise approved by Agent, Credit Card Receivables due from Credit
Card Processors or Credit Card Issuers as to which the Agent has not received a Credit Card
Notification;

(i) Credit Card Receivables due from a Credit Card Processor or Credit Card Issuer of
the applicable credit card which is the subject of any proceeding under any debtor relief
law;

(j) Credit Card Receivables which are not a valid, legally enforceable obligation of
the applicable Credit Card Processor or Credit Card Issuer with respect thereto;

(k) 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 Agent, and
to the extent necessary or appropriate as reasonably determined by the Agent, endorsed to
Agent; or

(l) Credit Card Receivables due from Credit Card Issuers or Credit Card Processors
which Agent determines, in its reasonable credit judgment, to be unlikely to be collected.

 

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Notwithstanding the above, Agent reserves the right, at any time and from time to time
after the Closing Date, to adjust the criteria set forth above, to establish new criteria
and to adjust the applicable advance rate with respect to Eligible Credit Card Accounts, in
its reasonable credit judgment, subject to the approval of the Supermajority Lenders in the
case of adjustments of criteria or establishment of new criteria which have the effect of
making more credit available or subject to the approval of all Lenders (except Defaulting
Lenders as provided in Section 4.2) in the case of changes in the applicable advance rates
which have the effect of making more credit available.

Eligible Inventory — Inventory owned by a Borrower that Agent, in its
reasonable credit judgment, deems, based on (i) the most recent Borrowing Base Certificate
delivered to Agent, (ii) the salability, at retail, of such Inventory (valued at the lower
of cost or market), (iii) such other factors as affect the marketability of such Inventory
and (iv) other information available to Agent, in its reasonable credit judgment, to be
“Eligible Inventory” for purposes of this Loan Agreement. Without limiting the foregoing,
no Inventory shall be Eligible Inventory unless (a) it is finished goods and not
work-in-process, raw materials, packaging or shipping materials, labels, samples, display
items, bags, replacement parts or manufacturing supplies; (b) it is not held on consignment;
(c) it is in new and saleable condition and is not damaged, defective, shopworn or otherwise
unfit for sale; (d) it is not slow-moving, obsolete or unmerchantable, and does not
constitute returned to vendor or repossessed goods; (e) to the knowledge of the Obligors it
meets all standards imposed by any Governmental Authority, and does not constitute hazardous
materials under any Environmental Law; (f) [reserved]; (g) it is (unless such Inventory
constitutes Eligible L/C Inventory) subject to Agent’s duly perfected, first priority Lien,
and is free and clear from all Liens or rights of any person (including, without limitation,
the rights of any purchaser that has made progress payments and the rights of any surety
that has issued a bond to assure such Borrower’s performance with respect to the Inventory)
except (x) Agent and the Lenders and (y) Liens permitted pursuant to clauses (c) through (w)
of Section 10.2.2, so long as such Liens (other than Permitted Liens permitted pursuant to
any of clauses (c), (d), (f), (o), (t), (u) or (w) of such definition and entitled to
priority under Applicable Law) are junior to the Liens granted to Agent and the Lenders; (h)
it is within the continental United States, is not in transit except between locations of
Borrowers where such locations are in compliance with the provisions of clause (k) below
(unless such Inventory constitutes Eligible In-Transit Inventory or Eligible L/C Inventory)
and is not consigned to any Person; (i) it is not subject to any warehouse receipt or
negotiable Document unless such document has been delivered to the Agent or other Persons
acceptable to it with all necessary endorsements free and clear of all Liens other than (x)
Liens in Agent’s favor and (y) Liens permitted pursuant to clauses (c) through (w) of
Section 10.2.2, so long as such Liens (other than Permitted Liens permitted pursuant to any
of clauses (c), (d), (f), (o), (t), (u) or (w) of such definition and entitled to priority
under Applicable Law) are junior to the Liens granted to Agent and the Lenders; (j) if it
has a value exceeding $500,000 in the aggregate, it is not subject to any License or other
arrangement that restricts such Borrower’s or Agent’s right to dispose of such Inventory,
unless Agent has received an appropriate Lien Waiver; (k) it is not located on leased
premises (1) consisting of a Large Inventory Location or (2) located in a Landlord Lien
State, or in the possession of a warehouseman, processor, repairman, mechanic, shipper,
freight forwarder or other Person unless, in each case, the lessor or such Person has
delivered a Lien Waiver or an appropriate Rent and Charges Reserve has been established; (l)
it is reflected in the details of the current inventory stock ledger of the applicable
Borrower; (m) it is of a type held for sale in the ordinary course of such Borrower’s
business; (n) the representations or warranties pertaining to Inventory set forth in this
Loan Agreement and the other Loan Documents are true in all material respects as to such
Inventory; (o) it does not consist of any costs associated with advertising load or unearned
discounts; and (p) it is covered by casualty insurance reasonably acceptable to Agent.

 

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Eligible In-Transit Inventory — means without duplication of other Eligible
Inventory, all
finished goods Inventory (valued at the lower of cost or market) owned by Borrowers,
not covered by Letters of Credit, which Inventory (a) is located in the continental United
States and in transit to one of the Borrower’s facilities and which Inventory (i) is owned
by a Borrower and either (A) has been paid for with a draw of an Eligible Trade L/C by a
Borrower or (B) payment for which is not yet due and has not yet been paid for by a Borrower
but which is located at one of the Borrower’s distribution facilities and has not yet been
recorded on a Borrower’s inventory stock ledger in the ordinary course; (ii) is fully
insured; (iii) is subject to a first priority security interest in and Lien upon such goods
in favor of Agent (except for any possessory Lien upon such goods in the possession of a
freight carrier or shipping company securing only the freight charges for the transportation
of such goods to such Borrower); (iv) is evidenced or deliverable pursuant to Documents that
have been delivered to Agent or an agent acting on its behalf pursuant to a Lien Waiver or
designating Agent as consignee; and (v) is otherwise “Eligible Inventory” hereunder; or (b)
is in transit for not more than forty (40) days directly from a point of shipment outside of
the continental United States to one of the Obligors’ owned or leased locations within the
continental United States, provided that, with respect to this clause (b), (i) a
Borrower has title to such Inventory, and either (X) such Inventory is not subject to a
negotiable bill of lading or other document of title and the shipping documents relating to
such Inventory (including, without limitation, so-called “forwarders cargo receipts” or
“non-negotiable express bills of lading”) reasonably acceptable to the Agent have been
delivered to the Agent or an agent acting on behalf of the Agent and such shipping documents
name a Borrower as consignee and shipper (or such other arrangements reasonably satisfactory
to the Agent relating to such shipping documents in respect of such Inventory shall have
been made) or (Y) in the event such Inventory is subject to negotiable bills of lading or
other documents of title, such negotiable bills of lading or other documents of title have
been (1) upon the request of the Agent, issued with the Agent as consignee and a Borrower as
shipper and (2) delivered to the Agent or an agent acting on behalf of the Agent (or such
other arrangements reasonably satisfactory to the Agent relating to such negotiable bills of
lading or other documents of title in respect of such Inventory shall have been made), (iii)
such Inventory is subject, to the reasonable satisfaction of Agent, to a first priority
perfected security interest in favor of Agent, (iv) at the request of Agent, the vendor or
the supplier of such Inventory has agreed to waive its claims in or to such Inventory
(including any right to stop such Inventory in transit), in a manner reasonably acceptable
to Agent, once such Inventory is delivered to a freight forwarder or other representative of
the Borrowers who has entered into an agreement of the type described in clause (vi) below,
(v) such Inventory is covered by insurance reasonably acceptable to Agent, (vi) at the
request of the Agent, each relevant freight carrier, freight forwarder, customs broker and
shipping company in possession of such in-transit Inventory shall have (A) entered into
bailee arrangements reasonably satisfactory to Agent and (B) indicated or otherwise
acknowledged Agent’s security interest in such Inventory and in any shipping documents
issued or carried by such freight carrier or shipping company (including, without
limitation, waybills, airway bills, seaway bills, receipts, or any similar document), in
each case, in a manner reasonably satisfactory to Agent, and (vii) such Inventory would
otherwise satisfy all of the requirements of “Eligible Inventory” hereunder.
Notwithstanding the foregoing, in no event shall the Aggregate Borrowing Base comprised of
Eligible In-Transit Inventory under clause (b) above exceed $15,000,000.

Eligible L/C Inventory — as of any date of determination, without duplication
of other Eligible Inventory, all finished goods Inventory (valued at the lower of cost or
market) covered by an Eligible Trade L/C issued for the account of a Borrower, which
inventory (a) meets all of the requirements for Eligible Inventory, (b) will be Eligible
In-Transit Inventory upon a draw of the subject Eligible Trade Letter of Credit, and (c)
will be received by a Borrower in the United States not later than 90 days from the date of
determination (as determined by the Borrowers consistent with their past practices).

 

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Eligible Real Estate — Real Estate owned by a Borrower described on Schedule
7.3 (as
may be updated pursuant to, and in accordance with, Section 7.3) and which Agent, in
its reasonable discretion, deems to be Eligible Real Estate. Without limiting the
generality of the foregoing, no Real Estate shall be Eligible Real Estate unless: (a) it is
located in the United States; (b) it is subject to Agent’s duly perfected, first priority
Lien, and no other Lien except Permitted Liens; (c) it is subject to a title insurance
policy reasonably acceptable to Agent and Agent has received title searches, reasonably
acceptable to it, with respect to such Real Estate; (d) it has been appraised by a third
party appraiser reasonably acceptable to Agent; (e) Agent has received an environmental site
assessment of such Real Estate reasonably acceptable to Agent, which such environmental site
assessment shall include Phase I reports and, if requested by Agent, Phase II reports; (f)
if requested by Agent, Agent has received estoppel agreements reasonably acceptable to
Agent, from ground lessors; (g) Agent has received all other Related Real Estate Documents
requested by it with respect to such Real Estate and such Related Real Estate Documents are
reasonably satisfactory to Agent and (h) such Real Estate is improved by fully constructed
buildings occupied by a Borrower or a Guarantor. Notwithstanding anything to the contrary
contained herein, no Real Estate shall be “Eligible Real Estate” until such time as the
Eligible Real Estate Conditions have been satisfied to the reasonable satisfaction of the
Agent.

Eligible Real Estate Conditions. Agent shall have received (i) an executed
mortgage amendment, in form and substance reasonably acceptable to the Agent, for Real
Estate which is subject to a Mortgage on the Closing Date and set forth on Schedule 7.3A,
(ii) a written opinion of local counsel relating to each mortgage amendment delivered
pursuant to the foregoing subclause (i) and with respect to such other matters as the Agent
may reasonably request, in each case, in form and substance reasonably acceptable to the
Agent, (iii) title insurance bringdowns and endorsements for all Real Estate subject to a
Mortgage on the Closing Date, in form and substance reasonably acceptable to the Agent, (iv)
flood zone determinations and, if applicable, evidence of flood zone insurance for all Real
Estate subject to a Mortgage on the Closing Date, in form and substance reasonably
acceptable to the Agent, (v) an updated appraisal of the Real Estate which is subject to a
Mortgage, prepared by an appraiser reasonably acceptable to Agent, and in form and substance
satisfactory to the Agent and (vi) such other Related Real Estate Documents (including
environmental reports and Environmental Agreements) as may be reasonably requested by the
Agent, all in form and substance reasonably satisfactory to the Agent.

Eligible Trade L/C — any Letter of Credit issued in compliance with Section
2.3.1(e) for payment of the purchase price of finished good Inventory which will be Eligible
In-Transit Inventory upon presentation of a draft under such Letter of Credit.

Enforcement Action — any rightful action to enforce any Obligations or Loan
Documents or to realize upon any Collateral (whether by judicial action, self-help,
notification of Account Debtors, exercise of setoff or recoupment, or otherwise).

Environmental Agreement — each agreement of Obligors with respect to any Real
Estate subject to a Mortgage, pursuant to which Obligors agree to indemnify and hold
harmless Agent and Lenders from liability under any Environmental Laws, except for liability
caused by any actions of Agent or the Lenders which are in violation of the Environmental
Laws.

Environmental Laws — all Requirements of Applicable Law and Permits imposing
liability or standards of conduct for or relating to the regulation and protection of human
health (as it relates to exposure to Hazardous Materials), employee safety, the environment
and natural resources, including CERCLA, the SDWA, the Hazardous Materials Transportation
Act (49 U.S.C. §§ 5101 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. §§ 136 et seq.), the Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.), the
Clean Air Act (42 U.S.C. §§ 7401 et seq.), the Federal Water Pollution Control Act (33
U.S.C. §§ 1251 et seq.), the Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.),
the Safe Drinking Water Act (42
U.S.C. §§ 300(f) et seq.), all regulations promulgated under any of the foregoing, all
analogous Requirements of Applicable Law and Permits and any environmental transfer of
ownership notification or approval statutes.

 

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Environmental Liabilities — all Liabilities (including costs of Remedial
Actions, natural resources damages and costs and expenses of investigation and feasibility
studies) that may be imposed on, incurred by or asserted against any Obligors as a result
of, or related to, any claim, suit, action, investigation, proceeding or demand by any
Person, whether based in contract, tort, implied or express warranty, strict liability,
criminal or civil statute or common law or otherwise, arising under any Environmental Law or
in connection with any environmental condition or with any Environmental Release and
resulting from the ownership, lease, sublease or other operation or occupation of property
by any Obligors, whether on, prior or after the date hereof.

Environmental Notice — a notice (whether written or oral) from any Governmental
Authority or other Person of any possible noncompliance with, investigation of a possible
violation of, litigation relating to, or potential fine or liability under any Environmental
Law, or with respect to any Environmental Release, environmental pollution or hazardous
materials, including any complaint, summons, citation, order, claim, demand or request for
correction, remediation or otherwise.

Environmental Release — a release of a Hazardous Material as defined in CERCLA,
RCRA, or under any other Environmental Law.

Equipment — as defined in the UCC, including all machinery, apparatus,
equipment, fittings, furniture, fixtures, motor vehicles and other tangible personal
Property (other than Inventory), and all parts, accessories and special tools therefor, and
accessions thereto and, in any event, including all such Person’s machinery and equipment,
including processing equipment, conveyors, machine tools, data processing and computer
equipment including embedded software and peripheral equipment and all engineering,
processing and manufacturing equipment, office machinery, furniture, materials handling
equipment, tools, attachments, accessories, automotive equipment, trailers, trucks,
forklifts, molds, dies, stamps, motor vehicles, rolling stock and other equipment of every
kind and nature, trade fixtures and fixtures not forming a part of real property, together
with all additions and accessions thereto, replacements therefor, all parts therefor, all
substitutes for any of the foregoing, fuel therefor, and all manuals, drawings,
instructions, warranties and rights with respect thereto, and all products and proceeds
thereof and condemnation awards and insurance proceeds with respect thereto.

Equity Interest — the interest of any (a) shareholder in a corporation, (b)
partner in a partnership (whether general, limited, limited liability or joint venture), (c)
member in a limited liability company, or (d) other Person having any other form of equity
security or ownership interest.

ERISA — the Employee Retirement Income Security Act of 1974.

Event of Default — as defined in Section 11.

Excess Availability — determined as of any date, the result of (a) the lesser
of (i) the aggregate Commitments at such time and (ii) the Aggregate Borrowing Base at such
time minus (b) the Facility Usage at such time.

Excess Availability Trigger Event — the first date on which Excess Availability
for five (5) consecutive Business Days is less than the greater of (i) $65,000,000 or (ii)
15% of the lesser of (x) the aggregate Commitments at such time and (y) the Aggregate
Borrowing Base at such time.

 

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Excess Availability Trigger Period — any period (a) commencing upon the
occurrence of a Excess Availability Trigger Event and (ii) ending on the date that Excess
Availability for a period of sixty (60) consecutive calendar days exceeds the greater of (i)
$65,000,000 or (ii) 15% of the lesser of (x) the aggregate Commitments at such time and (y)
the Aggregate Borrowing Base at such time.

Excluded Tax — means (i) Taxes on the net income or gross receipts of a Lender
or any franchise or capital stock Tax, (ii) branch profits Taxes imposed by the United
States of America or any similar Tax imposed by any other jurisdiction, and (iii) any
withholding Tax imposed on Foreign Lender as a result of such Foreign Lender’s failure to
comply with Sections 1471 through 1474 of the IRC, or any applicable Treasury regulation
promulgated thereunder or published administrative guidance implementing such law.

Existing Credit Agreement — that certain Amended and Restated Loan and Security
Agreement, dated December 4, 2009, by and among The Bon-Ton Department Stores, Inc. and the
other obligors party thereto, the lenders party thereto, Bank of America, N.A. as the agent,
Banc of America Securities LLC, GE Capital Markets, Inc., and Wells Fargo Capital Finance,
LLC (f/k/a Wells Fargo Retail Finance, LLC) as joint lead arrangers and joint book runners,
General Electric Capital Corporation and Wells Fargo Retail Finance, LLC, as co-syndication
agents and Regions Bank, as documentation agent, as amended and in effect from time to time.

Extraordinary Expenses — all reasonable and documented out-of-pocket costs,
expenses or advances that Agent or any Co-Collateral Agent may incur during the occurrence
and continuance of a Default or Event of Default, or during the pendency of an Insolvency
Proceeding of an Obligor, including those relating to (a) any audit, inspection,
repossession, storage, repair, appraisal, insurance, manufacture, preparation or advertising
for sale, sale, collection, or other preservation of or realization upon any Collateral; (b)
any action, arbitration or other proceeding (whether instituted by or against Agent, any
Lender, any Obligor, any representative of creditors of an Obligor or any other Person) in
any way relating to any Collateral (including the validity, perfection, priority or
avoidability of Agent’s Liens with respect to any Collateral), Loan Documents or
Obligations, including any lender liability or other Claims; (c) the exercise, protection or
enforcement of any rights or remedies of Agent in, or the monitoring of, any Insolvency
Proceeding; (d) settlement or satisfaction of any taxes, charges or Liens with respect to
any Collateral; (e) any Enforcement Action; (f) negotiation and documentation of any
modification, waiver, workout, restructuring or forbearance with respect to any Loan
Documents or Obligations; or (g) Protective Advances. Such costs, expenses and advances
include transfer fees, taxes, storage fees, insurance costs, permit fees, utility
reservation and standby fees, legal fees, financial advisor fees, appraisal fees, brokers’
fees and commissions, auctioneers’ fees and commissions, accountants’ fees, environmental
study fees, wages and salaries paid to employees of any Obligor or independent contractors
in liquidating any Collateral, and travel expenses.

Facility Usage — means, at any time, the sum of the outstanding principal
amount of all Loans at such time and the aggregate amount of LC Obligations outstanding at
such time.

Facility Usage Percentage — means, for any Fiscal Quarter, the quotient
(expressed as a percentage) of the average daily total Facility Usage during such Fiscal
Quarter divided by the average daily aggregate Commitments during such Fiscal
Quarter.

 

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Federal Funds Rate — for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New
York on the Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary,
to a whole multiple of 1/100 of 1%) charged to Bank of America, N.A. on such day on such
transactions as reasonably determined by the Agent.

Fee Letter — the fee letter agreement among Agent, MLPFS, and certain of the
Borrowers.

Fiscal Quarter — each successive period of thirteen weeks, commencing on the
first day of a Fiscal Year.

Fiscal Total Stores — in respect of any Fiscal Year, an amount of Stores equal
to the sum of (x) the aggregate number of Stores open on the first Business Day of such
Fiscal Year, plus (y) the aggregate number of Stores acquired or opened during such
Fiscal Year.

Fiscal Year — the fiscal year of Parent and Subsidiaries, for accounting and
tax purposes, which is the 52 or 53 week period ending on the Saturday nearer January 31 of
each calendar year (e.g., a reference to fiscal 2009 is a reference to the fiscal year ended
January 30, 2010).

Fixtures — as such term is defined in the UCC, now owned or hereafter acquired
by any Obligor located at a parcel of Real Estate subject to a Mortgage.

FLSA — the Fair Labor Standards Act of 1938, as amended.

Force Majeure — an event or force beyond the reasonable control of the
Obligors, including, without limitation, acts of God, acts of public enemy, terrorism, wars,
riots and civil disturbances, explosions, epidemics, natural disasters, fires, vandalism,
strikes, lock-outs or other labor difficulties, embargoes, shortages or unavailability of
materials, supplies, labor, equipment or systems, or fuel or energy shortage.

Foreign Lender — any Lender that is organized under the laws of a jurisdiction
other than the laws of the United States, or any state or district thereof.

Foreign Plan — any employee benefit plan or arrangement maintained or
contributed to by any Obligor or Subsidiary that is not subject to the laws of the United
States, or any employee benefit plan or arrangement mandated by a government other than the
United States for employees of any Obligor or Subsidiary.

Foreign Subsidiary — a Subsidiary that is a “controlled foreign corporation”
under Section 957 of the Internal Revenue Code, such that a guaranty by such Subsidiary of
the Obligations or a Lien on the assets of such Subsidiary to secure the Obligations would
result in tax liability to the Obligors.

Fronting Exposure. At any time there is a Defaulting Lender, (a) with respect
to the Issuing Bank, such Defaulting Lender’s Pro Rata share of the outstanding LC
Obligations other than LC Obligations as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in accordance with
the terms hereof, and (b) with respect to the Agent in its capacity as a lender of Swingline
Loans, such Defaulting Lender’s Pro Rata share of Swingline Loans other than Swingline Loans
as to which such Defaulting Lender’s participation obligation has been reallocated to other
Lenders or Cash Collateralized in accordance with the terms hereof.

 

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Full Payment — with respect to any Obligations, (a) the full and indefeasible
cash payment thereof (other than contingent indemnification Obligations with respect to
which no claim has been asserted in writing), including any interest, fees and other charges
accruing during an Insolvency Proceeding (whether or not allowed in the proceeding); and (b)
if such Obligations are LC Obligations or inchoate or contingent in nature (other than
contingent indemnification Obligations with respect to which no claim has been asserted in
writing), Cash Collateralization thereof (or delivery of a standby letter of credit
acceptable to Agent in its reasonable discretion, in the amount of required Cash
Collateral). No Loans shall be deemed to have been paid in full until all Commitments
related to such Loans have expired or been terminated.

Fund — any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its activities.

GAAP — subject to Section 1.2, generally accepted accounting principles in the
United States in effect from time to time.

General Intangibles — as defined in the UCC, including choses in action, causes
of action, company or other business records, inventions, blueprints, designs, patents,
patent applications, trademarks, trademark applications, trade names, trade secrets, service
marks, goodwill, brand names, copyrights, registrations, licenses, franchises, customer
lists, permits, tax refund claims, computer programs, operational manuals, internet
addresses and domain names, insurance refunds and premium rebates, all rights to
indemnification, contract rights and all other intangible Property of any kind.

Goods — as defined in the UCC.

Governmental Approvals — all authorizations, consents, Permit, approvals,
licenses and exemptions of, registrations and filings with, and required reports to, all
Governmental Authorities.

Governmental Authority — any federal, state, municipal, foreign or other
governmental department, agency, commission, board, bureau, court, tribunal,
instrumentality, political subdivision, or other entity or officer exercising executive,
legislative, judicial, regulatory or administrative functions for or pertaining to any
government or court, in each case whether associated with the United States, a state,
district or territory thereof, or a foreign entity or government.

Guarantor Payment — as defined in Section 5.10.3.

Guarantors — each of (a) the Parent, (b) The Bon-Ton Giftco, Inc., (c) The
Bon-Ton Trade, LLC, (d) Lancaster and (e) each other Person who guarantees payment or
performance of any Obligations.

Guaranty — each guaranty agreement executed by a Guarantor in favor of Agent,
substantially in the form of Exhibit F hereto.

Hazardous Material — any substance, material or waste that is classified,
regulated or otherwise characterized under any Environmental Law as hazardous, toxic, a
contaminant or a pollutant or by other words of similar meaning or regulatory effect,
including petroleum or any fraction thereof, asbestos, polychlorinated biphenyls and
radioactive substances.

Hedging Agreement — an agreement relating to any swap, cap, floor, collar,
option, forward, cross right or obligation, or combination thereof or similar transaction,
with respect to interest rate, foreign exchange, currency, commodity, credit or equity risk.

 

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Increase Effective Date — as defined in Section 2.4.1.

Increasing Lender — as defined in Section 2.4.1.

Indemnitees — Agent Indemnitees, Lender Indemnitees, Issuing Bank Indemnitees
and Bank of America Indemnitees.

Insolvency Proceeding — any case or proceeding commenced by or against a Person
under any state, federal or foreign law for, or any agreement of such Person to, (a) the
entry of an order for relief under the Bankruptcy Code, or any other insolvency, debtor
relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator,
administrator, conservator or other custodian for such Person or any part of its Property;
or (c) an assignment or trust mortgage for the benefit of creditors.

Instrument — as defined in the UCC.

Intellectual Property — all intellectual and similar Property of a Person,
including inventions, designs, patents, patent applications, copyrights, trademarks, service
marks, trade names, trade secrets, confidential or proprietary information, customer lists,
know-how, software and databases; all embodiments or fixations thereof and all related
documentation, registrations and franchises; all books and records describing or used in
connection with the foregoing; and all licenses or other rights to use any of the foregoing.

Intellectual Property Claim — any claim or assertion (whether in writing, by
suit or otherwise) that the Parent or any Subsidiary’s ownership, use, marketing, sale or
distribution of any Inventory, Equipment, Intellectual Property or other Property violates
another Person’s Intellectual Property.

Interest Period — as defined in Section 3.1.3.

Inventory — as defined in the UCC, including all goods intended for sale,
lease, display or demonstration; all work in process; and all raw materials, and other
materials and supplies of any kind that are or could be used in connection with the
manufacture, printing, packing, shipping, advertising, sale, lease or furnishing of such
goods, or otherwise used or consumed in such Person’s business (but excluding Equipment).

Inventory Reserve — reserves, established by Agent, based on the most recent
appraisal of Borrowers’ Inventory performed by an appraiser and on terms reasonably
satisfactory to Agent and the most recent commercial finance exam of the Borrowers’ books
and records performed by an examiner and on terms reasonably satisfactory to Agent, to
reflect factors that may negatively impact the Value of Inventory, including change in
salability, obsolescence, seasonality, theft, shrinkage, damage, customer credit
liabilities, imbalance, change in composition or mix, markdowns, vendor chargebacks and with
respect to Eligible Inventory that has been subject to a Letter of Credit for a period in
excess of ninety (90) days.

Investment — any (a) acquisition of all or substantially all assets of, or any
line of business or division of, a Person; (b) acquisition of record or beneficial ownership
of any Equity Interests of a Person; (c) any advance or capital contribution to, guarantee
or assumption of debt of, or purchase or other acquisition of any other debt or equity
participation or interest in, another Person, including any partnership or joint venture
interest in such other Person and any arrangement pursuant to which the investor guarantees
Debt of such other Person, or (d) other investment in a Person. For purposes of the Loan
Documents, the outstanding amount of any Investment made by any Person at any time shall be calculated as the excess of the
initial amount of such Investment made by such Person (including the fair market value of
all property transferred by such Person as part of such Investment) over all returns
of principal or capital thereof received in cash on or prior to such time by such Person
(including all cash dividends, cash distributions and cash repayments of Debt received by
such Person).

 

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Investment Property — as defined in the UCC.

IRC — means the Internal Revenue Code of 1986, as amended, and any successor
thereto.

ISP — with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or
such later version thereof as may be in effect at the time of issuance).

Issuing Bank — (a) Bank of America or an Affiliate of Bank of America, Wells
Fargo Bank, N.A. or an Affiliate of Wells Fargo Bank, N.A. or any other Lender or an
Affiliate of such Lender, and any other Person designated by a Lender (and acceptable to the
Borrower Agent), in each case, in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder and (b) with respect to the Letters of
Credit issued by such issuer prior to the Closing Date and described on Schedule 2.3.2, and
with respect to any other Letters of Credit issued by such Issuing Bank.

Issuing Bank Indemnitees — each Issuing Bank and its officers, directors,
employees, Affiliates, agents, advisors and attorneys.

Joint Lead Arrangers — as defined in the Preamble.

Junior Debt — the Debt permitted by Section 10.2.1(k) and any Refinancing Debt
thereof which satisfies the Refinancing Conditions.

Junior Debt Documents — collectively, the documents (including, without
limitation, the Junior Debt Intercreditor Agreement, all guaranties and security documents),
agreements, filings and certificates entered into by the Obligors or their Subsidiaries from
time to time in favor of the holders of the Junior Debt, in form and substance reasonably
satisfactory to the Agent, as any of the same may be amended, restated, supplemented,
modified, renewed, replaced or Refinanced in whole or in part from time to time, and any
other agreement extending the maturity of, consolidating, otherwise restructuring, renewing,
replacing or Refinancing all or any portion of the Junior Debt, and whether by the same or
any other agent, lender or group of lenders and whether or not increasing the amount of
Junior Debt that may be incurred thereunder, in each case in a manner not inconsistent with
this Agreement.

Junior Debt Intercreditor Agreement — an intercreditor agreement reasonably
satisfactory to the Agent and the Co-Collateral Agents to be entered into between the Agent
and the Junior Lien Agent, as the same may be amended, restated, supplemented, modified,
renewed or replaced in whole or in part from time to time, in each case in a manner not
inconsistent with the Loan Documents and with the consent of the Co-Collateral Agents.

Junior Lien Affiliate — with respect to any Junior Lien Lender or the Junior
Lien Agent, another Person who directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such Junior Lien Lender or the
Junior Lien Agent, as the case may be.

Junior Lien Agent — the administrative and/or collateral agent or any lender
serving in such capacity, as applicable, for any Junior Debt secured by Junior Liens under
the Junior Debt Documents, and its successors and permitted assigns in such capacity.

 

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Junior Liens — Liens on assets of the Obligors that are subordinated in all
respects to the Liens securing the Obligations pursuant to the Junior Debt Intercreditor
Agreement (it being understood that Junior Liens are not required to be pari passu with
other Junior Liens, and that Debt secured by Junior Liens may have Liens that are senior in
priority to, or pari passu with, or junior in priority to, other Liens constituting Junior
Liens).

Lancaster — as defined in Section 1.7.

Landlord Lien State — (i) the states of Washington, Virginia, Pennsylvania and
(ii) such other state(s) or jurisdictions in which a landlord’s claim for rent or other
obligations has priority over the Lien of Agent in any of the Collateral.

Large Inventory Location — any distribution center (including each Distribution
Center), warehouse, cross-docking station or storage facility at which Inventory is located.

LC Application — an application by Borrower Agent to Issuing Bank for issuance
of a Letter of Credit, in form and substance reasonably satisfactory to Issuing Bank.

LC Conditions — the following conditions necessary for issuance of a Letter of
Credit: (a) each of the conditions set forth in Section 6; (b) after giving effect to such
issuance, total LC Obligations do not exceed the Letter of Credit Subline, no Tranche A
Overadvance or Tranche A-1 Overadvance exists and, if no Tranche A Revolver Loans are
outstanding, the LC Obligations do not exceed the Tranche A Borrowing Base; (c) the
expiration date of such Letter of Credit is (i) no more than 365 days from issuance, in the
case of standby Letters of Credit, (ii) no more than 180 days from issuance, in the case of
documentary Letters of Credit, and (iii) at least 5 Business Days prior to the Termination
Date; (d) the Letter of Credit and payments thereunder are denominated in Dollars; (e) the
form of the proposed Letter of Credit is reasonably satisfactory to Agent and Issuing Bank
in their discretion and (f) the Issuing Bank’s compliance with the requirements of Section
2.3.1(j).

LC Documents — all documents, instruments and agreements (including LC Requests
and LC Applications) delivered by any Borrower or any other Person to Issuing Bank or Agent
in connection with issuance, amendment or renewal of, or payment under, any Letter of
Credit.

LC Guaranty — a guaranty issued by an Issuing Bank to another Person in
connection with the issuance by such other Person of Letters of Credit hereunder.

LC Obligations — the sum (without duplication) of (a) all amounts owing by
Borrowers for any drawings under Letters of Credit (including in respect of any payment made
by Issuing Bank under any LC Guaranty and any deferred payment or acceptance liabilities in
respect of such Letter of Credit); (b) the aggregate undrawn amount of all outstanding
Letters of Credit; and (c) all fees and other amounts owing with respect to Letters of
Credit.

LC Request — a request for issuance of a Letter of Credit, to be provided by
Borrower Agent to Issuing Bank, in form reasonably satisfactory to Agent and Issuing Bank.

Lender Indemnitees — Lenders and their officers, directors, employees,
Affiliates, agents, advisors and attorneys.

Lenders — as defined in the preamble to this Loan Agreement, including the
Tranche A Lenders, the Tranche A-1 Lenders, Agent in its capacity as a provider of Swingline
Loans and any other Person who hereafter becomes a “Lender” pursuant to an Assignment and
Assumption Agreement.

 

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Letter of Credit — any standby or documentary letter of credit issued by
Issuing Bank for the account of a Borrower, or any indemnity, guarantee, exposure
transmittal memorandum or similar form of credit support issued by Agent or Issuing Bank for
the benefit of a Borrower.

Letter-of-Credit Right — as defined in the UCC.

Letter of Credit Subline — $150,000,000. The Letter of Credit Subline is part
of, and not in addition to, the Tranche A Revolver Commitment.

LIBOR Loan — each set of LIBOR Tranche A Revolver Loans or LIBOR Tranche A-1
Revolver Loans having a common length and commencement of Interest Period.

LIBOR Tranche A Revolver Loan — a Tranche A Revolver Loan that bears interest
at Adjusted LIBOR plus the Applicable Margin for LIBOR Tranche A Revolver Loans.

LIBOR Tranche A-1 Revolver Loan — a Tranche A-1 Revolver Loan that bears
interest at Adjusted LIBOR plus the Applicable Margin for LIBOR Tranche A-1 Revolver Loans.

Liabilities — all claims, actions, suits, judgments, damages, losses,
liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes,
commissions, charges, disbursements, and expenses, in each case of any kind or nature
(including interest accrued thereon or as a result thereof and fees, charges and
disbursements of financial, legal and other advisors and consultants), whether joint or
several, whether or not indirect, contingent, consequential, actual, punitive, treble or
otherwise.

License — any license or agreement under which an Obligor is authorized to use
Intellectual Property in connection with any manufacture, marketing, distribution or
disposition of Collateral, any use of Property or any other conduct of its business.

Licensor — any Person from whom an Obligor obtains the right to use any
Intellectual Property.

Lien — any Person’s interest in Property securing an obligation owed to, or a
claim by, such Person, whether such interest is based on common law, statute or contract,
including liens, security interests, pledges, hypothecations, statutory trusts,
reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting Property.

Lien Waiver — an agreement, in form and substance reasonably satisfactory to
Agent, by which (a) for any material Collateral located on leased premises, the lessor
waives or subordinates any Lien it may have on the Collateral, and agrees to permit Agent to
enter upon the premises and remove the Collateral or to use the premises to store or dispose
of the Collateral; (b) for any Collateral held by a warehouseman, processor, shipper,
customs broker or freight forwarder, such Person waives or subordinates any Lien it may have
on the Collateral, agrees to hold any Documents in its possession relating to the Collateral
as agent for Agent, and agrees to deliver the Collateral to Agent upon request; (c) for any
Collateral held by a repairman, mechanic or bailee, such Person acknowledges Agent’s Lien,
waives or subordinates any Lien it may have on the Collateral, and agrees to deliver the
Collateral to Agent upon request; and (d) for any Collateral subject to a Licensor’s
Intellectual Property rights, the Licensor grants to Agent the right, vis-à-vis such
Licensor, to enforce Agent’s Liens with respect to the Collateral, including the right to
dispose of it with the benefit of the Intellectual Property, whether or not a default exists
under any applicable License.

 

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Loan — a Tranche A Revolver Loan or Tranche A-1 Revolver Loan.

Loan Account — the loan account established by each Lender on its books
pursuant to Section 5.7.

Loan Agreement — as defined in the Preamble.

Loan Documents — this Loan Agreement, Other Agreements and Security Documents.

Loan Year — each calendar year commencing on the Closing Date and on each
anniversary of the Closing Date.

Margin Stock — as defined in Regulation U of the Board of Governors.

Master Lease Agreement — collectively, (i) Lease Agreement dated as of March 6,
2006 between Bonstores Realty One, LLC, a Delaware limited liability company, as landlord,
and Bon-Ton, as successor by merger to Herberger’s Department Stores, LLC, a Minnesota
limited liability company, as tenant, as it may be amended, restated, supplemented,
modified, renewed or replaced in whole or in part from time to time in accordance with the
Loan Documents, (ii) Master Lease Agreement dated as of March 6, 2006 between Bonstores
Realty One, LLC, a Delaware limited liability company, as landlord, and Carson Pirie Scott
II, Inc., formerly known as McRae’s, Inc., a Mississippi corporation, as tenant, as it may
be amended, restated, supplemented, modified, renewed or replaced in whole or in part from
time to time in accordance with the Loan Documents, (iii) Lease Agreement dated as of March
6, 2006 between Bonstores Realty One, LLC, a Delaware limited liability company, as
landlord, and McRIL, LLC, a Virginia limited liability company, as tenant, as it may be
amended, restated, supplemented, modified, renewed or replaced in whole or in part from time
to time in accordance with the Loan Documents, (iv) Master Lease Agreement dated as of March
6, 2006 between Bonstores Realty One, LLC, a Delaware limited liability company, as
landlord, and Bon-Ton, as successor by merger to Parisian, Inc., an Alabama corporation, as
tenant, as it may be amended, restated, supplemented, modified, renewed or replaced in whole
or in part from time to time in accordance with the Loan Documents, (v) Lease Agreement
dated as of March 6, 2006 currently between Bonstores Realty One, LLC, a Delaware limited
liability company, as landlord, and Bon-Ton Distribution, Inc., formerly known as Saks
Distribution Centers, Inc., an Illinois corporation, as tenant, as it may be amended,
restated, supplemented, modified, renewed or replaced in whole or in part from time to time
in accordance with the Loan Documents, (vi) Master Lease Agreement dated as of March 6, 2006
between Bonstores Realty One, LLC, a Delaware limited liability company, as landlord, and
The Elder-Beerman Stores, Corp., an Ohio corporation, as tenant, as it may be amended,
restated, supplemented, modified, renewed or replaced in whole or in part from time to time
in accordance with the Loan Documents, (vii) Master Lease Agreement dated as of March 6,
2006 between Bonstores Realty Two, LLC, a Delaware limited liability company, as landlord,
and Carson Pirie Scott II, Inc., formerly known as McRae’s, Inc., a Mississippi corporation,
as tenant, as it may be amended, restated, supplemented, modified, renewed or replaced in
whole or in part from time to time in accordance with the Loan Documents, (viii) Master
Lease Agreement dated as of March 6, 2006 between Bonstores Realty Two, LLC, a Delaware
limited liability company, as landlord, and McRIL, LLC, a Virginia limited liability
company, as tenant, as it may be amended, restated, supplemented, modified, renewed or
replaced in whole or in part from time to time in accordance with the Loan Documents, (ix)
Master Lease Agreement dated as of March 6, 2006 between Bonstores Realty Two, LLC, a
Delaware limited liability company, as landlord, and Bon-Ton, as successor by merger to
Parisian, Inc., an Alabama corporation, as tenant, as it may be amended, restated,
supplemented, modified, renewed or replaced in whole or in part from time to time in
accordance with the Loan Documents and (x) such other leases and subleases as may be entered
into between an SPE and an Obligor from time to time.

 

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Material Adverse Effect — the effect of any event or circumstance occurring
after January 30, 2010 (except for general economic or political conditions or conditions
generally applicable to the department store industry, or terrorist events or wars) that,
taken as a whole, has or could be reasonably expected to have a material adverse effect on:
(a) the business, operations, liabilities (actual or contingent), Properties, or financial
condition of the Obligors and their Subsidiaries considered as a whole, or the value of the
Collateral, taken as a whole, the enforceability of any Loan Documents, or on the validity
or priority of Agent’s Liens on any Collateral; (b) the ability of the Obligors taken as a
whole to perform any obligations under the Loan Documents, including repayment of any
Obligations; or (c) the rights or remedies of Agent or any Lender to enforce or collect the
Obligations or to realize upon the Collateral.

Material Contract — any agreement or arrangement to which Parent or a
Subsidiary is party (other than the Loan Documents) (a) that is deemed to be a material
contract under the Securities Exchange Act of 1934, (b) for which breach, termination,
nonperformance or failure to renew could reasonably be expected to have a Material Adverse
Effect, or (c) that relates to the Mortgage Loan Debt, the Senior Note Debt, the Junior
Debt, the Convertible Note Debt or other Debt in an aggregate principal amount of $5,000,000
or more.

MLPFS — Merrill Lynch, Pierce, Fenner & Smith Incorporated.

Moody’s — Moody’s Investors Service, Inc., and its successors.

Mortgage — each mortgage, deed of trust or deed to secure debt pursuant to
which an Obligor grants to Agent, for the benefit of Secured Parties, Liens upon the Real
Estate owned by such Obligor, as security for the Obligations.

Mortgage Intercreditor Agreement — the Intercreditor Agreement, dated as of
March 6, 2006, by and among the Mortgage Loan Lender and Bank of America, in its capacity as
the administrative agent under the Existing Credit Agreement, as the same may be amended,
restated, supplemented, modified, renewed or replaced in whole or in part from time to time,
in each case in a manner not inconsistent with the Loan Documents and with the consent of
the Co-Collateral Agents.

Mortgage Loan Debt — (a) the Debt of SPEs in an aggregate principal amount not
to exceed $260,000,000, represented by the Mortgage Loan Debt Documents, (b) the Debt
evidenced by each guaranty of a Master Lease Agreement, executed by the Parent in favor of
the Mortgage Loan Lender, as in effect on the date hereof and as may be further amended,
restated, supplemented, modified, renewed or replaced in whole or in part from time to time
in accordance with the Loan Documents, (c) the Debt evidenced by each Exceptions to
Non-Recourse Guaranty, entered into on the March 6, 2006, by each of Bonstores Realty One,
LLC and Bonstores Realty Two, LLC in favor of the Mortgage Loan Lender, as in effect on the
date hereof and as may be further amended, restated, supplemented, modified, renewed or
replaced in whole or in part from time to time in accordance with the Loan Documents and (d)
any Refinancing Debt in respect of any of the foregoing which satisfies the Refinancing
Conditions.

 

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Mortgage Loan Debt Documents — the (a) Loan Agreement (the “Bonstores One
Agreement”), dated as of March 6, 2006, as amended on May 4, 2006, and as it may be
further amended, restated, supplemented, modified, renewed or replaced in whole or in part
from time to time in accordance with the Loan Documents, between Bonstores Realty One, LLC
and the Mortgage Loan Lender, (b) the Loan Agreement (the “Bonstores Two
Agreement”), dated as of March 6, 2006, as amended on May 4, 2006, and as it may be
further amended, restated,
supplemented, modified, renewed or replaced in whole or in part from time to time in
accordance with the Loan Documents, between Bonstores Realty Two, LLC and the Mortgage Loan
Lender, (c) each of the Loan Documents (as defined in the Bonstores One Agreement), (d) each
of the Loan Documents (as defined in the Bonstores Two Agreement), (e) each Master Lease
Agreement, (f) each guaranty of a Master Lease Agreement by the Parent in favor of the
Mortgage Loan Lender, and (g) any other agreement extending the maturity of, consolidating,
otherwise renewing, replacing or Refinancing all or any portion of the Mortgage Loan Debt
and whether by the same or any other agent, lender or group of lenders and whether or not
increasing the amount of Mortgage Loan Debt that may be incurred under the Mortgage Loan
Debt Documents, in each case in a manner not inconsistent with the Loan Documents.

Mortgage Loan Lender — Bank of America, N.A., in its capacity as lender under
the Mortgage Loan Debt Documents, and its successors and permitted assigns in such capacity,
and any other lender or group of lenders under the Mortgage Loan Debt Documents.

Multiemployer Plan — any employee benefit plan or arrangement described in
Section 4001(a)(3) of ERISA that is maintained or contributed to by any Obligor or
Subsidiary.

Net Proceeds — with respect to an Asset Disposition, proceeds (including, when
received, any deferred or escrowed payments) received by Parent or a Subsidiary in cash from
such disposition, net of (a) reasonable and customary costs and expenses actually incurred
in connection therewith, including legal fees and sales commissions; (b) amounts applied to
repayment of Debt secured by a Permitted Lien; (c) taxes due as a result of, or in
connection with, such Asset Disposition; and (d) reserves for indemnities, until such
reserves are no longer needed.

Notes — each Tranche A Revolver Note, Tranche A-1 Revolver Note or other
promissory note executed by a Borrower to evidence any Obligations.

Notice of Borrowing — a Notice of Borrowing to be provided by Borrower Agent to
request the funding of a Borrowing of Loans, in form reasonably satisfactory to Agent.

Notice of Conversion/Continuation — a Notice of Conversion/Continuation to be
provided by Borrower Agent to request a conversion or continuation of any Loans as LIBOR
Loans, in form reasonably satisfactory to Agent.

NRV Percentage — the net orderly liquidation value of Inventory of each
Borrower, expressed as a percentage (which shall be adjusted on a monthly basis), expected
to be realized at an orderly, negotiated sale held within a reasonable period of time, net
of all liquidation expenses, as determined from the most recent appraisal of Borrowers’
Inventory performed by an appraiser and on terms reasonably satisfactory to Agent.

Obligations — all (a) principal of and premium, if any, on the Loans, (b) LC
Obligations and other obligations of Obligors with respect to Letters of Credit, (c)
interest, expenses, fees and other sums payable by Obligors under Loan Documents, (d)
obligations of Obligors under any indemnity for Claims, (e) Extraordinary Expenses, (f) Bank
Product Debt, and (g) other Debts, obligations and liabilities of any kind owing by Obligors
pursuant to the Loan Documents or in connection with any Bank Products, whether now existing
or hereafter arising, whether evidenced by a note or other writing, whether allowed in any
Insolvency Proceeding, whether arising from an extension of credit, issuance of a letter of
credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or
indirect, absolute or contingent, due or to become due, primary or secondary, or joint or
several.

Obligor — each Borrower, Guarantor, or other Person that is liable for payment
of any Obligations or that has granted a Lien in favor of Agent on its assets to secure any
Obligations.

 

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Ordinary Course of Business — the ordinary course of business of Parent or any
Subsidiary, consistent with past practices and undertaken in good faith.

Organic Documents — with respect to any Person, its charter, certificate or
articles of incorporation, bylaws, articles of organization, limited liability agreement,
operating agreement, members agreement, shareholders agreement, partnership agreement,
certificate of partnership, certificate of formation, voting trust agreement, or similar
agreement or instrument governing the formation or operation of such Person.

OSHA — the Occupational Safety and Hazard Act of 1970, as amended.

Other Agreement — each Note, Guaranty, LC Document, LC Guaranty, Fee Letter,
Lien Waiver, Related Real Estate Document, Borrowing Base Certificate, Compliance
Certificate, the Mortgage Intercreditor Agreement, the Perfection Certificate, the
Post-Closing Agreement, financial statement or report delivered hereunder, or other
document, instrument or agreement (other than this Loan Agreement or a Security Document)
now or hereafter delivered by an Obligor or other Person to Agent or a Lender in connection
with any transactions relating hereto.

Overadvance Loan — a Base Rate Tranche A Revolver Loan made or Letter of Credit
issued, extended or renewed when a Tranche A Overadvance exists or is caused by the funding
of a Tranche A Revolver Loan or the issuance of a Letter of Credit.

Parent — The Bon-Ton Stores, Inc., a Pennsylvania corporation and parent
company of Bon-Ton.

Participant — as defined in Section 13.3.1.

Passive Company — collectively, The Bon-Ton Properties- Eastview G.P., Inc.,
The Bon-Ton Properties- Marketplace G.P., Inc., The Bon-Ton Properties- Greece Ridge G.P.,
Inc., The Bon-Ton Properties- Eastview L.P., The Bon-Ton Properties- Marketplace L.P., and
The Bon-Ton Properties- Greece Ridge L.P.

Patriot Act — the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115
Stat. 272 (2001).

Payment Intangible — as defined in the UCC.

Payment Item — each check, draft or other item of payment payable to an
Obligor, including those constituting proceeds of any Collateral.

Perfection Certificate — that certain Perfection Certificate dated as of the
date hereof, and delivered by the Obligors to Agent.

Permit — with respect to any Person, any permit, approval, authorization,
license, registration, certificate, concession, grant, franchise, variance or permission
from, and any other Contractual Obligations with, any Governmental Authority, in each case
whether or not having the force of law and applicable to or binding upon such Person or any
of its property or to which such Person or any of its property is subject.

 

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Permitted Acquisition — any acquisition by any Obligor, whether by purchase,
merger or otherwise, of all or substantially all of the assets of, the Equity Interests of,
or a business line or unit or a division of, any Person; provided that:

(i) immediately prior to, and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing or would result therefrom;

(ii) all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all applicable laws and in conformity with all applicable
Governmental Approvals;

(iii) such acquisition shall be consensual and shall have been approved by the Board of
Directors of such Person;

(iv) in the case of the acquisition of Equity Interests, the issuer of such Equity
Interests shall become a Subsidiary of the applicable Obligor immediately after consummation
of the applicable transaction, and such Obligor shall have taken, or caused to be taken, as
of the date such Person becomes a Subsidiary of such Obligor, the actions set forth in
Section 10.1.9;

(v) Excess Availability on the date of the making of such acquisition on a pro forma
basis after giving effect to such acquisition, and projected Excess Availability on a pro
forma basis for the upcoming twelve month period (after giving effect to such acquisition),
determined as of the last day of each fiscal month during such twelve month period, is, in
each case, greater than or equal to 15% of the lesser of (A) the aggregate Commitments as of
the last day of each fiscal month of such twelve month period and (B) the Aggregate
Borrowing Base as of the last day of each fiscal month of such twelve month period;

(vi) except if such acquisition is made within 180 days of an equity issuance and
solely with the cash proceeds in an aggregate amount not to exceed the Available Basket
Amount then in effect, as of the monthly fiscal period most recently then ended, the
Consolidated Fixed Charge Coverage Ratio (on a pro forma trailing 12 fiscal month basis,
giving effect to the making of such acquisition, and any Borrowings made in connection
therewith, determined as though such acquisition and such Borrowings occurred on the first
day of the twelve (12) fiscal month period ended prior to such acquisition) is greater than
or equal to 1.00 to 1.00;

(vii) any Person or assets or division as acquired in accordance herewith shall be in
the same business or lines of business in which the Borrowers and/or their Subsidiaries are
engaged as of the Closing Date or a line of business reasonably related or incidental
thereto; and

(viii) the Borrower Agent shall have delivered to Agent not less than then (10) days
prior to the consummation of such acquisition a certificate, in form and substance
reasonably satisfactory to Agent, from a Senior Officer of the Borrower Agent certifying
that the conditions set forth in clauses (i) through (vii) above are satisfied (which
certificate shall attach supporting projections, information and calculations with respect
to the requirements set forth in clause (v) and (vi) above (all based on projections of the
financial performance of the Obligors believed to be fair and reasonable at the time made)).

 

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Permitted Asset Disposition — as long as no Default or Event of Default exists
or would result therefrom, and, if so required pursuant to Section 5.2, all Net Proceeds are
remitted to Agent for application to the Obligations pursuant to Section 5.5, an Asset
Disposition that is (a) a sale of Inventory or Equipment in the Ordinary Course of Business;
(b) a disposition of Equipment so long as (x) the Equipment subject to such disposition has
a fair market value or book value (whichever is more) of $1,000,000 or less and (y) all
Equipment disposed of pursuant to this clause (b) in the aggregate during any Fiscal Year of
the Parent has a fair market or book value (whichever is more) of $5,000,000 or less, (c) a
disposition of Equipment or Inventory that
is obsolete, unmerchantable or otherwise unsalable in the Ordinary Course of Business,
(d) the licensing of Intellectual Property to third Persons on reasonable and customary
terms in the ordinary course of business consistent with past practice; provided
that such licensing does not materially interfere with the business of the Parent or any
other Obligor, (e) the sale or other disposition of Cash Equivalents, (f) dispositions of
accounts receivable (other than Credit Card Receivables) in connection with the compromise,
settlement or collection thereof in the Ordinary Course of Business or in bankruptcy or
similar proceedings (it being understood that customary chargebacks and offsets, discounts,
allowances and credits by Credit Card Processors made in the ordinary course of business
shall not constitute a disposition of a Credit Card Receivable for the purposes of this
clause (f)), (g) any Permitted Distribution, (h) any Investment which is not a Restricted
Investment, (i) the unwinding of any Hedging Agreements, (j) subleases entered into in the
ordinary course of business of any Obligor, (k) the disposition of any Real Estate which,
pursuant to Section 7.3, is not required to be subject to a Mortgage hereunder, (l) the
disposition of any Real Estate which is required to be subject to a Mortgage hereunder, so
long as (x) no Default or Event of Default has occurred and is continuing or would result
therefrom and (y) the Obligors receive, at the consummation of such Asset Disposition, gross
proceeds, in cash, from such sale in an amount not less than 70% of the appraised value of
such Real Estate, as set forth in the most recent appraisal provided to the Agent, (m) the
disposition by Borrower Agent (or any of its Subsidiaries) of 100% of the membership
interests in Bonstores Realty One, LLC to Bonstores Holdings One, LLC, (n) the disposition
by Borrower Agent (or any of its Subsidiaries) of 100% of the membership interests in
Bonstores Realty Two, LLC to Bonstores Holdings Two, LLC, (o) a Permitted Store Closure, (p)
a sale or other disposition of any property in connection with any transaction covered by,
but not prohibited by, Section 10.2.23, (q) a disposition of assets acquired in a Permitted
Acquisition so long as (i) such disposition is consummated within 180 days after the
consummation of such Permitted Acquisition and (ii) such assets do not constitute Inventory
or Accounts; (r) an abandonment of Intellectual Property that is obsolete or otherwise
uneconomic in the Ordinary Course of Business and (s) a transfer of condemned property as a
result of the exercise of “eminent domain” or other similar policies to the respective
Governmental Authority or agency that has condemned the same (whether by deed in lieu of
condemnation or otherwise), and transfers of properties that have been subject to a casualty
to the respective insurer of such property as part of an insurance settlement.

Permitted Business — any business conducted or proposed to be conducted by the
Parent and the other Obligors on the Closing Date and other businesses reasonably related or
ancillary thereto.

Permitted Contingent Obligations — Contingent Obligations (a) arising from
endorsements of Payment Items for collection or deposit in the Ordinary Course of Business;
(b) arising from Hedging Agreements permitted hereunder; (c) existing on the Closing Date,
and any extension or renewal thereof that does not increase the amount of such Contingent
Obligation when extended or renewed; (d) incurred in the Ordinary Course of Business with
respect to surety, appeal or performance bonds, or other similar obligations; (e) arising
from customary indemnification obligations in favor of purchasers in connection with
dispositions of Equipment permitted hereunder; (f) arising under the Loan Documents; or (g)
in an aggregate amount of $3,000,000 or less at any time.

 

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Permitted Distribution — (a) a dividend by the Parent or redemption or
repurchase of equity securities of the Parent so long as (i) no Default or Event of Default
shall have occurred and be continuing or would result after giving effect to any such
Distribution, (ii) Excess Availability on the date of the making of such Distribution on a
pro forma basis after giving effect to such Distribution, and projected Excess Availability
on a pro forma basis for the upcoming twelve month period (after giving effect to such
Distribution), determined as of the last day of each fiscal month during such twelve month
period, is, in each case, greater than or equal
to 20% of the lesser of (A) the aggregate Commitments as of the last day of each fiscal
month of such twelve month period and (B) the Aggregate Borrowing Base as of the last day of
each fiscal month of such twelve month period, (iii) as of the monthly fiscal period most
recently then ended, the Consolidated Fixed Charge Coverage Ratio (on a pro forma trailing
12 fiscal month basis, giving effect to the making of such Distribution, and any Borrowings
made in connection therewith, determined as though such Distribution and such Borrowings
occurred on the first day of the twelve (12) fiscal month period ended prior to such
Distribution) is greater than or equal to 1.10 to 1.00 and (iv) the Borrowers shall have
provided the Agent with a certificate not less than ten (10) days prior to the making of
such Permitted Distribution executed by a Senior Officer of the Borrower Agent, evidencing
compliance, after giving effect to such Distribution, with the requirements set forth in
clauses (i) through (iii) above (which certificate shall attach supporting projections,
information and calculations with respect to the requirements set forth in clauses (ii) and
(iii) above (all based on projections of the financial performance of the Obligors believed
to be fair and reasonable at the time made)), (b) dividends by the Parent or redemptions or
repurchases of equity securities of the Parent in an aggregate amount not to exceed (x)
$10,000,000 in any Fiscal Year of the Parent or (y) $30,000,000 during the term of this Loan
Agreement, (c) the purchase, repurchase, redemption, acquisition or retirement for value of
any capital stock of the Parent upon the exercise of warrants, options or similar rights if
such capital stock constitutes all or a portion of the exercise price or is surrendered in
connection with satisfying any federal or state income tax obligation incurred in connection
with such exercise; provided that no cash payment in respect of such purchase, repurchase,
redemption, acquisition, retirement or exercise shall be made by any Obligor, (d) so long as
no Default has occurred and is continuing or would result therefrom, payments to Parent to
permit Parent, and which are used by Parent, to redeem equity interests of Parent held by
any current or former employee, officer, director or consultant of Parent (or any other
Obligor) or their respective estates, spouses, former spouses or family members pursuant to
the terms of any employee equity subscription agreement, stock option agreement or similar
agreement entered into in the ordinary course of business; provided that the aggregate price
paid for all such repurchased, redeemed, acquired or retired equity interests in any Fiscal
Year will not exceed $5,000,000, (e) a repurchase of capital stock deemed to occur upon the
cashless exercise of stock options and warrants, and (f) distributions to Parent to enable
Parent to pay, and which are used by Parent to pay, customary and reasonable costs and
expenses of an offering of securities of Parent so long as the Parent reimburses the
applicable Obligor promptly upon the consummation of such offering.

Permitted Holders- (a) Tim Grumbacher and his immediate family members (as
defined by the NASDAQ listing requirements) or the spouses and former spouses (including
widows and widowers), heirs or lineal descendants of any of the foregoing; (b) an estate,
trust (including a revocable trust, declaration of trust or a voting trust), guardianship,
other legal representative relationship or custodianship for the primary benefit of one or
more individuals described in clause (a) above or controlled by one or more individuals
described in clause (a) above; (c) a corporation, partnership, limited liability company,
foundation, charitable organization or other entity if a majority of the voting power and,
if applicable, a majority of the value of the equity ownership of such corporation,
partnership, limited liability company, foundation, charitable organization or other entity
is directly or indirectly owned by or for the primary benefit of one or more individuals or
entities described in clauses (a) or (b) above; (d) a corporation, partnership, limited
liability company, foundation, charitable organization or other entity controlled directly
or indirectly by one or more individuals or entities described in clauses (a), (b) or (c)
above; and (e) any “person” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Securities Exchange Act of 1934, or any successor provision) acting on behalf of the
Parent as underwriter pursuant to an offering that is temporarily holding securities in
connection with such offering.

Permitted Lien — as defined in Section 10.2.2.

 

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Permitted Purchase Money Debt — Purchase Money Debt of Parent and Subsidiaries
that is unsecured or secured only by a Purchase Money Lien, as long as the aggregate
principal amount does not exceed $30,000,000 at any time.

Permitted Store Closures — the closure or liquidation of a Store by the
Borrowers or any Subsidiary; provided that (a) neither the Borrowers nor any of
their Subsidiaries shall close or liquidate, as of any date of determination, in any Fiscal
Year (x) Stores representing more than 10% of the Fiscal Total Stores for such Fiscal Year
(this clause (x) determined by the result of (i) the sum of (A) the number of Stores closed
or liquidated during such Fiscal Year, plus (B) the number of Stores that Borrowers
or its Subsidiaries intend to close on or about such date of determination during such
Fiscal Year, divided by (ii) Fiscal Total Stores for such Fiscal Year) and
(y) Stores representing more than 25% of the Total Stores (this clause (y) determined by the
result of (i) the sum of (A) the number of Stores closed or liquidated since the Closing
Date plus (B) the number of Stores that the Borrowers or its Subsidiaries intend to
close on or about such date of determination, divided by (ii) Total Stores)
and (b) if the number of Stores that the Borrowers or their Subsidiaries intend to close or
liquidate on any date of determination in a Fiscal Year when aggregated with the number of
Stores closed or liquidated by the Borrowers or their Subsidiaries prior to such date within
the same Fiscal Year exceed twenty (20) Stores, then all such Stores that are being closed
or liquidated on such date plus any Stores closed or liquidated on any date thereafter in
the same Fiscal Year shall be closed or liquidated by a liquidator or under the supervision
of a consultant (such liquidator or consultant shall be reasonably acceptable to the Agent)
and pursuant to liquidation or consulting arrangements reasonably acceptable to Agent. For
purposes of this defined term and any other defined term included herein, Store relocations
shall be ignored.

Person — any individual, corporation, limited liability company, partnership,
joint venture, joint stock company, land trust, business trust, unincorporated organization,
Governmental Authority or other entity.

Plan — an employee pension benefit plan that is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Internal Revenue Code and
that is either (a) maintained by Parent or Subsidiary for employees or (b) maintained
pursuant to a collective bargaining agreement, or other arrangement under which more than
one employer makes contributions and to which Parent or Subsidiary is making or accruing an
obligation to make contributions or has within the preceding five years made or accrued such
contributions.

Pledge Agreement — each pledge agreement pursuant to which an Obligor pledges
to Agent, for the benefit of Secured Parties, such Obligor’s equity interests, as security
for the Obligations.

Post-Closing Agreement — means that certain letter agreement dated as of the
Closing Date among Agent and the Obligors setting forth any applicable conditions reasonably
required by Agent to be fulfilled by Obligors, as applicable, subsequent to the Closing Date
in time periods as set forth therein, as amended, restated, supplemented or otherwise
modified from time to time.

Pro Rata — (a) with respect to any Tranche A Lender, a percentage (expressed
as a decimal, rounded to the ninth decimal place) determined (i) while the Tranche A
Revolver Commitments are outstanding, by dividing the amount of such Tranche A Lender’s
Tranche A Revolver Commitment by the aggregate amount of all Tranche A Revolver Commitments;
and (ii) at any other time, by dividing the amount of such Tranche A Lender’s Tranche A
Revolver Loans and LC Obligations by the aggregate amount of all outstanding Tranche A
Revolver Loans and LC Obligations and (b) with respect to any Tranche A-1 Lender, a
percentage (expressed as a decimal, rounded to the ninth decimal place) determined (i) while
the Tranche A-1 Revolver Commitments are outstanding, by dividing the amount of such Tranche A-1 Lender’s
Tranche A-1 Revolver Commitment by the aggregate amount of all Tranche A-1 Revolver
Commitments; and (ii) at any other time, by dividing the amount of such Tranche A-1 Lender’s
Tranche A-1 Revolver Loans by the aggregate amount of all outstanding Tranche A-1 Revolver
Loans.

 

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Properly Contested — with respect to any obligation of an Obligor, (a) the
obligation is subject to a bona fide dispute regarding amount or the Obligor’s liability to
pay; (b) the obligation is being properly contested in good faith by appropriate proceedings
promptly instituted and diligently pursued; (c) appropriate reserves have been established
in accordance with GAAP; (d) non-payment could not be reasonably expected to have a Material
Adverse Effect, nor result in forfeiture or sale of any assets of the Obligor; (e) no Lien
is imposed on assets of the Obligor, unless bonded and stayed to the reasonable satisfaction
of Agent; and (f) if the obligation results from entry of a judgment or other order, such
judgment or order is stayed pending appeal or other judicial review.

Property — any interest in any kind of property or asset, whether real,
personal or mixed, or tangible or intangible.

Protective Advances — as defined in Section 2.1.5.

Purchase Money Debt — (a) Debt (other than the Obligations) for payment of any
of the purchase price of fixed assets; (b) Debt (other than the Obligations) incurred within
10 days before or after acquisition of any fixed assets, for the purpose of financing any of
the purchase price thereof; (c) Capital Leases and (d) any renewals, extensions or
refinancings (but not increases) thereof.

Purchase Money Lien — a Lien that secures Purchase Money Debt, encumbering only
the fixed assets acquired with such Debt, and any proceeds thereof, and constituting a
Capital Lease, a purchase money security interest under the UCC or a purchase money
mortgage.

RCRA — the Resource Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).

Real Estate — all right, title and interest (whether as owner, lessor or
lessee) in any real Property or any buildings, structures, parking areas or other
improvements thereon.

Refinance — in respect of any Debt, to refinance, extend, renew, defease,
supplement, restructure, replace or repay such Debt, or to issue other Debt in exchange or
replacement for such Debt, in whole or in part, whether with the same or different lenders,
arrangers or agents, “Refinanced” and “Refinancing” shall have correlative meanings.

Refinancing Conditions — the following conditions for Refinancing Debt: (a) it
is in an aggregate principal amount that does not exceed the principal amount of the Debt
being extended, renewed or Refinanced, plus the amount of any premiums required to be paid
thereon, accrued interest and reasonable fees and expenses associated therewith;
provided that with respect to any extension, renewal or Refinancing of the Senior
Note Debt, the principal amount of the Debt under such extension, renewal or Refinancing
shall not exceed $600,000,000; provided further, that with respect to any extension,
renewal or Refinancing of the Mortgage Loan Debt, the principal amount of the Debt under
such extension, renewal or Refinancing shall not exceed $260,000,000; (b) its stated
maturity shall be later than the Debt being Refinanced, extended or renewed; (c) the
weighted average life to maturity of such Refinancing Debt is not less than the weighted
average life to maturity of the Debt being Refinanced, extended or renewed; (d) the interest
rate applicable to such Refinancing Debt (taking account of any original issue

 

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discount) is
based upon the prevailing market conditions for the type of Refinancing Debt being incurred
(taking into account the characteristics of the Obligors at such time), at the time of
such Refinancing, extension or renewal; (e) it is subordinated in right of payment to the
Obligations at least to the same extent as the Debt being Refinanced, extended or renewed
and any Liens securing such Refinancing Debt shall be subordinated to the Liens securing the
Obligations at least to the same extent as the Liens securing the Debt being Refinanced,
pursuant to an intercreditor or subordination agreement (as applicable) in form and
substance reasonably satisfactory to the Agent and the Co-Collateral Agents; (f) the
representations, covenants and defaults applicable to such Refinancing Debt are, taken as a
whole, substantially consistent with market terms of agreements governing comparable Debt of
similar companies at the time of such Refinancing, extension or renewal; (g) no additional
Lien is granted to secure it (other than to secure the additional Debt permitted to be
incurred pursuant to clause (a) of this definition); provided that with respect to
any extension, renewal or Refinancing of the Senior Note Debt, Liens may be granted to the
holders thereof so long as such Liens are permitted under Section 10.2.2(s); (h) no
additional Obligor is obligated on such Debt; provided that with respect to any
extension, renewal or Refinancing of the Senior Note Debt, any Obligor may be obligated in
respect thereof; and (i) upon giving effect to such Refinancing Debt, no Default or Event of
Default exists; provided, however, that with respect to clauses (d) and (f)
above, a certificate of a Senior Officer of the Borrower Agent delivered to the Agent with
reasonable prior notice before the incurrence of such Refinancing Debt, together with a
reasonably detailed description of the material terms of such Debt or drafts of the
documentation relating thereto, stating that the Borrower Agent has determined in good faith
that such terms satisfy the requirement under such clauses (d) and (f) shall be conclusive
evidence that such terms satisfy such requirements.

Refinancing Debt — Borrowed Money that is the result of an extension,
replacement, renewal or Refinancing of Debt permitted under Section 10.2.1 (b), (c), (d),
(e), (i), (k), (p), (u) or (v).

Register — as defined in Section 13.2.2.

Reimbursement Date — as defined in Section 2.3.2.

Related Parties — with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees, attorneys and advisors of such
Person and of such Person’s Affiliates.

Related Real Estate Documents — with respect to any Real Estate subject to a
Mortgage, the following, in form and substance reasonably satisfactory to Agent and received
by Agent for review at least 15 days prior to the effective date of the Mortgage (or such
shorter length of time acceptable to Agent in its reasonable discretion): (a) a mortgagee
title policy (or binder therefor) covering Agent’s interest under the Mortgage, in a form
and amount and by an insurer reasonably acceptable to Agent, which must be fully paid on
such effective date; (b) such assignments of leases, rents, estoppel letters, attornment
agreements, consents, waivers and releases as Agent may require with respect to other
Persons having an interest in the Real Estate; (c) a survey of the Real Estate, containing a
metes and bounds property description and flood plain certification, and certified by a
licensed surveyor reasonably acceptable to Agent; (d) flood insurance in an amount, with
endorsements and by an insurer reasonably acceptable to Agent, if the Real Estate is within
a flood plain; (e) a current appraisal of the Real Estate, prepared by an appraiser
reasonably acceptable to Agent, and in form and substance satisfactory to Required Lenders;
(f) a Phase I (and to the extent appropriate, Phase II) environmental assessment report,
prepared by an environmental consulting firm reasonably satisfactory to Agent, and
accompanied by such reports, certificates, studies or data as Agent may reasonably require,
which shall all be in form and substance reasonably satisfactory to Agent; and (g) an
Environmental Agreement and such other documents, instruments or agreements as Agent may
reasonably require with respect to any environmental risks regarding the Real Estate.

 

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Rent and Charges Reserve — the aggregate of (a) all past due rent and other
amounts owing by an Obligor to any landlord, warehouseman, processor, repairman, mechanic,
shipper, freight forwarder or other Person who possesses any Collateral or could assert a
Lien on any Collateral; and (b) a reserve at least equal to three months rent and other
charges that could be payable to any such Person, unless it has executed a Lien Waiver.

Report — as defined in Section 12.2.3.

Reportable Event — any event set forth in Section 4043(b) of ERISA.

Required Lenders — Lenders (subject to Section 4.2) having (a) Commitments in
excess of 50% of the aggregate Commitments; and (b) if the Commitments have terminated,
Loans and LC Obligations in excess of 50% of all outstanding Loans and LC Obligations;
provided that the unused Commitments of, and the portion of the Loans and LC
Obligations held or deemed held by any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.

Reserve Percentage — the reserve percentage (expressed as a decimal, rounded
upward to the nearest 1/8th of 1%) applicable to member banks under regulations issued from
time to time by the Board of Governors for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement) with respect
to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”).

Restricted Investment — any Investment by Parent or a Subsidiary, other than
(a) (i) Investments in Subsidiaries to the extent existing on the Closing Date and (ii)
Investments in any Borrower or Guarantor; (b) Cash Equivalents that are subject to Agent’s
Lien and control to the extent required hereunder, pursuant to documentation in form and
substance reasonably satisfactory to Agent; (c) loans and advances permitted under Section
10.2.7, (d) investments held by the Obligors comprised of notes payable, or stock or other
securities issued by Account Debtors to any Obligor pursuant to negotiated agreements with
respect to settlement of such Account Debtor’s Accounts in the ordinary course of business
consistent with past practice, (e) any Investment made as a result of the receipt of
non-cash consideration from an Permitted Asset Disposition, (f) Investments evidenced by
Hedging Agreements which are otherwise permitted to be entered into pursuant to Section
10.2.15, (g) stock, obligations or securities 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 or received in satisfaction of
judgment, (h) advances to customers or suppliers in the ordinary course of business that
are, in conformity with GAAP, recorded as accounts receivable, prepaid expenses or deposits
on the balance sheet of any Obligor and endorsements for collection or deposit arising in
the ordinary course of business, (i) commission, payroll, travel and similar advances to
officers and employees of any Obligor so long as such advances are otherwise permitted under
Section 10.2.7, (j) Investments consisting of the licensing or contribution of Intellectual
Property in the ordinary course of business, (k) Permitted Acquisitions, (l) Investments
described on Schedule 1.1(b) and modifications, extensions or replacements thereof so long
as the amount of the original Investment does not increase except by the terms of such
Investment or as otherwise permitted hereunder, (m) Investments resulting from deposits
referred to herein in Sections 10.2.2(e), (l), (m) and (p), and other deposits made in the
ordinary course of business securing obligations or performance under real estate or
personal property leases, (n) other Investments (not constituting the acquisition of all or
substantially all of the assets of, or the majority of the Equity Interests of, or a
business line or unit or a division of, any Person) made within 180 days of an equity
issuance and made solely with the cash proceeds of such equity issuance in an aggregate
amount not to exceed the Available Basket Amount then in effect so long as (i) no Default or Event of
Default shall have occurred and be continuing immediately prior to making such Investment
and after giving effect thereto and (ii) Excess Availability on the date of the making of
such Investment on a pro forma basis after giving effect to such Investment, and projected
Excess Availability on a pro forma basis for the upcoming twelve month period (after giving
effect to such Investment), measured as of the last day of each fiscal month during such
twelve month period, is, in each case, greater than or equal to 15% of the lesser of (A) the
aggregate Commitments as of the last day of each fiscal month of such twelve month period
and (B) the Aggregate Borrowing Base as of the last day of each fiscal month of such twelve
month period and (o) Investments in any Subsidiary that is not an Obligor in an amount not
to exceed $1,000,000 at any time outstanding.

 

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Restrictive Agreement — an agreement (other than a Loan Document) that
conditions or restricts the right of any Borrower, Subsidiary or other Obligor to incur or
repay Borrowed Money, to grant Liens on any assets, to declare or make Distributions, to
modify, extend or renew any agreement evidencing Borrowed Money, or to repay any
intercompany Debt.

S&P — Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors.

Sarbanes-Oxley — the Sarbanes-Oxley Act of 2002, as amended and in effect.

Securities Laws — the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards
and practices promulgated, approved or incorporated by the SEC or the Public Company
Accounting Oversight Board, as each of the foregoing may be amended and in effect on any
applicable date hereunder.

Secured Parties — Agent, Co-Collateral Agents, Issuing Banks, Lenders and
providers of Bank Products.

Security Documents — this Loan Agreement, Pledge Agreements, Mortgages,
Trademark Security Agreements, the Copyright Security Agreements, the Account Control
Agreements and all other documents, instruments and agreements now or hereafter securing (or
given with the intent to secure) any Obligations.

Senior Note Debt — (i) the unsecured Debt of Bon-Ton in an aggregate principal
amount not to exceed $510,000,000 represented by the Senior Note Debt Documents and (ii) any
Refinancing Debt in respect of the Debt described in clause (i) represented by the Senior
Note Debt Documents which satisfies the Refinancing Conditions.

Senior Note Debt Documents — the Senior Note Indenture, the 10.25% senior notes
issued by Bon-Ton in connection therewith, and all other instruments and documents from time
to time executed in favor of all or any of the holders of the Senior Note Debt, as any of
the same may be amended, restated, supplemented, modified, renewed, replaced or Refinanced
in whole or in part from time to time and any other agreement extending the maturity of,
consolidating, otherwise renewing, replacing or Refinancing all or any portion of the Senior
Note Debt and whether by the same or any other agent, lender or group of lenders and whether
or not increasing the amount of Senior Note Debt that may be incurred under the Senior Note
Debt Documents, in each case in a manner not inconsistent with the Loan Documents.

Senior Note Indenture — the Senior Note Indenture, dated as of March 6, 2006,
by and among Bon-Ton and The Bank of New York, as trustee, as it may be amended, restated,
supplemented, modified, renewed, replaced or Refinanced in whole or in part from time to
time and any other agreement extending the maturity of, consolidating, otherwise renewing,
replacing or Refinancing all or any portion of the Debt under the Senior Note Debt Documents
or all or any portion of the amounts owed under any other agreement that itself is the
Senior Note Indenture hereunder and whether by the same or any other agent, lender or group
of lenders and whether or not increasing the amount of Debt under the Senior Note Debt
Documents that may be incurred thereunder, in each case in a manner not inconsistent with
the Loan Documents.

 

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Senior Officer — the chairman of the board, president, chief executive officer,
treasurer, member manager or chief financial officer of a Borrower or, if the context
requires, an Obligor.

Settlement Report — a report delivered by Agent to Lenders summarizing the
Loans and participations in LC Obligations outstanding as of a given settlement date,
allocated to Lenders on a Pro Rata basis in accordance with their Commitments.

Software — as defined in the UCC.

Solvent — as to any Person, such Person (a) owns Property whose Fair Salable
Value is greater than the amount required to pay all of its debts (including contingent,
subordinated, unmatured and unliquidated liabilities); (b) owns Property whose present Fair
Salable Value (as defined below) is greater than the probable total liabilities (including
contingent, subordinated, unmatured and unliquidated liabilities) of such Person as they
become absolute and matured; (c) is able to pay all of its debts as they mature; (d) has
capital that is not unreasonably small for its business and is sufficient to carry on its
business and transactions and all business and transactions in which it is about to engage;
(e) is not “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code; and (f)
has not incurred (by way of assumption or otherwise) any obligations or liabilities
(contingent or otherwise) under any Loan Documents, or made any conveyance in connection
therewith, with actual intent to hinder, delay or defraud either present or future creditors
of such Person or any of its Affiliates. “Fair Salable Value” means the amount that
could be obtained for assets within a reasonable time, either through collection or through
sale under ordinary selling conditions by a capable and diligent seller to an interested
buyer who is willing (but under no compulsion) to purchase. For the purposes of this
definition, any right of contribution of such Person existing by law, contract or otherwise
shall be deemed an asset of such Person.

SPE — collectively, Bonstores Realty One, LLC, a Delaware limited liability
company (“BROLLC”); Bonstores Holdings One, LLC, a Delaware limited liability
company and the sole member of BROLLC; Bonstores Realty Two, LLC, a Delaware limited
liability company (“BRTLLC”); and Bonstores Holdings Two, LLC, a Delaware limited
liability company and the sole member of BRTLLC, each a special purpose entity and a
borrower of the Mortgage Loan Debt.

Specified Event of Default — the occurrence of any Event of Default specified
in the following Sections: (a) Section 11.1(a); (b) Section 11.1(b); (c) Section 11.1(c) but
only with respect to: (i) Sections 7.2.1 and 8.2.3; (ii) Section 8.1; (iii) Section 10.1.1;
(iv) Sections 10.1.2(a) through (f); (v) Section 10.2; and (vi) Section 10.3; (d) Section
11.1(d), but only with respect to: (i) Sections 8.2.4 and 8.5; (ii) Section 8.6; and (iii)
Sections 10.1.2(g) through (m); and (e) Sections 11.1(h) and (k).

Statutory Reserves — the percentage (expressed as a decimal) established by the
Board of Governors as the then stated maximum rate for all reserves (including those imposed
by Regulation D of the Board of Governors, all basic, emergency, supplemental or other
marginal reserve requirements, and any transitional adjustments or other scheduled changes
in reserve requirements) applicable to any member bank of the Federal Reserve System in
respect of Eurocurrency Liabilities (or any successor category of liabilities under Regulation D).

 

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Store — any retail department store operated by the Parent or any of its
Subsidiaries.

Subsidiary — any entity at least 50% of whose voting securities or Equity
Interests is owned by any Obligor or any combination of Obligors (including indirect
ownership by an Obligor through other entities in which such Obligor directly or indirectly
owns 50% of the voting securities or Equity Interests).

Supermajority Lenders — Lenders (subject to Section 4.2) having (a) Commitments
in excess of 75% of the aggregate Commitments; and (b) if the Commitments have terminated,
Loans and LC Obligations in excess of 75% of all outstanding Loans and LC Obligations;
provided that the unused Commitments of, and the portion of the Loans and LC
Obligations held or deemed held by any Defaulting Lender shall be excluded for purposes of
making a determination of Supermajority Lenders.

Supporting Obligation — as defined in the UCC.

Swingline Loan — any Borrowing of Base Rate Tranche A Revolver Loans funded
with Agent’s funds, until such Borrowing is settled among Lenders pursuant to Section 4.1.3.

Taxes — any taxes, levies, imposts, duties, fees, assessments, deductions,
withholdings or other charges of whatever nature, including income, receipts, excise,
property, sales, use, transfer, license, payroll, withholding, social security, franchise,
intangibles, stamp or recording taxes imposed by any Governmental Authority, and all
interest, penalties and similar liabilities relating thereto.

Termination Date — The date that is the earlier to occur of (a) March 21, 2016
and (b) the date that is sixty (60) days prior to the earliest of the maturity date of (x)
the Senior Note Debt, (y) the Mortgage Loan Debt and (z) the Junior Debt (if incurred).

Total Stores — as to any date of determination, an amount equal to the sum of
(x) the aggregate number of Stores open on the Closing Date plus (y) the aggregate
number of Stores acquired or opened through such date of determination.

Trademark Security Agreements — each trademark collateral security and pledge
agreement or other trademark security agreement pursuant to which an Obligor grants to
Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in trademarks,
as security for the Obligations.

Tranche A Borrowing Base — on any date of determination, an amount equal to the
lesser of (a) the aggregate amount of Tranche A Revolver Commitments on such date and (b)
the sum of (i) the Tranche A Inventory Formula Amount on such date, plus (ii) the Tranche A
Fixed Asset Availability Amount on such date, plus (iii) Tranche A Credit Card
Receivables Amount on such date, minus (iv) the Availability Reserve on such date.

Tranche A Credit Card Receivables Amount — on any date of determination, 90%
of the book value of Eligible Credit Card Accounts on such date.

Tranche A Excess Availability — determined as of any date, the amount that
Borrowers are entitled to borrow as Tranche A Revolver Loans, being the Tranche A Borrowing
Base on such date minus the sum of (a) the outstanding principal balance of all Tranche A
Revolver Loans on such date plus (b) the outstanding amount of LC Obligations on such date.

 

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Tranche A Fixed Asset Availability Amount — on any date of determination, the
lesser of (x) $65,000,000 minus the Tranche A-1 Real Estate Amount on such date and
(y) Tranche A Real Estate Amount on such date.

Tranche A Inventory Formula Amount — on any date of determination, 85% of the
NRV Percentage of the Value of Eligible Inventory on such date.

Tranche A Lenders — the Lenders indicated on Schedule 1.1(a) as Lenders of
Tranche A Revolver Loans, Agent in its capacity as a provider of Swingline Loans and any
other Person who hereafter becomes a “Tranche A Lender” pursuant to an Assignment and
Assumption Agreement.

Tranche A Overadvance — as defined in Section 2.1.4.

Tranche A Real Estate Amount — at any date of determination, 50% of the
Appraised Value of Eligible Real Estate on such date.

Tranche A Revolver Commitment — for any Tranche A Lender, its obligation to
make Tranche A Revolver Loans and to participate in LC Obligations up to the maximum
principal amount shown on Schedule 1.1(a), or as specified hereafter in the most recent
Assignment and Assumption Agreement to which it is a party. “Tranche A Revolver
Commitments” means the aggregate amount of such commitments of all Lenders. On the
Closing Date, the Tranche A Revolver Commitments are $575,000,000.

Tranche A Revolver Loan — (a) a Loan made pursuant to Section 2.1.1(a), (b)
any Swingline Loan, (c) any Overadvance Loan deemed by Agent to be a Tranche A Revolver Loan
or (d) any Protective Advance deemed by Agent to be a Tranche A Revolver Loan.

Tranche A Revolver Note — a promissory note to be executed by Borrowers in
favor of a Lender in the form of Exhibit A, which shall be in the amount of such Lender’s
Tranche A Revolver Commitment and shall evidence the Tranche A Revolver Loans made by such
Lender.

Tranche A-1 Borrowing Base — on any date of determination, an amount equal to
the lesser of (a) the aggregate amount of the Tranche A-1 Revolver Commitments on such date
and (b) the sum of (i) the Tranche A-1 Inventory Formula Amount on such date, plus
(ii) the Tranche A-1 Real Estate Amount on such date, minus (iii) the Availability
Reserve on such date (to the extent not already deducted in the Tranche A Borrowing Base).

Tranche A-1 Excess Availability — determined as of any date, the amount that
Borrowers are entitled to borrow as Tranche A-1 Revolver Loans, being the Tranche A-1
Borrowing Base on such date minus the outstanding principal balance of all Tranche A-1
Revolver Loans on such date.

Tranche A-1 Inventory Formula Amount — on any date of determination, the
Tranche A-1 Inventory Advance Percentage of the NRV Percentage of the Value of Eligible
Inventory on such date.

Tranche A-1 Inventory Advance Percentage — (a) at all times prior to March 21,
2012, 10%, (b) from and after March 21, 2012 through and including March 20, 2013, 7.50%,
(c) from and after March 21, 2013 and at all times thereafter, 5.00%. If any date on which
the Tranche A-1 Inventory Advance Percentage is to be adjusted is not a Business Day, then
the Tranche A-1 Inventory Advance Percentage shall be adjusted on the Business Day next
succeeding such day.

Tranche A-1 Lenders — the Lenders indicated on Schedule 1.1(a) as Lenders of
Tranche A-1 Revolver Loans and any other Person who hereafter becomes a “Tranche A-1 Lender”
pursuant to an Assignment and Assumption Agreement.

 

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Tranche A-1 Overadvance — as defined in Section 2.1.4.

Tranche A-1 Real Estate Amount — at any date of determination, 10% of the
Appraised Value of Eligible Real Estate on such date.

Tranche A-1 Revolver Commitment — for any Lender, its obligation to make
Tranche A-1 Revolver Loans up to the maximum principal amount shown on Schedule 1.1(a), or
as specified hereafter in the most recent Assignment and Assumption Agreement to which it is
a party. “Tranche A-1 Revolver Commitments” means the aggregate amount of such
commitments of all Lenders. On the Closing Date, the Tranche A-1 Revolver Commitments are
$50,000,000.

Tranche A-1 Revolver Loan — (a) a Loan made pursuant to Section 2.1.1(b), (b)
any Overadvance Loan deemed by Agent to be a Tranche A-1 Revolver Loan or (c) any Protective
Advance deemed by Agent to be Tranche A-1 Revolver Loan.

Tranche A-1 Revolver Note — a promissory note to be executed by Borrowers in
favor of a Lender in the form of Exhibit B, which shall be in the amount of such Lender’s
Tranche A-1 Revolver Commitment and shall evidence the Tranche A-1 Revolver Loans made by
such Lender.

Transferee — any actual or potential Eligible Assignee, Participant or other
Person acquiring an interest in any Obligations.

Trigger Event — any date on which (a) a Specified Event of Default occurs or
(b) an Excess Availability Trigger Event occurs.

Trigger Event Period — any period (a) commencing upon the occurrence of a
Trigger Event and (ii) ending on a Trigger Event Termination Date.

Trigger Event Termination Date — any date during a Trigger Event Period on
which (a) with respect to a Trigger Event resulting from the occurrence of a Specified Event
of Default, all Events of Default have been waived or remedied in accordance with the terms
of the Loan Documents or (b) with respect to an Excess Availability Trigger Event, Excess
Availability for a period of sixty (60) consecutive calendar days exceeds the greater of (i)
$65,000,000 or (ii) 15% of the lesser of (x) the aggregate Commitments then in effect and
(y) the Aggregate Borrowing Base then in effect; provided, however, that in
no event shall a Trigger Event Termination Date be deemed to have occurred (and a Trigger
Event Period may not end) more than two (2) times during any period of twelve (12)
consecutive months.

Type — any type of a Loan (i.e., Base Rate Loan or LIBOR Loan) that has the
same interest option and, in the case of LIBOR Loans, the same Interest Period.

UCC — the Uniform Commercial Code as in effect in the State of New York or,
when the laws of any other jurisdiction govern the perfection or enforcement of any Lien,
the Uniform Commercial Code of such jurisdiction.

 

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Unused Line Fee Rate — for any Fiscal Quarter, the applicable percentage per
annum set forth below determined by reference to the Facility Usage Percentage for the
Fiscal Quarter most recently ended:

	 	 	 	 	 	 	 
	 	 	Facility Usage	 	 	 
	Level	 	Percentage	 	Unused Fee	 
	I
	 	Less than 50%	 	 	0.50	%
	II
	 	Greater than or equal to 50%	 	 	0.375	%

Prior to the beginning of the first full Fiscal Quarter after the Closing Date, the
Unused Line Fee Rate shall be based on the Closing Date Facility Usage Percentage.
Thereafter, the Unused Line Fee Rate shall be subject to increase or decrease on a Fiscal
Quarter basis. Not more than ten (10) Business Days after the first day of each Fiscal
Quarter, the Agent shall determine the Unused Line Fee Rate for such Fiscal Quarter (which
shall be effective as of the first Business Day of such Fiscal Quarter) based on the
Facility Usage Percentage for the prior Fiscal Quarter.

Upstream Payment — a Distribution by a Subsidiary or any Obligor to any
Obligor.

Value — for Inventory, its value determined on the basis of the lower of cost
or market, calculated on a first-in, first-out basis.

Voting Stock - of any Person as of any date means the capital stock of such
Person that is at the time entitled to vote in the election of the Board of Directors of
such Person.

Wells Fargo — Wells Fargo Capital Finance, LLC.

1.2. Accounting Terms. Under the Loan Documents (except as otherwise specified
herein), all accounting terms shall be interpreted, all accounting determinations shall be made,
and all financial statements shall be prepared, in accordance with GAAP applied on a basis
consistent with the most recent audited financial statements of Parent delivered to Agent before
the Closing Date and using the same inventory valuation method as used in such financial
statements, except for any change required or permitted by GAAP if Parent and Borrowers’ certified
public accountants concur in such change, the change is disclosed to Agent, and Section 10.3 is
amended in a manner that preserves the original intent thereof in light of such change in GAAP.
Notwithstanding anything to the contrary set forth herein, any changes to GAAP after the Closing
Date with respect to the accounting treatment of leases will not be given effect for the purposes
of calculating the Consolidated Fixed Charge Coverage Ratio or any other financial ratio or
definition contained in this Loan Agreement or any other Loan Document. In addition,
notwithstanding any changes in GAAP after the Closing Date, any operating lease of the Borrowers or
their Subsidiaries shall not constitute Debt or a Capital Lease under this Loan Agreement or any
other Loan Document.

1.3. Certain Matters of Construction. The terms “herein,” “hereof,” “hereunder” and
other words of similar import refer to this Loan Agreement as a whole and not to any particular
section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. In the
computation of periods of time from a specified date to a later specified date, “from” means “from
and including,” and “to” and “until” each mean “to but excluding.” The terms “including” and
“include” shall mean “including, without limitation” and, for purposes of each Loan Document, the
parties agree that the rule of ejusdem generis shall not be applicable to limit any provision.
Section titles appear as a matter of convenience only and shall not affect the interpretation of
any Loan Document. All references to (a) laws or statutes include all related rules, regulations,
interpretations, amendments and successor provisions; (b) any document, instrument or agreement
include any amendments, waivers and other modifications, extensions or renewals (to the extent
permitted by the Loan Documents); (c) any section means, unless the context otherwise requires, a
section of this Loan Agreement; (d) any exhibits or schedules mean, unless the context otherwise
requires, exhibits and schedules attached hereto, which are hereby

 

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incorporated by reference; (e) any Person include successors and assigns; (f) [reserved]; or
(g) discretion of Agent, Issuing Bank or any Lender means the sole and absolute discretion of such
Person. All calculations of Value, fundings of Loans, issuances of Letters of Credit and payments
of Obligations shall be in Dollars. Tranche A Borrowing Base and Tranche A-1 Borrowing Base
calculations shall be consistent with historical methods of valuation and calculation, and
otherwise reasonably satisfactory to Agent (and not necessarily calculated in accordance with
GAAP). Borrowers shall have the burden of establishing any alleged negligence, misconduct or lack
of good faith by Agent, Issuing Bank or any Lender under any Loan Documents. No provision of any
Loan Documents shall be construed against any party by reason of such party having, or being deemed
to have, drafted the provision. Whenever the phrase “to the best of Borrowers’ knowledge” or words
of similar import are used in any Loan Documents, it means actual knowledge of a Senior Officer of
a Borrower.

1.4. Letter of Credit Amounts. Unless otherwise specified herein, the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any Letter of Credit
that by its terms provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of
Credit after giving effect to all such increases, whether or not such maximum stated amount is in
effect at such time.

1.5. Certifications. All certifications and other statements made by any officer,
director or employee of an Obligor pursuant to any Loan Document are and will be made on the behalf
of such Obligor and not in such officer’s, director’s or employee’s individual capacity.

1.6. Times of Day. Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as applicable).

1.7. Special Provision Relating to The Bon-Ton Stores of Lancaster, Inc.
Notwithstanding anything to the contrary contained in the Loan Documents (including that The
Bon-Ton Stores of Lancaster, Inc., a Pennsylvania corporation (“Lancaster”) has signed
certain of the Loan Documents as a “Borrower”), the parties agree that, as of the Closing Date,
Lancaster shall not be a “Borrower” under the Loan Documents but rather shall be a “Guarantor” for
all purposes under the Loan Documents. Accordingly, and for the avoidance of doubt, until such
time as Lancaster shall have satisfied the requirements of Section 10.1.9 to become a Borrower
hereunder, Lancaster shall not be entitled to borrow Loans or request other credit extensions under
the Loan Documents as a Borrower and Lancaster’s obligations under the Loan Documents shall be
those of a Guarantor.

SECTION 2. CREDIT FACILITIES

2.1. Commitment.

2.1.1. Loans. (a) Tranche A Revolver Loans. Each Tranche A Lender agrees,
severally on a Pro Rata basis up to its Tranche A Revolver Commitment, on the terms set forth
herein, to make Tranche A Revolver Loans to Borrowers from time to time through the Commitment
Termination Date. The Tranche A Revolver Loans may be repaid and reborrowed as provided herein.
The Borrowers shall not request, and the Tranche A Lenders shall not advance any Tranche A Revolver
Loans (other than (i) Swingline Loans as provided in Section 4.1.3 and (ii) Tranche A Revolver
Loans used to reimburse a draw on a Letter of Credit as provided in Section 2.3.2) at any time when
there exists any Tranche A-1 Excess Availability. Other than as set forth in Section 2.1.4 and in
Section 2.1.5, the Tranche A Lenders shall not have any obligation to honor a request for a Tranche
A Revolver Loan if (i) the unpaid balance of Tranche A Revolver Loans outstanding at such time and
the aggregate amount of all LC Obligations outstanding at such time (including the requested
Tranche A Revolver Loan) would exceed the Tranche A Borrowing Base at such time or (ii) the unpaid
balance of all Loans and the aggregate amount of all LC
Obligations outstanding at such time (including the requested Loan) would exceed Excess
Availability at such time.

 

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(b) Tranche A-1 Revolver Loans. Each Tranche A-1 Lender agrees, severally on a Pro
Rata basis up to its Tranche A-1 Revolver Commitment, on the terms set forth herein, to make
Tranche A-1 Revolver Loans to Borrowers from time to time through the Commitment Termination Date.
The Tranche A-1 Revolver Loans may be repaid and reborrowed as provided herein. In no event shall
the Tranche A-1 Lenders have any obligation to honor a request for a Tranche A-1 Revolver Loan if
(i) the unpaid balance of Tranche A-1 Revolver Loans outstanding at such time (including the
requested Tranche A-1 Revolver Loan) would exceed the Tranche A-1 Borrowing Base at such time or
(ii) the unpaid balance of all Loans outstanding and the aggregate amount of all LC Obligations
outstanding at such time (including the requested Loan) would exceed Excess Availability at such
time. The credit facility provided under the Tranche A-1 Revolver Commitments hereunder is funded
on a first-in basis and repaid on a last-out basis, all as provided herein.

(c) Tranche A Borrowing Base and Tranche A-1 Borrowing Base. The Tranche A Borrowing
Base and the Tranche A-1 Borrowing Base shall be determined from time to time by Agent by reference
to the most recent Borrowing Base Certificate delivered by the Borrowers. The Agent may from time
to time establish and modify the Availability Reserve.

2.1.2. Evidence of Debt; Notes. The Loans made by each Lender and interest accruing
thereon shall be evidenced by the records of Agent and such Lender. At the request of any Lender,
Borrowers shall deliver a Tranche A Revolver Note and/or a Tranche A-1 Revolver Note, as
applicable, to such Lender.

2.1.3. Use of Proceeds. The proceeds of Loans shall be used by Borrowers solely (a)
to satisfy existing Debt and other obligations under the Existing Credit Agreement and the related
documents; (b) to pay fees and transaction expenses associated with the closing of this credit
facility; (c) to pay Obligations in accordance with this Loan Agreement; and (d) for working
capital and other lawful corporate purposes of the Obligors and their Subsidiaries, which purposes
shall include, without limitation, the making of loans to Affiliates of the Borrowers, capital
expenditures, acquisitions and distributions, so long as each of the foregoing does not violate the
terms of this Loan Agreement.

2.1.4. Overadvances. If the aggregate Tranche A Revolver Loans and LC Obligations
exceed the Tranche A Borrowing Base (“Tranche A Overadvance”) at any time, the excess
amount shall be payable by Borrowers on demand by Agent or the Required Lenders, but all such Loans
and LC Obligations shall nevertheless constitute Obligations secured by the Collateral and entitled
to all benefits of the Loan Documents. If the aggregate Tranche A-1 Revolver Loans exceed the
Tranche A-1 Borrowing Base (“Tranche A-1 Overadvance”) at any time, the excess amount shall
be, so long as there are no Tranche A Revolver Loans and no Letters of Credit outstanding, payable
by Borrowers on demand by Agent or the Required Lenders, but all such Loans shall nevertheless
constitute Obligations secured by the Collateral and entitled to all benefits of the Loan
Documents. Unless its authority has been revoked in writing by Required Lenders, Agent may require
the Tranche A Lenders to honor requests for Overadvance Loans and to forbear from requiring
Borrowers to cure a Tranche A Overadvance so long as, at the time of the making of a Tranche A
Overadvance (a) Overadvance Loans have not been outstanding for more than ninety (90) total days in
the preceding 365 day period and (b) the aggregate amount of all Overadvance Loans and Protective
Advances are not known by Agent to exceed 5% of the Aggregate Borrowing Base at such time. In no
event shall Overadvance Loans be required that would cause (x) the outstanding Loans and LC
Obligations to exceed the aggregate Commitments at such time or (y) the outstanding Tranche A
Revolver Loans and LC Obligations to exceed the Tranche A Revolver Commitments at such time. Any
funding of an Overadvance Loan or sufferance of a Tranche A Overadvance shall not constitute a
waiver by Agent or Lenders of the Event of Default caused thereby. Overadvance Loans consisting of
Loans shall be funded as Base Rate Tranche A Revolver Loans. In no
event shall any Borrower or other Obligor be deemed a beneficiary of this Section nor
authorized to enforce any of its terms. Each Tranche A Lender shall participate in each
Overadvance Loan on a Pro Rata basis.

 

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2.1.5. Protective Advances. Agent shall be authorized, in its discretion, at any time
that a Default or Event of Default exists or any conditions in Section 6.2 are not satisfied to
make Loans (“Protective Advances”) (so long as at the time of the making of any Protective
Advance, Protective Advances which constitute Overadvance Loans have not been outstanding for more
than ninety (90) total days in the preceding 365 day period) up to an aggregate amount equal to (i)
5% of the Aggregate Borrowing Base at such time minus (ii) the aggregate outstanding
principal amount of all Overadvance Loans at such time, if Agent deems such Loans necessary or
desirable to (a) preserve or protect any Collateral, or to enhance the collectibility or repayment
of Obligations; or (b) pay any other amounts chargeable to Obligors under any Loan Documents,
including costs, fees and expenses. All Protective Advances shall be Obligations, secured by the
Collateral, and shall be treated for all purposes as Extraordinary Expenses. Protective Advances
shall be funded as Base Rate Tranche A Revolver Loans. Each Tranche A Lender shall participate in
each Protective Advance on a Pro Rata basis. In no event shall Protective Advances be made where
the making of such Protective Advances would cause (x) the outstanding Loans and LC Obligations to
exceed the aggregate Commitments at such time or (y) the outstanding Tranche A Revolver Loans and
LC Obligations at such time to exceed the Tranche A Revolver Commitments then in effect.

2.2. Voluntary Reduction or Termination of Commitments.

2.2.1. Voluntary Reduction or Termination of Tranche A Revolver Commitments.

(a) The Tranche A Revolver Commitments shall terminate on the Termination Date, unless sooner
terminated in accordance with this Loan Agreement. Upon at least five (5) Business Days prior
written notice to Agent at any time, Borrowers may, at their option, terminate the Tranche A
Revolver Commitments. Any notice of termination given by Borrowers shall be irrevocable unless
such notice is conditioned upon the effectiveness of other financing arrangements in which case
such notice may be revoked if such condition is not satisfied. On the termination date specified
in such notice of termination, Borrowers shall make payment in full, in cash, of Tranche A Revolver
Loans and all interest thereon and all Obligations due and owing to the Agent or any Tranche A
Lender, in its capacity as a Tranche A Lender.

(b) Borrowers may permanently reduce the Tranche A Revolver Commitments, on a Pro Rata basis
for each Tranche A Lender, from time to time upon written notice to Agent, which notice shall
specify the amount of the reduction, shall be irrevocable once given unless such notice is
conditioned upon the effectiveness of other financing arrangements in which case such notice may be
revoked if such condition is not satisfied and shall be given at least five (5) Business Days prior
to the requested reduction date. Each reduction shall be in a minimum amount of $10,000,000, or an
increment of $1,000,000 in excess thereof. In connection with any reduction of the Tranche A
Revolver Commitments, the Borrowers shall prepay the Tranche A Revolver Loans and Cash
Collateralize Letters of Credit in an amount sufficient to cause the outstanding Tranche A Revolver
Loans and Letters of Credit to not exceed the Tranche A Revolver Commitments then in effect.

 

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2.2.2. Voluntary Reduction or Termination of Tranche A-1 Revolver Commitments.

(a) The Tranche A-1 Revolver Commitments shall terminate on the Termination Date, unless
sooner terminated in accordance with this Loan Agreement. Upon at least five (5) Business Days
prior written notice to Agent, Borrowers may, at their option, terminate the Tranche A-1 Revolver
Commitments so long as the Borrower Agent has (i) certified in writing (pursuant to a certificate
signed on its behalf by a Senior Officer) that there are no Tranche A Revolver Loans or LC
Obligations
outstanding as of the date of such termination, (ii) certified in writing that Tranche A
Excess Availability as of the date of such termination is greater than or equal to twenty-five
percent (25%) of the Tranche A Borrowing Base as of the date of such termination, (iii) certified
in writing that no Default or Event of Default exists or would result from such termination and
(iv) has provided Agent with a Borrowing Base Certificate, in form and substance reasonably
satisfactory to Agent, demonstrating that average Tranche A Excess Availability for the
twelve-month period following such termination, calculated on a pro forma basis after giving effect
to such termination and determined as of the last day of each fiscal month during such twelve-month
period, will be greater than or equal to twenty-five percent (25%) of the Tranche A Borrowing Base
as of the last day of each fiscal month during such twelve-month period. Any notice of termination
given by Borrowers shall be irrevocable unless such notice is conditioned upon the effectiveness of
other financing arrangements in which case such notice may be revoked if such condition is not
satisfied. On the termination date specified in such notice of termination, Borrowers shall make
payment in full, in cash of Tranche A-1 Revolver Loans and all interest thereon and all Obligations
due and owing to the Agent or any Tranche A-1 Lender, in its capacity as a Tranche A-1 Lender.

(b) Borrowers may permanently reduce the Tranche A-1 Revolver Commitments, on a Pro Rata basis
for each Tranche A-1 Lender, upon at least five (5) Business Days prior written notice to Agent, so
long as a Senior Officer of the Borrower Agent has (i) certified in writing that there are no
Tranche A Revolver Loans or LC Obligations outstanding as of the date of such reduction, (ii)
certified in writing that Tranche A Excess Availability as of the date of such reduction is greater
than or equal to twenty-five percent (25%) of the Tranche A Borrowing Base as of the date of such
reduction, (iii) certified in writing that no Default or Event of Default exists or would result
from such reduction and (iv) has provided Agent with a Borrowing Base Certificate, in form and
substance reasonably satisfactory to Agent, demonstrating that average Tranche A Excess
Availability for the twelve-month period following such reduction, calculated on a pro forma basis
after giving effect to such reduction and determined as of the last day of each fiscal month during
such twelve-month period, will be greater than or equal to twenty-five percent (25%) of the Tranche
A Borrowing Base as of the last day of each fiscal month during such twelve-month period. Any such
notice of reduction shall specify the amount of the reduction, shall be irrevocable once given
unless such notice is conditioned upon the effectiveness of other financing arrangements in which
case such notice may be revoked if such condition is not satisfied, shall be given at least five
Business Days prior to the requested reduction date. Each reduction shall be in a minimum amount
of $5,000,000, or an increment of $1,000,000 in excess thereof. In connection with any reduction
of the Tranche A-1 Revolver Commitments, the Borrowers shall prepay the Tranche A-1 Revolver Loans
in an amount sufficient to cause the outstanding Tranche A-1 Revolver Loans to not exceed the
Tranche A-1 Revolver Commitments then in effect.

2.3. Letter of Credit Facility.

2.3.1. Issuance of Letters of Credit. Issuing Bank agrees, in reliance upon the
agreements of the Lenders set forth in this Section 2.3, to issue or cause the issuance of Letters
of Credit from time to time until five (5) Business Days prior to the Termination Date (or until
the date of termination of the Tranche A Revolver Commitments, if earlier), on the terms set forth
herein, including the following:

(a) Each Borrower acknowledges that Issuing Bank’s willingness to issue or cause the issuance
of any Letter of Credit is conditioned upon Issuing Bank’s receipt of a LC Application with respect
to the requested Letter of Credit, as well as such other instruments and agreements as Issuing Bank
may customarily require for issuance of a letter of credit of similar type and amount. Issuing
Bank shall have no obligation to issue any Letter of Credit unless (i) Issuing Bank receives a LC
Request and LC Application not later than 11:00 a.m. at least three Business Days prior to the
requested date of issuance; and (ii) each LC Condition is satisfied. If Issuing Bank receives
written notice from a Tranche A Lender at least one Business Day before issuance of a Letter of
Credit that any LC Condition has not been satisfied, Issuing Bank shall have no obligation to issue
the requested Letter of Credit (or any other)
until such LC Condition is satisfied or until Required Lenders have waived such condition in
accordance with this Loan Agreement. Prior to receipt of any such notice, Issuing Bank shall not
be deemed to have knowledge of any failure of LC Conditions. No Issuing Bank shall be under any
obligation to issue any Letter of Credit if (i) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from
issuing such Letter of Credit, or any law applicable to such Issuing Bank or any request or
directive (whether or not having the force of law) from any Governmental Authority with
jurisdiction over such Issuing Bank shall prohibit, or request that such Issuing Bank refrain from,
the issuance of letters of credit generally or such Letter of Credit in particular or shall impose
upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital
requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on
the Closing Date, or shall impose upon such Issuing Bank any unreimbursed loss, cost or expense
which was not applicable on the Closing Date and which such Issuing Bank in good faith deems
material to it, (ii) the issuance of such Letter of Credit would violate one or more policies of
such Issuing Bank applicable to letters of credit generally or (iii) any Lender is at such time a
Defaulting Lender, unless such Issuing Bank has entered into arrangements satisfactory to such
Issuing Bank with the Borrowers or such Defaulting Lender to eliminate such Issuing Bank’s Fronting
Exposure with respect to such Defaulting Lender.

 

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(b) Letters of Credit may be requested by a Borrower only (i) to support obligations of such
Borrower incurred in the Ordinary Course of Business; or (ii) for other purposes as Agent and
Lenders may approve from time to time in writing. The renewal or extension of any Letter of Credit
shall be treated as the issuance of a new Letter of Credit, except that delivery of a new LC
Application shall be required at the discretion of Issuing Bank.

(c) Borrowers assume all risks of the acts, omissions or misuses of any Letter of Credit by
the beneficiary. In connection with issuance of any Letter of Credit, none of Agent, Issuing Bank
or any Lender shall be responsible for the existence, character, quality, quantity, condition,
packing, value or delivery of any goods purported to be represented by any Documents; any
differences or variation in the character, quality, quantity, condition, packing, value or delivery
of any goods from that expressed in any Documents; the form, validity, sufficiency, accuracy,
genuineness or legal effect of any Documents or of any endorsements thereon; the time, place,
manner or order in which shipment of goods is made; partial or incomplete shipment of, or failure
to ship, any goods referred to in a Letter of Credit or Documents; any deviation from instructions,
delay, default or fraud by any shipper or other Person in connection with any goods, shipment or
delivery; any breach of contract between a shipper or vendor and a Borrower; errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex, telecopy, e-mail, telephone or otherwise; errors in interpretation of technical terms; the
misapplication by a beneficiary of any Letter of Credit or the proceeds thereof; or any
consequences arising from causes beyond the control of Issuing Bank, Agent or any Lender, including
any act or omission of a Governmental Authority. The rights and remedies of Issuing Bank under the
Loan Documents shall be cumulative. Issuing Bank shall be fully subrogated to the rights and
remedies of each beneficiary whose claims against Borrowers are discharged with proceeds of any
Letter of Credit.

(d) In connection with its administration of and enforcement of rights or remedies under any
Letters of Credit or LC Documents, Issuing Bank shall be entitled to act, and shall be fully
protected in acting, upon any certification, notice or other communication in whatever form
believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or
made by a proper Person. Issuing Bank may consult with and employ legal counsel, accountants and
other experts to advise it concerning its obligations, rights and remedies, and shall be entitled
to act upon, and shall be fully protected in any action taken in good faith reliance upon, any
advice given by such experts. Issuing Bank may employ agents and attorneys-in-fact in connection
with any matter relating to Letters of Credit or LC Documents, and shall not be liable for the
negligence or misconduct of any such agents or attorneys-in-fact selected with reasonable care.

 

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(e) Agent shall have no obligation to approve any request for a commercial Letter of Credit
for the purchase of finished goods unless each of the following documents are required as
conditions to any draw thereon, and for such commercial Letter of Credit to constitute an Eligible
Trade L/C, such documents being in the possession of Agent (either directly or through its agent)
must be conditions to any draw thereon (except that Agent may waive any one or more of the
following conditions):

(i) the original Eligible Trade L/C, if only one draw is permitted thereunder or if
multiple draws are permitted and the subject draw is the final draw thereunder;

(ii) an inspection certificate in form reasonably acceptable to Agent, in its
discretion, executed by a Borrower’s employee or agent at the point of origin of the
finished goods;

(iii) a commercial invoice with respect to the purchase order(s) against which such
finished goods are being delivered and a packaging list with respect to such goods;

(iv) a non-negotiable ocean bill of lading, freight forwarders cargo receipt, a house
bill of lading or a copy of an airway bill of lading issued by an Approved Shipper with
respect to the finished goods being shipped and providing for the delivery thereof to a
Borrower; and

(v) a certificate of origin or other documents of title with respect to such Inventory.

(f) The parties hereto agree that each outstanding letter of credit described on Schedule
2.3.2 shall be deemed to be a Letter of Credit issued pursuant to this Loan Agreement.

(g) Promptly after receipt of any LC Application, the Issuing Bank will confirm with the Agent
(by telephone or in writing) that the Agent has received a copy of such LC Application from the
Borrowers and, if not, the Issuing Bank will, upon the request of the Agent, provide the Agent with
a copy thereof. Subject to the requirements of subsection (j) below, unless the Issuing Bank has
received written notice from any Lender, the Agent or any Borrower, at least one Business Day prior
to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Section 6 shall not then be satisfied, then, subject to the
terms and conditions hereof, the Issuing Bank shall, on the requested date, issue a Letter of
Credit for the account of the Borrowers.

(h) The obligation of the Borrowers to reimburse the Issuing Bank for each drawing under each
Letter of Credit and to repay each borrowing under each Letter of Credit shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Loan
Agreement under all circumstances, including the following: (i) any lack of validity or
enforceability of such Letter of Credit, this Loan Agreement, or any other Loan Document; (ii) the
existence of any claim, counterclaim, setoff, defense or other right that any Borrower or any
Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit
(or any Person for whom any such beneficiary or any such transferee may be acting), the Issuing
Bank or any other Person, whether in connection with this Loan Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or
any unrelated transaction; (iii) any draft, demand, certificate or other document presented under
such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under such Letter of
Credit; (iv) any payment by the Issuing Bank under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any
payment made by the Issuing Bank under such Letter of Credit to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any transferee of such
Letter of Credit; or (v)
any other circumstance or happening whatsoever, whether or not similar to any of the foregoing,
including any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any Borrower or any Subsidiary.

 

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(i) The Borrowers shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrowers’
instructions or other irregularity, the Borrowers will immediately notify the Issuing Bank. The
Borrowers shall be conclusively deemed to have waived any such claim against the Issuing Bank and
its correspondents unless such notice is given as aforesaid.

(j) Each Issuing Bank shall, before the issuance of any Letter of Credit, notify the Agent in
writing of the issuance of each Letter of Credit hereunder and, upon the request of the Agent,
provide Agent with a copy of any such Letter of Credit (it being understood that such Issuing Bank
may update Agent one time during a Business Day with respect to all relevant Letters of Credit). A
failure of any Issuing Bank (other than Bank of America) to comply with the requirements of this
clause (j) in respect any Letter of Credit may, as determined by the Agent in its sole discretion,
cause the LC Obligations in respect of such Letter of Credit to be excluded from the Obligations.

2.3.2. Reimbursement; Participations.

(a) If Issuing Bank honors any request for payment under a Letter of Credit or, if applicable
a LC Guaranty with respect to a Letter of Credit, Borrowers shall pay to Issuing Bank, on the same
day (“Reimbursement Date”), the amount paid by Issuing Bank under such Letter of Credit or,
if applicable, under a LC Guaranty with respect to such Letter of Credit, together with interest at
the interest rate for Base Rate Tranche A Revolver Loans from the Reimbursement Date until payment
by Borrowers. The obligation of Borrowers to reimburse Issuing Bank for any payment made under a
Letter of Credit or LC Guaranty shall be absolute, unconditional, irrevocable, and joint and
several, and shall be paid without regard to any lack of validity or enforceability of any Letter
of Credit or the existence of any claim, setoff, defense or other right that Borrowers may have at
any time against the beneficiary. Whether or not Borrower Agent submits a Notice of Borrowing,
Borrowers shall be deemed to have requested a Borrowing of Base Rate Tranche A Revolver Loans in an
amount necessary to pay all amounts due Issuing Bank on any Reimbursement Date and each Tranche A
Lender agrees to fund its Pro Rata share of such Borrowing whether or not the Tranche A Commitments
have terminated, a Tranche A Overadvance exists or is created thereby, or the conditions in Section
6 are satisfied.

(b) Upon issuance of a Letter of Credit, each Tranche A Lender shall be deemed to have
irrevocably and unconditionally purchased from Issuing Bank, without recourse or warranty, an
undivided Pro Rata interest and participation in all LC Obligations relating to the Letter of
Credit. If Issuing Bank makes any payment under a Letter of Credit or a LC Guaranty and Borrowers
do not reimburse such payment on the Reimbursement Date, Agent shall promptly notify Lenders and
each Tranche A Lender shall promptly (within one Business Day) and unconditionally pay to Agent,
for the benefit of Issuing Bank, such Tranche A Lender’s Pro Rata share of such payment. Upon
request by a Tranche A Lender, Issuing Bank shall furnish copies of any Letters of Credit and LC
Documents in its possession at such time.

(c) The obligation of each Tranche A Lender to make payments to Agent for the account of
Issuing Bank in connection with Issuing Bank’s payment under a Letter of Credit or LC Guaranty
shall be absolute, unconditional and irrevocable, not subject to any counterclaim, setoff,
qualification or exception whatsoever, and shall be made in accordance with this Loan Agreement
under all circumstances, irrespective of any lack of validity or unenforceability of any Loan
Documents; any draft, certificate or other document presented under a Letter of Credit having been
determined to be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or the existence of any setoff or defense that
any Obligor may have with

 

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respect to any Obligations. Issuing Bank does not assume any responsibility for any failure or delay
in performance or any breach by any Borrower or other Person of any obligations under any LC
Documents. Issuing Bank does not make to Lenders any express or implied warranty, representation
or guaranty with respect to the Collateral, LC Documents or any Obligor. Issuing Bank shall not be
responsible to any Lender for any recitals, statements, information, representations or warranties
contained in, or for the execution, validity, genuineness, effectiveness or enforceability of any
LC Documents; the validity, genuineness, enforceability, collectibility, value or sufficiency of
any Collateral or the perfection of any Lien therein; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Obligor.

(d) If any Lender fails to make available to the Agent for the account of the Issuing Bank any
amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.3
by the time specified in this Section 2.3, the Issuing Bank shall be entitled to recover from such
Lender (acting through the Agent), on demand, such amount with interest thereon for the period from
the date such payment is required to the date on which such payment is immediately available to the
Issuing Bank at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the Issuing Bank in accordance with banking industry rules on interbank compensation,
plus any administrative, processing or similar fees customarily charged by the Issuing Bank in
connection with the foregoing. If such Lender pays such amount (with interest and fees as
aforesaid), the amount so paid shall constitute such Lender’s required payment by such Lender
pursuant to the foregoing provisions of this Section 2.3. A certificate of the Issuing Bank
submitted to any Lender (through the Agent) with respect to any amounts owing under this Section
2.3 shall be conclusive absent manifest error.

(e) No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any action
taken or omitted to be taken in connection with any LC Documents except as a result of its actual
gross negligence or willful misconduct. Issuing Bank shall not have any liability to any Lender if
Issuing Bank refrains from any action under any Letter of Credit or LC Documents until it receives
written instructions from Required Lenders.

2.3.3. Cash Collateral. If any LC Obligations, whether or not then due or payable,
shall for any reason be outstanding at any time (a) that an Event of Default exists, (b) that
Tranche A Excess Availability is less than zero, (c) after the date on which the Tranche A Revolver
Commitment has been terminated, or (d) within five Business Days prior to the Termination Date,
then Borrowers shall, at Issuing Bank’s or Agent’s request, pay to Issuing Bank the amount of all
outstanding LC Obligations and Cash Collateralize or backstop in a manner agreed to by the Borrower
Agent and the Issuing Bank, all outstanding Letters of Credit. If Borrowers fail to Cash
Collateralize or backstop outstanding Letters of Credit as required herein, Tranche A Lenders may
(and shall upon direction of Agent) advance, as Base Rate Tranche A Revolver Loans, the amount of
the Cash Collateral required (whether or not the Commitments have terminated, any Tranche A
Overadvance or Tranche A-1 Overadvance exists, or the conditions in Section 6 are satisfied). At
any time that there shall exist a Defaulting Lender, promptly upon the reasonable request of the
Agent (including with respect to Swingline Loans) or the Issuing Bank, the Borrowers shall deliver
to the Agent from time to time Cash Collateral in an amount sufficient to cover all Fronting
Exposure (after giving effect to Section 4.2 and any Cash Collateral provided by the Defaulting
Lender). Cash Collateral provided in respect of Letters of Credit or Swing Line Loans shall be
held and applied to the satisfaction of the specific LC Obligations, Swingline Loans, obligations
to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender,
any interest accrued on such obligation) and other obligations for which the Cash Collateral was so
provided, prior to any other application of such property as may be provided for herein. Each
Borrower, and to the extent provided by any Defaulting Lender, such Lender, hereby grants to (and
subjects to the control of) the Agent, for the benefit of the Agent, the Issuing Bank and the
Lenders, and agrees to maintain, a first priority security interest in all such cash, deposit
accounts and all balances therein, and all other property so provided as collateral pursuant
hereto, and in all proceeds of the foregoing, all as security for the obligations to which such
Cash Collateral may be applied.

 

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2.3.4. Role of Issuing Bank. Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, the Issuing Bank shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the Issuing Bank, the
Agent, any of their respective Related Parties nor any correspondent, participant or assignee of
the Issuing Bank shall be liable to any Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable;
(ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii)
the due execution, effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or document in connection therewith. None of the Issuing Bank, the Agent,
any of their respective Related Parties nor any correspondent, participant or assignee of the
Issuing Bank shall be liable or responsible for any of the matters described in clauses (i) through
(v) of Section 2.3.1(h); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrowers may have a claim against the Issuing Bank, and the Issuing
Bank may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by the Borrowers which the Borrowers prove
were caused by the Issuing Bank’s bad faith, willful misconduct or gross negligence or the Issuing
Bank’s failure to pay under any Letter of Credit after the presentation to it by the beneficiary of
a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of
Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary, and the Issuing Bank shall
not be responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

2.3.5. Applicability of ISP. Unless otherwise expressly agreed by the Issuing Bank
and the Borrowers when a Letter of Credit is issued, the rules of the ISP shall apply to each
Letter of Credit.

2.4. Increase in Tranche A Revolver Commitments.

2.4.1. Request for Increase, Etc. Provided no Default or Event of Default has
occurred and is continuing, upon notice to the Agent (which shall promptly notify the Lenders or
such subset of Lenders as requested by the Borrower Agent), the Borrower Agent may, not more than
two (2) times in any calendar year, request an increase in the Tranche A Revolver Commitments;
provided that in no event shall the aggregate Tranche A Revolver Commitments (after giving
effect to all requested increases therein) exceed $800,000,000. Any such increase in the Tranche A
Revolver Commitments may be provided by, at the election of the Borrower Agent, any Lender willing
to participate in such increase or, subject to the approval of the Agent, Eligible Assignees
designated by the Borrower Agent that are willing to participate in such increase (each, an
“Increasing Lender”) who shall become a Lender pursuant to a joinder agreement in form and
substance reasonably satisfactory to the Agent, pursuant to which such Eligible Assignees shall
become a party to this Loan Agreement. Any increase in the Tranche A Revolver Commitments shall be
in a minimum amount of $25,000,000 and shall be on the same terms and conditions as this Loan
Agreement and the other Loan Documents (except with respect to any fees that may be agreed among
the Borrowers, MLPFS, the Agent and any Lender or Increasing Lender participating in connection
with such increase, which amounts shall not be subject to any “pro rata sharing” provisions
hereof). The Borrower Agent shall determine (A) the final allocation of such increase among
Increasing Lenders and Schedule 1.1(a) attached hereto shall be automatically updated to reflect
the same and (B) the effective date (the “Increase Effective Date”) of any such increase.
Nothing contained herein shall constitute, or otherwise be deemed to be, a commitment on the part
of any Lender to increase its Tranche A Revolver Commitment hereunder.

 

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2.4.2. Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Borrower Agent shall deliver to the Agent a certificate of each Obligor dated as of
the Increase Effective Date signed by a Senior Officer of such Obligor (i) certifying and attaching
the resolutions adopted by such Obligor approving or consenting to such increase and (ii)
certifying that, before and after giving effect to such increase, (A) the representations and
warranties contained in Section 9 and the other Loan Documents are true and correct in all material
respects on and as of the Increase Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are true and correct in
all material respects as of such earlier date, and except that for purposes of this Section 2.4,
the representations and warranties contained in Section 9.1.8 shall be deemed to refer to the most
recent financial statements furnished to the Agent under this Loan Agreement, and (B) no Default or
Event of Default has occurred and is continuing. The Borrowers shall prepay any Loans outstanding
on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.9) to
the extent necessary to keep the outstanding Tranche A Revolver Loans ratable with any revised Pro
Rata shares arising from any nonratable increase in the Tranche A Revolver Commitments under this
Section 2.4.

SECTION 3. INTEREST, FEES AND CHARGES

3.1. Interest.

3.1.1. Rates and Payment of Interest.

(a) The Obligations shall bear interest (i) if a Base Rate Tranche A Revolver Loan, at the
Base Rate in effect from time to time, plus the Applicable Margin for Base Rate Tranche A Revolver
Loans; (ii) if a Base Rate Tranche A-1 Revolver Loan, at the Base Rate in effect from time to time,
plus the Applicable Margin for Base Rate Tranche A-1 Revolver Loans; (iii) if a LIBOR Tranche A
Revolver Loan, at Adjusted LIBOR for the applicable Interest Period, plus the Applicable Margin for
LIBOR Tranche A Revolver Loans; (iv) if a LIBOR Tranche A-1 Revolver Loan, at Adjusted LIBOR for
the applicable Interest Period, plus the Applicable Margin for LIBOR Tranche A-1 Revolver Loans;
and (v) if any other Obligation (including, to the extent permitted by law, interest not paid when
due), at the Base Rate in effect from time to time, plus the Applicable Margin for Base Rate
Tranche A-1 Revolver Loans. Interest shall accrue from the date the Loan is advanced or the
Obligation is incurred or payable, until paid by Borrowers. If a Loan is repaid on the same day
made, one day’s interest shall accrue.

(b) During the occurrence and continuance of any Event of Default, at the election of the
Agent or the Required Lenders, Obligations shall bear interest at the Default Rate. Each Borrower
acknowledges that the cost, expense and risk to Agent and each Lender due to an Event of Default
are difficult to ascertain and that the Default Rate is a fair and reasonable estimate to
compensate Agent and Lenders for such added cost, expense and risk.

(c) Interest accrued on the Loans shall be due and payable in arrears, (i) with respect to
each Base Rate Loan, on the first Business Day of each month, (ii) with respect to each LIBOR Loan,
on the last day of its Interest Period; provided that if any Interest Period for a
LIBOR Loan exceeds three months, interest accrued on such LIBOR Loan shall also be due and payable
on the respective dates that fall every three months after the beginning of such Interest Period,
(iii) on any date of prepayment, with respect to the principal amount of Loans being prepaid; and
(iv) with respect to any termination or reduction of the Tranche A Revolver Commitments or the
Tranche A-1 Revolver Commitments, on the date of such termination or reduction with respect to the
principal amount of Loans where the commitment to make such Loans is being terminated. Interest
accrued on any other Obligations shall be due and payable as provided in the Loan Documents and, if
no payment date is specified, shall be due and payable on demand. Notwithstanding the foregoing,
interest accrued at the Default Rate shall be due and payable on demand.

 

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3.1.2. Application of Adjusted LIBOR to Outstanding Loans.

(a) Borrowers may on any Business Day, subject to delivery of a Notice of
Conversion/Continuation, elect to convert any portion of the Base Rate Tranche A Revolver Loans to,
or to continue any LIBOR Tranche A Revolver Loan at the end of its Interest Period as, a LIBOR
Tranche A Revolver Loan. Borrowers may on any Business Day, subject to delivery of a Notice of
Conversion/Continuation, elect to convert any portion of the Base Rate Tranche A-1 Revolver Loans
to, or to continue any LIBOR Tranche A-1 Revolver Loan at the end of its Interest Period as, a
LIBOR Tranche A-1 Revolver Loan. During the occurrence and continuance of any Default or Event of
Default, Agent may (and shall at the direction of Required Lenders) declare that no Loan may be
made, converted or continued as a Tranche A LIBOR Revolver Loan. During the occurrence and
continuance of any Default or Event of Default, Agent may (and shall at the direction of Required
Lenders) declare that no Loan may be made, converted or continued as a Tranche A-1 LIBOR Revolver
Loan.

(b) Whenever Borrowers desire to convert or continue Loans as LIBOR Loans, Borrower Agent
shall give Agent a Notice of Conversion/Continuation, no later than 11:00 a.m. at least three
Business Days before the requested conversion or continuation date. Promptly after receiving any
such notice, Agent shall notify each Tranche A Lender or Tranche A-1 Lender, as applicable,
thereof. Each Notice of Conversion/Continuation shall be irrevocable, and shall specify the
aggregate principal amount of Loans to be converted or continued, the conversion or continuation
date (which shall be a Business Day), and the duration of the Interest Period (which shall be
deemed to be one month if not specified). If, upon the expiration of any Interest Period in
respect of any LIBOR Tranche A Revolver Loans, Borrowers shall have failed to deliver a Notice of
Conversion/Continuation, they shall be deemed to have elected to convert such Loans into Base Rate
Tranche A Revolver Loans. If, upon the expiration of any Interest Period in respect of any LIBOR
Tranche A-1 Revolver Loans, Borrowers shall have failed to deliver a Notice of
Conversion/Continuation, they shall be deemed to have elected to convert such Loans into Base Rate
Tranche A-1 Revolver Loans.

3.1.3. Interest Periods. In connection with the making, conversion or continuation of
any LIBOR Loans, Borrowers shall select an interest period (“Interest Period”) to apply,
which interest period shall be one, two, three or six months; provided, however,
that:

(a) the Interest Period shall commence on the date the Loan is made or continued as, or
converted into, a LIBOR Loan, and shall expire on the numerically corresponding day in the calendar
month at its end;

(b) if any Interest Period commences on a day for which there is no corresponding day in the
calendar month at its end or if such corresponding day falls after the last Business Day of such
month, then the Interest Period shall expire on the last Business Day of such month; and if any
Interest Period would expire on a day that is not a Business Day, the period shall expire on the
next Business Day; and

(c) no Interest Period shall extend beyond the Termination Date.

3.1.4. Interest Rate Not Ascertainable. If Agent shall determine that on any date for
determining Adjusted LIBOR, due to any circumstance affecting the London interbank market, adequate
and fair means do not exist for ascertaining such rate on the basis provided herein, then Agent
shall immediately notify Borrowers of such determination. Until Agent notifies Borrowers that such
circumstance no longer exists, the obligation of Lenders to make LIBOR Loans shall be suspended,
and no further Loans may be converted into or continued as LIBOR Loans.

 

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3.2. Fees.

3.2.1. Unused Line Fee. Borrowers shall pay to Agent (i) for the Pro Rata benefit of
the Tranche A Lenders, a fee equal to Unused Line Fee Rate then in effect times the amount by which
the Tranche A Revolver Commitments exceed the average daily principal balance of Tranche A Revolver
Loans and stated amount of Letters of Credit during any month and (ii) for the Pro Rata benefit of
the Tranche A-1 Lenders, a fee equal to Unused Line Fee Rate then in effect times the amount by
which the Tranche A-1 Revolver Commitments exceed the average daily principal balance of Tranche
A-1 Revolver Loans during any month. The fees payable under this Section 3.2.1 shall be payable in
arrears, on the first Business Day of each month and on the Commitment Termination Date.

3.2.2. LC Facility Fees. Borrowers shall pay (a) to Agent, for the Pro Rata benefit
of the Tranche A Lenders, a fee equal to the Applicable Margin in effect for LIBOR Tranche A
Revolver Loans times the average daily stated amount of Letters of Credit, which fee shall be
payable monthly in arrears, on the first Business Day of each month; provided, however, any
such fee otherwise payable for the account of a Defaulting Lender with respect to any Letter of
Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the
Issuing Bank shall be payable, to the maximum extent permitted by Applicable Law, to the other
Lenders in accordance with the upward adjustments in their respective Pro Rata shares allocable to
such Letter of Credit pursuant to Section 4.2, with the balance of such fee, if any, payable to the
Issuing Bank for its own account; (b) to each Issuing Bank, a fronting fee, for the account of such
Issuing Bank, with respect to each Letter of Credit issued by such Issuing Bank in the amount
agreed to between such Issuing Bank and the Borrower Agent, which fee shall be payable upon
issuance of the Letter of Credit and on each anniversary date of such issuance, and shall be
payable on any increase in stated amount made between any such dates; and (c) to Issuing Bank, for
its own account, all customary charges associated with the issuance, amending, negotiating,
payment, processing, transfer and administration of Letters of Credit, which charges shall be paid
as and when incurred. During the occurrence and continuance of an Event of Default, at the
election of the Agent or the Required Lenders, the fee payable under clause (a) shall be increased
by 2% per annum.

3.2.3. Agent Fees. In consideration of Agent’s syndication of the Commitments and
service as Agent hereunder, Parent and Borrowers shall pay to Agent, for its own account, the fees
described in the Fee Letter.

3.3. Computation of Interest, Fees, Yield Protection. All computations of interest
for Base Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be,
and actual days elapsed. All other computation of interest, as well as fees and other charges
calculated on a per annum basis, shall be computed for the actual days elapsed, based on a year of
360 days. Each determination by Agent of any interest, fees or interest rate hereunder shall be
final, conclusive and binding for all purposes, absent error. All fees shall be fully earned when
due and shall not be subject to rebate or refund, nor subject to proration except as specifically
provided herein. All fees payable under Section 3.2 are compensation for services and are not, and
shall not be deemed to be, interest or any other charge for the use, forbearance or detention of
money. A certificate as to amounts payable by Borrowers under Section 3.4, 3.6, 3.7, 3.9 or 5.8,
submitted to Borrowers by Agent or the affected Lender, as applicable, shall be final, conclusive
and binding for all purposes, absent error.

3.4. Reimbursement Obligations. Borrowers shall reimburse Agent and each
Co-Collateral Agent for all Extraordinary Expenses. Borrowers shall also reimburse Agent for all
reasonable and documented legal fees of one outside counsel, one local counsel in each relevant
jurisdiction (as determined by the Agent in its reasonable discretion), one special or regulatory
counsel in respect of each matter (as reasonably required by the Agent) and one conflict of
interest counsel (as determined by the Agent in its reasonable discretion), accounting, appraisal,
consulting and other reasonable and documented fees, out-of-pocket costs and expenses incurred by
it in connection with (a) syndication, negotiation and preparation of any Loan Documents, including
any amendment or other modification thereof; (b) administration of and actions relating to any
Collateral, Loan Documents, and transactions

 

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contemplated thereby, including any actions taken to
perfect or maintain priority of Agent’s Liens on any
 Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c)
subject to the limits of Section 10.1.1(b), each inspection, audit or appraisal with respect to any
Obligor or Collateral, whether prepared by Agent’s personnel or a third party. Borrowers shall
also reimburse Lenders for all costs and expenses incurred by them (but limited to legal fees of
one outside counsel for all Lenders, one local counsel in each relevant jurisdiction (as determined
by the Lenders in their reasonable discretion), one special or regulatory counsel in respect of
each matter (as reasonably required by the Lenders) and one conflict of interest counsel (as
determined by any Lender in its reasonable discretion)) during the occurrence and continuance of an
Event of Default in connection with the enforcement or preservation of any rights under this Loan
Agreement or any of the other Loan Documents. Borrowers shall also reimburse each Co-Collateral
Agent for all reasonable and documented legal fees of one outside counsel incurred by it in
connection with (a) syndication, negotiation and preparation of any Loan Documents, including any
amendment, waiver, consent, supplement, restatement or other modification thereof or thereto; and
(b) administration and enforcement of and actions relating to any Collateral, Loan Documents, and
transactions contemplated thereby. All amounts reimbursable by Borrowers under this Section 3.4
shall constitute Obligations secured by the Collateral and shall be payable within ten Business
Days after presentation by Agent to Borrowers of a reasonably detailed itemization of such amounts.

3.5. Illegality. Notwithstanding anything to the contrary herein, if (a) any change
in any law or interpretation thereof made after the date hereof, by any Governmental Authority
makes it unlawful for a Lender to make or maintain a LIBOR Loan or to maintain any Commitment with
respect to LIBOR Loans or (b) a Lender determines that the making or continuance of a LIBOR Loan
has become impracticable as a result of a circumstance that adversely affects the London interbank
market or the position of such Lender in such market, then such Lender shall give notice thereof to
Agent and Borrowers and may (i) declare that LIBOR Loans will not thereafter be made by such
Lender, whereupon (x) where such Lender is a Tranche A Lender any request for a LIBOR Tranche A
Revolver Loan from such Lender shall be deemed to be a request for a Base Rate Tranche A Revolver
Loan and (y) where such Lender is a Tranche A-1 Lender any request for a LIBOR Tranche A-1 Revolver
Loan from such Lender shall be deemed to be a request for a Base Rate Tranche A-1 Revolver Loan
unless such Lender’s declaration has been withdrawn (and it shall be withdrawn promptly upon
cessation of the circumstances described in clause (a) or (b) above); and/or (ii) (x) where such
Lender is a Tranche A Lender, require that all outstanding LIBOR Tranche A Revolver Loans made by
such Lender be converted to Base Rate Tranche A Revolver Loans immediately, in which event all
outstanding LIBOR Tranche A Revolver Loans of such Lender shall be immediately converted to Base
Rate Tranche A Revolver Loans and (y) where such Lender is a Tranche A-1 Lender, require that all
outstanding LIBOR Tranche A-1 Revolver Loans made by such Lender be converted to Base Rate Tranche
A-1 Revolver Loans immediately, in which event all outstanding LIBOR Tranche A-1 Revolver Loans of
such Lender shall be immediately converted to Base Rate Tranche A-1 Revolver Loans.
Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer
Protection Act, and all requests, regulations, rules, guidelines and directives promulgated
thereunder and (y) all requests, rules, guidelines or directives promulgated by the Bank for
International settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall,
in each case, be deemed to have been adopted after the date hereof, regardless of the date enacted,
adopted or issued.

3.6. Increased Costs. If, by reason of (a) the introduction of or any change
(including any change by way of imposition or increase of Statutory Reserves or other reserve
requirements) in any law or interpretation thereof, in each case made after the date hereof, or (b)
the compliance with any guideline or request from any Governmental Authority or other Person
exercising control over banks or financial institutions generally (whether or not having the force
of law), promulgated after the date hereof:

(i) a Lender shall be subject to any Tax with respect to any LIBOR Loan or Letter of
Credit or its obligation to make LIBOR Loans, issue Letters of Credit or participate in LC
Obligations, or a change shall result in the basis of taxation of any payment to a Lender
with respect to its LIBOR Loans or its obligation to make LIBOR Loans, issue Letters of
Credit or participate in LC Obligations (except for Excluded Taxes and subject to Sections
5.8 and 5.9); or

 

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(ii) any reserve (including any imposed by the Board of Governors), special deposits or
similar requirement against assets of, deposits with or for the account of, or credit
extended by, a Lender shall be imposed or deemed applicable, or any other condition
affecting a Lender’s LIBOR Loans or obligation to make LIBOR Loans, issue Letters of Credit
or participate in LC Obligations shall be imposed on such Lender or the London interbank
market;

and as a result there shall be a material increase in the cost to such Lender of agreeing to make
or making, funding or maintaining LIBOR Loans, Letters of Credit or participations in LC
Obligations (except to the extent already included in determination of Adjusted LIBOR), or there
shall be a reduction in the amount receivable by such Lender, then the Lender shall promptly notify
Borrowers and Agent of such event, and Borrowers shall, within five (5) Business Days following
demand therefor, pay such Lender the amount of such increased costs or reduced amounts; provided,
however, that such Lender shall repay to Borrowers any amounts paid by Borrowers to such Lender
under this Section 3.6 at any time such Lender shall determine that such change or compliance was
not applicable to, or required by, such Lender.

If a Lender determines that, because of circumstances described above or any other
circumstances arising hereafter affecting such Lender, the London interbank market or the Lender’s
position in such market, Adjusted LIBOR or its Applicable Margin, as applicable, will not
adequately and fairly reflect the cost to such Lender of funding or maintaining LIBOR Loans,
issuing Letters of Credit or participating in LC Obligations, then (A) the Lender shall promptly
notify Borrowers and Agent of such event; (B) such Lender’s obligation to make or maintain LIBOR
Loans, issue Letters of Credit or participate in LC Obligations shall be immediately suspended,
until each condition giving rise to such suspension no longer exists; and (C) (x) where such Lender
is a Tranche A Lender such Lender shall make a Base Rate Tranche A Revolver Loan as part of any
requested Borrowing of LIBOR Tranche A Revolver Loans, which Base Rate Tranche A Revolver Loan
shall, for all purposes, be considered part of such Borrowing and (y) where such Lender is a
Tranche A-1 Lender such Lender shall make a Base Rate Tranche A-1 Revolver Loan as part of any
requested Borrowing of LIBOR Tranche A-1 Revolver Loans, which Base Rate Tranche A-1 Revolver Loan
shall, for all purposes, be considered part of such Borrowing.

Within fifteen (15) days after receipt by Borrower Agent of written notice and/or demand from
any Lender (an “Affected Lender”) (i) stating that, pursuant to Section 3.5, that such
Lender can no longer make LIBOR Loans or (ii) demanding payment of additional amounts or increased
costs pursuant to Section 3.6, Borrower Agent may, at its option, notify Agent and such Affected
Lender of its intention to replace the Affected Lender. So long as no Default or Event of Default
shall have occurred and be continuing, Borrower Agent may obtain, at Borrowers’ expense, a
replacement Lender (“Replacement Lender”) for the Affected Lender, which Replacement Lender
must be an Eligible Assignee. If Borrowers obtain a Replacement Lender within ninety (90) days
following notice of their intention to do so, the Affected Lender must sell and assign its Loans
and Commitments to such Replacement Lender for an amount equal to the principal balance of all
Loans held by the Affected Lender and all accrued interest and fees with respect thereto through
the date of such sale; provided that Borrowers shall have reimbursed such Affected
Lender for the additional amounts or increased costs that it is entitled to receive under this Loan
Agreement through the date of such sale and assignment. Notwithstanding the foregoing, Borrowers
shall not have the right to obtain a Replacement Lender if the Affected Lender (i) in the case of a
notice under Section 3.5, rescinds its notice that it can no longer fund LIBOR Loans or (ii) in the
case of a demand under Section 3.6, rescinds its demand for increased costs or additional amounts,
within fifteen (15) days following its receipt of Borrower Agent’s notice of intention to replace
such Affected Lender. Furthermore, if Borrower Agent gives a notice of intention to replace and do
not so replace such Affected Lender within ninety (90) days thereafter, Borrowers’ rights under
this paragraph as to such noticed replacement shall terminate.

 

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3.7. Capital Adequacy. If a Lender determines that any introduction of or any change
in a Capital Adequacy Regulation, any change in the interpretation or administration of a Capital
Adequacy Regulation by a Governmental Authority charged with interpretation or administration
thereof, or any compliance by such Lender or any Person controlling such Lender with a Capital
Adequacy Regulation, in each case made after the date hereof, increases the amount of capital
required or expected to be maintained by such Lender or Person (taking into consideration its
capital adequacy policies and desired return on capital) as a consequence of such Lender’s
Commitments, Loans, participations in LC Obligations or other obligations under the Loan Documents,
then Borrowers shall, within five (5) Business Days following demand therefor, pay such Lender an
amount sufficient to compensate for such increase. A Lender’s demand for payment shall set forth
the nature of the occurrence giving rise to such compensation and a calculation of the amount to be
paid. In determining such amount, the Lender may use any reasonable averaging and attribution
method.

3.8. Mitigation. Each Lender agrees that, upon becoming aware that it is subject to
Section 3.5, 3.6, 3.7 or 5.8, it will take reasonable measures to reduce Borrowers’ obligations
under such Sections, including funding or maintaining its Commitments or Loans through another
office, as long as use of such measures would not adversely affect the Lender’s Commitments, Loans,
business or interests, and would not be inconsistent with any applicable legal or regulatory
restriction.

3.9. Funding Losses. If for any reason (other than default by a Lender) (a) any
Borrowing of, or conversion to or continuation of, a LIBOR Loan does not occur on the date
specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not
withdrawn), (b) any repayment or conversion of a LIBOR Loan occurs on a day other than the end of
its Interest Period, or (c) Borrowers fail to repay a LIBOR Loan when required hereunder, then
Borrowers shall pay to Agent its customary administrative charge and to each Lender all losses and
expenses that it sustains as a consequence thereof, including any loss or expense arising from
liquidation or redeployment of funds or from fees payable to terminate deposits of matching funds,
but excluding any loss of profits in connection therewith. Lenders shall not be required to
purchase Dollar deposits in the London interbank market or any other offshore Dollar market to fund
any LIBOR Loan, but the provisions hereof shall be deemed to apply as if each Lender had purchased
such deposits to fund its LIBOR Loans.

3.10. Maximum Interest. In no event shall interest, charges or other amounts that are
contracted for, charged or received by Agent and Lenders pursuant to any Loan Documents and that
are deemed interest under Applicable Law (“interest”) exceed the highest rate permissible
under Applicable Law (“maximum rate”). If, in any month, any interest rate, absent the
foregoing limitation, would have exceeded the maximum rate, then the interest rate for that month
shall be the maximum rate and, if in a future month, that interest rate would otherwise be less
than the maximum rate, then the rate shall remain at the maximum rate until the amount of interest
actually paid equals the amount of interest which would have accrued if it had not been limited by
the maximum rate. If, upon payment in full, in cash, of the Obligations, the total amount of
interest actually paid under the Loan Documents is less than the total amount of interest that
would, but for this Section 3.10, have accrued under the Loan Documents, then Borrowers shall, to
the extent permitted by Applicable Law, pay to Agent, for the account of Lenders, (a) the lesser of
(i) the amount of interest that would have been charged if the maximum rate had been in effect at
all times, or (ii) the amount of interest that would have accrued had the interest rate otherwise
set forth in the Loan Documents been in effect, minus (b) the amount of interest actually
paid under the Loan Documents. If a court of competent jurisdiction determines that Agent or any
Lender has received interest in excess of the maximum amount allowed under Applicable Law, such
excess shall be deemed received on account of, and shall automatically be applied to reduce,
Obligations other than interest (regardless of any erroneous application thereof by Agent or any
Lender), and upon payment in full, in cash of the Obligations, any balance shall be refunded to
Borrowers. In determining whether any excess interest has been charged or received by Agent or any
Lender, all interest at any time charged or received from Borrowers in connection with the Loan
Documents shall, to the extent permitted by Applicable Law, be amortized, prorated, allocated and
spread in equal parts throughout the full term of the Obligations.

 

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SECTION 4. LOAN ADMINISTRATION

4.1. Manner of Borrowing and Funding Loans.

4.1.1.  Notice of Borrowing.

(a) Whenever Borrowers desire funding of a Borrowing of Loans, Borrower Agent shall give Agent
a Notice of Borrowing. Such notice must be received by Agent no later than 12:00 noon (i) on the
Business Day of the requested funding date, in the case of Base Rate Loans, and (ii) at least three
Business Days prior to the requested funding date, in the case of LIBOR Loans. Notices received
after 12:00 noon shall be deemed received on the next Business Day. Each Notice of Borrowing shall
be irrevocable and shall specify (A) the principal amount of the Borrowing, (B) the requested
funding date (which must be a Business Day), (C) whether the Borrowing is to be made as Base Rate
Tranche A Revolver Loans, Base Rate Tranche A-1 Revolver Loans, LIBOR Tranche A Revolver Loans or
LIBOR Tranche A-1 Revolver Loans, and (D) in the case of LIBOR Loans, the duration of the
applicable Interest Period (which shall be deemed to be one month if not specified).

(b) Unless payment is otherwise timely made by Borrowers, the becoming due of any Obligations
(whether principal, interest, fees or other charges, including Extraordinary Expenses, LC
Obligations, Cash Collateral and Bank Product Debt) shall be deemed to be a request for Base Rate
Loans on the due date, in the amount of such Obligations. Such Base Rate Loans shall be Base Rate
Tranche A-1 Revolver Loans so long as there is any Tranche A-1 Excess Availability and thereafter
shall be Base Rate Tranche A Revolver Loans.

(c) If Borrowers establish a controlled disbursement account with Agent or any Affiliate of
Agent, then the presentation for payment of any check or other item of payment drawn on such
account at a time when there are insufficient funds to cover it shall be deemed to be, on the date
of such presentation, in the amount of the check and items presented for payment, a request for
Base Rate Tranche A-1 Revolver Loans to the extent that there exists sufficient Tranche A-1 Excess
Availability therefore and thereafter shall be deemed to be a request for Base Rate Tranche A
Revolver Loans. The proceeds of such Loans may be disbursed directly to the controlled
disbursement account or other appropriate account.

4.1.2. Fundings by Lenders. Each Tranche A Lender shall timely honor its Tranche A
Revolver Commitment by funding its Pro Rata share of each Borrowing of Tranche A Revolver Loans
that is properly requested hereunder and each Tranche A-1 Lender shall timely honor its Tranche A-1
Revolver Commitment by funding its Pro Rata share of each Borrowing of Tranche A-1 Revolver Loans
that is properly requested hereunder. Except for Borrowings to be made as Swingline Loans, Agent
shall endeavor to notify Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by
12:00 noon on the proposed funding date for Base Rate Loans or by 3:00 p.m. at least three Business
Days before any proposed funding of LIBOR Loans. Each Lender shall fund to Agent such Lender’s Pro
Rata share of the Borrowing to the account specified by Agent in immediately available funds not
later than 2:00 p.m. on the requested funding date, unless Agent’s notice is received after the
times provided above, in which event Lender shall fund its Pro Rata share by 11:00 a.m. on the next
Business Day. Subject to its receipt of such amounts from Lenders, Agent shall disburse the
proceeds of the Loans as directed by Borrower Agent. Unless Agent shall have received (in
sufficient time to act) written notice from a Lender that it does not intend to fund its Pro Rata
share of a Borrowing, Agent may assume that such Lender has deposited or promptly will deposit its
share with Agent, and Agent may disburse a corresponding amount to Borrowers. If a Lender’s share
of any Borrowing is not in fact received by Agent, then Borrowers agree to repay to Agent on demand
the amount of such share, together with interest thereon from the date disbursed until repaid, at
the rate applicable to such Borrowing. If any Lender makes available to the Agent funds for any
Loan to be made by such Lender as provided in this Loan Agreement, and such funds are not made
available to the Borrowers by the Agent because the conditions to the applicable credit
extension set forth in Section 6 are not satisfied or waived in accordance with the terms
hereof, the Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

 

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4.1.3. Swingline Loans; Settlement.

(a) In reliance upon the agreements of the other Lenders set forth in this Section 4.1.3,
Agent may, in its sole and absolute discretion (unless Agent has knowledge that the conditions set
forth in Section 6.2 have not been met), advance Swingline Loans to Borrowers out of Agent’s own
funds, up to an aggregate outstanding amount of $75,000,000, unless the funding is specifically
required to be made by all Lenders hereunder. Each Swingline Loan shall constitute a Base Rate
Tranche A Revolver Loan for all purposes, except that payments thereon shall be made to Agent for
its own account. The obligation of Borrowers to repay Swingline Loans shall be evidenced by the
records of Agent and need not be evidenced by any promissory note. If the Agent shall elect not to
fund a requested Swingline Loan for any reason, the Agent shall notify the Borrower Agent of such
election after the receipt of the borrowing notice in respect of such Swingline Loan.

(b) To facilitate administration of the Loans, Tranche A Lenders and Agent agree (which
agreement is solely among them, and not for the benefit of or enforceable by any Borrower) that
settlement among them with respect to Swingline Loans and other Tranche A Revolver Loans may take
place periodically on a date determined from time to time by Agent, which shall occur at least once
every week. On each settlement date, settlement shall be made with each Lender in accordance with
the Settlement Report delivered by Agent to Tranche A Lenders. Between settlement dates, Agent may
in its discretion apply payments on Loans to Swingline Loans, regardless of any designation by
Borrower or any provision herein to the contrary. Each Tranche A Lender’s obligation to make
settlements with Agent is absolute and unconditional, without offset, counterclaim or other
defense, and whether or not the Tranche A Commitments have terminated, a Tranche A Overadvance
exists, or the conditions in Section 6 are satisfied. If, due to an Insolvency Proceeding with
respect to a Borrower or otherwise, any Swingline Loan may not be settled among Tranche A Lenders
hereunder, then each Tranche A Lender shall be deemed to have purchased from Agent a Pro Rata
participation in each unpaid Swingline Loan and shall transfer the amount of such participation to
Agent, in immediately available funds, within one Business Day after Agent’s request therefor.

4.1.4. Notices. Each Borrower authorizes Agent and Lenders to extend, convert or
continue Loans, effect selections of interest rates, and transfer funds to or on behalf of
Borrowers based on telephonic or other e-mailed, electronic or internet-based instructions in form,
in each case, acceptable to the Agent and the Borrower Agent. Borrower Agent shall confirm each
such request by prompt delivery to Agent of a Notice of Borrowing or Notice of
Conversion/Continuation, if applicable, but if it differs in any material respect from the action
taken by Agent or Lenders, the records of Agent and Lenders shall govern. Neither Agent nor any
Lender shall have any liability for any loss suffered by a Borrower as a result of Agent or any
Lender acting upon its understanding of telephonic or other e-mailed, electronic or internet-based
instructions in form, in each case, reasonably acceptable to the Agent and the Borrowers, from a
person believed in good faith by Agent or any Lender to be a person authorized to give such
instructions on a Borrower’s behalf.

4.2. Defaulting Lender.

4.2.1. If a Lender is a Defaulting Lender, Agent may (but shall not be required to), in its
discretion, retain payments that would otherwise be made to such Defaulting Lender hereunder, apply
the payments to such Lender’s defaulted obligations or readvance the funds to Borrowers in
accordance with this Loan Agreement. The failure of any Lender to fund a Loan or to make a payment
in respect of a LC Obligation shall not relieve any other Lender of its obligations hereunder, and
no Lender shall be responsible for default by another Lender. Lenders and Agent agree (which
agreement is solely among them, and not for the benefit of or enforceable by any Borrower) that,
solely for purposes of determining a
Defaulting Lender’s right to vote on matters relating to the Loan Documents and to share in
payments, fees and Collateral proceeds thereunder, a Defaulting Lender shall not be deemed to be a
“Lender” until all its defaulted obligations have been cured to the satisfaction of the Agent, the
Borrower Agent and the Issuing Bank.

 

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4.2.2. Notwithstanding anything to the contrary contained in this Agreement, if any Lender
becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender,
to the extent permitted by applicable Law:

(a) That Defaulting Lender (x) shall not be entitled to receive any unused line fee pursuant
to Section 3.2.1 for any period during which that Lender is a Defaulting Lender (and the Borrower
shall not be required to pay any such fee that otherwise would have been required to have been paid
to that Defaulting Lender) and (y) shall be limited in its right to receive LC Facility fees as
provided in Section 3.2.2(a).

(b) During any period in which there is a Defaulting Lender, for purposes of computing the
amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations
in Letters of Credit or Swingline Loans pursuant to Section 3.2.2(a) or 4.1, the “Pro Rata” share
or participation of each non-Defaulting Lender shall be computed without giving effect to the
Tranche A Revolver Commitment of that Defaulting Lender; provided, that, (i) each such
reallocation shall be given effect only if, at the date the applicable Lender becomes a Defaulting
Lender, no Default or Event of Default exists; and (ii) the aggregate obligation of each
non-Defaulting Tranche A Lender to acquire, refinance or fund participations in Letters of Credit
and Swingline Loans shall not exceed the positive difference, if any, of (1) the Tranche A Revolver
Commitment of that non-Defaulting Lender minus (2) the aggregate Outstanding Amount of the
Tranche A Revolver Loans of that Lender.

4.3. Number and Amount of LIBOR Loans; Determination of Rate. For ease of
administration, all LIBOR Tranche A Revolver Loans having the same length and beginning date of
their Interest Periods shall be aggregated together, and such Loans shall be allocated among
Tranche A Lenders on a Pro Rata basis and all LIBOR Tranche A-1 Revolver Loans having the same
length and beginning date of their Interest Periods shall be aggregated together, and such Loans
shall be allocated among Tranche A-1 Lenders on a Pro Rata basis. No more than ten LIBOR Tranche A
Revolver Loans and LIBOR Tranche A-1 Revolver Loans, in the aggregate, may be outstanding at any
time, and each aggregate LIBOR Loan when made, continued or converted shall be in a minimum amount
of $10,000,000, or an increment of $1,000,000 in excess thereof. Upon determining Adjusted LIBOR
for any Interest Period requested by Borrower Agent, Agent shall promptly notify Borrowers thereof
by telephone or electronically and, if requested by Borrower Agent, shall confirm any telephonic
notice in writing.

4.4. Borrower Agent. Each Borrower hereby designates Bon-Ton (“Borrower
Agent”) as its representative and agent for all purposes under the Loan Documents, including
requests for Loans and Letters of Credit, designation of interest rates, delivery or receipt of
communications with Agent, Issuing Bank or any Lender, preparation and delivery of Borrowing Base
Certificates and financial reports, receipt and payment of Obligations, requests for waivers,
amendments or other accommodations, actions under the Loan Documents (including in respect of
compliance with covenants), and all other dealings with Agent, Issuing Bank or any Lender.
Borrower Agent hereby accepts such appointment. Agent and Lenders shall be entitled to rely upon,
and shall be fully protected in relying upon, any notice or communication (including any notice of
borrowing) delivered by Borrower Agent on behalf of any Borrower. Agent and Lenders may give any
notice or communication with a Borrower hereunder to Borrower Agent on behalf of such Borrower.
Agent shall have the right, in its discretion, to deal exclusively with Borrower Agent for any or
all purposes under the Loan Documents. Each Borrower agrees that any notice, election,
communication, representation, agreement or undertaking made on its behalf by Borrower Agent shall
be binding upon and enforceable against it. Any notice, certificate or
other communication under this Loan Agreement or any other Loan Document that is required,
permitted or contemplated to be delivered by a Borrower or the Borrowers may instead be delivered
by the Borrower Agent.

 

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4.5. One Obligation. The Loans, LC Obligations and other Obligations shall constitute
one general obligation of Borrowers and (unless otherwise expressly provided in any Loan Document)
shall be secured by Agent’s Lien upon all Collateral; provided, however, that Agent
and each Lender shall be deemed to be a creditor of, and the holder of a separate claim against,
each Borrower to the extent of any Obligations jointly or severally owed by such Borrower.

4.6. Effect of Termination. On the effective date of any termination of the
Commitments, all Obligations shall be immediately due and payable, and any Lender may terminate its
and its Affiliates’ Bank Products (including, with the consent of Agent, any Cash Management
Services). All undertakings of Borrowers contained in the Loan Documents shall survive any
termination, and Agent shall retain its Liens in the Collateral and all of its rights and remedies
under the Loan Documents until the occurrence of payment in full, in cash, of all accrued and
unpaid principal, interest and fees, and any other Obligations then due and owing, the payment of
any appropriate collateral deposits in connection with other Obligations and the occurrence of the
Commitment Termination Date. Notwithstanding such payment in full, in cash, of all accrued and
unpaid principal, interest and fees, and any other Obligations then due and owing, the payment of
any appropriate collateral deposits in connection with other Obligations and the occurrence of the
Commitment Termination Date, Agent shall not be required to terminate its Liens in any Collateral
unless, with respect to any damages Agent may incur as a result of the dishonor or return of
Payment Items applied to Obligations, Agent receives (a) a written agreement, executed by Borrowers
and any Person whose advances are used in whole or in part to satisfy the Obligations, indemnifying
Agent and Lenders from any such damages; or (b) such Cash Collateral as Agent, in its discretion,
deems reasonably necessary to protect against any such damages. The provisions of Sections 2.3,
3.4, 3.6, 3.7, 3.9, 5.4, 5.8, 12, and 14.2, and the obligation of each Obligor and Lender with
respect to each indemnity given by it in any Loan Document, shall survive Full Payment of the
Obligations and any release relating to this credit facility.

SECTION 5. PAYMENTS

5.1. General Payment Provisions. All payments of Obligations shall be made in
Dollars, without condition, deduction, offset, counterclaim or defense of any kind, free of (and
without deduction for) any Taxes, and in immediately available funds, not later than 2:00 p.m. on
the due date. Any payment after such time shall be deemed made on the next Business Day.
Borrowers may, at the time of payment, specify to Agent the Obligations to which such payment is to
be applied, but Agent shall in all events retain the right to apply such payment in such manner as
Agent, subject to the provisions hereof, may determine to be appropriate. If any payment under the
Loan Documents shall be stated to be due on a day other than a Business Day, the due date shall be
extended to the next Business Day and such extension of time shall be included in any computation
of interest and fees. Any payment of a LIBOR Loan prior to the end of its Interest Period shall be
accompanied by all amounts due under Section 3.9. Any prepayment of the Tranche A Revolver Loan
shall be applied first to Base Rate Tranche A Revolver Loans and then to LIBOR Tranche A Revolver
Loans. Any prepayment of the Tranche A-1 Revolver Loan shall be applied first to Base Rate Tranche
A-1 Revolver Loans and then to LIBOR Tranche A-1 Revolver Loans. Unless the Agent shall have
received notice from the Borrower Agent prior to the time at which any payment is due to the Agent
for the account of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such
payment, the Agent may assume that the Borrowers have made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank,
as the case may be, the amount due. In such event, if the Borrowers have not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to
repay to the Agent forthwith on demand the amount so distributed to such Lender or the Issuing
Bank, in immediately available funds with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment to the Agent,
at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with
banking industry rules on interbank compensation.

 

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5.2. Repayment of Loans. The Loans shall be due and payable in full on the
Termination Date, unless payment is sooner required hereunder. The Loans may be prepaid in
accordance with Section 5.1. The Loans shall also be prepaid as soon as practicable but no later
than three (3) Business Days after the consummation of any Asset Disposition (other than any Asset
Disposition by any SPE or Passive Company) (x) specified in clauses (l) through (s) (other than
clause (r)) of the definition of “Permitted Asset Disposition” or (y) occurring after the
commencement and during the continuation of a Trigger Event Period (or if a Trigger Event would
occur after giving effect to any such Asset Disposition), in each case, in an amount equal to 100%
of the Net Proceeds of such Asset Disposition, with such Net Proceeds to be applied to the
Obligations in accordance with Section 5.5. The Loans shall also be prepaid in accordance with
Section 8.6.2.

5.2.1. Certain Other Mandatory Repayments of the Loans and Reduction of Commitments.
As soon as practicable but no later than three (3) Business Days after (i) store closings,
going-out-of-business or similar sales by all of the Obligors of all or substantially all of their
retail operations or Inventory, (ii) a foreclosure by Agent of its Liens on a material portion of
the Collateral or (iii) a disposition of a material portion of the Collateral by Agent as a result
of the cessation of retail operations at all or substantially all Stores, excluding Force Majeure
or Ordinary Course of Business temporary closures, the Borrowers agree and acknowledge that the Net
Proceeds therefrom shall be applied to the Obligations in accordance with Section 5.5 and the
Commitments shall be permanently reduced in an amount equal to such Net Proceeds so applied. Each
prepayment made pursuant to this Section 5.2.1 shall be accompanied by the payment of accrued
interest to the date of such payment on the amount prepaid.

5.3. Payment of Other Obligations. Obligations other than Loans, including LC
Obligations and Extraordinary Expenses, shall be paid when due by Borrowers as provided in the Loan
Documents or, if no payment date is specified, on demand.

5.4. Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any
obligation to marshal any assets in favor of any Obligor or against any Obligations. If any
Obligor makes a payment to Agent or Lenders, or if Agent or any Lender receives payment from the
proceeds of Collateral, exercise of setoff or otherwise, and such payment is subsequently
invalidated or required to be repaid to a trustee, receiver or any other Person, then the
Obligations originally intended to be satisfied, and all Liens, rights and remedies therefor, shall
be revived and continued in full force and effect as if such payment had not been received and any
enforcement or setoff had not occurred.

5.5. Allocation of Payments.

5.5.1. Pre-Default Allocation of Payments. Notwithstanding anything herein to the
contrary, at all times when no Event of Default has occurred and is continuing, all payments,
whether arising from payments by Obligors, realization on Collateral, setoff or otherwise, shall be
allocated as follows:

(a) first, to all costs and expenses, including Extraordinary Expenses, owing to
Agent;

(b) second, to all amounts owing to Agent on Swingline Loans or Protective Advances;

(c) third, to all amounts owing to Issuing Bank on LC Obligations;

 

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(d) fourth, to all Obligations constituting fees owing to the Tranche A Lenders in
their capacity as Tranche A Lenders (excluding Bank Product Debt);

(e) fifth, to all Obligations constituting interest then owing on Tranche A Revolver
Loans (excluding Bank Product Debt);

(f) sixth, to all other Obligations owing to the Tranche A Lenders in their capacity
as Tranche A Lenders (excluding Bank Product Debt);

(g) seventh, to all Obligations constituting fees owing to the Tranche A-1 Lenders in
their capacity as Tranche A-1 Lenders (excluding Bank Product Debt);

(h) eighth, to all Obligations constituting interest then owing on Tranche A-1
Revolver Loans (excluding Bank Product Debt);

(i) ninth, to all other Obligations owing to the Tranche A-1 Lenders in their capacity
as Tranche A-1 Lenders (excluding Bank Product Debt);

(j) tenth, to all Obligations owing to Secured Parties constituting Bank Product Debt
for which Agent has received written notice as provided under the definition of “Bank Product”; and

(k) eleventh, to Bank Product Debt owing to the Lenders and their Affiliates for which
Agent has not received written notice as provided under the definition of “Bank Product”.

Amounts shall be applied to each category of Obligations set forth above until Full Payment thereof
and then to the next category. If amounts are insufficient to satisfy a category, they shall be
applied on a pro rata basis among the Obligations in the category. Amounts distributed with
respect to any Bank Product Debt or LC Obligations shall be the lesser of the applicable LC
Obligations or Bank Product Amount last reported to Agent or the actual LC Obligations or Bank
Product Debt as calculated by the methodology reported to Agent for determining the amount due.
Agent shall have no obligation to calculate the amount to be distributed with respect to any Bank
Product Debt, but may rely upon written notice of the amount (setting forth a reasonably detailed
calculation) from the Secured Party. In the absence of such notice, Agent may assume the amount to
be distributed is the Bank Product Amount last reported to it. The allocations set forth in this
Section 5.5.1 are solely to determine the rights and priorities of Agent and Lenders as among
themselves, and may be changed by agreement among them without the consent of any Obligor.

5.5.2. Post-Default Allocation of Payments. Notwithstanding anything herein to the
contrary, after the occurrence and during the continuance of an Event of Default, monies to be
applied to the Obligations, whether arising from payments by Obligors, realization on Collateral,
setoff or otherwise, shall be allocated as follows:

(a) first, to all costs and expenses, including Extraordinary Expenses, owing to
Agent;

(b) second, to all amounts owing to Agent on Swingline Loans or Protective Advances;

(c) third, to all amounts owing to Issuing Bank on LC Obligations;

(d) fourth, to all Obligations constituting fees owing to the Tranche A Lenders in
their capacity as Tranche A Lenders (excluding Bank Product Debt);

 

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(e) fifth, to all Obligations constituting interest then owing on Tranche A Revolver
Loans (excluding Bank Product Debt);

(f) sixth, to provide Cash Collateral for outstanding Letters of Credit;

(g) seventh, to all other Obligations owing to the Tranche A Lenders in their capacity
as Tranche A Lenders (excluding Bank Product Debt);

(h) eighth, to all Obligations constituting fees owing to the Tranche A-1 Lenders in
their capacity as Tranche A-1 Lenders (excluding Bank Product Debt);

(i) ninth, to all Obligations constituting interest then owing on Tranche A-1 Revolver
Loans (excluding Bank Product Debt);

(j) tenth, to all other Obligations owing to the Tranche A-1 Lenders in their capacity
as Tranche A-1 Lenders (excluding Bank Product Debt);

(k) eleventh, to Bank Product Debt owing to the Secured Parties for which Agent has
received written notice as provided under the definition of “Bank Product”; and

(l) twelfth, to Bank Product Debt owing to the Secured Parties for which Agent has not
received written notice as provided under the definition of “Bank Product”.

Amounts shall be applied to each category of Obligations set forth above until Full Payment thereof
and then to the next category. If amounts are insufficient to satisfy a category, they shall be
applied on a pro rata basis among the Obligations in the category. Amounts distributed with
respect to any Bank Product Debt or LC Obligations shall be the lesser of the applicable LC
Obligations or Bank Product Amount last reported to Agent or the actual LC Obligations or Bank
Product Debt as calculated by the methodology reported to Agent for determining the amount due.
Agent shall have no obligation to calculate the amount to be distributed with respect to any Bank
Product Debt, but may rely upon written notice of the amount (setting forth a reasonably detailed
calculation) from the Secured Party. In the absence of such notice, Agent may assume the amount to
be distributed is the Bank Product Amount last reported to it. The allocations set forth in this
Section 5.5.2 are solely to determine the rights and priorities of Agent and Lenders as among
themselves, and may be changed by agreement among them without the consent of any Obligor. This
Section 5.5.2 is not for the benefit of or enforceable by any Obligor.

5.5.3. Erroneous Application. Agent shall not be liable for any application of
amounts made by it in error (unless it has been determined in a final, non-appealable judgment by a
court of competent jurisdiction that such error was a result of the gross negligence or willful
misconduct of Agent) and if any such application is subsequently determined to have been made in
error, the sole recourse of any Lender or other Person to which such amount should have been made
in error (unless it has been determined in a final, non-appealable judgment by a court of competent
jurisdiction that such error was a result of the gross negligence or willful misconduct of Agent)
shall be to recover the amount from the Person that actually received it (and, if such amount was
received by any Lender, such Lender hereby agrees to return it).

5.6. Application of Payments. On each Business Day occurring prior to the
commencement of a Trigger Event Period, the available balance in the main Dominion Account on each
Business Day (to the extent practicable and consistent with past practices) shall be transferred,
by the Borrowers, to the Borrower Account on the next Business Day (to the extent practicable and
consistent with past practices). On each Business Day after the commencement and during the
continuation of a Trigger Event Period, the available balance in the Dominion Accounts on such
Business Day shall be transferred, by the Agent, to a Borrower Account at Bank of America, and
shall be applied to the Obligations on the next Business Day. Each Obligor irrevocably waives the
right at all times after the commencement and during the
continuation of a Trigger Event Period to direct the application of any payments or Collateral
proceeds, and agrees that Agent (subject to Section 5.5.1 and Section 5.5.2, as applicable) shall
have the continuing, exclusive right to apply and reapply same against the Obligations, in such
manner as Agent deems advisable, notwithstanding any entry by Agent in its records. If, as a
result of Agent’s receipt of Payment Items or proceeds of Collateral, a credit balance exists, the
balance shall not accrue interest in favor of Obligors and shall be made available to Borrowers as
long as no Default or Event of Default exists.

 

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5.7. Loan Account; Account Stated.

5.7.1. Loan Account. Agent shall maintain in accordance with its usual and customary
practices an account or accounts (“Loan Account”) evidencing the Debt of Borrowers
resulting from each Loan or issuance of a Letter of Credit from time to time. Any failure of Agent
to record anything in the Loan Account, or any error in doing so, shall not limit or otherwise
affect the obligation of Borrowers to pay any amount owing hereunder. Agent may maintain a single
Loan Account in the name of Borrower Agent, and each Borrower confirms that such arrangement shall
have no effect on the joint and several character of its liability for the Obligations.

5.7.2. Entries Binding. Entries made in the Loan Account shall constitute presumptive
evidence of the information contained therein. If any information contained in the Loan Account is
provided to or inspected by any Person, then such information shall be conclusive and binding on
such Person for all purposes absent demonstrable error, except to the extent such Person notifies
Agent in writing within 30 days after receipt or inspection that specific information is subject to
dispute.

5.8. Taxes. If any Taxes (except Excluded Taxes) shall be payable by any party due to
the execution, delivery, issuance or recording of any Loan Documents, or the creation or repayment
of any Obligations, Borrowers shall pay (and shall promptly reimburse Agent and Lenders for their
payment of) all such Taxes, including any interest and penalties thereon, and will indemnify and
hold harmless Indemnitees against all liability in connection therewith. If Borrowers shall be
required by Applicable Law to withhold or deduct any Taxes (except Excluded Taxes) with respect to
any sum payable under any Loan Documents, (a) the sum payable to Agent or such Lender shall be
increased as may be necessary so that, after making all required withholding or deductions, Agent
or such Lender (as the case may be) receives an amount equal to the sum it would have received had
no such withholding or deductions been made; (b) Borrowers shall make such withholding or
deductions; and (c) Borrowers shall pay the full amount withheld or deducted to the relevant taxing
or other authority in accordance with Applicable Law. Unless required by Applicable Law, at no
time shall the Agent have any obligation to file for or otherwise pursue on behalf of a Lender or
an Issuing Bank, or have any obligation to pay to any Lender or Issuing Bank, any refund of Taxes
withheld or deducted from funds paid for the account of such Lender or Issuing Bank, as the case
may be. If the Agent, any Lender or Issuing Bank determines, in its sole discretion, that it has
received a refund of any Taxes as to which it has been indemnified by the Borrowers or with respect
to which the Borrowers have paid additional amounts pursuant to this Section 5.8 or Section 5.9, it
shall pay to the Borrowers an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrowers under this Section 5.8 or Section 5.9
with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses incurred
by the Agent, such Lender or Issuing Bank, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund), provided
that the Borrowers, upon the request of the Agent, such Lender or Issuing Bank, agrees to repay the
amount paid over to the Borrowers (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Agent, such Lender or Issuing Bank in the event the Agent,
such Lender or Issuing Bank is required to repay such refund to such Governmental Authority. This
Section shall not be construed to require the Agent, any Lender or Issuing Bank to pursue any tax
refund or to make available its tax returns (or any other information relating to its taxes that it
deems confidential) to the Borrowers or any other Person.

 

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5.9. Withholding Tax Exemption. At least five Business Days prior to the first date
for payment of interest or fees hereunder to a Foreign Lender, the Foreign Lender shall deliver to
Borrowers and Agent two duly completed copies of IRS Form W-8BEN or W-8ECI (or any subsequent
replacement or substitute form therefor), certifying that such Lender can receive payment of
Obligations without deduction or withholding of any United States federal income taxes. In
addition, in the case of a Foreign Lender that is relying on the portfolio interest exemption under
Section 881(c) of the IRC, such Foreign Lender shall also deliver at such time described above a
form approved by the Borrower Agent, to the effect that such Foreign Lender is not (A) a “bank”
lending in the ordinary course of its trade or business, within the meaning of Section 881(c)(3)(A)
of the IRC, (B) a “10 percent shareholder” of any Borrower within the meaning of Section
881(c)(3)(B) of the IRC or (C) a “controlled foreign corporation” related to any Borrower within
the meaning of Section 881(3)(c)(C) of the IRC. Each Foreign Lender shall deliver to Borrowers and
Agent two additional copies of such forms before the preceding forms expire or become obsolete or
after the occurrence of any event requiring a change in the forms, as well as any amendments,
extensions or renewals thereof as may be reasonably requested by Borrowers or Agent, in each case,
certifying that the Foreign Lender can receive payment of Obligations without deduction or
withholding of any such taxes unless any change in treaty or law has occurred that renders such
forms inapplicable or prevents the Foreign Lender from certifying that it can receive payments
without deduction or withholding of such taxes. During any period that a Foreign Lender does not
or is unable to establish that it can receive payments without deduction or withholding of such
taxes, other than by reason of any change in treaty or law that occurs after it becomes a Lender,
Agent may withhold taxes from payments to such Foreign Lender at the applicable statutory and
treaty rates, and Borrowers shall not be required to pay any additional amounts under Section 5.8
or this Section 5.9 as a result of such withholding. Each Lender or Agent that is organized under
the laws of the United States, or any state or district thereof shall provide to the Borrowers (and
in the case of a Lender, to the Agent) two duly executed copies of IRS Form W-9 certifying that
such Lender is not subject to U.S. federal backup withholding tax. During any period that a Lender
does not or is unable to establish that it can receive payments without deduction or withholding of
such backup withholding taxes, Agent may withhold taxes from payments to such Lender at the
applicable statutory rate, and Borrowers shall not be required to pay any additional amounts under
Section 5.8 or this Section 5.9 as a result of such withholding. In the event that any Lender or
Agent does not comply with the requirements of this Section 5.9, Borrowers may withhold taxes from
payments to such Lender or Agent as required by applicable law. In the event of the resignation or
removal of the Agent pursuant to Section 12.8 hereunder, the successor Agent shall be subject to
the provisions of this Section 5.9 in the same manner as a its predecessor Agent, and shall be
required to provide the appropriate documentation to the Borrowers as required in this Section 5.9.
In the event that the successor Agent does not comply with the requirements of this Section 5.9,
Borrowers may withhold taxes from payments to such successor Agent as required by applicable law.

5.10. Nature and Extent of Each Borrower’s Liability.

5.10.1. Joint and Several Liability. Each Borrower agrees that it is jointly and
severally liable for, and absolutely and unconditionally guarantees to Agent and Lenders the prompt
payment and performance of, all Obligations and all agreements under the Loan Documents. Each
Borrower agrees that its guaranty of obligations hereunder constitute a continuing guaranty of
payment and performance and not of collection, that such obligations shall not be discharged until
Full Payment of the Obligations and that such obligations are absolute and unconditional,
irrespective of (a) the genuineness, validity, regularity, enforceability, subordination or any
future modification of, or change in, any Obligations or Loan Document, or any other document,
instrument or agreement to which any Obligor is or may become a party or liable; (b) the absence of
any action to enforce this Loan Agreement (including this Section 5.10.1) or any other Loan
Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with respect
thereto; (c) the existence, value or condition of, or failure to perfect a Lien or to preserve
rights against, any security or guaranty for the Obligations or any action, or the absence of any
action, by Agent or any Lender in respect thereof (including the release of any security or
guaranty); (d) the insolvency of any Obligor; (e) any election by Agent or any Lender in an
Insolvency Proceeding for
the application of Section 1111(b)(2) of the Bankruptcy Code; (f) any borrowing or grant of a
Lien by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or
otherwise; (g) the disallowance of any claims of Agent or any Lender against any Obligor for the
repayment of any Obligations under Section 502 of the Bankruptcy Code or otherwise; or (h) any
other action or circumstances that might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor, except Full Payment of all Obligations.

 

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5.10.2. Waivers.

(a) Each Borrower expressly waives all rights that it may have now or in the future under any
statute, at common law, in equity or otherwise, to compel Agent or Lenders to marshal assets or to
proceed against any Obligor, other Person or security for the payment or performance of any
Obligations before, or as a condition to, proceeding against such Borrower. It is agreed among
each Borrower, Agent and Lenders that the provisions of this Section 5.10.2 are of the essence of
the transaction contemplated by the Loan Documents and that, but for such provisions, Agent and
Lenders would decline to make Loans and issue Letters of Credit. Notwithstanding anything to the
contrary in any Loan Document, and except as set forth in Section 5.10.3, each Borrower expressly
waives all rights at law or in equity to subrogation, reimbursement, exoneration, contribution,
indemnification or set off, as well as all defenses available to a surety, guarantor or
accommodation co-obligor. Each Borrower acknowledges that its guaranty pursuant to this Section
5.10.2 is necessary to the conduct and promotion of its business, and can be expected to benefit
such business.

(b) Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem
appropriate, including realization upon Collateral or any Real Estate by judicial foreclosure or
non-judicial sale or enforcement, without affecting any rights and remedies under this Section
5.10. If, in the exercise of any rights or remedies, Agent or any Lender shall forfeit any of its
rights or remedies, including its right to enter a deficiency judgment against any Borrower or any
other Person, whether because of any applicable laws pertaining to “election of remedies” or
otherwise, each Borrower consents to such action by Agent or such Lender and waives any claim based
upon such action, even if the action may result in loss of any rights of subrogation that any
Borrower might otherwise have had but for such action. Any election of remedies that results in
denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any
Borrower shall not impair any other Borrower’s obligation to pay the full amount of the
Obligations. Each Borrower waives all rights and defenses arising out of an election of remedies,
such as nonjudicial foreclosure with respect to any security for the Obligations, even though that
election of remedies destroys such Borrower’s rights of subrogation against any other Person. If
Agent bids at any foreclosure or trustee’s sale or at any private sale, Agent may bid all or a
portion of the Obligations and the amount of such bid need not be paid by Agent but shall be
credited against the Obligations. The amount of the successful bid at any such sale, whether Agent
or any other Person is the successful bidder, shall be conclusively deemed to be the fair market
value of the Collateral, and the difference between such bid amount and the remaining balance of
the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under
this Section 5.10, notwithstanding that any present or future law or court decision may have the
effect of reducing the amount of any deficiency claim to which Agent or any Lender might otherwise
be entitled but for such bidding at any such sale.

5.10.3. Extent of Liability; Contribution.

(a) Notwithstanding anything herein to the contrary, each Borrower’s liability under this
Section 5.10 shall be limited to the greater of (i) all amounts for which such Borrower is
primarily liable and (ii) such Borrower’s Allocable Amount.

 

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(b) If any Borrower makes a payment under this Section 5.10 of any Obligations (other than
amounts for which such Borrower is primarily liable) (a “Guarantor Payment”) that, taking
into account all other Guarantor Payments previously or concurrently made by any other Borrower,
exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the
aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such
Borrower’s Allocable Amount bore to the total Allocable Amounts of all Borrowers, then such
Borrower shall be entitled to receive contribution and indemnification payments from, and to be
reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their
respective Allocable Amounts in effect immediately prior to such Guarantor Payment. The
“Allocable Amount” for any Borrower shall be the maximum amount that could then be
recovered from such Borrower under this Section 5.10 without rendering such payment voidable or
avoidable under Section 548 of the Bankruptcy Code or under any applicable state fraudulent
transfer or conveyance act, or similar statute or common law.

(c) Nothing contained in this Section 5.10 shall limit the liability of any Borrower to pay
Loans made directly or indirectly to that Borrower (including Loans advanced to any other Borrower
and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower), LC
Obligations relating to Letters of Credit issued to support such Borrower’s business, and all
accrued interest, fees, expenses and other related Obligations with respect thereto, for which such
Borrower shall be primarily liable for all purposes hereunder.

5.10.4. Joint Enterprise. Each Borrower has requested that Agent and Lenders make
this credit facility available to Borrowers on a combined basis, in order to finance Borrowers’
business most efficiently and economically. Borrowers’ business is a mutual and collective
enterprise, and Borrowers believe that consolidation of their credit facility will enhance the
borrowing power of each Borrower and ease the administration of their relationship with Lenders,
all to the mutual advantage of Borrowers. Borrowers acknowledge and agree that Agent’s and
Lenders’ willingness to extend credit to Borrowers and to administer the Collateral on a combined
basis, as set forth herein, is done solely as an accommodation to Borrowers and at Borrowers’
request.

5.10.5. Subordination. Each Borrower hereby subordinates any claims, including any
right of payment, subrogation, contribution and indemnity, that it may have at any time against any
other Obligor, howsoever arising, to the Full Payment of all Obligations.

SECTION 6. CONDITIONS PRECEDENT

6.1. Conditions Precedent to Initial Loans. In addition to the conditions set forth
in Section 6.2, Lenders shall not be required to fund any requested Loan, issue any Letter of
Credit, or otherwise extend credit to Borrowers hereunder, until the date (“Closing Date”)
that each of the following conditions has been satisfied:

(a) Notes shall have been executed by Borrowers and delivered to each Lender that requests
issuance of a Note. Each of this Loan Agreement and the other Loan Documents shall have been duly
executed and delivered to Agent by each of the signatories thereto, and each shall be in form and
substance reasonably satisfactory to the Agent and each of the Lenders, and each Obligor shall be
in compliance with all terms thereof.

(b) Agent and the Lenders shall be satisfied that the Security Documents shall be effective to
create in favor of the Agent a legal, valid and enforceable first priority (subject only to
Permitted Liens entitled to priority under Applicable Law) perfected security interest in and Lien
upon the Collateral and shall have received (i) evidence that all filings, recordings, deliveries
of instruments and other actions necessary or desirable in the commercially reasonable opinion of
Agent to protect and preserve such security interests shall have been duly effected, (ii) UCC and
Lien searches (and the equivalent thereof in all applicable foreign jurisdictions) and other
evidence reasonably satisfactory to Agent that such Liens are the only Liens upon the Collateral,
except Permitted Liens and Liens to be discharged on or prior to the Closing Date, (iii) evidence
that the payment (or evidence of provision for payment) of all filing and recording fees and taxes
due and payable in respect thereof has been made in
form and substance reasonably satisfactory to Agent and each of the Lenders, and (iv) a
completed and fully executed perfection certificate in form and substance reasonably satisfactory
to Agent;

 

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(c) [Reserved].

(d) Agent shall have received duly executed agreements establishing each Dominion Account and
related lockbox and the Borrower Account, each in form and substance, and with financial
institutions, reasonably satisfactory to Agent and each of the Lenders.

(e) Agent shall have received a certificate, in form and substance reasonably satisfactory to
it and each of the Lenders, from the chief financial officer or the treasurer of each Borrower
(with such certification to be in such Person’s capacity as chief financial officer or the
treasurer of such Borrower and not in such Person’s individual capacity) certifying that:

(i) after giving effect to the initial Loans and transactions hereunder, (A) (x) Parent
and its Subsidiaries, on a consolidated basis, are Solvent and (y) each Borrower,
individually, is Solvent; (B) no Default or Event of Default exists; (C) the representations
and warranties set forth in Section 9 are true and correct in all material respects; and (D)
each Borrower has complied in all material respects with all agreements and conditions to be
satisfied by it under the Loan Documents;

(ii) there is no action, suit, investigation or proceeding pending or, to the knowledge
of Parent or its Subsidiaries, threatened in writing in any court or before any arbitrator
or governmental authority that could reasonably be expected to have a Material Adverse
Effect;

(iii) all Loans made by the Lenders to the Borrowers hereunder are and shall remain in
full compliance with the Federal Reserve’s margin regulations; and

(iv) no Applicable Law or Environmental Law to which any Borrower is subject is
applicable to the transactions contemplated hereby which could reasonably be expected to
have a Material Adverse Effect on any Obligor or a Material Adverse Effect on the
transactions contemplated hereby.

(f) Agent shall have received a certificate of a duly authorized officer of each Obligor (with
such certification to be in such Person’s capacity as an officer of such Obligor and not in such
Person’s individual capacity), certifying (i) that attached copies of such Obligor’s Organic
Documents are true and complete, and in full force and effect, without amendment except as shown,
(ii) that an attached copy of resolutions authorizing execution and delivery of the Loan Documents
is true and complete, and that such resolutions are in full force and effect, were duly adopted,
have not been amended, modified or revoked, and constitute all resolutions adopted with respect to
this credit facility, and (iii) to the title, name and signature of each Person authorized to sign
the Loan Documents.

(g) Agent shall have received a written opinion of Paul, Weiss, Rifkind, Wharton & Garrison
LLP, as well as any relevant local counsel to Obligors (other than The Bon-Ton Giftco, Inc., which
the Borrowers represent has less than $5,000,000 in assets on the Closing Date (exclusive of any
intercompany receivables)), in form and substance reasonably satisfactory to Agent and each of the
Lenders.

(h) Agent shall have received copies of the charter documents of each Obligor, certified as
appropriate by the Secretary of State or another official of such Obligor’s jurisdiction of
organization. Agent shall have received good standing or subsistence certificates, as applicable,
for each Obligor, issued by the Secretary of State or other appropriate official of such Obligor’s
jurisdiction of organization and each jurisdiction where such Obligor’s conduct of business or
ownership of Property necessitates qualification.

 

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(i) Agent shall (i) have received copies of policies of insurance, (ii) be reasonably
satisfied with the amount, types and terms and conditions of all insurance maintained by the
Obligors and their Subsidiaries, and (iii) have received certificates of insurance with
endorsements naming Agent, for the benefit of the Secured Parties, as loss payee or additional
insured, as applicable, with respect to each insurance policy required to be maintained with
respect to the Collateral and otherwise in form and substance reasonably satisfactory to Agent and
each of the Lenders.

(j) [Reserved].

(k) Borrowers shall have paid all reasonable and documented fees and out-of-pocket expenses to
be paid to Agent and Lenders on the Closing Date (including, without limitation, all reasonable and
documented fees, out-of-pocket charges and disbursements of one outside counsel, one local counsel
in each relevant jurisdiction (as determined by the Agent in its reasonable discretion), one
special or regulatory counsel in respect of each matter (as reasonably required by the Agent) and
conflict of interest counsel (as determined by the Agent in its reasonable discretion), accounting,
appraisal, consulting and other reasonable and documented fees, out-of-pocket to the extent
invoiced prior to or on the Closing Date.

(l) The Agent shall have received an updated field examination and appraisals of the
Borrowers’ inventory and real estate, with results reasonably satisfactory to the Agent.

(m) Agent shall have received a flow of funds, in form and substance reasonably satisfactory
to it.

(n) Agent shall have received copies of notifications instructing each of Mastercard, Visa,
HSBC, as applicable, and each Obligor’s other Credit Card Processor required by Agent to transfer
all amounts owing by such Credit Card Processor to an Obligor directly to the Borrower Account or
other Deposit Account reasonably acceptable to Agent and subject to control arrangements reasonably
satisfactory to Agent, with (x) such notifications (each, a “Credit Card Notification”) to
be substantially the form attached hereto as Exhibit E, or in such other form reasonably acceptable
to Agent, (y) such notifications to be executed by each relevant Obligor, sent to each such Credit
Card Processor and (z) Agent to be satisfied that the Obligors have exercised commercially
reasonable efforts to obtain acknowledgments of such Credit Card Notifications from such Credit
Card Processors.

(o) Agent shall have received a Borrowing Base Certificate dated as of the Closing Date, in
form and substance reasonably satisfactory to it, and the Agent shall be satisfied that, both
before and after giving effect to all extensions of credit to be made, and Letters of Credit
outstanding, on the Closing Date, Excess Availability under the Loan Agreement shall not be, less
than $250,000,000.

(p) Agent shall have received such other certificates, documents, agreements and information
in respect of any Obligor as Agent may reasonably request.

(q) The Lenders shall have received forecasts prepared by management of the Borrowers of
balance sheets, income statements and cash flow statements, each in a form substantially similar to
those provided to the Agent under the Existing Credit Agreement, on a fiscal monthly basis for the
first Fiscal Year following the Closing Date and on an annual basis for each Fiscal Year thereafter
during the term of the this Loan Agreement.

(r) The Lenders shall have received a pro forma availability forecast for the Borrowers, on a
fiscal monthly basis, for the first year following the Closing Date.

For purposes of determining compliance with the conditions specified in this Section 6.1, each
Lender that has signed this Loan Agreement shall be deemed to have consented to, approved or
accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Agent shall have received written notice from
such Lender prior to the proposed Closing Date specifying its objection thereto.

 

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6.2. Conditions Precedent to All Credit Extensions. Agent, Issuing Bank and Lenders
shall not be required to fund any Loans or arrange for the issuance, extension or renewal of any
Letters of Credit, unless the following conditions are satisfied:

(a) No Default or Event of Default shall exist at the time of, or result from, such funding,
issuance, extension or renewal;

(b) The representations and warranties of each Obligor in the Loan Documents shall be true and
correct in all material respects on the date of, and upon giving effect to, such funding, issuance,
extension or renewal (except for representations and warranties that expressly relate to an earlier
date and except for changes therein which do not cause a violation of this Loan Agreement);

(c) All conditions precedent to fund any Loans or to arrange for the issuance, extension or
renewal of any Letters of Credit to or for the benefit of Borrowers set forth in any other Loan
Document shall be satisfied;

(d) No event shall have occurred or circumstance exist that has or could reasonably be
expected to have a Material Adverse Effect; and

(e) With respect to the issuance, extension or renewal of a Letter of Credit, the LC
Conditions shall be satisfied.

Each request (or deemed request) by Borrowers for funding of a Loan or the issuance, extension or
renewal of a Letter of Credit shall constitute a representation by Borrowers that the foregoing
conditions are satisfied on the date of such request and on the date of such funding, issuance,
extension or renewal.

6.3. Limited Waiver of Conditions Precedent. If Agent, Issuing Bank or Lenders fund
any Loans, arrange for issuance of any Letters of Credit or grant any other accommodation when any
conditions precedent are not satisfied (regardless of whether the lack of satisfaction was known or
unknown at the time), it shall not operate as a waiver of (a) the right of Agent, Issuing Bank and
Lenders to insist upon satisfaction of all conditions precedent with respect to any subsequent
funding, issuance or grant; nor (b) any Default or Event of Default due to such failure of
conditions or otherwise.

SECTION 7. COLLATERAL

7.1. Grant of Security Interest. To secure the prompt payment and performance of all
Obligations, each Obligor hereby grants to Agent, for the benefit of Secured Parties, a continuing
security interest in and Lien upon all of the following personal and fixture property, assets and
rights of such Obligor of every kind and nature, whether now owned or hereafter acquired or
arising, and wherever located:

(a) all Accounts and all Credit Card Receivables;

(b) all Chattel Paper, including electronic chattel paper;

(c) all Commercial Tort Claims described on Schedule 7.1(c), as shall be amended from time to
time in accordance with Section 7.4.1;

(d) all Deposit Accounts;

 

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(e) all Documents;

(f) subject to the proviso to Section 7.1(m), all General Intangibles, including Payment
Intangibles, Software and Intellectual Property; provided, however, that the grant
of security interest shall not include any intent-to-use application for a trademark that may be
deemed invalidated, canceled or abandoned due to the grant and/or enforcement of such security
interest unless and until such time that the grant and/or enforcement of the security interest will
not affect the status or validity of such trademark;

(g) all Goods, including Inventory, Equipment and Fixtures, excluding (i) any motor vehicles
and (ii) any Equipment subject to Purchase Money Liens securing Permitted Purchase Money Debt so
long as the documents evidencing such Permitted Purchase Money Debt expressly prohibit a second
priority lien on such Equipment;

(h) all Instruments;

(i) all Investment Property;

(j) all Letter-of-Credit Rights;

(k) all Supporting Obligations;

(l) all monies, whether or not in the possession or under the control of Agent, a Lender, or a
bailee or Affiliate of Agent or a Lender, including any Cash Collateral;

(m) all equity interests in any Subsidiary of such Obligor; provided that such
grant of security interest shall not extend to the partnership interests in any of The Bon-Ton
Properties-Eastview L.P., The Bon-Ton Properties- Marketplace L.P., or The Bon-Ton Properties-
Greece Ridge L.P., to the extent that the grant of such security interest would constitute or
result in a breach or termination pursuant to the terms of, or a default under, any lease, loan
document, partnership agreement or other organizational document of such limited partnership, so
long as such restrictive provision is enforceable under Applicable Law;

(n) all accessions to, substitutions for, and all replacements, products, and cash and
non-cash proceeds of the foregoing, including proceeds of and unearned premiums with respect to
insurance policies, and claims against any Person for loss, damage or destruction of any
Collateral; and

(o) all books and records (including customer lists, files, correspondence, tapes, computer
programs, print-outs and computer records) pertaining to the foregoing;

provided, however, that notwithstanding any of the other provisions set forth
herein and solely with respect to assets other than Inventory, Accounts, and other assets of the
types that are not included in the Tranche A Borrowing Base or the Tranche A-1 Borrowing Base, this
Loan Agreement shall not constitute a grant of a security interest in, and “Collateral” shall not
include any property to the extent that a grant of security interest therein (x) is prohibited by
any requirements of law or (y) is prohibited by or constitutes a breach or default under or results
in the termination of or requires any consent not obtained under any contract, license, agreement,
instrument or other document evidencing or giving rise to such property or any applicable
shareholder or similar agreement, in the case of clause (x) and (y), solely to the extent such
prohibition or breach or default or requirement for consent is in effect and is enforceable under
Applicable Law.

 

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7.2. Lien on Deposit Accounts; Cash Collateral.

7.2.1. Deposit Accounts. To further secure the prompt payment and performance of all
Obligations, each Obligor hereby grants to Agent, for the benefit of Secured Parties, a continuing
security interest in and Lien upon all of such Obligor’s right, title and interest in and to each
Deposit Account of such Obligor (except for those referred to in clauses (i) through (iv) of
Section 8.5) and any deposits or other sums at any time credited to any such Deposit Account,
including any sums in any blocked or lockbox accounts or in any accounts into which such sums are
swept. Prior to the commencement of a Trigger Event Period, each Obligor shall direct each bank or
other depository to deliver to the Borrower Account, on each Business Day (to the extent
practicable and consistent with past practices), all available balances in each Deposit Account
maintained by such Obligor with such depository (except for (a) those Deposit Accounts referred to
in clauses (i) through (iv) of Section 8.5 and (b) those Deposit Accounts exclusively used as
secondary operating accounts and described on Schedule 7.2.1 (as may be updated with the reasonable
approval of Agent with respect to such secondary operating accounts) so long as the average account
balances in such accounts described in this clause (b) are in amounts consistent with the Ordinary
Course of Business of the Obligors); provided, however, that the Obligors may
maintain an aggregate account balance in local Deposit Accounts not to exceed $5,000 for each Store
supported by such local Deposit Account for petty cash and Store expense reimbursement purposes.
At all times after the commencement and during the continuation of a Trigger Event Period, the
Agent shall direct each bank or other depository to deliver to a Borrower Account at Bank of
America on each Business Day, for application to the Obligations then outstanding, all available
balances in each Deposit Account maintained by any Obligor with such depository (except for those
Deposit Accounts referred to in clauses (i) through (iv) of Section 8.5). Each Obligor irrevocably
appoints, at all times after the commencement and during the continuation of a Trigger Event
Period, Agent as such Obligor’s attorney in fact to collect such balances to the extent any such
delivery is not so made. Each Obligor waives the right at all times after the commencement and
during the continuation of a Trigger Event Period to direct the application of any payments or
Collateral proceeds, and agrees that Agent shall have the continuing, exclusive right to apply and
reapply same against the Obligations, in such manner as Agent deems advisable, notwithstanding any
entry by Agent in its records. If, as a result of Agent’s receipt of Payment Items or proceeds of
Collateral, a credit balance exists, the balance shall not accrue interest in favor of Obligors and
shall be made available to Borrowers as long as no Default or Event of Default exists.

7.2.2. Cash Collateral. Any Cash Collateral may be invested, in Agent’s discretion,
in Cash Equivalents, but Agent shall have no duty to do so, regardless of any agreement,
understanding or course of dealing with any Obligor, and shall have no responsibility for any
investment or loss. Each Obligor hereby grants to Agent, for the benefit of Secured Parties, a
security interest in all Cash Collateral held from time to time and all proceeds thereof, as
security for the Obligations, whether such Cash Collateral is held in the Cash Collateral Account
or elsewhere. Agent may apply Cash Collateral to the payment of any Obligations, in such order as
Agent may elect, as they become due and payable. The Cash Collateral Account and all Cash
Collateral shall be under the sole dominion and control of Agent. No Obligor or other Person
claiming through or on behalf of any Obligor shall have any right to any Cash Collateral, until
payment in full, in cash of all Obligations and the occurrence of the Commitment Termination Date.

7.3. Real Estate Collateral. The Obligations shall be secured by Mortgages upon (x)
all Real Estate owned by Obligors described on Schedule 7.3 and (y) all leasehold interests in Real
Estate described on Schedule 7.3. The Mortgages shall be duly recorded, at Borrowers’ expense, in
each office where such recording is required to constitute a fully perfected Lien on the Real
Estate covered thereby. If any Obligor acquires any fee ownership in any Real Estate after the
Closing Date (unless such Real Estate is encumbered by Permitted Purchase Money Debt, the terms of
which expressly prohibit a Lien junior in priority on such Real Estate) having a value in excess of
$5,000,000, such Obligor shall, within 60 days, execute, deliver and record a Mortgage sufficient
to create a first priority perfected Lien (or, where such Real Estate is subject to Permitted
Purchase Money Debt and the documents evidencing such Debt permit Agent to hold a lien junior in
priority on such Real Estate, a Lien junior in priority) in favor of Agent on such Real Estate, and
shall deliver all Related Real Estate Documents. The Agent shall
amend Schedule 7.3 to reflect thereon any Real Estate that becomes subject to the requirements
set forth in the preceding sentence after the Closing Date.

 

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7.4. Other Collateral.

7.4.1. Commercial Tort Claims. Obligors shall promptly notify Agent in writing if
Parent or any Subsidiary has a Commercial Tort Claim (other than, as long as no Event of Default
exists, a Commercial Tort Claim for less than $3,000,000) and, upon Agent’s request, shall promptly
execute such documents and take such actions as Agent deems appropriate (including amending
Schedule 7.1(c))to confer upon Agent (for the benefit of Secured Parties) a duly perfected, first
priority (subject to Permitted Liens entitled to priority under Applicable Law) Lien upon such
claim.

7.4.2. Certain After-Acquired Collateral. Obligors shall promptly (or, in the case of
Intellectual Property, within 20 Business Days after the first day of each Fiscal Quarter) notify
Agent in writing if, after the Closing Date, Parent or any Subsidiary obtains any interest in any
Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Intellectual
Property that is registered or subject to a pending application for registration, Investment
Property or Letter-of-Credit Rights which has not yet been perfected and, upon Agent’s reasonable
request, shall promptly execute such documents and take such actions as Agent deems reasonably
appropriate to effect Agent’s duly perfected, first priority (subject to Permitted Liens entitled
to priority under Applicable Law) Lien upon such Collateral, including obtaining any appropriate
possession, control agreement or Lien Waiver to the extent required by Section 10.1.10. If any
Collateral is in the possession of a third party, at Agent’s request, Obligors shall use
commercially reasonable efforts to obtain an acknowledgment that such third party holds the
Collateral for the benefit of Agent.

7.5. No Assumption of Liability. The Lien on Collateral granted hereunder is given as
security only and shall not subject Agent or any Lender to, or in any way modify, any obligation or
liability of the Obligors relating to any Collateral.

7.6. Further Assurances. Promptly upon request, Obligors shall deliver such
instruments, assignments, title certificates, or other documents or agreements, and shall take such
actions, as Agent reasonably deems appropriate under Applicable Law to evidence or perfect its Lien
on any Collateral, or otherwise to give effect to the intent of this Loan Agreement. Each Obligor
authorizes Agent to file any financing statement that indicates the Collateral as “all assets” or
“all personal property” of such Obligor, or words to similar effect, and ratifies any action taken
by Agent before the Closing Date to effect or perfect its Lien on any Collateral.

7.7. Foreign Subsidiary Stock. Notwithstanding Section 7.1, the Collateral shall
include only 65% of the voting securities of any first tier Foreign Subsidiary.

7.8. Lien Releases. (a) Upon the occurrence of payment, in full, in cash of the
Obligations (other than unmatured Contingent Obligations) and the occurrence of the Commitment
Termination Date or (b) with respect to any Collateral that is the subject of an Asset Disposition
which Borrowers certify in writing to Agent is a Permitted Asset Disposition or a disposition of
Equipment permitted under Section 8.4.2 (and Agent may rely conclusively on any such certificate
without further inquiry), Agent will, at the Borrowers’ expense, execute and deliver to the
applicable Obligor such documents as such Obligor may reasonably request to evidence the release of
such item of Collateral from the assignment and security interest granted under the Loan Documents.

 

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SECTION 8. COLLATERAL ADMINISTRATION

8.1. Borrowing Base Certificates. The Borrowers shall deliver to the Agent and each
Co-Collateral Agent (and Agent shall promptly deliver same to Lenders) (i) at all times prior to
the
commencement of a Trigger Event Period, not later than the twelfth (12th) Business Day after
the immediately preceding fiscal month end, and at such other times as Agent may reasonably
request, a Borrowing Base Certificate prepared as of the close of business of the previous month or
such other date so requested by the Agent and (ii) at all times (x) after the occurrence and during
the continuation of an Event of Default or (y) after the occurrence and during the continuation of
an Excess Availability Trigger Period, not later than the last Business Day of each week, and at
such other times as Agent or any Co-Collateral Agent may request, a Borrowing Base Certificate
prepared as of the close of business of the previous week or such other date so requested by Agent
or a Co-Collateral Agent, with such weekly Borrowing Base Certificates (other than those coinciding
with a month end) updated for purchases and sales of Inventory from the prior week in a manner
consistent with the past practices of the Obligors and reasonably approved by Agent. The Borrower
may elect, pursuant to a written irrevocable notice to the Agent, to deliver Borrowing Base
Certificates on a weekly basis during the fiscal months of October through January 15th of such
Fiscal Year, provided that notice of such election is received by the Agent no later than the 15th
of September of such Fiscal Year. All calculations of Tranche A Excess Availability, Tranche A-1
Excess Availability and Excess Availability in any Borrowing Base Certificate shall originally be
made by Borrower Agent and certified by a Senior Officer of the Borrower Agent (with such
certification to be in such Person’s capacity as a Senior Officer of the Borrower Agent and not in
such Person’s individual capacity), provided that Agent may from time to time review and adjust any
such calculation (a) to reflect its reasonable estimate of declines in value of any Collateral, due
to collections received in the Dominion Accounts or otherwise; (b) to adjust advance rates to
reflect changes in dilution, quality, mix and other factors affecting Collateral; and (c) to the
extent the calculation is not made in accordance with this Loan Agreement or does not accurately
reflect the Availability Reserve.

8.2. Administration of Accounts and Credit Card Receivables.

8.2.1. Credit Card Notifications; Records. Schedule 8.2.1 sets forth, as of the
Closing Date, all arrangements to which any Obligor is a party with respect to the payment to any
Obligor of the proceeds of credit card charges for sales by such Obligor. The Obligors shall
deliver to Agent Credit Card Notifications instructing each of their Credit Card Issuers or Credit
Card Processors to transfer all amounts owing by such processor or issuer to an Obligor directly to
the Borrower Account or a Dominion Account, with such Credit Card Notifications to be executed by
each relevant Obligor and accompanied by evidence that such Credit Card Notifications have been
received by such Credit Card Issuers or Credit Card Processors. The Obligors shall exercise
commercially reasonable efforts to obtain acknowledgments to such Credit Card Notifications from
each of the Credit Card Issuers and Credit Card Processors. Each Obligor shall keep accurate and
complete records of its Credit Card Receivables, and shall submit to Agent Credit Card Receivables
reports, including all additions and reductions (cash and non-cash) with respect to Credit Card
Receivables of the Obligors in each case accompanied by such supporting detail and documentation as
shall be reasonably requested by Agent, in form reasonably satisfactory to Agent, on such periodic
basis as Agent may request.

8.2.2. Account Verification. Whether or not a Default or Event of Default exists,
Agent shall have the right at any time, in the name of Agent, any designee of Agent or any Obligor
to verify the validity, amount or any other matter relating to any Accounts of Obligors by mail,
telephone or otherwise. Obligors shall cooperate fully with Agent in an effort to facilitate and
promptly conclude any such verification process.

 

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8.2.3. Maintenance of Dominion Accounts. Obligors shall maintain Dominion Accounts
pursuant to lockbox or other arrangements reasonably acceptable to Agent. Obligors shall obtain an
agreement (in form and substance reasonably satisfactory to Agent) from each lockbox servicer and
Dominion Account bank, establishing Agent’s control over and Lien in the lockboxes or Dominion
Accounts, requiring immediate deposit of all remittances received in the lockbox to a Dominion
Account and, if such Dominion Account is not maintained with Bank of America, directing, in
accordance with Section 5.6, the account bank to transfer at the end of each Business Day available
funds in the Dominion
Accounts to the Borrower Account consistent with past practice, and waiving offset rights of
such servicer or bank against any funds in the lockboxes or Dominion Accounts, except offset rights
for customary administrative charges. Neither Agent nor Lenders assume any responsibility to
Obligors for any lockbox arrangements or Dominion Accounts, including any claim of accord and
satisfaction or release with respect to any Payment Items accepted by any bank.

8.2.4. Proceeds of Collateral. Obligors shall request in writing and otherwise take
all reasonable steps to ensure that all payments on Accounts or otherwise relating to Collateral
are made directly to a Dominion Account (or a lockbox relating to a Dominion Account). If any
Obligor or Subsidiary receives cash or Payment Items with respect to any Collateral, it shall hold
same in trust for Agent and promptly deposit same into a Dominion Account.

8.3. Administration of Inventory.

8.3.1. Records and Reports of Inventory. Each Obligor shall keep accurate and
complete records of its Inventory, including costs and daily withdrawals and additions, and shall
submit to Agent inventory reports in form reasonably satisfactory to Agent, on such periodic basis
as Agent may request. Each Obligor shall conduct a physical inventory at least once per calendar
year (and on a more frequent basis if requested by Agent when an Event of Default exists) and
periodic cycle counts consistent with historical practices, and shall provide to Agent a report
based on each such inventory and count promptly upon completion thereof, together with such
supporting information as Agent may request. Agent may participate in and observe each inventory
or physical count.

8.3.2. Returns of Inventory. No Obligor shall return any Inventory to a supplier,
vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is in the
Ordinary Course of Business and (b) no Event of Default, Tranche A Overadvance or Tranche A-1
Overadvance exists or would result therefrom.

8.3.3. Acquisition, Sale and Maintenance. No Obligor shall acquire or accept any
Inventory which is part of the Borrowing Base on consignment or approval. No Obligor shall sell
any Inventory which is part of the Borrowing Base on consignment or approval. Obligors shall use,
store and maintain all Inventory with reasonable care and caution, in accordance with applicable
standards of any insurance and in conformity with all Applicable Law, and shall make current rent
payments (within applicable grace periods provided for in leases) at all locations where any
Collateral is located.

8.4. Administration of Equipment.

8.4.1. Records and Schedules of Equipment. Each Obligor shall keep accurate and
complete records of its Equipment, including kind, quality, quantity, cost, acquisitions and
dispositions thereof, and shall submit to Agent, on such periodic basis as Agent may request, a
current schedule thereof, in form reasonably satisfactory to Agent. Promptly upon request,
Obligors shall deliver to Agent evidence of their ownership or interests in any Equipment.

8.4.2. Dispositions of Equipment. No Obligor shall sell, lease or otherwise dispose
of any Equipment, without the prior written consent of Agent, other than (a) a Permitted Asset
Disposition; and (b) replacement of Equipment that is worn, damaged or obsolete with Equipment of
like function and value, if the replacement Equipment is acquired substantially contemporaneously
with such disposition and is free of Liens (other than Permitted Liens).

 

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8.4.3. Condition of Equipment. Except where failure to do so would not reasonably be
expected to result in a Material Adverse Effect, the Equipment is in good operating condition and
repair, and all necessary replacements and repairs have been made so that the value and operating
efficiency of the Equipment is preserved at all times, reasonable wear and tear excepted. Except
where failure to do so
would not reasonably be expected to result in a Material Adverse Effect, each Obligor shall
ensure that the Equipment is mechanically and structurally sound, and capable of performing the
functions for which it was designed, in accordance with the manufacturer’s published and
recommended specifications.

8.5. Administration of Deposit Accounts. Schedule 8.5 sets forth all Deposit Accounts
maintained by Obligors as of the Closing Date (or, after any update to such Schedule 8.5 in
accordance with the last sentence of this Section 8.5, as of the date of such amendment). Each
Obligor shall take all actions necessary to establish Agent’s control (pursuant to an Account
Control Agreement) of each Deposit Account other than:

(i) each Deposit Account exclusively used for payroll, payroll taxes, or employee
benefits as set forth in Schedule 8.5(a) or any replacement account exclusively used for
payroll, payroll taxes or employee benefits;

(ii) each disbursement account of the Obligors as set forth on Schedule 8.5(a) or any
replacement disbursement account that is reasonably acceptable to Agent;

(iii) each trust account listed on Schedule 8.5(b) maintained at U.S. Bank National
Association (or any replacement account thereof) so long as the average account balance in
the accounts described in this clause (iii) is in an amount consistent with the ordinary
course of business and past practices of the Obligors and, in any event, does not exceed (x)
at any time other than during a Trigger Event Period, $10,000,000 in the aggregate or (y)
after the commencement and during the continuation of a Trigger Event Period, $2,000,000 in
the aggregate; and

(iv) each Deposit Account, other than those described in clauses (i) through (iii)
above, containing not more than $75,000 at any time; provided that the
aggregate amount contained in all such accounts under this clause (iv) shall not exceed
$750,000 at any time; provided, however, that not later than ten (10)
Business Days after the commencement of the first Trigger Event Period to occur after the
Closing Date, the Obligors shall either (a) take all actions necessary to establish the
Agent’s control of each such Deposit Account referred to in this clause (iv) or (b) close
the Deposit Accounts referenced in this clause (iv) and transfer all balances and all
related deposit activity to a Deposit Account over which the Agent’s control has already
been established.

Each Obligor shall be the sole account holder of each Deposit Account and shall not allow any other
Person (other than the Agent and, subject to the Junior Debt Intercreditor Agreement, any Junior
Lien Agent) to have control over a Deposit Account. Each Obligor shall promptly notify Agent of
any opening or closing of a Deposit Account and, at the request of Agent, will amend Schedule 8.5
(and Schedule 8.5(a) or Schedule 8.5(b), if applicable) to reflect the same.

8.6. General Provisions.

8.6.1. Location of Collateral. All tangible items of Collateral, other than (i)
tangible Inventory having an aggregate value of no more than $500,000, and (ii) Inventory in
transit, shall at all times be kept by Obligors at the business locations set forth in Schedule
8.6.1, except that Obligors may (a) make sales or other dispositions of Collateral in accordance
with Section 10.2.6; and (b) move Collateral to another location in the United States, so long as,
if such Collateral has an aggregate value of more than $500,000 the Borrower Agent has provided
Agent with 30 Business Days prior written notice thereof.

 

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8.6.2. Insurance of Collateral; Condemnation Proceeds.

(a) Each Obligor shall maintain insurance with respect to the Collateral, covering casualty,
hazard, public liability, theft, malicious mischief, and such other risks, in such amounts, with
such endorsements, and with such insurers as are reasonably satisfactory to Agent. All proceeds
under each policy shall be payable to Agent. From time to time upon request, Obligors shall
deliver to Agent the originals or certified copies of its insurance policies and updated flood
plain searches. Unless Agent shall agree otherwise, each policy shall include reasonably
satisfactory endorsements (i) showing Agent as sole loss payee or additional insured, as
appropriate; (ii) requiring 30 days prior written notice to Agent in the event of cancellation of
the policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be
impaired or invalidated by any act or neglect of any Obligor or the owner of the Property, nor by
the occupation of the premises for purposes more hazardous than are permitted by the policy. If
any Obligor fails to provide and pay for such insurance, Agent may, at its option, but shall not be
required to, procure the insurance and charge Obligors therefor. Each Obligor agrees to deliver to
Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of
Default exists, Obligors may settle, adjust or compromise any insurance claim, as long as the
proceeds are delivered to Agent. If an Event of Default exists, only Agent shall be authorized to
settle, adjust and compromise such claims.

(b) Any proceeds of insurance (other than proceeds from workers’ compensation or D&O
insurance) and any awards arising from condemnation of any Collateral shall be paid to Agent.

(c) If requested by Obligors in writing within 30 days after Agent’s receipt of any insurance
proceeds or condemnation awards relating to any loss or destruction of Equipment or Real Estate,
Obligors may use such proceeds or awards to repair or replace such Equipment or Real Estate (and
until so used, the proceeds shall, at the Borrowers’ election be held by Agent as Cash Collateral)
as long as (i) no Default or Event of Default exists; (ii) such repair or replacement is promptly
undertaken and concluded; (iii) the repaired or replaced Property is free of Liens, other than
Permitted Liens; (iv) Obligors comply with disbursement procedures for such repair or replacement
as Agent may reasonably require; and (v) the aggregate amount of such proceeds or awards from any
single casualty or condemnation does not exceed $10,000,000. Any such proceeds or awards not
applied to repair or replace such Equipment or Real Estate in accordance with this Section 8.6.2(c)
shall be applied, by the Agent, to the Obligations in accordance with Section 5.5.

8.6.3. Protection of Collateral. All expenses of protecting, storing, warehousing,
insuring, handling, maintaining and shipping any Collateral, all Taxes (other than Excluded Taxes)
payable with respect to any Collateral (including any sale thereof), and all other payments
required to be made by Agent to any Person to realize upon any Collateral, shall be borne and paid
by Obligors. Agent shall not be liable or responsible in any way for the safekeeping of any
Collateral, for any loss or damage thereto (except for reasonable care in its custody while
Collateral is in Agent’s actual possession), for any diminution in the value thereof, or for any
act or default of any warehouseman, carrier, forwarding agency or other Person whatsoever, but the
same shall be at Obligors’ sole risk.

8.6.4. Defense of Title to Collateral. Each Obligor shall at all times defend its
title to Collateral and Agent’s Liens therein against all Persons, claims and demands whatsoever,
except Permitted Liens.

8.7. Power of Attorney. Each Obligor hereby irrevocably constitutes and appoints
Agent (and all Persons designated by Agent) as such Obligor’s true and lawful attorney (and
agent-in-fact) for the purposes provided in this Section 8.7. Agent, or Agent’s designee, may,
during the continuation of an Event of Default, without notice and in either its or an Obligor’s
name, but at the cost and expense of Obligors:

(a) Endorse an Obligor’s name on any Payment Item or other proceeds of Collateral (including
proceeds of insurance) that come into Agent’s possession or control; and

 

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(b) (i) Notify any Account Debtors of the assignment of their Accounts, demand and enforce
payment of Accounts, by legal proceedings or otherwise, and generally exercise any rights and
remedies with respect to Accounts; (ii) settle, adjust, modify, compromise, discharge or release
any Accounts or other Collateral, or any legal proceedings brought to collect Accounts or
Collateral; (iii) sell or assign any Accounts and other Collateral upon such terms, for such
amounts and at such times as Agent deems advisable; (iv) take control, in any manner, of any
proceeds of Collateral; (v) prepare, file and sign an Obligor’s name to a proof of claim or other
document in a bankruptcy of an Account Debtor, or to any notice, assignment or satisfaction of Lien
or similar document; (vi) receive, open and dispose of mail addressed to an Obligor, and notify
postal authorities to change the address for delivery thereof to such address as Agent may
designate; (vii) endorse any Chattel Paper, Document, Instrument, invoice, freight bill, bill of
lading, or similar document or agreement relating to any Accounts, Inventory or other Collateral;
(viii) use an Obligor’s stationery and sign its name to verifications of Accounts and notices to
Account Debtors; (ix) use the information recorded on or contained in any data processing equipment
and computer hardware and software relating to any Collateral; (x) make and adjust claims under
policies of insurance; (xi) take any action as may be necessary or appropriate to obtain payment
under any letter of credit or banker’s acceptance for which an Obligor is a beneficiary; and (xii)
take all other actions as Agent deems reasonably appropriate to fulfill any Obligor’s obligations
under the Loan Documents.

SECTION 9. REPRESENTATIONS AND WARRANTIES

9.1. General Representations and Warranties. To induce Agent and Lenders to enter
into this Loan Agreement and to make available the Commitments, Loans and Letters of Credit, each
Obligor represents and warrants that:

9.1.1. Organization and Qualification. Each Obligor and Subsidiary is duly organized,
validly existing and in good standing or subsisting, as applicable under the laws of the
jurisdiction of its organization. Each Obligor and Subsidiary is duly qualified, authorized to do
business and in good standing as a foreign corporation in each jurisdiction where failure to be so
qualified could reasonably be expected to have a Material Adverse Effect.

9.1.2. Power and Authority. Each Obligor is duly authorized to execute, deliver and
perform its Loan Documents. The execution, delivery and performance of the Loan Documents by each
Obligor have been duly authorized by all necessary action, and do not (a) require any consent or
approval of any holders of Equity Interests of any Obligor, other than those already obtained; (b)
contravene the Organic Documents of any Obligor; (c) violate or cause a material default under any
Applicable Law or Material Contract; or (d) result in or require the imposition of any Lien (other
than Permitted Liens and Liens granted hereunder) on any Property of any Obligor.

9.1.3. Enforceability. Each Loan Document is a legal, valid and binding obligation of
each Obligor party thereto, enforceable against each Obligor in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles.

9.1.4. Capital Structure. Schedule 9.1.4 shows as of the Closing Date, for each
Obligor and Subsidiary (other than the Parent), its name, its jurisdiction of organization, its
duly authorized and validly issued Equity Interests, the holders of its Equity Interests, and all
agreements binding on such holders with respect to their Equity Interests. Each Obligor has good
title to its Equity Interests in its Subsidiaries, subject only to Agent’s Lien and to Junior
Liens, and all such Equity Interests are duly issued, fully paid and non-assessable. There are no
outstanding options to purchase, warrants, subscription rights, agreements to issue or sell,
convertible interests, phantom rights or powers of attorney relating to any Equity Interests of any
Obligor (other than the Parent) or Subsidiary.

 

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9.1.5. Corporate Names; Locations. During the five years preceding the Closing Date,
except as shown on Schedule 9.1.5, no Obligor or Subsidiary has been known as or used any
corporate, fictitious or trade names, has been the surviving corporation of a merger or
combination, or has acquired any substantial part of the assets of any Person. The chief executive
offices and other places of business of Obligors and Subsidiaries as of the Closing Date are shown
on Schedule 8.6.1.

9.1.6. Title to Properties; Priority of Liens. Each Obligor and Subsidiary has good
and marketable title to (or valid leasehold interests in) all of its Real Estate, and good title to
all of its personal Property, including all Property reflected in any financial statements
delivered to Agent or Lenders, in each case free of Liens except Permitted Liens. Each Obligor and
Subsidiary has paid and discharged all lawful claims that, if unpaid, could become a Lien on its
Properties, other than Permitted Liens. All Liens of Agent in the Collateral are duly perfected,
first priority (subject to Permitted Liens entitled to priority under Applicable Law) Liens.

9.1.7. Security Documents. The Security Documents are effective to create in favor of
the Agent a legal, valid, perfected and enforceable first priority (subject to Permitted Liens
entitled to priority under Applicable Law) security interest in and Lien upon the Collateral.

9.1.8. Financial Statements. The consolidated and, if applicable, combined balance
sheets, and related statements of income, cash flow and shareholder’s equity, of Obligors and
Subsidiaries that have been and are hereafter delivered to Agent and Lenders, pursuant to Section
6.1(n) or otherwise, are prepared in accordance with GAAP, and fairly present in all material
respects the financial positions and results of operations of Obligors and Subsidiaries at the
dates and for the periods indicated, subject, in the case of interim statements, to normal year-end
adjustments. All projections delivered from time to time to Agent and Lenders have been prepared
in good faith, based on reasonable assumptions in light of the circumstances at such time. Since
January 30, 2010 there have been no changes in the financial condition of any Obligor or Subsidiary
that, alone or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
Parent and its Subsidiaries, on a consolidated basis, are Solvent. Each Borrower, individually, is
Solvent.

9.1.9. Surety Obligations. No Obligor or Subsidiary is obligated as surety or
indemnitor under any bond or other contract that assures payment or performance of any obligation
of any Person, except as is not prohibited hereunder.

9.1.10. Taxes. Each Obligor and Subsidiary has filed all material federal, state and
local tax returns and other reports that it is required by law to file, and has paid, or made
provision for the payment of, all material Taxes upon it, its income and its Properties that are
due and payable, except to the extent being Properly Contested. The provision for Taxes on the
books of each Obligor and Subsidiary is adequate for all years not closed by applicable statutes,
and for its current Fiscal Year.

9.1.11. Brokers. There are no brokerage commissions, finder’s fees or investment
banking fees payable in connection with any transactions contemplated by the Loan Documents.

9.1.12. Intellectual Property. Each Obligor and Subsidiary owns or has the lawful
right to use all Intellectual Property necessary for the conduct of its business, without, to any
Obligor’s knowledge, conflict with any rights of others. There is no pending or, to any Obligor’s
knowledge, threatened material Intellectual Property Claim with respect to any Obligor, any
Subsidiary or any of their Property (including any Intellectual Property). All Intellectual
Property registered with the U.S. Patent and Trademark Office which is owned by any Obligor or
Subsidiary on the Closing Date is shown on Schedule 9.1.12.

9.1.13. Governmental Approvals. Each Obligor and Subsidiary has, is in compliance
with, and is in good standing with respect to, all material Governmental Approvals necessary to
conduct
its business and to own, lease and operate its Properties. All necessary material import,
export or other licenses, permits or certificates for the import or handling of any goods or other
Collateral have been procured and are in effect, and Obligors and Subsidiaries have complied with
all foreign and domestic laws with respect to the shipment and importation of any goods or
Collateral, except where noncompliance could not reasonably be expected to have a Material Adverse
Effect.

 

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9.1.14. Compliance with Laws. Each Obligor and Subsidiary has duly complied, and its
Properties and business operations are in compliance, in all material respects with all Applicable
Law, except where noncompliance could not reasonably be expected to have a Material Adverse Effect.
There have been no citations, notices or orders of material noncompliance issued to any Obligor or
Subsidiary under any Applicable Law.

9.1.15. Compliance with Environmental Laws. Except as disclosed on Schedule 9.1.15 or
as could not reasonably be expected to have a Material Adverse Effect, (a) no Obligor’s or
Subsidiary’s past or present operations, Real Estate or other Properties are subject to any
federal, state or local investigation to determine whether any remedial action is needed to address
any environmental pollution, hazardous material or environmental clean-up, (b) no Obligor or
Subsidiary has received any Environmental Notice, (c) no Obligor or Subsidiary has Environmental
Liabilities with respect to any Environmental Release, environmental pollution or Hazardous
Material on any Real Estate now or previously owned, leased or operated by it, or regarding any
Environmental Release at or under any off-site third party property, (d) no Obligor is party to,
and no Obligor and no real property currently (or to the knowledge of any Obligor previously)
owned, leased, subleased, operated or otherwise occupied by or for any Obligor is subject to or the
subject of, any Contractual Obligation or any pending (or, to the knowledge of any Obligor,
threatened) order, action, investigation, suit, proceeding, audit, claim, demand, dispute or notice
of violation or of potential liability or similar notice under or pursuant to any Environmental Law
other than those that, in the aggregate, are not reasonably likely to result in Material Adverse
Effect and the representations and warranties contained in the Environmental Agreement are true and
correct in all material respects on the Closing Date.

9.1.16. Burdensome Contracts. No Obligor or Subsidiary is a party or subject to any
contract, agreement or charter restriction that could reasonably be expected to have a Material
Adverse Effect. Except as described on Schedule 9.1.16, no Obligor or Subsidiary is party or
subject to any material Restrictive Agreement on the Closing Date. No material Restrictive
Agreement to which any Obligor or Subsidiary is a party prohibits the execution or delivery of any
Loan Documents by an Obligor or the performance by an Obligor of any obligations thereunder.

9.1.17. Litigation. Except as shown on Schedule 9.1.17, there are no proceedings or
investigations pending or, to any Obligor’s knowledge, threatened in writing against any Obligor or
Subsidiary, or any of their businesses, operations, Properties or conditions, that (a) relate to
any Loan Documents or transactions contemplated thereby; (b) as of the Closing Date, could
reasonably be expected to result in damages or penalties in excess of $10,000,000 (net of insurance
proceeds which the Borrowers reasonably believe will cover such claim or claims) or (c) could
reasonably be expected to have a Material Adverse Effect. No Obligor or Subsidiary is in default
with respect to any order, injunction or judgment of any Governmental Authority.

9.1.18. Insurance. The properties of the Obligor and its Subsidiaries are insured
with financially sound and reputable insurance companies not Affiliates of the Obligor, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Obligor or the
applicable Subsidiary operates.

 

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9.1.19. No Defaults. No Default or Event of Default has occurred and is continuing.
No Obligor or Subsidiary is in default under any Material Contract, which default could reasonably
be
expected to have a Material Adverse Effect. There is no basis upon which any party (other
than an Obligor or Subsidiary) could terminate a Material Contract prior to its scheduled
termination date, which termination could reasonably be expected to have a Material Adverse Effect.

9.1.20. ERISA. No Obligor or Subsidiary has any Multiemployer Plan or Foreign Plan.

9.1.21. Trade Relations. There exists no actual or, to the knowledge of any Obligor,
threatened termination, limitation or adverse modification of any business relationship between any
Obligor or Subsidiary and any customer or supplier, or any group of customers or suppliers, who
individually or in the aggregate are material to the business of such Obligor or Subsidiary. There
exists no condition or circumstance that could reasonably be expected to impair the ability of any
Obligor or Subsidiary to conduct its business at any time hereafter in substantially the same
manner as conducted on the Closing Date.

9.1.22. Labor Relations. Except as described on Schedule 9.1.22, on the Closing Date,
no Obligor or Subsidiary is party to or bound by any (a) management agreement, (b) consulting
agreement where the aggregate obligations of such Obligor or Subsidiary thereunder are in excess of
$500,000 or (c) collective bargaining agreement. There are no material grievances, disputes or
controversies with any union or other organization of any Obligor’s or Subsidiary’s employees, or,
to any Obligor’s knowledge, any asserted or threatened strikes, work stoppages or demands for
collective bargaining.

9.1.23. Not a Regulated Entity. No Obligor is (a) required to be registered as an
“investment company” within the meaning of the Investment Company Act of 1940, as amended; or (b)
subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public
utilities code or any other Applicable Law regarding its authority to incur Debt.

9.1.24. Margin Stock. No Obligor or Subsidiary is engaged, principally or as one of
its important activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock. No Loan proceeds or Letters of Credit will be used by Obligors to
purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry, any Margin
Stock or for any related purpose governed by Regulations T, U or X of the Board of Governors.

9.1.25. Plan Assets. No Obligor is an entity deemed to hold “plan assets” within the
meaning of 29 C.F.R. §2510.3-101 of any “employee benefit plan” (as defined in Section 3(3) of
ERISA) that is subject to Title I of ERISA or any “plan” (within the meaning of Section 4975 of the
Internal Revenue Code), and neither the execution of this Loan Agreement nor the funding of any
Loans gives rise to a prohibited transaction within the meaning of Section 406 of ERISA or Section
4975 of the Internal Revenue Code.

9.1.26. Complete Disclosure. No (x) Loan Document or (y) written information provided
by or on behalf of any Obligor and included in the confidential information memorandum, dated
February 2011, and delivered to the Lenders in connection with the syndication of the Commitments,
contains any untrue statement of a material fact, nor fails to disclose any material fact necessary
to make the statements contained therein, taken as a whole, not materially misleading in light of
the circumstances under which they were delivered; provided that to the extent any such document,
certificate or statement was based upon or constitutes a forecast or projection, each Obligor
represents only that it acted in good faith and utilized assumptions believed by it to be
reasonable at the time made and due care in the preparation of such document, certificate or
statement, it being understood that forecasts and projections are subject to uncertainties and
contingencies and no assurance can be given that any forecast or projection will be realized.

 

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9.1.27. Anti-Terrorism. No Obligor appears on any list of “Specially Designated
Nationals” or other list of known or suspected terrorists that has been generated by the Office of
Foreign Assets Control of the United States Department of Treasury (“OFAC”), nor is any
Obligor a citizen or resident of any country that is subject to embargo or trade sanctions enforced
by OFAC, or otherwise is a Person (i) whose property or interest in property is blocked or subject
to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66
Fed. Reg. 49079 (2001)), (ii) who engages in any dealings or transactions prohibited by Section 2
of such executive order, or, to its knowledge, is otherwise associated with any such person in any
manner violative of Section 2, or (iii) subject to the limitations or prohibitions under any other
OFAC regulation or executive order.

SECTION 10. COVENANTS AND CONTINUING AGREEMENTS

10.1. Affirmative Covenants. For so long as any Commitments or Obligations are
outstanding, each Obligor shall, and shall cause each Subsidiary to:

10.1.1. Inspections; Appraisals. (a) Permit Agent from time to time, subject (except
when a Default or Event of Default exists) to reasonable notice and normal business hours, to visit
and inspect the Properties of any Obligor, inspect, audit and make extracts from any Obligor’s
books and records, and discuss with its officers, employees, agents, advisors and independent
accountants such Obligor’s business, financial condition, assets, prospects and results of
operations. Lenders may participate in any such visit or inspection, at their own expense.
Neither Agent nor any Lender shall have any duty to any Obligor to make any inspection, nor to
share any results of any inspection, appraisal or report with any Obligor. To the extent any
appraisal or other information is shared by Agent or a Lender with any Obligor, such Obligor
acknowledges that it was prepared by Agent and Lenders for their purposes and Obligors shall not be
entitled to rely upon it. The Agent shall provide each Co-Collateral Agent with all final
Collateral appraisals and audit reports promptly after the Agent’s receipt thereof.

(b) Reimburse Agent for all reasonable and documented out-of-pocket charges, costs and
expenses of Agent in connection with (i) examinations of any Obligor’s books and records or any
other financial or Collateral matters as Agent deems appropriate, (x) other than those times
described in clauses (y) and (z), once per Loan Year or (y) at all times during the twelve (12)
month period following any date that Excess Availability for a period of five (5) consecutive
Business Days, is less than 50% of the lesser of (A) the aggregate Commitments at such time and (B)
the Aggregate Borrowing Base at such time, up to two times per Loan Year, or (z) at all times
during the twelve (12) month period following any date that Excess Availability for a period of
five (5) consecutive Business Days, is less than 15% of the lesser of (A) the aggregate Commitments
at such time and (B) the Aggregate Borrowing Base at such time, up to three times per Loan Year;
(ii) appraisals of Inventory (x) other than those times described in clauses (y) and (z), once per
Loan Year or (y) at all times during the twelve (12) month period following any date that Excess
Availability for a period of five (5) consecutive Business Days, is less than 50% of the lesser of
(A) the aggregate Commitments at such time and (B) the Aggregate Borrowing Base at such time, up to
two times per Loan Year, or (z) at all times during the 12 month period following any date that
Excess Availability for a period of five (5) consecutive Business Days, is less than 15% of the
lesser of (A) the aggregate Commitments at such time and (B) the Aggregate Borrowing Base at such
time, up to three times per Loan Year; (iii) appraisals of Eligible Real Estate, in form and detail
reasonably satisfactory to Agent, (x) at all times other than those described in clause (y), once
per Loan Year if so requested by Agent or (y) at all times during the twelve (12) month period
following any date that Excess Availability for a period of five (5) consecutive Business Days is
less than 15% of the lesser of (x) the aggregate Commitments at such time and (y) the Aggregate
Borrowing Base at such time, twice per Loan Year if so requested by Agent; and (iv) environmental
assessment reports as Agent deems appropriate in its reasonable discretion, with respect to the
Eligible Real Estate of the Obligors; provided, however, that (x) during the
occurrence and continuance of an Event of Default, the Agent may conduct any examinations and
appraisals in its reasonable discretion without regard to any such limits and (y) if any
examination or appraisal is initiated during the occurrence and continuance of an Event of
Default, all reasonable and documented out-of-pocket charges, costs and expenses therefor shall be
reimbursed by Obligors without regard to such limits. Obligors shall pay Agent’s then standard
charges for each day that an employee of Agent or its Affiliates is engaged in any examination
activities in connection with the foregoing, and shall pay the standard charges of Agent’s internal
appraisal group. This Section shall not be construed to limit Agent’s right to conduct
examinations or to obtain appraisals at any time in its discretion, nor to use third parties for
such purposes.

 

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10.1.2. Financial and Other Information. Keep adequate records and books of account
with respect to its business activities, in which proper entries are made in accordance with GAAP
reflecting all financial transactions; and furnish to Agent and Lenders:

(a) within 90 days after the close of each Fiscal Year, balance sheets as of the end of such
Fiscal Year and the related statements of income, cash flow and shareholders’ equity for such
Fiscal Year, on a consolidated basis for Obligors and Subsidiaries, which consolidated statements
shall all be in reasonable detail and prepared in accordance with GAAP and applicable Securities
Laws, audited and accompanied by (i) a certification (without qualification as to scope or “going
concern” (or similar) qualification) by a firm of independent certified public accountants of
recognized standing selected by Borrowers and reasonably acceptable to Agent (with the Agent hereby
acknowledging and agreeing that each of PricewaterhouseCoopers, Ernst & Young, KPMG and Deloitte &
Touche are acceptable), which certification shall be prepared in accordance with generally accepted
auditing standards and applicable Securities Laws and (ii) an attestation report of such certified
public accountants as to the Obligors’ internal controls pursuant to Section 404 of Sarbanes-Oxley,
and shall set forth in comparative form corresponding figures for the preceding Fiscal Year and
other information reasonably acceptable to Agent;

(b) within 45 days after the end of each Fiscal Quarter (but within 60 days after the last
Fiscal Quarter of each Fiscal Year), unaudited balance sheets as of the end of such Fiscal Quarter
and the related statements of income and cash flow for such Fiscal Quarter and for the portion of
the Fiscal Year then elapsed, on a (i) consolidated basis for Obligors and Subsidiaries and (ii)
combined basis for Obligors and Subsidiaries other than the SPEs and Passive Companies, setting
forth in comparative form corresponding figures for the preceding Fiscal Year as well as the
applicable projections for such period delivered under Section 10.1.2(f) and certified by the
Borrower Agent pursuant to a certificate signed on behalf of Borrower Agent by a Senior Officer of
the Borrower Agent (with such certification to be in such Person’s capacity as a Senior Officer of
such Obligor and not in such Person’s individual capacity) as prepared in accordance with GAAP and
fairly presenting in all material respects the financial position and results of operations for
such quarterly period, subject to normal year-end adjustments and the absence of footnotes;

(c) within 30 days after the end of each month (but within 60 days after the last month in a
Fiscal Year), unaudited balance sheets as of the end of such month and the related statements of
income and cash flow for such month and for the portion of the Fiscal Year then elapsed, on a
consolidated basis for Parent and Subsidiaries, setting forth in comparative form corresponding
figures for the preceding Fiscal Year as well as the applicable projections for such period
delivered under Section 10.1.2(f) and certified by a Senior Officer (with such certification to be
in such Person’s capacity as a Senior Officer of such Obligor and not in such Person’s individual
capacity) of Borrower Agent as prepared in accordance with GAAP and fairly presenting in all
material respects the financial position and results of operations for such month and period,
subject to normal year-end adjustments and the absence of footnotes;

(d) concurrently with delivery of financial statements under clauses (a) and (b) above, or
more frequently if requested by Agent while an Event of Default exists, a Compliance
Certificate executed by a Senior Officer of Borrower Agent (with such certification to be in
such Person’s capacity as a Senior Officer of Borrower Agent and not in such Person’s individual
capacity);

 

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(e) concurrently with delivery of financial statements under clause (a) above, and otherwise
promptly after the request by Agent, copies of any detailed audit reports or management letters
submitted to the board of directors (or the audit committee of the board of directors) of any
Obligor by independent accountants in connection with the accounts or books of any Obligor or any
Subsidiary, or any audit of any of them;

(f) not later than 45 days after the beginning of the then current Fiscal Year, projections of
Obligors’ consolidated balance sheets, results of operations, cash flow and Availability for the
current Fiscal Year and the next two Fiscal Years, year by year, and for the current Fiscal Year,
month by month;

(g) at Agent’s request, a listing of the Obligors’ consolidated trade payables, specifying the
trade creditor and balance due, and a detailed trade payable aging;

(h) promptly after the sending or filing thereof, copies of any proxy statements, financial
statements or reports that any Obligor has made generally available to its shareholders; copies of
any regular, periodic and special reports or registration statements or prospectuses that any
Obligor files with the Securities and Exchange Commission or any other Governmental Authority, or
any securities exchange; and copies of any press releases or other statements made available by an
Obligor to the public concerning material changes to or developments in the business of such
Obligor, if and to the extent such information is not available on the SEC’s or the Parent’s
website;

(i) promptly after the sending or filing thereof, copies of any annual report to be filed in
connection with each Plan or Foreign Plan;

(j) promptly upon the consummation of the transactions relating to the Convertible Note Debt,
Junior Debt or any Refinancing Debt, copies certified by a Senior Officer as complete and correct
(with such certification to be in such Person’s capacity a Senior Officer of an Obligor and not in
such Person’s individual capacity) of the Convertible Note Debt Documents, the Junior Debt
Documents or the documents relating to such Refinancing Debt, as the case may be.

(k) promptly (x) upon delivery thereof, copies of all documents and materials of a material
financial nature provided to any other creditor of any Obligor or any Subsidiary and (y) upon
receipt thereof, copies of all material notices or information or material non-ordinary course
correspondence received from, or on behalf of, any other creditor of any Obligor or any Subsidiary
(including, without limitation, any default or similar notices);

(l) promptly upon request therefor, all information pertaining to the Obligors and their
Subsidiaries reasonably requested by any Lender in order for such Lender to comply with the
provisions of the Patriot Act; and

(m) such other reports and information (financial or otherwise) as Agent may reasonably
request from time to time in connection with any Collateral or any Obligor’s or Subsidiary’s
financial condition or business.

 

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Documents required to be delivered pursuant to Section 10.1.2(a) or Section 10.1.2(b) (to the
extent any such documents are included in materials otherwise filed with the Securities and
Exchange Commission) may be delivered electronically and if so delivered, shall be deemed to have
been delivered on the date (i) on which the applicable Borrower posts such documents, or provides a
link thereto on such Borrowers’ website on the internet at the website address indicated in writing
to Agent and Lenders by the Borrower Agent; or (ii) on which such documents are posted on the
Borrowers’ behalf on an internet
or intranet website, if any, to which each Lender and Agent have access (whether a commercial,
third-party website or whether sponsored by Agent); provided that: (i) such Borrower shall
deliver paper copies of such documents to Agent or any Lender that requests such Borrower to
deliver such paper copies until a written request to cease delivering paper copies is given by
Agent or such Lender and (ii) such Borrower shall notify Agent and each Lender (by telecopier or
electronic mail) of the posting of any such documents and provide to Agent by electronic mail
electronic versions (i.e., soft copies) of such documents. Notwithstanding anything
contained herein, in every instance the Borrowers shall be required to provide paper copies of the
Compliance Certificates to Agent and the Lenders. Except for such Compliance Certificates, Agent
shall have no obligation to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by the Borrowers with
any such request for delivery, and each Lender shall be solely responsible for requesting delivery
to it or maintaining its copies of such documents.

The Obligors hereby acknowledge that (a) Agent and/or MLPFS will make available to the Lenders
and the Issuing Bank materials and/or information provided by or on behalf of the Obligors
hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on
IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public
information with respect to the Obligors or their securities) (each, a “Public Lender”).
The Obligors hereby agree that (w) all Borrower Materials that are to be made available to Public
Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the
word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Obligors shall be deemed to have authorized the Agent, MLPFS, the Issuing Bank and
the Lenders to treat such Borrower Materials as not containing any material non-public information
with respect to the Obligors or their securities for purposes of United States Federal and state
securities laws (provided, however, that to the extent such Borrower Materials
constitute Information, they shall be treated as set forth in Section 14.11); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform
designated “Public Investor;” and (z) Agent and MLPFS shall be entitled to treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the
Platform not designated “Public Investor.”

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 Agent or any of its Related Parties (collectively, the “Agent
Parties”) have any liability to any Borrower, 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 Borrowers’ or the 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 or such Related Party;
provided, however, that in no event shall the Agent or any of its Related Parties
have any liability to any Borrower, 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).

 

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10.1.3. Notices. A. Notify Agent and Lenders in writing, promptly after any Senior
Officer of the Parent or the Borrower Agent obtaining knowledge thereof, of any of the following
that affects an Obligor: (a) the threat (in writing) or commencement of any proceeding or
investigation, whether or not covered by insurance, reasonably likely to result in a Material Adverse Effect;
(b) any material pending or threatened (in writing) labor dispute, strike or walkout, or the
expiration of any material labor contract; (c) any material default under or termination of a
Material Contract; (d) the occurrence of any Default or Event of Default; (e) any judgment in an
amount exceeding $5,000,000; (f) the assertion of any Intellectual Property Claim reasonably likely
to result in a Material Adverse Effect; (g) any violation or asserted violation of any Applicable
Law (including ERISA, OSHA, FLSA, or any Environmental Laws) reasonably likely to result in a
Material Adverse Effect; (h) any material Environmental Release by an Obligor or on any Property
owned, leased or occupied by an Obligor; or receipt of any material Environmental Notice; (i) the
discharge of or any withdrawal or resignation by Obligors’ independent accountants; (j) any opening
of a new office, place of business or Distribution Center where Collateral with a fair market value
of $2,000,000 or more will be located, at least 30 days prior to such opening, (k) any “default” or
“event of default” under any Junior Debt Documents, Mortgage Loan Debt Documents, Senior Note Debt
Documents or Convertible Note Debt Documents, as the case may be, or (l) as soon as practicable, in
any event prior thereto, any waiver, consent, amendment or permanent prepayment or permanent
commitment reduction (and the amount thereof) pursuant to the Junior Debt Documents, Mortgage Loan
Debt Documents, Senior Note Debt Documents or Convertible Note Debt Documents, as the case may be.

B. Notice Regarding Environmental Matters — (a) The Obligor shall provide the Agent
written notice of each of the following promptly after any Responsible Officer of any Obligor knows
or has reason to know of it (and, upon reasonable request of the Agent, documents and information
in connection therewith): (i)(A) unpermitted Environmental Releases, (B) the receipt by any Obligor
of any notice of violation of or potential liability or similar notice under, or the existence of
any condition that could reasonably be expected to result in violations of or liabilities under,
any Environmental Law or (C) the commencement of, or any material change to, any action,
investigation, suit, proceeding, audit, claim, demand, dispute alleging a violation of or liability
under any Environmental Law, that, for each of clauses (A), (B) and (C) above (and, in the
case of clause (C), if adversely determined), in the aggregate for each such clause, could
reasonably be expected to result in Environmental Liabilities in excess of $1,000,000, (ii) the
receipt by any Obligor of notification that any property of any Obligor is subject to any Lien in
favor of any Governmental Authority securing, in whole or in part, Environmental Liabilities and
(iii) any proposed acquisition or lease of real property (except as part of any Permitted
Acquisition) if such acquisition or lease would have a reasonable likelihood of resulting in
aggregate Environmental Liabilities in excess of $1,000,000.

(b) Upon reasonable request of the Agent, the Obligors shall provide the Agent a report
containing an update as to the status of any environmental, health or safety compliance, hazard or
liability issue identified in any document delivered to any Secured Party pursuant to any Loan
Document or as to any condition reasonably believed by the Administrative Agent to result in
material Environmental Liabilities.

10.1.4. Storage Agreements. Upon request, provide Agent with copies of all existing
agreements, and promptly after execution thereof provide Agent upon request with copies of all
future agreements, between an Obligor and any warehouseman, processor, shipper, bailee, customs
broker or other Person (other than Store landlords) that owns any premises at which any Collateral
having an aggregate value of more than $500,000 may be kept or that otherwise may possess or handle
any Collateral.

 

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10.1.5. Compliance with Laws; Organic Documents; Material Contracts. Comply (a) with
all Applicable Laws, including ERISA, Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws
regarding collection and payment of Taxes, and maintain all Governmental Approvals necessary to the
ownership of its Properties or conduct of its business, unless failure to so comply or maintain
such Governmental Approvals could not reasonably be expected to have a Material Adverse Effect, (b)
with all Organic Documents unless failure to comply therewith could not (x) be reasonably expected
to have a Material Adverse Effect and (y) be reasonably expected to have a materially adverse effect on
the Agent or any Lender and (c) with all of its Material Contracts except in each case where the
failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.
Without limiting the generality of the foregoing, if any material Environmental Release occurs at
or on any Properties of any Obligor or Subsidiary, it shall act promptly and diligently to
investigate and report to Agent and all appropriate Governmental Authorities the extent of, and to
make appropriate remedial action to eliminate, such Environmental Release, whether or not directed
to do so by any Governmental Authority.

10.1.6. Taxes. Pay and discharge all material Taxes prior to the date on which they
become delinquent or penalties attach, unless such Taxes are being Properly Contested.

10.1.7. Insurance. In addition to the insurance required hereunder with respect to
Collateral, maintain insurance with insurers reasonably satisfactory to Agent, with respect to the
Properties, business and business interruption of Obligors and Subsidiaries of such type (including
product liability, workers’ compensation, larceny, embezzlement, or other criminal misappropriation
insurance), in each case, in such amounts, and with such coverages and deductibles as are customary
for companies similarly situated.

10.1.8. Licenses. Keep each License affecting any Collateral (including the
manufacture, distribution or disposition of Inventory) or any other material Property of Obligors
and Subsidiaries in full force and effect, if the failure to maintain such License could reasonably
be expected to result in a Material Adverse Effect.

10.1.9. Future Subsidiaries; Designation of Subsidiaries. Promptly notify Agent upon
any Person becoming a Subsidiary and on the date such Person becomes a Subsidiary, unless such
Person is a Foreign Subsidiary, SPE or Passive Company, cause it to either (i) guaranty the
Obligations by executing a Guaranty in favor of the Agent or (ii) become a Borrower by executing a
joinder agreement substantially in the form of Exhibit H, and, in each case, to execute and deliver
such documents, instruments and agreements and to take such other actions as Agent shall reasonably
require to evidence and perfect a first priority (subject to Permitted Liens entitled to priority
under Applicable Law) Lien in favor of Agent (for the benefit of Secured Parties) on all assets of
such Person constituting Collateral (provided that perfection of any such Lien shall be required to
the same extent required by this Loan Agreement on the Closing Date), including, if reasonably
requested by the Agent, delivery of such legal opinions, in form and substance reasonably
satisfactory to Agent, as it shall deem appropriate. The Borrower Agent may at any time designate
any Guarantor as a Borrower; provided that any such Guarantor shall execute a joinder
agreement substantially in the form of Exhibit H. The Borrower Agent may at any time designate any
Borrower as a Guarantor; provided, that any such Borrower shall execute a Guaranty in favor
of the Agent. Notwithstanding anything to the contrary in the foregoing two sentences, in no event
shall any assets of a Person that is designated a Borrower pursuant to this Section 10.1.9 be
deemed eligible for inclusion in the Tranche A Borrowing Base or the Tranche A-1 Borrowing Base
unless and until the Agent has completed (at the expense of the Borrowers) collateral audits,
examinations, appraisals and environmental assessments of such assets, which collateral audits,
examinations, appraisals and environmental assessments shall be conducted in a manner reasonably
acceptable to the Agent and the Co-Collateral Agents; provided, however, that any
such collateral audits, examinations, appraisals and environmental assessments shall not be subject
to (and shall not be included in) the limitations set forth in Section 10.1.1 on the number of
collateral audits, examinations, appraisals and environmental assessments for which the Agent is
entitled to be reimbursed in any period.

10.1.10. Lien Waivers. Use commercially reasonable efforts to deliver Lien Waivers
for each of the Obligor’s leased locations that constitutes a Large Inventory Location and for each
of the Obligor’s leased locations in a Landlord Lien State.

 

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10.1.11. Preservation of Existence. Preserve, renew and maintain in full force and
effect its legal existence and good standing under the laws of the jurisdiction of its organization
except in a transaction permitted by Section 10.2.6 or Section 10.2.9.

10.1.12. Maintenance of Properties. Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in working order and
condition, ordinary wear and tear excepted and make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect.

10.1.13. Books and Records. Maintain proper books of record and account, in which
full, true and correct entries in conformity with GAAP consistently applied shall be made of all
material financial transactions involving the assets and business of such Obligors or such
Subsidiary, as the case may be.

10.1.14. Operation and Maintenance Plan. If recommended by any environmental report
furnished to the Agent and if required by applicable Environmental Law with respect to any
individual parcel of Real Estate, the Obligors shall establish and comply with an operations and
maintenance program with respect to such individual parcel of Real Estate, in form and substance
reasonably acceptable to Agent, prepared by an environmental consultant reasonably acceptable to
Agent. Without limiting the generality of the preceding sentence, Agent may require (a) periodic
notices or reports regarding matters addressed by the operation and maintenance program to Agent in
form, substance and at such intervals as Agent may reasonably require, (b) and amendment to such
operations and maintenance program reasonably required to address changing circumstances or
applicable laws, (c) access to such parcel of Real Estate, subject to Section 10.1.1, to review and
assess the environmental condition of such parcel and Obligors’ compliance with such operations and
maintenance program, and (d) variation of the operations and maintenance program reasonably
required in response to the reports provided by any such consultants, as required by applicable
Environmental Law.

10.2. Negative Covenants. For so long as any Commitments or Obligations are
outstanding, each Obligor shall not, and shall cause each Subsidiary not to:

10.2.1. Permitted Debt. Create, incur, guarantee or suffer to exist any Debt,
except:

(a) the Obligations;

(b) the Mortgage Loan Debt;

(c) the Senior Note Debt;

(d) Permitted Purchase Money Debt;

(e) Borrowed Money (other than the Obligations, Mortgage Loan Debt, the Senior Note Debt and
Permitted Purchase Money Debt), but only to the extent outstanding on the Closing Date, not
satisfied with proceeds of the initial Loans and set forth on Schedule 10.2.1;

(f) Bank Product Debt; provided that with respect to such Bank Product Debt in
respect of Hedging Agreements, such Obligor is otherwise permitted to enter into such Hedging
Agreement pursuant to Section 10.2.15;

(g) Permitted Contingent Obligations;

(h) Refinancing Debt as long as each Refinancing Condition is satisfied;

 

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(i) Debt that is not included in any of the preceding clauses of this Section 10.2.1, is not
secured by a Lien and the principal amount thereof does not exceed, in the aggregate at any time
(x) $10,000,000 minus (y) the then outstanding principal amount of Permitted Purchase Money
Debt in excess of $25,000,000;

(j) the guarantee by any Obligor of Debt of another Obligor so long as such Debt was otherwise
permitted to be incurred under this Section 10.2.1;

(k) Debt of any Obligor secured by Junior Liens in an aggregate principal amount not to exceed
$100,000,000 at any time outstanding; provided that (i) the final maturity of such Debt
shall not occur prior to the 60th day following the Termination Date, (ii) there shall be no
scheduled amortization or mandatory prepayments or mandatory repayments of such Debt prior to the
60th day following the Termination Date, (iii) 100% of the net proceeds from the issuance of such
Debt is applied to the repayment of the outstanding Loans (it being understood that the Commitments
shall not be reduced and the net proceeds shall not be required to Cash Collateralize outstanding
LC Obligations), (iv) both before and after giving effect to the Junior Debt Documents, no Default
or Event of Default shall exist, (v) the obligors on such debt shall be Obligors hereunder, (vii)
the holders of such Junior Debt (or a representative thereof) shall have entered into an
intercreditor agreement with the Agent, which intercreditor agreement shall be in form and
substance reasonably satisfactory to the Agent and the Co-Collateral Agents and (vi) prior to the
consummation of any Junior Debt transaction, Agent shall have received an officer’s certificate of
the Borrower Agent (in form and substance reasonably satisfactory to Agent) from a Senior Officer
of the Borrower Agent certifying that the conditions set forth in this clause (k) are satisfied;

(l) the incurrence by any Obligor of Debt arising from agreements providing for
indemnification, adjustment of purchase price or similar obligations, or guarantees or letters of
credit, surety bonds or performance bonds securing any obligations of any other Obligor pursuant to
such agreements, in any case incurred in connection with the disposition of any business, assets or
capital stock of any Obligor (other than guarantees of Debt incurred by any Person acquiring all or
any portion of such business, assets or capital stock of such Obligor for the purpose of financing
such acquisition), so long as the principal amount does not exceed the gross proceeds actually
received by any Obligor in connection with such disposition;

(m) the incurrence by any Obligor of Debt arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument drawn against insufficient funds in
the ordinary course of business, provided, however, that such Debt is extinguished within five
Business Days of its Incurrence;

(n) Debt in respect of loans permitted to be made pursuant to Section 10.2.7;

(o) an unsecured guarantee by any Obligor of the obligations of any other Obligor, as tenant,
under any Master Lease Agreement;

(p) Convertible Note Debt in an aggregate principal amount not to exceed $100,000,000;
provided that (i) the final maturity of such Debt shall not occur prior to the 91st day
following the Termination Date, (ii) there shall be no scheduled amortization or mandatory
prepayments or mandatory repayments of such Debt prior to the 91st day following the
Termination Date, (iii) 100% of the net proceeds from the issuance of such Debt is applied to the
repayment of the outstanding Loans (it being understood that the Commitments shall not be reduced
and the net proceeds shall not be required to Cash Collateralize outstanding LC Obligations), (iv)
both before and after giving effect to the Convertible Debt Documents, no Default or Event of
Default shall exist and (v) prior to the consummation of any Convertible Note Debt transaction,
Agent shall have received an officer’s certificate of the Borrower
Agent (in form and substance reasonably satisfactory to Agent) from a Senior Officer of the
Borrower Agent certifying that the conditions set forth in this clause (p) are satisfied;

 

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(q) unsecured Debt owed to sellers constituting consideration for Permitted Acquisitions on
terms and conditions reasonably acceptable to Agent;

(r) unsecured Debt consisting of earn-out obligations in connection with any Permitted
Acquisition;

(s) Debt of a Person or Debt attaching to assets of a Person that, in either case, becomes a
Subsidiary of a Borrower after the date hereof as the result of a Permitted Acquisition,
provided that such Debt existed at the time such Person became a Subsidiary or at the time
such assets were acquired and, in each case, was not created in anticipation thereof;

(t) Debt in respect of deferred compensation incurred in the ordinary course of business;

(u) Debt incurred in connection with any sale or disposition of any property in connection
with any transaction covered by, but not prohibited by, Section 10.2.23; and

(v) Debt owing to any insurance company in connection with the financing of any insurance
premiums permitted by such insurance company in the ordinary course of business.

10.2.2. Permitted Liens. Create or suffer to exist any Lien upon any of its Property,
except the following (collectively, “Permitted Liens”):

(a) Liens in favor of Agent;

(b) Purchase Money Liens securing Permitted Purchase Money Debt (provided that such Liens
shall not, for the avoidance of doubt, secure the Debt permitted pursuant to Section 10.2.1(p));

(c) (i) Liens for Taxes not yet due or being Properly Contested, (ii) Liens for Taxes that are
set forth in Schedule 10.2.2(c); provided that such Taxes (and the Liens in respect
thereof) are satisfied or are being Properly Contested not later than the date that is 90 days
after the Closing Date and (iii) other Liens for Taxes in an aggregate amount not to exceed
$500,000; provided that such Taxes (and the Liens in respect thereof) are satisfied or are
being Properly Contested not later than the date that is 90 days after a Senior Officer of a
Borrower becomes aware of such Liens;

(d) statutory Liens (other than Liens for Taxes or imposed under ERISA) arising in the
Ordinary Course of Business, but only if (i) payment of the obligations secured thereby is not yet
due or is being Properly Contested, and (ii) such Liens do not materially impair the value or use
of the Property or materially impair operation of the business of any Obligor or Subsidiary;

(e) Liens incurred or deposits made in the Ordinary Course of Business to secure the
performance of tenders, bids, leases, contracts (except those relating to Borrowed Money),
statutory obligations and other similar obligations, or arising as a result of progress payments
under government contracts, as long as such Liens are at all times junior to Agent’s Liens;

(f) Liens arising by virtue of a judgment or judicial order against any Obligor or Subsidiary,
or any Property of an Obligor or Subsidiary, in each case not giving rise to an Event of Default;

 

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(g) easements, rights-of-way, restrictions, covenants or other agreements of record, and other
similar charges or encumbrances on Real Estate, that do not secure any monetary obligation and do
not interfere with the Ordinary Course of Business;

(h) normal and customary rights of setoff upon deposits in favor of depository institutions,
and Liens of a collecting bank on Payment Items in the course of collection;

(i) (x) Junior Liens securing Junior Debt permitted by Section 10.2.1(k) and (y) Liens on the
assets of any SPE who is not an Obligor securing the Mortgage Loan Debt and the Refinancing Debt of
Mortgage Loan Debt;

(j) Liens on property of a Person existing at the time such Person is merged with or into or
consolidated with any Obligor; provided that such Liens were in existence prior to the
contemplation of such merger or consolidation and do not extend to any assets other than those of
the Person merged into or consolidated with such Obligor;

(k) Liens on property existing at the time of acquisition thereof by any Obligor, provided
that such Liens were in existence prior to the contemplation of such acquisition and do not extend
to (i) any Accounts or Inventory or (ii) any property other than the property so acquired by such
Obligor;

(l) Liens incurred or deposits made in the ordinary course of business in connection with
worker’s compensation, unemployment insurance or other social security obligations;

(m) Liens, deposits or pledges to secure the performance of bids, tenders, contracts (other
than contracts for the payment of Debt), leases, or other similar obligations arising in the
ordinary course of business;

(n) survey exceptions, encumbrances, easements or reservations of, or rights of others for,
rights of way, zoning or other restrictions as to the use of properties, and defects in title
which, in the case of any of the foregoing, were not incurred or created to secure the payment of
Debt, and which in the aggregate do no materially adversely affect the value of such properties or
materially impair the use for the purposes of which such properties are held by any Obligor;

(o) judgment and attachment Liens not giving rise to an Event of Default and notices of lis
pendens and associated rights related to litigation being contested in good faith by appropriate
proceedings and for which adequate reserves have been made;

(p) Liens, deposits or pledges to secure public or statutory obligations, surety, stay,
appeal, indemnity, performance or other similar bonds or obligations; and Liens, deposits or
pledges in lieu of such bonds or obligations, or to secure such bonds or obligations, or to secure
letters of credit in lieu of or supporting the payment of such bonds or obligations;

(q) any interest or title of a lessor, licensor or sublicensor in the property subject to any
lease, license or sublicense, including any interest of a Licensor in any License;

(r) Liens arising from UCC financing statements regarding operating leases or consignments;

(s) Liens securing Refinancing Debt of the Senior Note Debt; provided that any such
Liens are (i) limited to the collateral securing the Obligations and do not extend to any other
assets of the Parent and its Subsidiaries and (ii) expressly subordinated to the Liens securing the
Obligations and subject to an intercreditor agreement, in form and substance and on terms and
conditions, reasonably
acceptable to Agent and the Co-Collateral Agents, and such intercreditor agreement is in full
force and effect;

 

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(t) Liens for assessments and governmental charges not yet delinquent or being contested in
good faith and for which adequate reserves have been established to the extent required by GAAP;

(u) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business and securing obligations that are not
overdue by more than 30 days or are being Properly Contested;

(v) deposits in the ordinary course of business to secure liability to insurance carriers;

(w) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the ordinary course of
business;

(x) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code
on items in the course of collection, (ii) attaching to commodity trading accounts or other
commodity brokerage amounts incurred in the ordinary course of business and (iii) in favor of
banking institutions arising as a matter of law encumbering deposits (including the right of
set-off) and which are within the general parameters customary in the banking industry;

(y) existing Liens shown on Schedule 10.2.2 and Liens securing Refinancing Debt in respect
thereof; and

(z) the licensing of Intellectual Property to third Persons on reasonable and customary terms
in the ordinary course of business consistent with past practice; provided that such
licensing does not (i) materially interfere with the business of the Parent or any other Obligor or
(ii) interfere with the Agent’s liens or security interests or the Agent’s right to dispose of any
Collateral subject to such Intellectual Property.

10.2.3. Cash Accumulation. Permit, for a period exceeding five (5) consecutive
Business Days, cash or Cash Equivalents in an aggregate amount in excess of $100,000,000 (other
than (a) cash and Cash Equivalents reasonably necessary for the Obligors and their Subsidiaries to
satisfy the current liabilities incurred by them in the ordinary course of their business and
without acceleration of the satisfaction of such current liabilities and (b) so long as no Trigger
Event Period exists, proceeds from the issuance of Equity Interests of the Obligors for a period of
180 days after the receipt by the Obligors thereof) to accumulate and be maintained in the Deposit
Accounts and investment accounts of the Obligors; provided, however, that the
Obligors’ obligations under this Section 10.2.3 shall be suspended if and for so long as there are
no Loans outstanding.

10.2.4. Distributions; Upstream Payments. Declare or make any Distributions, except
(i) Upstream Payments or (ii) Permitted Distributions; or create or suffer to exist any encumbrance
or restriction on the ability of a Subsidiary to make any Upstream Payment, except for restrictions
(a) under the Loan Documents, (b) under Applicable Law, (c) in effect on the Closing Date as shown
on Schedule 9.1.16, and (d) as set forth in documents evidencing Refinancing Debt with respect to
the documents described on Schedule 9.1.16.

10.2.5. Restricted Investments. Make any Restricted Investment.

 

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10.2.6. Disposition of Assets. Make any Asset Disposition (other than any Asset
Disposition by any SPE or Passive Company), except a Permitted Asset Disposition, a disposition of
Equipment under Section 8.4.2, or a transfer of Property by any Obligor to another Obligor.

10.2.7. Loans. Make any loans or other extensions of credit to any Person, except (a)
advances to an officer or employee of any Obligor for salary, travel expenses, relocation expenses,
commissions and similar items in the Ordinary Course of Business; (b) prepaid expenses and
extensions of trade credit made in the Ordinary Course of Business; (c) deposits with financial
institutions permitted hereunder; (d) loans or other extensions of credit from Obligor to Obligor
so long as (x) each Borrower is Solvent and (y) Parent and its Subsidiaries, on a consolidated
basis, are Solvent, in each case, at the time of any such loan or extension of credit; (e) loans or
other extensions of credit by any Obligor to any Subsidiary that is not an Obligor in an amount not
to exceed $1,000,000 at any time outstanding; and (f) loans or other extensions of credit by any
Subsidiary that is not an Obligor to any Obligor.

10.2.8. Restrictions on Payment of Certain Debt. Make any payments (whether voluntary
or mandatory, or a prepayment, redemption, retirement, defeasance or acquisition) with respect to
the Senior Note Debt, the Mortgage Loan Debt, any Junior Debt, the Convertible Note Debt and
Refinancing Debt of any of the Senior Note Debt, the Mortgage Loan Debt, the Convertible Note Debt
and any Junior Debt other than (a) payments of interest, fees and expenses due in the ordinary
course, (b) regularly scheduled principal payments with respect to the Mortgage Loan Debt and
Refinancing Debt of the Mortgage Loan Debt, (c) payments (whether voluntary or mandatory, or a
prepayment, redemption, retirement, defeasance or acquisition) of the Senior Note Debt, any Junior
Debt, the Mortgage Loan Debt and the Convertible Note Debt derived solely from Refinancing Debt
which meets the Refinancing Condition, (d) prepayments of any Junior Debt with the proceeds of
Asset Dispositions, insurance proceeds and condemnation awards solely to the extent (i) the Net
Proceeds, insurance proceeds or condemnation awards, as applicable, were required to be applied to
the Obligations pursuant to Section 5.2 hereof and (ii) the Required Lenders (or other parties
authorized hereunder, as applicable) and each of the Co-Collateral Agents have waived, forgiven or
postponed for more than ten (10) Business Days (by way of amendment, consent or otherwise) such
requirement, and (e) other payments (whether voluntary or mandatory, or a prepayment, redemption,
retirement, defeasance or acquisition) of Senior Note Debt, Mortgage Loan Debt, Junior Debt,
Convertible Note Debt and Refinancing Debt of the Senior Note Debt, any Junior Debt, the
Convertible Note Debt and the Mortgage Loan Debt, so long as (i) no Default or Event of Default
shall have occurred and be continuing or would result after giving effect to any such payment, (ii)
Excess Availability on the date of the making of such payment on a pro forma basis after giving
effect to such payment, and projected Excess Availability on a pro forma basis for the upcoming
twelve month period (after giving effect to such payment), measured as of the last day of each
fiscal month during such twelve month period, is, in each case, greater than or equal to 17.5% of
the lesser of (x) the aggregate Commitments as of the last day of each fiscal month during such
twelve month period and (y) the Aggregate Borrowing Base as of the last day of each fiscal month
during such twelve month period, (iii) as of the monthly fiscal period most recently then ended,
the Consolidated Fixed Charge Coverage Ratio (on a pro forma trailing 12 fiscal month basis, giving
effect to the making of such payment, and any Borrowings made in connection therewith, determined
as though such payment and such Borrowings occurred on the first day of the twelve (12) fiscal
month period ended prior to such payment) is greater than or equal to 1.00 to 1.00, and (iv) the
Borrowers shall have provided the Agent with a certificate not less than then (10) days prior to
the making of such payment executed by a Senior Officer of the Borrower Agent, evidencing
compliance, on a pro forma basis, after giving effect to such payment, with the requirements set
forth in clauses (e)(ii) and (e)(iii) above).

 

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10.2.9. Fundamental Changes. (a) Merge, combine or consolidate with any Person, or
liquidate, wind up its affairs or dissolve itself, in each case whether in a single transaction or
in a series of related transactions, except (i) for mergers or consolidations of (x) an Obligor
with another Obligor or (y) a Subsidiary that is not an Obligor with (A) any other Subsidiary that
is not an Obligor or (B) any Obligor so long as such Obligor is the continuing or surviving entity
or, if such Obligor is not the continuing or
surviving entity, the continuing or surviving entity becomes an Obligor (prior to or
concurrently with the consummation of such merger or consolidation), (ii) for liquidation or
dissolution of any Subsidiary of the Parent, so as long as (x) the net assets of such Subsidiary
remaining after payments to creditors are distributed to an Obligor and (y) in any event, 100% of
the Capital Stock or other equity securities held by such dissolving Subsidiary are transferred to
an Obligor, (iii) for liquidation or dissolution of any Obligor not permitted pursuant to clause
(ii) above (other than a liquidation or dissolution of the Parent) on terms and conditions
acceptable to Agent or (iv) to affect the transactions otherwise permitted pursuant to Section
10.2.5; or (b) without fifteen (15) days prior written notice to the Agent, change its name or
conduct business under any fictitious name, change its tax, charter or other organizational
identification number, or change its form or state of organization.

10.2.10. Subsidiaries. Form or acquire any Subsidiary after the Closing Date, except
in accordance with Sections 10.1.9 and 10.2.5; or permit any existing Subsidiary to issue any
additional Equity Interests except (a) director’s qualifying shares and (b) Equity Interests issued
to an Obligor.

10.2.11. Organic Documents. Amend, modify or otherwise change, in a manner which
would be materially adverse to any Lender, any of its Organic Documents as in effect on the Closing
Date.

10.2.12. Tax Consolidation. File or consent to the filing of any consolidated income
tax return with any Person other than Obligors and Subsidiaries.

10.2.13. Accounting Changes. Make any material change in accounting treatment or
reporting practices, except as required by GAAP and in accordance with Section 1.2; or change its
Fiscal Year.

10.2.14. Restrictive Agreements. Other than any conditions or restrictions in respect
of Distributions by the Parent, become a party to any Restrictive Agreement, except (a) a
Restrictive Agreement as in effect on the Closing Date and shown on Schedule 9.1.16; (b) a
Restrictive Agreement relating to secured Debt permitted hereunder, if such restrictions apply only
to the collateral for such Debt; (c) customary provisions in leases and other contracts restricting
assignment thereof; (d) Restrictive Agreements contained in documents evidencing Refinancing Debt
of (A) the Senior Note Debt and (B) the Mortgage Loan Debt; (e) Restrictive Agreements contained in
documents evidencing any Junior Debt so long as (i) such documents do not restrict or limit (A) the
incurrence of indebtedness under this Agreement (except as may be provided in the Junior Debt
Intercreditor Agreement), (B) the making of payments on account of the Obligations, (C) the
granting of liens to the Agent to secure the Obligations, or (D) the modification, renewal or
extension of this Agreement (except as may be provided in the Junior Debt Intercreditor Agreement)
and (ii) a Senior Officer of the Borrower Agent has delivered a certificate to the Agent stating
that the Borrower Agent has determined in good faith that such restrictions taken as a whole are
consistent with market terms of agreements governing comparable Debt of similar companies at the
time of incurrence of any Junior Debt under such Junior Debt Documents; (f) Restrictive Agreements
contained in documents evidencing the Convertible Note Debt or Refinancing Debt of the Convertible
Note Debt; and (g) customary restrictions entered into in the ordinary course of business in asset
sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements
limiting the transfer of the assets subject thereto pending the consummation of the sale provided
therein.

10.2.15. Hedging Agreements. Enter into any Hedging Agreement, except to hedge risks
arising in the Ordinary Course of Business and not for speculative purposes.

10.2.16. Conduct of Business. Engage in any business other than Permitted Businesses,
except to such extent as would not be material to the Obligors taken as a whole.

 

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10.2.17. Affiliate Transactions. Enter into or be party to any transaction with an
Affiliate, except (a) transactions contemplated by the Loan Documents; (b) payment of reasonable
compensation to officers and employees for services actually rendered, and loans and advances
permitted by Section 10.2.7; (c) payment of customary directors’ fees and indemnities; (d)
transactions solely among Obligors; (e) transactions with Affiliates that were entered into prior
to the Closing Date, as shown on Schedule 10.2.17 or as thereafter amended or replaced in any
manner, that, taken as a whole, is not more adverse to the interests of the Lenders in any material
respect than such transaction or agreement evidencing such transaction as in effect on the date
hereof; (f) transactions contemplated by the Mortgage Loan Debt Documents and (g) transactions with
Affiliates in the Ordinary Course of Business, upon fair and reasonable terms fully disclosed to
Agent and no less favorable than would be obtained in a comparable arm’s-length transaction with a
non-Affiliate.

10.2.18. Plans. Become party to any Multiemployer Plan or Foreign Plan.

10.2.19. Amendments to Certain Material Contracts. Except in connection with any
Refinancing Debt permitted hereunder, change, waive or amend any agreement or arrangement to which
Parent or a Subsidiary is party that relates to any Mortgage Loan Debt Document, the Convertible
Note Debt Document, Junior Debt Document or any Senior Note Debt Document if such change, waiver or
amendment (i) increases the principal balance of such Debt, or increases any required payment of
principal or interest; (ii) accelerates the date on which any installment of principal or any
interest is due, or adds any additional redemption, put or prepayment provisions; (iii) shortens
the final maturity date or otherwise accelerates amortization; (iv) increases the interest rate;
(v) increases or adds any fees or charges; (vi) modifies any covenant in a manner or adds any
representation, covenant or default that is more onerous or restrictive in any material respect for
any Obligor or Subsidiary, or that is otherwise materially adverse to any Obligor, any Subsidiary
or Lenders; or (vii) could reasonably be considered to be materially adverse to the Lenders.

10.2.20. No Speculative Transactions. Engage in any transaction involving commodity
options, futures contracts or similar transactions, except solely to hedge against fluctuations in
the prices of commodities owned or purchased by it and the values of foreign currencies receivable
or payable by it and interest swaps, caps or collars.

10.2.21. Passive Company Status. Where such Obligor or such Subsidiary is a Passive
Company, engage in any trade or business or incur any Debt or guaranteed Debt except for the trade
or business in which it is engaged on the Closing Date.

10.2.22. General Partner. Be or become the general partner of any partnership other
than (a) a Passive Company and (b) any Subsidiary with nominal assets; provided
that notwithstanding anything to the contrary contained herein, at no time may any assets
(other than assets with a fair market value of nominal amount) of any Obligor be transferred to any
such Subsidiary described in this clause (b).

10.2.23. Sale-Leaseback Transactions. Engage in any sale-leaseback, synthetic lease
or similar transaction involving any of its assets other than (x) any such transaction entered into
by any SPE or Passive Company where such transaction involves only the assets of such SPE or
Passive Company and (y) such transactions involving assets of the Obligors with a fair market value
of not more than $75,000,000 in the aggregate; provided that, in the case of clause (y),
(a) the terms and conditions of any such transaction shall be reasonably acceptable to Agent; (b)
the Net Proceeds received from such sale are not less than 70% of the most recent appraised value
of such assets; and (c) simultaneously with the consummation of any such transaction the Obligors
shall (i) deliver to Agent a Lien Waiver in form and substance satisfactory to Agent (or Agent
shall take an appropriate Rent and Charges Reserve), (ii) adjust the Tranche A Borrowing Base and
the Tranche A-1 Borrowing Base to reflect the sale of Eligible Real
Estate included therein, if any, and (iii) apply proceeds from such transaction to the
prepayment of the Loans to the extent required by Section 5.2.

 

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10.2.24. Debt under Senior Note Debt Documents. Incur any Indebtedness (as defined in
the Senior Note Indenture), other than (i) the Obligations, (ii) the Mortgage Loan Debt and any
Refinancing Debt of the Mortgage Loan Debt, (iii) any Junior Debt and (iv) the Convertible Note
Debt, that at the time of the incurrence thereof, or at any time thereafter, is Indebtedness (as
defined in the Senior Note Indenture) permitted to be incurred under the Senior Note Indenture as a
result of such Indebtedness (as defined in the Senior Note Indenture) being permitted under Section
4.09(b)(1) of the Senior Note Indenture.

10.2.25. Use of Proceeds. The proceeds of Loans or Letters of Credit shall not be
used by Borrowers, whether directly or indirectly, and whether immediately, incidentally or
ultimately, to purchase or carry Margin Stock or to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

10.2.26. No Inconsistent Agreements. Enter into any contractual obligation or enter
into any amendment or other modification to any currently existing contractual obligation, which by
its terms restricts or prohibits the Borrowers from paying the principal of or interest on the
Loans or Cash Collateralizing the Letters of Credit.

10.2.27. Stay, Extension and Usury Laws. Insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law
wherever enacted (to the extent that it may lawfully do so), now or at any time hereafter in force,
that may affect the covenants or the performance of its obligations under the Loans, this Loan
Agreement or the other Loan Documents, and each Obligor hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to Lenders, but shall suffer and permit
the execution of every such power as though no such law has been enacted.

10.3. Financial Covenants. For so long as any Commitments or Obligations are
outstanding, Borrowers shall:

10.3.1. Minimum Excess Availability. Maintain Excess Availability at all times
in an amount greater than or equal to the greater of (i) 10% of the lesser of: (x) the
aggregate Commitments at such time and (y) the Aggregate Borrowing Base at such time and
(ii) $50,000,000.

SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT

11.1. Events of Default. Each of the following shall be an “Event of Default”
hereunder, if the same shall occur for any reason whatsoever, whether voluntary or involuntary, by
operation of law or otherwise:

(a) Any Borrower fails to pay (i) any principal of the Loans when due (whether at stated
maturity, on demand, upon acceleration or otherwise) or any interest on the Loans when due or (ii)
any fee or any other amount (other than an amount payable under clause (i) of this Section) payable
under this Loan Agreement or any other Loan Document, when and as the same shall become due and
payable, and, in the case of this clause (ii), such failure shall continue unremedied for a period
of three (3) Business Days;

 

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(b) (i) Any information contained in any Compliance Certificate or Borrowing Base Certificate
was untrue or incorrect in any material respect when made or (ii) any representation or warranty
made or delivered to Agent or any Lender by any Obligor herein, in connection with any Loan
Document or transaction contemplated thereby, or in any written statement, report, financial
statement or certificate (other than a Borrowing Base Certificate or Compliance Certificate) is
untrue, incorrect or misleading in any material respect when given or confirmed;

(c) Any Obligor breaches or fails to perform any covenant contained in (i) Section 7.2 of this
Loan Agreement (other than inadvertent breaches of such covenant), (ii) in Sections 8.1, 8.2.3,
10.1.1, 10.1.2(a), 10.1.2(b), 10.1.2(c), 10.1.2(d), 10.1.2(e), 10.1.2(f), 10.1.3(k), 10.1.3(l),
10.2 or 10.3 of this Loan Agreement, or (iii) any provision contained in the Junior Debt
Intercreditor Agreement (from and after the execution and delivery thereof);

(d) Any Obligor breaches or fails to perform any other covenant contained in any Loan
Documents, and such breach or failure is not cured within 30 days after a Senior Officer of such
Obligor has knowledge thereof or receives written notice thereof from Agent, whichever is sooner;
provided, however, that such notice and opportunity to cure shall not apply if the breach or
failure to perform is not capable of being cured within such period;

(e) Any Guarantor repudiates, revokes or attempts to revoke its Guaranty; any Obligor denies
or contests the validity or enforceability of any Loan Documents or Obligations, or the perfection
or priority of any Lien granted to Agent; or any Loan Document ceases to be in full force or effect
for any reason (other than a waiver or release by Agent and Lenders);

(f) Any (x) breach or default of an Obligor or any Subsidiary of an Obligor occurs under any
document, instrument or agreement to which it is a party or by which it or any of its Properties is
bound relating to any Debt (other than the Obligations) in excess of $5,000,000 then outstanding if
the maturity of or any payment with respect to such Debt may be accelerated or demanded due to such
breach or (y) Debt (other than the Obligations) in excess of $5,000,000 of any Obligor or any
Subsidiary of any Obligor is required to be repaid, repurchased, redeemed or defeased, other than
in connection with a Permitted Refinancing;

(g) Any judgment or order for the payment of money is entered against an Obligor in an amount
that exceeds, individually or cumulatively with all unsatisfied judgments or orders against all
Obligors, $5,000,000 (other than amounts covered by insurance for which the insurer thereof has not
challenged such coverage), unless a stay of enforcement of such judgment or order is in effect, by
reason of a pending appeal or otherwise;

(h) (i) Any Obligor becomes unable or admits in writing its inability or fails generally to
pay its debts as they become due, 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 Obligor and is
not released, vacated or fully bonded within 60 days after its issue or levy;

(i) [Reserved];

(j) Any Obligor is enjoined, restrained or in any way prevented by any Governmental Authority
from conducting any material part of its business; any Obligor suffers the loss, revocation or
termination of any material license, permit, lease or agreement necessary to its business and such
loss, revocation or termination could reasonably be expected to result in a Material Adverse
Effect; there is a cessation of any material part of an Obligor’s business for a material period of
time not covered by business interruption insurance and such cessation could reasonably be expected
to result in a Material Adverse Effect; or any material Collateral or Property of an Obligor is
taken or impaired through condemnation and such taking or impairment could reasonably be expected
to result in a Material Adverse Effect;

 

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(k) Any Insolvency Proceeding is commenced by any Obligor or any Obligor takes any corporate
action authorizing the commencement thereof; an Insolvency Proceeding is commenced against any
Obligor and: such Obligor consents to the institution of the proceeding against it, the petition
commencing the proceeding is not timely controverted by such Obligor, such petition is not
dismissed or stayed within 60 days after its filing, or an order for relief is entered in the
proceeding; a trustee (including an interim trustee) is appointed to take possession of any
substantial Property of or to operate any of the business of any Obligor; or any Obligor makes an
offer of settlement, extension or composition to its unsecured creditors generally;

(l) A Reportable Event occurs that constitutes grounds for termination by the Pension Benefit
Guaranty Corporation of any Multiemployer Plan or appointment of a trustee for any Multiemployer
Plan; any Multiemployer Plan is terminated or any such trustee is requested or appointed; any
Obligor is in “default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a
Multiemployer Plan resulting from any withdrawal therefrom; or any event similar to the foregoing
occurs or exists with respect to a Foreign Plan, in each case, where the liability associated with
the foregoing is reasonably expected to be in excess of $5,000,000;

(m) Any Obligor is criminally indicted or convicted for (i) a felony committed in the conduct
of such Obligor’s business, or (ii) any state or federal law (including the Controlled Substances
Act, Money Laundering Control Act of 1986 and Illegal Exportation of War Materials Act) that could
lead to forfeiture of any material Property or any Collateral; or

(n) A Change of Control occurs.

11.2. Remedies upon Default. If an Event of Default described in Section 11.1(k)
occurs with respect to any Obligor, then to the extent permitted by Applicable Law, all Obligations
shall become automatically due and payable and all Commitments shall terminate, without any action
by Agent or notice of any kind. In addition, or if any other Event of Default exists, Agent may in
its discretion (and shall upon written direction of Required Lenders) do any one or more of the
following from time to time:

(a) declare any Obligations immediately due and payable, whereupon they shall be due and
payable without diligence, presentment, demand, protest or notice of any kind, all of which are
hereby waived by Obligors to the fullest extent permitted by law;

(b) terminate, reduce or condition any of the Commitments, or make any adjustment to the
Tranche A Borrowing Base or to the Tranche A-1 Borrowing Base;

(c) require Obligors to Cash Collateralize LC Obligations, Bank Product Debt and other
Obligations (other than unmatured contingent indemnification obligations) that are contingent or
not yet due and payable, and, if Obligors fail promptly to deposit such Cash Collateral, Agent may
(and shall upon the direction of Required Lenders) advance the required Cash Collateral as Tranche
A Revolver Loans (whether or not an Overadvance exists or is created thereby, or the conditions in
Section 6 are satisfied); and

(d) exercise any other rights or remedies afforded under any agreement, by law, at equity or
otherwise, including the rights and remedies of a secured party under the UCC. Such rights and
remedies include the rights to (i) take possession of any Collateral; (ii) require Obligors to
assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place designated by
Agent; (iii) enter any premises where Collateral is located and store Collateral on such premises
until sold (and if the premises are owned or leased by an Obligor, Obligors agree not to charge for
such storage); and (iv) sell or otherwise dispose of any Collateral in its then condition, or after
any further manufacturing or processing thereof, at public or private sale, with such notice as may
be required by Applicable Law, in lots or in bulk, at such locations, all as Agent, in its
discretion, deems advisable. Each Obligor agrees that
10 days notice of any proposed sale or other disposition of Collateral by Agent shall be
reasonable. Agent shall have the right to conduct such sales on any Obligor’s premises, without
charge, and such sales may be adjourned from time to time in accordance with Applicable Law. Agent
shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any
combination thereof, and Agent may purchase any Collateral at public or, if permitted by law,
private sale and, in lieu of actual payment of the purchase price, may set off the amount of such
price against the Obligations.

 

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11.3. License. Agent is hereby granted an irrevocable, non-exclusive license or other
right to use, license or sub-license (without payment of royalty or other compensation to any
Person) any or all Intellectual Property (subject, in the case of trademarks owned by any Obligor,
to sufficient rights to quality control and inspection in favor of such Obligor to avoid the risk
of invalidation of said trademarks), computer hardware and software, trade secrets, brochures,
customer lists, promotional and advertising materials, labels, packaging materials and other
Property owned by any Obligor, in advertising for sale, marketing, selling, collecting, completing
manufacture of, or otherwise exercising any rights or remedies with respect to, any Collateral in
each case after the occurrence, and during the continuance, of an Event of Default.

11.4. Setoff. Agent, Lenders and their Affiliates are each authorized by Obligors at
any time during the occurrence and continuance of an Event of Default, without notice to Obligors
or any other Person, to set off and to appropriate and apply any deposits (general or special),
funds, claims, obligations, liabilities or other Debt at any time held or owing by Agent, any
Lender or any such Affiliate to or for the account of any Obligor against any Obligations, whether
or not demand for payment of such Obligation has been made, any Obligations have been declared due
and payable, are then due, or are contingent or unmatured, or the Collateral or any guaranty or
other security for the Obligations is adequate.

11.5. Remedies Cumulative; No Waiver.

11.5.1. Cumulative Rights. All covenants, conditions, provisions, warranties,
guaranties, indemnities and other undertakings of Borrowers contained in the Loan Documents are
cumulative and not in derogation or substitution of each other. In particular, the rights and
remedies of Agent and Lenders are cumulative, may be exercised at any time and from time to time,
concurrently or in any order, and shall not be exclusive of any other rights or remedies that Agent
and Lenders may have, whether under any agreement, by law, at equity or otherwise.

11.5.2. Waivers. The failure or delay of any party hereto to require strict
performance by any other party thereto with any terms of the Loan Documents, or to exercise any
rights or remedies with respect to Collateral or otherwise, shall not operate as a waiver thereof
nor as establishment of a course of dealing. All rights and remedies shall continue in full force
and effect until the payment in full, in cash of all Obligations (other than contingent
indemnification obligations) and the occurrence of the Commitment Termination Date. No
modification of any terms of any Loan Documents (including any waiver thereof) shall be effective,
unless such modification is specifically provided in a writing directed to Borrower Agent and
executed by Borrower Agent and Agent or the requisite Lenders, and such modification shall be
applicable only to the matter specified. No waiver of any Default or Event of Default shall
constitute a waiver of any other Default or Event of Default that may exist at such time, unless
expressly stated. If Agent or any Lender accepts performance by any Obligor under any Loan
Documents in a manner other than that specified therein, or during any Default or Event of Default,
or if Agent or any Lender shall delay or exercise any right or remedy under any Loan Documents,
such acceptance, delay or exercise shall not operate to waive any Default or Event of Default nor
to preclude exercise of any other right or remedy. It is expressly acknowledged by Obligors that
any failure to satisfy a financial covenant on a measurement date shall not be cured or remedied by
satisfaction of such covenant on a subsequent date.

 

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SECTION 12. AGENT

12.1. Appointment, Authority and Duties of Agent

12.1.1. Appointment and Authority. Each Lender appoints and designates Bank of
America as Agent hereunder. Agent may, and each Lender authorizes Agent to, enter into all Loan
Documents to which Agent is intended to be a party and accept all Security Documents, for Agent’s
benefit and the Pro Rata benefit of Lenders. Each Lender agrees that any action taken by Agent or
Required Lenders, in accordance with the provisions of the Loan Documents, and the exercise by
Agent or Required Lenders of any rights or remedies set forth therein, together with all other
powers reasonably incidental thereto, shall be authorized and binding upon all Lenders. Without
limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to (a)
act as the disbursing and collecting agent for Lenders with respect to all payments and collections
arising in connection with the Loan Documents; (b) execute and deliver as Agent each Loan Document,
including any intercreditor or subordination agreement, and accept delivery of each Loan Document
from any Obligor or other Person; (c) act as collateral agent for Secured Parties for purposes of
perfecting and administering Liens under the Loan Documents, and for all other purposes stated
therein; (d) manage, supervise or otherwise deal with Collateral; and (e) exercise all rights and
remedies given to Agent with respect to any Collateral under the Loan Documents, Applicable Law or
otherwise. The duties of Agent shall be ministerial and administrative in nature, and Agent shall
not have a fiduciary relationship with any Lender, Secured Party, Participant or other Person, by
reason of any Loan Document or any transaction relating thereto. Agent alone shall be authorized
to determine whether any fixtures, Real Estate or Inventory constitute Eligible Real Estate or
Eligible Inventory, as the case may be, or whether to impose or release any reserve, which
determinations and judgments, if exercised in good faith, shall exonerate Agent from liability to
any Lender or other Person for any error in judgment.

12.1.2. Duties. Agent shall not have any duties except those expressly set forth in
the Loan Documents, nor be required to initiate or conduct any Enforcement Action except to the
extent directed to do so by Required Lenders while an Event of Default exists. The conferral upon
Agent of any right shall not imply a duty on Agent’s part to exercise such right, unless instructed
to do so by Required Lenders in accordance with this Loan Agreement.

12.1.3. Agent Professionals. Agent may perform its duties through agents and
employees. Agent may consult with and employ Agent Professionals, and shall be entitled to act
upon, and shall be fully protected in any action taken in good faith reliance upon, any advice
given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of
any agents, employees or Agent Professionals selected by it with reasonable care.

12.1.4. Instructions of Required Lenders. The rights and remedies conferred upon
Agent under the Loan Documents may be exercised without the necessity of joinder of any other
party, unless required by Applicable Law. Agent may request instructions from Required Lenders
with respect to any act (including the failure to act) in connection with any Loan Documents, and
may seek assurances to its satisfaction from Lenders of their indemnification obligations under
Section 12.6 against all Claims that could be incurred by Agent in connection with any act. Agent
shall be entitled to refrain from any act until it has received such instructions or assurances,
and Agent shall not incur liability to any Person by reason of so refraining. Instructions of
Required Lenders shall be binding upon all Lenders, and no Lender shall have any right of action
whatsoever against Agent as a result of Agent acting or refraining from acting in accordance with
the instructions of Required Lenders. Notwithstanding the foregoing, instructions by and consent
of all Lenders shall be required in the circumstances described in Section 14.1.1, and in no event
shall, and in no event shall Required Lenders, without the prior written consent of each Lender,
direct Agent to accelerate and demand payment of Loans held by one Lender without accelerating and
demanding payment of all other Loans, nor to terminate the Commitments of one Lender without
terminating the Commitments of all Lenders. In no event shall Agent be required to take any
action that, in its opinion, is contrary to Applicable Law or any Loan Documents or could
subject any Agent Indemnitee to personal liability.

 

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12.1.5. Co-Collateral Agents. Each Lender appoints and designates each of Bank of
America and General Electric Capital Corporation as a Co-Collateral Agent hereunder. The rights of
the Co-Collateral Agents are set forth in the Co-Collateral Agent Rights Agreement.

12.1.6. No Fiduciary Relationship. The relationship between Agent and each of the
Lenders is that of an independent contractor. The use of the term “Agent” is for
convenience only and is used to describe, as a form of convention, the independent contractual
relationship between Agent and each of the Lenders. Nothing contained in this Loan Agreement nor
the other Loan Documents shall be construed to create an agency, trust or other fiduciary
relationship between Agent and any of the Lenders.

12.2. Agreements Regarding Collateral and Field Examination Reports.

12.2.1. Lien Releases; Care of Collateral. Lenders authorize Agent to (x) release any
Lien with respect to any Collateral (a) upon the occurrence of (i) the payment, in full, in cash of
the Obligations (other than contingent indemnification obligations with respect to which no claim
has been asserted in writing), (ii) the payment of any appropriate Cash Collateral deposits in
connection with contingent LC Obligations and other Obligations and (iii) the occurrence of the
Commitment Termination Date, (b) that is the subject of an Asset Disposition which Borrower Agent
certifies in writing to Agent is a Permitted Asset Disposition (and Agent may rely conclusively on
any such certificate without further inquiry), (c) that does not constitute a material part of the
Collateral, or (d) with the written consent of all Lenders, or (y) release any Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder. Agent shall have no obligation whatsoever to any Lenders to
assure that any Collateral exists or is owned by an Obligor, or is cared for, protected, insured or
encumbered, nor to assure that Agent’s Liens have been properly created, perfected or enforced, or
are entitled to any particular priority, nor to exercise any duty of care with respect to any
Collateral.

12.2.2. Possession of Collateral. Agent and Lenders appoint each other Lender as
agent for the purpose of perfecting Liens (for the benefit of Secured Parties) in any Collateral
that, under the UCC or other Applicable Law, can be perfected by possession. If any Lender obtains
possession of any such Collateral, it shall notify Agent thereof and, promptly upon Agent’s
request, deliver such Collateral to Agent or otherwise deal with such Collateral in accordance with
Agent’s instructions.

12.2.3. Reports. Agent shall promptly, upon receipt thereof, forward to each Lender
copies of the results of any field audit or other examination or any appraisal prepared by or on
behalf of Agent with respect to any Obligor or Collateral (“Report”). Each Lender agrees
(a) that neither Bank of America nor Agent makes any representation or warranty as to the accuracy
or completeness of any Report, and shall not be liable for any information contained in or omitted
from any Report; (b) that the Reports are not intended to be comprehensive audits or examinations,
and that Agent or any other Person performing any audit or examination will inspect only specific
information regarding Obligations or the Collateral and will rely significantly upon Obligors’
books and records as well as upon representations of Obligors’ officers and employees; and (c) to
keep all Reports confidential and strictly for such Lender’s internal use, and not to distribute
any Report (or the contents thereof) to any Person (except to such Lender’s Participants, attorneys
and accountants) or use any Report in any manner other than administration of the Loans and other
Obligations. Each Lender agrees to indemnify and hold harmless Agent and any other Person
preparing a Report from any action such Lender may take as a result of or any conclusion it may
draw from any Report, as well as any Claims arising in connection with any third parties that
obtain all or any part of a Report through such Lender.

 

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12.3. Reliance By Agent. Agent shall be entitled to rely, and shall be fully
protected in relying, upon any certification, notice or other communication (including those by
telephone, telex, telegram, telecopy or e-mail) believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person, and upon the advice and statements of Agent
Professionals.

12.4. Action Upon Default. Agent shall not be deemed to have knowledge of any Default
or Event of Default unless it has received written notice from a Lender, a Borrower or Borrower
Agent specifying the occurrence and nature thereof. If any Lender acquires knowledge of a Default
or Event of Default, it shall promptly notify Agent and the other Lenders thereof in writing. Each
Lender agrees that, except as otherwise provided in any Loan Documents or with the written consent
of Agent and Required Lenders, it will not take any Enforcement Action, accelerate its Obligations,
or exercise any right that it might otherwise have under Applicable Law to credit bid at
foreclosure sales, UCC sales or other similar dispositions of Collateral. Notwithstanding the
foregoing, however, a Lender may take action to preserve or enforce its rights against an Obligor
where a deadline or limitation period is applicable that would, absent such action, bar enforcement
of Obligations held by such Lender, including the filing of proofs of claim in an Insolvency
Proceeding.

12.5. Ratable Sharing. If any Lender shall obtain any payment or reduction of any
Obligation, whether through set-off or otherwise, in excess of its share of such Obligation,
determined on a Pro Rata basis or in accordance with Section 5.5, as applicable, such Lender shall
forthwith purchase from Agent, Issuing Bank and the other Lenders such participations in the
affected Obligation as are necessary to cause the purchasing Lender to share the excess payment or
reduction on a Pro Rata basis or in accordance with Section 5.5, as applicable. If any of such
payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest.

12.6. Indemnification of Agent Indemnitees.

12.6.1. INDEMNIFICATION. EACH LENDER SHALL INDEMNIFY AND HOLD HARMLESS AGENT
INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS (BUT WITHOUT LIMITING THE INDEMNIFICATION
OBLIGATIONS OF OBLIGORS UNDER ANY LOAN DOCUMENTS), ON A PRO RATA BASIS, AGAINST ALL CLAIMS THAT MAY
BE INCURRED BY OR ASSERTED AGAINST ANY AGENT INDEMNITEE; PROVIDED THAT NO LENDER SHALL HAVE ANY
OBLIGATION TO INDEMNIFY OR HOLD HARMLESS THE AGENT INDEMNITEES FOR ANY CLAIM THAT IS DETERMINED IN
A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO RESULT FROM THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY AGENT INDEMNITEE. If Agent is sued by any receiver,
trustee in bankruptcy, debtor-in-possession or other Person for any alleged preference from an
Obligor or fraudulent transfer, then any monies paid by Agent in settlement or satisfaction of such
proceeding, together with all interest, costs and expenses (including attorneys’ fees) incurred in
the defense of same, shall be promptly reimbursed to Agent by Lenders to the extent of each
Lender’s Pro Rata share.

12.6.2. Proceedings. Without limiting the generality of the foregoing, if at any time
(whether prior to or after the Commitment Termination Date) any proceeding is brought against any
Agent Indemnitees by an Obligor, or any Person claiming through an Obligor, to recover damages for
any act taken or omitted by Agent in connection with any Obligations, Collateral, Loan Documents or
matters relating thereto, or otherwise to obtain any other relief of any kind on account of any
transaction relating to any Loan Documents, each Lender agrees to indemnify and hold harmless Agent
Indemnitees with respect thereto and to pay to Agent Indemnitees such Lender’s Pro Rata share of
any amount that any Agent Indemnitee is required to pay under any judgment or other order entered
in such proceeding or by reason of any settlement, including all interest, costs and expenses
(including attorneys’ fees) incurred in defending same; provided that no Lender
shall be liable for payment of any such amount to the extent that
it is determined in a final, non-appealable judgment by a court of competent jurisdiction that
such judgment, order or settlement resulted from any Agent Indemnitees’ gross negligence or willful
misconduct. In Agent’s discretion, Agent may reserve for any such proceeding, and may satisfy any
judgment, order or settlement, from proceeds of Collateral prior to making any distributions of
Collateral proceeds to Lenders provided that it has not been determined in a final,
non-appealable judgment by a court of competent jurisdiction that such judgment, order or
settlement resulted from any Agent Indemnitees’ gross negligence or willful misconduct.

 

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12.7. Limitation on Responsibilities of Agent. Agent shall not be liable to Lenders
for any action taken or omitted to be taken under the Loan Documents, except for losses directly
and solely caused by Agent’s gross negligence or willful misconduct. Agent does not assume any
responsibility for any failure or delay in performance or any breach by any Obligor or Lender of
any obligations under the Loan Documents. Agent does not make to Lenders any express or implied
warranty, representation or guarantee with respect to any Obligations, Collateral, Loan Documents
or Obligor. No Agent Indemnitee shall be responsible to Lenders for any recitals, statements,
information, representations or warranties contained in any Loan Documents; the execution,
validity, genuineness, effectiveness or enforceability of any Loan Documents; the genuineness,
enforceability, collectibility, value, sufficiency, location or existence of any Collateral, or the
validity, extent, perfection or priority of any Lien therein; the validity, enforceability or
collectibility of any Obligations; or the assets, liabilities, financial condition, results of
operations, business, creditworthiness or legal status of any Obligor or Account Debtor. No Agent
Indemnitee shall have any obligation to any Lender to ascertain or inquire into the existence of
any Default or Event of Default, the observance or performance by any Obligor of any terms of the
Loan Documents, or the satisfaction of any conditions precedent contained in any Loan Documents.

12.8. Successor Agent.

12.8.1. Resignation; Successor Agent. Subject to the appointment and acceptance of a
successor Agent as provided below, Agent may resign at any time by giving at least 30 days written
notice thereof to Lenders and Borrower Agent. Upon receipt of such notice, Required Lenders shall
have the right to appoint a successor Agent which shall be (a) a Lender or an Affiliate of a
Lender; or (b) a commercial bank that is organized under the laws of the United States or any state
or district thereof, has a combined capital surplus of at least $200,000,000 and (provided no
Default or Event of Default exists) is reasonably acceptable to Borrower Agent. If no successor
Agent is appointed prior to the effective date of the resignation of Agent, then Agent may appoint
a successor agent from among the Lenders that is reasonably acceptable to the Borrower Agent or, if
no successor Lender accepts its appointment on or prior to the effective date of the resignation of
Agent, Agent may appoint any other Person reasonably acceptable to the Borrower Agent as successor
Agent. Upon acceptance by a successor Agent of an appointment to serve as Agent hereunder, such
successor Agent shall thereupon succeed to and become vested with all the powers and duties of the
retiring Agent without further act, and the retiring Agent shall be discharged from its duties and
obligations hereunder but shall continue to have the benefits of the indemnification set forth in
Sections 12.6 and 14.2. Notwithstanding any Agent’s resignation, the provisions of this Section 12
shall continue in effect for its benefit with respect to any actions taken or omitted to be taken
by it while Agent. Any successor by merger or acquisition of the stock or assets of Bank of
America shall continue to be Agent hereunder without further act on the part of the parties hereto,
unless such successor resigns as provided above.

12.8.2. Separate Collateral Agent. It is the intent of the parties that there shall
be no violation of any Applicable Law denying or restricting the right of financial institutions to
transact business in any jurisdiction. If Agent believes that it may be limited in the exercise of
any rights or remedies under the Loan Documents due to any Applicable Law, Agent may appoint an
additional Person who is not so limited, as a separate collateral agent or co-collateral agent. If
Agent so appoints a collateral agent or co-collateral agent, each right and remedy intended to be
available to Agent under the Loan Documents shall also be vested in such separate agent. Every
covenant and obligation necessary to
the exercise thereof by such agent shall run to and be enforceable by it as well as Agent.
Lenders shall execute and deliver such documents as Agent deems appropriate to vest any rights or
remedies in such agent. If any collateral agent or co-collateral agent shall die or dissolve,
become incapable of acting, resign or be removed, then all the rights and remedies of such agent,
to the extent permitted by Applicable Law, shall vest in and be exercised by Agent until
appointment of a new agent.

 

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12.9. Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it
has, independently and without reliance upon Agent or any other Lenders, and based upon such
documents, information and analyses as it has deemed appropriate, made its own credit analysis of
each Obligor and its own decision to enter into this Loan Agreement and to fund Loans and
participate in LC Obligations hereunder. Each Lender has made such inquiries concerning the Loan
Documents, the Collateral and each Obligor as such Lender feels necessary. Each Lender further
acknowledges and agrees that the other Lenders and Agent have made no representations or warranties
concerning any Obligor, any Collateral or the legality, validity, sufficiency or enforceability of
any Loan Documents or Obligations. Each Lender will, independently and without reliance upon the
other Lenders or Agent, and based upon such financial statements, documents and information as it
deems appropriate at the time, continue to make and rely upon its own credit decisions in making
Loans and participating in LC Obligations, and in taking or refraining from any action under any
Loan Documents. Except for notices, reports and other information expressly requested by a Lender,
Agent shall have no duty or responsibility to provide any Lender with any notices, reports or
certificates furnished to Agent by any Obligor or any credit or other information concerning the
affairs, financial condition, business or Properties of any Obligor (or any of its Affiliates)
which may come into possession of Agent or any of Agent’s Affiliates.

12.10. Replacement of Certain Lenders. In the event that (a) any Lender is a
Defaulting Lender, (b) a Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.8 or 5.9, or (c) any
Lender fails to give its consent to any amendment, waiver or action for which consent of all
Lenders or all affected Lenders was required and Required Lenders have consented thereto, then, in
addition to any other rights and remedies that any Person may have, the Borrower Agent may, at its
sole expense and effort, upon notice to such Lender and the Agent, require such Lender to assign
and delegate, without recourse (in accordance with and subject to the restrictions contained in,
and consents required by, Section 13.2), all of its interests, rights and obligations under this
Loan Agreement and the related Loan Documents to an Eligible Assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided
that:

(a) the Borrowers shall have paid to the Agent any applicable assignment fee specified
in Section 13.2 (unless such fee has been waived by Agent);

(b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, participations purchased in Letters of Credit, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 3.9) 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 3.6 or payments required to be made pursuant to Section 5.8 or 5.9, such assignment
will result in a reduction in such compensation or payments thereafter; and

(d) such assignment does not conflict with applicable laws.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to
require such assignment and delegation cease to apply.

 

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12.11. Remittance of Payments and Collections.

12.11.1. Remittances Generally. All payments by any Lender to Agent shall be made by
the time and on the day set forth in this Loan Agreement, in immediately available funds. If no
time for payment is specified or if payment is due on demand by Agent and request for payment is
made by Agent by 12:00 noon on a Business Day, payment shall be made by Lender not later than 2:00
p.m. on such day, and if request is made after 12:00 noon, then payment shall be made by 11:00 a.m.
on the next Business Day. Payment by Agent to any Lender shall be made by wire transfer, in the
type of funds received by Agent. Any such payment shall be subject to Agent’s right of offset for
any amounts due from such Lender under the Loan Documents.

12.11.2. Failure to Pay. If any Lender fails to pay any amount when due by it to
Agent pursuant to the terms hereof, such amount shall bear interest from the due date until paid at
the rate determined by Agent as customary in the banking industry for interbank compensation. In
no event shall Borrowers be entitled to receive credit for any interest paid by a Lender to Agent.

12.11.3. Recovery of Payments. If Agent pays any amount to a Lender in the
expectation that a related payment will be received by Agent from an Obligor and such related
payment is not received, then Agent may recover such amount from each Lender that received it. If
Agent determines at any time that an amount received under any Loan Document must be returned to an
Obligor or paid to any other Person pursuant to Applicable Law or otherwise, then, notwithstanding
any other term of any Loan Document, Agent shall not be required to distribute such amount to any
Lender. If any amounts received and applied by Agent to any Obligations are later required to be
returned by Agent pursuant to Applicable Law, Lenders shall pay to Agent, on demand, such Lender’s
Pro Rata share of the amounts required to be returned.

12.12. Agent in its Individual Capacity. As a Lender, Bank of America shall have the
same rights and remedies under the other Loan Documents as any other Lender, and the terms
“Lenders,” and “Required Lenders” or any similar term shall include Bank of America in its capacity
as a Lender. Each of Bank of America and its Affiliates may accept deposits from, maintain
deposits or credit balances for, invest in, lend money to, provide Bank Products to, act as trustee
under indentures of, serve as financial or other advisor to, and generally engage in any kind of
business with, Obligors and their Affiliates, as if Bank of America were any other bank, without
any duty to account therefor (including any fees or other consideration received in connection
therewith) to the other Lenders. In their individual capacity, Bank of America and its Affiliates
may receive information regarding Obligors, their Affiliates and their Account Debtors (including
information subject to confidentiality obligations), and each Lender agrees that Bank of America
and its Affiliates shall be under no obligation to provide such information to Lenders, if acquired
in such individual capacity and not as Agent hereunder.

12.13. Agent Titles. Each Lender, other than Bank of America, that is designated (on
the cover page of this Loan Agreement or otherwise) by Bank of America as an “Agent”,
“Co-Syndication Agent”, “Co-Documentation Agent” or “Arranger” of any type shall not have any
right, power, responsibility or duty under any Loan Documents other than those applicable to all
Lenders (or, with respect to the Co-Collateral Agents, the rights set forth in the Co-Collateral
Agent Letter Agreement), and shall in no event be deemed to have any fiduciary relationship with
any other Lender.

12.14. No Third Party Beneficiaries. This Section 12 is an agreement solely among
Lenders and Agent, and does not confer any rights or benefits upon Obligors or any other Person.
As between Obligors and Agent, any action that Agent may take under any Loan Documents shall be
conclusively presumed to have been authorized and directed by Lenders as herein provided.

 

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12.15. Junior Debt Intercreditor Agreements. The Lenders hereby irrevocably authorize
the Agent to enter into any intercreditor agreements or acknowledgements thereto relating to any
Junior Debt, and agree to be bound by the provisions thereof.

12.16. Mortgage Intercreditor Agreement. The Lenders hereby irrevocably authorize the
Agent to enter into the Mortgage Intercreditor Agreement, and agree to be bound by the provisions
of the Mortgage Intercreditor Agreement.

12.17. Post-Closing Agreement. The Lenders hereby irrevocably authorize the Agent to
enter into the Post-Closing Agreement, and agree to and acknowledge the terms and provisions
thereof.

SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS

13.1. Successors and Assigns. The provisions of this Loan Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no Obligor may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of Section 13.2, (ii) by way of participation in
accordance with the provisions of Section 13.3 or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of Sections 13.2.3 and 13.2.4 (and any other
attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Loan
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of Agent, the Issuing Bank and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Loan Agreement.

13.2. Assignments.

13.2.1. Assignments by Lenders. Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this Loan Agreement
(including all or a portion of its Commitment and the Loans (including for purposes of this Section
13.2.1, participations in LC Obligations and in Swingline Loans) at the time owing to it); provided
that:

(i) except in the case of an assignment of the entire remaining amount of the assigning
Lender’s (a) Tranche A Revolver Commitment and Tranche A Revolver 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, the aggregate amount of the Tranche A Revolver Commitment
(which for this purpose includes Tranche A Revolver Loans outstanding thereunder) or, if the
Tranche A Revolver Commitment is not then in effect, the principal outstanding balance of
the Tranche A Revolver Loans of the assigning Tranche A Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $10,000,000 unless each of the
Agent and, so long as no Event of Default has occurred and is continuing, the Borrower Agent
otherwise consents (each such consent not to be unreasonably withheld or delayed) and (b)
Tranche A-1 Revolver Commitment and Tranche A-1 Revolver 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, the aggregate amount of the Tranche A-1 Revolver Commitment (which for
this purpose includes Tranche A-1 Revolver Loans outstanding thereunder) or, if the Tranche
A-1 Revolver Commitment is not then in effect, the principal outstanding balance of the
Tranche A-1 Revolver Loans of the assigning Tranche A-1 Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to

 

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Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall
not be less than (x) with respect to each Tranche A-1 Lender party to this Loan Agreement as
of the Closing Date, $1,000,000 and (y) with respect to all other Tranche A-1 Lenders,
$5,000,000, unless each of the Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower Agent 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 applicable
minimum amount has been met under this Section 13.2.1(i);

(ii) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Loan Agreement with respect to
the Loans or the Commitment assigned, except that this clause (ii) shall not apply to rights
in respect of Swingline Loans;

(iii) any assignment of a Commitment must be approved by Agent, the Issuing Bank and
the provider of Swingline Loans (with each such approval not to be unreasonably withheld or
delayed) unless the Person that is the proposed assignee is itself a Lender (whether or not
the proposed assignee would otherwise qualify as an Eligible Assignee); and

(iv) the parties to each assignment shall execute and deliver to Agent an Assignment
and Assumption and a processing and recordation fee of $5,000.

Subject to acceptance and recording thereof by Agent pursuant to Section 13.2, from and after
the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder
shall be a party to this Loan Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Loan Agreement;
provided, that no such Eligible Assignee (including an Eligible Assignee that is already a Lender
hereunder at the time of the assignment) shall be entitled to receive any greater amount pursuant
to Section 5.8 or 5.9 than that to which the assignor would have been entitled to receive had no
such assignment occurred. The assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations under this Loan
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Loan Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Sections 3.4, 3.6, 3.7, 3.9, 5.8, 5.9 and 14.2
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, the Borrowers (at the Borrowers’ expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Loan
Agreement that does not comply with this subsection shall be treated for purposes of this Loan
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with Section 13.3.

13.2.2. Register. Agent, acting solely for this purpose as an agent of the Borrowers,
shall maintain at Agent’s office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts of the Loans and LC Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and
the Borrowers, Agent and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Loan Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by each of
the Borrowers and the Issuing Bank at any reasonable time and from time to time upon reasonable
prior notice. In addition, at any time that a request for a consent for a material or substantive
change to the Loan Documents is pending, any Lender may request and receive from Agent a copy of
the Register.

 

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13.2.3. Certain Pledges. Nothing herein shall limit the right of a Lender to pledge
or assign any rights under the Loan Documents to (i) any Federal Reserve Bank or the United States
Treasury as collateral security pursuant to Regulation A of the Board of Governors and any
Operating Circular issued by such Federal Reserve Bank, or (ii) counterparties to swap agreements
relating to any Loans; provided that any payment by Borrowers to the assigning Lender in respect of
any Obligations assigned as described in this sentence shall satisfy Borrowers’ obligations
hereunder to the extent of such payment, and no such assignment shall release the assigning Lender
from its obligations hereunder.

13.2.4. Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

13.3. Participations

13.3.1. Participations. Any Lender may at any time, without the consent of, or notice
to, the Borrowers or Agent, sell participations to any Person (other than a natural person or any
Obligor or any Affiliate or Subsidiary of any Obligor) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Loan Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender’s participations in LC
Obligations and/or Swingline Loans) owing to it); provided that (i) such Lender’s obligations under
this Loan Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the Borrowers, Agent, the
Lenders and the Issuing Bank shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Loan Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Loan Agreement and to approve any amendment,
modification or waiver of any provision of this Loan Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described Section 14.1.1 that
affects such Participant. Subject to Section 13.3.2, the Obligors agree that each Participant
shall be entitled to the benefits of Sections 3.6, 3.9, 5.8 and 5.9 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to Section 13.2. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 11.4 as though
it were a Lender, provided such Participant agrees to be subject to Section 5.5 as though it were a
Lender.

13.3.2. Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.6, 5.8 or 5.9 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrowers’ prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 5.9 unless the Borrowers are notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section
5.9 as though it were a Lender.

13.4. Tax Treatment. If any interest in a Loan Document is transferred to a
Transferee that is organized under the laws of any jurisdiction other than the United States or any
state or district thereof, the transferor Lender shall cause such Transferee, concurrently with the
effectiveness of such transfer, to comply with the provisions of Section 5.9.

 

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13.5. Representation of Lenders. Each Lender represents and warrants to each
Borrower, Agent and other Lenders that none of the consideration used by it to fund its Loans or to
participate in any other transactions under this Loan Agreement constitutes for any purpose of
ERISA or Section 4975 of the Internal Revenue Code assets of any “plan” as defined in Section 3(3)
of ERISA or Section 4975 of the Internal Revenue Code and the interests of such Lender in and under
the Loan Documents shall not constitute plan assets under ERISA.

SECTION 14. MISCELLANEOUS

14.1. Consents, Amendments and Waivers.

14.1.1. Amendment. No modification of any Loan Document, including any extension or
amendment of a Loan Document or any waiver of a Default or Event of Default, shall be effective
without the prior written agreement of Agent, the Required Lenders (or the Agent acting at the
direction of the Required Lenders) and each Obligor party to such Loan Document; provided
that:

(a) without the prior written consent of (i) Agent, no modification shall be effective with
respect to any provision in a Loan Document that relates to any rights, duties or discretion of
Agent and (ii) an affected Co-Collateral Agent, no modification shall be effective with respect to
any provision in a Loan Document that relates to any rights, duties or discretion of such
Co-Collateral Agent;

(b) without the prior written consent of Issuing Bank, no modification shall be effective with
respect to any LC Obligations or Section 2.3;

(c) without the prior written consent of each affected Lender, no modification shall be
effective that would (i) increase the Commitment of such Lender; (ii) reduce the amount of, or
waive or delay any scheduled payment of, any principal, interest, fees or other amounts payable to
such Lender or (iii) extend the Termination Date;

(d) without the prior written consent of the Supermajority Lenders, no modification shall be
effective that would (i) amend the definitions of Tranche A Borrowing Base or Tranche A-1 Borrowing
Base (or the defined terms used, directly or indirectly, in such definitions), in each case, in a
manner that would result in more credit being made available or (ii) amend the definition of
Supermajority Lenders; and

(e) without the prior written consent of all Lenders (except a Defaulting Lender as provided
in Section 4.2), no modification shall be effective that would (i) alter Section 2.1.5, Section
5.5, Section 7.1 (except to add Collateral), or Section 14.1.1; (ii) amend the definitions of Pro
Rata or Required Lenders; (iii) release, or subordinate the Lien of the Agent on, all or
substantially all of the Collateral (excluding, if any Obligor or any Subsidiary of any Obligor
becomes a debtor under the federal Bankruptcy code, the consent to the use of “cash collateral”, as
defined in Section 363(a) of the federal Bankruptcy Code pursuant to a cash collateral stipulation
with the debtor approved by Required Lenders); (iv) except in connection with a transaction
permitted by Section 10.2.9, release all or substantially all of the Obligors from liability under
the Guaranty or (v) increase any advance rate.

14.1.2. Limitations. The agreement of Borrowers shall not be necessary to the
effectiveness of any modification of a Loan Document that deals solely with the rights and duties
of Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to the
Fee Letter or any agreement relating to a Bank Product shall be required for any modification of
such agreement, and no Affiliate of a Lender that is party to a Bank Product agreement shall have
any other right to consent to or participate in any manner in modification of any other Loan
Document. The making of any Loans during the existence of a Default or Event of Default shall not
be deemed to constitute a waiver of such Default or Event of Default, nor to establish a course of
dealing. Any waiver or consent
granted by Lenders hereunder shall be effective only if in writing, and then only in the
specific instance and for the specific purpose for which it is given.

 

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14.1.3. Payment for Consents. No Borrower will, directly or indirectly, pay any
remuneration or other thing of value, whether by way of additional interest, fee or otherwise, to
any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender
with any modification of any Loan Documents, unless such remuneration or value is concurrently
paid, on the same terms, on a Pro Rata basis to all Lenders providing their consent (it being
understood and agreed that the payment of any amounts agreed among the Borrowers, MLPFS, the Agent
and any Lender or Increasing Lender participating in connection with an increase in the Tranche A
Revolver Commitments or the Tranche A Revolver Commitments under Section 2.4 shall not be subject
to this Section 14.1.3).

14.1.4. Generally. Notwithstanding anything to the contrary herein, (i) 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 and (ii) no Junior Lien Agent, Junior Lien Lender or Junior Lien Affiliate who is an
assignee of any rights and obligations under this Loan Agreement or a Participant shall have any
right to approve or disapprove any amendment, waiver or consent hereunder or shall be entitled to
vote on matters relating to the Loan Documents (including during any Insolvency Proceeding of any
Obligor) and shall not be deemed to be a “Lender” for any such purpose, except that the Commitment
of such Person may not be increased or extended without the consent of such Person.

14.2. Indemnity. EACH BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES
AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
PROCEEDINGS, COSTS AND EXPENSES OF ANY KIND (INCLUDING REMEDIAL RESPONSE COSTS, REASONABLE AND
DOCUMENTED ATTORNEYS’ FEES AND EXTRAORDINARY EXPENSES OF ONE OUTSIDE COUNSEL, ONE LOCAL COUNSEL IN
EACH RELEVANT JURISDICTION (AS DETERMINED BY THE AGENT IN ITS REASONABLE DISCRETION), ONE SPECIAL
OR REGULATORY COUNSEL IN RESPECT OF EACH MATTER (AS REASONABLY REQUIRED BY THE AGENT) AND CONFLICT
OF INTEREST COUNSEL (AS DETERMINED BY THE AGENT IN ITS REASONABLE DISCRETION)) AT ANY TIME
(INCLUDING AFTER FULL PAYMENT OF THE OBLIGATIONS, RESIGNATION OR REPLACEMENT OF AGENT, OR
REPLACEMENT OF ANY LENDER) INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE IN ANY WAY RELATING TO
(A) ANY LOAN DOCUMENTS OR TRANSACTIONS RELATING THERETO OR THE ADMINISTRATION OF THE LOAN
DOCUMENTS, (B) ANY ACTION TAKEN OR OMITTED TO BE TAKEN BY ANY INDEMNITEE IN CONNECTION WITH ANY
LOAN DOCUMENTS, (C) THE EXISTENCE OR PERFECTION OF ANY LIENS, OR REALIZATION UPON ANY COLLATERAL,
(D) EXERCISE OF ANY RIGHTS OR REMEDIES UNDER ANY LOAN DOCUMENTS OR APPLICABLE LAW, (E) FAILURE BY
ANY OBLIGOR TO PERFORM OR OBSERVE ANY TERMS OF ANY LOAN DOCUMENT, IN EACH CASE INCLUDING ALL
REASONABLE AND DOCUMENTED OUT-OF-POCKET COSTS AND EXPENSES RELATING TO ANY INVESTIGATION,
LITIGATION, ARBITRATION OR OTHER PROCEEDING (INCLUDING AN INSOLVENCY PROCEEDING OR APPELLATE
PROCEEDINGS), WHETHER OR NOT THE APPLICABLE INDEMNITEE IS A PARTY THERETO, (F) ANY LOAN OR LETTER
OF CREDIT OR THE USE OR PROPOSED USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY THE
ISSUING BANK 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), (G)
ANY ACTUAL OR ALLEGED ENVIRONMENTAL RELEASE ON OR FROM ANY PROPERTY OWNED OR OPERATED BY ANY
BORROWER OR ANY OF ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITIES

 

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IN CONNECTION WITH ANY ACTUAL OR ALLEGED VIOLATION OF OR ANY OBLIGATION UNDER ANY ENVIRONMENTAL
LAW RELATED IN ANY WAY TO ANY BORROWER OR ANY OF ITS SUBSIDIARIES, OR (H) 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 A BORROWER OR ANY OTHER
OBLIGOR (HEREINAFTER, “CLAIMS”) THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE,
INCLUDING CLAIMS ARISING FROM THE NEGLIGENCE OF AN INDEMNITEE. In no event shall any party to a
Loan Document have any obligation thereunder to indemnify or hold harmless an Indemnitee with
respect to a Claim that is determined in a final, non-appealable judgment by a court of competent
jurisdiction to result from the bad faith, gross negligence or willful misconduct of such
Indemnitee. If any claim is made against any Indemnitee which may result in a claim under this
Section 14.2 against Borrowers, such Indemnitee or Agent shall promptly send to Borrower Agent
written notice thereof, and Borrower Agent shall have the right, at its expense and with counsel
reasonably satisfactory to Agent, to defend such claim. Neither any Indemnitee nor any Borrower
shall settle any such claim without the consent of the other party, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, the failure of such prompt notice shall not
negate or impair the obligation of the Borrowers under this Section 14.2, but shall give Borrowers
the right to withhold against any indemnity payment the amount of any actual damages incurred by
Borrowers as a result of the failure to give such prompt notice.

14.3. Notices and Communications.

14.3.1. Notice Address. Subject to Section 4.1.4, all notices, requests and other
communications by or to a party hereto shall be in writing and shall be given to any Borrower, at
Borrower Agent’s address shown on the signature pages hereof, and to any other Person at its
address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after
the Closing Date, at the address shown on its Assignment and Assumption Agreement), or at such
other address as a party may hereafter specify by notice in accordance with this Section 14.3.
Each such notice, request or other communication shall be effective only (a) if given by facsimile
transmission, when transmitted to the applicable facsimile number, if confirmation of receipt is
received; (b) if given by mail, three Business Days after deposit in the U.S. mail, with
first-class postage pre-paid, addressed to the applicable address; or (c) if given by personal
delivery, when duly delivered to the notice address with receipt acknowledged. Notwithstanding the
foregoing, no notice to Agent pursuant to Section 2.2, 2.3, 3.1.2 or 4.1.1 shall be effective until
actually received by the individual to whose attention at Agent such notice is required to be sent.
Any written notice, request or other communication that is not sent in conformity with the
foregoing provisions shall nevertheless be effective on the date actually received by the noticed
party. Any notice received by Borrower Agent shall be deemed received by all Borrowers.

14.3.2. Electronic Communications; Voice Mail. Electronic mail and internet websites
may be used only for routine communications, such as financial statements, Borrowing Base
Certificates and other information required by Section 10.1.2, administrative matters, distribution
of Loan Documents for execution, and matters permitted under Section 4.1.4. Agent and Lenders make
no assurances as to the privacy and security of electronic communications. Electronic and voice
mail may not be used as effective notice under the Loan Documents.

14.3.3. Non-Conforming Communications. Agent and Lenders reasonably may rely upon any
notices purportedly given by or on behalf of any Borrower even if such notices were not made in a
manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as
understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and
hold harmless each Indemnitee from any liabilities, losses, costs and expenses arising from any
telephonic communication purportedly given by or on behalf of a Borrower.

 

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14.4. Performance of Borrowers’ Obligations. Agent may, in its discretion at any time
and from time to time after the occurrence, and during the continuance, of an Event of Default, at
Borrowers’ expense, pay any amount or do any act required of a Borrower under any Loan Documents or
otherwise lawfully requested by Agent to (a) enforce any Loan Documents or collect any Obligations;
(b) protect, insure, maintain or realize upon any Collateral; or (c) defend or maintain the
validity or priority of Agent’s Liens in any Collateral, including any payment of a judgment,
insurance premium, warehouse charge, finishing or processing charge, or landlord claim, or any
discharge of a Lien. All payments, costs and expenses (including Extraordinary Expenses) of Agent
under this Section 14.4 shall be reimbursed to Agent by Borrowers, on demand, with interest from
the date incurred to the date of payment thereof at the Default Rate applicable to Base Rate
Tranche A-1 Revolver Loans. Any payment made or action taken by Agent under this Section 14.4
shall be without prejudice to any right to assert an Event of Default or to exercise any other
rights or remedies under the Loan Documents.

14.5. Credit Inquiries. Each Obligor hereby authorizes Agent and Lenders (but they
shall have no obligation) to respond to usual and customary credit inquiries from third parties
concerning any Obligor or Subsidiary.

14.6. Severability. Wherever possible, each provision of the Loan Documents shall be
interpreted in such manner as to be valid under Applicable Law. If any provision is found to be
invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the
remaining provisions of the Loan Documents shall remain in full force and effect.

14.7. Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents are
cumulative. The parties acknowledge that the Loan Documents may use several different limitations,
tests or measurements to regulate the same or similar matters, and they agree that these are
cumulative and that each must be performed as provided. Except as otherwise specifically provided
in another Loan Document (by specific reference to the applicable provision of this Loan
Agreement), if any provision contained herein is in direct conflict with any provision in another
Loan Document, the provision herein shall govern and control.

14.8. Counterparts; Facsimile Signatures. Any Loan Document may be executed in
counterparts, each of which taken together shall constitute one instrument. Loan Documents may be
executed and delivered by facsimile or electronic transmission (including .pdf file), and they
shall have the same force and effect as manually signed originals. Agent may require confirmation
by a manually-signed original, but failure to request or deliver same shall not limit the
effectiveness of any facsimile or electronic transmission signature.

14.9. Entire Agreement. Time is of the essence of the Loan Documents. The Loan
Documents embody the entire understanding of the parties with respect to the subject matter thereof
and supersede all prior understandings regarding the same subject matter.

14.10. Obligations of Lenders. The obligations of each Lender hereunder are several,
and no Lender shall be responsible for the obligations or Commitments of any other Lender. Amounts
payable hereunder to each Lender shall be a separate and independent debt, and each Lender shall be
entitled, to the extent not otherwise restricted hereunder, to protect and enforce its rights
arising out of the Loan Documents. It shall not be necessary for Agent or any other Lender to be
joined as an additional party in any proceeding for such purposes. Nothing in this Loan Agreement
and no action of Agent or Lenders pursuant to the Loan Documents shall be deemed to constitute
Agent and Lenders to be a partnership, association, joint venture or any other kind of entity, nor
to constitute control of any Obligor. Each Obligor acknowledges and agrees that in connection with
all aspects of any transaction contemplated by the Loan Documents, Obligors, Agent, Issuing Bank
and Lenders have an arms-length business relationship that creates no fiduciary duty on the part of
Agent, Issuing Bank or any Lender, and each Obligor, Agent, Issuing Bank and Lender expressly
disclaims any fiduciary relationship.

 

-112-

 

14.11. Confidentiality. During the term of this Loan Agreement and for 12 months
thereafter, Agent and Lenders agree to take reasonable precautions to maintain the confidentiality
of any information that Obligors deliver to Agent and Lenders and identify as confidential at the
time of delivery, except that Agent and any Lender may disclose such information (a) to their
respective officers, directors, employees, Affiliates and agents, including legal counsel, auditors
and other professional advisors; (b) to any party to the Loan Documents from time to time; (c)
pursuant to the order of any court or administrative agency; (d) upon the request of any
Governmental Authority exercising regulatory authority over Agent or such Lender; (e) which ceases
to be confidential, other than by an act or omission of Agent or any Lender, or which becomes
available to Agent or any Lender on a nonconfidential basis; (f) to the extent reasonably required
in connection with any litigation relating to any Loan Documents or transactions contemplated
thereby, or otherwise as required by Applicable Law; (g) to the extent reasonably required for the
exercise of any rights or remedies under the Loan Documents; (h) to any actual or proposed party to
a Bank Product or to any Transferee, as long as such Person agrees to be bound by the provisions of
this Section 14.11; (i) to the National Association of Insurance Commissioners or any similar
organization, or to any nationally recognized rating agency that requires access to information
about a Lender’s portfolio in connection with ratings issued with respect to such Lender; (j) to
any investor or potential investor in an Approved Fund that is a Lender or Transferee, but solely
for use by such investor to evaluate an investment in such Approved Fund, or to any manager,
servicer or other Person in connection with its administration of any such Approved Fund; or (k)
with the consent of Borrowers. Notwithstanding the foregoing, Agent and Lenders may issue and
disseminate to the public general information describing this credit facility, including the names
and addresses of Obligors and a general description of Obligors’ businesses, and may (so long as
the Borrower Agent has previously reviewed and approved the form of such advertisement or
promotional materials) use Obligors’ names in advertising and other promotional materials.

14.12. GOVERNING LAW. THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, UNLESS
OTHERWISE SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT
LIMITATION, NEW YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402 (BUT GIVING EFFECT TO
FEDERAL LAWS RELATING TO NATIONAL BANKS).

14.13. Consent to Forum.

14.13.1. Forum. EACH BORROWER HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF
ANY FEDERAL COURT SITTING IN OR WITH JURISDICTION OVER THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY
STATE COURT OF THE STATE OF NEW YORK SITTING IN THE COUNTY OF MANHATTAN, IN ANY PROCEEDING OR
DISPUTE RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY SUCH PROCEEDING SHALL BE
BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS
AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE
OR INCONVENIENT FORUM. Nothing herein shall limit the right of Agent or any Lender to bring
proceedings against any Obligor in any other court. Nothing in this Loan Agreement shall be deemed
to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction.

14.14. Waivers by Borrowers. To the fullest extent permitted by Applicable Law, each
Borrower waives (a) the right to trial by jury (which Agent and each Lender hereby also waives) in
any proceeding, claim or counterclaim of any kind relating in any way to any Loan Documents,
Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default,
non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial
paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time
held by Agent on which a Borrower may in

 

-113-

 

 any way be liable, and hereby ratifies anything Agent may
do in
 this regard; (c) notice prior to taking possession or control of any Collateral; (d) any bond
or security that might be required by a court prior to allowing Agent to exercise any rights or
remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim against
Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement
Action, Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance
hereof. Each Borrower acknowledges that the foregoing waivers are a material inducement to Agent
and Lenders entering into this Loan Agreement and that Agent and Lenders are relying upon the
foregoing in their dealings with Borrowers. Each Borrower has reviewed the foregoing waivers with
its legal counsel and has knowingly and voluntarily waived its jury trial and other rights
following consultation with legal counsel. In the event of litigation, this Loan Agreement may be
filed as a written consent to a trial by the court.

14.15. Patriot Act Notice. Agent and Lenders hereby notify Borrowers that pursuant to
the requirements of the Patriot Act, Agent and Lenders are required to obtain, verify and record
information that identifies each Borrower, including its legal name, address, tax ID number and
other information that will allow Agent and Lenders to identify it in accordance with the Patriot
Act. Agent and Lenders will also require information regarding each personal guarantor, if any,
and may require information regarding Borrowers’ management and owners, such as legal name,
address, social security number and date of birth.

14.16. Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by the Agent and
each Lender, regardless of any investigation made by the Agent or any Lender or on their behalf and
notwithstanding that the Agent or any Lender may have had notice or knowledge of any Default at the
time of any extension of credit hereunder, and shall continue in full force and effect as long as
any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of
Credit shall remain outstanding.

14.17. No Advisory or Fiduciary Responsibility. In connection with all aspects of
each transaction contemplated hereby (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document), each Borrower and each Guarantor acknowledges
and agrees that: (i) (A) the arranging and other services regarding this Loan Agreement provided by
the Agent and the Joint Lead Arrangers are arm’s-length commercial transactions between the
Borrowers and the Guarantors and their respective Affiliates, on the one hand, and the Agent and
the Joint Lead Arrangers, on the other hand, (B) each Borrower each Guarantor has consulted its own
legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C)
each Borrowers and each Guarantor is capable of evaluating, and understands and accepts, the terms,
risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)
(A) the Agent and the Joint Lead Arrangers each is and has been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is not, and will not
be acting as an advisor, agent or fiduciary for any Borrower, any Guarantor or any of their
respective Affiliates, or any other Person and (B) neither the Agent nor any Joint Lead Arranger
has any obligation to any Borrower, any Guarantor or any of their respective Affiliates with
respect to the transactions contemplated hereby except those obligations expressly set forth herein
and in the other Loan Documents; and (iii) the Joint Lead Arrangers and their respective Affiliates
may be engaged in a broad range of transactions that involve interests that differ from those of
the Borrowers, the Guarantors and their respective Affiliates, and neither the Agent nor any Joint
Lead Arranger has any obligation to disclose any of such interests to the Borrowers, the Guarantors
or any of their respective Affiliates. To the fullest extent permitted by law, each Borrower and
each Guarantor hereby waives and releases any claims that it may have against the Agent and the
Joint Lead Arrangers with respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby.

 

-114-

 

14.18. Resignation as Issuing Bank or Provider of Swingline Loans after Assignment.
Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns
all of its Tranche A Revolver Commitment and Tranche A Loans, Bank of America may, (i) upon 30
days’ notice to the Borrower and the Lenders, resign as Issuing Bank and/or (ii) upon 30 days’
notice to the Borrower, resign as provider of Swingline Loans. In the event of any such
resignation as Issuing Bank or provider of Swingline Loans, the Borrower Agent shall be entitled to
appoint from among the Lenders a successor Issuing Bank or provider of Swingline Loans;
provided, however, that no failure by the Borrower Agent to appoint any such
successor shall affect the resignation of Bank of America as Issuing Bank or provider of Swingline
Loans, as the case may be. If Bank of America resigns as Issuing Bank, it shall retain all the
rights, powers, privileges and duties of Issuing Bank hereunder with respect to all Letters of
Credit outstanding as of the effective date of its resignation as Issuing Bank and all LC
Obligations with respect thereto (including the right to require the Lenders to make Base Rate
Tranche A Revolver Loans or fund risk participations in unreimbursed drawings of Letters of Credit.
If Bank of America resigns as provider of Swingline Loans, it shall retain all the rights of
provider of Swingline Loans provided for hereunder with respect to Swingline Loans made by it and
outstanding as of the effective date of such resignation, including the right to require the
Lenders to make Base Rate Tranche A Revolver Loans or fund risk participations in outstanding
Swingline Loans. Upon the appointment of a successor Issuing Bank and/or provider of Swingline
Loans, (a) such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring Issuing Bank or provider of Swingline Loans, as the case may
be, and (b) the successor Issuing Bank shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank of America with
respect to such Letters of Credit.

14.19. Amendment and Restatement of Existing Loan Agreement. On the Closing Date,
this Loan Agreement shall amend, restate and supersede the Existing Credit Agreement in its
entirety, except as provided in this Section 14.19. On the Closing Date, the rights and
obligations of the parties evidenced by the Existing Credit Agreement shall be evidenced by this
Loan Agreement and the other Loan Documents and the grant of security interest in the Collateral by
the relevant Obligors under the Existing Credit Agreement and the other “Loan Documents” (as
defined in the Existing Credit Agreement) shall continue under but as amended by this Loan
Agreement and the other Loan Documents, and shall not in any event be terminated, extinguished or
annulled but shall hereafter be governed by this Loan Agreement and the other Loan Documents. All
references to the Existing Credit Agreement in any Loan Document or other document or instrument
delivered in connection therewith shall be deemed to refer to this Loan Agreement and the
provisions hereof. Without limiting the generality of the foregoing and to the extent necessary,
the existing lenders, the Lenders and the Agents reserve all of their rights under the Existing
Credit Agreement and the other “Loan Documents” (as defined in the Existing Credit Agreement) which
by their express terms survive the termination of the Existing Credit Agreement and each of the
Guarantors hereby obligates itself again in respect of all such present and future “Obligations”
(as defined in the Existing Credit Agreement). Nothing contained herein shall be construed as a
novation of the “Obligations” outstanding under and as defined in the Existing Credit Agreement,
which shall remain in full force and effect, except as modified hereby.

[Remainder of page intentionally left blank; signatures begin on following page]

 

-115-

 

IN WITNESS WHEREOF, this Loan Agreement has been executed and delivered as of the date set
forth above.

	 	 	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BON-TON DEPARTMENT STORES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ KEITH E. PLOWMAN	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Keith E. Plowman	 	 
	 	 	 	 	Title:   Executive Vice President and Chief
Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405
	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE ELDER-BEERMAN STORES CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ KEITH E. PLOWMAN	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Keith E. Plowman	 	 
	 	 	 	 	Title:   Executive Vice President and Chief
Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 

Signature Page to Loan and Security Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BON-TON STORES OF LANCASTER, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ H. TODD DISSINGER	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: H. Todd Dissinger	 	 
	 	 	 	 	Title:   Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CARSON PIRIE SCOTT II, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ H. TODD DISSINGER	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: H. Todd Dissinger	 	 
	 	 	 	 	Title:   Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 

Signature Page to Loan and Security Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BON-TON DISTRIBUTION, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ H. TODD DISSINGER	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: H. Todd Dissinger	 	 
	 	 	 	 	Title:   Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MCRIL, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ H. TODD DISSINGER	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: H. Todd Dissinger	 	 
	 	 	 	 	Title:   Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 

Signature Page to Loan and Security Agreement

 

 

 

The following Persons are signatories to this Loan Agreement in their capacity as Obligors and
not as Borrowers:

	 	 	 	 	 	 	 	 	 
	 	 	OTHER OBLIGORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BON-TON STORES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ H. TODD DISSINGER	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: H. Todd Dissinger	 	 
	 	 	 	 	Title:   Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BON-TON TRADE, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ KEITH E. PLOWMAN	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Keith E. Plowman	 	 
	 	 	 	 	Title:   Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 

Signature Page to Loan and Security Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BON-TON GIFTCO, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ KEITH E. PLOWMAN	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Keith E. Plowman	 	 
	 	 	 	 	Title:   President and Chief Financial Officer	 	 
	 
	 

	 	 	 	Address:
	 	PO Box 2821

York, PA 17405	 	 
	 

	 	 	 	Attn:
	 	General Counsel	 	 
	 

	 	 	 	Telecopy:
	 	717-751-3008	 	 

Signature Page to Loan and Security Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	AGENT AND LENDERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Agent and Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ ANDREW CERUSSI	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Andrew Cerussi	 	 
	 	 	 	 	Title:   Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	100 Federal Street

Boston, MA 02110	 	 
	 

	 	 	 	Attn:
	 	Andrew Cerussi	 	 
	 

	 	 	 	Telecopy:
	 	617-310-2686	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION,

as Co-Collateral Agent and a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ CHARLES CHIODO	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Charles Chiodo	 	 
	 	 	 	 	Title:   Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	General Electric Capital Corporation

777 Long Ridge Road, Building A

Stamford, CT 06927	 	 
	 	 	Attn:	 	Bon-Ton Stores Account Manager

Facsimile 203-585-2647	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	With copies to:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	General Electric Capital Corporation

201 Merritt Seven

Norwalk, CT 06851

Attn: Corporate Counsel	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	McGuireWoods LLP

1170 Peachtree Street, Site 2100

Atlanta, GA 30309-7649

Attn: Hilary P. Jordan

Facsimile: 404-443-5690	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CAPITAL ONE LEVERAGE FINANCE CORP.,

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ MICHAEL S. BURNS	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Michael S. Burns	 	 
	 	 	 	 	Title:   Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	275 Broadhollow Road

Melville, NY 11747	 	 
	 

	 	 	 	Attn:
	 	Michael S. Burns	 	 
	 

	 	 	 	Telecopy:
	 	1-800-986-0323	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CITZENS BANK OF PENNSYLVANIA,

as a Lender and Co-Documentation Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ DON CMAR	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Don Cmar	 	 
	 	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	525 Willam Penn Place MS 153-2775

Pittsburgh, PA 15219	 	 
	 

	 	 	 	Attn:
	 	Don Cmar	 	 
	 

	 	 	 	Telecopy:
	 	412-867-4744	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PNC BANK NATIONAL ASSOCIATION,

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ ROBERT T. ORZECHOWSKI	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Robert T. Orzechowski	 	 
	 	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	PNC Bank, National Association
1600 Market Street, 31st Floor

Philadelphia, PA 19103	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Attn:
	 	Robert T. Orzechowski	 	 
	 

	 	 	 	Telecopy:
	 	215-585-4771	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SUNTRUST BANK, as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ LYNN A. TRAPANESE	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Lynn A. Trapanese	 	 
	 	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	303 Peachtree St., 23rd Floor

Atlanta, GA 30308	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	TD BANK, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ JOHN A. SOCARRAZ	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: John A. Socarraz	 	 
	 	 	 	 	Title:   Senior Underwriter	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	U.S. BANK, NATIONAL ASSOCIATION,

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ JEFFREY D. PATTON	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Jeffrey D. Patton	 	 
	 	 	 	 	Title:   Assistant Vice President	 	 
	 
	 

	 	 	 	Address:
	 	One U.S. Bank Plaza, SL-MO-T5BC

St. Louis, MO 63101	 	 
	 

	 	 	 	Attn:
	 	Jeffrey D. Patton	 	 
	 

	 	 	 	Telecopy:
	 	314-418-8556	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO CAPITAL FINANCE, LLC,

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/S/ CONNIE LIU	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Connie Liu	 	 
	 	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	One Boston Place, Suite 1800
Boston, Massachusetts 02108	 	 
	 

	 	 	 	Attn:
	 	Cory Loftus	 	 
	 

	 	 	 	Telecopy:
	 	617-523-4029	 	 

 

 

 

EXHIBIT A

to

Second Amended and Restated Loan and Security Agreement

TRANCHE A REVOLVER NOTE

					
	 	 	 	 	 
	[                    ], 20_____	 	$                                        
	 	New York, New York

THE BON-TON DEPARTMENT STORES, INC., a Pennsylvania corporation (“Bon-Ton”), THE
ELDER-BEERMAN STORES CORP., an Ohio corporation (“Elder-Beerman”), CARSON PIRIE SCOTT II,
INC., a Mississippi corporation (“CPS II”), BON-TON DISTRIBUTION, INC., an Illinois
corporation (“Distribution”) and MCRIL, LLC, a Virginia limited liability company
(“McRIL”, and, together with Bon-Ton, Elder-Beerman, CPS II, Distribution and any other
person from time to time a borrower under the Loan Agreement (as defined below), collectively, the
“Borrowers”), for value received, hereby unconditionally promise to pay, on a joint and
several basis, to the order of                                          (“Lender”), in Dollars and
immediately available funds, the principal sum of                      DOLLARS ($                    ), or
such lesser amount as may be advanced by Lender as Tranche A Revolver Loans and owing to such
Lender as LC Obligations from time to time under the Loan Agreement referred to below, which sum
shall be due and payable in such amounts and on such dates as are set forth in the Loan Agreement
referred to below, together with all accrued and unpaid interest thereon. Terms are used herein as
defined in the Second Amended and Restated Loan and Security Agreement dated as of March 21, 2011,
as such agreement may be amended, modified, renewed or extended from time to time (the “Loan
Agreement”), among, the Borrowers, each of the other Obligors party thereto, the financial
institutions party thereto from time to time as lenders (collectively, “Lenders”), BANK OF
AMERICA, N.A., a national banking association, as agent for the Lenders (“Agent”) and the
other agents and arrangers from time to time party thereto. Capitalized terms not otherwise defined
herein shall have the same respective meanings given to such terms in the Loan Agreement.

Principal of and interest on this Tranche A Revolver Note from time to time outstanding shall
be due and payable in such amounts and on such dates as provided in the Loan Agreement. This
Tranche A Revolver Note is issued pursuant to and evidences Tranche A Revolver Loans and LC
Obligations under the Loan Agreement, to which reference is made for a statement of the rights and
obligations of Lender and the duties and obligations of Borrowers. The Loan Agreement contains
provisions for acceleration of the maturity of this Tranche A Revolver Note upon the happening of
certain stated events, and for the borrowing, prepayment and reborrowing of amounts upon specified
terms and conditions.

The holder of this Tranche A Revolver Note is hereby authorized by Borrowers to record on a
schedule annexed to this Tranche A Revolver Note (or on a supplemental schedule) the amounts owing
with respect to the Tranche A Revolver Loans and LC Obligations, and the payment thereof. Failure
to make any notation, however, shall not affect the rights of the holder of this Tranche A Revolver
Note or any obligations of Borrowers hereunder or under any other Loan Documents.

Time is of the essence of this Tranche A Revolver Note. Each Borrower and all endorsers,
sureties and guarantors of this Tranche A Revolver Note hereby severally waive demand, presentment
for payment, protest, notice of protest, notice of intention to accelerate the maturity of this
Tranche A Revolver Note, diligence in collecting, the bringing of any suit against any party, and
any notice of or defense on account of any extensions, renewals, partial payments, or changes in
any manner of or in this
Tranche A Revolver Note or in any of its terms, provisions and covenants, or any releases or
substitutions of any security, or any delay, indulgence or other act of any trustee or any holder
hereof, whether before or after maturity.

 

 

 

In no event whatsoever shall the amount paid or agreed to be paid to the holder of this
Tranche A Revolver Note for the use, forbearance or detention of money advanced hereunder exceed
the highest lawful rate permitted under Applicable Law. If any such excess amount is inadvertently
paid by Borrowers or inadvertently received by the holder of this Tranche A Revolver Note, such
excess shall be returned to Borrowers or credited as a payment of principal, in accordance with the
Loan Agreement. It is the intent hereof that Borrowers not pay or contract to pay, and that holder
of this Tranche A Revolver Note not receive or contract to receive, directly or indirectly in any
manner whatsoever, interest in excess of that which may be paid by Borrowers under Applicable Law.

[This Tranche A Revolver Note amends, restates, supersedes, and replaces in its entirety that
certain Tranche A Revolver Note dated as of December 4, 2009 given by, inter alia, the Borrowers in
favor of the Lender.]1

This Tranche A Revolver Note shall be governed by the laws of the State of New York,
including, without limitation, New York General Obligations Law Sections 5-1401 and 5-1402 (but
giving effect to federal laws relating to national banks).

[Remainder of this page intentionally left blank.]

 

	 	 	 
	1	 	Provision applicable with regard to Tranche A Revolver Notes
issued under the Amended and Restated Loan and Security Agreement, dated as of
December 4, 2009.

 

 

 

IN WITNESS WHEREOF, this Tranche A Revolver Note is executed as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	THE BON-TON DEPARTMENT STORES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE ELDER-BEERMAN STORES CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	CARSON PIRIE SCOTT II, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	BON-TON DISTRIBUTION, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	MCRIL, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	 	 
	 	 	 	 	Principal or	 	Outstanding	 	 
	 	 	 	 	Interest	 	Principal	 	 
	 	 	Amount of	 	Paid This	 	Balance	 	Notation
	Date	 	Loan Made	 	Date	 	This Date	 	Made By
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

 

 

EXHIBIT B

to

Second Amended and Restated Loan and Security Agreement

TRANCHE A-1 REVOLVER NOTE

					
	 	 	 	 	 
	[                    ] 20_____ 

	 	$                    
	 	New York, New York

THE BON-TON DEPARTMENT STORES, INC., a Pennsylvania corporation (“Bon-Ton”), THE
ELDER-BEERMAN STORES CORP., an Ohio corporation (“Elder-Beerman”), CARSON PIRIE SCOTT II,
INC., a Mississippi corporation (“CPS II”), BON-TON DISTRIBUTION, INC., an Illinois
corporation (“Distribution”) and MCRIL, LLC, a Virginia limited liability company
(“McRIL”, and, together with Bon-Ton, Elder-Beerman, CPS II, Distribution and any other
person from time to time a borrower under the Loan Agreement (as defined below), collectively, the
“Borrowers”), for value received, hereby unconditionally promise to pay, on a joint and
several basis, to the order of                      (“Lender”), in Dollars and
immediately available funds, the principal sum of                      DOLLARS ($                    ), or
such lesser amount as may be advanced by Lender as Tranche A-1 Revolver Loans from time to time
under the Loan Agreement referred to below, which sum shall be due and payable in such amounts and
on such dates as are set forth in the Loan Agreement referred to below, together with all accrued
and unpaid interest thereon. Terms are used herein as defined in the Second Amended and Restated
Loan and Security Agreement dated as of March 21, 2011, as such agreement may be amended, modified,
renewed or extended from time to time (the “Loan Agreement”), among the Borrowers, each of
the other Obligors party thereto, the financial institutions party thereto from time to time as
lenders (collectively, “Lenders”), BANK OF AMERICA, N.A., a national banking association,
as agent for the Lenders (“Agent”) and the other agents and arrangers from time to time
party thereto. Capitalized terms not otherwise defined herein shall have the same respective
meanings given to such terms in the Loan Agreement.

Principal of and interest on this Tranche A-1 Revolver Note from time to time outstanding
shall be due and payable in such amounts and on such dates as provided in the Loan Agreement. This
Tranche A-1 Revolver Note is issued pursuant to and evidences Tranche A-1 Revolver Loans under the
Loan Agreement, to which reference is made for a statement of the rights and obligations of Lender
and the duties and obligations of Borrowers. The Loan Agreement contains provisions for
acceleration of the maturity of this Tranche A-1 Revolver Note upon the happening of certain stated
events, and for the borrowing, prepayment and reborrowing of amounts upon specified terms and
conditions.

The holder of this Tranche A-1 Revolver Note is hereby authorized by Borrowers to record on a
schedule annexed to this Tranche A-1 Revolver Note (or on a supplemental schedule) the amounts
owing with respect to Tranche A-1 Revolver Loans and the payment thereof. Failure to make any
notation, however, shall not affect the rights of the holder of this Tranche A-1 Revolver Note or
any obligations of Borrowers hereunder or under any other Loan Documents.

Time is of the essence of this Tranche A-1 Revolver Note. Each Borrower and all endorsers,
sureties and guarantors of this Tranche A-1 Revolver Note hereby severally waive demand,
presentment for payment, protest, notice of protest, notice of intention to accelerate the maturity
of this Tranche A-1 Revolver Note, diligence in collecting, the bringing of any suit against any
party, and any notice of or defense on account of any extensions, renewals, partial payments, or
changes in any manner of or in this Tranche A-1 Revolver Note or in any of its terms, provisions
and covenants, or any releases or substitutions of any security, or any delay, indulgence or other
act of any trustee or any holder hereof,
whether before or after maturity.

 

 

 

In no event whatsoever shall the amount paid or agreed to be paid to the holder of this
Tranche A-1 Revolver Note for the use, forbearance or detention of money advanced hereunder exceed
the highest lawful rate permitted under Applicable Law. If any such excess amount is inadvertently
paid by Borrowers or inadvertently received by the holder of this Tranche A-1 Revolver Note, such
excess shall be returned to Borrowers or credited as a payment of principal, in accordance with the
Loan Agreement. It is the intent hereof that Borrowers not pay or contract to pay, and that holder
of this Tranche A-1 Revolver Note not receive or contract to receive, directly or indirectly in any
manner whatsoever, interest in excess of that which may be paid by Borrowers under Applicable Law.

[This Tranche A-1 Revolver Note amends, restates, supersedes, and replaces in its entirety
that certain Tranche A-1 Revolver Note in the principal amount of $[                    ] dated as of
December 4, 2009 made by the Borrowers and certain other parties
thereto in favor of the Lender.]2

This Tranche A-1 Revolver Note shall be governed by the laws of the State of New York,
including, without limitation, New York General Obligations Law Sections 5-1401 and 5-1402 (but
giving effect to federal laws relating to national banks).

[Remainder of this page intentionally left blank.]

 

	 	 	 
	2	 	Provision applicable with regard to Tranche A-1 Revolver Notes
issued under the Amended and Restated Loan and Security Agreement, dated as of
December 4, 2009.

 

 

 

IN WITNESS WHEREOF, this Tranche A-1 Revolver Note is executed as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	THE BON-TON DEPARTMENT STORES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE ELDER-BEERMAN STORES CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	CARSON PIRIE SCOTT II, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	BON-TON DISTRIBUTION, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	MCRIL, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	 	 
	 	 	 	 	Principal or	 	Outstanding	 	 
	 	 	 	 	Interest	 	Principal	 	 
	 	 	Amount of	 	Paid This	 	Balance	 	Notation
	Date	 	Loan Made	 	Date	 	This Date	 	Made By
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

17

 

EXHIBIT C

to

Second Amended and Restated Loan and Security Agreement

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below (the “Effective Date”) and is entered into by and between
[the][each]3 Assignor identified in item 1 below ([the][each, an] “Assignor”) and
[the][each]4 Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is
understood and agreed that the rights and obligations of [the
Assignors][the Assignees]5 hereunder
are several and not joint.]6 Capitalized terms used but not defined herein shall have the meanings
given to such terms in the Loan Agreement identified below (the “Loan Agreement”), receipt
of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions for
Assignment and Assumption set forth in Annex 1 attached hereto (the “Standard Terms and
Conditions”) are hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Loan Agreement, as of the Effective Date (i) all of [the
Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their
respective capacities as Lenders] under the Loan Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors]
under the respective facilities identified below (including, without limitation, the Letters of
Credit and the Swingline Loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of [the
Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as
Lenders)] against any Person, whether known or unknown, arising under or in connection with the
Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to
[the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as
[the][an] “Assigned Interest”). Each such sale and assignment is without recourse to
[the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by [the][any] Assignor.

1. Assignor[s]:                     

 

	 	 	 
	3	 	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.

	 
	4	 	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.

	 
	5	 	Select as appropriate.

	 
	6	 	Include bracketed language if there are either multiple Assignors
or multiple Assignees.

 

18

 

	 	 	 	 	 	 
	 

	 	 	 

	 	 
	 
	 	 	 	 	 
	2.

	Assignee[s]:	 	 	 	 
	 

	 	 	 

	 	 
	 
	 	 	 	 	 
	 

	 	 	 

	 	 
	 
	 	 	 	 	 
	 	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

	3.	 	Borrower(s): The Bon-Ton Department Stores, Inc., The Elder-Beerman Stores Corp., Carson
Pirie Scott II, Inc., Bon-Ton Distribution, Inc., McRIL, LLC and any other person from time to time
a borrower under the Loan Agreement

	4.	 	Administrative Agent: Bank of America, N.A., as the Agent under the Loan Agreement

	5.	 	Loan Agreement: Second Amended and Restated Loan and Security Agreement, dated as of
March 21, 2011, among the Borrowers, the other Obligors party thereto, the Lenders from time
to time party thereto, and Bank of America, N.A., as the Agent and the other parties thereto

	 
	6.	 	Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aggregate	 	 	Amount of	 	 	Percentage	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of	 	 	Commitment	 	 	Assigned of	 	 	 	 
	 	 	 	 	 	 	Facility	 	 	Commitment/Loans	 	 	/Loans	 	 	Commitment/	 	 	CUSIP	 
	Assignor[s]7	 	Assignee[s]8	 	 	Assigned9	 	 	for all Lenders10	 	 	Assigned	 	 	Loans11	 	 	Number	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 

[7.
Trade Date:                     ]12

Effective
Date:                     ,
20____ [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE
DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

ASSIGNOR

 

	 	 	 
	7	 	List each Assignor, as appropriate.

	 
	8	 	List each Assignee, as appropriate.

	 
	9	 	Fill in the appropriate terminology for the types of facilities
under the Loan Agreement that are being assigned under this Assignment (e.g.
“Tranche A Revolver Commitment”, “Tranche A-1 Revolver Commitment”, etc.).

	 
	10	 	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.

	 
	11	 	Set forth, to at least 9 decimals, as a percentage of the
Commitment/Loans of all Lenders thereunder.

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

 

19

 

	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Title:
	 	 

[Consented
to and]13 Accepted:

	 	 	 	 	 
	BANK OF AMERICA, N.A., as	 	 
	     Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	[Consen

	 	ted to:]14	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

	 	 	 
	13	 	To be added only if the consent of the Agent is required by the
terms of the Loan Agreement.

	 
	14	 	To be added only if the consent of the Borrower Agent and/or
other parties (e.g., Swingline Lender, Issuing Bank) is required by the terms
of the Loan Agreement.

 

20

 

EXHIBIT D

to

Second Amended and Restated Loan and Security Agreement

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                    ,

(the “Statement Date”)

			
	    To:	 	Bank of America, N.A., as Agent

Ladies and Gentlemen:

Reference is made to that certain Second Amended and Restated Loan and Security Agreement
dated as of March 21, 2011 (as amended, amended and restated, supplemented or otherwise modified
and in effect from time to time, the “Loan Agreement”), by and among The Bon-Ton Department
Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), The Elder-Beerman Stores Corp., an
Ohio corporation (“Elder-Beerman”), Carson Pirie Scott II, Inc., a Mississippi corporation
(“CPS II”), Bon-Ton Distribution, Inc., an Illinois corporation (“Distribution”)
and McRIL, LLC, a Virginia limited liability company (“McRIL”, and, together with Bon-Ton,
Elder-Beerman, CPS II, Distribution and any other person from time to time a borrower thereunder,
collectively, the “Borrowers”), each of the other Obligors party thereto, the financial
institutions party thereto from time to time as lenders (collectively, “Lenders”), Bank of
America, N.A., a national banking association, as agent for the Lenders (“Agent”) and the
other agents and arrangers from time to time party thereto. Capitalized terms used herein without
definition shall have the meaning assigned to such terms in the Loan Agreement

The undersigned, in the undersigned’s capacity as a Senior Officer of the Borrower Agent, and
not in the undersigned’s individual capacity hereby certifies as of the date hereof that he/she is
a Senior Officer of the Borrower Agent, and that, as such, he/she is authorized to execute and
deliver this Certificate to the Agent on the behalf of the Borrowers, and that:

[Use following paragraph 1 for Fiscal Year-end financial statements]

1. Attached hereto are the year-end audited financial statements required by Section
10.1.2 of the Loan Agreement for the Fiscal Year of Parent ended as of the above date, together
with the report and opinion of an independent certified public accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

1. Attached hereto are the unaudited financial statements required by Section 10.1.2
of the Loan Agreement for the fiscal quarter of the Parent ended as of the above date. Such
financial statements fairly present the financial condition and results of operations of the
Obligors and their Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end adjustments and the absence of footnotes.

 

21

 

2. A review of the activities of the Obligors during such fiscal period has been made under
the supervision of the undersigned with a view to determining whether during such fiscal period the
Obligors performed and observed all of their Obligations under the Loan Documents, and

[select one:]

[to the knowledge of the undersigned during such fiscal period, no Default or Event of Default
has occurred and is continuing.]

—or—

[the following covenants or conditions have not been performed or observed and the following
is a list of each such Default or Event of Default and its nature and status:]

3. Attached as Annex A is the Borrowers’ determination of the applicable Level for the
Applicable Margin and Unused Line Fee Rate (determined in accordance with the Loan Agreement).

[Signatures appear on following page.]

 

22

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate in his or her capacity as a
Senior Officer of the Borrower Agent as
of                    ,
                    .

	 	 	 	 	 
	 	 	BORROWER AGENT:
	 
	 	 	 	 
	 	 	THE BON-TON DEPARTMENT STORES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Title:	 	 
	 

	 	Address:	 	 
	 
	 	 	 	 
	 

	 	 	 	Attn:
	 

	 	 	 	Telecopy:

ANNEX A

 

 

 

EXHIBIT E

to

Second Amended and Restated Loan and Security Agreement

Form of Credit Card Notification

CREDIT CARD NOTIFICATION

PREPARE ON BORROWER LETTERHEAD — ONE FOR EACH PROCESSOR

[                     __, 20__]

	 	 	 	 	 
	To:	 	[Name and Address of Credit Card Processor]
	 	 	(the “Processor”)
	 
	 	 	 	 
	 

	 	Re:
	 	[Insert Obligor]
	 

	 	 	 	Merchant Account Number:                     

Dear Sir/Madam:

[Insert Obligor] a [                    ] organized and existing under the laws of [                    ], (the
“Company”), has entered into various financing agreements with Bank of America, N.A., a
national banking association, as agent (in such capacity herein, the “Agent”) for its own
benefit and the benefit of certain other financial institutions (collectively, “Lenders”),
which financing agreements include that certain Second Amended and Restated Loan and Security
Agreement dated as of March 21, 2011 (as amended, amended and restated, supplemented or otherwise
modified and in effect from time to time, the “Loan Agreement”), by and among The Bon-Ton
Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), The Elder-Beerman Stores
Corp., an Ohio corporation (“Elder-Beerman”), Carson Pirie Scott II, Inc., a Mississippi
corporation (“CPS II”), Bon-Ton Distribution, Inc., an Illinois corporation
(“Distribution”) and McRIL, LLC, a Virginia limited liability company (“McRIL”,
and, together with Bon-Ton, Elder-Beerman, CPS II, Distribution and any other person from time to
time a borrower thereunder, collectively, the “Borrowers”), each of other Obligors party
thereto, the Lenders, the Agent and the other agents and arrangers from time to time party thereto,
pursuant to which the Agent and the other Lenders have made, or may from time to time make,
revolving credit loans or furnish certain other financial accommodations to the Borrowers. [The
Company is one of the Borrowers under the Loan Agreement and the Company’s obligations on account
of such loans and financial accommodations are secured
by,]15 [As the Company and the
Borrowers are members of a group of related entities, the success of any one of which is dependent
in part on the success of the other members of such group, the Company has guaranteed the
obligations of the Borrowers under the Loan Agreement and has pledged its assets as security for
such guaranty, which such pledge
includes,]16 among other things, all credit card
charges submitted by the Company to the Processor for processing and the amounts which the
Processor owes to the Company on account thereof (the “Credit Card Proceeds”).

 

	 	 	 
	15	 	To be included if Company is a Borrower

	 
	16	 	To be included if Company is a Guarantor

 

 

 

Until the Processor receives written notification from the Agent that the interest of the
Agent and the other Lenders in the Credit Card Proceeds has been terminated, all amounts as may
become due from time to time from the Processor to the Company (including, without limitation,
Credit Card Proceeds, payments from any reserve account or the like, or other payments) shall
continue to be transferred only as follows:

By ACH, Depository Transfer Check, or Electronic Depository Transfer to:

	 	 	 	 	 
	 

	 	ABA Number: [                    ]
	 	 
	 

	 	Bank: [                    ]
	 	 
	 

	 	Account Name: [                    ]
	 	 
	 

	 	Account Number: [                    ]
	 	 
	 

	 	Reference: [                    ]
	 	 
	 
	 	 	 	 
	 

	 	or	 	 

As the Processor may be otherwise instructed from time to time in writing by an officer of the

Agent.

Upon the written request of the Agent, a copy of each periodic statement issued by the
Processor to the Company should be provided to the Agent at the following address (which address
may be changed upon seven (7) days written notice given to the Processor by the Agent):

	 	 	 
	 

	 	If to the Agent:
	 
	 	 
	 

	 	Bank of America, N.A.
	 

	 	[                    ]
	 

	 	[                    ]
	 

	 	Attention: [                    ]
	 

	 	Re: [Insert Obligor]

The Processor shall be fully protected in acting on any order or direction by the Agent
respecting the Credit Card Proceeds and other amounts without making any inquiry whatsoever as to
the Agent’s right or authority to give such order or direction or as to the application of any
payment made pursuant thereto, provided that the Processor’s actions do not constitute
gross negligence, bad faith or willful misconduct. Nothing contained herein is intended to, nor
shall it be deemed to, modify the rights and obligations of the Company or the Agent under the
terms of the loan arrangement and the loan documents executed in connection therewith between,
among others, the Company and the Agent.

 

 

 

This Credit Card Notification may be amended only by the written agreement of the Company and
the Agent and may be terminated solely by written notice signed by an officer of the Agent. The
Company shall not have any right to terminate this Credit Card Notification or, except as provided
in this Credit Card Notification, amend it, it being understood, however, that this Credit Card
Notification shall automatically terminate upon until the occurrence of payment in full, in cash of
all accrued and unpaid principal, interest and fees, and any other Obligations (as defined in the
Loan Agreement) then due and owing under the Loan Agreement, the payment of any appropriate
collateral deposits in connection with other Obligations (as defined in the Loan Agreement) (other
than contingent indemnification Obligations with respect to which no claim has been asserted in
writing) and the occurrence of the Commitment Termination Date (as defined in the Loan
Agreement).

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[INSERT OBLIGOR]	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Attn:	 	 
	 

	 	 	 	Telecopy:	 	 

			
	cc:	 	Bank of America, N.A., as Agent

 

 

 

Exhibit F

to

Second Amended and Restated Loan and Security Agreement

Form of SECOND AMENDED AND RESTATED GUARANTY

This SECOND AMENDED AND RESTATED GUARANTY (this “Guaranty”), dated as of                     ,
20_____, by the entities signatory hereto (collectively, the “Guarantors” and each a
“Guarantor”) in favor of (i) Bank of America, N.A., a national banking association, as
agent (hereinafter, in such capacity, “Agent”) for itself and the other financial
institutions (hereinafter, collectively, the “Lenders”) which from time to time are or may
become parties to that certain Second Amended and Restated Loan and Security Agreement dated as of
March 21, 2011 (as amended, amended and restated, supplemented or otherwise modified and in effect
from time to time, the “Loan Agreement”), by and among The Bon-Ton Department Stores, Inc.,
a Pennsylvania corporation (“Bon-Ton”), The Elder-Beerman Stores Corp., an Ohio corporation
(“Elder-Beerman”), Carson Pirie Scott II, Inc., a Mississippi corporation (“CPS
II”), Bon-Ton Distribution, Inc., an Illinois corporation (“Distribution”) and McRIL,
LLC, a Virginia limited liability company (“McRIL”, and, together with Bon-Ton,
Elder-Beerman, CPS II, Distribution and any other person from time to time a borrower thereunder,
collectively, the “Borrowers”), each of other Obligors party thereto, the Lenders, Agent,
and the other agents and arrangers from time to time party thereto, (ii) each of the Lenders and
(iii) each of the other Secured Parties (as defined in the Loan Agreement).

WHEREAS, pursuant to that certain Amended and Restated Loan and Security Agreement dated as of
December 4, 2009 (as amended, the “Existing Loan Agreement”), among the Borrowers, certain
of the Lenders, Agent and the other parties from time to time to party thereto, such Lenders made
loans and other extensions of credit to the Borrowers;

WHEREAS, pursuant to that certain Amended and Restated Guaranty dated as of December 4, 2009
(as amended, the “Existing Guaranty”), certain of the Guarantors (hereinafter, the
“Existing Guarantors”) guaranteed to Agent, for the benefit of the “Secured Parties” (as
defined in the Existing Loan Agreement), the payment and performance of all “Obligations” (as
defined in the Existing Loan Agreement);

WHEREAS, the parties thereto have agreed to amend and restate, in its entirety, the Existing
Loan Agreement pursuant to, and subject to the terms and conditions set forth in, the Loan
Agreement;

WHEREAS, the Borrowers and the Guarantors are members of a group of related entities, the
success of any one of which is dependent in part on the success of the other members of such group;

WHEREAS, each Guarantor expects to receive substantial direct and indirect benefits from the
extensions of credit to the Borrowers by the Lenders pursuant to the Loan Agreement (which benefits
are hereby acknowledged);

WHEREAS, it is a condition precedent to the Lenders making any loans or otherwise extending
credit to the Borrowers under the Loan Agreement that each Guarantor execute and deliver to Agent,
for the benefit of the Secured Parties, a guaranty substantially in the form hereof; and

 

 

 

WHEREAS, each Guarantor wishes to amend and restate the Existing Guaranty to, among other
things, (a) continue, confirm and ratify the Existing Guarantors’ guaranty to Agent set forth in
the Existing Guaranty, and (b) to guaranty the payment and performance of the Obligations (as
defined in the Loan Agreement) to Agent, the Lenders and the other Secured Parties as provided
herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and in order to induce the Lenders and Agent to make loans and otherwise
extend credit to the Borrowers, the Guarantors hereby agree with the Lenders, Agent and the other
Secured Parties as follows:

1. Definitions. The term “Obligations” and all other capitalized terms used
herein without definition shall have the respective meanings provided therefor in the Loan
Agreement.

2. Guaranty of Payment and Performance. Each of the Existing Guarantors hereby
ratifies, restates and confirms its guarantee of the “Obligations” (as defined in the Existing Loan
Agreement) made pursuant to the Existing Guaranty, and each Guarantor hereby jointly and severally
guarantees to Agent, for the benefit of the Secured Parties, the full and punctual payment when due
(whether at stated maturity, by required pre-payment, by acceleration or otherwise), as well as the
performance, of all of the Obligations including all such which would become due but for the
operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy Code and the
operation of §§502(b) and 506(b) of the Federal Bankruptcy Code. This Guaranty is an absolute,
unconditional and continuing guaranty of the full and punctual payment and performance of all of
the Obligations and not of their collectibility only and is in no way conditioned upon any
requirement that Agent or any other Secured Party first attempt to collect any of the Obligations
from any Borrower or any other Obligor or resort to any collateral security or other means of
obtaining payment. Payments by the Guarantors hereunder may be required by Agent on any number of
occasions. All payments by the Guarantors hereunder shall be made to Agent, in the manner and at
the place of payment specified therefor in the Loan Agreement, for the account of the Secured
Parties.

3. Guarantors’ Agreement to Pay Enforcement Costs, etc. Each Guarantor further
agrees, as the principal obligor and not as a guarantor only, to pay to Agent, on demand, all
reasonable and documented out-of-pocket costs, expenses or advances (including court costs and
legal expenses) incurred or expended by Agent or any other Secured Party which constitute a part of
the Obligations, this Guaranty and the enforcement thereof, together with interest on amounts
recoverable under this Section 3 from the time when such amounts become due until payment, whether
before or after judgment, at the rate of interest for overdue principal set forth in the Loan
Agreement, provided that if such interest exceeds the maximum amount permitted to be paid
under Applicable Law, then such interest shall be reduced to such maximum permitted amount.

4. Waivers by Guarantors; Lender’s Freedom to Act. Each Guarantor agrees that the
Obligations will be paid and performed strictly in accordance with their respective terms,
regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of Agent or any other Secured Party with respect thereto. Each
Guarantor waives promptness, diligence, presentment, demand, protest, notice of acceptance, notice
of any Obligations incurred and all other notices of any kind, all defenses which may be available
by virtue of any valuation, stay, moratorium law or other similar law now or hereafter in effect,
any right to require the marshalling of assets of any Obligor or any other entity or other person
primarily or secondarily liable with respect to any of the Obligations, and all suretyship defenses
generally. Without limiting the generality of the foregoing, each

 

 

 

Guarantor agrees to the
provisions of any instrument evidencing, securing or otherwise executed in connection with any Obligation and agrees that the obligations of
such Guarantor hereunder shall not be released or discharged, in whole or in part, or otherwise
affected by (i) the failure of Agent or any Secured Party to assert any claim or demand or to
enforce any right or remedy against any Obligor or any other entity or other person primarily or
secondarily liable with respect to any of the Obligations; (ii) any extensions, compromise,
refinancing, consolidation or renewals of any Obligation; (iii) any change in the time, place or
manner of payment of any of the Obligations or any rescissions, waivers, compromise, refinancing,
consolidation or other amendments or modifications of any of the terms or provisions of the Loan
Agreement, the Notes, the other Loan Documents or any other agreement evidencing, securing or
otherwise executed in connection with any of the Obligations; (iv) the addition, substitution or
release of any entity or other person primarily or secondarily liable for any Obligation; (v) the
adequacy of any rights which Agent or any other Secured Party may have against any collateral
security or other means of obtaining repayment of any of the Obligations; (vi) the impairment of
any collateral securing any of the Obligations, including without limitation the failure to perfect
or preserve any rights which Agent or any other Secured Party might have in such collateral
security or the substitution, exchange, surrender, release, loss or destruction of any such
collateral security; or (vii) any other act or omission which might in any manner or to any extent
vary the risk of such Guarantor or otherwise operate as a release or discharge of such Guarantor,
all of which may be done without notice to such Guarantor. To the fullest extent permitted by law,
each Guarantor hereby expressly waives any and all rights or defenses arising by reason of (A) any
“one action” or “anti-deficiency” law which would otherwise prevent Agent or any other Secured
Party from bringing any action, including any claim for a deficiency, or exercising any other right
or remedy (including any right of set-off), against such Guarantor before or after Agent’s or such
other Secured Party’s commencement or completion of any foreclosure action, whether judicially, by
exercise of power of sale or otherwise, or (B) any other law which in any other way would otherwise
require any election of remedies by Agent or any other Secured Party.

5. Unenforceability of Obligations Against Any Obligor. If for any reason any
Obligor has no legal existence or is under no legal obligation to discharge any of the Obligations,
or if any of the Obligations have become irrecoverable from any Obligor by reason of such Obligor’s
insolvency, bankruptcy or reorganization or by other operation of law or for any other reason, this
Guaranty shall nevertheless be binding on each Guarantor to the same extent as if such Guarantor at
all times had been the principal obligor on all such Obligations. In the event that acceleration
of the time for payment of any of the Obligations is stayed upon the insolvency, bankruptcy or
reorganization of any Obligor, or for any other reason, all such amounts otherwise subject to
acceleration under the terms of the Loan Agreement, the Notes, the other Loan Documents or any
other agreement evidencing, securing or otherwise executed in connection with any Obligation shall
be immediately due and payable by each Guarantor.

6. Subrogation; Subordination.

6.1. Waiver of Rights Against the Borrowers. Until the final payment and performance
in full of all of the Obligations (other than contingent indemnification Obligations with respect
to which no claim has been asserted in writing), no Guarantor shall exercise and each Guarantor
hereby waives any rights against each Obligor arising as a result of payment by such Guarantor
hereunder, by way of subrogation, reimbursement, restitution, contribution or otherwise, and will
not prove any claim in competition with Agent or any other Secured Party in respect of any payment
hereunder in any bankruptcy, insolvency or reorganization case or proceedings of any nature; no
Guarantor will claim any setoff, recoupment or counterclaim against any Obligor in respect of any
liability of such Guarantor to any Obligor; and each Guarantor waives any benefit of and any
right to participate in any collateral security which may be held by Agent or any other Secured
Party.

 

 

 

6.2. Subordination. The payment of any amounts due with respect to any indebtedness
of any Obligor for money borrowed or credit received now or hereafter owed to any Guarantor is
hereby subordinated to the prior payment in full of all of the Obligations (other than contingent
indemnification Obligations with respect to which no claim has been asserted in writing). Each
Guarantor agrees that, after the occurrence of, and during the continuance of, any Default or Event
of Default under the Loan Agreement no Guarantor will demand, sue for or otherwise attempt to
collect any such indebtedness of any Obligor to such Guarantor until all of the Obligations (other
than contingent indemnification Obligations with respect to which no claim has been asserted in
writing) shall have been paid in full. If, notwithstanding the foregoing sentence, any Guarantor
shall collect, enforce or receive any amounts in respect of such indebtedness while any Obligations
are still outstanding, such amounts shall be collected, enforced and received by such Guarantor as
trustee for the Secured Parties and be paid over to Agent, for the benefit of the Secured Parties,
on account of the Obligations without affecting in any manner the liability of such Guarantor under
the other provisions of this Guaranty.

6.3. Provisions Supplemental. The provisions of this Section 6 shall be supplemental
to and not in derogation of any rights and remedies of the Secured Parties under any separate
subordination agreement which Agent may at any time and from time to time enter into with any
Guarantor for the benefit of the Secured Parties.

7. Security; Setoff. Regardless of the adequacy of any collateral security or other
means of obtaining payment of any of the Obligations, each of the Agent and the other Secured
Parties is hereby authorized at any time during an Event of Default, without notice to the
Guarantors (any such notice being expressly waived by each Guarantor) and to the fullest extent
permitted by law, to set off and apply such deposits and other sums against the accrued and unpaid
obligations of each Guarantor under this Guaranty, whether or not the Agent or such other Secured
Party shall have made any demand under this Guaranty.

8. Further Assurances. Each Guarantor agrees that it will from time to time, at the
written request of Agent, do all such things and execute all such documents as Agent may consider
necessary to give full effect to this Guaranty and to perfect and preserve the rights and powers of
the Secured Parties hereunder. Each Guarantor acknowledges and confirms that such Guarantor itself
has established its own adequate means of obtaining from each Borrower on a continuing basis all
information desired by such Guarantor concerning the financial condition of such Borrower and that
such Guarantor will look to the Borrowers and not to Agent or any other Secured Party in order for
such Guarantor to keep adequately informed of changes in the Borrowers’ financial condition.

9. Termination; Reinstatement. This Guaranty shall remain in full force and effect
until the payment in full, in cash, of all accrued and unpaid principal, interest and fees, and any
other Obligations (other than contingent indemnification Obligations with respect to which no claim
has been asserted in writing), the payment of any appropriate collateral deposits in connection
with other Obligations and the occurrence of the Commitment Termination Date. This Guaranty shall
continue to be effective or be reinstated if at any time any payment made or value received with
respect to any Obligation is rescinded or must otherwise be returned by Agent or any other Secured
Party upon the insolvency, bankruptcy or reorganization of any Obligor, or otherwise, all as though
such payment had not been made or value received.

 

 

 

10. Amendment and Restatement. This Guaranty amends, restates, supersedes, and
replaces in its entirety the Existing Guaranty. Nothing contained herein shall be construed as a
novation of the obligations outstanding under the Existing Guaranty, which shall remain in full
force and effect, except as modified hereby. Nothing express or implied in this Guaranty shall be
construed as a release or discharge of the Guarantors under the Existing Guaranty.

11. Successors and Assigns. This Guaranty shall be binding upon each Guarantor, its
successors and assigns, and shall inure to the benefit of Agent and the other Secured Parties and
their respective successors, transferees and permitted assigns. Without limiting the generality of
the foregoing sentence, each Secured Party may, as and to the extent permitted in the Loan
Agreement, assign or otherwise transfer the Loan Agreement, the Notes, the other Loan Documents or
any other agreement or note held by it evidencing, securing or otherwise executed in connection
with the Obligations, or sell participations in any interest therein, to any other entity or other
person, and such other entity or other person shall thereupon become vested, to the extent set
forth in the agreement evidencing such assignment, transfer or participation, with all the rights
in respect thereof granted to such Secured Party herein, all in accordance with Section 13.2 of the
Loan Agreement. No Guarantor may assign any of its obligations hereunder.

12. Amendments and Waivers. No amendment or waiver of any provision of this
Guaranty nor consent to any departure by any Guarantor therefrom shall be effective unless the same
shall be in writing and signed by Agent with the consent of the Required Lenders and each Guarantor
party hereto. No failure on the part of Agent or any other Secured Party to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.

13. Notices. All notices, requests and other communications by or to a party hereto
shall be made in accordance with Section 14.3 of the Loan Agreement.

14. Governing Law; Consent to Forum. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS,
UNLESS OTHERWISE SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING,
WITHOUT LIMITATION, NEW YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402 (BUT GIVING EFFECT
TO FEDERAL LAWS RELATING TO NATIONAL BANKS). EACH GUARANTOR HEREBY CONSENTS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY FEDERAL COURT SITTING IN OR WITH JURISDICTION OVER THE SOUTHERN DISTRICT OF NEW
YORK AND OF ANY STATE COURT OF THE STATE OF NEW YORK SITTING IN THE COUNTY OF MANHATTAN, IN ANY
PROCEEDING OR DISPUTE RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY SUCH
PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH GUARANTOR IRREVOCABLY WAIVES ALL
CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER
JURISDICTION, VENUE OR INCONVENIENT FORUM. Nothing herein shall limit the right of Agent or any
other Secured Party to bring proceedings against any Obligor in any other court. Nothing in this
Agreement shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any
forum or jurisdiction.

 

 

 

15. Waiver of Jury Trial. To the fullest extent permitted by Applicable Law, each
Guarantor waives (a) the right to trial by jury (which Agent hereby also waives) in any proceeding,
claim or counterclaim of any kind relating in any way to this Guaranty; (b) presentment, demand,
protest, notice of presentment, default, non-payment, maturity, release,
compromise, settlement, extension or renewal of any commercial paper, accounts, contract rights,
documents, instruments, chattel paper and guaranties at any time held by Agent on which a Borrower
may in any way be liable, and hereby ratifies anything Agent may do in this regard; (c) notice
prior to taking possession or control of any Collateral; (d) any bond or security that might be
required by a court prior to allowing Agent to exercise any rights or remedies; (e) the benefit of
all valuation, appraisement and exemption laws; (f) any claim against Agent or any other Secured
Party, on any theory of liability, for special, indirect, consequential, exemplary or punitive
damages (as opposed to direct or actual damages) in any way relating to any Enforcement Action,
Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance hereof.
Each Guarantor acknowledges that the foregoing waivers are a material inducement to Agent and the
other Secured Parties entering into the Loan Agreement and this Guaranty and that Agent and the
other Secured Parties are relying upon the foregoing in their dealings with Borrowers and
Guarantors. Each Guarantor has reviewed the foregoing waivers with its legal counsel and has
knowingly and voluntarily waived its jury trial and other rights following consultation with legal
counsel. In the event of litigation, this Guaranty may be filed as a written consent to a trial by
the court.

16. Miscellaneous. This Guaranty constitutes the entire agreement of the Guarantors
with respect to the matters set forth herein. The rights and remedies herein provided are
cumulative and not exclusive of any remedies provided by law or any other agreement, and this
Guaranty shall be in addition to any other guaranty of or collateral security for any of the
Obligations. The invalidity or unenforceability of any one or more sections of this Guaranty shall
not affect the validity or enforceability of its remaining provisions. Captions are for the ease
of reference only and shall not affect the meaning of the relevant provisions. The meanings of all
defined terms used in this Guaranty shall be equally applicable to the singular and plural forms of
the terms defined. Delivery by telecopier or by electronic .pdf copy of an executed counterpart of
a signature page to this Guaranty shall be effective as delivery of an original executed
counterpart of this Guaranty.

17. Contribution. To the extent any Guarantor makes a payment hereunder in excess of
the aggregate amount of the benefit received by such Guarantor in respect of the extensions of
credit under the Loan Agreement (the “Benefit Amount”), then such Guarantor, after the
payment in full, in cash, of all of the Obligations, shall be entitled to recover from each other
guarantor of the Obligations such excess payment, pro rata, in accordance with the ratio of the
Benefit Amount received by each such other guarantor to the total Benefit Amount received by all
guarantors of the Obligations, and the right to such recovery shall be deemed to be an asset and
property of such Guarantor so funding; provided, that all such rights to recovery shall be
subordinated and junior in right of payment to the final and undefeasible payment in full in cash
of all of the Obligations (other than contingent indemnification Obligations with respect to which
no claim has been asserted in writing).

[Signatures appear on following page.]

 

 

 

IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	THE BON-TON STORES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	[                    ]
	 	 
	 

	 	 	 	 	 	[                    ]
	 	 
	 

	 	 	 	Attn:
	 	[                    ]
	 	 
	 

	 	 	 	Telecopy:
	 	[                    ]
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BON-TON TRADE, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	[                    ]
	 	 
	 

	 	 	 	 	 	[                    ]
	 	 
	 

	 	 	 	Attn:
	 	[                    ]
	 	 
	 

	 	 	 	Telecopy:
	 	[                    ]
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BON-TON GIFTCO, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	Address:
	 	[                    ]
	 	 
	 

	 	 	 	 	 	[                    ]
	 	 
	 

	 	 	 	Attn:
	 	[                    ]
	 	 
	 

	 	 	 	Telecopy:
	 	[                    ]
	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BON-TON STORES OF LANCASTER, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	Address:
	 	[                    ]
	 	 
	 

	 	 	 	 	 	[                    ]
	 	 
	 

	 	 	 	Attn:
	 	[                    ]
	 	 
	 

	 	 	 	Telecopy:
	 	[                    ]
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,	 	 
	 	 	as Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	[                    ]
	 	 
	 

	 	 	 	 	 	[                    ]
	 	 
	 

	 	 	 	Attn:
	 	[                    ]
	 	 
	 

	 	 	 	Telecopy:
	 	[                    ]
	 	 

 

 

 

EXHIBIT G

to

Second Amended and Restated Loan and Security Agreement

FORM OF AMENDED AND RESTATED CO-COLLATERAL RIGHTS AGREEMENT

Bank of America, N.A.,

as Agent

100 Federal Street

Boston, Massachusetts 02110

                    , 20   

Bank of America, N.A.

100 Federal Street

Boston, Massachusetts 02110

Attention: Andrew Cerussi

General Electric Capital Corporation

777 Long Ridge Road, Building A

Stamford, Connecticut 06927

Attention: Bon-Ton Stores Account Manager

Re: Amended and Restated Co-Collateral Agent Rights Agreement 

Ladies and Gentlemen:

Reference is hereby made to that certain Second Amended and Restated Loan and Security
Agreement dated as of March 21, 2011 (as amended, amended and restated, supplemented or otherwise
modified and in effect from time to time, the “Loan Agreement”), by and among The Bon-Ton
Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), The Elder-Beerman Stores
Corp., an Ohio corporation (“Elder-Beerman”), Carson Pirie Scott II, Inc., a Mississippi
corporation (“CPS II”), Bon-Ton Distribution, Inc., an Illinois corporation
(“Distribution”) and McRIL, LLC, a Virginia limited liability company (“McRIL”,
and, together with Bon-Ton, Elder-Beerman, CPS II, Distribution and any other person from time to
time a borrower thereunder, collectively, the “Borrowers”), each of the other Obligors
party thereto, the financial institutions party thereto from time to time as lenders (collectively,
“Lenders”), Bank of America, N.A. (“Bank of America”), a national banking
association, as agent for the Lenders (in such capacity, the “Agent”), Bank of America, and
General Electric Capital Corporation (“GE Capital”), acting as co-collateral agents (in
such capacity, the “Co-Collateral Agents”) and the other agents and arrangers from time to
time party thereto. Any capitalized term used herein and not defined shall have the meaning
assigned to it in the Loan Agreement.

Each of the Agent, the Co-Collateral Agents and the Obligors hereby acknowledge and agree
that:

(a) Each of the Co-Collateral Agents, shall have rights as expansive as the rights
afforded to the Agent under the Loan Agreement or any other Loan Document relating to (i)
(x) the definition in the Loan Agreement of the term “Excess Availability” and any component
of such definition, and (y) the definitions in the Loan Agreement of the terms “Tranche A
Borrowing Base”, “Tranche A-1 Borrowing Base” and any component of each such definition
(including, without limitation, reserves, advance rates and eligibility criteria), (ii)
reporting requirements and appraisals, examinations and collateral audits and environmental
reviews, and (iii) the establishment, determination, modification or release of any of the
reserves established pursuant to the definition in the Loan Agreement of the term
“Availability Reserve”;

 

 

 

(b) Any provision in the Loan Agreement or any other Loan Document relating to any of
the matters covered by clause (a) above or the validity, extent, perfection or priority of
the Liens granted to the Agent (collectively, “Collateral Issues”) which would
otherwise only need the consent or approval of or to be satisfactory or acceptable to the
Agent shall be deemed to require the consent or approval of or be satisfactory or acceptable
(as the case may be) to each of the Co-Collateral Agents;

(c) If any provision in the Loan Agreement or any other Loan Document relating to a
Collateral Issue allows the Agent to request or reasonably request (as the case may be) that
any action be taken or any documents or other information be provided by or on behalf of any
Obligor, the Agent shall make any such request or reasonable request (as applicable) that
any of the Co-Collateral Agents may request and shall provide such Co-Collateral Agent with
any such documents or information so requested after the receipt thereof by the Agent; and

(d) In the event that the Co-Collateral Agents, and the Agent cannot in good faith
agree on any issue relating to the Tranche A Borrowing Base, the Tranche A-1 Borrowing Base,
the Availability Reserve, Excess Availability, the Tranche A Borrowing Base eligibility
standards, the Tranche A-1 Borrowing Base eligibility standards, advance rates, borrowing
base reporting, appraisals or examinations or any other action or determination relating to
a Collateral Issue, the resolution of such issue shall be to either (x) require that the
most conservative credit judgment be implemented (that is, such credit judgment that would
result in the least amount of credit being available to the Borrowers under the Loan
Agreement) or (y) decline to permit the requested action;

provided, however, that notwithstanding anything in the Loan Documents (as amended
hereby) and the foregoing to the contrary, each of the Co-Collateral Agents hereby agrees with the
Agent that the Agent shall have sole and exclusive authority and responsibility under the Loan
Agreement and the other Loan Documents (without the consent or further approval of any
Co-Collateral Agent) (x) to make Protective Advances, in accordance with the terms and conditions
of the Loan Agreement and (y) to select, employ and retain all Agent Professionals. The Agent
agrees to provide each Co-Collateral Agent with drafts of Collateral appraisals and audit reports
promptly after the Agent’s receipt thereof (but the Agent shall not be liable for failing to do
so).

Notwithstanding anything to the contrary contained herein, in the Loan Agreement or in any other
Loan Document, each of Bank of America and GE Capital hereby agrees that it shall not assign any of
its rights, powers, duties and obligations as a Co-Collateral Agent hereunder to any Person (other
than an Affiliate of such Person designated by such Person from time to time in writing to the
Agent as a Co-Collateral Agent) without the prior written consent of the Agent.

This letter agreement (this “Agreement”) is the Co-Collateral Agent Rights Agreement
referred to in the Loan Agreement.

This Agreement shall be governed by, and shall be construed and enforced in accordance with, the
laws of the State of New York.

 

 

 

This Agreement may be executed in counterparts which, when taken together, shall constitute an
original. Delivery of an executed counterpart of this Agreement by facsimile or electronic
transmission shall be equally effective as delivery of a manually executed counterpart. This
Agreement may not be amended or modified without the written consent of the Agent, the Borrower
Agent and each affected Co-Collateral Agent.

	 	 	 	 	 
	 	

Very truly yours,

BANK OF AMERICA, N.A., as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	

ACCEPTED AND AGREED TO

AS OF THE DATE FIRST ABOVE WRITTEN:

BANK OF AMERICA, N.A.,

as a Co-Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	

GENERAL ELECTRIC CAPITAL 
CORPORATION,
as a Co-Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

 

 

 

	 	 	 	 	 
	ACCEPTED AND AGREED TO

AS OF THE DATE FIRST ABOVE WRITTEN:	 	 
	 
	 	 	 	 
	Borrowers:

THE BON-TON DEPARTMENT STORES, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	THE ELDER-BEERMAN STORES CORP.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	BON-TON DISTRIBUTION, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	MCRIL, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	CARSON PIRIE SCOTT II, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

 

	 	 	 	 	 
	Guarantors:

THE BON-TON STORES, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	THE BON-TON TRADE, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	THE BON-TON GIFTCO, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	THE BON-TON STORES OF LANCASTER, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

 

EXHIBIT H

to

Second Amended and Restated Loan and Security Agreement

FORM OF JOINDER AGREEMENT TO LOAN AGREEMENT

This
Joinder Agreement (this “Joinder”) to that certain Loan Agreement (as defined
herein) is made as of
                  , 20   , by and among:

                                                            , a  
                                                         (the “New Borrower”),
with its principal executive offices at                                                             ;

THE BON-TON DEPARTMENT STORES, INC., a Pennsylvania corporation, in its capacity as
Borrower Agent (as defined in the Loan Agreement); and

BANK OF AMERICA, N.A., a national banking association, having a place of business at
100 Federal Street, Boston, Massachusetts 02110, as administrative agent and as
co-collateral agent for its own benefit and the benefit of the other Secured Parties (as
defined in the Loan Agreement);

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H:

A. Reference is made to that certain Second Amended and Restated Loan Agreement dated as of
March 21, 2011 (as amended, modified, supplemented or restated and in effect from time to time, the
“Loan Agreement”), by and among The Bon-Ton Department Stores, Inc., a Pennsylvania
corporation (“Bon-Ton”), The Elder-Beerman Stores Corp., an Ohio corporation
(“Elder-Beerman”), Carson Pirie Scott II, Inc., a Mississippi corporation (“CPS
II”), Bon-Ton Distribution, Inc., an Illinois corporation (“Distribution”) and McRIL,
LLC, a Virginia limited liability company (“McRIL”, and, together with Bon-Ton,
Elder-Beerman, CPS II, Distribution and any other person from time to time a borrower thereunder
prior to the date hereof, collectively, the “Borrowers”), each of the other Obligors party
thereto, the financial institutions party thereto from time to time as lenders (collectively,
“Lenders”), Bank of America, N.A. (“Bank of America”), a national banking
association, as agent for the Lenders (in such capacity, the “Agent”), Bank of America, and
General Electric Capital Corporation (“GE Capital”), acting as co-collateral agents (in
such capacity, the “Co-Collateral Agents”) and the other agents and arrangers from time to
time party thereto. All capitalized terms used herein, and not otherwise defined herein, shall
have the meanings assigned to such terms in the Loan Agreement.

B. The New Borrower desires to become a party to, and bound by the terms of, the Loan
Agreement and the other Loan Documents in the same capacity and to the same extent as the Borrowers
thereunder.

C. Pursuant to the terms of the Loan Agreement, in order for the New Borrower to become party
to the Loan Agreement and the other Loan Documents as provided herein, the New Borrower and the
Borrower Agent are required to execute this Joinder.

 

 

 

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

Joinder and Assumption of Obligations. Effective as of the date of this Joinder, the New
Borrower hereby acknowledges that the New Borrower has received and reviewed a copy of the Loan
Agreement, and hereby:

joins in the execution of, and becomes a party to, the Loan Agreement as a Borrower, as indicated
by its signature below;

covenants and agrees to be bound by all covenants, agreements, liabilities and acknowledgments
(other than covenants, agreements, liabilities and acknowledgments which specifically relate solely
to an earlier date) of a Borrower under the Loan Agreement and the other Loan Documents, in each
case, with the same force and effect as if such New Borrower was a signatory to the Loan Agreement
and the other Loan Documents and was expressly named as a Borrower therein (including without
limitation, the joint and several liability under Section 5.10 of the Loan Agreement); and

assumes and agrees to perform all applicable duties and Obligations of a Borrower under the Loan
Agreement and the other Loan Documents.

Grant of Security Interest. To secure the prompt payment and performance of all Obligations,
each New Borrower grants to Agent, for the benefit of Secured Parties, a continuing security
interest in and Lien upon the personal and fixture property, assets and rights of such New Borrower
of every kind and nature, whether now owned or hereafter acquired or arising, and wherever located
to the extent provided by and in accordance with Section 7.1 of the Loan Agreement.

Representations and Warranties. The New Borrower hereby makes as of the date hereof all
representations, warranties and other statements (other than representations, warranties and
statements which specifically relate solely to an earlier date) of a Borrower under the Loan
Agreement and the other Loan Documents, in each case, with the same force and effect as if such New
Borrower was a signatory to the Loan Agreement and the other Loan Documents and was expressly named
as a Borrower therein.

Ratification of Loan Documents. All of the terms and conditions of the Loan Agreement and of
the other Loan Documents shall remain in full force and effect as in effect prior to the date
hereof, without releasing any Obligor thereunder or Collateral therefor.

Conditions Precedent to Effectiveness. This Joinder shall not be effective until each of the
following conditions precedent have been fulfilled to the satisfaction of the Agent:

This Joinder shall have been duly executed and delivered by the respective parties hereto.

 

 

 

All action on the part of the New Borrower and the other Obligors necessary for the valid
execution, delivery and performance by the New Borrower of this Joinder and all other
documentation, instruments, and agreements required to be executed in connection herewith shall
have been duly and effectively taken and evidence thereof reasonably satisfactory to the Agent
shall have been provided to the Agent.

The New Borrower shall each have delivered the following to the Agent, in form and substance
reasonably satisfactory to the Agent:

Certificate of legal existence and good standing of the New Borrower issued by the Secretary of
State of the State of its incorporation or organization.

A certificate of an authorized officer of the New Borrower in respect of the due adoption and
continued effectiveness of each corporate resolution adopted in connection with the assumption by
the New Borrower of obligations under the Loan Agreement and the other Loan Documents, setting
forth the text of each such resolution, and attesting to the true signatures of each Person
authorized as a signatory of the New Borrower to any of the Loan Documents, together with true and
accurate copies of all Charter Documents of the New Borrower.

Perfection Certificate of the New Borrower in the form delivered by the Obligors on the Closing
Date.

Execution and delivery by the New Borrower of the following Loan Documents:

Joinder to or acknowledgement of the Pledge Agreement, as applicable;

Joinder to each other Security Document, as applicable; and

Such other documents, agreements and certificates as the Agent may reasonably require in accordance
with the Loan Documents.

If requested by the Agent, the Agent shall have received a written legal opinion of the Obligors’
counsel addressed to the Agent and the other Lenders, covering such matters relating to the New
Borrower, the Loan Documents and/or the transactions contemplated thereby as the Agent shall
reasonably request, it being understood that such opinion shall be substantively similar to the
opinion of Obligors’ counsel delivered on the Closing Date pursuant to Section 6.1(g) of the Loan
Agreement.

The Agent shall have received all documents and instruments, (including UCC financing statements,
agreements providing for Agent’s control over Deposit Accounts and Credit Card Notifications),
required by law or reasonably requested by the Agent in accordance with the Loan Documents to
create or perfect the first priority Lien (subject only to Permitted Liens having priority by
operation of Applicable Law) intended to be created under the Loan Documents and all such documents
and instruments shall have been so filed, registered or recorded to the reasonable satisfaction of
the Agent.

All reasonable and documented out-of-pocket expenses incurred by the Agent in connection with the
preparation and negotiation of this Joinder and related documents (including the reasonable and
documented fees and out-of-pocket expenses of one legal counsel to the Agent) shall have been paid
in full by the Borrowers.

 

 

 

The Obligors shall have executed and delivered to the Agent such additional documents,
instruments, and agreements as the Agent may reasonably request.

Miscellaneous. 

This Joinder may be executed in several counterparts and by each party on a separate counterpart,
each of which when so executed and delivered shall be an original, and all of which together shall
constitute one instrument. Delivery by telecopier or by electronic .pdf copy of an executed
counterpart of a signature page to this Joinder shall be effective as delivery of an original
executed counterpart of this Joinder.

This Joinder expresses the entire understanding of the parties with respect to the transactions
contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect
the provisions hereof.

Any determination that any provision of this Joinder or any application hereof is invalid, illegal
or unenforceable in any respect and in any instance shall not effect the validity, legality, or
enforceability of such provision in any other instance, or the validity, legality or enforceability
of any other provisions of this Joinder.

THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK (WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION).

[SIGNATURE PAGES FOLLOW]

 

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly executed and
delivered by its proper and duly authorized officer as of the date set forth above.

	 	 	 	 	 
	 	NEW BORROWER:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AGENT:

BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	Acknowledged and Agreed:	 	 
	 
	 	 	 	 
	THE BON-TON DEPARTMENT STORES, INC.,
as Borrower Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 - 22 - 

 

Schedule 1.1(a)

Commitments of Lenders*

	 	 	 	 	 	 	 	 	 
	 	 	Tranche A Revolver	 	 	 
	 	 	Commitments	 	 	Tranche A-1 Revolver Commitments	 
	Total
	 	$	575,000,000	 	 	$	50,000,000	 

	 	 	 
	*	 	The name of each Lender and the allocation of Commitments have been provided to the Agent on the
Closing Date.

 

 - 23 - 

 

Schedule 1.1(b)

Restricted Investments Existing on the Closing Date

None.

 

 - 24 - 

 

Schedule 1.1(c)

Certain Existing Bank Products

Banking products consisting of leases extended to Parent or any Subsidiary by General Electric
Capital Corporation or any of its Affiliates and existing on the Closing Date in an aggregate Bank
Product Amount not to exceed $1,000,000.

 

 - 25 - 

 

Schedule 2.3.2

Existing Letters of Credit

See Annex 2.3.2 attached hereto for a list of letters of credit issued prior to the Closing Date.

 

 - 26 - 

 

Annex 2.3.2

See attached.

 

 - 27 - 

 

Schedule 7.1(c)

Commercial Tort Claims

Bostco LLC, et al v. MMSD, et al, Case No. 03-CV-005040 (filed August 2003 in Cir. Ct.,
Milwaukee Co., WI). The Bon-Ton Department Stores, Inc., successor by merger to Parisian,
Inc., is one of the plaintiffs in this claim for damages to a building in Milwaukee. The
Bon-Ton Department Stores, Inc. maintains a retail store and corporate offices in the
building.

The Bon-Ton Department Stores, Inc. v. Utilityaccounts.com, Inc., et al, Case No. 2010-11550
(filed November 2010 in Supreme Court of New York, County of Erie). The suit arises out of
the defendant’s failure to pay utility bills of the Company pursuant to a contract for such
services between the parties. The suit alleges breach of contract, unjust enrichment, breach
of fiduciary duty, aiding and abetting breach of fiduciary duty and conversion.

 

 - 28 - 

 

Schedule 7.2.1

Secondary Operating Deposit Accounts*

Deposit Accounts for which daily funds consolidation into the Borrower’s account is not required:

	 	 	 
	Bank Name	 	Account Name
	M & T Bank
	 	The Bon Ton Stores Inc
	PNC Bank
	 	The Bon Ton Dept Stores
	US Bank, N.A.
	 	The Bon-Ton Giftco Inc
	Wachovia Bank (1)
	 	The Bon Ton Trade, LLC

	 	 	 
	(1)	 	  Wells Fargo is in the process of integrating its acquisition of Wachovia Bank. This
account will be changed to a Wells Fargo Bank account by the end of April 2011. There will be no
change to the account number following the transition to the Wells Fargo platform.

	 
	*	 	Account numbers have been provided to the Agent on the Closing Date.

 

 - 29 - 

 

Schedule 7.3

Mortgaged Real Estate

	 	 	 	 	 	 	 	 	 
	Store	 	 	 	 	 	 
	Number	 	Nameplate	 	Store Name	 	Address
	4	 	Bon-Ton

	 	Lewistown
	 	111 East Market Street, Lewistown, PA 17044
	31	 	Bon-Ton

	 	Camp Hill
	 	3525 Gettysburg Road, Camp Hill, PA 17011
	36	 	Bon-Ton

	 	Greensburg
	 	Westmoreland Mall, 5256 Route 30, Greensburg, PA 15601
	40	 	Bon-Ton

	 	Frackville
	 	Schuylkill Mall, Frackville, PA 17931
	135	 	Elder-Beerman

	 	Middletown
	 	3459 Town Mall Boulevard, Franklin, OH 45005
	187/188	 	Elder-Beerman

	 	Salem Furniture Distribution Facility
	 	5370 Salem Avenue, Dayton, OH 45426
	327	 	Herberger’s

	 	Holiday Village — Great Falls
	 	1200 10th Avenue S, Great Falls, MT 59405
	501	 	Bergner’s

	 	Eastland Mall
	 	1601 Empire Street, Bloomington, IL 61701
	503	 	Bergner’s

	 	East Court Village
	 	3536 Court Street, Pekin, IL 61554
	508	 	Bergner’s

	 	Hickory Point Mall
	 	1005 Hickory Point Mall, Forsyth, IL 62535
	514	 	Carson Pirie Scott

	 	Northgate Shopping Center
	 	970 North Lake Street, Aurora, IL 60506
	549	 	Carson Pirie Scott

	 	Marquette Mall
	 	305 West US Highway 20, Michigan City, IN 46360
	572	 	Parisian

	 	Meadowbrook Village
	 	400 North Adams Road, Rochester Hills, MI 48309
	573	 	Parisian

	 	Partridge Creek
	 	17480 Hall Road, Clinton, MI 48038

 

- 30 -

 

Schedule 7.3 A

Mortgage Amendments

Set forth below is the Real Estate for which mortgage amendments are required:

	 	 	 	 	 	 	 	 	 
	Store	 	 	 	 	 	 
	Number	 	Nameplate	 	Store Name	 	Address
	135	 	Elder-Beerman

	 	Middletown
	 	3459 Town Mall Boulevard, Franklin, OH 45005
	187/188	 	Elder-Beerman

	 	Salem Furniture Distribution Facility
	 	5370 Salem Avenue, Dayton, OH 45426
	327	 	Herberger’s

	 	Holiday Village — Great Falls
	 	1200 10th Avenue S, Great Falls, MT 59405
	501	 	Bergner’s

	 	Eastland Mall
	 	1601 Empire Street, Bloomington, IL 61701
	503	 	Bergner’s

	 	East Court Village
	 	3536 Court Street, Pekin, IL 61554
	508	 	Bergner’s

	 	Hickory Point Mall
	 	1005 Hickory Point Mall, Forsyth, IL 62535
	514	 	Carson Pirie Scott

	 	Northgate Shopping Center
	 	970 North Lake Street, Aurora, IL 60506
	549	 	Carson Pirie Scott

	 	Marquette Mall
	 	305 West US Highway 20, Michigan City, IN 46360

 

- 31 -

 

Schedule 8.2.1

Existing Credit Card Arrangements

	1.	 	The Purchase and Sale Agreement between The Bon-Ton Stores, Inc. and HSBC Bank Nevada,
N.A., dated June 20, 2005, as amended.

	2.	 	The Credit Card Program Agreement between The Bon-Ton Stores, Inc. and HSBC Bank
Nevada, N.A., dated June 20, 2005, as amended on March 5, 2006, December 15, 2006, August
4, 2009, July 30, 2010, August 31, 2010 and January 31, 2011.

	3.	 	The Bank Card Merchant Agreement between The Bon-Ton Department Stores, Inc. and Fifth
Third Bank, dated May 13, 2004, as amended.

	4.	 	The Agreement for American Expressâ Card Acceptance between The Bon-Ton
Department Stores, Inc. and American Express Travel Related Services Company, Inc., dated
December 13, 2005, as amended.

	5.	 	The Merchant Services Agreement between The Bon-Ton Department Stores, Inc. and
Discover Financial Services LLC, dated March 3, 2006, as amended.

 

- 32 -

 

Schedule 8.5

Deposit Accounts*

	 	 	 
	 	 	Account Name
	Bank Name	 	(as it appears on bank statement)
	Ameriserv Financial

	 	The Bon Ton Department Stores Inc
	Bank of America, NA

	 	The Bon-Ton Department Stores,Inc
	Branch Banking & Trust Co.

	 	The Elder-Beerman Stores Corp Store 203 Account
	Branch Banking & Trust Co.

	 	The Elder-Beerman Stores Corp Store 206 Account
	Canandaigua National Bank & Trust

	 	The Bon-Ton Department Stores, Inc. #96 Eastview
	Central State Bank

	 	The Bon-Ton Department Stores Inc Younkers Store 173
	Chemical Bank

	 	General Electric Capital Corporation Re: The Elder-Beerman Stores Corp
	Chemung Canal Trust Company

	 	The Bon Ton Stores Inc 84 Elmira
	Chemung Canal Trust Company

	 	The Bon Ton Dept Stores Inc
	Citizens Bank

	 	Citibank N A Re The Elder-Beerman Stores Corp
	Citizens Bank of Pennsylvania

	 	The Bon-Ton Stores Inc
	Citizens Bank of Pennsylvania

	 	The Bon Ton Dept Stores
	Clearfield Bank & Trust Company

	 	The Bon-Ton Department Stores Inc Re: The Elder-Beerman Stores Corp
	Fairfield National Bank

	 	The Elder-Beerman Stores Corp Store #125
	Fifth Third

	 	The Elder Beerman Stores Corp FBO Bank of America NA
	First National Bank

	 	The Bon-Ton Dept. Stores Inc.
	First National Bank of Pennsylvania

	 	BonTon Department Stores Inc #04 Lewistown
	Harris, N.A.

	 	Elder-Beerman Stores Corp
	HSBC

	 	The Bon Ton Department Stores Inc #63 Sheridan
	HSBC

	 	The Bon Ton Department Stores Inc R #62 Eastern Hills
	Key Bank

	 	The Bon Ton Dept Stores Inc
	Lake City Bank

	 	Elder-Beerman Stores Corp FBO Bank of America N A
	M & T Bank

	 	The Bon-Ton Stores Inc
	M & T Bank

	 	The Bon Ton Stores Inc
	Monroe Bank & Trust

	 	The Elder-Beerman Stores Corp
	Northwest Savings Bank

	 	The Bon-Ton Department Stores Inc
	Park National Bank

	 	The Elder Beerman Stores FBO Bank of America, N.A.
	PNC Bank

	 	The Bon Ton Department Stores Inc.
	PNC Bank

	 	The Bon Ton Dept Store Inc # 80 Phillipsburg
	PNC Bank

	 	The Bon Ton Dept Stores Inc
	Regions Bank

	 	The Elder Beerman Stores Corp
	S & T Bank

	 	The Bon-Ton Department Stores Inc FBO Bank of America NA #36 Greensburg
	Southern Michigan Bank & Trust

	 	The Elder-Beerman Stores Corp FBO Bank of America N A

 

- 33 -

 

	 	 	 
	Bank Name	 	Account Name
	Sovereign Bank

	 	The Bon Ton Department Stores Inc #35 Reading
	Star Financial Bank

	 	Elder Beerman Stores Corp Fbo Bank of America Na
	The Huntington National Bank

	 	The Elder-Beerman Stores Corp
	The Huntington National Bank

	 	The Bon Ton Deptmnt Stores Inc
	The Huntington National Bank

	 	General Electric Capital Corp DBA The Elder-Beerman Stores Corp.
	Trustco Bank

	 	The Bon Ton Department Store Inc Store #19
	U.S. Bank, N.A.

	 	The Bon-Ton Trade, LLC
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Walker Accounts Payable
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Lawson Accounts Payable
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Payroll Account
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Third Party Credit Card Receipts
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Concentration Account
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Private Label Credit Card Receipts
	U.S. Bank, N.A.

	 	The Bon-Ton Giftco Inc
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Store Deposit Receipt Account
	U.S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Accounts Payable EFT Account
	U.S. Bank, N.A.

	 	The Bon-Ton Dept Stores Inc
	United Bank

	 	The Elder-Beerman Stores Corp FBO Bank of America NA
	Wachovia Bank(1)

	 	The Bon-Ton Dept Stores Inc Bon Ton Store #29 Doing-Bus-As
	Wachovia Bank(1)

	 	The Bon-Ton Department Stores Inc
	Wachovia Bank(1)

	 	The BonTon Department Stores Inc
	Wachovia Bank(1)

	 	The Bon Ton Trade Corp
	Washington Financial Bank

	 	The Bon-Ton Department Stores
	Wells Fargo Bank, N.A.

	 	The Bon-Ton Department Stores, Inc.
	WoodTrust Bank, N.A.

	 	General Electric Capital Corp The Elder-Beerman Stores Corp

	 	 	 
	*	 	Account numbers have been provided to the Agent on the Closing Date.

	 
	(1)	 	Wells Fargo is in the process of integrating its acquisition of Wachovia Bank. These
accounts will be changed to Wells Fargo Bank accounts by the end of April 2011. There will be
no change to the account numbers following the transition to the Wells Fargo platform.

 

- 34 -

 

Schedule 8.5 (a)

Excluded Deposit and Disbursement Accounts*

	(i)	 	Deposit Accounts used exclusively for payroll, payroll taxes and employee benefits:

	 	 	 
	Bank Name	 	Account Name
	U. S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Payroll Account

	(ii)	 	Disbursement accounts of the Obligors:

	 	 	 
	Bank Name	 	Account Name
	U. S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Walker Accounts Payable
	U. S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Lawson Accounts Payable
	U. S. Bank, N.A.

	 	The Bon-Ton Department Stores Inc — Accounts Payable EFT Account
	Wachovia Bank(1)

	 	The BonTon Department Stores Inc

	 	 	 
	*	 	Account numbers have been provided to the Agent on the Closing Date.

	 
	(1)	 	Wells Fargo is in the process of integrating its acquisition of Wachovia Bank. This
account will be changed to a Wells Fargo Bank account by the end of April 2011. There will be no
change to the account number following the transition to the Wells Fargo platform.

 

- 35 -

 

Schedule 8.5 (b)

Excluded Trust Accounts

Trust Account of The Bon-Ton Trade, LLC:

	 	 	 
	Bank Name	 	Account Name
	U.S. Bank, N.A.

	 	The Bon-Ton Trade, LLC

	 	 	 
	*	 	Account numbers have been provided to the Agent on the Closing Date.

 

- 36 -

 

Schedule 8.6.1

Chief Executive Offices and Other Locations of Collateral

Chief Executive Offices:

	 	 	 
	Obligor and Subsidiaries	 	Chief Executive Office
	The Bon-Ton Stores, Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Department Stores, Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Giftco, Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Stores of Lancaster, Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Trade, LLC

	 	300 Delaware Avenue, Suite 12122, Wilmington, DE 19801
	The Elder-Beerman Stores Corp.

	 	2801 East Market Street, York, PA 17402
	Bon-Ton Distribution, Inc.

	 	2801 East Market Street, York, PA 17402
	McRIL, LLC

	 	2801 East Market Street, York, PA 17402
	Carson Pirie Scott II, Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties-Eastview G.P., Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties-Marketplace G.P., Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties — Greece Ridge G.P., Inc.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties — Eastview, L.P.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties — Marketplace, L.P.

	 	2801 East Market Street, York, PA 17402
	The Bon-Ton Properties — Greece Ridge, L.P.

	 	2801 East Market Street, York, PA 17402
	Bonstores Holdings One, LLC

	 	2801 East Market Street, York, PA 17402
	Bonstores Holdings Two, LLC

	 	2801 East Market Street, York, PA 17402
	Bonstores Realty One, LLC

	 	2801 East Market Street, York, PA 17402
	Bonstores Realty Two, LLC

	 	2801 East Market Street, York, PA 17402

Locations of Collateral:

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	51	 	Bon-Ton

	 	York Corporate Office
	 	2801 East Market Street, York, PA 17402
	599	 	N/A

	 	Milwaukee Corporate Office
	 	331 West Wisconsin Avenue, Milwaukee, WI 53203
	 	 	Bon-Ton

	 	Corporate Office of The Bon-Ton Trade, LLC
	 	300 Delaware Avenue, Suite 12122, Wilmington, DE 19801
	53	 	Bon-Ton

	 	Corporate Services Building
	 	220 Boxwood Lane, York, PA 17402

 

- 37 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	55	 	Bon-Ton

	 	A/P/Payroll/Information Services
	 	601 Memory Lane, Building A, York, PA 17402
	191	 	Elder-Beerman

	 	Dayton Information Services Facility
	 	3155 El-Bee Road, Dayton, OH 45439
	399	 	Herberger’s

	 	Administrative Facility
	 	600 West St. Germain Street, St Cloud, MN 56301
	597	 	N/A

	 	Milwaukee Photo Studio
	 	801 West Layton Ave., Milwaukee, WI 53221
	969	 	N/A

	 	New York Buying Office
	 	469 7th Avenue, 5th Floor, New York, NY 10018
	50/57	 	Bon-Ton

	 	Whitehall Distribution Center
	 	3585 South Church St., Whitehall, PA 18052
	187	 	Elder-Beerman

	 	Salem Furniture Distribution Facility
	 	5370 Salem Avenue, Dayton, OH 45426
	194/198	 	Elder-Beerman

	 	Fairborn Distribution Center
	 	1340 E. Dayton-Yellow Springs Road, Fairborn, OH 45324
	193/590	 	Carson Pirie Scott

	 	Rockford Distribution Center
	 	4650 Shepherd Trail, Rockford, IL 61115
	491	 	Younkers

	 	Green Bay Distribution Facility
	 	1300 North Quincy Street, Green Bay, WI 54302
	591	 	Carson Pirie Scott

	 	Naperville Furniture Distribution Facility
	 	1835 Jefferson Avenue, Naperville, IL 60540
	2	 	Bon-Ton

	 	Hanover
	 	400 Eisenhower Drive, Hanover, PA 17331
	3	 	Bon-Ton

	 	Hagerstown
	 	17301 Valley Mall Road, Hagerstown, MD 21740
	4	 	Bon-Ton

	 	Lewistown
	 	111 E. Market St., Lewistown, PA 17044
	5	 	Bon-Ton

	 	Martinsburg
	 	800 Foxcroft Avenue, Martinsburg, WV 25401
	6	 	Bon-Ton

	 	Chambersburg
	 	100 Chambersburg Mall, Chambersburg, PA 17201
	7	 	Bon-Ton

	 	Park City Furniture Gallery
	 	870 Plaza Boulevard, Lancaster, PA 17601
	8	 	Bon-Ton

	 	Park City
	 	600 Park City Center, Lancaster, PA 17601
	9	 	Bon-Ton

	 	Carlisle
	 	750 E. High Street, Carlisle, PA 17013

 

- 38 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	10	 	Bon-Ton

	 	West Manchester
	 	1800 Loucks Road, Suite 300, York, PA 17408
	12	 	Bon-Ton

	 	Cumberland
	 	Country Club Mall, 1262 Vocke Road, LaVale, MD 21502
	14	 	Bon-Ton

	 	Galleria
	 	8 Galleria Mall, York, PA 17402
	15	 	Bon-Ton

	 	Uniontown
	 	1800 Mall Run Road, Uniontown, PA 15401
	16	 	Bon-Ton

	 	Selinsgrove
	 	3 Susquehanna Valley Mall, Selinsgrove, PA 17870
	17	 	Bon-Ton

	 	Indiana
	 	2334 Oakland Ave. Ste 35, Indiana, PA 15701
	18	 	Bon-Ton

	 	Warren
	 	4000 Market St. Ext., Warren, PA 16365
	19	 	Bon-Ton

	 	Wilton
	 	3065 Rt. 50, Saratoga Springs, NY 12866
	21	 	Bon-Ton

	 	Oil City
	 	6945 US 322, Cranberry, PA 16319
	22	 	Bon-Ton

	 	Brick
	 	80 Brick Plaza, Brick, NJ 08723
	23	 	Bon-Ton

	 	Butler
	 	101 Clearview Circle, Butler, PA 16001
	24	 	Bon-Ton

	 	Hamden
	 	2300 Dixwell Ave., Hamden, CT 06514
	25	 	Bon-Ton

	 	Binghamton
	 	Oakdale Mall, 601-635 Harry L Drive, Johnson City, NY 13790
	26	 	Bon-Ton

	 	Burlington
	 	155 Dorset St., S. Burlington, VT, 05403
	27	 	Bon-Ton

	 	Williamsport
	 	300 Lycoming Mall Circle, Suite 2074, Pennsdale, PA 17756
	28	 	Bon-Ton

	 	Bloomsburg
	 	225 Columbia Mall Dr., Bloomsburg, PA 17815
	29	 	Bon-Ton

	 	Queensgate
	 	2081 Springwood Rd., York, PA 17403
	31	 	Bon-Ton

	 	Camp Hill
	 	3525 Gettysburg Rd., Camp Hill, PA 17011
	32	 	Bon-Ton

	 	Colonial Park
	 	4600 Jonestown Rd., Harrisburg, PA 17109
	33	 	Bon-Ton

	 	Concord
	 	270 Loudon Rd., Concord, NH 03301
	35	 	Bon-Ton

	 	Reading
	 	Berkshire Mall/1665 State Hill Rd., Wyomissing, PA 19610

 

- 39 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	36	 	Bon-Ton

	 	Greensburg
	 	Westmoreland Mall, 5256 Route 30, Greensburg, PA 15601
	37	 	Bon-Ton

	 	Washington
	 	1500 W. Chestnut St., Washington, PA 15301
	38	 	Bon-Ton

	 	Midway
	 	Midway Shopping Center, Wyoming, PA 18644
	39	 	Bon-Ton

	 	Wilkes-Barre
	 	14 Wyoming Valley Mall, Wilkes-Barre, PA 18702
	40	 	Bon-Ton

	 	Frackville
	 	Schuylkill Mall, Frackville, PA 17931
	41	 	Bon-Ton

	 	Scranton
	 	200 The Mall at Steamtown, Scranton, PA 18503
	43	 	Bon-Ton

	 	Newburgh
	 	1401 Rte. 300, Suite 139, Newburgh, NY 12550
	44	 	Bon-Ton

	 	Ithaca
	 	Pyramid Mall, 40 Catherwood Rd., Ithaca, NY 14850
	45	 	Bon-Ton

	 	Johnstown
	 	550 Galleria Drive, Johnstown, PA 15904
	46	 	Bon-Ton

	 	Jamestown
	 	318 E. Fairmount Ave., Lakewood, NY 14750
	47	 	Bon-Ton

	 	Watertown
	 	21073 Salmon Run Mall Loop W., Watertown, NY 13601
	48	 	Bon-Ton

	 	Westfield
	 	443 E. Main St., Westfield, MA 01085
	49	 	Bon-Ton

	 	Glens Falls
	 	578 Aviation Rd., Queensbury, NY 12804
	62	 	Bon-Ton

	 	Eastern Hills
	 	4545 Transit Rd., Williamsville, NY 14221
	63	 	Bon-Ton

	 	Sheridan
	 	1706 Sheridan Dr., Buffalo, NY 14223
	64	 	Bon-Ton

	 	Southgate
	 	1090 Union Rd., West Seneca, NY 14224
	65	 	Bon-Ton

	 	McKinley
	 	3701 McKinley Pkway., Blasdell, NY 14219
	67	 	Bon-Ton

	 	Lockport
	 	5737 S. Transit Rd., Lockport, NY 14094
	68	 	Bon-Ton

	 	Olean
	 	402 N. Union St., Olean, NY 14760
	69	 	Bon-Ton

	 	Niagara Falls
	 	6929 Williams Rd., Niagara Falls, NY 14304

 

- 40 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	70	 	Bon-Ton

	 	State College
	 	2901 East College Ave., Suite 600, State College, PA 16801
	72	 	Bon-Ton

	 	Bethlehem
	 	2524 Schoenersville Rd, Bethlehem, PA 18017
	73	 	Bon-Ton

	 	Allentown South
	 	3300 Lehigh Street, Allentown, PA 18103
	76	 	Bon-Ton

	 	Easton
	 	Palmer Park Mall, Suite 146, 2455 Park Avenue, Easton, PA 18045
	78	 	Bon-Ton

	 	Quakertown
	 	751 SW End Blvd., Quakertown, PA 18951
	80	 	Bon-Ton

	 	Phillipsburg
	 	1200 Highway 22 East, Phillipsburg, NJ 08865
	81	 	Bon-Ton

	 	Doylestown
	 	456 North Main St, Doylestown, PA 18901
	82	 	Bon-Ton

	 	Trexlertown
	 	6900 Hamilton Blvd., Trexlertown, PA 18087
	83	 	Bon-Ton

	 	Stroudsburg
	 	Rt 611 & Bridge St., Stroudsburg, PA 18360
	84	 	Bon-Ton

	 	Elmira
	 	3300 Chambers Rd. Suite 5130, Horseheads, NY 14845
	91	 	Bon-Ton

	 	Carousel
	 	9570 Carousel Center Drive, Syracuse, NY 13290
	92	 	Bon-Ton

	 	Massena
	 	Rt 37 & 131, Massena, NY 13662
	94	 	Bon-Ton

	 	Camillus
	 	5301 W. Genesee, Camillus, NY 13031
	96	 	Bon-Ton

	 	Eastview
	 	7979 Pittsford-Victor Rd., Victor, NY 14564
	97	 	Bon-Ton

	 	Greece Ridge
	 	98 Greece Ridge Center, Rochester, NY 14626
	99	 	Bon-Ton

	 	Marketplace
	 	15 Miracle Mile Dr., Rochester, NY 14623
	101	 	Elder-Beerman

	 	Dayton Mall
	 	2700 St. Rt. 725, Dayton, OH 45459
	107	 	Elder-Beerman

	 	Huber Heights
	 	8821 Old Troy Pike, Huber Heights, OH 45424
	115/115A	 	Elder-Beerman

	 	Beavercreek
	 	2727 Fairfield Commons, Beavercreek, OH 45431

 

- 41 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	116	 	Elder-Beerman

	 	Springfield
	 	1475 Upper Valley Pike, Springfield, OH 45504
	117	 	Elder-Beerman

	 	Piqua Mall
	 	987 E. Ash Street, Piqua, OH 45356
	118	 	Elder-Beerman

	 	Athens
	 	1004 E. State Street, Athens, OH 45701
	119	 	Elder-Beerman

	 	New Philadelphia
	 	400 Mill Avenue, New Philadelphia, OH 44663
	121	 	Elder-Beerman

	 	Kettering
	 	2050 E. Dorothy Lane, Dayton, OH 45420
	122	 	Elder-Beerman

	 	Northwest
	 	2917 Philadelphia Drive, Dayton, OH 45405
	125	 	Elder-Beerman

	 	Lancaster
	 	1730 River Valley Circle South, Lancaster, OH 43130
	126	 	Elder-Beerman

	 	Newark
	 	771 30th Street, Newark, OH 43056
	127	 	Elder-Beerman

	 	Defiance
	 	1500 N. Clinton Street, Defiance, OH 43512
	128	 	Elder-Beerman

	 	Zanesville
	 	3575 Maple Avenue, Zanesville, OH 43701
	129	 	Elder-Beerman

	 	Marion, OH
	 	1475 Marion-Waldo, Marion, OH 43302
	130	 	Elder-Beerman

	 	Chillicothe
	 	1080 N. Bridge Street, Chillicothe, OH 45601
	132	 	Elder-Beerman

	 	Richmond
	 	601 East Main Street, Richmond, IN 47374
	133	 	Elder-Beerman

	 	Lima
	 	2400 Elida Road, Lima, OH 45805
	135	 	Elder-Beerman

	 	Middletown
	 	3459 Town Mall Blvd., Franklin, OH 45005
	137	 	Elder-Beerman

	 	Sandusky
	 	4314 Milan Road, Sandusky, OH 44870
	138	 	Younkers

	 	Plover
	 	1780 Plover Road, Plover, WI 54467
	140	 	Boston Store

	 	Kohler
	 	4030 Highway 28, Kohler, WI 53044
	141	 	Bon-Ton

	 	Dubois
	 	300 Commons Drive, DuBois, PA 15801
	142	 	Boston Store

	 	West Bend
	 	1291 W. Paradise Drive, West Bend, WI 53095
	143	 	Elder-Beerman

	 	Coldwater
	 	373 North Willowbrook Rd., Suite Z, Coldwater, MI 49036

 

- 42 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	144	 	Elder-Beerman

	 	Alliance
	 	2500 W. State Street, Alliance, OH 44601
	147	 	Elder-Beerman

	 	Wooster
	 	4095 Burbank Road, Wooster, OH 44691
	148	 	Elder-Beerman

	 	Morgantown Mall
	 	9550 Mall Road, Morgantown, WV 26505
	149	 	Bon-Ton

	 	Erie
	 	810 Mill Creek Mall Road, Erie, PA 16565
	150	 	Elder-Beerman

	 	Warsaw
	 	2856 Frontage Road, Warsaw, IN 46580
	151	 	Elder-Beerman

	 	Frankfort
	 	202 Limestone Drive, Frankfort, KY 40601
	152	 	Elder-Beerman

	 	Findlay Village Mall
	 	1800 Tiffin Avenue, Findlay, OH 45840
	153	 	Elder-Beerman

	 	Bowling Green
	 	1234 N. Main Street, Bowling Green, OH 43402
	154	 	Elder-Beerman

	 	Howell
	 	3599 E. Grand River Avenue, Howell, MI 48843
	155	 	Elder-Beerman

	 	Westgate
	 	3311 Secor Road, Toledo, OH 43606
	158	 	Elder-Beerman

	 	Adrian
	 	1357 S. Main Street, Adrian, MI 49221
	159	 	Elder-Beerman

	 	Monroe
	 	2121 N. Monroe Street, Monroe, MI 48161
	160	 	Elder-Beerman

	 	Benton Harbor
	 	1800 Pipestone Road, Benton Harbor, MI 49022
	161	 	Elder-Beerman

	 	Midland Mall
	 	6830 Eastman Avenue, Midland, MI 48642
	163	 	Elder-Beerman

	 	Jackson
	 	1826 W. Michigan Avenue, Jackson, MI 49202
	164	 	Younkers

	 	Muskegon Furniture Gallery
	 	5159 Harvey Street, Muskegon, MI 49444
	165	 	Elder-Beerman

	 	Beloit
	 	90 Eclipse Center, Beloit, WI 53511
	171	 	Carson Pirie Scott

	 	Dekalb
	 	2550 Sycamore Road, Dekalb, IL 60115
	172	 	Elder-Beerman

	 	Marion, IN
	 	1129 N. Baldwin, Marion, IN 46952
	173	 	Younkers

	 	Muscatine
	 	1903 Park Avenue, Muscatine, IA 52761
	174	 	Elder-Beerman

	 	Anderson
	 	2101 South Scatterfield Road, Anderson, IN 46016

 

- 43 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	175	 	Elder-Beerman

	 	Mattoon
	 	700 Broadway Avenue East, Mattoon, IL 61938
	177	 	Elder-Beerman

	 	Danville
	 	2917 N. Vermillion, Danville, IL 61832
	178	 	Elder-Beerman

	 	Jasper
	 	3875 Newton Street, Jasper, IN 47546
	179	 	Elder-Beerman

	 	Honey Creek
	 	3401 South US Hwy 41, Terre Haute, IN 47802
	180	 	Elder-Beerman

	 	Paducah
	 	5105 Hinkleville Road #500, Paducah, KY 42001
	181	 	Elder-Beerman

	 	Columbus
	 	2104 25th Street, Columbus,IN 47201
	182	 	Elder-Beerman

	 	Muncie
	 	3501 N. Granville Avenue, Muncie, IN 47303
	184	 	Elder-Beerman

	 	Kokomo
	 	1540 East Boulevard, Kokomo, IN 46902
	185	 	Elder-Beerman

	 	Elkhart
	 	3701 South Main, Elkhart, IN 46517
	186	 	Younkers

	 	Green Bay Furniture Gallery
	 	201 Bay Park Square, Green Bay, WI 54304
	189/190	 	Elder-Beerman

	 	South Towne Furniture
	 	2400 State Route 725, Dayton, OH 45459
	202	 	Elder-Beerman

	 	Huntington
	 	Huntington Mall, 500 Mall Rd. #600, Barboursville, WV 25504
	203	 	Elder-Beerman

	 	Clarksburg
	 	2700 Meadowbrook Mall, Bridgeport, WV 26330
	204	 	Elder-Beerman

	 	Parkersburg
	 	600 Grand Central Mall, PO Box 6084, Parkersburg, WV 26105
	205	 	Elder-Beerman

	 	Ashland
	 	10699 US Route 60, Ashland, KY 41102
	206	 	Elder-Beerman

	 	Kanawha
	 	125 Kanawha Mall, Charleston, WV 25387
	207	 	Elder-Beerman

	 	St. Clairsville
	 	67800 Mall Road, St. Clairsville, OH 43950
	209	 	Elder-Beerman

	 	Winfield
	 	200 Liberty Sq. Shopping Center, Hurricane, WV 25526
	216	 	Elder-Beerman

	 	Beckley
	 	32 Raleigh Mall, Beckley, WV 25801
	310	 	Herberger’s

	 	Centre Square
	 	600 W. Saint Germain Street, St. Cloud, MN 56301
	311	 	Herberger’s

	 	Thunderbird Mall
	 	1440 South 12th Avenue, Virginia, MN 55792
	312	 	Herberger’s

	 	Cedar Mall
	 	2900 South Main, Rice Lake, WI 54868

 

- 44 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	313	 	Herberger’s

	 	Westridge Mall
	 	2001 West Lincoln Ave, Fergus Falls, MN 56537
	314	 	Herberger’s

	 	Marketplaz Mall
	 	110 North Minnesota Street, New Ulm, MN 56073
	315	 	Herberger’s

	 	Watertown Mall
	 	1300 9th Avenue SE, Watertown, SD 57201
	316	 	Herberger’s

	 	Viking Plaza
	 	3015 Hwy 29 S, Suite 4037, Alexandria, MN 56308
	317	 	Herberger’s

	 	Holiday Village Shopping Center — Havre
	 	1753 Highway 2 NW, Havre, MT 59501
	318	 	Herberger’s

	 	Valley View Mall
	 	4000 State Road 16, LaCrosse, WI 54601
	319	 	Herberger’s

	 	Northbridge Mall
	 	2440 Bridge Avenue, Albert Lea, MN 56007
	320	 	Herberger’s

	 	Moorhead Center Mall
	 	400 Center Avenue, Moorhead, MN 56560
	321	 	Herberger’s

	 	Kirkwood Mall
	 	641 Kirkwood Mall, Bismarck, ND 58504
	323	 	Herberger’s

	 	Westgate Mall/Brainerd
	 	14136 Baxter Drive, Suite 1, Baxter, MN 56425
	325	 	Herberger’s

	 	Rimrock Mall
	 	300 S. 24th Street West, Billings, MT 59102
	326	 	Herberger’s

	 	Quincy Place Shopping Center
	 	1110 Quincy Avenue, Ottumwa, IA 52501
	327	 	Herberger’s

	 	Holiday Village Shopping Center — Great Falls
	 	1200 10th Avenue S, Great Falls, MT 59405
	328	 	Herberger’s

	 	Rushmore Mall
	 	2200 North Maple, Rapid City, SD 57701
	329	 	Herberger’s

	 	White Mountain Mall
	 	2445 Foothill Boulevard, Rock Springs, WY 82901
	330	 	Herberger’s

	 	Prairie Hills Mall
	 	1611 3rd Avenue W., Dickinson, ND 58601
	331	 	Herberger’s

	 	Dakota Square
	 	2400 10th Street SW, Minot, ND 58701
	332	 	Herberger’s

	 	Kandi Mall
	 	1605 1st Street South, Willmar, MN 56201
	333	 	Boston Store

	 	Beaver Dam Mall
	 	1645 North Spring Street, Beaver Dam, WI 53916

 

- 45 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	334	 	Herberger’s

	 	Sunset Plaza
	 	1700 Market Lane, Norfolk, NE, 68701
	335	 	Herberger’s

	 	Imperial Mall Shopping Center
	 	3001 West 12th, Suite 4, Hastings, NE, 68901
	336	 	Herberger’s

	 	The Mall
	 	1100 South Dewey, North Platte, NE, 69101
	338	 	Herberger’s

	 	Hilltop Mall
	 	4915 2nd Avenue, Kearney, NE, 68847
	339	 	Herberger’s

	 	Monument Mall
	 	2302 Frontage Road, Box 29, Scottsbluff, NE, 69361
	340	 	Herberger’s

	 	Kalispell Center Mall
	 	20 North Main, Kalispell, MT 59901
	341	 	Herberger’s

	 	Blaine
	 	301 Northtown Drive Northeast, Blaine, MN 55434
	342	 	Herberger’s

	 	Stillwater
	 	2001 Washington Avenue, Stillwater, MN 55082
	343	 	Herberger’s

	 	Lakewood Mall
	 	3315 6th Ave SE, Suite 2, Aberdeen, SD 57401
	344	 	Herberger’s

	 	Grand Junction/Mesa Mall
	 	2424 US Hwy 6 & 50, Grand Junction, CO 81505
	345	 	Herberger’s

	 	River Hills Mall
	 	1850 Adams Street, Mankato, MN 56001
	348	 	Herberger’s

	 	Paul Bunyan Mall
	 	1401 Paul Bunyan Drive, Bemidji, MN 56601
	349	 	Herberger’s

	 	Butte Plaza Mall
	 	3100 Harrison Avenue, Suite 5A, Butte, MT 59701
	351	 	Herberger’s

	 	Southgate Mall
	 	2901 Brooks Avenue, Missoula, MT 59801
	352	 	Herberger’s

	 	West Acres Shopping Center
	 	3902 13th Avenue S, Fargo, ND 58103
	353	 	Herberger’s

	 	Rosedale Shopping Center
	 	600 Rosedale Shopping Center, Roseville, MN 55113
	354	 	Herberger’s

	 	Midway Marketplace
	 	1400 University Place, St. Paul, MN 55104
	355	 	Herberger’s

	 	Southtown Mall
	 	7831 Southtown Center, Bloomington, MN 55431
	357	 	Herberger’s

	 	Apache Mall
	 	1201 12th Street SW, Rochester, MN 55902
	401	 	Younkers

	 	North Grand Mall
	 	2801 North Grand Mall, Ames, IA 50010

 

- 46 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	402	 	Younkers

	 	Southbridge Mall
	 	102 South Delaware, Mason City, IA 50401
	403	 	Younkers

	 	Crossroads Mall
	 	US Hwy 20 & South 29th St, Fort Dodge, IA 50501
	404	 	Younkers

	 	Marshall Town Center
	 	2500 South Center Street, Marshalltown, IA 50158
	406	 	Younkers

	 	Oakview Mall
	 	3201 South 144th Street, Omaha, NE, 68144
	407	 	Younkers

	 	College Square Mall
	 	6301 University Avenue, Cedar Falls, IA 50613
	408	 	Younkers

	 	Crossroads Center
	 	2060 Crossroads Boulevard, Waterloo, IA 50702
	409	 	Younkers

	 	Oak Park Mall
	 	Highway 218 & 18th St. Northwest, Austin, MN 55912
	410	 	Younkers

	 	Merle Hay Mall
	 	3800 Merle Hay Rd, Suite 100, Des Moines, IA 50310
	412	 	Younkers

	 	Coral Ridge Mall
	 	1421 Coral Ridge Avenue, Coralville, IA 52241
	413	 	Younkers

	 	Lindale Mall
	 	4444 1st Avenue NE, Cedar Rapids, IA 52402
	414	 	Younkers

	 	Jordan Creek
	 	101 Jordan Creek Parkway, Suite 6000, West Des Moines, IA 50266
	418	 	Younkers

	 	Kennedy Mall
	 	555 John F. Kennedy Road, Dubuque, IA 52002
	419	 	Younkers

	 	Westroads Mall
	 	707 N. 102nd St., Omaha, NE, 68114
	421	 	Younkers

	 	Northpark Mall
	 	320 West Kimberly Road, Davenport, IA 52806
	422	 	Younkers

	 	Southpark Mall
	 	4200 16th Street, Moline, IL 61265
	423	 	Younkers

	 	Southridge Mall
	 	1111 E Army Post Road, Suite 2003, Des Moines, IA 50315
	424	 	Younkers

	 	Empire Mall
	 	3500 Empire Mall, Sioux Falls, SD 57106
	428	 	Younkers

	 	Westdale Mall
	 	2600 Edgewood Road SW, Cedar Rapids, IA 52404
	429	 	Younkers

	 	Southern Hills Mall
	 	4380 Sergeant Road, Sioux City, IA 51106
	430	 	Younkers

	 	Westland Mall
	 	550 South Gear, West Burlington, IA 52655

 

- 47 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	432	 	Younkers

	 	Oakwood Mall
	 	4850 Golf Road, Eau Claire, WI 54701
	437	 	Younkers

	 	Valley West Mall
	 	1551 Valley West Drive, West Des Moines, IA 50266
	438	 	Younkers

	 	Lakes Mall
	 	5580 Harvey Street, Muskegon, MI 49444
	439	 	Younkers

	 	Downtown Historic Sturgeon Bay
	 	58 North 3rd Avenue, Sturgeon Bay, WI 54235
	440	 	Younkers

	 	Rivertown Crossings
	 	3668 Rivertown Parkway, Grandville, MI 49418
	442	 	Younkers

	 	Westwood Mall
	 	3050 US Hwy 41 West, Marquette, MI 49855
	443	 	Younkers

	 	Cherryland Center
	 	1776 South Garfield Avenue, Traverse City, MI 49686
	445	 	Younkers

	 	Lansing Mall
	 	5330 West Saginaw Highway, Lansing, MI 48917
	447	 	Younkers

	 	Gateway Mall
	 	6100 O Street, Lincoln, NE, 68505
	448	 	Younkers

	 	Shoppes at Woodridge
	 	503 East Ives Street, Marshfield, WI 54449
	449	 	Younkers

	 	Miller Hill Mall
	 	1600 Miller Trunk Highway, Duluth, MN 55811
	451	 	Younkers

	 	Conestoga Mall
	 	3404 West 13th Street, Grand Island, NE, 68803
	454	 	Younkers

	 	Wausau Mall
	 	300 Forest Street, Wausau, WI 54403
	456	 	Younkers

	 	Forest Mall
	 	755 West Johnson Street, Fond Du Lac, WI 54935
	457	 	Younkers

	 	Bay Park Square
	 	101 Bay Park Square, Green Bay, WI 54304
	461	 	Younkers

	 	Edgewater Plaza
	 	700 E Magnolia Street, Manitowoc, WI 54220
	462	 	Younkers

	 	Fox River Mall
	 	4301 W. Wisconsin Avenue, Appleton, WI 54913
	463	 	Younkers

	 	Westshore Mall
	 	12331 James Street, Holland, MI 49424
	464	 	Younkers

	 	Merridian
	 	1982 W. Grand River Avenue, Okemos, MI 48864
	465	 	Younkers

	 	Birchwood Mall
	 	4450 24th Avenue, Fort Gratiot, MI 48059

 

- 48 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	466	 	Younkers

	 	Pine Tree Mall
	 	2600 Roosevelt Road, Marinette, WI 54143
	467	 	Younkers

	 	Rapids Mall
	 	555 West Grand Avenue, Wisconsin Rapids, WI 54495
	469	 	Younkers

	 	Mariner Mall
	 	69 North 28th St. East, Superior, WI 54880
	470	 	Boston Store

	 	Harbor Centre
	 	727 North 8th Street, Sheboygan, WI 53081
	475	 	Younkers

	 	Bay City Mall
	 	4131 E. Wilder Road, Bay City, MI 48706
	501	 	Bergner’s

	 	Eastland Mall
	 	1601 Empire Street, Bloomington, IL 61701
	502	 	Bergner’s

	 	Peru Mall
	 	3940 Route 251, Suite 01, Peru, IL 61354
	503	 	Bergner’s

	 	East Court Village
	 	3536 Court Street, Pekin, IL 61554
	504	 	Bergner’s

	 	Marketplace Mall
	 	2000 North Neil Street, Champaign, IL 61820
	505	 	Bergner’s

	 	Sandburg Mall
	 	1150 West Carl Sandburg Drive, Galesburg, IL 61401
	506	 	Bergner’s

	 	Sheridan Village
	 	4125 North Sheridan Road, Peoria, IL 61614
	507	 	Bergner’s

	 	Quincy Mall
	 	3347 Broadway, Quincy, IL 62301
	508	 	Bergner’s

	 	Hickory Point Mall
	 	1005 Hickory Point Mall, Forsyth, IL 62535
	510	 	Boston Store

	 	Janesville Mall
	 	2500 Milton Avenue, Janesville, WI 53545
	511	 	Bergner’s

	 	Northland Mall
	 	2900 East Lincolnway, Sterling, IL 61081
	512	 	Bergner’s

	 	Cherryvale Mall
	 	7200 Harrison Avenue, Rockford, IL 61112
	513	 	Bergner’s

	 	Machesney Mall
	 	8790 North 2nd Street, Machesney Park, IL 61115
	514	 	Carson Pirie Scott

	 	Northgate Shopping Center
	 	970 North Lake Street, Aurora, IL 60506
	515	 	Carson Pirie Scott

	 	Joliet
	 	3340 Mall Loop Drive, Joliet, IL 60435
	516	 	Carson Pirie Scott

	 	Spring Hill Mall
	 	4000 Spring Hill Mall, Dundee, IL 60118

 

- 49 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	517	 	Carson Pirie Scott

	 	Randhurst Mall
	 	1025 Center Drive, Mount Prospect, IL 60056
	518	 	Bergner’s

	 	White Oaks Mall
	 	2501 West Wabash, Springfield, IL 62704
	519	 	Boston Store

	 	Grand Avenue Mall
	 	331 West Wisconsin Avenue, Milwaukee, WI 53203
	520	 	Boston Store

	 	Bay Shore Mall
	 	5800 N. Port Washington Road, Milwaukee, WI 53217
	521	 	Boston Store

	 	Regency Mall
	 	5500 Durand Avenue, Racine, WI 53406
	522	 	Boston Store

	 	Brookfield Square
	 	15875 West Bluemound Road, Brookfield, WI 53005
	523	 	Boston Store

	 	Southridge Mall
	 	5300 South 76th Street, Greendale, WI 53129
	526	 	Boston Store

	 	East Towne Mall
	 	53 East Towne Mall, Madison, WI 53704
	527	 	Boston Store

	 	Mayfair Mall
	 	2400 North Mayfair Road, Milwaukee, WI 53226
	528	 	Boston Store

	 	West Towne Mall
	 	36 West Towne Mall, Madison, WI 53719
	529	 	Boston Store

	 	Brookfield Furniture Gallery
	 	18615 West Bluemound Road, Brookfield, WI 53045
	530	 	Carson Pirie Scott

	 	Evergreen Mall
	 	9700 South Western Avenue, Evergreen Park, IL 60805
	531	 	Carson Pirie Scott

	 	Yorktown Mall
	 	230 Yorktown Road, Lombard, IL 60148
	532	 	Carson Pirie Scott

	 	Woodmar Mall
	 	6600 Indianapolis Boulevard, Hammond, IN 46320
	533	 	Carson Pirie Scott

	 	Eden’s Plaza
	 	3200 Lake Avenue, Wilmette, IL 60091
	535	 	Carson Pirie Scott

	 	Stratford Square
	 	4 Stratford Square, Bloomingdale, IL 60108
	536	 	Carson Pirie Scott

	 	Gateway Mall
	 	120 South Riverside Plaza, Chicago, IL 60606
	538	 	Carson Pirie Scott

	 	Chicago Ridge Mall
	 	9800 South Ridgeland Avenue, Chicago Ridge, IL 60415
	539	 	Carson Pirie Scott

	 	Harlem-Irving Mall
	 	4200 N. Harlem Avenue, Norridge, IL 60706

 

- 50 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	540	 	Carson Pirie Scott

	 	Lincoln Mall
	 	300 Lincoln Mall, Matteson, IL 60443
	541	 	Carson Pirie Scott

	 	North Riverside Park Mall
	 	7505 West Cermak Road, North Riverside, IL 60546
	542	 	Carson Pirie Scott

	 	Westfield Shoppingtown/Southlake
	 	1995 Southlake Mall, Merrillville, IN 46410
	543	 	Carson Pirie Scott

	 	Orland Square
	 	4 Orland Square, Orland Park, IL 60462
	544	 	Carson Pirie Scott

	 	River Oaks Mall
	 	146 River Oaks Drive, Calumet City, IL 60409
	546	 	Carson Pirie Scott

	 	Yorktown Furniture
	 	2 Yorktown Mall, Lombard, IL 60148
	547	 	Carson Pirie Scott

	 	Eden Furniture Gallery
	 	3232 Lake Avenue, Ste 330, Wilmette, IL 60091
	548	 	Carson Pirie Scott

	 	Schaumburg Furniture Gallery
	 	830 East Golf Road, Schaumburg, IL 60173
	549	 	Carson Pirie Scott

	 	Marquette Mall
	 	305 West US Hwy 20, Michigan City, IN 46360
	550	 	Carson Pirie Scott

	 	Westfield Shoppingtown/Hawthorn
	 	3 Hawthorne Center, Vernon Hills, IL 60061
	551	 	Carson Pirie Scott

	 	Ford City Mall
	 	7601 South Cicero Avenue, Chicago, IL 60652
	552	 	Carson Pirie Scott

	 	Lincolnwood Town Center
	 	3333 West Touhy, Lincolnwood, IL 60712
	553	 	Carson Pirie Scott

	 	Northfield Square Mall
	 	1602 North State Rt. 50, Bourbonnais, IL 60914
	554	 	Carson Pirie Scott

	 	Charlestowne Mall
	 	3850 East Main Street, St. Charles, IL 60174
	555	 	Carson Pirie Scott

	 	Hawthorn Furniture Gallery
	 	480 Ring Drive, Vernon Hills, IL 60061
	556	 	Carson Pirie Scott

	 	Fox Valley Mall
	 	3 Fox Valley Center, Aurora, IL 60504
	560	 	Carson Pirie Scott

	 	Fox Valley Furniture Gallery
	 	404 South Route 59, Suite 128, Naperville, IL 60540
	561	 	Carson Pirie Scott

	 	Orland Square Furniture Gallery
	 	66 Orland Square, Orland Park, IL 60462
	562	 	Carson Pirie Scott

	 	Streets of Woodfield
	 	601 North Martingale Road, Schaumburg, IL 60173
	563	 	Bergner’s

	 	The Shoppes at Grand Prairie
	 	5203 West War Memorial Drive, Peoria, IL 61615

 

- 51 -

 

	 	 	 	 	 	 	 	 	 
	Location	 	 	 	 	 	 
	Number	 	Nameplate	 	Location/Store Name	 	Address
	564	 	Carson Pirie Scott

	 	Circle Centre
	 	1 West Washington Street, Indianapolis, IN 46204
	571	 	Parisian

	 	Laurel Park Place
	 	17625 Newburgh Road, Livonia, MI 48152
	572	 	Parisian

	 	Meadowbrook Village
	 	400 North Adams Road, Rochester Hills, MI 48309
	573	 	Parisian

	 	Partridge Creek
	 	17480 Hall Road, Clinton, MI 48038
	579	 	Carson Pirie Scott

	 	Naperville Furniture Clearance Center
	 	1835 Jefferson Avenue, Naperville, IL 60540
	972	 	N/A

	 	Huntington
	 	925-939 Third Avenue, Huntington, WV 25701

 

- 52 -

 

Schedule 9.1.4

Names and Capital Structure

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Number and/or	 	Holders
	 	 	 	 	 	 	Equity	 	% of Equity	 	of Equity
	Issuer	 	Jurisdiction	 	Securities	 	Interests	 	Interests	 	Interests
	Carson Pirie Scott II, Inc.

	 	Mississippi
	 	Common Stock
	 	30,000,000 shares
	 	153,818 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	McRIL, LLC

	 	Virginia
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	Carson Pirie Scott II, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bon-Ton Distribution, Inc.

	 	Illinois
	 	Common Stock
	 	100,000 shares
	 	1,000 shares
100%
	 	Carson Pirie Scott II, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Department Stores, Inc.

	 	Pennsylvania
	 	Common Stock
	 	40,000,000 shares
	 	10 shares
100%
	 	The Bon-Ton Stores, Inc.
	 

	 	 	 	Class A Common Stock
	 	20,000,000 shares
	 	0 shares
	 	N/A
	 

	 	 	 	Preferred Stock
	 	5,000,000 shares
	 	0 shares
	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Giftco, Inc.

	 	Florida
	 	Common Stock
	 	100 shares
	 	10 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Eastview GP, Inc.

	 	New York
	 	Common Stock
	 	1,000 shares
	 	10 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Eastview, L.P.

	 	Delaware
	 	Limited Partnership Interests
	 	N/A
	 	 	99	%	 	The Bon-Ton Department Stores, Inc.
	 

	 	 	 	Limited Partnership Interest and General Partner
	 	N/A
	 	 	1	%	 	The Bon-Ton Properties — Eastview GP, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Greece Ridge GP, Inc.

	 	New York
	 	Common Stock
	 	1,000 shares
	 	10 shares
100%
	 	The Bon-Ton Department Stores, Inc.

 

- 53 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Number and/or	 	Holders
	 	 	 	 	 	 	Equity	 	% of Equity	 	of Equity
	Issuer	 	Jurisdiction	 	Securities	 	Interests	 	Interests	 	Interests
	The Bon-Ton Properties — Greece Ridge, L.P.

	 	Delaware
	 	Limited Partnership Interest
	 	N/A
	 	 	99	%	 	The Bon-Ton Department Stores, Inc.
	 

	 	 	 	Limited partnership Interest and General Partner
	 	N/A
	 	 	1	%	 	The Bon-Ton Properties — Greece Ridge GP, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Marketplace GP, Inc.

	 	New York
	 	Common Stock
	 	1,000 shares
	 	10 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Marketplace, L.P.

	 	Delaware
	 	Limited Partnership Interests
	 	N/A
	 	 	99	%	 	The Bon-Ton Department Stores, Inc.
	 

	 	 	 	Limited Partnership Interest and General Partner
	 	N/A
	 	 	1	%	 	The Bon-Ton Properties — Marketplace GP, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Stores of Lancaster, Inc.

	 	Pennsylvania
	 	Common Stock
	 	1,000 shares
	 	1,000 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Trade, LLC

	 	Delaware
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Elder-Beerman Stores Corp.

	 	Ohio
	 	Common Stock
	 	1,000 shares
	 	1,000 shares
100%
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bonstores Holdings One, LLC

	 	Delaware
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	The Bon-Ton Department Stores, Inc.

 

- 54 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Number and/or	 	Holders
	 	 	 	 	 	 	Equity	 	% of Equity	 	of Equity
	Issuer	 	Jurisdiction	 	Securities	 	Interests	 	Interests	 	Interests
	Bonstores Holdings Two, LLC

	 	Delaware
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bonstores Realty One, LLC

	 	Delaware
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	Bonstores Holdings One, LLC
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bonstores Realty Two, LLC

	 	Delaware
	 	Limited Liability Company Interests
	 	N/A
	 	 	100	%	 	Bonstores Holdings Two, LLC

 

- 55 -

 

Schedule 9.1.5

Former Corporate Names and Trade Names:

Former Corporate Names:

	 	 	 	 	 	 	 	 	 
	Legal Name	 	Type of	 	 	 	Termination	 	Surviving
	of Entity	 	Organization	 	Jurisdiction	 	Date	 	Entity
	The Bon-Ton Corp.

	 	C-Corporation
	 	Delaware
	 	4/1/2006
	 	The Bon-Ton Stores, Inc.
	 
	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Irondequoit G.P., Inc.

	 	C-Corporation
	 	New York
	 	12/31/2007
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 
	The Bon-Ton Properties — Irondequoit, L.P.

	 	Limited Partnership
	 	Delaware
	 	12/31/2007
	 	None
	 
	 	 	 	 	 	 	 	 
	The Bon-Ton Trade Corp.

	 	C-Corporation
	 	Delaware
	 	4/1/2006
	 	The Bon-Ton Trade, LLC
	 
	 	 	 	 	 	 	 	 
	Capital City Commons Realty, Inc.

	 	C-Corporation
	 	Pennsylvania
	 	2/3/2007
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 
	Carson Pirie Scott, LLC

	 	Limited Liability Company
	 	Alabama
	 	12/31/2007
	 	The Bon-Ton Department Stores, Inc.
	 
	 	 	 	 	 	 	 	 
	Carson Pirie Scott, Inc.

	 	C-Corporation
	 	Alabama
	 	10/28/2006
	 	Carson Pirie Scott, LLC
	 
	 	 	 	 	 	 	 	 
	Elder-Beerman Holdings, Inc.

	 	C-Corporation
	 	Ohio
	 	12/31/2007
	 	The Elder-Beerman Stores Corp.
	 
	 	 	 	 	 	 	 	 
	Elder-Beerman Operations, LLC

	 	Limited Liability Company
	 	Ohio
	 	12/31/2007
	 	The Elder-Beerman Stores Corp.
	 
	 	 	 	 	 	 	 	 
	Elder-Beerman West Virginia, Inc.

	 	C-Corporation
	 	West Virginia
	 	12/31/2008
	 	The Elder-Beerman Stores Corp.
	 
	 	 	 	 	 	 	 	 
	Herberger’s Department Stores, LLC

	 	Limited Liability Company
	 	Minnesota
	 	12/31/2007
	 	The Bon-Ton Department Stores, Inc.

Acquisitions

Parisian: Effective October 31, 2006, pursuant to an Asset Purchase Agreement dated
October 25, 2006 between The Bon-Ton Stores, Inc. (“Parent”) and Belk, Inc., which was assigned by
Parent to The Bon-Ton Department Stores, Inc., The Bon-Ton Department Stores, Inc. acquired four
Parisian department stores and the rights for the construction of a fifth Parisian store.

 

- 56 -

 

Trade Names:

	 	 	 
	Entity	 	Trade Names Used
	The Bon-Ton Department Stores, Inc.

	 	Bon-Ton; Capital City Commons; Carson Pirie Scott; Elder-Beerman; Herberger’s; Parisian; Younkers
	 
	 	 
	Bon-Ton Distribution, Inc.

	 	Carson Pirie Scott Furniture Clearance Center
	 
	 	 
	The Bon-Ton Giftco, Inc.

	 	Bon-Ton
	 
	 	 
	The Bon-Ton Stores of Lancaster, Inc.

	 	Bon-Ton
	 
	 	 
	Carson Pirie Scott II, Inc.

	 	Bon-Ton; Boston Store; Herberger’s; Younkers
	 
	 	 
	The Elder-Beerman Stores Corp.

	 	Bon-Ton; Elder-Beerman; Younkers
	 
	 	 
	McRIL, LLC

	 	Bergner’s; Carson Pirie Scott; Carson Pirie Scott Furniture Gallery; Younkers

 

- 57 -

 

Schedule 9.1.12

Intellectual Property

Trademarks

Owner: The Bon-Ton Trade, LLC

	 	 	 	 	 
	 	 	Registration/Serial	 	Registration Date/Filing
	Trademark Name	 	Number	 	Date
	AUTHENTIC U AUTHENTIC
UNIVERSITY GRADE A GOODS (WORD
AND DESIGN)
	 	3,515,296	 	10/14/2008
	BOSTON STORE
	 	Wisconsin 6,482	 	8/3/1988
	BOSTON STORE
	 	3,666,012	 	8/11/2009
	BT JEWELED (WORD AND DESIGN)
	 	3,842,899	 	8/31/2010
	CUDDLE BEAR
	 	2,001,829	 	9/17/1996
	CUSTOMER FIRST
	 	85/108,157	 	8/16/2010
	CUSTOMER FIRST (WORD AND DESIGN)
	 	85/108/369	 	8/16/2010
	EBRIDE
	 	2,789,053	 	12/0 2/2003
	 
	 	 	 	 
	EXERTEK
	 	3,528,518	 	11/4/2008
	FLURRYVILLE COLLECTION
	 	3,672,167	 	8/25/2009
	GAME DAY COLLECTION
	 	3,684,153	 	9/15/2009
	 
	 	 	 	 
	GIVE JOY (WORD AND DESIGN)
	 	3,584,404	 	3/3/2009
	GIVE JOY
	 	3,584,389	 	3/3/2009
	JENNY BUCHANAN
	 	2,015,874	 	11/12/1996
	JENNY BUCHANAN
	 	2,015,870	 	11/12/1996
	JENNY BUCHANAN
	 	2,006,731	 	10/8/1996
	JUST CHILL
	 	3,620,462	 	5/12/2009
	LIVING GREEN
	 	3,854,437	 	9/28/2010
	ONE PHILOSOPHY (WORD AND DESIGN)
	 	3,778,686	 	4/20/2010
	RAMPED UP
	 	3,908,977	 	1/18/2011
	RU RAMPED UP (WORD AND DESIGN)
	 	3,909,005	 	1/18/2011
	SMART LOOKS, SMART PRICES
	 	2,905,339	 	11/23/2004
	SUSQUEHANNA TRAIL OUTFITTERS
	 	1,397,712	 	6/17/1986
	SUSQUEHANNA TRAIL OUTFITTERS
	 	3,217,597	 	3/13/2007
	ZOE & BELLA
	 	85/108,149	 	8/16/2010
	THE BON-TON
	 	1,680,687	 	3/24/1992
	THE BON-TON (WORD AND DESIGN)
	 	1,661,242	 	10/15/1991

 

- 58 -

 

Owner: Carson Pirie Scott II, Inc.

	 	 	 	 	 
	 	 	Registration/Serial	 	Registration Date/Filing
	Trademark Name	 	Number	 	Date
	BERGNER’S
	 	3,892,546	 	12/21/2010
	BRECKENRIDGE
	 	0, 966,580	 	8/21/1973
	BRECKENRIDGE
	 	3,022,152	 	11/29/2005
	BRECKENRIDGE (Canada)
	 	TMA230293	 	9/15/1978; Assigned to Saks 10/16/03. Assigned to CPS II, Inc.
	 
	 	 	 	 
	CARSON PIRIE SCOTT
	 	1,143,734	 	12/16/1980
	CARSONS
	 	1,395,289	 	5/27/1986
	CELEBRATION WEDDING & GIFT REGISTRY
	 	2,646,804	 	11/5/2002
	CELEBRATIONS REGISTRY FOR VERY SPECIAL
	 	 	 	 
	OCCASIONS (WORD AND DESIGN)
	 	3,628,605	 	5/26/2009
	CELEBRATIONS REGISTRY FOR VERY SPECIAL OCCASIONS
	 	3,632,950	 	6/2/2009
	 
	 	 	 	 
	CEZANI
	 	3,423,603	 	5/6/2008
	CEZANI
	 	1,869,666	 	12/27/1994
	CHANTEUSE
	 	3,069,447	 	3/14/2006
	CHARGE AGAINST BREAST CANCER
	 	2,412,363	 	12/12/2000
	COME TO THE RIGHT PLACE
	 	2,021,357	 	12/3/1996
	 
	 	 	 	 
	CONSENSUS
	 	2,363,348	 	6/27/2000
	DOGS HEAD IN CIRCLE (DESIGN)
	 	85/194/375	 	12/9/2010
	JB (WORD AND DESIGN )
	 	85/247/954	 	2/22/2011
	HERBERGER’S
	 	2,278,878	 	9/21/1999
	INTIMATE ESSENTIALS
	 	3,483,180	 	8/12/2008
	KENNETH ROBERTS
	 	3,881,265	 	11/23/2010
	KENNETH ROBERTS
	 	85/225/140	 	1/25/2011
	KENNETH ROBERTS PLATINUM
	 	3,436,925	 	5/27/2008
	 
	 	 	 	 
	LITTLE MISS ATTITUDE
	 	3,709,384	 	11/10/2009
	LIVING QUARTERS
	 	2,385,966	 	9/12/2000

 

- 59 -

 

	 	 	 	 	 
	 	 	Registration/Serial	 	Registration Date/Filing
	Trademark Name	 	Number	 	Date
	LIVING QUARTERS
	 	2,493,154	 	9/25/2001
	LIVING QUARTERS (Canada)
	 	Reg. No. 688504	 	5/29/2007
	LIVING QUARTERS
	 	3,909,131	 	1/18/2011
	MISS ATTITUDE
	 	3,848,434	 	9/14/2010
	MISS ATTITUDE
	 	3,002,529	 	9/27/2005
	MISS ATTITUDE
	 	3,528,399	 	11/4/2008
	MISS ATTITUDE
	 	2,934,265	 	3/15/2005
	MISS ATTITUDE
	 	2,934,263	 	3/15/2005
	MISS ATTITUDE
	 	3,046,737	 	1/17/2006
	 
	 	 	 	 
	MISS ATTITUDE
	 	2,933,999	 	3/15/2005
	MISS ATTITUDE
	 	2,934,000	 	3/15/2005
	MISS ATTITUDE
	 	2,968,804	 	7/12/2005
	NORTHERN LODGE
	 	3,485,550	 	8/12/2008
	NORTHERN LODGE
	 	3,569,648	 	2/3/2009
	PAINT THE TOWN
	 	2,958,408	 	5/31/2005
	PARADISE COLLECTION
	 	3,292,860	 	9/18/2007
	PARADISE COLLECTION (WORD AND DESIGN)
	 	3,347,154	 	12/4/2007
	 
	 	 	 	 
	PURSUITS, LTD
	 	2,589,337	 	7/2/2002
	RELATIVITY
	 	2,384,258	 	9/5/2000
	(RELATIVITY)
	 	2,635,572	 	10/15/2002
	STUDIO WORKS
	 	3,570,064	 	2/3/2009
	STUDIO WORKS
	 	2,407,600	 	11/28/2000
	TECH TREK
	 	3,127,728	 	8/8/2006
	TRIP READY
	 	3,587,976	 	3/10/2009
	URIT
	 	2,450,127	 	5/8/2001
	YOUNKERS (Stylized)
	 	1,795,407	 	9/28/1993

 

- 60 -

 

Owner: The Elder-Beerman Stores Corp.

	 	 	 	 	 
	 	 	Registration/Serial	 	Registration Date/Filing
	Trademark Name	 	Number	 	Date
	AFFINITY
	 	1,645,326	 	5/21/1991
	 
	 	 	 	 
	DANIELLE MARTIN (WORD AND DESIGN)
	 	1,798,768	 	10/12/1993
	EB KID’S PLACE (WORD AND DESIGN)
	 	1,573,311	 	12/26/1989
	Elder-Beerman (Stylized)
	 	1,332,638	 	4/23/1985

Owner: McRIL, LLC

	 	 	 	 	 
	 	 	Registration/Serial	 	Registration Date/Filing
	Trademark Name	 	Number	 	Date
	BERGNER’S
	 	Illinois 095011	 	10/17/2005
	BERGNER’S & Design
	 	Illinois 095012	 	10/17/2005

 

- 61 -

 

Copyrights

Owner: The Bon-Ton Department Stores, Inc.

	 	 	 	 	 
	Copyright	 	Copyright No.	 	Registration Date
	 
	 	 	 	 
	Doing a good business: 100 years at the Bon-Ton

	 	TX4880277
	 	10/28/98

Owner: The Elder-Beerman Stores Corp. (registered in the name of “Elder-Beerman Stores
Corporation”)

	 	 	 	 	 
	Copyright	 	Copyright No.	 	Registration Date
	 
	 	 	 	 
	Elder-Beerman Stores Corporation: A Tradition of Success

	 	TX 1896055
	 	7/1/86

Owner: Carson Pirie Scott II, Inc. (registered in the name of McRae’s, Inc., which merged into
Carson Pirie Scott II, Inc.)

	 	 	 	 	 
	Copyright	 	Copyright No.	 	Registration Date
	 
	 	 	 	 
	A Tale from Flurryville: The Berg’s Big Surprise/written and illustrated by Todd Lamerton

	 	TX5900922
	 	1/13/04
	 
	 	 	 	 
	Wow! What a Cow: A Tale from Funky Farm/written and illustrated by Todd Lamerton

	 	TX5744198
	 	4/29/03
	 
	 	 	 	 
	A Tale from Flurryville: Arctic Bart Finds His Happy Heart/written and illustrated by Todd Lamerton

	 	TX5638101
	 	11/19/02
	 
	 	 	 	 
	Holiday celebrations with recipes from Younkers

	 	TX5658257
	 	12/27/02

Owner: The Bon-Ton Stores, Inc.

	 	 	 	 	 
	Copyright	 	Copyright No.	 	Registration Date
	 
	 	 	 	 
	Baxter shares his bear

	 	TX6497902
	 	1/9/07

 

- 62 -

 

Owner: The Bon-Ton Department Stores, Inc. (registered in the name of Carson Pirie Scott, Inc.,
which merged into The Bon-Ton Department Stores, Inc.)

	 	 	 	 	 
	Copyright	 	Copyright No.	 	Registration Date
	 
	 	 	 	 
	Parisian celebrating a century of service
(originally registered in the name of Parisian, Inc.)

	 	TX2217381
	 	1/21/88
	 
	 	 	 	 
	Presentation—a manual of standards and guidelines
(originally registered in the name of Parisian, Inc.)

	 	TX3196448
	 	11/21/91
	 
	 	 	 	 
	Riverchase Galleria, Parisian grand opening
(originally registered in the name of Parisian, Inc.)

	 	VA239074
	 	9/5/86
	 
	 	 	 	 
	Made in Wisconsin
(originally registered in the name of Boston Store)

	 	VA81949
	 	2/23/81
	 
	 	 	 	 
	Cratchits’ Christmas dinner*
(originally registered in the name of Joanna Strauss)

	 	VA00006480
	 	6/8/78

	 	 	 
	*	 	This copyright listed “Carson Pirie Scott” instead of “Carson Pirie Scott, Inc.”

 

- 63 -

 

Schedule 9.1.15

Environmental Matters

None.

 

- 64 -

 

Schedule 9.1.16

Restrictive Agreements

	1.	 	Mortgage and Security Agreement between The Bon-Ton Properties — Eastview, L.P.
and CS First Boston Mortgage Capital Corp (since transferred to Wachovia Bank, N.A.) dated
as of May 17, 1996, as amended from time to time.

	2.	 	Mortgage and Security Agreement between The Bon-Ton Properties — Greece Ridge,
L.P. and CS First Boston Mortgage Capital Corp (since transferred to Wachovia Bank, N.A.)
dated as of May 17, 1996, as amended from time to time.

	3.	 	Mortgage and Security Agreement between The Bon-Ton Properties — Market Place,
L.P. and CS First Boston Mortgage Capital Corp (since transferred to Wachovia Bank, N.A.)
dated as of May 17, 1996, as amended from time to time.

	4.	 	Senior Notes of The Bon-Ton Department Stores, Inc. due 2014, issued under the
Senior Note Debt Documents.

	5.	 	Loan Agreement between Bank of America, N.A. and Bonstores Realty One, LLC dated as
of March 6, 2006. 

	6.	 	Loan Agreement between Bank of America, N.A. and Bonstores Realty Two, LLC dated as
of March 6, 2006. 

	7.	 	Capital lease agreements detailed on Schedule 10.2.1 (#2a — #2c) for store numbers
531, 535, 540, 541, 542 and 543.

	8.	 	Capital lease agreements with Cisco Systems Capital Corporation and Verizon Credit
Inc. detailed on Schedule 10.2.1 (#2d — #2e) for electronic equipment. 

	9.	 	Capital lease agreement with Ikon Financial Services detailed on Schedule 10.2.1
(#2f) for office equipment. 

 

- 65 -

 

Schedule 9.1.17

Litigation

None.

 

- 66 -

 

Schedule 9.1.22

Labor Contracts

Collective Bargaining Agreements:

	 	1.	 	Agreement, dated as of May 1, 2005, by and between Carson Pirie
Scott d/b/a Boston Store and Local 86 UNITE HERE (Union of Needletrades, Industry,
Textiles Employees).

	 	2.	 	Agreement, dated as of May 1, 2004, by and between Carson Pirie
Scott & Co. and Local 134 of the International Brotherhood of Electrical Workers,
AFL-CIO.

	 	3.	 	Agreement, dated as of June 8, 2003, by and between Local Union No.
147, affiliated with the International Brotherhood of Teamsters, and Saks
Incorporated.

	 	4.	 	Terms of Agreement, ratified by union members on October 3, 2005,
by and between Carson Pirie Scott & Co., and International Union of Operating
Engineers, Local Union No. 399, affiliated with the AFL-CIO.

	 	5.	 	Agreement, dated May 1, 2004, by and between Saks Incorporated and
the Heartland Regional Counsel of Carpenters, Local Union No. 106, United
Brotherhood of Carpenters & Joiners of America.

	 	6.	 	Agreement, dated January 1, 2002, between Saks Incorporated and Des
Moines, Iowa Local Union #347 of the International Brotherhood of Electrical
Workers, affiliates of the AFL-CIO, CLC. 

	 	7.	 	Agreement, dated May 1, 1998, by and between Painters Local Union
No. 246, affiliated with the Brotherhood of Painters and Allied Trades and
Younkers. 

	 	8.	 	Milwaukee Inside Wiremen Agreement, effective June 1, 1994, by and
between the Electrical Contractors Association Milwaukee Chapter, N.E.C.A., Inc.
and Local Union 494, I.B.E.W. 

	 	9.	 	Agreement, dated as of June 1, 1984, between Milwaukee Boston Store
Company and Electrical Workers Local Union 494, I.B.E.W., AFL-CIO, of Milwaukee,
Wisconsin. 

Note: The Agreements listed above have no active members and have lapsed, but have not
been formally terminated.

 

- 67 -

 

Consulting Agreements

The Bon-Ton Stores, Inc. and/or The Bon-Ton Department Stores, Inc. has entered into the
following consulting agreements:

	 	1.	 	Letter Agreement with Henry Doneger Associates, Inc.

	 
	 	2.	 	Letter Agreement with Directives West Consultants to Retail (now a division
of Henry Donegar Associates, Inc.).

	 
	 	3.	 	Letter Agreement with Mercer Health & Benefits, LLC.

	 
	 	4.	 	Letter Agreement with Kurt Salmon Associates, Inc.

	 
	 	5.	 	Letter Agreement with Towers Watson Delaware, Inc.

 

- 68 -

 

Schedule 10.2.1

Existing Debt

	1.	 	Mortgage Note Facility: On May 17, 1996, Bon-Ton entered into agreements with regard to
twenty-year mortgage notes in an aggregate principal amount of $23.4 million secured by its
four stores in Rochester, New York (store numbers 96, 97, 98 and 99). The Irondequoit
property (store number 98) was sold on April 2, 2007, and the related mortgage note in the
principal amount of $3.5 million was paid in full. The mortgage notes on the remaining
three stores have principal payable in varying monthly installments through June 2016 and
interest payable monthly at 9.62%. The mortgages are secured by land and buildings. As of
February 26, 2011, there remained an aggregate amount of $8.6 million of mortgage notes
outstanding.

	2.	 	Capital Leases:

	 	a.	 	For store numbers 531, 540, 541 and 543, McRIL, LLC is a tenant
under lease agreements originally between Chicago Title & Trust Company, Six
Anchors Limited Partnership, and CPS Realty Partnership. The current landlords
are C.R. Center, L.P. for store number 531, WEC 98C-5 LLC for store number 540,
WEC 98C-4 LLC for store number 541 and WEC 98C-2 LLC for store number 543. The
terms of all four leases are 10/31/1985 thru 01/31/2024 with five 5-year
optional extensions and an option to purchase.

	 	b.	 	For store number 535, Carson Pirie Scott II, Inc. is a tenant
under lease agreements originally between Chicago Title & Trust Company, Six
Anchors Limited Partnership, and CPS Realty Partnership. WEC 98C-3, LLC is the
current landlord. The term of the lease is 10/31/1985 thru 01/31/2024 with
five 5-year optional extensions and an option to purchase.

	 	c.	 	For store number 542, The Bon-Ton Department Stores, Inc.
(successor by merger to Carson Pirie Scott, LLC) is a tenant under a lease
agreement originally between Lake County Trust Company, as Trustee, and CPS
Realty Partnership. WEC 98C-6 LLC is the current landlord. The term of the
lease is 10/31/1985 thru 01/31/2024 with five 5-year optional extensions and an
option to purchase.

The six capital lease agreements listed above had a $61.9 million principal balance
outstanding as of February 26, 2011.

	 	d.	 	Master Lease agreement between The Bon-Ton Department Stores,
Inc. and Verizon Credit Inc. Schedule I is for electronic equipment used to
upgrade the point-of-sale system in former NDSG stores. The Schedule I lease
period commenced April 14, 2009 and has a term of 36 months. As of February
26, 2011, the Schedule I lease had a principal balance outstanding of $1.8
million. Schedule II is for electronic equipment used to upgrade the Company’s
communications systems. It has a term of 36 months which commenced on October
27, 2009. As of February 26, 2011, the Schedule II lease had a principal
balance outstanding of $1.1 million.

 

- 69 -

 

	 	e.	 	Lease agreement between The Bon-Ton Department Stores, Inc. and
Cisco Systems Capital Corporation for electronic equipment used to upgrade the
communications system in the Elder-Beerman stores. The lease commenced
January 27, 2009 and has a term of 36 months. As of February 26, 2011, the
lease had a principal balance outstanding of $0.2 million.

	 	f.	 	Multiple Product Schedules under the Master Lease agreement
between The Bon-Ton Stores, Inc. and Ikon Financial Services for copiers, fax
machines and other office equipment. The Master Lease agreement was originally
signed January 18, 2007; the relevant capital lease Product Schedules were
added between the end of November 2009 and July 2010. Each of the capital lease
Product Schedules has a term of 48 months from the commencement date of that
schedule. The principal balance outstanding for the Product Schedules defined
as capital leases was $1.4 million as of February 26, 2011.

 

- 70 -

 

Schedule 10.2.2

Existing Liens

	1.	 	Mortgages pursuant to the Mortgage Loan Debt on the twenty-three retail store locations
and one distribution facility owned by either Bonstores Realty One, LLC or Bonstores Realty
Two, LLC.

	2.	 	Other Mortgages:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Outstanding	 
	 	 	 	 	 	 	Principal	 
	 	 	 	 	 	 	Balance	 
	 	 	 	 	Entity Subject	 	As of 2/26/11	 
	Mortgage Holder	 	Location	 	to the Mortgage	 	($000s)	 
	Wachovia
	 	Marketplace Mall, N.Y.	 	The Bon-Ton Properties-Marketplace, L.P.	 	$	2,088	 
	Wachovia
	 	Eastview Mall, N.Y.	 	The Bon-Ton Properties-Eastview, L.P.	 	$	3,095	 
	Wachovia
	 	Greece Ridge Mall, N.Y.	 	The Bon-Ton Properties-Greece Ridge, L.P.	 	$	3,407	 

	3.	 	Liens on six locations (store numbers 531, 535, 540, 541, 542, and 543) held as capital
leases in favor of the following: C.R. Center, L.P., WEC 98C-2 LLC, WEC 98C-3 LLC, WEC
98C-4 LLC, WEC 98C-5 LLC, and WEC 98C-6 LLC. See #2 on Schedule 10.2.1 for additional
information.

	4.	 	Lien in favor of The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota on the Real Property located at 1400 University Place, St. Paul, Minnesota 55104.

	5.	 	Security interests in certain electronic equipment in favor of Verizon Credit, Inc.
(see #2d on Schedule 10.2.1) and Cisco Systems Capital Corporation (see #2e on Schedule
10.2.1).

	6.	 	Security interests in certain office equipment in favor of Ikon Financial Services (see
#2f on Schedule 10.2.1).

 

- 71 -

 

	7.	 	Other Liens:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor	 	Jurisdiction	 	Secured	 	File Date	 	File Type	 	File #	 	Description
	The Bon-Ton Department Stores, Inc.

	 	PA — Secretary of Commonwealth
	 	U.S. Bank, National Association (via assignment)
	 	1/25/2007
	 	UCC
	 	 	2007012
900705	 	 	Equipment and personal property leased by ComSource, Inc. to The Bon-Ton Department Stores
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Department Stores, Inc.

	 	PA — Secretary of Commonwealth
	 	Richline Group, Inc.
	 	10/8/2009
	 	UCC
	 	 	2009100
805502	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Department Stores, Inc.

	 	PA — Secretary of Commonwealth
	 	B.H. Multi Com Corp
	 	10/12/2009
	 	UCC
	 	 	2009101
202543	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Bon-Ton Department Stores, Inc.

	 	PA — Secretary of Commonwealth
	 	ComSource, Inc.
	 	12/21/2010
	 	UCC
	 	 	2010122
103161	 	 	Master Lease Agreement, dated December 5, 1995, as amended
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Elder-Beerman Stores Corp

	 	OH Secretary of State
	 	Richline Group, Inc.
	 	10/8/2009
	 	UCC
	 	OH0013
7690065
	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Elder-Beerman Stores Corp

	 	OH Secretary of State
	 	B.H. Multi Com Corp
	 	10/12/2009
	 	UCC
	 	OH0013
7718631
	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	McRIL

	 	VA State Corporation Commission
	 	Richline Group, Inc.
	 	10/9/2009
	 	UCC
	 	 	0910097
2375	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	McRIL

	 	VA State Corporation Commission
	 	B.H. Multi Com Corp
	 	10/14/2009
	 	UCC
	 	 	0910147
0663	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Carson Pirie Scott II

	 	SOS MS
	 	Richline Group, Inc.
	 	10/8/2009
	 	UCC
	 	 	2009020
6442M	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Carson Pirie Scott II

	 	SOS MS
	 	B.H. Multi Com Corp
	 	10/12/2009
	 	UCC
	 	 	2009020
8846M	 	 	Diamonds, jewelry, etc. consigned by Secured Party to or for the account of Debtor

These security interests cover the proceeds of the property as well as the property itself.

 

- 72 -

 

Schedule 10.2.2(c)

Existing Tax Liens

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor	 	Jurisdiction	 	Secured	 	File Date	 	 	File Type	 	File #	 	Description	 
	THE ELDER-BEERMAN STORES CORP.
	 	OH - MONTGOMERY COUNTY OF COMMON PLEAS	 	State of Ohio	 	 	8/26/2005	 	 	State Tax Lien Search	 	U/L-05-085928	 	$	1,536.11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE ELDER-BEERMAN STORES CORP.
	 	OH - MONTGOMERY COUNTY OF COMMON PLEAS	 	State of Ohio	 	 	4/11/2006	 	 	State Tax Lien Search	 	U/L-06-031871	 	$	1,326.73	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE ELDER-BEERMAN STORES CORP.
	 	OH - MONTGOMERY COUNTY OF COMMON PLEAS	 	State of Ohio	 	 	6/16/2006	 	 	State Tax Lien Search	 	U/L-06-054910	 	$	213.94	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE ELDER-BEERMAN STORES CORP.
	 	OH - MUSKINGUM COUNTY COURT OF COMMON PLEAS	 	State of Ohio	 	 	1/5/1996	 	 	State Tax Lien Search	 	2/27	 	$	37,177.21	 

 

- 73 -

 

Schedule 10.2.17

Existing Affiliate Transactions

	1.	 	The Bon-Ton Department Stores, Inc. (“Bon-Ton”) leases its Oil City, Pennsylvania store
from Nancy T. Grumbacher, Trustee of the 2002 Indenture of Trust of M. Thomas Grumbacher,
pursuant to a lease entered into on January 1, 1981. The rental payments under this lease
were $223,500 during fiscal 2010 and $18,625 during the 4 weeks ended February 26, 2011. In
addition, the lease provides for payment of CAM, percent rent and real estate taxes to the
landlord. The Oil City lease terminates on July 31, 2016, and Bon-Ton has three five-year
renewal options remaining. Ms. Grumbacher is the wife of Tim Grumbacher, Bon-Ton’s
Executive Chairman of the Board.

	2.	 	 Employment Agreements:

The Bon-Ton Stores, Inc. has entered into the following employment agreements:

	 	a.	 	Employment Agreement with Byron L. Bergren.

	 
	 	b.	 	Employment Agreement with Anthony Buccina.

	 
	 	c.	 	Employment Agreement with Stephen Byers.

	 
	 	d.	 	Employment Agreement with Dennis Clouser.

	 
	 	e.	 	Employment Agreement with Barbara Schrantz.

	3.	 	The Bon-Ton Stores, Inc. entered into an Executive Transition Agreement with Tim
Grumbacher.

	4.	 	The Bon-Ton Stores, Inc. has entered into a Supplemental Executive Retirement Plan
dated February 3, 2001 as well as various severance plans with certain executives.

	5.	 	The Bon-Ton Stores, Inc. has entered into a Registration Rights Agreement dated October
31, 2003 with Tim Grumbacher.

	6.	 	1991 Shareholders’ Agreement by and among The Bon-Ton Stores, Inc., M. Thomas
Grumbacher and certain restricted shareholders named therein.

 

- 74 -

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