Document:

Exhibit 10.17

EXECUTION COPY 

TERM LOAN AND SECURITY AGREEMENT

Dated as of May 21, 2007

By and Among

WHITEHALL JEWELLERS, INC.,

as Borrower,

THE LENDERS

Listed on Schedule 2.01 hereto,

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent and Collateral Agent,

for the Agents and the Lenders

and

BANK OF AMERICA, N.A.,

WELLS FARGO RETAIL FINANCE, LLC,

as Managing Agents

for the Agents and the Lenders

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
ARTICLE I. DEFINITIONS
  AND ACCOUNTING TERMS

	
1

	
 

	
 

	
 

	
 

	
 

	
1.01

	
Defined
  Terms

	
1

	
 

	
1.02

	
Other Interpretive
  Provisions

	
13

	
 

	
1.03

	
Accounting
  Terms

	
13

	
 

	
1.04

	
Rounding

	
14

	
 

	
1.05

	
Times of Day

	
14

	
 

	
1.06

	
UCC Terms

	
14

	
 

	
 

	
 

	
 

	
ARTICLE II. TERM
  LOAN FACILITY

	
14

	
 

	
 

	
 

	
 

	
 

	
2.01

	
Term Loan

	
14

	
 

	
2.02

	
Borrowings,
  Conversions and Continuations of Loans

	
14

	
 

	
2.03

	
Prepayments

	
16

	
 

	
2.04

	
Repayment of
  Loans

	
16

	
 

	
2.05

	
Interest

	
16

	
 

	
2.06

	
Facility Fee

	
17

	
 

	
2.07

	
Computation
  of Interest and Fees

	
17

	
 

	
2.08

	
Evidence of
  Debt

	
17

	
 

	
2.09

	
Payments
  Generally; Administrative Agent’s Clawback

	
17

	
 

	
2.10

	
Sharing of
  Payments by Lenders

	
19

	
 

	
2.11

	
Settlement
  Among Lenders

	
19

	
 

	
 

	
 

	
 

	
ARTICLE III. TAXES,
  YIELD PROTECTION AND ILLEGALITY

	
20

	
 

	
 

	
 

	
 

	
 

	
3.01

	
Taxes

	
20

	
 

	
3.02

	
Illegality

	
21

	
 

	
3.03

	
Inability to
  Determine Rates

	
22

	
 

	
3.04

	
Increased
  Costs; Reserves on LIBOR Loans

	
22

	
 

	
3.05

	
Compensation
  for Losses

	
23

	
 

	
3.06

	
Mitigation
  Obligations; Replacement of Lenders

	
24

	
 

	
3.07

	
Survival

	
24

	
 

	
 

	
 

	
 

	
ARTICLE IV. CONDITIONS PRECEDENT TO LOANS

	
24

	
 

	
 

	
 

	
 

	
 

	
4.01

	
Conditions
  of Initial Term Advance

	
24

	
 

	
4.02

	
Conditions
  to Delayed Draw Advance

	
26

	
 

	
 

	
 

	
 

	
ARTICLE V. REPRESENTATIONS
  AND WARRANTIES

	
27

	
 

	
 

	
ARTICLE VI. AFFIRMATIVE
  COVENANTS

	
27

	
 

	
 

	
 

	
 

	
 

	
6.01

	
Financial
  Statements

	
27

	
 

	
6.02

	
Notices

	
27

	
 

	
6.03

	
Maintenance
  of Insurance

	
27

	
 

	
6.04

	
Use of
  Proceeds

	
28

	
 

	
6.05

	
Additional
  Loan Parties; Additional Properties

	
28

	
 

	
6.06

	
Cash
  Management

	
30

	
 

	
6.07

	
Information
  Regarding the Collateral

	
30

	
 

	
6.08

	
Physical
  Inventories

	
30

	
 

	
6.09

	
Further
  Assurances

	
30

i

	
 

	
 

	
 

	
 

	
ARTICLE VII. NEGATIVE COVENANTS

	
30

	
 

	
 

	
ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES

	
30

	
 

	
 

	
 

	
 

	
 

	
8.01

	
Events of Default

	
30

	
 

	
8.02

	
Remedies Upon Event of
  Default

	
32

	
 

	
8.03

	
Application of Funds

	
33

	
 

	
 

	
 

	
 

	
ARTICLE IX. COLLATERAL

	
33

	
 

	
 

	
 

	
 

	
 

	
9.01

	
Security Interest

	
33

	
 

	
9.02

	
Additional Security

	
35

	
 

	
9.03

	
Continued Priority of
  Security Interest

	
35

	
 

	
9.04

	
Other Collateral Matters

	
36

	
 

	
 

	
 

	
 

	
ARTICLE X. ADMINISTRATIVE AGENT

	
36

	
 

	
 

	
 

	
 

	
 

	
10.01

	
Appointment and Authority

	
36

	
 

	
10.02

	
Rights as a Lender

	
37

	
 

	
10.03

	
Exculpatory Provisions

	
37

	
 

	
10.04

	
Reliance by Agents

	
38

	
 

	
10.05

	
Delegation of Duties

	
38

	
 

	
10.06

	
Resignation of Agents

	
38

	
 

	
10.07

	
Non-Reliance on
  Administrative Agent and Other Lenders

	
39

	
 

	
10.08

	
Administrative Agent May
  File Proofs of Claim

	
39

	
 

	
10.09

	
Collateral and Guaranty
  Matters

	
39

	
 

	
10.10

	
Notice of Transfer

	
40

	
 

	
10.11

	
Reports and Financial
  Statements

	
40

	
 

	
10.12

	
Agency for Perfection

	
41

	
 

	
10.13

	
Indemnification of Agents

	
41

	
 

	
10.14

	
Relation among Lenders

	
41

	
 

	
 

	
 

	
 

	
ARTICLE XI. MISCELLANEOUS

	
41

	
 

	
 

	
 

	
 

	
 

	
11.01

	
Amendments, Etc

	
41

	
 

	
11.02

	
Notices; Effectiveness;
  Electronic Communications

	
43

	
 

	
11.03

	
No Waiver; Cumulative
  Remedies

	
44

	
 

	
11.04

	
Expenses; Indemnity;
  Damage Waiver

	
44

	
 

	
11.05

	
Payments Set Aside

	
re46

	
 

	
11.06

	
Successors and Assigns

	
46

	
 

	
11.07

	
Treatment of Certain
  Information; Confidentiality

	
49

	
 

	
11.08

	
Right of Setoff

	
50

	
 

	
11.09

	
Interest Rate Limitation

	
50

	
 

	
11.10

	
Counterparts; Integration;
  Effectiveness

	
50

	
 

	
11.11

	
Survival

	
51

	
 

	
11.12

	
Severability

	
51

	
 

	
11.13

	
Replacement of Lenders

	
51

	
 

	
11.14

	
Governing Law;
  Jurisdiction; Etc

	
52

	
 

	
11.15

	
Waiver of Jury Trial

	
53

	
 

	
11.16

	
No Advisory or Fiduciary
  Responsibility

	
53

	
 

	
11.17

	
USA PATRIOT Act Notice

	
53

	
 

	
11.18

	
Time of the Essence

	
54

	
 

	
11.19

	
Press Releases

	
54

	
 

	
11.20

	
Additional Waivers

	
54

ii

	
 

	
 

	
 

	
 

	
 

	
11.21

	
No Strict Construction

	
55

	
 

	
11.22

	
Attachments

	
55

iii

	
 

	
 

	
 

	
SCHEDULES

	
 

	
 

	
 

	
 

	
 

	
2.01

	
Commitments and Applicable
  Percentages

	
 

	
 

	
 

	
 

	
11.02

	
Administrative Agent’s
  Office; Certain Addresses for Notices

	
 

	
 

	
 

	
 

	
 

	
 

	
EXHIBITS

	
 

	
 

	
 

	
 

	
 

	
Form of:

	
 

	
 

	
 

	
 

	
A

	
Loan Notice

	
 

	
 

	
 

	
 

	
B

	
Term Note

	
 

	
 

	
 

	
 

	
C

	
Delayed Draw Advance
  Borrowing Request

	
 

	
 

	
 

	
 

	
D

	
Assignment and Assumption

	
 

	
 

	
 

	
 

	
E

	
Joinder Agreement

iv

TERM LOAN AND SECURITY AGREEMENT

          This TERM
LOAN AND SECURITY AGREEMENT (“Agreement”)
is entered into as of May 21, 2007, among 

          WHITEHALL JEWELLERS, INC. (the
“Borrower”), a
Delaware corporation having its principal place of business at 125 South Wacker, #2600, Chicago, Illinois 60606; 

          the lending institutions listed on Schedule
2.01 (collectively, the “Lenders”);

          LASALLE BANK NATIONAL ASSOCIATION
(“LaSalle”), as administrative agent (in such capacity,
the “Administrative Agent”) and as collateral agent (in such capacity,
the “Collateral Agent”)
for the Agents (as hereinafter defined)
and the Lenders; and 

          BANK OF AMERICA, N.A. and WELLS
FARGO RETAIL FINANCE, LLC, as
co-managing agents (collectively, in such capacity, the “Managing Agents”). 

RECITALS:

          A. Borrower is party to a certain Third
Amended and Restated Credit Agreement dated as of February 20, 2007, as amended by that certain First Amendment to
Third Amended and Restated Credit Agreement dated as of the date hereof (as the
same may be further amended, modified or supplemented from time to time, the “Revolving Credit Agreement”),
by and among the Borrower, LaSalle Bank
National Association, as administrative agent and collateral agent (in such
capacity, the “Revolving Credit
Agent”), and the lenders
(the “Revolving Credit Lenders”)
party thereto. 

          B. The Borrower has requested that the
Lenders agree to make one or more term loans to the Borrower in order to permit
Borrower to repay certain subordinated indebtedness and provide it with
additional working capital. 

          C. The Lenders are willing to provide term
loan financing on the terms and conditions set forth herein. 

          NOW THEREFORE, the Borrower, the Lenders and
the Agents (as defined herein) agree as follows: 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS  

          1.01 Defined Terms. Terms used and not
otherwise defined in this
Agreement shall have the meanings provided in the Revolving Credit Agreement.
As used in this Agreement, the following terms shall have the meanings set
forth below: 

          “ACH” means automated clearing house
transfers. 

          “Administrative Agent” has the meaning
provided in the Recitals to this Agreement. 

          “Administrative Agent’s Office”
means
the Administrative Agent’s address and, as appropriate, account as set forth on
Schedule 10.02, or such other address or account as the
Administrative Agent may from time to time notify the Borrower, the Managing
Agents and the Lenders. 

1

          “Affiliate” means, with respect to any
Person, (i) another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with
the Person specified, (ii) any director, officer, managing member, partner,
trustee, or beneficiary of that Person, (iii) any other Person directly or
indirectly holding 10% or more of any class of the Equity Interests of that
Person, and (iv) any other Person 10% or more of any class of whose Equity
Interests is held directly or indirectly by that Person. 

          “Agent(s)” means, collectively, the
Administrative Agent, Collateral Agent and Managing Agents. 

          “Aggregate Commitments” means, at any
time, the sum of the Commitments at such time. As of the Closing Date, the
Aggregate Commitments are $35,000,000.00. 

          “Agreement” means this Term Loan and
Security Agreement as such may be amended, amended and restated, modified or
supplemented from time to time. 

          “Applicable Margin” means (a) 1.25%
with respect to LIBOR Loans and (b) (-0.125%) with respect to Base Rate Loans. 

          “Applicable Percentage” means with
respect to each Lender, that percentage of the Commitments of such Lender
hereunder to make Loans to the Borrower, in each case as the context provides.
If the Commitment of such Lender to make Loans has been terminated pursuant to Section
8.02 or if the Aggregate Commitments have expired, then the Applicable
Percentage of each Lender shall be determined based on the Applicable
Percentage of such Lender most recently in effect, giving effect to any
subsequent assignments. The initial Applicable Percentage of each Lender is set
forth opposite the name of such Lender on Schedule 2.01, as
modified upon the execution and delivery of an Assignment and Assumption pursuant
to which a Person becomes a Lender and a party hereto, as applicable. 

          “Approved Fund” means 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. 

          “Assignee Group” means 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” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 11.06(b)), and accepted by the Administrative Agent,
in substantially the form of Exhibit
D or any other
form approved by the Administrative Agent. 

          “Base Rate” means the higher of (a)
the annual rate of interest announced from time to time by LaSalle at its head
office in Chicago, Illinois, as its “Prime Rate” and (b) the Federal Funds
Effective Rate plus 0.5% per annum. “Prime Rate” shall mean on any day a
fluctuating rate per annum equal to the higher of (a) the rate of interest
designated by the Agent from time to time as its “Prime Rate,” and (b) a rate
of interest equal to the sum of (i) the Federal Funds Rate, plus (ii) 0.5%. The
Prime Rate is not necessarily the lowest rate of interest charged by the
Administrative Agent in connection with extensions of credit. Changes in the
rate of interest on a Base Rate Loan shall take effect simultaneously with each
change in the Prime Rate. The applicable Prime Rate shall be determined by the
Administrative Agent in its sole judgment, and such determination shall be
conclusive absent manifest error. 

          “Base Rate Loan” means a Loan that
bears interest based on the Base Rate. 

2

          “Borrower” has the meaning provided in
the introductory paragraph hereto. 

          “Borrowing” means a borrowing consisting
of simultaneous Loans of the same Type
and, in the case of LIBOR Loans, having the same Interest Period, made by each
of the Lenders pursuant to Section 2.01. 

          “Business
Day” means (i) any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and,
(ii) if such day relates to any LIBOR Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank market. 

          “Cash Management Services” means any
one or more of the following types or services or facilities provided to any
Loan Party by the Administrative Agent or any of its Affiliates: (a) ACH
transactions, (b) cash management services, including, without limitation,
controlled disbursement services, treasury, depository, overdraft, and
electronic funds transfer services, (c) foreign exchange facilities, (d) credit
or debit cards, and (e) merchant services. 

          “CFC” means a Person that is a
controlled foreign corporation under Section
957 of the Code. 

          “Change in Law” means the occurrence,
after the date of this Agreement, of any of the following: (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in any
law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance
of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority. 

          “Closing Date” means the first date
all the conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 11.01.

          “Code” means the Internal Revenue Code
of 1986, and
the regulations promulgated thereunder, as amended and in effect. 

          “Collateral” shall have the meaning
assigned to such term in Section 9.01. 

          “Collateral Agent” has the meaning
provided in the Recitals to this Agreement. 

          “Commitment” means, as to each Lender,
its obligation to make Loans to the Borrower pursuant to Section 2.01, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 2.01 or
in an executed Assignment and Assumption pursuant to which a Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.  

          “Consent” means actual consent given
by a Lender from whom such consent is sought; or the passage of seven (7)
Business Days from receipt of written notice to a Lender from the
Administrative Agent of a proposed course of action to be followed by the
Administrative Agent without such Lender’s giving the Administrative Agent
written notice of that Lender’s objection to such course of action. 

          “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto. 

3

          “Credit Party” or “Credit
Parties”
means (a) individually, (i) each Lender and its Affiliates, (ii) each of the
Agents, (iii) each beneficiary of each indemnification obligation undertaken by
any Loan Party under any Loan Document, (iv) any other Person to whom
Obligations under this Agreement and any other Loan Documents are owing, and
(v) the successors and assigns of each of the foregoing, and (b) collectively,
all of the foregoing. 

          “Credit Party Expenses” means, without
limitation: 

          (a) all reasonable out-of-pocket expenses
incurred by the Agents in connection with this Agreement and the other Loan
Documents, including without limitation 

	
 

	
 

	
 

	
          (i) the reasonable fees, charges and
  disbursements of (A) counsel for any of the Agents, (B) outside consultants
  for any of the Agents, (C) appraisers, (D) commercial finance examinations, and (E) all such out-of-pocket
  expenses incurred during any workout, restructuring or negotiations in
  respect of the Obligations; 

	
 

	
 

	
 

	
          (ii) in connection with (A) the preparation,
  negotiation, administration, management, execution and delivery of this
  Agreement and the other Loan Documents or any amendments, modifications or waivers
  of the provisions thereof (whether or not the transactions contemplated
  hereby or thereby shall be consummated), (B) the enforcement or protection of their rights in connection with this
  Agreement or the Loan Documents or efforts to preserve, protect, collect, or
  enforce the Collateral, or (C) any workout, restructuring or negotiations in
  respect of any Obligations; 

          (b) all reasonable out-of-pocket expenses
incurred by the Credit Parties who are not the Agents, after the occurrence and
during the continuance of an Event of Default, provided that such Credit
Parties shall be entitled to reimbursement for no more than one counsel
representing all such Credit Parties.  

          “Debtor Relief Laws” means the
Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally. 

          “Default” means any event or condition
that constitutes an Event of Default or that, with the giving of any notice,
the passage of time, or both, would be an Event of Default. 

          “Default Rate” means: 

          (a) with respect to a LIBOR Loan, an interest
rate equal to the interest rate (including any Applicable Margin) otherwise
applicable to such LIBOR Loan plus two percent (2%) per annum;  

          (b) with respect to a Base Rate Loan, an interest
rate equal to the interest rate (including any Applicable Margin) otherwise
applicable to such Base Rate Loan, plus (iii) two percent (2%) per annum; 

          (c) with respect to all Obligations other than
those specified above, an interest rate equal to (i) the Base Rate plus (ii)
the highest Applicable Margin, if any, applicable to Base Rate Loans, plus
(iii) two percent (2%) per annum. 

          “Defaulting Lender” means any Lender
that (a) has failed to fund any portion of the Loans, within one Business Day
of the date required to be funded by it hereunder, (b) has otherwise failed to
pay 

4

over to the Administrative
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 (c) has been deemed insolvent or become the subject of a
bankruptcy or insolvency proceeding. 

          “Delayed Draw Advance” has the meaning
provided in Section 2.01(b). 

          “Delayed Draw Advance Borrowing Request”
has the meaning provided in Section 2.01(b). 

          “Delayed Draw Advance Amount” means:

          (a) $-0- if Borrower shall receive an aggregate
of $10,000,000 or more in Equity Proceeds and the proceeds of Subordinated
Indebtedness after the Closing Date and on or prior to May 31, 2007; and 

          (b) if Borrower shall not receive an aggregate of
$10,000,000 or more in Equity Proceeds and the proceeds of Subordinated
Indebtedness after the Closing Date and on or prior to May 31, 2007, the
positive difference between (x) $10,000,000 and (y) the aggregate amount of
Equity Proceeds and proceeds of Subordinated Indebtedness actually received by
Borrower during such period (which amount under clause (y) shall never be
calculated as less than $-0-). 

          “Dollars” and “$” mean
lawful money of the United States. 

          “Domestic Subsidiary” means any
Subsidiary that is organized under the laws of any political subdivision or
jurisdiction subject to the laws of the United States. 

          “Eligible Assignee” means (a) a Credit
Party or any of its Affiliates; (b) a bank, insurance company, or company
engaged in the business of making commercial loans, which Person, together with
its Affiliates, has a combined capital and surplus in excess of $250,000,000;
(c) an Approved Fund; (d) any Person to whom a Credit Party assigns its rights
and obligations under this Agreement as part of an assignment and transfer of
such Credit Party’s rights in and to a material portion of such Credit Party’s
portfolio of asset based credit facilities, and (e) any other Person (other
than a natural person) approved by (i) the Administrative Agent, and (ii)
unless an Event of Default has occurred and is continuing, the Borrower (each
such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include a Loan
Party or any of the Loan Parties’ Affiliates or Subsidiaries. 

          “Equity Interests” means, with respect
to any Person, all of the shares of capital stock, limited partnership
interests, limited liability company interests, general partnership interests
or other ownership or profit interests in, such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of
such shares or interests of (or other ownership or profit interests in) such
Person, all of the securities convertible into or exchangeable for shares of
capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of
such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of
determination. 

          “Equity Proceeds” means proceeds
received by the Borrower from the issuance or sale of its Equity Interests or
capital contributions from the holders of its Equity Interests, in each case on
terms and conditions acceptable to Administrative Agent in its reasonable
credit discretion. 

5

          “Event of Default” has the meaning
provided in Section 8.01. An Event of Default shall be deemed to be
continuing unless and until that Event of Default has been duly waived as
provided in Section 11.03 hereof. 

          “Excluded Taxes” means, with respect
to the Administrative Agent, any Lender, or any other recipient of any payment
to be made by or on account of any obligation of the Borrower hereunder, (a)
taxes imposed on or measured by its overall net income (however denominated),
and franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable Lending Office is located, (b)
any branch profits taxes imposed by the United States or any similar tax
imposed by any other jurisdiction in which the Borrower is located and (c) in
the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower under Section 11.13), any withholding tax that is imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender
becomes a party hereto (or designates a new Lending Office) or is attributable
to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 3.01(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section
3.01(a). 

          “Facility Fee” has the meaning
provided in Section 2.06. 

          “Federal Funds Effective Rate” means,
for any day, the rate set forth in the weekly statistical release designated as
H. 15(519), or any successor publication, published by the Federal Reserve Bank of New York (including any
such successor publication, “H. l5(519)”) on the preceding Business Day opposite the caption “Federal Funds
(Effective)”; or, if for any relevant day such rate is not so published on any
such preceding Business Day, the rate for such day will be the arithmetic mean
as determined by the Administrative Agent of the rates for the last transaction
in overnight Federal funds arranged prior to 9:00 a.m. (New York, New York
time) on that day by each of three leading brokers of Federal Funds
transactions in New York, New York selected by the Administrative Agent. 

          “Foreign Lender” means any Lender that
is organized under the laws of a jurisdiction other than that in which the
Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed
to constitute a single jurisdiction. 

          “FRB” means the Board of Governors of
the Federal Reserve System of the
United States. 

          “Fund”
means 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 business. 

          “GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are
applicable to the circumstances as of the date of determination, consistently
applied. 

          “Governmental Authority” means the
government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, 

6

regulatory or administrative
powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank). 

          “Guarantee” means, as to any Person,
any (a) any obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part),
or (b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning. 

          “Indemnified Taxes” means Taxes other
than Excluded Taxes. 

          “Indemnitees”
has the meaning provided in Section 11.04(b). 

          “Information”
has the meaning provided in Section 11.07. 

          “Initial Term Advance” means the
initial Loan made by the Lenders on the Closing Date in the Initial Term
Advance Amount, as provided in Section 2.01(a). 

          “Initial Term Advance Amount” means
$25,000,000. 

          “Intellectual Property” means all
present and future: trade secrets, know-how and other proprietary information;
trademarks, trademark applications, internet domain names, service marks, trade
dress, trade names, business names, designs, logos, slogans (and all
translations, adaptations, derivations and combinations of the foregoing)
indicia and other source and/or business identifiers, and all registrations or
applications for registrations which have heretofore been or may hereafter be
issued thereon throughout the world; copyrights and copyright applications;
(including copyrights for computer programs) and all tangible and intangible
property embodying the copyrights, unpatented inventions (whether or not
patentable); patents and patent applications; industrial design applications
and registered industrial designs; license agreements related to any of the
foregoing and income therefrom; books, records, writings, computer tapes or
disks, flow diagrams, specification sheets, computer software, source codes,
object codes, executable code, data, databases and other physical
manifestations, embodiments or incorporations of any of the foregoing; all
other intellectual property; and all common law and other rights throughout the
world in and to all of the foregoing. 

          “Intercreditor
Agreement” means the Third Amended and Restated Intercreditor and Lien
Subordination Agreement date as of the Closing Date by and among the
Administrative Agent, on behalf of the Lenders and the Agents, the Revolving
Credit Agent, on behalf of the Revolving Credit Lenders 

7

and Revolving Credit Agent, PWJ
Lending LLC, as agent for the lenders under the Subordinate Facility, PWJ
Lending LLC, in its individual capacity as creditor under the Term Loan L/C
Reimbursement Agreement, and certain other parties thereto, acknowledged by the
Borrower, as amended, modified or supplemented
from time to time.

          “Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a LIBOR Loan exceeds three
months, the date that falls every three months after the beginning of
such Interest Period shall also be an Interest Payment Date; and (b) as to any
Base Rate Loan, the last Business Day of each month and the Maturity Date.

          “Interest
Period” means, as to each LIBOR Loan, the period commencing on the date
such LIBOR Loan is disbursed or converted
to or continued as a LIBOR Loan and ending on the date one, two, three
or six months thereafter, as selected by the Borrower in its Loan Notice; provided
that:

	
 

	
 

	
 

	
          (i)
  any Interest Period that would otherwise end on a day that is not a Business
  Day shall be extended to the next
  succeeding Business Day unless such Business Day falls in another calendar
  month, in which case such Interest Period shall end on the next preceding
  Business Day;

	
 

	
 

	
 

	
          (ii)
  any Interest Period that begins on the last Business Day of a calendar month
  (or on a day for which there is no numerically corresponding day in the
  calendar month at the end of such Interest Period) shall end on the last
  Business Day of the calendar month at the end of such Interest Period;

	
 

	
 

	
 

	
          (iii)
  no Interest Period shall extend beyond the Maturity Date; and

	
 

	
 

	
 

	
          (iv)
  notwithstanding the provisions of clause (iii), no Interest Period shall have
  a duration of less than one (1) month,
  and if any Interest Period applicable to a LIBOR Loan would be for a
  shorter period, such Interest Period shall not be available hereunder.

For purposes hereof, the date of
a Borrowing that is a LIBOR Loan initially shall be the date on which such
Borrowing as a LIBOR Loan is made and thereafter shall be the effective date of
the most recent conversion or continuation of such LIBOR Loan.

          “IRS”
means the United States Internal Revenue Service.

          “Joinder
Agreement” means an agreement, in the form attached hereto as Exhibit E pursuant to which, among other things,
a Subsidiary of the
Borrower becomes a party to, and bound by the terms of, this Agreement and/or the other Loan Documents in
the same capacity and to the same extent as either a Borrower or a
guarantor, as the Administrative Agent may determine.

          “LaSalle”
has the meaning provided in the preamble to this Agreement

          “Laws”
means each international, foreign, Federal, state and local statute, treaty,
rule, guideline, regulation, ordinance, code and administrative or
judicial precedent or authority, including the interpretation or administration
thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and
each applicable administrative order, directed duty, request, license,
authorization and permit of, and agreement with, any Governmental Authority, in
each case whether or not having the force
of law.

          “Lender”
has the meaning provided in the introductory paragraph hereto.

8

          “Lending
Office” means, as to any Lender, the office or offices of which such Lender
may from time to time notify the Borrower and the Administrative Agent.

          “LIBOR”
means a rate of interest determined by Administrative Agent equal to the
offered rate for deposits in US Dollars for the applicable Interest
Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time), on the second full LIBOR Business Day next
preceding the first day of such Interest Period (unless such date is not a
Business Day, in which event the next succeeding Business Day will be used). If
such interest rates shall cease to be available from Telerate News Service,
LIBOR shall be determined from such financial reporting service or other
information as shall be acceptable to Administrative
Agent.

          “LIBOR
Business Day” means a Business Day on which banks in the City of London are
generally open for interbank or foreign exchange transactions.

          “LIBOR
Loan” means a Loan or any portion thereof bearing interest by reference to
LIBOR. 

          “Loan” means an extension of credit by a Lender to the Borrower.

          “Loan Account” has the meaning assigned to such term in Section 2.08(a).

          “Loan
Documents” means this Agreement, each Term Note, and any other instrument
or agreement now or hereafter executed and
delivered in connection herewith, each as amended and in effect from time to
time.

          “Loan
Notice” means a notice of (a) a Borrowing (including a Delayed Draw Advance
Borrowing Request), (b) a conversion of Loans from one Type to the
other, or (c) a continuation of LIBOR Loans, which, if in writing, shall be
substantially in the form of Exhibit A.

          “Loan
Parties” means, collectively, the Borrower and each guarantor.

          “Majority
Lenders” means, as of any date of determination, Lenders holding 51% or
more of the Aggregate Commitments or, if the commitment of each Lender
to make Loans have been terminated pursuant
to Section 8.02, Lenders holding in the aggregate 51% or more of the
Obligations; provided that the Commitment of, and the portion of the
Obligations held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Majority Lenders.

          “Managing
Agents” shall have the meaning provided in the Recitals to this Agreement.

          “Master
Letter of Credit Agreement” means the Master Letter of Credit Agreement
dated the date hereof between PWJ Lending LLC and LaSalle, pursuant to
which the Term Loan Letter of Credit was issued
by LaSalle.

          “Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the business, assets, properties, or financial condition
of the Loan Parties and their Subsidiaries taken as a whole; (b) a material
impairment of the ability of any Loan Party to perform its obligations under
any Loan Document to which it is a party; or (c) a material impairment of the
rights and remedies of the Agents or the Lenders under any Loan Document or a
material adverse effect upon the legality, validity, binding effect or
enforceability against any Loan Party of any Loan Document to which it is a
party. In determining whether any individual event would result in a Material
Adverse Effect, notwithstanding that such
event in and of itself does not have such effect, a Material Adverse Effect
shall

9

be deemed to have occurred if
the cumulative effect of such event and all other then existing events would result
in a Material Adverse Effect.

          “Maturity
Date” means November 19, 2007.

          “Maximum
Rate” has the meaning provided therefor in Section 11.09. 

          “Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto. 

          “Non-Consenting Lender” has the meaning
provided therefor in Section 11.01.

          “Obligations”
means (a) all advances to, and debts (including principal, interest, fees, costs,
and expenses), liabilities, obligations,
covenants, indemnities, and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan (including payments in respect
of reimbursement of disbursements, interest thereon and obligations to provide
cash collateral therefor), whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the commencement
by or against any Loan Party or any Affiliate thereof of any proceeding under
any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding, and (b) any Other Liabilities.

          “Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of formation or organization and operating
agreement; (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity, and (d) in
each case, all shareholder or other equity holder agreements, voting trusts and
similar arrangements to which such Person is a party or which is applicable to
its Equity Interests and all other arrangements relating to the Control or
management of such Person.

          “Other
Liabilities” means (a) any Cash Management Services furnished to any of the
Loan Parties or any of their Subsidiaries and/or (b) any transaction
with any Agent, any Lender or any of their respective
Affiliates, which arises out of any bank product entered into with any Loan
Party and any such Person, as each may be amended from time to time

          “Other
Taxes” means all present or future stamp or documentary taxes or any other
excise, franchise or property taxes, charges or similar levies arising from any
payment made hereunder or under any other
Loan Document or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document.

          “Participant”
has the meaning provided in Section 11.06(d).

          “Participation
Register” has the meaning provided therefor in Section 11.06(d).

          “Permitted
Restricted Subordinated Debt Payments” has the meaning provided in the
Intercreditor Agreement.

10

          “Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, limited partnership,
Governmental Authority or other entity.

          “Register”
has the meaning provided in Section 11.06(c).

          “Related
Parties” means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of
such Person and of such Person’s Affiliates.

          “Reports”
has the meaning provided in Section 10.11(a).

          “Responsible
Officer” means the chief executive officer, president, chief financial
officer, vice president, treasurer or assistant treasurer of a Loan Party or
any of the other individuals designated in writing to the Administrative Agent
by an existing Responsible Officer of a Loan Party as an authorized signatory
of any certificate or other document to be delivered hereunder. Any document
delivered hereunder that is signed by a
Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership, limited liability company
and/or other action on the part of such
Loan Party and such Responsible Officer shall be conclusively presumed to have
acted on behalf of such Loan Party.

          “SEC”
means the Securities and Exchange Commission, or any Governmental Authority succeeding
to any of its principal functions.

          “Securities
Laws” means 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 PCAOB, in each case as they may be
amended from time to time.

          “Settlement
Date” has the meaning provided in Section 2.10.

          “Subordinate
Facility” means that certain Second Amended and Restated Term Loan Credit Agreement dated as of February 20, 2007 by and
among the Borrower, PWJ Lending LLC, as agent, and the lenders from time
to time party thereto, as amended, modified or supplemented from time to time.

          “Subordinated
Indebtedness” means Indebtedness which is expressly subordinated in right
of payment to the prior payment in
full of the Obligations and which is in form and on terms reasonably satisfactory
to the Administrative Agent.

          “Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the Equity Interests
having ordinary voting power for the election of directors or other governing
body or control of such subsidiary are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of a Loan Party.

          “Taxes”
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties
applicable thereto.

          “Term
Loan” has the meaning provided in Section 2.01.

11

          “Term
Loan Facility” means the credit facility provided by the Lenders with
respect to the Term Loan.

          “Term
Loan Facility Amount” means the amount of up to $35,000,000.

          “Term
Loan Letter of Credit” means the standby letter of credit issued by LaSalle
for the benefit of, and the original of which has been delivered to, the
Administrative Agent, for the benefit of the Credit Parties, which is
acceptable in all respects to the Administrative Agent and which provides,
without limitation, the following:

          (a) an original face amount of
$35,000,000, with multiple draws permitted upon the occurrence of any Event of Default and on the Termination Date in an
amount equal to the lesser of such face amount and the then outstanding
principal amount of the Term Loan;

          (b) an expiry date of November 21,
2007;

          (c) issuance fees customary for
letters of credit of this type and size; and

          (d) a letter of credit fee in the amount of
$131,250.00 (a portion of which
may be rebated in accordance with the term of the Master Letter of
Credit Agreement).

          “Term
Loan L/C Reimbursement Agreement” means the Reimbursement Agreement between
the Borrower and PWJ Lending LLC
with respect to draws made under the Term Loan Letter of Credit.

          “Term
Note” has the meaning provided in Section 2.08(b).

          “Termination
Date” means the earliest to occur of (i) the Maturity Date, (ii) the date
on which the maturity of the Obligations is accelerated (or deemed
accelerated) and the Commitments are irrevocably terminated (or deemed
terminated) in accordance with Article VII.

          “Type”
means, with respect to a Loan, its character as a Base Rate Loan or a LIBOR
Loan.

          “UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in
effect from time to time in the State of Illinois; provided, however,
that if a term is defined in Article 9 of the Uniform
Commercial Code differently than in another article thereof, the term shall
have the meaning set forth in Article 9; provided further
that, if by reason of mandatory provisions of law, perfection, or the effect of
perfection or non-perfection, of a security interest in any Collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of Illinois, “Uniform
Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection or availability of such remedy, as the case may
be.

          “Unanimous
Lenders” means, as of any date of determination, Lenders holding 100% of
the Aggregate Commitments or, if the Commitment of each Lender to make Loans
have been terminated pursuant to Section 8.02, Lenders holding in the
aggregate 100% of the Obligations; provided that the Commitment of, and the portion of the Obligations held or deemed held
by, any Defaulting Lender shall be excluded for purposes of making a
determination of Unanimous Lenders.

          “United
States” and “U.S.” mean the United States of America.

12

          1.02 Other Interpretive Provisions. With
reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan
Document:

          (a) The definitions of terms herein
shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed to have the
same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other
document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein or in any other Loan Document),
(ii) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof and “hereunder,”
and words of similar import when used in any Loan Document, shall be construed
to refer to such Loan Document in its entirety and not to any particular
provision thereof, (iv) all references in a Loan Document to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, the Loan Document in which such references
appear, (v) any reference to any law shall include all statutory and regulatory
provisions consolidating, amending replacing or interpreting such law and any
reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time,
and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

          (b) In the computation of periods of time
from a specified date to a later
specified date, the word “from” means “from and including;” the
words “to” and “until” each mean “to but excluding;” and the
word “through” means “to and including.”

          (c) Section headings herein and in the other
Loan Documents are included
for convenience of reference only and shall not affect the interpretation of
this Agreement or any other Loan Document.

          1.03 Accounting Terms

          (a) Generally. All
accounting terms not specifically or completely defined herein shall be construed
in conformity with, and all financial data (including financial ratios and
other financial calculations) required to
be submitted pursuant to this Agreement shall be prepared in conformity with,
GAAP applied on a consistent basis, as in effect from time to time, applied in
a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein.

          (b) Changes in GAAP. If
at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrower or
the Majority Lenders shall so request, the
Administrative Agent, the Lenders and the Borrower shall negotiate in
good faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of the
Majority Lenders); provided that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents required
under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.

13

          1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying
the result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number).

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

          1.06 UCC
Terms. When used herein, (a) the terms “Account”, “Account
Debtor”, “Certificated Security”, “Chattel Paper”, “Commercial Tort Claim”,
“Deposit Account”, “Document”, “Electronic Chattel Paper”, “Equipment”,
“Financial Asset”, “Fixtures”, “General Intangibles”, “Goods”, “Health-Care-Insurance
Receivable”, “Inventory”,
“Instrument”, “Investment Property”, “Letter-of-Credit Rights”, “Payment Intangibles”,
“Proceeds”,
“Security Entitlement”, “Supporting Obligations” and “Uncertificated
Security” have the respective meanings assigned thereto in the UCC.

ARTICLE II. 

TERM LOAN FACILITY

          2.01 Term Loan.

          (a) Subject to the terms and
conditions set forth in this Agreement, each Lender agrees to loan (the “Term
Loan”), to Borrower such Lender’s Applicable Percentage of the Term
Loan Facility Amount. The Initial Term Advance will be funded on the Closing
Date and the balance may be funded in the form of a Delayed Draw Advance
subject to the terms hereof. The aggregate amount of the Initial Term Advance and the Delayed Draw Advance shall
never exceed the Term Loan Facility Amount and the Applicable Percentage
of amount outstanding under the Term Loan of any Lender shall not at any time
exceed its separate Commitment therefor. Other than with respect to the Delayed
Draw Advance (described in Section 2.01(b) below), the Term Loan is not
a revolving credit facility and may not be redrawn,
and any repayments or prepayments of principal on the Term Loan shall
permanently reduce the Term Loan. The obligations of the Lenders
hereunder are several and not joint nor joint and several. The Borrower
irrevocably authorizes the Administrative Agent and Lenders to disburse the
proceeds of the Initial Term Advance on the Closing Date in accordance with the
terms of this Agreement.

          (b) Subject to the terms and conditions of
this Agreement, at any time
prior to May 30, 2007, the Lenders
agree to make one additional advance (the “Delayed
Draw Advance”) to the Borrower in an amount not to exceed
the Delayed Draw Advance Amount. The Delayed Draw Advance shall be requested by an irrevocable written notice in the
form of the borrowing request attached as Exhibit
C (a “Delayed Draw Advance Borrowing Request”) by an
Authorized Person specifying the amount and proposed date of the Delayed
Draw Advance, delivered to the Administrative Agent at least thirty (30) days
prior to the requested funding date (such request becoming effective upon
receipt). After receipt of the Delayed Draw Advance Borrowing Request, Lenders
shall make the requested Delayed Draw Advance
available to Borrower on the requested funding date, subject to the conditions
set forth herein to the making of all financial accommodations and in Section
4.02 with respect to the Delayed Draw Advance. 

          2.02 Borrowings, Conversions and Continuations
of
Loans.

          (a) Loans shall be either Base Rate
Loans or LIBOR Loans as the Borrower may request subject to and in accordance with this Section 2.02. Subject to
the other provisions of this Section 2.02, Borrowings of more
than one Type may be incurred at the same time.

14

          (b) Each Loan, each conversion of Loans from
one Type to the other, and
each continuation of LIBOR Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Administrative Agent not later than 12:00 noon (i) three (3) Business Days
prior to the requested date of any Loan of, conversion to or continuation of
LIBOR Loans or of any conversion of LIBOR Loans to Base Rate Loans, and (ii)
one (1) Business Day prior to the requested date of any Borrowing of
Base Rate Loans. Each telephonic notice by the Borrower pursuant to this Section
2.02(b) must be confirmed promptly by delivery to the Administrative Agent
of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of,
conversion to or continuation of LIBOR Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof. Each Loan
Notice (whether telephonic or written) shall specify (i) whether the
Borrower is requesting a Loan, a conversion of Loans from one Type to the
other, or a continuation of LIBOR Loans, (ii) the requested date of the Loan,
conversion or continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Loans to be borrowed, converted or continued,
(iv) the Type of Loans to be borrowed or to which existing Loans are to be
converted, and (v) if applicable, the duration of the Interest Period with
respect thereto. If the Borrower fails to specify a Type of Loan in a Loan
Notice or if the Borrower fails to give a timely notice requesting a conversion
or continuation, then the applicable Loans shall be made as, or converted to,
Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be
effective as of the last day of the Interest Period then in effect with respect
to the applicable LIBOR Loans. If the Borrower requests a Borrowing of,
conversion to, or continuation of LIBOR Loans in any such Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

          (c) Following receipt of a Loan Notice, the
Administrative Agent shall
promptly notify each Lender of the amount of its Applicable Percentage
of the applicable Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify
each Lender of the details of any automatic
conversion to Base Rate Loans described in Section 2.02(b). In the case
of a Loan, each Lender shall make the amount of its Loan available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 12:00 noon on the Business Day specified in the
applicable Loan Notice. Upon satisfaction of the applicable conditions set
forth in Section 4.02 (and, if such Borrowing is the Initial Term
Advance, Section 4.01), the Administrative
Agent shall use reasonable efforts to make all funds so received available to
the Borrower in like funds by no later than 3:00 p.m. on the day of
receipt by the Administrative Agent either by (i) crediting the account of the
Borrower on the books of the Administrative Agent with the amount of such funds
or (ii) wire transfer of such funds, in each case in accordance with
instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower.

          (d) The failure of any Lender to make any
Loan shall neither relieve any
other Lender of its obligation to fund its Loan in accordance with the
provisions of this Agreement nor increase the obligation
of any such other Lender.

          (e) Except as otherwise provided herein, a
LIBOR Loan may be continued or
converted only on the last day of an Interest Period for such LIBOR
Loan. During the existence of an Event of Default, no Loans may be requested
as, converted to or continued as LIBOR Loans without the Consent of the Majority Lenders.

          (f) The Administrative Agent
shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for LIBOR Loans upon determination of such
interest rate. At any time that Base Rate
Loans are outstanding, the Administrative Agent shall notify the Borrower and
the Lenders of any change in LaSalle’s Prime Rate used in determining the Base
Rate promptly following the public announcement of such change.

15

          (g) After giving effect to all
Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same
Type, there shall not be more than five (5) Interest Periods in effect
with respect to LIBOR Loans.

          2.03 Prepayments.
The Borrower may, upon irrevocable notice from the Borrower to the
Administrative Agent, at any time or from time to time voluntarily prepay Loans
in whole or in part without premium or
penalty with Equity Proceeds or with the proceeds of Subordinated Indebtedness;
provided that (i) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to
any date of prepayment of LIBOR Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBOR
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$100,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall
be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof or, in each case, if less, the entire principal amount thereof
then outstanding. Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be
prepaid and, if LIBOR Loans, the Interest Period(s) of such Loans. The
Administrative Agent will promptly notify each Lender of its receipt of each
such notice, and of the amount of such
Lender’s Applicable Percentage of such prepayment. If such notice is given
by the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein. Any prepayment of a LIBOR Loan shall
be accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to Section 3.05. Each such
prepayment shall be applied to the Loans of the Lenders in accordance with
their respective Applicable Percentage and shall permanently reduce the Term
Loan amount.

          2.04 Repayment of
Loans

          (a) If
for any reason, at any time the aggregate outstanding amount of Loans exceeds
the amount available to be drawn under the
Term Loan Letter of Credit, Borrower shall immediately cause such excess
to be paid to the Administrative Agent for the benefit of the Lenders.

          (b) The Borrower shall repay to the
Administrative Agent, for the benefit
of the Lenders, on the Termination Date, the aggregate principal amount of
Loans and all other Obligations outstanding on such date.

          2.05 Interest.

          (a) Subject to the provisions of Section
2.05(b), (i) each LIBOR Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
LIBOR for such Interest Period plus the Applicable Margin; and
(ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date
at a rate per annum equal to the Base Rate plus the Applicable
Margin.

          (b) (i) If any amount payable under any Loan
Document
is not paid when due (without regard to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

	
 

	
 

	
 

	
          (ii) If any other Event of Default exists, then the
  Administrative Agent may, and upon the request of the Majority Lenders
  shall, notify the Borrower that all outstanding Obligations shall thereafter
  bear interest at a fluctuating interest rate per annum at all times equal to
  the Default Rate and thereafter such Obligations shall bear interest at the
  Default Rate to the fullest extent permitted by applicable Laws.

16

	
 

	
 

	
 

	
          (iii) Accrued and unpaid interest on past due
  amounts (including interest on past due interest) shall be due and payable
  upon demand.

          (c) Interest on each Loan shall be due and
payable in
arrears on each Interest Payment Date applicable thereto and at such other
times as may be specified herein. Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding
under any Debtor Relief Laws.

          2.06 Facility
Fee. On the Closing Date, the Borrower shall pay the Administrative
Agent for the ratable benefit of the Lenders, a facility fee (the “Facility Fee”) in the amount of
$50,000.00.

          2.07 Computation of Interest and
Fees. All computations of interest for Base Rate
Loans when the Base Rate is
determined by LaSalle’s “prime rate” 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
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section
2.09(a), bear interest for one day. Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

          2.08 Evidence of Debt.

          (a) The Loans made by each Lender shall be
evidenced by one or more
accounts or records maintained by
the Administrative Agent (the “Loan
Account”) in the ordinary course of business. In addition,
each Lender may record in such Lender’s internal records, an appropriate
notation evidencing the date and amount of
each Loan from such Lender, each payment and prepayment of principal of any such
Loan, and each payment of interest, fees and other amounts due in connection
with the Obligations due to such Lender. The accounts or records maintained by
the Administrative Agent and each Lender shall
be conclusive absent manifest error of the amount of the Loans made by the
Lenders to the Borrower and the interest and payments thereon. Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error.

          (b) The
Borrower shall execute and deliver to each Lender (through the Administrative
Agent) a promissory note (as each may be amended, modified, supplemented or
replaced from time to time, each a “Term Note” and, collectively, the “Term Notes”) in the form of
Exhibit B hereto, which shall evidence such Lender’s Loans in addition to
such accounts or records. Each Lender may attach schedules to its Term Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect
thereto. Upon receipt of an affidavit of a Lender as to the loss, theft,
destruction or mutilation of such Lender’s Term Note and upon cancellation of
such Term Note, the Borrower will issue, in lieu thereof, a replacement Term
Note in favor of such Lender, in the same principal amount thereof and
otherwise of like tenor.

          2.09 Payments Generally; Administrative
Agent’s Clawback.

          (a) All payments to be made by the
Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or
setoff. Except as otherwise expressly provided herein, all payments by
the Borrower hereunder shall be made to the Administrative Agent, for the
account of the

17

respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in immediately
available funds not later than 2:00 p.m. on the date specified herein. The
Administrative Agent will promptly distribute to each Lender its Applicable Percentage
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office. All payments
received by the Administrative Agent after 2:00 p.m. shall be deemed received
on the next Business Day and any applicable interest or fee shall continue to
accrue. If any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be
made on the next Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

          (b) Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of LIBOR Loans (or
in the case of any Borrowing of Base Rate Loans, prior to 12:00 noon on
the date of such Borrowing) that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made
such share available on such date in accordance with Section 2.02 (or in
the case of a Borrowing of Base Rate Loans, that such Lender has made
such share available in accordance with and at the time required by Section
2.02) and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact
made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available funds with interest
thereon, for each day from and including the date such amount is made available
to the Borrower to but excluding the date of payment to the Administrative
Agent, at (A) in the case of a payment to be made by such Lender, the greater
of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation plus
any administrative processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a
payment to be made by the Borrower, the interest rate applicable to Base Rate
Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period. If
such Lender pays its share of the applicable Borrowing to the Administrative
Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing. Any payment by the
Borrower shall be without prejudice to any claim the Borrower may have
against a Lender that shall have failed to make
such payment to the Administrative Agent.

          (c) A notice of the Administrative Agent to
any Lender or the Borrower with
respect to any amount owing under this Section 2.09 shall be
conclusive, absent manifest error.

          (d) If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article
II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Loan set forth in Article IV are not
satisfied or waived in accordance with the terms hereof (subject to the
provisions of the last paragraph of Section 4.02), the Administrative
Agent shall return such funds (in like funds as received from such Lender)
to such Lender, without interest.

          (e) The obligations of the Lenders hereunder
to make Loans and to make
payments pursuant to Section 11.04(c) are several and not joint nor
joint and several. The failure of any Lender to make any Loan, to fund any such
participation or to make any payment under Section 11.04(c) on any date
required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for
the failure of any other Lender to so make its Loan, to purchase its
participation or to make its payment under Section 11.04(c).

18

          (f) Nothing herein shall be deemed to
obligate any Lender to obtain the funds for any Loan in any particular
place or manner or to constitute a representation by any Lender that it has
obtained or will obtain the funds for any Loan in any particular place or
manner.

          2.10
Sharing of Payments by Lenders. If any Credit Party
shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of, interest on, or other amounts with
respect to, any of the Obligations resulting in such Lender’s receiving payment
of a proportion of the aggregate amount of
such Obligations greater than its pro rata share thereof as
provided herein (including as in contravention of the priorities of payment set
forth in Section 8.03), then the Credit Party receiving such
greater proportion shall (a) notify the Administrative Agent of such fact, and
(b) purchase (for cash at face value)
participations in the Obligations of the other Credit Parties, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Credit Parties ratably and in the priorities set forth
in Section 8.03, provided that:

	
 

	
 

	
 

	
          (i) if any such participations or
  subparticipations are purchased and all or any portion of the payment
  giving rise thereto is recovered, such participations or subparticipations
  shall be rescinded and the purchase price restored to the extent of such
  recovery, without interest; and

	
 

	
 

	
 

	
          (ii) the provisions of this Section shall
  not be construed to apply to (x) any payment made by the Loan Parties
  pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by a
  Lender as consideration for the assignment of or sale of a participation in
  any of its Loans to any assignee or participant, other than to the Borrower
  or any Subsidiary thereof (as to which the provisions of this Section shall
  apply).

          Each
Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

                    2.11
Settlement Among Lenders.

          (a) The amount of each Lender’s
Applicable Percentage of outstanding Loans shall be computed weekly (or more
frequently in the Administrative Agent’s discretion) and shall be adjusted upward or downward based on all Loans and
repayments of Loans received by the Administrative Agent as of 3:00 p.m. on the
first Business Day (such date, the “Settlement
Date”) following the end of the period specified by the
Administrative Agent.

          (b) The Administrative Agent
shall deliver to each of the Lenders promptly after a Settlement Date a summary statement of the amount of outstanding Loans
for the period and the amount of repayments received for the period. As
reflected on the summary statement, (i) the Administrative Agent shall transfer
to each Lender its Applicable Percentage of repayments, and (ii) each Lender
shall transfer to the Administrative Agent (as provided below) or the
Administrative Agent shall transfer to each Lender, such amounts as are
necessary to insure that, after giving effect to all such transfers, the amount
of Loans made by each Lender shall be equal to such Lender’s Applicable
Percentage of all Loans outstanding as of
such Settlement Date. If the summary statement requires transfers to be made to
the Administrative Agent by the Lenders and is received prior to 12 noon
on a Business Day, such transfers shall be made in immediately available funds
no later than 3:00 p.m. that day; and, if received after 12 noon, then no later
than 3:00 p.m. on the next Business Day. The obligation of each Lender to
transfer such funds is irrevocable, unconditional and without recourse to or
warranty by the Administrative Agent. If
and to the extent any Lender shall not have so made its transfer to the Administrative Agent, such Lender agrees to pay
to the Administrative Agent, forthwith on demand such

19

amount, together with interest
thereon, for each day from such date until the date such amount is paid to the
Administrative Agent, equal to the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation plus any administrative,
processing, or similar fees customarily charged by the Administrative Agent in connection with the foregoing.

ARTICLE III. 

TAXES, YIELD PROTECTION AND
ILLEGALITY

          3.01
Taxes.

          (a) Any
and all payments by or on account of any obligation of the Borrower hereunder
or under any other Loan Document shall be
made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes, provided that if the Borrower shall be
required by applicable law to deduct any Indemnified Taxes (including any Other
Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent or Lender, as the case may be, receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
the Borrower shall make such deductions and (iii) the Borrower shall timely pay
the full amount deducted to the relevant Governmental Authority in accordance
with applicable law.

          (b) Without limiting the provisions of
subsection (a) above, the Borrower
shall timely pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) The Loan Parties shall
indemnify the Administrative Agent and each Lender, within 10 days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent or such Lender, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender (with a copy to the Administrative
Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender, shall be conclusive absent manifest error.

          (d) As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is
entitled to an exemption from or reduction of withholding tax under the law of
the jurisdiction in which Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the

20

Borrower or
the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. 

          Without
limiting the generality of the foregoing, in the event that Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable: 

	
 

	
 

	
 

	
 

	
          (i) duly
  completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
  for benefits of an income tax treaty to which the United States is a party, 

	
 

	
 

	
 

	
 

	
          (ii) duly
  completed copies of Internal Revenue Service Form W-8ECI, 

	
 

	
 

	
 

	
 

	
          (iii) in
  the case of a Foreign Lender claiming the benefits of the exemption for
  portfolio interest under section 
881(c) of the Code, (x) a certificate to
  the effect that such Foreign Lender is not (A) a “bank” within the meaning of
  section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of
  section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation”
  described in section 881(c)(3)(C) of the Code and (y) duly completed copies
  of Internal Revenue Service Form W-8BEN, or 

	
 

	
 

	
 

	
 

	
          (iv) any
  other form prescribed by applicable law as a basis for claiming exemption
  from or a reduction in United States Federal withholding tax duly completed
  together with such supplementary documentation as may be prescribed by applicable
  law to permit the Borrower to determine the withholding or deduction required
  to be made. 

          (f) If the
Administrative Agent or any Lender determines, in its respective sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to
the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of the Administrative Agent or such Lender,
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
Borrower, upon the request of the Administrative Agent or such Lender, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This subsection shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating
to its taxes that it deems confidential) to the Borrower or any other Person.  

          3.02
Illegality. If any Lender determines that any Law at
any time after the Closing Date has made it unlawful, or that any Governmental
Authority has at any time after the Closing Date asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund LIBOR
Loans, or to determine or charge interest rates based upon LIBOR, or any Governmental Authority
has at any time after the Closing Date imposed material restrictions on the
authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, then, on notice thereof by such Lender to the
Borrower through the Administrative Agent, any obligation of such Lender to
make or continue LIBOR Loans or to convert Base Rate Loans to LIBOR Loans shall
be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such

21

determination
no longer exist. Upon receipt of such notice, the Borrower shall, upon demand
from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all LIBOR Loans of such Lender to Base Rate Loans, either
on the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such LIBOR Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such LIBOR Loans. Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted. 

          3.03
Inability to Determine Rates. If the Majority Lenders determine that for any reason in
connection with any request for a LIBOR Loan or a conversion to or continuation
thereof that (a) Dollar deposits are not being offered to banks in the London
interbank market for the applicable amount and Interest Period of such LIBOR
Loan, (b) adequate and reasonable means do not exist for determining LIBOR for
any requested Interest Period with respect to a proposed LIBOR Loan, or (c)
LIBOR for any requested Interest Period with respect to a proposed LIBOR Loan
does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each
Lender. Thereafter, the obligation of the Lenders to make or maintain LIBOR
Loans shall be suspended until the Administrative Agent (upon the instruction
of the Majority Lenders) revokes such notice. Upon receipt of such notice, the
Borrower may revoke any pending request for a Borrowing of, conversion to or
continuation of LIBOR Loans or, failing that, will be deemed to have converted
such request into a request for a Borrowing of Base Rate Loans in the amount
specified therein. 

          3.04
Increased Costs; Reserves on LIBOR Loans.

          (a) If any Change in Law shall: 

	
 

	
 

	
 

	
          (i) impose, modify or deem applicable any
  reserve, special deposit, compulsory loan, insurance charge or similar
  requirement against assets of, deposits with or for the account of, or credit
  extended or participated in by, any Lender (except any reserve requirement
  reflected in LIBOR); 

	
 

	
 

	
 

	
          (ii) subject any Lender to any tax of any
  kind whatsoever with respect to this Agreement, or any LIBOR Loan made by it,
  or change the basis of taxation of payments to such Lender in respect thereof
  (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate
of, any
  Excluded Tax payable by such Lender); or 

	
 

	
 

	
 

	
          (iii) impose
  on any Lender or the London interbank market any other condition, cost or
  expense affecting this Agreement or LIBOR Loans made by such Lender; 

and the result
of any of the foregoing shall be to increase the cost to such Lender of making
or maintaining any LIBOR Loan (or of maintaining its obligation to make any
such Loan), or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender within 180 days of the date of such Change in Law, the Borrower will
pay to such Lender such additional amount or amounts as will compensate such
Lender for such additional costs incurred or reduction suffered. 

          (b) If any Lender determines that any
Change in Law affecting such Lender or any Lending Office of such Lender or
such Lender’s holding company, if any, regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s capital
or on the capital of such Lender’s holding company, if any, as a consequence of
this Agreement, the Commitments of such Lender or the Loans made by such
Lender, to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then, upon

22

request of
such Lender within 180 days of the date of such Change in Law the Borrower will
pay to such Lender such additional amount or amounts as will compensate such
Lender or such Lender’s holding company for any such reduction suffered. 

          (c) A certificate of a Lender
setting forth the amount or amounts necessary to compensate such Lender or its
holding company, as the case may be, as specified in subsection (a) or (b) of
this Section and delivered to the Borrower shall be conclusive absent manifest
error. The Borrower shall pay such Lender the amount shown as due on any such
certificate within 30 days after receipt thereof. 

          (d)
Failure or delay on the part of any Lender to demand
compensation pursuant to the foregoing provisions of this Section shall not
constitute a waiver of such Lender’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender pursuant to the
foregoing provisions of this Section for any increased costs incurred or
reductions suffered more than 180 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 180 day period referred to above shall be
extended to include the period of retroactive effect thereof). 

          (e)
The Borrower shall pay to each Lender, as long as such Lender
shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional interest on the unpaid principal amount
of each LlBOR Loan equal to the actual costs of such reserves allocated to such
Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall have
received at least 15 days’ prior
notice (with a copy to the Administrative Agent) of such additional interest
from such Lender. If a Lender
fails to give notice 15 days prior to the relevant Interest Payment Date, such
additional interest shall be due and payable 15 days from receipt of such notice.  

          3.05
Compensation for Losses. 

          (a)
Upon demand of any Lender (with a copy to the Administrative
Agent) from time to time, the Borrower shall promptly compensate such Lender
for and hold such Lender harmless from any loss, cost or expense incurred by it
as a result of: 

	
 

	
 

	
 

	
          (i) any continuation, conversion, payment or prepayment of any
  Loan other than a Base Rate Loan on a day other than the last day of the
  Interest Period for such Loan (whether voluntary, mandatory, automatic, by
  reason of acceleration, or otherwise); 

	
 

	
 

	
 

	
          (ii)
  any failure by the Borrower (for a reason other than the
  failure of such Lender to make a Loan) to prepay, borrow, continue or convert
  any Loan other than a Base Rate Loan on the date or in the amount notified by
  the Borrower; or 

	
 

	
 

	
 

	
          (iii)
  any assignment of a LIBOR Loan on a day other than the last
  day of the Interest Period therefor as a result of a request by the Borrower
  pursuant to Section 11.13;

          including
any loss of anticipated profits and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were
obtained. The Borrower shall also pay any customary administrative fees charged
by such Lender in connection with the foregoing. 

23

          (b) For purposes of calculating amounts
payable by the Borrower to the Lenders under this Section 3.05, each
Lender shall be deemed to have funded each LIBOR Loan made by it at LIBOR for
such Loan by a matching deposit or other borrowing in the London interbank
market for a comparable amount and for a comparable period, whether or not such
LIBOR Loan was in fact so funded. 

          3.06
Mitigation Obligations; Replacement of Lenders. 

          (a) If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall use reasonable efforts
to designate a different Lending Office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agree to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment. 

          (b) If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 3.01, or any Lender gives notice pursuant to Section
3.02, the Borrower may replace such Lender in accordance with Section 11.13. 

          3.07
Survival. All of the parties obligations under this Article
III shall survive termination of the Aggregate Commitments and repayment of
all other Obligations hereunder. 

ARTICLE IV.

CONDITIONS PRECEDENT TO LOANS 

          4.01
Conditions of Initial Term Advance. The obligation of
the Lenders to make the Initial Term Advance hereunder is subject to
satisfaction of the following conditions precedent: 

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

	
 

	
 

	
 

	
          (i) executed counterparts of this
  Agreement sufficient in number for distribution to the Administrative Agent,
  each Lender and the Borrower; 

	
 

	
 

	
 

	
          (ii)
  a Term Note executed by the Borrower in favor of each
  Lender; 

	
 

	
 

	
 

	
          (iii) the Term Loan Letter of Credit
  shall have been issued; the original thereof shall have been delivered to and
  shall be in the possession of the Administrative Agent; 

	
 

	
 

	
 

	
          (iv) such certificates of resolutions or
  other action, incumbency certificates and/or other certificates of
  Responsible Officers of each Loan Party as the Administrative Agent may
  require evidencing (A) the authority of each Loan Party to enter into this
  Agreement and the other Loan Documents to which such Loan Party is a party or
  is to be a

24

	
 

	
 

	
 

	
party and
  (B) the identity, authority and capacity of each Responsible Officer thereof
  authorized to act as a Responsible Officer in connection with this Agreement
  and the other Loan Documents to which such Loan Party is a party or is to be
  a party;

	
 

	
 

	
 

	
          (v)
  a favorable opinion of Holland & Knight, counsel to the
  Loan Parties, addressed to the Administrative Agent and each Lender, as to
  such matters concerning the Loan Parties and the Loan Documents as the
  Administrative Agent may reasonably request; 

	
 

	
 

	
 

	
          (vi)
  a certificate signed by a Responsible Officer of the Borrower
  certifying (A) that the conditions specified in Sections 4.02(a) and 4.02(a)
  have been satisfied, (B) that there has been no event or circumstance since
  the date of the Audited Financial Statements that has had or could be
  reasonably expected to have, either individually or in the aggregate, a
  Material Adverse Effect and (C) either that (1) no consents, licenses or
  approvals are required in connection with the execution, delivery and
  performance by such Loan Party and the validity against such Loan Party of
  the Loan Documents to which it is a party, or (2) that all such consents,
  licenses and approvals have been obtained and are in full force and effect; 

	
 

	
 

	
 

	
          (vii)
  a certificate from the chief financial officer of the
  Borrower, satisfactory in form and substance to the Administrative Agent,
  attesting to the Solvency of the Loan Parties as of the Closing Date after
  giving effect to the transactions contemplated hereby; 

	
 

	
 

	
 

	
          (viii)
  all other Loan Documents, each duly executed by the
  applicable Loan Parties; 

	
 

	
 

	
 

	
          (ix)
  results of searches or other evidence reasonably
  satisfactory to the Collateral Agent (in each case dated as of a date
  reasonably satisfactory to the Collateral Agent) indicating the absence of
  Liens on the assets of the Loan Parties, except for Permitted Encumbrances
  and Liens for which termination statements and releases satisfactory to the
  Collateral Agent are being tendered concurrently with such extension of
  credit or other arrangements satisfactory to the Collateral Agent for the
  delivery of such termination statements and releases, satisfactions and
  discharges have been made; 

	
 

	
 

	
 

	
          (x)
  all documents and instruments, including Uniform Commercial
  Code financing statements, required by law or reasonably requested by the
  Collateral Agent to be filed, registered or recorded to create or perfect the
  first priority Liens intended to be created under the Loan Documents and all
  such documents and instruments shall have been so filed, registered or recorded
  to the satisfaction of the Collateral Agent; and 

	
 

	
 

	
 

	
          (xi)
  such other assurances, certificates, documents, consents or
  opinions as the Agents reasonably may require. 

          (b)
The Administrative Agent shall be reasonably satisfied
that any financial statements delivered to it fairly present the business and
financial condition of the Loan Parties and that there has been no Material
Adverse Effect since the date of the most recent financial information
delivered to the Administrative Agent. 

          (c)
The Administrative Agent shall have received and found
satisfactory a copy of the fully executed Intercreditor Agreement. 

          (d)
The Administrative Agent shall have received and found
satisfactory a copy of the fully executed First Amendment to the Revolving
Credit Agreement. 

25

          (e)
There shall not be pending any litigation or other
proceeding, the result of which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect. 

          (f)
There shall not have occurred any default of any
Material Contract of any Loan Party which could reasonably be expected to have
a Material Adverse Effect. 

          (g)
The consummation of the transactions contemplated hereby
shall not violate any Applicable Law or any Organization Document. 

          (h)
All fees required to be paid to the Agents on or before the
Closing Date shall have been paid in full or charged to the Loan Account, and
all fees required to be paid to the Lenders on or before the Closing Date shall
have been paid in full or charged to the Loan Account. 

          (i)
The Borrower shall have paid all fees, charges and
disbursements of counsel to the Administrative Agent to the extent invoiced
prior to or on the Closing Date, plus such additional amounts of such fees,
charges and disbursements as shall constitute its reasonable estimate of such
fees, charges and disbursements incurred or to be incurred by it through the
closing proceedings (provided that such estimate shall not thereafter preclude
a final settling of accounts between the Borrower and the Administrative
Agent). 

          Without
limiting the generality of the provisions of Section 10.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this 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 Administrative Agent shall have received notice from
such Lender prior to the proposed Closing Date specifying its objection
thereto. 

          4.02
Conditions to Delayed Draw Advance. The obligation
of each Lender to honor a Delayed Draw Advance Borrowing Request is subject to
the following conditions precedent: 

          (a)
The representations and warranties of each other Loan Party
contained in Article V or any other Loan Document, or which are contained in
any document furnished at any time under or in connection herewith or
therewith, shall be true and correct in all material respects on and as of the
date of such Delayed Draw Advance, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct in all material respects as of such earlier
date;  

          (b)
No Default shall exist, or would result from the
making of the Delayed Draw Advance or from the application of the proceeds
thereof; 

          (c)
The Borrower shall not have received at least $10,000,000 in
Equity Proceeds or the proceeds of Subordinated Indebtedness on or prior to May
31, 2007;

          (d)
The Administrative Agent shall have received a Delayed Draw
Advance Borrowing Request in accordance with the requirements hereof prior to
May 31, 2007;
and 

          (e)
No event or circumstance which could reasonably be expected
to result in a Material Adverse Effect shall have occurred. 

          Delivery
of a Delayed Draw Advance Borrowing Request shall be deemed to be a
representation and warranty by the Borrower that the conditions specified in
this Sections 4.02(a) have been satisfied on

26

and as of the
date of the making of the Delayed Draw Advance. The conditions set forth in
this Section 4.02 are for
the sole benefit of the Credit Parties but until the Majority Lenders otherwise
direct the Administrative Agent to cease making Loans, the Lenders will fund
their Applicable Percentage of all Loans which are requested by the Borrower
and which, notwithstanding the failure of the Loan Parties to comply with the
provisions of this Article IV, are agreed to by the Administrative
Agent, provided, however, the making of any such Loans shall not be deemed a
modification or waiver by any Credit Party of the provisions of this Article IV on any future occasion or a waiver of
any rights or the Credit Parties as a result of any such failure to comply. 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

          To
induce the Credit Parties to enter into this Agreement and to make Loans
hereunder, each Loan Party represents and warrants to the Administrative Agent
and the other Credit Parties that the representations and warranties of each
Loan Party contained in Article V of the Revolving Credit Agreement, in this
Agreement and in each other Loan Document, and which are contained in any
document furnished at any time under or in connection herewith or therewith,
are true and correct in all material respects as of the date of this Agreement,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all
material respects as of such earlier date.: 

ARTICLE VI.

AFFIRMATIVE COVENANTS 

          So
long as any Lender shall have any Commitment hereunder or any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, the Loan Parties
shall, and shall cause each Subsidiary to, comply with the provisions of
Sections 6.04 (Payment of Obligations), 6.05 (Preservation of Existence), 6.06
(Maintenance of Properties), 6.08 (Compliance with Laws), 6.09 (Books and
Records; Accountants), 6.10 (Inspection Rights), 6.15 (Physical Inventories),
6.16 (Environmental Laws), 6.18 (Compliance with Terms of Leaseholds), 6.19
(Material Contracts) and 6.20 (Trade Vendor Agreement) of the Revolving Credit
Agreement as if set forth herein, and, in addition: 

          6.01
Financial Statements. Simultaneously with delivery to
the Revolving Credit Agent, deliver to the Administrative Agent the financial
statements, certificates and other information required to be delivered under
Sections 6.01 and 6.02 of the Revolving Credit Agreement. 

          6.02
Notices. Simultaneously with delivery to the Revolving
Credit Agent, deliver to the Administrative Agent all notices delivered to the
Revolving Credit Agent under Section 6.03 of the Revolving Credit Agreement,
and further notify the Administrative Agent of the occurrence of any Default or
Event of Default. 

          6.03
Maintenance of Insurance. Maintain insurance in
compliance with Section 6.07 of the Revolving Credit Agreement and comply with
the following: 

          (a)
Subject to the rights of the Revolving Lenders under
the Revolving Credit Agreement, fire and extended coverage policies maintained
with respect to any Collateral shall be endorsed or otherwise amended to
include (i) a non-contributing
mortgage clause (regarding improvements to real property) and lenders’ loss
payable clause (regarding personal property), in form and substance reasonably
satisfactory to the Collateral Agent, which endorsements or amendments shall
provide that the insurer shall pay all proceeds otherwise payable to the Loan
Parties under the policies directly to the 

27

Collateral
Agent, (ii) a provision to the effect that none of the Loan Parties, Credit
Parties or any other Person shall be a co-insurer and (iii) such other
provisions as the Collateral Agent may reasonably require from time to time to
protect the interests of the Credit Parties. Commercial general liability
policies shall be endorsed to name the Collateral Agent as an additional
insured. Business interruption policies shall name the Collateral Agent as a
loss payee and shall be endorsed or amended to include (i) a provision that,
from and after the Closing Date, the insurer shall pay all proceeds otherwise
payable to the Loan Parties under the policies directly to the Collateral
Agent, (ii) a provision to the effect that none of the Loan Parties, the
Administrative Agent, the Collateral Agent or any other party shall be a
co-insurer and (iii) such other provisions as the Collateral Agent may
reasonably require from time to time to protect the interests of the Credit
Parties. Each such policy referred to in this Section 6.03 shall also
provide that it shall not be canceled, modified or not renewed (i) by reason of
nonpayment of premium except upon not less than thirty (30) days’ prior written
notice thereof by the insurer to the Collateral Agent (giving the Collateral
Agent the right to cure defaults in the payment of premiums) or (ii) for any
other reason except upon not less than thirty (30) days’ prior written notice
thereof by the insurer to the Collateral Agent. The Borrower shall deliver to
the Collateral Agent, prior to the cancellation, modification or non-renewal of
any such policy of insurance, a copy of a renewal or replacement policy (or
other evidence of renewal of a policy previously delivered to the Collateral
Agent, including an insurance binder) together with evidence satisfactory to
the Collateral Agent of payment of the premium therefor. 

          (b)
None of the Credit Parties, or their agents or
employees shall be liable for any loss or damage insured by the insurance
policies required to be maintained under this Section 6.03. Each Loan
Party shall look solely to its insurance companies or any other parties other
than the Credit Parties for the recovery of such loss or damage and such
insurance companies shall have no rights of subrogation against any Credit Party
or its agents or employees. If, however, the insurance policies do not provide
waiver of subrogation rights against such parties, as required above, then the
Loan Parties hereby agree, to the extent permitted by law, to waive their right
of recovery, if any, against the Credit Parties and their agents and employees
until the payment in full of the Obligations and the termination of the
Commitments. The designation of any form, type or amount of insurance coverage
by the any Credit Party under this Section 6.03 shall in
no event be deemed a representation, warranty or advice by such Credit Party
that such insurance is adequate for the purposes of the business of the Loan
Parties or the protection of their properties. 

          (c)
The Borrower shall permit any representatives that are
designated by the Collateral Agent to inspect the insurance policies maintained
by or on behalf of the Loan Parties and to inspect books and records related
thereto and any properties covered thereby. The Loan Parties shall pay the
reasonable fees and expenses of any representatives retained by the Collateral
Agent to conduct any such inspection. 

          6.04
Use of Proceeds.
Use the proceeds of the Term Loan (a) to make Permitted Restricted
Subordinated Debt Payments, and (b) for general corporate purposes of the Loan
Parties, in each case to the extent not prohibited under applicable Law and the
Loan Documents. 

          6.05
Additional Loan Parties; Additional Properties

          (a)
Promptly after any Investment in a new Subsidiary
permitted under the Revolving Credit Agreement, pledge to the Collateral Agent,
for the benefit of the Lenders and the Agents, subject to the rights of the
Revolving Lenders under the Revolving Credit Agreement, the capital stock of
each new Subsidiary in which the Borrower invests pursuant to a stock pledge
agreement in form and substance reasonably satisfactory to the Agents, and such
new Subsidiary shall grant to the Collateral Agent a perfected first priority
security interest (subject only to Permitted Encumbrances entitled to priority
under applicable law) in substantially all of its personal property assets
(with such exceptions are as acceptable to the Majority Lenders) pursuant to a
Joinder Agreement to this Agreement in form and substance

28

reasonably
satisfactory to the Agents. Each new Subsidiary in which the Borrower invests
shall, promptly after such Investment, execute and deliver to the Collateral
Agent, for the benefit of the Lenders and the Agents, a guaranty of the payment
and performance of all of the Obligations, in form and substance satisfactory
to the Agents, together with acceptable security documents including without
limitation, the aforementioned Joinder Agreement, legal opinions, and other
documents and instruments necessary to demonstrate the due authorization,
execution and delivery by such new Subsidiary of such guaranty and such
security documents and to perfect the Collateral Agent’s security interest in
all of such new Subsidiary’s assets, including (i) the resolutions of the Board
of Directors or equivalent body of such new Subsidiary and the charter and by
laws (or the equivalent thereof) of such new Subsidiary, certified by an
officer of such new Subsidiary, (ii) a good standing certificate of such new
Subsidiary in its jurisdiction of incorporation, (iii) a certificate of the
secretary or an assistant secretary of such new Subsidiary certifying the names
and true signatures of the officers of such new Subsidiary authorized to sign
such guaranty and such security documents, (iv) UCC 1 financing statements, and (v) such
other documents as the Collateral Agent may reasonably request. Upon delivery
of the aforementioned documents, such new Subsidiary shall become a guarantor
of the Obligations hereunder and, except as otherwise agreed to by the Majority
Lenders, shall comply with and be bound by all of the terms and conditions of
the Loan Documents as a Subsidiary of the Borrower thereunder, and the Borrower
shall cause such new Subsidiary to take all actions which it would have been
required to make or take had it been a Subsidiary of the Borrower on the
Closing Date, including making all representations and warranties as a
guarantor under each of the Loan Documents. Notwithstanding anything contained
in this Section 6.05 to the contrary, if such Subsidiary
is a CFC, the Equity Interests of such Subsidiary to be pledged may be limited
to 65% of the outstanding Equity
Interests of such Subsidiary. In no event shall compliance with this Section
6.05 waive or be deemed a waiver or Consent to any transaction giving rise
to the need to comply with this Section 6.05 if such
transaction was not otherwise expressly permitted by this Agreement or
constitute or be deemed to constitute, with respect to any Subsidiary, an approval
of such Person as a Borrower. 

          (b)
If, after the Closing Date, the Borrower or any of its
Subsidiaries acquires or leases for a term in excess of five (5) years real estate used as a
manufacturing or warehouse facility, the Borrower shall notify the Agents promptly thereof, and upon the request
of the Agents, the Borrower shall, or shall cause such Subsidiary to, within
sixty (60) days of such request,
deliver to the Collateral Agent a fully executed mortgage or deed of trust over
such real estate, and use commercially reasonable efforts to obtain such
mortgage with respect to such leasehold interests, as applicable, in form and
substance reasonably satisfactory to the Agents, together with, subject to the
rights of the Revolving Lenders under the Revolving Credit Agreement, title
insurance policies, surveys, evidences of insurances with the Collateral Agent
named as loss payee and additional insured, legal opinions and other documents
and certificates with respect to such real estate as shall be reasonably
satisfactory to the Agents. The Borrower further agrees that, following the
taking of such actions with respect to such real estate or such leases, as
applicable, the Collateral Agent shall have for the benefit of the Lenders and
the Agents a valid and enforceable first priority mortgage or deed of trust
over such real estate or, if obtained, such leasehold interests, as applicable,
free and clear of all defects and encumbrances except for Permitted
Encumbrances. 

29

          6.06
Cash Management.
Comply with the terms of Section 6.13 of the Revolving Credit Agreement
and, upon the request of the Collateral Agent, take such actions as Collateral
Agent shall require to cause Collateral Agent to have dominion and control,
subject to the rights of the Revolving Lenders under the Revolving Credit
Agreement, over the Blocked Accounts and Concentration Account. 

          6.07
Information Regarding the Collateral. Simultaneously with delivery to the
Revolving Credit Agent, furnish to the Administrative Agent all information
furnished to the Revolving Credit Agent under Section 6.14 of the Revolving
Credit Agreement. 

          6.08
Physical Inventories. Cause the results of inventories undertaken pursuant to
Section 6.15 of the Revolving Credit Agreement to be delivered to the
Administrative Agent simultaneously with delivery to the Revolving Credit
Agent. 

          6.09
Further Assurances. 

          (a)
Execute any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the
filing and recording of financing statements and other documents), that may be
required under any applicable Law, or which any Agent may reasonably request,
to effectuate the transactions contemplated by the Loan Documents or to grant,
preserve, protect or perfect the Liens created or intended to be created by
this Agreement or any applicable security documents or the validity or priority
of any such Lien, all at the expense of the Loan Parties. The Loan Parties also
agree to provide to the Agents, from time to time upon reasonable request,
evidence satisfactory to the Agents as to the perfection and priority of the
Liens created or intended to be created by this Agreement or any applicable
security documents. 

          (b)
Upon the request of the Collateral Agent, use
commercially reasonable effort to cause each of its customs brokers to deliver
a Customs Broker Agreement to the Collateral Agent, subject to the rights of
the Revolving Lenders under the Revolving Credit Agreement. 

ARTICLE VII.

NEGATIVE COVENANTS

          So
long as any Lender shall have any Commitment hereunder, or any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, each Loan Party shall,
and shall cause each Subsidiary to, comply with the terms and provisions of
Article VII of the Revolving Credit Agreement as if set forth herein. 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES 

          8.01
Events of Default. Any of the following shall
constitute an Event of Default: 

          (a)
Non-Payment. The
Borrower or any other Loan Party fails to pay when and as required to be paid
herein, (i) any amount of principal of any Loan, or (ii) any interest on any
Loan within one (1) day following the date when the same shall become due and
payable, other than at the stated date of maturity or any accelerated date of
maturity, or (iii) any fee due hereunder, or (iv) any other amount payable
hereunder or under any other Loan Document; or 

30

          (b) Other Defaults. Any Loan Party
fails to perform or observe any other covenant or agreement (not specified in
subsection (a) or (b) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 15 days; or 

          (c) Representations
and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of Borrower or any other
Loan Party herein, in any other Loan Document, or in any document delivered in
connection herewith or therewith shall be incorrect or misleading in any
material respect when made or deemed made; or 

          (d) Cross-Default. An “Event of
Default” shall occur under the Revolving Credit Agreement; or 

          (e) Insolvency Proceedings, Etc. Any
Loan Party or any of its Subsidiaries institutes or consents to the institution
of any proceeding under any Debtor Relief Laws, or makes an assignment for the
benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer for it or for all or any material part of its property; or a proceeding
shall be commenced or a petition filed, without the application or consent of
such Person, seeking or requesting the appointment of any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer is
appointed and the appointment continues undischarged, undismissed or unstayed
for 60 calendar days or an order or decree approving or ordering any of the
foregoing shall be entered; or any proceeding under any Debtor Relief Laws
relating to any such Person or to all or any material part of its property is
instituted without the consent of such Person and continues undismissed or
unstayed for 60 calendar days, or an order for relief is entered in any such
proceeding; or 

          (f)
Inability to Pay Debts; Attachment. (i) Any Loan Party
or any Subsidiary thereof becomes unable or admits in writing its inability or
fails generally to pay its debts as they become due in the ordinary course of
business, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of
any such Person and is not released, vacated or fully bonded within 30 days
after its issue or levy; or 

          (g)
Invalidity of Loan Documents. (i) Any material
provision of any Loan Document, at any time after its execution and delivery
and for any reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or any Loan Party or any other Person contests in any manner the
validity or enforceability of any material provision of any Loan Document; or
any Loan Party denies that it has any or further liability or obligation under
any material provision of any Loan Document, or purports to revoke, terminate
or rescind any Loan Document or seeks to avoid, limit or otherwise adversely
affect any Lien purported to be created under this Agreement or any applicable
security documents; or (ii) any Lien purported to be created under this
Agreement or any applicable security documents shall cease to be, or shall be
asserted by any Loan Party or any other Person not to be, a valid and perfected
Lien on any material portion of the Collateral, with the priority required by
this Agreement or any applicable security documents (other than as a result of
action or inaction by any Agent); or 

          (h)
Loss of Collateral. There shall occur any
material damage to, or loss, theft or destruction of, any Collateral, whether
or not insured, or any strike, lockout, labor dispute, embargo, condemnation,
act of God or public enemy, or other casualty, which in any such case causes,
for more than ten (10) consecutive days, the cessation or substantial
curtailment of revenue producing activities at retail locations of the Borrower
or any of its Subsidiaries constituting twenty-five percent (25%) or more of
the Borrower’s and its Subsidiaries retail locations if such event or circumstance
is not covered by business interruption insurance; or 

31

          (i)
Subordination.
(i) The subordination provisions of the documents evidencing or
governing any Subordinated Indebtedness (the “Subordinated Provisions”)
shall, in whole or in part, terminate, cease to be effective or cease to
be legally valid, binding and enforceable against any holder of the applicable
Subordinated Indebtedness; or (ii) Borrower or any other Loan Party shall,
directly or indirectly, disavow or contest in any manner (A) the effectiveness,
validity or enforceability of any of the Subordination Provisions, (B) that the Subordination Provisions
exist for the benefit of the Credit Parties, or (C) that all payments of
principal of or premium and interest on the applicable Subordinated
Indebtedness, or realized from the liquidation of any property of any Loan
Party, shall be subject to any of the Subordination Provisions; or 

          (j)
Extension of Subordinate Facility. If on or prior to December 15, 2008, the Administrative Agent
shall not have been provided with a copy of an executed amendment or other
modification to the Subordinate Facility extending its maturity date to
February 20, 2011 or later; or 

          (k)
Term Loan Letter of Credit. If for any reason the Term Loan Letter of Credit shall expire,
any draw thereunder shall not be honored or the amount available to be drawn
thereunder shall be less than the then outstanding amount of the Loans. 

          8.02
Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent may, or, at the request of the Majority Lenders shall,
take any or all of the following actions: 

          (a)
declare the commitment of each Lender to make Loans to
be terminated, whereupon such commitments and obligation shall be terminated; 

          (b)
declare the unpaid principal amount of all outstanding Loans,
all interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Loan Parties; 

          (c)
draw upon the Term Loan Letter of Credit in such
amount as Administrative Agent shall determine, or in such amount as the
Majority Lenders shall direct; and 

          (d)
whether or not the maturity of the Obligations shall have
been accelerated pursuant hereto, may (and at the direction of the Majority
Lenders, shall) proceed to protect, enforce and exercise all rights and
remedies of the Credit Parties under this Agreement, any of the other Loan
Documents or applicable Law, including, but not limited to, by suit in equity,
action at law or other appropriate proceeding, whether for the specific
performance of any covenant or agreement contained in this Agreement and the
other Loan Documents or any instrument pursuant to which the Obligations are
evidenced, and, if such amount shall have become due, by declaration or
otherwise, proceed to enforce the payment thereof or any other legal or
equitable right of the Credit Parties; 

provided, however, that upon the entry
of an order for relief with respect to any Loan Party or any Subsidiary thereof
under the Bankruptcy Code of the United States, the obligation of each Lender
to make Loans shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, in each case without further act of the
Administrative Agent or any Lender. 

          No
remedy herein is intended to be exclusive of any other remedy and each and
every remedy shall be cumulative and shall be in addition to every other remedy
given hereunder or now or hereafter existing at law or in equity or by statute
or any other provision of Law. 

32

          8.03
Application of Funds. After the exercise of
remedies provided for in Section 8.02 (or
after the Loans have automatically become immediately due and payable), any
amounts received on account of the Obligations shall be applied by the
Administrative Agent in the following order: 

	
 

	
 

	
 

	
          (i) to payment of that portion of the
  Obligations (excluding the Other Liabilities) constituting fees, indemnities,
  Credit Party Expenses and other amounts (including fees, charges and
  disbursements of counsel to the Administrative Agent and the Collateral Agent
  and amounts payable under Article III) payable to the Administrative Agent and the Collateral
  Agent, each in its capacity as such; and then 

	
 

	
 

	
 

	
          (ii) to payment of that portion of the
  Obligations (excluding the Other Liabilities) constituting indemnities,
  Credit Party Expenses, and other amounts (other than principal, interest and
  fees) payable to the Lenders (including fees, charges and disbursements of
  counsel to the respective Lenders and amounts payable under Article III), ratably
  among them in proportion to the amounts described in this clause payable to
  them; and then 

	
 

	
 

	
 

	
          (iii) to payment of that portion of the
  Obligations constituting accrued and unpaid interest on the Loans, and other
  Obligations, and fees, ratably among the Lenders in proportion to the
  respective amounts described in this clause payable to them; and then 

	
 

	
 

	
 

	
          (iv) to payment of that portion of the
  Obligations constituting unpaid principal of the Loans, ratably among the
  Lenders in proportion to the respective amounts described in this clause held
  by them; and then 

	
 

	
 

	
 

	
          (v) ratably to pay any fees then due to
  the Lenders until paid in full; and then 

	
 

	
 

	
 

	
          (vi) to payment of all other Obligations
  (including without limitation the cash collateralization of unliquidated
  indemnification obligations as provided in Section 11.04, but
  excluding any Other Liabilities), ratably among the Credit Parties in
  proportion to the respective amounts described in this clause held by them;
  and then 

	
 

	
 

	
 

	
          (vii) to payment of that portion of the
  Obligations arising from Cash Management Services to the extent secured
  hereunder, ratably among the Credit Parties in proportion to the respective
  amounts described in this clause held by them; and then 

	
 

	
 

	
 

	
          (viii) to payment of all Other
  Liabilities not paid under any of the preceding clauses; and then, lastly 

	
 

	
 

	
 

	
          (ix) the balance, if any, after all of
  the Obligations have been indefeasibly paid in full, to the Loan Parties or
  as otherwise required by Law. 

ARTICLE IX.

COLLATERAL

          9.01
Security Interest.

          (a) As security for the payment of all
Obligations, the Borrower hereby acknowledges, reaffirms, confirms and ratifies
its prior grant of, and assigns to the Collateral Agent for the benefit of the
Credit Parties, and grants to the Collateral Agent for the benefit of the
Credit Parties a continuing security 

33

interest in, all of the following (collectively, the “Collateral”) whether now or
hereafter existing or acquired, regardless of where located:

	
 

	
 

	
 

	
          (i)
  Accounts, including Health-Care-Insurance Receivables;

	
 

	
 

	
 

	
          (ii)
  Certificated Securities;

	
 

	
 

	
 

	
          (iii)
  Chattel Paper, including Electronic Chattel Paper;

	
 

	
 

	
 

	
          (iv)
  computer hardware and software and all rights with respect thereto,
  including, any and all licenses, options, warranties, service contracts,
  program services, test rights, maintenance rights, support rights,
  improvement rights, renewal rights and indemnifications, and any
  substitutions, replacements, additions or model conversions of any of the
  foregoing;

	
 

	
 

	
 

	
          (v)
  Contract Rights;

	
 

	
 

	
 

	
          (vi)
  Commercial Tort Claims;

	
 

	
 

	
 

	
          (vii)
  Deposit Accounts;

	
 

	
 

	
 

	
          (viii)
  Documents;

	
 

	
 

	
 

	
          (ix)
  Financial Assets;

	
 

	
 

	
 

	
          (x)
  General Intangibles, including Payment Intangibles and Software;

	
 

	
 

	
 

	
          (xi)
  Goods (including all of its Equipment, Fixtures and Inventory), and all
  embedded software, accessions, additions, attachments, improvements,
  substitutions and replacements thereto and therefor;

	
 

	
 

	
 

	
          (xii)
  Instruments;

	
 

	
 

	
 

	
          (xiii)
  Intellectual Property;

	
 

	
 

	
 

	
          (xiv)
  Investment Property;

	
 

	
 

	
 

	
          (xv)
  money (in every jurisdiction whatsoever);

	
 

	
 

	
 

	
          (xvi)
  Letter of Credit Rights;

	
 

	
 

	
 

	
          (xvii)
  Security Entitlements;

	
 

	
 

	
 

	
          (xviii)
  Supporting Obligations;

	
 

	
 

	
 

	
          (xix)
  Uncertificated Securities; and

	
 

	
 

	
 

	
          (xx)
  to the extent not included in the foregoing, other personal property of any
  kind or description;

          together
with all books, records, writings, data bases, information and other property
relating to, used or useful in connection with, or evidencing, embodying,
incorporating or referring to any of the

34

foregoing, and all Proceeds, products, offspring,
rents, issues, profits and returns of and from any of the foregoing; provided
that to the extent that the provisions of any lease or license of computer
hardware and software or Intellectual Property expressly prohibit (which
prohibition is enforceable under applicable law) the assignment thereof; and
the grant of a security interest therein, the Borrower’s rights in such lease
or license shall be excluded from the foregoing assignment and grant for so
long as such prohibition continues, it being understood that upon request of
the Collateral Agent, the Borrower will in good faith use reasonable efforts to
obtain consent from the applicable lessor or licensor for the creation of a
security interest in favor of the Collateral Agent for the benefit of the
Credit Parties in the Borrower’s rights under such lease or license.

          9.02
Additional Security. As
additional security for all of the Obligations, Borrower grants to the
Collateral Agent, for the benefit of the Credit Parties, a security interest
in, and assigns to the Collateral Agent, for the benefit of the Credit Parties,
all of Borrower’s right, title and interest in and to, any deposits or other
sums at any time credited by or due from each Lender and each Affiliate of a
Lender to Borrower, or credited by or due from any participant of any Lender to
Borrower, with the same rights therein as if the deposits or other sums were
credited by or due from such Lender. Borrower hereby authorizes each Lender and
each Affiliate of such Lender and each participant to pay or deliver to the
Collateral Agent, for the benefit of the Credit Parties, without any necessity
on the Collateral Agent’s or any Lender’s part to resort to other security or
sources of reimbursement for the Obligations, at any time during the
continuation of any Event of Default or in the event that the Collateral Agent,
for the benefit of the Credit Parties, should make demand for payment hereunder
and without further notice to Borrower (such notice being expressly waived),
any of the aforesaid deposits (general or special, time or demand, provisional
or final) or other sums for application to any Obligation, irrespective of
whether any demand has been made or whether such Obligation is mature, and the
rights given the Agents, the Lenders, their Affiliates and participants
hereunder are cumulative with such Person’s other rights and remedies,
including other rights of set-off. The Agent may give notice of the above grant
of a security interest in and assignment of the aforesaid deposits and other
sums, and authorization, to, and make any suitable arrangements with, any
Lender, any such Affiliate of any Lender or participant for effectuation
thereof, and the Borrower hereby irrevocably appoints Collateral Agent as its
attorney to collect, so long as any Event of Default shall have occurred and
during the continuance of any such Event of Default, any and all such deposits
or other sums to the extent any such payment is not made to the Collateral
Agent or any Lender by such Lender, Affiliate or participant.

          9.03 Continued
Priority of Security Interest.

          (a) The security interest granted by
Borrower shall at all times be valid and enforceable against Borrower and all
third parties in accordance with the terms of this Agreement, as security for
the Obligations, and the Collateral shall not at any time be subject to any Liens
other than Permitted Encumbrances. Borrower shall, at its cost and expense,
take all action that may be necessary or desirable (other than the filing of
continuation statement under the UCC), or that the Collateral Agent may
reasonably request, so as at all times to maintain the validity, perfection,
enforceability and rank of the security interest in the Collateral to enable
the Collateral Agent to exercise or enforce its rights hereunder, and to obtain
the full benefits of this Agreement.

          (b) The Collateral Agent is hereby
authorized to file one or more financing or continuation statements or
amendments thereto in the name of Borrower in any jurisdictions and with any
filing offices as the Collateral Agent may determine, in its sole discretion,
are necessary or advisable to perfect the security interest granted to the
Collateral Agent hereunder, including, without limitation, any such financing
or continuation statements as Collateral Agent deems necessary in its sole
discretion in order to comply with the UCC. Such financing statements may
describe the Collateral in the same manner as

35

described in this Agreement
or may contain an indication or description of Collateral that describes such
property in any other manner, including, without limitation, describing such
property as “all assets, whether now owned or hereafter acquired or arising” or
“all personal property, whether now owned or hereafter acquired or arising.”

          (c) Borrower shall mark its books and
records as directed by the Collateral Agent and as may be reasonably necessary
or appropriate to evidence, protect and perfect the security interest granted
hereunder and shall cause its financial statements to reflect the security
interest.

          9.04
Other Collateral Matters.

          (a) Borrower shall at any time and from
time to time, take such steps as Collateral Agent may request (i) in order that
Collateral Agent shall obtain “control” of Collateral, with any agreements
establishing control to be in form and substance reasonably satisfactory to
Collateral Agent, (ii) to enter into a tri-party agreement with Collateral
Agent and the issuer and/or confirmation bank with respect to any Letter of
Credit Rights that Borrower has acquired, and thereby directing all payments under
such Letter of Credit Rights as Collateral Agent shall direct, (iii) to
promptly notify Collateral Agent, in a writing signed by a Borrower, of any
commercial tort claim (as defined in the UCC) acquired by it and unless
otherwise consented by Collateral Agent, to enter into a supplement to this
Agreement, granting to Collateral Agent, for the benefit of the Credit Parties,
a Lien in such commercial tort claim and in the proceeds thereof, and (iv)
otherwise to insure the continued perfection enforceability and priority of
security interest of the Collateral Agent, for the benefit of the Credit
Parties, in any of the Collateral and of the preservation of its rights
therein.

          (b) Nothing contained in this Section
9.04 shall be construed to narrow the scope of Collateral Agent’s security
interest in any of the Collateral or the perfection or priority thereof or to
impair or otherwise limit any of the rights, powers, privileges or remedies of
Collateral Agent hereunder.

ARTICLE X.

ADMINISTRATIVE AGENT

          10.01
Appointment and Authority.

          (a) Each of the Lenders hereby irrevocably
appoints LaSalle to act on its behalf as the Administrative Agent hereunder and
under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article
are solely for the benefit of the Administrative Agent, the Lenders, and no
Loan Party or any Subsidiary thereof shall have rights as a third party
beneficiary of any of such provisions.

          (b) Each of the Lenders (in its capacities
as a Lender) hereby irrevocably appoints LaSalle as Collateral Agent and
authorizes the Collateral Agent to act as the agent of such Lender for purposes
of acquiring, holding and enforcing any and all Liens on Collateral granted by
any of the Loan Parties to secure any of the Obligations, together with such
powers and discretion as are reasonably incidental thereto. In this connection,
the Collateral Agent, as “collateral agent” and any co-agents, sub-agents and
attorneys-in-fact appointed by the Collateral Agent pursuant to Section
10.05 for purposes of holding or enforcing any Lien on the Collateral (or
any portion thereof) granted under the Collateral Documents, or for exercising
any rights and remedies thereunder at the direction of the Collateral Agent),
shall be entitled to the benefits of all provisions of this Article IX
and Article X (including Section 11.04(c)), as

36

though such co-agents, sub-agents and
attorneys-in-fact were the “collateral agent” under the Loan Documents, as if
set forth in full herein with respect thereto.

          10.02
Rights as a Lender. The
Persons serving as the Agents hereunder shall have the same rights and powers
in their capacity as a Lender as any other Lender and may exercise the same as
though they were not the Administrative Agent or the Collateral Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as the
Administrative Agent or the Collateral Agent hereunder in its individual
capacity. Such Person and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with the Loan Parties or any
Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent or the Collateral Agent hereunder and without any duty to
account therefor to the Lenders.

          10.03
Exculpatory Provisions. The
Agents shall not have any duties or obligations except those expressly set
forth herein and in the other Loan Documents. Without limiting the generality
of the foregoing, the Agents:

          (a) shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing;

          (b) shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent or the Collateral Agent, as applicable, is
required to exercise as directed in writing by the Majority Lenders (or such
other number or percentage of the Lenders as shall be expressly provided for
herein or in the other Loan Documents), provided that no Agent shall be
required to take any action that, in its respective opinion or the opinion of
its counsel, may expose such Agent to liability or that is contrary to any Loan
Document or applicable law; and

          (c) shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Loan Parties or any of its Affiliates that is communicated to or obtained
by the Person serving as the Administrative Agent, the Collateral Agent or any
of its Affiliates in any capacity.

No Agent shall be liable for any action taken or not
taken by it (i) with the Consent or at the request of the Majority Lenders (or
such other number or percentage of the Lenders as shall be necessary, or as
such Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 11.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct as determined by
a final and non-appealable judgment of a court of competent jurisdiction. The
Agents shall not be deemed to have knowledge of any Default unless and until
notice describing such Default is given to such Agent by the Loan Parties or a
Lender.

          The
Agents shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection
with this Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or the creation, perfection or priority
of any Lien purported to be created by this Agreement or any applicable
security documents, (v) the value or the sufficiency of any Collateral, or (vi)
the satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Agents.

37

          10.04
Reliance by Agents.

          Each
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including, but not limited to, any electronic
message, Internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person. Each Agent also may rely upon any statement made to it
orally or by telephone and believed by it to have been made by the proper
Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, the
Administrative Agent may presume that such condition is satisfactory to such
Lender unless the Administrative Agent shall have received written notice to
the contrary from such Lender prior to the making of such Loan. Each Agent may
consult with legal counsel (who may be counsel for any Loan Party), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

          10.05
Delegation of Duties. Each
Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more
sub-agents appointed by such Agent. Each Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the Agents and
any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as such Agent.

          10.06
Resignation of Agents.
Either Agent may at any time give written notice of its resignation to the
Lenders and the Borrower. Upon receipt of any such notice of resignation, the
Majority Lenders shall have the right, with the consent of the Borrower, to
appoint a successor, which shall be a bank with an office in the United States,
or an Affiliate of any such bank with an office in the United States. If no
such successor shall have been so appointed by the Majority Lenders and shall
have accepted such appointment within 30 days after the retiring Agent gives
notice of its resignation, then the retiring Agent may on behalf of the
Lenders, appoint a successor Administrative Agent or Collateral Agent, as
applicable, meeting the qualifications set forth above; provided that if
the Administrative Agent or the Collateral Agent shall notify the Borrower and
the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice
and (1) the retiring Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any
Collateral held by the Collateral Agent on behalf of the Lenders under any of
the Loan Documents, the retiring Collateral Agent shall continue to hold such
collateral security until such time as a successor Collateral Agent is
appointed) and (2) all payments, communications and determinations provided to
be made by, to or through the Administrative Agent shall instead be made by or
to each Lender directly, until such time as the Majority Lenders appoint a
successor Administrative Agent as provided for above in this Section. Upon the
acceptance of a successor’s appointment as Administrative Agent or Collateral
Agent, as applicable, hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Agent, and the retiring Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this Section). The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the retiring Agent’s resignation hereunder
and under the other Loan Documents, the provisions of this Article and Section
11.04 shall continue in effect for the benefit of such retiring Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Agent was acting as
Administrative Agent or Collateral Agent hereunder.

38

          10.07
Non-Reliance on Administrative Agent and
Other Lenders. Each Lender acknowledges that it has,
independently and without reliance upon the Agents or any other Lender or any
of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and
without reliance upon the Agents or any other Lender or any of their Related
Parties and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or
any related agreement or any document furnished hereunder or thereunder. Except
as provided in Section 10.11, the Agents shall not have any duty or
responsibility to provide any Credit Party with any other credit or other
information concerning the affairs, financial condition or business of any Loan
Party that may come into the possession of the Agents.

          10.08 Administrative
Agent May File Proofs of Claim.

          (a) In case of the pendency of any
proceeding under any Debtor Relief Laws or any other judicial proceeding
relative to any Loan Party, the Administrative Agent (irrespective of whether
the principal of any Loan shall then be due and payable as herein expressed or
by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Loan Parties) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

	
 

	
 

	
 

	
          (i) to file and prove a claim for the
  whole amount of the principal and interest owing and unpaid in respect of the
  Loans and all other Obligations that are owing and unpaid and to file such
  other documents as may be necessary or advisable in order to have the claims
  of the Lenders, the Administrative Agent and the other Credit Parties (including
  any claim for the reasonable compensation, expenses, disbursements and
  advances of the Lenders, the Administrative Agent, such Credit Parties and
  their respective agents and counsel and all other amounts due the Lenders,
  the Administrative Agent and such Credit Parties under Sections 2.06 and 11.04) allowed in such judicial proceeding; and

	
 

	
 

	
 

	
          (ii) to collect and receive any monies or
  other property payable or deliverable on any such claims and to distribute
  the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, if the Administrative Agent shall consent to the making
of such payments directly to the Lenders, to pay to the Administrative Agent
any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other
amounts due the Administrative Agent under Sections 2.06 and 11.04.

          (b) Nothing contained herein shall be
deemed to authorize the Administrative Agent to authorize or consent to or
accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender or to authorize the Administrative Agent to vote in respect of
the claim of any Lender in any such proceeding.

          10.09
Collateral and Guaranty Matters.
The Credit Parties irrevocably authorize the Agents, at their option and in
their discretion,

          (a) to release any Lien on any property
granted to or held by the Collateral Agent under any Loan Document (i) upon
termination of the Aggregate Commitments and payment in full of all Obligations
(other than contingent indemnification obligations for which no claim has been
asserted), (ii) that is sold or to be sold as part of or in connection with any
sale permitted hereunder or under any other

39

Loan Document, or (iii) if approved, authorized or
ratified in writing by the Majority Lenders in accordance with Section 11.01;

          (b) to subordinate any Lien on any property
granted to or held by the Collateral Agent under any Loan Document to the
holder of any Lien on such property that is permitted by clause (h) of the
definition of Permitted Encumbrances;

          (c) to release any guarantor from its
obligations under any Guarantee if such Person ceases to be a Subsidiary as a
result of a transaction permitted hereunder; and

          (d) to reduce the face amount of the Term
Loan Letter of Credit.

Upon request by any Agent at any time, the Majority
Lenders will confirm in writing such Agent’s authority to release or
subordinate its interest in particular types or items of property, or to
release any guarantor from its obligations under any Guarantee pursuant to this
Section 10.09. In each case as specified in this Section 10.09,
the Agents will, at the Loan Parties’ expense, execute and deliver to the
applicable Loan Party such documents as such Loan Party may reasonably request
to evidence the release of such item of Collateral from the assignment and
security interest granted under this Agreement or any applicable security
documents or to subordinate its interest in such item, or to release such
guarantor from its obligations under any Guarantee, in each case in accordance
with the terms of the Loan Documents and this Section 10.09.

          10.10
Notice of Transfer. The
Agents may deem and treat a Lender party to this Agreement as the owner of such
Lender’s portion of the Obligations for all purposes, unless and until, and
except to the extent, an Assignment and Acceptance shall have become effective
as set forth in Section 11.06.

          10.11
Reports and Financial Statements.
By signing this Agreement, each Lender:

          (a) agrees to furnish the Administrative
Agent on the first day of each month with a summary of all Other Liabilities
due or to become due to such Lender;

          (b) is deemed to have requested that the
Administrative Agent furnish such Lender, promptly after they become available,
copies of all financial statements required to be delivered by the Borrower
hereunder and all commercial finance examinations and appraisals of the
Collateral received by the Agents (collectively, the “Reports”);

          (c) expressly agrees and acknowledges that
the Administrative Agent makes no representation or warranty as to the accuracy
of the Reports, and shall not be liable for any information contained in any
Report;

          (d) expressly agrees and acknowledges that
the Reports are not comprehensive audits or examinations, that the Agents or
any other party performing any audit or examination will inspect only specific
information regarding the Loan Parties and will rely significantly upon the
Loan Parties’ books and records, as well as on representations of the Loan
Parties’ personnel;

          (e) agrees to keep all Reports confidential
in accordance with the provisions of Section 11.07; and

          (f) without limiting the generality of any
other indemnification provision contained in this Agreement, agrees: (i) to
hold the Agents and any such other Lender preparing a Report harmless from any
action the indemnifying Lender may take or conclusion the indemnifying Lender
may reach or draw

40

from any Report in connection with any Loan that the
indemnifying Lender has made or may make to the Borrower, or the indemnifying
Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or
Loans; and (ii) to pay and protect, and indemnify, defend, and hold the Agents
and any such other Lender preparing a Report harmless from and against, the
claims, actions, proceedings, damages, costs, expenses, and other amounts
(including attorney costs) incurred by the Agents and any such other Lender
preparing a Report as the direct or indirect result of any third parties who
might obtain all or part of any Report through the indemnifying Lender.

          10.12
Agency for Perfection. Each
Lender hereby appoints each other Lender as agent for the purpose of perfecting
Liens for the benefit of the Agents and the Lenders, in assets which, in
accordance with Article 9 of the UCC or any other Applicable Law of the United
States can be perfected only by possession. Should any Lender (other than the
Agents) obtain possession of any such Collateral, such Lender shall notify the
Agents thereof, and, promptly upon the Collateral Agent’s request therefor
shall deliver such Collateral to the Collateral Agent or otherwise deal with
such Collateral in accordance with the Collateral Agent’s instructions.

          10.13
Indemnification of Agents.
The Lenders agree to indemnify the Agents (to the extent not reimbursed by the
Loan Parties and without limiting the obligations of Loan Parties hereunder),
ratably according to their respective pro rata shares, from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that
may be imposed on, incurred by, or asserted against any Agent in any way
relating to or arising out of this Agreement or any other Loan Document or any
action taken or omitted to be taken by any Agent in connection therewith;
provided, that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s gross negligence or
willful misconduct as determined by a final and nonappealable judgment of a
court of competent jurisdiction.

          10.14
Relation among Lenders. The
Lenders are not partners or co-venturers, and no Lender shall be liable for the
acts or omissions of, or (except as otherwise set forth herein in case of the
Agents) authorized to act for, any other Lender.

ARTICLE XI.

MISCELLANEOUS

          11.01
Amendments, Etc.

          (a) No amendment or waiver of any provision
of this Agreement or any other Loan Document, and no Consent to any departure
by any Loan Party therefrom, shall be effective unless in writing signed by the
Administrative Agent, with the Consent of the applicable Lenders, and the
Borrower or the applicable Loan Party, as the case may be, and acknowledged by
the Administrative Agent, and each such waiver or Consent shall be effective
only in the specific instance and for the specific purpose for which given.

          (b) Notwithstanding any other provision of
this Agreement or any Loan Document, including without limitation, any other
provision of this Section 11.01:

	
 

	
 

	
 

	
          (i) Any matter
  that requires the consent of the Majority Lenders or Unanimous Lenders shall
  also require the consent of each of the Agents;

41

	
 

	
 

	
 

	
          (ii)
  Any matter which may be determined by the Administrative Agent in its
  discretion, shall also require the consent of each of the other Agents;

	
 

	
 

	
 

	
          (iii) Upon the occurrence of any Event of
  Default, the Agents, in their discretion may, and either of the
  Administrative Agent or the Managing Agents may, require the Agents to, cease
  making Loans, declare the occurrence of an Event of Default, implement any
  default rate of interest, accelerate all Obligations, and require the
  enforcement of the provisions of this Agreement or any applicable security
  documents authorizing the sale or other disposition of all or any part of the
  Collateral and exercise all or any such other legal and equitable and other
  rights or remedies as it may have in respect of such Collateral.

          (c) Except as otherwise provided in this
Agreement, the consent or direction of the Majority Lenders is required for any
amendment, waiver, or modification of any Loan Document. In addition:

	
 

	
 

	
 

	
          (i)
  The Majority Lenders may direct the Agents to suspend making Loans if the
  Borrower is then in Default, following which direction, and for as long as
  the Borrower is in Default, the only Loans which may be made are the
  following:

	
 

	
 

	
 

	
 

	
 

	
          (A) Loans made with consent of the
  Majority Lenders;

	
 

	
 

	
 

	
          (ii)
  The Majority Lenders may undertake the following if an Event of Default has
  occurred and not been duly waived:

	
 

	
 

	
 

	
 

	
 

	
          (A) Require the Agents to declare all
  Obligations to be immediately payable in full; and

	
 

	
 

	
 

	
 

	
 

	
          (B) Direct the Agents to increase the
  rate of interest to the Default Rate as provided in, and to the extent
  permitted by, this Agreement.

	
 

	
 

	
 

	
(d) The consent
  or direction of the following is required for the following actions:

	
 

	
 

	
 

	
          (i) Any forgiveness of all or any portion
  of any payment Obligation: all Lenders whose payment Obligation is being so
  forgiven (other than any Defaulting Lender); and

	
 

	
 

	
 

	
          (ii) Any decrease in any interest rate or
  fee payable under any of the Loan Documents (other than any fee payable to
  the Agents (for which the consent of the Agents shall be required): all
  Lenders adversely affected thereby (other than any Defaulting Lender).

          (e) None of the following may take place
except with the Consent of the Unanimous Lenders:

	
 

	
 

	
 

	
          (i)
  Any release of a material portion of the Collateral, other than a release of
  Collateral otherwise required or provided for in the Loan Documents, unless
  such release is being made to facilitate a liquidation which has been
  previously authorized, or is otherwise permitted hereunder, in which case no
  such Consent of Unanimous Lenders is required;

	
 

	
 

	
 

	
          (ii) Any release of any Person obligated
  on account of the Obligations;

	
 

	
 

	
 

	
          (iii)
  Any amendment of this Section 11.01;

	
 

	
 

	
 

	
          (iv)
  Amendment of any of the following Definitions:

42

	
 

	
 

	
 

	
 

	
 

	
          (A) “Majority Lenders”;

	
 

	
 

	
 

	
 

	
 

	
          (B) “Unanimous Lenders”;

                    (v)
Any amendment of the Maturity Date; and

          (f) No action, amendment, or waiver of
compliance with, any provision of the Loan Documents or of this Agreement which
affects any Agent in its respective capacity as an Agent may be undertaken
without the written consent of such Agent, and no action referenced herein
which affects the rights, duties, obligations, or liabilities of any Agent
shall be effective without the written consent of that Agent.

          (g) Notwithstanding anything to the
contrary in this Section 11.01, 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.

          (h) If any Lender does not Consent (a
“Non-Consenting Lender”) to a proposed
amendment, waiver, consent or release with respect to any Loan Document that
requires the Consent of each Lender and that has been approved by the Majority
Lenders, the Borrower may replace such Non-Consenting Lender in accordance with
Section 11.13; provided that such amendment, waiver, consent or release
can be effected as a result of the assignment contemplated by such Section
(together with all other such assignments required by the Borrower to be made
pursuant to this paragraph).

          11.02
Notices; Effectiveness; Electronic Communications.

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

	
 

	
 

	
 

	
          (i) if to the Borrower, at 125 South
  Wacker, #2600, Chicago, Illinois 60606-1719, Attention: Chief Financial
  Officer, or at such other address for notice as the Borrower shall last have
  furnished in writing to the Person giving the notice;

	
 

	
 

	
 

	
          (ii) if to the Administrative Agent, the
  Collateral Agent, or LaSalle, 25 Braintree Hill Office Park, Braintree,
  Massachusetts 02184 Attention: Robert Barnhard, or such other address for
  notice as the Administrative Agent, the Collateral Agent, or, as the case may
  be, LaSalle shall last have furnished in writing to the Person giving the
  notice;

	
 

	
 

	
 

	
          (iii) if to any Lender, at such Lender’s
  address set forth on Schedule 2.01,
  or such other address for notice as such Bank shall have last furnished
  in writing to the Person giving the notice.

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next
Business Day for the recipient). Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b).

43

          (b) Notices
and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender pursuant to Article
XI if such Lender, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under
such Article by electronic communication. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications.

          Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that
if
such notice or other communication is not sent during the normal business hours of the recipient, such
notice or communication shall be deemed to have been sent at the opening of
business on the next Business Day for the recipient, and (ii) notices or
communications posted to an Internet
or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and
identifying the website address therefor.

          (c) Each of the Loan Parties and Agents may change
its address, telecopier
or telephone number for notices and
other communications hereunder by notice to the other parties hereto. Each
other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower and the Agents. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which notices and other communications may be
sent and (ii) accurate wire instructions for such Lender.

          (d) The Agents and the Lenders shall be entitled to
rely and act upon any
notices (including telephonic Loan Notices) purportedly given by or on behalf
of the Loan Parties even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii)
the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Loan Parties shall
indemnify the Agents, each Lender and the Related Parties of each of them from
all losses, costs, expenses and liabilities resulting from the reliance by such
Person on each notice purportedly given
by or on behalf of the Loan Parties. All telephonic notices to and other telephonic communications with the Agents
may be recorded by the Agents, and each of the parties hereto hereby consents
to such recording.

          11.03
 No Waiver; Cumulative Remedies. No failure by any Credit Party to exercise, and no delay by any such Person in exercising,
any
right, remedy, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder or under any other Loan
Document preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges provided herein and in the other Loan Documents are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.
Without limiting the generality of the foregoing, the making of a Loan shall
not be construed as a waiver of any Default, regardless of whether any Credit
Party may have had notice or knowledge of such Default at the time.

          11.04
Expenses; Indemnity; Damage Waiver.

          (a) The Borrower shall pay all Credit Party
Expenses.

44

          (b) The Loan Parties shall indemnify the Agents
(and any sub-agent thereof),
each other Credit Party, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses,
claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee), incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of,
in connection with, or as a result of

	
 

	
 

	
 

	
          (i) the execution or delivery of this Agreement,
  any other Loan Document or any
  agreement or instrument contemplated hereby or thereby, the performance by
  the parties hereto of their
  respective obligations hereunder or thereunder or the consummation of the
  transactions contemplated hereby or thereby, or, in the case of the Agents
  (and any sub-agents thereof) only,
  the administration of this Agreement and the other Loan Documents;

	
 

	
 

	
 

	
          (ii) any Loan or the use or proposed use of the
  proceeds therefrom;

	
 

	
 

	
 

	
          (iii) any actual or alleged presence or release of
  Hazardous Materials on or from any
  property owned or operated by any Loan Party or any of its Subsidiaries, or
  any Environmental Liability related in any way to any Loan Party or any of
  its Subsidiaries;

	
 

	
 

	
 

	
          (iv) any claims of, or amounts paid by any Credit
  Party to, any Person which has entered
  into a control agreement with any Credit Party hereunder; or

	
 

	
 

	
 

	
          (v) any actual or prospective claim, litigation,
  investigation or proceeding relating
  to any of the foregoing, whether based on contract, tort or any other theory,
  whether brought by a third party or by Borrower or any other Loan Party or
  any of the Loan Parties’ directors,
  shareholders or creditors, and regardless of whether any Indemnitee is a
  party thereto, in all cases, whether or not caused by or arising, in whole or
  in part, out of the comparative, contributory or sole negligence of the
  Indemnitee;

          provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee, (y) result from a
claim brought by a Borrower or any other Loan Party against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder or under any
other Loan Document, if the Borrower or such Loan Party has obtained a final
and nonappealable judgment in its
favor on such claim as determined by a court of competent jurisdiction or (z)
arise out of or in connection with
claims solely between and among one or more Credit Parties.

          (c)
To the extent that the
Loan Parties for any reason fail to indefeasibly pay any amount required under subsection (a) or (b) of this
Section to be paid by it, each Lender severally agrees to pay to the Agents (or any such sub-agent) or such Related
Party, as the case may be, such Lender’s Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Agents (or any such sub-agent), or against any Related
Party of any of the foregoing acting for the Agents (or any such sub-agent) in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the
provisions of Section 2.09(e). 

          (d)
 To the fullest extent
permitted by applicable Law, the Loan Parties shall not assert, and hereby waive, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection

45

with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or the use of the proceeds thereof. No Indemnitee shall be liable for any
damages arising from the use by unintended recipients of any information or
other materials distributed to such unintended recipients by such Indemnitee
through telecommunications, electronic or other information transmission
systems in connection with this Agreement
or the other Loan Documents or the transactions contemplated hereby or thereby
other than for direct or actual damages resulting from the gross negligence or
willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

          (e) All amounts due under
this Section shall be payable not later than ten Business Days after demand therefor.

          (f)
 The
agreements in this Section shall survive the resignation of any Agent, the
assignment of any Commitment or
Loan by any Lender, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations.

          11.05
 Payments Set Aside. To the extent that any
payment by or on behalf of the Loan Parties is made to any Credit Party, or any Credit Party exercises its right of
setoff, and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by such Credit
Party in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under
any Debtor Relief Laws or otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had
not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to the Agents upon demand its
applicable share (without duplication) of any amount so recovered from or repaid
by the Agents, plus interest thereon from the date of such demand to the date
such payment is made at a rate per annum equal to the Federal Funds Effective
Rate from time to time in effect. The obligations
of the Lenders under clause (b) of the preceding sentence shall survive the
payment in full of the Obligations and the termination of this
Agreement.

          11.06
 Successors and Assigns.

          (a) The provisions of this 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 Loan Party may assign or otherwise transfer
any of its rights or obligations hereunder or under any other Loan Document without the prior written Consent of the
Administrative 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 11.06(b), (ii) by way of participation in
accordance with the provisions of subsection Section 11.06(d), or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 11.06(e) (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this
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 Section 11.06(d) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Credit Parties) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans
(including for purposes of this Section 11.06(b)) at the time owing to
it); provided that any such assignment shall be subject to the
following conditions:

46

	
 

	
 

	
 

	
 

	
          (i) Minimum
  Amounts

	
 

	
 

	
 

	
 

	
 

	
          (A) in the case of an assignment of the entire
remaining amount of the
  assigning Lender’s Commitment and the Loans at the time owing to it or in the
  case of an assignment to a Lender
  or an Affiliate of a Lender or an Approved Fund with respect to a Lender, no minimum amount need be assigned;
  and

	
 

	
 

	
 

	
 

	
 

	
          (B)
   in any case not
  described in Section 11.06(b)(i)(A), the aggregate amount of the Commitment (which for this
  purpose includes Loans outstanding thereunder)
  or, if the Commitment is not then in effect, the principal outstanding
  balance of the Loans of the assigning Lender subject to each such assignment,
  determined as of the date the Assignment and Assumption with respect to such
  assignment is delivered to the Administrative Agent or, if “Trade Date” is
  specified in the Assignment and Assumption, as of the Trade Date, shall not
  be less than $10,000,000 unless
  each of the Administrative Agent and, so long as no Default has occurred and is continuing, the
  Borrower otherwise consents (each such consent not to be unreasonably
  withheld or delayed); provided, however, that concurrent assignments
  to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible
  Assignee (or to an Eligible Assignee and members of its Assignee Group) will
  be treated as a single assignment for purposes of determining whether such
  minimum amount has been met;

	
 

	
 

	
 

	
 

	
          (ii) Proportionate
  Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the
  assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the
  Commitment assigned;

	
 

	
 

	
 

	
 

	
          (iii) Required
  Consents. No consent shall be required for any assignment
  except to the extent required by Section 11.06(b)(i)(B) and, in
  addition:

	
 

	
 

	
 

	
 

	
 

	
          (A)
   the consent of the
  Borrower (such consent not to be unreasonably withheld or delayed) shall be
  required unless (1) a Default has occurred and is continuing at the time of such assignment or
  (2) such assignment is to a Lender, an
  Affiliate of a Lender or an Approved Fund; and

	
 

	
 

	
 

	
 

	
 

	
          (B)
   the consent of the
  Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments
  in respect of any Commitment if
  such assignment is to a Person that is not a Lender, an Affiliate of such
  Lender or an Approved Fund with respect to such Lender; and

	
 

	
 

	
 

	
 

	
          (iv) Assignment
  and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an
  Assignment and Assumption, together with a processing and recordation fee of
  $3,500, provided, however, that the Administrative Agent may, in its
  sole discretion, elect to waive such processing and recordation fee in the
  case of any assignment.

          Subject
to acceptance and recording thereof by the Administrative Agent pursuant to Section
11.06(c), from and after the effective date specified in each Assignment
and Assumption, the Eligible Assignee
thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and

47

Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05 and
11.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment. Upon request, the Borrower (at its expense)
shall execute and deliver a Term Note to the assignee Lender. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall
be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with Section 11.06(d). 

          (c)
The Administrative Agent,
acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative 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 owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The
entries in the Register shall be conclusive, absent manifest error, and the
Loan Parties, the Administrative 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 Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and
any Lender at any reasonable time and from time to time upon reasonable prior
notice.  

          (d)
 With respect to the sale
of Participations:

	
 

	
 

	
 

	
          (i) any Lender may at any time, without the consent
of, or notice to, the Loan Parties or the Administrative Agent, sell
participations to any Person (other than a natural person or the Loan Parties
or any of the Loan Parties’ Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights
and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans owing to it); provided
that (x) such Lender’s obligations under this Agreement shall remain
unchanged, (y) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Loan Parties,
the Agents and the Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any Participant shall agree in writing to comply with all
confidentiality obligations set forth in Section 11.07 as if such
Participant was a Lender hereunder;  

	
 

	
 

	
 

	
          (ii) 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 Agreement and to approve any amendment,
modification or waiver of any provision of this 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 in the first proviso to Section 11.01 that affects such Participant. Subject
to subsection (e) of this Section, the Loan Parties agree that each
Participant shall be entitled to the benefits of Sections 3.01 and 3.04 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 11.06(b). To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 11.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.10 as though it were a Lender; and 

	
 

	
 

	
 

	
          (iii) a Participant shall not be entitled to receive
  any greater payment under Section 3.01 or 3.04 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 Borrower’s prior
  written consent. A Participant that would be a

48

	
 

	
 

	
 

	
Foreign Lender if it were a
  Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified of the participation
  sold to such Participant and such Participant agrees, for the benefit of the Loan Parties, to comply with Section
  3.01(e) as though it were a Lender.

          (e)  Any Lender may at any time pledge or assign a
security interest in all
or any portion of its rights under
this Agreement (including under its Term Note, if any) to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall
release such Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

          (f) 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.

          11.07
Treatment of Certain Information; Confidentiality.

          (a) Each of the Credit Parties agrees to maintain
the confidentiality of the Information (as defined below), except that Information may be disclosed:

	
 

	
 

	
 

	
          (i) to its Affiliates and to its and its
  Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (it being
  understood that the Persons to whom
  such disclosure is made will be informed of the confidential nature of such
  Information and instructed to keep such Information confidential);

	
 

	
 

	
 

	
          (ii) to the extent requested by any regulatory
  authority purporting to have jurisdiction
  over it (including any self-regulatory authority, such as the National
  Association of Insurance Commissioners);

	
 

	
 

	
 

	
          (iii) to the extent required by applicable Laws or
  regulations or by any subpoena or
  similar legal process;

	
 

	
 

	
 

	
          (iv) to any other party hereto;

	
 

	
 

	
 

	
          (v) in connection with the exercise of any
  remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
  or any other Loan Document or the enforcement of rights hereunder or
  thereunder;

	
 

	
 

	
 

	
          (vi) subject to an agreement containing provisions
  substantially the same as those of
  this Section, to (x) any assignee of or Participant in, or any prospective
  assignee of or Participant in, any of its rights or obligations under this
  Agreement or (y) any actual or prospective
  counterparty (or its advisors) to any swap or derivative transaction relating
  to any Loan Party and its
  obligations;

	
 

	
 

	
 

	
          (vii) with the consent of the Borrower;
or

49

	
 

	
 

	
 

	
          (viii)
   to the extent such
  Information (x) becomes publicly available other than as a result of a breach of this Section or (y)
  becomes available to any Credit Party or any of their respective Affiliates on a non-confidential
  basis from a source other than the Loan Parties.

          (b)
 For purposes of this
Section, “Information” means
all information received from the Loan
Parties or any Subsidiary thereof relating to the Loan Parties or any
Subsidiary thereof or their respective businesses, other than any such
information that is available to any Credit Party on a non-confidential basis
prior to disclosure by the Loan Parties or any Subsidiary thereof. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality
of such Information as such Person would accord to its own confidential
information.

          (c) Each
of the Credit Parties acknowledges that (i) Information may include material
non-public information concerning the Loan Parties or a Subsidiary, as the
case may be, (ii) it has developed compliance procedures regarding the use of
material non-public information and (ii) it will handle such material non-public information in accordance
with applicable Law, including Federal and state securities Laws.

          11.08
Right of Setoff. If an Event of Default shall have occurred and be continuing or if any
Lender shall have been served with a trustee process or similar attachment
relating to property of a Loan Party, each Lender, and each of their respective
Affiliates is hereby authorized at any time and from time to time, after
obtaining the prior written consent of the Administrative Agent or the Majority
Lenders, to the fullest extent
permitted by applicable law, to set off and apply any and all deposits (general
or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, or any
such Affiliate to or for the credit or the account of the Borrower or any other
Loan Party against any and all of the Obligations now or hereafter existing under this Agreement or any other Loan
Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement or any other Loan Document and although such obligations of the
Borrower or such Loan Party may be contingent or unmatured or are owed to a
branch or office of such Lender different from the branch or office holding
such deposit or obligated on such indebtedness. The rights of each Lender and
its Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender or its Affiliates may have.
Each Lender agrees to notify the Borrower and the Administrative Agent promptly
after any such setoff and application, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

          11.09
Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or
agreed to be
paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum
Rate”). If the Administrative
Agent or any Lender shall receive interest in an amount that exceeds the
Maximum Rate, the excess interest
shall be applied to the principal of the Loans or, if it exceeds such unpaid
principal, refunded to the Borrower.
In determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable
Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in
equal or unequal parts the total amount of interest throughout the contemplated
term of the Obligations hereunder.

          11.10
 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto
in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Agreement and the

50

other Loan Documents constitute
the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be as effective
as delivery of a manually executed counterpart of this Agreement.

          11.11
Survival. 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 Credit
Parties, regardless of any investigation made by any Credit Party or on their behalf and notwithstanding that any
Credit Party may have had notice or knowledge of any Default at the time of any
Loan, and shall continue in full force and effect as long as any Loan or any
other Obligation hereunder shall remain unpaid or unsatisfied. Further, the
provisions of Sections 3.01, 3.04, 3.05 and 11.04, as well as
Article IX, shall survive and remain in full force and effect regardless of the repayment of the Obligations, the expiration
or termination of the Commitments or the termination of this Agreement or any provision hereof. In
connection with the termination of this Agreement and the release and termination of the security interests
in the Collateral, the Agents may require such indemnities and collateral
security as they shall reasonably deem necessary or appropriate to protect the
Credit Parties against (i) loss on
account of credits previously applied to the Obligations that may subsequently
be reversed or revoked, and (ii) any
obligations that may thereafter arise with respect to the Other Liabilities.  

          11.12
Severability. If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          11.13
Replacement of Lenders.

          (a) If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 3.01, or any Lender
gives a notice pursuant to Section 3.02, or if any Lender is a
Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its
sole expense and effort, upon notice to such Lender and the Administrative
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 11.06), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

	
 

	
 

	
 

	
          (i) the Borrower shall have paid to the
  Administrative Agent the assignment fee specified in Section 11.06(b);

	
 

	
 

	
 

	
          (ii) such Lender (other than a Defaulting Lender or
  Non-Consenting Lender) shall have received payment of an amount equal to the
  outstanding principal of its Loans, accrued
  interest thereon, accrued fees and all other amounts payable to it hereunder
  and under the other Loan Documents
  (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and
  accrued interest and fees) or the Borrower (in the

51

	
 

	
 

	
 

	
case of all other amounts), and
  any Defaulting Lender or Non-Consenting Lender shall have received payment of an amount equal to the
  outstanding principal of its Loans and accrued interest thereon;

	
 

	
 

	
 

	
          (iii) in the case of any such assignment resulting
  from a claim for compensation under
  Section 3.04 or payments required to be made pursuant to Section
  3.01 or  Section 3.02, such
  assignment will result in a reduction in such compensation or payments
  thereafter; and

	
 

	
 

	
 

	
          (iv) such assignment does not conflict with
  applicable Laws.

          (b) 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 Borrower to require such assignment and delegation cease to
apply.

          11.14
Governing Law; Jurisdiction; Etc.

          (a)
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF ILLINOIS.

          (b)
SUBMISSION TO JURISDICTION. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND
ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF ILLINOIS AND OF ANY FEDERAL COURT SITTING THEREIN AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT,
AND EACH OF THE LOAN PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH COURT OF THE STATE OF ILLINOIS OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH
FEDERAL COURT. EACH OF THE LOAN
PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT
SHALL AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          (c)
WAIVER OF VENUE. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE LOAN
PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

          (d) SERVICE
OF PROCESS. EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

52

          11.15
Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          11.16
 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction
contemplated hereby, the Loan Parties each acknowledge and agree that: (i) the
credit facility provided for hereunder and any related arranging or other
services in connection therewith (including in connection with any amendment, waiver or other modification hereof or
of any other Loan Document) are an arm’s-length commercial transaction between
the Loan Parties, on the one hand, and the Credit Parties, on the other hand, and each of the Loan Parties is
capable of evaluating and understanding and understands and accepts the terms,
risks and conditions of the transactions contemplated hereby and by the other
Loan Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with
the process leading to such transaction, the each Credit Party is and has been
acting solely as a principal and is not the financial advisor, agent or fiduciary,
for the Loan Parties or any of their respective
Affiliates, stockholders, creditors or employees or any other Person; (iii)
none of the Credit Parties has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Loan Parties with respect to any of
the transactions contemplated hereby or the process leading thereto, including
with respect to any amendment, waiver or other modification hereof or of any
other Loan Document (irrespective of
whether any of the Credit Parties has advised or is currently advising any Loan
Party or any of its Affiliates on
other matters) and none of the Credit Parties has any obligation to any Loan
Party or any of its Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other
Loan Documents; (iv) the Credit Parties and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of the Loan Parties and their respective Affiliates, and none of the
Credit Parties has any obligation to
disclose any of such interests by virtue of any advisory, agency or fiduciary
relationship; and (v) the Credit
Parties have not provided and will not provide any legal, accounting, regulatory
or tax advice with respect to any of the transactions contemplated hereby
(including any amendment, waiver or other modification hereof or of any other
Loan Document) and each of the Loan Parties has consulted its own legal,
accounting, regulatory and tax advisors to the extent it has deemed
appropriate. Each of the Loan Parties hereby waives and releases, to the
fullest extent permitted by law, any claims that it may have against each of the Credit Parties with
respect to any breach or alleged breach of agency or fiduciary duty.

          11.17
USA PATRIOT Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Loan
Parties that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies each Loan Party, which information includes the
name and address of each Loan Party and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify each Loan
Party in accordance with the Act. Each Loan Party is in compliance, in all
material respects, with the Patriot
Act. No part of the proceeds of the Loans will be used by the Loan Parties,
directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a 

53

political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

          11.18
Time of the Essence. Time is of the essence of the Loan Documents.

          11.19
Press Releases. Each Credit Party executing this Agreement agrees that neither it nor
its Affiliates will in the future
issue any press releases or other public disclosure using the name of Administrative Agent or its Affiliates or
referring to this Agreement or the other Loan Documents without at least two
(2) Business Days’ prior notice to Administrative Agent and without the prior
written consent of Administrative
Agent unless (and only to the extent that) such Credit Party or Affiliate is
required to do so under Applicable Law and then, in any event, such Credit
Party or Affiliate will consult with Administrative Agent before issuing such
press release or other public disclosure. No Credit Party shall publish
advertising material relating to the financing transactions contemplated by
this Agreement using any Loan Party’s name, product photographs, logo or
trademark without the prior written consent of Borrower. Administrative Agent
or such Lender shall provide a draft reasonably in advance of any advertising
material to the Borrower for review and comment prior to the publication
thereof. Administrative Agent reserves the right to provide to industry trade
organizations information necessary and customary for inclusion in league table
measurements.

          11.20
Additional Waivers.

          (a)
 The Obligations are the
joint and several obligation of each Loan Party. To the fullest extent
permitted by Applicable Law, the obligations of each Loan Party shall not be
affected by (i) the failure of any Credit Party to assert any claim or demand
or to enforce or exercise any right or remedy against any other Loan Party
under the provisions of this Agreement, any other Loan Document or otherwise, (ii) any rescission, waiver, amendment
or modification of, or any release from any of the terms or provisions of, this Agreement or any other Loan
Document, or (iii) the failure to perfect any security interest in, or the
release of, any of the Collateral or other security held by or on behalf of the
Collateral Agent or any other Credit Party.

          (b)
 The obligations of each
Loan Party shall not be subject to any reduction, limitation, impairment or
termination for any reason (other than the indefeasible payment in full in cash
of the Obligations after the
termination of the Commitments), including any claim of waiver, release,
surrender, alteration or compromise
of any of the Obligations, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of any of the Obligations or otherwise. Without
limiting the generality of the foregoing, the obligations of each Loan Party hereunder shall not be discharged or
impaired or otherwise affected by the failure of any Agent or any other Credit
Party to assert any claim or demand or to enforce any remedy under this
Agreement, any other Loan Document or any other agreement, by any waiver or
modification of any provision of any
thereof, any default, failure or delay, willful or otherwise, in the
performance of any of the Obligations, or by any other act or omission that may
or might in any manner or to any extent vary the risk of any Loan Party or that
would otherwise operate as a discharge of any Loan Party as a matter of law or equity (other than the
indefeasible payment in full in cash of all the Obligations after the
termination of the Commitments).

          (c)
 To the fullest extent
permitted by Applicable Law, each Loan Party waives any defense based on or
arising out of any defense of any other Loan Party or the unenforceability of
the Obligations or any part thereof
from any cause, or the cessation from any cause of the liability of any other
Loan Party, other than the
indefeasible payment in full in cash of all the Obligations and the termination
of the Commitments. The Collateral Agent and the other Credit Parties may, at
their election, foreclose on any

54

security held by one or more of
them by one or more judicial or nonjudicial sales, accept an assignment of any
such security in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation
with any other Loan Party, or exercise any other right or remedy available to
them against any other Loan Party, without affecting or impairing in any way
the liability of any Loan Party hereunder except to the extent that all the
Obligations have been indefensibly paid in full in cash and the Commitments
have been terminated. Each Loan Party waives any defense arising out of any
such election even though such election operates, pursuant to Applicable Law,
to impair or to extinguish any right
of reimbursement or subrogation or other right or remedy of such Loan Party
against any other Loan Party, as the
case may be, or any security.

          (d) Upon payment by any Loan Party of any
Obligations, all rights of such Loan Party against any other Loan Party arising
as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in
all respects be subordinate and junior in right of payment to the prior indefeasible payment in full in cash
of all the Obligations and the date that the Commitments have been terminated. In addition, any
indebtedness of any Loan Party now or hereafter held by any other Loan Party is hereby subordinated in right of
payment to the prior indefeasible payment in full of the Obligations and no
Loan Party will demand, sue for or otherwise attempt to collect any such
indebtedness. If any amount shall erroneously be paid to any Loan Party on
account of (i) such subrogation,
contribution, reimbursement, indemnity or similar right or (ii) any such
indebtedness of any Loan Party, such
amount shall be held in trust for the benefit of the Credit Parties and shall forthwith
be paid to the Administrative Agent to be credited against the payment of the
Obligations, whether matured or unmatured, in accordance with the terms of this
Agreement and the other Loan Documents.

          11.21
No Strict Construction. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

          11.22
Attachments. The exhibits, schedules and annexes attached to this Agreement are incorporated herein and shall be considered
a
part of this Agreement for the purposes stated herein, except that in the event of any conflict between any of
the provisions of such exhibits and the provisions of this Agreement, the
provisions of this Agreement shall prevail.

[Signature
pages follow]

55

          IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

	
 

	
 

	
 

	
 

	
BORROWER

	
 

	
 

	
 

	
WHITEHALL JEWELLERS, INC.

	
 

	
 

	
 

	
By:

	
/s/ Edward Dayoob

	
 

	
 

	

	
 

	
Name:

	
Edward Dayoob

	
 

	
Title:

	
CEO & President

Signature Page to
Term Loan and Security Agreement

	
 

	
 

	
 

	
 

	
LASALLE BANK NATIONAL

  ASSOCIATION, as Administrative Agent and

  as Collateral Agent

	
 

	
 

	
 

	
By:

	
/s/ Jeff Ryan

	
 

	
 

	

	
 

	
Name:

	
Jeff Ryan

	
 

	
Title:

	
VP

Signature Page to
Term Loan and Security Agreement

	
 

	
 

	
 

	
 

	
LASALLE BANK NATIONAL

  ASSOCIATION, as a Lender

	
 

	
 

	
 

	
By:

	
/s/ Jeff Ryan

	
 

	
 

	

	
 

	
Name:

	
Jeff Ryan

	
 

	
Title:

	
VP

Signature Page to
Term Loan and Security Agreement

	
 

	
 

	
 

	
 

	
WELLS FARGO RETAIL FINANCE, LLC,

  as a Lender

	
 

	
 

	
 

	
By:

	
/s/ Didi Do

	
 

	
 

	

	
 

	
Name:

	
Didi Do

	
 

	
Title:

	
AVP

	
 

	
 

	
 

	
 

	
WELLS FARGO RETAIL FINANCE, LLC,

  as a Managing Agent

	
 

	
 

	
 

	
By:

	
/s/ Didi Do

	
 

	
 

	

	
 

	
Name:

	
Didi Do

	
 

	
Title:

	
AVP

Signature Page to
Term Loan and Security Agreement

	
 

	
 

	
 

	
 

	
GMAC COMMERCIAL FINANCE LLC,
  as
a
  Lender

	
 

	
 

	
 

	
By:

	
/s/ Michael Malcangi

	
 

	
 

	

	
 

	
Name:

	
Michael Malcangi

	
 

	
Title:

	
Vice President

Signature Page to
Term Loan and Security Agreement

	
 

	
 

	
 

	
 

	
BANK OF
  AMERICA, N.A., as a
  Lender

	
 

	
 

	
 

	
By:

	
/s/ Mark D. Twomey

	
 

	
 

	

	
 

	
Name:

	
Mark D. Twomey

	
 

	
Title:

	
VP

	
 

	
 

	
 

	
 

	
BANK OF
  AMERICA, N.A., as a
  Managing

  Agent

	
 

	
 

	
 

	
By:

	
/s/ Mark D. Twomey

	
 

	
 

	

	
 

	
Name:

	
Mark D. Twomey

	
 

	
Title:

	
VP

1001697.5

Signature Page to Term Loan and Security Agreement

EXHIBIT A

FORM OF LOAN NOTICE 

Date: __________, ____

To: LaSalle
Bank National Association

Ladies and
Gentlemen: 

          Reference
is made to that certain Term Loan and Security Agreement, dated as of May 21,
2007 (as amended, modified, supplemented or restated and in effect from time to
time, the “Loan Agreement”) by, among others, WHITEHALL JEWELLERS, INC., a
Delaware corporation (the “Borrower”), the Lenders from time to time party
thereto (individually, a “Lender” and, collectively, the “Lenders”), and
LASALLE BANK NATIONAL ASSOCIATION, as administrative agent (in such capacity,
the “Administrative Agent”) for its own benefit and the benefit of the other
Credit Parties. Capitalized terms used but not defined herein shall have the
meanings set forth in the Loan Agreement.  

	
 

	
 

	
 

	
 

	
The Borrower
  hereby requests: 

	
 

	
 

	
 

	
 

	
1.

	
A [Loan]
  [conversion of a Loan from one Type to the other][continuation of LIBOR
  Loans] 

	
 

	
 

	
 

	
 

	
2.

	
On
  _______________________________ (a Business Day)1

	
 

	
 

	
 

	
 

	
3.

	
In the
  amount of $____________________ 2

	
 

	
 

	
 

	
 

	
4.

	
Comprised of
  ______________________ (Type of Loan)3

	
 

	
 

	
 

	
 

	
5.

	
For LIBOR
  Loans: with an Interest Period of ____ months.4

1 Each
notice of a Borrowing must be received by the Administrative Agent not later
than 12:00 noon (i) three Business Days prior to the requested date of any Loan
of, conversion to or continuation of LIBOR Loans or of any conversion of LIBOR
Loans to Base Rate Loans, and (ii) one Business Day prior to the requested date
of any Borrowing of Base Rate Loans. 

2 Each
Borrowing of LIBOR Loans must be in a principal amount of $1,000,000 or a whole
multiple of $100,000 in excess thereof. 

3 Loans
may be either Base Rate Loans or LIBOR Loans. If the Type of Loan is not
specified, then the applicable Loans will be made as Base Rate Loans. 

4 The
Borrower may request a Borrowing of LIBOR Loans with an Interest Period of one,
two, three or six months. If no election of Interest Period is specified, then
the Borrower will be deemed to have specified an Interest Period of one month. 

          The
Borrower hereby represents and warrants that (a) the Borrowing requested herein
complies with the provisions of Section 2.02 of the Loan Agreement and (b) the
conditions specified in Sections 4.02(a) and 4.02(b) of the Credit Agreement
have been satisfied on and as of the date specified in Item 2 above. 

[signature page follows]

          IN
WITNESS WHEREOF, the undersigned has caused this Loan Notice to be duly
executed as of the date first above written. 

	
 

	
 

	
 

	
 

	
WHITEHALL
  JEWELLERS, INC., as Borrower

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

 

EXHIBIT B

TERM NOTE

	
 

	
 

	
$_____________.00

	
May
  21, 2007

          FOR VALUE RECEIVED, the undersigned, WHITEHALL
JEWELLERS, INC., a Delaware corporation
(the “Borrower”), hereby promises
to pay to the order of ___________________, a national banking
association with an office at _____________________(the “Lender”):  

          (a)
prior to or on the Maturity Date, the principal amount of [ ___________ ] ($____ ) or, if less, the aggregate unpaid principal
amount of Loans advanced by the Lender to the Borrower pursuant to that certain
Term Loan and Security Agreement dated as of even date herewith (as modified,
amended, supplemented or restated and in effect from time to time, the “Loan
Agreement”), among the Borrower, the Lender, and the other parties thereto;  

          (b)
the principal outstanding hereunder from time to time at the times provided in
the Loan Agreement; and  

          (c)
interest on the principal balance hereof from time to time outstanding from the
Closing Date under the Loan Agreement through and including the Maturity Date
at the times and at the rate provided in the Loan Agreement.  

          This
Term Note evidences borrowings under and has been issued by the Borrower in
accordance with the terms of the Loan Agreement. The Lender and any holder
hereof is entitled to the benefits of the Loan Agreement and the other Loan
Documents, and may enforce the agreements of the Borrower contained therein,
and any holder hereof may exercise the respective remedies provided for thereby
or otherwise available in respect thereof, all in accordance with the
respective terms thereof. All capitalized terms used in this Term Note and not
otherwise defined herein shall have the meanings assigned to them in the Loan
Agreement.

          The
Borrower irrevocably authorizes the Lender to make or cause to be made, at or
about the time of any Borrowing, conversion or continuation of any Loan
pursuant to the Loan Agreement or at the time of receipt of any payment of
principal of this Term Note, an appropriate notation on the grid attached to
this Term Note, or the continuation of such grid, or any other similar record,
including computer records, reflecting the making of such Loan or (as the case
may be) the receipt of such payment. The outstanding amount of the Loans set
forth on the grid attached to this Term Note, or the continuation of such grid,
or any other similar record, including computer records, maintained by the
Lender with respect to any Loans shall be prima facie evidence of the
principal amount thereof owing and unpaid to the Lender, but the failure to
record, or any error in so recording, any such amount on any such grid,
continuation or other record shall not limit or otherwise affect the obligation
of the Borrower hereunder or under the Loan Agreement to make payments of
principal of and interest on this Term Note when due.

          The
Borrower has the right in certain circumstances and the obligation under
certain other circumstances to prepay the whole or part of the principal of
this Term Note on the terms and conditions specified in the Loan Agreement.

          If
any one or more of the Events of Default shall occur, the entire unpaid
principal amount of this Term Note and all of the unpaid interest accrued
thereon may become or be declared due and payable in the manner and with the
effect provided in the Loan Agreement.

1

          No
delay or omission on the part of the Lender or any holder hereof in exercising
any right hereunder shall operate as a waiver of such right or of any other
rights of the Lender or such holder, nor shall any delay, omission or waiver on
any one occasion be deemed a bar or waiver of the same or any other right on
any further occasion.

          The
Borrower and every endorser and guarantor of this Term Note or the Indebtedness
represented hereby waives presentment, demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance, default
or enforcement of this Term Note, and assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange
or release of collateral and to the addition or release of any other Person
primarily or secondarily liable.

          THIS TERM NOTE AND THE OBLIGATIONS OF THE BORROWER
HEREUNDER SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF ILLINOIS (EXCLUDING THE LAWS APPLICABLE TO
CONFLICTS OR CHOICE OF LAW). THE BORROWER AGREES THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS TERM NOTE MAY BE BROUGHT IN THE COURTS OF THE STATE OF
ILLINOIS OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NON-EXCLUSIVE
JURISDICTION OF SUCH COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING
MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN SECTION 11.02 OF THE
LOAN AGREEMENT. THE BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH
SUIT IS BROUGHT IN AN INCONVENIENT COURT.

[Signature page follows]

2

          IN
WITNESS WHEREOF, the undersigned has caused this Term Note to be signed in its
corporate name by its duly authorized officer as of the day and year first
above written.

	
 

	
 

	
 

	
 

	
WHITEHALL
  JEWELLERS, INC., as
  Borrower

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

	
	

 

Signature Page to Term Note

EXHIBIT C

DELAYED DRAW ADVANCE BORROWING REQUEST

          Pursuant
to Section 2.01 of that
certain Term Loan and Security Agreement, dated as of May 21, 2007 (as amended,
modified or supplemented and in effect from time to time, the “Loan Agreement”; the terms defined therein
being used herein as therein defined), among the undersigned WHITEHALL JEWELLERS, INC. (the “Borrower”), a
Delaware corporation having
its principal place of business at 125 South Wacker, #2600, Chicago, Illinois
60606, the financial institutions party thereto from time to time as lenders
(the “Lenders”) and LASALLE BANK NATIONAL ASSOCIATION as
administrative agent and collateral agent (the “Agent”) for the Lenders, the undersigned hereby gives the
Administrative Agent irrevocable notice that the undersigned hereby requests
the Delayed Draw Advance under the Loan Agreement, and in connection therewith
sets forth below the information relating to such Delayed Draw Advance as
required by Section 2.01 of the
Loan Agreement:

	
 

	
 

	
1.

	
Borrower hereby requests a
  Delayed Draw Advance. 

	
 

	
 

	
2.

	
The funding date of the
  Delayed Draw Advance is ______________, 2007 (which shall be at least thirty
  (30) days after the date of this request, but in no event later then May 30,
  2007).

	
 

	
 

	
3.

	
The amount of the Delayed
  Draw Advance is $_____________ (which shall in no event exceed the Delayed Draw Advance Limit).

	
 

	
 

	
4.

	
The Delayed Draw Advance
  is to be a [Base Rate Loan] [LIBOR Loan]. [The Interest Period shall be the
  [1] [2] [3] [6]-months.]

          The
undersigned hereby certifies that the following statements are true on the date
hereof, and will be true on the date of the Delayed Draw Advance:

          A.
All of the representations and warranties made or deemed to be made under the
Loan Agreement and in any other Loan Document or which are contained in any
certificate furnished at any time under or in connection therewith shall be true
and correct in all material respects on and as of the date of the making of the
Delayed Draw Advance, both with and without giving effect to the making of the
Delayed Draw Advance and to the application of the proceeds therefrom, except
to the extent such representations and warranties are expressly related only to
an earlier date, in which case such representations and warranties shall have
been true and correct in all material respects on and as of such earlier date;

          B.
No event has occurred and is continuing, or would result from the making of the
Delayed Draw Advance or from the application of the proceeds therefrom, which
constitutes an Event of Default or would constitute an Event of Default but for
the requirement that notice be given or time elapse or both;

          C.
Each of the conditions set forth in Section 4.02 of the Loan Agreement shall
continue to be satisfied by the Borrower as of the date of the Delayed Draw
Advance; and 

          D.
No event has occurred and is continuing, or would result from the Delayed Draw
Advance which has had or would have a Material Adverse Effect.

	
 

	
 

	
 

	
 

	
Very truly yours,

	
 

	
 

	
 

	
WHITEHALL
  JEWELLERS, INC.

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	

 

2

EXHIBIT
D

FORM OF ASSIGNMENT AND ASSUMPTION

          Reference
is made to that certain Term Loan and Security Agreement dated as of May 21,
2007 (as amended, modified, supplemented or restated and in effect from time to
time, the “Loan Agreement”) by and between, among others, (i) Whitehall
Jewellers, Inc., a Delaware corporation (the “Borrower”), (ii) the
Guarantors party thereto (individually, a “Guarantor” and, collectively,
the “Guarantors”), (iii) LaSalle Bank National Association, as
administrative agent (in such capacity, the “Administrative Agent”) for
its own benefit and the benefit of the other Credit Parties, (iv) LaSalle Bank
National Association, as collateral agent (in such capacity, the “Collateral
Agent”) for its own benefit and the benefit of the other Credit Parties,
and (v) the lenders from time to time party thereto (individually, a “Lender”
and, collectively, the “Lenders”). Capitalized terms used herein and not
defined herein shall have the meanings assigned to such terms in the Loan Agreement.

          _______________________________________________________
(the “Assignor”)
and ___________________ (the “Assignee”) agree as follows:

	
   

  	
   

  
	
  1.

  	
  The Assignor hereby sells
  and assigns to the Assignee, and the Assignee hereby purchases and assumes
  from the Assignor, that interest in and to the Assignor’s rights and
  obligations as a Lender under the Loan Agreement as of the date hereof
  (including, without limitation, such interest in each of the Assignor’s
  outstanding Commitments, if any, and the Loans (and related Obligations)
  owing to it) specified in Section 1 of Schedule I hereto. After giving
  effect to such sale and assignment, the Assignor’s and the Assignee’s
  Commitments and the amount of the Loans owing to the Assignor and the
  Assignee will be as set forth in Section 2 of Schedule I hereto.

  
	
   

  	
   

  
	
  2.

  	
  The Assignor: (a)
  represents and warrants that it is the legal and beneficial owner of the
  interest being assigned by it hereunder and that such interest is free and
  clear of any Liens and that it is legally authorized to enter into this
  Assignment and Assumption; (b) makes no representation or warranty and
  assumes no responsibility with respect to (i) any statements, warranties or
  representations made in, or in connection with, the Loan Agreement or any
  other Loan Document or any other instrument or document furnished pursuant
  thereto, or (ii) the execution, legality, validity, enforceability,
  genuineness, sufficiency or value of the Loan Agreement or any other Loan
  Document or any other instrument or document furnished pursuant thereto; (c)
  makes no representation or warranty and assumes no responsibility with
  respect to the financial condition of any Loan Party or the performance or
  observance by any Loan Party of any of their respective obligations under the
  Loan Agreement or any other Loan Document or any other instrument or document
  furnished pursuant thereto; and (d) confirms, in the case of an Assignee who
  is not a Lender, an Affiliate of a Lender, or an Approved Fund, the aggregate
  amount of the Commitment (which for this purpose includes Loans outstanding
  thereunder) or, if the Commitment is not then in effect, the principal
  outstanding balance of the Loans of the Assignor subject to this Assignment
  and Assumption, is not less than $10,000,000.00 (and in integral multiples of
  $1,000,000 in excess thereof), or, if less, the entire remaining amount of
  the Assignor’s Commitment and the Loans at any time owing 

  

1

	
   

  	
   

  
	
   

  	
  to it, unless each of the Administrative Agent and,
  so long as no Event of Default has occurred and is continuing, the Borrower
  otherwise consent (each such consent not to be unreasonably withheld or
  delayed).

  
	
   

  	
   

  
	
  3.

  	
  The Assignee: (a) confirms that it has received a
  copy of the Loan Agreement, together with copies of the financial statements
  referred to in Section 6.01 thereof and such other documents and information
  as it has deemed appropriate to make its own credit analysis and decision to
  enter into this Assignment and Assumption; (b) agrees that it will,
  independently and without reliance upon the Administrative Agent, the
  Assignor or any other Lender, and based on such documents and information as
  it shall deem appropriate at the time, continue to make its own credit
  decisions in taking or not taking action under the Loan Agreement; (c)
  appoints and authorizes the Agents to take such action as agent on its behalf
  and to exercise such powers under the Loan Agreement as are delegated to the
  Agents by the terms thereof, together with such powers as are reasonably
  incidental thereto; (d) agrees that it will perform in accordance with their
  terms all of the obligations which, by the terms of the Loan Agreement, are
  required to be performed by it as a Lender; (e) specifies as its lending
  office (and address for notices) the office set forth beneath its name on the
  signature pages hereof; (f) agrees that, if the Assignee is a Foreign Lender
  entitled to an exemption from, or reduction of, withholding tax under the law
  of the jurisdiction in which the applicable Loan Party is resident for tax
  purposes, or any treaty to which such jurisdiction is a party, with respect
  to payments under the Loan Agreement or under any other Loan Document, it
  shall deliver to the Loan Parties and the Administrative Agent (in such
  number of copies as shall be requested by the recipient) whichever of the
  following is applicable: (i) duly completed copies of Internal Revenue
  Service Form W-8BEN claiming eligibility for benefits of an income tax treaty
  to which the United States is a party, (ii) duly completed copies of Internal
  Revenue Service Form W-8ECI, (iii) in the case of a Foreign Lender claiming
  the benefits of the exemption for portfolio interest under section 881(c) of
  the Code, (A) a certificate to the effect that such Foreign Lender is not (1)
  a “bank” within the meaning of section 881(c)(3)(A) of the Code, (2) a “10
  percent shareholder” of the Loan Parties within the meaning of section
  881(c)(3)(B) of the Code, or (3) a “controlled foreign corporation” described
  in section 881(c)(3)(C) of the Code and (B) duly completed copies of Internal
  Revenue Service Form W-8BEN, or (iv) any other form prescribed by applicable
  Law as a basis for claiming exemption from, or a reduction in, United States
  federal withholding tax, duly completed, together with such supplementary
  documentation as may be prescribed by applicable Law to permit the Borrower
  to determine the withholding or deduction required to be made; and (g)
  represents and warrants that it is an Eligible Assignee.

  
	
   

  	
   

  
	
  4.

  	
  Following the execution of this Assignment and
  Assumption by the Assignor and the Assignee, it will be delivered, together
  with a processing and recordation fee in the amount of $3,500 (unless such
  fee has been waived by the Administrative Agent in its sole discretion), to
  the Administrative Agent for acceptance and recording by the Administrative
  Agent. The effective date of this Assignment and Assumption shall be the date
  of acceptance thereof by the Administrative Agent, unless otherwise specified
  on Schedule I hereto (the “Effective Date”).

  

2

	
   

  	
   

  
	
  5.

  	
  Upon such acceptance and recording by the
  Administrative Agent and, to the extent required by Section 11.06(b)(iii) of
  the Loan Agreement, consent by the Administrative Agent and/or the Borrower,
  as applicable (such consent not to be unreasonably withheld or delayed), from
  and after the Effective Date, (a) the Assignee shall be a party to the Loan
  Agreement and, to the extent of the interest assigned by this Assignment and
  Assumption, shall have the rights and obligations of a Lender under the Loan
  Agreement, and (b) the Assignor shall, to the extent of the interest assigned
  by this Assignment and Assumption, be released from its obligations under the
  Loan Agreement.

  
	
   

  	
   

  
	
  6.

  	
  Upon such acceptance and recording by the
  Administrative Agent, from and after the Effective Date, the Administrative
  Agent shall make all payments under the Loan Agreement in respect of the
  interest assigned hereby (including, without limitation, all payments of
  principal, interest and fees with respect thereto) to the Assignee. The
  Assignor and Assignee shall make all appropriate adjustments in payments
  under the Loan Agreement for periods prior to the Effective Date directly
  between themselves.

  
	
   

  	
   

  
	
  7.

  	
  This Assignment and Assumption shall be governed by,
  and be construed in accordance with, the laws of the State of Illinois,
  without giving effect to principles of conflicts of law or choice of law.

  

[SIGNATURE PAGE
FOLLOWS]

3

          IN
WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption
to be executed by their respective officers thereunto duly authorized, as of
the date first above written.

	
   

  	
   

  	
   

  
	
   

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  
	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  
	
   

  	
  Lending Office (and address for notices):

  
	
   

  	
   

  
	
   

  	
  [Address]

  

Accepted this ______ day

of ____________, ______:

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent

	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
  

  	
   

  

Signature Page to
Assignment and Assumption

Acknowledged and, to the extent required by Section
11.06(b)(i)(B) or Section 11.06(b)(iii) of the Loan Agreement, consented to,
this _____ day of ________________, _________:

ADMINISTRATIVE AGENT:

LASALLE BANK NATIONAL ASSOCIATION

	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
  

  	
   

  

Signature Page to
Assignment and Assumption

Acknowledged and, to the extent required by Section
11.06(b)(i)(B) or Section 11.06(b)(iii) of the Loan Agreement, consented to,
this _____ day of ________, ________:

BORROWER:

WHITEHALL JEWELLERS, INC.

	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
  

  	
   

  

Signature Page to
Assignment and Assumption

Schedule I

to

Assignment and Assumption

	
   

  	
   

  	
   

  
	
  Section 1. 

  	
  Percentage/Amount of
  Commitments/Loans Assigned by Assignor to Assignee.

  	
   

  
	
   

  	
   

  	
   

  
	
  Applicable
  Percentage assigned by Assignor: 

  	
  _________%

  
	
   

  	
   

  
	
  Commitment
  assigned by Assignor:

  	
  $________________
  

  
	
   

  	
   

  
	
  Aggregate
  Outstanding Principal Amount of Loans assigned by Assignor:

  	
  $________________

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Percentage/Amount of
  Commitments/Loans Held by Assignor and Assignee after giving effect to Assignment
  and Assumption.

  	
   

  
	
   

  	
   

  	
   

  
	
  Assignor’s
  Applicable Percentage:

  	
  _________%

  
	
   

  	
   

  
	
  Assignee’s
  Applicable Percentage:

  	
  _________%  

  
	
   

  	
   

  
	
  Assignor’s
  Commitment:

  	
  $________________

  
	
   

  	
   

  
	
  Assignee’s
  Commitment:

  	
  $________________

  
	
   

  	
   

  
	
  Aggregate
  Outstanding Principal Amount of Loans Owing to Assignor:

  	
  $________________

  
	
   

  	
   

  
	
  Aggregate
  Outstanding Principal Amount of Loams Loans Owing to Assignee:

  	
  $________________

  
	
   

  	
   

  
	
  Section 3. 

  	
   

  
	
   

  	
   

  
	
  Effective
  Date:

  	
  _____________,
  ______

  

  1002676.2

Schedule I to Assignment
and Assumption

EXHIBIT
E

FORM OF JOINDER AGREEMENT

JOINDER AGREEMENT

          This
JOINDER AGREEMENT (this “Joinder”) is made as of ________________, by and between: 

	
 

	
 

	
 

	
          ________________________,
  a ________________________ (the “New [Borrower/Guarantor]”), with its
  principal executive offices at _______________________; and

	
 

	
 

	
 

	
          LASALLE BANK NATIONAL ASSOCIATION, a
  national banking association having a place of business at 25 Braintree Hill
  Office Park, Suite 205, Braintree, Massachusetts 02184, as administrative
  agent (in such capacity, the “Administrative Agent”) for its own
  benefit and the benefit of the other Lenders (as defined in the Loan
  Agreement referred to below);

          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 a certain Term Loan and Security Agreement dated as of May
21, 2007 (as amended, modified, supplemented or restated and in effect from
time to time, the “Loan Agreement”), by and between, among others, (i)
Whitehall Jewellers, Inc., a Delaware corporation (the “Existing Borrower”),
(ii) the Administrative Agent, (iv) the Collateral Agent, and (v) the lenders
from time to time party thereto (individually, a “Lender” and,
collectively, the “Lenders”). 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/Guarantor] desires to become a party to, and be bound by the
terms of, the Loan Agreement and the other Loan Documents in the same capacity
and to the same extent as the Existing [Borrower/Guarantors] thereunder.

          C.
Pursuant to the terms of the Loan Agreement, in order for the New
[Borrower/Guarantor] to become party to the Loan Agreement and the other Loan
Documents as provided herein, the New [Borrower/Guarantor] and the Existing
Borrower are required to execute this Joinder.

          NOW,
THEREFORE, in consideration of the premises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

	
 

	
 

	
1.

	
Joinder and Assumption of
  Obligations.
  Effective as of the date of this Joinder, the New [Borrower/Guarantor] hereby
  acknowledges that the New [Borrower/Guarantor] has received and reviewed a
  copy of the Loan Agreement and the other Loan Documents, and hereby:

1

	
 

	
 

	
 

	
 

	
(a)

	
joins in the execution of,
  and becomes a party to, the Loan Agreement and the other Loan Documents as a
  [Borrower/Guarantor] thereunder, as indicated with its signature below;

	
 

	
 

	
 

	
 

	
(b)

	
covenants and agrees to be
  bound by all covenants, agreements, liabilities and acknowledgments of a
  [Borrower/Guarantor] under the Loan Agreement and the other Loan Documents as
  of the date hereof (other than covenants, agreements, liabilities and
  acknowledgments that relate solely to an earlier date), in each case, with
  the same force and effect as if such New [Borrower/Guarantor] was a signatory
  to the Loan Agreement and the other Loan Documents and was expressly named as
  a [Borrower/Guarantor] therein;

	
 

	
 

	
 

	
 

	
(c)

	
makes all representations,
  warranties, and other statements of a Borrower/Guarantor] under the Loan
  Agreement and the other Loan Documents, as of the date hereof (other than
  representations, warranties and other statements that relate solely to an
  earlier date), in each case, with the same force and effect as if such New
  [Borrower/Guarantor] was a signatory to the Loan Agreement and the other Loan
  Documents and was expressly named as a [Borrower/Guarantor] therein;

	
 

	
 

	
 

	
 

	
(d)

	
assumes and agrees to
  perform all applicable duties and Obligations of the Existing
  [Borrower/Guarantors] under the Loan Agreement and the other Loan Documents.

	
 

	
 

	
 

	
2.

	
Supplemental Schedules. To the extent that any changes in any
  representations, warranties, and covenants require any amendments to the
  schedules to the Loan Agreement or any of the other Loan Documents, such
  schedules are hereby updated, as evidenced by any supplemental schedules (if
  any) annexed to this Joinder.

	
 

	
 

	
3.

	
Ratification of Loan
  Documents. Except
  as specifically amended by this Joinder and the other documents executed and
  delivered in connection herewith, 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
  Loan Party thereunder or Collateral therefor.

	
 

	
 

	
4.

	
Conditions Precedent to
  Effectiveness. This
  Joinder shall not be effective until each of the following conditions
  precedent have been fulfilled to the reasonable satisfaction of the
  Administrative Agent:

	
 

	
 

	
 

	
(a)

	
This Joinder shall have
  been duly executed and delivered by the respective parties hereto, and shall
  be in full force and effect.

	
 

	
 

	
 

	
 

	
(b)

	
All action on the part of
  the New [Borrower/Guarantor] and the other Loan Parties necessary for the
  valid execution, delivery and performance by the New [Borrower/Guarantor] and
  the other Loan Parties of this Joinder and all other documentation,
  instruments, and agreements to be executed in connection herewith shall have
  been duly and effectively taken and evidence thereof reasonably satisfactory
  to the Administrative Agent shall have been provided to the Administrative
  Agent.

2

	
 

	
 

	
 

	
 

	
(c)

	
The New
  [Borrower/Guarantor] (and each other Loan Party, to the extent requested by
  the Administrative Agent) shall each have delivered the following to the
  Administrative Agent, in form and substance reasonably satisfactory to the
  Administrative Agent:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Certificate of Legal
  Existence and Good Standing issued by the Secretary of the State of its
  incorporation or organization.

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
A certificate of an
  authorized officer of the due adoption, continued effectiveness, and setting
  forth the text, of each corporate resolution adopted in connection with the
  assumption of obligations under the Loan Agreement and the other Loan
  Documents, and attesting to the true signatures of each Person authorized as
  a signatory to any of the Loan Documents, together with true and accurate
  copies of all Organization Documents.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
A Perfection Certificate.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Execution and delivery by
  the New [Borrower/Guarantor] of the following Loan Documents:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a)

	
[Joinders to the Term
  Notes, as applicable];

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
b)

	
[Joinder to the Fee
  Letter];

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
c)

	
[DDA Notification
  with ______________]; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
d)

	
Such other documents and
  agreements as the Administrative Agent or the Collateral Agent may reasonably
  require.

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Upon the request of the
  Administrative Agent in its sole discretion, the Administrative Agent shall
  have received a favorable written legal opinion of the Loan Parties’ counsel,
  addressed to the Administrative Agent, the Collateral Agent and the other
  Credit Parties, covering such matters as Administrative Agent may reasonably
  request.

	
 

	
 

	
 

	
 

	
(e)

	
The Collateral Agent shall
  have received all documents and instruments, including, without limitation,
  UCC financing statements and DDA Notifications, required by Law or reasonably
  requested by the Administrative Agent or the Collateral Agent to create or
  perfect the Lien intended to be created under the Collateral Documents and
  all such documents and instruments shall have been so filed, registered or
  recorded to the satisfaction of the Administrative Agent.

	
 

	
 

	
 

	
 

	
(f)

	
All reasonable fees and
  Credit Party Expenses incurred by the Agents in connection with the
  preparation and negotiation of this Joinder and related documents (including
  the reasonable fees and expenses of counsel to the Agents) shall have been
  paid in full by the New [Borrower/Guarantor].

3

	
 

	
 

	
 

	
 

	
(g)

	
The Loan Parties shall
  have executed and delivered to the Agents such additional documents,
  instruments, and agreements as the Administrative Agent or the Collateral
  Agent may reasonably request.

	
 

	
 

	
 

	
5.

	
Miscellaneous.

	
 

	
 

	
 

	
(a)

	
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.

	
 

	
 

	
 

	
 

	
(b)

	
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.

	
 

	
 

	
 

	
 

	
(c)

	
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 affect 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.

	
 

	
 

	
 

	
 

	
(d)

	
The Loan Parties shall,
  within ten (10) Business Days after receipt of a reasonably detailed invoice
  therefor, pay all reasonable fees and other Credit Party Expenses of the
  Agents and the other Credit Parties, including, without limitation, all
  reasonable attorneys’ fees in connection with the preparation, negotiation,
  execution and delivery of this Joinder.

	
 

	
 

	
 

	
 

	
(e)

	
The New
  [Borrower/Guarantor] warrants and represents that the New
  [Borrower/Guarantor] is not relying on any representations or warranties of
  the Administrative Agent, Collateral Agent or the Lenders or their counsel in
  entering into this Joinder.

	
 

	
 

	
 

	
 

	
(f)

	
THIS JOINDER SHALL BE
  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
  ILLINOIS.

[SIGNATURE PAGES FOLLOW]

4

          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 below.

	
 

	
 

	
 

	
 

	
NEW [BORROWER/GUARANTOR]:

	
 

	
 

	
 

	

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
ADMINISTRATIVE AGENT:

	
 

	
 

	
 

	
LASALLE BANK NATIONAL ASSOCIATION

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
COLLATERAL AGENT:

	
 

	
 

	
 

	
LASALLE BANK NATIONAL ASSOCIATION

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

SP-1 [Joinder
Agreement]

Acknowledged and Agreed: 

EXISTING
BORROWER:

WHITEHALL JEWELLERS, INC.

	
 

	
 

	
By:

	
 

	
 

	

	
Name:

	
 

	
 

	

	
Title:

	
 

	
 

	

1002666.2

SP-2 [Joinder Agreement]

Addresses for notices: 

LaSalle Bank National Association 

25 Braintree Hill
Office Park, Suite 205

Braintree, Massachusetts 02184 

Attention: Robert Barnhard 

Phone (781) 353-6110; Fax (781) 353-6101

robert.barnhard@abnamro.com

Attention: Jeff Ryan 

Phone (781) 353-6118; Fax (781) 353-6101

jeff.ryan@abnamro.com 

Attention: Daniel O’Rourke 

Phone (781) 353-6126; Fax (781) 353-6101

daniel.orourke@abnamro.com 

Bank of America Retail Finance Group 

100 Federal Street,
9th Floor

Boston, Massachusetts 02110 

Attention: Mark Twomey 

Phone (617) 434-9136; Fax (617) 434-4339

mark.twomey@bankofamerica.com 

Wells Fargo Retail Finance, LLC 

One Boston Place,
19th Floor

Boston, Massachusetts 02108 

Attention: Cory Loftus 

Phone (617) 854-7259; Fax (617) 523-4029

cory.loftus@wellsfargo.com 

Attention: Didi Do 

Phone (617) 854-7263; Fax (617) 523-4027

didi.do@wellsfargo.com 

GMAC Commercial Finance LLC 

1290 Avenue of the
Americas - 3rd Floor

New York, New York 10104 

Attention: Michael Malcangi 

Phone (212) 884-7561; Fax
(212) 884-7693

mmalcangi@gmaccf.com 

Attention: Steve Brown 

Phone (212) 884-7563; Fax (212) 884-7693

sbrown@gmaccf.com 

 

Schedule 11.02 — Administrative
Agent’s Office; Certain Addresses for Notices

	
 

	
Administrative Agent’s Office:

	
 

	
LaSalle Bank
  National Association,

	
    as
  Administrative Agent

	
25 Braintree
  Hill Office Park, Suite 205

	
Braintree,
  Massachusetts 02184

	
Attention:
  Robert Barnhard

	
Telephone:
  (781) 353-6110

	
Facsimile:
  (781) 353-6101

	
E-mail:
  robert.barnhard@abnamro.comEXHIBIT 10.18

FORM OF AMENDED TRADE VENDOR EXTENSION AGREEMENT

     AGREEMENT, made as of November 15, 2006 among Whitehall Jewellers, Inc. (the “Company”), Prentice Capital Management, LP (together with its affiliates, the “Investor”), and the
undersigned suppliers (each a “Participating Supplier,” and, collectively, the “Participating Suppliers”) of memo goods (“Memo Goods”) and/or asset goods (“Asset Goods”) to the Company; and 

     WHEREAS, the Company and the Investor are parties to a Bridge Term Loan Credit Agreement dated October 3, 2005 (as amended on or about February 1, 2006, the “Bridge Loan”), pursuant to which the
Company has borrowed funds from the Investor; and 

     WHEREAS, the Company represents that, to the best of its knowledge, the aggregate amount due and owing to all of the suppliers of Memo Goods and Asset Goods to the Company (collectively, the
“Suppliers”) who hold claims against the Company as of September 23, 2005 with respect to those asset merchandise invoices and memo merchandise invoices that remain unpaid per the Company's records (the “Trade Debt”), was approximately
$44,533,950 (less the aggregate amount of the Settlement Payments (as defined below) that have been paid prior to the effective date of this Agreement); and 

     WHEREAS, the Company has offered to satisfy the Trade Debt in accordance with the terms contained in this Agreement; and 

     WHEREAS, the Investor has provided to the Company the Bridge Loan, the proceeds of which has been used by the Company to pay, among other things, a portion of the Trade Debt; and 

     WHEREAS, each of the Participating Suppliers has entered into that certain agreement entitled Terms for Treatment of Trade Indebtedness of Whitehall Jewellers, Inc. (the “Term Sheet”) in exchange for
(i) the Company and the Investor entering into the Term Sheet, (ii) the Investor agreeing to provide the Bridge Loan to the Company to pay, among other things, a portion of the Trade Debt, and (iii) the Company agreeing to pay the Trade Debt as set
forth in the Term Sheet; and 

     WHEREAS, the Company, the Investor and the Participating Suppliers wish to enter into this Agreement in furtherance of the agreements made in the Term Sheet. 

     NOW, THEREFORE, it is agreed:

1.      PAYMENT
TERMS FOR TRADE DEBT 

     1.1. Payment
      Schedule. The Company shall satisfy the Trade
Debt on the following basis:

     (a) Twenty-five (25%) of the Trade Debt due and owing each Participating Supplier has previously been paid by the Company to each Participating
Supplier on or about November 2, 2005 (the “First Payment”);

     (b) Twelve and one-half percent (12.5%) of the Trade Debt due and owing each Participating Supplier has previously been paid by the Company in
cash to such Participating Supplier on or about December 23, 2005 (the “Second Payment”); 

     (c) Twelve and one-half percent (12.5%) of the Trade Debt due and owing each Participating Supplier has previously been paid by the Company in
cash to such Participating Supplier on or about January 16, 2006 (the “Third Payment”); and 

     (d) Fifty percent (50%) of the Trade Debt due and owing each Participating Supplier plus all accrued Interest (defined below) shall be paid by
the Company in cash to such Participating Supplier on or before September 30, 2007 (the “Final Payment” and collectively with the First Payment, Second Payment and Third Payment, the “Settlement Payments”), which Final Payment shall be collectively
evidenced by the Notes (as defined below). 

     1.2. Return Of The Notes. To the extent that the Company satisfies the Final Payment through payments to the
Participating Suppliers, the Company’s obligations under the corresponding Notes issued to such Participating Suppliers will be credited accordingly. Promptly upon receiving its appropriate share of the Final Payment, each Participating
Supplier shall return the applicable Note to the Company marked, and the Note shall be deemed to be, “satisfied in full.” 

     1.3. Trade Debt Deemed Fully Satisfied. The Company's payment obligations under Section 1.1 of this Agreement
shall supersede and replace its obligations to pay the Trade Debt, as reconciled under Section 7 below, under any other applicable agreements or
applicable laws. Upon the Company's completion of the Settlement Payments, (i) the Trade Debt of each Participating Supplier shall be deemed satisfied in full, and (ii) each Participating Supplier shall forgive and shall be deemed to have released
the Company from, any and all other debts due or owing to them by the Company as of September 23, 2005, including any and all amounts in excess of such Participating Supplier's Trade Debt that could have or should have been invoiced to the Company
prior to or on September 23, 2005 (subject only to Section 4.2 herein). 

     1.4. Withdrawal of Pending Notices of Default.
To the extent that any Participating Supplier has previously issued or served a notice of default, breach, termination, or other similar notice, or a demand for return of goods, to the Company with respect to the Trade Debt or such Participating
Supplier's willingness to supply goods to the Company, the execution of this Agreement shall constitute such Participating Supplier's withdrawal and waiver of any such notice or demand. 

2

2.      NOTES 

     2.1. Collective Amount.
  The Final Payment shall be evidenced by unsecured promissory
  notes (the “Notes”) issued to each of the Participating Suppliers in an aggregate original principal amount equal to fifty percent (50%) of the Trade Debt due and owing to all of the Participating Suppliers.
  Each of the Notes shall be in substantially the form of the Promissory Note annexed hereto as Exhibit I. 

     2.2. Issuance And Amount Of Individual Notes. The Company shall issue the Notes to the Participating Suppliers
on a rolling basis as soon as practicable after the Trade Debts of Participating Suppliers are reconciled in accordance with Section 7 below. The original principal amount of each Note issued to a Participating Supplier shall be equal to fifty
percent (50%) of the amount of the Trade Debt due and owing to that Participating Supplier as reconciled in accordance with Section 7 below. 

     2.3. Maturity. The Notes shall have a maturity date of September 30, 2007 (the “Maturity Date”), with the
principal balance of the Notes payable on the Maturity Date.

     2.4. Interest. Starting retroactively to January 17, 2006, the Notes shall accrue interest on the unpaid
principal amounts thereof at the rate of six percent (6%) per annum through the date the Notes are paid in full (“Interest”), payable on the Maturity Date or such earlier date on which the Notes are paid in full. 

3.      ASSET
GOODS 

     3.1. Payment Terms For Deliveries
  Made After December 15, 2005. The Company shall
  pay each Participating Supplier for Asset Goods delivered by such Participating
  Supplier and received by the Company, after December 15, 2005, within ninety
  (90) days after receipt by the Company of an invoice for such Asset Goods.

     3.2. Commercially Reasonable Efforts. Each Participating Supplier shall use its commercially reasonable
efforts to satisfy all shipping deadlines for Asset Goods set forth in its purchase orders placed on or after September 26, 2005 that are hereafter accepted by the respective Participating Supplier in its sole and absolute discretion.

4.      MEMO
GOODS 

     4.1. Payment Terms.
  From and after January 16, 2006, the Company shall reconcile its
  Memo Goods sales balances to its general ledger every Monday for transactions
  occurring during the previous week (through Sunday). The Company shall then issue
  Memo Goods sales reports based on such reconciliations to applicable Participating
  Suppliers every Tuesday, and pay applicable Participating Suppliers for such
  Memo Goods (by wire transfer to the extent timely requested by applicable Participating
  Suppliers) within fifteen (15) days after such goods are reported as sold.

     4.2. Unreported Sales Of Memo Goods. Notwithstanding anything to the contrary contained in this Agreement, (a)
each Participating Supplier shall have the right until September

3

30, 2007 to reconcile reported sales of its Memo Goods delivered
to the Company prior to such date, and (b) no unreported sales of Memo Goods
shall be subject to the provisions of Section 1.3 above.

     4.3. Commercially Reasonable
Efforts. Each Participating Supplier shall use
its commercially reasonable efforts to satisfy all
shipping deadlines for Memo Goods set forth in the Company's outstanding purchase
orders, as amended and agreed to by the Company and the respective Participating
Supplier, and in all purchase orders placed on or after September 26, 2005, which
are hereafter accepted by the respective Participating Supplier in its sole and
absolute discretion.

     4.4. Recognition
of Security Interests.

     (a) Each of the Participating Suppliers agrees not to challenge
  the valid and perfected security interests of the Investor
  and the Senior Lenders in the Company's assets. 

     (b) Each of the Participating Suppliers disclaims any interest in the collateral of the Senior Lenders. 

     4.5. Store Closing/Going Out Of Business Sales. In the event of a store closing or going out of business sale
at any of the Company’s stores where Memo Goods of Participating Suppliers have been delivered and remain unsold, the Company may, at its option and in its sole and absolute discretion, (a) keep Memo Goods in place at the applicable stores
provided that the Company pays to the Participating Suppliers the regularly invoiced amount for any sales of such Memo Goods, (b) return Memo Goods to Participating Suppliers, or (c) move Memo Goods to other Company stores.

5.      SENIOR CREDIT FACILITIES

Between the period from September 23, 2005 through September 30, 2007 (or such later date upon which the Notes are satisfied in full), the senior credit facilities (“Senior Credit Facilities”) of the Company's existing
senior secured lenders (collectively, the “Senior Lenders”) shall contain no financial performance covenants by the Company other than a minimum excess availability covenant. 

6.      EXECUTION
OF AGREEMENT AFTER EFFECTIVE DATE 

     6.1. Rights.
  Any Supplier that executes this Agreement after the effective date hereof, but
  not later than January 15, 2007 (each a “Subsequent Participating Supplier”), shall be entitled to the rights and be bound by the obligations conferred herein to the Participating Suppliers. 

     6.2. Payment Terms. To the extent that a Subsequent Participating Supplier did not receive its applicable
share of the First Payment, the Second Payment, or the Third Payment, the Company shall promptly pay the Subsequent Participating Supplier its applicable share of those Payments promptly upon its execution of this Agreement. 

4

7.      RECONCILIATION
OF TRADE DEBT

     7.1. Trade Debt Amount Per Company's
  Records. The Trade Debt due and owing to a Participating
  Supplier or Subsequent Participating Supplier, as the case may be, according
  to the Company's books and records (and after crediting the accrued marketing
  and purchase rebates earned by the Company as of September 23, 2005 (“Rebate Credit”)) is reflected in Schedule II attached hereto. The Company acknowledges, confirms and agrees that for the purposes of calculating the Settlement
  Payments, (i) such amount reflected on Schedule II is due and owing to the respective Participating Supplier (or Subsequent Participating Supplier) without offset, defense or
  counterclaim, (ii) the Rebate Credit has been applied on a proportionate basis according to the percentage of the Trade Debt that each Settlement Payment represents, and (iii) to the extent that the Company fails to make any Settlement Payment to a
  Participating Supplier (or a Subsequent Participating Supplier), the portion of the Rebate Credit that was previously applied to such Settlement Payment shall become due and owing to such Participating Supplier (or Subsequent Participating
  Supplier).

     7.2. Objection Deadline. Unless a Participating Supplier (or Subsequent Participating Supplier) timely submits
to the Company a written objection (“Trade Debt Objection”) to the amount set forth in Schedule II, such Participating Supplier (or Subsequent Participating Supplier) shall be deemed
to have agreed and acknowledged that the amount reflected on Schedule II is the total Trade Debt owed to that Participating Supplier (or Subsequent Participating Supplier). Any Trade
Debt Objections must be delivered to the Company in writing and in the manner specified for notices to the Company pursuant to Section 14.1(a) below. Participating Suppliers must submit any Trade Debt Objections so that they are delivered, placed
with an overnight courier, or postmarked for certified or registered mail no later than January 15, 2007. Subsequent Participating Suppliers must submit any Trade Debt Objections so that they are delivered, placed with an overnight courier, or
postmarked for certified or registered mail no later than January 30, 2007. 

     7.3. Trade Debt Amount for Payment Purposes. Unless and until the Company and the applicable Participating
Supplier (or Subsequent Participating Supplier) settle, adjust or otherwise resolve any timely Trade Debt Objection submitted to the Company pursuant to Section 7.2 hereof, the Trade Debt amount set forth by the Company on Schedule II shall be used, without prejudice (subject to Section 7.4 below), to calculate the Settlement Payments due to the Participating Supplier (or Subsequent Participating Supplier). 

     7.4. Dispute
Resolution Process. 

     (a) If a Participating Supplier (or Subsequent Participating
  Supplier) timely submits a Trade Debt Objection under
  Section 7.2 hereof with regard to the Trade Debt amount reflected on Schedule II, and such dispute is not consensually resolved
  within 30 days after the Company's receipt of such Participating Supplier's (or Subsequent Participating Supplier's) Trade Debt Objection, then the Trade Debt Objection shall be resolved by submission to Anchin Block & Anchin, LLP
  (“ABA”) provided that ABA has no conflict of interest due to its connections with either party. If ABA has such a conflict of interest and the conflict is not waived by the Company and the Participating Supplier (or Subsequent
  Participating Supplier), a third party accounting firm (the “Trade Debt Accountants”) located in the United States and selected jointly 

5

by the Company and the Participating Supplier (or Subsequent Participating Supplier) shall resolve the Trade Debt Objection.

     (b) If a Trade Debt Objection is submitted to ABA or the Trade Debt Accountants for resolution: (i) each party shall furnish to ABA or the
Trade Debt Accountants such work papers and other documents and information relating to the disputed issues as ABA or the Trade Debt Accountants may request and are available to that party, and shall be afforded the opportunity to present to ABA or
the Trade Debt Accountants any material relating to the determination and to discuss the determination with ABA or the Trade Debt Accountants; (ii) the determination by ABA or the Trade Debt Accountants, as set forth in a notice delivered to the
Company and the objecting Participating Supplier (or Subsequent Participating Supplier) by ABA or the Trade Debt Accountants, shall be binding and conclusive on the parties; and (iii) the fees for ABA or the Trade Debt Accountants for such
determination shall be allocated one-half to the Company and one-half to the objecting Participating Supplier (or Subsequent Participating Supplier) unless otherwise allocated by ABA or the Trade Debt Accountants.

8.      CONDITIONS
PRECEDENT 

     8.1. Conditions Precedent To
  The Parties' Obligations. The following are conditions to
  the Company's and the Participating Suppliers' obligations under this Agreement,
  which conditions must be satisfied or waived in accordance with Section 8.2 hereof: 

     (a) execution and delivery of this Agreement by Suppliers holding not less than 90% of the Company's total Trade Debt; 

     (b) no law or injunction or other legal restraint exists that restrains, enjoins or otherwise prevents the Company's making of the Settlement
Payments or entry into any other transactions contemplated hereby; and 

     8.2. Waiver of Conditions. The Company, the Investor, and the Participating Suppliers may waive, upon written
agreement by all parties, compliance with any of the conditions set forth in Section 8.1 hereof. 

9.      EFFECTIVE DATE

The effective date of this Agreement shall be the first date on which all of the conditions precedent described in Section 8.1 hereof have occurred or been waived in accordance with Section 8.2. 

10.      STANDSTILL 

     10.1. Forbearance of Exercise
  of Remedies. With respect to each Participating Supplier,
  for as long as the Investor and/or the Company comply with the terms and conditions
  of this Agreement, including, without limitation, the payment of Settlement Payments
  to such Participating Supplier in the manner herein specified and the payment
  to such Participating Supplier of all invoices for goods delivered by such Participating
  Supplier after September 23, 2005, such Participating Supplier shall: (i) accept
  the Settlement Payments pursuant to the 

6

schedule and on the terms specified herein; (ii) forbear from exercising any remedy to collect the Trade Debt, or any portion of the Trade Debt, including without limitation, (X) making demands for payment or return of merchandise
relating to the Trade Debt, or (Y) joining in a petition to commence an involuntary case for or against the Company under any chapter of the United States Bankruptcy Code or other proceeding seeking the liquidation or reorganization of Company, or
other relief against the Company under any bankruptcy, insolvency or other similar federal, state, or local law now or hereafter in effect, or seek the appointment of a trustee, receiver, custodian or other similar official for any or all of the
Company's assets or property (each, an “Insolvency Proceeding”), and hereby waives its right to any such remedy relating to the Trade Debt; and (iii) provide merchandise to the Company on the terms set forth in this Agreement; provided, however, that prior to such Participating Supplier’s termination of the foregoing obligations, such Participating Supplier must have
given written notice to the Investor and the Company of any failure to comply with the terms and conditions of this Agreement and the Investor or the Company must have failed to cure such non-compliance within ten (10) business days of receiving
such notice, and such Participating Supplier must not have waived the failure to comply.

     10.2. Irreparable Harm. Each Participating Supplier acknowledges that the violation of such Participating
Supplier's agreement to forbear from exercising any remedy to collect the Trade Debt will cause irreparable harm to the Company and agrees that any such violation shall give rise, but is not limited, to the following remedies (which constitute the
remedies available to the Company and as to which each Participating Supplier hereby waives all defenses): (i) immediate injunctive relief as may be necessary to restore the status quo; (ii) release of the Company’s obligations under any Note
issued to such Participating Supplier and loss of such Participating Supplier’s interest in any Settlement Payments not yet paid under this Agreement; and (iii) any applicable damages for commencing any Insolvency Proceeding; provided, however, that with respect to a demand for the return of merchandise evidenced by Trade Debt, the Company's sole remedy shall be to
credit the amount owed under the respective Participating Supplier's Note and any corresponding payment proposed by this Agreement by the value (as evidenced by the invoice for such merchandise) of any merchandise actually returned by the
Company.

11.      COMPANY'S BREACH AND REMEDIES 

This Agreement shall be deemed breached by the Company upon the happening of a default in the performance of any of the terms, provisions and conditions of this Agreement, including the failure to timely make any of the Settlement
Payments. The Company shall also be deemed to have breached this Agreement upon receipt of a notice of default issued by the Senior Lenders in accordance with the Senior Credit Facilities unless (i) such default is timely cured in accordance with
the Senior Credit Facilities, or (ii) such notice of default is either revoked or waived by the Senior Lenders within five (5) business days of its issuance. 

In the event of a breach of this Agreement by the Company with respect to the failure to make any Settlement Payments when due to any Participating Supplier, such Participating Supplier shall (i) be relieved of its obligations
under Section 10.1 hereof, and (ii) have the right to accelerate all amounts due and owing under Section 1.1 above, plus the portion of the Rebate 

7

Credit that the Company applied to any unpaid Settlement Payment to such Participating Supplier in accordance with Section 7.1 hereof; provided, however, that prior to such relief and/or acceleration, such Participating Supplier must have given written notice of such breach to the Company, the Company must have failed to cure such breach within ten
(10) days of receiving such notice, and the Participating Supplier must not have waived the breach. 

12.      REMEDIES UPON DEFAULT

Upon the occurrence and during the continuance of any default of this Agreement by the Company, the Participating Suppliers' sole remedies shall be those described in Section 11.

13.      TERMINATION

This Agreement shall terminate upon the earliest to occur of (i) receipt by the Participating Suppliers of the Settlement Payments, or (ii) September 30, 2007.

14.      MISCELLANEOUS

     14.1. Notices.
  Any notice or other communication to any party required or permitted hereunder
  shall be in writing, shall be given to such party at its address set forth below
  or at such other address as shall be furnished by any party by like notice to
  the others, and shall be delivered personally, sent by a recognized overnight
  courier such as Federal Express, or sent by certified or registered mail, return
  receipt requested and postage prepaid. Each such notice or other communication
  shall be deemed to have been duly given (i) as of the date of delivery, if delivered
  personally, (ii) upon the next business day after delivery to a recognized overnight
  courier service, or (iii) on the date of delivery or refusal shown on the return
  receipt therefor if sent by United States certified or registered mail, return
  receipt requested and postage prepaid. The parties acknowledge that the telephone
  and fax numbers provided below are for the convenience of the parties only; no
  notices which are given by telephone or facsimile transmission shall be deemed
  to have been duly given for purposes of this Agreement.

	
(a)        	
If to the Company, to:  
	 	
Whitehall Jewellers, Inc.  
	 	
125 South Wacker Drive, Suite 2600  
	 	Chicago, IL 60606
	 	 

	 	
Attention: 
  	 
  	
General Counsel 
  
	 	
Telephone: 
  	 
  	
(312) 782-6800 
  
	 	
Facsimile: 
  	 
  	
(312) 469-5683 
  
	 	 	 	 
	 	with a copy to:
	 	 
	 	Shaw Gussis Fishman Glantz 
	 	Wolfson & Towbin LLC
	 	321 N. Clark Street, Suite 800 
	 	Chicago, IL 60610
	 	Attention: Robert Fishman, Esq.

8

	 	
Telephone: 
  	 
  	
(312) 541-0151 
  
	 	
Facsimile: 
  	 
  	
(312) 275-0567 
  
	 	 	 	 
	(b)  	If to the Investor, to: 
	 	 
	 	Prentice Capital Management,
    LP 
	 	623 Fifth Avenue, 32nd Floor 
	 	New York, NY 10022
	 	 
	 	Attention: 	 	Jonathan Duskin  
	 	Telephone:	 	(212) 756-8054 
	 	Facsimile:	 	(212) 756-1480 
	 	 
	 	with a copy to: 
	 	 
	 	    Schulte Roth & Zabel LLP
	 	919 Third Avenue
	 	New York, NY 10022 
	 	 
	 	Attention: 	 	Lawrence V. Gelber, Esq.
	 	Telephone: 	 	(212) 756-2000
	 	Facsimile: 	 	(212) 593-5955
	 	 
	(c)  	If to a Participating Supplier,
    to: 
	 	 
	 	 
	 	The address reflected under each
    Participating Supplier's signature hereto. 

     14.2. Entire Agreement. This Agreement and any other collateral agreements executed in connection with the
consummation of the transactions contemplated hereby contain the entire agreement among the parties with respect to such transactions and supersede all prior agreements, written or oral, including the Term Sheet, with respect thereto. 

     14.3. Waivers And Amendments; Non-Contractual Remedies; Preservation of Remedies. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the Company, the Investor and the Participating
Suppliers, or, in the case of a waiver, the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any
such right, power or privilege, nor any single or partial exercise of such right, power or privilege, preclude any further exercise thereof or the exercise of any other right, power or privilege. 

     14.4. Governing Law. This Agreement shall be governed by and construed in accordance with the State of New
York (regardless of the laws that might otherwise govern under applicable New York principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and remedies. 

     14.5. Consent To Jurisdiction And Service Of Process. All disputes arising out of or related to this
Agreement, including, without limitation, any dispute relating to the interpretation, meaning or effect of any provision hereof, will be resolved in the District Court for the Southern 

9

District of New York and the parties hereto each submit to the exclusive jurisdiction of the District Court for the Southern District of New York for adjudicating any such dispute. To the extent that the District Court for the
Southern District of New York lacks jurisdiction over any such dispute, the parties alternatively agree to submit to the exclusive jurisdiction of the Courts of the State of New York residing in the Borough of Manhattan, for adjudicating any such
dispute.

     14.6. Limitation Of Damages. Neither the Investor nor the Company shall be liable to any Participating
Supplier for incidental, consequential, punitive, or exemplary damages arising in connection with this Agreement or the Term Sheet, or the performance, omission of performance, or termination thereof, even if the Investor or the Company have been
advised of the possibility of such damages and without regard to the nature of the claim or the underlying theory or cause of action. 

     14.7. Binding Effect; Assignment. The signature below of an authorized representative of a Participating
Supplier shall constitute an acceptance by such Participating Supplier of the terms set forth in this Agreement. This Agreement shall be binding upon and inure to the benefit of each of the Company, the Investor and the Participating Suppliers and
their respective successors, assigns, administrators, successors in interest and legal representatives.

     (a) Neither the Company nor the Investor may assign its rights or delegate its obligations hereunder to any person other than an affiliate
thereof without the prior written consent of Participating Suppliers holding not less than 66% of the Company’s total Trade Debt, which consent shall not be unreasonably withheld. Any purported assignment by the Investor or Company without the
prior written consent of the Participating Suppliers shall be deemed void unless such consent is unreasonably withheld. 

     (b) No Participating Supplier may assign its rights and/or duties under this Agreement or its Note without the prior written consent of the
Company, in its sole discretion, except with respect to credit insurance and factoring arrangements for new shipments, if applicable; provided, however, that any Participating Supplier may assign its rights under this Agreement and its Note without the prior written consent of the Company if such Participating Supplier (i) provides the Company and
the Investor with written notice of any proposed assignment at least ten business days in advance of such assignment, and (ii) the Investor does not offer to acquire such rights from the Participating Supplier upon the same terms of the proposed
assignment within five business days in advance of such assignment. Any purported assignment by a Participating Supplier in violation of this paragraph shall be deemed void.

     14.8. Related Documents. The rights, benefits and obligations of Participating Suppliers are subject to and
qualified entirely by the terms and conditions of the Notes. 

     14.9. Alternate Transactions. This transaction has been negotiated by the Company, the Investor and the
Participating Suppliers. The Participating Suppliers reserve the right not to enter into the same transaction or any other transaction with any other investor, except in their sole and absolute discretion. 

10

     14.10. Usage. All pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or
plural, as the context may require. All terms defined in this Agreement in their singular or plural forms have correlative meanings when used herein in their plural or singular forms, respectively. Unless otherwise expressly provided, the words
“include,” “includes” and “including” do not limit the preceding words or terms and shall be deemed to be followed by the words “without limitation.” 

     14.11. Counterparts. This Agreement may be executed by the parties hereto in one or more original or
facsimiled counterparts, and all such counterparts shall together constitute one and the same instrument. Each counterparty may consist of a number of copies hereof each signed by less than all, but together signed by all of the parties
hereto.

     14.12. Headings. The headings in this Agreement are for reference only, and shall not affect the
interpretation of this Agreement. 

     14.13. Interpretation. The parties acknowledge and agree that: (a) each party and its counsel reviewed and
negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this
Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all parties hereto, regardless of which party was generally responsible for the preparation of this Agreement. 

     14.14. Severability
of Provisions. 

     (a) If any provision or any portion of any provision of this
  Agreement shall be held invalid or unenforceable, the
  remaining portion of such provision and the remaining provisions of this Agreement
  shall not be affected thereby. 

     (b) If the application of any provision or any portion of any provision of this Agreement to any person or circumstance shall be held invalid
or unenforceable, the application of such provision or portion of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby.

     14.15. No Third Party Beneficiaries. Nothing in this Agreement, express or implied, shall be construed to
confer upon any person (other than the parties hereto and their respective successors and assigns) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

******

11

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above. 

WHITEHALL JEWELLERS, INC. By:    Name:   Title:    

	By:	 	 
	 	 	 
	Name:  	 	 
	 	 	 
	Title:	 	 

 

PRENTICE CAPITAL MANAGEMENT, LP

	By:	 	 
	 	 	 
	Name:  	Jonathan
    Duskin	 
	 	 	 
	Its:	Managing
    Director	 

12

PARTICIPATING SUPPLIER: 

	 	 	 
	 	 	 
	By:	 	 
	 	 	 
	Name:  	 	 
	 	 	 
	Title:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Facsimile:	 	 

13

ACKNOWLEDGED AND AGREED, WITH RESPECT TO SECTIONS 4 AND 5 

LASALLE BANK NATIONAL ASSOCIATION, as Agent

	By:	 	 
	 	 	 
	Name:  	 	 
	 	 	 
	Title:	 	 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]