Document:

EXHIBIT 10.44

                          AMENDMENT OF LEASE EXTENSION

CB Richard Ellis Limited
#600 - 1111 West Georgia Street
Vancouver, BC  V6E 4M3

Attention: Ms. Lisa Bailey and Mr. Blair Quinn

Re:  Lease between  Pivotal  Corporation  (the "Tenant") and Dunsmuir and Hornby
     Ltd. (the  "Landlord")  for the 4th and 6th floor  premises of the building
     located at 885 Dunsmuir,  Vancouver,  BC (the "Building")  dated August 18,
     2000.
--------------------------------------------------------------------------------

By a Lease  Extension  dated the 30th day of October 2001, the Tenant  exercised
their Option to extend the lease of the 4th and 6th floor  premises for a period
of five (5) months commencing May 1, 2002 and expiring September 30, 2002 on the
same terms and conditions as the 6th floor premises less the leasing commission.

The Tenant also  exercised  their Right of First  Refusal of the 7th floor lease
commencing May 1, 2002 and expiring September 30, 2002 at Market Rental Rates.

And Whereas the Tenant wishes to amend the Lease Extension.

Now Therefore this Lease Extension  Amendment witnesses that in consideration of
the mutual covenants hereafter contained,  the parties hereto covenant and agree
with each other that the said Lease Extension is hereby amended as follows:

     1)   The expiry date of the 4th & 6th floor  premises  shall be October 31,
          2002,
     2)   The expiry  date of the 7th floor  premises  shall be October 31, 2002
          and the Basic  Rental  Rate shall be $12.00 per square  foot per annum
          commencing May 1, 2002

A party  hereto may  signify  its  agreement  to the terms  hereof by  facsimile
transmission.  A telecopy facsimile of this agreement received by a party hereto
which shows the signature(s) of the authorized signatory(ies) of the other party
will be good proof of execution by that other party.

<PAGE>

DATED at Vancouver this 11th day of April, 2002.

DUNSMUIR & HORNBY LTD.

Per: [ILLEGIBLE SIGNATURE]              [ILLEGIBLE SIGNATURE]
     ------------------------------     ----------------------------------------
       (Authorized Signatory)                      (Witness)

ACCEPTED at North Vancouver, B.C. this 29th day of April, 2002.

PIVOTAL CORPORATION

Per: [ILLEGIBLE SIGNATURE]              [ILLEGIBLE SIGNATURE]
     ------------------------------     ----------------------------------------
       (Authorized Signatory)                      (Witness)

                                      -2-EXHIBIT 10.1

                                                                       EXECUTION
                                                                     COUNTERPART

                        3-YEAR REVOLVING CREDIT AGREEMENT

                            dated as of June 21, 2002

                                      among

                           DOLLAR GENERAL CORPORATION
                                   as Borrower

                  THE LENDERS FROM TIME TO TIME PARTIES HERETO

                           CREDIT SUISSE FIRST BOSTON
                              as Syndication Agent

                          KEYBANK NATIONAL ASSOCIATION
                       and U.S. BANK NATIONAL ASSOCIATION
                           as Co-Documentation Agents

                                       and

                                  SUNTRUST BANK
                             as Administrative Agent

================================================================================

                   SUNTRUST ROBINSON HUMPHREY CAPITAL MARKETS,
                  a division of SunTrust Capital Markets, Inc.,
                              as Sole Lead Arranger

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
<S>                        <C>                                                                                 <C>
                                                                                                               Page
ARTICLE I                  DEFINITIONS; CONSTRUCTION..............................................................1
         Section 1.1.      Definitions............................................................................1
         Section 1.2.      Classifications of Loans and Borrowings...............................................23
         Section 1.3.      Accounting Terms and Determination....................................................23
         Section 1.4.      Terms Generally.......................................................................24

ARTICLE II                 AMOUNT AND TERMS OF THE COMMITMENTS...................................................24
         Section 2.1.      General Description of Facilities.....................................................24
         Section 2.2.      Revolving Loans.......................................................................24
         Section 2.3.      Procedure for Revolving Borrowings....................................................25
         Section 2.4.      Swingline Loans.......................................................................25
         Section 2.5.      Procedure for Swingline Borrowings....................................................25
         Section 2.6.      Funding of Revolving Borrowings.......................................................27
         Section 2.7.      Interest Elections for Revolving Borrowings...........................................27
         Section 2.8.      Optional Reduction and Termination of Commitments.....................................28
         Section 2.9.      Repayment of Loans....................................................................29
         Section 2.10.     Evidence of Indebtedness..............................................................29
         Section 2.11.     Optional Prepayments..................................................................30
         Section 2.12.     Mandatory Prepayments and Commitment Reductions.......................................30
         Section 2.13.     Interest on Loans.....................................................................32
         Section 2.14.     Fees..................................................................................33
         Section 2.15.     Computation of Interest and Fees......................................................34
         Section 2.16.     Inability to Determine Interest Rates.................................................34
         Section 2.17.     Illegality............................................................................34
         Section 2.18.     Increased Costs.......................................................................35
         Section 2.19.     Funding Indemnity.....................................................................36
         Section 2.20.     Taxes.................................................................................36
         Section 2.21.     Payments Generally; Pro Rata Treatment; Sharing of Set-offs...........................38
         Section 2.22.     Mitigation of Obligations.............................................................40
         Section 2.23.     Letters of Credit.....................................................................40

ARTICLE III                CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT...................................45
         Section 3.1.      Conditions To Effectiveness...........................................................45
         Section 3.2.      Each Credit Event.....................................................................48
         Section 3.3.      Delivery of Documents.................................................................49

ARTICLE IV                 REPRESENTATIONS AND WARRANTIES........................................................49
         Section 4.1.      Existence; Power......................................................................49
         Section 4.2.      Organizational Power; Authorization...................................................49
         Section 4.3.      Governmental Approvals; No Conflicts..................................................49
         Section 4.4.      Financial Statements..................................................................50
         Section 4.5.      Litigation and Environmental Matters..................................................50
         Section 4.6.      Compliance with Laws..................................................................50

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                               Table of Contents
                               -----------------
                                  (continued)

<S>                        <C>                                                                                  <C>
         Section 4.7.      Investment Company Act, Etc...........................................................51
         Section 4.8.      Taxes.................................................................................51
         Section 4.9.      Margin Regulations....................................................................51
         Section 4.10.     ERISA.................................................................................51
         Section 4.11.     Ownership of Property.................................................................52
         Section 4.12.     Insurance.............................................................................53
         Section 4.13.     Disclosure............................................................................53
         Section 4.14.     Labor Relations.......................................................................54
         Section 4.15.     Status of Certain Agreements and Other Matters........................................54
         Section 4.16.     Subsidiaries..........................................................................55

ARTICLE V                  AFFIRMATIVE COVENANTS.................................................................55
         Section 5.1.      Financial Statements and Other Information............................................55
         Section 5.2.      Notices of Material Events............................................................57
         Section 5.3.      Existence; Conduct of Business........................................................58
         Section 5.4.      Compliance with Laws, Etc.............................................................58
         Section 5.5.      Payment of Taxes and Other Obligations................................................58
         Section 5.6.      Books and Records.....................................................................58
         Section 5.7.      Visitation, Inspection, Etc...........................................................58
         Section 5.8.      Maintenance of Properties; Insurance..................................................59
         Section 5.9.      Use of Proceeds and Letters of Credit.................................................59
         Section 5.10.     Additional Subsidiaries...............................................................59
         Section 5.11.     Further Assurances....................................................................60

0ARTICLE VI                FINANCIAL COVENANTS...................................................................60
         Section 6.1.      Funded Debt to EBITDAR Ratio..........................................................60
         Section 6.2.      EBITR to Interest and Rents Ratio.....................................................60
         Section 6.3.      Asset Coverage Ratio..................................................................61
         Section 6.4.      Consolidated Net Worth................................................................61
         Section 6.5.      Capital Expenditures..................................................................61

ARTICLE VII                NEGATIVE COVENANTS....................................................................61
         Section 7.1.      Indebtedness..........................................................................61
         Section 7.2.      Liens.................................................................................63
         Section 7.3.      Fundamental Changes...................................................................63
         Section 7.4.      Investments, Loans, Etc...............................................................64
         Section 7.5.      Restricted Payments...................................................................65
         Section 7.6.      Sale of Assets........................................................................66
         Section 7.7.      Transactions with Affiliates..........................................................66
         Section 7.8.      Restrictive Agreements................................................................67
         Section 7.9.      Sale and Leaseback Transactions.......................................................67
         Section 7.10.     Acquisitions..........................................................................67
         Section 7.11.     Hedging Transactions..................................................................67
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
                               Table of Contents
                               -----------------
                                  (continued)

<S>                        <C>                                                                                  <C>
         Section 7.12.     Actions Relating to Indenture and Senior Notes........................................68
         Section 7.13.     Accounting Changes....................................................................68

ARTICLE VIII               EVENTS OF DEFAULT.....................................................................68
         Section 8.1.      Events of Default.....................................................................68

ARTICLE IX                 THE ADMINISTRATIVE AGENT..............................................................71
         Section 9.1.      Appointment of Administrative Agent; Status of Issuing Bank...........................71
         Section 9.2.      Nature of Duties of Administrative Agent..............................................72
         Section 9.3.      Lack of Reliance on the Administrative Agent..........................................72
         Section 9.4.      Certain Rights of the Administrative Agent............................................73
         Section 9.5.      Reliance by Administrative Agent......................................................73
         Section 9.6.      The Administrative Agent in its Individual Capacity...................................73
         Section 9.7.      Successor Administrative Agent........................................................74

ARTICLE X                  MISCELLANEOUS.........................................................................74
         Section 10.1.     Notices...............................................................................74
         Section 10.2.     Waiver; Amendments....................................................................76
         Section 10.3.     Expenses; Indemnification.............................................................77
         Section 10.4.     Successors and Assigns................................................................78
         Section 10.5.     Governing Law; Jurisdiction; Consent to Service of Process............................80
         Section 10.6.     WAIVER OF JURY TRIAL..................................................................81
         Section 10.7.     Right of Setoff.......................................................................81
         Section 10.8.     Counterparts; Integration.............................................................82
         Section 10.9.     Survival..............................................................................82
         Section 10.10.    Severability..........................................................................82
         Section 10.11.    Confidentiality.......................................................................82
         Section 10.12.    Interest Rate Limitation..............................................................83
</TABLE>

EXHIBITS
--------
Exhibit A-1           Form of Revolving Credit Note
Exhibit A-2           Form of Swingline Note
Exhibit B             Form of Assignment and Acceptance
Exhibit C             Form of Guaranty Agreement
Exhibit D             Form of Contribution Agreement
Exhibit 2.3           Form of Notice of Revolving Borrowing
Exhibit 2.5           Form of Notice of Swingline Borrowing
Exhibit 2.9           Form of Continuation/Conversion
Exhibit 2.23          Form of LC Notice

                                       iii

<PAGE>

                               Table of Contents
                               -----------------
                                  (continued)
SCHEDULES:
----------
Schedule 1.1-A        Applicable Margins and Applicable Percentages
Schedule 1.1-B        Mortgaged Non-Retail Properties
Schedule 1.1-C        Mortgaged Retail Properties
Schedule 4.1          Subsidiaries Not Qualified or in Good Standing
Schedule 4.5          Litigation and Environmental Matters
Schedule 4.10         ERISA Exceptions
Schedule 4.14         Subsidiaries
Schedule 7.1          Existing Indebtedness
Schedule 7.2          Existing Liens
Schedule 7.4          Existing Investments

                                       iv

<PAGE>

                        3-YEAR REVOLVING CREDIT AGREEMENT
                        ---------------------------------

     THIS 3-YEAR  REVOLVING  CREDIT  AGREEMENT  (this  "Agreement")  is made and
entered into as of June 21, 2002,  by and among DOLLAR  GENERAL  CORPORATION,  a
Tennessee  corporation (the  "Borrower"),  the several banks and other financial
institutions  from time to time party hereto (the "Lenders"),  SUNTRUST BANK, in
its capacities as Issuing Bank (the "Issuing Bank"), and as Administrative Agent
(the "Administrative  Agent"), and Collateral Agent (the "Collateral Agent") for
the Lenders,  CREDIT SUISSE FIRST BOSTON,  as Syndication  Agent for the Lenders
(the  "Syndication  Agent"),  and KEYBANK  NATIONAL  ASSOCIATION  and U.S.  BANK
NATIONAL   ASSOCIATION,   as  Co-Documentation   Agents  for  the  Lenders  (the
"Co-Documentation Agents").

                              W I T N E S S E T H:
                              --------------------

     WHEREAS,   the  Borrower  has  requested  that  the  Lenders   establish  a
$300,000,000 revolving credit facility in favor of the Borrower; and

     WHEREAS, subject to the terms and conditions of this Agreement, the Lenders
severally,  to the extent of their respective Commitments as defined herein, are
willing to establish the  requested  revolving  credit  facility in favor of the
Borrower;

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
herein contained,  the Borrower,  the Lenders and the Administrative Agent agree
as follows:

                                   ARTICLE I

                            DEFINITIONS; CONSTRUCTION
                            -------------------------

     Section 1.1.  Definitions.  In addition to the other terms defined  herein,
                   -----------
the following terms used herein shall have the meanings herein  specified (to be
equally applicable to both the singular and plural forms of the terms defined):

     "Acquisition"  shall mean the  acquisition  by any of the  Borrower  or its
Subsidiaries  of any of the  following:  (i)  the  controlling  interest  in any
Person, (ii) the capital stock or other equity securities or ownership interests
in any Subsidiary not already owned by the Borrower or any of its  Subsidiaries,
and (iii) all or  substantially  all of the assets of any Person or a  division,
line of business, or business segment of any Person.

     "Adjusted LIBO Rate" shall mean, with respect to each Interest Period for a
Eurodollar Borrowing, the rate per annum obtained by dividing (i) LIBOR for such
Interest Period by (ii) a percentage equal to 1.00 minus the Eurodollar  Reserve
Percentage.

     "Administrative  Agent" shall have the meaning assigned to such term in the
opening paragraph hereof.

<PAGE>

     "Administrative  Questionnaire" shall mean, with respect to each Lender, an
administrative  questionnaire in the form prepared by the  Administrative  Agent
and submitted to the Administrative Agent duly completed by such Lender.

     "Affiliate"  shall mean, as to any Person,  any other Person that directly,
or indirectly through one or more intermediaries, Controls, is Controlled by, or
is under common  Control  with,  such Person.  For purposes of this  definition,
"Control" shall mean the power,  directly or indirectly,  either to (i) vote 10%
or more of securities having ordinary voting power for the election of directors
(or persons  performing  similar  functions) of a Person or (ii) direct or cause
the direction of the  management and policies of a Person,  whether  through the
ability  to  exercise  voting  power,  by  contract  or  otherwise.   The  terms
"Controlling",  "Controlled  by", and "under common  Control with" have meanings
correlative thereto.

     "Aggregate  Revolving  Commitment  Amount"  shall  mean the  amount  of the
Aggregate  Revolving  Commitments  in effect  from time to time.  On the Closing
Date, the Aggregate Revolving Commitment Amount equals $300,000,000.

     "Aggregate Revolving Commitments" shall mean at any time, collectively, all
Revolving Commitments of all Lenders in effect at such time.

     "Agreement" shall mean this 3-Year Revolving Credit Agreement,  as the same
may be amended, restated, and supplemented from time to time.

     "Applicable  Lending  Office" shall mean, for each Lender and for each Type
of Loan,  the  "Lending  Office" of such Lender (or an Affiliate of such Lender)
designated for such Type of Loan in the Administrative  Questionnaire  submitted
by such  Lender or such other  office of such  Lender (or an  Affiliate  of such
Lender) as such Lender may from time to time specify to the Administrative Agent
and the  Borrower as the office  through  which its Loans of such Type are to be
made and maintained.

     "Applicable  Margin" shall mean,  with respect to all Loans  outstanding on
any date,  the  percentage  per annum  determined by reference to the applicable
Debt Rating in effect on such date with respect to Eurodollar Loans as set forth
on the Pricing Grid.  Notwithstanding  the above,  if (i) the Moody's Rating and
the S&P Rating shall fall within different Levels of the Pricing Grid, the lower
of the two  different  Levels  will apply,  or (ii) either S&P or Moody's  shall
cease to have its  applicable  Debt Rating in effect,  then the  remaining  Debt
Rating  shall  apply,  or (iii)  both  S&P and  Moody's  shall  cease to have an
applicable Debt Rating in effect, then the Borrower and the Administrative Agent
shall  negotiate in good faith to amend the Pricing Grid (which  amendment shall
require the consent of each of the Lenders) to reflect the unavailability of the
Debt Ratings from such rating  agencies,  provided,  however  that,  pending the
effectiveness of any such amendment,  the applicable Debt Rating for purposes of
determining the Applicable  Margin shall be Level VI. A change in the Applicable
Margin  resulting from a change in the Debt Rating shall be effective on the day
on which either  Moody's or S&P changes its Debt Rating and shall continue until
the day prior to the day that a further  change by either Moody's or S&P becomes
effective.

                                       2

<PAGE>

     "Applicable Percentage" shall mean, with respect to the Facility Fee, as of
any date,  the  percentage  per annum  determined by reference to the applicable
Debt Rating as set forth on the Pricing Grid.  Notwithstanding the above, if (i)
the Moody's Rating and the S&P Rating shall fall within  different Levels of the
Pricing Grid, the lower of the two different  Levels will apply,  or (ii) either
S&P or Moody's shall cease to have its  applicable  Debt Rating in effect,  then
the remaining Debt Rating shall apply, or (iii) both S&P and Moody's shall cease
to have  an  applicable  Debt  Rating  in  effect,  then  the  Borrower  and the
Administrative  Agent shall  negotiate  in good faith to amend the Pricing  Grid
(which  amendment  shall  require the consent of each of the Lenders) to reflect
the  unavailability  of the Debt  Ratings from such rating  agencies;  provided,
                                                                       --------
however,  that, pending the effectiveness of any such amendment,  the applicable
-------
Debt Rating for purposes of determining the Applicable Percentage shall be Level
VI. A change in the  Applicable  Percentage  resulting from a change in the Debt
Rating shall be effective on the day on which either  Moody's or S&P changes its
Debt  Rating  and shall  continue  until the day prior to the day that a further
change by either Moody's or S&P becomes effective.

     "Apportioned  Amount"  shall mean,  with  respect to any Net  Proceeds,  an
amount equal to the pro rata share of such Net Proceeds  based on the  Aggregate
Revolving  Commitment  Amount  then  in  effect  under  this  Agreement  and the
"Aggregate Commitment Amount" then in effect under the 364-Day Credit Agreement.

     "Approved  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,  that is administered or managed by (i) a Lender, (ii) an Affiliate of
a Lender or (iii) an entity or an  Affiliate  of an entity that  administers  or
manages a Lender,  and that in any case has been approved by the  Administrative
Agent and the Issuing Bank hereunder.

     "Asset  Coverage  Ratio"  shall  mean,  as of any  date,  the  ratio of (i)
Eligible  Inventory as of such date to (ii) Consolidated  Funded Debt as of such
date.

     "Assignment and Acceptance" shall mean an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section  10.4(b)) and accepted by the  Administrative  Agent, in the
            ----------------
form  of  Exhibit  B  attached   hereto  or  any  other  form  approved  by  the
          ----------
Administrative Agent.

     "Availability  Period"  shall mean the period from the Closing  Date to the
Revolving Commitment Termination Date.

     "Base  Rate"  shall  mean the  higher of (i) the per annum  rate  which the
Administrative  Agent  publicly  announces  from  time to  time to be its  prime
lending rate,  as in effect from time to time,  and (ii) the Federal Funds Rate,
as in effect from time to time,  plus one-half of one percent (0.50%) per annum.
The  Administrative  Agent's prime lending rate is a reference rate and does not
necessarily  represent  the  lowest  or best  rate  charged  to  customers.  The
Administrative  Agent  may make  commercial  loans  or  other  loans at rates of
interest at, above or below the Administrative  Agent's prime lending rate. Each
change in the Administrative  Agent's prime lending rate shall be effective from
and including the date such change is publicly announced as being effective.

                                       3

<PAGE>

     "Borrower" shall have the meaning assigned to such term in the introductory
paragraph hereof.

     "Borrowing"  shall  mean a  borrowing  consisting  of (i) Loans of the same
Class and Type,  made,  converted  or continued on the same date and, in case of
Eurodollar  Loans,  as to which a single  Interest Period is in effect or (ii) a
Swingline Loan.

     "Business  Day"  shall mean (i) any day other  than a  Saturday,  Sunday or
other day on which  commercial  banks in  Atlanta,  Georgia  are  authorized  or
required  by law to close,  and (ii) if such day  relates to a  Borrowing  of, a
payment or  prepayment  of principal or interest on, a conversion of or into, or
an Interest Period for, a Eurodollar Loan or a notice with respect to any of the
foregoing,  any day on which  dealings  in Dollars  are carried on in the London
interbank market.

     "Capital  Expenditures" shall mean, for any period and without duplication,
(i)  the   additions  to  property,   plant  and  equipment  and  other  capital
expenditures  of the  Borrower and its  Subsidiaries  that are (or would be) set
forth on a consolidated  statement of cash flows of the Borrower for such period
prepared in accordance with GAAP, and (ii) Capital Lease Obligations incurred by
the Borrower and its Subsidiaries during such period.

     "Capital  Lease  Obligations"  of any Person shall mean all  obligations of
such Person to pay rent or other amounts  under any lease (or other  arrangement
conveying the right to use) real or personal property, or a combination thereof,
which  obligations  are required to be  classified  and accounted for as capital
leases on a balance  sheet of such  Person  under  GAAP,  and the amount of such
obligations  shall be the  capitalized  amount thereof  determined in accordance
with GAAP.

     "Change  in  Control"  shall  mean  the  occurrence  of one or  more of the
following events:  (i) any sale, lease,  exchange or other transfer (in a single
transaction or a series of related  transactions) of all or substantially all of
the assets of the  Borrower to any Person or "group"  (within the meaning of the
Securities  Exchange  Act of 1934 and the rules of the  Securities  and Exchange
Commission  thereunder in effect on the date hereof),  (ii) the  acquisition  of
ownership,  directly or indirectly,  beneficially or of record, by any Person or
"group" (within the meaning of the Securities Exchange Act of 1934 and the rules
of the  Securities and Exchange  Commission  thereunder as in effect on the date
hereof) acting in concert acquiring  beneficial  ownership of 30% or more of the
outstanding shares of the voting stock of the Borrower;  (iii) during any period
of  12  consecutive  calendar  months,   Continuing  Directors  shall  cease  to
constitute  a majority of the board of directors  of the  Borrower,  or (iv) any
event or  condition  shall  occur or exist  which,  pursuant to the terms of any
change of control  provision,  requires or permits the holder(s) of Indebtedness
of any Loan Party which  individually or in the aggregate is equal to or exceeds
$10,000,000  to  require  that  such  Indebtedness  be  redeemed,   repurchased,
defeased,  prepaid  or  repaid,  in whole or in part,  or the  maturity  of such
Indebtedness to be accelerated in any respect.

     "Change in Law" shall mean (i) the adoption of any applicable  law, rule or
regulation  after the date of this Agreement,  (ii) any change in any applicable
law, rule or  regulation,  or any change in the  interpretation  or  application
thereof,  by any  Governmental

                                       4
<PAGE>

Authority  after the date of this Agreement,  or (iii)  compliance by any Lender
(or its  Applicable  Lending  Office) or the  Issuing  Bank (or for  purposes of
Section  2.18(b),  by such Lender's or the Issuing  Bank's holding  company,  if
applicable) with any request,  guideline or directive (whether or not having the
force of law) of any  Governmental  Authority  made or issued  after the date of
this Agreement.

     "Class", when used in reference to any Loan or Borrowing, refers to whether
such Loan,  or the Loans  comprising  such  Borrowing,  are  Revolving  Loans or
Swingline Loans, and when used in reference to any Commitment, refers to whether
such Commitment is a Revolving Commitment or a Swingline Commitment.

     "Closing  Date" shall mean the date on which the  conditions  precedent set
forth in Section 3.1 and Section 3.2 have been satisfied or waived in accordance
         -----------     -----------
with Section 10.2.
     ------------

     "Code"  shall mean the  Internal  Revenue  Code of 1986,  as amended and in
effect from time to time.

     "Collateral"  shall mean,  collectively,  the Mortgaged  Properties and all
other collateral described from time to time in the Security Documents.

     "Collateral  Agent" shall mean SunTrust Bank, in its capacity as collateral
agent for the Lenders under the Security Documents.

     "Collateral  Documents"  shall  mean,  collectively,   the  Mortgages,  the
Environmental  Indemnity Agreement,  the UCC Financing  Statements,  the owners'
affidavits in respect of the Mortgaged  Properties,  and all other  instruments,
agreements  and documents  executed and delivered by any of the Borrower and the
Guarantors  pursuant to the requirements of this Agreement,  or the Mortgages in
respect of the  Collateral,  whether  pursuant  to Section  3.1,  Section  5.10,
Section 5.11 or otherwise.

     "Commitment" shall mean a Revolving Commitment or a Swingline Commitment or
any combination thereof (as the context shall permit or require).

     "Consolidated  Adjusted  Funded  Debt"  shall  mean,  as  of  any  date  of
determination for the Borrower and its Subsidiaries on a consolidated basis, the
sum  of  (i)  Consolidated  Funded  Debt  as of  such  date  and,  (ii)  without
duplication,  (A) the present value  (determined based on a discount rate of ten
percent (10%) in accordance with discounted present value analytical technology)
as of such date,  of all  remaining  payments  due under  leases  and  financing
obligations  (excluding  capital leases already  included in the  calculation of
Consolidated  Funded Debt),  whether for retail  stores,  distribution  centers,
administrative office space, furniture,  fixtures,  equipment, or other tangible
assets, and (B) all other Off-Balance Sheet Liabilities, in each case determined
on a consolidated basis in accordance with GAAP.

     "Consolidated  EBITDAR" shall mean,  for the Borrower and its  Subsidiaries
for any period,  an amount equal to the sum of (i)  Consolidated  EBITR for such
period,  and (ii) to the extent deducted in determining  Consolidated Net Income
for such period,  depreciation and  amortization  for such period,  in each case
determined on a consolidated basis in accordance with GAAP.

                                       5

<PAGE>

     "Consolidated  EBITR" shall mean, for the Borrower and its Subsidiaries for
any period,  an amount equal to the sum of (i)  Consolidated Net Income for such
period,  plus (ii) to the extent  deducted in determining the  Consolidated  Net
Income  for such  period  (x)  Consolidated  Interest  Expense,  (y)  income tax
expense,  and (z)  Consolidated  Rent  Expense,  in each  case  determined  on a
consolidated basis in accordance with GAAP.

     "Consolidated Funded Debt" shall mean, as of any date of determination, all
outstanding  Indebtedness of the Borrower and its Subsidiaries on a consolidated
basis (other than in respect of commercial letters of credit and Indebtedness of
the  types  described  in  clauses  (x) and (xi) of the  definition  of the term
Indebtedness),   including   without   limitation,   all   Obligations  and  all
"Obligations" as such term is defined in the 364-Day Credit Agreement.

     "Consolidated  Interest  Expense"  shall  mean,  for the  Borrower  and its
Subsidiaries  for any period,  determined on a consolidated  basis in accordance
with GAAP,  the sum of (i) total  interest  expense  (net of  interest  income),
including without limitation,  the interest component of any payments in respect
of capital  leases  capitalized or expensed  during such period  (whether or not
actually paid during such period,  and any program costs  incurred in respect of
any accounts  receivable  securitization or other financing  arrangement),  plus
(ii) the net amount payable (or minus the net amount receivable) with respect to
Hedging Obligations during such period (whether or not actually paid or received
during such period).

     "Consolidated  Net Income"  shall mean,  for any period,  the net income or
loss of the  Borrower  and its  Subsidiaries  for such  period  determined  on a
consolidated  basis in  accordance  with  GAAP;  provided  that  there  shall be
                                                 --------
excluded  (i) the income of any Person  (other than the  Borrower)  in which any
other Person (other than the Borrower or any Subsidiary) owns an equity interest
in excess of 10%,  except to the  extent  of the  amount of  dividends  or other
distributions  actually paid to the Borrower or any of the  Subsidiaries  during
such period,  (ii) any extraordinary items of gain or loss, and (iii) the income
or loss of any  Person or  business  accrued  prior to the date  such  Person or
business  is  included  in the results of  operations  of the  Borrower  and its
Subsidiaries,  in each case as determined on a consolidated  basis in accordance
with GAAP.

     "Consolidated Net Worth" shall mean, as of any date of  determination,  the
shareholders'  equity of the  Borrower,  as set forth or  reflected  on the most
recent  consolidated  balance sheet of the Borrower  prepared in accordance with
GAAP, but excluding any redeemable preferred stock.

     "Consolidated   Rent  Expense"   shall  mean,  for  the  Borrower  and  its
Subsidiaries  for any  period,  the  aggregate  amount  of all  rental  payments
(including  both minimum and contingent  rents) during such period in respect of
all lease agreements and financing obligations (excluding any amounts in respect
of capital  leases or  financing  obligations  included  in the  calculation  of
Consolidated  Interest  Expense for such  period),  whether  for retail  stores,
distribution  centers,   administrative  office  space,   furniture,   fixtures,
equipment, or other tangible assets.

                                       6

<PAGE>

     "Contractual  Obligation"  of any Person  shall mean any  provision  of any
security  issued by such Person or of any  agreement,  instrument or undertaking
under which such Person is  obligated  or by which it or any of the  property in
which it has an interest is bound.

     "Contribution  Agreement"  shall mean that certain  Contribution  Agreement
dated as of the date of this Agreement executed by the Borrower, the Guarantors,
and the Administrative Agent substantially in the form of Exhibit D, as the same
                                                          ---------
may be amended, restated or supplemented from time to time.

     "Continuing  Directors"  shall mean,  with  respect to any period of twelve
(12) consecutive  calendar  months,  any member of the board of directors of the
Borrower  who (a) was a member of such  board of  directors  on the first day of
such  period or (b) was  nominated  for  election  or  elected  to such board of
directors with the approval of a majority of the  Continuing  Directors who were
members of such board of directors at the time of such nomination or election.

     "DGI" shall mean Dollar General  Investment,  Inc., a Delaware  corporation
that is a direct  wholly owned  Subsidiary  of the  Borrower,  together with its
successors and permitted assigns.

     "DGI Loans" shall mean, collectively, the intercompany loans made by DGI to
the Mortgagors  (other than the Borrower) from the proceeds of the initial Loans
under the Related Revolving Credit  Facilities in an aggregate  principal amount
not to exceed  $320,000,000  for the purpose of providing  funds for refinancing
and replacing the outstanding  Indebtedness  under the Existing Synthetic Leases
encumbering the Mortgaged  Properties,  which  intercompany loans (i) provide by
their terms that (x) no principal  payments on such intercompany loans are to be
made during any time that any Obligations remain outstanding, or any Commitments
remain in  effect,  under  either of the  Related  Revolving  Credit  Facilities
without the prior  written  consent of the Required  Lenders,  (y) the principal
amounts of such  intercompany  loans  shall be deemed paid and  satisfied,  on a
dollar-for-dollar basis, in an amount equal to any payments of principal amounts
of the  Obligations  outstanding  under either of the Related  Revolving  Credit
Facilities made by the respective Mortgagors pursuant to the requirements of any
Guarantees  given by such  Mortgagors  in respect of such  Obligations,  and (z)
payment of such intercompany loans are subordinated to the prior payment in full
of all Obligations of the Mortgagors under their respective  Guarantees given in
respect of the Obligations  under the Related  Revolving Credit  Facilities,  on
terms and conditions  satisfactory to the  Administrative  Agent, and (ii) shall
otherwise be on terms and conditions satisfactory to the Administrative Agent.

     "Debt  Rating" shall mean the Moody's  Rating and the S&P's Rating,  as the
case may be.

     "Default" shall mean any condition or event that, with the giving of notice
or the lapse of time or both, would constitute an Event of Default.

     "Default  Interest" shall have the meaning assigned to such term in Section
                                                                         -------
2.13(b).
-------

                                       7

<PAGE>

     "Development  Authority" shall mean the Industrial Development Authority of
Davidson County.

     "Dollar(s)"  and the sign "$" shall mean lawful money of the United  States
of America.

     "Eligible  Assignee"  means (i) a Lender;  (ii) an  Affiliate  of a Lender;
(iii) an Approved Fund; and (iv) any other Person (other than a natural  Person)
approved by the  Administrative  Agent, the Issuing Bank, and unless an Event of
Default has occurred and is continuing,  the Borrower (each such approval not to
be  unreasonably  withheld or  delayed).  If the  consent of the  Borrower to an
assignment to an Eligible Assignee is required hereunder,  the Borrower shall be
deemed to have  given its  consent  five  Business  Days  after the date  notice
thereof has  actually  been  delivered  by the  assigning  Lender  (through  the
Administrative Agent) to the Borrower,  unless such consent is expressly refused
by the Borrower prior to such fifth Business Day.

     "Eligible   Inventory"  shall  mean  inventory  of  the  Borrower  and  its
Subsidiaries  valued at the lower of cost or market,  with cost determined using
the  retail  last-in,  first-out  method,  all  as  properly  reflected  on  the
Borrower's  consolidated  balance sheet and  otherwise  determined in accordance
with GAAP.

     "Environmental  Indemnity  Agreement"  shall mean the  Hazardous  Materials
Indemnity  Agreement  dated as of June 21,  2002  executed by the  Borrower  and
certain of the Guarantors in favor of the Collateral  Agent and the Lenders,  as
the same may be amended, restated and supplemented from time to time.

     "Environmental  Laws"  shall  mean all  laws,  rules,  regulations,  codes,
ordinances,  orders,  decrees,  judgments,   injunctions,   notices  or  binding
agreements  issued,  promulgated  or  entered  into by or with any  Governmental
Authority,  relating in any way to the environment,  preservation or reclamation
of natural  resources,  the  management,  Release or  threatened  Release of any
Hazardous Material, or to health and safety matters.

     "Environmental Liability" shall mean any liability, contingent or otherwise
(including any liability for damages,  costs of environmental  investigation and
remediation, costs of administrative oversight, fines, natural resource damages,
penalties  or  indemnities),  of the  Borrower  or any  Subsidiary  directly  or
indirectly  resulting from or based upon (i) any actual or alleged  violation of
any  Environmental  Law, (ii) the  generation,  use,  handling,  transportation,
storage,  treatment or disposal of any Hazardous Materials,  (iii) any actual or
alleged  exposure to any  Hazardous  Materials,  (iv) the Release or  threatened
Release of any  Hazardous  Materials  or (v) any  contract,  agreement  or other
consensual  arrangement  pursuant to which  liability is assumed or imposed with
respect to any of the foregoing.

     "ERISA" shall mean the Employee  Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute.

                                       8

<PAGE>

     "ERISA  Affiliate"  shall  mean  any  trade  or  business  (whether  or not
incorporated),  which,  together  with  the  Borrower,  is  treated  as a single
employer  under Section 414(b) or (c) of the Code or, solely for the purposes of
Section  302 of ERISA  and  Section  412 of the  Code,  is  treated  as a single
employer under Section 414 of the Code.

     "ERISA Event" shall mean (i) any "reportable  event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived);  (ii) the existence
with respect to any Plan of an "accumulated  funding  deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA),  whether or not waived;  (iii)
the filing  pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding  standard with respect to any
Plan; (iv) the incurrence by the Borrower or any of its ERISA  Affiliates of any
liability  under Title IV of ERISA with respect to the  termination of any Plan;
(v) the receipt by the Borrower or any ERISA  Affiliate  from the PBGC or a plan
administrator  appointed  by the PBGC of any notice  relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (vi)
the  incurrence by the Borrower or any of its ERISA  Affiliates of any liability
with  respect  to  the  withdrawal  or  partial  withdrawal  from  any  Plan  or
Multiemployer  Plan; or (vii) the receipt by the Borrower or any ERISA Affiliate
of any notice, or the receipt by any Multiemployer Plan from the Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.

     "Eurodollar"  when used in  reference  to any Loan or  Borrowing  refers to
whether such Loan, or the Loans  comprising such Borrowing,  bears interest at a
rate determined by reference to the Adjusted LIBO Rate.

     "Eurodollar  Reserve  Percentage"  shall mean the  aggregate of the maximum
reserve percentages (including, without limitation, any emergency, supplemental,
special or other marginal  reserves)  expressed as a decimal (rounded upwards to
the next 1/100th of 1%) in effect on any day to which the  Administrative  Agent
is subject with respect to the Adjusted LIBO Rate pursuant to regulations issued
by the Board of Governors  of the Federal  Reserve  System (or any  Governmental
Authority  succeeding  to  any of  its  principal  functions)  with  respect  to
eurocurrency funding (currently referred to as "eurocurrency  liabilities" under
Regulation  D).  Eurodollar  Loans  shall be deemed to  constitute  eurocurrency
funding and to be subject to such  reserve  requirements  without  benefit of or
credit for  proration,  exemptions or offsets that may be available from time to
time to any Lender under Regulation D. The Eurodollar  Reserve  Percentage shall
be adjusted  automatically  on and as of the effective date of any change in any
reserve percentage.

     "Event of Default" shall have the meaning  assigned to such term in Article
                                                                         -------
VIII.
----

     "Excluded Taxes" shall mean with respect to the  Administrative  Agent, any
Lender,  the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder,  (i) income or franchise
taxes  imposed on (or  measured by) its net income by any United  States  local,
state or federal governmental  authority,  or by the jurisdiction 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,  or any

                                       9

<PAGE>

nation  within  which such  jurisdiction  is  located,  or any
political  subdivision  thereof,  (ii) any branch  profits  taxes imposed by the
United States or any similar tax imposed by any other jurisdiction  described in
the  preceding  clause  (i),  and (iii) in the case of a  Non-U.S.  Lender,  any
withholding tax that (x) is imposed on amounts  payable to such Non-U.S.  Lender
at the time  such  Non-U.S.  Lender  becomes a party to this  Agreement,  (y) is
imposed  on  amounts  payable  to such  Non-U.S.  Lender  at any time  that such
Non-U.S.  Lender  designates a new Applicable  Lending Office,  other than taxes
that have accrued prior to the designation of such new Applicable Lending Office
that are otherwise not Excluded Taxes,  and (z) is attributable to such Non-U.S.
Lender's failure to comply with Section 2.20(e).
                                --------------

     "Existing Credit  Agreement" shall mean that certain Credit Agreement dated
as of September  2, 1997,  by and among the  Borrower,  the lenders from time to
time  party  thereto  and  SunTrust  Bank,  formerly  known  as  SunTrust  Bank,
Nashville, N.A., as agent, as amended and in effect as of the Closing Date.

     "Existing  Letter of Credit"  shall mean the  irrevocable  letter of credit
issued  by  SunTrust  Bank  dated   December  6,  2001  (Letter  of  Credit  No.
NSH/F400698) to Travelers Casualty & Surety Company of America and certain other
beneficiaries in the stated amount of $12,000,000, together with all extensions,
renewals, modifications and replacements thereof.

     "Existing  Synthetic  Leases"  shall  mean,  collectively,  (i)  the  Lease
Agreement,  dated as of  September  2, 1997,  between the  Borrower and Atlantic
Financial Group, Ltd., a Texas limited liability  partnership  ("AFG"),  and the
Master Lease  Agreement,  dated as of September 2, 1997,  among the Borrower and
certain of its  Subsidiaries,  SunTrust Bank  (formerly  known as SunTrust Bank,
Atlanta),  and AFG,  and (ii) the Lease  Agreement,  dated as of June 11,  1999,
between the Borrower and AFG, and the Master Lease  Agreement,  dated as of June
11, 1999,  between the Borrower and certain of its  Subsidiaries,  SunTrust Bank
(formerly known as SunTrust Bank, Atlanta), and AFG.

     "Facility Fee" shall mean the facility fee described in Section 2.14(b).
                                                             --------------

     "Federal  Funds Rate" shall mean,  for any day, the rate per annum (rounded
upwards, if necessary,  to the next 1/100th of 1%) equal to the weighted average
of the rates on overnight  Federal funds  transactions  with member banks of the
Federal  Reserve System  arranged by Federal funds brokers,  as published by the
Federal Reserve Bank of New York on the next succeeding  Business Day or if such
rate is not so published  for any Business  Day, the Federal Funds Rate for such
day shall be the average rounded upwards,  if necessary,  to the next 1/100th of
1% of  the  quotations  for  such  day  on  such  transactions  received  by the
Administrative  Agent from three Federal  funds  brokers of recognized  standing
selected by the Administrative Agent.

     "Fee  Letter"  shall mean that  certain fee  letter,  dated as of March 11,
2002, executed by SunTrust Capital Markets,  Inc. and SunTrust Bank and accepted
by the Borrower.

     "Fiscal Quarter" shall mean a fiscal quarter of the Borrower.

     "Fiscal Year" shall mean a fiscal year of the Borrower.

     "Foreign  Subsidiary"  shall  mean  any  Subsidiary  that  is  not  a  U.S.
Subsidiary.

                                       10

<PAGE>

     "GAAP" shall mean generally  accepted  accounting  principles in the United
States applied on a consistent basis and subject to the terms of Section 1.3.
                                                                 -----------

     "Governmental  Authority" shall mean the government of the United States of
America, any other nation or 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,  regulatory  or  administrative  powers or functions of or pertaining to
government.

     "Guarantee"  of  or  by  any  Person  (the  "guarantor")   shall  mean  any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of  guaranteeing  any  Indebtedness  or other  obligation of any
other  Person  (the  "primary  obligor")  in any  manner,  whether  directly  or
indirectly and including any  obligation,  direct or indirect,  of the guarantor
(i) to purchase or pay (or advance or supply  funds for the  purchase or payment
of) such  Indebtedness  or other  obligation  or to  purchase  (or to advance or
supply funds for the purchase of) any security for the payment thereof,  (ii) to
purchase or lease  property,  securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (iii)
to maintain  working  capital,  equity capital or any other financial  statement
condition  or  liquidity  of the  primary  obligor so as to enable  the  primary
obligor  to pay such  Indebtedness  or other  obligation,  or (iv) as an account
party in respect of any letter of credit or letter of guaranty issued in support
of such  Indebtedness or obligation;  provided,
                                      --------
that the term  "Guarantee"  shall not include  endorsements  for  collection  or
deposits in the ordinary  course of business.  The amount of any Guarantee shall
be deemed  to be an amount  equal to the  stated or  determinable  amount of the
primary obligation in respect of which Guarantee is made or, if not so stated or
determinable,  the maximum reasonably  anticipated  liability in respect thereof
(assuming  such Person is required to perform  thereunder) as determined by such
Person in good faith.  The term  "Guarantee"  used as a verb has a corresponding
meaning.

     "Guaranty Agreement" shall mean that certain Guaranty Agreement dated as of
the date hereof executed by the Guarantors in favor of the Administrative  Agent
for the  benefit  of the  Lenders,  substantially  in the form of  Exhibit C,
                                                                   ---------
as amended, restated, supplemented or otherwise modified from time to time.

     "Guarantors"  shall mean each U.S.  Subsidiary of the Borrower now existing
or hereafter acquired.

     "Hazardous  Materials"  means all  explosive or  radioactive  substances or
wastes  and all  hazardous  or toxic  substances,  wastes  or other  pollutants,
including  petroleum or petroleum  distillates,  asbestos or asbestos containing
materials,  polychlorinated  biphenyls,  radon gas, infectious or medical wastes
and all other  substances  or wastes of any  nature  regulated  pursuant  to any
Environmental Law.

     "Headquarters  Property"  shall  mean the  property  identified  as such on
Schedule 1.1-B attached to this Agreement.
--------------

                                       11

<PAGE>

     "Hedging  Obligations"  of any Person shall mean any and all obligations of
such  Person,  whether  absolute or  contingent  and  howsoever  and  whensoever
created,  arising,   evidenced  or  acquired  under  (i)  any  and  all  Hedging
Transactions,  (ii) any and all cancellations,  unwinds,  buy backs,  reversals,
terminations or assignments of any Hedging  Transactions,  and (iii) any and all
renewals,  extensions and modifications of any Hedging  Transactions and any and
all substitutions and replacements for any Hedging Transactions.

     "Hedging  Transaction" of any Person shall mean any transaction  (including
an  agreement  with respect  thereto) now existing or hereafter  entered into by
such Person that is a rate swap, basis swap, forward rate transaction, commodity
swap, interest rate option, foreign exchange transaction, cap transaction, floor
transaction,   collateral  transaction,   forward  transaction,   currency  swap
transaction,  cross-currency rate swap transaction, currency option or any other
similar  transaction  (including  any  option  with  respect  to  any  of  these
transactions) or any combination thereof, whether linked to one or more interest
rates,  foreign currencies,  commodity prices,  equity prices or other financial
measures.

     "Indebtedness"  of any  Person  shall  mean,  without  duplication  (i) all
obligations  of such Person for borrowed  money,  (ii) all  obligations  of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all  obligations  of such Person in respect of the  deferred  purchase  price of
property  or services  (other than trade  payables  and other  accrued  expenses
incurred in the  ordinary  course of business on terms  customary in the trade);
(iv) all  obligations of such Person under any  conditional  sale or other title
retention  agreement(s)  relating to property  acquired by such Person,  (v) all
Capital Lease  Obligations of such Person,  (vi) all obligations,  contingent or
otherwise,  of such Person in respect of standby letters of credit,  acceptances
or similar extensions of credit, (vii) all Guarantees by such Person of any type
of Indebtedness of others described in this definition,  (viii) all Indebtedness
of a third party secured by any Lien on property  owned by such Person,  whether
or not such  Indebtedness  has been  assumed by such Person;  provided
                                                              --------
that the amount of any Indebtedness of others that  constitutes  Indebtedness of
such Person  solely by reason of this clause  (viii)  shall not for  purposes of
this Agreement  exceed the greater of the book value or the fair market value of
the  properties or assets  subject to such Lien,  (ix) all  obligations  of such
Person,  contingent  or  otherwise,  to  purchase,  redeem,  retire or otherwise
acquire  for value  any  capital  stock or  partner,  member or other  ownership
interests of such Person or any Subsidiary or other Affiliate of such Person, in
each case where the holder of such  capital  stock or member or other  ownership
interests may require such purchase, redemption, retirement or other acquisition
to be effected  prior to the  Revolving  Commitment  Termination  Date,  (x) all
Off-Balance Sheet Liabilities of such Person,  and (xi) all Hedging  Obligations
of such Person.

     "Indemnified Taxes" shall mean Taxes other than Excluded Taxes.

     "Indenture" shall mean, collectively,  that certain Indenture,  dated as of
June 21,  2001,  by and  among the  Borrower,  as  issuer,  the  Guarantors,  as
Guarantors,  and First Union  National  Bank,  as trustee,  either as originally
executed  or as the  same  may  from  time to time  be  supplemented,  modified,
amended, renewed or extended as permitted herein.

                                       12

<PAGE>

     "Information Memorandum" shall mean the Confidential Information Memorandum
dated May 2002  relating to the Borrower and the  transactions  contemplated  by
this Agreement and the other Loan Documents.

     "Interest  Period" shall mean with respect to any Eurodollar  Borrowing,  a
period of one,  two,  three or six months as the Borrower  may elect;  provided,
                                                                       --------
that:

          (i) the initial  Interest  Period for such Borrowing shall commence on
     the date of such Borrowing  (including  the date of any  conversion  from a
     Borrowing of another Type), and each Interest Period  occurring  thereafter
     in respect of such  Borrowing  shall  commence on the day on which the next
     preceding Interest Period expires;

          (ii) if any Interest  Period would otherwise end on a day other than a
     Business Day, such Interest Period 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;

          (iii) any Interest  Period which 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 such calendar month; and

          (iv) no Interest  Period may extend  beyond the  Revolving  Commitment
     Termination Date.

     "Issuing  Bank" shall mean SunTrust  Bank or any other Lender,  each in its
capacity as an issuer of Letters of Credit pursuant to Section 2.23.
                                                       ------------
     "LC  Commitment"  shall  mean  that  portion  of  the  Aggregate  Revolving
Commitment  Amount that may be used by the  Borrower for the issuance of Letters
of Credit in an aggregate face amount not to exceed $30,000,000.

     "LC Disbursement" shall mean a payment made by the Issuing Bank pursuant to
a Letter of Credit.

     "LC  Documents"  shall mean the  Letters  of Credit  and all  applications,
agreements and instruments relating to the Letters of Credit.

     "LC Exposure" shall mean, at any time, the sum of (i) the aggregate undrawn
amount  of all  outstanding  Letters  of  Credit  at such  time,  plus  (ii) the
aggregate amount of all LC Disbursements  that have not been reimbursed by or on
behalf of the Borrower at such time.  The LC Exposure of any Lender shall be its
Pro Rata Share of the total LC Exposures for all Lenders at such time.

     "LC  Notice"  shall  have the  meaning  assigned  to such  term in  Section
                                                                         -------
2.23(b).
------

     "Lenders"  shall  have the  meaning  assigned  to such term in the  opening
paragraph of this Agreement and, unless the context  otherwise  requires,  shall
include the Swingline Lender.
                                       13

<PAGE>

     "Letter of Credit" shall mean any stand-by letter of credit issued pursuant
to Section 2.23 by the Issuing Bank for the account of the Borrower  pursuant to
   ------------
the LC Commitment.

     "Level" shall mean the respective category assigned to each applicable Debt
Rating of S&P and  Moody's  as set forth on the  Pricing  Grid,  being  Levels I
through VI.

     "LIBOR" shall mean, for any applicable  Interest Period with respect to any
Eurodollar Loan, the British Bankers'  Association  Interest Settlement Rate per
annum  for  deposits  in  Dollars  for a period  equal to such  Interest  Period
appearing  on the  display  designated  as Page  3750 on the  Dow  Jones  Market
Services (or such other page on that service or such other service designated by
the British Bankers' Association for the display of such Association's  interest
settlement rates for Dollar deposits) as of 11:00 a.m. (London, England time) on
the day that is two Business Days prior to the first day of the Interest  Period
or, if such Page 3750 is unavailable for any reason at such time, the rate which
appears on the Reuters Screen ISDA Page as of such date and such time; provided,
                                                                       --------
that if the Administrative  Agent determines that the relevant foregoing sources
are unavailable for the relevant  Interest Period,  LIBOR shall mean the rate of
interest  determined  by the  Administrative  Agent to be the  average  (rounded
upward,  if necessary,  to the nearest  1/100th of 1%) of the rates per annum at
which  deposits  in  Dollars  are  offered to the  Administrative  Agent two (2)
Business Days  preceding the first day of such Interest  Period by leading banks
in the London interbank market as of 10:00 a.m. for delivery on the first day of
such Interest Period,  for the number of days comprised therein and in an amount
comparable to the amount of the Eurodollar Loan of the Administrative Agent.

     "Lien" shall mean any mortgage,  pledge, security interest, lien (statutory
or  otherwise),   charge,  encumbrance,   hypothecation,   assignment,   deposit
arrangement,  or other arrangement  having the practical effect of the foregoing
or  any  preference,  priority  or  other  security  agreement  or  preferential
arrangement of any kind or nature whatsoever  (including any conditional sale or
other title  retention  agreement and any capital lease having the same economic
effect as any of the foregoing).

     "Loan Documents" shall mean,  collectively,  this Agreement,  the Notes (if
any), the LC Documents,  the Security Documents, the Post-Closing Agreement, all
Notices of Borrowing,  all LC Notices,  all Notices of  Conversion/Continuation,
and any and all other instruments,  agreements,  documents and writings executed
in connection with any of the foregoing.

     "Loan Parties" shall mean the Borrower and the Guarantors.

     "Loans" shall mean all Revolving Loans and Swingline Loans in the aggregate
or any of them, as the context shall require.

     "Material  Adverse  Effect"  shall mean,  with  respect to any event,  act,
condition or occurrence of whatever nature (including any adverse  determination
in any litigation,  arbitration,  or governmental  investigation or proceeding),
whether  singularly  or in  conjunction  with any other event or events,  act or
acts, condition or conditions, occurrence or occurrences whether or not related,
a material  adverse change in, or a material  adverse effect on, (i) the results
of

                                       14

<PAGE>

operations,  financial  condition or assets of the Borrower and its Subsidiaries
taken as a  whole,  (ii)  the  ability  of the Loan  Parties  to  perform  their
respective  obligations under the Loan Documents,  (iii) the rights and remedies
of the  Administrative  Agent,  the Issuing Bank, the Swingline  Lender,  or the
Lenders  under any of the Loan  Documents,  or (iv) the  legality,  validity  or
enforceability of any of the Loan Documents.

     "Material  Indebtedness"  shall mean Indebtedness (other than the Loans and
Letters of Credit) of any one or more of the Borrower and the Subsidiaries in an
aggregate  principal amount exceeding  $20,000,000.  For purposes of determining
Material  Indebtedness,  the "principal amount" of any Hedging Obligation at any
time shall be the Net Mark-to-Market Exposure of such Hedging Obligation at such
time.

     "Moody's" shall mean Moody's Investors Service, Inc and its successors.

     "Moody's Rating" shall mean, at any time, the rating assigned by Moody's to
the Borrower's senior unsecured long-term, non-credit enhanced debt at such time
or, if such  rating is not then  available,  Moody's  long-term  unsecured  debt
issuer rating of the Borrower then in effect.

     "Mortgaged  Properties"  shall mean,  collectively,  the  Mortgaged  Retail
Properties and the Mortgaged Non-Retail Properties.

     "Mortgaged Non-Retail Properties" shall mean, collectively,  the properties
described  on Schedule  1.1-B  attached  to this  Agreement,  including  without
              ---------------
improvements,  fixtures and equipment  installed or located thereon.

     "Mortgaged  Retail  Properties"  shall mean,  collectively,  the properties
described  on Schedule  1.1-C  attached  to this  Agreement,  including  without
              ---------------
limitation,  all buildings,  improvements,  fixtures and equipment  installed or
located thereon.

     "Mortgages" shall mean, collectively,  the first-priority mortgages,  deeds
of trust,  deeds to secure debt and related security  agreements and assignments
of leases and rents in respect of the Mortgaged  Properties  given by certain of
the Loan  Parties  in favor  of the  Collateral  Agent  to  secure  the  Secured
Obligations.

     "Mortgagors" shall mean,  collectively,  each of the Loan Parties that owns
(or,  in the case of the  Headquarters  Property,  leases  from the  Development
Authority) one or more of the Mortgaged Properties.

     "Multiemployer Plan" shall have the meaning set forth in Section 4001(a)(3)
of ERISA.

     "Net  Mark-to-Market  Exposure" of any Person shall mean, as of any date of
determination with respect to any Hedging Obligation, the excess (if any) of all
unrealized  losses over all unrealized  profits of such Person arising from such
Hedging Obligation.  "Unrealized losses" shall mean the fair market value of the
cost to such Person of  replacing  the Hedging  Transaction  giving rise to such
Hedging  Obligation  as of the  date  of  determination  (assuming  the  Hedging
Transaction  was to be terminated  as of that date),  and  "unrealized  profits"
means the

                                       15
<PAGE>

fair  market  value  of the  gain to  such  Person  of  replacing  such  Hedging
Transaction as of the date of determination  (assuming such Hedging  Transaction
were to be terminated as of such date of determination).

     "Net Proceeds"  means,  with respect to any Prepayment  Event, (a) the cash
proceeds  received by the Borrower or any of its Subsidiaries in respect of such
Prepayment  Event,  including  (i) any cash  received in respect of any non-cash
proceeds,  but only as and when received,  and (ii) in the case of a casualty or
condemnation event,  proceeds in excess of $250,000, in each case net of (b) the
sum of (A) all reasonable and customary fees and out-of-pocket  expenses paid by
the Borrower and the other Loan Parties to third parties (other than Affiliates)
in  connection  with  such  Prepayment  Event,  and  (B) in the  case of a sale,
transfer or other disposition of any Mortgaged  Property,  (x) the amount of all
taxes  (other  than  income  taxes)  and all income  taxes  paid (or  reasonably
estimated to be payable) by the Borrower and its  Subsidiaries  as a consequence
thereof (y) the amount of all  payments  required to be made by the Borrower and
its Subsidiaries to repay Indebtedness (other than the Loans ) secured by a Lien
thereon  permitted  by Section 7.2
                       -----------
and  required  to be repaid as a result of such  Prepayment  Event,  and (z) the
amount of any  reserves  established  by the Borrower  and its  Subsidiaries  in
accordance with GAAP to fund contingent  liabilities  reasonably estimated to be
payable and that are directly  attributable to such Prepayment  Event,  provided
                                                                        --------
that, at such time or times as such  contingent  liabilities  cease to exist, in
whole or in part, or the Borrower or such  Subsidiary  is otherwise  required or
permitted,  in accordance  with GAAP, to release such  reserves,  in whole or in
part, the amount of such reserves  affected by such cessation or release (not to
exceed  the  aggregate  cash  proceeds  otherwise  received  in  respect of such
Prepayment Event) shall constitute Net Proceeds at such time.

     "Non-U.S.  Lender" shall mean any Lender that is not a United States person
under Section 7701(a)(3) of the Code.

     "Notes"  shall  mean,  collectively,  the  Revolving  Credit  Notes and the
Swingline Note.

     "Notice of Conversion/Continuation" shall have the meaning assigned to such
term in Section 2.7(b).
        -------------

     "Notice of  Revolving  Borrowing"  shall have the meaning  assigned to such
term in Section 2.3.
        -----------

     "Notice of  Swingline  Borrowing"  shall  have the  meaning as set forth in
Section 2.5.
-----------

     "Notices of Borrowing" shall mean,  collectively,  the Notices of Revolving
Borrowing and the Notices of Swingline Borrowing.

     "Obligations"  shall  mean  all  amounts  owing  by  the  Borrower  to  the
Administrative  Agent,  the  Issuing  Bank  and all  Lenders  pursuant  to or in
connection with this Agreement, the Notes or any other Loan Document,  including
without  limitation,  all principal,  interest  (including any interest accruing
after the  filing of any  petition  in  bankruptcy  or the

                                       16

<PAGE>

commencement of any insolvency,  reorganization  or like proceeding  relating to
the Borrower,  whether or not a claim for post-filing or post-petition  interest
is allowed in such proceeding),  all reimbursement obligations,  fees, expenses,
indemnification  and reimbursement  payments,  costs and expenses (including all
fees and expenses of counsel to the Administrative Agent and any Lender incurred
pursuant  to this  Agreement  or any other  Loan  Document),  whether  direct or
indirect,  absolute or contingent,  liquidated or unliquidated,  now existing or
hereafter arising hereunder or thereunder,  and all Hedging Obligations owing to
the  Administrative  Agent,  any Lender or any of their  Affiliates  incurred in
respect  of any  interest  accruing  on  the  Loans,  and  all  obligations  and
liabilities  incurred in connection with collecting and enforcing the foregoing,
together with all renewals, extensions, modifications or refinancings thereof.

     "Off-Balance   Sheet   Liabilities"  of  any  Person  shall  mean  (i)  any
obligations created through asset securitization financing programs arranged for
such Person,  (ii) any  liabilities  of such Person under any sale and leaseback
transactions  which  do not  create a  liability  on the  balance  sheet of such
Person, (iii) any Synthetic Lease Obligations,  and (iv) any obligations arising
with respect to any other transaction  which is the functional  equivalent of or
takes the place of  borrowing  but which does not  constitute a liability on the
balance  sheet of such  Person,  in each case in an amount that would  result if
such  transaction  had  been  treated  as a  borrowing,  provided
                                                         --------
that any such obligation  described in the preceding  clause (ii) or this clause
(iv) shall not include any liability pursuant to an obligation  classified as an
operating lease for purposes of GAAP.

     "Operating  Lease  Obligations" of any Person shall mean all obligations of
such Person to pay rent and other amounts under any lease (or other arrangements
conveying the right to use) real or personal property, or a combination thereof,
which  obligations  are required to be classified and accounted for as operating
leases on a balance sheet of such Person under GAAP.

     "OSHA"  shall mean the  Occupational  Safety  and  Health  Act of 1970,  as
amended from time to time, and any successor statute.

     "Other Taxes" shall mean any and all present or future stamp or documentary
taxes or any other excise or property  taxes,  charges or similar levies arising
from any payment made hereunder or from the  execution,  delivery or enforcement
of, or otherwise  with respect to, this  Agreement,  any Note, or any other Loan
Document.

     "Participant"  shall  have the  meaning  assigned  to such term in  Section
                                                                         -------
10.4(d).
------

     "Payment Office" shall mean the office of the Administrative  Agent located
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as
to which  the  Administrative  Agent  shall  have  given  written  notice to the
Borrower and the other Lenders.

     "PBGC" shall mean the Pension Benefit Guaranty  Corporation referred to and
defined in ERISA, and any successor entity performing similar functions.

                                       17

<PAGE>

     "Permitted Encumbrances" shall mean

          (i) Liens imposed by law for taxes or special  assessments not yet due
     or which are being  contested in good faith by appropriate  proceedings and
     with respect to which adequate  reserves are being maintained in accordance
     with GAAP;

          (ii) statutory Liens of landlords and Liens of carriers, warehousemen,
     mechanics,  materialmen  and other  Liens  imposed  by law  created  in the
     ordinary  course of  business  for  amounts  not yet due or which are being
     contested  in good faith by  appropriate  proceedings  and with  respect to
     which adequate reserves are being maintained in accordance with GAAP;

          (iii) pledges and deposits made in the ordinary  course of business in
     compliance  with workers'  compensation,  unemployment  insurance and other
     social  security laws or regulations and deposits  securing  liabilities to
     insurance carriers under insurance or self-insurance arrangements;

          (iv)  deposits to secure the  performance  of bids,  trade  contracts,
     leases,  statutory obligations,  surety and appeal bonds, performance bonds
     and other obligations of a like nature, in each case in the ordinary course
     of business;

          (v)  judgment  and  attachment  Liens not  giving  rise to an Event of
     Default  or Liens  created  by or  existing  from any  litigation  or legal
     proceeding  that are currently being contested in good faith by appropriate
     proceedings  and  with  respect  to  which  adequate   reserves  are  being
     maintained in accordance with GAAP; and

          (vi)  easements,   zoning  restrictions,   rights-of-way  and  similar
     encumbrances  on real  property  imposed by law or arising in the  ordinary
     course of business  that do not  materially  detract  from the value of the
     affected  property or  materially  interfere  with the ordinary  conduct of
     business of the Borrower and its Subsidiaries taken as a whole;

provided,  that the term  "Permitted  Encumbrances"  shall not  include any Lien
--------
securing Indebtedness.

     "Permitted Investments" shall mean:

          (i)  direct  obligations  of,  or  obligations  the  principal  of and
     interest on which are unconditionally  guaranteed by, the United States (or
     by any agency thereof to the extent such obligations are backed by the full
     faith and credit of the United  States),  in each case maturing  within one
     year from the date of acquisition thereof;

          (ii)  commercial  paper  having  the  highest  rating,  at the time of
     acquisition  thereof,  of S&P or Moody's and in either case maturing within
     six months from the date of acquisition thereof;

          (iii) certificates of deposit,  bankers' acceptances and time deposits
     maturing  within  180 days of the date of  acquisition  thereof  issued  or
     guaranteed by or placed with, and money market deposit  accounts  issued or
     offered by, any domestic office of any

                                       16

<PAGE>

commercial  bank  organized  under  the laws of the  United  States or any state
thereof which has a combined  capital and surplus and  undivided  profits of not
less than $500,000,000;

          (iv) fully  collateralized  repurchase  agreements  with a term of not
     more than 30 days for securities  described in clause (i) above and entered
     into with a financial  institution  satisfying  the  criteria  described in
     clause (iii) above; and

          (v) mutual funds investing  solely in any one or more of the Permitted
     Investments described in clauses (i) through (iv) above.

     "Person"  shall  mean  any  individual,   partnership,  firm,  corporation,
association, joint venture, limited liability company, trust or other entity, or
any Governmental Authority.

     "Plan"  shall  mean  any  employee  pension  benefit  plan  (other  than  a
Multiemployer  Plan)  subject to the  provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA  Affiliate is (or, if such plan were  terminated,  would under Section
4069 of ERISA be deemed to be) an  "employer"  as  defined  in  Section  3(5) of
ERISA.

     "Post-Closing  Agreement" shall mean the Agreement  Regarding  Post-Closing
Matters dated as of June 21, 2002, among the Loan Parties and the Administrative
Agent, as the same may be amended, restated and supplemented from time to time.

     "Prepayment  Event" shall mean (a) any sale,  transfer or other disposition
of  a  Mortgaged   Property   (including   pursuant  to  a  sale  and  leaseback
transaction),  (b) any casualty or other insured  damage to, or any taking under
power of eminent domain or by condemnation or similar  proceeding (or settlement
in respect thereof) of, any Mortgaged  Property (but only to the extent that the
Net Proceeds therefrom have not been applied to repair,  restore or replace such
property  within  180  days of the  later of the  date of such  casualty  or the
receipt of such Net Proceeds after such event), (c) any issuance by the Borrower
or any Subsidiary of the Borrower of any equity or debt securities,  and (d) any
making of principal payments to DGI in respect of the DGI Loans.

     "Pricing  Grid"  shall  mean  the  table of  applicable  Debt  Ratings  and
corresponding  Applicable  Margins  and  Applicable  Percentages  set  forth  as
Schedule 1.1-A attached to this Agreement.
--------------

     "Pro Rata Share" shall mean,  with respect to any  Commitment of any Lender
at any  time,  a  percentage,  the  numerator  of which  shall be such  Lender's
Commitment (or if such  Commitments have been terminated or expired or the Loans
have  been  declared  to be due and  payable,  such  Lender's  Revolving  Credit
Exposure),  and the denominator of which shall be the sum of such Commitments of
all Lenders (or if such Commitments have been terminated or expired or the Loans
have been declared to be due and payable,  all Revolving  Credit Exposure of all
Lenders).

     "Regulation  D" shall mean  Regulation  D of the Board of  Governors of the
Federal Reserve System,  as the same may be in effect from time to time, and any
successor regulations.

                                       19

<PAGE>

     "Related  Revolving  Credit  Facilities"  shall  mean,  collectively,   the
revolving  credit  facilities  made  available to the Borrower  pursuant to this
Agreement and the 364-Day Credit Agreement.

     "Related  Parties" shall mean, with respect to any specified  Person,  such
Person's Affiliates and the respective directors,  officers,  employees,  agents
and advisors of such Person and such Person's Affiliates.

     "Release" means any release, spill, emission,  leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into the
environment (including ambient air, surface water, groundwater,  land surface or
subsurface strata) or within any building, structure, facility or fixture.

     "Required  Lenders" shall mean, at any time,  Lenders holding more than 50%
of the  aggregate  outstanding  Revolving  Commitments  at such  time or,  if no
Revolving Commitments are then outstanding, then Lenders having more than 50% of
the Revolving Credit Exposures of all Lenders.

     "Requirement  of Law" for any Person shall mean the articles or certificate
of  incorporation  and bylaws,  partnership  agreement,  certificate  of limited
partnership,  articles of  organization,  limited  liability  company  operating
and/or management  agreement,  or other organizational or governing documents of
such Person,  and any law,  treaty,  rule or regulations,  or determination of a
Governmental  Authority,  in each case applicable to or binding upon such Person
or any of its  property  or to  which  such  Person  or any of its  property  is
subject.

     "Responsible Officer" shall mean any of the president,  the chief executive
officer, the chief operating officer, the chief financial officer, the treasurer
or a vice president of the Borrower or such other representative of the Borrower
as may be designated in writing by any one of the foregoing  with the consent of
the Administrative Agent; and, with respect to the financial covenants only, the
chief financial officer or the treasurer of the Borrower.

     "Restricted  Payment"  shall  have the  meaning  assigned  to such  term in
Section 7.5.
-----------

     "Revolving  Commitment"  shall  mean,  with  respect  to each  Lender,  the
obligation  of such  Lender  to make  Revolving  Loans  to the  Borrower  and to
participate in Letters of Credit and Swingline  Loans in an aggregate  principal
amount not  exceeding  the amount set forth with  respect to such  Lender on the
signature pages to this Agreement,  or in the case of a Person becoming a Lender
after the Closing Date,  the amount of the assigned  "Revolving  Commitment"  as
provided  in the  Assignment  and  Acceptance  executed  by  such  Person  as an
assignee, in each case as the same may be increased or decreased pursuant to the
terms hereof.

     "Revolving Commitment Termination Date" shall mean the earliest of (i) June
21,  2005,  (ii) the date on which  the  Revolving  Commitments  are  terminated
pursuant to Section  2.8,
            ------------
and (iii) the date on which all amounts  outstanding  under this  Agreement have
been  declared  or  have  automatically  become  due  and  payable  (whether  by
acceleration or otherwise).

                                       20

<PAGE>

     "Revolving  Credit  Exposure" shall mean, with respect to any Lender at any
time, the sum of the  outstanding  principal  amount of such Lender's  Revolving
Loans, LC Exposure, and Swingline Exposure.

     "Revolving  Credit  Note"  shall  mean a  promissory  note of the  Borrower
payable  to the order of a  requesting  Lender in the  principal  amount of such
Lender's Revolving Commitment, in substantially the form of Exhibit A-1.
                                                            -----------

     "Revolving  Loan"  shall  mean a loan  made by a  Lender  (other  than  the
Swingline  Lender) to the Borrower  under its  Revolving  Commitment,  which may
either be a Base Rate Loan or a Eurodollar Loan.

     "S&P" shall mean Standard & Poor's and its successors.

     "S&P Rating"  shall mean,  at any time,  the rating  assigned by S&P to the
Borrower's senior unsecured long-term, non-credit enhanced debt at such time or,
if such rating is not then available, S&P's issuer credit rating of the Borrower
then in effect.

     "SEC  Investigation"  shall mean the  investigation  by the  Securities and
Exchange  Commission  into  the  circumstances  giving  rise  to the  Borrower's
restatement  of its audited  financial  statements for its Fiscal Years 1998 and
1999 and its unaudited  financial  statements and information  released prior to
April  30,  2001,  for  its  Fiscal  Year  2000,  and all  related  governmental
investigations and regulatory actions and proceedings.

     "Secured Obligations" shall mean, collectively, the Obligations as provided
in this Agreement, the "Obligations" as defined in the 364-Day Credit Agreement,
and all other  amounts  described in the  Collateral  Documents as being secured
thereby.

     "Security Documents" shall mean, collectively,  the Guaranty Agreement, the
Contribution Agreement, and the Collateral Documents.

     "Senior  Notes" shall mean,  collectively,  the Borrower's 8 5/8% Notes due
June 15,  2010,  in the  aggregate  principal  amount  of  $200,000,000,  issued
pursuant to the Indenture.

     "Shareholder  Settlements"  shall mean the aggregate amounts required to be
paid by the Borrower  pursuant to any  settlement  arrangement(s),  judgment(s),
decree(s),  and/or order(s) agreed by or entered against the Borrower in respect
of shareholder  litigation and related proceedings arising out of the Borrower's
restatement  of its audited  financial  statements for its Fiscal Years 1998 and
1999 and its unaudited  financial  statements and information  released prior to
April 30, 2001, for its Fiscal Year 2000.

     "Subsidiary"  shall mean,  with respect to any Person (the  "parent"),  any
corporation,  partnership, joint venture, limited liability company, association
or other  entity the accounts of which would be  consolidated  with those of the
parent in the  parent's  consolidated  financial  statements  if such  financial
statements were prepared in accordance with GAAP as of such date, as well as any
other  corporation,  partnership,  joint  venture,  limited  liability  company,
association or other entity (i) of which securities or other ownership interests
representing more

                                       21

<PAGE>

than 50% of the equity or more than 50% of the ordinary  voting power, or in the
case of a partnership,  more than 50% of the general partnership  interests are,
as of such date,  owned,  controlled  or held, or (ii) that is, as of such date,
otherwise controlled, by the parent or one or more subsidiaries of the parent or
by the parent  and one or more  subsidiaries  of the  parent.  Unless  otherwise
indicated,  all references to "Subsidiary"  hereunder shall mean a Subsidiary of
the Borrower.

     "Swingline Commitment" shall mean the commitment of the Swingline Lender to
make Swingline Loans in an aggregate  principal  amount at any time  outstanding
not to exceed $10,000,000.

     "Swingline  Commitment  Termination  Date" shall mean the date that is five
(5) Business Days prior to the Revolving Commitment Termination Date.

     "Swingline Exposure" shall mean, with respect to each Lender, the aggregate
principal  amount of the  Swingline  Loans as to which such Lender is  obligated
either  to make  Base  Rate  Loans  or to  purchase  participations  therein  in
accordance  with  Section 2.5,  which amount shall equal such  Lender's Pro Rata
                  -----------
Share of all outstanding Swingline Loans.

     "Swingline  Lender"  shall mean  SunTrust Bank or any other Lender that may
agree to make Swingline Loans hereunder.

     "Swingline  Loan" shall mean a loan made to the  Borrower by the  Swingline
Lender under the Swingline Commitment.

     "Swingline  Loan  Period"  shall  mean the  period of time not more than 10
days,  specified by the Borrower in respect of a Swingline  Loan requested to be
made bearing interest at a Swingline Quoted Rate.

     "Swingline  Note" shall mean the promissory note of the Borrower payable to
the order of the  Swingline  Lender  in the  principal  amount of the  Swingline
Commitment, substantially the form of Exhibit A-2.
                                      -----------

     "Swingline  Quoted  Rate"  shall  mean the rate of  interest  quoted by the
Swingline  Lender,  and  accepted by the  Borrower,  with respect to a requested
Swingline Loan made pursuant to Section 2.5.
                                -----------

     "Synthetic  Lease" means a lease transaction under which (i) the lease will
be treated  as an  "operating  lease" by the lessee  pursuant  to  Statement  of
Financial  Accounting  Standards  No. 13, as amended and (ii) the lessee will be
entitled to various tax and other  benefits  ordinarily  available to owners (as
opposed to lessees) of like property.

     "Synthetic Lease  Obligations"  shall mean, with respect to any Person, the
sum of (i) all  remaining  rental  obligations  of such  Person as lessee  under
Synthetic Leases that are  attributable to principal and,  without  duplication,
(ii) all rental and purchase price payment obligations of such Person under such
Synthetic Leases assuming such Person exercises the option to purchase the lease
property at the end of the lease term.

                                       22

<PAGE>

     "Taxes"  shall mean any and all present or future taxes,  levies,  imposts,
duties,  deductions,   charges  or  withholdings  imposed  by  any  Governmental
Authority.

     "364-Day Credit Agreement" shall mean that certain 364-Day Revolving Credit
Agreement dated as of June 21, 2002, by and among the Borrower, the lenders from
time to time party thereto and SunTrust Bank, as  administrative  agent,  as the
same may be amended, restated, and supplemented from time to time.

     "Type",  when used in reference to a Loan or  Borrowing,  refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate or the Base Rate.

     "UCC  Financing  Statements"  shall  mean,   collectively,   the  financing
statements  (including those describing fixtures on the Mortgaged Properties) to
be filed in  respect  of the  Collateral  pursuant  to the  requirements  of the
Uniform Commercial Code of the various states where necessary or advisable under
applicable  law in order to  perfect  a lien on and  security  interest  in such
Collateral  in favor  of the  Collateral  Agent,  together  with all  amendments
thereto and assignments thereof.

     "U.S.  Subsidiary"  shall mean a Subsidiary  that is a United States person
under Section 7701(a)(3) of the Code.

     "Withdrawal  Liability"  shall mean liability to a Multiemployer  Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

     Section 1.2. Classifications of Loans and Borrowings.  For purposes of this
                  ---------------------------------------
Agreement,  Loans may be classified and referred to by Class (e.g., a "Revolving
Loan" or "Swingline  Loan") or by Type (e.g., a "Eurodollar  Loan" or "Base Rate
Loan") or by Class and Type (e.g., "Revolving Eurodollar Loan"). Borrowings also
may be  classified  and referred to by Class  (e.g.,  "Revolving  Borrowing"  or
"Swingline Borrowing") or by Type (e.g., "Eurodollar Borrowing") or by Class and
Type (e.g., "Revolving Eurodollar Borrowing").

     Section 1.3.  Accounting Terms and Determination.  Unless otherwise defined
                   ----------------------------------
or specified herein, all accounting terms used herein shall be interpreted,  all
accounting  determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared, in accordance with GAAP as
in effect from time to time,  applied on a basis consistent with the most recent
audited consolidated  financial statements of the Borrower delivered pursuant to
Section 5.1(a); provided, that if the Borrower notifies the Administrative Agent
-------------   --------
that the Borrower  wishes to amend any  covenant in Article VI to eliminate  the
effect  of any  change  in GAAP on the  operation  of such  covenant  (or if the
Administrative  Agent  notifies the Borrower  that the Required  Lenders wish to
amend Article VI for such  purpose),  then the Borrower's  compliance  with such
covenant shall be determined on the basis of GAAP in effect  immediately  before
the  relevant  change in GAAP  became  effective,  until  either  such notice is
withdrawn or such covenant is amended in a manner  satisfactory  to the Borrower
and the Required Lenders.

                                       23

<PAGE>

     Section 1.4. Terms  Generally.  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".  In
the  computation of periods of time from a specified  date to a later  specified
date, the word "from" means "from and including" and the word "to" means "to but
excluding".  Unless the context  requires  otherwise  (i) any  definition  of or
reference  to any  agreement,  instrument  or  other  document  herein  shall be
construed as referring to such agreement, instrument or other document as it was
originally  executed or as it may from time to time be amended,  supplemented or
otherwise modified (subject to any restrictions on such amendments,  supplements
or  modifications  set forth  herein),  (ii) any reference  herein to any Person
shall be construed to include such Person's  successors  and permitted  assigns,
(iii) the words  "hereof",  "herein" and "hereunder" and words of similar import
shall  be  construed  to  refer  to this  Agreement  as a  whole  and not to any
particular provision hereof, (iv) all references to Articles, Sections, Exhibits
and Schedules  shall be construed to refer to Articles,  Sections,  Exhibits and
Schedules to this Agreement,  and (v) all references to a specific time shall be
construed  to refer to the  time in the  city  and  state of the  Administrative
Agent's principal office, unless otherwise indicated.

                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENTS

     Section 2.1.  General  Description of  Facilities.  Subject to and upon the
                   -----------------------------------
terms and conditions set forth herein, (i) the Lenders hereby establish in favor
of the  Borrower a  revolving  credit  facility  pursuant  to which each  Lender
severally agrees (to the extent of such Lender's  Revolving  Commitment) to make
Revolving Loans to the Borrower in accordance with Section 2.2, (ii) the Issuing
                                                   -----------
Bank agrees to issue  Letters of Credit in accordance  with Section 2.23,  (iii)
                                                            ------------
the Swingline  Lender agrees to make Swingline  Loans in accordance with Section
                                                                         -------
2.4,  (iv) each  Lender  agrees to  purchase  a  participation  interest  in the
---
Swingline  Loans as  provided  in Section  2.5;  and (v) each  Lender  agrees to
                                  ------------
purchase  a  participation  interest  in the  Letters of Credit as  provided  in
Section 2.23; provided, that in no event shall the aggregate principal amount of
------------  --------
all  outstanding  Revolving  Loans,  Swingline Loans and outstanding LC Exposure
exceed at any time the Aggregate  Revolving  Commitment Amount from time to time
in effect.

     Section 2.2. Revolving Loans. Subject to the terms and conditions set forth
                  ---------------
herein,  each Lender  severally  agrees to make Revolving Loans to the Borrower,
from time to time during the  Availability  Period,  in an  aggregate  principal
amount  outstanding  at any time  that  will  not  result  in (i) such  Lender's
Revolving Credit Exposure exceeding such Lender's  Revolving  Commitment or (ii)
the sum of the aggregate Revolving Credit Exposures of all Lenders exceeding the
Aggregate  Revolving  Commitment  Amount.  During the Availability  Period,  the
Borrower  shall be entitled to borrow,  prepay and reborrow  Revolving  Loans in
accordance with the terms and conditions of this Agreement;  provided,  that the
                                                             --------
Borrower  may not borrow or reborrow  any Loans  should there exist a Default or
Event  of  Default  (other  than  a  reborrowing  (x)  consisting  solely  of  a
continuation  of an existing  Eurodollar  Borrowing for a new Interest Period of
one (1)  month  at a time  when  there  exists  a  Default  (but not an Event of

                                       24
<PAGE>

Default),  or (y)  consisting  solely of a conversion of an existing  Eurodollar
Borrowing to a Base Rate Borrowing).

     Section 2.3.  Procedure for Revolving  Borrowings.  The Borrower shall give
                   -----------------------------------
the Administrative Agent written notice (or telephonic notice promptly confirmed
in writing) of each Revolving Borrowing substantially in the form of Exhibit 2.3
                                                                     -----------
attached  hereto (a "Notice  of  Revolving  Borrowing")  (x) prior to 12:00 noon
(Atlanta,  Georgia time) on the requested  date of each Base Rate  Borrowing and
(y) prior to 12:00 noon (Atlanta, Georgia time) at least three (3) Business Days
prior  to the  requested  date of each  Eurodollar  Borrowing.  Each  Notice  of
Revolving  Borrowing shall be irrevocable  and shall specify:  (i) the aggregate
principal amount of such Borrowing, (ii) the date of such Borrowing (which shall
be a  Business  Day),  (iii) the Type of such  Revolving  Loan  comprising  such
Borrowing  and (iv) in the case of a Eurodollar  Borrowing,  the duration of the
initial  Interest Period  applicable  thereto  (subject to the provisions of the
definition of Interest Period).  Each Revolving Borrowing shall consist entirely
of Base Rate  Loans or  Eurodollar  Loans,  as the  Borrower  may  request.  The
aggregate  principal amount of each such Eurodollar  Borrowing shall be not less
than $10,000,000 or a larger multiple of $500,000,  and the aggregate  principal
amount of each such Base Rate Borrowing  shall not be less than  $1,000,000 or a
larger  multiple of $100,000;  provided,  that Base Rate Loans made  pursuant to
                               --------
Section  2.5(b) and Section  2.23(d)  may be made in lesser  amounts as provided
--------------      ---------------
therein. At no time shall the total number of Eurodollar Borrowings  outstanding
at any time  exceed  twelve.  Promptly  following  the  receipt  of a Notice  of
Revolving  Borrowing in  accordance  herewith,  the  Administrative  Agent shall
advise  each  Lender of the  details  thereof  and the  amount of such  Lender's
Revolving Loan to be made as part of the requested Revolving Borrowing.

     Section 2.4. Swingline Loans.  Subject to and upon the terms and conditions
                  ---------------
set forth herein,  the Swingline  Lender agrees to make  Swingline  Loans to the
Borrower,  from time to time from the Closing Date to the  Swingline  Commitment
Termination Date, in an aggregate  principal amount  outstanding at any time not
to exceed the lesser of (i) the Swingline Commitment then in effect and (ii) the
difference between the Aggregate Revolving  Commitment Amount then in effect and
the  aggregate  Revolving  Credit  Exposures of all Lenders then  existing.  The
Borrower  shall be entitled to borrow,  repay and  reborrow  Swingline  Loans in
accordance with the terms and conditions of this Agreement;  provided,  that the
                                                             --------
Borrower  may not borrow or reborrow  any  Swingline  Loans should there exist a
Default or Event of Default.

     Section 2.5. Procedure for Swingline Borrowings.
                  ----------------------------------

     (a) The Borrower  shall give the  Administrative  Agent written  notice (or
telephonic  notice  promptly  confirmed in writing) of each Swingline  Borrowing
substantially  in the form of Exhibit 2.5 attached  hereto ("Notice of Swingline
                              -----------
Borrowing") prior to 12:00 noon (Atlanta, Georgia time) on the requested date of
each  Swingline   Borrowing.   Each  Notice  of  Swingline  Borrowing  shall  be
irrevocable and shall specify:  (i) the principal amount of such Swingline Loan,
(ii) the date of such Swingline Loan (which shall be a Business Day),  (iii) the
account of the Borrower to which the proceeds of such  Swingline  Loan should be
credited, and (iv) if the Borrower is requesting that such Swingline Loan accrue
interest based on a Swingline  Quoted Rate, the requested  Swingline Loan Period
for such  Swingline  Loan.  The  Administrative

                                       25

<PAGE>

Agent will  promptly  advise the  Swingline  Lender of each Notice of  Swingline
Borrowing,  and the Swingline  Lender and the Borrower shall establish by mutual
agreement the Swingline  Quoted Rate.  Each Swingline Loan shall accrue interest
at the rate in effect  for Base Rate  Loans,  or if  applicable,  the  Swingline
Quoted Rate. The aggregate  principal amount of each Swingline Loan shall be not
less than $100,000 (or the remaining unused amount of the Swingline  Commitment,
if less) or a larger  multiple of $50,000,  or such other minimum amounts agreed
to by the Swingline Lender and the Borrower.  The Swingline Lender will make the
proceeds  of each  Swingline  Loan  available  to the  Borrower  in  Dollars  in
immediately  available  funds at the account  specified  by the  Borrower in the
applicable  Notice  of  Swingline  Borrowing  not later  than  3:00 p.m.  on the
requested  date of such  Swingline  Loan.  At no time shall the total  number of
Swingline Loans  outstanding that bear interest based on a Swingline Quoted Rate
exceed three.

     (b) The  Swingline  Lender,  at any time and from  time to time in its sole
discretion,  may, on behalf of the Borrower (which hereby irrevocably authorizes
and  directs  the  Swingline  Lender  to act on its  behalf),  give a Notice  of
Revolving   Borrowing  to  the  Administrative   Agent  requesting  the  Lenders
(including  the Swingline  Lender) to make Base Rate Loans in an amount equal to
their  respective  Pro  Rata  Shares  of the  unpaid  principal  amounts  of any
Swingline  Loans.  Each  Lender  will  make the  proceeds  of its Base Rate Loan
included in such Borrowing available to the Administrative Agent for the account
of the  Swingline  Lender in  accordance  with Section  2.6,  which will be used
                                               ------------
solely for the repayment of such Swingline Loans.

     (c) If for any reason a Base Rate  Borrowing  may not be (as  determined in
the sole discretion of the Administrative  Agent), or is not, made in accordance
with the foregoing  provisions of Section  2.5(b),  then each Lender (other than
                                  --------------
the Swingline Lender) shall purchase an undivided participating interest in such
Swingline  Loans in an amount  equal to its Pro Rata  Share  thereof on the date
that such Base Rate Borrowing should have occurred. On the date of such required
purchase,  (i) each Lender shall promptly  transfer,  in  immediately  available
funds, the amount of its participating  interest to the Administrative Agent for
the  account  of the  Swingline  Lender,  and  (ii)  the  Swingline  Loan  shall
thereafter bear interest at the rate in effect for Base Rate Loans.

     (d) Each  Lender's  obligation to make a Base Rate Loan pursuant to Section
                                                                         -------
2.5(b) or to purchase the  participating  interests  pursuant to Section  2.5(c)
-----                                                            --------------
shall  be  absolute  and   unconditional  and  shall  not  be  affected  by  any
circumstance,   including  without  limitation  (i)  any  setoff,  counterclaim,
recoupment, defense or other right that such Lender or any other Person may have
or claim against the Swingline Lender,  the Borrower or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default or the
termination  of any  Lender's  Revolving  Commitment,  (iii) the  existence  (or
alleged  existence) of any event or condition which has had or could  reasonably
be expected to have a Material Adverse Effect, (iv) any breach of this Agreement
or any other Loan  Document by the  Borrower,  the  Administrative  Agent or any
Lender or (v) any other circumstance,  happening or event whatsoever, whether or
not  similar  to any of the  foregoing.  If  such  amount  is not in  fact  made
available to the Swingline  Lender by any Lender,  the Swingline Lender shall be
entitled  to recover  such  amount on demand  from such  Lender,  together  with
accrued  interest  thereon  for each day from the date of demand  thereof at the
Federal Funds Rate.  Until such time as such Lender makes its required  payment,

                                       26
<PAGE>

the Swingline Lender shall be deemed to continue to have  outstanding  Swingline
Loans in the amount of the unpaid  participation  for all  purposes  of the Loan
Documents. In addition, such Lender shall be deemed to have assigned any and all
payments  made of principal  and interest on its Loans and any other amounts due
to it  hereunder  to the  Swingline  Lender to fund the amount of such  Lender's
participation  interest in such Swingline  Loans that such Lender failed to fund
pursuant to this Section 2.5, until such amount has been purchased in full.
                 -----------

     Section 2.6. Funding of Revolving Borrowings.
                  -------------------------------

     (a) Each Lender will make  available  each  Revolving Loan to be made by it
hereunder on the proposed date thereof by wire transfer in immediately available
funds by 1:00  p.m.(Atlanta,  Georgia time) to the  Administrative  Agent at the
Payment  Office.  The  Administrative  Agent  will  make  such  Revolving  Loans
available to the Borrower by promptly crediting the amounts that it receives, in
like  funds by the  close of  business  on such  proposed  date,  to an  account
maintained by the Borrower with the  Administrative  Agent or at the  Borrower's
option, by effecting a wire transfer of such amounts to an account designated in
writing by the Borrower to the Administrative Agent.

     (b) Unless the Administrative  Agent shall have been notified by any Lender
prior to 5:00  p.m.  one (1)  Business  Day  prior  to the  date of a  Revolving
Borrowing in which such Lender is  participating  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 amount available
to the  Administrative  Agent on such date,  and the  Administrative  Agent,  in
reliance on such  assumption,  may make available to the Borrower on such date a
corresponding amount. If such corresponding amount is not in fact made available
to the  Administrative  Agent by such Lender on the date of such Borrowing,  the
Administrative  Agent shall be entitled to recover such corresponding  amount on
demand from such Lender  together with interest at the Federal Funds Rate for up
to two (2) days and thereafter at the rate specified for such Borrowing. If such
Lender does not pay such corresponding  amount forthwith upon the Administrative
Agent's demand  therefor,  the  Administrative  Agent shall promptly  notify the
Borrower,  and the Borrower shall immediately pay such  corresponding  amount to
the  Administrative  Agent together with interest at the rate specified for such
Borrowing. Nothing in this subsection shall be deemed to relieve any Lender from
its  obligation  to fund its Pro Rata  Share of any  Borrowing  hereunder  or to
prejudice  any rights which the Borrower may have against any Lender as a result
of any default by such Lender hereunder.

     (c) All Revolving  Borrowings  shall be made by the Lenders on the basis of
their respective Pro Rata Shares. No Lender shall be responsible for any default
by any other  Lender in its  obligations  hereunder,  and each  Lender  shall be
obligated  to make its  Revolving  Loans  provided  to be made by it  hereunder,
regardless  of the  failure  of any  other  Lender to make its  Revolving  Loans
hereunder.

          Section 2.7. Interest Elections for Revolving Borrowings.
                       -------------------------------------------

(a) Each Revolving Borrowing initially shall be of the Type specified in the
applicable Notice of Revolving Borrowing, and in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Notice of
Revolving Borrowing. Thereafter, the

                                       27

<PAGE>

Borrower  may  elect to  convert  such  Borrowing  into a  different  Type or to
continue such Borrowing,  and in the case of a Eurodollar  Borrowing,  may elect
Interest  Periods  therefor,  all as provided in this Section.  The Borrower may
elect  different  options  with  respect to  different  portions of the affected
Borrowing,  in which case each such portion shall be allocated ratably among the
Lenders  holding  Revolving Loans  comprising such Borrowing,  and the Revolving
Loans comprising each such portion shall be considered a separate Borrowing.

     (b) To make an election  pursuant to this Section,  the Borrower shall give
the  Administrative  Agent prior written notice (or telephonic  notice  promptly
confirmed in writing) of each Borrowing (a "Notice of  Conversion/Continuation")
that is to be  converted  or  continued,  as the case may be, (x) prior to 12:00
noon (Atlanta,  Georgia time) on the requested date of a conversion  into a Base
Rate  Borrowing,  and (y) prior to 12:00 noon (Atlanta,  Georgia time) three (3)
Business  Days  prior  to a  continuation  of or  conversion  into a  Eurodollar
Borrowing. Each such Notice of Conversion/Continuation  shall be irrevocable and
shall specify (i) the Borrowing to which such Notice of  Continuation/Conversion
applies and if  different  options are being  elected  with respect to different
portions  thereof,  the  portions  thereof  that  are to be  allocated  to  each
resulting  Borrowing (in which case the information to be specified  pursuant to
clauses (iii) and (iv) shall be specified for each  resulting  Borrowing),  (ii)
the   effective   date  of  the  election   made  pursuant  to  such  Notice  of
Continuation/Conversion,  which  shall be a  Business  Day,  (iii)  whether  the
resulting  Borrowing is to be a Base Rate  Borrowing or a Eurodollar  Borrowing,
and  (iv)  if the  resulting  Borrowing  is to be a  Eurodollar  Borrowing,  the
Interest Period applicable  thereto after giving effect to such election,  which
shall be a period  contemplated  by the definition of "Interest  Period." If any
such Notice of Continuation/Conversion  requests a Eurodollar Borrowing but does
not specify an Interest Period, the Borrower shall be deemed to have selected an
Interest Period of one month.  The principal  amount of any resulting  Borrowing
shall satisfy the minimum  borrowing  amount for Eurodollar  Borrowings and Base
Rate Borrowings set forth in Section 2.3.
                             -----------

     (c)  If,  on the  expiration  of any  Interest  Period  in  respect  of any
Eurodollar  Borrowing,  the  Borrower  shall have  failed to deliver a Notice of
Conversion/  Continuation,  then,  unless such  Borrowing  is repaid as provided
herein,  the Borrower  shall be deemed to have elected to convert such Borrowing
to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a
Eurodollar  Borrowing if an Event of Default exists,  unless the  Administrative
Agent and each of the Lenders  shall have  otherwise  consented in writing.  The
Borrower  will pay any amounts due under  Section 2.19 if  Eurodollar  Loans are
                                          ------------
converted  on a day  that is not the  last day of an  Interest  Period  for such
Loans.

     (d)  Upon   receipt   of  any   Notice  of   Conversion/Continuation,   the
Administrative  Agent shall promptly  notify each Lender of the details  thereof
and of such Lender's portion of each resulting Borrowing.

     Section 2.8. Optional Reduction and Termination of Commitments.
                  -------------------------------------------------

     (a) Unless previously terminated, all Revolving Commitments shall terminate
on the Revolving Commitment Termination Date, and the Swingline Commitment shall
terminate on the Swingline Commitment Termination Date.

                                       28

<PAGE>

     (b) Upon at least  three  (3)  Business  Days'  prior  written  notice  (or
telephonic  notice promptly  confirmed in writing) to the  Administrative  Agent
(which  notice shall be  irrevocable),  the  Borrower  may reduce the  Aggregate
Revolving  Commitments in part or terminate the Aggregate Revolving  Commitments
in  whole;  provided,  that (i) any  partial  reduction  shall  apply to  reduce
            --------
proportionately  and permanently the Revolving  Commitment of each Lender,  (ii)
any partial  reduction  pursuant to this Section 2.8 shall be in an amount of at
                                         -----------
least  $10,000,000  and any  larger  multiple  of  $500,000,  and  (iii) no such
reduction  shall  be  permitted  which  would  reduce  the  Aggregate  Revolving
Commitments to an amount less than the outstanding Revolving Credit Exposures of
all Lenders.

     Section 2.9. Repayment of Loans.
                  ------------------

     (a) The  outstanding  principal  amount of all Revolving Loans shall be due
and payable (together with accrued and unpaid interest thereon) on the Revolving
Commitment Termination Date.

     (b) The  outstanding  principal  amount of each Swingline Loan shall be due
and payable  (together with accrued interest  thereon) on the earlier of (i) the
last day of the  Swingline  Loan  Period of such  Swingline  Loan,  and (ii) the
Swingline Commitment Termination Date.

     Section 2.10. Evidence of Indebtedness.
                   ------------------------

     (a) Each  Lender  shall  maintain  in  accordance  with its usual  practice
appropriate  records  evidencing the indebtedness of the Borrower to such Lender
resulting  from each Loan made by such Lender from time to time,  including  the
amounts of principal and interest  payable  thereon and paid to such Lender from
time to time under this  Agreement.  The  Administrative  Agent  shall  maintain
appropriate  records  in which  shall be  recorded  (i) the  Commitment  of each
Lender,  (ii) the amount of each Loan made  hereunder by each Lender,  the Class
and Type thereof and the Interest Period applicable  thereto,  (iii) the date of
each  continuation  thereof  pursuant  to  Section  2.7,  (iv)  the date of each
                                           ------------
conversion of all or a portion  thereof to another Type pursuant to Section 2.7,
                                                                    -----------
(v) the date and  amount of any  principal  or  interest  due and  payable or to
become due and payable from the Borrower to each Lender  hereunder in respect of
such  Loans,  and  (vi)  both the date and  amount  of any sum  received  by the
Administrative  Agent  hereunder  from the  Borrower in respect of the Loans and
each  Lender's  share  thereof.  The entries made in such records shall be prima
facie  evidence of the existence and amounts of the  obligations of the Borrower
therein recorded subject to manifest error; provided,  that the failure or delay
                                            --------
of any Lender or the Administrative  Agent in maintaining or making entries into
any such  record  or any  error  therein  shall  not in any  manner  affect  the
obligation of the Borrower to repay the Loans (both principal and unpaid accrued
interest) of such Lender in accordance with the terms of this Agreement.

     (b) At the request of any Lender  (including  the Swingline  Lender) at any
time,  the  Borrower  agrees  that it will  execute and deliver to such Lender a
Revolving  Credit  Note  and,  in the case of the  Swingline  Lender  only,  the
Swingline  Note,  payable to the order of such Lender  evidencing  such Lender's
Loans.

                                       29

<PAGE>

     Section 2.11. Optional Prepayments.
                   --------------------

     (a) The Borrower  shall have the right at any time and from time to time to
prepay any Borrowing, in whole or in part, without premium or penalty, by giving
irrevocable  written notice (or telephonic notice promptly confirmed in writing)
to the  Administrative  Agent no later than (i) in the case of prepayment of any
Eurodollar Borrowing, 12:00 noon (Atlanta, Georgia time) not less than three (3)
Business Days prior to any such  prepayment,  (ii) in the case of any prepayment
of any Base Rate  Borrowing or any  Swingline  Borrowing,  12:00 noon  (Atlanta,
Georgia  time)  on the  date of such  prepayment.  Each  such  notice  shall  be
irrevocable  and shall  specify the  proposed  date of such  prepayment  and the
principal  amount of each  Borrowing  or  portion  thereof to be  prepaid.  Upon
receipt of any such notice, the Administrative  Agent shall promptly notify each
affected  Lender of the contents  thereof and of such Lender's share of any such
prepayment.  If such notice is given,  the  aggregate  amount  specified in such
notice  shall be due and  payable no later than one (1)  Business  Day after the
date designated in such notice,  together with accrued  interest to such date on
the amount so prepaid in accordance with Section  2.13(c);  provided,  that if a
                                         ---------------    --------
Eurodollar  Borrowing or Swingline Borrowing is prepaid on a date other than the
last day of an Interest Period or Swingline Loan Period applicable thereto,  the
Borrower  shall also pay all amounts  required  pursuant to Section  2.19.  Each
                                                            -------------
partial  prepayment of any Loan shall be in an amount that would be permitted in
the case of an advance of a  Revolving  Borrowing  of the same Type  pursuant to
Section 2.3 or in the case of a Swingline  Loan  pursuant to Section 2.5, as the
-----------                                                  -----------
case may be.  Each  prepayment  of a Borrowing  shall be applied  ratably to the
Loans comprising such Borrowing.

     Section 2.12. Mandatory Prepayments and Commitment Reductions.
                   -----------------------------------------------

     (a) If at any time the aggregate  Revolving Credit Exposures of all Lenders
exceed the  Aggregate  Revolving  Commitment  Amount at such time,  the Borrower
shall immediately  prepay Loans (or, if no Loans are then  outstanding,  deposit
cash collateral in an account with the Administrative  Agent pursuant to Section
                                                                         -------
2.23(g)) in an aggregate amount equal to such excess.
------

     (b) Subject to Section 2.12(f),  in the event and on each occasion that any
         -------------------------
Net Proceeds are received by or on behalf of the Borrower or any  Subsidiary  in
respect of any  Prepayment  Event of any type  described in clause (a) or clause
(b) of the definition of the term "Prepayment Event", the Borrower shall, within
five  Business  Days after such Net  Proceeds are  received,  prepay Loans in an
aggregate amount equal to the Apportioned Amount of such Net Proceeds; provided,
                                                                       --------
however,  that (i) in the case of a "Prepayment  Event" of the type described in
-------
clause (a) of the  definition  of the term  "Prepayment  Event" with  respect to
Mortgaged  Retail  Properties,  if the Borrower shall deliver,  within such five
Business Days, to the Administrative  Agent a certificate of the Borrower to the
effect that the Borrower and its  Subsidiaries  intend to apply the Net Proceeds
from such event (or a portion thereof as specified in such  certificate)  within
180 days after receipt of such Net Proceeds,  to purchase a new Mortgaged Retail
Property of equal or greater value to replace such Mortgaged  Retail Property in
compliance  with the  requirements  of Section  5.11(c) and  certifying  that no
                                       ---------------
Default or Event of Default has occurred and is then  continuing  or (ii) in the
case  of a  "Prepayment  Event"  of the  type  described  in  clause  (b) of the
definition of the term "Prepayment Event," if the Borrower shall deliver, within
such five  Business  Days,  to the  Administrative  Agent a  certificate  of the
Borrower to the effect that

                                       30
<PAGE>

the Borrower  and its  Subsidiaries  intend to apply the Net Proceeds  from such
event (or a portion thereof as specified in such  certificate),  within 180 days
after receipt of such Net Proceeds, to repair or replace all or a portion of the
Mortgaged  Property  affected thereby and certifying that no Default or Event of
Default has occurred  and is then  continuing,  then in each case no  Prepayment
shall be  required  pursuant  to this  Section  2.12(b)  in  respect  of the Net
                                       ---------------
Proceeds  from  such  Prepayment  Event  (or the  portion  of such Net  Proceeds
specified in such certificate, if applicable); provided, however, that if by the
                                               --------  -------
end of any such 180-day period described in the preceding  clauses (i) and (ii),
(x) any such Net Proceeds  therefrom have not been so applied,  prepayment shall
be required at such time in an amount equal to such Net  Proceeds  that have not
been so applied, and (y) in the case of any proposed purchase of a new Mortgaged
Retail  Property,  the Borrower shall have failed to satisfy the requirements of
Section 5.11(c) in respect of such new Mortgaged Retail Property within such 180
--------------
day period,  prepayment shall be required at such time in an amount equal to the
Apportioned Amount of the Net Proceeds initially received by the Borrower or any
Subsidiary.

     (c) Subject to Section 2.12(f),  in the event and on each occasion that any
         -------------------------
Net Proceeds are received by or on behalf of the Borrower or any  Subsidiary  in
respect  of any  Prepayment  Event of the type  described  in clause  (c) of the
definition  of the term  "Prepayment  Event",  the  Borrower  shall,  within two
Business Days after such Net Proceeds are received, prepay Loans in an aggregate
amount  equal  to fifty  percent  (50%) of the  Apportioned  Amount  of such Net
Proceeds;  provided,  however,  the  Borrower  shall  not be  required  to  make
           --------   -------
aggregate  prepayments  pursuant to this Section 2.12(c) which,  when aggregated
                                         --------------
with the maximum amount of all  prepayments  required to be made by the Borrower
pursuant  to  Section   2.10(c)  of  the  364-Day   Credit   Agreement,   exceed
              ----------------
$100,000,000.

     (d) The  Borrower  agrees to pay all  accrued  and unpaid  interest  on all
amounts prepaid pursuant to the requirements of this Section 2.12, together with
                                                     ------------
any amounts due in respect of such  prepayment  pursuant to Section  2.19.  Each
                                                            -------------
prepayment to be applied under this Agreement  shall be applied ratably first to
the Base Rate Loans to the full extent  thereof,  and  thereafter  to Eurodollar
Loans to the full extent thereof. All payments pursuant to this Section 2.12 and
                                                                ------------
Section  2.10 of the  364-Day  Credit  Agreement  shall be applied on a pro rata
basis between such Related Revolving Credit Facilities.

     (e) The Borrower shall give written notice (or telephonic  notice  promptly
confirmed  in writing) of any  prepayment  required by this  Section 2.12 to the
                                                             ------------
Administrative  Agent  no  later  than  (i) in the  case  of  prepayment  of any
Eurodollar  Borrowing,  12:00 noon  (Atlanta,  Georgia time) not less than three
Business  Days  prior  to the  date of any  prepayment,  and (ii) in the case of
prepayment of any Base Rate  Borrowing,  12:00 noon (Atlanta,  Georgia time) not
less  than one  Business  Day  prior to the date of such  prepayment.  Each such
notice  shall  be  irrevocable  and  shall  specify  the  proposed  date of such
prepayment and the principal  amount of each Borrowing or portion  thereof to be
prepaid.  Upon  receipt  of any such  notice,  the  Administrative  Agent  shall
promptly  notify each Lender of the contents  thereof and of such Lender's share
of any such prepayment. If such notice is given, the aggregate amounts specified
in such notice shall be due and payable on the date  designated  in such notice,
together  with  accrued  interest  to such  date on the  amount  so  prepaid  in
accordance with Section 2.13(c);  provided,  that if any Eurodollar Borrowing is
                --------------
prepaid  on a date  other  than the last day of an

                                       31

<PAGE>

     Interest Period applicable thereto, the Borrower shall also pay all amounts
required pursuant to Section 2.19.
                     ------------

     (f) Immediately upon the occurrence of any Prepayment  Event, the Aggregate
Revolving  Commitments of the Lenders shall  automatically be reduced,  on a pro
rata basis, in an amount equal to the maximum aggregate  prepayments required to
be made pursuant to this Section 2.12 in respect of such  Prepayment  Event,  or
that would be required to be made in respect of such  Prepayment  Event pursuant
to this Section 2.12 if there were Loans  outstanding  at such time in excess of
        ------------
such maximum required amount; provided that no prepayment below the then reduced
                              --------
amount of the Aggregate  Revolving  Commitments  shall be required to the extent
that,  immediately  after  giving  effect  to the  reduction  of  the  Aggregate
Revolving  Commitments  pursuant to this Section 2.12(f), no Default or Event of
                                         --------------
Default shall have occurred or then be continuing  and all other  conditions for
Borrowing  as set forth in Section 3.2 shall be  satisfied  so as to entitle the
                           -----------
Borrower  to  borrow  at such  time at least $1 under  the  Aggregate  Revolving
Commitments in accordance with the terms hereof.

     Section 2.13. Interest on Loans.
                   -----------------

     (a) The Borrower  shall pay interest (i) on each Base Rate Loan at the Base
Rate in  effect  from  time to  time,  and (ii) on each  Eurodollar  Loan at the
Adjusted LIBO Rate for the applicable  Interest  Period in effect for such Loan,
plus,  in each  case,  the  Applicable  Margin in effect  from time to time with
respect  to such Base  Rate Loan or  Eurodollar  Loan,  as the case may be.  The
Borrower shall pay interest on each Swingline Loan, other than a Base Rate Loan,
at the Swingline Quoted Rate applicable to such Swingline Loan as in effect from
time to time.

     (b)  While  an Event  of  Default  exists  or  after  acceleration,  unless
otherwise  agreed by the  Required  Lenders,  the  Borrower  shall pay  interest
("Default  Interest") with respect to all Eurodollar Loans at the rate otherwise
applicable  hereunder for such Eurodollar  Loans for the  then-current  Interest
Period,  plus an  additional  2% per annum  until the last day of such  Interest
Period,  and  thereafter,  and with respect to all Base Rate Loans and all other
Obligations  hereunder  (other than  Loans),  at the rate  otherwise  applicable
hereunder for Base Rate Loans, plus an additional 2% per annum.

     (c)  Interest on the  principal  amount of all Loans shall  accrue from and
including  the  date  such  Loans  are  made to but  excluding  the  date of any
repayment thereof.  Interest on all outstanding Base Rate Loans shall be payable
quarterly  in  arrears  on the  last  day of each  March,  June,  September  and
December, on the Revolving Commitment  Termination Date (in respect of Revolving
Loans),  and on  the  Swingline  Commitment  Termination  Date  (in  respect  of
Swingline Loans).  Interest on all outstanding Eurodollar Loans shall be payable
on the last day of each Interest Period applicable thereto,  and, in the case of
any  Eurodollar  Loans having an Interest  Period in excess of three months,  on
each day  which  occurs  every  three  months,  after the  initial  date of such
Interest Period, and on the Revolving  Commitment  Termination Date. Interest on
all outstanding Swingline Loans, other than Base Rate Loans, shall be payable on
the  last  day of each  Swingline  Loan  Period  applicable  thereto  and on the
Swingline  Commitment  Termination Date. Interest on any Loan which is converted
into a Loan of another  Type or which is repaid or  prepaid  shall be payable on
the date of such  conversion or on the date of any

                                       32

<PAGE>

such  repayment or  prepayment  (on the amount repaid or prepaid)  thereof.  All
Default Interest shall be payable on demand.

     (d) The Administrative  Agent shall determine each interest rate applicable
to the Loans hereunder and shall promptly notify the Borrower and the Lenders of
such rate in writing (or by telephone,  promptly confirmed in writing). Any such
determination shall be conclusive and binding for all purposes,  absent manifest
error.

     Section 2.14. Fees.
                   ----

     (a) The Borrower shall pay to the Administrative  Agent for its own account
fees in the amounts and at the times previously  agreed upon by the Borrower and
the Administrative Agent.

     (b) The Borrower agrees to pay to the Administrative  Agent for the account
of each Lender a facility  fee (the  "Facility  Fee") which shall  accrue at the
Applicable Percentage  (determined daily in accordance with the Pricing Grid) on
the daily amount of the total Revolving  Commitment  (whether used or unused) of
such Lender  during the  Availability  Period;  provided,  that if any Revolving
                                                --------
Credit Exposure remains outstanding after the Revolving  Commitment  Termination
Date, then the Facility Fee shall continue to accrue on the daily amount of such
Revolving  Credit Exposure from and after the Revolving  Commitment  Termination
Date to the date that all Revolving Credit Exposure has been paid in full.

     (c) The Borrower  agrees to pay (i) to the  Administrative  Agent,  for the
account of each Lender, a letter of credit fee with respect to its participation
in each  Letter of  Credit,  which  shall  accrue at the  Applicable  Margin for
Eurodollar  Loans then in effect on the average daily amount of such Lender's LC
Exposure  (excluding  any  portion  thereof   attributable  to  unreimbursed  LC
Disbursements)  attributable to such Letter of Credit during the period from and
including  the date of issuance of such  Letter of Credit to but  excluding  the
date on which  such  Letter of  Credit  expires  or is drawn in full  (including
without limitation any LC Exposure that remains  outstanding after the Revolving
Commitment  Termination Date) and (ii) to the Issuing Bank for its own account a
fronting fee,  which shall accrue at the rate of 0.125% per annum on the average
daily amount of the LC Exposure  (excluding any portion thereof  attributable to
unreimbursed  LC  Disbursements)  in respect of each Letter of Credit issued and
outstanding  during the Availability  Period (or until the date that such Letter
of Credit is irrevocably cancelled,  whichever is later), as well as the Issuing
Bank's standard fees with respect to issuance,  amendment,  renewal or extension
of any Letter of Credit or processing of drawings thereunder.

     (d) Accrued  fees shall be payable  quarterly in arrears on the last day of
each March, June, September and December, commencing on June 30, 2002 and on the
Revolving  Commitment  Termination Date (and if later, the date the Loans and LC
Exposure shall be repaid in their  entirety);  provided,  that any Facility Fees
                                               --------
accruing  after the Revolving  Commitment  Termination  Date shall be payable on
demand.

                                       33

<PAGE>

     Section  2.15.  Computation  of  Interest  and Fees.  All  computations  of
                     -----------------------------------
interest and fees hereunder shall be made on the basis of a year of 360 days for
the actual number of days  (including  the first day but excluding the last day)
occurring  in the period for which such  interest  or fees are  payable  (to the
extent computed on the basis of days elapsed), except that, with respect to Base
Rate Loans, interest based on the prime lending rate hereunder shall be computed
on the basis of a year of 365 days (or 366 days in a leap year) and paid for the
actual  number of days elapsed  (including  the first day but excluding the last
day). Each  determination by the  Administrative  Agent of an interest amount or
fee hereunder shall be made in good faith and, except for manifest error,  shall
be final, conclusive and binding for all purposes.

     Section  2.16.  Inability  to  Determine  Interest  Rates.  If prior to the
                     -----------------------------------------
commencement of any Interest Period for any Eurodollar Borrowing,

     (a) the  Administrative  Agent shall have determined  (which  determination
shall  be made in good  faith  and,  absent  manifest  error,  shall  be  final,
conclusive  and  binding  upon all  parties)  that,  by reason of  circumstances
affecting  the  relevant  interbank  market,  adequate  means do not  exist  for
ascertaining LIBOR for such Interest Period, or

     (b) the  Administrative  Agent shall have received notice from the Required
Lenders that the Adjusted LIBO Rate does not  adequately  and fairly reflect the
cost to such  Lenders  (or  Lender,  as the case may be) of  making,  funding or
maintaining  their  (or  its,  as the  case may be)  Eurodollar  Loans  for such
Interest  Period,

the  Administrative  Agent  shall give  written  notice (or  telephonic  notice,
promptly confirmed in writing) and a summary of the basis for such determination
to the Borrower and to the Lenders as soon as practicable thereafter.  Until the
Administrative  Agent  shall  notify  the  Borrower  and the  Lenders  that  the
circumstances giving rise to such notice no longer exist, (i) the obligations of
the Lenders to make Eurodollar Loans or to continue or convert outstanding Loans
as or into  Eurodollar  Loans  shall be  suspended,  and (ii) all such  affected
Eurodollar  Loans shall be converted into Base Rate Loans on the last day of the
then current Interest Period applicable thereto unless the Borrower prepays such
Loans in  accordance  with this  Agreement.  Unless the  Borrower  notifies  the
Administrative Agent at least one Business Day before the date of any Eurodollar
Borrowing  for which a Notice of  Borrowing  has  previously  been given that it
elects not to borrow on such date,  then such Borrowing  shall be made as a Base
Rate Borrowing.

     Section  2.17.  Illegality.  If any Change in Law shall make it unlawful or
                     ----------
impossible for any Lender to make, maintain or fund any Eurodollar Loan and such
Lender shall so notify the Administrative  Agent, the Administrative Agent shall
promptly give notice  thereof to the Borrower and the other  Lenders,  whereupon
until such Lender  notifies the  Administrative  Agent and the Borrower that the
circumstances  giving rise to such suspension no longer exist, the obligation of
such Lender to make  Eurodollar  Loans,  or to  continue or convert  outstanding
Loans as or into Eurodollar Loans, shall be suspended. In the case of the making
of a Eurodollar Borrowing,  such Lender's Loan shall be made as a Base Rate Loan
as part of the same  Borrowing for the same Interest  Period and if the affected
Eurodollar Loan is then outstanding, such Loan shall be converted to a Base Rate
Loan on the last day of the then  current  Interest  Period  applicable  to such
Eurodollar  Loan if such Lender may lawfully  continue to maintain  such Loan to
such date or within such earlier period as required by law.  Notwithstanding the

                                       34
<PAGE>

foregoing,  the  affected  Lender  shall,  prior to  giving  such  notice to the
Administrative  Agent,  designate a different  Applicable Lending Office if such
designation  would avoid the need for giving such notice and if such designation
would not otherwise be disadvantageous to such Lender in the good faith exercise
of its discretion.

     Section 2.18. Increased Costs.
                   ---------------

          (a) If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve,  special deposit or
     similar  requirement that is not otherwise included in the determination of
     the Adjusted LIBO Rate hereunder  against  assets of,  deposits with or for
     the account of, or credit extended by, any Lender or the Issuing Bank; or

          (ii)  impose on any Lender or on the  Issuing  Bank or the  eurodollar
     interbank  market  any other  condition  affecting  this  Agreement  or any
     Eurodollar  Loans  made by such  Lender  or any  Letter  of  Credit  or any
     participation therein;

and the  result  of the  foregoing  is to  increase  the cost to such  Lender of
making,  converting  into,  continuing or  maintaining  a Eurodollar  Loan or to
increase  the cost to such Lender or the  Issuing  Bank of  participating  in or
issuing any Letter of Credit or to reduce the amount  received or  receivable by
such Lender or the Issuing Bank hereunder (whether of principal, interest or any
other  amount),  then the Borrower  shall promptly pay, upon written notice from
and demand by such Lender on the Borrower (with a copy of such notice and demand
to the  Administrative  Agent), to the  Administrative  Agent for the account of
such Lender or the Issuing  Bank,  within five  Business  Days after the date of
such notice and demand,  additional  amount or amounts  sufficient to compensate
such Lender or the Issuing Bank, as the case may be, for such  additional  costs
incurred or reduction suffered.

     (b) If any Lender or the  Issuing  Bank shall  have  determined  that on or
after  the  date  of  this  Agreement  any  Change  in  Law  regarding   capital
requirements has or would have the effect of reducing the rate of return on such
Lender's or the Issuing  Bank's  capital (or on the capital of such  Lender's or
the  Issuing  Bank's  holding  company)  as a  consequence  of  its  obligations
hereunder  or under or in respect of any Letter of Credit to a level  below that
which such Lender or the  Issuing  Bank or such  Lender's or the Issuing  Bank's
holding  company  could have  achieved  but for such Change in Law (taking  into
consideration  such Lender's or the Issuing  Bank's  policies or the policies of
such  Lender's or the Issuing  Bank's  holding  company  with respect to capital
adequacy) then,  from time to time,  within five (5) Business Days after receipt
by the  Borrower of written  demand by such Lender  (with a copy  thereof to the
Administrative  Agent),  the Borrower  shall pay to such Lender such  additional
amounts as will  compensate  such Lender or the Issuing Bank or such Lender's or
the Issuing Bank's holding company for any such reduction suffered.

     (c) A certificate  of a Lender or the Issuing Bank setting forth the amount
or amounts  necessary  to  compensate  such Lender or the  Issuing  Bank or such
Lender's or the Issuing Bank's holding company, as the case may be, specified in
paragraph (a) or (b) of this Section,  prepared in good faith and accompanied by
a statement  describing in reasonable  detail
                                       35

<PAGE>

the basis for and  calculation  of
such  increased  cost,  shall be delivered  to the Borrower  (with a copy to the
Administrative Agent) at the time of such Lender's demand therefor and shall be
conclusive, absent manifest error.

     (d) Subject to Section 2.21(f),  failure or delay on the part of any Lender
         -------------------------
or the Issuing Bank to demand  compensation  pursuant to this Section  shall not
constitute a waiver of such Lender's or the Issuing  Bank's right to demand such
compensation.

     Section  2.19.  Funding  Indemnity.  In the event of (i) the payment of any
                     ------------------
principal of a Eurodollar  Loan, or a Swingline Loan that is bearing interest at
a Swingline  Quoted Rate,  other than on the last day of the Interest  Period or
Swingline Loan Period applicable  thereto  (including as a result of an Event of
Default), (ii) the conversion or continuation of a Eurodollar Loan other than on
the last day of the Interest Period applicable  thereto, or (iii) the failure by
the Borrower to borrow,  prepay,  convert or continue any Eurodollar  Loan, or a
Swingline Loan that is bearing  interest at a Swingline Quoted Rate, on the date
specified  in any  applicable  notice  (regardless  of  whether  such  notice is
withdrawn or revoked)  then, in any such event,  the Borrower  shall  compensate
each  Lender,  within  five (5)  Business  Days after  written  demand from such
Lender,  for any  loss,  cost  or  expense  attributable  to  such  event.  Such
compensation  shall not include the Applicable  Margin, but without limiting the
foregoing,  shall  include an amount  equal to the  excess,  if any,  of (x) the
amount of interest that would have otherwise  accrued on the principal amount of
such  Eurodollar  Loan or  Swingline  Loan if such event had not occurred at the
Adjusted  LIBO Rate  applicable  to such  Eurodollar  Loan,  or at the Swingline
Quoted  Rate  applicable  to such  Swingline  Loan,  as the case may be, for the
period from the date of such event to the last day of the then current  Interest
Period or Swingline Loan Period therefor (or in the case of a failure to borrow,
convert or continue,  for the period that would have been the Interest Period or
Swingline Loan Period for such Loan) (excluding any Applicable  Margin) less (y)
the amount of interest  (as  reasonably  determined  by such  Lender) that would
accrue on the principal  amount of such Loan for the same period if the Adjusted
LIBO Rate or  Swingline  Quoted  Rate,  as the case may be, were set on the date
such Loan was prepaid or converted  or the date on which the Borrower  failed to
borrow,  convert or continue  such Loan,  provided  that such Lender  shall have
                                          --------
delivered to the Borrower a certificate  setting forth in reasonable  detail its
calculation  as to  any  additional  amount  payable  under  this  Section  2.19
                                                                   -------------
submitted  to the  Borrower  by any  Lender  (with a copy to the  Administrative
Agent) shall be conclusive, absent manifest error.

     Section 2.20. Taxes.
                   -----

     (a) Any and all payments by or on account of any obligation of the Borrower
hereunder  shall  be made  free  and  clear  of and  without  deduction  for any
Indemnified  Taxes or  Other  Taxes;  provided,  that if the  Borrower  shall be
                                      --------
required to deduct any Indemnified Taxes or 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  or  attributable  to
additional sums payable under this Section) the Administrative Agent, any Lender
or the Issuing  Bank (as the case may be) shall  receive 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 pay the full amount
deducted to the relevant  Governmental  Authority in accordance  with applicable
law.

     (b) The  Borrower  shall pay any Other Taxes to the  relevant  Governmental
Authority in accordance with applicable law.

     (c) The Borrower shall indemnify the Administrative  Agent, each Lender and
the Issuing Bank,  within ten (10) Business Days after written demand  therefor,
for the full amount of any Indemnified  Taxes or Other Taxes imposed or asserted
by any Governmental  Authority paid where due by the Administrative  Agent, such
Lender  or the  Issuing  Bank,  as the case may be,  on or with  respect  to any
payment by or on account of any obligation of the Borrower hereunder  (including
Indemnified  Taxes or Other  Taxes  imposed or asserted  on or  attributable  to
amounts  payable under this Section) 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 or the Issuing Bank,
or by the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing Bank, 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 Non-U.S.  Lender that is entitled to an exemption from or reduction
of withholding  tax under the Code or any treaty to which the United States is a
party,  with  respect to  payments  under this  Agreement  shall  deliver to the
Borrower  (with a copy  to the  Administrative  Agent),  at the  time  or  times
prescribed by applicable law, such properly completed and executed documentation
prescribed  by applicable  law or  reasonably  requested by the Borrower as will
permit  such  payments  to be made  without  withholding  or at a reduced  rate.
Without  limiting the generality of the foregoing,  each Non-U.S.  Lender agrees
that it will  deliver to the  Administrative  Agent and the  Borrower (or in the
case of a Participant,  to the Lender from which the related participation shall
have been  purchased),  as  appropriate,  two (2) duly  completed  copies of (i)
Internal Revenue Service Form W-8 ECI, or any successor form thereto, certifying
that the payments received from the Borrower hereunder are effectively connected
with such Non-U.S. Lender's conduct of a trade or business in the United States,
(ii)  Internal  Revenue  Service Form W-8 BEN, or any  successor  form  thereto,
certifying that such Non-U.S. Lender is entitled to benefits under an income tax
treaty  to  which  the  United  States  is a party  which  reduces  the  rate of
withholding tax on payments of interest, (iii) Internal Revenue Service Form W-8
BEN, or any successor form prescribed by the Internal Revenue Service,  together
with a  certificate  (A)  establishing  that the payment to the Non-U.S.  Lender
qualifies as "portfolio  interest"  exempt from U.S.  withholding tax under Code
section 871(h) or 881(c), and (B) stating that (1) the Non-U.S.  Lender is not a
bank  for  purposes  of Code  section  881(c)(3)(A),  or the  obligation  of the
Borrower  hereunder  is not,  with  respect  to  such  Non-U.S.  Lender,

                                       37

<PAGE>

a loan agreement  entered into in the ordinary  course of its trade or business,
within  the  meaning  of that  section,  (2) the  Non-U.S.  Lender  is not a 10%
shareholder  of the  Borrower  within the meaning of Code  section  871(h)(3) or
881(c)(3)(B),   and  (3)  the  Non-U.S.  Lender  is  not  a  controlled  foreign
corporation  that is related to the Borrower  within the meaning of Code section
881(c)(3)(C),  or (iv)  such  other  Internal  Revenue  Service  forms as may be
applicable to the Non-U.S. Lender, including Forms W-8 IMY or W-8 EXP. Each such
Non-U.S.  Lender shall deliver to the Borrower and the Administrative Agent such
forms on or before the date that it becomes a party to this Agreement (or in the
case of a  Participant,  on or before the date such  Participant  purchases  the
related  participation).  In addition,  each such Non-U.S.  Lender shall deliver
such forms promptly upon the  obsolescence  or invalidity of any form previously
delivered by such  Non-U.S.  Lender.  Each such Non-U.S.  Lender shall  promptly
notify the Borrower and the Administrative  Agent at any time that it determines
that  it  is no  longer  in a  position  to  provide  any  previously  delivered
certificate to the Borrower (or any other form of  certification  adopted by the
Internal Revenue Service for such purpose).

     (f) If the Administrative  Agent, any Lender or the Issuing Bank receives a
refund in respect of Taxes for which the Borrower has made  additional  payments
pursuant to this Section 2.20, the Administrative  Agent,  Lender or the Issuing
                 ------------
Bank,  as the case may be,  shall  promptly pay such refund  (together  with any
interest with respect thereto received from the relevant Governmental Authority)
to the Borrower (but only to the extent of additional  payments actually made by
the Borrower pursuant to this Section 2.20 with respect to the Indemnified Taxes
or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, Issuing Bank or applicable Lender, as the case may be,
with respect thereto, provided, that the Borrower agrees promptly to return such
refund (together with any interest and penalties  (other than penalties  imposed
on the Administrative Agent, Issuing Bank, or Applicable Lender, as the case may
be, in respect of a filing determined by the relevant Governmental  Authority to
have been made by such  Person in bad faith and  without the consent or approval
of  the  Borrower)  with  respect  thereto  due  to  the  relevant  Governmental
Authority) (free of all Indemnified Taxes or Other Taxes) to the  Administrative
Agent,  the  applicable  Lender or the  Issuing  Bank,  as the case may be, upon
receipt of a notice that such  refund is  required to be repaid to the  relevant
Governmental  Authority.  Notwithstanding  anything to the contrary contained in
this Section  2.20(f),  none of the  Administrative  Agent,  Issuing Bank or the
Lenders  shall have any  obligation  to  disclose  to the  Borrower  any of such
Person's books,  records,  tax filings or any other information  relating to its
Taxes that it deems confidential.

     Section 2.21. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.
                   -----------------------------------------------------------

     (a)  The  Borrower  shall  make  each  payment  required  to be  made by it
hereunder  (whether  of  principal,   interest,  fees  or  reimbursement  of  LC
Disbursements,  or of amounts  payable  under  Section  2.18,  2.19 or 2.20,  or
                                               -------------   ----    ----
otherwise) prior to 1:00 p.m. (Atlanta,  Georgia time), on the date when due, in
immediately available funds, free and clear of any defenses,  rights of set-off,
counterclaim,  or withholding or deduction of taxes.  Any amounts received after
such time on any date may, in the  discretion of the  Administrative  Agent,  be
deemed to have been received on the next succeeding Business Day for purposes of
calculating   interest  thereon.   All  such  payments  shall  be  made  to  the
Administrative  Agent at the  Payment  Office,  except (i)  payments  to be made
directly to the Issuing Bank or Swingline  Lender as expressly  provided herein,
and (ii) that payments  pursuant to Sections 2.18,  2.19 and 2.20 and 10.3 shall
                                    -------------   ----     ----
be made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments  received by it for the account of any other Person
to the appropriate  recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next  succeeding

                                       38
<PAGE>

Business  Day,  and,  in the case of any  payment  accruing  interest,  interest
thereon  shall be made  payable for the period of such  extension.  All payments
hereunder shall be made in Dollars.

     (b) If at any time insufficient  funds are received by and available to the
Administrative  Agent to pay fully all  amounts of  principal,  unreimbursed  LC
Disbursements, interest and fees then due hereunder, such funds shall be applied
(i) first,  towards  payment of interest  and fees then due  hereunder,  ratably
among the parties  entitled  thereto in accordance  with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal
and unreimbursed LC Disbursements then due hereunder,  ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements then due to such parties.

     (c) If any Lender shall, by exercising any right of set-off or counterclaim
or otherwise,  obtain  payment in respect of any principal of or interest on any
of its Revolving Loans or  participations in LC Disbursements or Swingline Loans
that would result in such Lender  receiving  payment of a greater  proportion of
the  aggregate  amount  of  its  Revolving  Loans  and   participations   in  LC
Disbursements  and  Swingline  Loans  and  accrued  interest  thereon  than  the
proportion  received by any other Lender, then the Lender receiving such greater
proportion  shall  purchase  (for  cash at  face  value)  participations  in the
Revolving Loans and  participations  in LC Disbursements  and Swingline Loans of
other  Lenders to the extent  necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance  with the aggregate  amount
of principal of and accrued  interest on their  respective  Revolving  Loans and
participations  in LC Disbursements and Swingline Loans;  provided,  that (i) if
any such  participations  are  purchased  and all or any  portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery,  without  interest,  and
(ii) the  provisions  of this  paragraph  shall not be construed to apply to any
payment  made by the  Borrower  pursuant to and in  accordance  with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a  participation  in any of its Revolving  Loans or
participations  in LC  Disbursements  and  Swingline  Loans to any  assignee  or
participant,  other than to the Borrower or any Subsidiary or Affiliate  thereof
(as to which  the  provisions  of this  paragraph  shall  apply).  The  Borrower
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 the Borrower rights of set-off and
counterclaim with respect to such  participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

     (d) Unless the  Administrative  Agent shall have  received  notice from the
Borrower  prior to the date on which any  payment  is due to the  Administrative
Agent for the  account of the  Lenders or the Issuing  Bank  hereunder  that the
Borrower will not make such payment,  the  Administrative  Agent may assume that
the Borrower has made such payment on such date in accordance  herewith and may,
in reliance upon such assumption, distribute to the Lenders or the Issuing Bank,
as the case may be, the amount or amounts  due. In such event,  if the  Borrower
has not in fact made such payment, then each of the Lenders or the Issuing Bank,
as the case may be,  severally  agrees  to  repay  to the  Administrative  Agent
forthwith  on demand the amount so  distributed  to such Lender or Issuing  Bank
with interest  thereon,  for each day from and including the date such amount is
distributed  to it to but  excluding  the date of payment

                                       39

<PAGE>

to the Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by the Administrative  Agent in accordance with then-current  banking
industry practices on interbank compensation.

     (e) If any Lender shall fail to make any payment  required to be made by it
pursuant to Section 2.6(b),  2.21(d),  2.23, or 10.3(d), then the Administrative
            -------------    ------    ----     ------
Agent may, in its discretion  (notwithstanding  any contrary  provision hereof),
apply  any  amounts  thereafter  received  by the  Administrative  Agent for the
account of such Lender to satisfy such Lender's  obligations under such Sections
until all such unsatisfied obligations are fully paid.

     (f) The Borrower  shall not be required to compensate or indemnify a Lender
pursuant to Sections 2.18,  2.19 or 2.20 for any increased  costs loss,  cost or
            -------------   ----    ----
any other expense incurred more than one year prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such  increased  costs
loss,  cost  or any  other  expense  and of such  Lender's  intention  to  claim
compensation therefore; provided further that, if a Change in Law giving rise to
                        -------- -------
such increased costs loss,  cost or any other expense is  retroactive,  then the
one year  period  referred  to above  shall be extended to include the period of
retroactive effect thereof.

     Section  2.22.   Mitigation  of   Obligations.   If  any  Lender   requests
                      ----------------------------
compensation  under  Section  2.18,  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  2.20,  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 good faith judgment of such Lender,
such  designation  or assignment (i) would  eliminate or reduce amounts  payable
under Section 2.18 or Section 2.20, as the case may be, in the future,  and (ii)
      ------------    ------------
would not subject such Lender to any unreimbursed  cost or expense and would not
otherwise be  disadvantageous  to such Lender. The Borrower hereby agrees to pay
all  costs  and  expenses  incurred  by  any  Lender  in  connection  with  such
designation or assignment.

     Section 2.23. Letters of Credit.
                   -----------------

     (a) During the Availability  Period, the Issuing Bank, in reliance upon the
agreements of the other Lenders pursuant to this Section 2.23,  agrees to issue,
                                                 ------------
at the  request  of the  Borrower,  Letters  of Credit  for the  account  of the
Borrower on the terms and conditions hereinafter set forth;  provided,  that (i)
                                                             --------
each  Letter of Credit  shall  expire not later than the earlier of (x) the date
one year after the date of  issuance of such Letter of Credit (or in the case of
any renewal or extension thereof, one year after such renewal or extension), and
(y) the date that is five (5) Business  Days prior to the  Revolving  Commitment
Termination  Date,  (ii) each Letter of Credit shall be in a stated amount of at
least  $1,000,000,  and (iii) the Borrower may not request any Letter of Credit,
if, after giving  effect to such  issuance (A) the aggregate LC Exposures of all
Lenders would exceed the LC Commitment,  or (B) the aggregate  Revolving  Credit
Exposures of all Lenders would exceed the Aggregate Revolving Commitment Amount.
Upon the issuance of each Letter of Credit,  each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank
without recourse a participation in such Letter of Credit equal to such Lender's
Pro Rata Share of the aggregate  amount  available to be drawn under such Letter
of Credit.  Each  issuance of a Letter of Credit  shall be deemed to

                                       40

<PAGE>

utilize the Revolving Commitment of each Lender by an amount equal to the amount
of such  participation.  Any Letter of Credit may provide for automatic  renewal
for additional  subsequent periods of 12-months (but in no event to a date which
is  later  than  five  (5)  Business  Days  prior  to the  Revolving  Commitment
Termination Date).

     (b) To  request  the  issuance  of a Letter  of Credit  (or any  amendment,
renewal or extension of an  outstanding  Letter of Credit),  the Borrower  shall
give the Issuing Bank and the  Administrative  Agent irrevocable  written notice
substantially  in the form of Exhibit 2.23  attached  hereto (an "LC Notice") at
least  three (3)  Business  Days prior to the  requested  date of such  issuance
specifying  the date (which shall be a Business Day) such Letter of Credit is to
be issued (or amended,  extended or renewed, as the case may be), the expiration
date of such  Letter of Credit,  the amount of such  Letter of Credit , the name
and address of the  beneficiary  thereof and such other  information as shall be
necessary to prepare,  amend, renew or extend such Letter of Credit. In addition
to the  satisfaction  of the  conditions  in Article  III,  the issuance of such
Letter of Credit (or any amendment  which increases the amount of such Letter of
Credit) will be subject to the further conditions that (i) such Letter of Credit
shall be in such form and contain such terms as the Issuing Bank shall  approve,
and  (ii)  the  Borrower  shall  have  executed  and  delivered  any  additional
applications,  agreements and  instruments  relating to such Letter of Credit as
the Issuing Bank shall reasonably  require;  provided,  that in the event of any
                                             --------
conflict  between  such   applications,   agreements  or  instruments  and  this
Agreement, the terms of this Agreement shall control.

     (c) At least two  Business  Days  prior to the  issuance  of any  Letter of
Credit,  the  Issuing  Bank  will  confirm  with the  Administrative  Agent  (by
telephone or in writing) that the Administrative  Agent has received such notice
and if not, the Issuing Bank will provide the  Administrative  Agent with a copy
thereof.  Unless the Issuing  Bank has received  notice from the  Administrative
Agent on or before the Business Day  immediately  preceding the date the Issuing
Bank is to issue the requested  Letter of Credit  directing the Issuing Bank not
to issue the  Letter of  Credit  because  such  issuance  is not then  permitted
hereunder because of the limitations set forth in Section 2.23(a) or that one or
                                                  --------------
more conditions  specified in Article III are not then satisfied,  then, subject
to the terms and  conditions  hereof,  the Issuing Bank shall,  on the requested
date,  issue such Letter of Credit in accordance  with the Issuing  Bank's usual
and customary business practices.

     (d) The Issuing Bank shall examine all documents  purporting to represent a
demand for  payment  under a Letter of Credit  promptly  following  its  receipt
thereof. The Issuing Bank shall notify the Borrower and the Administrative Agent
of such demand for payment and whether the Issuing  Bank has made or will make a
LC  Disbursement  thereunder;  provided,  that any  failure  to give or delay in
giving such notice shall not relieve the Borrower of its obligation to reimburse
the  Issuing  Bank and the Lenders  with  respect to such LC  Disbursement.  The
Borrower shall be  irrevocably  and  unconditionally  obligated to reimburse the
Issuing  Bank for any LC  Disbursements  paid by the Issuing  Bank in respect of
such drawing no later than one (1) Business  Day after the date  designated  for
payment of the LC Disbursement in the notice provided to the Borrower  (together
with interest  thereon from the date of payment of such LC  Disbursements at the
rate then applicable to Base Rate Loans),  without presentment,  demand or other
formalities  of any kind.  Unless the Borrower  shall have  notified the Issuing
Bank  and the  Administrative  Agent  prior to 12:00  noon on the  Business  Day
immediately prior to the date on

                                       41
<PAGE>

which such drawing is honored that the Borrower intends to reimburse the Issuing
Bank for the amount of such  drawing in funds  other than from the  proceeds  of
Revolving  Loans,  the Borrower shall be deemed to have timely given a Notice of
Borrowing to the Administrative Agent requesting the Lenders to make a Base Rate
Borrowing on the date on which such drawing is honored in an exact amount due to
the Issuing Bank;  provided,  that for purposes  solely of such  Borrowing,  the
                   --------
conditions  precedent  set forth in Section 3.2 hereof shall not be  applicable.
                                    -----------
The  Administrative  Agent  shall  notify  the  Lenders  of  such  Borrowing  in
accordance with Section 2.3, and each Lender shall make the proceeds of its Base
                -----------
Rate Loan included in such Borrowing  available to the Administrative  Agent for
the account of the Issuing Bank in accordance  with Section 2.6. The proceeds of
such  Borrowing  shall  be  applied  directly  by the  Administrative  Agent  to
reimburse the Issuing Bank for such LC Disbursement.

     (e) If for any reason a Base Rate  Borrowing  may not be made in accordance
with the  foregoing  provisions,  then each Lender (other than the Issuing Bank)
shall be obligated to fund the participation that such Lender purchased pursuant
to  subsection  (a) in an  amount  equal  to its  Pro  Rata  Share  of  such  LC
Disbursement  on and as of the date which such Base Rate  Borrowing  should have
occurred.  Each Lender's  obligation to fund its participation shall be absolute
and  unconditional  and shall not be  affected  by any  circumstance,  including
without limitation (i) any setoff,  counterclaim,  recoupment,  defense or other
right that such Lender or any other  Person may have against the Issuing Bank or
any other Person for any reason  whatsoever,  (ii) the existence of a Default or
an Event of Default or the termination of the Aggregate  Revolving  Commitments,
(iii) any  adverse  change in the  condition  (financial  or  otherwise)  of the
Borrower or any of its  Subsidiaries,  (iv) any breach of this  Agreement by the
Borrower or any other  Lender,  (v) any  amendment,  renewal or extension of any
Letter of Credit, or (vi) any other circumstance, happening or event whatsoever,
whether  or not  similar  to  any  of the  foregoing.  On  the  date  that  such
participation is required to be funded, each Lender shall promptly transfer,  in
immediately   available   funds,   the  amount  of  its   participation  to  the
Administrative Agent for the account of the Issuing Bank. Whenever,  at any time
after the  Issuing  Bank has  received  from any such  Lender  the funds for its
participation  in a LC  Disbursement,  the Issuing  Bank (or the  Administrative
Agent on its behalf) receives any payment on account thereof, the Administrative
Agent or the Issuing  Bank,  as the case may be, will  distribute to such Lender
its Pro Rata Share of such payment;  provided,  that if such payment is required
                                     --------
to be  returned  for any  reason  to the  Borrower  or to a  trustee,  receiver,
liquidator,  custodian or similar official in any bankruptcy or other insolvency
proceeding,  such Lender will return to the Administrative  Agent or the Issuing
Bank any portion thereof previously  distributed by the Administrative  Agent or
the Issuing Bank to it.

     (f) To the extent that any Lender shall fail to pay any amount  required to
be paid pursuant to paragraph (d) of this Section 2.23 on the due date therefor,
                                          ------------
such Lender shall pay interest to the Issuing Bank  (through the  Administrative
Agent) on such amount  from such due date to the date such  payment is made at a
rate per annum equal to the Federal  Funds Rate;  provided,  that if such Lender
                                                  --------
shall fail to make such  payment to the Issuing  Bank within  three (3) Business
Days of such due date, then, retroactively to the due date, such Lender shall be
obligated  to pay  interest  on such  amount at the  interest  rate set forth in
Section 2.13(b).
--------------

     (g) If any Event of Default shall occur and be continuing,  on the Business
Day that the  Borrower  receives  notice  from the  Administrative  Agent or the
Required  Lenders

                                       42
<PAGE>

demanding  the  deposit of cash  collateral  pursuant to this  paragraph,  or as
otherwise  required  pursuant to Section 2.12,  the Borrower shall deposit in an
                                 ------------
account with the Administrative  Agent, in the name of the Administrative  Agent
and for the benefit of the Issuing Bank and the Lenders, an amount in cash equal
to the  aggregate  LC  Exposures of all Lenders as of such date plus any accrued
and unpaid fees  thereon;  provided,  that the  obligation  to deposit such cash
                           --------
collateral  shall become  effective  immediately,  and such deposit shall become
immediately  due and  payable,  without  demand or notice of any kind,  upon the
occurrence  of any Event of Default with  respect to the  Borrower  described in
subsection  (g) or (h) of  Section  8.1.  Such  deposit  shall  be  held  by the
                           ------------
Administrative  Agent as  collateral  for the  payment  and  performance  of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have  exclusive   dominion  and  control,   including  the  exclusive  right  of
withdrawal,  over such account.  Borrower agrees to execute any documents and/or
certificates to effectuate the intent of this paragraph. Other than any interest
earned on the investment of such deposits,  which  investments  shall be made at
the reasonable discretion of the Administrative Agent and at the Borrower's risk
and expense,  such deposits  shall not bear interest.  Interest and profits,  if
any,  on such  investments  shall  accumulate  in such  account.  Moneys in such
account shall applied by the Administrative  Agent to reimburse the Issuing Bank
and the  Lenders,  as the  case  may  be,  for LC  Disbursements  for  which  no
reimbursement has been made and to the extent so applied,  shall be held for the
satisfaction of the reimbursement  obligations of the Borrower for the aggregate
LC  Exposures  of all Lenders at such time or, if the  maturity of the Loans has
been  accelerated,  with the  consent  of the  Required  Lenders,  be applied to
satisfy other obligations of the Borrower under this Agreement.  If the Borrower
is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default,  such amount (to the extent not so applied as
aforesaid)  shall be returned to the Borrower with three Business Days after all
Events of Default have been cured or waived.

     (h) The Borrower's obligation to reimburse LC Disbursements hereunder shall
be absolute,  unconditional  and irrevocable and shall be performed  strictly in
accordance with the terms of this Agreement under all  circumstances  whatsoever
and irrespective of any of the following circumstances:

          (i) Any lack of validity or  enforceability of any Letter of Credit or
     this Agreement;

          (ii) The existence of any claim, set-off, defense or other right which
     the Borrower or any Subsidiary or Affiliate of the Borrower may have at any
     time against a  beneficiary  or any  transferee of any Letter of Credit (or
     any Persons or entities for whom any such  beneficiary or transferee may be
     acting),  any Lender  (including  the  Issuing  Bank) or any other  Person,
     whether in  connection  with this  Agreement or the Letter of Credit or any
     document  related hereto or thereto or any unrelated  transaction (it being
     understood  that  the  foregoing  shall  not  be  deemed  to  preclude  the
     initiation  and  prosecution  to conclusion by the Borrower,  in a separate
     legal proceeding, of any claim for damages against any Person in respect of
     liability   arising  from  such  Person's   gross   negligence  or  willful
     misconduct);

                                       43
<PAGE>

          (iii) Any draft or other document  presented  under a Letter of Credit
     proving to be forged, fraudulent or invalid in any respect or any statement
     therein being untrue or inaccurate in any respect;

          (iv)  Payment by the  Issuing  Bank  under a Letter of Credit  against
     presentation of a draft or other document to the Issuing Bank that does not
     comply with the terms of such Letter of Credit;

          (v) Any other event or circumstance whatsoever, whether or not similar
     to any of the  foregoing,  that  might,  but  for  the  provisions  of this
     Section,  constitute a legal or equitable  discharge of, or provide a right
     of setoff against, the Borrower's obligations hereunder; or

          (vi) The existence of a Default or an Event of Default.

Neither the Administrative  Agent, the Issuing Bank, the Lenders nor any Related
Party of any of the  foregoing  shall have any  liability or  responsibility  by
reason of or in connection with the issuance or transfer of any Letter of Credit
or any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to above), or any error, omission, interruption, loss
or delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit  (including  any document  required to
make a drawing  thereunder),  any error in  interpretation of technical terms or
any  consequence  arising  from causes  beyond the control of the Issuing  Bank;
provided,  that the foregoing  shall not be construed to excuse the Issuing Bank
--------
from  liability to the Borrower to the extent of any direct  damages (as opposed
to  consequential  damages,  claims in respect of which are hereby waived by the
Borrower  to the  extent not  prohibited  by  applicable  law)  suffered  by the
Borrower  that are caused by the Issuing  Bank's  failure to exercise  care when
determining whether drafts or other documents presented under a Letter of Credit
comply with the terms thereof.  The parties hereto expressly agree,  that in the
absence of gross  negligence  or willful  misconduct  on the part of the Issuing
Bank (as finally determined by a court of competent  jurisdiction),  the Issuing
Bank  shall be deemed to have  exercised  care in each  such  determination.  In
furtherance of the foregoing and without  limiting the generality  thereof,  the
parties  agree that,  with respect to documents  presented  that appear on their
face to be in substantial  compliance with the terms of a Letter of Credit,  the
Issuing Bank may, in its sole  discretion,  either  accept and make payment upon
such documents without responsibility for further  investigation,  regardless of
any notice or information to the contrary,  or refuse to accept and make payment
upon such  documents if such  documents  are not in strict  compliance  with the
terms of such Letter of Credit.

     (i) Each  Letter of Credit  shall be subject  to the  Uniform  Customs  and
Practice for  Documentary  Credits  (1993  Revision),  International  Chamber of
Commerce Publication No. 500, as the same may be amended from time to time, and,
to the extent not  inconsistent  therewith,  the governing law of this Agreement
set forth in Section 10.5.
             ------------

     (j) The parties  acknowledge  and agree that the Existing  Letter of Credit
shall,  for all  purposes of this  Agreement  and the other Loan  Documents,  be
deemed to be a Letter of Credit to the same  extent and with the same  effect as
if such Existing Letter of Credit had been issued as a Letter of Credit pursuant
to this Section 2.23 on the Closing Date.
        ------------

                                       44
<PAGE>

                                  ARTICLE III

               CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT
               ---------------------------------------------------

     Section 3.1.  Conditions To  Effectiveness.  The obligations of the Lenders
                   ----------------------------
(including the Swingline Lender) to make Loans and the obligation of the Issuing
Bank to issue any Letter of Credit  hereunder  shall not become  effective until
the date on which each of the  following  conditions  is satisfied (or waived in
accordance with Section 10.2):
                ------------

     (a) The Administrative Agent shall have received all fees and other amounts
due and payable to the  Administrative  Agent and the Lenders on or prior to the
Closing Date, including  reimbursement or payment of all out-of-pocket  expenses
(including  reasonable  fees,  charges  and  disbursements  of  counsel  to  the
Administrative  Agent)  required  to be  reimbursed  or  paid  by  the  Borrower
hereunder,  under any other  Loan  Document  and  under any  agreement  with the
Administrative  Agent or SunTrust Robinson Humphrey Capital Markets,  a division
of SunTrust Capital  Markets,  Inc., as Sole Lead Arranger.  The  Administrative
Agent shall  provide  the  Borrower  with an estimate of all such fees  incurred
through the Closing  Date and other  amounts due and payable at closing no later
than 2 Business  Days prior to the Closing  Date;  provided,  however,  that the
                                                   --------   -------
failure of any  additional  reasonable  fees or other  reasonable  amounts to be
included in such estimate  shall not relieve the Borrower of its  obligations to
pay all such amounts  after the Closing  Date upon  presentation  of  applicable
statements or invoices therefor.

     (b) The  Administrative  Agent shall have received the following (except to
the extent otherwise expressly provided in the Post-Closing Agreement):

          (i) a  counterpart  of this  Agreement  signed by or on behalf of each
     party hereto or written evidence  satisfactory to the Administrative  Agent
     (which may include telecopy transmission of a signed signature page of this
     Agreement) that such party has signed a counterpart of this Agreement;

          (ii) a duly executed Note payable to each Lender requesting such Note;

          (iii) the duly executed Guaranty Agreement and Contribution Agreement;

          (iv)  evidence  that the  Borrower's  Existing  Credit  Agreement  and
     Existing  Synthetic Leases and related financing  agreements and collateral
     instruments  are being  terminated and released,  that all interest,  fees,
     principal,  rents,  and other  amounts  owing under the Existing  Synthetic
     Leases and related  financing  agreements  through the Closing Date will be
     paid in full  from  the  initial  Loans,  and  that  title  to all real and
     personal  property  subject  to the  Existing  Synthetic  Leases  has  been
     conveyed  to  the  Mortgagors   executing  and  delivering  the  respective
     Mortgages to the Collateral  Agent, all such conveyances and releases to be
     in form satisfactory to the  Administrative  Agent,  together with evidence
     reasonably  satisfactory to the Administrative Agent that arrangements have
     been made for the recording of such conveyances and releases and payment of
     all filing and recording fees, costs, and expenses,  including all transfer
     taxes and other amounts payable in respect thereof;

                                       45
<PAGE>

          (v) the duly  executed  Collateral  Documents,  together with evidence
     satisfactory to the  Administrative  Agent that arrangements have been made
     for the recording of such Collateral Documents as applicable and payment of
     all filing and recording fees, costs, and expenses, including all mortgage,
     documentary  stamp,  intangibles  and other  taxes and  amounts  in respect
     thereof;

          (vi) with respect to each of the Mortgaged  Non-Retail  Properties,  a
     current  ALTA ACSM  as-built  survey of such  property  which  includes the
     Minimum  Standard  Detail  Requirements  adopted  by ALTA and ACSM in 1999,
     prepared by a land surveyor  registered and licensed in the State where the
     applicable  Mortgaged  Non-Retail  Property is located,  together  with the
     certificate of such land surveyor,  in form and substance  satisfactory  to
     the Administrative  Agent; and with respect to each of the Mortgaged Retail
     Properties, the existing boundary survey of such property;

          (vii) fully paid ALTA mortgagee title  insurance  policies in form and
     substance  acceptable to the  Administrative  Agent (in each case including
     such  endorsements and affirmative  coverages as the  Administrative  Agent
     shall specify) in respect of each of the Mortgaged Properties,  issued by a
     title insurance company reasonably  acceptable to the Administrative  Agent
     and insuring  the  Collateral  Agent's  lien on and  security  title to the
     Mortgaged  Property  as a valid  first  priority  lien and  security  title
     therein,  subject  only  to  such  encumbrances  and  exceptions  as may be
     approved by the Administrative  Agent;  provided that the mortgagee's title
                                             --------
     insurance  policy may be delivered after the Closing Date if on the Closing
     Date the title  insurance  company  delivers  to the  Administrative  Agent
     currently  effective duly executed "marked up" title insurance  commitments
     and irrevocably commits in writing to issue the mortgagee's title insurance
     policies  in the  form  of the  "marked  up"  title  insurance  commitments
     promptly after the Closing Date;

          (viii) copies of the zoning letters and/or  certificates  of occupancy
     issued in respect of each of the Mortgaged Properties;

          (ix) with respect to each of the Mortgaged  Properties,  copies of the
     Phase I and, if applicable,  Phase II Environmental  Site Assessment Report
     obtained at the time such  property  was acquired for lease to the Borrower
     or its Subsidiaries  pursuant to the Existing Synthetic Leases, all in form
     and substance reasonably satisfactory to the Administrative Agent;

          (x)  certificates of insurance,  all in form and detail  acceptable to
     the  Administrative  Agent,  describing  the types and amounts of insurance
     (property and  liability)  covering the  properties of the Borrower and its
     Subsidiaries,  and in each case with respect to  insurance  relating to the
     Mortgaged  Properties,  naming the Collateral Agent as mortgagee/loss payee
     or additional  insured,  as the case may be,  together with a lender's loss
     payable   endorsement   in  form   and   substance   satisfactory   to  the
     Administrative Agent;

          (xi)  the  duly  executed  agreement  of  the  Development   Authority
     consenting  to the  Mortgage  on the  leasehold  title and  interest in the
     Headquarters  Property  and  joining

                                       46

<PAGE>

     in the grant of such Mortgage for purposes of subordinating  and subjecting
     the Development Authority's title therein to the Mortgage;

          (xii) a certificate  of the  Secretary or Assistant  Secretary of each
     Loan  Party,  attaching  and  certifying  copies of its  bylaws  and of the
     resolutions  of its  board  of  directors,  or other  comparable  governing
     documents  and  authorizations,  authorizing  the  execution,  delivery and
     performance of the Loan Documents to which it is a party and certifying the
     name, title and true signature of each officer of such Loan Party executing
     the Loan Documents to which it is a party;

          (xiii)  certified  copies of the  articles of  incorporation  or other
     organizational  documents of each Loan Party, together with certificates of
     good standing or existence, as may be available from the Secretary of State
     of the  jurisdiction of  incorporation  or formation of such Loan Party and
     each other  jurisdiction  where such Loan Party is required to be qualified
     to do business as a foreign corporation;

          (xiv) the  favorable  written  opinions of (i) Paul,  Frank & Collins,
     (ii) Bass,  Berry & Sims,  (iii)  Frost Brown  Todd,  and (iv)  Debevoise &
     Plimpton,   each  as  counsel  to  the  Loan  Parties,   addressed  to  the
     Administrative  Agent,  the  Issuing  Bank,  and each of the  Lenders,  and
     covering such matters relating to the Loan Parties,  the Loan Documents and
     the transactions  contemplated  therein as the Administrative  Agent or the
     Required Lenders shall reasonably request;

          (xv) the favorable  written  opinions of local counsel for the Lenders
     engaged by the Administrative  Agent in each of the jurisdictions where the
     Mortgaged  Properties are located,  addressed to the Administrative  Agent,
     the Issuing  Bank,  and each of the  Lenders,  and  covering  such  matters
     relating to the  Collateral  Documents  and other  matters  relating to the
     Mortgaged  Properties  and  the  transactions   contemplated  in  the  Loan
     Documents  as the  Administrative  Agent  or  the  Required  Lenders  shall
     reasonably request;

          (xvi)  a  certificate,   dated  the  Closing  Date  and  signed  by  a
     Responsible Officer, confirming compliance with the conditions set forth in
     paragraphs (a), (b) and (c) of Section 3.2;
                                    -----------

          (xvii)  evidence  satisfactory  to the  Administrative  Agent  that no
     withdrawal  of the  Borrower's  Moody's  Rating or S&P Rating has  occurred
     after March 11, 2002;

          (xviii)  evidence  satisfactory to the  Administrative  Agent that the
     Borrower's actual Consolidated  EBITDAR for the Fiscal Year ending February
     1, 2002, as reflected in Borrower's audited year-end financial  statements,
     was not less than $669,000,000;

          (xix) a certified  copy of the  Indenture  and all  modifications  and
     amendments thereto;

          (xx) a duly executed Notice of Borrowing;

          (xxi) a duly executed funds disbursement agreement;

                                       47
<PAGE>

          (xxii)  certified copies of all consents,  approvals,  authorizations,
     registrations  and filings and orders  required or  advisable to be made or
     obtained under any Requirement of Law, or by any Contractual  Obligation of
     each Loan Party, in connection with the execution,  delivery,  performance,
     validity  and   enforceability   of  the  Loan  Documents  or  any  of  the
     transactions   contemplated   thereby,   and  such   consents,   approvals,
     authorizations,  registrations,  filings and orders  shall be in full force
     and effect and all applicable waiting periods shall have expired;

          (xxiii) copies of the  consolidated  financial  statements of Borrower
     and its Subsidiaries for the 2000 and 2001 Fiscal Years,  including balance
     sheets,  income  and cash flow  statements  audited by  independent  public
     accountants of recognized national standing and prepared in conformity with
     GAAP and such other financial  information as the Administrative  Agent may
     reasonably request; and

          (xxiv) the duly executed Post-Closing Agreement.

     (c) The  Borrower and all other  parties  thereto  shall have  executed and
delivered  the 364-Day  Credit  Agreement,  which shall be in form and substance
satisfactory  to the  Administrative  Agent and the  Required  Lenders,  and the
Administrative  Agent and the Required  Lenders  shall have  received  certified
copies  thereof,  together with evidence  that all  conditions  precedent to the
effectiveness  thereof have been satisfied and all transactions  contemplated by
the 364-Day Credit Agreement have been consummated.

     Section 3.2.  Each Credit  Event.  The  obligation of each Lender to make a
                   ------------------
Loan on the occasion of any Borrowing (other than a Borrowing  consisting solely
of a continuation or a conversion of a Borrowing  already then  outstanding) and
of the  Issuing  Bank to issue,  amend,  renew or extend any Letter of Credit is
subject to the satisfaction of the following conditions:

     (a) at the time of and immediately after giving effect to such Borrowing or
the  issuance,  amendment,  renewal or  extension  of such Letter of Credit,  as
applicable, no Default or Event of Default shall exist; and

     (b) all  representations and warranties of each Loan Party set forth in the
Loan Documents  shall be true and correct in all material  respects on and as of
the date of such  Borrowing  or the date of  issuance,  amendment,  extension or
renewal of such Letter of Credit,  in each case before and after  giving  effect
thereto;

     (c) since the date of the  audited  financial  statements  of the  Borrower
described  in Section  4.4,  there shall have been no change which has had or is
reasonably likely to have a Material Adverse Effect; and

     (d) the  Administrative  Agent shall have  received  such other  documents,
certificates,  information or legal opinions as the Administrative  Agent or the
Required Lenders may reasonably  request,  all in form and substance  reasonably
satisfactory to the Administrative Agent.

                                       48
<PAGE>

Each Borrowing and each issuance, amendment,  extension or renewal of any Letter
of Credit  shall be deemed to  constitute a  representation  and warranty by the
Borrower on the date thereof as to the matters  specified in paragraphs (a), (b)
and (c) of this Section 3.2.

     Section  3.3.   Delivery  of   Documents.   All  of  the  Loan   Documents,
                     ------------------------
certificates,  legal opinions and other documents and papers referred to in this
Article   III,   unless   otherwise   specified,   shall  be  delivered  to  the
Administrative  Agent for the account of each of the Lenders and, except for the
Notes, in sufficient  counterparts or copies for each of the Lenders,  and shall
be in form and  substance  satisfactory  in all  respects to the  Administrative
Agent.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     The Borrower  represents and warrants to the Administrative  Agent and each
Lender as follows:

     Section 4.1.  Existence;  Power.  Except as described on Schedule  4.1, the
                   -----------------                          -------------
Borrower and each of its  Subsidiaries  (i) is duly organized,  validly existing
and in good standing  under the laws of the  jurisdiction  of its  organization,
(ii) has all requisite corporate or other  organizational power and authority to
carry on its  business  as now  conducted,  and  (iii) is duly  qualified  to do
business, and is in good standing, in each jurisdiction where such qualification
is required,  except where a failure to be so qualified is not reasonably likely
to result in a Material Adverse Effect.

     Section 4.2. Organizational Power; Authorization.  The execution,  delivery
                  -----------------------------------
and  performance by each Loan Party of the Loan Documents to which it is a party
are within such Loan Party's organizational powers and have been duly authorized
by all necessary  organizational  action,  including if required,  action of its
stockholders,  partners,  members,  or other  owners,  as the case may be.  This
Agreement  and each other Loan Document have been duly executed and delivered by
the  Borrower  and the other Loan  Parties,  as the case may be, and  constitute
valid and binding  obligations  of the  Borrower or such Loan Party (as the case
may be),  enforceable  against it in  accordance  with their  respective  terms,
except as may be limited by applicable bankruptcy,  insolvency,  reorganization,
moratorium,  or similar laws  affecting the  enforcement  of  creditors'  rights
generally and by general principles of equity.

     Section 4.3. Governmental Approvals; No Conflicts. The execution,  delivery
                  ------------------------------------
and performance by the Borrower of this Agreement, and by each Loan Party of the
other Loan  Documents  to which it is a party (i) do not  require any consent or
approval of,  registration  or filing with,  or any action by, any  Governmental
Authority,  except those as have been obtained or made and are in full force and
effect (ii) will not violate  any  applicable  law,  rule or  regulation  or the
charter, by-laws or other organizational documents of the Borrower or any of its
Subsidiaries  or any judgment,  order or ruling of any  Governmental  Authority,
(iii) will not violate or result in a default  under the  Indenture or any other
indenture,  mortgage, loan or credit agreement, lease or financing agreement, or
other  material  agreement or  instrument  binding on the Borrower or any of its
Subsidiaries or any of its assets or give rise to a right  thereunder to require
any payment to be made by the Borrower or any of its Subsidiaries, and (iv) will
not  result  in the  creation  or

                                       49
<PAGE>

imposition of any Lien on any asset of the Borrower or any of its  Subsidiaries,
except Liens (if any) created under the Loan Documents.

     Section 4.4.  Financial  Statements.  The  Borrower  has  furnished to each
                   ---------------------
Lender  (i) the  audited  consolidated  balance  sheet of the  Borrower  and its
Subsidiaries as of February 1, 2002 and the related  consolidated  statements of
income,  shareholders'  equity  and cash  flows for the  Fiscal  Year then ended
prepared by Ernst & Young LLP, and (ii) the unaudited consolidated balance sheet
of the  Borrower  and  its  Subsidiaries  as at May 3,  2002,  and  the  related
unaudited  consolidated  statements  of income  and cash  flows  for the  Fiscal
Quarter and year-to-date period then ending, certified by a Responsible Officer.
Such  financial   statements   fairly  present  in  all  material  respects  the
consolidated financial condition of the Borrower and its Subsidiaries as of such
dates and the consolidated  results of operations for such periods in conformity
with GAAP  consistently  applied,  subject to year-end audit adjustments and the
absence of notes in the case of the statements  referred to in clause (ii). None
of the Borrower or its Subsidiaries has any material  contingent  obligations or
liabilities,  or  material  liabilities  for known  taxes,  long-term  leases or
unusual forward or long-term commitments required by GAAP to be reflected in the
foregoing  financial  statements or the notes thereto that are not so reflected.
Since February 1, 2002 through the Closing Date, there have been no changes with
respect to the Borrower and its  Subsidiaries  which have had or are  reasonably
likely to have, individually or in the aggregate, a Material Adverse Effect.

     Section 4.5. Litigation and Environmental Matters.
                  ------------------------------------

     (a)  Except  as  may  be   disclosed  on  Schedule   4.5,  no   litigation,
                                               --------------
investigation  or  proceeding  of or  before  any  arbitrators,  courts or other
Governmental  Authorities  is  pending  against  or,  to  the  knowledge  of the
Borrower,   threatened   against  or  affecting  the  Borrower  or  any  of  its
Subsidiaries  (i) as to which there is a  reasonable  possibility  of an adverse
determination  that is reasonably  likely to materially  impair the value of any
Mortgaged Property or otherwise have, either individually or in the aggregate, a
Material  Adverse  Effect,  or (ii) that in any manner  draws into  question the
validity or enforceability of this Agreement or any other Loan Document.

     (b)  Neither the  Borrower  nor any of its  Subsidiaries  (i) has failed to
comply  with any  Environmental  Law or to obtain,  maintain  or comply with any
permit, license or other approval required under any Environmental Law, (ii) has
become the subject of any Environmental Liability,  (iii) has received notice of
any claim with respect to any Environmental Liability or (iv) knows of any basis
for any Environmental  Liability,  which in the case of any Mortgaged Non-Retail
Property is reasonably  likely to materially  impair the value of such property,
or in the case of any  Mortgaged  Retail  Properties  is  reasonably  likely to,
individually or in the aggregate, result in a Material Adverse Effect.

     Section 4.6.  Compliance  with Laws. The Borrower and each Subsidiary is in
                   ---------------------
compliance with all applicable laws, rules, regulations, judgments and orders of
any Governmental  Authority except where non-compliance,  either individually or
in the  aggregate,  is not  reasonably  likely to result in a  Material  Adverse
Effect.

                                       50
<PAGE>

     Section 4.7.  Investment  Company Act, Etc. Neither the Borrower nor any of
                   ----------------------------
its  Subsidiaries  is (i)  an  "investment  company"  or is  "controlled"  by an
"investment  company",  as such terms are defined  in, or subject to  regulation
under,  the  Investment  Company  Act of 1940,  as  amended,  or (ii) a "holding
company"  as defined  in, or subject to  regulation  under,  the Public  Utility
Holding Company Act of 1935, as amended, which prohibits its ability to incur or
consummate the transactions  contemplated  hereby,  and neither the Borrower nor
any Subsidiary is otherwise  subject to any other regulatory  limitations of any
Governmental  Authority  affecting  its  ability to incur or  guarantee  debt as
contemplated hereby or by any other Loan Document.

     Section 4.8. Taxes.  (a) The Borrower and its  Subsidiaries  and each other
                  -----
Person for whose taxes the Borrower or any  Subsidiary  could become liable have
timely filed or caused to be filed all Federal and state tax returns  (except as
noted in this Section 4.8) and all other  material tax returns that are required
to be filed by them,  and have paid all taxes  (other  than local and  municipal
taxes and assessments in an aggregate amount not to exceed  $1,000,000) shown to
be due and payable on such returns or on any assessments  made against it or its
property and all other taxes,  fees or other charges imposed on it or any of its
property by any  Governmental  Authority,  except  where the same are  currently
being  contested  in good  faith by  appropriate  proceedings  and for which the
Borrower  or such  Subsidiary,  as the case may be,  has set  aside on its books
adequate  reserves in accordance with GAAP. As of the Closing Date, the charges,
accruals  and  reserves on the books of the  Borrower  and its  Subsidiaries  in
respect  of such  taxes  are  adequate,  and no tax  liabilities  that  could be
materially in excess of the amount so provided are anticipated.

     (b) The Borrower and its Subsidiaries  have not filed their federal,  state
and local  income,  franchise  and excise tax  returns for the Fiscal Year ended
February 2, 2001. Based on their preliminary analysis of their tax liability for
such year, the Borrower and its Subsidiaries reasonably believe that no material
amounts will be owed with the filing of those returns,  and the Borrower and its
Subsidiaries  have paid all estimated  taxes for such year. The Borrower and its
Subsidiaries  have  properly  extended the time for filing and have made or will
make arrangements for filing in a timely manner, their federal,  state and local
income,  franchise and excise tax returns for the Fiscal Year ended  February 1,
2002 and have paid all estimated taxes for such year.

     Section 4.9. Margin  Regulations.  None of the proceeds of any of the Loans
                  -------------------
will be used  for  "purchasing"  or  "carrying"  any  "margin  stock"  with  the
respective  meanings  of each of such terms under  Regulation  U of the Board of
Governors of the Federal Reserve System,  as the same may be in effect from time
to time and any successor regulation,  or for any purpose that would result in a
violation of the provisions of Regulation U. If requested by the  Administrative
Agent or any Lender,  the Borrower will furnish the requesting party a statement
to the foregoing effect in conformity with the requirements of Regulation U.

     Section 4.10.  ERISA.  Except as may be disclosed on Schedule  4.10:
                    -----                                           ----

     (a) None of the  Borrower or its  Subsidiaries  or their  respective  ERISA
Affiliates  maintains or  contributes  to, or has during the past five (5) years
maintained or contributed to, any Plan that is subject to Title IV of ERISA;

                                       51
<PAGE>

     (b) Each Plan  maintained  by the  Borrower or any of its  Subsidiaries  or
their respective  ERISA  Affiliates has at all times been  maintained,  by their
terms and in operation, in compliance with all applicable laws, and none of such
Persons are subject to tax or penalty with  respect to any such Plan,  including
without  limitation,  any tax or penalty  under  Title I or Title IV of ERISA or
under  Chapter 43 of the Code,  or any tax or penalty  resulting  from a loss of
deduction  under  Sections  162,  401, or 419 of the Code,  where the failure to
comply with such laws, and such taxes and  penalties,  taken as a whole with all
other  liabilities  referred  to in  this  Section  4.10,  is in  the  aggregate
                                           -------------
reasonably likely to have a Material Adverse Effect;

     (c)  Neither  the  Borrower  nor  any of its  Subsidiaries  is  subject  to
liabilities (including Withdrawal  Liabilities) with respect to any of its Plans
or the Plans of any of its ERISA Affiliates,  including without limitation,  any
liabilities arising from Title I or Title IV of ERISA, other than obligations to
fund benefits under an on-going Plan and to pay current contributions,  expenses
and premiums  with  respect to such Plans,  where such  liabilities,  taken as a
whole with all other  liabilities  referred to in this Section  4.10,  is in the
                                                       -------------
aggregate reasonably likely to have a Material Adverse Effect;

     (d) The Borrower and its Subsidiaries and, with respect to any Plan that is
subject to Title IV of ERISA,  each of their respective ERISA  Affiliates,  have
made full and timely payment of all amounts (i) required to be contributed under
the terms of each  Plan and  applicable  law,  and (ii)  required  to be paid as
expenses of each Plan,  where the failure to pay such  amounts  (when taken as a
whole,  including  any  penalties  attributable  to such  amounts) is reasonably
likely to have a Material  Adverse Effect.  No Plan subject to Title IV of ERISA
has  an  "amount  of  unfunded  benefit  liabilities"  (as  defined  in  Section
4001(a)(18)  of ERISA),  determined  as if such Plan  terminated  on any date on
which this  representation  and  warranty is deemed made,  in any amount  which,
taken as a whole with all other liabilities referred to in this Section 4.10, is
                                                                ------------
reasonably likely to have a Material Adverse Effect if such amount were then due
and  payable.  Neither the Borrower  nor any of its  Subsidiaries  is subject to
liabilities  with  respect to  post-retirement  medical  benefits in any amounts
which,  taken as a whole with all other liabilities  referred to in this Section
                                                                         -------
4.10,  could have a Material  Adverse  Effect if such  amounts were then due and
----
payable; and

     (e) No ERISA Event has  occurred or is  reasonably  expected to occur that,
when taken  together  with all other such ERISA  Events for which  liability  is
reasonably  expected  to occur,  is  reasonably  likely to result in a  Material
Adverse Effect. The present value of all accumulated  benefit  obligations under
each Plan (based on the assumptions  used for purposes of Statement of Financial
Standards  No.  87)  did  not,  as of the  date  of the  most  recent  financial
statements  reflecting such amounts,  exceed the fair market value of the assets
of such Plan, and the present value of all  accumulated  benefit  obligations of
all underfunded  Plans (based on the assumptions  used for purposes of Statement
of  Financial  Standards  No.  87) did not,  as of the  date of the most  recent
financial  statements  reflecting such amounts,  exceed the fair market value of
the assets of all such underfunded Plans.

     Section 4.11. Ownership of Property.
                   ---------------------

     (a) Each of the Borrower and its  Subsidiaries  has good and marketable fee
simple title to, or a valid leasehold interest in, all of its real property, and
good title to or valid

                                       52

<PAGE>

leasehold interest in all of its personal property and other assets, all as such
real and personal property and assets are reflected in the consolidated  balance
sheet of the  Borrower  described  in clause  (ii) of  Section  4.4,  except for
                                                       ------------
properties or assets  disposed of in the ordinary  course of business since such
date or as  otherwise  permitted  by the terms of this  Agreement  and where the
failure to hold such title,  leasehold or possession is not reasonably likely to
have a Material  Adverse  Effect,  and the Borrower and its  Subsidiaries  enjoy
peaceful and undisturbed possession under all of their respective leases of real
and  personal  property,   except  where  the  failure  to  enjoy  peaceful  and
undisturbed  possession  is not  reasonably  likely to have a  Material  Adverse
Effect. None of such real or personal property or other assets is subject to any
Liens which secure obligations in excess of $250,000  individually or $5,000,000
in the  aggregate  as of the Closing Date except as described on Schedule 7.2 or
other Permitted Encumbrances.

     (b) Each of the  Borrower and its  Subsidiaries  owns,  or is licensed,  or
otherwise  has the  right,  to use,  all  patents,  trademarks,  service  marks,
tradenames,  copyrights,  franchises,  licenses, and other intellectual property
material  to its  business,  and  the  use  thereof  by  the  Borrower  and  its
Subsidiaries does not infringe on the rights of any other Person, except for any
such  infringements  that,  individually or in the aggregate,  is not reasonably
likely to have a Material Adverse Effect.

     Section  4.12.  Insurance.  The  Borrower  and its  Subsidiaries  currently
                     ---------
maintain,  and have maintained at all times during the previous five years, such
insurance with respect to their properties and business with  financially  sound
and reputable insurers, in such amounts and having such coverages against losses
and  damages  which the  Borrower  in the  exercise  of its  reasonable  prudent
business judgment has determined to be necessary to prevent the Borrower and its
Subsidiaries  from  experiencing  a loss  that is  reasonably  likely  to have a
Material  Adverse  Effect.  The  Borrower  and its  Subsidiaries  have  paid all
material  insurance  premiums now due and owing with  respect to such  insurance
policies and  coverages,  and such  policies and coverages are in full force and
effect.

     Section  4.13.  Disclosure.  As of  the  Closing  Date,  the  Borrower  has
                     ----------
identified in a certificate delivered to the Administrative Agent on the Closing
Date (i) all  agreements,  instruments,  and corporate or other  restrictions to
which the Borrower or any of its Subsidiaries is subject where the breach of any
such agreements,  instruments, and corporate or other restrictions is reasonably
likely to result in a Material Adverse Effect, (ii) all agreements,  instruments
and  corporate  or  other  restrictions  to  which  the  Borrower  or any of its
Subsidiaries is subject when performed by their  respective terms are reasonably
likely to result in a Material Adverse Effect, (iii) and all other matters known
to any of them, that,  individually or in the aggregate, is reasonably likely to
result in a Material  Adverse Effect.  Neither the information  furnished by the
Borrower for  inclusion  in the  Information  Memorandum  nor any of the reports
(including  without limitation all reports that the Borrower is required to file
with the Securities and Exchange Commission), financial statements, certificates
or  other  information  furnished  by  or on  behalf  of  the  Borrower  to  the
Administrative  Agent  or any  Lender  in  connection  with the  negotiation  or
syndication  of this  Agreement or any other Loan  Document  (including  without
limitation,  all  information  furnished  or made  available  in  respect of the
Shareholder  Settlements  and  the SEC  Investigation)  or  otherwise  delivered
hereunder or thereunder (as modified or supplemented by any other information so
furnished)  contains  any  material  misstatement  of fact or omits to state any
material fact necessary to make the  statements  therein,  taken as a whole,  in

                                       53
<PAGE>

light of the  circumstances  under which they were made, not  misleading.  It is
understood that no  representation or warranty is made concerning any forecasts,
estimates,  pro forma information,  projections and statements as to anticipated
future  performance or conditions  contained in any such  financial  statements,
certificates or documents except that as of the date such forecasts,  estimates,
pro forma  information,  projections  and statements  were  generated,  (i) such
--- -----
forecasts,  estimates,  pro forma  information,  projections and statements were
                        --- -----
based on the good faith assumptions of the management of the Borrower,  and (ii)
such  assumptions  were  believed  by such  management  to be  reasonable.  Such
forecasts,  estimates, pro forma information and statements, and the assumptions
                       --- -----
on which they were based, may or may not prove to be correct.

     Section  4.14.  Labor  Relations.  There are no strikes,  lockouts or other
                     -----  ---------
material  labor  disputes  or  grievances  against  the  Borrower  or any of its
Subsidiaries,  or, to the Borrower's knowledge,  threatened against or affecting
the  Borrower  or any of its  Subsidiaries,  and  no  significant  unfair  labor
practice,  charges or grievances are pending  against the Borrower or any of its
Subsidiaries,  or to the Borrower's  knowledge,  threatened  against any of them
before any Governmental  Authority that are reasonably likely to have a Material
Adverse  Effect.  All payments due from the Borrower or any of its  Subsidiaries
pursuant to the provisions of any collective bargaining agreement have been paid
or accrued as a liability on the books of the  Borrower or any such  Subsidiary,
except  where the failure to do so is not  reasonably  likely to have a Material
Adverse Effect.

     Section 4.15. Status of Certain Agreements and Other Matters.
                   ----------------------------------------------

     (a)  None of the  Borrower  or its  Subsidiaries  is in  default  which  is
continuing  under or with  respect  to any  Contractual  Obligation,  including,
without  limitation,  the  Indenture,  or any  Requirement of Law in any respect
which has had or is reasonably likely to have a Material Adverse Effect. Without
limiting  the  foregoing,  as of the Closing  Date,  none of the Borrower or its
Subsidiaries  has received any notice or claim as to the existence or occurrence
of any  unwaived  default or breach by the  Borrower or any of its  Subsidiaries
under the provisions of the Indenture or any other indenture,  mortgage, loan or
credit agreement,  lease or financing agreement,  or other material agreement or
instrument  binding on the Borrower or any of its  Subsidiaries  or any of their
respective properties.

     (b) None of the  Subsidiaries  is party to or subject to any  agreement  or
arrangement  restricting  or  limiting  the  payment of any  dividends  or other
distributions  by such Subsidiary to the Borrower or any other  Subsidiary,  the
repayment of any loans or advances  made to such  Subsidiary  by the Borrower or
any other Subsidiary, or the sale or transfer by the Subsidiary of any assets to
the Borrower or any other Subsidiary.

     (c) The Borrower has  furnished to the  Administrative  Agent a correct and
complete copy of each  agreement or instrument  evidencing  Indebtedness  of the
Borrower or any Subsidiary in each case in an amount  greater than  $10,000,000,
including all amendments,  modifications,  and  supplements  that have been made
with respect thereto, in each case as of the Closing Date.

                                       54
<PAGE>

     Section 4.16. Subsidiaries.
                   ------------

     (a)  Schedule  4.16 sets forth the name of, the  ownership  interest of the
          --------------
Borrower  in,  the  jurisdiction  of  organization  of,  and the type  of,  each
Subsidiary, as of the Closing Date.

     (b) On the  Closing  Date  and  after  giving  effect  to the  transactions
contemplated by this Agreement and the other Loan  Documents,  (i) the assets of
each Subsidiary at fair valuation and based on their present fair saleable value
will  exceed such  Subsidiary's  debts,  including  contingent  liabilities  but
excluding  intercompany debt among the Loan Parties,  (ii) the remaining capital
of such Subsidiary will not be unreasonably  small to conduct such  Subsidiary's
business,  and (iii)  such  Subsidiary  will not have  incurred  debts,  or have
intended to incur debts,  beyond the  Subsidiary's  ability to pay such debts as
they mature.  For purposes of this Section 4.16, "debt" means any liability on a
                                   ------------
claim, and "claim" means (x) the right to payment,  whether or not such right is
reduced to  judgment,  liquidated,  unliquidated,  fixed,  contingent,  matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured, or (y)
the right to an equitable  remedy for breach of performance if such breach gives
rise to a right to payment,  whether or not such right to an equitable remedy is
reduced  to  judgment,   fixed,  contingent,   matured,   unmatured,   disputed,
undisputed, secured or unsecured.

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS
                              ---------------------

     The  Borrower  covenants  and  agrees  that  so long  as any  Lender  has a
Commitment  in effect  hereunder or the principal of and interest on any Loan or
any fee or any LC  Disbursement  remains  unpaid or any Letter of Credit remains
outstanding:

     Section 5.1. Financial Statements and Other Information.  The Borrower will
                  ------------------------------------------
deliver to the Administrative Agent and each Lender:

     (a) as soon as reasonably  available and in any event within 100 days after
the end of each Fiscal Year, a copy of the annual audited  financial  statements
for such  Fiscal  Year  for the  Borrower  and its  Subsidiaries,  containing  a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of
such   Fiscal  Year  and  the  related   consolidated   statements   of  income,
stockholders'  equity and cash flows  (together  with all notes  thereto) of the
Borrower and its Subsidiaries  for such Fiscal Year,  setting forth in each case
in comparative  form the figures for the previous Fiscal Year, all in reasonable
detail  and  reported  on by  Ernst  & Young  LLP or  other  independent  public
accountants of nationally recognized standing (without a "going concern" or like
qualification,  exception  or  explanation  and  without  any  qualification  or
exception  as to the scope of such  audit)  to the  effect  that such  financial
statements  present fairly in all material respects the financial  condition and
the results of operations of the Borrower and its  Subsidiaries  for such Fiscal
Year on a consolidated basis in accordance with GAAP and that the examination by
such accountants in connection with such consolidated  financial  statements has
been made in accordance with generally accepted auditing standards;

                                       55
<PAGE>

     (b) as soon as  reasonably  available and in any event within 50 days after
the end of each of the first  three  Fiscal  Quarters of each  Fiscal  Year,  an
unaudited  consolidated balance sheet of the Borrower and its Subsidiaries as at
the end of such Fiscal Quarter and the related unaudited consolidated statements
of income and cash flows of the  Borrower and its  Subsidiaries  for such Fiscal
Quarter and the then elapsed portion of such Fiscal Year,  setting forth in each
case in comparative  form the figures for the  corresponding  Fiscal Quarter and
the corresponding  portion of Borrower's  previous Fiscal Year, all certified by
the chief financial officer of the Borrower as presenting fairly in all material
respects the  financial  condition and results of operations of the Borrower and
its  Subsidiaries on a consolidated  basis in accordance  with GAAP,  subject to
normal year-end audit adjustments and the absence of notes;

     (c) concurrently with the delivery of the financial  statements referred to
in clauses (a) and (b) above,  a certificate of the chief  financial  officer of
the  Borrower,  (i)  certifying as to whether there exists a Default or Event of
Default on the date of such certificate, and if a Default or an Event of Default
then exists,  specifying  the details  thereof and the action which the Borrower
has taken or  proposes  to take with  respect  thereto,  (ii)  setting  forth in
reasonable  detail  calculations  demonstrating  compliance with Article VI, and
                                                                 ----------
(iii) stating  whether any material  change in GAAP or the  application  thereof
affecting such financial  statements or calculations has occurred since the date
of the Borrower's audited financial  statements  referred to in Section 4.4 and,
                                                                -----------
if any  change  has  occurred,  specifying  the  effect  of such  change  on the
financial statements accompanying such certificate or the calculations set forth
therein;

     (d) concurrently with the delivery of the financial  statements referred to
in clause (a) above, any comment or management letter or report submitted by the
accounting firm that reported on such financial statements, and a certificate of
such  accounting  firm stating  whether they obtained any  knowledge  during the
course of their examination of such financial statements of any Default or Event
of  Default  (which  certificate  may be  limited  to  the  extent  required  by
accounting rules or guidelines);

     (e) as soon as  available  and in any event within 15 days after the end of
each fiscal month during which the  financial  covenant set forth in Section 6.3
                                                                     -----------
remains in effect a certificate of the chief  financial  officer of the Borrower
setting  forth in  reasonable  detail (i) the  Eligible  Inventory  owned by the
Borrower  and a  categorical  breakdown  (based on the  definitions  of Eligible
Inventory) of all Eligible  Inventory as of such date, (ii) Consolidated  Funded
Debt as of such  date,  and (iii)  calculations  demonstrating  compliance  with
Section 6.3 for such fiscal month;
-----------

     (f) promptly  (and in no event later than 5 Business  Days)  provide to the
Administrative  Agent, upon the written request of the  Administrative  Agent or
any  Lender,  copies of any  specified  periodic  and other  reports  (including
without  limitation,  all reports  filed on Forms 8-K,  10-Q,  and 10-K),  proxy
statements  and other  materials  filed by the Borrower with the  Securities and
Exchange  Commission,  or any  Governmental  Authority  succeeding to any or all
functions of said  Commission,  or with any  national  securities  exchange,  or
distributed by the Borrower to its shareholders  generally,  as the case may be;
and

                                       56
<PAGE>

     (g)  promptly  following  any  request  therefor,  such  other  information
regarding the results of operations, business affairs and financial condition of
the Borrower or any  Subsidiary  as the  Administrative  Agent or any Lender may
reasonably request.

     Section 5.2. Notices of Material  Events.  The Borrower will furnish to the
                  ---------------------------
Administrative  Agent and each Lender reasonably prompt written notice (given in
no event later than 5 Business Days) of the following:

     (a)  after  a  Responsible  Officer  of the  Borrower  knows  thereof,  the
occurrence of any Default or Event of Default;

     (b) after a Responsible  Officer of the Borrower knows thereof,  the filing
or commencement  of any action,  suit or proceeding by or before any arbitrator,
court or other  Governmental  Authority  against  or,  to the  knowledge  of the
Borrower,   affecting  the  Borrower  or  any  Subsidiary  which,  if  adversely
determined  (but excluding any action,  suit or proceeding  where the Borrower's
management  has  determined  in good faith  after  reasonable  inquiry  that the
likelihood of any adverse  determination  is remote),  is  reasonably  likely to
result in a Material Adverse Effect;

     (c)  after  a  Responsible  Officer  of the  Borrower  knows  thereof,  the
occurrence of any event or any other development by which the Borrower or any of
its  Subsidiaries (i) fails to comply with any  Environmental  Law or to obtain,
maintain or comply with any permit, license or other approval required under any
Environmental  Law, (ii) becomes subject to any Environmental  Liability,  (iii)
receives  notice of any claim with respect to any  Environmental  Liability,  or
(iv) becomes aware of any basis for any Environmental  Liability, and in each of
the  preceding  clauses,  which  individually  or in the aggregate is reasonably
likely to result in a Material Adverse Effect;

     (d) the  occurrence  of any ERISA  Event that alone,  or together  with any
other  ERISA  Events  that  have  occurred,  is  reasonably  likely to result in
liability of the Borrower and its  Subsidiaries in an aggregate amount exceeding
$10,000,000;

     (e) the effectiveness of any material amendment, modification or supplement
to the Indenture;

     (f) the receipt by the Borrower or any of its Subsidiaries of any notice or
claim  asserting  the existence or  occurrence  of (i) any default,  breach,  or
violation of the terms of the Indenture or any other indenture,  mortgage,  loan
or credit agreement, lease or financing arrangement, or other material agreement
or  instrument,  in any case  where the  Indebtedness  associated  with any such
agreement or instrument exceeds $10,000,000, or (ii) any event or condition that
would require or permit the holder of any Indebtedness of the Borrower or any of
its Subsidiaries in an amount greater than $10,000,000 to exercise its rights to
require the repayment,  redemption or repurchase,  or other  acquisition of such
Indebtedness by the Borrower or any of its  Subsidiaries  prior to the scheduled
maturity thereof; and

     (g) any other  development  that  results  in, or is  reasonably  likely to
result in, a Material Adverse Effect.

                                       57
<PAGE>

     Each notice  delivered under this Section shall be accompanied by a written
statement of a  Responsible  Officer  setting  forth the details of the event or
development  requiring  such notice and any action taken or proposed to be taken
with respect thereto.

     Section 5.3.  Existence;  Conduct of Business.  The Borrower will, and will
                   -------------------------------
cause each of its  Subsidiaries  to, (i)  preserve,  renew and  maintain in full
force and  effect  its legal  existence,  (ii) do or cause to be done all things
reasonably  necessary to  preserve,  renew and maintain in full force and effect
its respective  rights,  licenses,  permits,  privileges,  franchises,  patents,
copyrights,  trademarks  and trade names material to the conduct of its business
and (iii) continue to engage in the same business as presently conducted or such
other businesses that are reasonably related thereto;  provided, that nothing in
this  Section  shall   prohibit  any  merger,   consolidation,   liquidation  or
dissolution permitted under Section 7.3.

     Section 5.4.  Compliance  with Laws, Etc. The Borrower will, and will cause
                   --------------------------
each of its  Subsidiaries  to,  comply  with all laws,  rules,  regulations  and
requirements  of any  Governmental  Authority  applicable to its  properties and
business operations (including,  without limitation,  all Environmental Laws and
all licenses,  permits,  approvals, orders and directives issued by Governmental
Authorities pursuant to such Environmental Laws, and all ERISA laws, regulations
and orders),  except where the failure to do so, either  individually  or in the
aggregate, is not reasonably likely to result in a Material Adverse Effect.

     Section 5.5. Payment of Taxes and Other  Obligations.  Prior to October 15,
                  ---------------------------------------
2002,  the Borrower and its  Subsidiaries  shall file their  federal,  state and
local  income  tax  returns  for the Fiscal  Years  ended  February  2, 2001 and
February 1, 2002. The Borrower will, and will cause each of its Subsidiaries to,
pay and discharge at or before maturity,  all of its obligations and liabilities
(including  without  limitation all tax liabilities and claims that could result
in a statutory  Lien)  before the same shall  become  delinquent  or in default,
except where (i) the validity or amount thereof is being contested in good faith
by  appropriate  proceedings,  and (ii) the Borrower or such  Subsidiary has set
aside on its books  adequate  reserves with respect  thereto in accordance  with
GAAP.

     Section 5.6.  Books and Records.  The Borrower will, and will cause each of
                   -----------------
its Subsidiaries to, keep proper books of record and account in which full, true
and correct  entries shall be made of all dealings and  transactions in relation
to  its  business  and  activities  to  the  extent  necessary  to  prepare  the
consolidated financial statements of Borrower in conformity with GAAP.

     Section 5.7. Visitation, Inspection, Etc. The Borrower will, and will cause
                  ---------------------------
each of its Subsidiaries  to, permit any  representative  of the  Administrative
Agent or any Lender to visit and  inspect  its  properties,  and to discuss  its
affairs,  finances with any of its officers, all at such reasonable times during
normal business hours and as often as the Administrative Agent or any Lender may
reasonably  request after  reasonable  prior notice to the  Borrower;  provided,
                                                                       --------
however,  if an Event of Default has  occurred and is  continuing,  the Borrower
will, and will cause each of its Subsidiaries to, permit any  representative  of
the Administrative  Agent or any Lender to visit and inspect its properties,  to
examine its books and records,  and to make copies and take extracts  therefrom,
and to discuss its affairs,  finances and accounts  with any of its officers and
with its independent certified public accountants,  all at such reasonable times
during normal

                                       58

<PAGE>

business  hours  and as often as the  Administrative  Agent  or any  Lender  may
reasonably request and with no prior notice.

     Section 5.8. Maintenance of Properties;  Insurance.  The Borrower will, and
                  -------------------------------------
will  cause each of its  Subsidiaries  to, (i) keep and  maintain  all  property
material to the conduct of its  business in good  working  order and  condition,
subject to ordinary  wear and tear,  except  where the failure to do so,  either
individually  or it the  aggregate,  is not  reasonably  likely  to  result in a
Material Adverse Effect,  and (ii) maintain with financially sound and reputable
insurance companies,  insurance with respect to its properties and business, and
the properties and business of its  Subsidiaries,  against loss or damage of the
kinds customarily insured against by companies in the same or similar businesses
operating in the same or similar locations.

     Section 5.9. Use of Proceeds and Letters of Credit.  The Borrower  will use
                  -------------------------------------
the  proceeds  of all  Loans  advanced  on the  Closing  Date  in the  aggregate
principal   amount  of  $288,000,000  to  fund,   directly  or  through  capital
contributions  made  by the  Borrower  to DGI  and  DGI's  use of  such  capital
contributions  to fund the DGI  Loans,  the  refinancing  and  replacement  of a
portion  of the  existing  Indebtedness  under the  Existing  Synthetic  Leases.
Thereafter, proceeds of any other Loans shall be used to finance working capital
needs and capital  expenditures and for other general corporate  purposes of the
Borrower and its Subsidiaries (including funding of draws under trade letters of
credit issued for the account of the Borrower or its  Subsidiaries).  No part of
the  proceeds  of any Loan,  or any  Letter  of  Credit,  will be used,  whether
directly or indirectly,  for any purpose that would result in a violation of any
rule or  regulation  of the Board of  Governors of the Federal  Reserve  System,
including Regulations T, U or X.

     Section  5.10.  Additional   Subsidiaries.   (a)  If  any  additional  U.S.
                     -------------------------
Subsidiary  is acquired or formed after the Closing  Date,  the  Borrower  will,
within ten (10) Business Days after such U.S.  Subsidiary is acquired or formed,
notify  the  Administrative  Agent  and  the  Lenders  thereof  and  cause  such
Subsidiary  to become a Guarantor  by joining  the  Guaranty  Agreement  and the
Contribution  Agreement pursuant to joinder agreements in substantially the form
of Annex A to the Guaranty  Agreement and Annex A to the Contribution  Agreement
and will  cause such  Subsidiary  to deliver  simultaneously  therewith  similar
documents  applicable to such Subsidiary required under Section 3.1 as requested
by the Administrative Agent.

     (b) If any Foreign Subsidiary is acquired or formed after the Closing Date,
the Borrower will,  within ten (10) Business Days after such Foreign  Subsidiary
is acquired or formed,  notify the Administrative  Agent and the Lenders thereof
and, unless  otherwise  agreed by the Required  Lenders,  the Borrower shall, or
shall cause its U.S. Subsidiary owning such Person, to pledge sixty-five percent
(65%) of each  class of voting  shares or  comparable  equity  interest  and one
hundred  percent (100%) of each class of nonvoting  shares or comparable  equity
interest  (or if such pledge of 100%  thereof  would have an adverse  income tax
consequence to the Borrower, sixty five percent (65%) of each class of nonvoting
shares  or  comparable  equity  interest)  owned by the  Borrower  or such  U.S.
Subsidiary to the Administrative  Agent as security for the Obligations pursuant
to a pledge agreement in form and substance  satisfactory to the  Administrative
Agent and the Required Lenders,  and to deliver the original stock  certificates
evidencing  such shares or  comparable  equity  interest  to the  Administrative
Agent,  together with

                                       60

<PAGE>

appropriate  transfer powers executed in blank and Uniform
Commercial Code financing statements.

     Section 5.11. Further Assurances.
                   ------------------

     (a) The Borrower  will,  and will cause each  Guarantor to, execute any and
all  further  documents,   agreements,   instruments,  Uniform  Commercial  Code
financing  statements,  and take all such further actions  (including the filing
and recording of any such  financing  statements,  fixture  filings,  mortgages,
deeds of trust,  deeds to secure debt,  landlord  consents and other  documents)
that may be required under any applicable law, or which the Administrative Agent
or the Required Lenders may reasonably  request,  to further evidence,  perfect,
and protect the  priority of the  Collateral  Agent's  first  priority  lien on,
security title to, and security interest in all portions of the Collateral,  all
at the expense of the Borrower.

     (b) The Borrower  will,  and will cause each  Guarantor to, comply with the
requirements of the Post-Closing Agreement.

     (c) If any  Mortgaged  Retail  Property  is  replaced  pursuant  to Section
                                                                         -------
2.12(b)(ii),  the Borrower shall, and shall cause each applicable  Guarantor to,
----------
execute  and  deliver  to the  Administrative  Agent  a  Mortgage  on  such  new
replacement  Mortgaged Retail  Property,  together with all agreements and other
documents in respect of such Mortgage and the new replacement  Mortgaged  Retail
Property of the types  described in clauses (v) through  (xv) of Section  3.1(b)
                                                                 --------------
(but excluding  clause (xi) thereof) and provide all other documents and take or
cause to be taken all other  actions  required for Mortgaged  Retail  Properties
pursuant to Section 3.1 as if such new  replacement  Mortgaged  Retail  Property
            -----------
existed on the Closing  Date,  and take all such  further  actions in respect of
such new replacement  Mortgaged Retail Property that may be required as provided
in Section 5.11(a).
   --------------

                                   ARTICLE VI

                               FINANCIAL COVENANTS

     The  Borrower  covenants  and  agrees  that  so long  as any  Lender  has a
Commitment  hereunder,  or the  principal  of or  interest  on any Loan  remains
unpaid,  or any fee or any LC  Disbursement  remains  unpaid,  or any  Letter of
Credit remains outstanding:

     Section  6.1.   Funded  Debt  to  EBITDAR  Ratio.   The  Borrower  and  its
                     --------------------------------
Subsidiaries  shall  maintain  on a  consolidated  basis,  as of the end of each
Fiscal  Quarter,  commencing with the Fiscal Quarter ending May 3, 2002, a ratio
of (i) Consolidated  Adjusted Funded Debt (as of the end of such Fiscal Quarter)
to (ii) Consolidated  EBITDAR, of less than 2.00:1.00 (calculated for the Fiscal
Quarter then ending and the immediately preceding three (3) Fiscal Quarters).

     Section  6.2.  EBITR to Interest  and Rents  Ratio.  The  Borrower  and its
                    -----------------------------------
Subsidiaries  shall  maintain  on a  consolidated  basis,  as of the end of each
Fiscal  Quarter,  commencing with the Fiscal Quarter ending May 3, 2002, a ratio
of (i)  Consolidated  EBITR to (ii)  Consolidated  Interest Expense plus without
duplication  Consolidated  Rent  Expense,  of

                                       61
<PAGE>

greater than 2.00:1.00 (all such amounts to be calculated for the Fiscal Quarter
then ending and the immediately preceding three (3) Fiscal Quarters).

     Section 6.3. Asset Coverage Ratio. The Borrower and its Subsidiaries  shall
                  --------------------
maintain on a consolidated basis, as of the end of each fiscal month, commencing
with the fiscal month ending July 5, 2002, an Asset  Coverage  Ratio of not less
than 1.25:1.00; provided, however, the foregoing covenant shall not be deemed to
                --------  -------
be in  effect  or be  applicable  as of the end of any  fiscal  month  where the
Borrower has maintained as of such time, for a period of at least 90 consecutive
days ending as of such time,  a Debt Rating from Moody's of Baa3 or higher and a
Debt Rating from S&P of BBB- or higher.

     Section  6.4.  Consolidated  Net Worth.  The  Borrower  will not permit its
                    -----------------------
Consolidated  Net  Worth at any time to be less than  $950,000,000,  plus 50% of
Consolidated Net Income on a cumulative basis for all preceding Fiscal Quarters,
commencing  with the  Fiscal  Quarter  ending  May 3,  2002;  provided,  that if
                                                              --------
Consolidated  Net Income is negative in any Fiscal  Quarter the amount added for
such Fiscal  Quarter  shall be zero and such  negative  Consolidated  Net Income
shall not reduce the amount of  Consolidated  Net Income added from any previous
Fiscal Quarter.  The minimum required amount of Consolidated Net Worth set forth
above shall be  increased  by 100% of the amount by which the  Borrower's  total
shareholders' equity is increased as a result of any issuance or sale of capital
stock of the Borrower after the Closing Date.  Promptly upon the consummation of
such issuance or sale,  the Borrower  shall notify the  Administrative  Agent in
writing of the amount of such increase in "total shareholders' equity".

     Section 6.5. Capital  Expenditures.  The Borrower and its Subsidiaries will
                  ---------------------
not,  on  a  consolidated   basis,  make  Capital   Expenditures  in  excess  of
$200,000,000 during any Fiscal Year, provided,  however, the foregoing covenants
                                     --------   -------
set  forth in this  Section  6.5  shall  not be  deemed  to be in  effect  or be
                    ------------
applicable at such times as the Borrower shall have maintained at such time, for
a period  of at least 90  consecutive  days  ending as of such  time,  a Moody's
Rating of Baa3 or higher and a S&P Rating of BBB- or higher.

                                  ARTICLE VII

                               NEGATIVE COVENANTS
                               ------------------

     The  Borrower  covenants  and  agrees  that  so long  as any  Lender  has a
Commitment  hereunder,  or the  principal  of or  interest  on any Loan  remains
unpaid,  or any fee or any LC  Disbursement  remains  unpaid,  or any  Letter of
Credit remains outstanding:

     Section 7.1.  Indebtedness.  The Borrower will not, and will not permit any
                   ------------
of  its  Subsidiaries  to,  create,   incur,  assume  or  suffer  to  exist  any
Indebtedness, except:

     (a) Indebtedness created pursuant to the Loan Documents;

     (b)  Indebtedness of the Borrower owing to any Subsidiary,  Indebtedness of
any Subsidiary owing to the Borrower,  and Indebtedness of any Subsidiary (other
than DGI) owing to any other  Subsidiary  (other than DGI);  provided,  that the
                                                             --------
aggregate amount of Indebtedness of the Borrower to any Subsidiary that is not a
Guarantor (including all such

                                       61

<PAGE>

Indebtedness  existing  on the  Closing  Date),  shall  be  subordinated  to the
Obligations  on terms  satisfactory  to the  Administrative  Agent and shall not
exceed $5,000,000 at any time outstanding;

     (c) Indebtedness  existing on the date hereof and set forth on Schedule 7.1
                                                                    ------------
and extensions,  renewals and replacements of any such  Indebtedness that do not
increase the outstanding  principal amount thereof  (immediately prior to giving
effect to such extension, renewal or replacement) or shorten the maturity or the
weighted average life thereof;

     (d)  Indebtedness  of a Person which  becomes a  Subsidiary  after the date
hereof,  provided  that (i) such  Indebtedness  existed at the time such  Person
         --------
became  a  Subsidiary  and was not  created  in  anticipation  thereof  and (ii)
immediately  after  giving  effect  to the  acquisition  of such  Person  by the
Borrower no Default or Event of Default shall have occurred and be continuing;

     (e)  Indebtedness  of the  Borrower  or any  Subsidiary  (other  than  DGI)
incurred to finance the acquisition, construction or improvement of any fixed or
capital  assets,  including  Capital  Lease  Obligations,  and any  Indebtedness
assumed in connection  with the  acquisition  of any such assets or secured by a
Lien on any such assets prior to the acquisition  thereof;  provided,  that such
                                                            --------
Indebtedness  is incurred prior to or within 120 days after such  acquisition or
the  completion  of such  construction  or  improvements,  and  all  extensions,
renewals,  and  replacements of any such  Indebtedness  that do not increase the
outstanding principal amount thereof (immediately prior to giving effect to such
extension,  renewal or  replacement)  or shorten the  maturity  or the  weighted
average life thereof;

     (f) Guarantees by the Borrower of Indebtedness of any Subsidiary  otherwise
permitted  to be  incurred  or exist  under  the  terms of this  Agreement,  and
Guarantees by any Subsidiary (other than DGI) of Indebtedness of the Borrower or
any other  Subsidiary that is otherwise  permitted to be incurred or exist under
the terms of this Agreement;

     (g) Indebtedness of the Borrower arising under the 364-Day Credit Agreement
and Guarantees by Subsidiaries of Borrower of such Indebtedness;

     (h) Hedging Obligations permitted by Section 7.11;
                                          ------------

     (i)  Indebtedness of the Borrower or any Subsidiary  incurred in connection
with sale leaseback transactions permitted by Section 7.9;
                                              -----------

     (j)  Unsecured  Indebtedness  of any  Subsidiaries  (other than DGI) of the
Borrower not otherwise  permitted by this Section 7.1, in an aggregate principal
                                          -----------
amount outstanding at any time not to exceed $10,000,000;

     (k) Unsecured  Indebtedness of the Borrower not otherwise permitted by this
Section 7.1, in an aggregate  principal  amount  outstanding  at any time not to
-----------
exceed $35,000,000; and

     (l) the DGI Loans.

                                       62
<PAGE>

     Section 7.2.  Liens.  The Borrower will not, and will not permit any of its
                   -----
Subsidiaries to, create, incur, assume or suffer to exist any Lien on any of its
assets or property now owned or hereafter acquired or, except:

     (a)  Liens  created  in  favor of the  Administrative  Agent  securing  the
Obligations under this Agreement and the "Obligations"  under the 364-Day Credit
Agreement;

     (b) Permitted Encumbrances;

     (c) any Liens on any  property or asset of the  Borrower or any  Subsidiary
existing on the Closing Date as described on Schedule 7.2,  provided,  that such
                                             ------------   --------
Lien  shall not  apply to any other  property  or asset of the  Borrower  or any
Subsidiary;

     (d) any Liens granted to secure purchase money Indebtedness permitted to be
incurred as provided in Section 7.1(e) and any renewals and  extensions  thereof
                        -------------
as provided by Section  7.1(e),  provided  that (i) such Lien  secures only such
               --------------    --------  ----
purchase money Indebtedness,  (ii) such Lien attaches to such asset concurrently
or within 60 days  after  the  acquisition,  improvement  or  completion  of the
construction thereof, and (iii) the Indebtedness secured thereby does not exceed
the cost of acquiring, constructing or improving such fixed or capital assets;

     (e) any Liens  granted  in  respect of cash  amounts  deposited  or held as
security for payment of the Shareholder  Settlements  pursuant to the terms of a
court order or orders  approving or implementing  such  settlement(s),  provided
                                                                        --------
that the aggregate amount of such cash does not exceed $165,000,000; and

     (f) Liens on the property or assets of a Person which  becomes a Subsidiary
after the date hereof  securing  Indebtedness  permitted by  subsection  7.1(d),
provided that (i) such Liens existed at the time such Person became a Subsidiary
--------
and were not created in anticipation thereof, (ii) any such Lien does not extend
to cover  any  property  or  assets of such  Person  after the time such  Person
becomes a Subsidiary and (iii) such Liens do not secure obligations in excess of
$10,000,000 in the aggregate at any time outstanding;

     (g) Liens (not otherwise permitted  hereunder) which secure obligations not
exceeding (as to the Borrower and all  Subsidiaries  other than DGI) $10,000,000
in aggregate amount at any time outstanding; and

     (h) Liens on the property or assets of a Mortgagor,  other than any portion
of the Collateral, to secure the DGI Loans permitted by Section 7.1(l).
                                                        -------------

     Section 7.3. Fundamental Changes.
                  -------------------

     (a) The  Borrower  will not, and will not permit any  Subsidiary  to, merge
into or consolidate  into any other Person,  or permit any other Person to merge
into or consolidate with it, or sell,  lease,  transfer or otherwise  dispose of
(in a single  transaction or a series of transactions)  all or substantially all
of its assets (in each case, whether now owned or hereafter  acquired) or all or
substantially all of the stock of any of its Subsidiaries (in each case, whether
now owned or hereafter acquired) or liquidate or dissolve;  provided, that if at
                                                            --------
the time thereof

                                       63
<PAGE>

and  immediately  after giving  effect  thereto,  no Default or Event of Default
shall have occurred and be  continuing  (i) the Borrower or any  Subsidiary  may
merge with a Person if the Borrower (or such Subsidiary if the Borrower is not a
party to such merger) is the surviving Person, and any Subsidiary may merge into
another Subsidiary,  provided, that (x) if either party to such a merger between
                     --------
Subsidiaries is a Guarantor,  a Guarantor shall be the surviving Person, and (y)
any  such  merger  involving  a  Person  that is not a  wholly-owned  Subsidiary
immediately  prior to such merger shall not be permitted  hereunder  unless also
permitted by Section  7.4,  (ii) any  Subsidiary  may sell,  transfer,  lease or
otherwise dispose of all or substantially all of its assets (including by way of
liquidation) to the Borrower or to a Guarantor,  provided,  that if such selling
                                                 --------
Subsidiary is a Mortgagor,  after giving effect to such sale, transfer, lease or
other disposition,  the Mortgage and the Lien created thereunder in favor of the
Administrative  Agent for the benefit of the  Lenders in the  related  Mortgaged
Property owned by the transferee of such Mortgaged Property shall remain in full
force  and  effect  and  perfected  (to at least  the same  extent  as in effect
immediately prior to such sale,  transfer,  lease or other disposition) and such
transferee  shall  execute  an  assumption   agreement  in  form  and  substance
satisfactory to the Administrative  Agent expressly assuming the obligations and
liabilities of such selling  Subsidiary  under the Mortgage and other applicable
Loan  Documents,  and (iii) any  Subsidiary  may  liquidate  or  dissolve if the
Borrower determines in good faith that such liquidation or dissolution is in the
best  interests  of the Borrower and is not  materially  disadvantageous  to the
Lenders,  provided,  that  if  such  liquidated  or  dissolved  Subsidiary  is a
          --------
Mortgagor,  after giving effect to such  liquidation or dissolution,  the Person
succeeding  to title to the  Mortgaged  Property is a Guarantor and the Mortgage
and the Lien created  thereunder  in favor of the  Administrative  Agent for the
benefit of the Lenders in the related Mortgaged Property owned by such Guarantor
shall remain in full force and effect and perfected (to at least the same extent
as in effect  immediately  prior to such  liquidation or  dissolution)  and such
Guarantor   shall  execute  an  assumption   agreement  in  form  and  substance
satisfactory to the Administrative  Agent expressly assuming the obligations and
liabilities of such  liquidated or dissolved  Subsidiary  under the Mortgage and
other applicable Loan Documents;  and provided  further,  that any merger or any
                                      --------  -------
sale,  transfer or other  disposition of assets  described in clause (i) or (ii)
above  involving  DGI shall be limited to a merger with the  Borrower  where the
Borrower is the surviving  Person,  or a sale,  transfer or other disposition of
assets from DGI to the Borrower, as the case may be.

     (b) The Borrower will not, and will not permit any of its  Subsidiaries to,
engage in any  business  other  than  businesses  of the type  conducted  by the
Borrower  and its  Subsidiaries  on the date  hereof and  businesses  reasonably
related thereto.  Without limiting the foregoing,  the Borrower shall not permit
DGI to  engage  in any  business  or  activities  other  than  (i)  funding  and
collecting the DGI Loans in accordance  with their  respective  terms,  and (ii)
purchasing any real and/or personal property having an aggregate  purchase price
not to exceed $5,000,000,  and leasing such property on a net lease basis to the
Borrower or any other Subsidiary.

     Section 7.4.  Investments,  Loans, Etc. The Borrower will not, and will not
                   ------------------------
permit any of its  Subsidiaries to, hold or acquire  (including  pursuant to any
merger  with any Person  that was not a  wholly-owned  Subsidiary  prior to such
merger),  any capital stock,  partner or limited  liability company interests or
other  ownership  interests,   evidence  of  Indebtedness  or  other  securities
(including any option,  warrant, or other right to acquire any of the foregoing)
of, make or permit to exist any loans or advances to,  Guarantee any obligations
of, or make or

                                       64
<PAGE>

permit to exist any  investment or any other  interest in, any other Person (all
of the foregoing being collectively called "Investments"), except:

     (a)  Investments  (other than Permitted  Investments)  existing on the date
          hereof  and set  forth  on  Schedule  7.4  (including  Investments  in
                                      -------------
          Subsidiaries);

     (b) Permitted Investments;

     (c)  Guarantees   constituting   Indebtedness  permitted  by  Section  7.1;
                                                                    -----------

     (d) repurchase  Senior Notes (to the extent  permitted by the Indenture and
applicable   securities   laws)  for  aggregate   consideration   not  exceeding
$50,000,000  in any calendar  year,  so long as,  before and after giving effect
thereto,  the Borrower shall be in compliance  with the financial  covenants set
forth in Article VI and no other Default or Event of Default shall have occurred
and be continuing at the time such repurchase is effected;

     (e)  Investments  made by the Borrower in or to any  Subsidiary  and by any
Subsidiary to the Borrower or in or to another  Subsidiary;  provided,  that (i)
                                                             --------
the aggregate  amount of Investments by Loan Parties in or to, and Guarantees by
Loan  Parties  of  Indebtedness  of,  any  Subsidiary  that  is not a  Guarantor
(including all such  Investments  and Guarantees  existing on the Closing Date),
shall not exceed  $5,000,000 at any time  outstanding,  and (ii) any Acquisition
giving rise to any such Investment shall have been permitted pursuant to Section
                                                                         -------
7.10;
----

     (f) loans or  advances to  employees  and  officers of the  Borrower or any
Subsidiary  made in the ordinary course of business and not in excess of amounts
customarily  and  historically  loaned  or  advanced  by the  Borrower  to  such
employees and officers; provided, however, that the aggregate amount of all such
                        --------  -------
loans and advances does not exceed $2,500,000 at any time outstanding;

     (g) Hedging Obligations permitted by Section 7.11;
                                          ------------

     (h)  Investments  received in  settlement  of debt  created in the ordinary
course of business; and

     (i) extension of trade credit in the ordinary course of business;

     (j)  Investments  in assets  held under  non-qualified  plans and  deferred
compensation  arrangements for certain members of management and other employees
as  disclosed  from  time to time in the  notes to the  Borrower's  consolidated
financial  statements as filed by the Borrower with the  Securities and Exchange
Commission; and

     (k)  Investments not otherwise  permitted by the preceding  clauses of this
Section 7.4 in an  aggregate  amount not to exceed  $10,000,000  at any one time
-----------
outstanding.

     Section  7.5.  Restricted  Payments.  The  Borrower  will not, and will not
                    --------------------
permit its Subsidiaries  to, declare or make, or agree to pay or make,  directly
or indirectly,  any dividend or  distribution on any class of its capital stock,
partner or limited liability company interests, or other ownership interests, or
make any  payment  on  account  of, or set apart  assets  for a sinking or

                                       65
<PAGE>

other analogous fund for, the purchase,  redemption,  retirement,  defeasance or
other acquisition of, any shares of capital stock,  partner or limited liability
company interests, or other ownership interests, or Indebtedness subordinated to
the Obligations of the Borrower,  or any options,  warrants,  or other rights to
purchase such capital stock, partner or limited liability company interests,  or
other  ownership  interests,  or such  Indebtedness,  whether  now or  hereafter
outstanding  (each,  a  "Restricted  Payment"),  except  for (i)  dividends  and
distributions  payable  by the  Borrower  solely  in  shares of any class of its
common stock, (ii) Restricted Payments made by any Subsidiary to the Borrower or
to another  Subsidiary,  (iii) cash dividends paid on, and cash  redemptions of,
the common  stock of the  Borrower so long as,  before and after  giving  effect
thereto,  the Borrower shall be in compliance  with the financial  covenants set
forth in Article VI and no other Default or Event of Default shall have occurred
and be  continuing  at the time such  dividend is paid or redemption is made and
(iv) Restricted  Payments made in respect of restricted  stock and stock options
granted or to be granted under the employee  compensation  plans of the Borrower
described in  applicable  reports or other filings made by the Borrower with the
Securities and Exchange  Commission or as otherwise disclosed by the Borrower in
writing to the Lenders.

     Section 7.6. Sale of Assets. The Borrower will not, and will not permit any
                  --------------
of its  Subsidiaries  to, convey,  sell,  lease,  assign,  transfer or otherwise
dispose  of, any of its  assets,  business  or  property,  whether  now owned or
hereafter acquired, or, in the case of any Subsidiary,  issue or sell any shares
of such  Subsidiary's  common stock to any Person other than the Borrower or any
wholly-owned  Subsidiary of the Borrower (or to qualify directors if required by
applicable law), except:

     (a) the  sale or  other  disposition,  for  fair  market  value  and in the
ordinary course of business,  of obsolete or worn out property or other property
not necessary for operations of the Borrower and its Subsidiaries;

     (b) the sale of inventory and Permitted  Investments in the ordinary course
of business;

     (c) the sale or transfer of properties in accordance with Section 7.9; and
                                                               -----------

     (d) the sale or other  disposition  of other assets in an aggregate  amount
from the Closing Date to the Revolving Commitment Termination Date not to exceed
5% of the  consolidated  total  assets of the Borrower as of the last day of the
most recently ended Fiscal Year of the Borrower;  provided that if at the end of
                                                  --------
any Fiscal Year,  5% of the  consolidated  total assets of the Borrower for such
Fiscal Year is less than 5% of the consolidated total assets of the Borrower for
any preceding  Fiscal Year and the Borrower's  sales and  dispositions of assets
made from the  Closing  Date to such date  exceed 5% of the  consolidated  total
assets  of the  Borrower  for  such  Fiscal  Year  but do not  exceed  5% of the
consolidated  total assets of the Borrower for such  preceding  Fiscal Year, the
Borrower shall not be in violation of this Section 7.6(d).
                                           -------------

     Section 7.7. Transactions with Affiliates.  The Borrower will not, and will
                  ----------------------------
not permit any of its  Subsidiaries  to, sell,  lease or otherwise  transfer any
property or assets to, or purchase,  lease or otherwise  acquire any property or
assets from,  or otherwise  engage in any other  transactions  with,  any of its
Affiliates, except (i) in the ordinary course of business at prices

                                       66
<PAGE>

and on  terms  and  conditions  not  less  favorable  to the  Borrower  or  such
Subsidiary than could be obtained on an arm's-length  basis from unrelated third
parties,  (ii)  transactions  between or among the Borrower and its wholly owned
Subsidiaries not involving any other  Affiliates,  (iii) any Restricted  Payment
permitted  by  Section  7.5 and (iv) any  transaction  permitted  under  Section
                                                                         -------
7.4(e).
-----

     Section 7.8.  Restrictive  Agreements.  The Borrower will not, and will not
                   -----------------------
permit any Subsidiary to, directly or indirectly, enter into, incur or permit to
exist any agreement that prohibits,  restricts or imposes any condition upon (i)
the ability of the  Borrower or any  Subsidiary  to create,  incur or permit any
Lien  upon any of its  assets or  properties,  whether  now  owned or  hereafter
acquired,  or (ii) the  ability  of any  Subsidiary  to pay  dividends  or other
distributions  with respect to its capital stock,  partner or limited  liability
company  interests,  or other  ownership  interests,  to make or repay  loans or
advances to the Borrower or any other Subsidiary,  to Guarantee  Indebtedness of
the  Borrower or any other  Subsidiary,  or to transfer  any of its  property or
assets to the Borrower or any  Subsidiary  of the Borrower;  provided,  that the
foregoing shall not apply to (x) restrictions or conditions imposed by law or by
this Agreement,  the 364-Day Credit Agreement or the Indenture, (y) restrictions
or  conditions  imposed  by  any  agreement  relating  to  secured  Indebtedness
permitted by this Agreement if such  restrictions  and conditions  apply only to
the property or assets securing such Indebtedness,  and (z) customary provisions
in leases and other contracts restricting the assignment thereof.

     Section 7.9.  Sale and Leaseback  Transactions.  The Borrower will not, and
                   --------------------------------
will not permit any of the Subsidiaries to, enter into any arrangement, directly
or  indirectly,  whereby  it shall  sell or  transfer  any  properties,  real or
personal,  used or  useful in its  business,  whether  now owned or  hereinafter
acquired,  having market values in excess of $50,000,000  in the aggregate,  and
thereafter rent or lease such properties or portions  thereof that it intends to
use for  substantially  the same purpose or purposes as the  properties  sold or
transferred.

     Section 7.10. Acquisitions. The Borrower will not, and will not permit any
                   ------------
Subsidiary  to, make or effect any  Acquisitions  for a total  purchase price in
excess of $50,000,000 in the aggregate during any twelve (12) month period.  For
purposes  hereof,  any  purchase  price  shall be  determined  by the sum of the
following items paid, given, transferred or assumed or acquired in consideration
of such Acquisition:  (i) all cash, (ii) the principal amounts of all promissory
notes,   other  deferred  payment   obligations   given  as  a  portion  of  the
consideration  for such  Acquisition,  and all  Indebtedness  of the  Person  or
business acquired in such Acquisition that remains in effect as an obligation of
the Borrower or any Subsidiary  following such  Acquisition,  (iii) the value of
all capital stock,  partner or limited  liability company  interests,  and other
ownership interests, and (iv) the value of all other property (the value of such
stock and property to be as determined in good faith by the Borrower).

     Section  7.11.  Hedging  Transactions.  The Borrower will not, and will not
                     ---------------------
permit any of its  Subsidiaries  to, enter into any Hedging  Transaction,  other
than Hedging  Transactions  entered  into in the ordinary  course of business to
hedge or mitigate  risks to which the Borrower or any  Subsidiary  is exposed in
the management of its  liabilities  arising in the ordinary  course of business.
Solely for the  avoidance  of doubt,  the Borrower  acknowledges  that a Hedging
Transaction  entered into for  speculative  purposes or of a speculative  nature
(which  shall be deemed to  include  any  Hedging  Transaction  under  which the
Borrower or any of its

                                       67
<PAGE>

Subsidiaries is or may become obliged to make any payment (i) in connection with
the  purchase  by any third  party of any  capital  stock,  partner  or  limited
liability company interests or other ownership  interests,  or any Indebtedness,
of the Borrower or any Subsidiary,  or (ii) as a result of changes in the market
value of any such capital stock,  partner or limited liability company interests
or other ownership  interests,  or  Indebtedness)  is not a Hedging  Obligations
entered into in the ordinary course of business to hedge or mitigate such risks.

     Section 7.12.  Actions Relating to Indenture and Senior Notes. The Borrower
                    ----------------------------------------------
will not (i) amend, supplement,  or otherwise modify the Indenture or the Senior
Notes in any manner so as to increase the interest rate payable thereon, shorten
the maturity or the average life thereof,  or impose or modify any  restrictions
on the  Borrower of a type or in a manner,  taken as a whole with other  changes
effected by such amendment, more restrictive on, or otherwise less favorable to,
the Borrower, or (ii) repurchase, redeem, or otherwise acquire any of the Senior
Notes prior to the maturity thereof except as permitted by Section 7.4(d).
                                                           -------------

     Section  7.13.  Accounting  Changes.  The  Borrower  will not, and will not
                     -------------------
permit any Subsidiary to, make any significant change in accounting treatment or
reporting  practices,  except as required or  permitted  by GAAP,  or change the
Fiscal Year of the  Borrower or of any  Subsidiary,  except to change the fiscal
year of a Subsidiary to conform its Fiscal Year to that of the Borrower.

                                  ARTICLE VIII

                                EVENTS OF DEFAULT
                                -----------------

     Section 8.1.  Events of Default.  If any of the  following  events (each an
                   -----------------
"Event of Default") shall occur:
-----------------

     (a) the  Borrower  shall  fail to pay any  principal  of any Loan or of any
reimbursement  obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed
for prepayment or otherwise; or

     (b) the  Borrower  shall fail to pay any interest on any Loan or any fee or
any other amount (other than an amount  payable under clause (a) of this Section
                                                                         -------
8.1) payable under this  Agreement or any other Loan  Document,  within five (5)
---
Business Days after the same shall have become due and payable; or

     (c) any  representation  or warranty made or deemed made by or on behalf of
the Borrower or any  Subsidiary in or in connection  with this  Agreement or any
other Loan Document (including the Schedules attached hereto) and any amendments
or modifications  hereof or waivers  hereunder,  or in any certificate,  report,
financial  statement or other document submitted to the Administrative  Agent or
the Lenders by any Loan Party or any  representative  of any Loan Party pursuant
to or in connection with this Agreement or any other Loan Document,  shall prove
to be incorrect in any material  respect when made or deemed made or  submitted;
or

<PAGE>

                                     68

     (d) the Borrower shall fail to observe or perform any covenant or agreement
contained  in  Sections  5.1,  5.2,  or 5.3 (with  respect  to any Loan  Party's
               -------------   ---      ---
existence), 6.1, 6.2, 6.4, and 6.5 or Article VII; or
            ---  ---  ---      ---

     (e) any Loan  Party  shall  fail to observe  or  perform  any  covenant  or
agreement  contained in this Agreement  (other than those referred to in clauses
(a),  (b) and (d)  above) or any other Loan  Document,  and such  failure  shall
remain  unremedied  for 30 days  after the  earlier  of (i) any  officer  of the
Borrower  becomes aware of such failure,  or (ii) notice thereof shall have been
given to the Borrower by the Administrative Agent or any Lender; or

     (f) the  Borrower  or any  Subsidiary  (whether  as  primary  obligor or as
guarantor or otherwise shall fail to pay any principal of or premium or interest
on any Material  Indebtedness  that is  outstanding,  when and as the same shall
become due and payable  (whether at  scheduled  maturity,  required  prepayment,
acceleration,  demand or  otherwise),  and such failure shall continue after the
applicable  grace  period,  if any,  specified in the  agreement  or  instrument
evidencing  or governing  such  Indebtedness;  or any other event shall occur or
condition  shall  exist  under any  agreement  or  instrument  relating  to such
Indebtedness  and shall  continue  after the  applicable  grace period,  if any,
specified  in such  agreement  or  instrument,  if the  effect of such  event or
condition is to accelerate,  or permit the acceleration of, the maturity of such
Indebtedness;  or any such Indebtedness  shall be declared to be due and payable
or  required to be prepaid or  redeemed  (other  than by a  regularly  scheduled
required  prepayment  or  redemption),  purchased or  defeased,  or any offer to
prepay,  redeem,  purchase or defease such Indebtedness  shall be required to be
made, in each case prior to the stated maturity thereof; or

     (g) the Borrower or any  Subsidiary  shall (i) commence a voluntary case or
other proceeding or file any petition  seeking  liquidation,  reorganization  or
other relief under any federal, state or foreign bankruptcy, insolvency or other
similar  law  now or  hereafter  in  effect  or  seeking  the  appointment  of a
custodian,  trustee, receiver, liquidator or other similar official of it or any
substantial part of its property, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described
in  clause  (i) of this  subsection  (g),  (iii)  apply  for or  consent  to the
appointment  of a custodian,  trustee,  receiver,  liquidator  or other  similar
official for the Borrower or any such  Subsidiary or for a  substantial  part of
its  property,  (iv) file an answer  admitting  the  material  allegations  of a
petition filed against it in any such proceeding,  (v) make a general assignment
for the  benefit  of  creditors,  or (vi) take any  action  for the  purpose  of
effecting any of the foregoing; or

     (h) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed  seeking  (i)  liquidation,  reorganization  or other  relief  in
respect of the Borrower or any Subsidiary or its debts, or any substantial  part
of its property,  under any federal, state or foreign bankruptcy,  insolvency or
other  similar law now or  hereafter  in effect,  or (ii) the  appointment  of a
custodian,  trustee,  receiver,  liquidator  or other  similar  official for the
Borrower or any Subsidiary or for a substantial part of its property, and in any
such case, such proceeding or petition shall remain  undismissed for a period of
60 days or an order or decree  approving or ordering any of the foregoing  shall
be entered; or

     (i) the Borrower or any Subsidiary  shall become unable to pay, shall admit
in writing its  inability  to pay, or shall fail  generally to pay, its debts as
they become due; or

                                       69
<PAGE>

     (j) an ERISA Event shall have occurred that, in the opinion of the Required
Lenders,  when taken  together  with other ERISA Events that have  occurred,  is
reasonably likely to result in liability to the Borrower and the Subsidiaries in
an aggregate amount exceeding $10,000,000; or

     (k) any judgment or order for the payment of money in excess of $10,000,000
in the  aggregate  (other than the  Shareholder  Settlements)  shall be rendered
against the Borrower or any Subsidiary,  and either (i) enforcement  proceedings
shall have been  commenced by any creditor upon such judgment or order,  or (ii)
there shall be a period of more than 30 consecutive  days during which a stay of
enforcement  of such  judgment  or  order,  by  reason  of a  pending  appeal or
otherwise, shall not be in effect; or

     (l) any  non-monetary  judgment  or order  shall be  rendered  against  the
Borrower or any Subsidiary that is reasonably  likely to have a Material Adverse
Effect,  and there  shall be a period of more than 30  consecutive  days  during
which a stay of  enforcement  of such judgment or order,  by reason of a pending
appeal or otherwise, shall not be in effect; or

     (m) a Change in Control shall occur or exist; or

     (n) any provision of the Guaranty  Agreement  shall for any reason cease to
be valid and binding on, or enforceable against, any Guarantor, or any Guarantor
shall so  state  in  writing,  or any  Guarantor  shall  seek to  terminate  its
obligations under the Guaranty Agreement; or

     (o) the Shareholder Settlements shall exceed $165,000,000 in the aggregate,
or the amounts  required to be paid pursuant to any  settlement  arrangement(s),
judgment(s), decree(s), or order(s) agreed by or entered against the Borrower in
respect of the SEC Investigation shall exceed $15,000,000 in the aggregate; or

     (p) an "Event of  Default"  shall  occur  under any other Loan  Document or
under the 364-Day Credit Agreement;

then,  and in every such event (other than an event with respect to the Borrower
described in subsections  (g) or (h) of this Section) and at any time thereafter
during the continuance of such event, the Administrative Agent may, and upon the
written request of the Required  Lenders shall, by notice to the Borrower,  take
any or all of the  following  actions,  at the  same  or  different  times:  (i)
terminate  the  Commitments,  whereupon  the  Commitment  of each  Lender  shall
terminate immediately; (ii) declare the principal of and any accrued interest on
the Loans, and all other Obligations owing hereunder,  to be, whereupon the same
shall become due and payable immediately,  without presentment,  demand, protest
or other  notice of any kind,  all of which are hereby  waived by the  Borrower;
(iii)  exercise all  remedies  contained  in any other Loan  Document;  and (iv)
exercise any other remedies available at law or in equity; and that, if an Event
of Default  specified in either  subsections  (g) or (h) of this  Section  shall
occur  with  respect  to  the  Borrower,  the  Commitments  shall  automatically
terminate and the principal of the Loans then outstanding, together with accrued
interest thereon,  and all fees and other Obligations shall automatically become
due and payable,  without  presentment,  demand,  protest or other notice of any
kind, all of which are hereby waived by the Borrower.  Notwithstanding  anything
in this

                                       70
<PAGE>

Agreement or the other Loan Documents to the contrary,  all payments received as
proceeds  hereunder or under any other Loan  Document,  or any part thereof,  as
well as any and all amounts  realized in connection  with the enforcement of any
right or remedy under or with respect to any Loan Document,  shall be applied by
the Administrative Agent as follows: first, to the payment
                                     -----

of all necessary  expenses  incident to the execution of any remedies  under any
Loan Document,  including  reasonable  attorneys' fees as provided herein and in
the other Loan  Documents,  appraisal  fees,  title search fees and  foreclosure
notice  costs;   second,   to  all  fees  and   reimbursable   expenses  of  the
                 ------
Administrative  Agent and the Collateral  Agent then due and payable pursuant to
any of the Loan Documents;  third, to all fees and reimbursable  expenses of the
                            -----
Lenders  and the Issuing  Bank then due and payable  pursuant to any of the Loan
Documents,  made pro rata to the  Lenders  and the  Issuing  Bank based on their
respective  Pro Rata Share of such fees and expenses;  fourth,  to interest then
                                                       ------
due and  payable  on the  Loans,  made  pro rata to the  Lenders  based on their
respective  Pro Rata  Shares of the  Loans;  fifth,  to  principal  then due and
                                             -----
payable on the Loans,  unreimbursed LC Disbursements  and amounts due in respect
of cash  collateral  required to be  maintained  for undrawn  amounts  under any
Letters of Credit  issued and  outstanding,  made pro rata to the  Lenders,  the
Administrative  Agent and the Issuing  Bank based on their  respective  Pro Rata
Shares of the Loans,  unreimbursed  LC  Disbursements  and such cash  collateral
amounts;  and sixth,  to the  payment of any amounts  then due and payable  with
              -----
respect to any Hedging  Obligations  and any other  amounts then included in the
Obligations as provided herein, and the remainder,  if any, shall be paid to the
Borrower  or such  other  persons  as may be  entitled  thereto  by  law,  after
deducting therefrom the cost of ascertaining their identity;  provided that, all
                                                              --------
such  payments  received  by the  Collateral  Agent in respect of the  Mortgaged
Properties  shall be applied on a pro rata basis  between the Related  Revolving
Credit Facilities.

                                   ARTICLE IX

                            THE ADMINISTRATIVE AGENT
                            ------------------------

     Section 9.1. Appointment of Administrative Agent; Status of Issuing Bank.
                  -----------------------------------------------------------

     (a) Each of the Lenders and the Issuing Bank irrevocably  appoints SunTrust
Bank as the  Administrative  Agent (it being  understood  and  agreed  that each
reference  in this  Article IX to the  Administrative  Agent  shall be deemed to
include the  Collateral  Agent) and  authorizes  it to take such  actions on its
behalf and to exercise such powers as are delegated to the Administrative  Agent
under  this  Agreement  and the other  Loan  Documents,  together  with all such
actions and powers that are reasonably  incidental  thereto.  The Administrative
Agent may perform any of its duties  hereunder or under the other Loan Documents
by or through any one or more sub-agents or  attorneys-in-fact  appointed by the
Administrative  Agent.  The  Administrative  Agent  and any  such  sub-agent  or
attorney-in-fact  may perform any and all of its duties and  exercise its rights
and powers through their respective Related Parties. The exculpatory  provisions
set forth in this Article shall apply to any such sub-agent or  attorney-in-fact
and the Related Parties of the Administrative  Agent, any such sub-agent and any
such  attorney-in-fact  and  shall  apply  to  their  respective  activities  in
connection with the syndication of the credit facilities  provided for herein as
well as activities as Administrative Agent.

                                       71
<PAGE>

     (b) The Issuing Bank shall act on behalf of the Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith until such
time and except for so long as the Administrative Agent may agree at the request
of the  Required  Lenders  to act for the  Issuing  Bank with  respect  thereto;
provided,  that the Issuing Bank shall have all the benefits and  immunities (i)
provided to the Administrative Agent in this Article IX with respect to any acts
taken or omissions  suffered by the Issuing Bank in  connection  with Letters of
Credit  issued by it or  proposed  to be issued by it and the  applications  and
agreements  pertaining  to the  Letters  of Credit  as fully as though  the term
"Administrative Agent" as used in this Article IX included the Issuing Bank with
respect to such acts or  omissions,  and (ii) as  additionally  provided in this
Agreement with respect to the Issuing Bank.

     Section 9.2. Nature of Duties of Administrative  Agent. The  Administrative
                  -----------------------------------------
Agent shall not have any duties or obligations  except those expressly set forth
in this Agreement and the other Loan Documents.  Without limiting the generality
of the  foregoing,  (i) the  Administrative  Agent  shall not be  subject to any
fiduciary or other implied  duties,  regardless of whether a Default or an Event
of Default has occurred and is continuing,  (ii) the Administrative  Agent shall
not have any duty to take any discretionary action or exercise any discretionary
powers,  except those discretionary rights and powers expressly  contemplated by
the Loan  Documents  that the  Administrative  Agent is  required to exercise in
writing by the  Required  Lenders  (or such other  number or  percentage  of the
Lenders as shall be  necessary  under the  circumstances  as provided in Section
                                                                         -------
10.2),  and (iii)  except as  expressly  set  forth in the Loan  Documents,  the
----
Administrative  Agent  shall  not have any duty to  disclose,  and  shall not be
liable for the failure to disclose,  any information relating to the Borrower or
any  of  its   Subsidiaries   that  is   communicated  to  or  obtained  by  the
Administrative   Agent  or  any  of  its   Affiliates  in  any   capacity.   The
Administrative  Agent  shall not be liable for any action  taken or not taken by
it, its  sub-agents or  attorneys-in-fact  with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be  necessary  under the  circumstances  as provided in Section  10.2) or in the
                                                        -------------
absence of its own gross negligence or willful  misconduct.  The  Administrative
Agent  shall  not  be  responsible  for  the  negligence  or  misconduct  of any
sub-agents  or  attorneys-in-fact  selected  by it  with  reasonable  care.  The
Administrative  Agent  shall not be deemed to have  knowledge  of any Default or
Event of Default  unless and until written  notice  thereof  (which notice shall
expressly state that it is a notice of Default or Event of Default arising under
this  Agreement),  is given to the  Administrative  Agent by the Borrower or any
Lender,  and the  Administrative  Agent shall not be responsible for or have any
duty to ascertain or inquire into (A) any statement,  warranty or representation
made in or in  connection  with  any  Loan  Document,  (B) the  contents  of any
certificate,  report or other document  delivered  hereunder or thereunder or in
connection  herewith or therewith,  (C) the  performance or observance of any of
the covenants,  agreements,  or other terms and conditions set forth in any Loan
Document, (D) the validity, enforceability,  effectiveness or genuineness of any
Loan  Document  or any  other  agreement,  instrument  or  document,  or (E) the
satisfaction  of any condition set forth in Article III or elsewhere in any Loan
Document,  other  than to  confirm  receipt of items  expressly  required  to be
delivered to the Administrative Agent.

     Section  9.3.  Lack of Reliance on the  Administrative  Agent.  Each of the
                    ----------------------------------------------
Lenders,  the Swingline  Lender and the Issuing Bank  acknowledges  that it has,
independently  and without reliance upon the  Administrative  Agent or any other
Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and

                                       72
<PAGE>

decision to enter into this Agreement. Each of the Lenders, the Swingline Lender
and the Issuing Bank also acknowledges  that it will,  independently and without
reliance  upon the  Administrative  Agent or any other  Lender and based on such
documents and information as it has deemed appropriate, continue to make its own
decisions  in  taking  or not  taking  of any  action  under  or  based  on this
Agreement,  any  related  agreement  or  any  document  furnished  hereunder  or
thereunder. Each Lender represents to each other party hereto that it is a bank,
savings and loan  association  or other similar  savings or thrift  institution,
insurance company, investment fund or company, or other financial institution or
lending company that makes or acquires  commercial  loans in the ordinary course
of its business and that it is  participating  hereunder as a Lender for its own
account  (but  subject to its rights to direct the  disposition  of its  assets,
including,  without limitation,  assignments and sales of participation interest
in the  Loans  and its  Commitment  as  contemplated  hereunder),  and for  such
commercial  purposes,  and that it has the knowledge and experience to be and is
capable of evaluating the merits and risks of being a Lender hereunder.

     Section  9.4.   Certain  Rights  of  the   Administrative   Agent.  If  the
                     -------------------------------------------------
Administrative  Agent shall request  instructions from the Required Lenders with
respect to any action or actions  (including  the failure to act) in  connection
with this Agreement,  the Administrative Agent shall be entitled to refrain from
such  act  or  taking  such  act,  unless  and  until  it  shall  have  received
instructions  from such Lenders;  and the  Administrative  Agent shall not incur
liability  to any  Person by  reason  of so  refraining.  Without  limiting  the
foregoing,  no Lender  shall  have any right of action  whatsoever  against  the
Administrative  Agent  as  a  result  of  the  Administrative  Agent  acting  or
refraining  from acting  hereunder in accordance  with the  instructions  of the
Required Lenders where required by the terms of this Agreement.

     Section 9.5. Reliance by  Administrative  Agent. The  Administrative  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  believed by it to be genuine and to have been signed,  sent or
made by the  proper  Person.  The  Administrative  Agent  may also rely upon any
statement made to it orally or by telephone and believed by it to be made by the
proper  Person  and shall  not incur any  liability  for  relying  thereon.  The
Administrative  Agent may consult with legal counsel  (including counsel for the
Borrower),  independent  public 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 such counsel, accountants or experts.

     Section 9.6.  The  Administrative  Agent in its  Individual  Capacity.  The
                   -------------------------------------------------------
Person serving as the Administrative Agent shall have the same rights and powers
under this  Agreement and any other Loan Document in its capacity as a Lender as
any other Lender and may exercise or refrain from  exercising the same as though
it were  not  the  Administrative  Agent;  and the  terms  "Lenders",  "Required
Lenders",  "holders of Notes",  or any similar  terms shall,  unless the context
clearly otherwise indicates, include the Administrative Agent in its capacity as
one of such Lenders or holders.  The Person acting as the  Administrative  Agent
and its Affiliates may accept deposits from, lend money to, and generally engage
in any kind of business with the Borrower or any  Subsidiary or Affiliate of the
Borrower as if it were not the Administrative Agent hereunder.

                                       73
<PAGE>

     Section 9.7. Successor Administrative Agent.
                  ------------------------------

     (a) The  Administrative  Agent  may  resign  at any time by  giving  notice
thereof to the Lenders and the Borrower. Upon any such resignation, the Required
Lenders  shall  have the right to  appoint  a  successor  Administrative  Agent,
subject to the  approval by the  Borrower  provided  that no Default or Event of
Default  shall exist at such time.  If no successor  Administrative  Agent shall
have been so appointed,  and shall have accepted such appointment within 30 days
after the retiring  Administrative  Agent gives notice of resignation,  then the
retiring  Administrative  Agent may,  on behalf of the  Lenders  and the Issuing
Bank, appoint a successor Administrative Agent, which shall be a commercial bank
organized under the laws of the United States of America or any state thereof or
a bank which maintains an office in the United States, having a combined capital
and surplus of at least $500,000,000.

     (b) Upon the  acceptance of its  appointment  as the  Administrative  Agent
hereunder by a successor,  such successor  Administrative  Agent shall thereupon
succeed to and become vested with all the rights, powers,  privileges and duties
of the retiring  Administrative  Agent,  and the retiring  Administrative  Agent
shall be discharged from its duties and obligations under this Agreement and the
other Loan  Documents.  If within 45 days after  written  notice is given of the
retiring  Administrative Agent's resignation under this Section 9.7 no successor
                                                        -----------
Administrative  Agent shall have been  appointed  and shall have  accepted  such
appointment,  then on such  45th  day (i) the  retiring  Administrative  Agent's
resignation shall become effective, (ii) the retiring Administrative Agent shall
thereupon  be  discharged  from  its  duties  and  obligations  under  the  Loan
Documents, and (iii) the Required Lenders shall thereafter perform all duties of
the retiring  Administrative  Agent under the Loan Documents  until such time as
the Required Lenders appoint a successor Administrative Agent as provided above.
After any retiring Administrative Agent's resignation hereunder,  the provisions
of this  Article IX shall  continue in effect for the  benefit of such  retiring
Administrative  Agent  and its  representatives  and  agents in  respect  of any
actions  taken  or not  taken  by any  of  them  while  it  was  serving  as the
Administrative Agent.

                                   ARTICLE X

                                  MISCELLANEOUS
                                  -------------

     Section 10.1. Notices.
                   -------

     (a)  Except  in the case of  notices  and  other  communications  expressly
permitted to be given by telephone,  all notices and other communications to any
party herein to be effective  shall be in writing and shall be delivered by hand
or overnight courier service,  mailed by certified or registered mail or sent by
telecopy, as follows:

To the Borrower:                   Dollar General Corporation
                                   100 Mission Ridge
                                   Goodlettsville, Tennessee  37072
                                   Attention:        Wade Smith
                                   Telecopy Number:  (615) 855-4973

                                       74
<PAGE>

To the Administrative Agent        SunTrust Bank
or Swingline Lender:               303 Peachtree Street, N. E.
                                   Atlanta, Georgia 30308
                                   Attention: Agency Services
                                   Telecopy Number:  (404) 724-3879

With copies to:                    SunTrust Capital Markets, Inc.
                                   303 Peachtree Street, N. E., 24th Floor
                                   Atlanta, Georgia 30308
                                   Attention:  Jeff Titus
                                   Telecopy Number:  (404) 827-6514

                                   SunTrust Bank
                                   201 Fourth Avenue North
                                   3rd Floor
                                   Nashville, Tennessee  37219
                                   Attention:  Scott Corley
                                   Telecopy Number:  (615) 748-5269

To the Issuing Bank:               SunTrust Bank
                                   25 Park Place
                                   Atlanta, Georgia 30303
                                   Attention:  Mr. Michael Sullivan
                                   Telecopy Number:  (404) 588-8129

To any other Lender:               the address set forth in the Administrative
                                   Questionnaire

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All such notices
and other  communications  shall,  when  transmitted by overnight  delivery,  or
faxed,  be effective  when  delivered  for  overnight  (next-day)  delivery,  or
transmitted in legible form by facsimile  machine,  respectively,  or if mailed,
upon  the  third  Business  Day  after  the date  deposited  into the mail or if
delivered, upon delivery; provided, that notices delivered to the Administrative
                          --------
Agent, or the Issuing Bank or the Swingline  Lender shall not be effective until
actually received by such Person at its address specified in this Section 10.1.
                                                                  ------------

     (b) Any  agreement of the  Administrative  Agent and the Lenders  herein to
receive  certain notices by telephone or facsimile is solely for the convenience
and at the request of the  Borrower.  The  Administrative  Agent and the Lenders
shall  be  entitled  to  rely in  good  faith  on the  authority  of any  Person
purporting to be a Person authorized by the Borrower to give such notice and the
Administrative Agent and Lenders shall not have any liability to the Borrower or
other Person on account of any action  taken or not taken by the  Administrative
Agent or the Lenders in good faith  reliance  upon such  telephonic or facsimile
notice. The obligation of the Borrower to repay the Loans, LC Disbursements, and
all  other  Obligations  hereunder  shall not be  affected  in any way or to any
extent by any  failure of the  Administrative  Agent and the  Lenders to receive
written confirmation of any telephonic or facsimile notice.

                                       75
<PAGE>

     Section 10.2. Waiver; Amendments.
                   ------------------

     (a) No failure or delay by the  Administrative  Agent,  the Issuing Bank or
any  Lender  in  exercising  any  right or power  hereunder  or any  other  Loan
Document,  and no course of dealing between the Borrower and the  Administrative
Agent or any Lender,  shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power or any abandonment or discontinuance
of steps to enforce such right or power,  preclude any other or further exercise
thereof or the exercise of any other right or power hereunder or thereunder. The
rights and  remedies  of the  Administrative  Agent,  the  Issuing  Bank and the
Lenders  hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies  provided by law. No waiver of any provision
of this  Agreement or any other Loan Document or consent to any departure by the
Borrower  therefrom  shall in any event be  effective  unless  the same shall be
permitted by  subsection  (b) of this  Section,  and then such waiver or consent
shall be effective  only in the specific  instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
the  issuance of a Letter of Credit  shall not be  construed  as a waiver of any
Default or Event of Default, regardless of whether the Administrative Agent, any
Lender or the Issuing  Bank may have had notice or  knowledge of such Default or
Event of Default at the time.

     (b) No amendment or waiver of any provision of this  Agreement or the other
Loan Documents, nor consent to any departure by the Borrower therefrom, shall in
any event be  effective  unless the same  shall be in writing  and signed by the
Borrower and the Required Lenders or the Borrower and the  Administrative  Agent
with the consent of the Required  Lenders and then such waiver or consent  shall
be  effective  only in the specific  instance  and for the specific  purpose for
which  given;  provided,  that no amendment  or waiver  shall:  (i) increase the
               --------
Commitment of any Lender without the written consent of such Lender, (ii) reduce
the principal  amount of any Loan or obligation  to pay any LC  Disbursement  or
reduce  the rate of  interest  thereon,  or reduce any fees  payable  hereunder,
without the written consent of each Lender affected thereby,  (iii) postpone the
date fixed for any  scheduled  payment of any  principal of, or interest on, any
Loan or LC Disbursement or interest  thereon or any fees hereunder or reduce the
amount of, waive or excuse any such scheduled payment, or postpone the scheduled
date for the  termination  or reduction of any  Commitment,  without the written
consent of each Lender affected thereby,  (iv) change Section 2.21 (b) or (c) in
                                                      ---------------      -
a manner that would alter the pro rata  sharing of  payments  required  thereby,
without the written consent of each Lender,  (v) change any of the provisions of
this  Section or the  definition  of "Required  Lenders" or any other  provision
hereof  specifying the number or percentage of Lenders required to waive,  amend
or modify any rights  hereunder or make any  determination  or grant any consent
hereunder,  without the consent of each Lender,  (vi)  release any  Guarantor or
limit the liability of any such Guarantor under the Guaranty Agreement,  without
the written  consent of each  Lender,  or (vii)  release all or any  substantial
portion of the Collateral  without the written consent of each Lender;  provided
                                                                        --------
further,  that no such  amendment  or waiver  shall  amend,  modify or otherwise
affect the  rights,  duties or  obligations  of the  Administrative  Agent,  the
Swingline  Lender or the Issuing Bank without the prior written  consent of such
Person.

                                       76
<PAGE>

Section 10.3.     Expenses; Indemnification.
                  -------------------------

     (a) The  Borrower  shall pay (i) all  reasonable,  out-of-pocket  costs and
expenses  of  the  Administrative  Agent  and  its  Affiliates,   including  the
reasonable fees,  charges and disbursements of a single firm of primary counsel,
the local counsel referred to in Section 3.1(b)(xv), and all other local counsel
                                 -----------------
as  the  Administrative  Agent  may  reasonably  deem  necessary,   and  of  the
Administrative  Agent and its Affiliates,  in connection with the syndication of
the credit facilities provided for herein, the preparation and administration of
the Loan Documents and any amendments, modifications or waivers thereof (whether
or not  the  transactions  contemplated  in this  Agreement  or any  other  Loan
Document  shall be  consummated),  (ii) all  reasonable  out-of-pocket  expenses
incurred by the Issuing Bank in connection with the issuance, amendment, renewal
or extension of any Letter of Credit or any demand for payment  thereunder,  and
(iii) all  reasonable  out-of-pocket  costs  and  expenses  (including,  without
limitation,  the reasonable fees,  charges and  disbursements of outside counsel
and the allocated cost of inside counsel) incurred by the Administrative  Agent,
the Issuing Bank or after the occurrence and during the continuance of any Event
of Default,  any Lender in connection  with the enforcement or protection of its
rights in  connection  with this  Agreement,  including  its  rights  under this
Section,  or in  connection  with the Loans made or any Letters of Credit issued
hereunder,  including  all  such  out-of-pocket  expenses  incurred  during  any
workout,  restructuring  or  negotiations in respect of such Loans or Letters of
Credit.

     (b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank
and each  Lender,  and each  Related  Party of any of the  foregoing  (each,  an
"Indemnitee")  against,  and hold each of them harmless from, any and all costs,
losses, liabilities,  claims, damages and related expenses,  including the fees,
charges  and  disbursements  of any  counsel  for any  Indemnitee,  which may be
incurred by or asserted  against any  Indemnitee  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 other agreement or instrument contemplated hereby or
thereby,  the performance by the parties hereto of their respective  obligations
hereunder  or  thereunder  or  the  consummation  of  any  of  the  transactions
contemplated hereby or thereby,  (ii) any Loan or Letter of Credit or any actual
or proposed use of the proceeds therefrom  (including any refusal by the Issuing
Bank to honor a demand  for  payment  under a Letter of Credit if the  documents
presented in connection  with such demand do not strictly  comply with the terms
of such  Letter of Credit),  (iii) any actual or alleged  presence or release of
Hazardous  Materials  on or from  any  property  owned  by the  Borrower  or any
Subsidiary or any Environmental  Liability related in any way to the Borrower or
any  Subsidiary,   and  (iv)  any  actual  or  prospective  claim,   litigation,
investigation or proceeding  relating to any of the foregoing,  whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto;  provided,  that the Borrower shall not be obligated to indemnify
any Indemnitee for any of the foregoing arising out of such  Indemnitee's  gross
negligence  or  willful  misconduct  as  determined  by  a  court  of  competent
jurisdiction in a final and nonappealable judgment.

     (c) The Borrower shall pay, and hold the Administrative  Agent, the Issuing
Bank, and each of the Lenders harmless from and against, any and all present and
future  stamp,  documentary,  and  other  similar  taxes  with  respect  to this
Agreement and any other Loan Documents, any collateral described therein, or any
payments due thereunder,  and save the

                                       78
<PAGE>

Administrative  Agent,  the  Issuing  Bank,  and each Lender  harmless  from and
against any and all  liabilities  with respect to or resulting from any delay or
omission to pay such taxes.

     (d) To the extent that the Borrower fails to pay any amount  required to be
paid to the Administrative Agent, the Issuing Bank or the Swingline Lender under
subsections  (a), (b) or (c) hereof,  each Lender severally agrees to pay to the
Administrative  Agent, the Issuing Bank or the Swingline Lender, as the case may
be,  such  Lender's  Pro  Rata  Share  (determined  as  of  the  time  that  the
unreimbursed  expense or  indemnity  payment is sought) of such  unpaid  amount;
provided,  that the unreimbursed expense or indemnified payment,  claim, damage,
--------
liability  or related  expense,  as the case may be, was incurred by or asserted
against the  Administrative  Agent,  the Issuing Bank or the Swingline Lender in
its capacity as such.

     (e) To the extent  permitted by  applicable  law,  the  Borrower  shall not
assert,  and hereby waives,  any claim against any Indemnitee,  on any theory of
liability, for special, indirect,  consequential or punitive damages (as opposed
to actual or direct  damages)  arising out of, in connection with or as a result
of, this  Agreement or any  agreement or  instrument  contemplated  hereby,  the
transactions  contemplated  therein, any Loan or any Letter of Credit or the use
of proceeds thereof.

     (f) All  amounts due under this  Section  shall be payable  promptly  after
written demand therefor.

     Section 10.4. 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 the Borrower may not assign or otherwise transfer
any of its rights or obligations  hereunder without the prior written consent of
each Lender (and any attempted  assignment  or transfer by the Borrower  without
such consent 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 and, to the
extent  expressly  contemplated  hereby,  the  Related  Parties  of  each of the
Administrative  Agent and the Lenders) any legal or equitable  right,  remedy or
claim under or by reason of this Agreement.

     (b) Any  Lender  may  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 and the Loans at the time owing to it);  provided that
                                                                   --------
(i) except in the case of an  assignment of the entire  remaining  amount of the
assigning  Lender's  Commitment  and the Loans at the time owing to it or in the
case of an assignment to a Lender,  an Affiliate of a Lender or an Approved Fund
with respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans  outstanding  thereunder) of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative  Agent) shall
be an amount which, is not less than  $1,000,000 and in an integral  multiple of
$1,000,000,  unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is  continuing,  the Borrower  otherwise  consent (such
consent of the Borrower not to be unreasonably  withheld or delayed),  (ii) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning  Lender's rights and obligations

                                       79
<PAGE>

under this Agreement with respect to the Loan or the  Commitment  assigned,  and
(iii)  the  parties  to  each  assignment  shall  execute  and  deliver  to  the
Administrative  Agent an Assignment and  Acceptance,  together with a processing
and recordation fee of $1,000, and the Eligible  Assignee,  if it shall not be a
Lender,   shall   deliver  to  the   Administrative   Agent  an   Administrative
Questionnaire. Subject to acceptance and recording thereof by the Administrative
Agent pursuant to subsection  (c) of this Section,  from and after the effective
date  specified  in  each  Assignment  and  Acceptance,  the  Eligible  Assignee
thereunder  shall be a party hereto and, to the extent of the interest  assigned
by such Assignment and  Acceptance,  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 Acceptance, be released from its
obligations  under  this  Agreement  (and,  in the  case  of an  Assignment  and
Acceptance  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  2.18,  2.20,  2.21 and 10.3.  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 subsection (d) of this Section.

     (c) The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at one of its offices in Atlanta, Georgia a copy of
each  Assignment  and  Acceptance  delivered  to  it  and  a  register  for  the
recordation of the names and addresses of the Lenders,  and the  Commitments of,
and  principal  amount 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, and the Borrower, 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) Any  Lender  may,  without  the  consent  of, or prior  notice  to, the
Borrower,  the  Administrative  Agent,  the Issuing Bank or the Swingline Lender
sell  participations to one or more banks or other entities (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 (i) such Lender's  obligations  under this Agreement  shall remain
--------
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the  performance  of such  obligations  and (iii) the  Borrower,  the
Administrative  Agent,  the Issuing  Bank,  the  Swingline  Lender and the other
Lenders  shall  continue  to deal  solely  and  directly  with  such  Lender  in
connection with such Lender's rights and obligations  under this Agreement.  Any
agreement or  instrument  pursuant to which a Lender sells such a  participation
shall  provide  that such  Lender  shall  retain the sole right to enforce  this
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,  modification  or waiver with respect to the  following to the extent
affecting such  Participant:  (i) increase the Commitment of such Lender without
the written consent of such Lender, (ii) reduce the principal amount of any Loan
or LC  Disbursement or reduce the rate of interest  thereon,  or reduce any fees
payable  hereunder,  without  the  written  consent of such  Lender if  affected
thereby,  (iii)  postpone the date fixed for any payment of any principal of, or

                                       80
<PAGE>

interest  on,  any  Loan or LC  Disbursement  or  interest  thereon  or any fees
hereunder or reduce the amount of, waive or excuse any such payment, or postpone
the scheduled date for the termination or reduction of any  Commitment,  without
the  written  consent of such Lender if affected  thereby,  (iv) change  Section
2.21(b) or (c) in a manner  that would  alter the pro rata  sharing of  payments
------      -
required thereby,  without the written consent of each Lender, (v) change any of
the  provisions of this Section or the  definition of "Required  Lenders" or any
other provision hereof  specifying the number or percentage of Lenders which are
required  to  waive,   amend  or  modify  any  rights   hereunder  or  make  any
determination  or grant any consent  hereunder,  (vi)  release any  Guarantor or
limit the liability of any such Guarantor under the Guaranty  Agreement  without
the  written  consent  of such  Lender  except to the  extent  such  release  is
expressly provided under the terms of the Guaranty  Agreement,  or (vii) release
all or  substantially  all collateral (if any) securing any of the  Obligations.
Subject  to  subsection  (e) of this  Section,  the  Borrower  agrees  that each
Participant  shall be entitled to the benefits of Sections 2.16,  2.17, and 2.18
                                                  -------------   ----      ----
to the same  extent as if it were a Lender  and had  acquired  its  interest  by
assignment  pursuant to subsection (b) of this Section.  To the extent permitted
by law, each  Participant also shall be entitled to the benefits of Section 10.7
                                                                    ------------
as though it were a Lender,  provided such  Participant  agrees to be subject to
Section 10.7 as though it were a Lender.
------------

     (e) A  Participant  shall not be entitled  to receive  any greater  payment
under  Section 2.18 or Section 2.20 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 Non-U.S.  Lender
if it were a Lender shall not be entitled to the benefits of Section 2.20 unless
                                                             ------------
the Borrower is notified of the participation  sold to such Participant and such
Participant  agrees,  for the benefit of the  Borrower,  to comply with  Section
                                                                         -------
2.20(e) as though it were a Lender.
------

     (f) Any Lender may at any time pledge or assign a security  interest in all
or any portion of its rights under this Agreement to secure  obligations of such
Lender,  including  without  limitation  any  pledge  or  assignment  to  secure
obligations  to a  Federal  Reserve  Bank;  provided  that  no  such  pledge  or
                                            --------
assignment  of a  security  interest  shall  release  a  Lender  from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

     (g)  Notwithstanding   anything  to  the  contrary  set  forth  herein,  no
assignment by any Lender to an Approved Fund shall relieve the assigning  Lender
of any of its  obligations  to fund  Loans or make  payments  in  respect of any
Letters of Credit under this  Agreement  if, for any reason,  such Approved Fund
fails to fund any such Loans or make any such payments, and the assigning Lender
(and not the  Approved  Fund)  shall have the sole right and  responsibility  to
deliver  all  consents,  waivers,  amendments,  and other  actions  required  or
requested under the terms of this Agreement with respect to its Approved Fund.

     Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process.
                   ----------------------------------------------------------

     (a) This  Agreement  and the other Loan  Documents  shall be  construed  in
accordance  with  and be  governed  by the law  (without  giving  effect  to the
conflict of law principles thereof) of the State of Georgia.

                                       80

<PAGE>

     (b) The Borrower hereby irrevocably and unconditionally submits, for itself
and  its  property,  to the  non-exclusive  jurisdiction  of the  United  States
District  Court of the Northern  District of Georgia,  and of any state court of
the State of Georgia  located in Fulton County 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 the transactions  contemplated hereby or
thereby,  or for  recognition or  enforcement  of any judgment,  and each of the
parties hereto hereby irrevocably and unconditionally  agrees that all claims in
respect of any such action or  proceeding  may be heard and  determined  in such
Georgia state court or, to the extent  permitted by applicable law, such Federal
court.  Each of the  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 any other Loan Document shall affect any right that
the  Administrative  Agent, the Issuing Bank or any Lender may otherwise have to
bring any action or  proceeding  relating  to this  Agreement  or any other Loan
Document   against  the  Borrower  or  its  properties  in  the  courts  of  any
jurisdiction.  (c) The  Borrower  irrevocably  and  unconditionally  waives  any
objection  which it may now or hereafter have to the laying of venue of any such
suit,  action or  proceeding  described  in  subsection  (b) of this Section and
brought in any court referred to in subsection (b) of this Section.  Each of the
parties hereto 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) Each party to this  Agreement  irrevocably  consents  to the service of
process in the manner  provided  for  notices in Section  10.1.  Nothing in this
Agreement  or in any other  Loan  Document  will  affect  the right of any party
hereto to serve process in any other manner permitted by law.

     Section 10.6. WAIVER OF JURY TRIAL. EACH PARTY HERETO  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 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 PARTY HAS
REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT SUCH OTHER PARTY 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.

     Section 10.7.  Right of Setoff.  In addition to any rights now or hereafter
                    ---------------
granted  under  applicable  law and not by way of limitation of any such rights,
each Lender and the Issuing Bank shall have the right,  at any time or from time
to time upon the occurrence  and during the  continuance of an Event of Default,
without prior notice to the Borrower,  any such notice being expressly waived by
the  Borrower to the extent  permitted by  applicable  law, to set off and apply
against all deposits (general or special, time or demand,  provisional or final)
of the Borrower at any time held or other  obligations at any time owing by such
Lender and the Issuing  Bank to or for the credit or the account of the Borrower
against any and all Obligations  held by such Lender or the Issuing Bank, as the
case may be,  irrespective of whether such Lender or the Issuing Bank shall have
made demand  hereunder and although  such  Obligations  may be  unmatured.  Each
Lender and the Issuing Bank agree  promptly to notify the  Administrative  Agent
and the Borrower after any such set-off and any application  made by such Lender
and the Issuing  Bank,  as the case may be;  provided,  that the failure to give
                                             --------
such notice shall not affect the validity of such set-off and application.

     Section 10.8. Counterparts;  Integration. This Agreement may be executed by
                   --------------------------
one or  more  of the  parties  to  this  Agreement  on any  number  of  separate
counterparts  (including  by  telecopy),  and  all of  said  counterparts  taken
together  shall  be  deemed  to  constitute  one and the same  instrument.  This
Agreement,  the other Loan Documents, and any separate letter agreement(s) among
the Borrower,  SunTrust Bank and SunTrust Capital Markets,  Inc.  constitute the
entire  agreement  among the parties  hereto and thereto  regarding  the subject
matters   hereof  and   thereof  and   supersede   all  prior   agreements   and
understandings, oral or written, regarding such subject matters.

     Section 10.9.  Survival.  All covenants,  agreements,  representations  and
                    --------
warranties  made  by  the  Borrower  herein  and in the  certificates  or  other
instruments  delivered in connection with or pursuant to this Agreement shall be
considered  to have been  relied  upon by the  other  parties  hereto  and shall
survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit,  regardless of any investigation  made by
any  such  other   party  or  on  its  behalf  and   notwithstanding   that  the
Administrative  Agent,  the  Issuing  Bank or any  Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is  extended  hereunder,  and shall  continue in full force and effect as
long as the  principal of or any accrued  interest on any Loan or any fee or any
other  amount  payable  under this  Agreement is  outstanding  and unpaid or any
Letter of Credit is outstanding and so long as the Commitments  have not expired
or terminated.  The provisions of Sections 2.18,  2.19, 2.20, 10.3 and 10.11 and
                                  -------------   ----  ----  ----
Article IX shall  survive and remain in full force and effect  regardless of the
consummation  of the  transactions  contemplated  hereby,  the  repayment of the
Loans,  the  expiration  or  termination  of  the  Letters  of  Credit  and  the
Commitments or the  termination of this Agreement or any provision  hereof.  All
representations  and  warranties  made  herein,  in the  certificates,  reports,
notices,  and other documents delivered pursuant to this Agreement shall survive
the execution and delivery of this Agreement and the other Loan  Documents,  and
the making of the Loans and the issuance of the Letters of Credit.

     Section 10.10.  Severability.  Any provision of this Agreement or any other
                     ------------
Loan Document held to be illegal,  invalid or unenforceable in any jurisdiction,
shall, as to such jurisdiction, be ineffective to the extent of such illegality,
invalidity or  unenforceability  without  affecting  the  legality,  validity or
enforceability  of  the  remaining   provisions  hereof  or  thereof;   and  the
illegality,  invalidity  or  unenforceability  of a  particular  provision  in a
particular  jurisdiction  shall  not  invalidate  or render  unenforceable  such
provision in any other jurisdiction.

     Section  10.11.  Confidentiality.  Each of the  Administrative  Agent,  the
                      ---------------
Issuing  Bank and the Lenders  agrees to  maintain  the  confidentiality  of the
Information (as defined

                                       82
<PAGE>

below), except that Information may be disclosed (a) to its and its Affiliates',
directors,  officers, employees and agents, including accountants, legal counsel
and other advisors (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 pursuant to the terms hereof),
(b) to the  extent  requested  by any  regulatory  authority,  (c) to the extent
required by applicable  laws or  regulations or by any subpoena or similar legal
process,  (d) to any other party to this  Agreement,  (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to
this Agreement or any other Loan Document or the enforcement of rights hereunder
or  thereunder,  (f)  subject  to  a  written  agreement  containing  provisions
substantially  the  same  as  those  of  this  Section,  to any  assignee  of or
Participant  in, or any  prospective  assignee of or Participant  in, any of its
rights  or  obligations  under  this  Agreement,  (g)  with the  consent  of the
Borrower, or (h) to the extent such Information (x) is publicly available at the
time of  disclosure  or become  publicly  available  other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent, the
Issuing Bank or any Lender on a nonconfidential basis other than from any Person
known by the Administrative  Agent, Issuing Bank, or Lender, as the case may be,
to  have  made  such   information   available   in   violation  of  a  duty  of
confidentiality owed to the Borrower or any Subsidiary. For the purposes of this
Section,  "Information" means all information  received from the Borrower or any
           -----------
Subsidiary relating to the Borrower or any Subsidiary or its business;  provided
                                                                        --------
that, in the case of  information  received from the Borrower or any  Subsidiary
after the date hereof,  such  information  is clearly  identified at the time of
delivery as confidential. 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 observed customary practices and
procedures of commercial  banks in respect of confidential  information of their
customers  and  otherwise  exercised  the same  degree of care to  maintain  the
confidentiality  of such  Information  as such  Person  would  accord to its own
confidential information.

     Section 10.12. Interest Rate Limitation. Notwithstanding anything herein to
                    ------------------------
the contrary,  if at any time the interest rate applicable to any Loan, together
with all fees,  charges  and other  amounts  which may be treated as interest on
such Loan under applicable law (collectively,  the "Charges"),  shall exceed the
maximum  lawful rate of interest  (the  "Maximum  Rate") which may be contracted
for,  charged,  taken,  received or reserved  by a Lender  holding  such Loan in
accordance with applicable law, the rate of interest  payable in respect of such
Loan hereunder,  together with all Charges payable in respect thereof,  shall be
limited to the Maximum Rate and, to the extent lawful,  the interest and Charges
that would have been  payable in respect of such Loan but were not  payable as a
result of the  operation of this Section shall be cumulated and the interest and
Charges  payable to such  Lender in respect of other  Loans or periods  shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount,
together  with  interest  thereon  at the  Federal  Funds  Rate  to the  date of
repayment, shall have been received by such Lender.

                  (remainder of page left intentionally blank)

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
duly  executed by their  respective  authorized  officers as of the day and year
first above written.

                                                     DOLLAR GENERAL CORPORATION

                                                     By   /s/ Wade Smith
                                                          ----------------------
                                                     Name:   Wade Smith
                                                     Title:  Treasurer

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                            SUNTRUST BANK
                            as Administrative Agent, as Issuing Bank,
                            as Swingline Lender, and as a Lender

                            By   /s/ Scott Corley
                                 -----------------------------------------------
                            Name:  Scott Corley
                            Title: Director

                            Commitment:                   $68,666,667

                            Letter of Credit
                            Subcommitment:                $30,000,000

                            Swingline
                            Subcommitment:                $10,000,000

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           CREDIT SUISSE FIRST BOSTON,
                           as Syndication Agent and as a Lender

                           By   /s/ Vitaly G. Butenko
                                -----------------------------------------------
                           Name:  Vitaly G. Butenko
                           Title: Associate

                           By   /s/ Jay Chall
                                ------------------------------------------------
                           Name:  Jay Chall
                           Title: Director

                           Commitment:                   $33,333,333
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           U.S. BANK NATIONAL ASSOCIATION,
                           as Co-Documentation Agent and as a Lender

                           By   /s/ Brian H. Gallagher
                                ------------------------------------------------
                           Name:  Brian H. Gallagher
                           Title: Vice President

                           Commitment:                   $33,333,333
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           KEYBANK NATIONAL ASSOCIATION,
                           as Co-Documentation Agent and as a Lender

                           By   /s/ Mary K. Young
                                ------------------------------------------------
                           Name:  Mary K. Young
                           Title: Vice President

                           Commitment:                   $33,333,333
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           AMSOUTH BANK,
                           as a Lender

                           By   /s/ Monty R. Trimble
                                ------------------------------------------------
                           Name:  Monty R. Trimble
                           Title: Senior Vice President

                           Commitment:                   $23,333,333
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

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

                           By   /s/ Dan M. Killian
                                ------------------------------------------------
                           Name:  Dan M. Killian
                           Title: Managing Director

                           Commitment:                   $26,666,667
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           LASALLE BANK NATIONAL ASSOCIATION,
                           as a Lender

                           By   /s/ Mark Mital
                                ------------------------------------------------
                           Name:  Mark Mital
                           Title: Vice President

                           Commitment:                   $16,666,667
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           UNION PLANTERS BANK, N.A.
                           as a Lender

                           By   /s/ Kathleen L. Nelson
                                ------------------------------------------------
                           Name:  Kathleen L. Nelson
                           Title: Senior Vice President

                           Commitment:                   $16,666,667
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           BRANCH BANKING & TRUST CO.,
                           as a Lender

                           By   /s/ R. Andrew Beam
                                ------------------------------------------------
                           Name:  R. Andrew Beam
                           Title: Senior Vice President

                           Commitment:                   $10,000,000
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           FIFTH THIRD BANK,
                           as a Lender

                           By   /s/ Megan S. Heisel
                                ------------------------------------------------
                           Name:  Megan S. Heisel
                           Title: Assistant Vice President

                           Commitment:                   $10,000,000
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           NATIONAL CITY BANK,
                           as a Lender

                           By   /s/ Michael J. Durbin
                                ------------------------------------------------
                           Name:  Michael J. Durbin
                           Title: Vice President

                           Commitment:                   $10,000,000
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           TRANSAMERICA BUSINESS CAPITAL
                           CORPORATION, as a Lender

                           By   /s/ Steve Goetschius
                                ------------------------------------------------
                           Name:  Steve Goetschius
                           Title: Senior Vice President

                           Commitment:                   $10,000,000
                                                          ----------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           CHANG HWA COMMERCIAL BANK,
                           LTD., LOS ANGELES BRANCH,
                           as a Lender

                           By   /s/ James Lin
                                ------------------------------------------------
                           Name:  James lin
                           Title: SVP & General Manager

                           Commitment:                    $4,666,667
                                                           ---------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                           BANK OF OKLAHOMA N.A.,
                           as a Lender

                           By   /s/ Pamela J. Amburgy
                                ------------------------------------------------
                           Name:  Pamela J. Amburgy
                           Title: Vice President

                           Commitment:                    $3,333,333
                                                           ---------

              [SIGNATURE PAGE TO 3-YEAR REVOLVING CREDIT AGREEMENT]

<PAGE>

                                                                  SCHEDULE 1.1-A

                  APPLICABLE MARGINS AND APPLICABLE PERCENTAGES

<TABLE>
<CAPTION>

    Level             Debt Rating                  Applicable Margin       Applicable Percentage
    -----             -----------                  -----------------       ---------------------

                                                         LIBOR          Base Rate
                                                         -----          ---------
   <S>       <C>                                        <C>              <C>              <C>
      I      greater than or eaual to BBB+/Baa1          0.750%           0.000%           0.150%
     II                   BBB/Baa2                       0.850%           0.000%           0.200%
    III                   BBB-/Baa3                      1.250%           0.000%           0.250%
     IV                    BB+/Ba1                       1.750%           0.500%           0.250%
      V                   BB/Ba2                         2.000%           0.875%           0.375%
     VI               less than BB/Ba2                   2.250%           1.250%           0.500%

                                 Schedule 1.1-A

</TABLE>

<PAGE>

                                                                  SCHEDULE 1.1-B

                         MORTGAGED NON-RETAIL PROPERTIES

                PROPERTY                        CITY                    STATE
--------------------------------------------------------------------------------
     1)     Distribution Center               Alachua                     FL
     2)     Distribution Center               Zanesville                  OH
     3)     Headquarters                      Goodlettsville              TN

                                 Schedule 1.1-B
<PAGE>

                                                                  SCHEDULE 1.1-C
<TABLE>
<CAPTION>

                                            MORTGAGED RETAIL PROPERTIES

--------------------------------------------------------------------------------------------------------------------
<S>       <C>        <C>         <C>                                  <C>                          <C>
  ST      SITE #     STORE #                 ADDRESS                          CITY                   COUNTY
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
  AL     HC-00082     1111           1421 Golden Springs Rd                 Anniston                 Calhoun
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00065     2822           609 East Church Street                  Atmore                 Escambia
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00075     0703              800 McMeans Ave.                   Bay Minette               Baldwin
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00080     3788              1632 Hwy 80 East                    Demopolis                Marengo
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00062     2366             1400 Temple Ave W.                    Fayette                 Fayette
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00113     7101              1729 Decatur Hwy                   Fultondale               Jefferson
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00067     3291                   82 West                          Gordo                  Pickens
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00086     7175                 4979 Hwy 17                       Helena                  Shelby
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00053     0710               1627 Lott Road                    Eight Mile                Mobile
--------------------------------------------------------------------------------------------------------------------
  AL     HC-00061     1642             415 Old Highway 31                    Warrior                Jefferson
--------------------------------------------------------------------------------------------------------------------
  AR     CN-00084     2020            2203 N. Reynolds Road                  Bryant                  Saline
--------------------------------------------------------------------------------------------------------------------
  AR     CN-00085     7026              14 Prospect Court                     Cabot                  Lanoke
--------------------------------------------------------------------------------------------------------------------
  AR     CN-00100     2730            1305 Dave Ward Drive                   Conway                 Faulkner
--------------------------------------------------------------------------------------------------------------------
  AR     CN-00076     1254          609 J.P. Wright Loop Road             Jacksonville               Pulaski
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00090     1635       14201 Martin Luther King Blvd.              Alachua                 Alachua
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00100     1332           856 South Broad Street                Brooksville              Hernando
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00109     1651            125 West Belt Avenue                  Bushnell                 Sumter
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00096     1337             1302 N. Young Blvd.                  Chiefland                 Levy
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00127     7232              225 Raspberry Rd.                   Crestview               Okaloosa
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00112     4052           16075 US Highway 331-S                 Freeport                 Walton
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00086     7049             1498 S. Highway 29             Gonzales (Cantonment)         Escambia
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00124     7141             2207 S. Highway 77                  Lynn Haven                  Bay
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00084     7228               4439 Highway 90                      Pace                 Santa Rosa
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00088     2877           3070 W. Michigan Avenue                Pensacola               Escambia
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00097     7400             301 Beverly Parkway                  Pensacola               Escambia
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00098     0772             4818 Mobile Highway                  Pensacola               Escambia
--------------------------------------------------------------------------------------------------------------------
  FL     UR-00121     4127            4023 Pine Forest Rd.                  Pensacola               Escambia
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00026     3117          1011 South Pierce Street                  Alma                    Bacon
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00067     1265            1640 Glen Carrie Road                   Hull                   Madison
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00113     1206           1460 Atlanta Highway NW                 Auburn                  Barrow
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00064     0706            314 S. Church Street                   Blakely                  Early
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00032     4800              108 Burson Street                    Bowdon                  Carroll
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00058     2618            3050 Mount Zion Road                   Bremen                  Carroll
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00073     1272              1003 N. Park St.                   Carrollton                Carroll
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00036     4773             U.S. Highway 129-S                   Cleveland                 White
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00007     0997             3219 Maysville Rd.                   Commerce                 Jackson
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00024     2386             101 W. 14th Avenue                    Cordele                  Crisp
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00028     4808               5321 Highway 20                    Covington                Newton
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00122     7057             7118 Highway 278 NE                  Covington                Newton
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00104     1025             6010 Bethelview Rd.                   Cumming                 Forsyth
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00105     1266          121 North Corner Parkway                 Cumming                 Forsyth
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00059     3703             295 Blakely Street                   Cuthbert                Randolph
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00061     0571           Morrison Moore Parkway                 Dahlonega                Lumpkin
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00068     0630            1293 Merchants Drive                   Dallas                 Paulding

</TABLE>
                                 Schedule 1.1-C

                                                                          Page 1
<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>   <C>           <C>         <C>                               <C>                            <C>
  GA     UR-00042     0046           2280 Chatsworth Highway                 Dalton                 Whitfield
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00091     0872              Cleveland Highway                    Dalton                 Whitfield
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00055     0851              409 E. 3rd Street                 Donalsonville             Seminole
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00027     4789         1730 South Peterson Avenue                Douglas                 Coffee
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00115     3399               2190 Midway Rd.                  Douglasville               Douglas
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00016     2099            118 Hillcrest Parkway                  Dublin                  Laurens
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00017     4655              531 Central Drive                  East Dublin               Laurens
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00093     1257             4388 Washington Rd.                    Evans                 Columbia
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00020     4775           2500 Limestone Parkway                Gainesville                Hall
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00065     0780           188 West Clinton Street                  Gray                    Jones
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00005     4572             1019 Memorial Drive                   Griffin                Spaulding
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00108     1325                   Rte. 92                         Griffin                Spaulding
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00054     4954            5130 Wrightsboro Rd.                  Groveton                Columbia
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00021     0076           1323 E. Franklin Street                Hartwell                  Hart
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00089     0996             890 West Church St.                   Jasper                  Pickens
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00025     0301           995 East Cherry Street                   Jesup                   Wayne
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00013     4837             214 Commerce Avenue                  LaGrange                  Troup
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00014     4656            1811 West Pointe Road                 LaGrange                  Troup
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00003     4792             5544 Thomaston Road                    Macon                   Bibb
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00120     7133           3501 Hartley Bridge Rd.                  Macon                   Bibb
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00006     0519             1521 Eatonton Road                    Madison                 Morgan
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00002     0126          1104 Warm Springs Highway              Manchester              Meriwether
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00079     1094               210 Baston Road                    Martinez                Columbia
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00019     4882           1440 South Cedar Street                McDonough                 Henry
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00072     1089           1550 N. Columbia Street              Milledgeville              Baldwin
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00035     2331            1908 1st Avenue S.E.                  Moultrie                Colquitt
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00008     4778              245 Temple Avenue                    Newnan                  Coweta
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00077     0738          234 West Railroad Street                 Pelham                 Mitchell
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00126     7172         6391 Hiram Douglas Highway            Powder Springs             Paulding
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00010     1904          1225 East Jackson Street               Thomasville               Thomas
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00023     2521                US Highway 27                       Trion                 Chattoga
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00001     4963            106 Feagin Mill Road               Warner Robbins              Houston
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00009     4857        1515 Richard B. Russell Pkwy.          Warner Robbins              Houston
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00033     4807               751 Highway 96             Warner Robbins (Bonaire)         Houston
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00076     2059              2451 Watson Blvd.                Warner Robbins              Houston
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00040     4856         1902 South Georgia Parkway               Waycross                  Ware
--------------------------------------------------------------------------------------------------------------------
  GA     UR-00075     0800            11067 Millarden Road                  Woodbury               Meriwether
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00093     2228             900 Princeton Drive                    Albia                  Monroe
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00132     7234             701 - 8th Street SW                   Altoona                  Polk
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00162     7310           901 S. Ankeny Boulevard                 Ankeny                   Polk
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00092     0111             1805 E. 7th Street                   Atlantic                  Cass
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00128     2578              3025 West Avenue                   Burlington              Des Moines
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00116     7053             1006 N. 18th Street                 Centerville              Appanoose
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00161     2305          200 E. Glenn Miller Drive               Clarinda                  Page
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00118     7138             535 16th Avenue SE                  Dyersville                Dubuque
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>    <C>         <C>          <C>                                     <C>                     <C>
  IA     HC-00156     7054              3206 Main Street                   Emmetsburg               Palo Alto
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00106     1458             3715 Lafayette Road                  Evansdale              Black Hawk
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00158     7142             2304 N. Burlington                   Fairfield               Jefferson
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00119     7109               114 West Street                    Grinnell                Poweshiek
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00121     2329            1304 1st Street West                Independence              Buchanon
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00097     3540          1420 North Lincoln Street               Knoxville                Marion
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00176     7226             1135 East Post Road                   Marion                   Linn
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00103     4206          2413 South Center Street              Marshalltown              Marshall
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00109     2019            408 South 9th Street                Marshalltown              Marshall
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00117     2010             710 N. Grand Avenue                Mt. Pleasant                Henry
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00127     7027           2000 Cedar Plaza Drive                 Muscatine               Muscatine
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00104     1536             1705 South B Avenue                   Nevada                   Story
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00126     7179            721 N. Quincy Avenue                   Ottumwa                 Wapello
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00134     2342              1010 26th Street                      Perry                  Dallas
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00120     4513              4840 Maple Drive                  Pleasant Hill               Polk
--------------------------------------------------------------------------------------------------------------------
  IA     HC-00133     7136          66 East Tower Park Drive                Waterloo               Black Hawk
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00134     7180            2160 West Ramada Lane                Carbondale                Jackson
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00130     7181              1940 18th Street                   Charleston                 Coles
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00141     7223          17 West Plumner Boulevard                Chatham                Sangamon
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00105     2066             3797 US Route 36-E                    Decatur                  Macon
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00111     1452             1200 - 17th Street                    Fulton                 Whiteside
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00082     1387             713 Madison Street                    Lebanon                St. Clair
--------------------------------------------------------------------------------------------------------------------
  IL     CN-00120     7137             1640 N. Main Street                  Princeton                Bureau
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00016     0939              11 Saratoga Drive                  Batesville               Franklin
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00005     1268        12050 West Washington Street             Cumberland                Marion
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00006     2144           1800 Medical Arts Drive               Huntingburg               Dubois
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00003     4509          4117 North Mannheim Road                 Jasper                  Dubois
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00009     1146             913 Commerce Place                   Ligionier                 Noble
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00007     1140                3121 S.R. 24                     Logansport                 Cass
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00013     7035         932 South Merrifield Avenue              Mishawaka              St. Joseph
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00012     0155              906 Broad Street                   New Castle                 Henry
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00011     2361            999 West Main Street                    Peru                    Miami
--------------------------------------------------------------------------------------------------------------------
  IN     PR-00002     1269              1299 South Adams                   Versailles                Ripley
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00139     4470           1805 South Range Avenue                  Colby                  Thomas
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00108     1049              20 Market Street                  Council Grove              Morris
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00115     4427               1208 East 27th                       Hays                    Ellis
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00122     2537           901 South First Street                 Hiawatha                  Brown
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00059     1009             200 Arizona Avenue                    Holton                  Jackson
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00090     2579             211 South Franklin                 Junction City               Geary
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00100     7224            403 North Main Street                  Lansing               Leavenworth
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00096     7056           2321 Turtle Creek Blvd.                Manhattan                 Riley
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00147     7171            1310 East 1st Street                    Pratt                   Pratt
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00063     1171             1001 S.W. Fairlawn                    Topeka                  Shawnee
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00094     1457              1410 West Hwy. 24                    Wamego               Pottawatomie
--------------------------------------------------------------------------------------------------------------------
  KS     HC-00060     0859             221 West 47th South                   Wichita                Sedgwick
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00047     1029             7704 S. Highway 27                   Burnside                 Pulaski
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------
--------------------------------------------------------------------------------------------------------------------
 <S>     <C>          <C>         <C>                                    <C>                   <C>
  KY     HC-00044     0316            2203 East Main Street                Cumberland                Harlan
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00043     2654                Hwy 131 West                       Elkhorn                  Pike
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00114     0338              1645 Ashland Rd.                     Greenup                 Greenup
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00150     7110            1201 Cherrywood Drive                 LaGrange                 Oldham
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00101     1275              8491 Pembroke Rd.                   Oak Grove               Christian
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00084     1057              1006 Center Drive                   Richmond                 Madison
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00071     1088            21 Mount Tabor Court                 Shelbyville               Shelby
--------------------------------------------------------------------------------------------------------------------
  KY     HC-00089     1459             639 Highland Avenue                 Vine Grove                Hardin
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00058     2771             13965 Coursey Blvd.                 Baton Rouge          East Baton Rouge
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00040     0759            175 Arlington Street                 Bayou Vista           St. Mary Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00036     0448               254 Rees Street                  Breaux Bridge         St. Martin Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00063     7022               11215 Joor Road                     Central            East Baton Rouge
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00037     2884              3039 Hwy 1-South                 Donaldsonville         Ascension Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00016     0621         2216 E.E. Wallace Blvd. N.               Ferriday            Corcordia Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00056     1544              300 Joe Hoy Drive                   Franklin             St. Mary Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00071     7177              41065 Highway 42                     Galvez             Ascension Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00054     3839           1207 University Avenue                  Hammond               Tangipahoa
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00039     1045            5744 West Main Street                   Houma             Terrebonne Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00061     7023           226 S. Hollywood Blvd.                   Houma             Terrebonne Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00017     2492              109 Jasper Street                   Rayville             Richland Parish
--------------------------------------------------------------------------------------------------------------------
  LA     BM-00053     2740            2115 Gause Blvd. East                  Slidell           St. Tammany Parish
--------------------------------------------------------------------------------------------------------------------
  LA     MB-00035     0071        213 North Cities Service Hwy               Sulphur            Calcasieu Parish
--------------------------------------------------------------------------------------------------------------------
  LA     MB-00032     0777             347 W. Main Street                 Ville Platte          Evangeline Parish
--------------------------------------------------------------------------------------------------------------------
  LA     MB-00051     0562              1200 Thomas Road                   West Monroe           Ouchita Parish
--------------------------------------------------------------------------------------------------------------------
  LA     MB-00049     0917                5938 Hwy 167                      Winnfield              Winn Parish
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00060     7058              2148 NW7 Highway                  Blue Springs               Jackson
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00114     4338               3020 Paris Road                    Columbia                  Boone
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00063     1433          2114 Scotthill Woods Rd.             Jefferson City               Cole
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00102     1768              1350 N. Bryon Dr.                     Nixa                  Christian
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00115     0404              1202-A Highway 28                  Owensville               Gasconade
--------------------------------------------------------------------------------------------------------------------
  MO     CN-00061     7102           2535 W. Kearney Street                Springfield               Greene
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00066     7104            267 Highway 15 North                  Ackerman                 Choctaw
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00045     1289             524 Highway 6 East                  Batesville                Panola
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00008     4928        2768 Highway 15 Court Street             Bay Springs               Jasper
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00007     1565          125 Swinging Bridge Drive                 Byram                   Hinds
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00018     4884           808 South State Street                Clarksdale                Coahoma
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00004     4711             206 Alabama Street                   Columbus                 Lowndes
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00010     1046              108 Deason Street                  Ellisville                 Hinds
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00033     0875             117 Progress Drive                     Flora                  Madison
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00021     0218         2250 South Commerce Street                Grenada                 Grenada
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00046     1717               5021 Highway 42                   Hattiesburg               Forrest
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00048     1039              1909 Hardy Street                  Hattiesburg               Forrest
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00029     0629              28065 Highway 28                   Hazlehurst                Copiah
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00001     2372             611 Highway 82 West                  Indianola               Sunflower
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00003     1296               3322 Terry Road                     Jackson                  Hinds
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00041     0942              16180 Highway 603                     Kiln                   Hancock
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
 <S>     <C>          <C>        <C>                                     <C>                       <C>
  MS     BM-00034     1388       55 Veterans Memorial Boulevard             Kosciusko                Attala
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00013     0878              384 Winter Street                   Lucedale                 George
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00011     4742           6650 North Hill Street                 Meridian               Lauderdale
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00020     4900           10956 Nichols Boulevard              Olive Branch               Desoto
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00042     0926           1405 South Main Street                Poplarville             Pearl River
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00009     4802             1012 Market Street                  Port Gibson              Claiborne
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00030     0888             267 Magnolia Drive                    Raleigh                  Smith
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00015     0667             410 East Lee Street                   Sardis                  Panola
--------------------------------------------------------------------------------------------------------------------
  MS     MB-00044     1169           8274 Airways Boulevard                Southhaven                Desoto
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00064     7025               1300 Stark Road                   Starksville              Oktibbeha
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00028     1178          3309 McCullough Boulevard                Tupelo                    Lee
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00006     4710              11980 Highway 57                   Van Cleave                Jackson
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00002     0678               100 Highway 27                     Vicksburg                Warren
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00012     0894           1006 Mississippi Drive                Waynesboro                 Wayne
--------------------------------------------------------------------------------------------------------------------
  MS     BM-00057     0688         104 South Applegate Street                Winona                Montgomery
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00028     4849            1810 Live Oak Street                  Beaufort                Carteret
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00087     1440            131 N. NC 41 Act. Hwy                Beulaville                Duplin
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00001     4651              519 Market Place                     Biscoe                Montgomery
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00078     1236             1007 Monroe Street                   Carthage                  Moore
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00022     4942            1008 N. Brown Street                  Chadbourn               Columbus
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00051     0346              122 Hwy 29 South                   China Grove                Rowan
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00002     4650              210 Market Street                   Cramerton                Gaston
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00053     0425           302 East Atkins Street                  Dobson                   Surry
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00026     4744           120 Brookfall Dairy Rd                   Elkin                   Surry
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00052     4943          711 South McDaniel Street                Enfield                 Halifax
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00057     0168            105 East Marlboro Rd.                 Farmville                 Pitt
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00136     7144           507 East Wellons Street                Four Oaks               Johnston
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00009     4723          3864 West Franklin Blvd.                Gastonia                 Gaston
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00059     0285           1410 West Grantham St.                 Goldsboro                 Wayne
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00048     4905          101 Granite Quarry Street               Salisbury                 Rowan
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00041     4886               479 Hwy 70 West                    Havelock                 Craven
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00027     2782            1942 Spartanburg Hwy               Hendersonville             Henderson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00030     4827           407 E Washington Street                LaGrange                 Lenoir
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00081     1442       180 W. Cornelius Hernett Blvd.            Lillington                Harnett
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00138     7225                103 Wade Ave.                     Louisburg               Franklin
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00011     4770            W. Martin L. King Dr.                  Maxton                 Scotland
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00018     4777            914 West Main Street                Murfreesboro              Hertford
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00068     0430              1445 Andrews Rd.                     Murphy                 Cherokee
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00025     4791             800 E Washington St                  Nashville                 Nash
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00016     4868            871 Granberry Street                   Newland                  Avery
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00023     4818                 359 Main St                    Newton Grove               Sampson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00010     4674            496 South Main Street                  Norwood                 Stanly
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00003     4771               341 Aquadale Rd                     Oakboro                 Stanly
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00013     4829             917 West 3rd Street                  Pembroke                 Robeson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00047     4899           315 East Hamlet Street                 Pinetops                Edgecombe
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00045     0880               704 East Street                    Pittsboro                Chatham
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>    <C>          <C>          <C>                                   <C>                       <C>
  NC     CN-00075     2449            724 U.S. Hwy 64 East                  Plymouth               Washington
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00020     4790             105 Fayetteville Rd                   Raeford                  Hoke
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00014     4769              905 East 4th Ave                   Red Springs               Robeson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00056     2906              139 North Hwy 49                    Richfield                Stanly
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00131     7098            2104 Fayetteville Rd.                Rockingham               Richmond
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00058     0801            411-K South Main St.                 Rolesville                 Wake
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00015     4873             608 East NC Hwy 24                   Roseboro                 Sampson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00089     1235               4205 NC Hwy 211                    West End                  Moore
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00029     4945             4301 Church Street                  Sharpsburg                 Nash
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00012     4774            584 West Clark Street                 St. Pauls                Robeson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00039     0869           1413 West Corbett Ave.                 Swansboro                Onslow
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00044     4906             1207 East Fifth St.                 Tabor City               Columbus
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00005     4819              717 Albemarle Rd                      Troy                 Montgomery
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00090     3216              8681 North Hwy 10                     Vale                   Lincoln
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00034     4977           421 South Brooks Street               Wake Forest                Wake
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00080     7059             1035 NC Hwy 65 West                 Walnut Cove               Stokes
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00054     0203            1431 John Small Ave.                 Washington               Beaufort
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00017     4890          31 Beaver Creek School Rd            West Jefferson               Ashe
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00074     1016         2119 Forest Hills Rd., West               Wilson                  Wilson
--------------------------------------------------------------------------------------------------------------------
  NC     CN-00092     7033              221 West Hwy. 74                     Wingate                  Union
--------------------------------------------------------------------------------------------------------------------
  NE     HC-00135     3025            2120 North 6th Street                 Beatrice                  Gage
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00055     1542             825 E. Main Street                    Ashland                 Ashland
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00064     7103            3520 N. Ridge Road E                  Ashtabula               Ashtabula
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00001     4694            888 West Main Street                  Bellevue                Sandusky
--------------------------------------------------------------------------------------------------------------------
  OH    ZR-000066     7028              1905 Havemann Rd.                    Celina                  Mercer
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00008     4776            1400 N. Bridge Street                Chillicothe                Ross
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00070     7134               251 Elida Road                      Delphos                  Allen
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00077     7107             2205 Tiffin Avenue                    Findlay                 Hancock
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00059     1932              478 Jackson Pike                   Gallipolis                Gallia
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00009     0120             100 Commerce Place                    Geneva                 Ashtabula
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00046     0994          22081 State Route 51 West                 Genoa                  Ottawa
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00035     4987              2393 Dayton Pike                   Germantown              Montgomery
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00043     0604          108 W. Washington Street                Jamestown                Greene
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00079     7227               7000 Rose Drive                     Lisbon                Columbiana
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00063     7030             1212 W. Main Street                 Louisville                 Stark
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00004     0324              1509 Ashland Road                   Mansfield               Richland
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00005     4740            320 Mill Creek Drive                 Marysville                 Union
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00057     2015          495 S. Washington Street               New Bremen               Auglaize
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00012     0169             753 Carroll Street                 New Lexington               Perry
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00020     0390             101 W. State Street                Newcomerstown            Tuscarawas
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00006     4741              359 Milan Avenue                     Norwalk                  Huron
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00003     4673           1660 West Fourth Street                 Ontario                Richland
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00067     7029            1444 N. Perry Street                   Ottawa                  Putnam
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00034     1241          5055 College Corner Pike                 Oxford                  Butler
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00050     0539             75 Oak Meadow Drive                  Pataskala                Licking
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00019     2779            840 East Perry Street                 Paulding                Paulding
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>    <C>          <C>       <C>                                   <C>                         <C>
  OH     ZR-00007     4779            2824 East Harbo Road                Port Clinton               Ottawa
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00011     2260            3508 West Main Street                  Ravenna                 Portage
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00061     7099             844 Indiana Avenue                 Saint Mary's              Auglaize
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00054     1450             955 N. State Street                   Trenton                 Butler
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00053     1955            785 W. Market Street                    Troy                    Miami
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00033     0360           1260 East Wyandot Ave.              Upper Sandusky              Wyandot
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00056     2047            1821 Columbus Avenue            Washington Courthouse          Fayette
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00010     4739            201 W. Walton Street                   Willard                  Huron
--------------------------------------------------------------------------------------------------------------------
  OH     ZR-00040     1043              359 Lewisville Rd                  Woodsfield                Monroe
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00036     4984               217 N.E. Tenth                     Blanchard                McClain
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00064     0294              201 S. 9th Street                    Duncan                 Stephens
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00038     0208              14143 Elm Street                    Glenpool                  Tulsa
--------------------------------------------------------------------------------------------------------------------
  OK     CH-00040     0633              211 N. 5th Street                   Henryetta               Okmulgee
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00039     7051               1305 South Main                   Kingfisher              Kingfisher
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00049     0122             844 NW 32nd Street                  New Castle                McClain
--------------------------------------------------------------------------------------------------------------------
  OK     HC-00037     0132          210 North Harrison Street                Shawnee              Pottawatomie
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00015     4865               105 Wilson Road                  Bentleyville             Washington
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00036     1445      Rt. 209-S, Chestnuthill Township         Broadheadsville             Monroe
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00048     7139              115 Roberts Road                   Grindstone                Fayette
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00021     4986          4052 Philadelphia Avenue              Chambersburg              Franklin
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00022     0316            944 Lincoln Way West                Chambersburg              Franklin
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00042     0270              1700 Peach Street                     Erie                    Erie
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00024     4940             1403 W. Main Street                 Grove City                Mercer
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00028     1151               State Route 590                     Hamlin                   Wayne
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00045     2940            701 W. Centre Street                Mahanoy City             Schuylkill
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00044     1271            7097 Mason Dixon Hwy                 Meyersdale               Somerset
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00023     2203            553 West Main Street                  Mount Joy               Lancaster
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00047     7032              535 Pocono Blvd.                   Mt. Pocono                Monroe
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00018     4903            2205 W. State Street                 New Castle               Lawrence
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00065     7108             10670 W. Main Road                   Northeast                 Erie
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00039     1059             383 Meridian Avenue                  Scranton               Lackawanna
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00029     1625               State Route 924                   Shenandoah              Schuylkill
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00026     0149            486 East King Street                Shippensburg             Cumberland
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00051     1449               5034 Hann Drive                  Mechanicsburg            Cumberland
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00025     0145                State Route 6                      Towanda                Bradford
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00049     7024               440 Main Street                   Walnutport             Northhampton
--------------------------------------------------------------------------------------------------------------------
  PA     ZR-00030     2993             1034 E. Main Street                  Bradford                 McKeen
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00080     2640            10306 Dunbarton Blvd.                 Barnwell                Barnwell
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00063     3253              543 Langster Hwy                     Chester                 Chester
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00103     1165               1020 West Blvd.                  Chesterfield            Chesterfield
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00052     4914                590 E. Barnch                      Denmark                 Bamberg
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00114     1448            550 East Main Street                   Duncan                Spartanburg
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00062     0736              1326 Redbank Road                  Goose Creek              Berkeley
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00081     3044            1713 Elm Street West                   Hampton                 Hampton
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00048     8376               1752 River Road                  John's Island            Charleston
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00053     4983             15 Roseborough Road                   Lugoff                  Kershaw
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>    <C>          <C>       <C>                                     <C>                       <C>
  SC     UR-00118     1142             500 W. Boyce Street                   Manning                Clarendon
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00102     1203              2433 East Hwy 76                     Marion                  Marion
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00056     3629            7530 Kirkpatrick Lane             North Charleston           Charleston
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00071     0317           195 Market Plaza Drive                N. Augusta                 Aiken
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00049     3218              1365 Remount Road                    Hanahan               Charleston
--------------------------------------------------------------------------------------------------------------------
  SC     CN-00008     4772      209 South Van Lingle Mungo Blvd.            Pageland              Chesterfield
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00051     0163            1005 Mechanic Street                  Pendleton               Anderson
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00094     3635               211 Main Street                    Ridgeland                Jasper
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00044     4866               9120 Old #6 Hwy                     Santee                Orangeburg
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00029     4799             5722 Memorial Blvd.                 St. George              Dorchester
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00039     4913             1650 N. Main Street                 Summerville              Berkeley
--------------------------------------------------------------------------------------------------------------------
  SC     UR-00043     4862               597 Bells Hwy.                    Walterboro               Colleton
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00046     0881            200 Brush Creek Road                 Alexandria                Dekalb
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00087     1252              2410 Madison St.                   Clarksville             Montgomery
--------------------------------------------------------------------------------------------------------------------
  TN     CP-00019     4781            2430 Blackburn Rd SE                  Cleveland                Bradley
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00045     2004             8 Main Street East                 Gordonsville                Smith
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00088     1439                 124 Hwy 321                       Hampton                 Carter
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00085     1443                 5934 Hwy 58                      Harrison                Hamilton
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00167     1769               104 Laker Lane                     Lake City               Anderson
--------------------------------------------------------------------------------------------------------------------
  TN     BM-00024     0166          5083 Raleigh-LaGrange Rd                 Memphis                 Shelby
--------------------------------------------------------------------------------------------------------------------
  TN     BM-00025     4482           7110 East Shelby Drive                  Memphis                 Shelby
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00078     0870             915 W. Main Street                   Monteagle                Grundy
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00054     0207            2984 S. Church Street               Murfreesboro             Rutherford
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00056     1021            2011 SE Broad Street                Murfreesboro             Rutherford
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00051     0204               227 Carson Lane                  Murfreesboro             Rutherford
--------------------------------------------------------------------------------------------------------------------
  TN     DG-00001     0150             1370 Robinson Road                  Old Hickory              Davidson
--------------------------------------------------------------------------------------------------------------------
  TN     CP-00021     0740          1106 Mineral Wells Avenue                 Paris                   Henry
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00076     2310               414 Hwy 52 West                    Portland                 Sumner
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00072     1540            7601 Norman Jack Lane                 Knoxville                 Knox
--------------------------------------------------------------------------------------------------------------------
  TN     HC-00074     1082           772 Mountain Creek Road             Signal Mountain            Hamilton
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00129     7176           1200 E. Pioneer Parkway                Arlington                Tarrant
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00141     7145             651 E. Main Street                   Bellville                Austin
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00077     1222              501 E. 6th Street                    Belton                   Bell
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00028     0828             Hwy 62 Main Street                     Buna                   Jasper
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00029     4804                303 N.W. Loop                     Carthage                 Panola
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00010     4904              1602 W. Henderson                   Cleburne                 Johnson
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00016     7034              Farm to Market St                Corpus Christi              Nueces
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00005     4782               200 N. Roberts                      Crowley                 Tarrant
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00079     0417               2127 Sadau Ct.                      Denton                  Denton
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00153     7050            1609 E. McKinney St.                   Denton                  Denton
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00180     1577             1317 E. Main Street                  Eastland                Eastland
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00031     4901               300 W. Commerce                    Fairfield               Freestone
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00006     4738            1601 S. Morgan Street                 Granbury                  Hood
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00008     0600           604 E. Pioneer Parkway               Grand Prairie              Dallas
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00026     4803             980 W. Main Street                  Gun Barrell              Henderson
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00022     4757                  Hwy 87 N                        Hemphill                 Sabine
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                           MORTGAGE RETAIL PROPERTIES
                           --------------------------

--------------------------------------------------------------------------------------------------------------------
  <S>    <C>          <C>          <C>                                    <C>                     <C>
  TX     HC-00034     0632                120 Hwy 64-W                      Henderson                 Rusk
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00069     0525                 234 S. Waco                      Hillsboro                 Hill
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00198     7405                Rt. 2 Box 370                    Huntington               Angelina
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00091     7170             400 S. Nursery Rd.                    Irving                  Dallas
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00007     4975                321 Broadway                       Joshua                  Johnson
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00050     0802           2221 S. Washington St.                  Kaufman                 Kaufman
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00024     0833             312 N. Margaret St.                 Kirbyville                Jasper
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00001     4692              403 S. Denton Dr.                  Lake Dallas               Denton
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00003     4606              416 Hwy 720 West                   Little Elm                Denton
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00004     0995               1707 Deans Way                      Lufkin                 Angelina
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00052     0259               1016 S. 3rd St                      Mabank                 Henderson
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00048     0515                407 W. Royall                     Malakoff                Henderson
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00018     2663               502 E. Brood St                     Mineloa                  Wood
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00023     0653            927 N. University Dr.                Nacogdoches             Nacogdoches
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00042     4956               2003 South St.                    Nacogdoches             Nacogdoches
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00041     0555               460 S. Hwy 377                    Pilot Point               Denton
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00143     7135                702 East 120                      Pottsboro                Grayson
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00020     4743              243 E. Ovilla Rd.                    Red Oak                  Ellis
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00123     4540              5610 Rowlett Rd.                     Rowlett                 Dallas
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00151     7105               6502 S. Hwy 78                      Sachse                  Dallas
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00033     4955                1006 N. Fifth                      Sanger                  Denton
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00025     0839                955 Hwy 327E                       Silsbee                 Hardin
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00002     4684                6546 Watanga                       Watanga                 Tarrant
--------------------------------------------------------------------------------------------------------------------
  TX     HC-00144     7055            809 W. Montgomery St                   Willis                Montgomery
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00030     0687             801 S. Main Street                   Winnsboro                 Wood
--------------------------------------------------------------------------------------------------------------------
  TX     CP-00017     4780                 421 Hwy 78N                        Wylie                  Collin
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00103     1386               90 Scruggs Rd.                      Moneta                 Franklin
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00098     7060             411 Wytle Creek Rd.                  Poquoson                  York
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00133     7106            302 South Main Street                  Stuart                  Patrick
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00129     0474             8494 Country Place                   Cheriton              North Hampton
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00118     7031               1018 3rd Avenue                    Dungannon                 Scott
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00096     1747               88 Main Street                    Lovingston                Nelson
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00091     1543             17413 Warwick Blvd.                Newport News                  *
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00077     1360               Rt. 3, Box 5435                     Dillwyn               Buckingham
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00067     0879             36108 Goodwin Drive                Locust Grove               Orange
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00065     0481            21319 Bennett Street                  Parksley                Accomack
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00050     0375            927 North Main Street                Chase City              Mecklenburg
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00049     2285            15810 King's Highway                  Montross              Westmoreland
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00043     0339           2146 East Midland Trail               Buena Vista             Rockbridge
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00040     0583              1220 Tyler Avenue                    Radford               Montgomery
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00037     0366            West Virginia Avenue                    Crew                  Nottoway
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00033     0484           1011 South Main Street                Blackstone               Nottoway
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00021     2581         1200 U.S. Highway 211 West                 Luray                   Page
--------------------------------------------------------------------------------------------------------------------
  VA     CN-00019     0439          2900 King William Avenue               West Point             King William
--------------------------------------------------------------------------------------------------------------------
  WVA    CN-00117     4445              7131 Harper Road                   Glen Daniel               Raleigh
--------------------------------------------------------------------------------------------------------------------
  WVA    CN-00079     0383          741 #D North Main Street                Moorfield                 Hardy
--------------------------------------------------------------------------------------------------------------------
  WVA    CN-00064     1008              219 Seneca Trail                     Fairlea               Greenbriar
--------------------------------------------------------------------------------------------------------------------

</TABLE>

--------------------

*    Please note that everything is filed in the City of Newport News

<PAGE>

                                                                    SCHEDULE 4.1
                                EXISTENCE: POWER
                                ----------------

As disclosed in Section 4.8(b), the Borrower and certain of its Subsidiaries
have failed to file certain information with certain governmental and state
authorities. As a result of this failure to provide information, the Borrower
and certain of its Subsidiaries may not be in good standing in the states listed
on this Schedule 4.1.

Borrower/Subsidiary                 State                Reason
--------------------------------------------------------------------------------
DG Logistics, LLC                     TN      Unfiled franchise tax returns
Dolgencorp of TX                      TX      Unfiled franchise tax returns
Dollar General Financial, Inc.        TN      Unfiled franchise tax returns
Dolgencorp, Inc.                      TN      Unfiled franchise tax returns
Nations Title Company, Inc.           TN      Unfiled franchise tax returns

<PAGE>

                                                                    SCHEDULE 4.5

                      LITIGATION AND ENVIRONMENTAL MATTERS
                      ------------------------------------

                              EXISTING LITIGATION
--------------------------------------------------------------------------------
None

                                  Schedule 4.5

<PAGE>

                                                                   SCHEDULE 4.10

                                  ERISA MATTERS
                                  -------------

                             EXISTING ERISA MATTERS
--------------------------------------------------------------------------------

Dollar General Corporation Retiree Medical Plan - Medical and Rx coverage for
officers of the corporation. The eligibility requirement is age 45 or 5 years of
service. Coverage terminates when retiree becomes Medicare eligible; death of
employee; employee has access to other group coverage through an employer.

<PAGE>

                                                                   SCHEDULE 4.16

                                  SUBSIDIARIES
                                  ------------
<TABLE>
<CAPTION>

                                        JURISDICTION OF
                                        INCORPORATION/           OWNERSHIP OF CAPITAL
  NO.              ENTITY               ORGANIZATION            STOCK/PARTNERS/MEMBERS               TYPE
----------------------------------------------------------------------------------------------------------------------------
   <S>  <C>                               <C>             <C>                                     <C>
   1    Dolgencorp, Inc.                  Kentucky        Dollar General Corporation              Corporation
   2    Dolgencorp of Texas, Inc.         Kentucky        Dolgencorp, Inc.                        Corporation
   3    Dade Lease Management, Inc.       Delaware        Dollar General Corporation              Corporation
   4    The    Greater    Cumberland
        Insurance Company                 Vermont         Dollar General Financial, Inc,          Corporation
   5    Dollar  General   Financial,
        Inc.                              Tennessee       Dollar General Corporation              Corporation
   6    Dollar General  Intellectual      Vermont         Dade  Lease   Management,   Inc.        -
        Property, L.P.                                    General Partner                         Limited partnership
                                                          The  Greater  Cumberland  Insurance
                                                          Company - Limited Partner
   7    Dollar General Partners           Kentucky        Dolgencorp, Inc. - General Partner      General partnership
                                                          Dade  Lease   Management,   Inc.        -
                                                          General Partner
                                                          Dollar  General  Financial,  Inc.       -
                                                          General Partner
   8    Dolgencorp of New York, Inc.      Kentucky        Dolgencorp, Inc.                        Corporation
   9    DG Logistics, LLC                 Tennessee       Dolgencorp, Inc.                        Limited liability company
   10   Dollar General Stores, Ltd.       Kentucky        Dolgencorp, Inc. - General Partner      Limited partnership
                                                          Dade  Lease   Management,   Inc.        -
                                                          Limited Partner
   11   Nations Title Company, Inc.       Tennessee       Dollar General Financial, Inc.          Corporation
   12   Dollar  General   Properties
        LLC                               Delaware        Dolgencorp, Inc.                        Limited liability company
   13   Dollar  General   Properties
        of Kentucky LLC                   Delaware        Dollar General Partners                 Limited liability company
   14   Dollar  General  Investment,
        Inc.                              Delaware        Dollar General Corporation              Corporation

</TABLE>

                                 Schedule 4.16

<PAGE>

                                                                    SCHEDULE 7.1

                              EXISTING INDEBTEDNESS
                              ---------------------

<TABLE>
<CAPTION>
                                                                                                        AMOUNT
   NO.                    EXISTING INDEBTEDNESS AS OF MAY 3, 2002                                   $ IN THOUSANDS
-------------------------------------------------------------------------------------------------------------------
    <S>  <C>                                                                                           <C>
    1    Indenture dated as of June 21, 2000 between Dollar General Corporation as Issuer,             $200,000
           the Guarantors and First Union National Bank as Trustee, governing the Borrower's
           8 5/8% Notes due June 15, 2010

    2    Lease and Agreement dated as of April 30, 1997 between Sun-Dollar, L.P. as Landlord            $53,121
           and Dollar General Corporation as Tenant (South Boston, VA distribution center);
           (Capital Lease Obligation)

    3    Lease dated as of January 19, 1999 between DG Ardmore, LLC as Landlord and                     $42,365
           Dollar General Corporation as Tenant (Ardmore, OK distribution center)
           (Capital Lease Obligation)

    4    Lease Agreement dated as of June 1, 2000 between FU/DG Fulton, LLC as Lessor and               $14,873
           Dollar General Corporation as Lessee (Fulton, MO distribution center)
           (Capital Lease Obligation)

    5    Lease Agreement dated as of June 1, 2000 between FU/DG Indianola, LLC as Lessor                $10,321
           and Dollar General Corporation as Lessee (Indianola, MS  distribution center)
           (Capital Lease Obligation)

    6    Equipment Lease dated as of July 28, 1999 between First Union Commercial                        $8,216
           Corporation as Lessor and Dollar General Corporation as Lessee
           (Capital Lease Obligation for airplane)

    7    Term Lease Master Agreement dated as of November 14, 1994 between IBM Credit                   $28,486
           Corporation as Lessor and Dollar General Corp as Lessee
           (Capital Lease Obligation)

    8    Standby letter of credit, Bank of America as Issuer, Dollar General Corporation                 $1,959
           as Applicant and National Union Fire Insurance as Beneficiary - (face amount)

    9    Standby letter of credit, Bank of America as Issuer, Dollar General Corporation                   $135
           as Applicant and Ace American Insurance Group as Beneficiary - (face amount)

   10    Standby letter of credit line, Farmers National Bank as lender and Dollar General                  $98
           Corporation as borrower ($250 line of credit; $98 face amount)

   11    Interest Rate Swap Transaction dated as of July 20, 1999 between Dollar General                   $922
           Corporation and SunTrust Bank, Atlanta, expiring September 1, 2002
           ($100,000 notional amount; $922 termination cost)

   12    Promissory Notes to Robert J. Wood and John C. Wellons dated as of October 7, 1977                 $39
           (Outstanding principal amount)

   13    Intercompany indebtedness

</TABLE>
                                  Schedule 7.1

<PAGE>

                                                                    SCHEDULE 7.2

                                 EXISTING LIENS

   NO.                   EXISTING LIENS ($ IN THOUSANDS)
--------------------------------------------------------------------------------
  1 - 7   Leases described in items 1 through 7 of Schedule 7.1

    8     Cash collateral under the Cash Collateral Agreement between
          Dolgencorp, Inc. and D.L. Peterson Trust in the amount of $1,551 as of
          May 31, 2002

    9     Security interests granted in goods that are the subjects of drafts
           drawn under the trade letters of credit issued pursuant to the FUNB
           Group Irrevocable Commercial Letter of Credit Agreement Terms and
           Conditions

    10    Security interests granted in goods that are the subjects of drafts
           drawn under the trade letters of credit issued pursuant to the
           Continuing Documentary Credit Agreement between Dolgencorp, Inc. and
           Continental Bank N.A.

    11    The Greater Cumberland Insurance Company cash collateral in the amount
           of $250 as May 31, 2002

    12    Collateral for workers' compensation claims - Texas Workers'
          Compensation Commission in the amount of $3,800 as of May 31, 2002

                                  Schedule 7.2

<PAGE>

                                                                    SCHEDULE 7.4

                              EXISTING INVESTMENTS

                  EXISTING INVESTMENTS ($ IN THOUSANDS)
-------------------------------------------------------------------
       Promissory Note between Standard Candy Company, Inc.
         as Maker and Dolgencorp, Inc. in the amount of $389 as
         of May 3, 2002

                                  Schedule 7.4
<PAGE>

                                   EXHIBIT A-1

                      FORM OF 3-YEAR REVOLVING CREDIT NOTE
                      ------------------------------------

[$           ]                                                  Atlanta, Georgia
  -----------                                                   June      , 2002
                                                                    ------

     FOR  VALUE  RECEIVED,  the  undersigned,   DOLLAR  GENERAL  CORPORATION,  a
Tennessee  corporation (the "Borrower"),  hereby promises to pay to the order of
[NAME OF LENDER]  (the  "Lender"),  for the  account of its  Applicable  Lending
Office,  at  the  office  of  SunTrust  Bank,  as   Administrative   Agent  (the
"Administrative  Agent"), at 303 Peachtree St., N.E., Atlanta, Georgia 30303, on
the Revolving Commitment  Termination Date, the principal sum of [amount of such
Lender's  Revolving  Commitment]  or, if less,  the aggregate  unpaid  principal
amount of all Revolving Loans made by the Lender to the Borrower pursuant to the
Credit  Agreement  described  below,  in lawful  money of the  United  States of
America in immediately available funds, and to pay interest from the date hereof
on the principal amount thereof from time to time outstanding, in like funds, at
said  office,  at the rate or rates  per  annum  and  payable  on such  dates as
provided in the Credit Agreement.  In addition, the Borrower further promises to
pay all costs of  collection,  including the reasonable  attorneys'  fees of the
Lender,  if any amounts  evidenced  by this Note are  collected by or through an
attorney-at-law or in bankruptcy or other judicial proceedings.

     The Borrower promises to pay interest,  on demand, on any overdue principal
and, to the extent  permitted by law, overdue interest from their due dates at a
rate or rates provided in the Credit Agreement.

     All borrowings  evidenced by this Note and all payments and  prepayments of
the principal hereof and the date thereof shall be endorsed by the holder hereof
on the  schedule  attached  hereto and made a part  hereof or on a  continuation
thereof  which shall be attached  hereto and made a part  hereof,  or  otherwise
recorded by such holder in its internal records;  provided,  that the failure of
the holder  hereof to make such a notation or any error in such  notation  shall
not affect the obligations of the Borrower to make the payments of principal and
interest in accordance with the terms of this Note and the Credit Agreement.

     This Note is one of the  Revolving  Credit  Notes  referred  to in,  and is
entitled to the benefits of, the 3-Year  Revolving  Credit Agreement dated as of
June __, 2002, among the Borrower,  the Lender and certain other lenders parties
thereto,  the Administrative  Agent,  Credit Suisse First Boston, as Syndication
Agent, and Key Bank National  Association and Firstar Bank, as  Co-Documentation
Agents (as the same may be amended, supplemented or otherwise modified from time
to time, the "Credit  Agreement";  the capitalized terms that are defined in the
Credit Agreement being used in this Note with the respective  meanings  assigned
to such  capitalized  terms  in the  Credit  Agreement).  The  Credit  Agreement
contains,  among other things,

<PAGE>

provisions  for the  acceleration  of the maturity  hereof upon the happening of
certain  events,  for  prepayment of the principal  hereof prior to the maturity
hereof  and for the  amendment  or waiver of  certain  provisions  of the Credit
Agreement, all upon the terms and conditions therein specified.

     THIS NOTE HAS BEEN  EXECUTED  AND  DELIVERED  BY THE  BORROWER  IN ATLANTA,
GEORGIA,  AND SHALL BE CONSTRUED IN ACCORDANCE  WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

                                                  DOLLAR GENERAL CORPORATION

                                                  --------------------------
                                                  Name:
                                                  Title:

<PAGE>

<TABLE>
<CAPTION>

                               LOANS AND PAYMENTS
                               ------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

    <S>                 <C>                         <C>                 <C>                   <C>
                                                                          Unpaid                Name of Person
    Date                  Amount and                 Payments of         Principal                  Making
                         Type of Loan                 Principal          Balance of                Notation
                             Note

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------
</TABLE>

<PAGE>

                                   EXHIBIT A-2

                             FORM OF SWINGLINE NOTE
                             ----------------------

$10,000,000.00                                                  Atlanta, Georgia
                                                                June      , 2002
                                                                    ------

     FOR  VALUE  RECEIVED,  the  undersigned,   DOLLAR  GENERAL  CORPORATION,  a
Tennessee  corporation (the "Borrower"),  hereby promises to pay to the order of
SUNTRUST BANK (the "Lender"),  for the account of its Applicable Lending Office,
at the office of SunTrust  Bank, as  Administrative  Agent (the  "Administrative
Agent"),  at 303 Peachtree St., N.E.,  Atlanta,  Georgia 30303, on the Swingline
Commitment Termination Date, the principal sum of TEN MILLION AND NO/100 DOLLARS
($10,000,000.00)  or, if less,  the  aggregate  unpaid  principal  amount of all
Swingline  Loans  made by the  Lender to the  Borrower  pursuant  to the  Credit
Agreement  described  below,  in lawful money of the United States of America in
immediately  available  funds,  and to pay interest  from the date hereof on the
principal amount thereof from time to time  outstanding,  in like funds, at said
office,  at the rate or rates per annum and payable on such dates as provided in
the Credit  Agreement.  In addition,  the Borrower  further  promises to pay all
costs of collection,  including the reasonable attorneys' fees of the Lender, if
any  amounts   evidenced   by  this  Note  are   collected   by  or  through  an
attorney-at-law or in bankruptcy or other judicial proceedings.

     The Borrower promises to pay interest,  on demand, on any overdue principal
and, to the extent  permitted by law, overdue interest from their due dates at a
rate or rates provided in the Credit Agreement.

     All borrowings  evidenced by this Note and all payments and  prepayments of
the principal hereof and the date thereof shall be endorsed by the holder hereof
on the  schedule  attached  hereto and made a part  hereof or on a  continuation
thereof  which shall be attached  hereto and made a part  hereof,  or  otherwise
recorded by such holder in its internal records;  provided,  that the failure of
the holder  hereof to make such a notation or any error in such  notation  shall
not affect the obligations of the Borrower to make the payments of principal and
interest in accordance with the terms of this Note and the Credit Agreement.

     This Note is the  Swingline  Note  referred  to in, and is  entitled to the
benefits of, the 3-Year  Revolving  Credit  Agreement dated as of June __, 2002,
among the Borrower,  the Lender and certain other lenders parties  thereto,  the
Administrative  Agent, Credit Suisse First Boston, as Syndication Agent, and Key
Bank National  Association and Firstar Bank, as Co-Documentation  Agents (as the
same may be amended,  supplemented or otherwise  modified from time to time, the
"Credit  Agreement";  the  capitalized  terms  that are  defined  in the  Credit
Agreement being used in this Note with the respective  meanings assigned to such
capitalized terms in the Credit Agreement). The Credit Agreement contains, among
other things,  provisions for the  acceleration  of the maturity hereof upon the
happening of certain events, for prepayment of the principal

<PAGE>

hereof prior to the maturity  hereof and for the  amendment or waiver of certain
provisions of the Credit  Agreement,  all upon the terms and conditions  therein
specified.

     THIS NOTE HAS BEEN  EXECUTED  AND  DELIVERED  BY THE  BORROWER  IN ATLANTA,
GEORGIA,  AND SHALL BE CONSTRUED IN ACCORDANCE  WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

                                                      DOLLAR GENERAL CORPORATION

                                                      --------------------------
                                                      Name:
                                                      Title:

<PAGE>

<TABLE>
<CAPTION>

                                                LOANS AND PAYMENTS
                                                ------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------
   <S>                   <C>                        <C>              <C>                       <C>
                                                                      Unpaid Principal          Name of Person
    Date                  Amount and                 Payments of         Balance of                 Making
    ----                 Type of Loan                 Principal             Note                   Notation
                         ------------                 ---------             ----                   --------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

-------------- --------------------------------- -------------------- ------------------ -----------------------------

</TABLE>

<PAGE>

                                                               [3-Year Revolving
                                                               Credit Agreement]
                                    EXHIBIT B

                        FORM OF ASSIGNMENT AND ACCEPTANCE
                        ---------------------------------

     Reference is made to the 3-Year  Revolving  Credit  Agreement,  dated as of
June __, 2002 (as amended, supplemented or otherwise modified from time to time,
the  "Credit  Agreement"),  among  Dollar  General  Corporation,  a  corporation
      -----------------
organized  under the laws of Tennessee (the  "Borrower"),  the several banks and
                                              --------
other financial  institutions or entities from time to time parties thereto (the
"Lenders"),  SunTrust  Bank,  as  Administrative  Agent for the Lenders (in such
 -------
capacity,   the  "Administrative   Agent"),   Credit  Suisse  First  Boston,  as
                  ----------------------
Syndication  Agent  for the  Lenders,  and  Firstar  Bank and Key Bank  National
Association,  as  Co-Documentation  Agents  for the  Lenders.  Unless  otherwise
defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement.

     The  Assignor  identified  on  Schedule 1 hereto (the  "Assignor")  and the
                                    ----------               --------
Assignee identified on Schedule 1 hereto (the "Assignee") agree as follows:
                       ----------              --------

     1. The  Assignor  hereby  irrevocably  sells and  assigns  to the  Assignee
without recourse to the Assignor,  and the Assignee hereby irrevocably purchases
and  assumes  from the  Assignor  without  recourse to the  Assignor,  as of the
Effective Date (as defined below),  the interest  described in Schedule 1 hereto
                                                               ----------
(the "Assigned  Interest") in and to the Assignor's rights and obligations under
      ------------------
the Credit  Agreement with respect to those credit  facilities  contained in the
Credit  Agreement  as are set  forth  on  Schedule  1 hereto  (individually,  an
                                          -----------
"Assigned Facility";  collectively,  the "Assigned Facilities"),  in a principal
 -----------------                        -------------------
amount for each Assigned Facility as set forth on Schedule 1 hereto.
                                                  ----------

     2. The  Assignor  (a) makes no  representation  or warranty  and assumes no
responsibility  with respect to any  statements,  warranties or  representations
made in or in  connection  with the  Credit  Agreement  or with  respect  to the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit  Agreement,  any other Loan  Document or any other  instrument  or
document  furnished  pursuant  thereto,  other  than that the  Assignor  has not
created any adverse claim upon the interest  being  assigned by it hereunder and
that such  interest is free and clear of any such  adverse  claim;  (b) makes no
representation  or warranty  and assumes no  responsibility  with respect to the
financial  condition  of the  Borrower  or any  obligor  or the  performance  or
observance  by the Borrower or any obligor of any of its  obligations  under the
Credit  Agreement or any other Loan Document or any other instrument or document
furnished  pursuant  hereto or thereto;  and (c)  attaches  any Notes held by it
evidencing the Assigned  Facilities  and [(i)] requests that the  Administrative
Agent, upon request by the Assignee,  exchange the attached Notes, if any, for a
new Note or Notes payable to the Assignee [and (ii) if the Assignor has retained
any interest in an Assigned  Facility,  requests that the  Administrative  Agent
exchange the  attached  Notes,  if any,  for a new Note or Notes  payable to the
Assignor,  in each case] in amounts  which  reflect  the  assignment  being made
hereby  (and after  giving  effect to any other  assignments  which have  become
effective on the Effective Date).

<PAGE>

     3. The Assignee (a) represents  and warrants that it is legally  authorized
to enter into this Assignment and Acceptance;  (b) confirms that it has received
a copy of the Credit  Agreement and each other Loan Document which such Assignee
has  requested,  together  with  copies of the  financial  statements  delivered
pursuant to Section 4.4 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 Acceptance;  (c) agrees that it will, independently and
without reliance upon the Assignor, the Administrative Agent 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 Credit Agreement,  the other Loan Documents or any other instrument or
document furnished  pursuant hereto or thereto;  (d) appoints and authorizes the
Administrative  Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement,  the other Loan Documents
or any other instrument or document  furnished pursuant hereto or thereto as are
delegated to the Administrative  Agent by the terms thereof,  together with such
powers as are  incidental  thereto;  and (e) agrees that it will be bound by the
provisions of the Credit Agreement and will perform in accordance with its terms
all the obligations  which by the terms of the Credit  Agreement are required to
be performed by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligations pursuant to Section 2.20
of the Credit Agreement.

     4.  The  effective  date of this  Assignment  and  Acceptance  shall be the
Effective  Date of  Assignment  described  in Schedule 1 hereto (the  "Effective
                                              ----------               ---------
Date").  Following the execution of this Assignment and  Acceptance,  it will be
----
delivered to the Administrative  Agent for acceptance by it and recording by the
Administrative  Agent  pursuant  to the Credit  Agreement,  effective  as of the
Effective   Date  (which  shall  not,   unless   otherwise   agreed  to  by  the
Administrative  Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative  Agent).  Assignee  represents to
each other party hereto that it is a bank, savings and loan association or other
similar savings or thrift  institution,  insurance  company,  investment fund or
company,  or other  financial  institution  or  lending  company  that  makes or
acquires  commercial loans in the ordinary course of its business and that it is
participating  in the  Credit  Agreement  as a Lender for its own  account  (but
subject  to its  rights to direct  the  disposition  of its  assets,  including,
without limitation, assignments and sales of participation interest in the Loans
and its  Commitment  as  contemplated  in the  Credit  Agreement  and  for  such
commercial  purposes,  and that it has  knowledge  and  experience  to be and is
capable of  evaluating  the merits and risks of being a Lender  under the Credit
Agreement.

     5. Upon such  acceptance and recording,  from and after the Effective Date,
the  Administrative  Agent shall make all  payments  in respect of the  Assigned
Interest (including payments of principal, interest, fees and other amounts) [to
the Assignor for amounts  which have  accrued to the  Effective  Date and to the
Assignee for amounts which have accrued  subsequent  to the Effective  Date] [to
the Assignee  whether such amounts have accrued prior to the  Effective  Date or
accrue  subsequent to the Effective  Date.  The Assignor and the Assignee  shall
make all  appropriate  adjustments in payments by the  Administrative  Agent for
periods  prior to the  Effective  Date or with  respect  to the  making  of this
assignment directly between themselves.]

<PAGE>

     6. From and after the Effective  Date, (a) the Assignee shall be a party to
the  Credit  Agreement  and,  to the  extent  provided  in this  Assignment  and
Acceptance, have the rights and obligations of a Lender thereunder and under the
other Loan  Documents and shall be bound by the  provisions  thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Acceptance and the
Credit  Agreement,  relinquish  its rights and be released from its  obligations
under the Credit Agreement.

     7. This  Assignment  and  Acceptance  shall be governed by and construed in
accordance with the laws of the State of Georgia.

     8. This  Agreement may be executed in any number of  counterparts,  each of
which when so executed  and  delivered  shall be an  original,  but all of which
shall constitute one and the same instrument.

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Assignment  and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.
                            ----------

<PAGE>

                                   Schedule 1
                          to Assignment and Acceptance

Name of Assignor:
                 ----------------------------
Name of Assignee:
                 ----------------------------
Effective Date of Assignment:
                             ----------------
                                                           Commitment Percentage
Credit Facility Assigned       Principal Amount Assigned           Assigned
------ -------- --------       --------- ------ --------           --------

Revolving Credit Facility
(with proportionate share of
Letter of Credit Subfacility)   $                                            %
                                 ------------                         -------

[Name of Assignee]                           [Name of Assignor]

By:                                          By:
   ----------------------                       --------------------------------
          Title                                         Title

Accepted:                                    Consented to (if required
                                             pursuant  to the Credit Agreement):

SUNTRUST BANK,                               DOLLAR GENERAL CORPORATION
as Administrative Agent

By:                                          By:
   ----------------------                       --------------------------------
         Title                                        Title

<PAGE>

                                    EXHIBIT C
                                    ---------

                           Form Of Guaranty Agreement
                           --------------------------

     THIS GUARANTY  AGREEMENT (this  "Guarantee")  made and delivered as of June
___,  2002,  by  each of the  Subsidiaries  of  Dollar  General  Corporation,  a
Tennessee corporation, identified on the signature pages of this Guarantee (each
a "Guarantor" and  collectively  the  "Guarantors")  in favor of (i) each of the
Lenders from time to time parties to the Credit Agreement  described below (each
a "Lender" and  collectively  the  "Lenders"),  and (ii)  SUNTRUST  BANK, in its
capacities as Administrative Agent, Issuing Bank, and Collateral Agent under the
terms of the Credit  Agreement and the other Loan  Documents  referred to in the
Credit Agreement (in such capacities, the "Administrative Agent", "Issuing Bank"
and "Collateral Agent" respectively;  the Lenders, the Administrative Agent, the
Issuing  Bank,  and  Collateral  Agent  collectively  referred  to herein as the
"Guaranteed Parties").

                              W I T N E S S E T H:
                              --------------------

     WHEREAS, Borrower, the Lenders, the Administrative Agent, the Issuing Bank,
Credit Suisse First Boston, as Syndication  Agent, and Firstar Bank and Key Bank
National  Association,  as  Co-Documentation  Agents,  are  parties to a certain
3-Year Revolving Credit Agreement dated as of June ___, 2002 (as the same may be
amended,  restated,  and supplemented from time to time, the "Credit Agreement";
capitalized  terms  used  in this  Guarantee  that  are  defined  in the  Credit
Agreement  being  used  herein  with  the  respective  meanings  given  to  such
capitalized terms in the Credit Agreement);

     WHEREAS,  it is a condition  to the  Lenders'  obligation  to make Loans to
Borrower,  and to issue  Letters of Credit for the  account of  Borrower  or its
Subsidiaries,  as provided in the Credit  Agreement  that each  Guarantor,  as a
subsidiary of Borrower,  unconditionally guarantee the payment of the Loans, and
the payment of all  obligations  of Borrower to  reimburse  the Issuing  Bank in
respect  of LC  Disbursements  made under the  Letters of Credit,  and all other
Oblig ations of Borrower as provided in the Loan Documents (the Loans, Letter of
Credit  reimbursement  obligations,  and such  other  Obligations  being  herein
collectively referred to as the "Guaranteed  Obligations";  the term "Guaranteed
Obligations" to include,  without  limitation (i) all principal and interest due
with respect to all Loans  outstanding  under the terms of the Credit Agreement,
including,  without  limitation,  interest  accruing or that would have  accrued
after the filing of a petition  in  bankruptcy  or other  insolvency  proceeding
(whether  or not such  claim  for  interest  is  allowed  or  allowable  in such
proceeding), and all obligations and liabilities of Borrower arising pursuant to
any interest rate protection or swap agreements entered into with one or more of
the  Lenders,  (ii)  all  fees,  expenses,   amounts  payable  by  Borrower  for
reimbursement or indemnification under the terms of the Credit Agreement and any
other Loan Document,  and all amounts advanced by any of the Guaranteed  Parties
to  protect  or  preserve  the  value of any  security  for the  Loans and other
Guaranteed Obligations, and (iii) all renewals,

<PAGE>

extensions,  modifications, and refinancings (in whole or in part) of any of the
amounts referred to in clauses (i) and (ii) above);

     WHEREAS,  the making of the Loans and the issuance of the Letters of Credit
will result in direct and substantial benefits to each Guarantor.

     NOW, THEREFORE, in order to induce the Guaranteed Parties to make the Loans
and otherwise to extend and continue to extend credit to Borrower hereafter, and
in consideration of $10.00 and other good and valuable consideration received by
Guarantor, each Guarantor hereby declares and agrees:

     1. Each Guarantor hereby  unconditionally and irrevocably guarantees to the
Guaranteed  Parties,  and any transferee of any of the  Guaranteed  Obligations,
jointly and severally, the full and prompt payment of all Guaranteed Obligations
and all costs,  charges and  expenses  (including  reasonable  attorneys'  fees)
incurred or sustained by the Guaranteed  Parties in enforcing the obligations of
such Guarantor  hereunder.  If any portion of the Guaranteed  Obligations is not
paid when due, each Guarantor  hereby agrees to and will  immediately  pay same,
without  resort by the  Guaranteed  Parties  to any other  person or party.  The
obligation of each  Guarantor to the  Guaranteed  Parties  hereunder is primary,
absolute and unconditional,  except as may be specifically set forth herein. Any
and all payments by each  Guarantor  hereunder  shall be made free and clear of,
and without deduction for, any set-off, counterclaim, recoupment, or withholding
so that, in each case, each Guaranteed  Party will receive,  after giving effect
to any Taxes (other than taxes  applicable to the Guaranteed  Party of the types
described  in the  definition  of  "Excluded  Taxes" as set forth in the  Credit
Agreement),  the full amount that it would otherwise be entitled to receive with
respect to the Guaranteed  Obligations  (but without  duplication of amounts for
Taxes  already   included  in  the  Guaranteed   Obligations).   Each  Guarantor
acknowledges and agrees that this is a guarantee of payment when due, and not of
collection.

     2. This  Guarantee  is  continuing  in nature and shall be  effective  with
respect to the full amount  outstanding  under all Guaranteed  Obligations,  now
existing or hereafter made or extended,  and notwithstanding (i) any bankruptcy,
insolvency, reorganization, composition, adjustment, dissolution, liquidation or
like proceeding relating to any Guarantor or Borrower,  or any action taken with
respect to this  Guarantee by any trustee or receiver,  or by any court,  in any
such  proceeding,  (ii) any lack of  validity  or  enforceability  of the Credit
Agreement  or the other Loan  Documents,  or (iii) any other  circumstance  that
might  otherwise  constitute  a defense  available  to, or a  discharge  of, any
Guarantor. Each Guarantor acknowledges and agrees that the number and amounts of
outstanding  Guaranteed  Obligations  may fluctuate from time to time hereafter,
and that Borrower may make payments to the Guaranteed  Parties from time to time
hereafter. Each Guarantor expressly agrees that this Guarantee shall continue in
full  force and effect  notwithstanding  such  fluctuations  and  payments,  and
whether or not any  Guaranteed  Obligations  are  outstanding  at any particular
time,  until such time as all Guaranteed  Obligations have been paid in full and
any  commitment of the  Guaranteed  Parties under the Credit  Agreement has been
terminated.

                                      -2-
<PAGE>

     3.  Each  Guarantor  hereby  waives  notice  of  the  Guaranteed   Parties'
acceptance of this Guarantee and the creation, extension or renewal of any Loans
or other Guaranteed Obligations. Each Guarantor hereby consents and agrees that,
at any time or times, without notice to or further approval from Guarantor,  and
without in any way affecting the  obligations of such Guarantor  hereunder,  the
Guaranteed  Parties may, with or without  consideration (i) release,  compromise
with, or agree not to sue, in whole or in part,  Borrower or any other  obligor,
guarantor,  endorser or surety on any Loans or any other Guaranteed Obligations,
(ii) renew, extend,  accelerate, or increase or decrease the principal amount of
any Loans or other  Guaranteed  Obligations,  either in whole or in part,  (iii)
amend,  waive,  or  otherwise  modify  any of the  terms  of any  Loans or other
Guaranteed Obligations or of any mortgage, deed of trust, security agreement, or
other  undertaking  of Borrower or any other  obligor,  endorser,  guarantor  or
surety in connection with any Loans or other  Guaranteed  Obligations,  and (iv)
apply any payment  received from Borrower or from any other obligor,  guarantor,
endorser or surety on the Loans or other  Guaranteed  Obligations  to any of the
liabilities of Borrower or of such other obligor, guarantor, endorser, or surety
which the Guaranteed Parties may choose.

     4. Each Guarantor  hereby  consents and agrees that the Guaranteed  Parties
may at any time or  times,  either  with or  without  consideration,  surrender,
release  or  receive  any  property  or other  collateral  of any kind or nature
whatsoever held by it or for its account  securing any Loans or other Guaranteed
Obligations,  or substitute any collateral so held by the Guaranteed Parties for
other collateral of like or different kind, without notice to or further consent
from such Guarantor, and such surrender,  receipt, release or substitution shall
not in  any  way  affect  the  obligations  of  such  Guarantor  hereunder.  The
Guaranteed Parties shall have full authority to adjust,  compromise, and receive
less than the amount due upon any such collateral, and may enter into any accord
and  satisfaction  agreement with respect to the same as the Guaranteed  Parties
may  deem  advisable   without  affecting  the  obligations  of  such  Guarantor
hereunder. The Guaranteed Parties shall be under no duty to undertake to collect
upon  such  collateral  or any  part  thereof,  and no  Guarantor's  obligations
hereunder  shall be affected by the Guaranteed  Parties'  alleged  negligence or
mistake in judgment in handling,  disposing of, obtaining, or failing to collect
upon or perfect a security interest in, any such collateral.

     5. Each Guarantor hereby waives presentment, demand, protest, and notice of
dishonor of any of the liabilities  guaranteed  hereby.  The Guaranteed  Parties
shall have no duty or  obligation  (i) to proceed or exhaust any remedy  against
Borrower,  any other  obligor,  guarantor,  endorser,  or surety on any Loans or
other  Guaranteed  Obligations,  or any other  security  held by the  Guaranteed
Parties  for any  Loans or  other  Guaranteed  Obligations,  or (ii) to give any
notice whatsoever to Borrower, any Guarantor,  or any other obligor,  guarantor,
endorser,  or surety on any Loans or other Guaranteed  Obligations,  in any case
before  bringing  suit,  exercising  rights to any such security or  instituting
proceedings  of any kind against any  Guarantor,  Borrower,  or any of them, and
each Guarantor  hereby waives any requirement for such actions by the Guaranteed
Parties.  Upon default by Borrower  and the  Guaranteed  Parties'  demand to any
Guarantor  hereunder,  such Guarantor  shall be held and bound to the Guaranteed
Parties  directly as  principal  debtor in respect of the payment of the amounts
hereby guaranteed, such liability of such Guarantor being joint and several with
Borrower, each other Guarantor,  and

                                      -3-

<PAGE>

all other  obligors,  guarantors,  endorsers  and sureties on the Loans or other
Guaranteed Obligations.

     6. Each Guarantor  hereby waives to the fullest extent  possible as against
Borrower  and its  assets,  any and all rights,  whether at law,  in equity,  by
agreement or otherwise, to subrogation, indemnity, reimbursement,  contribution,
payment  or any  other  claim,  cause of  action,  right or  remedy  that  would
otherwise arise out of any payment by such Guarantor hereunder,  notwithstanding
the manner or nature of such  payment  including  but not  limited to (a) direct
payment by such Guarantor, (b) set-off by the Administrative Agent, Issuing Bank
or any Lender  against  any  liability  or deposit  owed by such  entity to such
Guarantor,  (c) recovery by the Administrative Agent, Issuing Bank or any Lender
against such Guarantor or any property of such  Guarantor,  as the result of any
judgment,  judgment lien, or legal process,  (d) the application of the proceeds
of any  disposition of all or any part of the collateral to the repayment or all
or any part of the Guaranteed  Obligations,  or (e) the conveyance of all or any
part of any Collateral to the Administrative  Agent, Issuing Bank or the Lenders
in  satisfaction  of all or any part of the  Guaranteed  Obligations,  until the
indefeasible  payment in full of the  Guaranteed  Obligations.  The  waivers set
forth above are intended by each Guarantor and the Administrative Agent, Issuing
Bank and the Lenders to be for the benefit of Borrower and such waivers shall be
enforceable  by Borrower as an absolute  defense to any action by such Guarantor
against  Borrower or its assets  which  action  arises out of any payment by any
Guarantor hereunder.

     7. As an independent  covenant,  each Guarantor hereby expressly  covenants
and agrees for the benefit of the Guaranteed  Parties that all  obligations  and
liabilities of Borrower and any other  Subsidiaries of Borrower to any Guarantor
of  whatsoever  description,  including  without  limitation,  all  intercompany
receivables  of such  Guarantor  from  Borrower and any such other  Subsidiaries
(collectively,  the "Junior Claims") shall be subordinate and junior in right of
payment to all  obligations of Borrower and any such other  Subsidiaries  to the
Guaranteed Parties under the terms of the Credit Agreement,  this Guarantee, and
the other Loan Documents  (collectively,  the "Senior  Claims").  If an Event of
Default  shall occur,  then,  unless and until such Event of Default  shall have
been  cured,  waived,  or shall  have  otherwise  ceased to exist,  no direct or
indirect payment (in cash, property,  securities, by set-off or otherwise) shall
be made by Borrower and any such other  Subsidiaries to any Guarantor on account
of or in any manner in respect of any Junior  Claim  except  such  payments  and
distributions  the  proceeds  of which shall be applied to the payment of Senior
Claims.

     In the event of a Proceeding (as  hereinafter  defined),  all Senior Claims
shall  first  be  paid  in  full  before  any  direct  or  indirect  payment  or
distribution (in cash, property,  securities,  by set-off or otherwise) shall be
made to any  Guarantor  on  account of or in any manner in respect of any Junior
Claim  except such  payments  and  distributions  the proceeds of which shall be
applied  to the  payment  of Senior  Claims.  For  purposes  of the  immediately
preceding sentence,  "Proceeding" means Borrower or any Guarantor shall commence
a voluntary case  concerning  itself under the United States  Bankruptcy Code or
any other  applicable  bankruptcy  laws;  or any  involuntary  case is commenced
against Borrower or any Guarantor;  or a custodian (as defined in the Bankruptcy
Code or any other applicable  bankruptcy laws) is appointed for, or takes charge
of, all or any substantial part of the property of Borrower or any Guarantor, or
Borrower  or  any   Guarantor   commences  any  other   proceedings   under  any

                                      -4-
<PAGE>

reorganization,  arrangement, adjustment of debt, relief of debtor, dissolution,
insolvency or liquidation or similar law of any jurisdiction,  whether commenced
against  Borrower or any Guarantor,  or Borrower or any Guarantor is adjudicated
insolvent or bankrupt;  or any order of relief or other order approving any such
case or  proceeding  is  entered;  or  Borrower  or any  Guarantor  suffers  any
appointment of any custodian or the like for it or any  substantial  part of its
property;  or  Borrower  or any  Guarantor  makes a general  assignment  for the
benefit of creditors;  or Borrower or any Guarantor  shall fail to pay, or shall
state that it is unable to pay, or shall be unable to pay,  its debts  generally
as they become due;  or  Borrower or any  Guarantor  shall call a meeting of its
creditors with a view to arranging a composition or adjustment of its debts;  or
Borrower  or any  Guarantor  shall by any act or  failure  to act  indicate  its
consent  to,  approval  of or  acquiescence  in  any of  the  foregoing;  or any
organizational  action  shall be  taken by  Borrower  or any  Guarantor  for the
purpose of effecting any of the foregoing.

     In the event any direct or indirect  payment or  distribution  is made to a
Guarantor in contravention of this Section 7, such payment or distribution shall
be deemed received in trust for the benefit of the Guaranteed  Parties and shall
be immediately paid over to the Administrative Agent for application against the
Guaranteed Obligations in accordance with the terms of the Credit Agreement

     Each  Guarantor  agrees  to  execute  such  additional   documents  as  the
Administrative  Agent may  reasonably  request  to  evidence  the  subordination
provided for in this Section 7.

     8. (a) Upon the  occurrence  of an Event of  Default  specified  in Section
8.1(g)  or (h)  of the  Credit  Agreement  with  respect  to the  Borrower,  all
Guaranteed Obligations shall automatically become immediately due and payable by
the  Guarantors,  without  notice or other action on the part of the  Guaranteed
Parties,  and  regardless of whether  payment of the  Guaranteed  Obligations by
Borrower  has then  been  accelerated.  In  addition,  if any event of the types
described  in Section  8.1(g) or (h) of the Credit  Agreement  should occur with
respect to any Guarantor, and the Guaranteed Obligations of the Borrower have or
thereafter  become  due and  payable,  then  the  Guaranteed  Obligations  shall
automatically  become  immediately  due and payable by such  Guarantor,  without
further notice or other action on the part of the Guaranteed Parties.

     (b) Upon the insolvency or bankruptcy of Borrower,  the Guaranteed Parties'
rights  hereunder  shall not be affected or impaired by their  omission to prove
all  or  any  portion  of its  claim,  and  the  Guaranteed  Parties  may in its
discretion  value or refrain from valuing any security held by it without in any
way  releasing,  reducing or otherwise  affecting  any  Guarantor's  obligations
hereunder.  Each  Guarantor  agrees  that this  Guarantee  shall  continue to be
effective  or be  reinstated,  as the case may be, if at any time any payment of
the liabilities hereby guaranteed are rescinded or must otherwise be returned or
restored by the Guaranteed Parties upon the insolvency or bankruptcy of Borrower
or any  other  obligor,  guarantor,  endorser  or  surety  on any Loans or other
Guaranteed Obligations, all as though such payment had not been made.

                                      -5-
<PAGE>

     9. This Guarantee is in addition to, and is not intended to supersede or be
a substitute for any other guarantee,  suretyship agreement, or instrument which
the Guaranteed Parties may hold in connection with any Loans or other Guaranteed
Obligations  and each  Guarantor's  obligations  hereunder shall be deemed to be
joint and several with the obligations of each other Guarantor.

     10.  This  Guarantee  contains  the entire  agreement  between  the parties
relating to the subject matter hereof,  and no provision hereof may be waived or
modified  except by a writing  executed  by each  Guarantor  and the  Guaranteed
Parties.  There is no  understanding  that any person other than the  Guarantors
shall execute this or any similar  Guarantee.  No Guarantor's  execution of this
Guarantee  was based  upon any facts or  materials  provided  by the  Guaranteed
Parties,  nor was  any  Guarantor  induced  to  execute  this  Guarantee  by any
representation,  statement or  information  made or furnished by the  Guaranteed
Parties.  Each  Guarantor  further  acknowledges  and agrees that such Guarantor
assumes sole  responsibility  for  independently  obtaining any  information  or
reports  deemed  necessary by such Guarantor in reaching any decision to execute
this Guarantee.

     11. The failure or forbearance of the Guaranteed Parties on any occasion to
exercise any rights or remedies  hereunder or otherwise  granted to it by law or
another  agreement shall not affect the  obligations of any Guarantor  hereunder
and shall not  constitute a waiver of such right or remedy or preclude the later
or further exercise  thereof.  Time is of the essence of this Guarantee and each
Guarantor's obligations hereunder.

     12. Any notice or demand  which the  Guaranteed  Party's may be required to
give to any Guarantor may be sent or made, at any Guaranteed Parties' option, to
or on such  Guarantor  in the same  manner and with the same  effect as provided
with respect to notices pursuant to Section 10.1 of the Credit  Agreement,  when
delivered,  mailed or sent by  telecopy  to the  address  or  telecopier  number
indicated for such Guarantor below.

     13. This  Guarantee  shall bind and inure to the benefit of the  respective
successors and assigns of each Guarantor and the Guaranteed Parties.

     14. If any provision of this  Guarantee or the  application  thereof to any
person or circumstance  shall, to any extent, be invalid or  unenforceable,  the
remainder of this  Guarantee or the  application  of such provision to the other
persons or  circumstances,  other  than those as to which it is held  invalid or
unenforceable,  shall  not be  affected  thereby,  and  each  provision  of this
Guarantee shall be valid and enforceable to the full extent permitted by law.

     15. In addition to and not in  limitation of all rights of set-off that the
Guaranteed  Parties may have under applicable law, the Guaranteed Parties shall,
upon the  occurrence  of any Event of Default and whether or not the  Guaranteed
Parties have made any demand or the Guaranteed Obligations are matured, have the
right to appropriate and apply to the payment of the Guaranteed  Obligations all
deposits of any Guarantor  (general or special,  time or demand,  provisional or
final) then or thereafter  held by, and other  indebtedness  or property then or
thereafter  owing to any Guarantor by, any of the Guaranteed  Parties whether or
not related to this Guarantee or any transaction hereunder.

                                      -6-
<PAGE>

     16. (a) It is the intent of each Guarantor and the Guaranteed  Parties that
each Guarantor's maximum obligations hereunder shall be:

     (i) in a case or proceeding  commenced by or against such  Guarantor  under
the  Bankruptcy  Code on or  within  one year  from the date on which any of the
Guaranteed  Obligations  are  incurred,  the  maximum  amount  which  would  not
otherwise  cause the Guaranteed  Obligations  (or any other  obligations of such
Guarantor to the Guaranteed  Parties) to be avoidable or  unenforceable  against
such  Guarantor  under (A) Section 548 of the  Bankruptcy  Code or (B) any state
fraudulent transfer or fraudulent conveyance act or statute applied in such case
or proceeding by virtue of Section 544 of the Bankruptcy Code; or

     (ii) in a case or proceeding  commenced by or against such Guarantor  under
the  Bankruptcy  Code  subsequent  to one year from the date on which any of the
Guaranteed  Obligations  are  incurred,  the  maximum  amount  which  would  not
otherwise  cause the  Guaranteed  Obligations  (or any other  obligations of the
Guarantor to the Guaranteed  Parties) to be avoidable or  unenforceable  against
such Guarantor under any state fraudulent transfer or fraudulent  conveyance act
or statute  applied in any such case or  proceeding  by virtue of Section 544 of
the Bankruptcy Code; or

     (iii) in a case or proceeding  commenced by or against such Guarantor under
any law,  statute or  regulation  other  than the  Bankruptcy  Code  (including,
without   limitation,   any  other  bankruptcy,   reorganization,   arrangement,
moratorium,  readjustment  of debt,  dissolution,  liquidation or similar debtor
relief laws),  the maximum amount which would not otherwise cause the Guaranteed
Obligations  (or any  other  obligations  of such  Guarantor  to the  Guaranteed
Parties) to be avoidable or unenforceable against such Guarantor under such law,
statute  or  regulation  including,  without  limitation,  any state  fraudulent
transfer or  fraudulent  conveyance  act or statute  applied in any such case or
proceeding.

(The substantive laws under which the possible avoidance or  unenforceability of
the Guaranteed  Obligations  (or any other  obligations of such Guarantor to the
Guaranteed  Parties)  shall be determined  in any such case or proceeding  shall
hereinafter be referred to as the "Avoidance Provisions").

     (b) To the end set forth in Section 16(a),  but only to the extent that the
Guaranteed  Obligations  would  otherwise  be  subject  to  avoidance  under the
Avoidance  Provisions if such Guarantor is not deemed to have received  valuable
consideration,  fair value or  reasonably  equivalent  value for the  Guaranteed
Obligations,  or if  the  Guaranteed  Obligations  would  render  the  Guarantor
insolvent,  or leave the Guarantor with an unreasonably small capital to conduct
its business, or cause the Guarantor to have incurred debts (or to have intended
to have incurred debts) beyond its ability to pay such debts as they mature,  in
each case as of the time any of the  Guaranteed  Obligations  are deemed to have
been  incurred  under  the  Avoidance  Provisions  and  after  giving  effect to
contribution as among Guarantors,  the maximum Guaranteed  Obligations for which
such Guarantor shall be liable  hereunder shall be reduced to

                                      -7-
<PAGE>

that amount which,  after giving effect thereto,  would not cause the Guaranteed
Obligations  (or any  other  obligations  of such  Guarantor  to the  Guaranteed
Parties),  as so  reduced,  to be  subject  to  avoidance  under  the  Avoidance
Provisions.  This Section 16(b) is intended solely to preserve the rights of the
Guaranteed  Parties  hereunder  to the  maximum  extent that would not cause the
Guaranteed  Obligations  of any  Guarantor to be subject to avoidance  under the
Avoidance Provisions, and neither such Guarantor nor any other Person shall have
any right or claim under this Section 16 as against the Guaranteed  Parties that
would not otherwise be available to such Person under the Avoidance Provisions.

     (c) None of the provisions of this Section 16 are intended in any manner to
alter the obligations of any holder of  subordinated  Indebtedness or the rights
of the  holders  of  "senior  indebtedness"  as  provided  by the  terms  of the
subordinated  Indebtedness.  Accordingly,  it is  the  intent  of  each  of  the
Guarantors  that,  in the event that any  payment or  distribution  is made with
respect to the  subordinated  Indebtedness  prior to the  payment in full of the
Guaranteed  Obligations  by virtue of the  provisions of this Section 16, in any
case or proceeding of the kinds described in clauses (i)-(iii) of Section 16(a),
the  holders  of the  subordinated  Indebtedness  shall be  obligated  to pay or
deliver such  payment or  distribution  to or for the benefit of the  Guaranteed
Parties.  Furthermore,  in respect of the Avoidance Provisions, it is the intent
of each Guarantor  that the  subrogation  rights of the holders of  subordinated
Indebtedness  with  respect  to the  obligations  of the  Guarantor  under  this
Guaranty, be subject in all respects to the provisions of Section 16(b).

     17. (a) THIS  GUARANTEE AND THE RIGHTS AND  OBLIGATIONS  OF EACH  GUARANTOR
HEREUNDER  SHALL BE  CONSTRUED  IN  ACCORDANCE  WITH AND BE  GOVERNED BY THE LAW
(WITHOUT  GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES  THEREOF) OF THE STATE
OF GEORGIA.

     (b) ANY LEGAL ACTION OR  PROCEEDING  WITH RESPECT TO THIS  GUARANTEE OR ANY
DOCUMENT  RELATED HERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF GEORGIA OR
OF THE UNITED  STATES OF AMERICA FOR THE NORTHERN  DISTRICT OF GEORGIA,  AND, BY
EXECUTION AND DELIVERY OF THIS  GUARANTEE,  EACH  GUARANTOR  HEREBY  ACCEPTS FOR
ITSELF  AND IN RESPECT  OF ITS  PROPERTY,  GENERALLY  AND  UNCONDITIONALLY,  THE
JURISDICTION OF THE AFORESAID COURTS.  EACH GUARANTOR HEREBY  IRREVOCABLY WAIVES
ANY OBJECTION,  INCLUDING,  WITHOUT  LIMITATION,  ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE  GROUNDS  OF  FORUM  NON  CONVENIENS,  WHICH IT MAY NOW OR
                                    ----------------------
HEREAFTER  HAVE  TO THE  BRINGING  OF ANY  SUCH  ACTION  OR  PROCEEDING  IN SUCH
RESPECTIVE   JURISDICTIONS.   EACH  GUARANTOR  HEREBY   IRREVOCABLY   DESIGNATES
[CORPORATION  SERVICE  COMPANY]  AS ITS  DESIGNEE,  APPOINTEE  AND AGENT OF SUCH
GUARANTOR TO RECEIVE, FOR AND ON BEHALF OF SUCH GUARANTOR, SERVICE OF PROCESS IN
SUCH  JURISDICTION  IN ANY  LEGAL  ACTION OR  PROCEEDING  WITH  RESPECT  TO THIS
GUARANTEE  OR ANY  DOCUMENT  RELATED  HERETO  AND SUCH  SERVICE  SHALL BE DEEMED

                                      -8-
<PAGE>

COMPLETED THIRTY (30) DAYS AFTER MAILING THEREOF TO SAID AGENT. IT IS UNDERSTOOD
THAT A COPY OF SUCH PROCESS  SERVED ON SUCH AGENT WILL BE PROMPTLY  FORWARDED BY
SUCH AGENT AND BY THE SERVER OF PROCESS BY MAIL TO THE  RESPECTIVE  GUARANTOR AT
ITS ADDRESS SET FORTH HEREIN,  BUT THE FAILURE OF SUCH GUARANTOR TO RECEIVE SUCH
COPY SHALL NOT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, AFFECT IN ANY WAY THE
SERVICE OF SUCH PROCESS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE GUARANTEED
PARTIES TO SERVE  PROCESS IN ANY OTHER  MANNER  PERMITTED  BY LAW OR TO COMMENCE
LEGAL  PROCEEDINGS  OR  OTHERWISE  PROCEED  AGAINST ANY  GUARANTOR  IN ANY OTHER
JURISDICTION.

     (c) TO THE EXTENT  PERMITTED  BY  APPLICABLE  LAW,  EACH  GUARANTOR  HEREBY
IRREVOCABLY  WAIVES  ALL  RIGHT OF TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR
COUNTERCLAIM  ARISING OUT OF OR IN CONNECTION  WITH THIS  GUARANTEE OR ANY OTHER
LOAN DOCUMENT OR ANY MATTER ARISING IN CONNECTION HEREUNDER OR THEREUNDER.

     18.  Upon  execution  and  delivery  by any  Subsidiary  of  Borrower of an
instrument in the form of Annex I, such  Subsidiary  of Borrower  shall become a
                          -------
Guarantor  hereunder  with the same  force and effect as if  originally  named a
Guarantor herein (each an "Additional Guarantor"). The execution and delivery of
any such  instrument  shall not require the consent of any Guarantor  hereunder.
The rights and  obligations  of each  Guarantor  hereunder  shall remain in full
force and effect  notwithstanding the addition of any Additional  Guarantor as a
party to this Guarantee.

     19. This Guarantee may be executed in any number of  counterparts,  each of
which when so executed  and  delivered  shall be an  original,  but all of which
shall constitute one and the same instrument.

                                      -9-
<PAGE>
                       [3-year Revolving Credit Agreement]

     IN WITNESS WHEREOF, each Guarantor has caused this Guarantee to be executed
by its duly authorized officer as of the date first above written.

                                            GUARANTORS:
                                            -----------

                                            DOLLAR GENERAL FINANCIAL, INC.
                                            (a Tennessee corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DADE LEASE MANAGEMENT, INC.
                                            (a Delaware corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLGENCORP, INC.
                                            (a Kentucky corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLGENCORP OF NEW YORK, INC.
                                            (a Kentucky corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLGENCORP OF TEXAS, INC.
                                            (a Kentucky corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                      -11-
<PAGE>

                                            DG LOGISTICS, LLC
                                            (a Tennessee limited liability
                                             company)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLLAR GENERAL STORES, LTD.
                                            (a Kentucky corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLLAR GENERAL PARTNERS
                                            (a Kentucky general partnership)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            THE GREATER CUMBERLAND INSURANCE
                                              COMPANY (a Vermont corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            NATIONS TITLE COMPANY, INC.
                                            (a Tennessee corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                      -12-
<PAGE>

                                            DOLLAR GENERAL INTELLECTUAL
                                            PROPERTY, L.P. (a Vermont limited
                                            partnership)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DOLLAR GENERAL INVESTMENTS, INC.
                                            (a Delaware corporation)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                      -13-
<PAGE>

                                            DGC PROPERTIES LLC
                                            (a Delaware limited liability
                                            company)

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                            DGC PROPERTIES OF KENTUCKY LLC
                                            (a Delaware limited liability
                                            company)

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

THE PROVISIONS OF SECTION 7 ABOVE HEREBY ACKNOWLEDGED AND AGREED TO:

                                            DOLLAR GENERAL CORPORATION

                                            By:
                                               ---------------------------------
                                                     Name:

                                                     Title:

                                      -14-
<PAGE>

                      [3-year Revolving Credit Agreement]

                                     ANNEX I

                        SUPPLEMENT TO GUARANTY AGREEMENT
                        --------------------------------

     THIS  SUPPLEMENT  TO  GUARANTY  AGREEMENT  (this   "Supplement")  made  and
delivered  as  of                                 , by                      ,  a
                 ---------------------------------     ---------------------
                            (the "Additional Guarantor") in favor of (i) each of
----------------------------
the Lenders from time to time parties to the Credit  Agreement  described  below
(each a "Lender" and collectively the "Lenders"), and (ii) SUNTRUST BANK, in its
capacities as Administrative Agent, Issuing Bank, and Collateral Agent under the
terms of the Credit  Agreement and the other Loan  Documents  referred to in the
Credit  Agreement (in such  capacities,  the  "Administrative  Agent",  "Issuing
Bank", and "Collateral  Agent"  respectively;  the Lenders,  the  Administrative
Agent, the Issuing Bank, and Collateral Agent collectively referred to herein as
the "Guaranteed Parties")

     A. Reference is made to the 3-Year  Revolving  Credit Agreement dated as of
June    ,  2002  (as the  same  may  have  been  or may  hereafter  be  amended,
    ---
supplemented,  and restated from time to time,  the "Credit  Agreement"),  among
Dollar General Corporation, a Tennessee corporation ("Borrower"), SunTrust Bank,
as  Administrative   Agent  and  Issuing  Bank,  each  other  bank  and  lending
institution from time to time that has become a Lender thereunder (collectively,
"Lenders"),  Credit Suisse First Boston, as Syndication  Agent, and Firstar Bank
and Key Bank National Association, as Co-Documentation Agents.

     B.  Capitalized  terms used herein and not otherwise  defined  herein shall
have the  meanings  assigned  to such  terms  in the  Credit  Agreement  and the
Guaranty Agreement (as defined in the Credit Agreement).

     C.  Certain  Subsidiaries  of  Borrower  have  entered  into  the  Guaranty
Agreement in order to induce the Lenders to make Loans and other  extensions  of
credit to Borrower under the Credit  Agreement.  Pursuant to Section 5.10 of the
Credit  Agreement,  certain  Subsidiaries of Borrower are required to enter into
the Guaranty Agreement and become a Guarantor  thereunder.  The undersigned (the
"Additional  Guarantor")  is executing  this  Supplement in accordance  with the
requirements  of the  Credit  Agreement  and  Guaranty  Agreement  to  become  a
Guarantor  under the  Guaranty  Agreement in order to induce the Lenders to make
Loans and other extensions of credit to Borrower and as consideration  for Loans
and other extensions of credit previously made.

     Accordingly, the Administrative Agent and the Additional Guarantor agree as
follows:

<PAGE>

         SECTION 1.

     (a) By its signature  below, the Additional  Guarantor  becomes a Guarantor
under the  Guaranty  Agreement  with the same force and effect as if  originally
named as a Guarantor therein,  and the Additional Guarantor hereby (a) agrees to
all the terms and  provisions  of the Guaranty  Agreement  applicable to it as a
Guarantor  thereunder,  and (b) represents and warrants that the representations
and  warranties  made with respect to each  Guarantor  thereunder  and under the
Credit Agreement are true and correct in respect of the Additional  Guarantor on
and as of the date  hereof.  Each  reference  to a  "Guarantor"  in the Guaranty
Agreement  shall be deemed to include the  Additional  Guarantor.  The  Guaranty
Agreement is hereby incorporated herein by reference.

     (b) Without limiting the foregoing, the Additional Guarantor hereby jointly
and  severally  (with respect to the  obligations  of the  Guarantors  under the
Guaranty  Agreement)  irrevocably  and  unconditionally  guarantees the punctual
payment when due, whether at stated maturity,  by acceleration or otherwise,  of
all  principal  of, and interest on, each Loan made to Borrower  pursuant to the
Credit  Agreement,  each obligation of Borrower to reimburse the Issuing Bank in
respect of all LC  Disbursements,  and the full and punctual payment when due of
all fees, expenses,  indemnity and reimbursement payments, and other Obligations
payable by  Borrower  under the Credit  Agreement  and the other Loan  Documents
(including,  without  limitation,  interest  accruing or that would have accrued
after the filing of a petition in  bankruptcy  or other  insolvency  proceeding,
whether  or not  any  claim  for  interest  is  allowed  or  allowable  in  such
proceeding),  and all obligations of Borrower  arising  pursuant to any interest
rate protection or swap agreements entered into with one or more of the Lenders.
Upon  failure  by  Borrower  to pay  punctually  when due any such  amount,  the
Additional Guarantor agrees that it shall forthwith on demand pay the amount not
so paid at the place and in the manner  specified in the Credit Agreement or the
relevant  Loan  Documents,   as  the  case  may  be.  The  Additional  Guarantor
acknowledges and agrees that this is a guarantee of payment when due, and not of
collection,  and that the obligations of the Additional  Guarantor hereunder may
be enforced up to the full amount hereof without  proceeding  against  Borrower,
any security held by or on behalf of the Lenders, or against any other Guarantor
or any  other  party  that  may  have  liability  on all or any  portion  of the
Guaranteed Obligations.

     SECTION  2.  The  Additional  Guarantor  represents  and  warrants  to  the
Administrative Agent, the Issuing Bank, and the Lenders that this Supplement has
been duly  authorized,  executed and delivered by it and  constitutes its legal,
valid and binding  obligation,  enforceable  against it in  accordance  with its
terms,  except as the  enforceability  thereof  may be  limited  by  bankruptcy,
insolvency,  reorganization, or moratorium or other similar laws relating to the
enforcement of creditors' rights generally and by general equitable principles.

     SECTION 3. This Supplement may be executed in  counterparts,  each of which
shall  constitute  an  original,  but all of which  when  taken  together  shall
constitute a single  agreement.  This Supplement shall become effective when the
Administrative  Agent shall have received  counterparts of this Supplement that,
when taken  together,  bear the signatures of the  Additional  Guarantor and the
Administrative  Agent. Delivery of an executed signature page to this

                                      -2-
<PAGE>

Supplement  by  facsimile  transmission  shall be  effective  as  delivery  of a
manually signed counterpart of this Supplement.

     SECTION 4. Except as expressly  supplemented hereby, the Guaranty Agreement
shall remain in full force and effect.

     SECTION  5.  This  Supplement  shall  be  governed  by,  and  construed  in
accordance with, the laws of the State of Georgia,  without giving effect to the
principles of conflict of laws thereof.

     SECTION  6. In case  any one or more of the  provisions  contained  in this
Supplement should be held invalid,  illegal or unenforceable in any respect, the
validity,  legality and  enforceability  of the remaining  provisions  contained
herein  and in the  Guaranty  Agreement  shall  not in any  way be  affected  or
impaired  thereby  (it being  understood  that the  invalidity  of a  particular
provision hereof in a particular  jurisdiction shall not in and of itself affect
the validity of such  provision in any other  jurisdiction.)  The parties hereto
shall  endeavor in good faith  negotiations  to replace the invalid,  illegal or
unenforceable  provisions  with valid  provisions  the economic  effect of which
comes as close as  possible  to that of the  invalid,  illegal or  unenforceable
provisions.

     SECTION 7. All communications and notices hereunder shall be in writing and
given as provided in the  Guaranty  Agreement.  All  communications  and notices
hereunder  to the  Additional  Guarantor  shall be given to it at the address of
Borrower as set forth in the Credit Agreement.

     IN WITNESS WHEREOF,  the Additional  Guarantor and the Administrative Agent
have duly executed this  Supplement to the Guaranty  Agreement as of the day and
year first above written.

                                                  [Name of Additional Guarantor]

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

SUNTRUST BANK,
    As Administrative Agent

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

                                      -3-
<PAGE>

                                    EXHIBIT D
                                    ---------

                         Form of Contribution Agreement
                         ------------------------------

     THIS CONTRIBUTION  AGREEMENT (this  "Agreement") is entered into as of June
21, 2002, by and among DOLLAR GENERAL CORPORATION,  a Tennessee corporation (the
"Principal"),  each of the Subsidiaries of Principal identified on the signature
pages of this Agreement (each a "Guarantor" and collectively the  "Guarantors"),
and SUNTRUST BANK, a Georgia banking  corporation,  as Administrative  Agent for
the Lenders (as defined in the Credit Agreement referred to below).

                              W I T N E S S E T H:

     WHEREAS,  the Principal,  the Lenders,  the  Administrative  Agent,  Credit
Suisse First Boston,  as Syndication  Agent, and U.S. Bank National  Association
and KeyBank National Association,  as Co-Documentation  Agents, are parties to a
certain 3-Year Revolving Credit Agreement dated as of June 21, 2002 (as the same
may hereafter from time to time be amended,  modified, and restated, the "Credit
Agreement";  capitalized  terms used  herein  that are  defined  in such  Credit
Agreement are used herein with the respective  meanings  provided for such terms
in the Credit Agreement);

     WHEREAS,  pursuant  to  the  requirements  of  the  Credit  Agreement,  the
Guarantors have executed and delivered a Guaranty Agreement dated as of June 21,
2002, in favor of the  Administrative  Agent,  the Issuing Bank,  the Collateral
Agent,  and the Lenders (as the same may hereafter from time to time be amended,
modified, and restated, the "Guaranty Agreement");

     WHEREAS,  it is a further requirement and condition of the Credit Agreement
that the Guarantors execute and deliver an agreement in the form hereof;

     NOW,  THEREFORE,  in  consideration  of  the  premises  and  the  covenants
hereinafter  contained,  and to induce the Guarantors to enter into the Guaranty
Agreement, each Guarantor and the Administrative Agent agree as follows:

     SECTION 1. Indemnity and Subrogation. In addition to all such rights of
                -------------------------
indemnity and  subrogation as the Guarantors may have under  applicable law (but
subject to Section 3), the Principal agrees that in the event a payment shall be
made on behalf of the Principal by any Guarantor  under the Guaranty  Agreement,
the Principal shall indemnify such Guarantor for the full amount of such payment
and such Guarantor  shall be subrogated to the rights of the person to whom such
payment shall have been made to the extent of such payment.

<PAGE>

     SECTION 2. Contribution and Subrogation. Each Guarantor (a "Contributing
                ----------------------------
Guarantor")  agrees (subject to Section 3) that, in the event a payment shall be
made by any  other  Guarantor  under  the  Guaranty  Agreement  and  such  other
Guarantor (the "Claiming  Guarantor")  shall not have been fully  indemnified by
the  Principal  as  provided  in Section 1, each  Contributing  Guarantor  shall
indemnify  each  Claiming  Guarantor  in an amount  equal to the  amount of such
payment,  in each case  multiplied by a fraction of which the numerator shall be
the  net  worth  of such  Contributing  Guarantor  on the  date  hereof  and the
denominator  shall be the  aggregate  net  worth of all  Guarantors  on the date
hereof (or, in the case of any  Guarantor  becoming a party  hereto  pursuant to
Section 12, the date of the  Supplement  hereto  executed and  delivered by such
Guarantor).  Any  Contributing  Guarantor  making  any  payment  to  a  Claiming
Guarantor  pursuant to this Section 2 shall be  subrogated to the rights of such
Claiming  Guarantor  under  Section  1 to the  extent of such  payment.  As used
herein,  the term "net worth" shall mean, as at any date of  determination,  the
consolidated  members' capital,  partners' capital,  or stockholders'  equity of
each  Guarantor,  as the case may be, as determined on a  consolidated  basis in
accordance with GAAP.

     SECTION 3. Subordination. Notwithstanding any provision of this Agreement
                -------------
to the contrary, all rights of the Principal and the Guarantors under Sections 1
and  2  and  all  other  rights  of  indemnity,  contribution,   subrogation  or
reimbursement  under applicable law or otherwise shall be fully  subordinated to
the  indefeasible  payment  in  full in cash  of the  Obligations  owing  by the
Principal.  No failure on the part of the Principal or any Guarantor to make the
payments  required by  Sections 1 and 2 (or any other  payments  required  under
applicable  law or  otherwise)  shall in any respect limit the  obligations  and
liabilities  of the Principal or any Guarantor  with respect to its  obligations
hereunder, and the Principal and each Guarantor shall remain liable for the full
amount of the obligations of the Principal and such Guarantor hereunder.

     SECTION 4. Termination. This Agreement shall survive and be in full force
                -----------
and effect so long as any Obligation  owing by the Principal is outstanding  and
has not been  indefeasibly  paid in full in cash, and so long as the Commitments
in favor of the Principal under the Credit  Agreement have not been  terminated.
This Agreement shall continue to be effective or be reinstated,  as the case may
be, if at any time  payment,  or any part  thereof,  of any such  Obligation  is
rescinded or must  otherwise be restored by any Lender or any Guarantor upon the
bankruptcy or reorganization of the Principal or any Guarantor or otherwise.

     SECTION 5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
                -------------
CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE LAWS OF THE STATE OF GEORGIA.

     SECTION 6. No Waiver; Amendment. (a) No failure on the part of the
                --------------------
Administrative Agent, the Principal,  or any Guarantor to exercise, and no delay
in

                                       2
<PAGE>

exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy by the Administrative Agent, the Principal or any Guarantor preclude any
other or further exercise thereof or the exercise of any other right power or
remedy. All remedies hereunder are cumulative and are not exclusive of any other
remedies provided by law. None of the Administrative Agent, the Principal or the
Guarantors shall be deemed to have waived any rights hereunder unless such
waiver shall be in writing and signed by such parties.

(b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into among the
Principal, the Guarantors and the Administrative Agent.

     SECTION 7. Notices.  All  communications  and notices hereunder shall be in
                -------
writing  and given as  provided  in the  Guaranty  Agreement  and  addressed  as
specified therein.

     SECTION 8. Binding Agreement;  Assignments.  Whenever in this Agreement any
                -------------------------------
of the parties hereto is referred to, such reference  shall be deemed to include
the  successors  and  assigns of such party;  and all  covenants,  promises  and
agreements by or on behalf of the parties that are  contained in this  Agreement
shall bind and inure to the benefit of their respective  successors and assigns.
Neither the Principal nor any Guarantor may assign or transfer any of its rights
or obligations hereunder (and any such attempted assignment or transfer shall be
void) without the prior written consent of the Administrative Agent.

     SECTION 9.  Survival of  Agreement;  Severability.  (a) All  covenants  and
                 -------------------------------------
agreements  made  by  the  Principal  and  each  Guarantor  herein  and  in  the
certificates or other instruments  prepared or delivered in connection with this
Agreement or the other Credit  Documents shall be considered to have been relied
upon  by  the  Administrative  Agent,  the  Lenders,  the  Principal,  and  each
Guarantor,  and all covenants and agreement made herein shall survive the making
of the Loans and the  issuance of the Letters of Credit,  and shall  continue in
full force and effect as long as the principal of or any accrued interest on any
Loans,  or any  Letter of  Credit,  or any other  fee or amount  payable  by the
Principal under the Credit Agreement or this Agreement or under any of the other
Loan  Documents,  is outstanding  and unpaid,  or as long as any  Commitments in
favor of the Principal under the Credit Agreement have not been terminated.

     (b) In case any one or more of the  provisions  contained in this Agreement
should be held invalid, illegal or unenforceable in any respect, no party hereto
shall be required to comply with such provision for so long as such provision is
held to be invalid,  illegal or  unenforceable,  but the validity,  legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or  impaired

                                       3
<PAGE>

thereby.  The parties shall endeavor in good-faith  negotiations  to replace the
invalid,  illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible  to that of the  invalid,  illegal or
unenforceable provisions.

     SECTION 10.  Counterparts.  This Agreement may be executed in  counterparts
                  ------------
(and by different parties hereto on different counterparts), each of which shall
constitute an original,  but all of which when taken together shall constitute a
single contract. This Agreement shall be effective with respect to the Principal
or Guarantor  when a counterpart  bearing the signature of the Principal or such
Guarantor shall have been delivered to the Administrative  Agent. Delivery of an
executed signature page to this Agreement by facsimile  transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.

     SECTION 11. Effect of  Contribution  Agreement.  This Agreement is intended
                 ----------------------------------
only to define the relative  rights of the  Principal  and the  Guarantors,  and
nothing  set  forth  in this  Agreement  is  intended  to or  shall  impair  the
obligations of the Guarantors,  jointly and severally, to pay any amounts as and
when the same shall become due and payable in  accordance  with the terms of the
Guaranty   Agreement.   The  parties  hereto  acknowledge  that  the  rights  of
indemnification, subrogation, and contribution hereunder shall constitute assets
in favor of each Guarantor to which such right of indemnification,  subrogation,
or indemnification is owing.

     SECTION 12. Additional  Guarantors.  Pursuant to Section 5.10 of the Credit
                 ----------------------
Agreement,  certain Subsidiaries of the Principal are required to enter into the
Guaranty Agreement as a Guarantor.  Upon execution and delivery,  after the date
hereof,  by the  Administrative  Agent and such a Subsidiary of an instrument in
the form of Annex I hereto,  such Subsidiary shall become a Guarantor  hereunder
            ----- -
with the same force and effect as if originally named as a Guarantor  hereunder.
The execution and delivery of any instrument adding an additional Guarantor as a
party  to  this  Agreement  shall  not  require  the  consent  of any  Guarantor
hereunder.  The rights and obligations of each Guarantor  hereunder shall remain
in full force and effect  notwithstanding the addition of any new Guarantor as a
party to this Agreement.

                                       4

<PAGE>

                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by their duly authorized offices as of the date first appearing
above.

                                        PRINCIPAL:
                                        ----------

                                        DOLLAR GENERAL CORPORATION
                                        (a Tennessee corporation)

                                        By:
                                             -----------------------------------
                                        Name: Wade Smith
                                        Title: Treasurer

<PAGE>

                                        GUARANTORS:
                                        -----------

                                        DOLLAR GENERAL FINANCIAL, INC.
                                        (a Tennessee corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DADE LEASE MANAGEMENT, INC.
                                        (a Delaware corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DOLGENCORP, INC.
                                        (a Kentucky corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DOLGENCORP OF NEW YORK, INC.
                                        (a Kentucky corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                        DOLGENCORP OF TEXAS, INC.
                                        (a Kentucky corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DG LOGISTICS, LLC
                                        (a Tennessee limited liability company)

                                        By:  Dolgencorp., Inc., Sole Member

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DOLLAR GENERAL STORES, LTD.
                                        (a Kentucky general partnership)

                                        By:  Dolgencorp., Inc., General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        DOLLAR GENERAL INVESTMENT, INC.
                                        (a Delaware corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                        DGC PROPERTIES LLC
                                        (a Delaware limited liability company)

                                        By:  Dolgencorp., Inc., Sole Member

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                         DOLLAR GENERAL PARTNERS
                                        (a Kentucky general partnership)

                                        By:   Dolgencorp., Inc., General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        By:   Dade Lease Management, Inc.,
                                              General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        By:   Dollar General Financial, Inc.,
                                              General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        NATIONS TITLE COMPANY, INC.
                                        (a Tennessee corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                        DOLLAR GENERAL INTELLECTUAL
                                        PROPERTY, L.P.
                                        (a Vermont limited partnership)

                                        By:   Dade Lease Management, Inc.,
                                        General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        THE GREATER CUMBERLAND INSURANCE
                                        COMPANY (a Vermont corporation)

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                        DGC PROPERTIES OF KENTUCKY LLC
                                        (a Delaware limited liability company)

                                        By:   Dollar General Partners, a
                                              Kentucky partnership, Sole Member

                                        By:  Dolgencorp., Inc., General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        By:  Dolgencorp., Inc., General Partner

                                         By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

                                        By:  Dollar General Financial, Inc.,
                                             General Partner

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                        SUNTRUST BANK,
                                        as Administrative Agent

                                        By:
                                             -----------------------------------
                                        Name:    Wade Smith
                                        Title:   Treasurer

<PAGE>

                                     ANNEX I

                                  SUPPLEMENT TO
                             CONTRIBUTION AGREEMENT
                             ----------------------

     THIS SUPPLEMENT TO CONTRIBUTION  AGREEMENT (this  "Supplement") dated as of
________________________,  made by and between  __________________,  a _________
(the "New  Guarantor"),  and the  Administrative  Agent  described in the Credit
Agreement referred to below.

     A. Reference is made to (a) the 3-Year  Revolving Credit Agreement dated as
of June 21, 2002 (as amended,  supplemented  and restated from time to time, the
"Credit  Agreement"),   among  Dollar  General  Corporation  (the  "Principal"),
SunTrust Bank, as Administrative Agent, the banks and other lending institutions
from time to time that are parties thereto (the "Lenders"),  Credit Suisse First
Boston,  as Syndication  Agent,  and U.S. Bank National  Association and KeyBank
National  Association,  as  Co-Documentation  Agents, (b) the Guaranty Agreement
dated as of June 21,  2002,  among the  Guarantors  that are parties  thereto in
favor of the  Administrative  Agent, the Issuing Bank, the Collateral Agent, and
the  Lenders (as  amended,  supplemented  and  restated  from time to time,  the
"Guaranty  Agreement"),  and (c) the Contribution Agreement dated as of June 21,
2002,  among the Principal,  the Guarantors,  and the  Administrative  Agent (as
amended,  supplemented  and  restated  from  time  to  time,  the  "Contribution
Agreement").

     B.  Capitalized  terms used herein and not otherwise  defined  herein shall
have the meaning  assigned to such terms in the  Contribution  Agreement  or the
Credit Agreement, as the case may be.

     C. The  Principal  and the  Guarantors  have entered into the  Contribution
Agreement in order to induce the Lenders to make Loans, issue Letters of Credit,
and make other  extensions of credit to the Principal.  Pursuant to Section 5.10
of the Credit Agreement,  certain  Subsidiaries of the Principal are required to
enter into the Guaranty Agreement as a Guarantor. Section 12 of the Contribution
Agreement  provides  that  additional  Subsidiaries  of the Principal may become
Guarantors  under the  Contribution  Agreement by  execution  and delivery of an
instrument in the form of this  Supplement.  The  undersigned  Subsidiary of the
Principal (the "New  Guarantor") is executing this Supplement in accordance with
the  requirements  of the  Credit  Agreement  to  become a  Guarantor  under the
Contribution  Agreement in order to induce the Lenders to make additional Loans,
issue  additional  Letters of Credit,  and make other  additional  extensions of
credit to the Principal and as consideration for Loans,  Letters of Credit,  and
other extensions of credit previously made and issued.

     Accordingly,  the  Administrative  Agent  and the New  Guarantor  agree  as
follows:

     SECTION 1. In accordance with Section 12 of the Contribution Agreement, the
New Guarantor by its signature below becomes a Guarantor under the  Contribution
Agreement  with the same force and effect as if  originally  named  therein as a
Guarantor,  and the New Guarantor  hereby agrees to all the terms and provisions
of the Contribution  Agreement

<PAGE>

applicable to it as a Guarantor  thereunder.  Each reference to a "Guarantor" in
the  Contribution  Agreement  shall be deemed to include the New Guarantor.  The
Contribution Agreement is hereby incorporated herein by reference.

     SECTION 2. The New Guarantor  represents and warrants to the Administrative
Agent and the Lenders that this  Supplement has been duly  authorized,  executed
and delivered by it and  constitutes  its legal,  valid and binding  obligation,
enforceable against it in accordance with its terms.

     SECTION  3.  This  Supplement  may be  executed  in  counterparts  (and  by
different  parties  hereto  on  different  counterparts),  each of  which  shall
constitute an original,  but all of which when taken together shall constitute a
single contract.  This Supplement shall become effective when the Administrative
Agent shall have  received  counterparts  of this  Supplement  that,  when taken
together, bear the signatures of the New Guarantor and the Administrative Agent.
Delivery  of  an  executed  signature  page  to  this  Supplement  by  facsimile
transmission  shall be as effective as delivery of a manually signed counterpart
of this Supplement.

     SECTION  4.  Except as  expressly  supplemented  hereby,  the  Contribution
Agreement shall remain in full force and effect.

     SECTION  5.  THIS  SUPPLEMENT  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA.

     SECTION  6. In case  any one or more of the  provisions  contained  in this
Supplement  should be held  invalid,  illegal or  unenforceable  in any respect,
neither party hereto shall be required to comply with such provision for so long
as such  provision  is held to be  invalid,  illegal or  unenforceable,  but the
validity,  legality and  enforceability  of the remaining  provisions  contained
herein and in the  Contribution  Agreement  shall not in any way be  affected or
impaired.  The parties  hereto  shall  endeavor in  good-faith  negotiations  to
replace the invalid,  illegal or unenforceable  provisions with valid provisions
the economic  effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

     SECTION 7. All communications and notices hereunder shall be in writing and
given as provided in Section 7 of the Contribution Agreement. All communications
and notices  hereunder to the New Guarantor  shall be given to it at the address
of the Principal as provided in the Credit Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the New Guarantor and the Administrative
Agent have duly executed this Supplement to Contribution Agreement as of the day
and year first above written.

                                        [Name of New Guarantor]

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

                                        SUNTRUST BANK,
                                        as Administrative Agent

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

<PAGE>

                                   EXHIBIT 2.3

                      FORM OF NOTICE OF REVOLVING BORROWING

                                     [Date]

SunTrust Bank,
   as Administrative Agent
   for the Lenders referred to below
303 Peachtree Street, N.E.
Atlanta, GA  30308

Attention:

     Reference is made to the 3-Year Revolving Credit Agreement dated as of June
__, 2002 (as amended and in effect on the date hereof, the "Credit  Agreement"),
among the undersigned, as Borrower, the Lenders named therein, SunTrust Bank, as
Administrative  Agent,  Credit Suisse First Boston,  as Syndication  Agent,  and
Firstar Bank and Key Bank National Association, as Co-Documentation Agents Terms
defined in the Credit  Agreement  are used herein with the same  meanings.  This
notice  constitutes  a Notice of Revolving  Borrowing,  and the Borrower  hereby
requests  a  Revolving  Borrowing  under  the  Credit  Agreement,  and  in  that
connection the Borrower specifies the following  information with respect to the
Revolving Borrowing requested hereby:

   (A)    Aggregate principal amount of Revolving Borrowing 1/:
                                                               -----------------
   (B)    Date of Revolving Borrowing  (which is a Business Day):
                                                                 ---------------
   (C)    Interest Rate basis 2/:
                                 ----------------------
   (D)    Interest Period 3/:
                             --------------------------

   (E)  Location  and  number  of  Borrower's  account  to which  proceeds  of
        Revolving Borrowing are to be disbursed:

-----------------------------
1    Not less than  $10,000,000 or a larger multiple of $500,000 if a Eurodollar
     Borrowing, and not be less than $1,000,000 or a larger multiple of $100,000
     if a Base Rate Borrowing.
2    Eurodollar Borrowing or Base Rate Borrowing.
3    Which must  comply with the  definition  of  "Interest  Period" and end not
     later than the Revolving Commitment Termination Date.

<PAGE>

     The Borrower hereby  represents and warrants that the conditions  specified
in  paragraphs  (a),  (b) and (c) of  Section  3.2 of the Credit  Agreement  are
satisfied as of the date hereof.

                                                    Very truly yours,

                                                    DOLLAR GENERAL CORPORATION

                                                    ---------------------------
                                                    Name:
                                                    Title:

<PAGE>

                                  EXHIBIT 2.5

                      FORM OF NOTICE OF SWINGLINE BORROWING

                                     [Date]

SunTrust Bank,
   as Administrative Agent
   for the Lenders referred to below
303 Peachtree Street, N.E.
Atlanta, GA  30308

Attention:

     Reference is made to the 3-Year Revolving Credit Agreement dated as of June
__, 2002 (as amended and in effect on the date hereof, the "Credit  Agreement"),
among the undersigned, as Borrower, the Lenders named therein, SunTrust Bank, as
Administrative  Agent,  Credit Suisse First Boston,  as Syndication  Agent,  and
Firstar Bank and Key Bank  National  Association,  as  Co-Documentation  Agents.
Terms defined in the Credit  Agreement  are used herein with the same  meanings.
This notice constitutes a Notice of Swingline Borrowing, and the Borrower hereby
requests  a  Swingline  Borrowing  under  the  Credit  Agreement,  and  in  that
connection the Borrower specifies the following  information with respect to the
Swingline Borrowing requested hereby:

   (A)      Aggregate principal amount of Swingline Borrowing 1/:
                                                                 ---------------

   (B)      Date of Swingline Borrowing  (which is a Business Day):
                                                                   -------------
   (C)      Interest Rate basis 2/:
                                   ---------------------

   (D)      Location and number of Borrower's account to which proceeds of
            Swingline Borrowing are to be disbursed:

-------------------------------
1/ Not less than $100,000 or a larger multiple of $50,000.
2/ Base Rate Borrowing or other agreed upon interest rate.

<PAGE>

     The Borrower hereby  represents and warrants that the conditions  specified
in  paragraphs  (a),  (b) and (c) of  Section  3.2 of the Credit  Agreement  are
satisfied as of the date hereof.

                                                    Very truly yours,

                                                    DOLLAR GENERAL CORPORATION

                                                    --------------------------
                                                    Name:
                                                    Title:

<PAGE>

                                   EXHIBIT 2.7

                    FORM OF NOTICE OF CONTINUATION/CONVERSION

                                     [Date]

SunTrust Bank,
   as Administrative Agent
   for the Lenders referred to below
303 Peachtree Street, N.E.
Atlanta, GA  30308

Attention:

     Reference is made to the 3-Year Revolving Credit Agreement dated as of June
__, 2002 (as amended and in effect on the date hereof, the "Credit  Agreement"),
among the undersigned, as Borrower, the Lenders named therein, SunTrust Bank, as
Administrative  Agent,  Credit Suisse First Boston,  as Syndication  Agent,  and
Firstar Bank and Key Bank  National  Association,  as  Co-Documentation  Agents.
Terms defined in the Credit  Agreement  are used herein with the same  meanings.
This notice  constitutes  a Notice of  Continuation/Conversion  and the Borrower
hereby  requests the conversion or  continuation of a Borrowing under the Credit
Agreement,   and  in  that  connection  the  Borrower  specifies  the  following
information  with  respect to the  Borrowing  to be  converted  or  continued as
requested hereby:

         (A)      Borrowing to which this request
                  applies:                        (amount)
                          ------------------------
                                              , 200  (Interest Period End Date)
                          --------------------     --

         (B)      Principal amount(s) of Borrowing to
                  be converted/continued1:

                  (1)      $
                           --------------------------
                  (2)      $
                           --------------------------
                  (3)      $
                           --------------------------

         (C)      Effective date of election (must be a Business Day):

                          -------------------------

-----------------------------

1Not less than  $10,000,000  or a larger  multiple of  $500,000 if a  Eurodollar
Borrowing, and not be less than $1,000,000 or a larger multiple of $100,000 if a
Base Rate Borrowing.

<PAGE>

         (D)      Interest rates basis for each resulting Borrowing2:

                  (1)
                     -----------------------------------
                  (2)
                     -----------------------------------
                  (3)
                     -----------------------------------

         (E)      Interest period for each resulting Borrowing3:

                  (1)
                     -----------------------------------
                  (2)
                     -----------------------------------
                  (3)
                     -----------------------------------

                                                    Very truly yours,

                                                    DOLLAR GENERAL CORPORATION

                                                    ---------------------------
                                                    Name:
                                                    Title:

-------------------------------
2Eurodollar  Borrowing  or Base Rate  Borrowing.
3Which must comply with the  definition  of "Interest  Period" and end not later
than the Revolving Commitment Termination Date.

<PAGE>

                                  EXHIBIT 2.23

              FORM OF NOTICE OF REQUESTED LETTER OF CREDIT ISSUANCE

                                     [Date]

SunTrust Bank, as
  Administrative Agent
  for the Lenders referred to below
303 Peachtree Street, N.E.
Atlanta, GA  30308

Attention:

     Reference is made to the 3-Year Revolving Credit Agreement dated as of June
__, 2002 (as amended and in effect on the date hereof, the "Credit  Agreement"),
among the undersigned, as Borrower, the Lenders named therein, SunTrust Bank, as
Administrative   Agent  and  Issuing  Bank,   Credit  Suisse  First  Boston,  as
Syndication  Agent,  and  Firstar  Bank and Key Bank  National  Association,  as
Co-Documentation  Agents.  Terms defined in the Credit Agreement are used herein
with the same meanings.  This notice  constitutes an LC Notice, and the Borrower
hereby  requests  issuance  of a Letter  of  Credit as  provided  in the  Credit
Agreement,   and  in  that  connection  the  Borrower  specifies  the  following
information with respect to the Letter of Credit requested hereby:

         (A)      Requested date of issuance:                            , 200
                                             ----------------------------
         (B)      Expiration date of Letter of Credit1:                  , 200
                                                       ------------------
         (C)      Amount of Letter of Credit2: $
                                               ---------------------------------
         (D)      Name and address of beneficiary:
                                                  ------------------------------
                                                  ------------------------------
                                                  ------------------------------
                                                  ------------------------------

--------------------
1Not later than the  earlier of (x) one year from date of issuance or renewal or
extension,  as the case may be,  and (y) five  (5)  Business  Days  prior to the
Revolving Commitment Termination Date.
2Not less than $1,000,000

<PAGE>

         (E)      Requested form of Letter of Credit is attached to this
                  Notice.

The Borrower  hereby  represents and warrants that the  conditions  specified in
paragraphs  (a),  (b),  and  (c) of  Section  3.2 of the  Credit  Agreement  are
satisfied as of the date hereof.

                                                     Very truly yours,

                                                     DOLLAR GENERAL CORPORATION

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

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