Document:

ex41.htm

                                                                         EXHIBIT
4.1

    

    RAJ
VENTURES, INC.

    

    A FLORIDA
CORPORATION

    

    100,000,000
SHARES COMMON STOCK, NO PAR VALUE

    

    

    This
certifies that _________________________________________________ is hereby
issued ____________________________________________________ fully paid and
non-assessable Shares of Common Stock of Raj Ventures, Inc., transferable on the
books of the Corporation by the holder hereof, in person or by duly authorized
Attorney upon surrender of this Certificate properly endorsed.

    

    In
Witness Whereof, Raj Ventures, Inc. has caused this Certificate to be signed by
its duly authorized officers and its Corporate Seal to be hereunto affixed as of
this ___ day of_______________________ 20____.

    

    

    ________________________________                                                               ________________________________

    President                                                            
                                                               Secretaryex10_1.htm

    
      
        

      
Exhibit 10.1

    

    RENEWAL
PROMISSORY NOTE

    

    

    
      	$562,500.00	
              Executed
      at Broward County, Florida

            

    

    January 15,
2010

    

    FOR VALUE
RECEIVED, Parkson Property, LLC, a wholly owned subsidiary of Le@P Technology,
Inc., with a principal place of business at 5601 N. Dixie Highway, Suite 411,
Fort Lauderdale, Florida  33334 ("Maker"), promises to pay to the
order of Bay Colony Associates, Ltd. (the "Payee"), the principal sum of FIVE
HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($562,500.00),
together with interest at the rate of seven percent (7%) per annum due and
payable in one lump sum of principal and interest on January 8,
2011.  Payment of principal and accrued interest shall be paid to the
Payee at 5601 N. Dixie Highway, Suite 411, Ft. Lauderdale, FL 33334, or such
other place as the Payee may designate.

    

    This
Renewal Promissory Note (this "Note") is issued subject to the following
additional terms and conditions:

    

    1.      
      Renewal of Original Note
dated March 17, 2006 and Renewal Note dated October 24,
2007.  This Note is a renewal promissory note, and renews,
amends and restates the terms and obligations under that certain promissory note
made by the Maker to the Payee dated March 17, 2006 and the renewal note dated
October 24, 2007 both in the original principal amount of $562,500 (the “Prior
Notes”).  Pursuant to this Note, the maturity date for the payment of
principal and accrued interest under the Prior Notes has been extended from
January 8, 2010 to January 8, 2011. It is the intention of the Maker and the
Payee that this Note, given in replacement of the Prior Notes, shall amend,
restate and renew the Prior Note without constituting a novation, satisfaction,
cancellation or extinguishment of the Prior Note, but that henceforth the
indebtedness represented thereby and the obligations thereunder shall be paid in
accordance with the terms and conditions of this Note, and not in accordance
with the terms and conditions of the Prior Notes.

    

    2.     
       Type of
Payment.  Payment of both principal and interest shall be made
in currency of the United States of America which at the time of payment shall
be legal tender for the payment of public and private debts.

    

    3.    
        Manner of
Payment.  Payment shall be made to Payee at the Payee's address
set forth above or such other place as Payee may designate in
writing.

     

    4.            
Interest on Overdue
Payments.  From and after the date which is fifteen (15) days
after the date upon which any payment of principal hereunder becomes due and
payable, if the same is not timely paid, interest shall be payable on all sums
outstanding hereunder at the rate of fifteen percent (15%) per
annum.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.

            	
              Miscellaneous.

            

    

    

    (A)          This
Note shall be binding upon the Maker and its successors and
assigns.

    

    (B)           If
any provision hereof shall be held invalid or unenforceable by any court of
competent jurisdiction or as a result of future legislative action, such holding
or action shall be strictly construed and shall not affect the validity or
effect of any other provision hereof.

    

    (C)           The
validity, interpretation and effect of this Note shall be exclusively governed
by, and construed in accordance with, the laws of the State of Florida,
excluding the "conflict of laws" rules thereof.

    

    (D)       
   This Note may not be amended or modified, nor shall any waiver
of any provision hereof be effective, except by an instrument in writing
executed by the Maker and Payee.

    

    (E)         
  In case suit shall be brought for the collection hereof, or if it is
necessary to place the same in the hands of an attorney for collection, the
Maker agrees to pay reasonable attorneys’ fees and costs for making such
collections.

    

    IN
WITNESS WHEREOF, the Maker has caused this Note to be executed as of the day and
year first above written.

     

       

    
      	 
      	
              Parkson
      Property, LLC

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
              By:

            	 
      	
                /s/Timothy Lincoln

            	 
      
	 
      	
              Name:

            	 
      	
                   
       Timothy Lincoln

            	 
      
	 	
              Acting
      Principal Executive Officer

            	 
      

    

     

     

    2ex10_1.htm

    

    Exhibit
10.1

    

    AMENDED
AND RESTATED CREDIT AGREEMENT

    

    dated as
of

    January
15, 2010

    

    BURLINGTON
COAT FACTORY WAREHOUSE CORPORATION

    

    The Lead
Borrower

    For

    THE
BORROWERS NAMED HEREIN

    

    THE
FACILITY GUARANTORS PARTY HERETO

    

    BANK OF
AMERICA, N.A.

    As
Administrative Agent and Collateral Agent

    

    WELLS
FARGO RETAIL FINANCE, LLC

    REGIONS
BANK

    as
Co-Syndication Agents

    

    J.P.
MORGAN SECURITIES INC.

    UBS
SECURITIES LLC

    as
Co-Documentation Agents

    

    GENERAL
ELECTRIC CAPITAL CORPORATION

    U.S.
BANK, NATIONAL ASSOCIATION

    SUNTRUST
BANK

    as Senior
Managing Agents

    

    THE
LENDERS

    NAMED
HEREIN

    

    BANC OF
AMERICA SECURITIES LLC

    WELLS
FARGO RETAIL FINANCE, LLC

    as Joint
Lead Arrangers

    

    BANC OF
AMERICA SECURITIES LLC

    WELLS
FARGO RETAIL FINANCE, LLC

    J.P.
MORGAN SECURITIES INC.

    REGIONS
BUSINESS CAPITAL CORPORATION

    UBS
SECURITIES LLC

    as Joint
Bookrunners

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      	
              ARTICLE
      I

            	
              2

            
	 
      	 
      	 
      
	
              SECTION
      1.01

            	
              Definitions.

            	
              2

            
	
              SECTION
      1.02

            	
              Terms
      Generally.

            	
              55

            
	
              SECTION
      1.03

            	
              Accounting
      Terms.

            	
              56

            
	
              SECTION
      1.04

            	
              Rounding.

            	
              57

            
	
              SECTION
      1.05

            	
              Times
      of Day.

            	
              57

            
	
              SECTION
      1.06

            	
              Letter
      of Credit Amounts.

            	
              57

            
	
              SECTION
      1.07

            	
              Certifications.

            	
              57

            
	 
      	 
      	 
      
	
              ARTICLE
      II Amount and Terms of
      Credit

            	
              57

            
	 
      	 
      	 
      
	
              SECTION
      2.01

            	
              Commitment
      of the Lenders.

            	
              57

            
	
              SECTION
      2.02

            	
              Increase
      in Total Commitments

            	
              58

            
	
              SECTION
      2.03

            	
              Reserves;
      Changes to Reserves.

            	
              61

            
	
              SECTION
      2.04

            	
              Making
      of Revolving Credit Loans.

            	
              62

            
	
              SECTION
      2.05

            	
              Overadvances.

            	
              63

            
	
              SECTION
      2.06

            	
              Swingline
      Loans

            	
              64

            
	
              SECTION
      2.07

            	
              Notes.

            	
              64

            
	
              SECTION
      2.08

            	
              Interest
      on Revolving Credit Loans.

            	
              65

            
	
              SECTION
      2.09

            	
              Conversion
      and Continuation of Revolving Credit Loans.

            	
              65

            
	
              SECTION
      2.10

            	
              Alternate
      Rate of Interest for Revolving Credit Loans.

            	
              67

            
	
              SECTION
      2.11

            	
              Change
      in Legality.

            	
              67

            
	
              SECTION
      2.12

            	
              Default
      Interest.

            	
              68

            
	
              SECTION
      2.13

            	
              Letters
      of Credit.

            	
              68

            
	
              SECTION
      2.14

            	
              Increased
      Costs.

            	
              73

            
	
              SECTION
      2.15

            	
              Termination
      or Reduction of Commitments.

            	
              74

            
	
              SECTION
      2.16

            	
              Optional
      Prepayment of Revolving Credit Loans; Reimbursement of
      Lenders.

            	
              75

            
	
              SECTION
      2.17

            	
              Mandatory
      Prepayment; Commitment Termination; Cash Collateral.

            	
              77

            
	
              SECTION
      2.18

            	
              Cash
      Management.

            	
              78

            
	
              SECTION
      2.19

            	
              Fees.

            	
              81

            
	
              SECTION
      2.20

            	
              Maintenance
      of Loan Account; Statements of Account.

            	
              83

            
	
              SECTION
      2.21

            	
              Payments;
      Sharing of Setoff.

            	
              83

            
	
              SECTION
      2.22

            	
              Settlement
      Amongst Lenders

            	
              84

            
	
              SECTION
      2.23

            	
              Taxes.

            	
              86

            
	
              SECTION
      2.24

            	
              Mitigation
      Obligations; Replacement of Lenders.

            	
              88

            
	
              SECTION
      2.25

            	
              Designation
      of Lead Borrower as Borrowers’ Agent.

            	
              89

            
	
              SECTION
      2.26

            	
              Security
      Interests in Collateral.

            	
              89

            
	
              SECTION
      2.27

            	
              Provisions
      Relating to Payments to Tranche A-1 Lenders and Non-Extending
      Lenders.

            	
              90

            
	 
      	 
      	 
      
	
              ARTICLE
      III Representations and
      Warranties

            	
              90

            
	 
      	 
      	 
      
	
              SECTION
      3.01

            	
              Organization;
      Powers.

            	
              90

            
	
              SECTION
      3.02

            	
              Authorization;
      Enforceability.

            	
              90

            
	
              SECTION
      3.03

            	
              Governmental
      and Other Approvals; No Conflicts.

            	
              91

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
      3.04

            	
              Financial
      Condition.

            	
              91

            
	
              SECTION
      3.05

            	
              Properties.

            	
              91

            
	
              SECTION
      3.06

            	
              Litigation
      and Environmental Matters.

            	
              92

            
	
              SECTION
      3.07

            	
              Compliance
      with Laws and Agreements.

            	
              93

            
	
              SECTION
      3.08

            	
              Investment
      Company Status.

            	
              93

            
	
              SECTION
      3.09

            	
              Taxes.

            	
              93

            
	
              SECTION
      3.10

            	
              ERISA.

            	
              93

            
	
              SECTION
      3.11

            	
              Disclosure.

            	
              94

            
	
              SECTION
      3.12

            	
              Subsidiaries.

            	
              94

            
	
              SECTION
      3.13

            	
              Insurance.

            	
              94

            
	
              SECTION
      3.14

            	
              Labor
      Matters.

            	
              95

            
	
              SECTION
      3.15

            	
              Security
      Documents.

            	
              95

            
	
              SECTION
      3.16

            	
              Federal
      Reserve Regulations.

            	
              96

            
	
              SECTION
      3.17

            	
              Solvency.

            	
              96

            
	 
      	 
      	 
      
	
              ARTICLE
      IV Conditions

            	
              96

            
	 
      	 
      	 
      
	
              SECTION
      4.01

            	
              Effective
      Date.

            	
              96

            
	
              SECTION
      4.02

            	
              Conditions
      Precedent to Each Revolving Credit Loan and Each Letter of
      Credit.

            	
              98

            
	 
      	 
      	 
      
	
              ARTICLE
      V Affirmative
      Covenants

            	
              99

            
	 
      	 
      	 
      
	
              SECTION
      5.01

            	
              Financial
      Statements and Other Information.

            	
              99

            
	
              SECTION
      5.02

            	
              Notices
      of Material Events.

            	
              102

            
	
              SECTION
      5.03

            	
              Information
      Regarding Collateral.

            	
              103

            
	
              SECTION
      5.04

            	
              Existence;
      Conduct of Business.

            	
              103

            
	
              SECTION
      5.05

            	
              Payment
      of Obligations.

            	
              103

            
	
              SECTION
      5.06

            	
              Maintenance
      of Properties.

            	
              104

            
	
              SECTION
      5.07

            	
              Insurance.

            	
              104

            
	
              SECTION
      5.08

            	
              Books
      and Records; Inspection and Audit Rights; Appraisals;
      Accountants.

            	
              105

            
	
              SECTION
      5.09

            	
              Physical
      Inventories.

            	
              107

            
	
              SECTION
      5.10

            	
              Compliance
      with Laws.

            	
              107

            
	
              SECTION
      5.11

            	
              Use
      of Proceeds and Letters of Credit.

            	
              107

            
	
              SECTION
      5.12

            	
              Additional
      Subsidiaries.

            	
              108

            
	
              SECTION
      5.13

            	
              Further
      Assurances.

            	
              108

            
	 
      	 
      	 
      
	
              ARTICLE
      VI Negative
      Covenants

            	
              108

            
	 
      	 
      	 
      
	
              SECTION
      6.01

            	
              Indebtedness
      and Other Obligations.

            	
              109

            
	
              SECTION
      6.02

            	
              Liens.

            	
              109

            
	
              SECTION
      6.03

            	
              Fundamental
      Changes

            	
              109

            
	
              SECTION
      6.04

            	
              Investments,
      Revolving Credit Loans, Advances, Guarantees and
    Acquisitions.

            	
              109

            
	
              SECTION
      6.05

            	
              Asset
      Sales.

            	
              109

            
	
              SECTION
      6.06

            	
              Restricted
      Payments; Certain Payments of Indebtedness.

            	
              110

            
	
              SECTION
      6.07

            	
              Transactions
      with Affiliates.

            	
              112

            
	
              SECTION
      6.08

            	
              Restrictive
      Agreements.

            	
              112

            
	
              SECTION
      6.09

            	
              Amendment
      of Material Documents.

            	
              113

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
      6.10

            	
              Availability.

            	
              113

            
	
              SECTION
      6.11

            	
              Fiscal
      Year.

            	
              114

            
	 
      	 
      	 
      
	
              ARTICLE
      VII Events of
      Default

            	
              114

            
	 
      	 
      	 
      
	
              SECTION
      7.01

            	
              Events
      of Default.

            	
              114

            
	
              SECTION
      7.02

            	
              Remedies
      on Default.

            	
              118

            
	
              SECTION
      7.03

            	
              Application
      of Proceeds.

            	
              118

            
	 
      	 
      	 
      
	
              ARTICLE
      VIII The
      Agents

            	
              119

            
	 
      	 
      	 
      
	
              SECTION
      8.01

            	
              Appointment
      and Administration by Administrative Agent.

            	
              119

            
	
              SECTION
      8.02

            	
              Appointment
      of Collateral Agent.

            	
              119

            
	
              SECTION
      8.03

            	
              Sharing
      of Excess Payments.

            	
              120

            
	
              SECTION
      8.04

            	
              Agreement
      of Applicable Lenders.

            	
              120

            
	
              SECTION
      8.05

            	
              Liability
      of Agents.

            	
              120

            
	
              SECTION
      8.06

            	
              Notice
      of Default.

            	
              121

            
	
              SECTION
      8.07

            	
              Credit
      Decisions.

            	
              122

            
	
              SECTION
      8.08

            	
              Reimbursement
      and Indemnification.

            	
              122

            
	
              SECTION
      8.09

            	
              Rights
      of Agents.

            	
              123

            
	
              SECTION
      8.10

            	
              Notice
      of Transfer.

            	
              123

            
	
              SECTION
      8.11

            	
              Successor
      Agents.

            	
              123

            
	
              SECTION
      8.12

            	
              Relation
      Among the Lenders.

            	
              124

            
	
              SECTION
      8.13

            	
              Reports
      and Financial Statements.

            	
              124

            
	
              SECTION
      8.14

            	
              Agency
      for Perfection.

            	
              125

            
	
              SECTION
      8.15

            	
              Delinquent
      Lender.

            	
              125

            
	
              SECTION
      8.16

            	
              Collateral
      Matters.

            	
              126

            
	
              SECTION
      8.17

            	
              Co-Syndication
      Agents, Co-Documentation Agents, Senior Managing Agents and
      Arrangers.

            	
              127

            
	 
      	 
      	 
      
	
              ARTICLE
      IX Miscellaneous

            	
              127

            
	 
      	 
      	 
      
	
              SECTION
      9.01

            	
              Notices.

            	
              127

            
	
              SECTION
      9.02

            	
              Waivers;
      Amendments.

            	
              128

            
	
              SECTION
      9.03

            	
              Expenses;
      Indemnity; Damage Waiver.

            	
              130

            
	
              SECTION
      9.04

            	
              Successors
      and Assigns.

            	
              132

            
	
              SECTION
      9.05

            	
              Survival.

            	
              135

            
	
              SECTION
      9.06

            	
              Counterparts;
      Integration; Effectiveness.

            	
              135

            
	
              SECTION
      9.07

            	
              Severability.

            	
              135

            
	
              SECTION
      9.08

            	
              Right
      of Setoff.

            	
              136

            
	
              SECTION
      9.09

            	
              Governing
      Law; Jurisdiction; Consent to Service of Process.

            	
              136

            
	
              SECTION
      9.10

            	
              WAIVER
      OF JURY TRIAL.

            	
              137

            
	
              SECTION
      9.11

            	
              Press
      Releases and Related Matters.

            	
              137

            
	
              SECTION
      9.12

            	
              Headings.

            	
              137

            
	
              SECTION
      9.13

            	
              Interest
      Rate Limitation.

            	
              137

            
	
              SECTION
      9.14

            	
              Additional
      Waivers.

            	
              138

            
	
              SECTION
      9.15

            	
              Confidentiality.

            	
              140

            
	
              SECTION
      9.16

            	
              No
      Advisory or Fiduciary Responsibility.

            	
              141

            
	
              SECTION
      9.17

            	
              Patriot
      Act.

            	
              142

            
	
              SECTION
      9.18

            	
              Foreign
      Asset Control Regulations.

            	
              142

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
      9.19

            	
              Intercreditor
      Agreement.

            	
              143

            
	
              SECTION
      9.20

            	
              Florida
      Tax Provisions.

            	
              143

            
	
              SECTION
      9.21

            	
              Existing
      Credit Agreement Amended and Restated.

            	
              143

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBITS

    

    
      	
              Exhibit
      A:

            	
              Form
      of Assignment and Acceptance

            

    

    
      	
              Exhibit
      B:

            	
              Form
      of Customs Broker Agreement

            

    

    
      	
              Exhibit
      C:

            	
              Notice
      of Borrowing

            

    

    
      	
              Exhibit
      D:

            	
              Form
      of Revolving Credit Note

            

    

    
      	
              Exhibit
      E:

            	
              Form
      of Swingline Note

            

    

    
      	
              Exhibit
      F:

            	
              Form
      of Joinder

            

    

    
      	
              Exhibit
      G:

            	
              Form
      of Credit Card Notification

            

    

    
      	
              Exhibit
      H:

            	
              Form
      of Compliance Certificate

            

    

    
      	
              Exhibit
      I:

            	
              Form
      of Borrowing Base Certificate

            

    

    
      	
              Exhibit
      J:

            	
              Closing
      Agenda

            

    

    
      	
              Exhibit
      K:

            	
              Intercreditor
      Agreement

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULES

    

    
      	
              Schedule
      1.1(a):

            	
              Lenders
      and Commitments

            

    

    
      	
              Schedule
      1.1(b):

            	
              Business
      Segments

            

    

    
      	
              Schedule
      2.18(b):

            	
              Credit
      Card Arrangements

            

    

    
      	
              Schedule
      2.18(c):

            	
              Blocked
      Accounts

            

    

    
      	
              Schedule
      3.01:

            	
              Organization
      Information

            

    

    
      	
              Schedule
      3.05(a):

            	
              Title
      Exceptions

            

    

    
      	
              Schedule
      3.05(b):

            	
              Intellectual
      Property

            

    

    
      	
              Schedule
      3.05(c)(i):

            	
              Owned
      Real Estate

            

    

    
      	Schedule 3.05(c)(ii):	
              Leased
      Real Estate

            

    

    
      	Schedule 3.06(a):	
              Disclosed
      Matters

            

    

    
      	
              Schedule
      3.06(b):

            	
              Environmental
      Matters

            

    

    
      	
              Schedule
      3.06(c):

            	
              Superfund
      Sites

            

    

    
      	Schedule 3.06(d):	
              Real
      Estate Liens

            

    

    
      	
              Schedule
      3.10:

            	
              ERISA
      Matters

            

    

    
      	
              Schedule
      3.12:

            	
              Subsidiaries;
      Joint Ventures

            

    

    
      	
              Schedule
      3.13:

            	
              Insurance

            

    

    
      	
              Schedule
      3.14:

            	
              Collective
      Bargaining Agreements

            

    

    
      	
              Schedule
      4.01(b):

            	
              Local
      Counsel Opinions

            

    

    
      	
              Schedule
      5.01(i):

            	
              Reporting
      Requirements

            

    

    
      	
              Schedule
      6.01:

            	
              Existing
      Indebtedness

            

    

    
      	
              Schedule
      6.02:

            	
              Existing
      Encumbrances

            

    

    
      	
              Schedule
      6.04:

            	
              Existing
      Investments

            

    

    
      	
              Schedule
      6.05:

            	
              Asset
      Sales

            

    

    
      	Schedule 6.07:	
              Affiliate
      Transactions

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    AMENDED AND RESTATED CREDIT
AGREEMENT dated as of January 15, 2010 among:

    

    BURLINGTON COAT FACTORY WAREHOUSE
CORPORATION (in such capacity, the “Lead Borrower”), a
corporation organized under the laws of the State of Delaware, with its
principal executive offices at 1830 Route 130, Burlington, New Jersey 08016, for
itself and as agent for the Borrowers and the Other Borrowers; and

    

    THE BORROWERS AND THE FACILITY
GUARANTORS from time to time party hereto; and

    

    BANK OF AMERICA, N.A., a
national banking association, having a place of business at 100 Federal Street,
Boston, Massachusetts 02110, as administrative agent (in such capacity, the
“Administrative
Agent”), and as collateral agent (in such capacity, the “Collateral Agent”),
for its own benefit and the benefit of the other Secured Parties;

    

    The LENDERS party
hereto;

    

    WELLS FARGO RETAIL FINANCE, LLC
and REGIONS BANK,
as Co-Syndication Agent;

    

    J.P. MORGAN SECURITIES INC.
and UBS SECURITIES
LLC, as Co-Documentation Agents; and

    

    GENERAL ELECTRIC CAPITAL CORPORATION,
U.S. BANK, NATIONAL ASSOCIATION, and SUNTRUST BANK, as Senior
Managing Agents;

    

    in
consideration of the mutual covenants herein contained and benefits to be
derived herefrom, the parties hereto agree as follows:

    

    W I T N E S S E T H:

    

    WHEREAS,
the Borrowers and the Facility Guarantors have entered into a Credit Agreement,
dated as of April 13, 2006 (as amended and in effect on and prior to the date
hereof, the “Existing
Credit Agreement”), among such Borrowers and Facility Guarantors, the
“Lenders” as defined therein, Bank of America, N.A. as “Administrative Agent”
and “Collateral Agent”, Bear Stearns Corporate Lending Inc., as “Syndication
Agent”, and Wachovia Bank, National Association, The CIT Group/Business Credit,
Inc., General Electric Capital Corporation, and JPMorgan Chase Bank, N.A., as
“Co-Documentation Agents”; and

    

    WHEREAS,
in accordance with SECTION 9.02 of the Existing Credit Agreement, the Borrowers,
the Facility Guarantors, the Required Lenders and the Agents desire to amend and
restate the Existing Credit Agreement as provided herein.

    

    NOW,
THEREFORE, in consideration of the mutual conditions and agreements set forth in
this Agreement, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the undersigned hereby agree that
the Existing Credit Agreement shall be amended and restated in its entirety to
read as follows (it being agreed that this Agreement shall not be deemed to
evidence or result in a novation or repayment and reborrowing of the Obligations
under the Existing Credit Agreement):

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ARTICLE
I

    

    SECTION
1.01       Definitions.

    

    As used
in this Agreement, the following terms have the meanings specified
below:

    

    “ACH” means automated
clearing house transfers.

    

    “Accommodation
Payment” has the meaning provided in SECTION 9.14.

    

    “Account(s)” means
“accounts” as defined in the UCC, and also means a right to payment of a
monetary obligation, whether or not earned by performance, (a) for property that
has been or is to be sold, leased, licensed, assigned, or otherwise disposed of,
(b) for services rendered or to be rendered, or (c) arising out of the use of a
credit or charge card or information contained on or for use with the
card.  The term “Account” does not include (a) rights to payment
evidenced by chattel paper or an instrument, (b) commercial tort claims, (c)
deposit accounts, (d) investment property, or (e) letter-of-credit rights or
letters of credit.

    

    “Acquired EBITDA”
means, with respect to any entity or business acquired in a Permitted
Acquisition for any period, the amount for such period of Consolidated EBITDA of
such entity or business (determined as if references to the Parent and the
Subsidiaries in the definition of Consolidated EBITDA included such entity or
business and its Subsidiaries), all as determined on a Consolidated basis for
such entity or business.

    

    “Acquisition” means,
with respect to a specified Person, (a) an Investment in or a purchase of a 50%
or greater interest in the Capital Stock of any other Person, (b) a purchase or
acquisition of all or substantially all of the assets of any other Person, (c) a
purchase or acquisition of a Real Estate portfolio or Stores from any other
Person, or (d) any merger or consolidation of such Person with any other Person
or other transaction or series of transactions resulting in the acquisition of
all or substantially all of the assets, or a 50% or greater interest in the
Capital Stock of, any Person, in each case in any transaction or group of
transactions which are part of a common plan.

    

    “Additional Commitment
Lender” shall have the meaning provided in SECTION 2.02(b).

    

    “Adjusted LIBO Rate”
means, with respect to any LIBO Borrowing for any Interest Period, an interest
rate per annum (rounded upwards, if necessary, to the next 1/100 of one percent)
equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.  The Adjusted LIBO Rate will be adjusted
automatically as to all LIBO Borrowings then outstanding as of the effective
date of any change in the Statutory Reserve Rate.

    

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

    

    “Advisory Fees” means
annual advisory fees, closing fees and transaction fees and related expenses
payable by the Loan Parties pursuant to the Advisory Agreement, but not to
exceed the amounts payable thereunder as in effect on the Closing Date or such
increased amount as may be agreed to in writing by the Administrative Agent in
its sole reasonable discretion.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Advisory Agreement”
means the Advisory Agreement dated as of April 13, 2006 by and among Burlington
Coat Factory Holdings, Inc., a Delaware corporation, Burlington Coat Factory
Warehouse Corporation, a Delaware corporation and Bain Capital Partners, LLC, a
Delaware limited liability company, as amended and in effect from time to time
in a manner not prohibited hereunder.

    

    “Affiliate” means,
with respect to a specified Person, any other Person that directly or indirectly
through one or more intermediaries Controls, is Controlled by or is under common
Control with the Person specified.

    

    “Agents” means
collectively, the Administrative Agent and the Collateral Agent.

    

    “Agreement” means this
Amended and Restated Credit Agreement, as modified, amended, supplemented or
restated, and in effect from time to time.

    

    “Agreement Value”
means  for each Hedge Agreement, on any date of determination, an
amount equal to:

    

    (a)     
      In the case of a Hedge Agreement documented
pursuant to an ISDA Master Agreement, the amount, if any, that would be payable
by any Loan Party to its counterparty to such Hedge Agreement, as if (i) such
Hedge Agreement was being terminated early on such date of determination and
(ii) such Loan Party was the sole “Affected Party” (as therein
defined);

    

    (b)      
     In the case of a Hedge Agreement traded on an
exchange, the mark-to-market value of such Hedge Agreement, which will be the
unrealized loss, if any, on such Hedge Agreement to the Loan Party which is
party to such Hedge Agreement, based on the settlement price of such Hedge
Agreement on such date of determination; or

    

    (c)     
      In all other cases, the mark-to-market value
of such Hedge Agreement, which will be the unrealized loss, if any, on such
Hedge Agreement to the Loan Party that is party to such Hedge Agreement as the
amount, if any, by which (i) the present value of the future cash flows to be
paid by such Loan Party exceeds (ii) the present value of the future cash flows
to be received by such Loan Party, in each case pursuant to such Hedge
Agreement.

    

    “AHYDO Catch-Up
Payment” means the payment of interest by the Borrowers in cash with
respect to the Holdco Notes to the extent required to be paid by the Borrowers
in order that such interest may be deducted in the determination of taxable
income in accordance with Applicable Law relating to Applicable High Yield
Discount Obligations (as defined in Section 163(i) of the Code).

    

    “Applicable Law” means
as to any Person: (a) all laws, statutes, rules, regulations, orders, codes,
ordinances or other requirements having the force of law; and (b) all court
orders, decrees, judgments, injunctions, enforceable notices, binding agreements
and/or rulings, in each case of or by any Governmental Authority which has
jurisdiction over such Person, or any property of such Person.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Applicable Lenders”
means the Required Lenders or all Lenders, as applicable.

    

    “Applicable Margin”
means:

    

    (a)          From
and after the Closing Date until the first Adjustment Date after the Closing
Date, the percentages set forth in Level III of the pricing grid below;
and

    

    (b)          On
the first day of each Fiscal Quarter (each, an “Adjustment Date”),
commencing with the Fiscal Quarter beginning on September 3, 2006, the
Applicable Margin shall be determined from such pricing grid based upon average
daily Excess Availability for the most recently ended Fiscal Quarter immediately
preceding such Adjustment Date.

    

    

    
      	
              Level

            	
              Average
      Daily Excess Availability

            	
              LIBO
      Applicable Margin

            	
              Prime
      Rate Applicable Margin

            
	
              I

            	
              Greater
      than $475,000,000

            	
              1.00%

            	
              0%

            
	
              II

            	
              Less
      than or equal to $475,000,000 but greater than
$300,000,000

            	
              1.25%

            	
              0%

            
	
              III

            	
              Less
      than or equal to $300,000,000 but greater than
$125,000,000

            	
              1.50%

            	
              0%

            
	
              IV

            	
              Less
      than or equal to $125,000,000

            	
              1.75%

            	
              0%

            

    

    

    

    “Applicable Termination
Date” means (a) in the case of the Non-Extending Lenders, the Existing
Termination Date, and (b) in the case of the Extending Lenders, the Extended
Termination Date.

    

    “Appraised Value”
means the net appraised recovery value of the Borrowers’ Inventory as set forth
in the Borrowers’ stock ledger (expressed as a percentage of the Cost of such
Inventory) as reasonably determined from time to time by reference to the most
recent appraisal received by the Agents conducted by an independent appraiser
reasonably satisfactory to the Agents.

    

    “Approved Fund” means
any Fund that is administered or managed by (a) a Credit Party, (b) an Affiliate
of a Credit Party, (c) an entity or an Affiliate of an entity that administers
or manages a Credit Party, or (d) the same investment advisor or an advisor
under common control with such Credit Party or advisor, as
applicable.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Arrangers” means,
collectively, Banc of America Securities LLC and Wells Fargo Retail Finance,
LLC.

    

    “Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
SECTION 9.04), and accepted by the Administrative Agent, in substantially the
form of Exhibit
A or any other form approved by the Administrative Agent.

    

    “Availability” means
the lesser of (a) or (b), where:

    

    (a)     
      is the result of:

    

    (i)  
          The Revolving Credit
Ceiling,

    

    Minus

    

    (ii)  
         The aggregate outstanding
amount of Credit Extensions to, or for the account of, the
Borrowers;

    

    (b)       
    is the result of:

    

    (i) 
           The Borrowing Base,
as determined from the most recent Borrowing Base Certificate (delivered by the
Lead Borrower to the Administrative Agent pursuant to SECTION 5.01(f) hereof (as
may be adjusted from time to time pursuant to SECTION 2.03
hereof));

    

    Minus

    

    (ii)  
         The aggregate outstanding
amount of Credit Extensions to, or for the account of, the
Borrowers.

    

    “Availability
Reserves” means, without duplication of any other Reserves or items that
are otherwise addressed or excluded through eligibility criteria, such reserves
as the Administrative Agent from time to time determines in its reasonable
commercial discretion from the perspective of an asset-based lender exercised in
good faith as being appropriate (a) to reflect the impediments to the Agent’s
ability to realize upon the Collateral included in the Borrowing Base, (b) to
reflect claims and liabilities that the Administrative Agent determines will
need to be satisfied in connection with the realization upon the Collateral, (c)
to reflect criteria, events, conditions, contingencies or risks which adversely
affect the Borrowing Base and the aggregate value of the Collateral or the
validity or enforceability of this Agreement and the other Loan Documents or the
material rights and remedies of the Secured Parties hereunder or thereunder, or
(d) to reflect any restrictions in the Senior Note Documents or the Holdco Note
Documents on the incurrence of Indebtedness by the Loan Parties, but only to the
extent that such restrictions reduce, or with the passage of time could reduce,
the amounts available to be borrowed hereunder (including, without limitation as
a result of the Loan Parties’ receipt of net proceeds from asset sales) in order
for the Loan Parties to comply with the Senior Note Documents and the Holdco
Note Documents.  Availability Reserves shall include, without
limitation, Cash Management Reserves, Bank Product Reserves and the Term Loan
Reserve.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “Bank of America”
means Bank of America, N.A., a national banking association, and its
Subsidiaries and Affiliates.

    

    “Bank Products” means
any services or facilities provided to any Loan Party by any Lender or any of
its Affiliates (other than Cash Management Services), on account of (a) leasing
arrangements and (b) Hedge Agreements.

    

    “Bank Product
Reserves” means such reserves as the Administrative Agent, from time to
time after the occurrence and during the continuation of a Cash Dominion Event,
determines in its reasonable commercial discretion exercised in good faith as
being appropriate to reflect the reasonably anticipated liabilities and
obligations of the Loan Parties with respect to Bank Products then provided or
outstanding.

    

    “Bankruptcy Code”
means Title 11, U.S.C., as now or hereafter in effect, or any successor
thereto.

    

    “Blocked Account” has
the meaning provided in SECTION 2.18(c).

    

    “Blocked Account
Agreement” has the meaning provided in SECTION 2.18(c).

    

    “Blocked Account
Banks” means the banks with whom deposit accounts are maintained in which
material amounts (as reasonably determined by the Administrative Agent) of funds
of any of the Loan Parties from one or more DDAs are concentrated and with whom
a Blocked Account Agreement has been, or is required to be, executed in
accordance with the terms hereof.

    

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

    

    “Borrowers” means,
collectively, the Lead Borrower, the Borrowers identified on the signature pages
hereto and each Other Borrower who becomes a Borrower hereunder in accordance
with the terms of this Agreement.

    

    “Borrowing” means (a)
the incurrence of Revolving Credit Loans of a single Type, on a single date and
having, in the case of LIBO Loans, a single Interest Period, or (b) a Swingline
Loan.

    

    “Borrowing Base”
means, at any time of calculation, an amount equal to:

    

    (a)     
      90% of the face amount of Eligible Credit
Card Receivables of the Borrowers;

    

    plus

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b)     
      the Cost of Eligible Inventory of the
Borrowers, net of Inventory Reserves, multiplied by 85%
of  the Appraised Value of Eligible Inventory of the
Borrowers;

    

    plus

    

    (c)        
   with respect to any Eligible Letter of Credit, without
duplication of any Eligible In-Transit Inventory, the Cost of the Inventory
supported by such Eligible Letter of Credit when completed, net of Inventory
Reserves, multiplied by 85% of
the Appraised Value of such Inventory of the Borrowers;

    

    minus

    

    (d)          
 the then amount of all Availability Reserves.

    

    “Borrowing Base
Certificate” has the meaning provided in SECTION 5.01(f).

    

    “Borrowing Request”
means a request by the Lead Borrower on behalf of any of the Borrowers for a
Borrowing in accordance with SECTION 2.04.

    

    “Breakage Costs” has
the meaning provided in SECTION 2.16(c).

    

    “Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks in
Boston, Massachusetts are authorized or required by law to remain closed; provided, however, that when
used in connection with a LIBO Loan, the term “Business Day” shall also exclude
any day on which banks are not open for dealings in dollar deposits in the
London interbank market.

    

    “Capital Expenditures”
means, with respect to the Loan Parties for any period, the additions to
property, plant and equipment and other capital expenditures of the Loan Parties
that are (or would be) set forth in a Consolidated statement of cash flows of
the Loan Parties for such period prepared in accordance with GAAP; provided that
“Capital Expenditures” shall not include (i) any additions to property, plant
and equipment and other capital expenditures made with (A) the proceeds of any
equity securities issued or capital contributions received by any Loan Party or
any Subsidiary in connection with such capital expenditures, (B) the proceeds
from any casualty insurance or condemnation or eminent domain, to the extent
that the proceeds therefrom are utilized for capital expenditures within twelve
months of the receipt of such proceeds, (C) the proceeds or consideration
received from any sale, trade in or other disposition of any Loan Party’s assets
(other than assets constituting Collateral consisting of Inventory and
Accounts), to the extent that the proceeds and/or consideration therefrom are
utilized for capital expenditures within twelve months of the receipt of such
proceeds, (ii) any such expenditures which constitute a Permitted Acquisition,
or (iii) any expenditures which are contractually required to be, and are,
reimbursed to the Loan Parties in cash by a third party (including landlords)
during such period of calculation.

    

    “Capital Lease
Obligations” means, with respect to any Person for any period, the
obligations of such Person to pay rent or other amounts under any lease of (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;
for purposes of this Agreement, the amount of such obligations shall be the
capitalized amount thereof determined in accordance with GAAP (except for
temporary treatment of construction related expenditures under EITF 97-10, “The
Effects of Lessee Involvement in Asset Construction” which will ultimately be
treated as operating leases upon a sale-leaseback transaction).

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Capital Stock” shall
mean, as to any Person that is a corporation, the authorized shares of such
Person’s capital stock, including all classes of common, preferred, voting and
nonvoting capital stock, and, as to any Person that is not a corporation or an
individual, the membership or other ownership interests in such Person,
including, without limitation, the right to share in profits and losses, the
right to receive distributions of cash and other property, and the right to
receive allocations of items of income, gain, loss, deduction and credit and
similar items from such Person, whether or not such interests include voting or
similar rights entitling the holder thereof to exercise Control over such
Person, collectively with, in any such case, all warrants, options and other
rights to purchase or otherwise acquire, and all other instruments convertible
into or exchangeable for, any of the foregoing.

    

    “Cash Collateral
Account” means an interest bearing account established by the Loan
Parties with the Collateral Agent, for its own benefit and the benefit of the
other Secured Parties, under the sole and exclusive dominion and control of the
Collateral Agent, in the name of the Collateral Agent or as the Collateral Agent
shall otherwise direct, in which deposits are required to be made in accordance
with SECTION 2.13(j).

    

    “Cash Dominion Event”
means either (a) the occurrence and continuance of any Specified Default, or (b)
the failure of the Borrowers to maintain Availability of at least the greater of
(i) fifteen percent (15%) of the lesser of (A) the then Borrowing Base or (B)
the then Revolving Credit Ceiling or (ii) $65,000,000, in each case for five (5)
consecutive Business Days.  For purposes of this Agreement, the
occurrence of a Cash Dominion Event shall be deemed continuing (unless the
Arrangers otherwise agree in their reasonable discretion or the Arrangers, in
their reasonable judgment, have determined that the circumstances surrounding
such Specified Default cease to exist) (a) so long as such Specified Default is
continuing or has not been waived, and/or (b) if the Cash Dominion Event arises
as a result of the Borrowers’ failure to achieve Availability as required
hereunder, until Availability has exceeded the greater of (i) fifteen percent
(15%) of the lesser of (A) the then Borrowing Base or (B) the then Revolving
Credit Ceiling or (ii) $65,000,000 for thirty (30) consecutive days, in which
case a Cash Dominion Event shall no longer be deemed to be continuing for
purposes of this Agreement, provided, that a Cash
Dominion Event may not be so cured on more than two (2) occasions in any period
of 365 consecutive days.

    

    “Cash Management
Reserves” means such reserves as the Administrative Agent, from time to
time after the occurrence and during the continuation of a Cash Dominion Event,
determines in its reasonable commercial discretion exercised in good faith as
being appropriate to reflect the reasonably anticipated liabilities and
obligations of the Loan Parties with respect to Cash Management Services then
provided or outstanding.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

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

    

    “Cash Receipts” has
the meaning provided in SECTION 2.18(d).

    

    “CERCLA” means the
Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C.
§ 9601 et seq.

    

    “Change in Control”
means, at any time:

    

    (a)     
      any “change in/of control” or similar event
as defined in any documents governing the Senior Notes or the Holdco Notes;
or

    

    (b)       
    during a period of up to twelve (12) consecutive months,
occupation of a majority of the seats (other than vacant seats) on the board of
directors (or other body exercising similar management authority) of the Parent
and Holdings by Persons who were neither (i) nominated by the board of directors
of the Parent or Holdings, as applicable (or prior to the consummation of a
Qualifying IPO, the Sponsor) nor (ii) appointed by directors so nominated;
or

    

    (c)          
 after the consummation of a Qualifying IPO, any person or “group” (within
the meaning of the Securities and Exchange Act of 1934, as amended), other than
any one or more of the Sponsor Group, is or becomes the beneficial owner (within
the meaning of Rule 13d-3 or 13d-5 of the Securities and Exchange Act of 1934,
as amended, except that such person shall be deemed to have “beneficial
ownership” of all Capital Stock that such person has the right to acquire,
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of (i) thirty-five percent (35%) or more (on a
fully diluted basis) of the total then outstanding Capital Stock of the Parent
(or Holdings if the Qualifying IPO is undertaken by Holdings) entitled to vote
for the election of directors of the Parent (or Holdings, as applicable), and
(ii) Capital Stock of the Parent (or Holdings) entitled to vote for the election
of directors of the Parent (or Holdings) in an amount greater than the number of
shares of such Capital Stock beneficially owned by the Sponsor Group (or over
which the Sponsor Group has voting control); or

    

    (d)           
prior to the consummation of a Qualifying IPO, a change in the Control of the
Parent such that the Loan Parties are not Controlled by any one or more of the
Sponsor Group;

    

    (e)           
the Parent fails at any time to own, directly or indirectly, 100% of the Capital
Stock of each Loan Party free and clear of all Liens (other than those Liens
specified in clauses (a), (e), (i), (l) and (r) of the definition of Permitted
Encumbrances), except where such failure is as a result of a transaction
permitted by the Loan Documents; or

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (f)       
     Holdings fails at any time to own, directly or
indirectly, 100% of the Capital Stock of each of its Subsidiaries which is a
Loan Party free and clear of all Liens (other than those Liens specified in
clauses (a), (e), (i), (l) and (r) of the definition of Permitted Encumbrances),
except where such failure is as a result of a transaction permitted by the Loan
Documents.

    

    “Change in Law” means
(a) the adoption of any Applicable Law after the Closing Date, (b) any change in
any Applicable Law or in the interpretation or application thereof by any
Governmental Authority after the Closing Date or (c) compliance by any Credit
Party (or, for purposes of SECTION 2.14, by any lending office of such Credit
Party or by such Credit Party’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the Closing Date applicable to the
Loan Parties.

    

    “Charges” has the
meaning provided in SECTION 9.13.

    

    “Charter Document”
means as to any Person, its partnership agreement, certificate of incorporation,
certificate of formation, operating agreement, membership agreement or similar
constitutive document or agreement or its by-laws.

    

    “Closing Date” means
April 13, 2006.

    

    “Code” means the
Internal Revenue Code of 1986 and the Treasury regulations promulgated
thereunder, as amended from time to time.

    

    “Co-Documentation
Agents” has the meaning provided in the preamble to this
Agreement.

    

    “Co-Syndication
Agents” has the meaning provided in the preamble to this
Agreement.

    

    “Collateral” means any
and all “Collateral”, “Pledged Collateral” or words of similar intent as defined
in any applicable Security Document.

    

    “Collateral Access
Agreement” means an agreement reasonably satisfactory in form and
substance to the Collateral Agent executed by (a) a bailee or other Person in
possession of Collateral, and (b) each landlord of Real Estate leased by any
Loan Party, pursuant to which such Person (i) acknowledges the Collateral
Agent’s Lien on the Collateral, (ii) releases or subordinates such Person’s
Liens in the Collateral held by such Person or located on such Real Estate,
(iii) agrees to furnish the Collateral Agent with access to the Collateral in
such Person’s possession or on the Real Estate for the purposes of conducting a
Liquidation, and (iv) makes such other agreements with the Collateral Agent as
the Collateral Agent may reasonably require.

    

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

    

    “Commercial Letter of
Credit” means any Letter of Credit issued for the purpose of providing
the primary payment mechanism in connection with the purchase of any materials,
goods or services by a Borrower in the ordinary course of business of such
Borrower.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    “Commitment” shall
mean, with respect to each Lender, the commitment of such Lender hereunder to
make Credit Extensions to the Borrowers in the amount set forth opposite its
name on Schedule
1.1(a) hereto or as may subsequently be set forth in the Register from
time to time, as the same may be increased or reduced from time to time pursuant
to SECTIONS 2.02 and 2.15 of this Agreement.

    

    “Commitment Increase”
shall have the meaning provided in SECTION 2.02(b).

    

    “Commitment Increase
Date” shall have the meaning provided in SECTION 2.02(e).

    

    “Commitment
Percentage” shall mean, with respect to each Lender, the percentage
determined by dividing the Commitment of such Lender by the Commitments of all
Lenders hereunder to make Credit Extensions to the Borrowers, in the amount set
forth opposite such Lender’s name on Schedule 1.1(a)
hereto or as may subsequently be set forth in the Register from time to time, as
the same may be  increased or reduced from time to time pursuant to
SECTIONS 2.02 and 2.15 of this Agreement; provided that unless the
Commitments of all Lenders shall have then expired or been terminated, after the
Commitments of the Non-Extending Lenders shall have expired or been terminated
and all Obligations owed to the Non-Extending Lenders shall have been paid in
full (other than contingent indemnity obligations for then unasserted claims),
the Commitment Percentages of the Extending Lenders shall be appropriately
adjusted to reflect the expiration or termination of the Commitments of the
Non-Extending Lenders.

    

    “Compliance
Certificate” has the meaning provided in SECTION 5.01(d).

    

    “Concentration
Account” has the meaning provided in SECTION 2.18(d).

    

    “Confirmation of Ancillary
Documents” means that certain Confirmation of Ancillary Documents dated
as of the Effective Date among the Agents and the Loan Parties.

    

    “Consolidated” means,
when used to modify a financial term, test, statement, or report of a Person,
the application or preparation of such term, test, statement or report (as
applicable) based upon the consolidation, in accordance with GAAP, of the
financial condition or operating results of such Person and its
Subsidiaries.

    

    “Consolidated EBITDA”
means, with respect to the Loan Parties on a Consolidated basis for any period,
(i) the sum (without duplication) of (a) Consolidated Net Income for such
period, plus in
each case without duplication and to the extent deducted in determining
Consolidated Net Income for such period, (b) depreciation, amortization, and all
other non-cash charges, non-cash expenses or non-cash losses, (c) provisions for
Consolidated Taxes based on income,  (d) Consolidated Interest
Expense, (e) Advisory Fees whether accrued or paid in cash, (f) all
transactional costs, expenses and charges payable to (x) non-Affiliated third
parties and made at the time of, and in connection with, the consummation of any
transaction related to any Permitted Acquisition, Permitted Disposition,
issuance of Permitted Indebtedness or issuance of Capital Stock, and (y) if
applicable, Sankaty Advisors LLC and any of its Affiliates which make debt
investments in the ordinary course of its business and made at the time of, and
in connection with, the consummation of any transaction related to any issuance
of Permitted Indebtedness; provided that, in the case of this subclause (y),
such transaction and any costs, expenses and charges payable in connection
therewith shall comply with SECTION 6.07, (g) to the extent not already included
in Consolidated Net Income, proceeds from business interruption insurance, (h)
to the extent not already included in Consolidated Net Income and actually
indemnified or reimbursed, any expenses and charges that are covered by
indemnification or reimbursement provisions in connection with any Permitted
Acquisition or any Permitted Disposition, (i) cash receipts (or reduced cash
expenditures) in respect of income received in connection with subleases to the
extent non-cash gains relating to such income were deducted in the calculation
of Consolidated EBITDA pursuant to clause (ii)(b) below for any previous period,
(j) cash charges not to exceed $5,000,000 in the aggregate after the Effective
Date associated with restructuring activities, including, but not limited to,
restructuring, consolidation or discontinuance of any portion of the operations,
severance, recruiting, retention, relocation and other expenses of management
and contract and lease termination expenses, and (k) unusual, nonrecurring or
extraordinary expenses, losses or charges as reasonably approved by the
Administrative Agent, minus (ii) the sum of
(a) any Restricted Payment made in cash during such period to any Person (other
than a Loan Party) having an interest in any Subsidiary of a Loan Party, (b)
non-cash gains for such period to the extent included in Consolidated Net
Income, and (c) cash payments made during such period on account of non-cash
charges added back in the calculation of Consolidated EBITDA pursuant to clause
(i)(b) above for any previous period; provided that, in the
event that the Borrower changes its Fiscal Year in accordance with SECTION 6.11,
Consolidated EBITDA shall be increased or decreased for any period to the extent
necessary to eliminate the effects during such period of any increase or
decrease in legal, auditing, consulting and accounting related expenses
(including changes to accounting systems) for such period relating directly to
such change in Fiscal Year compared to the amount of such expenses that would
have been incurred in such period had such change in Fiscal Year not occurred
(as determined in good faith by the Borrowers and as set forth in a certificate
of a Responsible Officer delivered to the Administrative Agent).  For
the avoidance of doubt, in calculating Consolidated EBITDA, Acquired EBITDA for
the relevant period shall be included in such calculation.

    
      
         

      

      
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    “Consolidated Fixed Charge
Coverage Ratio” means, with respect to the Loan Parties for any period,
the ratio of (a) (i) Consolidated EBITDA for such period minus (ii) Capital
Expenditures during such period, plus (iii) equity
received from the Sponsors or any Affiliate thereof to the extent used to make
payments on account of Debt Service Charges to the lenders under the Term Loan
Financing Facility, to (b) the sum of (i) Debt Service Charges payable in cash
during such period plus (ii) federal,
state and foreign income Taxes paid in cash (net of refunds received) during
such period, plus (iii) the annual
management fee provided for in the Advisory Agreement, whether accrued or paid
in cash during such period, all as determined on a Consolidated basis in
accordance with GAAP.

    

    “Consolidated Interest
Expense” means, with respect to the Loan Parties on a Consolidated basis
for any period, (a) total interest expense (including that attributable to
Capital Lease Obligations in accordance with GAAP but excluding any imputed
interest as a result of purchase accounting) of the Loan Parties on a
Consolidated basis with respect to all outstanding Indebtedness of the Loan
Parties, including, without limitation, the Obligations and all commissions,
discounts and other fees and charges owed with respect thereto, but excluding
(i) any non-cash or deferred interest financing costs and (ii) any non-cash
amortization or write-down of any deferred financing fees, all as determined on
a Consolidated basis in accordance with GAAP and reduced by interest income
received or receivable in cash for such period.  For purposes of the
foregoing, interest expense of any Loan Party shall be determined after giving
effect to any net payments made or received by such Loan Party with respect to
interest rate Hedge Agreements.

    
      
         

      

      
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    “Consolidated Net
Income” means, with respect to the Loan Parties for any period, the net
income (or loss) of the Loan Parties on a Consolidated basis for such period
taken as a single accounting period determined in accordance with GAAP; provided, however, that there
shall be excluded (a) the income (or loss) of any Person in which any Loan Party
has a joint interest, except to the extent of the amount of dividends or other
distributions actually paid in cash to such Loan Party during such period, and
(b) the income of any direct or indirect Subsidiary of a Loan Party to the
extent that the declaration or payment of dividends or similar distributions by
that Subsidiary of that income is not at the time permitted by operation of the
terms of its Charter Documents or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that
Subsidiary.

    

    “Consolidated Taxes”
means, as of any date for the applicable period ending on such date with respect
to the Loan Parties on a Consolidated basis, the aggregate of all income,
withholding, franchise and similar taxes and foreign withholding taxes, as
determined in accordance with GAAP, to the extent the same are paid or accrued
during such period.

    

    “Control” means the
possession, directly or indirectly, of the power (a) to vote 50% or more of the
securities having ordinary voting power for the election of directors (or any
similar governing body) of a Person, or (b) to direct or cause the direction of
the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. The terms “Controlling” and
“Controlled”
have meanings correlative thereto.

    

     “Cost” means the cost
of purchases, as reported on the Borrowers’ financial stock ledger based upon
the Borrowers’ accounting practices in effect on the Closing Date or thereafter
consented to by the Administrative Agent, whose consent will not be unreasonably
withheld.  “Cost” does not include inventory capitalization costs or
other non-purchase price charges (except for freight charges with respect to all
Inventory (other than unpaid freight charges for Eligible In-Transit Inventory)
to the extent treated consistently with the Borrowers’ accounting practices in
effect on the Closing Date) used in the Borrowers’ calculation of cost of goods
sold.

    

    “Credit Card
Notifications” has the meaning provided in SECTION 2.18(c).

    

    “Credit Extensions” as
of any day, shall be equal to the sum of (a) the principal balance of all
Revolving Credit Loans then outstanding, and (b) the then amount of the Letter
of Credit Outstandings.

    

    “Credit Party” means
(a) the Lenders, (b) the Agents and their respective Affiliates and branches,
(c) each Issuing Bank, (d) the Arrangers, and (e) the successors and permitted
assigns of each of the foregoing.

    

    “Credit Party
Expenses” means, without limitation, all of the following to the extent
incurred in connection with this Agreement and the other Loan Documents: (a) all
reasonable out-of-pocket expenses incurred by the Agents, Banc of America
Securities LLC, and Wells Fargo Retail Finance, LLC, including the reasonable
fees, charges and disbursements of one counsel for the Agents and their
Affiliates (plus local counsel in any other jurisdiction to the extent
reasonably necessary), outside consultants for the Agents consisting of one
inventory appraisal firm and one real estate appraisal firm, one commercial
finance examination firm and one environmental engineering firm (provided that so long
as the Term Loan Financing Facility has not been terminated, the Agents shall be
entitled to reimbursement  for no more than one environmental
engineering firm acting on behalf of both the Credit Parties and the lenders
under the Term Loan Financing Facility), in connection with the preparation and
administration of the Loan Documents, the syndication of the credit facilities
provided for herein, or any amendments, modifications or waivers requested by a
Loan Party of the provisions hereof or thereof (whether or not any such
amendments, modifications or waivers shall be consummated), (b) all reasonable
out-of-pocket expenses incurred by any Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder, (c) all reasonable out-of-pocket expenses incurred by
the Agents and, subject to the proviso below any Lender and their respective
Affiliates and branches, including the reasonable fees, charges and
disbursements of one counsel for the Agents and their Affiliates (plus local
counsel in any other jurisdiction to the extent reasonably necessary) and
outside consultants for the Agents (including, without limitation, inventory and
real estate appraisal firms, commercial finance examination firms and
environmental engineering firms (provided that so long
as the Term Loan Financing Facility has not been terminated, the Agents shall be
entitled to reimbursement  for no more than one environmental
engineering firm acting on behalf of both the Credit Parties and the lenders
under the Term Loan Financing Facility)), in connection with the enforcement and
protection of their rights in connection with the Loan Documents, including all
such out-of-pocket expenses incurred during any workout, restructuring or
related negotiations in respect of such Revolving Credit Loans or Letters of
Credit; provided
that the Lenders who are not the Agents shall be entitled to
reimbursement for no more than one counsel representing all such Lenders (absent
a conflict of interest in which case the Lenders may engage and be reimbursed
for additional counsel). Credit Party Expenses shall not include the allocation
of any overhead expenses of any Credit Party.

    
      
         

      

      
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    “Customer Credit
Liabilities” means, at any time, the aggregate remaining balance
reflected on the books and records of the Parent and its Subsidiaries at such
time of (a) outstanding gift certificates and gift cards of the Borrowers
entitling the holder thereof to use all or a portion of the certificate or gift
card to pay all or a portion of the purchase price for any Inventory, and (b)
outstanding merchandise credits of the Borrowers.

    

    “Customs Broker
Agreement” means an agreement in substantially the form attached hereto
as Exhibit B
among a Borrower, a customs broker or other carrier, and the Collateral Agent,
in which the customs broker or other carrier acknowledges that it has control
over and holds the documents evidencing ownership of the subject Inventory or
other property for the benefit of the Collateral Agent, and agrees, upon notice
from the Collateral Agent (which notice shall be delivered only upon the
occurrence and during the continuance of an Event of Default), to hold and
dispose of the subject Inventory and other property solely as directed by the
Collateral Agent.

    

    “DDAs” means any
checking or other demand deposit account maintained by the Loan
Parties.  All funds in such DDAs shall be conclusively presumed to be
Collateral and proceeds of Collateral and the Agents and the Lenders shall have
no duty to inquire as to the source of the amounts on deposit in the
DDAs.

    
      
         

      

      
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    “Debt Service Charges”
means, for any period, the sum of (a) Consolidated Interest Expense required to
be paid or paid in cash, plus (b) scheduled
principal payments made or required to be made (after giving effect to any
prepayments paid in cash that reduce the amount of such required payments) on
account of Indebtedness, including the full amount of any non-recourse
Indebtedness (excluding the Obligations, but including, without limitation,
Capital Lease Obligations) for such period, plus (c) scheduled mandatory
payments on account of Disqualified Capital Stock (whether in the nature of
dividends, redemption, repurchase or otherwise) required to be made during such
period, in each case determined in accordance with GAAP.

    

    “Default” means any
event or condition described in SECTION 7.01 that constitutes an Event of
Default or that upon notice, lapse of any cure period set forth in SECTION 7.01,
or both, would, unless cured or waived, become an Event of Default.

    

    “Default Rate” has the
meaning provided in SECTION 2.12.

    

    “Delinquent Lender”
has the meaning provided in SECTION 8.15.

    

    “Designated
Obligations” has the meaning provided in SECTION 2.16(b).

    

    “Designated
Prepayment” has the meaning provided in SECTION 2.16(b).

    

    “Deteriorating Lender”
means any Delinquent Lender or any Lender, as reasonably determined by the
Administrative Agent (upon which determination the Administrative Agent will
give notice thereof to the Lead Borrower) as to which (a) such Lender has
defaulted in fulfilling its funding obligations under one or more other
syndicated credit facilities, or (b) such Lender or a Person that Controls such
Lender has been deemed insolvent or become the subject of a bankruptcy,
insolvency or similar proceeding.

    

    “Disbursement
Accounts” has the meaning provided in SECTION 2.18(g).

    

    “Disclosed Matters”
means the actions, suits and proceedings and the environmental matters disclosed
on Schedule
3.06(a) and
Schedule 3.06(b).

    

    “Disqualified Capital
Stock” means any Capital Stock which, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable), or
upon the happening of any event, (a) is mandatorily redeemable in whole or in
part prior to the Extended Term Maturity Date, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof,
in whole or in part, (b) is convertible into or exchangeable (unless at the sole
option of the issuer thereof) for Indebtedness or any Capital Stock referred to
in (a) above prior to the Extended Term Maturity Date, or (c) contains any
mandatory repurchase obligation which comes into effect prior to the Extended
Term Maturity Date, provided that any
Capital Stock that would not constitute Disqualified Capital Stock but for
provisions thereof giving holders thereof (or the holders of any security into
or for which such Capital Stock is convertible, exchangeable or exercisable) the
right to require the issuer thereof to redeem such Capital Stock upon the
occurrence of a Change in Control shall not constitute Disqualified Capital
Stock.

    
      
         

      

      
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     “Documents” has the
meaning assigned to such term in the Security Agreement.

    

     “dollars” or “$” refers to lawful
money of the United States of America.

    

    “Earn-Out Obligations”
means the maximum amount of all obligations incurred or to be incurred in
connection with any Acquisition of a Person pursuant to a Permitted Acquisition
under non-compete agreements, consulting agreements, earn-out agreements and
similar deferred purchase agreements.

    

    “Effective Date” means
January 15, 2010.

    

     “Eligible Assignee”
means a commercial bank, insurance company, or company engaged in the business
of making commercial loans or a commercial finance company, which Person,
together with its Affiliates, has a combined capital and surplus in excess of
$1,000,000,000, or any Affiliate of any Credit Party under common control with
such Credit Party, or an Approved Fund of any Credit Party, provided that in any
event, “Eligible Assignee” shall not include (x) any natural person, or (y) the
Sponsor Group or any of their respective Affiliates to the extent that, after
giving effect to any proposed assignment, the Sponsor Group and their respective
Affiliates would hold in the aggregate more than 10% of the then outstanding
Credit Extensions; provided that the
Sponsor Group and each of their respective Affiliates shall be subject to the
Sponsor Lender Limitations.

    

    “Eligible Credit Card
Receivables” means, as of any date of determination, Accounts due to a
Loan Party from major credit card processors (including, but not limited to,
VISA, Mastercard, American Express, Diners Club and DiscoverCard) as arise in
the ordinary course of business and which have been earned by performance, that
are not excluded as ineligible by virtue of one or more of the criteria set
forth below.  None of the following shall be deemed to be Eligible
Credit Card Receivables:

    

    (a)     
      Accounts due from major credit card
processors that have been outstanding for more than five (5) Business Days from
the date of sale, or for such longer period(s) as may be approved by the
Administrative Agent in its reasonable discretion;

    

    (b)       
    Accounts due from major credit card processors with
respect to which a Loan Party does not have good, valid and marketable title
thereto, free and clear of any Lien (other than Liens granted to the Collateral
Agent for its own benefit and the benefit of the other Secured Parties pursuant
to the Security Documents, those Liens specified in clauses (a) and (e) of the
definition of Permitted Encumbrances and Permitted Encumbrances having priority
by operation of Applicable Law over the Lien of the Collateral Agent) (the
foregoing not being intended to limit the discretion of the Administrative Agent
to change, establish or eliminate any Reserves on account of any such
Liens);

    
      
         

      

      
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    (c)     
      Accounts due from major credit card
processors that are not subject to a first priority (except as provided in
clause (b), above) security interest in favor of the Collateral Agent for its
own benefit and the benefit of the other Secured Parties;

    

    (d)       
    Accounts due from major credit card processors which are
disputed, or with respect to which a claim, counterclaim, offset or chargeback
(other than chargebacks in the ordinary course by the credit card processors)
has been asserted, by the related credit card processor (but only to the extent
of such dispute, counterclaim, offset or chargeback);

    

    (e)          
 Except as otherwise approved by the Administrative Agent, Accounts due
from major credit card processors as to which the credit card processor has the
right under certain circumstances to require a Loan Party to repurchase the
Accounts from such credit card processor;

    

    (f)            
Accounts arising from the Cohoes private label credit card receivables or any
other private label credit card receivables of the Loan Parties;
and

    

    (g)           
Accounts due from major credit card processors (other than Visa, Mastercard,
American Express, Diners Club and DiscoverCard) which the Administrative Agent
determines in its commercial reasonable discretion acting in good faith to be
unlikely to be collected.

    

    “Eligible In-Transit
Inventory” means, as of any date of determination, without duplication of
other Eligible Inventory, Inventory (a) which has been shipped from (i) any
location within the United States for receipt by a Loan Party within fifteen
(15) days of the date of determination or (ii) any location outside of the
United States for receipt by a Loan Party within sixty (60) days of the date of
determination, but which, in either case, has not yet been received by a Loan
Party, (b) for which the purchase order is in the name of a Loan Party and title
has passed to a Loan Party, (c) except as otherwise agreed by the Administrative
Agent, for which a Loan Party is designated as “shipper” and/or the consignor
and the document of title or waybill reflects a Loan Party as consignee (along
with delivery to a Loan Party or its customs broker of the documents of title,
to the extent applicable, with respect thereto), (d) as to which the Collateral
Agent has control over the documents of title, to the extent applicable, which
evidence ownership of the subject Inventory (such as by the delivery of a
Customs Broker Agreement and a control agreement with a carrier or freight
forwarder), (e) which is insured in accordance with the provisions of this
Agreement and the other Loan Documents, including, without limitation marine
cargo insurance; and (f) which otherwise is not excluded from the definition of
Eligible Inventory; providedthat the
Administrative Agent may, in its reasonable discretion and upon prior notice to
the Lead Borrower, exclude any particular Inventory from the definition of
“Eligible In-Transit Inventory” in the event that the Administrative Agent
reasonably determines that such Inventory is subject to any Person’s right or
claim which is  senior to, or pari passu with, the Lien of the
Administrative Agent (such as, without limitation, a right of stoppage in
transit), as applicable.

    

     “Eligible Inventory”
means, as of any date of determination, without duplication, (a) Eligible
In-Transit Inventory, and (b) items of Inventory of a Loan Party that are
finished goods, merchantable and readily saleable to the public in the ordinary
course that are not excluded as ineligible by virtue of the one or more of the
criteria set forth below.  None of the following shall be deemed to be
Eligible Inventory:

    
      
         

      

      
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    (a)     
      Inventory that is not solely owned by a Loan
Party, or is leased by or is on consignment to a Loan Party, or as to which the
Loan Parties do not have title thereto;

    

    (b)       
    Inventory (other than any Eligible In-Transit Inventory)
that is not located in the United States of America (or Canada, as long as the
Administrative Agent shall have received or conducted appraisals of such
Canadian Inventory from appraisers reasonably satisfactory to the Administrative
Agent) at a location that is owned or leased by the Loan Parties except to the
extent that the Loan Parties have furnished the Collateral Agent with (A) any
UCC financing statements or PPSA registration statements or other filings that
the Collateral Agent may reasonably determine to be necessary to perfect its
security interest in such Inventory at such location, and (B) unless otherwise
agreed by the Agents, a Collateral Access Agreement executed by the Person
owning any such location on terms reasonably acceptable to the Collateral
Agent;

    

    (c)          
 Inventory that is located in a distribution center leased by a Loan Party
unless the applicable lessor has delivered to the Collateral Agent a Collateral
Access Agreement;

    

    (d) 
          Inventory that
represents goods which (i) are damaged, defective, “seconds,” or otherwise
unmerchantable, (ii) are to be returned to the vendor, (iii) are obsolete,
custom items, work in process, raw materials, or that constitute spare parts,
shipping materials or supplies used or consumed in a Borrower’s business, or
(iv) are bill and hold goods, including, without limitation, Inventory located
at Store 52 as reflected in the Borrowers’ books and records;

    

    (e)    
       Except as otherwise agreed by the
Agents, Inventory that represents goods that do not conform in all material
respects to the representations and warranties contained in this Agreement or
any of the Security Documents;

    

    (f)        
    Inventory that is not subject to a perfected first
priority security interest in favor of the Collateral Agent for its own benefit
and the benefit of the other Secured Parties (subject only to Permitted
Encumbrances having priority by operation of Applicable Law);

    

    (g)         
  Inventory which consists of samples, labels, bags, packaging
materials, and other similar non-merchandise categories;

    

    (h)     
      Inventory as to which casualty insurance in
compliance with the provisions of SECTION 5.07 hereof is not in
effect;

    

    (i)          
  Inventory which has been sold but not yet delivered or Inventory to
the extent that any Borrower has accepted a deposit therefor;
and

    
      
         

      

      
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    (j)             Inventory
acquired in a Permitted Acquisition, unless the Administrative Agent shall have
received or conducted (A) appraisals, from appraisers reasonably satisfactory to
the Administrative Agent, of such Inventory to be acquired in such Acquisition
and (B) such other due diligence as the Agents may reasonably require, all of
the results of the foregoing to be reasonably satisfactory to the
Agents.  As long as the Administrative Agent has received reasonable
prior notice of such Permitted Acquisition and the Loan Parties reasonably
cooperate (and cause the Person being acquired to reasonably cooperate) with the
Administrative Agent, the Administrative Agent shall use reasonable best efforts
to complete such due diligence and a related appraisal on or prior to the
closing date of such Permitted Acquisition.

    

    “Eligible Letter of
Credit” means, as of any date of determination thereof, a Commercial
Letter of Credit which supports the purchase of Inventory, (i) which Inventory
does not constitute Eligible In-Transit Inventory and for which no documents of
title have then been issued; (ii) which Inventory when the purchase thereof is
completed would otherwise constitute Eligible Inventory, (iii) which Commercial
Letter of Credit has an initial expiry, subject to the proviso hereto, within
120 days after the date of initial issuance of such Commercial Letter of Credit,
provided that
ninety percent (90%) of the maximum Stated Amount of all such Commercial Letters
of Credit shall not, at any time, have an initial expiry greater than ninety
(90) days after the original date of issuance of such Commercial Letters of
Credit, and (iv) which Commercial Letter of Credit provides that it may be drawn
only after the Inventory is completed and after documents of title have been
issued for such Inventory reflecting a Loan Party or the Collateral Agent as
consignee of such Inventory, and (v) which will constitute Eligible In-Transit
Inventory upon satisfaction of the requirements of clause (iv) hereof; provided that the
Administrative Agent may, in its reasonable discretion and upon prior notice to
the Lead Borrower, exclude any particular Inventory from the definition of
“Eligible Letter of Credit” in the event the Administrative Agent reasonably
determines that such Inventory is subject to any Person’s right or claim which
is senior to, or pari passu with, the Lien of the Collateral Agent (such as,
without limitation, a right of stoppage in transit).

    

     “Environmental Laws”
means all Applicable Laws issued, promulgated or entered into by or with any
Governmental Authority, relating in any way to the protection of human health
from environmental hazards, to the protection of the environment, to the
handling, treatment, storage, disposal of Hazardous Materials or to the
assessment or remediation of any Release or threatened Release of any Hazardous
Material to the environment.

    

    “Environmental
Liability” means any liability, contingent or otherwise (including,
without limitation, any liability for damages, natural resource damage, costs of
environmental remediation, administrative oversight costs, fines, penalties or
indemnities), of any Loan Party directly or indirectly resulting from or based
upon (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the Release or threatened Release of
any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

    

    “Equipment” has the
meaning set forth in the Security Documents.

    
      
         

      

      
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    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time
and the regulations promulgated and rulings issued thereunder.

    

    “ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with
Lead Borrower, is treated as a single employer under Section 414(b) or (c) of
the Code or, solely for 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” means:
(a) any “reportable event”, as defined in Section 4043 of ERISA with respect to
a Plan (other than an event for which the 30 day notice period is waived); (b)
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) in excess of
$25,000,000 (or such lesser amount as would reasonably be expected to result in
a Material Adverse Effect), whether or not waived; (c) 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; (d) the
incurrence by the Lead Borrower or any ERISA Affiliate of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by the Lead Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Lead Borrower or any ERISA Affiliate of any liability in excess of $25,000,000
(or such lesser amount as would reasonably be expected to result in a Material
Adverse Effect) with respect to the withdrawal or partial withdrawal from any
Plan or Multiemployer Plan; or (g) the receipt by the Lead Borrower or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the Lead
Borrower or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability in excess of $25,000,000 (or such lesser amount as would
reasonably be expected to result in a Material Adverse Effect) 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.

    

    “Event of Default” has
the meaning provided in SECTION 7.01. An “Event of Default” shall be deemed to
have occurred and to be continuing unless and until that Event of Default has
been duly waived in writing by the Administrative Agent in accordance with the
terms of this Agreement.

    

    “Excess Availability”
means the difference between (a) the Borrowing Base and (b) the sum of the
outstanding Credit Extensions to the Borrowers.

    

    “Excluded Net
Proceeds” means , (i) with respect to any Net Proceeds received from a
sale, transfer or disposition of any of the Term Loan Priority Collateral or any
event described in clause (b) of the definition of “Prepayment Event” with
respect to any of the Term Loan Priority Collateral only, such portion of such
Net Proceeds that are then required to be paid to the lenders under the Term
Loan Financing Facility, (ii) with respect to any Net Proceeds received from any
Indebtedness used to refinance the Term Loan Financing Facility
in  accordance with Section 6.06(b)(v) hereof, such portion of such
Net Proceeds that is required to be paid to the lenders under the Term Loan
Financing Facility and (iii) with respect to any Net Proceeds received from any
other Prepayment Event, if the Term Payment Availability Conditions are
satisfied, and no Cash Dominion Event has occurred and is continuing or would
arise therefrom, such portion of such Net Proceeds that are required to be paid
to the lenders under the Term Loan Financing Facility.

    
      
         

      

      
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    “Excluded Taxes”
means, with respect to the Agents, any Lender, any Issuing Bank or any other
recipient of any payment to be made by or on account of any obligation of the
Borrowers hereunder, (a) income or franchise taxes imposed on (or measured by)
its gross or net income by the United States of America, 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, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any
Borrower is located,  and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by a Borrower under SECTION 2.24(a)), any
United States withholding tax that is imposed on amounts payable to such Foreign
Lender (i) at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office other than at the request of a Borrower under
SECTION 2.24), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrowers with respect to
such withholding tax pursuant to SECTION 2.23(a), or (ii) is attributable to
such Foreign Lender’s failure to comply with SECTION 2.23(e).

    

    “Existing Letters of
Credit” means the Letters of Credit issued under the Existing Credit
Agreement and outstanding as of the Effective Date.

    

    “Existing Maturity
Date” means May 28, 2011.

    

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

    

    “Extended Term Applicable
Margin” means:

    

    (a)    
       From and after the Effective Date
until the first Extended Term Adjustment Date after the Effective Date, the
percentages set forth in Level II of the pricing grid below; and

    

    (b)      
     On the first day of each Fiscal Quarter (each, an
“Extended Term
Adjustment Date”), commencing with the Fiscal Quarter beginning on June
1, 2010, the Extended Term Applicable Margin shall be determined from such
pricing grid based upon average daily Availability for the most recently ended
Fiscal Quarter immediately preceding such Extended Term Adjustment Date; provided that, if the
Lead Borrower changes its Fiscal Quarters in accordance with SECTION 6.11, the
Extended Term Adjustment Date shall continue to be the first day of each Fiscal
Quarter as in effect on the Effective Date.

    
      
         

      

      
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              Level

            	
              Average
      Daily Availability

            	
              LIBO
      Extended Term Applicable Margin

            	
              Prime
      Rate Extended Term Applicable Margin

            
	
              I

            	
              Greater
      than or equal to 40% of the lesser of (x) the Revolving Credit Ceiling and
      (y) the Borrowing Base

            	
              3.25%

            	
              2.25%

            
	
              II

            	
              Less
      than 40% of the lesser of (x) the Revolving Credit Ceiling and (y) the
      Borrowing Base but greater than or equal to 20% of the lesser of (x) the
      Revolving Credit Ceiling and (y) the Borrowing Base

            	
              3.50%

            	
              2.50%

            
	
              III

            	
              Less
      than 20% of the lesser of (x) the Revolving Credit Ceiling and (y) the
      Borrowing Base

            	
              3.75%

            	
              2.75%

            

    

    

    

    “Extended Term Maturity
Date” means the earlier of (x) February 5, 2014 and (y) forty-five days
prior to the maturity date of the Term Loan Financing Facility as provided in
the Term Loan Agreement; provided that this
clause (y) shall not apply in the event that either (i) after implementation by
the Administrative Agent of the Term Loan Maturity Reserve on the date which is
forty-five days prior to the maturity date of the Term Loan Financing Facility,
the Pro Forma Availability Condition shall have been satisfied or (ii) the
outstanding principal amount of the Term Loan Financing Facility on such date
maturing on or before February 5, 2014 is not more than
$75,000,000.

    

    “Extended Term Prime
Rate” means, as to any applicable Borrowing existing on or after the
Effective Date for any day, the highest of: (a) the variable annual rate of
interest then most recently announced by Bank of America, N.A. at its head
office in Charlotte, North Carolina as its “prime rate”; (b) the Federal Funds
Effective Rate in effect on such day plus one-half of one
percent (0.50%) per annum; or (c) the Adjusted LIBO Rate (calculated utilizing
the LIBO Rate for a one-month Interest Period) in effect on the Effective Date
and on each 30-day anniversary of the Effective Date plus one percent
(1.00%) per annum.  The “prime rate” is a reference rate and does not
necessarily represent the lowest or best rate being charged by Bank of America,
N.A. to any customer.  The “prime rate” is a rate set by Bank of
America, N.A. based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  If for any reason the Administrative Agent shall
have determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate or the LIBO Rate
for any reason, including the inability or failure of the Administrative Agent
to obtain sufficient quotations thereof in accordance with the terms hereof, the
Extended Term Prime Rate shall be determined without regard to clauses (b) or
(c), as applicable, of the first sentence of this definition, until the
circumstances giving rise to such inability no longer exist. Any change in the
Extended Term Prime Rate due to a change in Bank of America’s “prime rate”, the
Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective on the
effective date of such change in Bank of America’s Prime Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively.

    
      
         

      

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

    

    “Extended Term Unused
Fee” has the meaning provided in SECTION 2.19(c).

    

    “Extending Lender”
means each Lender listed on Schedule 1.1(a) under
the heading “Extending Lenders”, whose Commitment shall terminate on the
Extended Term Termination Date.

    

    “Facility Guarantee”
means any Guarantee of the Obligations executed by the Parent and its
Subsidiaries which are or hereafter become Facility Guarantors in favor of the
Agents and the other Secured Parties.

    

    “Facility Guarantors”
means any Person executing a Facility Guarantee.

    

    “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of one percent (1%)) of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as published on the next succeeding Business Day by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average (rounded upwards, if necessary, to
the next 1/100 of one percent (1%)) of the quotations for such day for such
transactions received by the Administrative Agent from three (3) federal funds
brokers of recognized standing selected by the Administrative
Agent.

    

    “Fee Letter” means the
Fee Letter dated November 19, 2009 by and among the Lead Borrower, Banc of
America Securities LLC and Bank of America, N.A., as the same may be amended,
supplemented or replaced and in effect from time to time.

    

    “Financial Officer”
means, with respect to any Loan Party, the chief financial officer, chief
accounting officer, treasurer, assistant treasurer, controller or assistant
controller of such Loan Party.

    

     “Fiscal
Month”  means any fiscal month of any Fiscal Year, subject to
SECTION 6.11, which month shall generally consist of either four (4) or five (5)
weeks and shall generally end on the last Saturday of each calendar month in
accordance with the fiscal accounting calendar of the Parent and its
Subsidiaries.

    
      
         

      

      
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    “Fiscal Quarter” means
any fiscal quarter of any Fiscal Year, subject to SECTION 6.11, which quarters
shall generally consist of thirteen (13) weeks or fourteen (14) weeks and shall
generally end on the last Saturday of each May, August, November and February of
such Fiscal Year in accordance with the fiscal accounting calendar of the Parent
and its Subsidiaries.

    

    “Fiscal Year” means,
subject to SECTION 6.11, any period of twelve consecutive Fiscal Months ending
on the Saturday closest to May 31 of any calendar year.

    

    “Fixed Assets” means
Equipment and Real Estate.

    

    “Foreign Lender” means
any Lender that is organized under the laws of a jurisdiction other than the
United States of America or any State thereof or the District of
Columbia.

    

    “Foreign Subsidiary”
means any Subsidiary that is organized under the laws of a jurisdiction other
than the United States of America or any State thereof or the District of
Columbia, or any of its territories or possessions.

    

    “Fronting Fee” shall
have the meaning set forth in SECTION 2.19(e) hereof.

    

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

    

    “GAAP” means generally
accepted accounting principles in effect from time to time in the United States
of America which are consistent with those promulgated or adopted by the
Financial Accounting Standards Board and its predecessors (or successors) in
effect and applicable to that accounting period in respect of which reference to
GAAP is being made.

    

    “General Intangibles”
has the meaning assigned to such term in the Security Agreement.

    

    “Governmental
Authority” means 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, tribunal,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

    

    “Governmental Real Estate
Disclosure Requirements” means any requirement of any Governmental
Authority requiring notification of the buyer, lessee, mortgagee, assignee or
other transferee of any Real Estate, facility, establishment or business, or
notification, registration or filing to or with any Governmental Authority, in
connection with the sale, lease, mortgage, assignment or other transfer
(including any transfer of control) of any Real Estate, facility, establishment
or business, of the actual or threatened presence or Release in or into the
environment, or the use, disposal or handling of Hazardous Material on, at,
under or near the Real Estate, facility, establishment or business to be sold,
leased, mortgaged, assigned or transferred.

    

    “Guarantee” of or by
any Person (the “guarantor”) means 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 of the
guarantor, direct or indirect, (a) 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, (b) 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, (c) 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 (d)
as an account party in respect of any letter of credit or letter of guaranty
issued to support such Indebtedness or obligation, provided that the
term “Guarantee” shall not include endorsements for collection or deposit in the
ordinary course of business or customary and reasonable indemnity obligations,
including but not limited to, those in effect on the Effective Date or entered
into in connection with any Permitted Acquisition or Permitted Disposition
(other than such obligations with respect to Indebtedness).  The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith.

    
      
         

      

      
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    “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,  mold, fungi or similar bacteria, and all other
substances or wastes of any nature regulated pursuant to any Environmental Law
because of their dangerous or deleterious properties, including any material
listed as a hazardous substance under Section 101(14) of CERCLA.

    

    “Hedge Agreement”
means any derivative agreement, or any interest rate protection agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, foreign currency exchange agreement, commodity price protection
agreement or other interest or currency exchange rate or commodity price hedging
arrangement designed to hedge against fluctuations in interest rates or foreign
exchange rates or commodity prices.

    

    “Holdco Notes” means
the 14-1/2% Senior Discount Notes Due 2014 in the original amount of $99,309,000
issued by Holdings under an Indenture dated as of April 13, 2006 or any
supplemental indenture with Wilmington Trust FSB, as successor Trustee and any
securities issued in lieu or in replacement thereof.

    

    “Holdco Note
Documents” means the documents, instruments and other agreements now or
hereafter executed and delivered in connection with the Holdco Notes, including,
without limitation, the Indenture dated as of April 13, 2006 or any supplemental
indenture with Wilmington Trust FSB, as successor Trustee.

    

    “Holdings” means
Burlington Coat Factory Investments Holdings, Inc., a Delaware
corporation.

    

    “Immaterial
Subsidiary” means a Subsidiary of the Parent for which (a) the assets of
such Subsidiary constitute less than or equal to 1% of the total assets of the
Parent and its Subsidiaries on a consolidated basis and collectively with all
Immaterial Subsidiaries, less than or equal to 5% of the total assets of the
Parent and its Subsidiaries on a consolidated basis, and (b) the revenues of
such Subsidiary account for less than or equal to 1% of the total revenues of
the Parent and its Subsidiaries on a consolidated basis and collectively with
all Immaterial Subsidiaries, less than or equal to 5% of the total revenues of
the Parent and its Subsidiaries on a consolidated basis.  In no event
shall Holdings or the Lead Borrower be deemed an “Immaterial
Subsidiary.”

    
      
         

      

      
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    “Indebtedness” of any
Person means, without duplication:

    

    (a)  
         All obligations of such
Person for borrowed money (including any obligations which are without recourse
to the credit of such Person);

    

    (b)    
       All obligations of such Person
evidenced by bonds, debentures, notes or similar instruments;

    

    (c)       
    All obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such
Person;

    

    (d)         
  All obligations of such Person in respect of the deferred purchase
price of property or services (excluding accrued expenses and accounts payable
incurred in the ordinary course of business);

    

    (e)           
All Indebtedness of others secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed or is limited in
recourse;

    

    (f)  
          All Guarantees by
such Person of Indebtedness of others;

    

    (g)   
        All Capital Lease Obligations of
such Person;

    

    (h)     
      All obligations, contingent or otherwise, of
such Person as an account party in respect of letters of credit and letters of
guaranty;

    

    (i)     
       All obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances;

    

    (j)        
    The Agreement Value of all Hedge
Agreements;

    

    (k)            The
principal and interest portions of all rental obligations of such Person under
any Synthetic Lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing where such transaction is considered
borrowed money indebtedness for tax purposes but is classified as an operating
lease in accordance with GAAP;

    

    (l)      
      Indebtedness consisting of Earn-Out
Obligations in connection with Permitted Acquisitions but only to the extent
that the contingent consideration relating thereto is not paid within thirty
(30) days after the amount due is finally determined; and

    
      
         

      

      
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    (m)   
       All mandatory obligations of such
Person to purchase, redeem, retire, defease or otherwise make any payment in
respect of any Capital Stock of such Person (including, without limitation,
Disqualified Capital Stock);

    

    Indebtedness
shall not include (A) any sale-leaseback transactions to the extent the lease or
sublease thereunder is not required to be recorded under GAAP as a Capital
Lease, (B) any obligations relating to overdraft protection and netting
services, (C) any preferred stock required to be included as Indebtedness in
accordance with GAAP, or (D) items that would appear as a liability on a balance
sheet prepared in accordance with GAAP as a result of the application of EITF
97-10, “The Effects of Lessee Involvement in Asset Construction” or any similar
accounting standard.

    

    The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable
therefor.

    

    “Indemnified Taxes”
means Taxes other than Excluded Taxes.

    

    “Indemnitee” has the
meaning provided in SECTION 9.03(b).

    

    “Information” has the
meaning provided in SECTION 9.15.

    

    “Instruments” has the
meaning assigned to such term in the Security Agreement.

    

    “Intellectual
Property” means all present and future: trade secrets, know-how and other
proprietary information; trademarks, Internet domain names, service marks, trade
dress, trade names, business names, designs, logos, slogans (and all
translations, adaptations, derivations and combinations of the foregoing),
indicia and other source and/or business identifiers, all of the goodwill
related thereto, and all registrations and applications for registrations
thereof; works of authorship and other copyrighted works (including copyrights
for computer programs), and all registrations and applications for registrations
thereof; inventions (whether or not patentable) and all improvements thereto;
patents and patent applications, together with all continuances, continuations,
divisions, revisions, extensions, reissuances, and reexaminations thereof;
industrial design applications and registered industrial designs; books,
records, writings, computer tapes or disks, flow diagrams, specification sheets,
computer software, source codes, object codes, executable code, data, databases
and other physical manifestations, embodiments or incorporations of any of the
foregoing; all other intellectual property; all rights to sue and recover at law
or in equity for any past, present or future infringement, dilution or
misappropriation, or other violation thereof; and all common law and other
rights throughout the world in and to all of the foregoing.

    

    “Intellectual Property
Security Agreement” means the Intellectual Property Security Agreement
dated as of the Closing Date among the Loan Parties and the Collateral Agent for
its own benefit and for the benefit of the other Secured Parties, granting a
Lien in the Intellectual Property of the Loan Parties, as amended, restated,
supplemented or otherwise modified and in effect from time to
time.

    
      
         

      

      
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    “Intercreditor
Agreement” means that certain Intercreditor Agreement dated as of the
Closing Date by and among the Agents, JPMorgan Chase Bank, N.A., as successor
administrative agent and collateral agent to Bear Stearns Corporate Lending Inc.
under the Term Loan Financing Facility, and the Loan Parties and attached hereto
as Exhibit K,
as amended and in effect from time to time.

    

     “Interest Payment
Date” means (a) with respect to any Prime Rate Loan (including a
Swingline Loan), the last day of each Fiscal Quarter, provided that, if the Lead
Borrower changes its Fiscal Quarters in accordance with SECTION 6.11, such
quarterly payments shall be due on the dates such payments would have been due
under this Agreement as in effect on the Effective Date had such change in
Fiscal Quarters not occurred and (b) with respect to any LIBO Loan, on the last
day of the Interest Period applicable to the Borrowing of which such LIBO Loan
is a part, and, in addition, if such LIBO Loan has an Interest Period of greater
than ninety (90) days, on the last day of every third month of such Interest
Period.

    

    “Interest Period”
means, with respect to any LIBO Borrowing, the period commencing on the date of
such Borrowing and ending on the numerically corresponding day in the calendar
month that is one (1),  two (2), three (3), or six (6) months, and, if
available to all Lenders, seven (7) or fourteen (14) days or nine (9) or twelve
(12) months thereafter as the Lead Borrower may elect by notice to the
Administrative Agent in accordance with the provisions of this Agreement; provided, however, that (a) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day, (b) any
Interest Period of one month or more that commences on the last Business Day of
a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month during which such Interest Period ends) shall end
on the last Business Day of the calendar month of such Interest Period, and (c)
(i) until such time as the Commitments of the Non-Extending Lenders shall have
expired or been terminated and all Obligations owed to the Non-Extending Lenders
shall have been paid in full (other than contingent indemnity obligations for
then unasserted claims), no Interest Period shall extend beyond the Existing
Maturity Date, and (ii) thereafter, no Interest Period shall extend beyond the
Extended Term Maturity Date. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing.

    

    “Inventory” has the
meaning assigned to such term in the Security Agreement.

    

    “Inventory Reserves”
means such reserves as may be established from time to time by the
Administrative Agent, in its reasonable commercial discretion exercised in good
faith and not inconsistent with past practice, with respect to changes in the
determination of the saleability, at retail, of the Eligible Inventory or which
reflect such other factors as negatively affect the market value of the Eligible
Inventory.

    

    “Investment” means
with respect to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of:

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    (a)   
        Any Capital Stock of another
Person, evidence of Indebtedness or other security of another Person, including
any option, warrant or right to acquire the same;

    

    (b)   
        Any loan, advance, contribution
to capital, extension of credit (except for current trade and customer accounts
receivable for inventory sold or services rendered in the ordinary course of
business) to, or guaranty of Indebtedness of, another Person; and

    

    (c)    
       Any Acquisition;

    

    in all
cases whether now existing or hereafter made. For purposes of
calculation,  the amount of any Investment outstanding at any time
shall be the aggregate cash Investment less all cash returns, cash
dividends and cash distributions (or the fair market value of any non-cash
returns, dividends and distributions) received by such Person.

    

    “ISDA Master
Agreement” means the form entitled “2002 ISDA Master Agreement” or such
other replacement form then currently published by the International Swap and
Derivatives Association, Inc., or any successor thereto.

    

    “Issuing Bank” means,
individually and collectively, each of Bank of America, PNC Bank, National
Association, JPMorgan Chase Bank, N.A. and Wells Fargo Retail Finance,
LLC.  Any Issuing Bank may, in its reasonable discretion, arrange for
one or more Letters of Credit to be issued by Affiliates of such Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate.

    

    “Joinder Agreement”
shall mean an agreement, in substantially the form attached hereto as Exhibit F, pursuant
to which, among other things, a Person becomes a party to, and bound by the
terms of, this Agreement and/or the other Loan Documents in the same capacity
and to the same extent as either a Borrower or a Facility Guarantor, as the
Administrative Agent may determine.

    

     “Landlord Lien State”
means any state in which a landlord’s claim for rent has priority by operation
of Applicable Law over the lien of the Collateral Agent in any of the
Collateral.

    

    “Lead Borrower” has
the meaning set forth in the Preamble to this Agreement.

    

    “Lease” means any
agreement pursuant to which a Loan Party is entitled to the use or occupancy of
any space in a structure, land, improvements or premises for any period of
time.

    

    “Lenders” means the
Lenders having Commitments from time to time or at any time (including all
Extending Lenders and Non-Extending Lenders), and each assignee that becomes a
party to this Agreement as set forth in SECTION 9.04(b) and each Additional
Commitment Lender that becomes a party to this Agreement as set forth in SECTION
2.02.

    

    “Letter of Credit”
means (a) each Existing Letter of Credit, and (b) a letter of credit that is (i)
issued by an Issuing Bank pursuant to this Agreement for the account of a
Borrower, (ii) a Standby Letter of Credit or Commercial Letter of Credit, issued
in connection with the purchase of Inventory by a Borrower and for other
purposes for which such Borrower has historically obtained letters of credit, or
for any other purpose that is reasonably acceptable to the Administrative Agent
(and for which such Issuing Bank is not otherwise prohibited from issuing such
letter of credit due to the internal general policies of such Issuing Bank), and
(iii) in form reasonably satisfactory to such Issuing Bank.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    “Letter of Credit
Disbursement” means a payment made by any Issuing Bank to the beneficiary
of, and pursuant to, a Letter of Credit.

    

    “Letter of Credit
Fees” means the fees payable in respect of Letters of Credit pursuant to
SECTION 2.19(d).

    

    “Letter of Credit
Outstandings” means, at any time, the sum of (a) the Stated Amount of all
Letters of Credit outstanding at such time, plus, without
duplication, (b) all amounts theretofore drawn or paid under Letters of Credit
for which the applicable Issuing Bank has not then been reimbursed.

    

    “Letter-of-Credit
Rights” has the meaning assigned to such term in the Security
Agreement.

    

    “Letter of Credit
Sublimit” means, at any time, $300,000,000, as such amount may be
increased or reduced in accordance with the provisions of this
Agreement.

    

    “LIBO Borrowing” means
a Borrowing comprised of LIBO Loans.

    

    “LIBO Loan” shall mean
any Revolving Credit Loan bearing interest at a rate determined by reference to
the Adjusted LIBO Rate in accordance with the provisions of Article
II.

    

    “LIBO Rate” means,
with respect to any LIBO Borrowing for any Interest Period,

    

    (a)   
        the rate per annum equal to the
rate determined by the Administrative Agent to be the offered rate that appears
on the page of the Telerate screen (or any successor thereto) that displays an
average British Bankers Association Interest Settlement Rate for deposits in
Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period,
or

    

    (b)     
      if the rate referenced in the preceding
clause (a) does not appear on such page or service or such page or service shall
not be available, the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate on such other page or other service
that displays an average British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, or

    

    (c)       
    if the rates referenced in the preceding clauses (a) and
(b) are not available, the rate per annum determined by the Administrative Agent
as the rate of interest at which deposits in Dollars for delivery on the first
day of such Interest Period in same day funds in the approximate amount of the
LIBO Borrowing being made, continued or converted by Bank of America, N.A. and
with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar market
at their request at approximately 4:00 p.m. (London time) two Business Days
prior to the first day of such Interest Period.

    
      
         

      

      
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    “Lien” means, with
respect to any asset, (a) any mortgage, deed of trust, lien (statutory or
otherwise), pledge, hypothecation, encumbrance, collateral assignment, charge or
security interest in, on or of such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party with
respect to such securities.

    

    “Liquidation” means
the exercise by the Agents of those rights and remedies accorded to the Agents
under the Loan Documents and Applicable Law as a creditor of the Loan Parties,
including (after the occurrence and during the continuation of an Event of
Default) the conduct by the Borrowers, acting with the consent of the
Administrative Agent, of  any public, private or
“Going-Out-Of-Business Sale” or other disposition of Collateral for the purpose
of liquidating the Collateral.  Derivations of the word “Liquidation”
(such as “Liquidate”) are used
with like meaning in this Agreement.

    

    “Loan Account” has the
meaning provided in SECTION 2.20.

    

    “Loan Documents” means
this Agreement, the Notes, the Letters of Credit, the Fee Letter, all Borrowing
Base Certificates, the Blocked Account Agreements, the Credit Card
Notifications, the Security Documents, the Facility Guarantees, the
Intercreditor Agreement, the Confirmation of Ancillary Documents, and any other
instrument or agreement now or hereafter executed and delivered in connection
herewith (excluding agreements entered into in connection with any transaction
arising out of any Bank Products or Cash Management Services), each as amended
and in effect from time to time.

    

    “Loan Party” or “Loan Parties” means
the Borrowers and the Facility Guarantors.

    

     “Margin Stock” has the
meaning assigned to such term in Regulation U.

    

    “Material Adverse
Effect” means any event, facts, or circumstances, which has a material
adverse effect on (i) the business, assets, or financial condition of the Loan
Parties taken as a whole or (ii) the validity or enforceability of this
Agreement or the other Loan Documents, taken as a whole, or the rights or
remedies of the Secured Parties hereunder or thereunder, taken as a
whole.

    

    “Material
Indebtedness” means Indebtedness (other than the Obligations) of the Loan
Parties, individually or in the aggregate, having an aggregate principal amount
exceeding $50,000,000.  In any event, all Indebtedness under the
Senior Notes, the Holdco Notes, and the Term Loan Financing Facility shall be
deemed Material Indebtedness, regardless of the outstanding balance thereunder
from time to time.

    

    “Maximum Rate” has the
meaning provided in SECTION 9.13.

    
      
         

      

      
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    “Minority Lenders” has
the meaning provided in SECTION 9.02(c).

    

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

    

    “Mortgages” means the
mortgages and deeds of trust and any other security documents granting a Lien on
Real Estate between the Loan Party owning the Real Estate encumbered thereby and
the Collateral Agent for its own benefit and the benefit of the other Secured
Parties.

    

    “Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

    

    “Net Proceeds” means,
with respect to any event, (a) the cash proceeds received in respect of such
event, including (i) any cash received in respect of any non-cash proceeds or
amounts escrowed pursuant to clause (iv) of this definition, but only as and
when received, (ii) in the case of a casualty, insurance proceeds, and (iii) in
the case of a condemnation or similar event, condemnation awards and similar
payments, in each case net of (b) the sum of (i) all fees and out-of-pocket fees
and expenses (including appraisals, and brokerage, legal, title and recording or
transfer tax expenses and commissions) paid by any Loan Party or a Subsidiary to
third parties (other than Affiliates, except to the extent permitted under
SECTION 6.07 hereof) in connection with such event, and (ii) in the case of a
sale or other disposition of an asset (including pursuant to a casualty or
condemnation), the amount of all payments required to be made by any Loan Party
or any of their respective Subsidiaries as a result of such event to repay (or
to establish an escrow for the repayment of) any Indebtedness (other than the
Obligations) secured by a Permitted Encumbrance that is senior to the Lien of
the Collateral Agent, (iii) capital gains or other income taxes paid or payable
as a result of any such sale or disposition (after taking into account any
available tax credits or deductions), provided that the
Administrative Agent may, in its discretion, establish an Availability Reserve
in the amount of any taxes so deducted in calculating Net Proceeds, and (iv) any
funded escrow established pursuant to the documents evidencing any such sale or
disposition to secure any indemnification obligations or adjustments to the
purchase price associated with any such sale or disposition.

    

    “Non-Cash Pay Debt”
means any Subordinated Indebtedness incurred by a Loan Party in connection with
a Permitted Acquisition, which Subordinated Indebtedness does not require the
payment in cash of principal, interest, fees, or any amount (other than on
account of expense reimbursements and indemnities) payable to the holder of such
Subordinated Indebtedness as a holder of debt pursuant to the documents
governing such Subordinated Indebtedness prior to the Extended Term Maturity
Date, has a maturity which extends beyond the Extended Term Maturity Date, and
is subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent.

    

    “Non-Core Business
Segment” means any business segment or separate department of the Loan
Parties which contributed less than 5% of the Consolidated EBITDA of the Loan
Parties as of the Fiscal Year immediately prior to the date of such
calculation.  As of the Effective Date, “business segments” shall mean
the businesses set forth on Schedule
1.1(b).

    

    “Non-Core Disposition Payment
Conditions” means at the time of determination with respect to a
specified transaction, that (a) no Specified Default then exists or would arise
as a result of the entering into such transaction, (b) after giving effect to
such transaction, the Pro Forma Availability Condition has been satisfied (provided that, for
the purposes of this definition, the percentage set forth in the definition of
Pro Forma Availability Condition shall be deemed to be 20%), and (c) either (i)
the Consolidated Fixed Charge Coverage Ratio, calculated on a trailing twelve
months basis after giving effect to such transaction, will be equal to or
greater than 1.1:1.0, or (ii) the Loan Parties shall have provided the
Administrative Agent with a solvency opinion from an unaffiliated third party
valuation firm reasonably satisfactory to the Administrative
Agent.  Prior to undertaking any transaction which is subject to the
Non-Core Disposition Payment Conditions, the Loan Parties shall deliver to the
Administrative Agent (i) evidence of satisfaction of the conditions contained in
clause (b) above on a basis reasonably satisfactory to the Administrative Agent,
and (ii) either (x) evidence of satisfaction of the conditions contained in
clause (c)(i) above on a basis reasonably satisfactory to the Administrative
Agent or (y) the solvency opinion referred to in clause
(c)(ii).

    
      
         

      

      
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    “Noncompliance Notice”
shall have the meaning provided in SECTION 2.06(b).

    

    “Non-Extending Lender”
means each Lender listed on Schedule 1.1(a) under
the heading “Non-Extending Lenders”, whose Commitment shall terminate on the
Existing Termination Date.

    

    “Notes” means,
collectively, (i) Revolving Credit Notes and (ii) the Swingline Note, each as
may be amended, supplemented or modified from time to time.

    

    “Obligations” means
(a) (i) the principal of, and interest (including all interest that accrues
after the commencement of any case or proceeding by or against any Borrower or
Facility Guarantor under the Bankruptcy Code or any state or federal bankruptcy,
insolvency, receivership or similar law, whether or not allowed in such case or
proceeding) on the Revolving Credit Loans and Facility Guarantees, (ii) other
amounts owing by the Loan Parties under this Agreement or any other Loan
Document in respect of any Letter of Credit, including payments in respect of
reimbursement of disbursements, interest thereon and obligations to provide cash
collateral and (iii) all other monetary obligations, including fees, costs,
expenses and indemnities (including all fees, costs, expenses and indemnities
that accrue after the commencement of any case or proceeding by or against any
Borrower or Facility Guarantor under the Bankruptcy Code or any state or federal
bankruptcy, insolvency, receivership or similar law, whether or not allowed in
such case or proceeding), whether primary, secondary, direct, contingent, fixed
or otherwise, of the Loan Parties to the Secured Parties under this Agreement
and the other Loan Documents, (b) the due and punctual payment and performance
of all the covenants, agreements, obligations and liabilities of each Loan Party
under or pursuant to this Agreement and the other Loan Documents, and (c) the
Other Liabilities.

    

     “Other Borrower” shall
mean each Person who shall from time to time enter into a Joinder Agreement as a
“Borrower” hereunder.

    

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

    
      
         

      

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

    

    “Overadvance” means a
Revolving Credit Loan, advance, or providing of credit support (such as the
issuance of a Letter of Credit) to the Borrowers to the extent that, immediately
after the making of such loan or advance or the providing of such credit
support, Availability is less than zero.

    

    “Parent” means
Burlington Coat Factory Holdings, Inc.

    

    “Participant” shall
have the meaning provided in SECTION 9.04(e).

    

    “Participation
Register” has the meaning provided in SECTION 9.04(e).

    

    “Payment Conditions”
means, at the time of determination with respect to a specified transaction or
payment, that (a) no Specified Default then exists or would arise as a result of
the entering into such transaction or the making of such payment, (b) both
before and after giving effect to such transaction or payment, the Pro Forma
Availability Condition has been satisfied and (c) the Consolidated Fixed Charge
Coverage Ratio, calculated on a pro forma basis for the trailing twelve months
after giving effect to such transaction or payment, will be equal to or greater
than 1.1:1.0. Prior to undertaking any transaction or payment which is subject
to the Payment Conditions, the Loan Parties shall deliver to the Administrative
Agent evidence of satisfaction of the conditions contained in clauses
(b)  and (c) above on a basis reasonably satisfactory to the
Administrative Agent.

    

    “Payment Intangibles”
has the meaning assigned to such term in the Security Agreement.

    

    “PBGC” means the
Pension Benefit Guaranty Corporation referred to and defined in ERISA and any
successor entity performing similar functions.

    

     “Permitted
Acquisition” means an Acquisition in which each of the following
conditions are satisfied:

    

    (a)     
      No Default or Event of Default then exists
or would arise from the consummation of such Acquisition;

    

    (b)     
      Such Acquisition shall have been approved by
the Board of Directors of the Person (or similar governing body if such Person
is not a corporation) which is the subject of such Acquisition and such Person
shall not have announced that it will oppose such Acquisition or shall not have
commenced any action which alleges that such Acquisition will violate Applicable
Law;

    
      
         

      

      
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    (c)   
        The Lead Borrower shall have
furnished the Administrative Agent  with ten (10) days’ prior notice
of such intended Acquisition and shall have furnished the Administrative Agent
with (i) a current draft of the acquisition agreement and other acquisition
documents relating to the  Acquisition and (ii) to the extent the
purchase price relating to the Acquisition is in excess of $100,000,000
(excluding such portion of the  purchase price consisting of Capital
Stock of a Loan Party, Non-Cash Pay Debt or contingent Earn Out
Obligations),  a summary of any due diligence undertaken by the
Borrowers in connection with such Acquisition, appropriate financial statements
of the Person which is the subject of such Acquisition, pro forma projected
financial statements for the twelve (12) month period following such Acquisition
after giving effect to such Acquisition (including balance sheets, cash flows
and income statements by month for the acquired Person, individually, and on a
Consolidated basis with all Loan Parties) and such other information readily
available to the Loan Parties as the Administrative Agent shall reasonably
request;

    

    (d)   
        To the extent the purchase price
relating to the acquisition is in excess of $100,000,000 (excluding such portion
of the purchase price consisting of Capital Stock of a Loan Party, Non-Cash Pay
Debt, or under contingent Earn Out Obligations), either (i) the legal structure
of the Acquisition shall be acceptable to the Administrative Agent in its
reasonable discretion, or (ii) the Loan Parties shall have provided the
Administrative Agent with a solvency opinion from an unaffiliated third party
valuation firm reasonably satisfactory to the Administrative Agent;

    

    (e)     
      If the Acquisition is an Acquisition of
Capital Stock, (i) a Loan Party shall acquire and own, directly or indirectly, a
majority of the Capital Stock in the Person being acquired and (ii) shall
Control a majority of any voting interests or otherwise Control the governance
of the Person being acquired;

    

    (f)     
       Any material assets acquired shall be
utilized in, and if the Acquisition involves a merger, consolidation or stock
acquisition, the Person which is the subject of such Acquisition shall be
engaged in, a business otherwise permitted to be engaged in by a Borrower under
this Agreement;

    

    (g)    
       If the Person which is the subject of
such Acquisition will be maintained as a Subsidiary of a Loan Party, or if the
assets acquired in an acquisition will be transferred to a Subsidiary which is
not then a Loan Party, such Subsidiary shall have been joined as a “Loan Party”
hereunder, to the extent required by SECTION 5.12, and the Collateral Agent
shall have received a first priority security and/or mortgage interest (subject
only to Permitted Encumbrances (x) having priority by operation of Applicable
Law on all Revolver Priority Collateral, or (y) in favor of the agent under the
Term Loan Financing on any Term Loan Priority Collateral), in order to secure
the Obligations; and

    

    (h)    
       The Borrowers shall have satisfied the
Payment Conditions (provided that, for
the purposes of this clause (h), the Fixed Charge Coverage Ratio requirement set
forth in the definition of “Payment Conditions” shall be 1.0:1.0).

    

    “Permitted
Disposition” means any of the following:

    
      
         

      

      
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    (a)    
       licenses of Intellectual Property of a
Loan Party or any of its Subsidiaries entered into in the ordinary course of
business;

    

    (b)     
      licenses for the conduct of licensed
departments within the Loan Parties’ Stores in the ordinary course of
business;

    

    (c)     
      as long as no Specified Default hereof then
exists or would arise therefrom, bulk sales or other dispositions of the
Borrowers’ Inventory not in the ordinary course of business in connection with
Store closings, at arm’s length, provided that (i)
such Store closures and related Inventory dispositions shall not exceed, in any
Fiscal Year of the Parent and its Subsidiaries, 10% of the number of the Loan
Parties’ Stores as of the beginning of such Fiscal Year (net of Store
relocations (i) occurring substantially contemporaneously, but in no event later
than 10 Business Days after the related Store closure date, or (ii) wherein a
binding lease has been entered into prior to the related Store closure date) as
set forth in the Compliance Certificate delivered pursuant to SECTION 5.01(d),
and (ii) as of any date after the Effective Date, the aggregate number of such
Store closures since the Effective Date shall not exceed, when taken together
with (but without duplication of) any Stores disposed of or leased pursuant to
clauses (g) and (o)(i) of this definition, 25% of the greater of (x) the number
of the Loan Parties’ Stores in existence as of the Effective Date or (y) the
number of the Loan Parties’ Stores as of the first day of any Fiscal Year
beginning after the Effective Date (net of Store relocations (i) occurring
substantially contemporaneously, but in no event later than 10 Business Days
after the related Store closure date or (ii) wherein a binding lease has been
entered into prior to the related Store closure date) as set forth in the
Compliance Certificate delivered pursuant to SECTION 5.01(d), provided that all
sales of Inventory in connection with Store closings in a transaction or series
of related transactions which in the aggregate involve Inventory having a value
greater than $10,000,000 at Cost shall be in accordance with liquidation
agreements and with professional liquidators reasonably acceptable to the
Agents; provided
further that all Net Proceeds received in connection therewith are
applied to the Obligations, if then required in accordance with SECTION 2.17 or
SECTION 2.18 hereof, and further provided that
notwithstanding the existence of a breach of the provisions of SECTION 6.10
hereof, in the event that all other conditions set forth in this clause (c) have
been satisfied, such bulk sales or dispositions may be undertaken in accordance
with this clause (c) if, as a result thereof, Excess Availability would be
greater than existed prior to such disposition;

    

    (d)    
       without duplication of the provisions
of clause (c) of this definition, terminations of Leases in the ordinary course
of business;

    

    (e)    
       Dispositions of assets (other than
Real Estate and other than assets included in the Borrowing Base), including
abandonment of or failure to maintain Intellectual Property, in the ordinary
course of business that are worn, damaged, obsolete, uneconomical or, in the
judgment of a Loan Party, no longer used or useful or necessary in, or material
to, its business or that of any Subsidiary;

    

    (f)      
      Sales, transfers and dispositions among the
Loan Parties, so long as the Collateral Agent has a perfected first priority
lien on the property so sold, transferred to disposed of (subject only to
Permitted Encumbrances having priority pursuant to Applicable Law) after giving
effect to such exchange, transfer or swap;

    
      
         

      

      
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    (g)     
      Sales and transfers (including
sale-leaseback transactions) of Real Estate of any Loan Party (i) to the extent
permitted by the Term Loan Agreement, and (ii) if the Term Loan Financing
Facility has been repaid in full, as long as (A) no Specified Default then
exists or would arise therefrom, and (B) such sale or transfer is made for fair
market value and (1) if the sale is made to a Person which is not an Affiliate,
the consideration received for such sale or transfer is at least 85% cash or (2)
if the sale or transfer is to an Affiliate, the entire consideration for such
sale or transfer is paid in cash, provided that in the
case of any sale-leaseback transaction permitted under this clause (g), the
Collateral Agent shall have received from such each purchaser or transferee a
Collateral Access Agreement reasonably satisfactory to the Collateral Agent),
provided
further that the aggregate amount of all Stores disposed of pursuant to this
clause (g), when taken together with (but without duplication of) any Stores
closed or leased pursuant to clauses (c) and (o)(i) of this definition shall not
exceed 25% of the greater of (x) the number of the Loan Parties’ Stores in
existence as of the Effective Date or (y) the number of the Loan Parties’ Stores
as of the first day of any Fiscal Year beginning after the Effective Date (net
of Store relocations (i) occurring substantially contemporaneously, but in no
event later than 10 Business Days after the related Store closure date, or (ii)
wherein a binding lease has been entered into prior to the related Store closure
date) as set forth in the Compliance Certificate delivered pursuant to SECTION
5.01(d);

    

    (h)    
       sales, discounting or forgiveness of
Accounts in the ordinary course of business or in connection with the collection
or compromise thereof;

    

    (i)             leases,
subleases, licenses and sublicenses of real or personal property (other than
Intellectual Property) entered into by Loan Parties and their Subsidiaries in
the ordinary course of business at arm’s length and on market
terms;

    

    (j)     
       sales of non-core assets acquired in
connection with Permitted Acquisitions and sales of Real Estate acquired in a
Permitted Acquisition which, within thirty (30) days of the date of acquisition,
are designated in writing to the Administrative Agent as being held for sale and
not for the continued operation of a Store;

    

    (k)     
      as long as no Event of Default would arise
therefrom, sales or other dispositions of Permitted Investments described in
clauses (a) through and including (d) of the definition thereof;

    

    (l)        
    any disposition of Real Estate to a Governmental
Authority as a result of a condemnation of such Real Estate;

    

    (m)   
       the making of Permitted Investments
and payments permitted under SECTION 6.06;

    

    (n)     
      sales, transfers and dispositions as set
forth on Schedule
6.05;

    
      
         

      

      
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    (o)   
        (i) leasing of Real Estate
(other than any subleases described in subclause (ii) of this clause (o)) no
longer used or useful in the business of the Loan Parties to the extent not
otherwise prohibited hereunder; provided that the
aggregate amount of all Stores leased pursuant to this clause (o)(i), when taken
together with (but without duplication of) any Stores closed or disposed of
pursuant to clauses (c) and (g) of this definition, shall not exceed 25% of the
greater of (x) the number of the Loan Parties’ Stores in existence as of the
Effective Date or (y) the number of the Loan Parties’ Stores as of the first day
of any Fiscal Year beginning after the Effective Date (net
of Store relocations (i) occurring substantially contemporaneously, but in no
event later than 10 Business Days after the related Store closure date, or (ii)
wherein a binding lease has been entered into prior to the related Store closure
date) as set forth in the Compliance Certificate delivered pursuant to SECTION
5.01(d) and (ii) subleasing of partial interests in Real Estate (a portion of
which shall continue to be used in the business of the Borrowers or any of their
Subsidiaries) in the ordinary course of business and which does not materially
interfere with the business of the Borrowers and their
Subsidiaries;

    

    (p)     
      forgiveness of Permitted Investments
described in clause (g)(ii) of the definition thereof as long as such Investment
does not constitute proceeds of Collateral previously included in the Borrowing
Base;

    

    (q)     
      as long as no Event of Default exists or
would arise as a result of the transaction, sales of a Subsidiary or any
business segment which is a Non-Core Business Segment, or any portion thereof
(i) to a Person other than a Loan Party or a Subsidiary or Affiliate of a Loan
Party, for fair market value and so long as the consideration received for such
sale or transfer is at least 85% cash, or (ii) to a Subsidiary or Affiliate of a
Loan Party, if the Non-Core Disposition Payment Conditions are satisfied and the
entire consideration received for such sale or transfer is paid in cash, provided that, in
each case, such sale shall be in an amount at least equal to the greater of the
amounts advanced or available to be advanced against the assets included in the
sale under the Borrowing Base, and further provided that all Net
Proceeds, if any, received in connection with any such sales are applied to the
Obligations if then required in accordance with SECTION 2.17 or SECTION 2.18
hereof;

    

    (r)       
     exchanges or swaps, including, but not limited to,
transactions covered by Section 1031 of the Code, of Leases and other Real
Estate of the Loan Parties, so long as such exchange or swap is made for fair
market value and on an arm’s length basis, provided that upon
the completion of any such exchange or swap (x) the Collateral Agent has a
perfected Lien having the same priority as any Lien held on the Leases or Real
Estate so exchanged or swapped and (y) all Net Proceeds, if any, received in
connection with any such exchange or swap are applied to the Obligations if then
required in accordance with SECTIONS 2.17 or 2.18 hereof; and

    

    (s)     
      other dispositions of assets (other than
Real Estate and assets included in the Borrowing Base) in an aggregate amount
for all Loan Parties not to exceed $10,000,000 in any Fiscal Year, as long as
(A) no Event of Default then exists or would arise therefrom, and (B) such sale
or transfer is made for fair market value and (1) if the sale is made to a
Person which is not an Affiliate, the consideration received for such sale or
transfer is at least 85% cash or (2) if the sale or transfer is to an Affiliate,
the entire consideration for such sale or transfer is paid in cash, and provided that, all
Net Proceeds, if any, received in connection with any such sales are applied to
the Obligations if then required in accordance with SECTION 2.17 or SECTION 2.18
hereof.

    
      
         

      

      
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    “Permitted
Encumbrances” means:

    

    (a)     
      Liens imposed by law for Taxes that are not
required to be paid pursuant to  SECTION 5.05;

    

    (b)     
      carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, landlord’s and other like Liens imposed by
Applicable Law, (i) arising in the ordinary course of business and securing
obligations that are not overdue by more than thirty (30) days, (ii) (A) that
are being contested in good faith by appropriate proceedings, (B) as to which
the applicable Loan Party or Subsidiary has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (C) such contest
effectively suspends collection of the contested obligation and enforcement of
any Lien securing such obligation, or (iii) the existence of which would not
reasonably be expected to result in a Material Adverse Effect;

    

    (c)    
       pledges and deposits made in the
ordinary course of business in compliance with workers’ compensation,
unemployment insurance and other social security laws or
regulations;

    

    (d)    
       deposits to secure or relating to the
performance of bids, trade contracts (other than for Indebtedness), leases
(other than Capital Lease Obligations), statutory obligations, surety and appeal
bonds, performance bonds (and Liens arising in accordance with Applicable Law in
connection therewith), and other obligations of a like nature, in each case in
the ordinary course of business;

    

    (e)            judgment
Liens in respect of judgments that do not constitute an Event of Default under
SECTION 7.01(k);

    

    (f)       
     easements, covenants, conditions, restrictions,
building code laws, zoning restrictions, other land use laws, rights-of-way
,development, site plan or similar agreements and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do
not secure any monetary obligations and do not materially detract from the value
of the affected property when used in a manner consistent with current usage or
materially interfere with the ordinary conduct of business of a Loan Party as
currently conducted and such other minor title defects, or survey matters that
are disclosed by current surveys, but that, in each case,  do not
interfere with the current use of the property in any material
respect;

    

    (g)   
        any Lien on any property or
asset of any Loan Party set forth on Schedule 6.02, provided that, if
such Lien secured Indebtedness, such Lien shall secure only the Indebtedness
listed on Schedule
6.01 as of the Closing Date (and extensions, renewals and replacements
thereof permitted under SECTION 6.01);

    
      
         

      

      
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    (h)     
      Liens on fixed or capital assets acquired by
any Loan Party to secure Indebtedness permitted under clause (e) of the
definition of Permitted Indebtedness so long as (i) such Liens and the
Indebtedness secured thereby are incurred prior to or within one hundred and
eighty (180) days after such acquisition or the completion of the construction
or improvement thereof (other than refinancings thereof permitted hereunder),
(ii) the Indebtedness secured thereby does not exceed 100% of the cost of
acquisition or improvement of such fixed or capital assets, and (iii) such Liens
shall not extend to any other property or assets of the Loan
Parties;

    

    (i)       
     Liens in favor of the Collateral Agent, for its
own benefit and the benefit of the other Secured Parties;

    

    (j)      
      landlords’ and lessors’ Liens in respect of
rent not in default for more than sixty (60) days or the existence of which,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect;

    

    (k)            possessory
Liens in favor of brokers and dealers arising in connection with the acquisition
or disposition of Investments owned as of the date hereof and other Permitted
Investments, provided
that such Liens (a) attach only to such Investments or other Investments
held by such broker or dealer and (b) secure only obligations incurred in the
ordinary course and arising in connection with the acquisition or disposition of
such Investments and not any obligation in connection with margin
financing;

    

    (l)       
     Liens arising solely by virtue of any statutory or
common law provisions relating to banker’s liens, liens in favor of securities
intermediaries, rights of setoff or similar rights and remedies as to deposit
accounts or securities accounts or other funds maintained with depository
institutions or securities intermediaries;

    

    (m)   
       Liens on Real Estate or on the Capital
Stock of the Persons owning such Real Estate to finance or refinance
Indebtedness under the Term Loan Financing Facility, provided that such
Liens shall not apply to any property or assets of the Loan Parties other than
the Real Estate or Capital Stock so financed or refinanced;

    

    (n)      
     Liens attaching solely to cash earnest money
deposits in connection with any letter of intent or purchase agreement in
connection with a Permitted Acquisition;

    

    (o)      
     Liens arising from precautionary UCC filings
regarding “true” operating leases or the consignment of goods to a Loan
Party;

    

    (p)     
      voluntary Liens on Fixed Assets in existence
at the time such Fixed Assets are acquired pursuant to a Permitted Acquisition
or on Fixed Assets of a Subsidiary of a Borrower in existence at the time such
Subsidiary is acquired pursuant to a Permitted Acquisition; provided that such
Liens are not incurred in connection with or in anticipation of such Permitted
Acquisition and do not attach to any other assets of any Loan Party or any of
its Subsidiaries;

    

    (q)      
     Liens in favor of customs and revenues authorities
imposed by Applicable Law arising in the ordinary course of business in
connection with the importation of goods and securing obligations (i) that are
not overdue by more than thirty (30) days, (ii)(A) that are being contested in
good faith by appropriate proceedings, (B) as to which the applicable Loan Party
or Subsidiary has set aside on its books adequate reserves with respect thereto
in accordance with GAAP and (C) such contest effectively suspends collection of
the contested obligation and enforcement of any Lien securing such obligation,
or (iii) the existence of which would not reasonably be expected to result in a
Material Adverse Effect;

    
      
         

      

      
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    (r)    
        Liens granted by the Loan
Parties to the lenders under the Term Loan Financing Facility and any
refinancings thereof permitted hereunder;

    

    (s)      
     any interest or title of a licensor, sublicensor,
lessor or sublessor under any license or operating or true lease
agreement;

    

    (t)          
  leases or subleases granted to third Persons in the ordinary course
of business;

    

    (u)      
     licenses or sublicenses of Intellectual Property
granted in the ordinary course of business;

    

    (v)      
     the replacement, extension or renewal of any
Permitted Encumbrance; provided that such
Lien shall at no time be extended to cover any assets or property other than
such assets or property subject thereto on the Closing Date or the date such
Lien was incurred, as applicable;

    

    (w)           Liens
on insurance proceeds incurred in the ordinary course of business in connection
with the financing of insurance premiums;

    

    (x)        
    Liens on securities which are the subject of repurchase
agreements incurred in the ordinary course of business;

    

    (y)        
   Liens arising by operation of law under Article 4 of the UCC
in connection with collection of items provided for therein;

    

    (z)         
   Liens arising by operation of law under Article 2 of the UCC
in favor of a reclaiming seller of goods or buyer of goods;

    

    (aa)          Liens
on deposit accounts or securities accounts in connection with overdraft
protection and netting services;

    

    (bb)         security
given to a public or private utility or any Governmental Authority as required
in the ordinary course of business;

    

    (cc)          Liens
in the nature of the right of setoff in favor of counterparties to contractual
agreements with the Loan Parties in the ordinary course of business;
and

    

    (dd)         other
Liens not securing Indebtedness in an amount not to exceed $5,000,000 in the
aggregate at any time outstanding;

    
      
         

      

      
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    provided, however,  that,
except as provided in any one or more of clauses (a) through (dd) above, the
term “Permitted Encumbrances” shall not include any Lien securing Indebtedness
for borrowed money. The designation of a Lien as a Permitted Encumbrance shall
not limit or restrict the ability of the Agents to establish any Reserve
relating thereto.

    

    “Permitted
Indebtedness” means each of the following:

    

    (a)     
      Indebtedness created under the Loan
Documents;

    

    (b)     
      Indebtedness set forth on Schedule
6.01;

    

    (c)     
      Indebtedness of any Loan Party to any other
Loan Party;

    

    (d)      
     Guarantees by any Loan Party of Indebtedness or
other obligations arising in the ordinary course of business of any other Loan
Party to the extent such Indebtedness or other obligations are permitted
hereunder;

    

    (e)      
     (i)  Purchase money Indebtedness of any
Loan Party to finance the acquisition or improvement of any fixed or capital
assets (excluding Real Estate), 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 the
aggregate principal amount of Indebtedness permitted by this clause (e)(i)
outstanding at any time shall not exceed the greater of $60,000,000 or three
(3%) percent of the book value of the Consolidated tangible assets of the Loan
Parties determined in accordance with GAAP, and (ii) purchase money Indebtedness
of any Loan Party to finance the acquisition or improvement of any Real Estate
and any Indebtedness assumed in connection with the acquisition of any such Real
Estate or secured by a Lien on any such Real Estate prior to the acquisition
thereof (including therein any Indebtedness incurred in connection with
sale-leaseback transactions permitted under clause (k) of this definition), and
further provided
that, in each case, if requested by the Agents, the Loan Parties will use
commercially reasonable efforts to cause the holder of such Indebtedness to
enter into a Collateral Access Agreement with the Collateral Agent on terms
reasonably satisfactory to the Collateral Agent;

    

    (f)       
     Indebtedness under Hedge Agreements, other than
for speculative purposes, entered into in the ordinary course of
business;

    

    (g)       
    Contingent liabilities under surety bonds, customs and
appeal bonds, governmental contracts and leases or similar instruments incurred
in the ordinary course of business;

    

    (h)     
      Indebtedness under the Senior Notes, provided that in no
event shall the principal amount of such Indebtedness increase in excess of the
amounts outstanding as of the Effective Date (other than pursuant to clause (v)
of this definition);

    
      
         

      

      
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    (i)     
       Indebtedness under the Term Loan
Financing Facility, provided that in no
event shall the principal amount of such Indebtedness exceed $900,000,000 at any
time outstanding;

    

    (j)        
    Indebtedness with respect to the deferred purchase price
for any Permitted Acquisition, provided that such
Indebtedness does not require the payment in cash of principal (other than in
respect of working capital adjustments) prior to the Extended Term Maturity
Date, has a maturity which extends beyond the Extended Term Maturity Date, and
is subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent;

    

    (k)            Indebtedness
incurred in connection with sale-leaseback transactions permitted
hereunder;

    

    (l)       
     Subordinated Indebtedness in an amount not to
exceed $300,000,000 in the aggregate, provided that the
proceeds of such Subordinated Indebtedness are used (i) to pay closing and other
transactional costs in connection with a Permitted Acquisition, (ii) to prepay
the Term Loan Financing Facility, or (iii) to permanently reduce, retire or
refinance (to the extent permitted under clause (w) of this definition) the
Senior Notes or the Holdco Notes, and further provided
that, in each case, such Subordinated Indebtedness (a) shall not have a
maturity date or be subject to amortization, mandatory repurchase or redemption
(except pursuant to customary asset sale and change of control provisions
requiring such redemption or repurchase if and only to the extent permitted
hereunder) prior to the date that is six months after the later of the Extended
Term Maturity Date and the maturity date under the Term Loan Financing Facility,
and (b) shall not be exchangeable or convertible into Disqualified Capital Stock
or any other Indebtedness (other than any Indebtedness that is otherwise
permitted to be incurred under this Agreement at the time of such exchange or
conversion);

    

    (m)    
      Indebtedness incurred in the ordinary course
of business in connection with the financing of insurance premiums;

    

    (n)      
     Indebtedness of any Loan Party acquired pursuant
to a Permitted Acquisition (or Indebtedness assumed at the time and as a result
of a Permitted Acquisition); provided that in each
case such Indebtedness was not incurred in connection with, or in anticipation
or contemplation of, such Permitted Acquisition;

    

    (o)      
     Indebtedness relating to surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

    

    (p)     
      Unsecured Indebtedness owed to the Sponsor,
Sponsor Related Parties, and/or other stockholders of the Parent and their
respective Affiliates, provided that such
Indebtedness does not require the payment in cash of principal or interest at a
rate in excess of 10% per annum prior to the Extended Term Maturity Date, has a
maturity which extends beyond the Extended Term Maturity Date, and is
subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent;

    
      
         

      

      
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    (q)    
       Indebtedness constituting the
obligation to make customary purchase price adjustments for working capital and
indemnities in connection with Permitted Acquisitions;

    

    (r)        
    Guarantees and letters of credit and surety bonds (other
than Guarantees of, or letters of credit and surety bonds related to,
Indebtedness) issued in connection with Permitted Acquisitions and Permitted
Dispositions;

    

    (s)     
      without duplication of any other
Indebtedness, non-cash accruals of interest, accretion or amortization of
original issue discount and payment-in-kind interest with respect to
Indebtedness permitted hereunder;

    

    (t)        
    Indebtedness due to any landlord in connection with the
financing by such landlord of leasehold improvements;

    

    (u)      
     Indebtedness under the Holdco Notes, provided that in no
event shall the principal amount of such Indebtedness increase in excess of the
amounts outstanding as of the Effective Date (other than any increase in the
principal of such Holdco Notes resulting (i) from payments of interest in kind
pursuant to the Holdco Note Documents or (ii) pursuant to clause (v) of this
definition);

    

    (v)       
    without duplication of, or accumulation with, other
categories of Indebtedness permitted hereunder, other unsecured Indebtedness
(other than Subordinated Indebtedness) in an aggregate principal amount not
exceeding $150,000,000 at any time outstanding; and

    

    (w)     
     extensions, renewals and replacements of any such
Indebtedness described in clauses (b), (c), (d), (e), (f), (h), (i) (j), (k),
(l), (n), (p), (t), (u) and (v) above  provided that such Indebtedness
constitutes a Permitted Refinancing.

    

     “Permitted
Investments” means each of the following:

    

    (a)       
    direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America) or any state or state
agency thereof, in each case maturing within one (1) year from the date of
acquisition thereof;

    

    (b)     
      Investments in commercial
paper  maturing within one (1) year from the date of acquisition
thereof and having, at the date of acquisition, the highest or next highest
credit rating obtainable from S&P or from Moody’s;

    

    (c)     
      Investments in certificates of deposit,
banker’s acceptances and time deposits maturing within one (1) year from the
date of acquisition thereof which are issued or guaranteed by, or placed with,
and demand deposit and money market deposit accounts issued or offered by, any
Lender or any domestic office of any commercial bank organized under the laws of
the United States of America or any State thereof that has a combined capital
and surplus and undivided profits of not less than
$500,000,000;

    
      
         

      

      
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    (d)      
     master demand notes and fully collateralized
repurchase agreements with a term of not more than thirty (30) days for
securities described in clause (a) above (without regard to the limitation on
maturity contained in such clause) and entered into with a financial institution
satisfying the criteria described in clause (c) above or with any primary
dealer;

    

    (e)     
      shares of any money market or mutual fund
that has substantially all of its assets invested in the types of investments
referred to in clauses (a) through (d), above;

    

    (f)       
     Investments existing on the Closing Date and set
forth on Schedule
6.04;

    

    (g)     
      capital contributions or loans made by (i)
any Loan Party to any other Loan Party or (ii) as long as no Specified Default
then exists or would arise therefrom, any Loan Party to any Subsidiary or
Affiliate of any Loan Party (other than to the Sponsors, Sponsor Related Parties
or any other stockholder of the Parent) in an aggregate amount not to exceed
$25,000,000 at any time outstanding, provided that the
aggregate amount of all Investments of the type described in this clause (g)(ii)
and clause (s) of this definition may not exceed $25,000,000 in the aggregate
outstanding at any time;

    

    (h)   
        Guarantees constituting
Permitted Indebtedness;

    

    (i)      
      Investments received in connection with the
bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with, customers and suppliers, in each case in the ordinary course of
business;

    

    (j)      
      loans or advances to employees for the
purpose of travel, entertainment or relocation in the ordinary course of
business, provided
that all such loans and advances to employees shall not exceed $5,000,000
in the aggregate at any time outstanding, and determined without regard to any
write-downs or write-offs thereof;

    

    (k)            Investments
received from purchasers of assets pursuant to dispositions permitted pursuant
to SECTION 6.05;

    

    (l)        
    Permitted Acquisitions and existing Investments of the
Persons acquired in connection with Permitted Acquisitions so long as such
Investment was not made in contemplation of such Permitted
Acquisition;

    

    (m)           Hedging
Agreements entered into in the ordinary course of business for non-speculative
purposes;

    

    (n)     
      to the extent permitted by Applicable Law,
notes from officers and employees in exchange for equity interests of the Parent
purchased by such officers or employees pursuant to a stock ownership or
purchase plan or compensation plan;

    

    (o)      
     earnest money required in connection with
Permitted Acquisitions;

    

    (p)      
     subject to SECTION 2.18, Investments in deposit
accounts opened in the ordinary course of business;

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    (q)    
       Investments in new Subsidiaries
subject to the provisions of SECTION 5.12;

    

    (r)      
      Capital Expenditures;

    

    (s)            Guarantees
of Indebtedness under clause (g)(ii) above of Subsidiaries that are not Loan
Parties not in excess of $25,000,000 in the aggregate at any time outstanding,
provided that
the aggregate amount of all Investments of the type described in this clause (s)
and clause (g)(ii) of this definition may not exceed $25,000,000 in the
aggregate outstanding at any time; and

    

    (t)        
    without duplication of, or accumulation with, other
categories of Investments permitted hereunder, other Investments in an amount
not to exceed $50,000,000 in the aggregate outstanding at any time, provided that the
aggregate outstanding amount of Investments permitted pursuant to this clause
(t) shall not be increased by more than $30,000,000 in any Fiscal
Year;

    

    provided, however, that for
purposes of calculation,  the amount of any Investment outstanding at
any time shall be the aggregate cash Investment less all cash returns, cash
dividends and cash distributions (or the fair market value of any non-cash
returns, dividends and distributions) received by such Person and less all liabilities
expressly assumed by another Person in connection with the sale of such
Investment.

    

    “Permitted
Overadvance” means an Overadvance made by the Administrative Agent, in
its reasonable discretion, which:

    

    (a)     
      is made to maintain, protect or preserve the
Collateral and/or the Secured Parties’ rights under the Loan Documents or which
is otherwise for the benefit of the Secured Parties; or

    

    (b)  
         is made to enhance the
likelihood of, or maximize the amount of, repayment of any Obligation;
or

    

    (c)      
     is made to pay any other amount chargeable to any
Borrower hereunder; and

    

    (d)     
      together with all other Permitted
Overadvances then outstanding, shall not (i) exceed five percent (5%) of the
Borrowing Base at the time, in the aggregate outstanding at any time or (ii)
unless a Liquidation is taking place, remain outstanding for more than
forty-five (45) consecutive Business Days;

    

    provided however, that the
foregoing shall not (i) modify or abrogate any of the provisions of SECTION
2.13(g) regarding any Lender’s obligations with respect to Letter of Credit
Disbursements or SECTION 2.22 regarding any Lender’s reimbursement obligations
with respect to Swingline Loans, or (ii) result in any claim or liability
against the Administrative Agent (regardless of the amount of any Overadvance)
for “inadvertent Overadvances” (i.e. where an Overadvance results from changed
circumstances beyond the control of the Administrative Agent (such as a
reduction in the collateral value)), and further provided that
in no event shall the Administrative Agent make an Overadvance, if after giving
effect thereto, the principal amount of the Revolving Credit Extensions would
exceed the aggregate of the Commitments (as in effect prior to any termination
of the Commitments pursuant to SECTION 7.01 hereof).

    
      
         

      

      
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    “Permitted
Refinancing” means any Indebtedness that replaces or refinances any other
Permitted Indebtedness, as long as, after giving effect thereto (i) the
principal amount of the Indebtedness outstanding at such time is not increased
(except by the amount of any accrued interest, reasonable closing costs,
expenses, fees, and premium paid in connection with such extension, renewal or
replacement), (ii) the result of such refinancing of or replacement shall not be
an earlier maturity date or decreased weighted average life, (iii) the holders
of such refinancing Indebtedness are not afforded covenants, defaults, rights or
remedies, taken as a whole, which are materially more burdensome to the obligor
or obligors than those contained in the Indebtedness being extended, renewed or
replaced, (iv) the obligor or obligors under any such refinancing Indebtedness
and the collateral, if applicable, granted pursuant to any such refinancing
Indebtedness are the same (or in the case of collateral, the same or less than)
as the obligor(s) and collateral under the Indebtedness being extended, renewed
or replaced, (v) the subordination, to the extent applicable, and other material
provisions of the refinancing Indebtedness are no less favorable to the Lenders
than those terms of the Indebtedness being refinanced, and (vi) the refinancing
Indebtedness is not exchangeable or convertible into any other Indebtedness
which does not comply with clauses (i) through (v) above.

    

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

    

    “Plan” means 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 Lead 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.

    

    “Pledge Agreement”
means the Pledge Agreement dated as of the Closing Date among the Loan Parties
party thereto and the Collateral Agent for its own benefit and the benefit of
the other Secured Parties, as amended and in effect from time to
time.

    

    “PPSA” means the Personal Property Security
Act of Ontario (or any successor statute) or similar legislation of any
other Canadian jurisdiction, including, without limitation, the Civil Code of
Quebec, the laws of which are required by such legislation to be applied in
connection with the issue, perfection, enforcement, opposability, validity or
effect of security interests.

    

    “Prepayment Event”
means the occurrence of any of the following events:

    

    (a)      
     Any sale, transfer or other disposition (including
pursuant to a sale and leaseback transaction) of any Collateral (other than the
sale of Collateral in the ordinary course of business and the transfer of any
Collateral among Stores and other locations of the Loan Parties), unless, as
long as no Cash Dominion Event has occurred and is continuing, (i) the proceeds
therefrom are utilized for purposes of replacing or repairing the assets in
respect of which such proceeds were received or reinvesting in assets used in
any of the Loan Parties’ business within twelve (12) months of the receipt of
such proceeds (or, in the case of any disposition of Real Estate the proceeds of
which will be used to reinvest in Real Estate, within eighteen (18) months of
receipt of such proceeds if a letter of intent or other binding commitment to
reinvest such proceeds is entered into within twelve (12) months of receipt of
such proceeds) and (ii) the aggregate amount at any time of such reinvested
proceeds (A) in the case of any such sale, transfer or other disposition of any
such Collateral pursuant to a sale and leaseback transaction, is equal to or
less than $10,000,000 and (B) in the case of any such sale, transfer or other
disposition of such Collateral (other than pursuant to a sale and leaseback
transaction and other than a disposition of Real Estate the proceeds of which
will be used to reinvest in Real Estate) is equal to or less than $10,000,000;
or

    
      
         

      

      
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    (b)     
      Any casualty or other insured damage to, or
any taking under power of eminent domain or by condemnation, expropriation or
similar proceeding of, any Collateral of a Loan Party, unless (i) the proceeds
therefrom are required to be paid to the holder of a Lien on such property or
asset having priority over the Lien of the Collateral Agent, or (ii) as long as
no Cash Dominion Event has occurred and is continuing, the proceeds therefrom
are utilized for purposes of replacing or repairing the assets in respect of
which such proceeds, awards or payments were received or reinvesting in assets
used in any of the Loan Parties’ business within twelve (12) months of the
receipt of such proceeds.

    

     “Prime Rate” means, as
to any Borrowing, for any day, the higher of: (a) the variable annual rate of
interest then most recently announced by Bank of America, N.A. at its head
office in Charlotte, North Carolina as its “Prime Rate”; and (b) the Federal
Funds Effective Rate in effect on such day plus 1⁄2 of 1% (0.50%)
per annum.  The Prime Rate is a reference rate and does not
necessarily represent the lowest or best rate being charged to any
customer.  The Prime Rate is a rate set by Bank of America, N.A. based
upon various factors including Bank of America’s costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate.  If for any reason the Administrative Agent shall have
determined (which determination shall be conclusive absent manifest error) that
it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability or failure of the Administrative Agent to obtain
sufficient quotations thereof in accordance with the terms hereof, the Prime
Rate shall be determined without regard to clause (b) of the first sentence of
this definition, until the circumstances giving rise to such inability no longer
exist. Any change in the Prime Rate due to a change in Bank of America’s Prime
Rate or the Federal Funds Effective Rate shall be effective on the effective
date of such change in Bank of America’s Prime Rate or the Federal Funds
Effective Rate, respectively.

    

    “Prime Rate Loan”
means any Revolving Credit Loan bearing interest at a rate determined by
reference to the Prime Rate or the Extended Term Prime Rate, as applicable, in
accordance with the provisions of Article II.

    

    “Pro Forma
Availability” shall mean, for any date of calculation, the projected
Availability at the end of each Fiscal Month during any projected twelve (12)
Fiscal Months.

    
      
         

      

      
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    “Pro Forma Availability
Condition” shall mean, for any date of calculation with respect to any
transaction or payment, the Pro Forma Availability for each of the twelve Fiscal
Months following, and after giving effect to, such transaction or payment, will
be equal to or greater than twenty (20%) percent of the lesser of (i) the then
Borrowing Base or (ii) the then Revolving Credit Ceiling.

    

     “Qualifying IPO” means
an equity issuance by the Parent or Holdings consisting of an underwritten
primary public offering (other than a public offering pursuant to a registration
statement on Form S-8) of  its common stock (i) pursuant to an
effective registration statement filed with the SEC in accordance with the
Securities Act of 1933 as amended (whether alone or in connection with a
secondary public offering) and (ii) resulting in gross proceeds to the Parent or
Holdings of at least $100,000,000.

    

     “Real Estate” means
all Leases and all land, together with the buildings, structures, parking areas,
fixtures and other improvements thereon, now or hereafter owned by any Loan
Party, including all easements, rights-of-way, and similar rights relating
thereto and all leases, tenancies, and occupancies thereof.

    

    “Register” has the
meaning provided in SECTION 9.04(c).

    

    “Regulation U” means
Regulation U of the Board as from time to time in effect and all official
rulings and interpretations thereunder or thereof.

    

    “Regulation X” means
Regulation X of the Board as from time to time in effect and all official
rulings and interpretations thereunder or thereof.

    

    “Related Parties”
means, 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” has the
meaning provided in Section 101(22) of CERCLA.

    

    “Reports” has the
meaning provided in SECTION 8.13.

    

    “Required Lenders”
means, at any time, Lenders (other than Delinquent Lenders) having Commitments
aggregating more than 50% of the Total Commitments, or if the Commitments have
been terminated, Lenders (other than Delinquent Lenders) whose percentage of the
outstanding Credit Extensions (calculated assuming settlement and repayment of
all Swingline Loans by the Lenders) aggregate more than 50% of all such Credit
Extensions.

    

    “Reserves” means all
(if any) Inventory Reserves (including, without limitation, Shrink Reserves),
and Availability Reserves (including, without limitation, Cash Management
Reserves, Bank Product Reserves, the Term Loan Maturity Reserve and reserves for
Customer Credit Liability).

    

    “Responsible Officer”
of any Person shall mean any executive officer or financial officer of such
Person and any other officer or similar official thereof with responsibility for
the administration of the obligations of such Person in respect of this
Agreement.

    
      
         

      

      
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    “Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any class of Capital Stock of a Person, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Capital Stock of a Person or any
option, warrant or other right to acquire any Capital Stock of a Person or on
account of any return of capital to the Person’s stockholders, partners or
members, provided
that “Restricted Payments” shall not include any dividends payable solely
in Capital Stock of a Loan Party.

    

    “Revolver Priority
Collateral” has the meaning set forth in the Intercreditor
Agreement.

    

     “Revolving Credit
Ceiling” means $721,000,000, as such amount may be increased or reduced
in accordance with the terms of this Agreement.

    

    “Revolving Credit
Loans” means all loans at any time made by any Lender pursuant to Article
II and, to the extent applicable, shall include Swingline Loans made by the
Swingline Lender pursuant to SECTION 2.06.

    

    “Revolving Credit
Notes” means the promissory notes of the Borrowers substantially in the
form of Exhibit
D, each payable to the order of a Lender, evidencing the Revolving Credit
Loans made to the Borrowers.

    

    “S&P” means
Standard & Poor’s Ratings Services, advisor of The McGraw-Hill Companies,
Inc. and any successor thereto.

    

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

    

    “Secured Party” means
(a) each Credit Party, (b) any Lender or any Affiliate of a Lender providing
Cash Management Services or entering into or furnishing any Bank Products to or
with any Loan Party, (c) the beneficiaries of each indemnification obligation
undertaken by any Loan Party under any Loan Document, and (d) the successors
and, subject to any limitations contained in this Agreement, assigns of each of
the foregoing.

    

     “Security Agreement”
means the Security Agreement dated as of the Closing Date as amended, restated,
supplemented or otherwise modified and in effect from time to time among the
Loan Parties and the Collateral Agent for its benefit and for the benefit of the
other Secured Parties.

    

    “Security Documents”
means the Security Agreement, the Mortgages, the Intellectual Property Security
Agreement, the Pledge Agreement, the Facility Guarantee, and each other security
agreement or other instrument or document executed and delivered pursuant to
this Agreement or any other Loan Document that creates a Lien in favor of the
Collateral Agent to secure any of the Obligations.

    

    “Senior Managing
Agents” has the meaning provided in the preamble to this
Agreement.

    
      
         

      

      
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    “Senior Notes” means
the 11-1/8% Senior Notes Due 2014 in the original amount of $305,000,000 issued
by the Lead Borrower under an Indenture dated as of April 13, 2006 or any
supplemental indenture with Wilmington Trust FSB, as successor Trustee and any
securities issued in lieu or in replacement thereof.

    

    “Senior Note
Documents” means the documents, instruments and other agreements now or
hereafter executed and delivered in connection with the Senior Notes, including,
without limitation, the Indenture dated as of April 13, 2006 or any supplemental
indenture with Wilmington Trust FSB, as successor Trustee.

    

    “Settlement Date” has
the meaning provided in SECTION 2.22(b).

    

     “Shrink” means
Inventory identified by the Borrowers as lost, misplaced, or
stolen.

    

     “Software” has the
meaning assigned to such term in the Security Agreement.

    

    “Solvent” means, with
respect to any Person on a particular date, that on such date (a) at fair
valuation on a going concern basis, all of the properties and assets of such
Person are greater than the sum of the debts, including contingent liabilities,
of such Person, (b) the present fair saleable value of the properties and assets
of such Person on a going concern basis is not less than the amount that would
be required to pay the probable liability of such Person on its debts as they
become absolute and matured, (c) such Person is able to realize upon its
properties and assets and generally pay its debts and other liabilities,
contingent obligations and other commitments as they mature in the normal course
of business, (d) such Person does not intend to, and does not believe that it
will, incur debts beyond such Person’s ability to generally pay as such debts
mature, and (e) such Person is not engaged in a business or a transaction, and
is not about to engage in a business or transaction, for which such Person’s
properties and assets would constitute unreasonably small capital after giving
due consideration to the prevailing practices in the industry in which such
Person is engaged.

    

    “Specified Default”
means the occurrence of any Event of Default specified in SECTION 7.01(a),
SECTION 7.01(b), SECTION 7.01(c) (but only with respect to any representation
made or deemed to be made by or on behalf of any Loan Party in any Borrowing
Base Certificate or any certificate of a Financial Officer accompanying any
financial statement), SECTION 7.01(d) (but only with respect to SECTION 2.18
(but only with respect to SECTION 2.18(d), SECTION 2.18(e), SECTION 2.18(f), and
the second sentence of SECTION 2.18(h)), SECTION 5.01(f), SECTION 5.07, SECTION
5.08(b), SECTION 5.11 and SECTION 6.10), SECTION 7.01(h), or SECTION
7.01(i).

    

    “Sponsors” means
collectively, Bain Capital Fund VIII, L.P. and its respective
Affiliates.

    

    “Sponsor Group” means
the Sponsors and the Sponsor Related Parties.

    

    “Sponsor Lender
Limitations” means, with respect to the Sponsor Group or any of their
respective Affiliates which becomes an assignee of any portion of the
Obligations, such Person(s) shall have executed a waiver in form and substance
reasonably satisfactory to the Administrative Agent pursuant to which such
Person(s) acknowledges and agrees that (a) Lenders other than the Sponsor Group
or any of their respective Affiliates shall be permitted to vote the outstanding
Credit Extensions held by the Sponsor Group and/or any of their respective
Affiliates on a pro rata basis, based on their Commitment Percentage of the then
outstanding Credit Extensions, (b) if the Lead Borrower requests that this
Agreement or any other Loan Document be modified, amended or waived in a manner
which would require the consent of the Lenders, no such consent shall be deemed
given unless such consent is obtained without giving effect to the outstanding
Credit Extensions held by the Sponsor Group and/or any of their respective
Affiliates, and (c) it shall have no right (i) to require the Agents or any
Lender to undertake any action (or refrain from taking any action) with respect
to any Loan Document, (ii) to attend any meeting with the Agents or any Lender
or receive any information from the Agents or any Lender, (iii) to the benefit
of any advice provided by counsel to the Agents or the other Lenders or to
challenge the attorney-client privilege of the communications between the
Agents, such other Lenders and such counsel, or (iv) to make or bring any claim,
in its capacity as Lender, against any Agent with respect to the fiduciary
duties of such Agent or Lender and the other duties and obligations of the
Agents hereunder; except, that, no amendment, modification or waiver to any Loan
Document shall, without the consent of the Sponsor Group or any of their
respective Affiliates, deprive any such Person, as assignee, of its pro rata
share of any payments to which the Lenders as a group are otherwise entitled
hereunder.

    
      
         

      

      
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    “Sponsor Related
Parties” means, with respect to any Person, (a) any Controlling
stockholder or partner (including in the case of an individual Person who
possesses Control, the spouse or immediate family member of such Person provided
such Person retains Control of the voting rights, by stockholders agreement,
trust agreement or otherwise of the Capital Stock owned by such spouse or
immediate family member) or 80% (or more) owned Subsidiary,  or (b)
any trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding a 51% or more
Controlling interest of which consist of such Person and/or such Persons
referred to in the immediately preceding clause (a) or (c) the limited partners
of the Sponsors.

    

     “Standby Letter of
Credit” means any Letter of Credit other than a Commercial Letter of
Credit.

    

    “Stated Amount” means
at any time the maximum amount for which a Letter of Credit may be
honored.

    

    “Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the aggregate
of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to
which the Administrative Agent is subject with respect to the Adjusted LIBO
Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D.  LIBO 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 such Regulation D or
any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

    
      
         

      

      
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    “Store” means any
retail store (which includes any real property, fixtures, equipment, inventory
and other property related thereto) operated, or to be operated, by any Loan
Party.

    

    “Subordinated
Indebtedness” means Indebtedness which is expressly subordinated in right
of payment to the prior payment in full of the Obligations on terms reasonably
acceptable to the Agents.

    

    “Subsidiary” means
with respect to any Person (the “parent”) at any date,
any corporation, limited liability company, partnership, association or other
entity (a) of which Capital Stock representing 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 (b)
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.

    

    “Supporting
Obligations” has the meaning assigned to such term in the Security
Agreement.

    

    “Swingline Lender”
means Bank of America, N.A., in its capacity as lender of Swingline Loans
hereunder to the Borrowers hereunder.

    

    “Swingline Loan” means
a Revolving Credit Loan made by the Swingline Lender to the Borrowers pursuant
to SECTION 2.06.

    

    “Swingline Loan
Ceiling” means $60,000,000, as such amount may be increased or reduced in
accordance with the provisions of this Agreement.

    

    “Swingline Note” means
the promissory note of the Borrowers substantially in the form of Exhibit E, payable to
the order of the Swingline Lender, evidencing the Swingline Loans made by the
Swingline Lender to the Borrowers.

    

     “Synthetic Lease”
means any lease or other agreement for the use or possession of property
creating obligations which do not appear as Indebtedness on the balance sheet of
the lessee thereunder but which, upon the insolvency or bankruptcy of such
Person, may be characterized as Indebtedness of such lessee without regard to
the accounting treatment.

    

    “Taxes” means any and
all current or future taxes, levies, imposts, duties (including stamp duties),
deductions, charges (including ad valorem charges) or withholdings imposed by
any Governmental Authority, and any and all interest and penalties related
thereto.

    

    “Term Loan Agreement”
means that certain Credit Agreement dated April 13, 2006 by and among Burlington
Coat Factory Warehouse Corporation, as Borrower, Bear Stearns Corporate Lending
Inc., as administrative agent and collateral agent, and the lenders identified
therein.

    

    “Term Loan Financing
Facility” means the term loan facility established pursuant to the Term
Loan Agreement in a principal amount not to exceed $900,000,000, as amended,
modified, supplemented, refinanced or replaced from time to time to the extent
permitted pursuant to SECTION 6.09 hereof, provided that any
such refinancing shall not increase the outstanding principal amount thereof in
excess of the amounts permitted under the Term Loan Agreement as in effect on
the Effective Date or result in an earlier maturity date or decreased weighted
average life thereof, is subject to the terms of the Intercreditor Agreement and
otherwise satisfies the requirements of a Permitted Refinancing
hereunder.

    
      
         

      

      
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    “Term Loan Maturity
Reserve” means an Availability Reserve in an amount not to exceed the
outstanding balance of the Term Loan Financing Facility maturing (A) prior to
the Extended Term Maturity Date and (B) within forty-five (45) days of any date
of determination of the Term Loan Maturity Reserve; provided that such
Term Loan Maturity Reserve shall be eliminated when the Term Loan Financing
Facility is repaid, refinanced or extended as provided herein; and provided further that
no Term Loan Maturity Reserve shall be implemented in the event that the
outstanding balance of the Term Loan Financing Facility is not greater than
$75,000,000 on the date of determination of such Term Loan Maturity Reserve; and
provided
further that no Term Loan Maturity Reserve shall be implemented prior to
that date that is forty-five (45) days prior to the maturity of the obligations
under the Term Loan Agreement.

    

    “Term Loan Priority
Collateral” has the meaning set forth in the Intercreditor
Agreement.

    

    “Term Payment Availability
Conditions” means, as of any date of calculation with respect to any
transaction or payment, the projected average Excess Availability for each
Fiscal Month during the projected six (6) Fiscal Month period following, and
after giving effect to such transaction or payment, will be equal to or greater
than fifteen (15%) percent of the then Borrowing Base.

    

    “Total Commitments”
means the aggregate of the Commitments of all Lenders.  On the
Effective Date, the Total Commitments are $721,000,000.

    

    “Tranche A-1 Commitment
Increase” has the meaning set forth in SECTION 2.02(g).

    

     “Type”, when used in
reference to any Revolving Credit Loan or Borrowing, refers to whether the rate
of interest on such Revolving Credit Loan, or on the Revolving Credit Loans
comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate,
the Prime Rate or the Extended Term Prime Rate, as applicable.

    

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

    

    “Unanimous Consent”
means the consent of Lenders (other than Delinquent Lenders) holding 100% of the
Commitments (other than Commitments held by a Delinquent
Lender).

    
      
         

      

      
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    “Unused Commitment”
shall mean, on any day, (a) the then Total Commitments, minus (b) the sum of
(i) the principal amount of Revolving Credit Loans of the Borrowers then
outstanding, and (ii) the then Letter of Credit Outstandings.

    

    “Unused Fee” has the
meaning provided in SECTION 2.19(b).

    

    “Withdrawal Liability”
means 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 1 of
Subtitle E of Title IV of ERISA.

    

    SECTION
1.02        Terms
Generally.

    

    With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

    

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

    

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

    
      
         

      

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

    

    (d)    
       This Agreement and the other Loan
Documents are the result of negotiation among, and have been reviewed by counsel
to, among others, the Loan Parties and the Administrative Agent and are the
product of discussions and negotiations among all
parties.  Accordingly, this Agreement and the other Loan Documents are
not intended to be construed against the Administrative Agent or any of the
Lenders merely on account of the Administrative Agent’s or any Lender’s
involvement in the preparation of such documents.

    

    SECTION
1.03        Accounting
Terms.

    

    (a)        
   Generally.  All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent
basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the audited financial statements described in SECTION 3.04,
except as otherwise specifically prescribed herein and except that the Lead
Borrower and its Subsidiaries may change from the retail inventory method to the
specific identification method for inventory costing, provided that the
Lead Borrower shall give the Administrative Agent reasonable prior notice of
such change and the Administrative Agent shall have the ability, in addition to
the appraisals and commercial finance examinations permitted pursuant to SECTION
5.08 hereof, to obtain, at the Loan Parties’ expense, an updated appraisal and
commercial finance examination in connection with such change, provided further
that, in the event that the Administrative Agent has previously scheduled
an appraisal and commercial finance examination to be performed within three (3)
months after the effective date of such change, the Administrative Agent shall
not undergo such additional updated appraisal and commercial finance examination
as set forth above.  All amounts used for purposes of financial
calculations required to be made shall be without duplication.

    

    (b)      
     Issues Related to
GAAP.  If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Lead Borrower or the Required Lenders shall so request,
the Administrative Agent, the Lenders and the Lead Borrower shall negotiate in
good faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of the Required
Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Lead Borrower
shall provide to the Administrative Agent and the Lenders as reasonably
requested hereunder a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in
GAAP.  In addition, the definitions set forth in the Loan Documents
and any financial calculations required by the Loan Documents shall be computed
to exclude (a) the effect of purchase accounting adjustments, including the
effect of non-cash items resulting from any amortization, write-up, write-down
or write-off of any assets or deferred charges (including, without limitation,
intangible assets, goodwill and deferred financing costs in connection with any
Permitted Acquisition or any merger, consolidation or other similar transaction
permitted by this Agreement), (b) the application of FAS 133, FAS 150 or FAS
123r (to the extent that the pronouncements in FAS 123r result in recording an
equity award as a liability on the Consolidated balance sheet of the Parent and
its Subsidiaries in the circumstance where, but for the application of the
pronouncements, such award would have been classified as equity), (c) any
mark-to-market adjustments to any derivatives (including embedded derivatives
contained in other debt or equity instruments under FAS 133), and (d) any
non-cash compensation charges resulting from the application of FAS
123r.

    
      
         

      

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

    

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

    

    SECTION
1.06        Letter of Credit
Amounts.  Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter
of Credit, whether or not such maximum face amount is in effect at such
time.

    

    SECTION
1.07        Certifications.  All
certifications to be made hereunder by an officer or representative of a Loan
Party shall be made by such person in his or her capacity solely as an officer
or a representative of such Loan Party, on such Loan Party’s behalf and not in
such person’s individual capacity.

    

    ARTICLE
II

    

    Amount and Terms of
Credit

    

    SECTION
2.01        Commitment of the
Lenders.

    

    (a)        Each
Lender, severally and not jointly with any other Lender, agrees, upon the terms
and subject to the conditions herein set forth, to make Credit Extensions to or
for the benefit of the Borrowers, on a revolving basis, subject in each case to
the following limitations:

    

    (i)     
       The aggregate outstanding amount of
the Credit Extensions to the Borrowers shall not at any time cause Availability
to be less than zero;

    

    (ii)            Letters
of Credit shall be available from the Issuing Banks to the Borrowers, provided that the
Borrowers shall not at any time permit the aggregate Letter of Credit
Outstandings at any time to exceed the Letter of Credit
Sublimit;

    
      
         

      

      
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    (iii)     
     No Lender shall be obligated to make any Credit
Extension to the Borrowers in excess of such Lender’s Commitment;
and

    

    (iv)        
  Subject to all of the other provisions of this Agreement, Revolving
Credit Loans to the Borrowers that are repaid may be reborrowed prior to the
Extended Term Termination Date.  Notwithstanding the foregoing, no
Non-Extending Lender shall be obligated to make new Credit Extensions (other
than Permitted Overadvances until Obligations owing to the Non-Extending Lenders
have been paid in full (other than contingent indemnity obligations for then
unasserted claims)) to the Borrowers after the Existing Termination
Date.

    

    (b)        Each
Borrowing of Revolving Credit Loans to the Borrowers (other than Swingline
Loans) shall be made by the Lenders pro rata in accordance
with their respective Commitments.  The failure of any Lender to make
any Revolving Credit Loan to the Borrowers shall neither relieve any other
Lender of its obligation to fund its Revolving Credit Loan to the Borrowers in
accordance with the provisions of this Agreement nor increase the obligation of
any such other Lender.

    

    SECTION
2.02        Increase in Total
Commitments

    

    (a)        Increase on Effective
Date.  On the Effective Date, any Extending Lender who was a
Tranche A-1 Lender under, and as defined in, the Existing Credit Agreement may
increase its Commitment by the amount of its Tranche A-1 Commitment under the
Existing Credit Agreement; provided, however, that after
giving effect to all such increases in the Commitments, the Total Commitments as
of the Effective Date shall not exceed $721,000,000 (or, in the event that the
Lead Borrower requests an increase of the then outstanding Commitments as of the
Effective Date in accordance with the terms of SECTION 2.02(b), the lesser of
(x) $900,000,000 or (y) $721,000,000 plus the amount of the increase in the
Commitments pursuant to SECTION 2.02(b)).  The Administrative Agent
(in consultation with the Lead Borrower and the Arrangers) shall determine the
final allocation of the Commitments among the Lenders.

    

    (b)        Increase Prior to Existing
Maturity Date.  At any time and from time to time on or after
the Effective Date but prior to the Existing Maturity Date, so long as no
Default or Event of Default exists or would arise therefrom, the Lead Borrower
shall have the right to request an increase of the aggregate of the then
outstanding Commitments (including the Letter of Credit Sublimit) by an amount
not to exceed in the aggregate $100,000,000.  The Administrative Agent
and the Lead Borrower shall determine the effective date of such requested
increase and any such requested increase shall be first made available to all
existing Lenders on a pro rata basis.  To the extent that, on or
before the tenth day following such request for an increase hereunder, the
existing Lenders decline to increase their Commitments, or decline to increase
their Commitments to the amount requested by the Lead Borrower, or fail to
respond to such request for an increase, the Administrative Agent, in
consultation with the Lead Borrower, will use its reasonable best efforts to
arrange for other Persons to become a Lender hereunder and to issue commitments
in an amount equal to the amount of the increase in the Total Commitments
requested by the Lead Borrower and not accepted by the existing Lenders (each
such increase by either means, a “Commitment Increase,”
and each Person issuing, or Lender increasing, its Commitment, an “Additional Commitment
Lender”), provided, however,
that (i) no Lender shall be obligated to provide a Commitment Increase as a
result of any such request by the Lead Borrower, (ii) any Additional Commitment
Lender which is not an existing Lender shall be subject to the approval of the
Administrative Agent, the Issuing Banks and the Lead Borrower (which approval
shall not be unreasonably withheld), and (iii) without the consent of the
Administrative Agent, at no time shall the Commitment of any Additional Lender
under this Agreement be less than $10,000,000.  Each Commitment
Increase shall be in a minimum aggregate amount of at least $25,000,000 and in
integral multiples of $5,000,000 in excess thereof.

    
      
         

      

      
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    (c)        Increase On or After
Existing Maturity Date.  At any time and from time to time on
or after the Existing Maturity Date and payment in full of all Obligations
(other than contingent indemnity obligations for then unasserted claims) of the
Non-Extending Lenders, so long as no Default or Event of Default exists or would
arise therefrom, the Lead Borrower shall have the right to request an increase
of the aggregate of the then outstanding Commitments (including the Letter of
Credit Sublimit) by an amount as would cause the Total Commitments not to exceed
$900,000,000 in the aggregate.  The Administrative Agent and the Lead
Borrower shall determine the effective date of such requested increase and any
such requested increase shall be first made available to all existing Lenders on
a pro rata basis.  To the extent that, on or before the tenth day
following such request for an increase hereunder, the existing Lenders decline
to increase their Commitments, or decline to increase their Commitments to the
amount requested by the Lead Borrower, or fail to respond to such request for an
increase, the Administrative Agent, in consultation with the Lead Borrower, will
use its reasonable best efforts to arrange for other Persons to become a Lender
hereunder and to issue commitments in an amount equal to the amount of the
increase in the Total Commitments requested by the Lead Borrower and not
accepted by the existing Lenders, provided, however,
that (i) no Lender shall be obligated to provide a Commitment Increase as a
result of any such request by the Lead Borrower, (ii) any Additional Commitment
Lender which is not an existing Lender shall be subject to the approval of the
Administrative Agent, the Issuing Banks and the Lead Borrower (which approval
shall not be unreasonably withheld), and (iii) without the consent of the
Administrative Agent, at no time shall the Commitment of any Additional Lender
under this Agreement be less than $10,000,000.  Each Commitment
Increase shall be in a minimum aggregate amount of at least $25,000,000 and in
integral multiples of $5,000,000 in excess thereof.  Each Additional
Commitment Lender agreeing to provide a Commitment Increase pursuant to this
SECTION 2.02(c) shall be on the same terms and with the same maturity as
provided for the Extending Lenders.

    

    (d)        Conditions to Effectiveness
of each Commitment Increase.  No Commitment Increase shall
become effective unless and until each of the following conditions have been
satisfied or waived:

    

    (i)     
       The Borrowers, the Administrative
Agent, and any Additional Commitment Lender shall have executed and delivered a
joinder to the Loan Documents in such form as the Administrative Agent shall
reasonably require;

    

    (ii)      
     The Borrowers shall have paid such fees and other
compensation to the Additional Commitment Lenders and the Arrangers as the Lead
Borrower, the Arrangers and such Additional Commitment Lenders shall
agree;

    

    (iii)      
    If requested by the Administrative Agent, the Borrowers
shall deliver to the Administrative Agent and the Lenders an opinion or
opinions, in form and substance reasonably satisfactory to the Administrative
Agent, from counsel to the Borrowers and dated such date;

    
      
         

      

      
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    (iv)       
   A Revolving Credit Note (to the extent requested) will be
issued at the Borrowers’ expense, to each such Additional Commitment Lender, to
be in conformity with the requirements of SECTION 2.07 (with appropriate
modification) to the extent necessary to reflect the new Commitment of each
Additional Commitment Lender; and

    

    (v)          
 The Borrowers and each Additional Commitment Lender shall have delivered
such other instruments, documents and agreements as the Administrative Agent may
reasonably have requested in order to effectuate the documentation of the
foregoing.

    

    (e)        Notification by
Administrative Agent.  The Administrative Agent shall promptly
notify each Lender as to the effectiveness of each Commitment Increase (with
each date of such effectiveness being referred to herein as a “Commitment Increase
Date”), and at such time (i) the Commitments under, and for all purposes
of, this Agreement shall be increased by the aggregate amount of such Commitment
Increases, (ii) Schedule 1.1(a) shall
be deemed modified, without further action,  to reflect the revised
Commitment Percentages of the Lenders and (iii) this Agreement shall be deemed
amended, without further action, to the extent necessary to reflect such
increased Commitments.

    

    (f)         Other
Provisions.  In connection with Commitment Increases hereunder,
the Lenders and the Borrowers agree that, notwithstanding anything to the
contrary in this Agreement, (i) the Borrowers shall, in coordination with the
Administrative Agent, (x) repay outstanding Revolving Credit Loans of certain
Lenders, and obtain Revolving Credit Loans from certain other Lenders (including
the Additional Commitment Lenders), or (y) take such other actions as reasonably
may be required by the Administrative Agent, in each case to the extent
necessary so that all of the Lenders effectively participate in each of the
outstanding Revolving Credit Loans pro rata on the basis of their Commitment
Percentages (determined after giving effect to any increase in the Commitments
pursuant to this SECTION 2.02), and (ii) the Borrowers shall pay to the Lenders
any costs of the type referred to in SECTION 2.16(c) in connection with any
repayment and/or Revolving Credit Loans required pursuant to preceding clause
(i).  Without limiting the obligations of the Borrowers provided for
in this SECTION 2.02, the Administrative Agent and the Lenders agree that they
will use their best efforts to attempt to minimize the costs of the type
referred to in SECTION 2.16(c) which the Borrowers would otherwise incur in
connection with the implementation of an increase in the
Commitments.

    

    (g)        Reinstatement of Tranche A-1
Commitments.  At any time on or after the Commitments of the
Non-Extending Lenders shall have expired or been terminated and all Obligations
owed to the Non-Extending Lenders shall have been paid in full (other than
contingent indemnity obligations for then unasserted claims), so long as no
Default or Event of Default then exists or would arise therefrom, subject to the
prior written consent of the Required Lenders, if the then outstanding Total
Commitments, after giving effect to the expiry or termination of the Commitments
of the Non-Extending Lenders, are less than $800,000,000, without duplication of
the provisions of SECTION 2.02(c), the Lead Borrower shall have the right on a
one-time basis to request an increase of the then outstanding Commitments by an
aggregate amount not to exceed (i) $65,000,000 minus (ii) the amount
of any increases in the Commitments by the Tranche A-1 Lenders (as defined in
the Existing Credit Agreement) pursuant to SECTION 2.02(a) on the Effective Date
(the “Tranche A-1
Commitment Increase”); provided, however, that after
giving effect to the Tranche A-1 Commitment Increase and any other Commitment
Increases pursuant to this SECTION 2.02, the Total Commitments shall not exceed
$900,000,000 at any time.  The Tranche A-1 Commitment Increase shall
be structured on substantially the same terms as apply to the Tranche A-1
Commitments under, and as defined in, the Existing Credit Agreement; provided that the Tranche A-1
Commitment Increase shall be subject to such pricing, fees and other terms as
the Lead Borrower, the Arrangers and the Persons participating in the Tranche
A-1 Commitment Increase shall agree; provided further that (i) no
Lender shall be obligated to increase its Commitment as a result of any such
request by the Lead Borrower, (ii) any Person participating in the Tranche A-1
Commitment Increase which is not then an existing Lender shall be subject to the
approval of the Administrative Agent, the Issuing Banks and the Lead Borrower
(which approval shall not be unreasonably withheld, conditioned or delayed), and
(iii) the Loan Parties, the Agents and the Lenders shall enter into an amendment
to this Agreement to reflect the Tranche A-1 Commitment
Increase.

    
      
         

      

      
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    SECTION
2.03        Reserves; Changes to
Reserves.

    

    (a)        The
initial Inventory Reserves and Availability Reserves as of the Effective Date
are the following:

    

    (i)   
         Shrink (an Inventory
Reserve): The amount of Shrink posted from time to time in the Borrowers’ stock
ledger plus an amount equal to 1.30% of the net retail sales of the Borrowers
since the date of the Borrowers’ last physical inventory.

    

    (ii)    
       Customer Deposits (an Availability
Reserve): An amount equal to one hundred percent (100%) of the customer deposits
made for layaway or other goods;

    

    (iii)    
      Landlord Lien Reserve (an Availability
Reserve): An amount equal to two (2) months’ rent for all of the Borrowers’
leased locations in each Landlord Lien State, other than leased locations with
respect to which the Agents have received a Collateral Access
Agreement;

    

    (iv)     
     Customer Credit Liabilities (an Availability
Reserve): As of any date, an amount equal to fifty percent (50%) of the Customer
Credit Liabilities; and

    

    (v)        
   Landing Costs (an Availability Reserve): An amount equal to
sixteen percent (16%) of the outstanding amount of all Commercial Letters of
Credit;

    

    The
Administrative Agent may hereafter establish additional Reserves or change any
of the foregoing Reserves, in the exercise of its reasonable business judgment
acting in accordance with industry standards for asset based lending in the
retail industry,  provided that such
Reserves shall not be established or changed except upon not less than six (6)
Business Days notice to the Borrowers (during which period the Agents shall be
available to discuss any such proposed Reserve with the
Borrowers).

    
      
         

      

      
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    SECTION
2.04        Making of Revolving Credit
Loans.

    

    (a)        Except
as set forth in SECTION 2.09, SECTION 2.10 and SECTION 2.11, Revolving Credit
Loans (other than Swingline Loans) shall be either Prime Rate Loans or LIBO
Loans as the Lead Borrower on behalf of the Borrowers may request (which request
shall substantially be made in the form attached hereto as Exhibit C) subject to
and in accordance with this SECTION 2.04.  All Swingline Loans shall
be only Prime Rate Loans. All Revolving Credit Loans made pursuant to the same
Borrowing shall, unless otherwise specifically provided herein, be Revolving
Credit Loans of the same Type.  Each Lender may fulfill its Commitment
with respect to any Revolving Credit Loan by causing any lending office of such
Lender to make such Revolving Credit Loan; provided, however, that any
such use of a lending office shall not affect the obligation of the Borrowers to
repay such Revolving Credit Loan in accordance with the terms of the applicable
Revolving Credit Note.  Each Lender shall, subject to its overall
policy considerations, use reasonable efforts to select a lending office which
will not result in the payment of increased costs by the
Borrowers.  Subject to the other provisions of this SECTION 2.04 and
the provisions of SECTION 2.11, Borrowings of Revolving Credit Loans of more
than one Type may be incurred at the same time, but in any event no more than
ten (10) Borrowings of LIBO Loans may be outstanding at any time and no more
than two (2) Borrowings of LIBO Loans having an Interest Period of less than one
(1) month may be selected by the Lead Borrower in any thirty (30) day
period.

    

    (b)        The
Lead Borrower shall give the Administrative Agent (w) three (3) Business Days’
prior telephonic notice (thereafter confirmed in writing) of each Borrowing of
LIBO Loans, and (x) one (1) Business Days’ prior telephonic notice (thereafter
confirmed in writing) of each Borrowing of Prime Rate Loans by the
Borrowers.  Any such notice, to be effective, must be received by the
Administrative Agent not later than 11:00 a.m. on the third Business Day in the
case of LIBO Loans, and one Business Day in the case of Prime Rate Loans, prior
to the date on which such Borrowing is to be made. Such notice shall be
irrevocable (except to the extent set forth in SECTION 2.10 or SECTION 2.11
hereof), shall contain disbursement instructions and shall specify: (i) whether
the Borrowing then being requested is to be a Borrowing of Prime Rate Loans or
LIBO Loans and, if LIBO Loans, the Interest Period with respect thereto; (ii)
the amount of the proposed Borrowing (which shall be in an integral multiple of
$1,000,000, but not less than $5,000,000 in the case of LIBO Loans; and (iii)
the date of the proposed Borrowing (which shall be a Business
Day).  If no election of Interest Period is specified in any such
notice for a Borrowing of LIBO Loans, such notice shall be deemed a request for
an Interest Period of one (1) month.  If no election is made as to the
Type of Revolving Credit Loan, such notice shall be deemed a request for
Borrowing of Prime Rate Loans.  The Administrative Agent shall
promptly notify each Lender of its proportionate share of such Borrowing, the
date of such Borrowing, the Type of Borrowing being requested and the Interest
Period or Interest Periods applicable thereto, as appropriate. On the borrowing
date specified in such notice, each Lender shall make its share of the Borrowing
available at the office of the Administrative Agent at 100 Federal Street,
Boston, Massachusetts 02110 no later than 3:00 p.m., in immediately available
funds.  Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with this SECTION 2.04 and may, in
reliance upon such assumption, make available to the Borrowers a corresponding
amount.  In the event a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrowers severally agree to pay to the Administrative Agent,
forthwith on demand such corresponding amount, with interest thereon for each
day from and including the date such amount is made available to the Borrowers
to but excluding the date of payment to the Administrative Agent, at (i) in the
case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation, or (ii) in the case of the Borrowers, the interest
rate applicable to Prime Rate Loans which bear interest at the Prime Rate or the
Extended Term Prime Rate, as applicable, with respect to Prime Rate Loans made
by such Lender which has not made its share of the applicable Borrowing
available to the Administrative Agent.  If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such
Lender’s Revolving Credit Loan included in such Borrowing.  Upon
receipt of the funds made available by the Lenders to fund any borrowing
hereunder, the Administrative Agent shall disburse such funds in the manner
specified in the notice of borrowing delivered by the Lead Borrower and shall
use reasonable efforts to make the funds so received from the Lenders available
to the Borrowers no later than 5:00 p.m.

    
      
         

      

      
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    (c)        To
the extent not paid by the Borrowers when due (after taking into consideration
any applicable grace period), the Administrative Agent, without the request of
the Lead Borrower, may advance any interest, fee payable pursuant to SECTION
2.19 or other payment to which any Credit Party is entitled from the Loan
Parties pursuant hereto or any other Loan Document and may charge the same to
the Loan Account notwithstanding that an Overadvance may result
thereby.  The Administrative Agent shall advise the Lead Borrower of
any such advance or charge promptly after the making thereof.  Such
action on the part of the Administrative Agent shall not constitute a waiver of
the Administrative Agent’s rights and the Borrowers’ obligations under SECTION
2.17(a).  Any amount which is added to the principal balance of the
Loan Account as provided in this SECTION 2.04(c) shall bear interest at the
interest rate then and thereafter applicable to Prime Rate Loans which bear
interest at the Prime Rate or the Extended Term Prime Rate, as
applicable.

    

    SECTION
2.05        Overadvances.

    

    (a)        The
Agents and the Lenders shall have no obligation to make any Revolving Credit
Loan (including, without limitation, any Swingline Loan) or to provide any
Letter of Credit if an Overadvance would result.

    

    (b)        The
Administrative Agent may, in its discretion, make Permitted Overadvances to the
Borrowers without the consent of the Lenders and each Lender shall be bound
thereby.  Any Permitted Overadvances may constitute Swingline Loans.
The making of a Permitted Overadvance is for the benefit of the Borrowers and
shall constitute a Revolving Credit Loan and an Obligation.  The
making of any such Permitted Overadvance on any one occasion shall not obligate
the Administrative Agent or any Lender to make or permit any Permitted
Overadvance on any other occasion or to permit such Permitted Overadvances to
remain outstanding.

    

    (c)        The
making by the Administrative Agent of a Permitted Overadvance shall not modify
or abrogate any of the provisions of SECTION 2.13(f) regarding the Lenders’
obligations to purchase participations with respect to Letter of Credit
Disbursements or SECTION 2.22 regarding any Lender’s reimbursement obligations
with respect to Swingline Loans.

    
      
         

      

      
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    SECTION
2.06        Swingline
Loans

    

    (a)        The
Swingline Lender is authorized by the Lenders, and shall make, Swingline Loans
at any time (subject to SECTION 2.06(b)) to the Borrowers up to the amount of
the sum of (i) the Swingline Loan Ceiling, upon a notice of Borrowing from Lead
Borrower received by the Administrative Agent and the Swingline Lender (which
notice, at the Swingline Lender’s discretion, may be submitted prior to 3:00
p.m. on the Business Day on which such Swingline Loan is requested), plus (ii) any
Permitted Overadvances; provided that the Swingline
Lender shall not be obligated to make any Swingline Loan in its reasonable
discretion if any Lender at such time is a Deteriorating Lender, unless the
Swingline Lender has entered into satisfactory arrangements with the Borrowers
or such Lender to eliminate the Swingline Lender’s risk of full reimbursement
with respect to such Swingline Loan.  Swingline Loans shall be Prime
Rate Loans bearing interest at the Extended Term Prime Rate and shall be subject
to periodic settlement with the Lenders under SECTION 2.22 below.

    

    (b)        The
Lead Borrower’s request for a Swingline Loan shall be deemed a representation
that the applicable conditions for borrowing under SECTION 4.02 are satisfied
(unless such conditions have been waived).  If the conditions for
borrowing under SECTION 4.02 cannot in fact be fulfilled, (x) the Lead Borrower
shall give immediate notice (a “Noncompliance
Notice”) thereof to the Administrative Agent and the Swingline Lender,
and the Administrative Agent shall promptly provide each Lender with a copy of
the Noncompliance Notice, and (y) the Required Lenders may direct the Swingline
Lender to, and the Swingline Lender thereupon shall, cease making Swingline
Loans (other than Permitted Overadvances) until such conditions can be satisfied
or are waived in accordance with SECTION 9.02. Unless the Required Lenders so
direct the Swingline Lender, the Swingline Lender may, but is not obligated to,
continue to make Swingline Loans commencing one (1) Business Day after the
Non-Compliance Notice is furnished to the Lenders.  Notwithstanding
the foregoing, no Swingline Loans (other than Permitted Overadvances) shall be
made pursuant to this SECTION 2.06(b) if the aggregate outstanding amount of the
Credit Extensions and Swingline Loans would exceed the limitations set forth in
SECTION 2.01.

    

    SECTION
2.07        Notes.

    

    (a)        Upon
the request of any Lender, the Revolving Credit Loans made by such Lender shall
be evidenced by a Revolving Credit Note, duly executed on behalf of the
Borrowers, dated the Closing Date or the Effective Date, as applicable, payable
to the order of such Lender in an aggregate principal amount equal to such
Lender’s Commitment.

    

    (b)        Upon
the request of the Swingline Lender, the Revolving Credit Loans made by the
Swingline Lender with respect to Swingline Loans shall be evidenced by a
Swingline Note, duly executed on behalf of the Borrowers, dated the Closing
Date, payable to the order of the Swingline Lender, in an aggregate principal
amount equal to the Swingline Loan Ceiling.

    

    (c)        Each
Lender is hereby authorized by the Borrowers to endorse on a schedule attached
to each Note delivered to such Lender (or on a continuation of such schedule
attached to such Note and made a part thereof), or otherwise to record in such
Lender’s internal records, an appropriate notation evidencing the date and
amount of each Revolving Credit Loan from such Lender, each payment and
prepayment of principal of any such Revolving Credit Loan, each payment of
interest on any such Revolving Credit Loan and the other information provided
for on such schedule; provided, however, that the
failure of any Lender to make such a notation or any error therein shall not
affect the obligation of any Borrower to repay the Revolving Credit Loans made
by such Lender in accordance with the terms of this Agreement and the applicable
Notes.

    
      
         

      

      
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    (d)        Upon
receipt of an affidavit and indemnity of a Lender as to the loss, theft,
destruction or mutilation of such Lender’s Note and upon cancellation of such
Note, the Borrowers will issue, in lieu thereof, a replacement Note in favor of
such Lender, in the same principal amount thereof and otherwise of like tenor at
such Lender’s expense.

    

    SECTION
2.08        Interest on Revolving Credit
Loans.

    

    (a)        Interest on Revolving Credit
Loans by Non-Extending Lenders.

    

    (i)  
          Subject to SECTION
2.12, each Prime Rate Loan made by a Non-Extending Lender shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as applicable) at a rate per annum that shall be equal to the then
Prime Rate plus
the Applicable Margin for Prime Rate Loans.

    

    (ii)            Subject
to SECTION 2.09 through SECTION 2.12, each LIBO Loan made by a Non-Extending
Lender shall bear interest (computed on the basis of the actual number of days
elapsed over a year of 360 days) at a rate per annum equal, during each Interest
Period applicable thereto, to the Adjusted  LIBO Rate for such
Interest Period, plus the Applicable
Margin for LIBO Loans.

    

    (b)        Interest on Revolving Credit
Loans by Extending Lenders.

    

    (i)   
         Subject to SECTION 2.12,
each Prime Rate Loan (including all Swingline Loans) made by an Extending Lender
shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 365 or 366 days, as applicable) at a rate per annum that shall be
equal to the then Extended Term Prime Rate plus the Extended
Term Applicable Margin for Prime Rate Loans.

    

    (ii)    
       Subject to SECTION 2.09 through
SECTION 2.12, each LIBO Loan made by an Extending Lender shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal, during each Interest Period applicable thereto,
to the Adjusted  LIBO Rate for such Interest Period, plus the Extended
Term Applicable Margin for LIBO Loans.

    

    (c)        Accrued
interest on all Revolving Credit Loans shall be payable in arrears on each
Interest Payment Date applicable thereto, at the Applicable Termination Date and
after such Applicable Termination Date on demand.

    

    SECTION
2.09        Conversion and Continuation
of Revolving Credit Loans.

    

    (a)        The
Lead Borrower shall have the right at any time, on three (3) Business Days’
prior notice to the Administrative Agent (which notice, to be effective, must be
received by the Administrative Agent not later than 11:00 a.m. on the third
Business Day preceding the date of any conversion), (i) to convert any
outstanding Borrowings of Prime Rate Loans to Borrowings of LIBO Loans, or (ii)
to continue an outstanding Borrowing of LIBO Loans for an additional Interest
Period, or (iii) to convert any outstanding Borrowings of LIBO Loans to a
Borrowing of Prime Rate Loans, subject in each case to the
following:

    
      
         

      

      
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    (i)     
       No Borrowing of Revolving Credit Loans
may be converted into, or continued as, LIBO Loans at any time when any Event of
Default has occurred and is continuing (nothing contained herein being deemed to
obligate the Borrowers to incur Breakage Costs upon the occurrence and during
the continuance of an Event of Default unless the Obligations are
accelerated);

    

    (ii)     
      If less than a full Borrowing of Revolving
Credit Loans is converted, such conversion shall be made pro rata among the
Lenders based upon their Commitment Percentages in accordance with the
respective principal amounts of the Revolving Credit Loans comprising such
Borrowing held by such Lenders immediately prior to such
conversion;

    

    (iii)      
    The aggregate principal amount of Prime Rate Loans being
converted into or continued as LIBO Loans shall be in an integral of $1,000,000
and at least $5,000,000;

    

    (iv)     
     Each Lender shall effect each conversion by
applying the proceeds of its new LIBO Loan or Prime Rate Loan, as the case may
be, to its Revolving Credit Loan being so converted;

    

    (v)       
    The Interest Period with respect to a Borrowing of LIBO
Loans effected by a conversion or in respect to the Borrowing of LIBO Loans
being continued as LIBO Loans shall commence on the date of conversion or the
expiration of the current Interest Period applicable to such continuing
Borrowing, as the case may be;

    

    (vi)     
     A Borrowing of LIBO Loans may be converted only on
the last day of an Interest Period applicable thereto, unless the applicable
Borrower pays all Breakage Costs incurred in connection with such
conversion;

    

    (vii)          In
no event shall more than ten (10) Borrowings of LIBO Loans be outstanding at any
time or more than two (2) Borrowings of LIBO Loans having an Interest Period of
less than one (1) month be selected by the Lead Borrower in any thirty (30) day
period; and

    

    (viii)         Each
request for a conversion or continuation of a Borrowing of LIBO Loans which
fails to state an applicable Interest Period shall be deemed to be a request for
an Interest Period of one (1) month.

    

    (b)        If
the Lead Borrower does not give notice to convert any Borrowing of LIBO Loans,
or does not give notice to continue, or does not have the right to continue, any
Borrowing as LIBO Loans, in each case as provided in SECTION 2.09(a) above, such
Borrowing shall automatically be converted to, or continued as, as applicable, a
Borrowing of Prime Rate Loans, at the expiration of the then-current Interest
Period. The Administrative Agent shall, after it receives notice from the Lead
Borrower, promptly give each Lender notice of any conversion, in whole or part,
of any Revolving Credit Loan made by such Lender.

    
      
         

      

      
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    SECTION
2.10        Alternate Rate of Interest
for Revolving Credit Loans.

    

    If prior
to the commencement of any Interest Period for a LIBO Borrowing, the
Administrative Agent:

    

    (a)         
  reasonably determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate (in accordance with the terms of the
definition thereof) for such Interest Period; or

    

    (b)          
 is advised by the Required Lenders that the Adjusted LIBO Rate for such
Interest Period will not adequately and fairly reflect the cost to such Required
Lenders of making or maintaining their Revolving Credit Loans included in such
Borrowing for such Interest Period;

    

    then the
Administrative Agent shall give notice thereof to the Lead Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Lead Borrower and the applicable
Lenders that the circumstances giving rise to such notice no longer exist (which
notice the Administrative Agent shall deliver promptly upon obtaining knowledge
of the same), (i) any Borrowing Request that requests the conversion of any
Borrowing to, or continuation of any Borrowing as, a LIBO Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a LIBO Borrowing, such
Borrowing shall be made as a Borrowing of Prime Rate Loans unless withdrawn by
the Lead Borrower.

    

    SECTION
2.11        Change in
Legality.

    

    (a)        Notwithstanding
anything to the contrary contained elsewhere in this Agreement, if any Change in
Law occurring after the Effective Date shall make it unlawful for a Lender to
make or maintain a LIBO Loan or to give effect to its obligations as
contemplated hereby with respect to a LIBO Loan, then, by written notice to the
Lead Borrower, such Lender may (x) declare that LIBO Loans will not thereafter
be made by such Lender hereunder, whereupon any request by the Lead Borrower for
a LIBO Borrowing shall, as to such Lender only, be deemed a request for a Prime
Rate Loan unless such declaration shall be subsequently withdrawn; and (y)
require that all outstanding LIBO Loans made by such Lender be converted to
Prime Rate Loans, in which event all such LIBO Loans shall be automatically
converted to Prime Rate Loans as of the effective date of such notice as
provided in SECTION 2.09(b).  In the event any Lender shall exercise
its rights hereunder, all payments and prepayments of principal which would
otherwise have been applied to repay the LIBO Loans that would have been made by
such Lender or the converted LIBO Loans of such Lender, shall instead be applied
to repay the Prime Rate Loans made by such Lender in lieu of, or resulting from
the conversion of, such LIBO Loans.

    

    (b)        For
purposes of this SECTION 2.11, a notice to the Lead Borrower pursuant to SECTION
2.11(a) above shall be effective, if lawful, and if any LIBO Loans shall then be
outstanding, on the last day of the then-current Interest Period; and otherwise
such notice shall be effective on the date of receipt by the Lead
Borrower.

    
      
         

      

      
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    SECTION
2.12        Default
Interest.

    

    Effective
upon written notice from the Administrative Agent (which notice shall be given
only at the direction of the Required Lenders after the occurrence of any
Specified Default) and at all times thereafter while such Specified Default is
continuing, interest shall accrue on all Loans and other amounts owing by the
Borrowers (after as well as before judgment, as and to the extent permitted by
law) at a rate per annum (computed on the basis of the actual number of days
elapsed over a year of 365 or 366 days as applicable) (the “Default Rate”) equal
to the rate (including the Applicable Margin or Extended Term Applicable Margin
for Revolving Credit Loans, as applicable) in effect from time to time plus two percent
(2.00%) per annum and such interest shall be payable on demand.

    

    SECTION
2.13        Letters of
Credit.

    

    (a)        Upon
the terms and subject to the conditions herein set forth, at any time and from
time to time after the date hereof and prior to the Extended Termination Date,
the Lead Borrower on behalf of the Borrowers may request an Issuing Bank to
issue, and subject to the terms and conditions contained herein, the applicable
Issuing Bank shall issue, for the account of the relevant Borrower, one or more
Letters of Credit; provided, however, that no
Letter of Credit shall be issued if after giving effect to such issuance (i) the
aggregate Letter of Credit Outstandings shall exceed the Letter of Credit
Sublimit, or (ii) the aggregate Credit Extensions (including Swingline Loans)
would exceed the limitations set forth in SECTION 2.01(a) provided, further, that no
Letter of Credit shall be issued unless an Issuing Bank shall have received
notice from the Administrative Agent that the conditions to such issuance have
been met (such notice shall be deemed given (x) if the Issuing Bank has not
received notice that the conditions have not been met within two Business Days
of the initial request to the Issuing Bank and the Administrative Agent pursuant
to SECTION 2.13(h), or (y) if the aggregate undrawn amount under Letters of
Credit issued by such Issuing Bank then outstanding does not exceed the amount
theretofore agreed to by the Lead Borrower, the Administrative Agent and the
Issuing Bank); and provided further that an
Issuing Bank shall not be required to issue any such Letter of Credit in its
reasonable discretion if: (A) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain the
Issuing Bank from issuing such Letter of Credit, or any Applicable Law relating
to the Issuing Bank or any request or directive (whether or not having the force
of law) from any Governmental Authority with jurisdiction over the Issuing Bank
shall prohibit, or request that the Issuing Bank refrain from, the issuance of
letters of credit generally or such Letter of Credit in particular or shall
impose upon the Issuing Bank with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the Issuing Bank is not
otherwise compensated hereunder) not in effect on the Effective Date, or shall
impose upon the Issuing Bank any unreimbursed loss, cost or expense which was
not applicable on the Effective Date and which the Issuing Bank in good faith
deems material to it, (B) the issuance of such Letter of Credit would violate
one or more policies of the Issuing Bank applicable to letters of credit
generally, or (C) any Lender is at such time a Deteriorating Lender hereunder,
unless the Issuing Bank has entered into satisfactory arrangements with the
Borrowers or such Lender to eliminate the Issuing Bank’s risk of full
reimbursement with respect to such Letter of Credit.  A permanent
reduction of the Total Commitments shall not require a corresponding pro rata
reduction in the Letter of Credit Sublimit; provided, however, that if the
Total Commitments are reduced to an amount less than the Letter of Credit
Sublimit, then the Letter of Credit Sublimit shall be reduced to an amount equal
to (or, at Lead Borrower’s option, less than) the Total
Commitments.  Any Issuing Bank (other than Bank of America or any of
its Affiliates) shall notify the Administrative Agent in writing on each
Business Day of all Letters of Credit issued on the prior Business Day by such
Issuing Bank, provided that (A)
until the Administrative Agent advises any such Issuing Bank that the provisions
of SECTION 6.10 have been or would be violated, or (B) the aggregate amount of
the Letters of Credit issued in any such week exceeds such amount as shall be
agreed by the Administrative Agent and the Issuing Bank, such Issuing Bank shall
be required to so notify the Administrative Agent in writing only once each week
of the Letters of Credit issued by such Issuing Bank during the immediately
preceding week as well as the daily amounts outstanding for the prior week, such
notice to be furnished on such day of the week as the Administrative Agent and
such Issuing Bank may agree.

    
      
         

      

      
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    (b)        Each
Standby Letter of Credit shall expire at or prior to the close of business on
the earlier of the date which is (i) one (1) year after the date of the issuance
of such Letter of Credit (or such other longer period of time as the
Administrative Agent and the applicable Issuing Bank may agree) (or, in the case
of any renewal or extension thereof, one (1) year after such renewal or
extension) and (ii) unless cash collateralized or otherwise credit supported to
the reasonable satisfaction of the Administrative Agent and the applicable
Issuing Bank (in which case, the expiry may extend no longer than twelve months
after the Extended Term Maturity Date), five (5) Business Days prior to the
Extended Term Maturity Date; provided, however, that each
Standby Letter of Credit may, upon the request of the Lead Borrower, include a
provision whereby such Letter of Credit shall be renewed automatically for
additional consecutive periods of twelve (12) months or less (but not beyond the
date that is five (5) Business Days prior to the Extended Term Maturity Date
unless cash collateralized or otherwise credit supported to the reasonable
satisfaction of the Administrative Agent and the applicable Issuing Bank (in
which case, the expiry may extend no longer than twelve months after the
Extended Term Maturity Date)) unless the applicable Issuing Bank notifies the
beneficiary thereof at least thirty (30) days prior to the then-applicable
expiration date that such Letter of Credit will not be renewed.

    

    (c)        Each
Commercial Letter of Credit shall expire at or prior to the close of business on
the earlier of the date which is (i) one (1) year after the date of the issuance
of such Commercial Letter of Credit (or such other period as may be acceptable
to the Administrative Agent and the applicable Issuing Bank) and (ii) unless
cash collateralized or otherwise credit supported to the reasonable satisfaction
of the Administrative Agent and the applicable Issuing Bank (in which case, the
expiry may extend no longer than twelve months after the Extended Term Maturity
Date), five (5) Business Days prior to the Extended Term Maturity
Date.

    

    (d)        Drafts
drawn under each Letter of Credit shall be reimbursed by the Borrowers by paying
to the Administrative Agent an amount equal to such drawing not later than 12:00
noon on the Business Day immediately following the day that the Lead Borrower
receives notice of such drawing and demand for payment by the applicable Issuing
Bank, provided
that (i) in the absence of written notice to the contrary from the Lead
Borrower, and subject to the other provisions of this Agreement, such payments
shall be financed when due with a Prime Rate Loan (which may be a Swingline
Loan) to the applicable Borrower in an equivalent amount and, to the extent so
financed, the respective Borrower’s obligation to make such payment shall be
discharged and replaced by the resulting Prime Rate Loan or Swingline Loan, and
(ii) in the event that the Lead Borrower has notified the Administrative Agent
that it will not so finance any such payments, the applicable Borrowers will
make payment directly to the applicable Issuing Bank when due. The
Administrative Agent shall promptly remit the proceeds from any Loans made
pursuant to clause (i) above in reimbursement of a draw under a Letter of Credit
to the applicable Issuing Bank.  Such Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. Such Issuing Bank shall promptly
notify the Administrative Agent and the Lead Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether such Issuing Bank has made or
will make payment thereunder; provided, however, that any
failure to give or delay in giving such notice shall not relieve the Borrowers
of their obligation to reimburse such Issuing Bank and the Lenders with respect
to any such payment.

    
      
         

      

      
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    (e)        If
any Issuing Bank shall make any Letter of Credit Disbursement, then, unless the
applicable Borrowers shall reimburse such Issuing Bank in full on the date
provided in SECTION 2.13(d) above, the unpaid amount thereof shall bear interest
at the rate per annum then applicable to Prime Rate Loans bearing interest at
the Extended Term Prime Rate (except as set forth in the immediately succeeding
sentence) for each day from and including the date such payment is made to, but
excluding, the date that such Borrowers reimburse such Issuing Bank therefor,
provided, however, that, if
such Borrowers fail to reimburse any Issuing Bank when due pursuant to this
SECTION 2.13(e), then interest shall accrue at the Default
Rate.  Interest accrued pursuant to this paragraph shall be for the
account of, and promptly remitted by the Administrative Agent, upon receipt to,
the applicable Issuing Bank, except that interest accrued on and after the date
of payment by any Lender pursuant to SECTION 2.13(g) to reimburse such Issuing
Bank shall be for the account of such Lender to the extent of such payment and
shall be calculated, with respect to such Lender, at the rate per annum then
applicable to Prime Rate Loans bearing interest at the Prime Rate or the
Extended Term Prime Rate, as applicable, with respect to Prime Rate Loans made
by such Lender.

    

    (f)        
Immediately upon the issuance of any Letter of Credit by any Issuing Bank (or
the amendment of a Letter of Credit increasing the amount thereof), and without
any further action on the part of such Issuing Bank, such Issuing Bank shall be
deemed to have sold to each Lender, and each such Lender shall be deemed
unconditionally and irrevocably to have purchased from such Issuing Bank,
without recourse or warranty, an undivided interest and participation, to the
extent of such Lender’s Commitment Percentage, in such Letter of Credit, each
drawing thereunder and the obligations of the Borrowers under this Agreement and
the other Loan Documents with respect thereto. Upon any change in the Total
Commitments pursuant to SECTION 2.02, SECTION 2.15, SECTION 2.17 or SECTION 9.04
of this Agreement, it is hereby agreed that with respect to all Letter of Credit
Outstandings, there shall be an automatic adjustment to the participations
hereby created to reflect the new Commitment Percentages of the assigning and
assignee Lenders and the Additional Commitment Lenders, if
applicable.  Any action taken or omitted by any Issuing Bank under or
in connection with a Letter of Credit, if taken or omitted in the absence of
gross negligence or willful misconduct, shall not create for such Issuing Bank
any resulting liability to any Lender.

    

    (g)        In
the event that any Issuing Bank makes any Letter of Credit Disbursement and the
Borrowers shall not have reimbursed such amount in full to such Issuing Bank
pursuant to this SECTION 2.13, such Issuing Bank shall promptly notify the
Administrative Agent, which shall promptly notify each Lender, of such failure,
and each Lender shall promptly and unconditionally pay to the Administrative
Agent, for the account of such Issuing Bank the amount of such Lender’s
Commitment Percentage of such unreimbursed payment in dollars and in same day
funds.  If the applicable Issuing Bank so notifies the Administrative
Agent and the Administrative Agent so notifies the Lenders prior to 11:00 a.m.
on any Business Day, each such Lender shall make available to the applicable
Issuing Bank such Lender’s Commitment Percentage of the amount of such payment
on such Business Day in same day funds (or if such notice is received by the
Lenders after 11:00 a.m. on the day of receipt, payment shall be made on the
immediately following Business Day in same day funds).  If and to the
extent such Lender shall not have so made its Commitment Percentage of the
amount of such payment available to the applicable Issuing Bank, such Lender
agrees to pay to such Issuing Bank forthwith on demand such amount, together
with interest thereon, for each day from such date until the date such amount is
paid to the Administrative Agent for the account of such Issuing Bank at the
Federal Funds Effective Rate. Each Lender agrees to fund its Commitment
Percentage of such unreimbursed payment notwithstanding a failure to satisfy any
applicable lending conditions or the provisions of SECTION 2.01 or SECTION 2.06,
or the occurrence of the Applicable Termination Date. The failure of any Lender
to make available to the applicable Issuing Bank its Commitment Percentage of
any payment under any Letter of Credit shall neither relieve any Lender of its
obligation hereunder to make available to such Issuing Bank its Commitment
Percentage of any payment under any Letter of Credit on the date required, as
specified above, nor increase the obligation of such other Lender. Whenever any
Lender has made payments to any Issuing Bank in respect of any reimbursement
obligation for any Letter of Credit, such Lender shall be entitled to share
ratably, based on its Commitment Percentage, in all payments and collections
thereafter received on account of such reimbursement
obligation.

    
      
         

      

      
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    (h)        Whenever
the Lead Borrower desires that any Issuing Bank issue a Letter of Credit (or the
amendment, renewal or extension (other than automatic renewal or extensions) of
an outstanding Letter of Credit), the Lead Borrower shall give to the applicable
Issuing Bank and the Administrative Agent at least two (2) Business Days’ prior
written (including, without limitation, by telegraphic, telex, facsimile or
cable communication) notice (or such shorter period as may be agreed upon in
writing by such Issuing Bank and the Lead Borrower) specifying the date on which
the proposed Letter of Credit is to be issued, amended, renewed or extended
(which shall be a Business Day), the Stated Amount of the Letter of Credit so
requested, the expiration date of such Letter of Credit, the name and address of
the beneficiary thereof, and the provisions thereof.  If requested by
the applicable Issuing Bank, the Lead Borrower shall also submit documentation
on such Issuing Bank’s standard form in connection with any request for the
issuance, amendment, renewal or extension of a Letter of Credit, provided that in the
event of a conflict or inconsistency between the terms of such documentation and
this Agreement, the terms of this Agreement shall supersede any inconsistent or
contrary terms in such documentation and this Agreement shall
control.

    

    (i)         Subject
to the limitations set forth below, the obligations of the Borrowers to
reimburse the Issuing Banks for any Letter of Credit Disbursement shall be
unconditional and irrevocable and shall be paid strictly in accordance with the
terms of this Agreement under all circumstances, including, without limitation
(it being understood that any such payment by the Borrowers shall be without
prejudice to, and shall not constitute a waiver of, any rights the Borrowers
might have or might acquire hereunder as a result of the payment by the
applicable Issuing Bank of any draft or the reimbursement by the Borrowers
thereof): (i) any lack of validity or enforceability of a Letter of Credit; (ii)
the existence of any claim, setoff, defense or other right which a Borrower may
have at any time against a beneficiary of any Letter of Credit or against any
Issuing Bank or any of the Lenders, whether in connection with this Agreement,
the transactions contemplated herein or any unrelated transaction; (iii) any
draft, demand, certificate or other document presented under any Letter of
Credit proving to be forged or fraudulent in any respect or any statement
therein being untrue or inaccurate in any respect; (iv) payment by any Issuing
Bank of any Letter of Credit against presentation of a demand, draft or
certificate or other document which does not strictly comply with the terms of
such Letter of Credit; (v) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this SECTION 2.13, constitute a legal or equitable discharge of,
or provide a right of setoff against, any Loan Party’s obligations hereunder; or
(vi) the fact that any Event of Default shall have occurred and be continuing;
provided, that
the Borrowers shall have no obligation to reimburse any Issuing Bank to the
extent that such payment was made in error due to the gross negligence, bad
faith or willful misconduct of such Issuing Bank (as determined by a court of
competent jurisdiction or another independent tribunal having
jurisdiction).  No Credit Party 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 in the preceding
sentence), 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 applicable Issuing Bank, provided that the
foregoing shall not be construed to excuse such Issuing Bank from liability to
the Borrowers to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the
extent permitted by applicable law) suffered by the Borrowers that are caused by
such Issuing Bank’s failure to exercise care when determining whether drafts and
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, bad faith or willful misconduct on the part of any Issuing
Bank (as determined by a court of competent jurisdiction or another independent
tribunal having jurisdiction), such 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
compliance with the terms of a Letter of Credit, the applicable Issuing Bank
may, in its reasonable 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.

    
      
         

      

      
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    (j)         If
any Specified Default shall occur and be continuing, on the Business Day that
the Lead Borrower receives notice from the Administrative Agent (which notice
may be given at the election of the Administrative Agent or at the direction of
the Required Lenders) demanding the deposit of cash collateral pursuant to this
paragraph, the applicable Loan Parties shall immediately deposit in the
applicable Cash Collateral Account an amount in cash equal to 103% of the Letter
of Credit Outstandings owing by such Loan Parties as of such date, plus any accrued and
unpaid interest thereon. Each such deposit shall be held by the Collateral Agent
for the payment and performance of the Obligations. The Collateral Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such Cash Collateral Account.  Other than any
interest earned on the investment of such deposits, which investments shall be
made at the option and in the sole discretion of the Administrative Agent (at
the request of the Lead Borrower and at the Borrowers’ risk and expense), such
deposits shall not bear interest.  Interest or profits, if any, on
such investments shall accumulate in such account.  Moneys in such
Cash Collateral Account shall be applied by the Administrative Agent to
reimburse the Issuing Banks for payments on account of drawings under Letters of
Credit for which it has not been reimbursed and, to the extent not so applied,
shall be held for the satisfaction of the reimbursement obligations of the
Borrowers for the Letter of Credit Outstandings at such time or, if the maturity
of the Revolving Credit Loans has been accelerated, shall be applied to satisfy
the other respective Obligations of the applicable Borrower.  If the
applicable Borrower is required to provide an amount of cash collateral
hereunder as a result of the occurrence and continuance of a Specified Default,
such amount (to the extent not applied as aforesaid) shall be returned promptly
to the respective Borrower but in no event later than two (2) Business Days
after all Specified Defaults have been cured or waived.

    
      
         

      

      
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    SECTION
2.14        Increased
Costs.

    

    (a)           
If any Change in Law shall:

    

    (i)  
          impose, modify or
deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of, or credit extended by, any
Lender or any holding company of any Lender (except any such reserve requirement
reflected in the Adjusted LIBO Rate) or any Issuing Bank; or

    

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

    

    and the
result of any of the foregoing shall be to increase the cost in any material
amount in excess of those incurred by similarly situated lenders to such Lender
of making or maintaining any LIBO Loan (or of maintaining its obligation to make
any such Revolving Credit Loan) or to increase the cost in any material amount
in excess of those incurred by similarly situated lenders to such Lender or any
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount in any material respect of any sum received or receivable
by such Lender or such Issuing Bank hereunder (whether of principal, interest or
otherwise), then the Borrowers will pay to such Lender or such Issuing Bank, as
the case may be, such additional amount or amounts as will compensate such
Lender or such Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

    

    (b)        If
any Lender or any Issuing Bank determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return
on such Lender’s or such Issuing Bank’s capital or on the capital of such
Lender’s or such Issuing Bank’s holding company, if any, as a consequence of
this Agreement or the Revolving Credit Loans made by, or participations in
Letters of Credit held by, such Lender, or the Letters of Credit issued by such
Issuing Bank, to a level below that which such Lender or such Issuing Bank or
such Lender’s or such Issuing Bank’s holding company would have achieved but for
such Change in Law (taking into consideration such Lender’s or such Issuing
Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding
company with respect to capital adequacy), then from time to time the Borrowers
will pay to such Lender or such Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or such Issuing Bank
or such Lender’s or such Issuing Bank’s holding company for any such reduction
suffered.

    

    (c)        A
certificate of a Lender or any Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or such Issuing Bank or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this SECTION 2.14
and setting forth in reasonable detail the manner in which such amount or
amounts were determined shall be delivered to the Lead Borrower and shall be
conclusive absent manifest error. The Borrowers shall pay such Lender or such
Issuing Bank, as the case may be, the amount shown as due on any such
certificate within fifteen (15) Business Days after receipt
thereof.

    
      
         

      

      
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    (d)        Failure
or delay on the part of any Lender or any Issuing Bank to demand compensation
pursuant to this SECTION 2.14 shall not constitute a waiver of such Lender’s or
such Issuing Bank’s right to demand such compensation, provided that the
Borrowers shall not be required to compensate a Lender or any Issuing Bank
pursuant to this Section for any increased costs or reductions incurred more
than 90 days prior to the date that such Lender or such Issuing Bank, as the
case may be, notifies the Borrowers of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or such Issuing Bank’s
intention to claim compensation therefor, and provided further
that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 90 day period referred to above shall be
extended to include the period of retroactive effect thereof.

    

    SECTION
2.15        Termination or Reduction of
Commitments.

    

    (a)        Upon
at least two (2) Business Days’ prior written notice to the Administrative
Agent, the Lead Borrower may, at any time, in whole permanently terminate, or
from time to time in part permanently reduce, the Commitments.  Each
such reduction shall be in the principal amount of $5,000,000 or any integral
multiple thereof.  Each such reduction or termination shall (i) be
applied ratably to the Commitments of each Lender and (ii) be irrevocable at the
effective time of any such termination or reduction.  The Borrowers
shall pay to the Administrative Agent for application as provided herein (i) at
the effective time of any such termination (but not any partial reduction), all
earned and unpaid fees under the Fee Letter and all Unused Fees and Extended
Term Unused Fees accrued on the Commitments so terminated, and (iii) at the
effective time of any such reduction or termination, any amount by which the
Credit Extensions to the Borrowers outstanding on such date exceed the amount to
which the Commitments are to be reduced effective on such date.

    

    (b)        Upon
the Effective Date, notwithstanding anything to the contrary contained in
Section 2.15 of the Existing Credit Agreement, (i) the Tranche A-1 Commitments
under, and as defined in, the Existing Credit Agreement shall be terminated in
full, and the Borrowers shall pay, in full and in cash, all outstanding Tranche
A-1 Loans (as defined in the Existing Credit Agreement), all accrued and unpaid
interest thereon, and all Unused Fees accrued on the Tranche A-1 Commitments,
and (ii) the Tranche A Commitments under, and as defined in, the Existing Credit
Agreement shall be permanently reduced to $721,000,000 on a non-ratable basis as
set forth on Schedule 1.1 hereof, and the Borrowers shall pay, in full and in
cash, outstanding Tranche A Loans (as defined in the Existing Credit Agreement)
in an amount necessary to reflect such reduction of the Tranche A Commitments,
together with all accrued and unpaid interest thereon, and all Unused Fees
accrued on the amount of the Tranche A Commitments so reduced.

    

    (c)        Upon
the Existing Termination Date, the Commitments of the Non-Extending Lenders
shall be terminated in full, and the Borrowers shall pay, in full and in cash,
all outstanding Loans and all other outstanding Obligations then owing by them
to the Non-Extending Lenders; provided that, if any
Default or Event of Default is continuing, any payments made on account of
outstanding Obligations owed to the Non-Extending Lenders shall be applied as
set forth in Section 7.03 hereof  (and not solely to the Non-Extending
Lenders).

    
      
         

      

      
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    (d)        Upon
the Extended Term Termination Date, the Commitments of the Extending Lenders and
the credit facility provided hereunder shall be terminated in full and the
Borrowers shall pay, in full and in cash, all outstanding Revolving Credit Loans
and all other outstanding Obligations then owing by them to the Extending
Lenders.

    

    (e)        In
addition to the Borrowers’ rights under Section 2.16(a), at any time after April
15, 2010, the Commitment of any applicable Non-Extending Lenders shall be
automatically terminated upon the repayment of the Obligations owed to such
Non-Extending Lender in accordance with the provisions of Section 2.16(b)
hereof.

    

    SECTION
2.16        Optional Prepayment of
Revolving Credit Loans; Reimbursement of Lenders.

    

    (a)        The
Borrowers shall have the right at any time and from time to time to prepay
without premium or penalty (but subject to payment of Breakage Costs as provided
herein) (without a commitment reduction) outstanding Revolving Credit Loans in
whole or in part, (x) with respect to LIBO Loans, upon at least two (2) Business
Days’ prior written, telex or facsimile notice to the Administrative Agent,
prior to 12:00 noon, and (y) with respect to Prime Rate Loans, on the same
Business Day if written, telex or facsimile notice is received by the
Administrative Agent prior to 12:00 noon, subject in each case to the following
limitations:

    

    (i)    
        Subject to SECTION 2.17, all
prepayments shall be paid to the Administrative Agent for application (except as
otherwise directed by the applicable Borrower), first, to the
prepayment of outstanding Swingline Loans, second, to the
prepayment of other outstanding Revolving Credit Loans ratably in accordance
with each Lender’s Commitment Percentage, and third, if a Specified
Default then exists, to the funding of a cash collateral deposit in the Cash
Collateral Account in an amount equal to 103% of all Letter of Credit
Outstandings;

    

    (ii)     
      Subject to the foregoing, outstanding Prime
Rate Loans of the Borrowers shall be prepaid before outstanding LIBO Loans of
the Borrowers are prepaid (except as otherwise directed by the Lead Borrower).
Each partial prepayment of LIBO Loans shall be in an integral multiple of
$1,000,000 (but in no event less than $10,000,000).  No prepayment of
LIBO Loans shall be permitted pursuant to this SECTION 2.16 other than on the
last day of an Interest Period applicable thereto, unless the Borrowers
reimburse  the Lenders for all Breakage Costs associated therewith
within five (5) Business Days of receiving a written demand for such
reimbursement which sets forth the calculation of such Breakage Costs in
reasonable detail.  No partial prepayment of a Borrowing of LIBO Loans
shall result in the aggregate principal amount of the LIBO Loans remaining
outstanding pursuant to such Borrowing being less than $5,000,000 (unless all
such outstanding LIBO Loans are being prepaid in full); and

    

    (iii)     
     Each notice of prepayment shall specify the
prepayment date, the principal amount and Type of the Revolving Credit Loans to
be prepaid and, in the case of LIBO Loans, the Borrowing or Borrowings pursuant
to which such Revolving Credit Loans were made.  Each notice of
prepayment shall be revocable, provided that, within five (5) Business Days of
receiving a written demand for such reimbursement which sets forth the
calculation of such Breakage Costs in reasonable detail, the Borrowers shall
reimburse the Lenders for all Breakage Costs associated with the revocation of
any notice of prepayment.  The Administrative Agent shall, promptly
after receiving notice from the Lead Borrower hereunder, notify each applicable
Lender of the principal amount and Type of the Revolving Credit Loans held by
such Lender which are to be prepaid, the prepayment date and the manner of
application of the prepayment.

    
      
         

      

      
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    (b)        In
addition to the Borrowers’ rights under Section 2.16(a), as long as no Event of
Default then exists or would arise therefrom, at any time after April 15, 2010,
the Borrowers may, without penalty or premium and without regard to the
provisions of SECTION 2.21, not more than two (2) times in any calendar year,
prepay in whole or in part (a “Designated
Prepayment”), the Obligations owing to any one or more Non-Extending
Lender(s) who shall consent to such prepayment (the “Designated
Obligations”), subject to the following conditions:  (i) each
Designated Prepayment shall be upon notice given not later than 12:00 noon on
the date of such Designated Prepayment to the Administrative Agent stating the
proposed date and aggregate principal amount of the Designated Prepayment; (ii)
each Designated Prepayment shall repay the entire outstanding amount of all
Obligations held by the applicable Non-Extending Lender (including principal,
interest, fees, expense reimbursements and other amounts due under the Loan
Documents) at such discount to par as the Borrowers and such Non-Extending
Lender may agree; (iii) upon the making of any Designated Prepayment, the
Commitment of the applicable Non-Extending Lender shall be terminated and the
Commitment Percentages of the remaining Lenders adjusted accordingly; provided that no such
prepayment shall be permitted unless the conditions set forth in SECTION 6.10(a)
shall be met as of the date of such prepayment.  Notwithstanding
anything to the contrary herein, prepayments made pursuant to the terms of this
SECTION 2.16(b) may be made to any Non-Extending Lender and the Commitments of
Non-Extending Lenders may be terminated without a pro rata repayment to, or
termination of the Commitments of, any other Lender.

    

    (c)        The
Borrowers shall reimburse each Lender as set forth below for any loss incurred
or to be incurred by the Lenders in the reemployment of the funds (i) resulting
from any prepayment (for any reason whatsoever, including, without limitation,
conversion to Prime Rate Loans or acceleration by virtue of, and after, the
occurrence and during the continuance of an Event of Default) of any LIBO Loan
required or permitted under this Agreement, if such Revolving Credit Loan is
prepaid other than on the last day of the Interest Period for such Revolving
Credit Loan or (ii) in the event that after the Lead Borrower delivers a notice
of borrowing under SECTION 2.04 in respect of LIBO Loans, such Revolving Credit
Loans are not made on the first day of the Interest Period specified in such
notice of borrowing for any reason other than a breach by such Lender of its
obligations hereunder or the delivery of any notice pursuant to SECTION 2.09,
SECTION 2.10 or SECTION 2.11, or (iii) in the event that after a Borrower
delivers a notice of commitment reduction under SECTION 2.15 or a notice of
prepayment under SECTION 2.16 in respect of LIBO Loans, such commitment
reductions or such prepayments are not made on the day specified in such notice
of reduction or prepayment.   Such loss shall be the amount
(herein, collectively, “Breakage Costs”) as
reasonably determined by such Lender as the excess, if any, of (A) the amount of
interest which would have accrued to such Lender on the amount so paid, not
prepaid or not borrowed at a rate of interest equal to the Adjusted LIBO Rate
for such Revolving Credit Loan (but specifically excluding any Applicable Margin
or Extended Term Applicable Margin, as the case may be), for the period from the
date of such payment or failure to borrow or failure to prepay to the last day
(x) in the case of a payment or refinancing of a LIBO Loan with Prime Rate Loans
other than on the last day of the Interest Period for such Revolving Credit Loan
or the failure to prepay a LIBO Loan, of the then current Interest Period for
such Revolving Credit Loan or (y) in the case of such failure to borrow, of the
Interest Period for such LIBO Loan which would have commenced on the date of
such failure to borrow, over (B) the amount of interest which would have accrued
to such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the London interbank market.  Any Lender
demanding reimbursement for such loss shall deliver to the Lead Borrower from
time to time one or more certificates setting forth the amount of such loss as
determined by such Lender and setting forth in reasonable detail the manner in
which such amount was determined and such amounts shall be due within ten (10)
Business Days after the receipt of such notice.

    
      
         

      

      
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    (d)        In
the event the Borrowers fail to prepay any Revolving Credit Loan on the date
specified in any prepayment notice delivered pursuant to SECTION 2.16(a)
(whether or not such prepayment notice is revoked), the Borrowers, within five
(5) Business Days after the receipt of the notice described below from any
Lender, shall pay to the Administrative Agent, for the account of such Lender,
without duplication of any Breakage Costs otherwise due, any amounts required to
compensate such Lender for any loss incurred by such Lender as a result of such
failure to prepay, including, without limitation, any loss, cost or expenses
(other than loss of profits) incurred by reason of the acquisition of deposits
or other funds by such Lender to fulfill deposit obligations incurred in
anticipation of such prepayment. Any Lender demanding such payment shall deliver
to the Lead Borrower, from time to time, one or more certificates setting forth
the amount of such loss as determined by such Lender and setting forth in
reasonable detail the manner in which such amount was determined and such
amounts shall be due within ten (10) Business Days after the receipt of such
notice.

    

    (e)        Whenever
any partial prepayment of Revolving Credit Loans are to be applied to LIBO
Loans, such LIBO Loans shall be prepaid in the chronological order of their
Interest Payment Dates or as the Lead Borrower may otherwise designate in
writing.

    

    SECTION
2.17        Mandatory Prepayment;
Commitment Termination; Cash Collateral.

    

    The
outstanding Obligations shall be subject to prepayment as follows:

    

    (a)           
If at any time the amount of the Credit Extensions by the Lenders causes
Availability to be less than zero, the Borrowers will, immediately upon notice
from the Administrative Agent: (x) prepay the Revolving Credit Loans in an
amount necessary to eliminate such deficiency; and (y) if, after giving effect
to the prepayment in full of all outstanding Revolving Credit Loans such
deficiency has not been eliminated, deposit cash into the Cash Collateral
Account in an amount equal to 103% of the Letters of Credit
Outstanding.

    

    (b)           
The Revolving Credit Loans shall be repaid daily in accordance with (and to the
extent required under) the provisions of SECTION 2.18, to the extent then
applicable.

    

    (c)           
Any Net Proceeds received from a Prepayment Event (other than Excluded Net
Proceeds), whether or not a Cash Dominion Event then exists, shall be paid over
to the Administrative Agent on receipt by the Loan Parties and shall be utilized
to prepay the Revolving Credit Loans in the order of priority set forth in
SECTION 7.03.  The Agents shall not be obligated to release their
Liens on any Collateral included in such Prepayment Event until such Net
Proceeds have been so received (to the extent required in this clause
(c)).  The application of such Net Proceeds to the Revolving Credit
Loans shall not reduce the Commitments.  If all Obligations then due
are paid, any excess Net Proceeds shall be remitted to the operating account of
the Borrowers maintained with the Administrative Agent.

    
      
         

      

      
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    (d)   
        Except as set forth in SECTION
2.17(c) and except during the continuance of a Cash Dominion Event, any Net
Proceeds, Cash Receipts and other payments received by the Administrative Agent
shall be applied as the Lead Borrower shall direct the Administrative Agent in
writing.

    

    (e)     
      The Borrowers shall prepay the Obligations
as required pursuant to SECTION 2.15 (c) and SECTION 2.15(d).

    

    (f)     
       Subject to the foregoing, outstanding
Prime Rate Loans shall be prepaid before outstanding LIBO Loans are
prepaid.  No prepayment of LIBO Loans shall be permitted pursuant to
this SECTION 2.17 other than on the last day of an Interest Period applicable
thereto, unless the Borrowers reimburse the Lenders for all Breakage Costs
associated therewith within five (5) Business Days of receiving a written demand
for such reimbursement which sets forth the calculation of such Breakage Costs
in reasonable detail.  In order to avoid such Breakage Costs, as long
as no Specified Default has occurred and is continuing, at the request of the
Lead Borrower, the Administrative Agent shall hold all amounts required to be
applied to LIBO Loans in the Cash Collateral Account and will apply such funds
to the applicable LIBO Loans at the end of the then pending Interest Period
therefor (provided
that the foregoing shall in no way limit or restrict the Agents’ rights
upon the occurrence and during the continuance of any other Event of
Default).  No partial prepayment of a Borrowing of LIBO Loans shall
result in the aggregate principal amount of the LIBO Loans remaining outstanding
pursuant to such Borrowing being less than $10,000,000.  A prepayment
of the Revolving Credit Loans pursuant to SECTION 2.16 (other than pursuant to
SECTION 2.16(b)) or SECTION 2.17 shall not permanently reduce the Total
Commitments.

    

    (g)    
       All credits against the Obligations
shall be conditioned upon final payment to the Administrative Agent of the items
giving rise to such credits. If any item credited to the Loan Account is
dishonored or returned unpaid for any reason, whether or not such return is
rightful or timely, the Administrative Agent shall have the right to reverse
such credit and charge the amount of such item to the Loan Account and the
Borrowers shall indemnify the Secured Parties against all claims and actual
losses resulting from such dishonor or return.

    

    SECTION
2.18        Cash
Management.

    

    (a)        Within
thirty (30) days of the occurrence of Specified Default, or immediately upon the
occurrence of any other Cash Dominion Event, the Borrowers, upon the request of
any Agent, shall deliver to the Agents a schedule of all DDAs, that to the
knowledge of the Responsible Officers of the Loan Parties, are maintained by the
Loan Parties, which Schedule includes, with respect to each depository (i) the
name and address of such depository; (ii) the account number(s) maintained with
such depository; and (iii) a contact person at such depository.

    
      
         

      

      
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    (b)        Annexed
hereto as Schedule
2.18(b) is a list describing, as of the Effective Date, all arrangements
to which any Loan Party is a party with respect to the payment to such Loan
Party of the proceeds of all credit card charges for sales by such Loan
Party.

    

    (c)        On
or prior to the Effective Date, to the extent not previously delivered, each
Loan Party shall:

    

    (i)       
     deliver to the Collateral Agent notifications
(each, a “Credit Card
Notification”) substantially in the form attached hereto as Exhibit G which have
been executed on behalf of such Loan Party and addressed to such Loan Party’s
credit card clearinghouses and processors listed on Schedule 2.18(b);
and

    

    (ii)        
   enter into a blocked account agreement (each, a “Blocked Account
Agreement”), reasonably satisfactory  to the Agents, with any
Blocked Account Bank, including, without limitation, with respect to the deposit
accounts existing as of the Effective Date listed on Schedule 2.18(c)
attached hereto (collectively, the “Blocked
Accounts”).

    

    (d)        Each
Credit Card Notification and Blocked Account Agreement shall require, during the
continuance of a Cash Dominion Event (and delivery of notice thereof from the
Collateral Agent), the ACH or wire transfer on each Business Day (and whether or
not there is then an outstanding balance in the Loan Account) of all available
cash receipts (the “Cash Receipts”) to
the concentration account maintained by the Administrative Agent at Bank of
America (the “Concentration
Account”), from:

    

    (i)      
      the sale of Inventory and other Collateral
(whether or not constituting a Prepayment Event);

    

    (ii)       
    all proceeds of collections of Accounts (whether or not
constituting a Prepayment Event);

    

    (iii)       
   all Net Proceeds on account of any Prepayment Event (other
than, until the Term Loan Financing Facility is repaid in full, a Prepayment
Event arising in connection with the Term Loan Priority
Collateral);

    

    (iv)        
  each Blocked Account (including all cash deposited therein from each
DDA; and

    

    (v)          
 the cash proceeds of all credit card charges.

    

    (e)      
     If, at any time during the continuance of a Cash
Dominion Event, any cash or cash equivalents owned by any Loan Party (other than
petty cash accounts funded in the ordinary course of business, the deposits in
which shall not aggregate more than $3,000,000 or exceed $10,000 with respect to
any one account (or in each case, such greater amounts to which the
Administrative Agent may agree), and payroll, trust and tax withholding accounts
funded in the ordinary course of business and required by Applicable Law) are
deposited to any account, or held or invested in any manner, otherwise than in a
Blocked Account that is subject to a Blocked Account Agreement (or a DDA which
is swept daily to a Blocked Account), the Collateral Agent may require the
applicable Loan Party to close such account and have all funds therein
transferred to a Blocked Account, and all future deposits made to a Blocked
Account which is subject to a Blocked Account Agreement.  In addition
to the foregoing, during the continuance of a Cash Dominion Event, the Loan
Parties shall provide the Collateral Agent with an accounting of the contents of
the Blocked Accounts, which shall identify, to the satisfaction of the
Collateral Agent, the proceeds from the Term Loan Priority Collateral which were
deposited into a Blocked Account and swept to the Concentration
Account.  Upon the receipt of (x) the contents of the Blocked
Accounts, and (y) such accounting, the Collateral Agent agrees to promptly remit
to the agent under the Term Loan Financing Facility the proceeds of the Term
Loan Priority Collateral received by the Administrative Agent.

    
      
         

      

      
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    (f)         The
Loan Parties may close DDAs or Blocked Accounts and/or open new DDAs or Blocked
Accounts, subject to the execution and delivery to the Collateral Agent of
appropriate Blocked Account Agreements (except with respect to any payroll,
trust and tax withholding accounts or unless expressly waived by the Collateral
Agent) consistent with the provisions of this SECTION 2.18 and otherwise
reasonably satisfactory to the Collateral Agent.  The Loan Parties
shall furnish the Collateral Agent with prior written notice of their intention
to open or close a Blocked Account and the Collateral Agent shall promptly
notify the Lead Borrower as to whether the Collateral Agent shall require a
Blocked Account Agreement with the Person with whom such account will be
maintained. Unless consented to in writing by the Collateral Agent, the
Borrowers shall not enter into any agreements with credit card processors other
than the ones expressly contemplated herein unless contemporaneously therewith,
a Credit Card Notification, is executed and delivered to the Collateral
Agent.

    

    (g)        The
Borrowers may also maintain one or more disbursement accounts (the “Disbursement
Accounts”) to be used by the Borrowers for disbursements and payments
(including payroll) in the ordinary course of business or as otherwise permitted
hereunder.

    

    (h)        The
Concentration Account shall at all times be under the sole dominion and control
of the Collateral Agent.  Each Borrower hereby acknowledges and agrees
that (i) such Borrower has no right of withdrawal from the Concentration
Account, (ii) the funds on deposit in the Concentration Account shall at all
times continue to be collateral security for all of the Obligations, and (iii)
the funds on deposit in the Concentration Account shall be applied as provided
in this Agreement.  In the event that, notwithstanding the provisions
of this SECTION 2.18, during the continuation of a Cash Dominion Event, any
Borrower receives or otherwise has dominion and control of any such proceeds or
collections, such proceeds and collections shall be held in trust by such
Borrower for the Collateral Agent, shall not be commingled with any of such
Borrower’s other funds or deposited in any account of such Borrower and shall
promptly be deposited into the Concentration Account or dealt with in such other
fashion as such Borrower may be instructed by the Collateral
Agent.

    
      
         

      

      
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    (i)         Any
amounts received in the Concentration Account at any time when all of the
Obligations then due have been and remain fully repaid shall be remitted to the
operating account of the Borrowers maintained with the Administrative
Agent.

    

    (j)         The
Collateral Agent shall promptly (but in any event within one Business Day)
furnish written notice to each Person with whom a Blocked Account is maintained
of any termination of a Cash Dominion Event.

    

    (k)        The
following shall apply to deposits and payments under and pursuant to this
Agreement:

    

    (i)             Funds
shall be deemed to have been deposited to the Concentration Account on the
Business Day on which deposited, provided that such
deposit is available to the Administrative Agent by 4:00 p.m. on that Business
Day (except that if the Obligations are being paid in full, by 2:00 p.m. on that
Business Day);

    

    (ii)    
       Funds paid to the Administrative
Agent, other than by deposit to the Concentration Account, shall be deemed to
have been received on the Business Day when they are good and collected funds,
provided that
such payment is available to the Administrative Agent by 4:00 p.m. on that
Business Day (except that if the Obligations or are being paid in full, by 2:00
p.m. on that Business Day);

    

    (iii)    
      If a deposit to the Concentration Account or
payment is not available to the Administrative Agent until after 4:00 p.m. on a
Business Day, such deposit or payment shall be deemed to have been made at 9:00
a.m. on the then next Business Day;

    

    (iv)     
     If any item deposited to the Concentration Account
and credited to the Loan Account is dishonored or returned unpaid for any
reason, whether or not such return is rightful or timely, the Administrative
Agent shall have the right to reverse such credit and charge the amount of such
item to the applicable Loan Account and the Borrowers shall indemnify the
Secured Parties against all out-of-pocket claims and losses resulting from such
dishonor or return;

    

    (v)        
   All amounts received under this SECTION 2.18 shall be applied
in the manner set forth in SECTION 7.03.

    

    SECTION
2.19        Fees.

    

    (a)        The
Borrowers shall pay to the Agents and the Arrangers, for their respective
accounts, the fees set forth in the Fee Letter as and when payment of such fees
is due as therein set forth.

    

    (b)        The
Borrowers shall pay the Administrative Agent, for the account of the
Non-Extending Lenders, an aggregate fee (the “Unused Fee”) equal to
0.25% per annum (on the basis of actual days elapsed in a year of 365 or 366
days, as applicable) of the average daily balance of their respective Unused
Commitment, during the Fiscal Quarter just ended (or relevant period with
respect to the payment being made through the first Fiscal Quarter ending after
the Closing Date or on the Existing Termination Date).  The Unused Fee
shall be paid in arrears, on the first day of each Fiscal Quarter after the
execution of this Agreement and on the Existing Termination Date.  The
Administrative Agent shall pay the Unused Fee to the Non-Extending Lenders upon
the Administrative Agent’s receipt of the Unused Fee based upon their pro rata
share of an amount equal to the aggregate Unused Fee to all Non-Extending
Lenders.

    
      
         

      

      
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    (c)        The
Borrowers shall pay the Administrative Agent, for the account of the Extending
Lenders, an aggregate fee (the “Extended Term Unused
Fee”) equal to the percentages per annum set forth in the grid below (on
the basis of actual days elapsed in a year of 365 or 366 days, as applicable) of
the average daily balance of their respective Unused Commitment, during the
Fiscal Quarter just ended (or relevant period with respect to the payment being
made through the first Fiscal Quarter ending after the Effective Date or on the
Extended Term Termination Date):

    

    
      	
              Level

            	
              Average Daily Balance of Unused
      Commitment

            	
              Extended Term Unused Fee

            
	
              I

            	
              Less
      than or equal to 50% of the Total Commitments

            	
              0.50%

            
	
              II

            	
              Greater
      than 50% of the Total Commitments

            	
              0.75%

            

    

    

    

    The
Extended Term Unused Fee shall be paid in arrears, on the first day of each
Fiscal Quarter after the execution of this Agreement and on the Extended Term
Termination Date, provided that, if the Lead Borrower changes its Fiscal
Quarters in accordance with SECTION 6.11, such quarterly payments shall be due
on the dates such payments would have been due under this Agreement as in effect
on the Effective Date had such change in Fiscal Quarters not
occurred.  The Administrative Agent shall pay the Extended Term Unused
Fee to the Extending Lenders upon the Administrative Agent’s receipt of the
Extended Term Unused Fee based upon their pro rata share of an amount equal to
the aggregate Extended Term Unused Fee to all Extending Lenders.

    

    (d)        The
Borrowers shall pay the Administrative Agent, for the account of the Lenders, on
the first day of each Fiscal Quarter and on demand after the Applicable
Termination Date, in arrears, a fee calculated on the basis of a 365 or 366 day
year, as applicable and actual days elapsed (each, a “Letter of Credit
Fee”), equal to the following per annum percentages of the average face
amount of the following categories of Letters of Credit outstanding during the
three month period then ended:

    

    (i)    
        Standby Letters of Credit: (A)
for the account of each Non-Extending Lender in accordance with its Commitment
Percentage, at a per annum rate equal to the then Applicable Margin for LIBO
Loans, and (B) for the account of each Extending Lender in accordance with its
Commitment Percentage, at a per annum rate equal to the then Extended Term
Applicable Margin for LIBO Loans;

    
      
         

      

      
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    (ii)     
      Commercial Letters of Credit: (A) for the
account of each Non-Extending Lender in accordance with its Commitment
Percentage, at a per annum rate equal to fifty percent (50%) of the then
Applicable Margin for LIBO Loans, and (B) for the account of each Extending
Lender in accordance with its Commitment Percentage, at a rate per annum equal
to fifty percent (50%) of the then Extended Term Applicable Margin for LIBO
Loans;

    

    (iii)    
      After the occurrence and during the
continuance of a Specified Default, at any time that the Administrative Agent is
not holding in the Cash Collateral Account an amount in cash equal to 103% of
the Letter of Credit Outstandings, as of such date, plus accrued and
unpaid interest thereon, effective upon written notice from the Administrative
Agent (which notice may be given at the election of the Administrative Agent or
at the direction of the Required Lenders after the occurrence of any Specified
Default), the Letter of Credit Fee shall be increased, at the option of the
Administrative Agent or the Required Lenders, by an amount equal to two percent
(2%) per annum.

    

    (e)        The
Borrowers shall pay to each Issuing Bank, in addition to all Letter of Credit
Fees otherwise provided for herein, (i) the reasonable and customary fees and
charges of such Issuing Bank  in connection with the negotiation,
settlement and amendment of each Letter of Credit issued by such Issuing Bank,
and (ii) a fronting fee (each, a “Fronting Fee”) equal
to 1/8 of 1% on the aggregate Stated Amount of all Letters of
Credit.  Each such Fronting Fee shall be payable on the first day of
each Fiscal Quarter and on demand after the Extended Term Termination Date, in
arrears.

    

    (f)         All
fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for the account of the Administrative Agent and other
Credit Parties as provided herein. Once due, all fees shall be fully earned and
shall not be refundable under any circumstances.

    

    SECTION
2.20        Maintenance of Loan Account;
Statements of Account.

    

    (a)        The
Administrative Agent shall maintain an account on its books in the name of the
Borrowers (each, the “Loan Account”) which
will reflect (i) all Revolving Credit Loans and other advances made by the
Lenders to the Borrowers or for the Borrowers’ account, (ii) all Letter of
Credit Disbursements, fees and interest that have become payable as herein set
forth, and (iii) any and all other monetary Obligations that have become
payable.

    

    (b)        The
Loan Account will be credited with all amounts received by the Administrative
Agent from the Borrowers or from other Persons for the Borrowers’ account,
including all amounts received in the Concentration Account from the Blocked
Account Banks, and the amounts so credited shall be applied as set forth in and
to the extent required by SECTION 2.17 or 7.03, as applicable.  After
the end of each month, the Administrative Agent shall send to the Borrowers a
statement accounting for the charges (including interest), loans, advances and
other transactions occurring among and between the Administrative Agent, the
Lenders and the Borrowers during that month.  The monthly statements
shall, absent manifest error, be deemed presumptively correct.

    

    SECTION
2.21        Payments; Sharing of
Setoff.

    

    (a)        The
Borrowers shall make each payment required to be made hereunder or under any
other Loan Document (whether of principal, interest, fees or reimbursement of
drawings under Letters of Credit, of amounts payable under SECTIONS 2.14,
2.16(c), 2.23, 9.03 or otherwise) prior to 2:00 p.m. on the date when due, in
immediately available funds, without setoff or counterclaim.  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 its offices at 100 Federal
Street, Boston, Massachusetts, except payments to be made directly to each
Issuing Bank or Swingline Lender as expressly provided herein and except that
payments pursuant to SECTIONS 2.14, 2.16(c), 2.23 and 9.03 shall be made
directly to the Persons entitled thereto and payments pursuant to other Loan
Documents shall be made to the Persons specified therein.  The
Administrative Agent shall distribute any such payments to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan
Document shall be due on a day that is not a Business Day, except with respect
to LIBO Borrowings, the date for payment shall be extended to the next
succeeding Business Day, and, if any payment due with respect to LIBO Borrowings
shall be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, unless that succeeding Business
Day is in the next calendar month, in which event, the date of such payment
shall be on the last Business Day of subject calendar month, and, in the case of
any payment accruing interest, interest thereon shall be payable for the period
of such extension.

    
      
         

      

      
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    (b)        All
funds received by and available to the Administrative Agent to pay principal,
unreimbursed drawings under Letters of Credit, interest, fees and other amounts
then due hereunder, shall be applied in accordance with the provisions of
SECTION 2.17 or 7.03  ratably among the parties entitled thereto in
accordance with the amounts of principal, unreimbursed drawings under Letters of
Credit, interest, fees and other amounts then due to such respective parties.
For purposes of calculating interest due to a Lender, that Lender shall be
entitled to receive interest on the actual amount contributed by that Lender
towards the principal balance of the Revolving Credit Loans outstanding during
the applicable period covered by the interest payment made by the
Borrowers.  Any net principal reductions to the Revolving Credit Loans
received by the Administrative Agent in accordance with the Loan Documents
during such period shall not reduce such actual amount so contributed, for
purposes of calculation of interest due to that Lender, until the Administrative
Agent has distributed to the applicable Lender its Commitment Percentage
thereof.

    

    (c)        Unless
the Administrative Agent shall have received notice from the Lead Borrower prior
to the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Banks hereunder that the Borrowers will
not make such payment, the Administrative Agent may assume that the Borrowers
have made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or the applicable Issuing Bank,
as the case may be, the amount due. In such event, if the Borrowers have not in
fact made such payment, then each of the Lenders or the applicable 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 such 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 to the Administrative
Agent, at the Federal Funds Effective Rate.

    

    SECTION
2.22        Settlement Amongst
Lenders

    

    (a)        The
Swingline Lender may, at any time (but, in any event shall weekly, as provided
in SECTION 2.22(b)), on behalf of the Borrowers (which hereby authorize the
Swingline Lender to act on their behalf in that regard) request the
Administrative Agent to cause the Lenders to make a Revolving Credit Loan (which
shall be a Prime Rate Loan) in an amount equal to such Lender’s Commitment
Percentage of the outstanding amount of Swingline Loans made in accordance with
SECTION 2.06, which request may be made regardless of whether the conditions set
forth in Article IV have been satisfied. Upon such request, each Lender shall
make available to the Administrative Agent the proceeds of such Revolving Credit
Loan for the account of the Swingline Lender.  If the Swingline Lender
requires a Revolving Credit Loan to be made by the Lenders and the request
therefor is received prior to 12:00 Noon on a Business Day, such transfers shall
be made in immediately available funds no later than 3:00 p.m. that day; and, if
the request therefor is received after 12:00 Noon, then no later than 3:00 p.m.
on the next Business Day. The obligation of each such Lender to transfer such
funds is irrevocable, unconditional and without recourse to or warranty by the
Administrative Agent or the Swingline Lender.  If and to the extent
any Lender shall not have so made its transfer to the Administrative Agent, such
Lender agrees to pay to the Administrative Agent, forthwith on demand, such
amount, together with interest thereon, for each day from such date until the
date such amount is paid to the Administrative Agent, at the Federal Funds
Effective Rate.

    
      
         

      

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

    

    (c)        The
Administrative Agent shall deliver to each of the Lenders promptly after a
Settlement Date a summary statement of the amount of outstanding Revolving
Credit Loans (including Swingline Loans) for the period and the amount of
repayments received for the period.  As reflected on the summary
statement, (i) the Administrative Agent shall transfer to each Lender its
applicable Commitment Percentage of repayments, and (ii) each Lender shall
transfer to the Administrative Agent (as provided below) or the Administrative
Agent shall transfer to each Lender, such amounts as are necessary to insure
that, after giving effect to all such transfers, the amount of Revolving Credit
Loans made by each Lender with respect to Revolving Credit Loans to the
Borrowers (including Swingline Loans) shall be equal to such Lender’s applicable
Commitment Percentage of Revolving Credit Loans (including Swingline Loans)
outstanding as of such Settlement Date.  If the summary statement
requires transfers to be made to the Administrative Agent by the Lenders and is
received prior to 12:00 Noon on a Business Day, such transfers shall be made in
immediately available funds no later than 3:00 p.m. that day; and, if received
after 12:00 Noon, then no later than 3:00 p.m. on the next Business Day. The
obligation of each Lender to transfer such funds is irrevocable, unconditional
and without recourse to or warranty by the Administrative Agent.  If
and to the extent any Lender shall not have so made its transfer to the
Administrative Agent, such Lender agrees to pay to the Administrative Agent,
forthwith on demand such amount, together with interest thereon, for each day
from such date until the date such amount is paid to the Administrative Agent,
at the Federal Funds Effective Rate.

    
      
         

      

      
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    SECTION
2.23        Taxes.

    

    (a)        Any
and all payments by or on account of any obligation of the Loan Parties
hereunder or under any other Loan Document shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided, however, that if a
Loan Party or an Agent or a Lender shall be required to deduct or remit any such
Taxes from such payments, then (i) in the case of any Indemnified Taxes or Other
Taxes, the sum payable shall be increased as necessary so that after making all
required deductions or remittances for such Taxes (including deductions
applicable to additional sums payable under this SECTION 2.23) the applicable
Credit Party receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Loan Party shall make such deductions and
(iii) the Loan Party shall pay the full amount deducted to the relevant
Governmental Authority in accordance with Applicable Law.

    

    (b)        In
addition, the Loan Parties shall pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.

    

    (c)        The
Borrowers shall indemnify each Credit Party, within ten (10) days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid or payable by such Credit Party on or with respect to any payment by or on
account of any obligation of the Loan Parties hereunder or under any other Loan
Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this SECTION 2.23) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto;
provided that
if any Borrower reasonably believes that such Taxes were not correctly or
legally asserted, each Lender will use reasonable efforts to cooperate with such
Borrower to obtain a refund of such taxes so long as such efforts would not, in
the sole determination of such Lender, result in any additional costs, expenses
or risks or be otherwise disadvantageous to it; provided further,
that the Borrowers shall not be required to compensate any Lender pursuant to
this SECTION 2.23 for any amounts incurred in any fiscal year for which such
Lender is claiming compensation if such Lender does not furnish notice of such
claim within six (6) months from the end of such fiscal year; provided further, that if the
circumstances giving rise to such claim have a retroactive effect, then the
beginning of such six month period shall be extended to include such period of
retroactive effect. A certificate as to the amount of such payment or liability
delivered to the Lead Borrower by a Credit Party, or by the Administrative Agent
on its own behalf or on behalf of any other Credit Party, setting forth in
reasonable detail the manner in which such amount was determined, shall be
conclusive absent manifest error.

    

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

    

    (e)        Any
Foreign Lender that is entitled to an exemption from or reduction in United
States withholding tax shall deliver to the Lead Borrower and the Administrative
Agent two (2) copies of (i) either United States Internal Revenue Service Form
W-8BEN (claiming a treaty benefit) or Form W-8ECI, or any subsequent versions
thereof or successors thereto, or, (ii) in the case of a Foreign Lender claiming
exemption from or reduction in U.S. Federal withholding tax under Section 871(h)
or 881(c) of the Code with respect to payments of “portfolio interest”, a (A)
Form W-8BEN, or any subsequent versions thereof or successors thereto and (B) a
certificate representing that such Foreign Lender (1) is not a bank for purposes
of Section 881(c) of the Code, (2) is not a 10 percent shareholder (within the
meaning of Section 871(h)(3)(B) of the Code) of any Loan Party and (3) is not a
controlled foreign corporation related to the Loan Parties (within the meaning
of Section 864(d)(4) of the Code)), in all cases, properly completed and duly
executed by such Foreign Lender claiming, as applicable, complete exemption from
or reduced rate of, U.S. Federal withholding tax on payments by the Loan Parties
under this Agreement and the other Loan Documents, or in the case of a Foreign
Lender claiming exemption for “portfolio interest” certifying that it is not a
foreign corporation, partnership, estate or trust. Such forms shall be delivered
by each Foreign Lender on or before the date it becomes a party to this
Agreement (or, in the case of a transferee that is a participation holder, on or
before the date such participation holder becomes a transferee hereunder) and on
or before the date, if any, such Foreign Lender changes its applicable lending
office by designating a different lending office (a “New Lending
Office”).  In addition, each Foreign Lender shall deliver such
forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Foreign Lender.  Notwithstanding any other provision
of this SECTION 2.23(e), a Foreign Lender shall not be required to deliver any
form pursuant to this SECTION 2.23(e) that such Foreign Lender is not legally
able to deliver.

    
      
         

      

      
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    (f)         The
Borrowers shall not be required to indemnify any Foreign Lender or to pay any
additional amounts to any Foreign Lender in respect of U.S. Federal withholding
tax pursuant to paragraph (a) or (c) above to the extent that the obligation to
pay such additional amounts would not have arisen but for a failure by such
Foreign Lender to comply with the provisions of paragraph (e)
above.  Should a Lender become subject to Taxes because of its failure
to deliver a form required hereunder, the Loan Parties shall, at such Lender’s
expense, take such steps as such Lender shall reasonably request to assist such
Lender to recover such Taxes.

    

    (g)        If
any Loan Party shall be required pursuant to this SECTION 2.23 to pay any
additional amount to, or to indemnify, any Credit Party to the extent that such
Credit Party becomes subject to Taxes subsequent to the Closing Date (or, if
applicable, subsequent to the date such Person becomes a party to this
Agreement) as a result of any change in the circumstances of such Credit Party
(other than a change in Applicable Law), including without limitation a change
in the residence, place of incorporation, principal place of business of such
Credit Party or a change in the branch or lending office of such Credit Party,
as the case may be, such Credit Party shall use reasonable efforts to avoid or
minimize any amounts which might otherwise be payable pursuant to this SECTION
2.23(g); provided, however, that such
efforts shall not include the taking of any actions by such Credit Party that
would result in any tax, costs or other expense to such Credit Party (other than
a tax, cost or other expense for which such Credit Party shall have been
reimbursed or indemnified by the Loan Parties pursuant to this Agreement or
otherwise) or any action which would or might in the reasonable opinion of such
Credit Party have an adverse effect upon its business, operations or financial
condition or otherwise be disadvantageous to such Credit Party.

    

    (h)        If
any Lender is entitled to a reduction in (and not complete exemption from) the
applicable withholding tax, the Borrowers may withhold from any interest payment
to such Lender an amount equivalent to the applicable withholding tax after
taking into account such reduction.

    

    (i)         If
any Credit Party reasonably determines that it has actually and finally
realized, by reason of a refund, deduction or credit of any Taxes paid or
reimbursed by the Loan Parties pursuant to subsection (a) or (c) above in
respect of payments under the Loan Documents (which refund, deduction or credit
is provided by the jurisdiction imposing such Taxes), a current monetary benefit
that it would otherwise not have obtained and that would result in the total
payments under this SECTION 2.23 exceeding the amount needed to make such Credit
Party whole, such Credit Party shall pay to the Lead Borrower, with reasonable
promptness following the date upon which it actually realizes such benefit, an
amount equal to the amount of such refund, deduction or credit, net of all out
of pocket expenses incurred in securing such refund, deduction or
credit.  This SECTION 2.23(i) shall not be construed to require any
Credit Party to make available its tax returns (or any other confidential
information relating to its Taxes) to any Loan Party.

    
      
         

      

      
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    SECTION
2.24        Mitigation Obligations;
Replacement of Lenders.

    

    (a)        If
any Lender requests compensation under SECTION 2.14 or cannot make Revolving
Credit Loans under SECTION 2.11, or if the Borrowers are required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to SECTION 2.23, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its
Revolving Credit Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
reasonable judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to SECTION 2.14 or SECTION 2.23, as
the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense. The Borrowers hereby agree to pay all reasonable
costs and expenses incurred by any Lender in connection with any such
designation or assignment; provided, however, that the
Borrowers shall not be liable for such costs and expenses of a Lender requesting
compensation if (i) such Lender becomes a party to this Agreement on a date
after the Effective Date and (ii) the relevant Change in Law occurs on a date
prior to the date such Lender becomes a party hereto.

    

    (b)        If
any Lender requests compensation under SECTION 2.14 or cannot make Revolving
Credit Loans under SECTION 2.11 for thirty (30) consecutive days, or if any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to SECTION 2.23,
or if any Lender is a Delinquent Lender or otherwise defaults in its obligation
to fund Revolving Credit Loans hereunder, then the Borrowers may, at their sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in SECTION 9.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided, however,  that
(i) the Lead Borrower shall have received the prior written consent of the
Administrative Agent, the Issuing Banks and the Swingline Lender, which consent
shall not be unreasonably withheld, (ii) such Lender shall have received payment
of an amount equal to the outstanding principal of its Revolving Credit Loans
and participations in unreimbursed drawings under Letters of Credit and
Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrowers (in the case of all
other amounts) and (iii) in the case of any such assignment resulting from a
claim for compensation under SECTION 2.14 or payments required to be made
pursuant to SECTION 2.23, such assignment will result in a reduction in such
compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrowers to require such
assignment and delegation cease to apply.

    
      
         

      

      
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    SECTION
2.25        Designation of Lead Borrower
as Borrowers’ Agent.

    

    (a)        Each
Borrower hereby irrevocably designates and appoints the Lead Borrower as such
Borrower’s agent to obtain Revolving Credit Loans and Letters of Credit, the
proceeds of which shall be available to each Borrower for such uses as are
permitted under this Agreement.  As the disclosed principal for its
agent, each Borrower shall be obligated to the Administrative Agent and each
Lender on account of Revolving Credit Loans so made and Letters of Credit so
issued as if made directly by the Lenders to such Borrower, notwithstanding the
manner by which such Revolving Credit Loans and Letters of Credit are recorded
on the books and records of the Lead Borrower and of any other
Borrower.

    

    (b)        Each
Borrower represents to the Credit Parties that it is an integral part of a
consolidated enterprise, and that each Loan Party will receive direct and
indirect benefits from the availability of the joint credit facility provided
for herein, and from the ability to access the collective credit resources of
the consolidated enterprise which the Loan Parties comprise.  Each
Borrower recognizes that credit available to it hereunder is in excess of and on
better terms than it otherwise could obtain on and for its own account and that
one of the reasons therefor is its joining in the credit facility contemplated
herein with all other Borrowers.  Consequently, each Borrower hereby
assumes and agrees to discharge all Obligations of each of the other Borrowers
as if the Borrower which is so assuming and agreeing were each of the other
Borrowers.

    

    (c)        The
Lead  Borrower shall act as a conduit for each Borrower (including
itself, as a Borrower) on whose behalf the Lead  Borrower has
requested a Revolving Credit Loan.  None of the Agents nor any other
Credit Party shall have any obligation to see to the application of such
proceeds.

    

    (d)        The
authority of the Lead Borrower to request Revolving Credit Loans and Letters of
Credit on behalf of, and to bind, the Borrowers, shall continue unless and until
the Administrative Agent actually receives written notice of: (i) the
termination of such authority, and (ii) the subsequent appointment of a
successor Lead Borrower, which notice is signed by the respective Financial
Officers of each Borrower; and (iii) written notice from such successive Lead
Borrower accepting such appointment and acknowledging that from and after the
date of such appointment, the newly appointed Lead Borrower shall be bound by
the terms hereof, and that as used herein, the term “Lead Borrower” shall mean
and include the newly appointed Lead Borrower.

    

    SECTION
2.26        Security Interests in
Collateral.

    

    To secure
their Obligations under this Agreement and the other Loan Documents, the
Borrowers have granted (or shall grant) to the Collateral Agent, for its benefit
and the benefit of the other Secured Parties, a first-priority security interest
in (subject only to Permitted Encumbrances (x) having priority by operation of
Applicable Law on all Revolver Priority Collateral, or (y) in favor of the agent
under the Term Loan Financing on any Term Loan Priority Collateral), all of the
Collateral pursuant hereto and to the Security Documents, provided that the
Collateral shall secure amounts owing with respect to Cash Management Services
and the Other Liabilities of the Borrowers only to the extent provided in the
Security Documents.

    
      
         

      

      
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    SECTION
2.27        Provisions Relating to
Payments to Tranche A-1 Lenders and Non-Extending Lenders.

    

    Notwithstanding
anything to the contrary herein contained, (i) all amounts required to be paid
pursuant to SECTION 2.15(b) shall be applied ratably in accordance with each
Tranche A-1 Lender’s Tranche A-1 Commitment Percentage (as defined in the
Existing Credit Agreement) and (ii) all amounts required to be paid pursuant to
SECTION 2.15(c) shall be applied ratably in accordance with each Non-Extending
Lender’s Commitment Percentage.

    

    ARTICLE
III

    

    Representations and
Warranties

    

    To induce
the Credit Parties to make the Revolving Credit Loans and to issue Letters of
Credit, the Loan Parties executing this Agreement or a Joinder hereto, jointly
and severally, make the following representations and warranties to each Credit
Party with respect to each Loan Party on the Effective Date and on each other
date required by SECTION 4.02 hereof, in each case as of the date such
representation and warranty is made unless an earlier date is
specified:

    

    SECTION
3.01        Organization;
Powers.

    

    Each Loan
Party is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, has all requisite corporate or other
applicable entity power and authority to own its property and assets and to
carry on its business as now conducted, except, in each case, where the failure
to do so, or so possess, individually or in the aggregate would not reasonably
be expected to result in a Material Adverse Effect.  Each Loan Party
has all requisite organizational power and authority to execute and deliver and
perform all its obligations under all Loan Documents to which such Loan Party is
a party.  Each Loan Party is qualified to do business in, and is in
good standing (where such concept exists) in, every jurisdiction in which the
nature of its business or the ownership or leasing of its properties makes such
qualification necessary, except where the failure to be so qualified or in good
standing individually or in the aggregate would not reasonably be expected to
result in a Material Adverse Effect.  Schedule 3.01 annexed
hereto sets forth, as of the Effective Date, each Loan Party’s name as it
appears in official filings in its state of incorporation or organization, its
state of incorporation or organization, organization type, organization number,
if any, issued by its state of incorporation or organization, and its federal
employer identification number.

    

    SECTION
3.02        Authorization;
Enforceability.

    

    The
transactions contemplated hereby and by the other Loan Documents to be entered
into by each Loan Party are within such Loan Party’s corporate powers and have
been duly authorized by all necessary corporate, membership, partnership or
other necessary action. This Agreement has been duly executed and delivered by
each Loan Party that is a party hereto or thereto and constitutes, and each
other Loan Document to which any Loan Party is a party, when executed and
delivered by such Loan Party will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at
law.

    
      
         

      

      
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    SECTION
3.03        Governmental and Other
Approvals; No Conflicts.

    

    The
transactions to be entered into and contemplated by the Loan Documents (a) do
not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except for (i) such as have been
obtained or made and are in full force and effect, (ii) filings and recordings
necessary to perfect Liens created under the Loan Documents and enforce the
rights of the Lenders and the Secured Parties under the Loan Documents or (iii)
the failure of which to obtain would not reasonably be expected to result in a
Material Adverse Effect, (b) will not violate any Applicable Law (except to the
extent that such violation would not reasonably be expected to result in a
Material Adverse Effect) or the Charter Documents of any Loan Party, (c) do not
violate or result in a default (with due notice, lapse of grace period or both)
under any indenture or any other agreement, instrument or other evidence of
Material Indebtedness, except to the extent that such default would not
reasonably be expected to result in a Material Adverse Effect, and (d) will not
result in the creation or imposition of any Lien on any asset of any Loan Party,
except Liens created under the Loan Documents and Permitted
Encumbrances.

    

    SECTION
3.04        Financial
Condition.

    

    The Lead
Borrower has heretofore furnished to the Agents the Consolidated balance sheet,
and statements of operations, stockholders’ equity, and cash flows for the Lead
Borrower and its Subsidiaries (i) as of and for the Fiscal Year ended May 30,
2009, audited by Deloitte & Touche LLP, independent public accountants, and
(ii) as of and for the Fiscal Quarter ended August 29, 2009, certified by a
Financial Officer of the Lead Borrower.  Such financial statements
present fairly, in all material respects, the financial position, results of
operations and cash flows of the Lead Borrower and its Subsidiaries as of such
dates and for such periods in accordance with GAAP, subject to year end audit
adjustments and the absence of footnotes. Since August 29, 2009, there has been
no event, change, condition or development that has had or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect.

    

    SECTION
3.05        Properties.

    

    (a)        Except
as disclosed on Schedule 3.05(a),
each Loan Party has title to, or valid leasehold interests in or right to use,
all its real and personal property material to its business, except for defects
which would not reasonably be expected to have a Material Adverse
Effect.

    

    (b)        Schedule 3.05(b) sets
forth with respect to each Loan Party a list of all registrations and issuances
of the Intellectual Property owned by such Loan Party and all applications for
the registrations or issuance thereof.  To the knowledge of each Loan
Party, each such registration, issuance and application that is material to the
business of such Loan Party is subsisting.  To the knowledge of each
Loan Party, the Intellectual Property owned by each Loan Party is valid and
enforceable, and no proceeding is pending challenging the ownership,
registration, validity, enforceability or use of any item of Intellectual
Property.  Each Loan Party owns or is licensed to use, all
Intellectual Property used in its business, except to the extent that the
failure to so own or have the right to use would not reasonably be expected to
have a Material Adverse Effect, and each Loan Party’s use of Intellectual
Property owned by such Loan Party does not infringe upon, misappropriate, dilute
or otherwise violate the rights of any other Person, except for any such
infringements, misappropriations, dilutions or other violations that,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect.  No proceeding is pending (or to the
knowledge of each Loan Party, threatened) in which any Person is alleging that a
Loan Party is infringing, misappropriating, diluting, or otherwise violating the
Intellectual Property rights of any Person in any material
respect.

    
      
         

      

      
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    (c)        Schedule 3.05(c)(i)
sets forth the address (including county) of all Real Estate that is owned by
the Loan Parties as of the Effective Date.  Schedule 3.05(c)(ii)
sets forth the address (including county) of all Real Estate that is leased by
the Loan Parties as of the Effective Date.  Except as would not
reasonably be expected to result in a Material Adverse Effect, to the knowledge
of the Responsible Officers of the Loan Parties each of such Leases is in full
force and effect and the Loan Parties are not in default of the terms
thereof.

    

    SECTION
3.06        Litigation and Environmental
Matters.

    

    (a)        Except
as set forth on Schedule 3.06(a),
there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the actual knowledge of
Responsible Officers of a Loan Party, threatened in writing against or affecting
any Loan Party (i) as to which there is a reasonable expectation of an adverse
determination which, if adversely determined, would reasonably be expected
individually or in the aggregate to result in a Material Adverse Effect (other
than Disclosed Matters) or (ii) that involve any of the Loan
Documents.

    

    (b)        Except
as set forth on Schedule 3.06(b), no
Loan Party (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 subject to any Environmental Liability, (iii)
has received written notice of any actual or potential claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability, which, in each case, individually or in the aggregate, would
reasonably be expected  to result in a Material Adverse
Effect.

    

    (c)        Except
as set forth on Schedule 3.06(c), to
the knowledge of the Loan Parties, no Real Estate or facility owned, operated or
leased by any Loan Party is listed or proposed for listing on the National
Priorities List promulgated pursuant to CERCLA or similar state “Superfund” list
except to the extent that such filings, individually or in the aggregate, would
not reasonably be expected  to result in a Material Adverse
Effect.

    

    (d)        Except
as set forth on Schedule 3.06(d), no
Lien has been recorded or, to the knowledge of any Loan Party, threatened under
any Environmental Law with respect to any Real Estate of the Loan
Parties.

    

    (e)        The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby will not require any notification,
registration, filing, reporting, disclosure, investigation, remediation or
cleanup pursuant to any Governmental Real Estate Disclosure Requirements or any
other applicable Environmental Law, except for any requirement the noncompliance
with which could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

    
      
         

      

      
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    (f)         The
Lead Borrower has made available to the Agents and the Lenders all material
documents, studies, and reports in the possession, custody or control of the
Borrowers concerning compliance with or liability under Environmental Law,
including those concerning the actual or suspected existence of Hazardous
Material at Real Estate or facilities currently or formerly owned, operated,
leased or used by the Borrowers.

    

    (g)        Since
the Effective Date, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or would
reasonably be expected to result in, a Material Adverse Effect.

    

    SECTION
3.07        Compliance with Laws and
Agreements.

    

    Each Loan
Party is in compliance with all Applicable Law and all Material Indebtedness,
and no event of default has occurred and is continuing thereunder, except in
each case where the failure to comply or the existence of a default,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect.  Without limiting the generality of the
foregoing, each Loan Party has obtained all permits, licenses and other
authorizations which are required with respect to the ownership and operations
of its business, except where the failure to obtain such permits, licenses or
other authorizations, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.  Each Loan Party is in
compliance with all terms and conditions of all such permits, licenses, orders
and authorizations, except where the failure to comply with such terms or
conditions, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect.

    

    SECTION
3.08        Investment Company
Status.

    

    No Loan
Party is an “investment company” as defined in, and subject to regulation under,
the Investment Company Act of 1940, as amended.

    

    SECTION
3.09        Taxes.

    

    Since the
Closing Date, each Loan Party has timely filed or caused to be filed all tax
returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings, for which such Loan Party
has set aside on its books adequate reserves in accordance with GAAP, and as to
which no Lien has arisen or (b) to the extent that the failure to do so would
not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

    

    SECTION
3.10        ERISA.

    

    Except as
would not reasonably be expected to result in a Material Adverse Effect: (i) the
Loan Parties and their ERISA Affiliates are in compliance with the applicable
provisions of ERISA and the Code with respect to each Plan; and (ii) each Plan
which is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the Internal Revenue Service and nothing has
occurred subsequent to the issuance of such determination letter which would
cause such Plan to lose its qualified status.  Since the Effective
Date, 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, would reasonably be expected to result in a
Material Adverse Effect, except as set forth on Schedule 3.10. The
present value of all accumulated benefit obligations under each Plan subject to
ERISA (based on the assumptions used for purposes of the most recent actuarial
report prepared by such Plan’s actuaries) 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 by an amount that would reasonably be expected
to result in a Material Adverse Effect.

    
      
         

      

      
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    SECTION
3.11        Disclosure.

    

    None of
the reports, financial statements, certificates or other information (other than
any projections, pro formas, budgets and general market information) concerning
the Loan Parties furnished by or on at the direction of any Loan Party to any
Credit Party in connection with the negotiation of this Agreement or any other
Loan Document or delivered hereunder or thereunder (as modified or supplemented
by other information so furnished), when taken as a whole, contains, as of the
date furnished, any material misstatement of fact or omits to state any material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not materially misleading in light of the
circumstances under which such statements were made.

    

    SECTION
3.12        Subsidiaries.

    

    (a)        Schedule 3.12 sets
forth the name of, and the ownership interest of each Loan Party in, each
Subsidiary as of the Effective Date; there is no other Capital Stock of any
class outstanding as of the Effective Date.  To the knowledge of the
Loan Parties, all such shares of Capital Stock as of the Effective Date are
validly issued, fully paid, and, with respect to corporate shares,
non-assessable.

    

    (b)        Except
as set forth on Schedule 3.12, no
Loan Party is party to any joint venture, general or limited partnership, or
limited liability company agreements as of the Effective Date.

    

    SECTION
3.13        Insurance.

    

    Schedule 3.13 sets
forth a description of all business interruption, general liability, directors
and officers liability, comprehensive, casualty and other insurance maintained
by or on behalf of the Loan Parties as of the Effective Date. Each insurance
policy listed on Schedule 3.13 is in
full force and effect as of the Effective Date and all premiums in respect
thereof that are due and payable as of the Effective Date have been paid and
such insurance is in such amounts and covering such risks and liabilities (and
with such deductibles, retentions and exclusions) as are in accordance with
normal and prudent industry practice.  As of the Effective Date, none
of the Parent or any of its Subsidiaries (a) has received notice from any
insurer (or any agent thereof) that substantial capital improvements or other
substantial expenditures will have to be made in order to continue such
insurance or (b) has any reason to believe that it will not be able to renew its
existing coverage as and when such coverage expires or to obtain similar
coverage from similar insurers at a substantially similar cost.

    
      
         

      

      
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    SECTION
3.14        Labor
Matters.

    

    As of the
Effective Date, there are no strikes, lockouts or slowdowns against any Loan
Party pending or, to the actual knowledge of any Responsible Officer of any Loan
Party, threatened, except to the extent that strikes, lockouts or slowdowns
would not reasonably be expected to result in a Material Adverse Affect. The
hours worked by and payments made to employees of the Loan Parties have not been
in violation of the Fair Labor Standards Act or any other applicable federal,
state, local or foreign law dealing with such matters to the extent that any
such violation could reasonably be expected to have a Material Adverse Effect.
Except for Disclosed Matters and to the extent that such liability would not
reasonably be expected to have a Material Adverse Effect, all payments due from
any Loan Party, or for which any claim may be made against any Loan Party, on
account of wages and employee health and welfare insurance and other benefits,
have been paid or accrued in accordance with GAAP as a liability on the books of
such Loan Party. Except as set forth on Schedule 3.14, as of
the Effective Date no Loan Party is a party to or bound by any material
collective bargaining agreement, bonus, restricted stock, stock option, or stock
appreciation plan or agreement or any similar plan, agreement or arrangement. As
of the Effective Date, there are no representation proceedings pending or, to
the actual knowledge of any Responsible Officer of any Loan Party, threatened to
be filed with the National Labor Relations Board or other applicable
Governmental Authority, and no labor organization or group of employees of any
Loan Party has made a pending demand in writing for recognition. As of the
Effective Date, the consummation of the transactions contemplated by the Loan
Documents will not give rise to any right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement
to which any Loan Party is bound to the extent that such would be reasonably
expected to result in a Material Adverse Effect.

    

    SECTION
3.15        Security
Documents.

    

    The
Security Documents create in favor of the Collateral Agent, for the benefit of
the Collateral Agent and the other Secured Parties, a legal, valid and
enforceable security or mortgage interests in the Collateral (subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law),
and the Security Documents constitute, or will upon the filing of financing
statements or other instruments within the time periods prescribed under
Applicable Law and/or the obtaining of “control”, in each case with respect to
the relevant Collateral as required under the applicable Uniform Commercial Code
or similar legislation of any jurisdiction, to the extent security interests in
such Collateral can be perfected by such filings or control, the creation of a
fully perfected and opposable first priority Lien on, and security interest in,
all right, title and interest of the Loan Parties thereunder in such Collateral
(to the extent required under the Security Documents), in each case prior and
superior in right to any other Person, except for Permitted Encumbrances (x)
having priority by operation of Applicable Law on all Revolver Priority
Collateral, or (y) in favor of the agent under the Term Loan Financing on any
Term Loan Priority Collateral.

    
      
         

      

      
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    SECTION
3.16        Federal Reserve
Regulations.

    

    (a)        No
Loan Party is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of buying or carrying Margin
Stock.

    

    (b)        No
part of the proceeds of any Revolving Credit Loan or any Letter of Credit will
be used, whether directly or indirectly, and whether immediately, incidentally
or ultimately, (i) to buy or carry Margin Stock or to extend credit to others
for the purpose of buying or carrying Margin Stock or to refund indebtedness
originally incurred for such purpose in violation of Regulation U or X or (ii)
for any purpose that entails a violation of, or that is inconsistent with, the
provisions of the Regulations of the Board, including Regulation U or Regulation
X.

    

    SECTION
3.17        Solvency.

    

    The Loan
Parties, on a Consolidated basis, are Solvent. No transfer of property is being
made by any Loan Party and no obligation is being incurred by any Loan Party in
connection with the transactions contemplated by this Agreement or the other
Loan Documents with the intent to hinder, delay, or defraud either present or
future creditors of any Loan Party.

    

    ARTICLE
IV

    

    Conditions

    

    SECTION
4.01        Effective
Date.

    

    The
effectiveness of this Agreement is subject to the satisfaction by the Loan
Parties or the waiver of each of the following conditions
precedent:

    

    (a)      
     The Agents (or their counsel) shall have received
from each Loan Party and the Required Lenders either (i) a counterpart of this
Agreement and all other Loan Documents signed on behalf of each such party or
(ii) written evidence satisfactory to the Agents (which may include telecopy
transmission or electronic pdf copy of a signed signature page of this
Agreement) that each such party has signed a counterpart of this Agreement and
all other Loan Documents.

    

    (b)        
   The Agents shall have received a written opinion (addressed to
each Agent and the Lenders and dated the Effective Date) of Kirkland & Ellis
LLP, counsel for the Loan Parties, covering such matters relating to the Loan
Parties, the Loan Documents or the transactions contemplated thereby as the
Agents shall reasonably request. The Loan Parties hereby request such counsel to
deliver such opinions.

    

    (c)           
The Agents shall have received Charter Documents and such other documents and
certificates as the Agents or their counsel may reasonably request relating to
the organization and existence of each Loan Party, the authorization of the
transactions contemplated by the Loan Documents and any other legal matters
relating to the Loan Parties, the Loan Documents or the transactions
contemplated thereby, all in form and substance reasonably satisfactory to the
Agents and their counsel.

    
      
         

      

      
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    (d)   
        The Administrative Agent shall
have received a Borrowing Base Certificate dated the Effective Date, relating to
the month ended on December 31, 2009, and executed by a Financial Officer of the
Lead Borrower.

    

    (e)     
      The Agents shall have received a
certificate, reasonably satisfactory in form and substance to the Agents,
certifying that, after giving effect to the consummation of the transactions
contemplated under this Agreement and the other Loan Documents as of the
Effective Date, no Default or Event of Default exists and the Loan Parties,
taken as a whole, are Solvent.

    

    (f)     
       All necessary governmental and
shareholder consents and approvals to the transactions contemplated hereby shall
have been obtained except for those that, individually or in the aggregate,
would not and would not reasonably be expected to have, a Material Adverse
Effect.

    

    (g)    
       No Material Adverse Effect shall have
occurred since August 29, 2009.

    

    (h)    
       All representations and warranties
contained in this Agreement and the other Loan Documents or otherwise made in
writing in connection herewith or therewith shall be true and correct in all
material respects, other than representations and warranties that relate solely
to an earlier date, and other than representations and warranties which are
qualified by “materiality” or “Material Adverse Effect”, each of which shall be
true and correct in all respects.

    

    (i)      
      There shall not be any other Material
Indebtedness of the Loan Parties outstanding immediately after the Effective
Date other than (i) the Senior Notes, (ii) the Term Loan Financing Facility,
(iii) the Holdco Notes, (iv) this Agreement, and (v) Permitted
Indebtedness.

    

    (j)      
      Lenders having Commitments aggregating at
least $600,000,000 shall have become Extending Lenders hereunder.

    

    (k)     
      The Collateral Agent shall have received
results of searches or other evidence reasonably satisfactory to the Collateral
Agent (in each case dated as of a date reasonably satisfactory to the Collateral
Agent) indicating the absence of Liens on the assets of the Loan Parties, except
for Permitted Encumbrances and Liens for which termination statements and
releases or subordination agreements are being tendered on the Effective
Date.

    

    (l)      
      The Agents shall have received, and be
reasonably satisfied with, evidence of the Loan Parties’ insurance, together
with such endorsements as are required by the Loan Documents.

    

    (m)    
      The Agents shall be reasonably satisfied
that all fees due at or immediately after the Effective Date and all Credit
Party Expenses incurred by in connection with the establishment of the credit
facility contemplated hereby (including the reasonable fees and expenses of
counsel to the Agents), shall be paid in full.

    
      
         

      

      
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    (n)       
    After giving effect to this Agreement and the
transactions contemplated hereby, no Default or Event of Default shall be
continuing.

    

    (o)      
     After giving effect to this Agreement and the
transactions contemplated hereby, Availability shall be not less than
$200,000,000.

    

    (p)      
     The Collateral Agent shall have received the
Security Documents and certificates evidencing any stock being pledged
thereunder, together with undated stock powers executed in blank, each duly
executed by the applicable Loan Parties.

    

    (q)            The
Collateral Agent shall have received (i) all documents and instruments,
including Uniform Commercial Code financing statements, required by law or
reasonably requested by the Collateral Agent to be filed, registered or recorded
to create or perfect in the United States the first priority Liens intended to
be created under the Loan Documents and all such documents and instruments shall
have been so filed, registered or recorded to the satisfaction of the Collateral
Agent and (ii) the Credit Card Notifications, and Blocked Account Agreements
required pursuant to SECTION 2.18 hereof.

    

    (r)      
      There shall have been delivered to the
Agents and the Arrangers all documentation and other information requested by
them that is required by regulatory authorities under applicable “know your
customer” and anti-money laundering rules and regulations, including the Act (as
defined in SECTION 9.16 below).

    

    (s)      
     To the extent not otherwise set forth in this
SECTION 4.01, there shall have been delivered to the Agents each of the
instruments, agreements, opinions, certificates and other documents identified
on the closing agenda attached hereto as Exhibit
J.

    

    SECTION
4.02        Conditions Precedent to Each
Revolving Credit Loan and Each Letter of Credit.

    

    The
obligation of the Lenders to make each Revolving Credit Loan and of the Issuing
Banks to issue each Letter of Credit after the Effective Date is also subject to
the satisfaction by the Loan Parties or the waiver of each of the following
conditions precedent:

    

    (a)            The
Administrative Agent shall have received a notice with respect to such Borrowing
or issuance, as the case may be, as required by Article II, and in the case of
the issuance of a Letter of Credit, the applicable Issuing Bank shall have
received notice with respect thereto in accordance with SECTION
2.13.

    

    (b)     
      All representations and warranties contained
in this Agreement and the other Loan Documents or otherwise made in writing in
connection herewith or therewith shall be true and correct in all material
respects on and as of the date of each Borrowing or the issuance of each Letter
of Credit hereunder with the same effect as if made on and as of such date,
other than representations and warranties that relate solely to an earlier date,
and other than representations and warranties which are qualified by
“materiality” or “Material Adverse Effect”, each of which shall be true and
correct in all respects.

    
      
         

      

      
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    (c)      
     On the date of each Borrowing hereunder and the
issuance of each Letter of Credit and after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing.

    

    The
request by the Lead Borrower for, and the acceptance by any Borrower of, each
extension of credit hereunder shall be deemed to be a representation and
warranty by the Loan Parties that the conditions specified in this SECTION 4.02
have been satisfied at that time and that after giving effect to such extension
of credit the Borrowers shall continue to be in compliance with the Borrowing
Base.  The conditions set forth in this SECTION 4.02 are for the sole
benefit of the Administrative Agent and each other Credit Party and may be
waived by the Administrative Agent, in whole or in part, without prejudice to
the rights of the Administrative Agent or any other Credit Party.

    

    ARTICLE
V

    

    Affirmative
Covenants

    

    Until (i)
the Commitments have expired or been terminated, (ii) the principal of and
interest on each Revolving Credit Loan and all fees and other Obligations (other
than contingent indemnity obligations with respect to then unasserted claims and
the Other Liabilities) shall have been paid in full, (iii) all Letters of Credit
shall have expired or terminated (or been cash collateralized in a manner
reasonably satisfactory to the applicable Issuing Bank) and (iv) all Letter of
Credit Outstandings have been reduced to zero (or cash collateralized in a
manner reasonably satisfactory to the applicable Issuing Bank), each Loan Party
covenants and agrees with the Credit Parties that:

    

    SECTION
5.01        Financial Statements and
Other Information.

    

    The Lead
Borrower will furnish to the Administrative Agent:

    

    (a)          
 Within ninety (90) days after the end of each Fiscal Year of Holdings, the
Consolidated balance sheet and related statements of operations, and
Consolidated statements of cash flows as of the end of and for such year for
Holdings and its Subsidiaries, setting forth in comparative form, the
Consolidated figures for the previous Fiscal Year and the figures as set forth
in the projections delivered pursuant to SECTION 5.01(e), all audited and
reported on by independent public accountants of recognized national standing
(without a “going concern” or like qualification or exception and without a
qualification or exception as to the scope of such audit), except for the
aforementioned projections, to the effect that such Consolidated financial
statements present fairly in all material respects the financial condition and
results of operations of the applicable Loan Parties and their Subsidiaries on a
Consolidated basis in accordance with GAAP;

    

    (b)           
Within forty-five (45) days after the end of each Fiscal Quarter of Holdings,
excluding the last Fiscal Quarter of each Fiscal Year of Holdings, the
Consolidated balance sheet and related statements of operations, and
Consolidated statements of cash flows for Holdings and its Subsidiaries as of
the end of and for such Fiscal Quarter and the elapsed portion of the Fiscal
Year, setting forth in each case, in comparative form the Consolidated figures
for the previous Fiscal Year and the figures as set forth in the projections
delivered pursuant to SECTION 5.01(e), all such Consolidated figures certified
by one of the Lead Borrower’s Financial Officers as fairly presenting in all
material respects the financial condition and results of operations of the Loan
Parties and their Subsidiaries on a Consolidated basis in accordance with GAAP,
subject to year end audit adjustments and the absence of
footnotes;

    
      
         

      

      
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    (c)     
      within thirty (30) days after the end of
each Fiscal Month of Holdings and its Subsidiaries, (i) internally prepared
monthly operating financial reports for Holdings and its Subsidiaries, as of the
end of and for such Fiscal Month and the elapsed portion of the Fiscal Year, all
certified by one of the Lead Borrower’s Financial Officers as, to such officer’s
knowledge, presenting in all material respects the financial condition and
results of operations of the Loan Parties and their Subsidiaries on a
Consolidated basis, and (ii) such reports as are prepared by the Loan Parties’
management for their own use, including the Consolidated balance sheet and
related statements of operations, and Consolidated statements of cash flows for
Holdings and its Subsidiaries, as of the end of and for such Fiscal Month and
the elapsed portion of the Fiscal Year, setting forth in each case, in
comparative form the Consolidated figures for the previous Fiscal Year and the
figures as set forth in the projections delivered pursuant to SECTION 5.01(e),
all certified by one of the Lead Borrower’s Financial Officers as fairly
presenting in all material respects the financial condition and results of
operations of the Loan Parties and their Subsidiaries on a Consolidated basis in
accordance with GAAP, subject to normal year end audit adjustments and the
absence of footnotes;

    

    (d)     
      Concurrently with any delivery of financial
statements under clause (a) or clause (b) above, a certificate of a Financial
Officer of the Lead Borrower in the form of Exhibit H hereto (a
“Compliance
Certificate”) (i) certifying as to whether a Default or Event of Default
has occurred and, if a Default or Event of Default has occurred, specifying the
details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations with respect to the
daily Availability and the Consolidated Fixed Charge Coverage Ratio for such
period, (iii) detailing all Store openings and Store closings during the
immediately preceding fiscal period, and stating the aggregate number of the
Loan Parties’ Stores as of the first day of the current fiscal period, and (iv)
stating whether any change in GAAP or in the application thereof has occurred
since the date of Holdings’ most recent audited financial statements and, if any
such change has occurred, specifying the effect of such change on the financial
statements accompanying such Compliance Certificate;

    

    (e)     
      Within sixty (60) days after the
commencement of each Fiscal Year of the Loan Parties, a detailed, Consolidated
budget by month for the applicable Fiscal Year for Holdings and its Subsidiaries
and including a projected Consolidated income statement, balance sheet, and
statement of cash flow, by month, and promptly when available, any revisions to
such budget resulting from any Permitted Acquisition, Permitted Disposition or
other transaction, the effect of which would reasonably be expected to change
the projected Consolidated EBITDA of the Loan Parties in the subsequent Fiscal
Year by 20% or more;

    
      
         

      

      
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    (f)        
    On the 10th
Business Day of each Fiscal Month (or more frequently as the Borrowers may
elect), a certificate in the form of Exhibit I (a “Borrowing Base
Certificate”) showing the Borrowing Base as of the close of business on
the immediately preceding Fiscal Month (or in the case of a voluntary delivery
of a Borrowing Base Certificate at the election of the Borrowers, a subsequent
date), each Borrowing Base Certificate to be certified as complete and correct
in all material respects on behalf of the Lead Borrower by a Financial Officer
of the Lead Borrower, provided that if
Availability is at any time less than the greater of (i) fifteen (15%) percent
of the lesser of (A) the then Borrowing Base or (B) the then Revolving Credit
Loan Ceiling and (ii) $65,000,000, in each case for five (5) consecutive
Business Days, such Borrowing Base Certificate shall be furnished on Wednesday
of each week (or, if Wednesday is not a Business Day, on the next succeeding
Business Day), as of the close of business on the immediately preceding
Saturday;

    

    (g)    
       Promptly after the same become
publicly available, copies of (i) all material periodic and other reports, proxy
statements and other materials filed by any Loan Party with the SEC, and (ii)
SEC Forms 10K and 10Q for the Parent and/or Holdings (for so long as the Parent
and/or Holdings is subject to the reporting requirements under the Securities
Exchange Act of 1934, as amended);

    

    (h)  
         Promptly upon receipt
thereof, copies of all material reports submitted to any Loan Party by
independent certified public accountants in connection with each annual or
special audit of the books of the Loan Parties or any of their Subsidiaries made
by such accountants, including any management letter commenting on the Loan
Parties’ internal controls submitted by such accountants to management in
connection with their annual audit;

    

    (i)      
      The financial and collateral reports
described on Schedule
5.01(i) hereto, at the times set forth in such Schedule
5.01(i);

    

    (j)       
     Prior to the occurrence of a Cash Dominion Event,
a detailed summary of the Net Proceeds received from any Prepayment Event
resulting in Net Proceeds in excess of $5,000,000, and after the occurrence of a
Cash Dominion Event, a detailed summary of all Net Proceeds received from any
Prepayment Event, in each case within five (5) Business Days after receipt of
such Net Proceeds other than from sales of Inventory in the ordinary course of
business; and

    

    (k)     
      Promptly following any reasonable request
therefor, such other information regarding the operations, business affairs and
financial condition of any Loan Party as the Agents or any Lender may reasonably
request (other than information which is subject to an attorney-client privilege
or would result in a breach of a confidentiality obligation of the Loan Parties
to any other Person).

    

    Documents
required to be delivered pursuant to SECTION 5.01 (to the extent any such
documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date on which such documents are posted on the Lead Borrower’s
behalf on IntraLinks/IntraAgency or another relevant website (the “Informational
Website”), if any, to which each Lender and the Administrative Agent have
unrestricted access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent); provided
that:  (A) the accommodation provided by the foregoing sentence
shall not impair the right of the Administrative Agent, or any Lender through
the Administrative Agent, to request and receive from the Borrowers physical
delivery of specific financial information provided for in this SECTION 5.01 and
(B) the Lead Borrower shall give the Administrative Agent and each Lender (or if
applicable, the Administrative Agent shall give each Lender) written or
electronic notice each time any information is delivered by posting to the
Informational Website.  The Credit Parties shall have no liability to
any Loan Party or any Credit Party associated with establishing and maintaining
the security and confidentiality of the Informational Website and the
information posted thereto.

    
      
         

      

      
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    SECTION
5.02        Notices of Material
Events.

    

    The Lead
Borrower will furnish to the Administrative Agent prompt written notice of the
occurrence of any of the following after any Responsible Officer of the Lead
Borrower obtains knowledge thereof:

    

    (a)           
A Default or Event of Default, specifying the nature and extent thereof and the
action (if any) which is proposed to be taken with respect thereto;

    

    (b)           
The filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting any Loan Party or any
Subsidiary of the Lead Borrower that, if adversely determined, would reasonably
be expected to result in a Material Adverse Effect;

    

    (c)           
The occurrence of an ERISA Event that, alone or together with any other ERISA
Events that have occurred, would reasonably be expected to result in a liability
to the Parent, any of its Subsidiaries or any of their respective ERISA
Affiliates in excess of $25,000,000 or would reasonably be expected to result in
a Material Adverse Effect;

    

    (d)           
Any development that results in a Material Adverse Effect;

    

    (e)           
Any change in any Loan Party’s chief executive officer or chief financial
officer;

    

    (f)            
Any material change in any Loan Party’s financial reporting
practices;

    

    (g)           
Any strikes, lockouts or slowdowns against any Loan Party which would reasonably
be expected to result in a Material Adverse Effect;

    

    (h)           
The filing of any Lien for unpaid Taxes against any Loan Party in excess of
$5,000,000;

    

    (i)            
The discharge by any Loan Party of its present independent accountants or any
withdrawal or resignation by such independent accountants; and

    
      
         

      

      
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    (j)      
      Any casualty or other insured damage to any
portion of the Collateral included in the Borrowing Base in excess of
$5,000,000, or the commencement of any action or proceeding for the taking of
any interest in a portion of the Collateral included in the Borrowing Base in
excess of $5,000,000 or any part thereof or interest therein under power of
eminent domain or by condemnation or similar proceeding.

    

    Each
notice delivered under this Section shall be accompanied by a statement of a
Financial Officer or other executive officer of the Lead Borrower setting forth
the details of the event or development requiring such notice and, if
applicable, any action taken or proposed to be taken with respect
thereto.

    

    SECTION
5.03        Information Regarding
Collateral.

    

    The Lead
Borrower will furnish to the Agents prompt written notice of any change in: (a)
any Loan Party’s name; (b) the location of any Loan Party’s chief executive
office or its principal place of business; (c) any Loan Party’s organizational
structure or jurisdiction of incorporation or formation; or (d) any Loan Party’s
Federal Taxpayer Identification Number or organizational identification number
assigned to it by its state of organization. The Loan Parties agree not to
effect or permit any change referred to in the preceding sentence unless all
filings, publications and registrations, have been made (or will be made in a
timely fashion) under the Uniform Commercial Code or other Applicable Law that
are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected first priority
security interest to the extent required under the Security Documents (subject
only to Permitted Encumbrances having priority by operation of Applicable Law)
in all the Collateral for its own benefit and the benefit of the other Secured
Parties.

    

    SECTION
5.04        Existence; Conduct of
Business.

    

    Each Loan
Party will do all things necessary to comply with its Charter Documents in all
material respects, and to obtain, preserve, renew and keep in full force and
effect its legal existence and the rights, licenses, permits, privileges,
franchises, patents, copyrights, trademarks and trade names material to the
conduct of its business, except to the extent that the failure to do so would
not reasonably be expected to have a Material Adverse Effect; provided, however,
that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under SECTION 6.03 or SECTION 6.05.

    

    SECTION
5.05        Payment of
Obligations.

    

    Each Loan
Party will pay its Taxes before the same shall become delinquent or in default,
except where (a) the validity or amount thereof is being contested in good faith
by appropriate proceedings and such Loan Party or such Subsidiary has set aside
on its books adequate reserves with respect thereto in accordance with GAAP, (b)
such contest effectively suspends collection of the contested obligation and
enforcement of any Lien securing such obligation, or (c) the failure to make
payment, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect.  The provisions of this paragraph
shall not limit or restrict the ability of the Agents to establish any Reserve
for any unpaid Tax liabilities.

    
      
         

      

      
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    SECTION
5.06        Maintenance of
Properties.

    

    Each Loan
Party will keep and maintain all tangible property material to the conduct of
its business in substantially the same condition as of the Effective Date
(ordinary wear and tear, casualty loss and condemnation excepted), except (a)
where the failure to do so would not reasonably be expected to result in a
Material Adverse Effect and (b) for Store closings and Permitted Dispositions
permitted hereunder.  Each Loan Party will use commercially reasonable
efforts to prosecute, maintain, and enforce the Intellectual Property, except to
the extent such Intellectual Property is no longer used or deemed by such Loan
Party in its reasonable business judgment to be useful in the conduct of the
business of the Loan Parties.

    

    SECTION
5.07        Insurance.

    

    (a)        Each
Loan Party shall (i) maintain insurance with financially sound and reputable
insurers (or, to the extent consistent with business practices in effect on the
Effective Date, a program of self-insurance) on such of its property and in at
least such amounts and against at least such risks as is consistent with
business practices in effect on the Effective Date or as otherwise determined by
the Responsible Officers of the Loan Parties acting reasonably in their business
judgment, including public liability insurance against claims for personal
injury or death occurring upon, in or about or in connection with the use of any
properties owned, occupied or controlled by it (including the insurance required
pursuant to the Security Documents); (ii) maintain such other insurance as may
be required by law; and (iii) furnish to the Agents, upon written request, full
information as to the insurance carried.

    

    (b)        Fire
and extended coverage policies maintained with respect to any Collateral shall
be endorsed or otherwise amended to include (i) a non-contributing mortgage
clause (regarding improvements to real property) and a lenders’ loss payable
clause (regarding personal property), in form and substance reasonably
satisfactory to the Agents, which endorsements or amendments shall provide that
the insurer shall pay all proceeds otherwise payable to the Loan Parties under
the policies directly to the Administrative Agent, (ii) a provision to the
effect that none of the Loan Parties, Credit Parties (in their capacity as such)
or any other Affiliate of a Loan Party shall be a co-insurer (the foregoing not
being deemed to limit the amount of self-insured retention or deductibles under
such policies, which self-insured retention or deductibles shall be consistent
with business practices in effect on the Effective Date or as otherwise
determined by the Responsible Officers of the Loan Parties acting reasonably in
their business judgment), and (iii) such other provisions as the Administrative
Agent may reasonably require from time to time to protect the interests of the
Secured Parties. Commercial general liability policies shall be endorsed to name
the Administrative Agent as an additional insured. Business interruption
policies shall name the Administrative Agent as a loss payee and shall be
endorsed or amended to include (i) a provision that, (A) prior to the occurrence
of a Cash Dominion Event, the insurer shall pay all proceeds of such business
interruption policies in excess of $30,000,000 otherwise payable to the Loan
Parties under the policies directly to the Administrative Agent, and (B) after
the occurrence and during the continuance of a Cash Dominion Event, the insurer
shall pay all proceeds of such business interruption policies otherwise payable
to the Loan Parties under the policies directly to the Administrative Agent,
(ii) a provision to the effect that none of the Loan Parties, Secured Parties
(in their capacity as such) or any other Affiliate of a Loan Party shall be a
co-insurer and (iii) such other provisions to the endorsement as the
Administrative Agent may reasonably require from time to time to protect the
interests of the Secured Parties. Each such casualty or liability policy
referred to in this SECTION 5.07(b) shall also provide that it shall not be
canceled, modified in any manner that would cause this SECTION 5.07 to be
violated, or not renewed (i) by reason of nonpayment of premium except upon not
less than thirty (30) days’ prior written notice thereof by the insurer to the
Administrative Agent (giving the Administrative Agent the right to cure defaults
in the payment of premiums) or (ii) for any other reason except upon not less
than thirty (30) days’ prior written notice thereof by the insurer to the
Administrative Agent. The Lead Borrower shall deliver to the Administrative
Agent, prior to the cancellation, modification or non-renewal of any such policy
of insurance, a copy of a renewal or replacement policy (or other evidence of
renewal of a policy previously delivered to the Administrative Agent, including
an insurance binder) together with evidence satisfactory to the Administrative
Agent of payment of the premium therefor.

    
      
         

      

      
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    (c)        The
Agents acknowledge that the insurance policies described on Schedule 3.13 are
satisfactory to them as of the Effective Date and are in compliance with the
provisions of this SECTION 5.07.

    

    SECTION
5.08        Books and Records;
Inspection and Audit Rights; Appraisals; Accountants.

    

    (a)        Each
Loan Party will keep proper books of record and account in accordance with GAAP
and in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. Each Loan Party will
permit any representatives designated by any Agent, upon reasonable prior
notice, to visit and inspect its properties, to discuss its affairs, finances
and condition with its officers and to examine and make extracts from its books
and records, all at such reasonable times and as often as reasonably
requested.

    

    (b)        Each
Loan Party will from time to time upon the request of any Agent, permit any
Agent or professionals (including consultants, accountants, lawyers and
appraisers) retained by the Agents, on reasonable prior notice and during normal
business hours, to conduct appraisals and commercial finance examinations,
including, without limitation, of (i) the Borrowers’ practices in the
computation of the Borrowing Base, and (ii) the assets included in the Borrowing
Base and related financial information such as, but not limited to, sales, gross
margins, payables, accruals and reserves.  Subject to the following
the Loan Parties shall pay the reasonable out-of-pocket fees and expenses of the
Agents or such professionals with respect to such evaluations and
appraisals.

    

    (i)      
      The Agents may conduct up to two (2)
commercial finance examinations in each calendar year, each at the Loan Parties’
expense; provided that, if Availability
at any time is less than the greater of (i) 15% of the lesser of (A) the then
Borrowing Base or (B) the then Revolving Credit Ceiling and (ii) $65,000,000, in
each case for five (5) consecutive Business Days, or a Specified Default has
occurred and is continuing, the Agents may conduct up to three (3) commercial
finance examinations in each calendar year, each at the Loan Parties’
expense.  Notwithstanding anything to the contrary contained herein,
the Agents (A) may undertake one additional commercial finance examination in
each calendar year at the sole expense of the Agents, and (B) after the
occurrence and during the continuance of any Specified Default, may cause such
additional commercial finance examinations to be taken as the Agents, in their
reasonable discretion, determine are necessary or appropriate (each, at the
expense of the Loan Parties).

    
      
         

      

      
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    (ii)    
       The Agents may conduct up to two (2)
appraisals of the Loan Parties’ Inventory in each calendar year, each at the
Loan Parties’ expense; provided that, if Availability
at any time is less than the greater of (i) 15% of the lesser of (A) the then
Borrowing Base or (B) the then Revolving Credit Ceiling and (ii) $65,000,000, in
each case for five (5) consecutive Business Days, or a Specified Default has
occurred and is continuing, the Agents may conduct up to three (3) appraisals of
the Loan Parties’ Inventory in each calendar year, each at the Loan Parties’
expense.  Notwithstanding anything to the contrary contained herein,
the Agents (A) may undertake one additional Inventory appraisal in each calendar
year at the sole expense of the Agents, and (B) after the occurrence and during
the continuance of any Specified Default, may cause such additional Inventory
appraisals to be taken as the Agents, in their reasonable discretion, determine
are necessary or appropriate (each, at the expense of the Loan
Parties).

    

    (iii)   
       The Agents may undertake appraisals of
other Collateral once in each twelve calendar month period (provided that the
Agents, in their reasonable discretion, if any Specified Default exists, may
cause such additional appraisals to be taken as the Agents reasonably determine
(each, at the expense of the Loan Parties)).

    

    (c)        The
Loan Parties shall at all times retain independent certified public accountants
of national standing and shall instruct such accountants to cooperate with, and
be available to, the Agents or their representatives to discuss the annual
audited statements, the Loan Parties’ financial performance, financial
condition, operating results, controls, and such other matters, within the scope
of the retention of such accountants for such audited statements, as may be
raised by the Agents; subject, however, if requested by such accountants, to the
execution of an access agreement by the Agents and such accountants in form
reasonably satisfactory to each of them; provided that a
representative of the Lead Borrower shall be given the opportunity to be present
all such discussions.

    

    (d)        At
its election, upon its reasonable belief that any Loan Party has breached any
representation, warranty or covenant herein relating to environmental matters in
any material respect, or in connection with the enforcement of remedies against
any Real Estate after the occurrence and during the continuance of an Event of
Default, the Collateral Agent (or any Lender, at the sole cost and expense of
such Lender) may retain an independent engineer or environmental consultant to
conduct an environmental assessment (but, prior to the occurrence of any such
Event of Default, only with respect to the subject matter of such breach,
including, as relevant to such breach, of the condition of any Real Estate or
facility of any Loan Party) and/or such Loan Party’s compliance with
Environmental Law.  Each Loan Party shall cooperate in the performance
of any such environmental assessment and permit any such engineer or consultant
designated by the Collateral Agent or such Lender to have full access to each
property or facility at reasonable times and after reasonable notice to the Lead
Borrower of the plans to conduct such an environmental
assessment.   Environmental assessments conducted under this
paragraph shall be limited to visual inspections of the Real Estate or facility,
interviews with representatives of the Loan Parties or facility personnel, and
review of applicable records and documents pertaining to the condition of the
property or facility, its compliance with Environmental Law and any potential
Environmental Liabilities, in each case prior to the occurrence and during the
continuance of an Event of Default, to the extent relevant to the subject matter
of such breach.  Except as provided above with respect to any
environmental assessment performed by any Lender that is not the Collateral
Agent, all environmental assessments conducted pursuant to this paragraph shall
be at the Loan Parties’ sole cost and expense.

    
      
         

      

      
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    SECTION
5.09        Physical
Inventories.

    

    The Loan
Parties, at their own expense, shall cause not less than one (1) physical count
of Inventory to be undertaken in each twelve (12) month period (or
alternatively, periodic cycle counts) in conjunction with the preparation of its
annual audited financial statements, conducted following such methodology as is
consistent with the methodology used in the immediately preceding Inventory (or
cycle count) or as otherwise may be reasonably satisfactory to the
Agents.  Following the completion of such Inventory count, and in any
event by the next date required for the delivery of a Borrowing Base Certificate
hereunder, the Borrowers shall post such results to the Loan Parties’ stock
ledgers and general ledgers, as applicable.

    

    SECTION
5.10        Compliance with
Laws.

    

    Each Loan
Party will comply with all Applicable Laws and the orders of any Governmental
Authority except where the failure to do so, individually or in the aggregate,
would not reasonably be expected to result in a Material Adverse
Effect.  Except where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect, each Loan Party shall: (a) conduct its operations and keep and maintain
its Real Estate in compliance with all Environmental Laws; and (b) implement any
and all investigation, remediation, removal and response actions that are
appropriate or necessary to materially comply with Environmental Laws pertaining
to the presence, generation, treatment, storage, use, disposal, transportation
or Release of any Hazardous Materials on, at, in, under, above, to, from or
about any of its Real Estate.  The Loan Parties shall notify the
Administrative Agent promptly after such Person becomes aware of any violation
of or non-compliance with any Environmental Laws or any Release on, at, in,
under, above, to, from or about any Real Estate that is reasonably likely to
result in Environmental Liabilities in excess of $1,000,000 individually or in
the aggregate; and (d) promptly forward to Administrative Agent a copy of any
order, notice, request for information or any communication or report received
by such Person in connection with any such violation or Release or any other
matter that could reasonably be expected to result in Environmental Liabilities
in excess of $1,000,000 individually or in the aggregate in each case whether or
not any Governmental Authority has taken or threatened any action in connection
with any such violation, Release or other matter.

    

    SECTION
5.11        Use of Proceeds and Letters
of Credit.

    

    The
proceeds of Revolving Credit Loans made hereunder and of Letters of Credit
issued hereunder will be used only (a) to finance the acquisition of working
capital assets of the Borrowers and their Subsidiaries, including the purchase
of inventory and equipment, in each case in the ordinary course of business, (b)
to finance Capital Expenditures of the Borrowers and their Subsidiaries, (c) to
finance Permitted Acquisitions, and (d) for general corporate purposes,
including the repayment of Indebtedness (including the Senior Notes, the Holdco
Notes, and the Term Loan Financing Facility), the making of Restricted Payments,
and the making of Investments, all to the extent permitted in this
Agreement.  No part of the proceeds of any Revolving Credit Loan will
be used, whether directly or indirectly, for any purpose that entails a
violation of any of the regulations of the Board, including Regulations U and
X.

    
      
         

      

      
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    SECTION
5.12        Additional
Subsidiaries.

    

    If any
Loan Party shall form or acquire a Subsidiary that is not an Immaterial
Subsidiary after the Closing Date, the Lead Borrower will notify the Agents
thereof at least five (5) days prior to such Subsidiary’s becoming a Loan Party
as provided in this SECTION 5.12 and will furnish the Lenders such information
as they may reasonably request to complete “know your customer” requirements,
and if such Subsidiary is not a Foreign Subsidiary, will cause such Subsidiary
to become a Loan Party hereunder and under each applicable Security Document in
the manner provided therein within ten (10) Business Days after such Subsidiary
is formed or acquired and promptly take such actions to create and perfect Liens
on such Subsidiary’s assets to secure the Obligations as the Agents or the
Required Lenders shall reasonably request.  If any shares of Capital
Stock or Indebtedness of such Subsidiary are owned by or on behalf of any Loan
Party, the Lead Borrower will cause such shares and promissory notes evidencing
such Indebtedness to be pledged to secure the Obligations within ten (10)
Business Days after such Subsidiary is formed or acquired (except that, if such
Subsidiary is a Foreign Subsidiary, shares of Capital Stock of such Subsidiary
to be pledged may be limited to 65% of the outstanding shares of Capital Stock
of such Subsidiary).

    

    SECTION
5.13        Further
Assurances.

    

    (a)        Each
Loan Party will execute any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the
filing and recording of financing statements and other documents), that may be
required under any Applicable Law, or which any Agent or the Required Lenders
may reasonably request, to effectuate the transactions contemplated by the Loan
Documents or to grant, preserve, protect or perfect the Liens created or
intended to be created by the Security Documents or the validity or priority of
any such Lien, all at the expense of the Loan Parties.

    

    (b)        Upon
the request of the Collateral Agent, each Loan Party shall use commercially
reasonable efforts to cause each of its customs brokers to deliver an agreement
(including, without limitation, a Customs Broker Agreement) to the Collateral
Agent covering such matters and in such form as the Collateral Agent may
reasonably require. In the event Inventory is in the possession or control of a
customs broker that has not delivered an agreement as required by the preceding
sentence, such Inventory shall not be considered Eligible In-Transit Inventory
hereunder.

    

    ARTICLE
VI

    

    Negative
Covenants

    

    Until (i)
the Commitments have expired or been terminated, (ii) the principal of and
interest on each Revolving Credit Loan and all fees and other Obligations (other
than contingent indemnity obligations with respect to then unasserted claims and
the Other Liabilities) shall have been paid in full, (iii) all Letters of Credit
shall have expired or terminated (or been cash collateralized in a manner
reasonably satisfactory to the applicable Issuing Bank) and (iv) all Letter of
Credit Outstandings have been reduced to zero (or cash collateralized in a
manner reasonably satisfactory to the applicable Issuing Bank), each Loan Party
covenants and agrees with the Credit Parties that:

    
      
         

      

      
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    SECTION
6.01        Indebtedness and Other
Obligations.

    

    No Loan
Party will create, incur, assume or permit to exist any Indebtedness, except
Permitted Indebtedness.

    

    SECTION
6.02        Liens.

    

    No Loan
Party will create, incur, assume or permit to exist any Lien on any property or
asset now owned or hereafter acquired by it, except Permitted
Encumbrances.

    

    SECTION
6.03        Fundamental
Changes

    

    (a)           
No Loan Party will merge into or consolidate with any other Person, or permit
any other Person to merge into or consolidate with it, or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default or Event of Default shall have occurred and be continuing or would
arise therefrom, (i) any Subsidiary may liquidate, dissolve, consolidate, or
merge into a Loan Party in a transaction in which a Loan Party is the surviving
corporation, (ii) any Subsidiary that is not a Loan Party may liquidate,
dissolve, consolidate, or merge into any Subsidiary that is not a Loan Party,
(iii) any Loan Party may merge with or into any other Loan Party, and (iv)
Permitted Acquisitions and transactions permitted pursuant to SECTION 6.05 may
be consummated in the form of a merger or consolidation, as long as, in the
event of a Permitted Acquisition, a Loan Party is the surviving Person, provided that any
such merger involving a Person that is not a wholly owned Subsidiary immediately
prior to such merger shall not be permitted unless also permitted by SECTION
6.04.

    

    (b)        No
Loan Party will engage, to any material extent, in any business other than
businesses of the type conducted by such Loan Party on the Closing Date and
businesses reasonably related thereto and those supportive, complementary or
ancillary thereto.

    

    SECTION
6.04        Investments, Revolving
Credit Loans, Advances, Guarantees and Acquisitions.

    

    No Loan
Party will make or permit to exist any Investment, except Permitted
Investments.

    

    SECTION
6.05        Asset
Sales.

    

    No Loan
Party will sell, transfer, lease (as lessor), license (as licensor), abandon or
otherwise voluntarily dispose of any asset, including any Capital Stock of
another Person, except sales of Inventory and the use of cash or cash
equivalents in the ordinary course of business, transactions permitted by
SECTION 6.03 and Permitted Dispositions and the making of Permitted Investments
(to the extent such Investment would involve a sale, transfer or disposition of
any assets).

    
      
         

      

      
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    SECTION
6.06        Restricted Payments; Certain
Payments of Indebtedness.

    

    (a)        No
Loan Party will declare or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, except that

    

    (i)    
        Any Loan Party or any Subsidiary
of a Loan Party may declare and pay cash dividends or make other distributions
of property to a Loan Party; provided that any
such Restricted Payments made to Holdings or the Parent under this clause (i)
shall be used (w) to pay general corporate and overhead expenses incurred by
Holdings or the Parent in the ordinary course of business, or the amount of any
indemnification claims made by any director or officer of Holdings or the
Parent, (x) to pay franchise taxes and other fees, taxes and expenses required
to maintain the corporate existence of Holdings or the Parent, (y) to pay taxes
that are due and payable by the Parent as the parent of a consolidated group
that includes Parent and its Subsidiaries, and (z) so long as no Event of
Default shall have occurred and be continuing under SECTIONS 6.10, 7.01(a),
7.01(b), 7.01(h), or 7.01(i) or would result therefrom, to pay interest as and
when due in respect of the Holdco Notes to the extent required under the Holdco
Note Documents;

    

    (ii)            The
Loan Parties may make Restricted Payments for the purpose of paying amounts
owing under the Advisory Agreement, to the extent permitted under SECTION
6.07;

    

    (iii)           The
Loan Parties may make Restricted Payments consisting of Permitted Dispositions
of the type described, and subject to the limitations contained, in the
definition thereof;

    

    (iv)        
  The Loan Parties may make Restricted Payments constituting
repurchases of equity interests in the Parent or any Subsidiary in connection
with the exercise of stock options or warrants if such equity interests
represent a portion of the exercise price of such option or warrants, provided that
Restricted Payments made pursuant to this clause (v) shall not exceed $2,000,000
in any Fiscal Year of the Parent; and

    

    (v)      
     The Loan Parties may make other Restricted
Payments if the Payment Conditions are satisfied (provided that, for
the purposes of this clause (a)(v), the percentage set forth in the definition
of “Pro Forma Availability Condition” shall be 25% and the Fixed Charge Coverage
Ratio requirement set forth in the definition of “Payment Conditions” shall be
1.15:1.0).

    

    (b)        No
Loan Party will make or agree to pay or make any payment or other distribution
(whether in cash, securities or other property) of or in respect of principal of
or interest on any Indebtedness, or any payment or other distribution (whether
in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Indebtedness, except

    

    (i)             payments
in Capital Stock (as long as no Change in Control would result therefrom) and
payments of interest in-kind of the Loan Parties;

    
      
         

      

      
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    (ii)  
         payments of principal and
interest in respect of any Subordinated Indebtedness (subject to applicable
subordination provisions relating thereto);

    

    (iii)     
     (A) payments of principal (including mandatory
prepayments) and interest as and when due in respect of any Permitted
Indebtedness (other than Subordinated Indebtedness) and (B) as long as the
Payment Conditions are satisfied, prepayments of Permitted Indebtedness (other
than the Senior Notes, the Holdco Notes, the Term Loan Financing Facility,
Indebtedness due to the Sponsor or any of its Affiliates (other than
Indebtedness due to any of the Loan Parties or their Subsidiaries) or
Subordinated Indebtedness);

    

    (iv)     
     prepayment in whole or in part of the Senior
Notes, the Holdco Notes, or the Term Loan Financing Facility with the proceeds
of any equity securities issued or capital contributions received by any Loan
Party or any Subsidiary for the purpose of making such payment or
prepayment;

    

    (v)       
    prepayment in whole or in part of the Senior Notes, the
Holdco Notes, or the Term Loan Financing Facility from any refinancing of the
Senior Notes, the Holdco Notes, or the Term Loan Financing Facility not
prohibited hereunder;

    

    (vi)     
     if the Payment Conditions are satisfied,
prepayment in whole or in part of the Senior Notes or the Holdco
Notes;

    

    (vii)          if
the Term Payment Availability Conditions are satisfied, prepayment in whole or
in part of the Term Loan Financing Facility;

    

    (viii)         as
long as no Specified Default then exists or would arise therefrom, payments of
interest only on account of Permitted Indebtedness due to the Sponsors or
Sponsor Related Parties, stockholders and/or Affiliates (subject to applicable
subordination provisions relating thereto);

    

    (ix)        
   as long as no Specified Default then exists or would arise
therefrom, prepayments of the AHYDO Catch-Up Payment in an aggregate amount not
to exceed $25,000,000;

    

    (x)           
payments either of (A) cash to shareholders, or (B) principal and interest in
respect of notes issued to stockholders, in each case, in connection with the
repurchase of shares of Capital Stock of the Parent owned by such shareholder,
provided that
such payments shall not exceed $5,000,000 in the aggregate in any Fiscal Year,
provided that,
in the event the entire $5,000,000 is not utilized in any Fiscal Year, one
hundred percent (100%) of such unutilized portion may be carried forward to
succeeding Fiscal Years of the Parent; and

    

    (xi)          
refinancings of Indebtedness to the extent permitted under this
Agreement.

    
      
         

      

      
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    SECTION
6.07        Transactions with
Affiliates.

    

    No Loan
Party will 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 (a)
transactions in the ordinary course of business that are at prices and on terms
and conditions, taken as a whole,  not less favorable to such Loan
Party than could be obtained on an arm’s-length basis from unrelated third
parties, (b) transactions between or among the Loan Parties not otherwise
prohibited hereunder, (c) payments due pursuant to the Advisory Agreement on
account of Advisory Fees consisting of (i)  payments (but not
prepayments) on account of annual advisory fees provided that such
payments may not be made if an Event of Default under SECTIONS 7.01(a), 7.01(b),
7.01(h) or 7.01(i) has occurred and is continuing or would arise therefrom,
provided
further that such fees not paid shall accrue and be paid when the applicable
Event of Default has been cured or waived and no additional Event of Default
under Sections 7.01(a), 7.01(b), 7.01(h) or 7.01(i) has occurred and is
continuing or would arise as a result of such payment, and (ii) transaction
fees, provided
that such payments in excess of $1,000,000 may not be made if a Specified
Default exists or would arise therefrom, provided further that
such fees in excess of $1,000,000 not paid shall accrue and be paid when the
applicable Specified Default has been cured or waived and no additional
Specified Default has occurred and is continuing or would arise as a result of
such payment, (d) payments of indemnities and reasonable expense reimbursements
under the Advisory Agreement, (e) as set forth on Schedule 6.07, (f)
payment of reasonable compensation to officers and employees for services
actually rendered to any such Loan Party or any of its Subsidiaries, (g) payment
of director’s fees, expenses and indemnities, (h) stock option, stock incentive,
equity, bonus and other compensation plans of the Loan Parties and their
Subsidiaries, (i) employment contracts with officers and management of the Loan
Parties and their Subsidiaries, (j) the repurchase of equity interests from
officers, directors and employees to the extent specifically permitted under
this Agreement, (k) advances and loans to officers and employees of the Loan
Parties and their Subsidiaries to the extent specifically permitted under this
Agreement, (l) Investments consisting of notes from officers, directors and
employees to purchase equity interests to the extent specifically permitted
under this Agreement, (m) payments pursuant to the tax sharing agreements among
the Loan Parties to the extent attributable to the ownership or operations of
the Parent and its Subsidiaries, and (n) other transactions with Affiliates
specifically permitted under this Agreement (including, without limitation,
sale/leaseback transactions, Permitted Dispositions, Restricted Payments,
Permitted Investments and Indebtedness).

    

    SECTION
6.08        Restrictive
Agreements.

    

    No Loan
Party will directly or indirectly enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of such Loan Party to create, incur or permit to
exist any Lien upon any of its property or assets in favor of the Collateral
Agent or (b) the ability of any Subsidiary thereof to pay dividends or other
distributions with respect to any shares of its Capital Stock to such Loan Party
or to make or repay loans or advances to a Loan Party or to guarantee
Indebtedness of the Loan Parties, provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by Applicable
Law, by any Loan Document, by any documents in existence on the Closing Date or
under any documents relating to joint ventures of any Loan Party to the extent
that such joint ventures are not prohibited hereunder, (ii) the foregoing shall
not apply to customary restrictions and conditions contained in agreements
relating to the sale of assets or equity permitted hereunder by a Loan Party or
a Subsidiary pending such sale, provided such restrictions and conditions apply
only to the assets of the Loan Party or Subsidiary that are to be sold and such
sale is permitted hereunder, (iii) clause (a) of the foregoing shall not apply
to restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness and (iv) clause
(a) of the foregoing shall not apply to customary provisions in contracts or
leases restricting the assignment or subleasing or sublicensing thereof, (v) the
foregoing shall not apply to any agreement related to Indebtedness under the
Senior Notes, the Holdco Notes, or the Term Loan Financing Facility, (vi) clause
(a) of the foregoing shall not apply to licenses or contracts which by the terms
of such licenses and contracts prohibit the granting of Liens on the rights
contained therein, and (vii) the foregoing shall not apply to any restrictions
in existence prior to the time any such Person became a Subsidiary and not
created in contemplation of any such acquisition.

    
      
         

      

      
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    SECTION
6.09        Amendment of Material
Documents.

    

    No Loan
Party will amend, modify or waive any of its rights under (a) its Charter
Documents, (b) the nature of the obligations under any guaranty of recourse
obligations, (c) the Advisory Agreement, or (d) any Material Indebtedness, in
each case to the extent that such amendment, modification or waiver would
reasonably likely have a Material Adverse Effect.  Without limiting
the foregoing, no Loan Party will amend, modify or waive any provisions of the
Term Loan Agreement if such amendment, modification or waiver results in the
Lenders receiving mandatory prepayments in an amount less than the amount the
Lenders would have received based on the provisions of the Term Loan Agreement
as of the Closing Date.

    

    SECTION
6.10        Availability.

    

    (a)        The
Loan Parties shall maintain (i) for each of the thirty (30) consecutive days
immediately preceding the Existing Termination Date (or any earlier date upon
which the Commitments of the Non-Extending Lenders are voluntarily reduced or
terminated pursuant to SECTION 2.16(b) hereof) and on a pro forma basis after
giving effect to the termination of the Commitments of the Non-Extending Lenders
and repayment of the Obligations due and owing to the Non-Extending Lenders on
the Existing Termination Date, Availability of not less than $90,000,000 and
(ii) on a pro forma and projected basis for each of the six (6) months
immediately following, and after giving effect to, the termination of the
Commitments of the Non-Extending Lenders and repayment of the Obligations due
and owing to the Non-Extending Lenders on the Existing Termination Date, based
on projections prepared by the Loan Parties in good faith at the time of the
Existing Termination Date, Availability of not less than $90,000,000. The Loan
Parties shall deliver to the Administrative Agent evidence of satisfaction of
the conditions contained in clause (ii) above on a basis reasonably satisfactory
to the Administrative Agent, which evidence shall be delivered to the
Administrative Agent not less than thirty (30) days prior to the Existing
Termination Date.

    

    (b)        Except
during the period described in SECTION 6.10(a) above, the Loan Parties shall not
permit Availability at any time to be less than the greater of (i) ten percent
(10%) of the lesser of (A) the then Borrowing Base or (B) the then Revolving
Credit Ceiling and (ii) $50,000,000.

    
      
         

      

      
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    SECTION
6.11        Fiscal
Year.

    

    No Loan
Party will change its Fiscal Year without the prior written consent of the
Agents; provided that upon
notice to the Administrative Agent, the Loan Parties may change (a) their Fiscal
Years to end on the Saturday closest to January 31st, (b) their Fiscal Quarters
to end (i) in the case of the first three Fiscal Quarters of each Fiscal Year,
on the date that is 13 weeks after the last day of the preceding Fiscal Quarter
and (ii) in the case of the last Fiscal Quarter of each Fiscal Year, on the last
day of such Fiscal Year and (c) their Fiscal Months to consist of (i) in the
case of the first, third, fourth, sixth, seventh, ninth and tenth Fiscal Months
of each Fiscal Year, four calendar weeks, (ii) in the case of the second, fifth,
eight and eleventh Fiscal Months of each Fiscal Year, five calendar weeks and
(iii) in the case of the twelfth Fiscal Month of each Fiscal Year, the period
from the first day following the eleventh Fiscal Month of such Fiscal Year
through the last day of such Fiscal Year.

    

    ARTICLE
VII

    

    Events of
Default

    

    SECTION
7.01        Events of
Default.

    

    If any of
the following events (“Events of Default”)
shall occur:

    

    (a)           
Any Loan Party shall fail to pay any principal of any Revolving Credit Loan or
any reimbursement obligation in respect of any Letter of Credit Disbursement
when and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or by acceleration or
otherwise;

    

    (b)           
Any Loan Party shall fail to pay any interest on any Revolving Credit Loan or
any fee or any other amount (other than an amount referred to in SECTION
7.01(a), any amount payable for Cash Management Services or Other Liabilities)
as the same shall become due and payable under this Agreement or any other Loan
Document and such failure continues for five (5) Business Days;

    

    (c)           
Any representation or warranty made or deemed made by or on behalf of any Loan
Party in, or in connection with, any Loan Document or any amendment or
modification thereof or waiver thereunder (including, without limitation, in any
Borrowing Base Certificate or any certificate of a Financial Officer
accompanying any financial statement) shall prove to have been incorrect in any
material respect when made or deemed made;

    

    (d)        
   Any Loan Party shall fail to observe or perform when due any
covenant, condition or agreement contained in (i) SECTION 6.10(a) (provided that failure
to maintain the Availability required pursuant to clause (i) thereof shall not
constitute an Event of Default hereunder until such failure has occurred on more
than three (3) days (whether or not consecutive) during such 30-day period), or
(ii) any other Section of Article VI or (iii) SECTION 5.01(f) (after a two (2)
Business Day grace period), or (iv) in any of SECTION 2.18, SECTION 5.01(d),
SECTION 5.02(a), SECTION 5.07, SECTION 5.08(b), or SECTION 5.11 (provided that, if (A)
any such Default described in this clause (d) is of a type that can be cured
within five (5) Business Days and (B) such Default could not materially
adversely impact the Lenders’ Liens on the Collateral, such default shall not
constitute an Event of Default for five (5) Business Days after the occurrence
of such Default so long as the Loan Parties are diligently pursuing the cure of
such Default);

    
      
         

      

      
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    (e)       
    Any Loan Party shall fail to observe or perform when due
any covenant, condition or agreement contained in any Loan Document (other than
those specified in SECTION 7.01(a), SECTION 7.01(b), SECTION 7.01(c), or SECTION
7.01(d)), and such failure shall continue unremedied for a period of thirty (30)
days after notice thereof from the Administrative Agent to the Lead
Borrower;

    

    (f)       
     Any Loan Party shall fail to make any payment
(whether of principal or interest and regardless of amount) in respect of any
Material Indebtedness when and as the same shall become due and payable (after
giving effect to the expiration of any grace or cure period set forth therein)
or any event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or
without the giving of notice, the lapse of time or both) the holder or holders
of any such Material Indebtedness or any trustee or agent on its or their behalf
to cause any such Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity, which default, event or condition is not being contested in good
faith;

    

    (g)    
       a Change in Control shall
occur;

    

    (h)     
      An involuntary proceeding shall be commenced
or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of any Loan Party or its debts, or of
a substantial part of its assets, under the Bankruptcy Code or any other
federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for any Loan Party or
for a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for sixty (60) days or an order or decree
approving or ordering any of the foregoing shall be entered;

    

    (i)       
     Any Loan Party shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under the Bankruptcy Code or any other federal, state, provincial or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in SECTION 7.01(h),
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for any Loan Party or for a
substantial part of its assets, (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;

    
      
         

      

      
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    (j)        
    Except as permitted under SECTION 6.05, the
determination of the Loan Parties, whether by vote of the Loan Parties’ board of
directors or otherwise to: suspend the operation of the Loan Parties’ business
in the ordinary course, liquidate all or substantially all of the Loan Parties’
assets or Store locations, or employ an agent or other third party to conduct
any so-called store closing, store liquidation or “Going-Out-Of-Business” sales
for all or substantially all of the Loan Parties’ Stores;

    

    (k)     
      One or more final judgments for the payment
of money in an aggregate amount in excess of $40,000,000 if Excess Availability
is greater than or equal to $100,000,000 on a pro forma basis for the twelve
(12) month period following such judgment or $20,000,000 if Excess Availability
is less than $100,000,000 on a pro forma basis for the twelve (12) month period
following such judgment, (or such lesser amount as would reasonably be expected
to result in a Material Adverse Effect) in excess of insurance coverage (or
indemnities from indemnitors reasonably satisfactory to the Agents) shall be
rendered against any Loan Party or any combination of Loan Parties and the same
shall remain undischarged for a period of forty-five (45) days during which
execution shall not be effectively stayed, satisfied or bonded or any action
shall be legally taken by a judgment creditor to attach or levy upon any
material assets of any Loan Party to enforce any such judgment;

    

    (l)       
     An ERISA Event (other than any ERISA Event set
forth on Schedule
3.10) shall have occurred that when taken together with all other ERISA
Events that have occurred, would reasonably be expected to result in a liability
of any Loan Party in excess of $25,000,000 or such other amount that would
reasonably be expected to result in a Material Adverse Effect and  the
same shall remain undischarged for a period of thirty (30) consecutive
days;

    

    (m)      
    Any challenge by or on behalf of any Loan Party to the
validity of any Loan Document or the applicability or enforceability of any Loan
Document strictly in accordance with the subject Loan Document’s terms or which
seeks to void, avoid, limit, or otherwise adversely affect any security interest
created by or in any Loan Document or any payment made pursuant thereto,
including, without limitation, (i) the delivery of any notice pursuant to Nevada
Revised Statutes 106.380(1) with respect to any Mortgage; (ii) the delivery of
any notice of an election to terminate the operation of any Mortgage as security
for any Obligation, including, without limitation, any obligation to repay any
“future advances” (as defined in Nevada Revised Statutes 106.320) of principal
(as defined in Nevada Revised Statutes 106.345), (iii) records a statement
pursuant to Nevada Revised Statutes 106.380(3), or (iv) causes any Mortgage or
any Obligation or any Credit Party to be subject to Nevada Revised Statutes
106.380(2), 106.380(3) or 106.400;

    

    (n)        
   Any challenge by or on behalf of any other Person to the
validity of any Loan Document or the applicability or enforceability of any Loan
Document strictly in accordance with the subject Loan Document’s terms or which
seeks to void, avoid, limit, or otherwise adversely affect any security interest
created by or in any Loan Document or any payment made pursuant thereto, in each
case, as to which an order or judgment has been entered materially adverse to
the Agents and the Lenders;

    
      
         

      

      
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    (o)     
      Any Lien purported to be created under any
Security Document shall cease to be, or shall be asserted by any Loan Party not
to be, a valid and perfected Lien on any such Collateral, with the priority
required by (but subject to the limitations set forth in) the applicable
Security Document and this Agreement except (i) as a result of the sale, release
or other disposition of the applicable Collateral in a Permitted Disposition or
other transaction permitted under the Loan Documents or, (ii) relating to an
immaterial amount of Collateral not constituting Revolver Priority Collateral,
or (iii) as a result of the failure of the Collateral Agent, through its acts or
omissions and through no fault of the Loan Parties, to maintain the perfection
of its Liens in accordance with Applicable Law;

    

    (p)        
   The occurrence of any uninsured loss to any material portion
of the Collateral which would reasonably be expected to result in a Material
Adverse Effect;

    

    (q)     
      The termination of the Facility Guaranty or
any other guaranty of the Obligations (except for any release or termination
permitted hereunder);

    

    (r)         
   The indictment of any Loan Party, under any Applicable Law
where the crime alleged would constitute a felony under Applicable Law and such
indictment remains unquashed or such legal process remains undismissed for a
period of 90 days or more, unless the Administrative Agent, in its reasonable
discretion, determines that the indictment is not material; or

    

    (s)     
      the imposition of any stay or other order,
the effect of which restrains the conduct by the Loan Parties, taken as a whole,
of their business in the ordinary course in a manner that has resulted in, or
could reasonably be expected to have, a Material Adverse Effect;

    

    then, and
in every such event (other than an event with respect to any Loan Party
described in SECTION 7.01(h) or SECTION 7.01(i)), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders, shall, by notice to the Lead Borrower, take any
or all of the following actions, at the same or different times: (i) terminate
the Commitments, and thereupon the Commitments shall irrevocably terminate
immediately; (ii) declare the Obligations owing by such Borrowers then
outstanding to be due and payable in whole, and thereupon the principal of the
Revolving Credit Loans and all other Obligations so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Loan Parties accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Loan Parties to the extent permitted by
Applicable Law; or (iii) require the applicable Loan Parties to furnish cash
collateral in an amount equal to 103% of its respective Letter of Credit
Outstandings to be held and applied in accordance with SECTION
7.03.  In case of any event with respect to any Loan Party described
in SECTION 7.01(h) or SECTION 7.01(i), the Commitments shall automatically and
irrevocably terminate and the principal of the Revolving Credit Loans and other
Obligations owing by such Borrower then outstanding, together with accrued
interest thereon and all fees and other obligations of the Loan Parties accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Loan Parties to the extent permitted by Applicable Law.

    
      
         

      

      
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    SECTION
7.02        Remedies on
Default.

    

    In case
any one or more of the Events of Default shall have occurred and be continuing,
and whether or not the maturity of the Obligations shall have been accelerated
pursuant hereto, the Agents may (and at the direction of the Required Lenders,
shall) proceed to protect and enforce their rights and remedies under this
Agreement or any of the other Loan Documents by suit in equity, action at law or
other appropriate proceeding, whether for the specific performance of any
covenant or agreement contained in this Agreement and the other Loan Documents
or any instrument pursuant to which the Obligations are evidenced, and, if such
amount shall have become due, by declaration or otherwise, proceed to enforce
the payment thereof or any other legal or equitable right of the Secured
Parties. No remedy herein is intended to be exclusive of any other remedy and
each and every remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law or in equity or
by statute or any other provision of law.

    

    SECTION
7.03        Application of
Proceeds.

    

    After the
occurrence and during the continuance of (i) any Cash Dominion Event or (ii) any
Event of Default and acceleration of the Obligations, all proceeds realized from
any Loan Party or on account of any Collateral owned by a Loan Party or, without
limiting the foregoing, on account of any Prepayment Event, any payments in
respect of any Obligations and all proceeds of the Collateral, shall be applied
in the following order:

    

    (a)        FIRST,
ratably to pay the Obligations in respect of any Credit Party Expenses,
indemnities and other amounts then due to the Agents until paid in
full;

    

    (b)        SECOND,
ratably to pay any Credit Party Expenses and indemnities, and to pay any fees
then due to the Lenders, until paid in full;

    

    (c)        THIRD,
ratably to pay interest accrued in respect of the Obligations until paid in
full;

    

    (d)        FOURTH,
to pay principal due in respect of the Swingline Loans until paid in
full;

    

    (e)        FIFTH,
ratably to pay principal due in respect of the Revolving Credit Loans until paid
in full;

    

    (f)         SIXTH,
to the Administrative Agent, to be held by the Administrative Agent, for the
ratable benefit of the Issuing Banks and the Lenders as cash collateral in an
amount up to 103% of the then Stated Amount of Letters of Credit until paid in
full;

    

    (g)        SEVENTH,
to pay outstanding Obligations with respect to Cash Management Services
furnished to any Loan Party by the Agents;

    
      
         

      

      
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    (h)        EIGHTH,
ratably to pay any other outstanding Obligations (including any outstanding
Other Liabilities); and

    

    (i)         NINTH,
to the Lead Borrower or such other Person entitled thereto under Applicable
Law.

    

    ARTICLE
VIII

    

    The
Agents

    

    SECTION
8.01        Appointment and
Administration by Administrative Agent.

    

    Each
Credit Party hereby irrevocably designates Bank of America as Administrative
Agent under this Agreement and the other Loan Documents. The general
administration of the Loan Documents shall be by the Administrative Agent. The
Credit Parties each hereby (a) irrevocably authorizes the Administrative Agent
(i) to enter into the Loan Documents to which it is a party, and (ii) at its
discretion, to take or refrain from taking such actions as agent on its behalf
and to exercise or refrain from exercising such powers under the Loan Documents
as are delegated by the terms hereof or thereof, as appropriate, together with
all powers reasonably incidental thereto, and (b) agrees and consents to all of
the provisions of the Security Documents. The Administrative Agent shall have no
duties or responsibilities except as set forth in this Agreement and the other
Loan Documents, nor shall it have any fiduciary relationship with any other
Credit Party, and no implied covenants, responsibilities, duties, obligations,
or liabilities shall be read into the Loan Documents or otherwise exist against
the Administrative Agent.

    

    SECTION
8.02        Appointment of Collateral
Agent.

    

    Each
Secured Party hereby irrevocably designates Bank of America as Collateral Agent
under this Agreement and the other Loan Documents. The Secured Parties each
hereby (i) irrevocably authorizes the Collateral Agent (x) to enter into the
Loan Documents to which it is a party, and (y) at its discretion, to take or
refrain from taking such actions as agent on its behalf and to exercise or
refrain from exercising such powers under the Loan Documents as are delegated by
the terms hereof or thereof, as appropriate, together with all powers reasonably
incidental thereto, and (ii) agrees and consents to all of the provisions of the
Security Documents.  All Collateral shall be held or administered by
the Collateral Agent (or its duly-appointed agent) for its own benefit and for
the ratable benefit of the other Secured Parties. Any proceeds received by the
Collateral Agent from the foreclosure, sale, lease or other disposition of any
of the Collateral and any other proceeds received pursuant to the terms of the
Security Documents or the other Loan Documents shall be paid over to the
Administrative Agent for application as provided in this Agreement and the other
Loan Documents.  The Collateral Agent shall have no duties or
responsibilities except as set forth in this Agreement and the other Loan
Documents, nor shall it have any fiduciary relationship with any other Secured
Party, and no implied covenants, responsibilities, duties, obligations, or
liabilities shall be read into the Loan Documents or otherwise exist against the
Collateral Agent.

    
      
         

      

      
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    SECTION
8.03        Sharing of Excess
Payments.

    

    If at any
time or times any Secured Party shall receive (i) by payment, foreclosure,
setoff, banker’s lien, counterclaim, or otherwise, or any payments with respect
to the Obligations owing to such Secured Party arising under, or relating to,
this Agreement or the other Loan Documents, or (ii) payments from the
Administrative Agent in excess of such Secured Party's ratable portion of all
such distributions by the Administrative Agent, such Secured Party shall
promptly (1) turn the same over to the Administrative Agent, in kind, and with
such endorsements as may be required to negotiate the same to the Administrative
Agent, or in same day funds, as applicable, for the account of all of the
Secured Parties and for application to the Obligations in accordance with the
applicable provisions of this Agreement, or (2) purchase, without recourse or
warranty, an undivided interest and participation in the Obligations owed to the
other Secured Parties so that such excess payment received shall be applied
ratably as among the Secured Parties in accordance with the provisions of
SECTION 2.17 or SECTION 7.03, as applicable; provided, however, that if all
or part of such excess payment received by the purchasing party is thereafter
recovered from it, those purchases of participations shall be rescinded in whole
or in part, as applicable, and the applicable portion of the purchase price paid
therefor shall be returned to such purchasing party, but without interest except
to the extent that such purchasing party is required to pay interest in
connection with the recovery of the excess payment.  In no event shall
the provisions of this paragraph be construed to apply to any payment made by
the Borrowers 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 Credit Loans or
participations in drawings under Letters of Credit to any assignee or
participant, other than to the Borrowers or any Affiliate(s) thereof (as to
which the provisions of this paragraph shall apply).

    

    SECTION
8.04        Agreement of Applicable
Lenders.

    

    Upon any
occasion requiring or permitting an approval, consent, waiver, election or other
action on the part of the Applicable Lenders, action shall be taken by each
Agent for and on behalf or for the benefit of all Secured Parties upon the
direction of the Applicable Lenders, and any such action shall be binding on all
Secured Parties. No amendment, modification, consent, or waiver shall be
effective except in accordance with the provisions of SECTION 9.02.

    

    SECTION
8.05        Liability of
Agents.

    

    (a)        The
Agents, when acting on behalf of the Secured Parties, may execute any of their
respective duties under this Agreement or any of the other Loan Documents by or
through any of their respective officers, agents and employees, and no Agent nor
any of their respective directors, officers, agents or employees shall be liable
to any other Secured Party for any action taken or omitted to be taken in good
faith, or be responsible to any other Secured Party for the consequences of any
oversight or error of judgment, or for any loss, except to the extent of any
liability imposed by law by reason of such Agent’s own gross negligence or
willful misconduct (as determined by a court of competent jurisdiction in a
final and non-appealable decision). No Agent nor any of their respective
directors, officers, agents and employees shall in any event be liable to any
other Secured Party for any action taken or omitted to be taken by it pursuant
to instructions received by it from the Applicable Lenders, or in reliance upon
the advice of counsel selected by it. Without limiting the foregoing no Agent,
nor any of their respective directors, officers, employees, or agents shall be:
(i) responsible to any other Secured Party for the due execution, validity,
genuineness, effectiveness, sufficiency, or enforceability of, or for any
recital, statement, warranty or representation in, this Agreement, any other
Loan Document or any related agreement, document or order; (ii) required to
ascertain or to make any inquiry concerning the performance or observance by any
Loan Party of any of the terms, conditions, covenants, or agreements of this
Agreement or any of the Loan Documents; (iii) responsible to any other Secured
Party for the state or condition of any properties of the Loan Parties or any
other obligor hereunder constituting Collateral for the Obligations or any
information contained in the books or records of the Loan Parties; (iv)
responsible to any other Secured Party for the validity, enforceability,
collectibility, effectiveness or genuineness of this Agreement or any other Loan
Document or any other certificate, document or instrument furnished in
connection therewith; or (v) responsible to any other Secured Party for the
validity, priority or perfection of any Lien securing or purporting to secure
the Obligations or for the value or sufficiency of any of the
Collateral.

    
      
         

      

      
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    (b)        The
Agents may execute any of their duties under this Agreement or any other Loan
Document by or through their agents or attorneys-in-fact, and shall be entitled
to the advice of counsel concerning all matters pertaining to its rights and
duties hereunder or under the other Loan Documents.  The Agents shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by them with reasonable care.

    

    (c)        None
of the Agents nor any of their respective directors, officers, employees, or
agents shall have any responsibility to any Loan Party on account of the failure
or delay in performance or breach by any other Secured Party (other than by each
such Agent in its capacity as a Lender) of any of its respective obligations
under this Agreement or any of the other Loan Documents or in connection
herewith or therewith.

    

    (d)        The
Agents shall be entitled to rely, and shall be fully protected in relying, upon
any notice, consent, certificate, affidavit, or other document or writing
believed by them to be genuine and correct and to have been signed, sent or made
by the proper person or persons, and upon the advice and statements of legal
counsel (including, without, limitation, counsel to the Loan Parties),
independent accountants and other experts selected by any Loan Party or any
Secured Party.  The Agents shall be fully justified in failing or
refusing to take any action under this Agreement or any other Loan Document
unless they shall first receive such advice or concurrence of the Applicable
Lenders as they deem appropriate or they shall first be indemnified to their
satisfaction by the other Secured Parties against any and all liability and
expense which may be incurred by them by reason of the taking or failing to take
any such action.

    

    SECTION
8.06        Notice of
Default.

    

    No Agent
shall be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default unless such Agent has actual knowledge of the same or has
received notice from a Secured Party or Loan Party referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
“notice of default”.  In the event that an Agent obtains such actual
knowledge or receives such a notice, such Agent shall give prompt notice thereof
to each of the other Secured Parties.  Upon the occurrence of an Event
of Default, the Agents shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required
Lenders.  Unless and until the Agents shall have received such
direction, the Agents may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to any such Default or Event of
Default as they shall deem advisable in the best interest of the Secured
Parties.  In no event shall the Agents be required to comply with any
such directions to the extent that the Agents believe that their compliance with
such directions would be unlawful.

    
      
         

      

      
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    SECTION
8.07        Credit
Decisions.

    

    Each
Secured Party (other than the Agents) acknowledges that it has, independently
and without reliance upon the Agents or any other Secured Party, and based on
the financial statements prepared by the Loan Parties and such other documents
and information as it has deemed appropriate, made its own credit analysis and
investigation into the business, assets, operations, property, and financial and
other condition of the Loan Parties and has made its own decision to enter into
this Agreement and the other Loan Documents.  Each Credit Party (other
than the Agents) also acknowledges that it will, independently and without
reliance upon the Agents or any other Secured Party, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in determining whether or not conditions precedent to
closing any Revolving Credit Loan hereunder have been satisfied and in taking or
not taking any action under this Agreement and the other Loan
Documents.

    

    SECTION
8.08        Reimbursement and
Indemnification.

    

    Each
Secured Party (other than the Agents) agrees to (i) reimburse the Agents for
such Secured Party’s pro rata share of outstanding Credit Extensions held by
such Secured Party (or, in the case of any Lender that has assigned its
Commitments pursuant to SECTION 9.04 hereof where the applicable assignee has
not ratably assumed such Lender's obligations  under this SECTION 8.08
with respect to acts or omissions that occurred prior to such assignment, such
assigning Lender's Commitment Percentage prior to such assignment) of (x) any
expenses and fees incurred by any Agent for the benefit of Secured Parties under
this Agreement and any of the other Loan Documents, including, without
limitation, counsel fees and compensation of agents and employees paid for
services rendered on behalf of the Secured Parties, and any other expense
incurred in connection with the operations or enforcement thereof not reimbursed
by the Loan Parties, and (y) any expenses of any Agent incurred for the benefit
of the Secured Parties that the Loan Parties have agreed to reimburse pursuant
to this Agreement or any other Loan Document and have failed to so reimburse,
and (ii) indemnify and hold harmless each Agent and any of their respective
directors, officers, employees, or agents, on demand, in the amount of such
Secured Party’s Commitment Percentage (or, in the case of any Lender that has
assigned its Commitments pursuant to SECTION 9.04 hereof where the applicable
assignee has not ratably assumed such Lender's obligations  under this
SECTION 8.08 with respect to acts or omissions that occurred prior to such
assignment, such assigning Lender's Commitment Percentage prior to such
assignment), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against it or any Secured Party in any way relating to or arising out
of this Agreement or any of the other Loan Documents or any action taken or
omitted by it or any of them under this Agreement or any of the other Loan
Documents to the extent not reimbursed by the Loan Parties, including, without
limitation, costs of any suit initiated by each Agent against any Secured Party
(except such as shall have been determined by a court of competent jurisdiction
or another independent tribunal having jurisdiction by final and non-appealable
judgment to have resulted from the gross negligence or willful misconduct of
such Agent); provided, however, that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against such Secured
Party in its capacity as such.  The provisions of this SECTION 8.08
shall survive the repayment of the Obligations and the termination of the
Commitments and, in the case of any Lender that has assigned its Commitments
pursuant to SECTION 9.04 hereof where the applicable assignee has not ratably
assumed such Lender's obligations  under this SECTION 8.08 with
respect to acts or omissions that occurred prior to such assignment, with
respect to events which have occurred prior to any such
assignment.

    
      
         

      

      
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    SECTION
8.09        Rights of
Agents.

    

    It is
understood and agreed that the Agents shall have the same rights and powers
hereunder (including the right to give such instructions) as the other Lenders
and may exercise such rights and powers, as well as their rights and powers
under other agreements and instruments to which they are or may be party, and
engage in other transactions with the Loan Parties, as though they were not the
Agents.  Each Agent and their respective Affiliates may accept
deposits from, lend money to, and generally engage in any kind of commercial or
investment banking, trust, advisory or other business with the Loan Parties and
their Affiliates as if it were not an Agent thereunder.

    

    SECTION
8.10        Notice of
Transfer.

    

    The
Administrative Agent may deem and treat a Lender party to this Agreement as the
owner of such Lender’s portion of the Obligations for all purposes, unless and
until, and except to the extent, an Assignment and Acceptance shall have become
effective as set forth in SECTION 9.04.

    

    SECTION
8.11        Successor
Agents.

    

    Any Agent
may resign at any time by giving thirty (30) Business Days’ written notice
thereof to the other Secured Parties and the Lead Borrower. Upon any such
resignation of an Agent, the Required Lenders shall have the right to appoint a
successor Agent, which, so long as there is no Specified Default, shall be
reasonably satisfactory to the Lead Borrower (whose consent in any event shall
not be unreasonably withheld or delayed).  If no successor Agent shall
have been so appointed by the Required Lenders and/or none shall have accepted
such appointment within thirty (30) days after the retiring Agent’s giving of
notice of resignation, the retiring Agent may, on behalf of the other Secured
Parties, appoint a successor Agent which shall be a commercial bank (or
affiliate thereof) organized under the laws of the United States of America or
of any State thereof and having a combined capital and surplus of a least
$1,000,000,000, or capable of complying with all of the duties of such Agent
hereunder (in the opinion of the retiring Agent and as certified to the other
Secured Parties in writing by such successor Agent) which, so long as there is
no Specified Default, shall be reasonably satisfactory to the Lead Borrower
(whose consent shall not in any event be unreasonably withheld or
delayed).  Upon the acceptance of any appointment as Agent by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent
and the retiring Agent shall be discharged from its duties and obligations under
this Agreement. After any retiring Agent’s resignation hereunder as such Agent,
the provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was such Agent under this
Agreement.

    
      
         

      

      
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    SECTION
8.12        Relation Among the
Lenders.

    

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

    

    SECTION
8.13        Reports and Financial
Statements.

    

    By
signing this Agreement, each Lender:

    

    (a)           
agrees to furnish the Administrative Agent (i) prompt written notice upon the
entering into of any leasing arrangement constituting a Bank Product and (ii)
after the occurrence and during the continuance of a Cash Dominion Event (and
thereafter at such frequency as the Administrative Agent may reasonably request)
with a summary of all Other Liabilities due or to become due to such Lender or
its Affiliates;

    

    (b)           
is deemed to have requested that the Agents furnish such Lender, promptly after
they become available, copies of all financial statements required to be
delivered by the Lead Borrower under SECTIONS 5.01(a) through and including
5.01(f),  and all commercial finance examinations and appraisals of
the Collateral received by the Agents (collectively, the “Reports”) (and the
Agents agree to furnish such Reports promptly to the Lenders, which Reports may
be furnished in accordance with the final paragraph of SECTION
5.01);

    

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

    

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

    

    (e)           
agrees to keep all Reports confidential and strictly for its internal use, and
not to distribute except to its participants, or use any Report in any other
manner; and

    

    (f)           
without limiting the generality of any other indemnification provision contained
in this Agreement, agrees: (i) to hold each Agent and any such other Lender
preparing a Report harmless from any action the indemnifying Lender may take or
conclusion the indemnifying Lender may reach or draw from any Report in
connection with any Credit Extensions that the indemnifying Lender has made or
may make to the Borrowers, or the indemnifying Lender's participation in, or the
indemnifying Lender's purchase of, a Revolving Credit Loan or Revolving Credit
Loans of the Borrowers; and (ii) to pay and protect, and indemnify, defend, and
hold each Agent and any such other Lender preparing a Report harmless from and
against, the claims, actions, proceedings, damages, costs, expenses, and other
amounts (including attorney costs) incurred by the Agents and any such other
Lender preparing a Report as the direct or indirect result of any third parties
who might obtain all or part of any Report through the indemnifying Lender in
violation of the terms hereof.

    
      
         

      

      
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    SECTION
8.14        Agency for
Perfection.

    

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

    

    SECTION
8.15        Delinquent
Lender.

    

    (a)        If
for any reason any Lender (i) shall fail or refuse to abide by its obligations
under this Agreement, including without limitation its obligation to make
available to Administrative Agent its Commitment Percentage of any Revolving
Credit Loans, expenses or setoff or purchase its Commitment Percentage of a
participation interest in the Swingline Loans or Letter of Credit Outstandings
and such failure is not cured within one (1) Business Day of receipt from the
Administrative Agent of written notice thereof, (ii) shall fail, within three
(3) Business Days after a written request by the Administrative Agent (a copy of
which was sent to the Lead Borrower), to confirm that it will comply with the
terms of this Agreement relating to its Commitments or (iii) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding (each,
a “Delinquent
Lender”), then, in addition to the rights and remedies that may be
available to the other Secured Parties, the Loan Parties or any other party at
law or in equity, and not at limitation thereof, (i) such Delinquent Lender’s
right to participate in the administration of, or decision-making rights related
to, the Revolving Credit Loans, this Agreement or the other Loan Documents shall
be suspended during the pendency of such failure or refusal, (ii) a Delinquent
Lender shall be deemed to have assigned any and all payments due to it from the
Loan Parties, whether on account of outstanding Revolving Credit Loans,
interest, fees or otherwise, to the remaining non-Delinquent Lenders for
application to, and reduction of, their proportionate shares of all outstanding
Obligations until, as a result of application of such assigned payments the
Lenders’ respective Commitment Percentages of all outstanding Obligations (other
than Other Liabilities) shall have returned to those in effect immediately prior
to such delinquency and without giving effect to the nonpayment causing such
delinquency, and (iii) at the option of the Administrative Agent or the Lead
Borrower (with the consent of the Administrative Agent, such consent not to be
unreasonably withheld or delayed), any amounts payable to such Delinquent Lender
hereunder (whether on account of principal, interest, fees or otherwise) shall,
in lieu of being distributed to such Delinquent Lender, be retained by the
Administrative Agent as cash collateral, and may be utilized by the
Administrative Agent, for future funding obligations of the Delinquent Lender in
respect of any Revolving Credit Loan or existing or future participating
interest in any Swingline Loan or Letter of Credit.  The Delinquent
Lender’s decision-making and participation rights and rights to payments as set
forth in clauses (i) and (ii) hereinabove shall be restored only upon the
payment by the Delinquent Lender of its Commitment Percentage of any Obligations
(other than Other Liabilities), any participation obligation, or expenses as to
which it is delinquent, together with interest thereon at the Default Rate from
the date when originally due until the date upon which any such amounts are
actually paid.

    
      
         

      

      
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    (b)        The
non-Delinquent Lenders shall also have the right, but not the obligation, in
their respective, sole and absolute discretion, to cause the termination and
assignment without any further action by the Delinquent Lender for no cash
consideration (pro rata, based on the
respective Commitments of those Lenders electing to exercise such right), the
Delinquent Lender’s Commitment to fund future Credit Extensions.  Upon
any such purchase of the Commitment Percentage of any Delinquent Lender, the
Delinquent Lender’s share in future Credit Extensions and its rights under the
Loan Documents with respect thereto shall terminate on the date of purchase, and
the Delinquent Lender shall promptly execute all documents reasonably requested
to surrender and transfer such interest, including, if so requested, an
Assignment and Acceptance.  The Borrowers may, on ten (10) days’ prior
written notice to the Administrative Agent and such Delinquent Lender, replace
such Delinquent Lender (in its capacity as a Lender) by causing such Delinquent
Lender to (and such Delinquent Lender shall be obligated to) assign (with the
assignment fee to be paid by the Borrowers in such instance) all of its rights
and obligations under this Agreement to one or more Eligible
Assignees.

    

    (c)        Each
Delinquent Lender shall indemnify the Administrative Agent and each
non-delinquent Lender from and against any and all loss, damage or expenses,
including but not limited to reasonable attorneys’ fees and funds advanced by
the Administrative Agent or by any non-delinquent Lender, on account of a
Delinquent Lender’s failure to timely fund its Commitment Percentage of a
Revolving Credit Loan or to otherwise perform its obligations under the Loan
Documents.

    

    SECTION
8.16        Collateral
Matters.

    

    (a)           
The Lenders hereby irrevocably authorize the Collateral Agent to release any
Lien upon any Collateral (i) upon the termination of the Commitments and payment
and satisfaction in full of all Obligations (other than contingent indemnity
obligations with respect to then unasserted claims), all Letters of Credit shall
have expired or terminated (or been collateralized in a manner satisfactory to
the applicable Issuing Bank) and all Letter of Credit Outstandings have been
reduced to zero (or collateralized in a manner satisfactory to the applicable
Issuing Bank), or (ii) constituting property being sold, transferred or disposed
of in a Permitted Disposition upon receipt by the Administrative Agent of the
Net Proceeds thereof to the extent required by this Agreement. Except as
provided above, the Collateral Agent will not release any of the Collateral
Agent’s Liens without the prior written authorization of the Applicable Lenders.
Upon request by any Agent or any Loan Party at any time, the Lenders will
confirm in writing the Collateral Agent’s authority to release
any  Liens upon particular types or items of Collateral pursuant to
this SECTION 8.16.

    

    (b)           
Upon at least two (2) Business Days’ prior
written request by the Lead Borrower, the Collateral Agent shall (and is hereby
irrevocably authorized by the Lenders to) execute such documents as may be
necessary to evidence the release of the Liens upon any Collateral described in
SECTION 8.16(a); provided, however, that (i) the
Collateral Agent shall not be required to execute any such document on terms
which, in its reasonable opinion, would, under Applicable Law, expose the
Collateral Agent to liability or create any obligation or entail any adverse
consequence other than the release of such Liens without recourse or warranty,
and (ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Liens (other than those expressly being released) upon (or
obligations of any Loan Party in respect of) all interests retained by any Loan
Party, including (without limitation) the proceeds of any sale, all of which
shall continue to constitute part of the Collateral.

    
      
         

      

      
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    SECTION
8.17        Co-Syndication Agents,
Co-Documentation Agents, Senior Managing Agents and
Arrangers.

    

    Notwithstanding
the provisions of this Agreement or any of the other Loan Documents, the
Co-Syndication Agents, the Co-Documentation Agents, the Senior Managing Agents
and the Arrangers shall have no powers, rights, duties, responsibilities or
liabilities with respect to this Agreement and the other Loan Documents except
as otherwise expressly provided herein.

    

    ARTICLE
IX

    

    Miscellaneous

    

    SECTION
9.01        Notices.

    

    Except in
the case of notices and other communications expressly permitted to be given by
telephone or electronically, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy or e-mail,
as follows:

    

    (a)           
if to any Loan Party, to it at 1830 Route 130, Burlington, New Jersey 08016,
Attention: Legal Department (Telecopy No. 609-239-9675), with copies to Bain
Capital Partners, LLC, 111 Huntington Avenue, Boston, Massachusetts 02199,
Attention: David Humphrey (Telecopy No. (617) 516-2010), (E-Mail:
dhumphrey@baincapital.com), and Kirkland & Ellis LLP, 300 North LaSalle
Street, Chicago, Illinois 60654, Attention: Linda K. Myers, P.C. (Telecopy No.
(312) 862-2200), (E-Mail: linda.myers@kirkland.com);

    

    (b)           
if to the Administrative Agent, the Collateral Agent or the Swingline Lender to
Bank of America, N.A., 100 Federal Street, 9th
Floor, Boston, Massachusetts 02110, Attention Kathleen Dimock (Telecopy No.
(617) 434-4312), (E-Mail Kathleen.dimock@baml.com), with a copy to Riemer &
Braunstein, LLP, Three Center Plaza, Boston, Massachusetts 02108, Attention:
David S. Berman, Esquire (Telecopy No. (617) 880-3456), (E-Mail
dberman@riemerlaw.com);

    

    (c)           
if to any other Credit Party, to it at its address (or telecopy number or
electronic mail address) set forth on the signature pages hereto or on any
Assignment and Acceptance.

    
      
         

      

      
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    Notwithstanding
the foregoing, any notice hereunder sent by e-mail shall be solely for the
distribution of (i) routine communications such as financial statements and (ii)
documents and signature pages for execution by the parties hereto, and for no
other purpose.  Unless the Administrative Agent otherwise prescribes,
(i) notices and other communications sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or
other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient.  Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

    

    SECTION
9.02        Waivers;
Amendments.

    

    (a)        No
failure or delay by any Credit Party in exercising any right or power hereunder
or under any other Loan Document 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 a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Credit Parties hereunder and under the other Loan Documents
are cumulative and are not exclusive of any other rights or remedies that they
would otherwise have.  No waiver of any provision of any Loan Document
or consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by SECTION 9.02(b), 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 Revolving Credit Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default or Event of Default,
regardless of whether any Credit Party may have had notice or knowledge of such
Default or Event of Default at the time.

    

    (b)        Except
as otherwise specifically provided herein, neither this Agreement nor any other
Loan Document nor any provision hereof or thereof may be waived, amended or
modified except, in the case of this Agreement, pursuant to an agreement or
agreements in writing entered into by the Loan Parties and the Required Lenders
or, in the case of any other Loan Document, pursuant to an agreement or
agreements in writing entered into by the Agent(s) and the Loan Parties that are
parties thereto, in each case with the consent of the Required Lenders; provided, however, that no such
waiver, amendment, modification or other agreement shall:

    

    (i)   
         Increase the Commitment of
any Lender without the prior written consent of such Lender;

    

    (ii)    
       Without:

    

    (A) 
         the prior written
Unanimous Consent of all Lenders directly affected thereby, reduce the principal
amount of any Obligation or reduce the rate of interest thereon (other than the
waiver of the Default Rate), or reduce any fees or other amounts payable under
the Loan Documents;

    
      
         

      

      
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    (B)     
      the prior written Unanimous Consent of all
Lenders directly affected thereby, postpone the scheduled date of payment of the
principal amount of any Obligation, or any interest thereon, or any fees or
other amounts payable under the Loan Documents, or reduce the amount of, waive
or excuse any such payment, or postpone the expiration of the Commitments or
postpone the Applicable Termination Date;

    

    (C)     
      the prior written Unanimous Consent of all
Lenders, except for Permitted Dispositions or for Collateral releases as
provided in SECTION 8.16, release all or substantially all of the Collateral
from the Liens of the Security Documents;

    

    (D)    
       the prior written Unanimous Consent of
all Lenders, except as provided in SECTION 2.02, increase the Total
Commitments;

    

    (E)    
       the prior written Unanimous Consent of
all Lenders, change the definition of the terms “Availability” or “Borrowing
Base” or  or any component definition thereof if as a result thereof
the amounts available to be borrowed by the Borrowers would be increased, provided that the
foregoing shall not limit the discretion of the Administrative Agent to change,
establish or eliminate any Reserves or to add Inventory and Accounts acquired in
a Permitted Acquisition to the Borrowing Base as provided herein;

    

    (F)     
      the prior written Unanimous Consent of all
Lenders, except in connection with Permitted Dispositions, release any Loan
Party from its obligations under any Loan Document, or limit its liability in
respect of such Loan Document;

    

    (G)     
      the prior written Unanimous Consent of all
Lenders, modify the definition of Permitted Overadvance so as to increase the
amount thereof, or to cause the aggregate Commitments (or the Commitment of any
Lender) to be exceeded as a result thereof, or, except as provided in such
definition, the time period for a Permitted Overadvance;

    

    (H)    
       the prior written Unanimous Consent of
all Lenders, change SECTION 2.17, SECTION 2.18, SECTION 7.03, or SECTION
8.03;

    

    (I)        
    the prior written Unanimous Consent of all Lenders, (i)
subordinate the Obligations hereunder to any other Indebtedness, or (ii) except
as provided by operation of Applicable Law, subordinate the Liens granted
hereunder or under the other Loan Documents to any other Lien; or

    

    (J)     
       the prior written Unanimous Consent of
all Lenders, change any of the provisions of this SECTION 9.02(b) or the
definitions of “Required Lenders” or
any other provision of any Loan Document specifying the number or percentage of
Lenders required to waive, amend or modify any rights thereunder or make any
determination or grant any consent thereunder.

    
      
         

      

      
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    (iii)        
  Without prior written consent of the Agents or the Issuing Banks, as
the case may be, affect the rights or duties of the Agents or the Issuing
Banks.

    

    (c)        Notwithstanding
anything to the contrary contained in this SECTION 9.02, in the event that the
Lead Borrower shall request that this Agreement or any other Loan Document be
modified, amended or waived in a manner which would require the consent of the
Lenders pursuant to SECTION 9.02(b) and such amendment is approved by the
Required Lenders, but not by the requisite percentage of all the Lenders, the
Lead Borrower and the Administrative Agent shall be permitted to amend this
Agreement without the consent of the Lender or Lenders which did not agree to
the modification or amendment requested by the Lead Borrower (such Lender or
Lenders, collectively the “Minority Lenders”)
subject to their providing for (i) the termination of the Commitment of each of
the Minority Lenders, (ii) the addition to this Agreement of one or more other
financial institutions which would qualify as an Eligible Assignee, subject to
the reasonable approval of the Administrative Agent, or an increase in the
Commitment of one or more of the Required Lenders, so that the Total Commitments
after giving effect to such amendment shall be in the same amount as the
aggregate Commitments immediately before giving effect to such amendment, (iii)
if any Revolving Credit Loans are outstanding at the time of such amendment, the
making of such additional Revolving Credit Loans by such new or increasing
Lender or Lenders, as the case may be, as may be necessary to repay in full the
outstanding Revolving Credit Loans (including principal, interest, fees and
other amounts due and owing under the Loan Documents) of the Minority Lenders
immediately before giving effect to such amendment and (iv) such other
modifications to this Agreement or the Loan Documents as may be appropriate and
incidental to the foregoing.

    

    (d)        No
notice to or demand on any Loan Party shall entitle any Loan Party to any other
or further notice or demand in the same, similar or other circumstances. Each
holder of a Note shall be bound by any amendment, modification, waiver or
consent authorized as provided herein, whether or not a Note shall have been
marked to indicate such amendment, modification, waiver or consent and any
consent by a Lender, or any holder of a Note, shall bind any Person subsequently
acquiring a Note, whether or not a Note is so marked. No amendment to this
Agreement or any other Loan Document shall be effective against any Loan Party
unless signed by such Loan Party.

    

    SECTION
9.03        Expenses; Indemnity; Damage
Waiver.

    

    (a)        The
Loan Parties shall jointly and severally pay all Credit Party Expenses incurred
as of the Effective Date on the Effective Date.  Thereafter, the Loan
Parties shall jointly and severally pay all Credit Party Expenses within thirty
(30) days after receipt of an invoice therefor setting forth such expenses in
reasonable detail; provided that in the event the
Loan Parties have a bona fide dispute with any such expenses, payment of such
disputed amounts shall not be required until the earlier of the date such
dispute is resolved to the reasonable satisfaction of the Loan Parties or thirty
(30) days after receipt of any such invoice (and any such disputed amount which
is so paid shall be subject to a reservation of the Loan Parties’ rights with
respect thereto).

    

    (b)        The
Loan Parties shall, jointly and severally, indemnify the Secured Parties and
each of their Subsidiaries and Affiliates, and each of the respective
stockholders, directors, officers, employees, agents, attorneys, and advisors of
any of the foregoing Persons (each such Person being called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all damages, actual
out-of-pocket losses, claims, actions, causes of action, settlement payments,
obligations, liabilities and related expenses, including the reasonable fees,
charges and disbursements of one counsel for the Agents and one counsel for all
other Indemnitees (other than the Agents) incurred, suffered, sustained or
required to be paid by, or asserted against, any Indemnitee arising out of, in
any way connected with, or as a result of (i) the execution or delivery of any
Loan Document or any other agreement or instrument contemplated hereby, the
performance by the parties to the Loan Documents or the Existing Credit
Agreement of their respective obligations thereunder or the consummation of the
transactions contemplated by the Loan Documents or the Existing Credit Agreement
or any other transactions contemplated hereby, (ii) any Credit Extension or the
use of the proceeds therefrom (including any refusal by any 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 currently or formerly owned or operated by any
Loan Party or any Subsidiary, or any Environmental Liability related in any way
to any Loan Party or any Subsidiary, (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to or arising from any of the
foregoing, whether based on contract, tort or any other theory and regardless of
whether any Indemnitee is a party thereto or (v) any documentary taxes,
assessments or similar charges made by any Governmental Authority by reason of
the execution and delivery of this Agreement or any other Loan Document; provided, however, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (w) are determined by a
court of competent jurisdiction or another independent tribunal having
jurisdiction to have resulted from the gross negligence, bad faith or willful
misconduct of any Agent or such Indemnitee or any Affiliate of such Indemnitee
(or any officer, director, employee, advisor or agent of such Indemnitee or any
such Indemnitee’s Affiliates), (x) are relating to disputes among Indemnitees,
(y) are determined by a court of competent jurisdiction or another independent
tribunal having jurisdiction to have resulted from a breach by such Indemnitee
of its obligations to a Loan Party, or (z) which constitute indirect,
consequential, special or punitive damages.  In connection with any
indemnified claim hereunder, the Indemnitee shall be entitled to select its own
counsel and the Loan Parties shall promptly pay the reasonable fees and expenses
of such counsel.

    
      
         

      

      
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    (c)        No
party to this Agreement shall assert and, to the extent permitted by Applicable
Law, each such party hereby waives, any claim against any other party to this
Agreement or any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby or thereby, the
transactions contemplated by the Loan Documents, any Credit Extension or the use
of the proceeds thereof.

    

    (d)        The
provisions of paragraphs (b) and (c) of this SECTION 9.03 shall remain operative
and in full force and effect regardless of the termination of this Agreement,
the consummation of the transactions contemplated hereby, the repayment of any
of the Obligations or the assignment of any of the Obligations to a third party,
the invalidity or unenforceability of any term or provision of any Loan
Document, or any investigation made by or on behalf of any Credit Party. All
amounts due under this SECTION 9.03 shall be payable within thirty (30) days of
written demand therefor, which written demand shall set forth such amounts in
reasonable detail.

    
      
         

      

      
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    SECTION
9.04        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
(including any Affiliate of an Issuing Bank that issues any Letter of Credit),
except that no Loan Party may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Agents and the
Lenders (and any such attempted assignment or transfer 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 (including any
Affiliate of an Issuing Bank that issues any Letter of Credit) and, to the
extent expressly contemplated hereby, Indemnitees, any legal or equitable right,
remedy or claim under or by reason of this Agreement.

    

    (b)        Any
Lender may, with the consent of the Administrative Agent (which consent shall
not be unreasonably withheld or delayed) and, so long as no Specified Default
has occurred and is continuing, the Lead Borrower (which consent shall not be
unreasonably withheld or delayed), assign to one or more Eligible Assignees
(other than any Person in direct competition with a Loan Party’s business) all
or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment and the Revolving Credit Loans at the time owing
to it); provided, however, that no such
consent shall be required in connection with any assignment to another Lender or
to an Affiliate of a Lender or an Approved Fund, and provided further that, each assignment
shall be subject to the following conditions: (i) no assignment may be made by
an Extending Lender to a Non-Extending Lender unless such Non-Extending Lender
agrees to become an Extending Lender with respect to the portion of the
Extending Lender’s Commitment and Revolving Credit Loans assigned to it; (ii)
any assignment by a Non-Extending Lender to an Extending Lender shall not modify
the tenor or maturity of, or pricing for, the Commitment and Revolving Credit
Loans so assigned, (iii) except in the case of an assignment to a Lender or an
Affiliate or Approved Fund of a Lender, the amount of the Commitment or
Revolving Credit Loans of the assigning Lender subject to a partial assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$10,000,000 or, if less, the entire remaining amount of the assigning Lender’s
Commitment or Revolving Credit Loans;  (iv) each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations; and (v) 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 $3,500.00, unless such fee is
waived by the Administrative Agent.  Subject to acceptance and
recording thereof pursuant to SECTION 9.04(d), from and after the effective date
specified in each Assignment and Acceptance the 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 SECTION 9.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
SECTION 9.04(b) shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
SECTION 9.04(e).  The Loan Parties hereby acknowledge and agree that
any effective assignment shall give rise to a direct obligation of the Loan
Parties to the assignee and that the assignee shall be considered to be a
“Credit Party” for all purposes under this Agreement and the other Loan
Documents.

    
      
         

      

      
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    (c)        The
Administrative Agent, acting for this purpose as an agent of the Loan Parties,
shall maintain at one of its offices in Boston, Massachusetts, a copy of each
Assignment and Acceptance delivered to it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Revolving Credit Loans and Letter of Credit
Disbursements owing to, each Lender pursuant to the terms hereof from time to
time.  The entries in the Register shall be conclusive and the Loan
Parties and Credit Parties shall 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 absent any manifest error, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Lead Borrower,
any Issuing Bank and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

    

    (d)        Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, the processing and recordation fee referred to
in SECTION 9.04(b) and any written consent to such assignment required by
SECTION 9.04(a), the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the
Register.  No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this
SECTION 9.04(d).

    

    (e)        Any
Lender may, without the consent of the Loan Parties or any other Person, sell
participations to one or more banks or other entities (other than any Person in
direct competition with a Loan Party’s business) (a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Revolving Credit Loans
owing to it), subject to the following:

    

    (i)   
         such Lender’s obligations
under this Agreement and the other Loan Documents shall remain
unchanged;

    

    (ii)    
       such Lender shall remain solely
responsible to the other parties hereto for the performance of such
obligations;

    

    (iii)    
      the Loan Parties and other Credit Parties
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement;

    

    (iv)          any
agreement or instrument pursuant to which a Lender sells a participation in the
Commitments, the Revolving Credit Loans and the Letters of Credit Outstandings
shall provide that such Lender shall retain the sole right to enforce the Loan
Documents and to approve any amendment, modification or waiver of any provision
of the Loan Documents; provided, however,
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
described in the proviso to SECTION 9.02(b)(ii)(A) or (B) that affects such
Participant;

    

    (v)       
    subject to clauses (viii) and (ix) of this SECTION
9.04(e), the Loan Parties agree that each Participant shall be entitled to the
benefits of SECTION 2.14 and SECTION 2.23 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to SECTION
9.04(b);

    
      
         

      

      
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    (vi)   
       to the extent permitted by law, each
Participant also shall be entitled to the benefits of SECTION 9.08 as though it
were a Lender so long as such Participant agrees to be subject to SECTION
2.21(c) as though it were a Lender;

    

    (vii)          each
Lender, acting for this purpose as an agent of the Loan Parties, shall maintain
at its offices a record of each agreement or instrument effecting any
participation and a register (each a “Participation
Register”) meeting the requirements of 26 CFR §5f.103 1(c) for the
recordation of the names and addresses of its Participants and their rights with
respect to principal amounts and other Obligations from time to
time.  The entries in each Participation Register shall be conclusive
and the Loan Parties and the Credit Parties may treat each Person whose name is
recorded in a Participant Register as a Participant for all purposes of this
Agreement (including, for the avoidance of doubt, for purposes of entitlement to
benefits under SECTION 2.14, SECTION 2.23, and SECTION 9.08). The Participation
Register shall be available for inspection by the Lead Borrower and any Credit
Party at any reasonable time and from time to time upon reasonable prior
notice;

    

    (viii)         a
Participant shall not be entitled to receive any greater payment under SECTION
2.14 or SECTION 2.23 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 Lead Borrower’s
prior written consent; and

    

    (ix)          
 a Participant that would be a Foreign Lender if it were a Lender shall not
be entitled to the benefits of SECTION 2.23 unless the Lead Borrower is notified
of the participation sold to such Participant and such Participant agrees, for
the benefit of the Loan Parties, to comply with SECTION 2.23(e) as though it
were a Lender and such Participant is eligible for exemption from, or reduction
in,  the withholding Tax referred to therein, following compliance
with SECTION 2.23(e).

    

    (f)         Any
Credit Party may at any time pledge or grant a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Credit
Party, including any pledge or grant to secure obligations to any of the twelve
Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12
U.S.C. Section 341, and this SECTION 9.04 shall not apply to any such pledge or
grant of a security interest; provided, however, that no such
pledge or grant of a security interest shall release a Credit Party from any of
its obligations hereunder or substitute any such pledgee or grantee for such
Credit Party as a party hereto.

    

    (g)        The
Loan Parties authorize each Credit Party to disclose to any Participant or
grantee and any prospective Participant or grantee, subject to the provisions of
SECTION 9.15, any and all financial information in such Credit Party’s
possession concerning the Loan Parties which has been delivered to such Credit
Party by or on behalf of the Loan Parties pursuant to this Agreement or which
has been delivered to such Credit Party by or on behalf of the Loan Parties in
connection with such Credit Party’s credit evaluation of the Loan Parties prior
to becoming a party to this Agreement.

    
      
         

      

      
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    SECTION
9.05        Survival.

    

    All
covenants, agreements, indemnities, representations and warranties made by the
Loan Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of the Loan Documents and
the making of any Revolving Credit 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 any Credit Party may have had notice or knowledge of
any Default or Event of Default or incorrect representation or warranty at the
time any credit is extended hereunder, and shall continue in full force and
effect until (i) the Commitments have expired or been terminated, (ii) the
principal of and interest on each Revolving Credit Loan and all fees and other
Obligations (other than contingent indemnity obligations with respect to then
unasserted claims) shall have been paid in full, (iii) all Letters of Credit
shall have expired or terminated (or been cash collateralized in a manner
satisfactory to the applicable Issuing Bank) and (iv) all Letter of Credit
Outstandings have been reduced to zero (or cash collateralized in a manner
satisfactory to the applicable Issuing Bank).  The provisions of
SECTION 2.14, SECTION 2.23, SECTION 9.03 and Article VIII shall survive and
remain in full force and effect regardless of the repayment of the Obligations
or any assignment thereof, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement or any provision
hereof.  In connection with the termination of this Agreement and the
release and termination of the security interests in the Collateral, the Agents,
on behalf of themselves and the other Credit Parties, may require such
indemnities as they shall reasonably deem necessary or appropriate to protect
the Credit Parties against (x) loss on account of credits previously applied to
the Obligations that may subsequently be reversed or revoked, (y) any
obligations that may thereafter arise with respect to the Other Liabilities, and
(z) any Obligations that may thereafter arise under SECTION 9.03
hereof.

    

    SECTION
9.06        Counterparts; Integration;
Effectiveness.

    

    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 and
the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all contemporaneous
or previous agreements and understandings, oral or written, relating to the
subject matter hereof.  Except as provided in SECTION 4.01, this
Agreement shall become effective when it shall have been executed by the
applicable Credit Parties and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.  Delivery of an executed counterpart of a signature page of
this Agreement by telecopy or e-mail shall be effective as delivery of a
manually executed counterpart of this Agreement.

    

    SECTION
9.07        Severability.

    

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

    
      
         

      

      
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    SECTION
9.08        Right of
Setoff.

    

    If any
Specified Default shall have occurred and be continuing, each Secured Party,
each Participant and each of their respective Affiliates is hereby authorized at
any time and from time to time, to the fullest extent permitted by law, to
setoff and apply any and all deposits (general or special, time or demand,
provisional or final, but excluding any payroll, trust and tax withholding
accounts) at any time held and other obligations at any time owing by such
Secured Party, Participant or Affiliate to or for the credit or the account of
the Loan Parties against any and all of the Obligations of the Loan Parties now
or hereafter existing under this Agreement or other Loan Document to the extent
such are then due and owing, although such Obligations may be otherwise fully
secured; provided
that such Secured Party shall provide the Lead Borrower with written
notice promptly after its exercise of such right of setoff. The rights of each
Secured Party under this SECTION 9.08 are in addition to other rights and
remedies (including other rights of setoff) that such Credit Party may
have.  No Credit Party will, or will permit its Participant to,
exercise its rights under this SECTION 9.08 without the consent of the
Administrative Agent or the Required Lenders.  ANY AND ALL RIGHTS TO
REQUIRE THE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO
ANY OTHER COLLATERAL WHICH SECURES ANY OF THE OBLIGATIONS PRIOR TO THE EXERCISE
BY ANY SECURED PARTY, PARTICIPANT OR AFFILIATE OF ITS RIGHT OF SETOFF UNDER THIS
SECTION ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

    

    SECTION
9.09        Governing Law; Jurisdiction;
Consent to Service of Process.

    

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

    

    (b)        Each
Loan Party agrees that any suit for the enforcement of this Agreement or any
other Loan Document may be brought in the courts of the State of New York
sitting in the Borough of Manhattan or any federal court sitting therein as the
Administrative Agent may elect in its sole discretion and consents to the
non-exclusive jurisdiction of such courts. Each party to this Agreement hereby
waives any objection which it may now or hereafter have to the venue of any such
suit or any such court or that such suit is brought in an inconvenient forum and
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 shall
affect any right that any Credit Party may otherwise have to bring any action or
proceeding relating to this Agreement against a Loan Party or its properties in
the courts of any jurisdiction.

    

    (c)        Each
Loan Party agrees that any action commenced by any Loan Party asserting any
claim or counterclaim arising under or in connection with this Agreement or any
other Loan Document shall be brought solely in a court of the State of New York
sitting in the Borough of Manhattan or any federal court sitting therein as the
Administrative Agent may elect in its sole discretion and consents to the
exclusive jurisdiction of such courts with respect to any such
action.

    
      
         

      

      
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    (d)        Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in SECTION 9.01. Nothing in this Agreement or any other
Loan Document will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.

    

    SECTION
9.10        WAIVER OF JURY
TRIAL.

    

    EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN  ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY); AND WAIVES DUE DILIGENCE, DEMAND,
PRESENTMENT AND PROTEST AND ANY NOTICES THEREOF AS WELL AS NOTICE OF
NONPAYMENT.  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 WAIVERS, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

    

    SECTION
9.11        Press Releases and Related
Matters.

    

    Each
Borrower consents to the publication by the Administrative Agent of customary
trade advertising material in tombstone format relating to the financing
transactions contemplated by this Agreement using any Borrower’s name, and with
the consent of the Lead Borrower, logo or trademark.  The
Administrative Agent shall provide a draft reasonably in advance of any
advertising material to the Lead Borrower for review and comment prior to the
publication thereof.  The Administrative Agent and the Lenders reserve
the right to provide to industry trade organizations information necessary and
customary for inclusion in league table measurements.

    

    SECTION
9.12        Headings.

    

    Article
and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

    

    SECTION
9.13        Interest Rate
Limitation.

    

    Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to
any Revolving Credit Loan, together with all fees, charges and other amounts
that are treated as interest on such Revolving Credit Loan under Applicable Law
(collectively, the “Charges”), shall be
found by a court of competent jurisdiction in a final order to exceed the
maximum lawful rate (the “Maximum Rate”) that
may be contracted for, charged, taken, received or reserved by the Lender
holding such Revolving Credit Loan in accordance with Applicable Law, the rate
of interest payable in respect of such Revolving Credit 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 Revolving Credit 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 Revolving Credit 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 Effective
Rate to the date of repayment, shall have been received by such
Lender.

    
      
         

      

      
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    SECTION
9.14        Additional
Waivers.

    

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

    

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

    

    (c)        To
the fullest extent permitted by Applicable Law, each Loan Party waives any
defense based on or arising out of any defense of any other Loan Party or the
unenforceability of the Obligations or any part thereof from any cause, or the
cessation from any cause of the liability of any other Loan Party, other than
the payment in full in cash of all the Obligations after the termination of all
Commitments to any Loan Party under any Loan Document. The Collateral Agent and
the other Credit Parties may, at their election, foreclose on any security held
by one or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust any
part of the Obligations, make any other accommodation with any other Loan Party,
or exercise any other right or remedy available to them against any other Loan
Party, without affecting or impairing in any way the liability of any Loan Party
hereunder except to the extent that all the Obligations have been indefeasibly
paid in full in cash and performed in full after the termination of Commitments
to any Loan Party under any Loan Document.  Pursuant to Applicable
Law, each Loan Party waives any defense arising out of any such election even
though such election operates, pursuant to Applicable Law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of
such Loan Party against any other Loan Party, as the case may be, or any
security.

    
      
         

      

      
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    (d)        Except
as otherwise specifically provided herein, each Borrower is obligated to repay
the Obligations as joint and several obligors under this
Agreement.  Upon payment by any Loan Party of any Obligations, all
rights of such Loan Party against any other Loan Party arising as a result
thereof by way of right of subrogation, contribution, reimbursement, indemnity
or otherwise shall in all respects be subordinate and junior in right of payment
to the prior payment in full in cash of all the Obligations (other than
contingent indemnity obligations for then unasserted claims) and the termination
of all Commitments to any Loan Party under any Loan Document.  If any
amount shall erroneously be paid to any Loan Party on account of (i) such
subrogation, contribution, reimbursement, indemnity or similar right or (ii) any
such indebtedness of any Loan Party, such amount shall be held in trust for the
benefit of the Credit Parties and shall forthwith be paid to the Administrative
Agent to be credited against the payment of the Obligations, whether matured or
unmatured, in accordance with the terms of this Agreement and the other Loan
Documents.  Subject to the foregoing, to the extent that any Loan
Party shall, under this Agreement as a joint and several obligor, repay any of
the Obligations constituting Revolving Credit Loans made to another Loan Party
hereunder (an "Accommodation
Payment"), then the Loan Party making such Accommodation Payment shall be
entitled to contribution and indemnification from, and be reimbursed by, each of
the other Loan Parties in an amount equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Loan Party’s Allocable
Amount and the denominator of which is the sum of the Allocable Amounts of all
of the Loan Parties.  As of any date of determination, the "Allocable Amount" of
each Loan Party shall be equal to the maximum amount of liability for
Accommodation Payments which could be asserted against such Loan Party hereunder
without (a) rendering such Loan Party "insolvent" within the meaning of Section
101 (31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer
Act ("UFTA") or
Section 2 of the Uniform Fraudulent Conveyance Act ("UFCA"), (b) leaving
such Loan Party with unreasonably small capital or assets, within the meaning of
Section 548 of the Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the
UFCA, or (c) leaving such Loan Party unable to pay its debts as they become due
within the meaning of Section 548 of the Bankruptcy Code or Section 4 of the
UFTA, or Section 5 of the UFCA.

    

    (e)        Without
limiting the generality of the foregoing, or of any other waiver or other
provision set forth in this Agreement, each Loan Party waives all rights and
defenses arising out of an election of remedies by any Credit Party, even though
that election of remedies, such as a nonjudicial foreclosure with respect to
security for a guaranteed obligation, has destroyed such Credit Party’s rights
of subrogation and reimbursement against such Loan Party by the operation of
Section 580(d) of the California Code of Civil Procedure or
otherwise.  Each Loan Party waives all rights and defenses that such
Loan Party may have because the Obligations are secured by Real Estate which
means, among other things: (i) a Credit Party may collect from any Loan Party
without first foreclosing on any Real Estate or personal property Collateral
pledged by a Loan Party; (ii) if any Credit Party forecloses on any Real Estate
pledged by any Loan Party, the amount of the Obligations may be reduced only by
the price for which that Real Estate is sold at the foreclosure sale, even if
the Real Estate is worth more than the sale price; and (iii) the Credit Parties
may collect Obligations from a Loan Party even if a Credit Party, by foreclosing
on any such Real Estate, has destroyed any right any Loan Party may have to
collect from the other Loan Parties. This is an unconditional and irrevocable
waiver of any rights and defenses any Loan Party may have because the
Obligations are secured by Real Estate.  These rights and defenses
include, but are not limited to, any rights or defenses based upon Section 580a,
580b, 580d or 726 of the California Code of Civil Procedure.  Each
Loan Party hereby absolutely, knowingly, unconditionally, and expressly waives
any and all claim, defense or benefit arising directly or indirectly under any
one or more of Sections 2787 to 2855 inclusive of the California Civil Code or
any similar law of California.

    
      
         

      

      
        139

        
          

        

      

      
         

      

    

    (f)         Without
limiting the generality of the foregoing, or of any other waiver or other
provision set forth in this Agreement, each Loan Party waives all rights under
the provisions of Nevada Revised Statutes 40.430 to the extent the waiver is
permitted by Nevada Revised Statutes 40.495 or other Applicable Law in order to
allow the enforcement of the Obligations against each such Loan Party prior to
exercising rights against any Collateral or any other Loan Party.

    

    (g)        Each
Loan Party hereby agrees to keep each other Loan Party fully apprised at all
times as to the status of its business, affairs, finances, and financial
condition, and its ability to perform its Obligations under the Loan Documents,
and in particular as to any adverse developments with respect
thereto.  Each Loan Party hereby agrees to undertake to keep itself
apprised at all times as to the status of the business, affairs, finances, and
financial condition of each other Loan Party, and of the ability of each other
Loan Party to perform its Obligations under the Loan Documents, and in
particular as to any adverse developments with respect to any
thereof.  Each Loan Party hereby agrees, in light of the foregoing
mutual covenants to inform each other, and to keep themselves and each other
informed as to such matters, that the Credit Parties shall have no duty to
inform any Loan Party of any information pertaining to the business, affairs,
finances, or financial condition of any other Loan Party, or pertaining to the
ability of any other Loan Party to perform its Obligations under the Loan
Documents, even if such information is adverse, and even if such information
might influence the decision of one or more of the Loan Parties to continue to
be jointly and severally liable for, or to provide Collateral for, the
Obligations of one or more of the other Loan Parties. To the fullest extent
permitted by Applicable Law, each Loan Party hereby expressly waives any duty of
the Credit Parties to inform any Loan Party of any such
information.

    

    (h)        Each
of the Loan Parties hereby acknowledges and agrees that such Person does not
have any offsets, defenses, claims, or counterclaims against any Credit Party
for any actions or omissions under the Existing Credit Agreement, and that if
any such Person now has, or ever did have, any such offsets, defenses, claims,
or counterclaims against any such Credit Party for any actions or omissions
under the Existing Credit Agreement, or any of its affiliates, officers,
directors, employees, attorneys, representatives, predecessors, successors, or
permitted assigns, whether known or unknown, at law or in equity, from the
Closing Date through the Effective Date, each such Person expressly WAIVES any such offsets,
defenses, claims, or counterclaims, and each such Person expressly RELEASES each Credit Party and
its affiliates, officers, directors, employees, attorneys, representatives,
predecessors, successors, and permitted assigns from any liability
therefor.

    

    SECTION
9.15        Confidentiality.

    

    Each of
the Credit Parties agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to their and their
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors involved with the financing (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and agree to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by Applicable Laws or by any subpoena or similar legal
process (the Credit Parties’ agreeing to furnish the Lead Borrower with notice
of such process and an opportunity to contest such disclosure as long as
furnishing such notice and opportunity would not result in the Credit Parties’
violation of Applicable Law), (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 an 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 and any actual or
prospective counterparty or advisors to any swap or derivative transactions
relating to the Loan Parties and the Obligations so long as such Person or any
of their Affiliates is not a competitor of any Loan Party, (g) with the consent
of the Loan Parties, (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section, or to the
knowledge of such Credit Party, the breach of any other Person’s obligation to
keep the information confidential, or (ii) becomes available to any Credit Party
on a nonconfidential basis from a source other than the Loan Parties, or (i) to
the extent that such Information is independently developed by such Credit
Party.  For the purposes of this Section, the term “Information” means
all information received from or on behalf of the Loan Parties or any of their
Affiliates relating to their business.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential
information.

    
      
         

      

      
        140

        
          

        

      

      
         

      

    

    SECTION
9.16        No Advisory or Fiduciary
Responsibility.

    

    In
connection with all aspects of each transaction contemplated hereby, the Loan
Parties each acknowledge and agree that: (i) the credit facility provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification hereof
or of any other Loan Document) are an arm’s-length commercial transaction
between the Loan Parties, on the one hand, and the Credit Parties, on the other
hand, and each of the Loan Parties is capable of evaluating and understanding
and understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with the
process leading to such transaction, each Credit Party is and has been acting
solely as a principal and is not the financial advisor, agent or fiduciary, for
the Loan Parties or any of their respective Affiliates, stockholders, creditors
or employees or any other Person; (iii) none of the Credit Parties or their
respective Affiliates has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Loan Parties with respect to any of the
transactions contemplated hereby or the process leading thereto, including with
respect to any amendment, waiver or other modification hereof or of any other
Loan Document (irrespective of whether any of the Credit Parties or any of their
respective Affiliates has advised or is currently advising any Loan Party or any
of its Affiliates on other matters) and none of the Credit Parties or their
respective Affiliates has any obligation to any Loan Party or any of its
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv) the
Credit Parties and their respective Affiliates may be engaged in a broad range
of transactions that involve interests that differ from those of the Loan
Parties and their respective Affiliates, and none of the Credit Parties or their
respective Affiliates has any obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (v) the Credit
Parties and their respective Affiliates have not provided and will not provide
any legal, accounting, regulatory or tax advice with respect to any of the
transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and each of the Loan Parties
has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate.  Each of the Loan Parties hereby
waives and releases, to the fullest extent permitted by Applicable Law, any
claims that it may have against each of the Credit Parties or any of their
respective Affiliates with respect to any breach or alleged breach of agency or
fiduciary duty.

    
      
         

      

      
        141

        
          

        

      

      
         

      

    

    SECTION
9.17        Patriot
Act.

    

    Each
Credit Party hereby notifies the Borrowers that pursuant to the requirements of
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the "Act"), it is required
to obtain, verify and record information that identifies the Borrowers, which
information includes the name and address of each Borrower and other information
that will allow such Credit Party to identify such Borrower in accordance with
the Act.  Each Borrower is in compliance, in all material respects,
with the Act.  No part of the proceeds of the Revolving Credit Loans
will be used by the Loan Parties, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

    

    SECTION
9.18        Foreign Asset Control
Regulations.

    

    Neither
of the advance of the Revolving Credit Loans nor the use of the proceeds of any
thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as
amended) (the "Trading
With the Enemy Act") or any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) (the "Foreign
Assets Control Regulations") or any enabling legislation or executive
order relating thereto (which for the avoidance of doubt shall include, but
shall not be limited to (a) Executive Order 13224 of September 21, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the "Executive Order") and
(b) the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law
107-56)).  Furthermore, none of the Borrowers or their Affiliates (a)
is or will become a "blocked person" as described in the Executive Order, the
Trading With the Enemy Act or the Foreign Assets Control Regulations or (b)
knowingly engages or will engage in any dealings or transactions, or be
otherwise associated, with any such "blocked person" or in any manner violative
of any such order.

    
      
         

      

      
        142

        
          

        

      

      
         

      

    

    SECTION
9.19        Intercreditor
Agreement.

    

    The Loan
Parties, the Agents, the Lenders and the other Credit Parties acknowledge that
the exercise of certain of the Agents’ rights and remedies hereunder may be
subject to, and restricted by, the provisions of the Intercreditor
Agreement.  Except as specified herein, nothing contained in the
Intercreditor Agreement shall be deemed to modify any of the provisions of this
Agreement and the other Loan Documents, which, as among the Loan Parties, the
Agents, the Lenders and the other Credit Parties shall remain in full force and
effect.

    

    SECTION
9.20        Florida Tax
Provisions.

    

    THIS
CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS ARE GIVEN TO EVIDENCE AN
OUT-OF-STATE LOAN AND OTHER OUT-OF-STATE CREDIT EXTENSIONS IN THE MAXIMUM AMOUNT
OF $900,000,000.  DOCUMENTARY STAMP TAXES AND NON-RECURRING INTANGIBLE
TAXES ARE BEING PAID ON THE MORTGAGES BEING RECORDED IN ORANGE, SARASOTA,
HILLSBOROUGH, AND BROWARD COUNTIES OF THE STATE OF FLORIDA IN ACCORDANCE WITH
APPLICABLE LAW. RULE 12B-4.053(31)(C), FLA. ADMIN. CODE, AND FLA. STAT.
199.133(2).

    

    SECTION
9.21        Existing Credit Agreement
Amended and Restated.

    

    Upon
satisfaction of the conditions precedent to the effectiveness of this Agreement,
(a) this Agreement shall amend and restate the Existing Credit Agreement in its
entirety (except to the extent that definitions from the Existing Credit
Agreement are incorporated herein by reference) and (b) the rights and
obligations of the parties under the Existing Credit Agreement shall be subsumed
within, and be governed by, this Agreement; provided, however, that the
Loan Parties hereby agree that (i) the Letter of Credit Outstandings under, and
as defined in, the Existing Credit Agreement on the Effective Date shall be
Letter of Credit Outstandings hereunder, and (ii) all Obligations of the Loan
Parties under, and as defined in, the Existing Credit Agreement shall remain
outstanding, shall constitute continuing Obligations secured by the Collateral,
and this Agreement shall not be deemed to evidence or result in a novation or
repayment and reborrowing of such obligations and other
liabilities.

    

    

    [SIGNATURE
PAGES FOLLOW]

    
      
         

      

      
        143

        
          

        

      

      
         

      

    

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

    

    

    
      	 
      	
              BURLINGTON COAT FACTORY
      WAREHOUSE CORPORATION, as Lead Borrower

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Robert LaPenta

            
	 
      	 
      	
              Name:

            	
              Robert
      LaPenta

            
	 
      	 
      	
              Title:

            	
              Vice
      President and Treasurer

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              THE ENTITIES LISTED ON SCHEDULE
      I HERETO, as Borrowers

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Robert LaPenta

            
	 
      	 
      	
              Name:

            	
              Robert
      LaPenta

            
	 
      	 
      	
              Title:

            	
              Vice
      President and Treasurer

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              THE ENTITIES LISTED ON SCHEDULE
      II HERETO, as Facility Guarantors

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Robert LaPenta

            
	 
      	 
      	
              Name:

            	
              Robert
      LaPenta

            
	 
      	 
      	
              Title:

            	
              Vice
      President and Treasurer

            

    

    
      
         

      

      
        S-1

        
          

        

      

      
         

      

    

    SCHEDULE
I

    

    Borrowers

    

    Burlington
Coat Factory Warehouse Corporation (Lead Borrower)

    Burlington
Coat Factory of Alabama, LLC

    Burlington
Coat Factory Warehouse of Anchorage, Inc.

    Burlington
Coat Factory of Arizona, LLC

    Burlington
Coat Factory of Arkansas, LLC

    Baby
Depot of California, LLC

    Burlington
Coat Factory of California, LLC

    Burlington
Coat Factory of San Bernardino, LLC

    MJM
Designer Shoes of California, LLC

    Burlington
Coat Factory of Colorado, LLC

    Burlington
Coat Factory of Connecticut, LLC

    Cohoes
Fashions of Connecticut, LLC

    Burlington
Coat Factory of Delaware, LLC

    Burlington
Coat Factory of Texas, L.P.

    MJM
Designer Shoes of Delaware, LLC

    Burlington
Coat Factory of Florida, LLC

    MJM
Designer Shoes of Florida, LLC

    Burlington
Coat Factory of Georgia, LLC

    Burlington
Coat Factory Warehouse of Atlanta, Inc.

    Burlington
Coat Factory of Idaho, LLC

    Burlington
Coat Factory of Illinois, LLC

    Burlington
Coat Factory Warehouse of East St. Louis, Inc.

    Burlington
Coat Factory of Indiana, LLC

    Burlington
Coat Factory of Kansas, LLC

    Burlington
Coat Factory of Kentucky, Inc.

    Burlington
Coat Factory of Louisiana, LLC

    Burlington
Coat Factory of Maine, LLC

    Burlington
Coat Factory of Maryland, LLC

    Burlington
Coat Factory of Massachusetts, LLC

    Cohoes
Fashions of Massachusetts, LLC

    Burlington
Coat Factory of Michigan, LLC

    Burlington
Coat Factory Warehouse of Detroit, Inc.

    Burlington
Coat Factory Warehouse of Redford, Inc.

    Burlington
Coat Factory Warehouse of Grand Rapids, Inc.

    Burlington
Coat Factory of Minnesota, LLC

    Burlington
Coat Factory of Missouri, LLC

    Burlington
Coat Factory of Nebraska, LLC

    Burlington
Coat Factory of Nevada, LLC

    Burlington
Coat Factory of New Hampshire, LLC

    Burlington
Coat Factory Direct Corporation

    Burlington
Coat Factory Warehouse of Edgewater Park, Inc.

    Burlington
Coat Factory of New Jersey, LLC

    Burlington
Coat Factory Warehouse of New Jersey, Inc.

    Cohoes
Fashions of New Jersey, LLC

    MJM
Designer Shoes of Moorestown, Inc.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    MJM
Designer Shoes of New Jersey, LLC

    Super
Baby Depot of Moorestown, Inc.

    Burlington
Coat Factory of New Mexico, LLC

    Burlington
Coat Factory of New York, LLC

    Georgetown
Fashions Inc.

    Monroe G.
Milstein, Inc.

    Cohoes
Fashions of New York, LLC

    MJM
Designer Shoes of New York, LLC

    Burlington
Coat Factory of North Carolina, LLC

    Burlington
Coat Factory of North Dakota, LLC

    Burlington
Coat Factory of Ohio, LLC

    Burlington
Coat Factory Warehouse of Cleveland, Inc.

    Burlington
Coat Factory of Oklahoma, LLC

    Burlington
Coat Factory of Oregon, LLC

    Burlington
Coat Factory Warehouse of Bristol, LLC

    Burlington
Coat Factory of Pennsylvania, LLC

    Burlington
Coat Factory Warehouse of Montgomeryville, Inc.

    Burlington
Coat Factory Warehouse of Cheltenham, Inc.

    Burlington
Coat Factory Warehouse of Langhorne, Inc.

    Burlington
Factory Warehouse of Reading, Inc.

    Burlington
Coat Factory Warehouse Inc.

    MJM
Designer Shoes of Pennsylvania, LLC

    Cohoes
Fashions of Cranston, Inc.

    Burlington
Coat Factory of South Carolina, LLC

    Burlington
Coat Factory Warehouse of Charleston, Inc.

    Burlington
Coat Factory Warehouse of Memphis, Inc.

    Burlington
Coat Factory Warehouse of Shelby, Inc.

    Burlington
Coat Factory Warehouse of Hickory Commons, Inc.

    Burlington
Coat Factory Warehouse of Baytown, Inc.

    MJM
Designer Shoes of Texas, Inc.

    Burlington
Coat Factory of Utah, LLC

    Burlington
Coat Factory of Virginia, LLC

    Burlington
Coat Factory of Pocono Crossing, LLC

    Burlington
Coat Factory Warehouse of Coliseum, Inc.

    Burlington
Coat Factory of Washington, LLC

    Burlington
Coat Factory of West Virginia, LLC

    Burlington
Coat Factory of Wisconsin, LLC

    BCF
Cards, Inc.

    Burlington
Coat Factory of Puerto Rico, LLC

    Burlington
Coat Factory of Hawaii, LLC

    Burlington
Coat Factory of Montana, LLC

    Burlington
Coat Factory of South Dakota, LLC

    Burlington
Coat Factory of Vermont, LLC

    Burlington
Coat Factory of Iowa, LLC

    Burlington
Coat Factory of Mississippi, LLC

    Burlington
Coat Factory of Rhode Island, LLC

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
II

    

    Facility
Guarantors

    

    Burlington
Coat Factory Holdings, Inc.

    Burlington
Coat Factory Investments Holdings, Inc.

    Burlington
Coat Factory Realty of Huntsville, LLC

    Burlington
Coat Factory Realty of Mesa, Inc.

    Burlington
Coat Factory Realty of Desert Sky, Inc.

    Burlington
Coat Factory Realty of Dublin, Inc.

    Burlington
Coat Factory Realty of Florin, Inc.

    Burlington
Coat Factory Realty of Ventura, Inc.

    Burlington
Coat Realty of East Windsor, Inc.

    Burlington
Coat Factory of Texas, Inc.

    C.F.I.C.
Corporation

    Burlington
Coat Factory Realty Corp.

    Burlington
Coat Factory Realty of University Square, Inc.

    Burlington
Coat Factory Realty of Coral Springs, Inc.

    Burlington
Coat Factory Realty of West Colonial, Inc.

    Burlington
Coat Factory Realty of Orlando, Inc.

    Burlington
Coat Factory Realty of Sarasota, Inc.

    K&T
Acquisition Corp.

    Bee Ridge
Plaza, LLC

    Burlington
Coat Factory Realty of Morrow, Inc.

    Burlington
Coat Realty of Gurnee, Inc.

    Burlington
Coat Factory Realty of Bloomingdale, Inc.

    Burlington
Coat Factory Realty of River Oaks, Inc.

    Burlington
Coat Factory Realty of Greenwood, Inc.

    Burlington
Coat Factory Realty of North Attleboro, Inc.

    Burlington
Coat Factory Realty of Des Peres, Inc.

    Burlington
Coat Realty of Las Vegas, Inc.

    Burlington
Coat Factory Realty of Edgewater Park, Inc.

    Burlington
Coat Factory Realty of Paramus, Inc.

    Burlington
Coat Factory Realty of Pinebrook, Inc.

    Burlington
Coat Factory Warehouse of Edgewater Park Urban Renewal Corp.

    Burlington
Coat Factory Realty of Yonkers, Inc.

    LC
Acquisition Corp.

    Burlington
Coat Factory Realty of Tulsa, Inc.

    Burlington
Coat Factory Realty of West Mifflin, Inc.

    Burlington
Coat Factory Realty of Langhorne, Inc.

    Burlington
Coat Factory Realty of Whitehall, Inc.

    Burlington
Coat Factory Realty of Memphis, Inc.

    Burlington
Coat Realty of Plano, Inc.

    Burlington
Coat Realty of Houston, Inc.

    Burlington
Coat Factory Realty of Westmoreland, Inc.

    Burlington
Coat Factory Realty of Bellaire, Inc.

    Burlington
Coat Factory Realty of El Paso, Inc.

    Burlington
Coat Realty of Potomac, Inc.

    Burlington
Coat Factory Realty of Fairfax, Inc.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Burlington
Coat Factory Realty of Coliseum, Inc.

    Burlington
Coat Factory Realty of Franklin, Inc.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              BANK OF AMERICA, N.A.,
      As Administrative Agent, as Collateral Agent, and as Issuing
      Bank

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Roger
      Malouf

            
	 
      	 
      	
              Name:

            	
              Roger
      Malouf

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	
              100
      Federal Street, 9th
      Floor

            
	 
      	
              Boston,
      Massachusetts 02110

            
	 
      	
              Attn:  Roger
      Malouf

            
	 
      	
              Telephone:
      (617) 434-1446

            
	 
      	
              Telecopy:
      (617) 310-2156

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              BANK OF AMERICA, N.A.,
      As Swingline Lender, and as a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Roger
      Malouf

            
	 
      	 
      	
              Name:

            	
              Roger
      Malouf

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	
              100
      Federal Street, 9th
      Floor

            
	 
      	
              Boston,
      Massachusetts 02110

            
	 
      	
              Attn:  Roger
      Malouf

            
	 
      	
              Telephone:
      (617) 434-1446

            
	 
      	
              Telecopy:
      (617) 310-2156

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              WELLS FARGO RETAIL FINANCE,
      LLC, As Co-Syndication Agent, as an Issuing Bank and as a
      Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Robert C
      Chakarian

            
	 
      	 
      	
              Name:

            	
              Robert
      C Chakarian

            
	 
      	 
      	
              Title:

            	
              Vice
      - President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	
              One
      Boston Place, 18th
      Floor

            
	 
      	
              Boston,
      MA  02108

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:  Robert
      C. Chakarian

            
	 
      	
              Telephone:
      (617) 854-7230

            
	 
      	
              Telecopy:
      (617) 523-4029

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              PNC BANK, NATIONAL ASSOCIATION
      AS SUCCESSOR BY MERGER TO NATIONAL CITY BANK, As Issuing Bank and
      as a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Kathryn
      Ellero

            
	 
      	 
      	
              Name:

            	
              Kathryn
      Ellero

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              1965
      East 6th Street

            
	 
      	 
      	 
      	
              Suite
      400

            
	 
      	 
      	 
      	
              Mail
      Stop B7-B321-04-1

            
	 
      	 
      	 
      	
              Cleveland,
      OH 44114

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Kathryn
      Ellero

            
	 
      	
              Telephone:

            	
              216-222-3261

            
	 
      	
              Telecopy:

            	
              216-222-9555

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              J.P. MORGAN SECURITIES
      INC., As Co-Documentation Agent

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Kirk
      Stites

            
	 
      	 
      	
              Name:

            	
              Kirk
      Stites

            
	 
      	 
      	
              Title:

            	
              SVP

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              2200
      Ross 9th Floor

            
	 
      	 
      	 
      	
              Dallas
      TX 75201

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            	
              214-965-2024

            
	 
      	
              Telecopy:

            	
              214-965-2052

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              JPMORGAN CHASE BANK,
      N.A., As a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Andrew
      Ray

            
	 
      	 
      	
              Name:

            	
              Andrew
      Ray

            
	 
      	 
      	
              Title:

            	
              VP

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              2200
      Ross 9th Floor

            
	 
      	 
      	 
      	
              Dallas
      TX 75201

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	 
      
	 
      	
              Telephone:

            	
              214-965-2592

            
	 
      	
              Telecopy:

            	
              214-965-2052

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              CITIZENS
      BANK OF

            
	 
      	
              PENNSYLVANIA, As a
      Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Don
    Cmar

            
	 
      	 
      	
              Name:

            	
              Don
      Cmar

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              525
      William Penn Place

            
	 
      	 
      	 
      	
              M/S
      153-2470

            
	 
      	 
      	 
      	
              Pittsburgh,
      PA 15219

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Don
      Cmar

            
	 
      	
              Telephone:

            	
              412-867-4218

            
	 
      	
              Telecopy:

            	
              412-867-4744

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              HSBC BUSINESS CREDIT (USA)
      INC., As a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Kysha A.
      Pierre-Louis

            
	 
      	 
      	
              Name:

            	
              Kysha
      A. Pierre-Louis

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              452
      Fifth Avenue

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              New
      York, NY 10018

            

    

    
      	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Kysha
      A. Pierre-Louis

            
	 
      	
              Telephone:

            	
                    
                212-525-2518

              

            
	 
      	
              Telecopy:

            	
                    
                212-225-2520

              

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              U.S. BANK, NATIONAL
      ASSOCIATION, As Senior Managing Agent and as a
    Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Christopher
      Fudge

            
	 
      	 
      	
              Name:

            	
              Christopher
      Fudge

            
	 
      	 
      	
              Title:

            	
              Officer

            
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Address:  1425
      Walnut Street,

            
	 
      	 
      	
              Cincinnati
      OH 45040

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Christopher
      Fudge

            
	 
      	
              Telephone:

            	
              513.632.2096

            
	 
      	
              Telecopy:

            	
              513.632.2040

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              SUNTRUST BANK, As a
      Senior Managing Agent and as a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ David
      Sharp

            
	 
      	 
      	
              Name:

            	
              David
      Sharp

            
	 
      	 
      	
              Title:

            	
              Associate

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:  303
      Peachtree Street NW 23rd

              Floor
      Atlanta, GA 30308

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              David
      Sharp

            	 
      
	 
      	
              Telephone:
      404-813-0127

            
	 
      	
              Telecopy:
      404-813-5890

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              CAPITAL ONE LEVERAGE FINANCE
      CORP., As a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Robert R.
      Wallace

            
	 
      	 
      	
              Name:

            	
              Robert
      R. Wallace

            
	 
      	 
      	
              Title:

            	
              Senior
      Vice President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              265
      Broadhollow Road

            
	 
      	 
      	 
      	
              Melville,
      N.Y. 11747

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Robert
      Wallace

            
	 
      	
              Telephone:

            	
              (631)
      531-2791

            
	 
      	
              Telecopy:

            	
              (631)
      531-2765

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              SOVEREIGN BANK, As a
      Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Charles
      O'Donnell

            
	 
      	 
      	
              Name:

            	
              Charles
      O’Donnell

            
	 
      	 
      	
              Title:

            	
              Senior
      Vice President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              Center
      Square

            
	 
      	 
      	 
      	
              1500
      Market St., 25th Floor

            
	 
      	 
      	 
      	
              Mail
      Code 20-210-AB25

            
	 
      	 
      	 
      	
              Philadelphia,
      PA 19102

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Charles
      O’Donnell

            
	 
      	
              Telephone:

            	
              267-256-8602

            
	 
      	
              Telecopy:

            	
              215-568-9587

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              PNC BANK, NATIONAL ASSOCIATION,
      As a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ John D.
      Trott

            
	 
      	 
      	
              Name:

            	
              John
      D. Trott

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              340
      Madison Avenue

            
	 
      	 
      	 
      	
              New
      York, NY 10173

            
	 
      	 
      	 
      	 
      
	 
      	
              Attn:  John
      D. Trott

            
	 
      	
              Telephone:
      212.752.6079

            
	 
      	
              Telecopy:  212.303.0060

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              ALLIED IRISH BANKS,
      P.L.C., As a

            
	 
      	
              Lender

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Martin
      Chin

            
	 
      	 
      	
              Name:

            	
              Martin
      Chin

            
	 
      	 
      	
              Title:

            	
              Senior
      Vice President

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Brent
      Phillips

            
	 
      	 
      	
              Name:

            	
              Brent
      Phillips

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              GENERAL ELECTRIC CAPITAL
      CORPORATION, As a Senior Managing Agent and as a
    Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Craig
      Winslow

            
	 
      	 
      	
              Name:

            	
              Craig
      Winslow

            
	 
      	 
      	
              Title:

            	
              Authorized
      Signatory

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              GE BUSINESS FINANCIAL SERVICES,
      INC., As a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/
      Craig  Winslow

            
	 
      	 
      	
              Name:

            	
              Craig
      Winslow

            
	 
      	 
      	
              Title:

            	
              Authorized
      Signatory

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              GMAC COMMERCIAL FINANCE
      LLC, As a Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              UBS SECURITIES LLC, As
      Co-Documentation Agent

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Irja R.
      Otsa

            
	 
      	 
      	
              Name:

            	
              Irja
      R. Otsa

            
	 
      	 
      	
              Title:

            	
              Associate
      Director

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Marie
      Haddad

            
	 
      	 
      	
              Name:

            	
              Marie
      Haddad

            
	 
      	 
      	
              Title:

            	
              Associate
      Director

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              677
      Washington Blvd.

            
	 
      	 
      	 
      	
              Stamford,
      CT 06901

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Heidi
      Benalcazar

            
	 
      	
              Telephone:

            	
              (203)
      719 3158

            
	 
      	
              Telecopy:

            	
              (203)
      719 3888

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              UBS LOAN FINANCE LLC, As
      a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Irja R.
      Otsa

            
	 
      	 
      	
              Name:

            	
              Irja
      R. Otsa

            
	 
      	 
      	
              Title:

            	
              Associate
      Director

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Marie
      Haddad

            
	 
      	 
      	
              Name:

            	
              Marie
      Haddad

            
	 
      	 
      	
              Title:

            	
              Associate
      Director

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              677
      Washington Blvd.

            
	 
      	 
      	 
      	
              Stamford,
      CT 06901

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	
              Heidi
      Benalcazar

            
	 
      	
              Telephone:

            	
              (203)
      719 3158

            
	 
      	
              Telecopy:

            	
              (203)
      719 3888

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              RBS CITIZENS, N.A., As a
      Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              UPS CAPITAL CORPORATION,
      As a Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              REGIONS BANK, As
      Co-Syndication Agent and as a Lender

            
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
                 /s/ Bruce
      Kasper

            
	 
      	 
      	
              Name:

            	
              Bruce
      Kasper

            
	 
      	 
      	
              Title:

            	
              Attorney
      in Fact

            
	 
      	 
      	 
      	 
      
	 
      	
              Address:

            	
              599
      Lexington Ave.

            
	 
      	 
      	 
      	
              NY
      NY 10022

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Attn:

            	 
      
	 
      	
              Telephone:

            	
              202
      935 2215

            
	 
      	
              Telecopy:

            	 
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              GULF STREAM COMPASS CLO,
      As a Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	 
      	
              ISRAEL DISCOUNT BANK OF NEW
      YORK, As a Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	
              Address:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Attn:

            
	 
      	
              Telephone:

            
	 
      	
              Telecopy:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]