Document:

Exhibit 4.1 

AMENDED
AND RESTATED

WARRANT
AGREEMENT

Dated
as of March 4, 2007

among

The
Great Atlantic & Pacific Tea Company, Inc.

and

The
Investors Identified Herein

AMENDED
AND RESTATED

WARRANT
AGREEMENT

          AMENDED
AND RESTATED WARRANT AGREEMENT (the “Agreement”) dated as of  March
4, 2007 among The Great Atlantic & Pacific Tea Company, Inc., a Maryland
corporation (the “Company”), and the investors identified on the
signature pages hereof, or their registered permitted assigns (the “Investors”).

RECITALS

          WHEREAS,
pursuant to that certain Warrant Agreement, dated as of June 9, 2005 (the “Pathmark
Warrant Agreement”), by and among Pathmark, Inc., a Delaware corporation (“Pathmark”),
and the Investors, Pathmark issued to the Investors (i) a series of warrants (the
“Exchanged Series A Warrants”) to purchase an aggregate of 10,060,000
shares of the common stock, $.01 par value per share, of Pathmark (the “Pathmark
Common Stock”) at an exercise price of $8.50 per share and (ii) a series of
warrants (the “Exchanged Series B Warrants” and, together with the
Exchanged Series A Warrants, the “Exchanged Warrants”) to purchase an
aggregate of 15,046,350 shares of Pathmark Common Stock at an exercise price of
$15.00 per share.

          WHEREAS,
the Company and Pathmark have entered into that certain Agreement and Plan of
Merger of even date herewith (the “Merger Agreement”), pursuant to
which, among other things, a wholly owned subsidiary of the Company will merge
with and into Pathmark (the “Merger”) and each share of Pathmark Common
Stock issued and outstanding at the time of the Merger shall be converted into
the right to receive $9.00 in cash and .12963 shares of the common stock, $1.00
par value per share, of the Company (the “Common Stock”).

          WHEREAS,
Section 3.3(b) of the Merger Agreement provides that, at the Effective Time (as
defined in the Merger Agreement), the Company shall issue warrants to purchase
Common Stock to the holders of the Exchanged Warrants on the terms and subject
to the conditions set forth herein.

          WHEREAS,
at the Effective Time, the Company has agreed to issue, and the Investors have
agreed to accept, in each case on the terms and subject to the conditions set
forth herein, (i) in exchange for the Exchanged Series A Warrants, Series A
Warrants (the “Series A Warrants”) to purchase an aggregate of 4,657,378
shares of Common Stock (subject to adjustment) at an exercise price of $18.36
per share (subject to adjustment) and (ii) in exchange for the Exchanged Series
B Warrants, Series B Warrants (the “Series B Warrants” and, together
with the Series A Warrants, the “Warrants”) to purchase an aggregate of 6,965,858
shares of Common Stock (subject to adjustment) at an exercise price of $32.40
per share (subject to adjustment).  The
shares of Common Stock issuable on exercise of the Warrants are referred to
herein as the “Warrant Shares.”

          WHEREAS,
the Warrants will be exercisable solely on a net (i.e., “cashless”) basis.

          WHEREAS,
subject to the terms of this Agreement, in lieu of issuing Warrant Shares, the
Company, in its sole discretion, shall be entitled to settle all or any portion
of exercised Warrants in cash.

AGREEMENT

          NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
set forth, the parties hereto agree as follows:

          SECTION
1. Issuance.  At the
Effective Time, the Company will issue and deliver certificates evidencing the
Warrants (the “Warrant Certificates”) to the Investors.  Upon the issuance and delivery thereof, Pathmark
shall be released from any and all of its obligations under the Pathmark
Warrant Agreement with respect to the Exchanged Warrants.

          SECTION
2. Warrant Certificates.  The
Warrant Certificates evidencing the Series A Warrants will be issued substantially
in the form of Exhibit A hereto.
The Warrant Certificates evidencing the Series B Warrants will be issued
substantially in the form of Exhibit B hereto.  The Warrant Certificates shall be in registered form only, shall
be dated the date of issuance by the Company and may have such additional
notations, legends and endorsements as required by law, or the rules and
regulations of applicable stock exchanges.

          SECTION
3. Execution of Warrant Certificates.  Warrant Certificates shall be signed on behalf of the Company by
its Chairman of the Board or its Chief Executive Officer, President or a Vice
President.  Each such signature upon the
Warrant Certificates may be in the form of a facsimile signature of the present
or any future Chairman of the Board, Chief Executive Officer, President or Vice
President, and may be imprinted or otherwise reproduced on the Warrant Certificates
and for that purpose the Company may adopt and use the facsimile signature of
any person who shall have been Chairman of the Board, Chief Executive Officer,
President or Vice President, notwithstanding the fact that at the time the Warrant
Certificates shall be delivered or disposed of he shall have ceased to hold
such office.  Each Warrant Certificate
shall also be manually signed on behalf of the Company by its Secretary or an
Assistant Secretary under its corporate seal.
The seal of the Company may be in the form of a facsimile thereof and
may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.

          SECTION
4. Registration.  The
Company shall number and register the Warrant Certificates in a register as
they are issued.  The Company may deem
and treat the registered holder(s) of the Warrant Certificates (the “Holders”)
as the absolute owner(s) thereof (notwithstanding any notation of ownership or
other writing thereon made by anyone) for all purposes and shall not be affected
by any notice to the contrary.  The
Warrants shall be registered initially in such name or names as the Investors
shall designate.

          SECTION
5. Restrictions on Transfer; Registration of Transfers and Exchanges.  The Warrants (and any Warrant Shares issued
upon the exercise of the Warrants) shall not be transferable except in accordance
with the terms of that certain Stockholders’ Agreement of even date herewith by
and among the Investors and the Company (the “Stockholders’ Agreement”).

-2-

          Prior
to any proposed transfer of any Warrants, the transferring Holder will deliver
to the Company a Certificate of Transfer in the form attached to the Warrant
Certificate and, if so requested by the Company, such other information
relating to the proposed transfer and the identity of the proposed transferee
as the Company may reasonably request in order to confirm that the Warrants may
be sold or otherwise transferred in the manner proposed.  Upon original issuance thereof, and until
such time as the same shall have been registered under the United States
Securities Act of 1933, as amended (the “Securities Act”) or sold
pursuant to Rule 144 promulgated thereunder (or any similar rule or regulation),
each Warrant Certificate and any certificates evidencing Warrant Shares shall
bear any legend required pursuant to the Stockholders’ Agreement unless, in the
opinion of qualified counsel, such legend is no longer required by the
Securities Act.

          The
Company shall from time to time, subject to compliance with the applicable provisions
of the Stockholders’ Agreement, register the transfer of any outstanding
Warrant Certificates in a Warrant register to be maintained by the Company upon
surrender thereof accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company, duly executed by the registered
Holder or Holders thereof or by the duly appointed legal representative thereof
or by a duly authorized attorney.  Upon
any such registration of transfer, a new Warrant Certificate shall be issued to
the transferee(s) and the surrendered Warrant Certificate shall be canceled and
disposed of by the Company.

          Warrant
Certificates may be exchanged at the option of the Holder(s) thereof, when surrendered
to the Company at its office for another Warrant Certificate or other Warrant
Certificates of like series and tenor and representing in the aggregate a like
number of Warrants.  Warrant
Certificates surrendered for exchange shall be canceled and disposed of by the
Company.

          SECTION
6. Warrants; Exercise of Warrants.
Subject to the terms of this Agreement, each Holder shall have the
right, which may be exercised at any time or from time to time during the
applicable Exercise Period (as defined below) to receive from the Company, that
number (the “Gross Number”) of fully paid and nonassessable Warrant Shares (and
such other consideration) which the Holder may at the time be entitled to
receive upon the exercise of such Warrants, less that number of Warrant Shares equal
to the quotient of (a) the product of (i) the Gross Number and (ii) the
Exercise Price (as defined below) then in effect for such Warrants and (b) the Market
Price of the Warrant Shares on the business day immediately preceding the date
the Warrants are presented for exercise.
The exercise price for each Series A Warrant (the “Series A Exercise
Price”) shall initially be $18.36 per share, subject to adjustment pursuant
to the terms hereof.  The exercise price
for each Series B Warrant (the “Series B Exercise Price”) shall
initially be $32.40 per share, subject to adjustment pursuant to the terms
hereof.  Each of the Series A Exercise
Price and the Series B Exercise Price may be referred to herein generically as
an “Exercise Price.”  For the
avoidance of doubt, Warrants may be exercised solely on a net basis in the
manner set forth in the immediately preceding sentence, and no Investor shall
be required, or permitted, to pay any cash in connection with the exercise of
Warrants.  Each Warrant not exercised
during the Exercise Period shall become void and all rights thereunder and all
rights in respect thereof under this Agreement shall cease as of such
time.  No adjustments as to dividends
will be made upon exercise of the Warrants, except as otherwise expressly
provided herein.

-3-

          The
Series A Warrants shall be exercisable for a period (the “Series A Exercise
Period”) commencing on their date of issuance and expiring at 5:00 p.m.,
New York time, on June 9, 2008.  The
Series B Warrants shall be exercisable for a period (the “Series B Exercise
Period” and, together with the Series A Exercise Period, an “Exercise
Period”) commencing on their date of issuance and expiring at 5:00 p.m.,
New York time, on June 9, 2015.
Notwithstanding the foregoing or anything else in this Agreement to the
contrary, until June 9, 2014, no Series B Warrant shall be exercisable to the
extent that such exercise, when taken together with all other exercises of
Series B Warrants during the twelve (12) months immediately preceding such exercise,
would result in more than fifty-percent (50%) of the aggregate Series B
Warrants issued to Investors having been exercised during such twelve (12)
month period, unless the exercise of such Series B Warrant is (i) in connection
with or following a Change of Control Event (as defined below) or (ii) pursuant
to the exercise by the Holders, as part of a single transaction and on a single
date, of all Series B Warrants then outstanding (the “100% Series B Warrant
Exercise”).

          As
used herein, “Change of Control Event” shall mean (i) the acquisition of
an interest in the Company by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or
consolidation) as a result of which the holders of shares of Common Stock
immediately prior to the commencement of such transaction or series of transactions
hold less than fifty percent (50%) of the ordinary voting power (on a fully
diluted basis) of the surviving or acquiring entity; (ii) the sale to a third
party that is not a subsidiary of the Company of all, or substantially all, of
the Company’s consolidated assets in any single transaction or series of
related transactions; (iii) any voluntary or involuntary dissolution,
liquidation or winding up of the Company; or (iv) any transaction or series of
related transactions (including, without limitation, any reorganization, merger
or consolidation) as a result of which any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or
indirectly, of a greater number of shares of Common Stock or other voting securities
representing the votes entitled to be cast generally in the election of
directors of the Company or the surviving or acquiring entity in any such
transaction (as the case may be) than Teal and its Affiliates, collectively,
beneficially own.

          A
Warrant may be exercised upon surrender to the Company (at its office address
set forth in Section 13 hereof) of the Warrant Certificate(s) to be
exercised with the form of election to exercise attached thereto duly filled in
and signed.

          Subject
to the provisions of Section 7 hereof, on or prior to the twentieth (20th)
business day after exercise and surrender of Warrant Certificates, the Company
shall issue and cause to be delivered with all reasonable dispatch to the
Holder and in the name of the Holder a certificate or certificates for the
number of full Warrant Shares issuable upon the exercise of such Warrants (and
such other consideration as may be deliverable upon exercise of such Warrants)
together with cash for fractional Warrant Shares as provided in Section 11.  If the exercise is settled by the issuance
of Warrant Shares, then such certificate or certificates shall be deemed to
have been issued and the Holder shall be deemed to have become a holder of
record of such Warrant Shares as of the date of the surrender of such Warrant
Certificates, irrespective of the date of delivery of such certificate or certificates
for Warrant Shares.

-4-

          Except
as otherwise expressly set forth in this Agreement, each Warrant shall be
exercisable during the Exercise Period, at the election of the Holder thereof,
either in full or from time to time in part and, in the event that fewer than
all of the Warrants represented by a Warrant Certificate are exercised at any
time prior to the date of expiration of the Warrants, a new certificate
evidencing the remaining Warrant or Warrants will be issued and delivered
pursuant to the provisions of this Section and of Section 3 hereof.

          All
Warrant Certificates surrendered upon exercise of Warrants shall be cancelled
and disposed of by the Company.  The
Company shall keep copies of this Agreement and any notices given or received
hereunder available for inspection by the Holders during normal business hours
at its office.

          In
lieu of issuing Warrant Shares upon exercise of Warrants as set forth above
(together with such other consideration as may be deliverable upon exercise of
such Warrants), the Company, in its sole discretion, shall be entitled to
settle all or any portion of exercised Warrants in cash on or prior to the
twentieth (20th) business day after the exercise and surrender of the Warrant
Certificates.

          The
amount of cash or other consideration issuable or deliverable upon the exercise
of Warrants shall be (i) the Market Prices of the number of Warrant Shares otherwise
to be issued pursuant to the first paragraph of this Section 6 or other
consideration to be paid in settlement of any Warrant for the business day immediately
preceding the date that the applicable Warrants are exercised and surrendered or
(ii) in the case of consideration issuable or deliverable upon the exercise of
Warrants for which there is no Market Price, the Current Market Value (as
defined below) of such consideration.

          Notwithstanding
the foregoing, in connection with a 100% Series B Exercise, the Company may
elect, by written notice delivered to the Holder at any time during such twenty
(20) business day settlement period, to defer the settlement of up to
fifty-percent (50%) of the exercised Series B Warrants for up to one (1) year
from the date of such exercise; provided, however, that the deferred
portion of such settlement (i) shall thereafter be payable only in cash and
(ii) shall accrue interest at a rate equal to the U.S. prime rate, as the same
may be published under “Money Rates” in The Wall Street Journal from time to time,
from and including the twentieth (20th) business day following the date
of exercise of such Series B Warrants until but excluding the date payment of
the deferred portion of such settlement, together with all interest accrued
thereon, is received by the Holder (the deferred portion of such settlement,
together with all interest accrued thereon, “Deferred Cash Amount”).  If the Company determines to pay the
Deferred Cash Amount, in whole or in part, on a date (an “Early Payment Date”)
other than the first (1st) anniversary of such 100% Series B Warrant Exercise,
it will so notify the Holder in writing (a “Payment Notice”) at least
twenty (20) business days prior to the Early Payment Date, and upon delivery of
such Payment Notice, will be irrevocably bound to pay the Deferred Cash Amount
on such Early Payment Date.

          SECTION
7. Payment of Taxes.  The
Company will pay all documentary stamp taxes and other governmental charges
(excluding all foreign, federal or state income, franchise, property, estate, inheritance,
gift or similar taxes) in connection with the issuance or delivery of the
Warrant Certificates hereunder, as well as all such taxes attributable to the
initial issuance or 

-5-

delivery of any Warrant Shares upon the exercise of
Warrants.  The Company shall not,
however, be required to pay any tax that may be payable in respect of any
subsequent transfer of the Warrants or any transfer involved in the issuance
and delivery of Warrant Shares in a name other than that in which the Warrants
to which such issuance relates were registered, and, if any such tax would
otherwise be payable by the Company, no such issuance or delivery shall be made
unless and until the person requesting such issuance has paid to the Company the
amount of any such tax, or it is, established to the reasonable satisfaction of
the Company that any such tax has been paid.

          SECTION
8. Mutilated or Missing Warrant Certificates.  If any Warrant Certificate or certificate evidencing
Warrant Shares shall be mutilated, lost, stolen or destroyed, the Company shall
issue, in exchange and substitution therefor and upon cancellation of the
mutilated Warrant Certificate or other certificate, or in lieu of and
substitution for the Warrant Certificate or other certificate lost, stolen or
destroyed, a new Warrant Certificate or other certificate of like tenor and
representing an equivalent number of Warrants or Warrant Shares.  

          SECTION
9. Reservation of Warrant Shares.
The Company shall at all times reserve and keep available, free from preemptive
rights, out of the aggregate of its authorized but unissued Common Stock or its
authorized and issued Common Stock held in its treasury, for the purpose of
enabling it to satisfy any obligation to issue the Warrant Shares upon exercise
of the Warrants, the maximum number of shares of Common Stock which may then be
deliverable upon the exercise of all outstanding Warrants.

          The
Company or, if appointed, the transfer agent for the Common Stock and each
transfer agent for any shares of the Company’s capital stock issuable upon the
exercise of any of the Warrants (collectively, the “Transfer Agent”)
will be irrevocably authorized and directed at all times to reserve such number
of authorized shares as shall be required for such purpose.  The Company shall keep a copy of this
Agreement on file with the Transfer Agent.
The Company will supply the Transfer Agent with duly executed
certificates for such purposes and will provide or otherwise make available all
other consideration that may be deliverable upon exercise of the Warrants.  The Company will furnish such Transfer Agent
a copy of all notices of adjustments and certificates related thereto,
transmitted to each Holder pursuant to Section 12 hereof.

          The
Company covenants that all the Warrant Shares and other capital stock issued
upon exercise of the Warrants will, upon issue, be validly authorized and
issued, fully paid, nonassessable, free of preemptive rights and free from all
taxes, liens, charges and security interests with respect to the issue thereof.

          The
Company shall from time to time take all action which may be necessary or appropriate
so that the Common Stock issuable upon conversion of the Warrant Shares
following an exercise of the Warrants, will be listed on the principal
securities exchanges and markets within the United States of America, if any,
on which other shares of the same class of Common Stock of the Company are then
listed.

          SECTION 10. Adjustment
of Exercise Price and Number of Warrant Shares Issuable.  The Exercise Price and the number of shares
of Common Stock issuable upon the exercise of each Warrant (the “Warrant
Number”) are subject to adjustment from time to time 

-6-

upon the
occurrence of the events enumerated in, or as otherwise provided in, this Section
10.  The Warrant Number is initially
one. 

	
 

	
 

	
 

	
          (a)
  Adjustment for Change in Capital Stock

	
 

	
 

	
 

	
If the
  Company: 

	
 

	
 

	
 

	
                    (1)
  pays a dividend or makes a distribution on its Common Stock in shares of its
  Common Stock; 

	
 

	
 

	
 

	
                    (2)
  subdivides or reclassifies its outstanding shares of Common Stock into a
  greater number of shares; 

	
 

	
 

	
 

	
                    (3)
  combines or reclassifies its outstanding shares of Common Stock into a
  smaller number of shares; 

	
 

	
 

	
 

	
                    (4)
  makes a distribution on its Common Stock in shares of its capital stock other
  than its Common Stock; or 

	
 

	
 

	
 

	
                    (5)
  issues by reclassification of its Common Stock any shares of its capital
  stock; 

then the Exercise
Price in effect immediately prior to such action shall be proportionately
adjusted so that the holder of any Warrant thereafter exercised may receive the
aggregate number and kind of shares of capital stock of the Company which he or
it would have owned immediately following such action if such Warrant had been
exercised immediately prior to such action. 

          The
adjustment shall become effective immediately after the record date in the case
of a dividend or distribution and immediately after the effective date in the
case of a subdivision, combination or reclassification. 

          If
after an adjustment a holder of a Warrant upon exercise of it may receive
shares of two or more classes of capital stock of the Company, the Company
shall determine the allocation of the adjusted Exercise Price between the
classes of capital stock.  After such
allocation, the exercise privilege and the Exercise Price of each class of
capital stock shall thereafter be subject to adjustment on terms comparable to
those applicable to Common Stock in this Section. 

          Such
adjustment shall be made successively whenever any event listed above shall
occur.  If the occurrence of any event
listed above results in an adjustment under subsections (b) or (c) below, no further
adjustment shall be made under this subsection (a). 

                    (b)
Adjustment for Rights Issue

If the Company
distributes any rights, options or warrants (whether or not immediately
exercisable) to all holders of its Common Stock entitling them to purchase
shares of Common Stock at a price per share less than the Current Market Value
per share upon exercise 

-7-

within 60 days
after the record date relating to such distribution, the Exercise Price shall
be adjusted in accordance with the formula: 

	
 

	
 

	
 

	
 

	
O
  +     N x P  

	
 

	
E'   =     E     x                    M   

	
 

	
O
  + N  

	
 

	
 

	
 

	
 

	
 

	
where:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E'

	
=

	
the adjusted
  Exercise Price.

	
 

	
 

	
 

	
 

	
 

	
E

	
=

	
the then
  current Exercise Price.

	
 

	
 

	
 

	
 

	
 

	
O

	
=

	
the number
  of shares of Common Stock outstanding on the record date for any such
  distribution.

	
 

	
 

	
 

	
 

	
 

	
N

	
=

	
the number
  of additional shares of Common Stock issuable upon exercise of such rights,
  options or warrants.

	
 

	
 

	
 

	
 

	
 

	
P

	
=

	
the exercise
  price per share of such rights, options or warrants.

	
 

	
 

	
 

	
 

	
 

	
M

	
=

	
the Current
  Market Value per share of Common Stock on the record date for any such
  distribution.

          The
adjustment shall be made successively whenever any such rights, options or
warrants are issued and shall become effective immediately after the record date
for the determination of stockholders entitled to receive the rights, options
or warrants.  If at the end of the
period during which such rights, options or warrants are exercisable, not all
rights, options or warrants shall have been exercised, the Exercise Price shall
be immediately readjusted to what it would have been if “N” in the above
formula had been the number of shares actually issued.  No adjustment shall be required under this
subsection (b) if  at the time of such
distribution the Company makes the same distribution to Holders of Warrants as
it makes to holders of shares of Common Stock pro rata based on the number of
shares of Common Stock for which such Warrants are exercisable.  No adjustment shall be made pursuant to this
subsection (b) which shall have the effect of decreasing the number of Warrant
Shares purchasable upon exercise of each Warrant. 

                    (c)
Adjustment for Other Distributions

          If
the Company distributes to all holders of its Common Stock (i) any evidences of
indebtedness of the Company or any of its subsidiaries, (ii) any cash or other
assets of the Company or any of its subsidiaries, (iii) shares of its capital
stock or any other properties or securities or (iv) any rights, options or
warrants to acquire any of the foregoing or to acquire any other securities of
the Company (the items described in the foregoing clauses (i)-(iv) being
collectively referred to as the “Consideration”), the Exercise Price
shall be adjusted in accordance with the formula: 

-8-

E' = E x M - F

	
 

	
 

	
 

	
 

	
where:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E'

	
=

	
the adjusted
  Exercise Price.

	
 

	
 

	
 

	
 

	
 

	
E

	
=

	
the then
  current Exercise Price.

	
 

	
 

	
 

	
 

	
 

	
M

	
=

	
the Current
  Market Value per share of Common Stock on the record date mentioned below.

	
 

	
 

	
 

	
 

	
 

	
F

	
=

	
the fair
  market value on the record date mentioned below of the Consideration
  distributable to the holder of one share of Common Stock.

          The
adjustment shall be made successively whenever any such distribution is made
and shall become effective immediately after the record date for the
determination of stockholders entitled to receive the distribution.  If an adjustment is made pursuant to this
subsection (c) as a result of the issuance of rights, options or warrants and
at the end of the period during which any such rights, options or warrants are
exercisable, not all such rights, options or warrants shall have been
exercised, the Exercise Price shall be immediately readjusted as if “F” in the
above formula was the fair market value on the record date of the indebtedness
or assets actually distributed upon exercise of such rights, options or
warrants divided by the number of shares of Common Stock outstanding on the
record date.  No adjustment shall be
required under this subsection (c) if
at the time of such distribution the Company makes the same distribution
to Holders of Warrants as it makes to holders of shares of Common Stock pro
rata based on the number of shares of Common Stock for which such Warrants are
exercisable. No adjustment shall be made pursuant to this subsection (c) which
shall be have the effect of decreasing the number of Warrant Shares purchasable
upon exercise of each Warrant.

          This
subsection does not apply to any distribution referred to in subsection (a) of
this Section 10 or to rights, options or warrants referred to in subsection (b)
of this Section 10.

                    (d)
Current Market Value

          “Current
Market Value” per share of Common Stock or of any other security (herein
collectively referred to as a “Security”) at any date shall be:

	
 

	
 

	
 

	
          (1)
  if the Security is registered under the Exchange Act, the average of the
  daily Market Prices for each business day during the period commencing 5
  business days before such date and ending on the date one day prior to such
  date or, if the Security has been registered under the Exchange Act for less
  than 5 consecutive business days before such date, then the average of the
  daily Market Prices for all of the business days before such date for which
  daily Market Prices are available. If the Market Price is not determinable
  for at least 10

-9-

	
 

	
 

	
 

	
business
  days in such period, the Current Market Value of the Security shall be
  determined as if the Security was not registered under the Exchange Act; or 

	
 

	
 

	
 

	
          (2)
  if the Security is not registered under the Securities Exchange Act of 1934,
  as amended (the “Exchange Act”), (i) the value of the Security
  determined in good faith by the Board of Directors of the Company and
  certified in a board resolution, based on the most recently completed arm’s
  length transaction between the Company and a person other than an Affiliate
  of the Company in which such determination is necessary and the closing of
  which occurs on such date or shall have occurred within the six months
  preceding such date, (ii) if no such transaction shall have occurred on such
  date or within such six-month period, the value of the Security most recently
  determined as of a date within the six months preceding such date by an
  Independent Financial Expert or (iii) if neither clause (i) nor (ii) is
  applicable, the value of the Security determined as of such date by an
  Independent Financial Expert. 

          The
“Market Price” for any Security on each business day means:  (A) if such Security is listed or admitted
to trading on any securities exchange, the closing price, regular way, on such
day on the principal exchange on which such Security is traded, or if no sale
takes place on such day, the average of the closing bid and asked prices on
such day, (B) if such Security is not then listed or admitted to trading on any
securities exchange, the last reported sale price on such day, or if there is
no such last reported sale price on such day, the average of the closing bid
and the asked prices on such day, as reported by a reputable quotation source
designated by the Company, or (C) if neither clause (A) nor (B) is applicable,
the average of the reported high bid and low asked prices on such day, as
reported by a reputable quotation service, or a newspaper of general circulation
in the Borough of Manhattan, City of New York, customarily published on each
business day, designated by the Company.
If there are no such prices on a business day, then the Market Price
shall not be determinable for such business day. 

          “Independent
Financial Expert” shall mean a nationally recognized investment banking
firm designated by the Company and reasonably acceptable to the Holders of a
majority of the Warrants (i) that does not (and whose directors, officers,
employees and Affiliates do not) have a direct or indirect material financial
interest in the Company, (ii) that has not been, and, at the time it is called
upon to serve as an Independent Financial Expert under this Agreement is not
(and none of whose directors, officers, employees or Affiliates is) a promoter,
director or officer of the Company, (iii) that has not been retained by the
Company or any Holder or Affiliate of a Holder for any purpose, other than to
perform an equity valuation, within the preceding twelve months, and (iv) that,
in the reasonable judgment of the Board of Directors of the Company, is
otherwise qualified to serve as an independent financial advisor.  Any such person may receive customary
compensation and indemnification by the Company for opinions or services it
provides as an Independent Financial Expert. 

          “Affiliate”
shall mean, with respect to any person, any other person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such person.  For the purposes of this
definition, “control,” when used with respect to any person, means the
power to direct the management and policies of such person, directly or
indirectly, 

-10-

whether
through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to
the foregoing. 

                    (e)
When De Minimis Adjustment May Be Deferred

          No
adjustment in the Exercise Price need be made unless the adjustment would
require an increase or decrease of at least 1% in the Exercise Price.  No adjustment in the Warrant Number need be
made unless the adjustment would require an increase or decrease of at least
0.5% in the Warrant Number.  Any
adjustments that are not made shall be carried forward and taken into account
in any subsequent adjustment, provided
that no such adjustment shall be deferred beyond the date on which a Warrant is
exercised. 

          All
calculations under this Section 10 shall be made to the nearest 1/1000th
of a share. 

                    (f)
When No Adjustment Required

          If
an adjustment is made upon the establishment of a record date or issuance date
for a distribution or issuance subject to subsections (a), (b) or (c) hereof
and such distribution or issuance is subsequently cancelled, the Exercise Price
then in effect shall be readjusted, effective as of the date when the Board of
Directors determines to cancel such distribution, to that which would have been
in effect if such record date had not been fixed. 

                    (g)
Notice of Adjustment

          Whenever
the Exercise Price or the Warrant Number is adjusted, the Company shall provide
the notices required by Section 12 hereof. 

                    (h)
When Issuance or Payment May Be Deferred

          In
any case in which this Section 10 shall require that an adjustment in the
Exercise Price and Warrant Number be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event (i) issuing to the Holder of any Warrant exercised after such record date
the Warrant Shares and other capital stock of the Company, if any, issuable
upon such exercise over and above the Warrant Shares and other capital stock of
the Company, if any, issuable upon such exercise on the basis of the Warrant
Number prior to such adjustment, and (ii) paying to such Holder any amount in
cash in lieu of a fractional share pursuant to Section 11; provided, however,
that the Company shall deliver to such Holder a due bill or other appropriate
instrument evidencing such Holder’s right to receive such additional Warrant
Shares, other capital stock and cash upon the occurrence of the event requiring
such adjustment. 

                    (i)
Reorganizations

          In
case of any capital reorganization, other than in the cases referred to in Sections
10(a), (b) or (c) hereof, or the consolidation or merger of
the Company with or into another corporation (other than a merger or
consolidation which does not result in any reclassification of the outstanding
shares of Common Stock into shares of other stock or other 

-11-

securities or
property) (collectively such actions being hereinafter referred to as “Reorganizations”),
there shall thereafter be deliverable upon exercise of any Warrant (in lieu of
the number of shares of Common Stock theretofore deliverable) the number of
shares of stock or other securities or property to which a holder of the number
of shares of Common Stock that would otherwise have been deliverable upon the
exercise of such Warrant would have been entitled upon such Reorganization if
such Warrant had been exercised in full immediately prior to such
Reorganization (and assuming, for this purpose, that the Company were not
entitled to settle all or any portion of exercised Warrants in cash as provided
in Section 6 hereof).  In case of
any Reorganization, appropriate adjustment, as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a
duly adopted resolution certified by the Company’s Secretary or Assistant
Secretary, shall be made in the application of the provisions herein set forth
with respect to the rights and interests of Holders so that the provisions set
forth herein shall thereafter be applicable, as nearly as possible, in relation
to any shares or other property thereafter deliverable upon exercise of
Warrants. 

          The
Company shall not effect any such Reorganization unless prior to or
simultaneously with the consummation thereof the successor corporation (if
other than the Company) resulting from such Reorganization or other appropriate
corporation or entity shall expressly assume, by a supplemental Warrant
Agreement or other acknowledgement executed and delivered to the Holder(s), the
obligation to deliver to each such Holder such shares of stock, securities or
assets as, in accordance with the foregoing provisions, such Holder may be
entitled to purchase, and all other obligations and liabilities under this
Agreement. 

                    (j)
Adjustment in Number of Shares

          Upon
each adjustment of the Exercise Price pursuant to this Section 10, each Warrant
outstanding prior to the making of the adjustment in the Exercise Price shall
thereafter evidence the right to receive that number of shares of Common Stock
(calculated to the nearest thousandth) obtained from the following formula: 

	
 

	
 

	
N'     =     N     x     
  

	
E

	
 

	
E'

	
 

	
 

	
 

	
 

	
where:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
N'

	
=

	
the
  adjustment number of Warrant Shares issuable upon exercise of a Warrant, assuming
  for this purpose that exercise required the payment of the adjusted Exercise
  Price.

	
 

	
 

	
 

	
 

	
 

	
N

	
=

	
the number
  of Warrant Shares previously issuable upon exercise of a Warrant, assuming
  for this purpose that exercise required the payment of the Exercise Price
  prior to adjustment.

	
 

	
 

	
 

	
 

	
 

	
E'

	
=

	
the adjusted
  Exercise Price.

	
 

	
 

	
 

	
 

	
 

	
E

	
=

	
the Exercise
  Price prior to adjustment.

-12-

                    (k)
Form of Warrants 

          Irrespective
of any adjustments in the Exercise Price or the number or kind of shares purchasable
upon the exercise of the Warrants, Warrants theretofore or thereafter issued
may continue to express the same price and number and kind of shares as are
stated in the Warrants initially issuable pursuant to this Agreement.

                    (l)
Adjustments in Other Securities 

          If
as a result of any event or for any other reason, any adjustment is made which
increases the number of shares of Common Stock issuable upon conversion,
exercise or exchange of, or in the conversion or exercise price or exchange
ratio applicable to, any outstanding securities of the Company that are
convertible into, or exercisable or exchangeable for, Common Stock of the
Company, then a corresponding adjustment shall be made hereunder to increase
the number of shares of Common Stock issuable upon exercise of the Warrants,
but only to the extent that no such adjustment has been made pursuant to Sections
10(a), (b) or (c) hereof with respect to such event or for
such other reason.

                    (m)
Tender Offers; Exchange Offers 

          In
the event that the Company or any subsidiary of the Company shall purchase
shares of Common Stock pursuant to a tender offer or an exchange offer for a
price per share of Common Stock that is greater than the then Current Market
Value per share of shares of Common Stock in effect at the end of the trading
day immediately following the day on which such tender offer or exchange offer
expires, then the Company, or such subsidiary of the Company, shall, within
(10) business days of the expiry of such tender offer or exchange offer, offer
to purchase the Warrants for comparable consideration per share of Common Stock
based on the number of shares of Common Stock which the Holders of such
Warrants would receive upon exercise of such Warrants (the “Offer”)
(such amount less the Exercise Price in respect of such share, the “Per
Share Consideration”); provided, however, if a tender offer
is made for only a portion of the outstanding shares of Common Stock, then such
offer shall be made for such shares of Common Stock issuable upon exercise of
the Warrants in the same pro rata proportion; provided, further,
that the Company shall not be required to make such an Offer if the Per Share
Consideration is an amount less than the then-existing Exercise Price per
share.

          The
Offer shall remain open for a period of twenty (20) business days following its
commencement and no longer, except to the extent that a longer period is
required by applicable law (the “Offer Period”).  No later than five (5) business days after
the termination of the Offer Period (the “Purchase Date”), the Company
shall purchase such Warrants for the applicable Per Share Consideration.

                    (n)
Other Events 

          If
any event shall occur as to which the other provisions of this Section 10
are not strictly applicable but the failure to make any adjustment would have
the effect of depriving holders of the benefit of all or a portion of the
exercise rights in respect of any Warrant in accordance with the essential
intent and principles of this Section 10, then, in each such case, the

-13-

Company shall appoint an Independent Financial Expert,
which shall give its opinion upon the adjustment, if any, on a basis consistent
with the essential intent and principles established in this Section 10
necessary to preserve, without dilution, such exercise rights.  Upon receipt of such opinion, the Company
will promptly mail a copy thereof to the Holders and shall make the adjustments
described therein.

                    (o)
Miscellaneous 

          For
purpose of this Section 10 the term “shares of Common Stock”
shall mean (i) shares of any class of stock designated as Common Stock of
the Company at the date of this Agreement, and (ii) shares of any other
class of stock resulting from successive changes or reclassification of such
shares consisting solely of changes in par value, or from par value to no par
value, or from no par value to par value.
In the event that at any time, as a result of an adjustment made pursuant
to this Section 10, the holders of Warrants shall become entitled to
purchase any securities of the Company other than, or in addition to, shares of
Common Stock, thereafter the number or amount of such other securities so
purchasable upon exercise of each Warrant shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to
the provisions with respect to the Warrant Shares contained in subsections (a)
through (n) of this Section 10, inclusive, and the provisions of Sections
6, 7, 9 and 11 with respect to the Warrant Shares or
the Common Stock shall apply on like terms to any such other securities.

          SECTION
11. Fractional Interests.  The
Company shall not issue fractional Warrant Shares on the exercise of the
Warrants.  If more than one Warrant
shall be presented for exercise in full at the same time by the same holder,
the number of full Warrant Shares which shall be issuable upon the exercise
thereof shall be computed on the basis of the aggregate number of the Warrant
Shares purchasable on exercise of the Warrants so presented.  If any fraction of a Warrant Share would, except
for the provisions of this Section 11, be issuable on the exercise of
any Warrants (or specified portion thereof), the Company shall pay an amount in
cash equal to the Market Price of the Warrant Share on the business day
immediately preceding the exercise of such Warrants, multiplied by such
fraction.

          SECTION
12. Notices to Warrant Holders.
Upon any adjustment pursuant to Section 10 hereof, the Company
shall promptly thereafter (i) cause to be filed with the Company a certificate
of an officer of the Company setting forth the Warrant Number and Exercise
Price after such adjustment and setting forth in reasonable detail the method
of calculation and the facts upon which such calculations are based, and
(ii) cause to be given to each of the registered Holders of the Warrant
Certificates at his or its address appearing on the Warrant register written
notice of such adjustments by first class mail, postage prepaid.  Where appropriate, such notice may be given
in advance and included as a part of the notice required to be mailed under the
other provisions of this Section 12.

          In
case:

	
 

	
 

	
 

	
          (a)
  the Company shall authorize the issuance to all holders of shares of Common
  Stock of rights, options or warrants to subscribe for or purchase shares of
  Common Stock or of any other subscription rights or warrants; or

-14-

	
 

	
 

	
 

	
          (b)
  the Company shall authorize the distribution to all holders of shares of
  Common Stock of assets, including, without limitation, cash, evidences of its
  indebtedness, or other securities; or

	
 

	
 

	
 

	
          (c)
  of any reclassification, reorganization, consolidation or merger to which the
  Company is a party and for which approval of any stockholders of the Company
  is required, or of the conveyance or transfer of the properties and assets of
  the Company substantially as an entirety, or of any reclassification or
  change of Common Stock issuable upon exercise of the Warrants (other than a
  change in par value, or from par value to no par value, or from no par value
  to par value, or as a result of a subdivision or combination), or a tender
  offer or exchange offer for shares of Common Stock; or

	
 

	
 

	
 

	
          (d)
  of the voluntary or involuntary dissolution, liquidation or winding up of the
  Company; or

	
 

	
 

	
 

	
          (e)
  the Company proposes to take any action that would require an adjustment to
  the Warrant Number or the Exercise Price pursuant to Section 10
  hereof;

then the Company shall cause to be given to each of
the registered Holders of the Warrant Certificates at his or its address
appearing on the Warrant register, at least 20 days prior to the applicable
record date hereinafter specified, or at least 20 days prior to the date of the
event in the case of events for which there is no record date, by first-class
mail, postage prepaid, a written notice of (i) the date as of which the holders
of record of shares of Common Stock to be entitled to receive any such rights,
options, warrants or distribution are to be determined, or (ii) the
initial expiration date set forth in any tender offer or exchange offer for
shares of Common Stock, or (iii) such reclassification, reorganization,
consolidation, merger, conveyance, transfer, dissolution, the date on which liquidation
or winding up is expected (to the extent reasonably determinable) to become
effective or consummated and the date as of which it is expected (to the extent
reasonably determinable) that holders of record of shares of Common Stock shall
be entitled to exchange such shares for securities or other property, if any,
deliverable thereupon .  The failure to
give the notice required by this Section 12 or any defect therein
shall not affect the legality or validity of any distribution, right, option,
warrant, reclassification, reorganization, consolidation, merger, conveyance,
transfer, dissolution, liquidation or winding up, or the vote upon any action.

          Nothing
contained in this Agreement or in any Warrant Certificate shall be construed as
conferring upon the Holders of Warrants (prior to the exercise of such
Warrants) the right to vote or to consent or to receive notice as stockholders
in respect of the meetings of stockholders or the election of Directors of the
Company or any other matter, or any rights whatsoever as stockholders of the
Company.

          SECTION
13. Notices to the Company and Warrant Holders.  All notices and other communications
provided for or permitted hereunder shall be made by hand delivery, first-class
mail, telex, telecopier, or overnight air courier guaranteeing next day
delivery:

-15-

	
 

	
 

	
 

	
          (a)
  if to the Holders at the addresses provided on the signature pages hereto or
  otherwise reflected in the books and records of the Company from time to
  time; and

	
 

	
 

	
 

	
          (b)
  if to the Company, at Two Paragon Drive, Montvale, New Jersey 07645,
  Attention:  Allan Richards.

All such notices and communications shall be deemed to
have been duly given:  at the time delivered
by hand, if personally delivered; five (5) business days after being deposited
in the mail, postage prepaid, if mailed; when answered back if telexed; when
receipt acknowledged, if telecopied; and the next business day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.  The parties may change the
addresses to which notices are to be given by giving five days’ prior notice of
such change in accordance herewith.

          SECTION
14. Amendments and Supplements.  

	
 

	
 

	
 

	
          (a)
Until such time as this Agreement has become effective pursuant to Section 16
hereof, this Agreement may not be amended, or any provision hereof waived, in
any manner unless such amendment or waiver is in a writing signed, in the case
of an amendment, by the parties hereto or, in the case of a waiver, by the
party against whom the waiver is effective.
 

	
 

	
 

	
          (b)
Upon the effectiveness of this Agreement pursuant to Section 16 hereof, the
Company may thereafter from time to time supplement or amend this Agreement
without the approval of any Holders of Warrant Certificates in order to cure
any ambiguity or to correct or supplement any provision contained herein which
may be defective or inconsistent with any other provision herein, or to make
any other provisions in regard to matters or questions arising hereunder which
the Company may deem necessary or desirable and which shall not in any way
adversely affect the interests of the Holders of Warrant Certificates.  An amendment or supplement to this Warrant
Agreement that has an adverse effect on Holders of Warrants shall require the
written consent of the Holders of a majority of the then-outstanding Warrants
excluding Warrants held by the Company.

          SECTION
15. Successors and Assigns.  All
the covenants and provisions of this Agreement by or for the benefit of the
Company shall bind and inure to the benefit of its respective successors and permitted
assigns hereunder.

          SECTION
16. Effectiveness.  Except for
this Section 16 and Sections 13, 14(a), 15, 17(a),
18, 19, 20, 21 and 22 hereof, which shall be
come effective as of the date hereof, this Agreement shall become effective only
upon the Effective Time.

          SECTION
17. Termination.  

-16-

	
 

	
 

	
 

	
          (a)
  Notwithstanding anything to the contrary set forth herein, this Agreement
  will automatically terminate if the Merger Agreement is terminated in
  accordance with its own terms and shall thereafter be null and void.  

	
 

	
 

	
 

	
          (b)
  Upon the effectiveness of this Agreement pursuant to Section 16 hereof, this
  Agreement shall remain in effect until such time as all Warrants have been
  exercised or have expired pursuant to this Agreement.

          SECTION
18. No Rights or Liabilities as Stockholder.  Nothing contained herein shall be construed as conferring upon
any Holder any rights as a stockholder of the Company or as imposing any obligation
on such holder to purchase any securities or as imposing any liabilities on
such holder as a stockholder of the Company, whether such obligation or
liabilities are asserted by the Company or by creditors of the Company.

          SECTION
19. Governing Law.  This
Agreement and each Warrant Certificate issued hereunder shall be deemed to be a
contract made under the laws of the State of New York and for all purposes
shall be construed in accordance with the internal laws of said State.

          SECTION
20. Benefits of This Agreement.
Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company and the registered Holders of the Warrant
Certificates any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of
the Company and the registered Holders of the Warrant Certificates.

          SECTION
21. Construction; Interpretation.
This Agreement shall not be construed for or against any party by reason
of the authorship or alleged authorship of any provision hereof or by reason of
the status of the respective parties.
This Agreement shall be construed reasonably to carry out its intent
without presumption against or in favor of any party.  The natural persons executing this Agreement on behalf of each
party have the full right, power and authority to do and affirm the foregoing
warranty on behalf of each party and on their own behalf.  The captions on sections are provided for
purposes of convenience and are not intended to limit, define the scope of or
aid in interpretation of any of the provisions hereof.  All pronouns and singular or plural
references as used herein shall be deemed to have interchangeably (where the
sense of the sentence requires) a masculine, feminine or neuter, and/or
singular or plural meaning, as the case may be.

          SECTION
22. Counterparts.  This Agreement
may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument.

-17-

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

	
 

	
 

	
 

	
 

	
 

	
COMPANY:

	
 

	
 

	
 

	
 

	
 

	
THE GREAT ATLANTIC & PACIFIC TEA

  COMPANY, INC., a Maryland corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ William J. Moss

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Name: William J. Moss

	
 

	
 

	
 

	
Title: Vice President & Treasurer

Amended & Restated Warrant Agreement

	
 

	
 

	
 

	
 

	
 

	
INVESTORS:

	
 

	
 

	
 

	
 

	
 

	
YUCAIPA CORPORATE INITIATIVES FUND I,

  L.P., a Delaware limited partnership

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Yucaipa Corporate Initiatives Fund I, LLC

	
 

	
 

	
Its:

	
General Partner

	
 

	
 

	
 

	
 

	
 

	
 

	
   /s/ Robert P. Bermingham 

	
 

	
 

	

	
 

	
 

	
Name: Robert P. Bermingham

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
 

	
YUCAIPA AMERICAN ALLIANCE

  (PARALLEL) FUND I, L.P., a Delaware limited

  partnership

	
 

	
 

	
 

	
 

	
By:

	
Yucaipa American Alliance Fund I, LLC

	
 

	
 

	
Its:

	
General Partner

	
 

	
 

	
 

	
 

	
 

	
 

	
   /s/ Robert P. Bermingham 

	
 

	
 

	

	
 

	
 

	
Name: Robert P. Bermingham

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
YUCAIPA AMERICAN ALLIANCE FUND I,

  L.P., a Delaware limited partnership

	
 

	
 

	
 

	
 

	
By:

	
Yucaipa American Alliance Fund I, LLC

	
 

	
 

	
Its:

	
General Partner

	
 

	
 

	
 

	
 

	
 

	
 

	
   /s/ Robert P. Bermingham 

	
 

	
 

	

	
 

	
 

	
Name: Robert P. Bermingham

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
Address for Notices to the Investors:

  9130 W. Sunset Boulevard

  Los Angeles, California 90069

  Attention: Robert P. Bermingham

EXHIBIT A

[Form of Series A Warrant Certificate]

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  SUCH SECURITIES GENERALLY MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID
ACT.

THE SECURITIES
EVIDENCED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS UNDER THE TERMS OF THE
STOCKHOLDERS’ AGREEMENT DATED AS OF _______, 2007 (“STOCKHOLDERS’ AGREEMENT”),
AS AMENDED FROM TIME TO TIME, BETWEEN THE ISSUER AND THE HOLDER HEREOF AND MAY
NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE
WITH THE TERMS OF THAT AGREEMENT.

	
 

	
 

	
 

	
 

	
No.

	
______     ____  Series A Warrants

	
 

	
 

	
 

	
 

Series A Warrant Certificate

THE GREAT ATLANTIC & PACIFIC TEA COMPANY,
INC.

          This
Warrant Certificate certifies that ___________________, or registered assigns,
is the registered holder of the number of Warrants (the “Warrants”) set
forth above to purchase Common Stock, $1.00 par value (the “Common Stock”),
of The Great Atlantic & Pacific Tea Company, Inc., Inc., a Maryland corporation
(the “Company”).  Each Warrant
entitles the holder upon exercise to receive from the Company that number of
fully paid and nonassessable shares of Common Stock (each, a “Warrant Share”)
(and such other consideration) which the Holder may at the time be entitled to
receive upon the exercise of such Warrants, less that number of Warrant Shares
having an aggregate Market Price (as defined in the Warrant Agreement referred
to hereafter) on the [business day immediately preceding the date] the Warrants
are presented for exercise equal to the aggregate Exercise Price (as defined
below) that would otherwise have been paid by the Holder for the Warrant
Shares.  The exercise price for each
Warrant (the “Exercise Price”) shall initially be [$     ] per share.  For the avoidance of doubt, Warrants may be
exercised solely on a
net basis in the manner set forth in the immediately preceding sentence, and no
holder shall be required, or permitted, to pay any cash in connection with the
exercise of Warrants.  The Warrants may
be exercised only during the Series A Exercise Period (as defined in the
Warrant Agreement).  The Exercise Price
and number of Warrant Shares issuable upon exercise of the Warrants are subject
to adjustment upon the occurrence of certain events, as set forth in the
Warrant Agreement.

A-1

          The
Warrants evidenced by this Warrant Certificate are part of a duly authorized
issue of Series A Warrants, and are issued or to be issued pursuant to an
Amended and Restated Warrant Agreement dated as of _________, 2007 (the “Warrant
Agreement”), duly executed and delivered by the Company, which Warrant
Agreement is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Company and the holders (the words “holders” or “holder” meaning the registered
holders or registered holder) of the Warrants.
A copy of the Warrant Agreement may be obtained by the holder
hereof upon written request to the Company.

          The
holder of Warrants evidenced by this Warrant Certificate may exercise such Warrants
during the Series A Exercise Period under and pursuant to the terms and
conditions of the Warrant Agreement by surrendering this Warrant Certificate,
with the form of election to exercise set forth hereon (and by this reference
made a part hereof), properly completed and executed at the office of the
Company designated for such purpose.  In
the event that upon any exercise of Warrants evidenced hereby the number of
Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued by the Company to the holder hereof or his or its
registered assignee a new Warrant Certificate evidencing the number of Warrants
not exercised.

          The
Warrant Agreement provides that upon the occurrence of certain events the
number of Warrants and the Exercise Price set forth on the face hereof may,
subject to certain conditions, be adjusted.
No fractions of a share of Common Stock will be issued upon the exercise
of any Warrant, but the Company will pay the cash value thereof determined as
provided in the Warrant Agreement.

          Subject
to the conditions set forth the Warrant Agreement, in lieu of issuing Warrant
Shares upon exercise of Warrants as set forth above (together with such other
consideration as may be deliverable upon exercise of such Warrants), the
Company, in its sole discretion at settlement, shall be entitled to settle all
or any portion of exercised Warrants in cash as provided in the Warrant
Agreement.

          The
holders of the Warrants are entitled to certain registration rights with
respect to any Warrant Shares issued in settlement of exercised Warrants.  Said registration rights are set forth in the
Stockholders’ Agreement.  By acceptance
of this Warrant Certificate, the holder hereof agrees that upon issuance of
Warrant Shares in settlement of exercised Warrants evidenced hereby, he or it
will be bound by the Stockholders’ Agreement as a holder of Registrable Securities
thereunder.  A copy of the Stockholders’
Agreement may be obtained by the holder hereof upon written request to the
Company.

          Warrant
Certificates, when surrendered at the office of the Company by the registered
holder thereof in person or by legal representative or attorney duly authorized
in writing, may be exchanged, in the manner and subject to the limitations
provided in the Warrant Agreement, but without payment of any service charge,
for another Warrant Certificate or Warrant Certificates of like tenor
evidencing in the aggregate a like number of Warrants.

A-2

          Subject
to the terms and conditions of the Warrant Agreement and the Stockholders’
Agreement, upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Company a new Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of
Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.

          The
Company may deem and treat the registered holder(s) thereof as the absolute
owner(s) of this Warrant Certificate (notwithstanding any notation of ownership
or other writing hereon made by anyone), for the purpose of any exercise
hereof, of any distribution to the holder(s) hereof, and for all other
purposes, and the Company shall not be affected by any notice to the
contrary.  Neither the Warrants nor this
Warrant Certificate entitles any holder hereof to any rights of a stockholder
of the Company.

          IN
WITNESS WHEREOF, The Great Atlantic & Pacific Tea Company, Inc. has caused
this Warrant Certificate to be signed by its Chairman of the Board, Chief
Executive Officer, President or Vice President and by its Secretary or
Assistant Secretary and has caused its corporate seal to be affixed hereunto or
imprinted hereon.

	
 

	
 

	
 

	
 

	
 

	
 

	
Dated: ______________, 2007

	
THE GREAT
  ATLANTIC & PACIFIC TEA 

  COMPANY, INC., a Maryland corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	 	
 

	
 

	
 

	
Title:

	 	
 

	
 

	
 

	
 

	 	
 

	
 

	
By:

	
 

	 	
 

	
 

	
 

	

	 	
 

	
 

	
 

	
Name:

	 	
 

	
 

	
 

	
Title:

A-3

FORM OF ELECTION TO EXERCISE

(To Be Executed Upon Exercise Of Warrant)

          The
undersigned holder hereby represents that he or it is the registered holder of
this Warrant Certificate, and hereby irrevocably elects to exercise ________
Warrants represented by this Warrant Certificate, and receive shares of Common
Stock, $1.00 par value, of The Great Atlantic & Pacific Tea Company, Inc.,
and such other consideration, if any, to which the undersigned is entitled upon
such exercise in accordance with the Amended and Restated Warrant Agreement
dated as of _________, 2007 (the “Warrant Agreement”).  This exercise is being effected on a net
basis in the manner provided in the Warrant Agreement and no cash is, or is
required to be, paid in connection with such exercise.  The undersigned requests that (i) a
certificate for shares or other securities issued upon this exercise be
registered in the name of the undersigned or nominee hereinafter set forth, and
further that such certificate be delivered to the undersigned at the address
hereinafter set forth or to such other person or entity as is hereinafter set
forth and (ii) any cash payable to the undersigned upon this exercise be paid
in accordance with the wire transfer instructions hereinafter set forth.  If the number of Warrants exercised is less
than all of the Warrants represented by this Warrant Certificate, the
undersigned requests that a new Warrant Certificate representing the remaining
balance of Warrants be registered in the name of the undersigned or nominee
hereinafter set forth, and further that such certificate be delivered to the
undersigned at the address hereinafter set forth or to such other person or
entity as is hereinafter set forth.

Certificate to be registered as follows:

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Address:     

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
         Social
  Security or

	
 

	
 

	
         Taxpayer
  Identification No.:  

	
 

	
 

	
 

	

	
 

Certificate to be delivered as follows:

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Address:     

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

A-4

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
 

	
Signature:

	
 

	

	

	
 

	
 

	
 

	

Cash to be paid as follows:

A-5

EXHIBIT B

[Form of Series B
Warrant Certificate]

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF.  SUCH
SECURITIES GENERALLY MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

THE SECURITIES EVIDENCED HEREBY ARE SUBJECT TO CERTAIN
RESTRICTIONS UNDER THE TERMS OF THE STOCKHOLDERS’ AGREEMENT DATED AS OF
_______, 2007 (“STOCKHOLDERS’ AGREEMENT”), AS AMENDED FROM TIME TO TIME,
BETWEEN THE ISSUER AND THE HOLDER HEREOF AND MAY NOT BE OFFERED, SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE WITH THE TERMS OF THAT AGREEMENT.

	
 

	
 

	
No.__________

	
__________ Series B Warrants

Series B Warrant
Certificate

THE
GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.

          This
Warrant Certificate certifies that ___________________, or registered assigns,
is the registered holder of the number of Warrants (the “Warrants”) set
forth above to purchase Common Stock, $1.00 par value (the “Common Stock”),
of The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation
(the “Company”).  Each Warrant
entitles the holder upon exercise to receive from the Company that number of
fully paid and nonassessable shares of Common Stock (each, a “Warrant Share”)
(and such other consideration) which the Holder may at the time be entitled to
receive upon the exercise of such Warrants, less that number of Warrant Shares
having an aggregate Market Price (as defined in the Warrant Agreement referred
to hereafter) on the [business day immediately preceding the date] the Warrants
are presented for exercise equal to the aggregate Exercise Price (as defined
below) that would otherwise have been paid by the Holder for the Warrant
Shares.  The exercise price for each
Warrant (the “Exercise Price”) shall initially be [$     ] per share.  For the avoidance of doubt, Warrants may be
exercised solely on a
net basis in the manner set forth in the immediately preceding sentence, and no
holder shall be required, or permitted, to pay any cash in connection with the
exercise of Warrants.  The Warrants may
be exercised only during the Series B Exercise Period (as defined in the
Warrant Agreement).  The Exercise Price
and number of Warrant Shares issuable upon exercise of the Warrants are subject
to adjustment upon the occurrence of certain events, as set forth in the
Warrant Agreement.

B-1

          The
Warrants evidenced by this Warrant Certificate are part of a duly authorized
issue of Series B Warrants, and are issued or to be issued pursuant to an
Amended and Restated Warrant Agreement dated as of _________, 2007 (the “Warrant
Agreement”), duly executed and delivered by the Company, which Warrant
Agreement is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation
of rights, obligations, duties and immunities thereunder of the Company and the
holders (the words “holders” or “holder” meaning the registered holders or
registered holder) of the Warrants.
A copy of the Warrant Agreement may be obtained by the holder
hereof upon written request to the Company.

          The
holder of Warrants evidenced by this Warrant Certificate may exercise such Warrants
during the Series B Exercise Period under and pursuant to the terms and
conditions of the Warrant Agreement by surrendering this Warrant Certificate,
with the form of election to exercise set forth hereon (and by this reference
made a part hereof), properly completed and executed at the office of the
Company designated for such purpose.  In
the event that upon any exercise of Warrants evidenced hereby the number of
Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued by the Company to the holder hereof or his or its
registered assignee a new Warrant Certificate evidencing the number of Warrants
not exercised.

          The
Warrant Agreement provides that upon the occurrence of certain events the
number of Warrants and the Exercise Price set forth on the face hereof may,
subject to certain conditions, be adjusted.
No fractions of a share of Common Stock will be issued upon the exercise
of any Warrant, but the Company will pay the cash value thereof determined as
provided in the Warrant Agreement.

          Subject
to the conditions set forth the Warrant Agreement, in lieu of issuing Warrant
Shares upon exercise of Warrants as set forth above (together with such other
consideration as may be deliverable upon exercise of such Warrants), the
Company, in its sole discretion at settlement, shall be entitled to settle all
or any portion of exercised Warrants in cash as provided in the Warrant
Agreement.

          The holders
of the Warrants are entitled to certain registration rights with respect to any
Warrant Shares issued in settlement of exercised Warrants.  Said registration rights are set forth in
the Stockholders’ Agreement.  By acceptance
of this Warrant Certificate, the holder hereof agrees that upon issuance of
Warrant Shares in settlement of exercised Warrants evidenced hereby, he or it
will be bound by the Stockholders’ Agreement as a holder of Registrable Securities
thereunder.  A copy of the Stockholders’
Agreement may be obtained by the holder hereof upon written request to the
Company.

          Warrant
Certificates, when surrendered at the office of the Company by the registered
holder thereof in person or by legal representative or attorney duly authorized
in writing, may be exchanged, in the manner and subject to the limitations
provided in the Warrant Agreement, but without payment of any service charge,
for another Warrant Certificate or Warrant Certificates of like tenor
evidencing in the aggregate a like number of Warrants.

B-2

          Subject
to the terms and conditions of the Warrant Agreement and the Stockholders’
Agreement, upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Company a new Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of
Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.

          The
Company may deem and treat the registered holder(s) thereof as the absolute
owner(s) of this Warrant Certificate (notwithstanding any notation of ownership
or other writing hereon made by anyone), for the purpose of any exercise
hereof, of any distribution to the holder(s) hereof, and for all other
purposes, and the Company shall not be affected by any notice to the contrary.
Neither the Warrants nor this Warrant Certificate entitles any holder hereof to
any rights of a stockholder of the Company.

          IN
WITNESS WHEREOF, The Great Atlantic & Pacific Tea Company, Inc. has caused
this Warrant Certificate to be signed by its Chairman of the Board, Chief
Executive Officer, President or Vice President and by its Secretary or
Assistant Secretary and has caused its corporate seal to be affixed hereunto or
imprinted hereon.

Dated: ________ __, 2007

 

	
 

	
 

	
 

	
 

	
THE GREAT ATLANTIC & PACIFIC TEA

  COMPANY, INC., a Maryland corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
By: 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

B-3

FORM OF ELECTION
TO EXERCISE

(To Be Executed
Upon Exercise Of Warrant)

          The
undersigned holder hereby represents that he or it is the registered holder of
this Warrant Certificate, and hereby irrevocably elects to exercise ________
Warrants represented by this Warrant Certificate, and receive shares of Common
Stock, $1.00 par value, of The Great Atlantic & Pacific Tea Company, Inc.,
and such other consideration, if any, to which the undersigned is entitled upon
such exercise in accordance with the Amended and Restated Warrant Agreement
dated as of _________, 2007 (the “Warrant Agreement”). This exercise is
being effected on a net basis in the manner provided in the Warrant Agreement
and no cash is, or is required to be, paid in connection with such exercise.
The undersigned requests that (i) a certificate for shares or other securities
issued upon this exercise be registered in the name of the undersigned or
nominee hereinafter set forth, and further that such certificate be delivered
to the undersigned at the address hereinafter set forth or to such other person
or entity as is hereinafter set forth and (ii) any cash payable to the undersigned
upon this exercise be paid in accordance with the wire transfer instructions
hereinafter set forth. If the number of Warrants exercised is less than all of
the Warrants represented by this Warrant Certificate, the undersigned requests
that a new Warrant Certificate representing the remaining balance of Warrants
be registered in the name of the undersigned or nominee hereinafter set forth,
and further that such certificate be delivered to the undersigned at the
address hereinafter set forth or to such other person or entity as is hereinafter
set forth.

Certificate to be
registered as follows:

 

	
 

	
 

	
 

	
    Name: 

	
 

	

	
Address:

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
          Social
  Security or

	
          Taxpayer
  Identification No.:

	

	
 

	
Certificate to be
  delivered as follows:

	
 

	
 

	
 

	
    Name: 

	
 

	

	
Address:

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
Signature:

	
 

	
 

	

	
 

	
 

	

B-4

Cash to be paid as
follows:

B-5Exhibit 4.2 

YUCAIPA STOCKHOLDER AGREEMENT

by and among

PARENT

and

STOCKHOLDER

Dated as of March 4, 2007

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
ARTICLE I

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DEFINITIONS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  1.01.

	
 

	
Definitions

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
REGISTRATION RIGHTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  2.01.

	
 

	
Registration

	
 

	
6

	
SECTION
  2.02.

	
 

	
Piggyback
  Registration

	
 

	
7

	
SECTION
  2.03.

	
 

	
Reduction of
  Offering

	
 

	
8

	
SECTION
  2.04.

	
 

	
Registration
  Procedures

	
 

	
9

	
SECTION
  2.05.

	
 

	
Conditions
  to Offerings

	
 

	
12

	
SECTION
  2.06.

	
 

	
Black-out
  Period

	
 

	
12

	
SECTION
  2.07.

	
 

	
Registration
  Expenses

	
 

	
13

	
SECTION
  2.08.

	
 

	
Indemnification;
  Contribution

	
 

	
13

	
SECTION
  2.09.

	
 

	
Rule 144

	
 

	
15

	
SECTION
  2.10.

	
 

	
Lockup

	
 

	
15

	
SECTION
  2.11.

	
 

	
Termination
  of Registration Rights

	
 

	
15

	
SECTION
  2.12.

	
 

	
Specific
  Performance

	
 

	
16

	
SECTION
  2.13.

	
 

	
Other
  Registration Rights

	
 

	
16

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
STANDSTILL, ACQUISITIONS OF SECURITIES AND OTHER MATTERS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  3.01.

	
 

	
Acquisitions
  of Common Stock

	
 

	
16

	
SECTION
  3.02.

	
 

	
No
  Participation in a Group or Solicitation of Proxies

	
 

	
16

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RESTRICTIONS ON TRANSFERABILITY OF SECURITIES

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  4.01.

	
 

	
General

	
 

	
17

	
SECTION
  4.02.

	
 

	
Improper
  Sale or Encumbrance

	
 

	
19

	
SECTION
  4.03.

	
 

	
Restrictive
  Legend

	
 

	
19

	
 

	
 

	
 

	
 

	
 

	
ARTICLE V

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
MISCELLANEOUS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  5.01.

	
 

	
Adjustments

	
 

	
19

	
SECTION
  5.02.

	
 

	
Notices

	
 

	
19

-i-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
SECTION
  5.03.

	
 

	
Reasonable
  Efforts; Further Actions

	
 

	
20

	
SECTION
  5.04.

	
 

	
Consents

	
 

	
20

	
SECTION
  5.05.

	
 

	
Fees and
  Expenses

	
 

	
21

	
SECTION
  5.06.

	
 

	
Termination
  of Management Services Agreement

	
 

	
21

	
SECTION
  5.07.

	
 

	
Amendments;
  Waivers

	
 

	
21

	
SECTION
  5.08.

	
 

	
Interpretation

	
 

	
21

	
SECTION
  5.09.

	
 

	
Severability

	
 

	
21

	
SECTION
  5.10.

	
 

	
Counterparts

	
 

	
22

	
SECTION
  5.11.

	
 

	
Entire
  Agreement; No Third-Party Beneficiaries

	
 

	
22

	
SECTION
  5.12.

	
 

	
Governing
  Law

	
 

	
22

	
SECTION
  5.13.

	
 

	
Assignment

	
 

	
22

	
SECTION
  5.14.

	
 

	
Enforcement

	
 

	
22

	
SECTION
  5.15.

	
 

	
Effectiveness

	
 

	
23

	
SECTION
  5.16.

	
 

	
Termination;
  Survival

	
 

	
23

	
SECTION
  5.17.

	
 

	
No Joint and
  Several Liability

	
 

	
23

	
SECTION
  5.18.

	
 

	
No Liability
  of Partners

	
 

	
23

	
 

	
 

	
 

	
 

	
 

	
SCHEDULE

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Schedule I 

	
 

	
Stockholders

	
 

	
 

	
Schedule II 

	
 

	
Investment
  Banks

	
 

	
 

-ii-

          YUCAIPA
STOCKHOLDER AGREEMENT dated as of March 4, 2007 (this “Agreement”) among THE
GREAT ATLANTIC & PACIFIC TEA COMPANY, INC., a Maryland corporation
(“Parent”), and each of the stockholders identified on Schedule I hereto
(collectively, “Stockholder”).  

          WHEREAS,
Parent, SAND MERGER CORP., a Delaware corporation and a wholly owned Subsidiary
of Parent, and PATHMARK STORES, INC., a Delaware corporation (the “Company”),
have entered into a Merger Agreement (the “Merger Agreement”) dated as of the
date of this Agreement pursuant to which, on the Closing Date, Parent will
acquire (the “Merger”) the Company (capitalized terms used in this Agreement
shall have the meanings given to such terms in Article I);  

          WHEREAS,
following the Merger, Stockholder will own shares of Parent Common Stock and
Roll-over Warrants exercisable for shares of Parent Common Stock; and 

          WHEREAS,
the parties hereto desire to establish in this Agreement certain terms and
conditions concerning the ownership, acquisition and disposition of Equity
Securities of Parent and certain other matters. 

          NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I

DEFINITIONS 

          SECTION
1.01. Definitions. 

          (a) As
used in this Agreement, the following terms will have the following meanings: 

          “Acquisition”
means (i) any direct or indirect acquisition or purchase, in a single
transaction or a series of transactions, of (A) 50% or more (based on the Fair
Market Value thereof) of the assets (including capital stock of the
Subsidiaries of Parent) of Parent and its Subsidiaries, taken as a whole, or
(B) 50% or more of the outstanding shares of Parent Common Stock by a Third
Party or 13D Group except a transaction pursuant to which the stockholders of
Parent prior to such transaction would continue to own, directly or indirectly,
50% or more of the Voting Power of the Voting Stock of any direct or indirect
parent of Parent; (ii) any tender offer or exchange offer that, if consummated,
would result in any Third Party or 13D Group owning, directly or indirectly,
50% or more of the outstanding shares of Parent Common Stock; or (iii) any
merger, consolidation, Business Combination, recapitalization, liquidation,
dissolution, binding share exchange or similar transaction involving Parent or
its stockholders pursuant to which any Third Party or 13D Group (or the
stockholders or other equity owners of any Third Party or members of a 13D
Group) would own, directly or indirectly, 50% or more of any class of Equity
Securities of Parent or of the surviving entity in a merger or the resulting
direct or indirect parent of Parent or such surviving entity. 

          “Acquisition
Proposal” means any inquiry, proposal or offer relating to an Acquisition. 

          An
“Affiliate” of any Person means another Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such first Person. 

          “beneficial
owner” and words of similar import have the meaning assigned to such
terms  in Rule 13d-3 promulgated under
the Exchange Act as in effect on the date of this Agreement, but without  reference to whether or not an Equity Security
is exercisable or convertible for Voting Stock in less than  60 days. 

          “Board”
or “Board of Directors” means the board of directors of Parent.  

          “Business
Combination” with respect to any Person means any of the following:  (i) the
sale, lease, transfer, conveyance or other disposition (other than by
way of merger or consolidation) of all
or substantially all of the assets of such Person and its Subsidiaries,
taken as a whole, to any other Person
or (ii) any transaction (including any merger or consolidation) the
consummation of which would result in
any other Person (or, in the case of a direct merger or consolidation,
the shareholders of such other Person) becoming, directly or indirectly, the
beneficial owner of more than 50% of the Voting Stock and/or  Equity Securities of such Person (measured
in the case of Voting Stock by Voting Power rather than  number of shares). 

          “Closing”
means the closing of the Merger.  

          “Closing
Date” means the date of the Closing.
  

          “Director”
means a member of the Board of Directors. 

          “Encumbrance”
means any security interest, pledge, mortgage, lien, charge, adverse  claim of ownership or use, hypothecation,
violation, condition or restriction of any kind or other encumbrance of any
kind. 

          “Equity
Security” means (i) any common stock or other Voting Stock; (ii) any
securities  convertible into or
exchangeable for common stock or other Voting Stock, including without
limitation  the Roll-over Warrants; or
(iii) any options, rights or warrants (or any similar securities) to acquire
common stock or other Voting Stock. 

          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the
rules  and regulations promulgated
thereunder. 

          “Fair
Market Value” means (i) with respect to cash or cash equivalents, the
amount of  such cash or principal amount
of such cash equivalents; (ii) with respect to any security listed on a national securities exchange or otherwise traded on any national securities
exchange or other trading system,  the
average of the closing prices of such security as reported on such exchange or
trading system for each  of the five
Trading Days prior to the date of determination; and (iii) with respect to
property other than  cash or securities
of the type described in clauses (i) and (ii), the cash price at which a
willing seller  would sell and a willing
buyer would buy such property in an arm’s length negotiated transaction
without  time constraints as determined
in good faith by the Board. 

          “GAAP”
means U.S. generally accepted accounting principles, as in effect at the
time  such term is relevant. 

          “General
Partner” means with respect to a specified Person, the general partner or
managing member, as applicable, of such Person. 

-2-

          “Governmental
Entity” means any transnational, federal, state, local or foreign
government, or any court of competent jurisdiction, administrative agency or
commission or other governmental authority or instrumentality, domestic or
foreign, or any national stock exchange or national quotation system on which
securities issued by Parent or any of its Subsidiaries are listed or quoted. 

          “Issuer
FWP” has the meaning assigned to “issuer free writing prospectus” in Rule
433 under the Securities Act. 

          “Law”
means any law, treaty, statute, ordinance, code, rule, regulation, judgment,
decree, order, writ, award, injunction, authorization or determination enacted,
entered, promulgated, enforced or issued by any Governmental Entity. 

          “NYSE”
means the New York Stock Exchange. 

          “Parent
Common Stock” means the common stock of Parent, par value $1.00 per share, and
any other common stock of Parent that may be issued from time to time.  

          “Partner”
means any partner of such Person; provided that such partner would not, after
giving effect to any Sale, have beneficial ownership of Parent Common Stock
representing more than 9.9% of the Voting Power of Parent’s outstanding Voting
Stock.  

          “Permitted
Transferee” means, with respect to a specified Person, any controlled
Affiliate of such Person or any Partner of such Person. 

          “Person”
means any individual, firm, corporation, partnership, company, limited
liability company, trust, joint venture, association, Governmental Entity,
unincorporated organization or other entity. 

          “Piggyback
Percentage” of Tengelmann or Stockholder, as applicable, means the result
of dividing (i) the product of the number of shares requested to be registered
by such Person (including, in the case of Stockholder, shares issuable under
the Roll-over Warrants) and the number of shares beneficially owned by such
Person as of the date of any notice given pursuant to Section 2.02 or, if not
practicably obtainable as of such date, as of the most recent date practicably
obtainable (excluding, in the case of Stockholder, shares issuable under the
Roll-over Warrants to the extent not requested to be registered) (in the case
of Tengelmann, the “Tengelmann Amount” and, in the case of Stockholder,
the “Stockholder Amount”), by (ii) the sum of the Tengelmann Amount and
the Stockholder Amount.  

          “Registrable
Securities” means (i) all shares of Parent Common Stock beneficially owned
by Stockholder on the date hereof or acquired by Stockholder upon exercise of
the Roll-over Warrants and beneficially owned by Stockholder and (ii) any
securities issued or issuable with respect to any such shares of Parent Common
Stock by way of a stock dividend or other similar distribution or stock split,
or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise; provided that such
securities will cease to be Registrable Securities when (A) a Registration
Statement relating to such securities has been declared effective by the SEC
(or has become automatically effective) and such securities have been disposed
of by Stockholder pursuant to such Registration Statement; (B) such securities
have been disposed of by Stockholder pursuant to Rule 144 promulgated under the
Securities Act or any successor provisions thereto; or (C) Stockholder has
beneficial ownership of less than 1% (including Parent Common Stock issuable
upon exercise of the Roll-over Warrants) of the outstanding Parent Common Stock.

-3-

          “Representatives”
means the directors, officers, employees, agents, investment bankers, financing
sources, attorneys, accountants and advisors of either Stockholder, on the one
hand, or Parent, on the other hand, as the context requires. 

          “Roll-over
Warrants” means the warrants issued as part of the Merger by Parent to
Stockholder in exchange for the Series A Warrants and the Series B Warrants. 

          “Sale”
means, in respect of any Parent Common Stock, Roll-over Warrants, or any other
Voting Stock, any sale, assignment, transfer, distribution or other disposition
thereof or of a participation therein, or other conveyance of legal or
beneficial interest therein, or any short position in any such security or any
other action or position otherwise reducing risk related to ownership through
hedging or other derivative instruments, whether voluntarily or by operation of
Law, whether in a single transaction or a series of related transactions and
whether to a single Person or a 13D Group. 

          “SEC”
means the U.S. Securities and Exchange Commission. 

          “Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder. 

          “Series
A Warrants” means the Series A warrants to purchase 10,060,000 shares of
common stock of the Company at an exercise price of $8.50 per share. 

          “Series
B Warrants” means the Series B warrants to purchase 15,046,350 shares of
common stock of the Company at an exercise price of $15.00 per share. 

          “Standstill
Expiration Date” means the earliest of (i) the expiration date of the
Roll-over Warrants issued in exchange for Series B Warrants; (ii) the third
anniversary of the date on which all Roll-over Warrants have been exercised;
(iii) such date as the Board of Directors publicly announces its intention to
solicit an Acquisition Proposal, or publicly approves, accepts, authorizes or
recommends to the Parent stockholders the approval of an Acquisition Proposal;
(iv) such date as Parent or any Affiliate thereof has entered into a binding
letter of intent, binding agreement in principle or definitive agreement with
any party agreeing to an Acquisition Proposal; (v) such date that Stockholder
has beneficial ownership (including the Roll-over Warrants) of less than 1% of
the outstanding Parent Common Stock; (vi) such date that any Third Party or 13D
Group has acquired beneficial ownership of outstanding Parent Common Stock in
an amount that exceeds Tengelmann’s beneficial ownership of Parent Common
Stock; or (vii) such date that Tengelmann and its Affiliates beneficially own,
in the aggregate, less than 20% of the outstanding Parent Common Stock,
disregarding for clauses (vi) and (vii) any dilution of Tengelmann’s ownership
percentage resulting from issuances of Parent Common Stock. 

          A
“Subsidiary” of any Person means another Person (i) in which such first
Person’s ownership of Voting Stock, other voting ownership or voting
partnership interests is in an amount sufficient to elect at least a majority
of its board of directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which are beneficially
owned directly or indirectly by such first Person) or (ii) which is required to
be consolidated with such Person under GAAP. 

          “Tengelmann”
means Tengelmann Warenhandelsgesellschaft KG , a partnership organized under
the laws of the Federal Republic of Germany. 

          “Third
Party” means any Person other than Parent or Tengelmann or any of their
respective controlled Affiliates.

-4-

          “13D
Group” means any group of Persons formed for the purpose of acquiring,
holding, voting or disposing of Voting Stock of Parent that would be required
under Section 13(d) of the Exchange Act (as in effect on, and based on legal
interpretations thereof existing on, the date hereof) to file a statement on
Schedule 13D with the SEC as a “person” within the meaning of Section 13(d)(3)
of the Exchange Act if such group beneficially owned Voting Stock of Parent
representing more than 5% of any class of Voting Stock of Parent then
outstanding. 

          “Trading
Day” means (i) for so long as Parent Common Stock is listed or admitted for
trading on the NYSE or another national securities exchange, a day on which the
NYSE or such other national securities exchange is open for business and
trading in Parent Common Stock is not suspended or restricted or (ii) if Parent
Common Stock ceases to be so listed, any day other than a Saturday or Sunday or
a day on which banking institutions in the State of New York are authorized or
obligated by Law or executive order to close. 

          “Underwriter”
means a securities dealer who purchases any Registrable Securities as a
principal in connection with a distribution of such Registrable Securities and
not as part of such dealer’s market-making activities. 

          “Voting
Power” means the ability to vote or to control, directly or indirectly, by
proxy or otherwise, the vote of any Voting Stock at the time such determination
is made; provided that a Person will not be deemed to have Voting Power as a
result of an agreement, arrangement or understanding to vote such Voting Stock
if such agreement, arrangement or understanding (i) arises solely from a
revocable proxy or consent given in response to a public proxy or consent
solicitation made pursuant to the Exchange Act and (ii) is not also then
reportable by such Person on Schedule 13D under the Exchange Act (or any
comparable or successor report). For purposes of determining the percentage of
Voting Power of any class or series (or classes or series) beneficially owned
by Stockholder, any securities not outstanding which are subject to conversion,
exchange or other rights, warrants, options or similar securities held by
Stockholder will be deemed to be outstanding for the purpose of computing such
percentage, but will not be deemed to be outstanding for the purpose of
computing the percentage of the class or series (or classes or series) beneficially
owned by any Person other than Stockholder.  

          “Voting
Stock” of any Person means securities having the right to vote generally in
any election of directors or comparable governing Persons of such Person or any
securities convertible into or exchangeable for any securities having such
right. 

          (b)
As used in this Agreement, the terms set forth below will have the meanings
assigned in the corresponding Section listed below:

	
 

	
 

	
 

	
Term

	
 

	
Section

	

	
 

	

	
Agreement

	
 

	
Preamble

	
Company

	
 

	
Preamble

	
Covered Securities

	
 

	
4.01(a)

	
Deferral Period

	
 

	
2.05

	
Demand Notice

	
 

	
2.01(a)

	
Demand Registration

	
 

	
2.01(a)

	
EDGAR

	
 

	
2.04(a)(i)

-5-

	
 

	
 

	
 

	
Term

	
 

	
Section

	

	
 

	

	
indemnified party

	
 

	
2.07(c)

	
Indemnified Persons

	
 

	
2.07(a)

	
indemnifying party

	
 

	
2.07(c)

	
Inspectors

	
 

	
2.04(a)(vi)

	
Merger

	
 

	
Recitals

	
Merger Agreement

	
 

	
Recitals

	
Parent

	
 

	
Preamble

	
Piggyback Registration

	
 

	
2.02

	
Records

	
 

	
2.04(a)(vi)

	
Registration Statement

	
 

	
2.01(a)

	
Representative

	
 

	
5.18

	
Stockholder

	
 

	
Preamble

ARTICLE II

REGISTRATION RIGHTS

          SECTION
2.01. Registration.

          (a)
At any time and from time to time on or after the 180th day
following the Closing Date, Parent agrees that, upon the written request of
Stockholder from time to time (a “Demand Notice”) and subject to
Sections 2.01(e) and 2.06, it will as promptly as reasonably practical prepare
and file a registration statement (which, if Parent is a well-known seasoned
issuer, shall be an automatic shelf registration statement) under the
Securities Act (a “Registration Statement,” which term will include any
amendments thereto and any documents incorporated by reference therein); provided, however, that (i) Parent shall be obligated to prepare, file or cause a
Registration Statement to become effective pursuant to this Section 2.01 (a “Demand
Registration”): (A) no more than two times in any 12-month period and (B)
no more than three times in the aggregate (provided that a Registration
Statement shall not be counted as one of the Demand Registrations hereunder
unless it becomes effective and is maintained effective for at least 90 days or
until the completion of the distribution of the Registrable Securities
registered pursuant to such Registration Statement) and (ii) the Registrable
Securities for which a Demand Registration has been requested will have a value
(based on the average closing price per share of Parent Common Stock for the
ten Trading Days preceding the delivery of such Demand Notice) of not less than
$25,000,000 or such lesser remaining amount of Registrable Securities held by
Stockholder. Each such Demand Notice will specify the number of Registrable
Securities proposed to be offered for sale and will also specify the intended
method of distribution thereof. 

          (b)
Parent agrees to use its commercially reasonable efforts (i) to cause any
Registration Statement to be declared effective (unless it becomes effective
automatically upon filing) as promptly as reasonably practicable after the
filing thereof, but in no event later than 90 days after receipt of a Demand
Notice, and (ii) to keep such Registration Statement effective for a period of
not less than 90 days or, if earlier, the completion of the distribution of the
Registrable Securities registered pursuant to such Registration Statement.
Parent shall be deemed not to have used its commercially reasonable efforts to

-6-

keep a
Registration Statement effective during the requisite period if it voluntarily
takes any action that would result in Stockholder not being able to offer and
sell the Registrable Securities during that period, unless such action is
required by applicable Law or permitted by Section 2.06. Parent further agrees
to supplement or make amendments to the Registration Statement as may be
necessary to keep such Registration Statement effective for the period set
forth in clause (ii) above, including (A) to respond to the comments of the
SEC, if any, (B) as may be required by the registration form utilized by Parent
for such Registration Statement or by the instructions applicable to such
registration form, (C) as may be required by the Securities Act, or (D) as may
be reasonably requested in writing by Stockholder or any Underwriter for
Stockholder. Parent agrees to furnish to Stockholder copies of any such
supplement or amendment prior to its being used or filed with the SEC. 

          (c)
In the event an offering of Registrable Securities under this Section 2.01
involves one or more Underwriters, Stockholder will select the lead Underwriter
and any additional Underwriters in connection with the offering from the list
of investment banks set forth on Schedule II. The list of investment banks on
Schedule II may be amended from time to time by Stockholder with the consent of
Parent (such consent not to be unreasonably withheld or delayed). 

          (d)
Notwithstanding the foregoing provisions of this Section 2.01, Stockholder may
not request a Demand Registration during a period commencing upon the filing
(or earlier, but not more than 30 days prior to such filing upon notice by
Parent to Stockholder that it so intends to file) of a Registration Statement
for Parent Common Stock by Parent (for its own account or for any other
security holder) and ending (i) 90 days after such Registration Statement is
declared effective by the SEC (or becomes automatically effective), (ii) upon
the withdrawal of such Registration Statement or (iii) 30 days after such
notice if no such Registration Statement has been filed within such 30-day
period, whichever occurs first; provided that the foregoing limitation will not
apply if Stockholder was not given reasonable opportunity, in violation of
Section 2.02, to include its Registrable Securities in the Registration
Statement described in this Section 2.01(d).  

          (e)
Stockholder will be permitted to rescind a Demand Registration or request the
removal of any Registrable Securities held by it from any Demand Registration
at any time (so long as, in the case of a Demand Registration, after such
removal it would still constitute a Demand Registration, including with respect
to the required Fair Market Value thereof); provided that, if
Stockholder rescinds a Demand Registration, such Demand Registration will
nonetheless count as a Demand Registration for purposes of determining when
future Demand Registrations can be requested by Stockholder pursuant to this
Section 2.01, unless Stockholder reimburses Parent for all expenses (including
reasonable fees and disbursements of counsel) incurred by Parent in connection
with such Demand Registration.

          SECTION
2.02. Piggyback Registration. If Parent proposes to file a Registration
Statement under the Securities Act with respect to an offering of Parent Common
Stock for (a) Parent’s own account (other than (i) a Registration Statement on
Form S-4 or S-8 (or any substitute form that may be adopted by the SEC) or (ii)
a Registration Statement filed in connection with an offering of securities
solely to Parent’s existing security holders) or (b) the account of any holder
of Parent Common Stock (other than Stockholder) pursuant to a demand
registration requested by such holder, then Parent will give written notice of
such proposed filing to Stockholder as soon as practicable (but in no event
less than 20 days before the anticipated filing date), and upon the written
request, given within 10 days after delivery of any such notice by Parent, of
Stockholder to include Registrable Securities in such registration (which
request shall specify the number of Registrable Securities proposed to be
included in such registration), Parent will, subject to Section 2.03, include
all such Registrable Securities in such registration, on the same terms and
conditions as Parent’s or such holder’s Parent Common Stock (a “Piggyback
Registration”); provided, however, that if, at any time after giving
written notice of such proposed filing and prior 

-7-

to the
business day prior to the effective date of the Registration Statement filed in
connection with such registration, Parent shall determine for any reason not to
proceed with the proposed registration of the securities, then Parent may, at
its election, give written notice of such determination to Stockholder and,
thereupon, will be relieved of its obligation to register any Registrable
Securities in connection with such registration. Parent will control the
determination of the form of any offering contemplated by this Section 2.02,
including whether any such offering will be in the form of an underwritten
offering and, if any such offering is in the form of an underwritten offering,
Parent will select the lead Underwriter and any additional Underwriters in
connection with such offering. 

          SECTION
2.03. Reduction of Offering. Notwithstanding anything contained herein,
if the lead Underwriter of an underwritten offering described in Section 2.01
or Section 2.02 advises Parent in writing that the number of shares of Parent
Common Stock (including any Registrable Securities) that Parent, Stockholder
and any other Persons intend to include in any Registration Statement is such
that the success of any such offering would be materially and adversely affected,
including the price at which the securities can be sold or the number of
Registrable Securities that any participant may sell, then the number of shares
of Parent Common Stock to be included in the Registration Statement for the
account of Parent, Stockholder and any other Persons will be reduced pro rata
to the extent necessary to reduce the total number of securities to be included
in any such Registration Statement to the number recommended by such lead
Underwriter; provided that (a) priority in the case of a Demand
Registration pursuant to Section 2.01 will be (i) first, the Registrable
Securities requested to be included in the Registration Statement for the
account of Stockholder, (ii) second, securities to be offered by Parent
for its own account, (iii) third, securities requested to be included in
the Registration Statement by Tengelmann pursuant to any piggyback registration
rights set forth in the Stockholder Agreement between Tengelmann and Parent
dated as of the date hereof and (iv) fourth, pro rata among any other
holders of securities of Parent having the right to be so included so that the
total number of securities to be included in any such offering for the account
of all such Persons will not exceed the number recommended by such lead
Underwriter; (b) priority in the case of a Registration Statement initiated by
Parent for its own account which gives rise to a Piggyback Registration
pursuant to Section 2.02 will be (i) first, securities initially
proposed to be offered by Parent for its own account, (ii) second,
securities requested to be included in the Registration Statement for the
account of Tengelmann pursuant to any piggyback registration rights set forth
in the Stockholder Agreement between Tengelmann and Parent dated as of the date
hereof and securities requested to be included in the Registration Statement
for the account of Stockholder pursuant to Section 2.02 hereof, pro rata based
on Tengelmann’s Piggyback Percentage and Stockholder’s Piggyback Percentage,
respectively, and (iii) third, among any other securities of Parent
requested to be registered pursuant to a contractual right so that the total
number of securities to be included in any such offering for the account of all
such Persons will not exceed the number recommended by such lead Underwriter;
(c) priority in the case of a Registration Statement initiated by Parent for
the account of Tengelmann pursuant to registration rights afforded to
Tengelmann pursuant to the Stockholder Agreement between Tengelmann and Parent
dated as of the date hereof will be (i) first, the securities requested
to be included in the Registration Statement for the account of Tengelmann,
(ii) second, securities to be offered by Parent for its own account,
(iii) third, securities requested to be included in the Registration
Statement for the account of Stockholder pursuant to Section 2.02 hereof and
(iv) fourth, among any other securities of Parent requested to be
registered pursuant to a contractual right so that the total number of
securities to be included in any such offering for the account of all such
Persons will not exceed the number recommended by such lead Underwriter, and
(d) priority with respect to inclusion of securities in a Registration
Statement initiated by Parent for the account of holders other than Stockholder
and Tengelmann pursuant to registration rights afforded such holders will be
(i) first, pro rata among securities requested to be included in the
Registration Statement for the account of such holders, (ii) second,
securities requested to be included in the Registration Statement by Parent for
its own account, (iii) third, securities requested to be included in the
Registration Statement for the account of Tengelmann pursuant to any piggyback
registration rights set 

-8-

forth in the
Stockholder Agreement between Tengelmann and Parent dated as of the date hereof
and securities requested to be included in the Registration Statement for the
account of Stockholder pursuant to Section 2.02 hereof, pro rata based on
Tengelmann’s Piggyback Percentage and Stockholder’s Piggyback Percentage,
respectively, and (iv) fourth, pro rata among any other securities of
Parent requested to be registered pursuant to a contractual right so that the
total number of securities to be included in any such offering for the account
of all such Persons will not exceed the number recommended by such lead
Underwriter. 

          SECTION
2.04. Registration Procedures. 

              (a) Subject
to the provisions of Section 2.01 hereof, in connection with the registration
of the sale of Registrable Securities hereunder, Parent will as promptly as
reasonably practicable: 

          (i) furnish
to Stockholder without charge, if requested, prior to the filing of a
Registration Statement, copies of such Registration Statement as it is proposed
to be filed, and thereafter such number of copies of such Registration
Statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein, except to the
extent such exhibits or documents are currently available electronically via
the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”)),
the prospectus included in such Registration Statement (including each
preliminary prospectus), copies of any and all transmittal letters or other
correspondence with the SEC relating to such Registration Statement (except to
the extent such letters or correspondence is currently available electronically
via EDGAR) and such other documents in such quantities as Stockholder may
reasonably request from time to time in order to facilitate the disposition of
such Registrable Securities; 

          (ii) use
its commercially reasonable efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions
as Stockholder reasonably requests and do any and all other acts and things as
may be reasonably necessary or advisable to enable Stockholder to consummate
the disposition of such Registrable Securities in such jurisdictions; provided
that Parent will not be required to (x) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 2.04(a)(ii), (y) subject itself to taxation in any such jurisdiction or
(z) consent to general service of process in any such jurisdiction; 

          (iii) notify
Stockholder at any time when a prospectus relating to Registrable Securities is
required to be delivered under the Securities Act, of the happening of any
event as a result of which the prospectus included in a Registration Statement
or the Registration Statement or amendment or supplement relating to such
Registrable Securities contains an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, and Parent will promptly prepare and file with the SEC a
supplement or amendment to such prospectus and Registration Statement (and
comply fully with the applicable provisions of Rules 424, 430A and 430B under
the Securities Act in a timely manner) so that, as thereafter delivered to the
purchasers of the Registrable Securities, such prospectus and Registration
Statement will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; 

          (iv) advise
the Underwriters, if any, and Stockholder promptly and, if requested by such
Persons, confirm such advice in writing, of the issuance by the SEC of any stop
order sus-

-9-

pending the
effectiveness of the Registration Statement under the Securities Act or of the
suspension by any state securities commission of the qualification of the
Registrable Securities for offering or sale in any jurisdiction, or the
initiation of any proceeding for any of the preceding purposes.  If at any time the SEC shall issue any stop
order suspending the effectiveness of the Registration Statement, or any state
securities commission or other regulatory authority shall issue an order
suspending the qualification or exemption from qualification of the Registrable
Securities under state securities or blue sky laws, Parent shall use its
commercially reasonable efforts to obtain the withdrawal or lifting of such
order at the earliest possible time; 

          (v) use
its commercially reasonable efforts to cause such Registrable Securities to be
registered with or approved by such other Governmental Entities as may be
necessary by virtue of the business and operations of Parent to enable
Stockholder to consummate the disposition of such Registrable Securities; provided
that Parent will not be required to (x) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 2.04(a)(v), (y) subject itself to taxation in any such jurisdiction or (z)
consent to general service of process in any such jurisdiction; 

          (vi) enter
into customary agreements and use commercially reasonable efforts to take such
other actions as are reasonably requested by Stockholder in order to expedite
or facilitate the disposition of such Registrable Securities, including
preparing for and participating in a road show and all such other customary
selling efforts as the Underwriters reasonably request in order to expedite or
facilitate such disposition; 

          (vii) if
requested by Stockholder or the Underwriter(s) in connection with such sale, if
any, promptly include in any Registration Statement or prospectus, pursuant to
a supplement or post-effective amendment if necessary, such information as
Stockholders and such Underwriter(s), if any, may reasonably request to have
included therein, including, without limitation, information relating to the
“Plan of Distribution” of the Registrable Securities, information with respect
to the number of Registrable Securities being sold to such Underwriter(s), the
purchase price being paid therefor and any other terms of the offering of the
Registrable Securities to be sold in such offering, and make all required
filings of such prospectus supplement or post-effective amendment as soon as
practicable after Parent is notified of the matters to be included in such
prospectus supplement or post-effective amendment; 

          (viii) make
available for inspection by Stockholder, any Underwriter participating in any
disposition of such Registrable Securities, and any attorney for Stockholder
and such Underwriter and any accountant or other agent retained by Stockholder
or such Underwriter (collectively, the “Inspectors”), all financial and
other records, pertinent corporate documents and properties of Parent
(collectively, the “Records”) as will be reasonably necessary to enable
them to conduct customary due diligence with respect to Parent and the related
Registration Statement and prospectus, and cause the Representatives of Parent
and its Subsidiaries to supply all information reasonably requested by any such
Inspector; provided that (x) Records and information obtained hereunder
will be used by such Inspector only to conduct such due diligence and (y)
Records or information that Parent determines, in good faith, to be
confidential will not be disclosed by such Inspector unless (A) the disclosure
of such Records or information is necessary to avoid or correct a material
misstatement or omission in a Registration Statement or related prospectus or
(B) the release of such Records or information is ordered pursuant to a
subpoena or other order from a court or governmental authority of competent
jurisdiction; 

-10-

          (ix) cause
Parent’s Representatives to supply all information reasonably requested by
Stockholder or any Underwriter, attorney, accountant or agent in connection
with the Registration Statement; 

          (x) use
its commercially reasonable efforts to obtain and deliver to each Underwriter
and Stockholder a comfort letter from the independent public accountants for
Parent (and additional comfort letters from independent public accountants for
any company acquired by Parent whose financial statements are included or
incorporated by reference in the Registration Statement) in customary form and
covering such matters as are customarily covered by comfort letters as such
Underwriter and Stockholder may reasonably request, including (x) that the
financial statements included or incorporated by reference in the Registration
Statement or the prospectus, or any amendment or supplement thereof, comply as
to form in all material respects with the applicable accounting requirements of
the Securities Act and (y) as to certain other financial information for the
period ending no more than five business days prior to the date of such letter;
provided, however, that if Parent fails to obtain such comfort
letter, then such Demand Registration will not count as a Demand Registration
for purposes of determining when future Demand Registrations can be requested
by a Stockholder pursuant to Section 2.01; 

          (xi) use
its commercially reasonable efforts to obtain and deliver to each Underwriter
and Stockholder a 10b-5 statement and legal opinion from Parent’s counsel in
customary form and covering such matters as are customarily covered by 10b-5
statements and legal opinions as such Underwriter and Stockholder may
reasonably request; provided, however, that if Parent fails to
obtain such statement or opinion, then such Demand Registration will not count
as a Demand Registration for purposes of determining when future Demand
Registrations can be requested by a Stockholder pursuant to Section 2.01; 

          (xii)
otherwise use its commercially reasonable efforts to comply with all applicable
rules and regulations of the SEC, and make generally available to its security
holders, within the required time period, an earnings statement (which need not
be audited) covering a period of 12 months beginning with the first fiscal
quarter after the effective date of the Registration Statement relating to such
Registrable Securities (as the term “effective date” is defined in Rule 158(c)
under the Securities Act), which earnings statement will satisfy the provisions
of Section 11(a) of the Securities Act and Rule 158 thereunder or any successor
provisions thereto; and 

          (xiii)
use its commercially reasonable efforts to cause such Registrable Securities to
be listed or quoted on the NYSE or, if Parent Common Stock is not then listed
on the NYSE, then on any other securities exchange or national quotation system
on which similar securities issued by Parent are listed or quoted. 

          (b)
In connection with the Registration Statement relating to such Registrable
Securities covering an underwritten offering, (i) Parent and Stockholder agree
to enter into a written agreement with each Underwriter selected in the manner
herein provided in such form and containing such provisions as are customary in
the securities business for such an arrangement between such Underwriter and
companies of Parent’s size and investment stature and, to the extent
practicable, on terms consistent with underwriting agreements entered into by
Parent (it being understood that, unless required otherwise by the Securities
Act or any other Law, Parent will not require Stockholder to make any
representation, warranty or agreement in such agreement other than with respect
to Stockholder, the ownership of Stockholder’s securities being registered and
Stockholder’s intended method of disposition) and (ii) Stockholder agrees to
complete and execute all such other documents customary in similar offerings,
including any reasonable questionnaires, powers of attorney, hold-back
agreements, letters and other documents customarily 

-11-

required under
the terms of such underwriting arrangements.
The representations and warranties by, and the other agreements on the
part of, Parent to and for the benefit of such Underwriter in such written
agreement with such Underwriter will also be made to and for the benefit of
Stockholder.  In the event an
underwritten offering is not consummated because any condition to the
obligations under any related written agreement with such Underwriter is not
met or waived in connection with a Demand Registration, and such failure to be
met or waived is not attributable to the fault of Stockholder, such Demand
Registration will not be deemed exercised. 

          SECTION
2.05. Conditions to Offerings. 

          (a)
The obligations of Parent to take the actions contemplated by Section 2.01,
Section 2.02, Section 2.03 and Section 2.04 with respect to an offering of
Registrable Securities will be subject to the following conditions: 

          (i)
Parent may require Stockholder to furnish to Parent such information regarding
Stockholder or the distribution of such Registrable Securities as Parent may
from time to time reasonably request in writing, in each case only as required
by the Securities Act or under state securities or blue sky laws; and 

          (ii)
in any underwritten offering pursuant to Section 2.01 or Section 2.02 hereof,
Stockholder, together with Parent, will enter into an underwriting agreement in
accordance with Section 2.04(b) above with the Underwriter or Underwriters
selected for such underwriting, as well as such other documents customary in
similar offerings. 

          (b)
Stockholder agrees that, upon receipt of any notice from Parent of the
happening of any event of the kind described in Section 2.04(a)(iii) or Section
2.04(a)(iv) hereof or a condition described in Section 2.06 hereof, Stockholder
will forthwith discontinue disposition of such Registrable Securities pursuant
to the Registration Statement covering the sale of such Registrable Securities
until Stockholder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 2.04(a)(iii) hereof or notice from Parent of
the termination of the stop order or Deferral Period. 

          SECTION
2.06. Black-out Period. Parent’s obligations pursuant to Section 2.01,
Section 2.02 and Section 2.03 hereof will be suspended if compliance with such
obligations would (a) violate applicable Law or (b) require Parent to disclose
a financing, acquisition, disposition or other corporate development, and the
chief executive officer of Parent has determined, in the good faith exercise of
his reasonable business judgment, that such disclosure is not in the best
interests of Parent or (c) otherwise represent an undue hardship for Parent; provided
that any such suspension pursuant to clause (b) or (c) will not exceed 90 days
and all such suspensions pursuant to clauses (b) and (c) will not exceed 180
days in any 12-month period (the “Deferral Period”).  Parent will promptly give Stockholder
written notice of any such suspension containing the approximate length of the
anticipated delay, and Parent will notify Stockholder upon the termination of
the Deferral Period.  Upon receipt of
any notice from Parent of any Deferral Period, Stockholder shall forthwith
discontinue disposition of the Registrable Securities pursuant to the
Registration Statement relating thereto until Stockholder receives copies of
the supplemented or amended prospectus contemplated hereby or until it is
advised in writing by Parent that the use of the prospectus may be resumed and
has received copies of any additional or supplemented filings that are
incorporated by reference in the prospectus, and, if so directed by Parent,
Stockholder will, and will request the lead Underwriter or Underwriters, if
any, to, deliver to Parent all copies, other than permanent file copies, then
in Stockholder’s or such Underwriter’s or Underwriters’ possession of the
current prospectus covering such Registrable Securities. 

-12-

          SECTION
2.07. Registration Expenses. All fees and expenses incident to Parent’s
performance of or compliance with the obligations of this Article II, including
all fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel for any Underwriters in connection
with qualification of Registrable Securities under applicable blue sky laws),
printing expenses, messenger and delivery expenses of Parent, any registration
or filing fees payable under any Federal or state securities or blue sky laws,
the fees and expenses incurred in connection with any listing or quoting of the
securities to be registered on any national securities exchange or automated
quotation system, fees of the National Association of Securities Dealers, Inc.,
fees and disbursements of counsel for Parent, its independent certified public
accountants and any other public accountants who are required to deliver
comfort letters (including the expenses required by or incident to such
performance), transfer taxes, fees of transfer agents and registrars, costs of
insurance and the fees and expenses of other Persons retained by Parent will be
borne by Parent.  Stockholder will bear
and pay any underwriting discounts and commissions applicable to Registrable
Securities offered for its account pursuant to any Registration Statement. 

          SECTION
2.08. Indemnification; Contribution. 

          (a)
In connection with any registration of Registrable Securities pursuant to
Section 2.01, Section 2.02 or Section 2.03 hereof, Parent agrees to indemnify
and hold harmless, to the fullest extent permitted by Law, Stockholder, its
Affiliates, directors, officers and stockholders and each Person who controls
Stockholder within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act (collectively, the “Indemnified Persons”)
from and against any and all losses, claims, damages, liabilities, judgments,
actions and expenses (including reasonable attorneys’ fees) joint or several
caused by any untrue or alleged untrue statement of material fact contained in
any part of any Registration Statement or any preliminary or final prospectus
used in connection with the Registrable Securities or any Issuer FWP, or any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of a
prospectus, in the light of the circumstances under which they were made) not
misleading; provided that Parent will not be required to indemnify any
Indemnified Person for any losses, claims, damages, liabilities, judgments,
actions or expenses resulting from any such untrue statement or omission if
such untrue statement or omission was made in reliance on and in conformity
with information with respect to any Indemnified Person furnished to Parent in
writing by Stockholder expressly for use therein.   

          (b)
In connection with any Registration Statement, preliminary or final prospectus,
or Issuer FWP, Stockholder agrees to indemnify Parent, its Directors, its
officers who sign such Registration Statement and each Person, if any, who
controls Parent (within the meaning of either Section 15 of the Securities Act
or Section 20 of the Exchange Act) to the same extent as the foregoing
indemnity from Parent to Stockholder, but only with respect to information with
respect to any Indemnified Person furnished to Parent in writing by Stockholder
expressly for use in such Registration Statement, preliminary or final
prospectus, or Issuer FWP. 

          (c)
In case any claim, action or proceeding (including any governmental
investigation) is instituted involving any Person in respect of which indemnity
may be sought pursuant to Section 2.08(a) or (b), such Person (hereinafter
called the “indemnified party”) will (i) promptly notify the Person
against whom such indemnity may be sought (hereinafter called the “indemnifying
party”) in writing; provided that the failure to give such notice
shall not relieve the indemnifying party of its obligations pursuant to this
Agreement except to the extent such indemnifying party has been prejudiced in
any material respect by such failure; (ii) permit the indemnifying party to
assume the defense of such claim, action or proceeding with counsel reasonably
satisfactory to the indemnified party; and (iii) pay the fees and disbursements
of such counsel related to such claim, action or proceeding.  In any such claim, action or pro-

-13-

ceeding, any
indemnified party will have the right to retain its own counsel, but the fees
and expenses of such counsel will be at the expense of such indemnified party
unless (A) the indemnifying party and the indemnified party have mutually
agreed to the retention of such counsel, (B) the named parties to any such
claim, action or proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and the indemnified party has been
advised in writing by counsel, with a copy provided to Parent, that
representation of both parties by the same counsel would be inappropriate due
to actual or potential conflicting interests between them or (C) the
indemnifying party has failed to assume the defense of such claim and employ
counsel reasonably satisfactory to the indemnified party.  It is understood that the indemnifying party
will not, in connection with any claim, action or proceeding or related claims,
actions or proceedings in the same jurisdiction, be liable for the reasonable
fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel at any time for all such indemnified parties) and that all
such reasonable fees and expenses will be reimbursed reasonably promptly
following a written request by an indemnified party stating under which clause
of (A) through (C) above reimbursement is sought and delivery of documentation
of such fees and expenses.  In the case
of the retention of any such separate firm for the indemnified parties, such
firm will be designated in writing by the indemnified parties.  The indemnifying party will not be liable
for any settlement of any claim, action or proceeding effected without its
written consent (which consent shall not be unreasonably withheld), but if such
claim, action or proceeding is settled with such consent or if there has been a
final judgment for the plaintiff, the indemnifying party agrees to indemnify
the indemnified party from and against any loss or liability by reason of such
settlement or judgment.  No indemnifying
party will, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding. 

          (d)
If the indemnification provided for in this Section 2.08 from the indemnifying
party is unavailable to an indemnified party hereunder in respect of any
losses, claims, damages, liabilities, judgments, actions or expenses referred
to in this Section 2.08, then the indemnifying party, in lieu of indemnifying
such indemnified party, will contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities,
judgments, actions or expenses (i) in such proportion as is appropriate to
reflect the relative fault of the indemnifying party and indemnified party in
connection with the actions that resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable
considerations, or (ii) if the allocation provided by clause (i) is not
permitted by applicable Law, in such proportion as is appropriate to reflect
not only the relative fault referred to in clause (i) but also the relative
benefit of Parent, on the one hand, and Stockholder, on the other, in
connection with the statements or omissions that resulted in such losses,
claims, damages, liabilities, judgments, actions or expenses, as well as any
other relevant equitable considerations.
The relative fault of such indemnifying party and indemnified party will
be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact, has been taken by, or
relates to information supplied by, such indemnifying party or indemnified
party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action.
The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above will be deemed to include,
subject to the limitations set forth in Section 2.08(c), any legal or other
fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding. 

          (e)
The parties agree that it would not be just and equitable if contribution
pursuant to Section 2.08(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in Section 2.08(d). No Person guilty of

-14-

“fraudulent
misrepresentation” (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.
Notwithstanding the provisions of this Section 2.08(e), Stockholder
shall not be required to contribute, in the aggregate, any amount in excess of
the amount by which the net proceeds received by Stockholder with respect to
the Registrable Securities exceed the greater of (A) the amount paid by
Stockholder for its Registrable Securities and (B) the amount of any damages
which Stockholder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission.  Each Stockholder’s obligation to contribute
pursuant to this Section 2.08 is several in proportion to the respective number
of Registrable Securities held by such Stockholder hereunder and not joint. 

          (f) For
purposes of this Section 2.08, each controlling person of a Stockholder shall
have the same rights to contribution as such Stockholder, and each officer,
Director and Person, if any, who controls Parent within the meaning of Section
15 of the Securities Act or Section 20(a) of the Exchange Act shall have the
same rights to contribution as Parent, subject in each case to the limitations
set forth in the immediately preceding paragraph.  Any party entitled to contribution will, promptly after receipt
of notice of commencement of any action, suit or proceeding against such party
in respect of which a claim for contribution may be made against another party
or parties under this Section 2.08, notify such party or parties from whom
contribution may be sought, but the omission to so notify such party or parties
shall not relieve the party or parties from who contribution may be sought from
any obligation it or they may have under this Section 2.08 or otherwise except
to the extent that it has been prejudiced in any material respect by such
failure.  No party shall be liable for
contribution with respect to any action or claim settled without its written
consent; provided, however, that such written consent was not
unreasonably withheld. 

          (g)
If indemnification is available under this Section 2.08, the indemnifying party
will indemnify each indemnified party to the full extent provided in Sections
2.08(a) and (b) without regard to the relative fault of said indemnifying party
or indemnified party or any other equitable consideration provided for in
Section 2.08(d) or (e). 

          SECTION
2.09. Rule 144. For so long as Parent is subject to the requirements of
Section 13, 14 or 15(d) of the Exchange Act, Parent agrees that it will timely
file the reports required to be filed by it under the Securities Act and the
Exchange Act and it will take such further action as Stockholder reasonably may
request, all to the extent required from time to time to enable Stockholder to
sell Registrable Securities within the limitation of the exemptions provided by
(a) Rule 144 under the Securities Act, as such rule may be amended from time to
time, or (b) any similar rule or regulation hereafter adopted by the SEC. 

          SECTION
2.10. Lockup. If and to the extent requested by the lead Underwriter of
an underwritten offering of Equity Securities of Parent, Parent and Stockholder
agree not to effect, and to cause their respective Affiliates not to effect,
except as part of such registration, any offer, sale, pledge, transfer or other
distribution or disposition or any agreement with respect to the foregoing of
the issue being registered or offered, as applicable, or of a similar security
of Parent, or any securities into which such Equity Securities are convertible,
or any securities convertible into, or exchangeable or exercisable for, such
Equity Securities, including a sale pursuant to Rule 144 under the Securities
Act, during a period of up to seven days prior to, and during a period of up to
90 days after, the effective date of such registration, as reasonably requested
by the lead Underwriter.  The lead
Underwriter shall give Parent and Stockholder prior notice of any such request.

SECTION 2.11. Termination
of Registration Rights. This Article II (other than Sections 2.07, 2.08 and
2.09) will terminate on the date on which all shares of Parent Common Stock
subject

-15-

to this
Agreement cease to be Registrable Securities.
Section 2.09 will terminate on the date on which all shares of Parent
Common Stock subject to this Agreement may be sold pursuant to Rule 144(k). 

          SECTION
2.12. Specific Performance. Stockholder, in addition to being entitled
to exercise all rights provided herein or granted by law, including recovery of
liquidated or other damages, will be entitled to specific performance of its
rights under this Agreement.  Parent
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Agreement and
hereby agrees to waive the defense in any action for specific performance that
a remedy at law would be adequate. 

          SECTION
2.13. Other Registration Rights. Parent (a) has not granted and will not
grant to any third party any registration rights inconsistent with any of those
contained herein and (b) has not entered into and will not enter into any
agreement that will impair its ability to perform its obligations under this
Article II, so long as any of the registration rights under this Agreement
remain in effect.  If Parent provides
Tengelmann with the right to require Parent to file a shelf registration
statement pursuant to Rule 415 under the Securities Act for resales of
securities held by Tengelmann, then Stockholder shall have the right to require
a shelf registration statement to register all of Stockholder’s Registrable
Securities on substantially the same terms and conditions as provided to
Tengelmann. 

ARTICLE III

STANDSTILL, ACQUISITIONS OF SECURITIES AND
OTHER MATTERS

          SECTION
3.01. Acquisitions of Common Stock. Until the Standstill Expiration
Date, without the prior approval of the Board, Stockholder shall not, nor shall
it permit its controlled and/or controlling Affiliates or General Partners to,
purchase or otherwise acquire, offer to acquire or agree to acquire, directly
or indirectly, beneficial ownership of Parent Common Stock or any other Equity
Security of Parent such that, after giving effect to any such acquisition and
the exercise, conversion or exchange of any Equity Security, Stockholder would
be the beneficial owner of in excess of 9.9% of the outstanding Parent Common
Stock (excluding any Parent Common Stock received or acquired, or that may be
received or acquired, by Stockholder pursuant to the exercise of the Roll-over
Warrants in accordance with their terms), except by way of stock splits, stock
dividends, reclassifications, recapitalizations or other distributions by Parent
to all holders of Parent Common Stock or due to stock repurchases or
redemptions by Parent. 

          SECTION
3.02. No Participation in a Group or Solicitation of Proxies. Except for
actions permitted by, or taken in compliance with, Section 3.01 and its exercise
of rights pursuant to the provisions of this Agreement, Stockholder agrees
that, prior to the Standstill Expiration Date, it will not, nor shall it permit
its controlled and/or controlling Affiliates or General Partners to, without
the prior approval of the Board, directly or indirectly: 

      (a)
propose to enter into, or seek, make or take any action to solicit or knowingly
initiate or encourage any offer or proposal for or any indication of interest
in, any extraordinary corporate transaction (including any Business Combination
or dissolution) involving Parent or any Subsidiary thereof or propose or
attempt to acquire or effect control of Parent or any Subsidiary thereof or
take any action that would require, or for the purpose of requiring, Parent or
any Subsidiary thereof to make a public announcement regarding the possibility
of any such extraordinary corporate transaction; 

-16-

          (b)
make, or in any way participate, directly or indirectly, in, any “solicitation”
of “proxies” to vote or in any “election contest” (as such terms are used in
the proxy rules of the Exchange Act), or agree or announce an intention to vote
with any Person undertaking a “solicitation”, or seek to advise or influence
any Person or 13D Group with respect to the voting of, any Voting Stock of
Parent or any Subsidiary thereof, or make any proposal to be voted upon by
holders of Voting Stock; 

          (c)
form, join, encourage the formation of or in any way engage in discussions
relating to the formation of, or in any way participate in, any 13D Group
(other than with any other Stockholder or its Permitted Transferees) with
respect to any Voting Stock of Parent or any Subsidiary thereof, including
pursuant to any voting agreement or trust; 

          (d)
seek representation on the Board of Directors or to remove any member of the
Board of Directors or otherwise act, alone or in concert with others, to seek
to control or influence the identity, size or actions of management or the
Board of Directors or policies or practices of Parent or any Subsidiary
thereof, including through oral or written communication with management or
other stockholders or through public statements; 

          (e)
request Parent or any of its Representatives or propose or otherwise seek,
directly or indirectly, to amend or waive any provision of this Section 3.02
(including this clause (e)); or 

          (f)
disclose any intention, plan or arrangement inconsistent with the foregoing or
advise, finance or knowingly assist or encourage any other Persons in
connection with the foregoing or enter into any discussions, negotiations,
arrangements, understandings or agreements with any Third Party (other than any
Person that would be a Permitted Transferee) with respect to any of the
foregoing. 

ARTICLE IV

RESTRICTIONS ON TRANSFERABILITY OF SECURITIES

          SECTION
4.01. General. 

          (a)
Until the second anniversary of the Standstill Expiration Date, Stockholder
shall not make or solicit any Sale of, or create, incur or assume any Encumbrance
with respect to, and shall cause each of its controlled Affiliates not to make
or solicit any Sale of, or create, incur or assume any Encumbrance with respect
to, Equity Securities now owned or hereafter acquired by Stockholder or its
controlled Affiliates (collectively, the “Covered Securities”); provided,
however, that Stockholder or any of its controlled Affiliates may make
or solicit a Sale of any of the Covered Securities (other than the Roll-over
Warrants): 

       (i)
to a Permitted Transferee of Stockholder (subject, in the case of a Sale to a
controlled Affiliate, to compliance with Section 4.01(c) hereof); 

       (ii)
to Tengelmann or any of its Affiliates; 

       (iii)
to Parent or a Subsidiary of Parent; 

       (iv)
               pursuant to Article II of
this Agreement, so long as any Underwriter purchasing the Covered Securities or
otherwise facilitating such Sale agrees that the Covered Securities shall 

-17-

be distributed
pursuant to the limitations set forth in Section 4.01(b) (in which case any
restrictive legends pursuant to Section 4.03(a) shall be removed by Parent); 

          (v)
in one or more block trades with a financial institution, so long as any
financial institution purchasing the Covered Securities or otherwise facilitating
such Sale agrees that the Covered Securities shall be distributed pursuant to
the limitations set forth in Section 4.01(b) (in which case any restrictive
legends pursuant to Section 4.03(a) shall be removed by Parent); 

          (vi)
pursuant to any Business Combination, tender or exchange offer to acquire
Parent Common Stock or any other extraordinary transaction that (A) was not
solicited by Stockholder or any of its Affiliates; (B) is for 100% of the
outstanding Parent Common Stock; (C) includes a majority tender or approval
condition; and (D) includes a statement of intention to pay the same or higher
consideration in a back-end merger; 

          (vii)
pursuant to any Business Combination, tender or exchange offer to acquire
Parent Common Stock or other extraordinary transaction that (A) the Board has
recommended; (B) was proposed or made by or on behalf of Tengelmann or any of
its Affiliates; or (C) has been accepted by holders of a majority of the shares
of Parent Common Stock outstanding (other than those owned by Stockholder), but
only after all material conditions with respect to such combination or offer
(other than any such condition that can be satisfied only at the closing of
such offer) have been satisfied or irrevocably waived by the offeror; 

          (viii)
pursuant to Rule 144 or Rule 145 under the Securities Act; 

          (ix)
pursuant to any foreclosure on the Covered Securities (including, in the case
of this clause (ix), the Roll-over Warrants) by any broker-dealer, bank or other
financial institution for the benefit of which an Encumbrance permitted by the
following proviso has been created, incurred or assumed and regarding which the
right of first refusal set forth in such proviso has not been exercised; and 

          (x)
pursuant to any hedging transaction designed to protect against fluctuations in
value of Covered Securities (including, in the case of this clause (x), the
Roll-over Warrants) not for the purposes of circumventing the restrictions on
transfer set forth in this Agreement; 

and provided,
further, that Stockholder may create, incur or assume any Encumbrance with
respect to pledges of Covered Securities (including the Roll-over Warrants) in
connection with any margin loan or other extensions of credit from a broker-dealer,
bank or other financial institution and not entered into with the purpose of
circumventing the provisions of this Section 4.01 so long as the pledgee agrees
that, prior to any foreclosure on the Covered Securities by it, it shall afford
Parent notice, and the opportunity within two Trading Days following delivery
of notice to Parent, to exercise a right of first refusal to purchase such
Covered Securities for cash at Fair Market Value (such cash to be paid by or on
behalf of Parent no later than the fifth Trading Day following delivery of
notice to Parent of an intent to dispose of such Covered Securities). In the event Parent does not exercise its
right of first refusal within two Trading Days of delivery of notice to it, the
pledgee may immediately Sell any Covered Securities without restriction.  

          (b)
No Sale of Covered Securities pursuant to Section 4.01(a)(iv) or (v) or
pursuant to Section 4.01(a)(viii) that is not conducted as a broker’s
transaction shall be effective if (i) made to any Person or 13D Group (in each
case that has a statement on Schedule 13D with respect to Parent in effect), in
any single or series of related transactions, such that, after giving effect to
such Sale, such Person or 

-18-

13D Group
would have beneficial ownership of Parent Common Stock representing more than
9.9% of the Voting Power of Parent’s outstanding capital stockor (ii) the Voting Power of the shares
sold to any such Person or 13D Group exceeds 5.0% of the Voting Power of
Parent’s outstanding Voting Stock. 

          (c)
No Sale of Covered Securities to a controlled Affiliate of Stockholder shall be
effective until such time as such controlled Affiliate has executed and
delivered to Parent, as a condition precedent to such Sale, an instrument or
instruments, reasonably acceptable to Parent, confirming that such controlled
Affiliate agrees to be bound by all obligations of Stockholder hereunder.  Stockholder shall not transfer control of
any of its controlled Affiliates to any Person that is not also a controlled
Affiliate of Stockholder if such transfer would directly or indirectly result
in a Sale of Covered Securities in violation of the provisions of this Section
4.01. 

          SECTION
4.02. Improper Sale or Encumbrance. Any attempt not in compliance with
this Agreement to make any Sale of, or create, incur or assume any Encumbrance
with respect to, any Covered Securities shall be null and void and of no force
and effect, the purported transferee shall have no rights or privileges in or with
respect to Parent, and Parent shall not give any effect in Parent’s stock
records to such attempted Sale or Encumbrance. 

          SECTION
4.03. Restrictive Legend.

          (a)
Each certificate evidencing the Covered Securities shall be stamped or otherwise
imprinted with a legend in substantially the following form (in addition to any
legends required by agreement or by applicable securities laws): 

          THE
SECURITIES EVIDENCED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS UNDER THE TERMS
OF THE STOCKHOLDER AGREEMENT DATED AS OF MARCH 4, 2007, AS AMENDED FROM TIME TO
TIME, BETWEEN THE ISSUER AND THE HOLDER HEREOF AND MAY NOT BE OFFERED, SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE WITH THE TERMS OF
THAT AGREEMENT. 

          (b)
Stockholder consents to Parent’s making a notation on its records and giving
instructions to any transfer agent of its capital stock in order to implement
the restrictions on transfer established in this Agreement. 

          (c)
Parent shall, at the request of Stockholder, remove from each certificate
evidencing Parent Common Stock transferred in compliance with the terms of
Section 4.01 and with respect to which no rights or obligations under this
Agreement shall transfer, the legend described in Section 4.03(a), and shall
remove from each certificate evidencing such securities any Securities Act
legend if, at the request of Parent, Stockholder provides, at its expense, an
opinion of counsel satisfactory to Parent that the securities evidenced thereby
may be transferred without the imposition of any such legend. 

ARTICLE V

MISCELLANEOUS

          SECTION
5.01. Adjustments. References to numbers of shares and to sums of money
contained herein will be adjusted to account for any reclassification,
exchange, substitution, combination, stock split or reverse stock split of the
shares. 

          SECTION
5.02. Notices. All notices, requests, claims, demands and other
communications under this Agreement will be in writing and will be deemed given
(i) when delivered, if delivered 

-19-

in person,
(ii) when sent by facsimile (provided the facsimile is promptly confirmed by
telephone confirmation thereof), (iii) when sent by email (provided the email
is promptly confirmed by telephone confirmation thereof) or (iv) two business
days following sending by overnight delivery by an internationally recognized
overnight courier, in each case to the respective parties at the following
addresses (or at such other address for a party as will be specified in a
notice given in accordance with this Section 5.02):  

If to any of
the Stockholders, to: 

9130 W. Sunset Boulevard 

Los Angeles, California 90069 

Attn: Robert P. Bermingham, Esq.

Fax: (310) 789-1791 

Email: legal@yucaipco.com 

with a copy
to: 

Munger, Tolles & Olson LLP 

355 South Grand Avenue, 35th Floor 

Los Angeles, California  90071 

Attn: Sandra A. Seville-Jones, Esq. 

Fax: (213) 683-5126 

Email: sandra.seville-jones@mto.com 

If to Parent
or Merger Sub, to: 

The Great Atlantic & Pacific Tea Company, Inc. 

Two Paragon Drive 

Montvale, New Jersey 07645 

Attn:   Allan Richards 

Fax: (201) 571-4106 

Email: richarda@aptea.com 

with a copy
to: 

Cahill Gordon & Reindel LLP

80 Pine Street 

New York, New York  10005 

Attn: Kenneth W. Orce, Esq.

Fax: (212) 269-5420 

Email:   korce@cahill.com 

          SECTION
5.03. Reasonable Efforts; Further Actions. The parties hereto each will
use  commercially reasonable efforts to
take or cause to be taken all action and to do or cause to be done all things
necessary, proper or advisable under applicable Laws and regulations to
consummate and make effective the transactions contemplated by this Agreement
as promptly as practicable. 

          SECTION
5.04. Consents. The parties hereto will cooperate with each other in
filing any necessary applications, reports or other documents with, giving any
notices to, and seeking any con-

-20-

sents from, all regulatory
bodies and all Governmental Entities and all Third Parties as may be required
in connection with the consummation of the transactions contemplated by this
Agreement. 

          SECTION
5.05. Expenses. Each party to this Agreement shall pay its own expenses
incurred in connection with this Agreement. 

          SECTION
5.06. Termination of Management Services Agreement. Stockholder hereby
acknowledges and agrees to the termination effective as of the Effective Date
(as defined in the Merger Agreement) of the Management Services Agreement dated
as of March 23, 2005, between the Company and Yucaipa Advisors, LLC, pursuant
to Section 7.3 thereof in accordance with Section 7.2(g) of the Merger
Agreement. 

SECTION 5.07. Amendments;
Waivers 

          .(a)
No provision of this Agreement may be amended or waived unless such amendment
or waiver is in writing and signed, in the case of an amendment, by the parties
hereto or, in the case of a waiver, by the party against whom the waiver is to be
effective. 

          (b)
The failure of either party to this Agreement to assert any of its rights under
this Agreement or otherwise will not constitute a waiver of such rights nor
will any single or partial exercise by either party to this Agreement of any of
its rights under this Agreement preclude any other or further exercise of such
rights or any other rights under this Agreement. The rights and remedies herein
provided will be cumulative and not exclusive of any rights or remedies
provided by Law or otherwise. 

          SECTION
5.08. Interpretation. When a reference is made in this Agreement to an
Article, a Section, a subsection or a Schedule, such reference will be to an
Article, a Section, a subsection or a Schedule of this Agreement unless otherwise
indicated. The headings contained in this Agreement are for reference purposes
only and will not affect in any way the meaning or interpretation of this
Agreement. Whenever the words “include,” “includes” and “including” are used in
this Agreement, they will be deemed to be followed by the words “without
limitation.” The words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement will refer to this Agreement as a whole and
not to any particular provision of this Agreement. The words “date hereof” will
refer to the date of this Agreement. The term “or” is not exclusive. The word
“extent” in the phrase “to the extent” will mean the degree to which a subject
or other thing extends, and such phrase will not mean simply “if.” The
definitions contained in this Agreement are applicable to the singular as well
as the plural forms of such terms. Any agreement or instrument defined or
referred to herein or in any agreement or instrument that is referred to herein
means such agreement or instrument as from time to time amended, modified or
supplemented. References to a Person are also to its permitted successors and
assigns. 

          SECTION
5.09. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule or Law, or public
policy, all other conditions and provisions of this Agreement will nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially
adverse to either party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties will
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that the purpose of this Agreement is fulfilled to the fullest extent possible.

-21-

          SECTION
5.10. Counterparts. This Agreement may be executed in one or more
counterparts, all of which will be considered one and the same agreement, and
will become effective when one or more counterparts have been signed by each of
the parties and delivered to the other party. 

          SECTION
5.11. Entire Agreement; No Third-Party Beneficiaries. This Agreement
constitutes the entire agreement, and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the
subject matter hereof and is not intended to and does not confer upon any
Person other than the parties any rights or remedies. 

          SECTION
5.12. Governing Law. This Agreement will be governed by, and construed
in accordance with, the Laws of the State of Maryland, regardless of the Laws
that might otherwise govern under applicable principles of conflicts of laws
thereof. The parties declare that it is their intention that this Agreement
will be regarded as made under the laws of the State of Maryland and that the
laws of the State of Maryland will be applied in interpreting its provisions in
all cases where legal interpretation will be required, except to the extent the
Maryland Corporations and Associations Code is specifically required by such
code to govern the interpretation of this Agreement. 

          SECTION
5.13. Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement will be assigned, in whole or in
part, by either of the parties without the prior written consent of the other
party. Any purported assignment without such prior written consent will be
void. Subject to the preceding sentences, this Agreement will be binding upon,
inure to the benefit of, and be enforceable by, the parties and their
respective successors and assigns. 

          SECTION
5.14. Enforcement. The parties agree that irreparable damage would occur
in the event that any provision of this Agreement were not performed in
accordance with its specific terms or were otherwise breached. It is
accordingly agreed that the parties will be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement in the Supreme Court for the State
of New York sitting in New York County or the United States District Court of
the Southern District of New York, or in each case any appellate court thereof,
without the necessity of proving the inadequacy of money damages as a remedy,
this being in addition to any other remedy to which they are entitled at law or
in equity. In addition, each of the parties (a) irrevocably and unconditionally
consents to submit itself and its property to the non-exclusive jurisdiction of
the Supreme Court for the State of New York sitting in New York County and of
the United States District Court of the Southern District of New York, and in
each case any appellate court thereof, in the event any dispute arises out of
this Agreement, or for recognition or enforcement of any judgment; (b) agrees
that it will not attempt to deny or defeat such exclusive jurisdiction by
motion or other request for leave from any such court; (c) irrevocably and
unconditionally waives (and agrees not to plead or claim) any objection to the
laying of venue, or the defense of an inconvenient forum to the maintenance, of
any action, suit or proceeding arising out of or relating to this Agreement, or
for recognition or enforcement of any judgment; (d) agrees that it will not
bring any action arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, in any court other than the Supreme
Court of the State of New York sitting in New York County or the United States
District Court for the Southern District of New York, or in each case any
appellate court thereof; and (e) waives any right to trial by jury with respect
to any action related to or arising out of this Agreement, or for recognition
or enforcement of any judgment. Each of the parties hereto agrees that a final
judgment in any such action or proceeding will be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by Law. Each of the parties to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 5.02. Nothing
in this Agreement will affect the right of either party to this Agreement to
serve process in any other manner permitted by Law. 

-22-

          SECTION
5.15. Effectiveness. Except for this Section 5.15 and Sections 5.02,
5.05, 5.07, 5.08, 5.09, 5.10, 5.11, 5.12, 5.13 and 5.14, which shall become
effective as of the date hereof, this Agreement will become effective only at
the Effective Time. 

          SECTION
5.16. Termination; Survival. Notwithstanding anything to the contrary
contained in this Agreement, this Agreement will automatically terminate if the
Merger Agreement is terminated in accordance with its terms and shall
thereafter be null and void, except that Article I and this Article V will
survive any such termination indefinitely. Nothing in this Section 5.16 will be
deemed to release either party from any liability for any willful and material
breach of this Agreement or to impair the right of either party to compel
specific performance by the other party of its obligations under this
Agreement. 

          SECTION
5.17. No Joint and Several Liability. Notwithstanding anything to the
contrary in this Agreement, all representations, warranties, covenants,
liabilities and obligations under this Agreement are several, and not joint, to
each Stockholder, and no Stockholder will be liable for any breach, default,
liability or other obligation of the other Stockholders party to this
Agreement. 

          SECTION
5.18. No Liability of Partners. Notwithstanding anything that may be
expressed or implied in this Agreement, Parent acknowledges and agrees that (i)
notwithstanding that certain of the Stockholders below may be partnerships, no
recourse hereunder or under any documents or instruments delivered by any
Stockholders in connection herewith may be had against any officer, agent or
employee of any Stockholders or any partner, member or stockholder of any
Stockholder or any director, officer, employee, partner, affiliate, member,
manager, stockholder, assignee or representative of the foregoing (any such
person or entity, a “Representative”), whether by the enforcement of any
judgment or assessment or by any legal or equitable proceeding, or by virtue of
any statute, regulation or other applicable law, and (ii) no personal liability
whatsoever will attach to, be imposed on or otherwise be incurred by any
Representative under this Agreement or any documents or instruments delivered
in connection herewith or for any claim based on, in respect of or by reason of
such obligations or by their creation.  

-23-

          IN
WITNESS WHEREOF, the parties hereto have executed this Stockholder Agreement as
of the day and year first above written. 

	
 

	
 

	
 

	
 

	
 

	
THE GREAT
  ATLANTIC & PACIFIC TEA COMPANY, INC.

	
 

	
 

	
 

	
 

	
By:

	
/s/ Allan
  Richards

	
 

	
 

	

	
 

	
 

	
Name:

	
Allan
  Richards

	
 

	
 

	
Title:

	
Senior Vice
  President, Human Resources,

	
 

	
 

	
 

	
Labor
  Relations, Legal Services & Secretary

S-1

	
 

	
 

	
 

	
 

	
 

	
YUCAIPA
  CORPORATE INITIATIVES FUND I, LP

	
 

	
 

	
 

	
     
	
    By:
	
    Yucaipa Corporate Initiatives Fund I, LLC

	
     
	
    Its:
	
    General Partner

	
     
	 
	
     

	
 

	

	
            /s/ Robert
  P. Bermingham

	
 

	
 

	

	
 

	
 

	
Name: 

	
Robert P.
  Bermingham

	
 

	
 

	
Title: 

	
Vice
  President

	
 

	
 

	
 

	
 

	
YUCAIPA
  AMERICAN ALLIANCE FUND I, LP

	
 

	
 

	
 

	
     
	
    By:
	
    Yucaipa American Alliance Fund I, LLC

	
     
	
    Its:
	
    General Partner

	
     
	 
	
     

	
 

	

	
            /s/ Robert
  P. Bermingham

	
 

	
 

	

	
 

	
 

	
Name: 

	
Robert P.
  Bermingham

	
 

	
 

	
Title: 

	
Vice
  President

	
 

	
 

	
 

	
 

	
YUCAIPA
  AMERICAN ALLIANCE (PARALLEL) FUND I, LP

	
 

	
 

	
 

	
     
	
    By:
	
    Yucaipa American Alliance Fund I, LLC

	
     
	
    Its:
	
    General Partner

	
     
	 
	
     

	
 

	
 

	
            /s/ Robert
  P. Bermingham

	
 

	
 

	

	
 

	
 

	
Name: 

	
Robert P.
  Bermingham

	
 

	
 

	
Title: 

	
Vice President

S-2

SCHEDULE I

	
 

	
STOCKHOLDER
NAME 

	
 

	
 

	
Yucaipa
  Corporate Initiatives Fund I, LP

	
Yucaipa
  American Alliance Fund I, LP

	
Yucaipa
  American Alliance (Parallel) Fund I, LP

Sch I-1

SCHEDULE II

	
 

	
INVESTMENT
  BANKS

	
 

	
 

	
Banc of
  America Securities LLC

	
Citigroup
  Global Markets Inc.

	
Deutsche
  Bank Securities Inc.

	
Goldman
  Sachs & Co.

	
J.P. Morgan
  Securities Inc.

	
Lehman
  Brothers Inc.

	
Merrill
  Lynch, Pierce, Fenner & Smith Incorporated

	
UBS
  Securities LLC

Sch II-1

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