Document:

Exhibit 10.38

Exhibit 10.38

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

BANK OF AMERICA, N.A.

Agent for

The Lenders Referenced Herein

BANC OF AMERICA SECURITIES LLC

as Sole Lead Arranger and Bookrunner

and

HASTINGS ENTERTAINMENT, INC.

The Borrower

July 22, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 — Definitions
	 	 	  1	 
	 
	 	 	 	 
	ARTICLE 2 — The Revolving Credit:
	 	 	 27	 
	 
	 	 	 	 
	2-1. Establishment of Revolving Credit
	 	 	27	 
	2-2. Advances in Excess of Borrowing Base (OverLoans)
	 	 	28	 
	2-3. Risks of Value of Collateral
	 	 	28	 
	2-4. Commitment to Make Revolving Credit Loans and Support Letters of Credit
	 	 	28	 
	2-5. Revolving Credit Loan Requests
	 	 	28	 
	2-6. Making of Revolving Credit Loans
	 	 	30	 
	2-7. SwingLine Loans
	 	 	31	 
	2-8. The Loan Account
	 	 	31	 
	2-9. The Revolving Credit Notes
	 	 	32	 
	2-10. Payment of The Loan Account
	 	 	32	 
	2-11. Interest on Revolving Credit Loans
	 	 	33	 
	2-12. Revolving Credit Commitment Fee
	 	 	34	 
	2-13. Agent’s Fee
	 	 	34	 
	2-14. Unused Line Fee
	 	 	34	 
	2-15. Reserved
	 	 	34	 
	2-16. Concerning Fees
	 	 	35	 
	2-17. Agent’s and Revolving Credit Lenders’ Discretion
	 	 	35	 
	2-18. Procedures For Issuance of L/C’s
	 	 	36	 
	2-19. Fees For L/C’s
	 	 	37	 
	2-20. Concerning L/C’s
	 	 	38	 
	2-21. Changed Circumstances
	 	 	40	 
	2-22. Lenders’ Commitments
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 3 — Conditions Precedent:
	 	 	 42	 
	 
	 	 	 	 
	3-1. Corporate Due Diligence
	 	 	42	 
	3-2. Opinion
	 	 	42	 
	3-3. Additional Documents
	 	 	42	 
	3-4. Officers’ Certificates
	 	 	43	 
	3-5. Representations and Warranties
	 	 	43	 
	3-6. Minimum Day One Availability
	 	 	43	 
	3-7. All Fees and Expenses Paid
	 	 	43	 
	3-8. Borrower Not InDefault
	 	 	43	 
	3-9. No Adverse Change
	 	 	43	 
	3-10. Benefit of Conditions Precedent
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 4 — General Representations, Covenants and Warranties:
	 	 	 44	 
	 
	 	 	 	 
	4-1. Payment and Performance of Liabilities
	 	 	44	 
	4-2. Due Organization. Authorization. No Conflicts
	 	 	44	 
	4-3. Trade Names
	 	 	45	 
	4-4. Infrastructure
	 	 	45	 
	4-5. Locations
	 	 	46	 
	4-6. Title to Assets
	 	 	47	 
	4-7. Indebtedness
	 	 	48	 
	4-8. Insurance
	 	 	48	 
	4-9. Licenses
	 	 	49	 

 

ii

 

	 	 	 	 	 
	4-10. Leases
	 	 	49	 
	4-11. Requirements of Law
	 	 	49	 
	4-12. Labor Relations
	 	 	50	 
	4-13. Maintain Properties
	 	 	50	 
	4-14. Taxes
	 	 	51	 
	4-15. No Margin Stock
	 	 	52	 
	4-16. ERISA
	 	 	52	 
	4-17. Hazardous Materials
	 	 	53	 
	4-18. Litigation
	 	 	53	 
	4-19. Dividends, Investments, Corporate Action
	 	 	53	 
	4-20. Loans
	 	 	54	 
	4-21. Protection of Assets
	 	 	54	 
	4-22. Line of Business
	 	 	55	 
	4-23. Affiliate Transactions
	 	 	55	 
	4-24. Further Assurances
	 	 	55	 
	4-25. Adequacy of Disclosure
	 	 	56	 
	4-26. No Restrictions on Liabilities
	 	 	56	 
	4-27. Other Covenants
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 5 — Financial Reporting and Performance Covenants:
	 	 	 57	 
	 
	 	 	 	 
	5-1. Maintain Records
	 	 	57	 
	5-2. Access to Records
	 	 	57	 
	5-3. Prompt Notice to Agent
	 	 	58	 
	5-4. Borrowing Base Certificate
	 	 	59	 
	5-5. Monthly Reports
	 	 	59	 
	5-6. Quarterly Reports
	 	 	61	 
	5-7. Annual Reports
	 	 	61	 
	5-8. Officers’ Certificates
	 	 	62	 
	5-9. Inventories, Appraisals, and Audits
	 	 	62	 
	5-10. Additional Financial Information
	 	 	64	 
	5-11. Financial Performance Covenant
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 6 — Use of Collateral:
	 	 	 64	 
	 
	 	 	 	 
	6-1. Use of Inventory Collateral
	 	 	64	 
	6-2. Inventory Quality
	 	 	65	 
	6-3. Adjustments and Allowances
	 	 	65	 
	6-4. Validity of Accounts
	 	 	65	 
	6-5. Notification to Account Debtors
	 	 	65	 
	 
	 	 	 	 
	ARTICLE 7 — Cash Management, Payment of Liabilities:
	 	 	 65	 
	 
	 	 	 	 
	7-1. Depository Accounts
	 	 	65	 
	7-2. Credit Card Receipts
	 	 	66	 
	7-3. The Concentration, Blocked, and Operating Accounts
	 	 	66	 
	7-4. Proceeds and Collections
	 	 	67	 
	7-5. Payment of Liabilities
	 	 	67	 
	7-6. The Operating Account
	 	 	68	 

 

iii

 

	 	 	 	 	 
	ARTICLE 8 — Grant of Security Interest:
	 	 	 69	 
	 
	 	 	 	 
	8-1. Grant of Security Interest
	 	 	69	 
	8-2. Extent and Duration of Security Interest
	 	 	70	 
	 
	 	 	 	 
	ARTICLE 9 — Agent As Borrower’s Attorney-In-Fact:
	 	 	 70	 
	 
	 	 	 	 
	9-1. Appointment as Attorney-In-Fact
	 	 	70	 
	9-2. No Obligation to Act
	 	 	71	 
	 
	 	 	 	 
	ARTICLE 10 — Events of Default:
	 	 	 71	 
	 
	 	 	 	 
	10-1. Failure to Pay the Revolving Credit
	 	 	71	 
	10-2. Failure To Make Other Payments
	 	 	71	 
	10-3. Failure to Perform Covenant or Liability (No Grace Period)
	 	 	72	 
	10-4. Reporting Requirements
	 	 	72	 
	10-5. Failure to Perform Covenant or Liability (Grace Period)
	 	 	72	 
	10-6. Misrepresentation
	 	 	72	 
	10-7. Acceleration of Other Debt. Breach of Lease
	 	 	72	 
	10-8. Default Under Other Agreements
	 	 	72	 
	10-9. Uninsured Casualty Loss
	 	 	73	 
	10-10. Attachment. Judgment. Restraint of Business
	 	 	73	 
	10-11. Business Failure
	 	 	73	 
	10-12. Bankruptcy
	 	 	74	 
	10-13. Default by Guarantor
	 	 	74	 
	10-14. Indictment — Forfeiture
	 	 	74	 
	10-15. Termination of Guaranty
	 	 	74	 
	10-16. Challenge to Loan Documents
	 	 	74	 
	10-17. Change in Control
	 	 	74	 
	 
	 	 	 	 
	ARTICLE 11 — Rights and Remedies Upon Default:
	 	 	 75	 
	 
	 	 	 	 
	11-1. Acceleration
	 	 	75	 
	11-2. Rights of Enforcement
	 	 	75	 
	11-3. Sale of Collateral
	 	 	75	 
	11-4. Occupation of Business Location
	 	 	76	 
	11-5. Grant of Nonexclusive License
	 	 	77	 
	11-6. Assembly of Collateral
	 	 	77	 
	11-7. Rights and Remedies
	 	 	77	 
	 
	 	 	 	 
	ARTICLE 12 — Revolving Credit Fundings and Distributions:
	 	 	 77	 
	 
	 	 	 	 
	12-1. Revolving Credit Funding Procedures
	 	 	77	 
	12-2. SwingLine Loans
	 	 	78	 
	12-3. Agent’s Covering of Fundings
	 	 	78	 
	12-4. Ordinary Course Distributions
	 	 	80	 
	 
	 	 	 	 
	ARTICLE 13 — Acceleration and Liquidation:
	 	 	 81	 
	 
	 	 	 	 
	13-1. Acceleration Notices
	 	 	81	 
	13-2. Acceleration
	 	 	82	 
	13-3. Initiation of Liquidation
	 	 	82	 
	13-4. Actions At and Following Initiation of Liquidation
	 	 	82	 
	13-5. Agent’s Conduct of Liquidation
	 	 	82	 
	13-6. Distribution of Liquidation Proceeds
	 	 	83	 
	13-7. Relative Priorities To Proceeds of Liquidation
	 	 	83	 

 

iv

 

	 	 	 	 	 
	ARTICLE 14 -The Agent:
	 	 	 84	 
	 
	 	 	 	 
	14-1. Appointment of The Agent
	 	 	84	 
	14-2. Responsibilities of Agent
	 	 	84	 
	14-3. Concerning Distributions By the Agent
	 	 	85	 
	14-4. Dispute Resolution
	 	 	86	 
	14-5. Distributions of Notices and of Documents
	 	 	86	 
	14-6. Confidential Information
	 	 	87	 
	14-7. Reliance by Agent
	 	 	87	 
	14-8. Non-Reliance on Agent and Other Revolving Credit Lenders
	 	 	87	 
	14-9. Indemnification
	 	 	88	 
	14-10. Resignation of Agent
	 	 	88	 
	 
	 	 	 	 
	ARTICLE 15 — Action By Agents — Consents — Amendments — Waivers:
	 	 	 89	 
	 
	 	 	 	 
	15-1. Administration of Credit Facilities
	 	 	89	 
	15-2. Actions Requiring or On Direction of Majority Lenders
	 	 	90	 
	15-3. Actions Requiring or On Direction of SuperMajority Lenders
	 	 	90	 
	15-4. Actions Requiring Certain Consent
	 	 	90	 
	15-5. Actions Requiring or Directed By Unanimous Consent
	 	 	91	 
	15-6. Actions Requiring SwingLine Lender Consent
	 	 	92	 
	15-7. Actions Requiring Agent’s Consent
	 	 	92	 
	15-8. Miscellaneous Actions
	 	 	92	 
	15-9. Actions Requiring Borrower’s Consent
	 	 	93	 
	15-10. NonConsenting Revolving Credit Lender
	 	 	93	 
	 
	 	 	 	 
	ARTICLE 16 —  Assignments By Revolving Credit Lenders:
	 	 	 94	 
	 
	 	 	 	 
	16-1. Assignments and Assumptions
	 	 	94	 
	16-2. Assignment Procedures
	 	 	95	 
	16-3. Effect of Assignment
	 	 	96	 
	 
	 	 	 	 
	ARTICLE 17 — Notices:
	 	 	 96	 
	 
	 	 	 	 
	17-1. Notice Addresses
	 	 	96	 
	17-2. Notice Given
	 	 	97	 
	 
	 	 	 	 
	ARTICLE 18 — Term:
	 	 	 98	 
	 
	 	 	 	 
	18-1. Termination of Revolving Credit
	 	 	98	 
	18-2. Actions On Termination
	 	 	98	 

 

v

 

	 	 	 	 	 
	ARTICLE 19 — General:
	 	 	 99	 
	 
	 	 	 	 
	19-1. Protection of Collateral
	 	 	99	 
	19-2. Publicity
	 	 	99	 
	19-3. Successors and Assigns
	 	 	100	 
	19-4. Severability
	 	 	100	 
	19-5. Amendments
	 	 	100	 
	19-6. Application of Proceeds
	 	 	101	 
	19-7. Increased Costs
	 	 	101	 
	19-8. Costs and Expenses of the Agent
	 	 	102	 
	19-9. Copies and Facsimiles
	 	 	102	 
	19-10. Massachusetts Law
	 	 	103	 
	19-11. Consent to Jurisdiction
	 	 	103	 
	19-12. Indemnification
	 	 	103	 
	19-13. Rules of Construction
	 	 	104	 
	19-14. Intent
	 	 	105	 
	19-15. Participations
	 	 	106	 
	19-16. Right of Set-Off
	 	 	106	 
	19-17. Pledges To Federal Reserve Banks
	 	 	106	 
	19-18. Maximum Interest Rate
	 	 	106	 
	19-19. Waivers
	 	 	107	 
	19-20. ENTIRE AGREEMENT
	 	 	108	 
	19-21. Foreign Asset Control Regulations
	 	 	109	 
	19-22. USA PATRIOT Act Notice
	 	 	109	 
	19-23. No Advisory or Fiduciary Responsibility
	 	 	110	 
	19-24. Original Credit Agreement Amended and Restated
	 	 	110	 

 

vi

 

EXHIBITS

	 	 	 	 	 
	2-7(c)

	 	:
	 	SwingLine Note
	2-9

	 	:
	 	Revolving Credit Note
	2-22

	 	:
	 	Revolving Credit Lenders’ Commitments
	4-2

	 	:
	 	Subsidiaries
	4-3

	 	:
	 	Trade Names
	4-5

	 	:
	 	Locations, Leases, and Landlords
	4-6

	 	:
	 	Encumbrances
	4-7

	 	:
	 	Indebtedness
	4-8

	 	:
	 	Insurance Policies
	4-10

	 	:
	 	Capital Leases
	4-14

	 	:
	 	Taxes
	4-16(a)

	 	:
	 	ERISA
	4-18

	 	:
	 	Litigation
	5-4

	 	:
	 	Borrowing Base Certificate
	7-1

	 	:
	 	DDAs
	7-2

	 	:
	 	Credit Card Arrangements
	16-2

	 	:
	 	Assignment / Assumption

 

vii

 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

July 22, 2010

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is made between

Bank of America, N.A. (in such capacity, herein the “Agent”), a national banking
association with offices at 100 Federal Street, Boston, Massachusetts 02110, as agent for
the ratable benefit of the “Revolving Credit Lenders”, who are, at present, those financial
institutions identified on the signature pages of this Agreement and who in the future are
those Persons (if any) who become “Revolving Credit Lenders” in accordance with the
provisions of Section 2-22, below,

and

Hastings Entertainment, Inc. (the “Borrower”), a Texas corporation with its principal
executive offices at 3601 Plains Boulevard, Amarillo, Texas 79102

in consideration of the mutual covenants contained herein and benefits to be derived herefrom,

WITNESSETH:

WHEREAS, the Borrower has entered into a Loan and Security Agreement, dated as of August 29,
2000 (as amended and in effect, the “Original Credit Agreement”), among the Borrower, the
“Revolving Credit Lenders” as defined therein, and Bank of America, N.A., successor to Fleet Retail
Finance Inc., as Agent for the Revolving Credit Lenders; and

WHEREAS, in accordance with Article 15 of the Original Credit Agreement, the Borrower, the
Revolving Credit Lender, and the Agent desire to amend and restate the Original Credit Agreement as
provided herein.

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this
Agreement, and for good and valuable consideration, the receipt of which is hereby acknowledged,
the undersigned hereby agree that the Original Credit Agreement shall be amended and restated in
its entirety to read as follows:

ARTICLE 1 — Definitions

As used herein, the following terms have the following meanings or are defined in the section
of this Agreement so indicated:

“Acceleration”: The making of demand or declaration that any indebtedness, not otherwise due
and payable, is due and payable. Derivations of the word “Acceleration” (such as
“Accelerate”) are used with like meaning in this Agreement.

 

1

 

“Acceleration Notice”: Written notice as follows:

(a) From the Agent to the Revolving Credit Lenders, as provided in Section
13-1(a).

(b) From the SuperMajority Lenders to the Agent, as provided in Section
13-1(b).

“Account Debtor”: Has the meaning given that term in the UCC.

“Accounts” and “Accounts Receivable” include, without limitation, “accounts” as defined in
the UCC, and also all: accounts, accounts receivable, receivables, and rights to
payment (whether or not earned by performance) for: property that has been or is to be
sold, leased, licensed, assigned, or otherwise disposed of; services rendered or to be
rendered; a policy of insurance issued or to be issued; a secondary obligation incurred
or to be incurred; energy provided or to be provided; for the use or hire of a vessel;
arising out of the use of a credit or charge card or information contained on or used
with that card; winnings in a lottery or other game of chance; and also all Inventory
which gave rise thereto, and all rights associated with such Inventory, including the
right of stoppage in transit; all reclaimed, returned, rejected or repossessed
Inventory (if any) the sale of which gave rise to any Account.

“ACH”: Automated clearing house.

“Affiliate”: The following:

(a) With respect to any two Persons, a relationship in which (i) one holds,
directly or indirectly, not less than twenty five percent (25%) of the Voting Stock,
beneficial interests, partnership interests, or other equity interests of the other;
or (ii) one has, directly or indirectly, the right, under ordinary circumstances, to
vote for the election of a majority of the directors (or other body or Person who
has those powers customarily vested in a board of directors of a corporation); or
(iii) not less than twenty five percent (25%) of their respective ownership is
directly or indirectly held by the same third Person.

(b) Any Person which has its tax returns or financial statements consolidated
with the Borrower’s; or is a member of the same controlled group of corporations
(within the meaning of Section 1563(a)(1), (2) and (3) of the Internal Revenue Code
of 1986, as amended from time to time) of which the Borrower is a member.

“Agent”: Is referred to in the Preamble.

“Agent’s Cover”: Is defined in Section 12-3(c)(i).

“Agent’s Fee”: Is defined in Section 2-13.

 

2

 

“Agreement”: Is referred to in the Preamble.

“Agent’s Rights and Remedies”: Is defined in Section 11-7.

“Applicable Fee Rate”: For any period of calculation, (a) if the average daily sum of the
unpaid principal balance of the Loan Account and the undrawn Stated Amount of L/C’s
outstanding for the preceding three month period is greater than or equal to
$50,000,000, 0.30% per annum, or (ii) if the average daily sum of the unpaid principal
balance of the Loan Account and the undrawn Stated Amount of L/C’s outstanding for the
preceding three month period is less than $50,000,000, 0.375% per annum.

“Applicable Law”: As to any Person: (i) All statutes, rules, regulations, orders, or other
requirements having the force of law and (ii) all court orders and injunctions,
arbitrator’s decisions, and/or similar rulings, in each instance ((i) and (ii)) of or
by any federal, state, municipal, and other governmental authority, or court, tribunal,
panel, or other body which has or claims jurisdiction over such Person, or any property
of such Person.

“Appraised Inventory Liquidation Value”: The net recovery (stated as a percentage of the
Cost of Borrower’s Inventory), as reflected on the then most recent appraisal (which
shall be undertaken by an independent appraiser engaged by the Agent) of the Borrower’s
Inventory, as recoverable on the Borrower’s Inventory in the event of an in-store
liquidation of that Inventory.

“Assignee Revolving Credit Lender”: Is defined in Section 16-1(a).

“Assigning Revolving Credit Lender”: Is defined in Section 16-1(a).

“Assignment and Acceptance”:Is defined in Section 16-2.

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

(a) is the result of

	 	(i)	 	The Revolving Credit Ceiling

	 
	 	 	 	Minus

	 
	 	(ii)	 	The aggregate unpaid balance of the Loan Account

	 
	 	 	 	Minus

	 
	 	(iii)	 	The aggregate undrawn Stated Amount of all then outstanding L/C’s.

(b) is the result of

	 	(i)	 	The Borrowing Base

	 
	 	 	 	Minus

	 
	 	(ii)	 	The aggregate unpaid balance of the Loan Account

 

3

 

	 	 	 	Minus

	 
	 	(iv)	 	The aggregate undrawn Stated Amount of all then outstanding L/C’s.

“Availability Reserves”: Such reserves as the Agent from time to time reasonably determines
in the Agent’s reasonable discretion as being appropriate to avoid the Borrower’s
breach of any financial covenant included herein or to reflect the impediments to the
Agent’s ability to realize upon the Collateral.

“Bank of America” means Bank of America, N.A. and its successors.

“Banker’s Acceptance” means a time draft or bill of exchange or other deferred payment
obligation relating to a documentary L/C which has been accepted by the Issuer.

“Bank Products” means any services or facilities provided to the Borrower by the
Agent, any Lender, or any of their respective Affiliates, including, without
limitation, on account of Swap Contracts, but excluding Cash Management Services.

“Bankruptcy Code”: Title 11, U.S.C., as amended from time to time.

“Base”: For any day a fluctuating rate per annum equal to the highest of (a) the rate of
interest in effect for such day as publicly announced from time to time by Bank of
America as its “prime rate”; (b) the Federal Funds Rate for such day, plus 0.50%; and
(c) the Libor Offer Rate for a 30 day interest period as determined on such day, plus
1.0%. The “prime rate” is a rate set by Bank of America based upon various factors
including Bank of America’s costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in Bank of America’ s prime
rate, the Federal Funds Rate or the Libor Offer Rate, respectively, shall take effect
at the opening of business on the day specified in the public announcement of such
change.

“Base Margin”: Initially, the rate set forth in Level I below. Commencing
November 1, 2010, and on the first day of each Fiscal quarter thereafter, the Base
Margin shall be the following percentages based upon the following criteria:

	 	 	 	 	 	 	 
	Level	 	Average Availability	 	Base Margin	 
	I
	 	Greater than $55,000,000	 	 	1.00	%
	II
	 	Greater than $40,000,000 and less than or equal to $55,000,000	 	 	1.25	%
	III
	 	Greater than $25,000,000 and less than or equal to $40,000,000	 	 	1.50	%
	IV
	 	Less than or equal to $25,000,000	 	 	1.75	%

 

4

 

On the first day of each Fiscal quarter, the Base Margin shall be adjusted based
upon the Borrower’s aggregate daily average Availability for the immediately
preceding Fiscal quarter divided by the total number of days in such immediately
preceding Fiscal quarter. provided, however, upon the occurrence of an Event of
Default, the Base Margin shall be immediately increased to the percentage set forth
in Level IV above (even if the average Availability requirements for another Level
have been met) and interest shall be determined in the manner set forth in Section
2-11(f).

“Base Margin Loan”: Any Revolving Credit Loan which bears interest at the Base
Margin Rate.

“Base Margin Rate”: That rate per annum which is the aggregate of Base plus the Base
Margin.

“Blocked Account”: Is defined in Section 7-3(a)(ii).

“Blocked Account Agreement”: An Agreement, in form reasonably satisfactory to the Agent,
which Agreement recognizes the Agent’s Collateral Interest in the contents of the DDA
which is the subject of such Agreement and agrees that such contents shall be
transferred only to the Concentration Account or as otherwise instructed by the Agent.

“Borrower”: Is defined in the Preamble.

“Borrowing Base”: At any time of calculation, the sum of (a) 85% of Eligible Credit Card
Receivables plus (b) (i) 85% multiplied by (ii) the Appraised Inventory
Liquidation Value multiplied by (iii) the Cost of the Borrower’s Eligible
Inventory (net of Inventory Reserves), less (c) Availability Reserves.

“Borrowing Base Certificate”: Is defined in Section 5-4.

“Business Day”: Any day other than (a) a Saturday or Sunday; (b) any day on which banks in
Boston, Massachusetts or in Amarillo, Texas generally are not open to the general
public for the purpose of conducting commercial banking business; or (c) a day on which
the principal office of the Agent is not open to the general public to conduct
business.

“Business Plan”: The Borrower’s business plan previously delivered to the Agent for Fiscal
year 2010, and any revision, amendment, or update of such business plan.

“Capital Expenditures”: The expenditure of funds or the incurrence of liabilities which is
required to be capitalized in accordance with GAAP.

“Capital Lease”: Any lease which is required to be capitalized in accordance with GAAP.

 

5

 

“Cash Dominion Event”: Either (i) the occurrence and continuance of any Event of
Default, or (ii) the failure of the Borrowers to maintain Availability equal to at
least twenty percent (20%) of the Borrowing Base at any time. For purposes of this
Agreement, the occurrence of a Cash Dominion Event shall be deemed continuing (i) so
long as such Event of Default has not been waived, and/or (ii) if the Cash Dominion
Event arises as a result of the Borrowers’ failure to achieve Availability as required
hereunder, until Availability has exceeded twenty percent (20%) of the Borrowing Base
for sixty (60) consecutive calendar days, in which case a Cash Dominion Event shall no
longer be deemed to be continuing for purposes of this Agreement; provided that a Cash
Dominion Event shall be deemed continuing (even if an Event of Default is no longer
continuing and/or Availability exceeds the required amount for sixty (60) consecutive
calendar days) at all times for the remainder of such Fiscal year after a Cash Dominion
Event has already occurred and been discontinued once in the same Fiscal Year. The
termination of a Cash Dominion Event as provided herein shall in no way limit, waive or
delay the occurrence of a subsequent Cash Dominion Event in the event that the
conditions set forth in this definition again arise.

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

“Change in Control”: The occurrence of any of the following:

(a) The acquisition, by any group of persons (within the meaning of the
Securities Exchange Act of 1934, as amended) or by any Person, other than the
Marmaduke Family or any member thereof, of beneficial ownership (within the meaning
of Rule 13d-3 of the Securities and Exchange Commission) of (i) 25% or more of the
issued and outstanding capital stock of the Borrower having the right, under
ordinary circumstances, to vote for the election of directors of the Borrower, and
(ii) issued and outstanding capital stock of the Borrower having the right, under
ordinary circumstances, to vote for the election of directors of the Borrower in an
amount greater than the Marmaduke Family.

(b) More than half of the persons who were directors of the Borrower on the
first day of any period consisting of twelve (12) consecutive calendar months (the
first of which twelve (12) month periods commencing with the first day of the month
during which this Agreement was executed), cease, for any reason other than death,
disability, or retirement, to be directors of the Borrower.

 

6

 

“Chattel Paper”: Has the meaning given that term in the UCC.

“Collateral”: Is defined in Section 8-1.

“Collateral Interest”: Any interest in property to secure an obligation, including, without
limitation, a security interest, mortgage, and deed of trust.

“Commercial Tort Claim”: Has the meaning given that term in the UCC.

“Concentration Account”: Is defined in Section 7-3(a)(i).

“Consent”: Actual consent given by the Revolving Credit Lender from whom such consent is
sought; or the passage of seven (7) Business Days from receipt of written notice to a
Revolving Credit Lender from the Agent of a proposed course of action to be followed by
the Agent without such Revolving Credit Lender’s giving the Agent written notice of
that Revolving Credit Lender’s objection to such course of action, provided that the
Agent may rely on such passage of time as consent by a Revolving Credit Lender only if
such written notice states that consent will be deemed effective if no objection is
received within such time period.

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

“Consolidated EBITDA”: At any date of determination, an amount equal to Consolidated Net
Income of the Borrower and its Subsidiaries on a Consolidated basis for the most
recently completed twelve Fiscal months, plus (a) the following to the extent deducted
in calculating such Consolidated Net Income: (i) Consolidated Interest Charges, (ii)
the provision for federal, state, local and foreign income Taxes, (iii) depreciation
and amortization expense, (iv) stock-based compensation expenses and store asset
impairment expenses which do not represent a cash item in such period or any future
period, and (v) other non-recurring expenses and extraordinary losses reducing such
Consolidated Net Income which do not represent a cash item in such period or any future
period, minus (b) the following to the extent included in calculating such Consolidated
Net Income: (i) all extraordinary gains increasing such Consolidated Net Income which
do not represent a cash item in such period or any future period, and (ii) all non-cash
items increasing Consolidated Net Income, all as determined on a Consolidated basis
in accordance with GAAP.

 

7

 

“Consolidated Fixed Charge Coverage Ratio”: At any date of determination, the ratio of (a)
(i) Consolidated EBITDA for such period minus (ii) Capital Expenditures made during
such period, minus (iii) the aggregate amount of federal, state, local and foreign
income taxes paid in cash during such period to (b) the sum of (1) Debt Service
Charges, plus (2) any ownership, redemption, retirement, purchase, repurchase, or
acquisition of any of the Borrower’s capital stock made during such period, in each
case, of or by Borrower and its Subsidiaries for the most recently completed twelve
Fiscal months, all as determined on a Consolidated basis in accordance with GAAP.

“Consolidated Interest Charges” At any time of calculation, for the most recently completed
twelve (12) Fiscal months, the sum of (a) all interest, premium payments, debt
discount, fees, charges and related expenses in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase price of
assets, in each case to the extent treated as interest in accordance with GAAP,
including, without limitation, all commissions, discounts and other fees and charges
owed with respect to letters of credit and bankers’ acceptance financing and net costs
under Swap Contracts, and (b) the portion of rent expense with respect to such period
under Capital Leases that is treated as interest in accordance with GAAP, in each case
of or by the Borrower and its Subsidiaries, all as determined on a Consolidated basis
in accordance with GAAP.

“Consolidated Net Income” As of any date of determination, the net income of Borrower and
its Subsidiaries for the most recently completed twelve (12) Fiscal months, all as
determined on a Consolidated basis in accordance with GAAP.

“Contract Rate”: Is defined in Section 19-18(b).

“Cost”: Cost of purchases, based upon the Borrower’s accounting practices, known to the
Agent, which practices are in effect on the date on which this Agreement was executed
as such calculated cost is determined from: invoices received by the Borrower; the
Borrower’s purchase journal; or the Borrower’s By-Department monthly report generated
by the Borrower’s inventory control system. (“Cost” does not include inventory
capitalization costs or other non-purchase price charges (such as freight) used in the
Borrower’s calculation of cost of goods sold).

 

8

 

“Costs of Collection”: Includes, without limitation, all attorneys’ reasonable fees and
reasonable out-of-pocket expenses incurred by the Agent’s attorneys, and all reasonable
out-of-pocket costs incurred by the Agent in the administration of the Liabilities
and/or the Loan
Documents, including, without limitation, reasonable costs and expenses associated
with travel on behalf of the Agent, where such costs and expenses are directly or
indirectly related to or in respect of the Agent’s: administration and management
of the Liabilities; negotiation, documentation, and amendment of any Loan Document;
or efforts to preserve, protect, collect, or enforce the Collateral, the
Liabilities, and/or the Agent’s Rights and Remedies and/or any of the rights and
remedies of the Agent against or in respect of any guarantor or other person liable
in respect of the Liabilities (whether or not suit is instituted in connection with
such efforts). “Costs of Collection shall also include the reasonable fees and
expenses of Lenders’ Special Counsel. The Costs of Collection are Liabilities, and
at the Agent’s option may bear interest at the then effective Base Margin Rate.

“Credit Card Receivables” Each Account, together with all income, payments and proceeds
thereof, owed by a major credit or debit card issuer (including, but not limited to,
Visa, MasterCard, American Express, and Discover and such other issuers approved by the
Agent) to the Borrower resulting from charges by a customer of the Borrower on credit
or debit cards issued by such issuer in connection with the sale of goods by the
Borrower, or services performed by the Borrower, in each case in the ordinary course of
its business.

“DDA”: Any checking or other demand daily depository account maintained by the Borrower.

“Debt Service Charges”: At any time of calculation, for the most recently completed
twelve (12) Fiscal months, the sum of (a) Consolidated Interest Charges paid or
required to be paid for such period, plus (b) principal payments made or required to be
made on account of Indebtedness (excluding the Liabilities but including, without
limitation, obligations with respect to Capital Leases) for such period, in each case
determined on a Consolidated basis in accordance with GAAP.

“Delinquent Revolving Credit Lender”: Is defined in Section 12-3(c).

“Deposit Account”: Has the meaning given that term in the UCC.

“Documents”: Has the meaning given that term in the UCC.

“Documents of Title”: Has the meaning given that term in the UCC.

“Eligible Assignee”: A bank, insurance company, or company engaged in the business of making
commercial loans having a combined capital and surplus in excess of $300 Million or any
Affiliate of any Revolving Credit Lender, or any Person to whom a Revolving Credit
Lender assigns its rights and obligations under this Agreement as part of a programmed
assignment and transfer of such Revolving Credit Lender’s rights in
and to a material portion of such Revolving Credit Lender’s portfolio of asset based
credit facilities, all of which assignees must be acceptable to the Borrower
pursuant to Section 2-22(e).

 

9

 

“Eligible Credit Card Receivables” means at the time of any determination thereof, each
Credit Card Receivable that satisfies the following criteria at the time of creation
and continues to meet the same at the time of such determination: such Credit Card
Receivable (i) has been earned by performance and represents the bona fide amounts due
to the Borrower from a credit card payment processor and/or credit card issuer, and in
each case originated in the ordinary course of business of the Borrower, and (ii) in
each case is acceptable to the Agent in its discretion, and is not ineligible for
inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a)
through (i) below. Without limiting the foregoing, to qualify as an Eligible Credit
Card Receivable, an Account shall indicate no Person other than the Borrower as payee
or remittance party. In determining the amount to be so included, the face amount of
an Account shall be reduced by, without duplication, to the extent not reflected in
such face amount, (i) the amount of all accrued and actual discounts, claims, credits
or credits pending, promotional program allowances, price adjustments, finance charges
or other allowances (including any amount that the Borrower may be obligated to rebate
to a customer, a credit card payment processor, or credit card issuer pursuant to the
terms of any agreement or understanding (written or oral)) and (ii) the aggregate
amount of all cash received in respect of such Account but not yet applied by the
Borrower to reduce the amount of such Credit Card Receivable. Except as otherwise
agreed by the Administrative Agent, any Credit Card Receivable included within any of
the following categories shall not constitute an Eligible Credit Card Receivable:

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

	 
	 	(b)	 	Credit Card Receivables (i) that are not subject to a perfected first-priority
security interest in favor of the Agent, or (ii) with respect to which the Borrower
does not have good, valid and marketable title thereto, free and clear of any
Encumbrance (other than Encumbrances granted to the Agent);

	 
	 	(c)	 	Credit Card Receivables which are disputed, are with recourse, or with respect
to which a claim, counterclaim, offset or chargeback has been asserted (to the extent
of such claim, counterclaim, offset or chargeback);

 

10

 

	 	(d)	 	Credit Card Receivables as to which the processor has the right under certain
circumstances to require the Borrower to repurchase the Accounts from such credit card
processor;

	 
	 	(e)	 	Credit Card Receivables due from an issuer or payment processor of the
applicable credit card which is the subject of any bankruptcy or insolvency
proceedings;

	 
	 	(f)	 	Credit Card Receivables which are not a valid, legally enforceable obligation
of the applicable issuer with respect thereto;

	 
	 	(g)	 	Credit Card Receivables which do not conform to all representations, warranties
or other provisions in the Loan Documents relating to Credit Card Receivables;

	 
	 	(h)	 	Credit Card Receivables which are evidenced by “chattel paper” or an
“instrument” of any kind unless such “chattel paper” or “instrument” is in the
possession of the Agent, and to the extent necessary or appropriate, endorsed to the
Agent; or

	 
	 	(i)	 	Credit Card Receivables which the Agent determines in its discretion to be
uncertain of collection or which do not meet such other reasonable eligibility criteria
for Credit Card Receivables as the Agent may determine.

“Eligible Inventory”: will be calculated in a manner consistent with current tracking
practices, based on the Borrower’s By-Department monthly report generated by the
Borrower’s inventory control system, which report reflects the functional equivalent of
a stock ledger inventory at cost, and shall consist of the following: Such of the
Borrower’s Inventory as to which the Agent has a perfected security interest which is
prior and superior to all security interests, claims, and all Encumbrances other than
Permitted Encumbrances. (“Eligible Inventory” includes traditional rental videos and
DVD’s and similar items (net of accumulated depreciation) but does not include, nor, to
the extent such items may have been included at any time in the Agent’s discretion, is
the Agent under any obligation to continue to include: any revenue sharing video tapes
or DVD’s or similar items; non-merchandise inventory (such as labels, bags, and
packaging materials); damaged goods; packaways; consigned inventory; inventory
in-transit to the Borrower from a foreign location prior to such inventory arriving at
a domestic distribution center of the Borrower; and other similar categories of Goods).

“Employee Benefit Plan”: As defined in ERISA.

 

11

 

“Encumbrance”: Each of the following:

(a) A Collateral Interest or agreement to create or grant a Collateral
Interest; the interest of a lessor under a Capital Lease; conditional sale or other
title retention agreement; sale of accounts receivable or chattel paper; or other
arrangement pursuant to
which any Person is entitled to any preference or priority with respect to the
property or assets of another Person or the income or profits of such other Person;
each of the foregoing whether consensual or non-consensual and whether arising by
way of agreement, operation of law, legal process or otherwise.

(b) The filing of any financing statement under the UCC or comparable law of
any jurisdiction.

“End Date”: The date upon which both (a) all Liabilities have been paid in full and
(b) all obligations of any Revolving Credit Lender to make loans and advances and to
provide other financial accommodations to the Borrower hereunder shall have been
irrevocably terminated.

“Environmental Laws”: All of the following:

(a) Applicable Law which regulates or relates to, or imposes any standard of
conduct or liability on account of or in respect to environmental protection
matters, including, without limitation, Hazardous Materials, as are now or hereafter
in effect.

(b) The common law relating to damage to Persons or property from Hazardous
Materials.

“Equipment”: Includes, without limitation, “equipment” as defined in the UCC, and also all
furniture, store fixtures, rolling stock, machinery, office equipment, plant equipment,
tools, dies, molds, and other goods, property, and assets which are used and/or were
purchased for use in the operation or furtherance of the Borrower’s business, and any
and all accessions or additions thereto, and substitutions therefor, but does not
include motor vehicles.

“ERISA”: The Employee Retirement Income Security Act of 1974, as amended.

“ERISA Affiliate”: Any Person which is under common control with the Borrower within the
meaning of Section 4001 of ERISA or is part of a group which includes the Borrower and
which would be treated as a single employer under Section 414 of the Internal Revenue
Code of 1986, as amended.

“Events of Default”: Is defined in Article 10. An “Event of Default” shall be deemed to
have occurred and to be continuing unless and until that Event of Default has been duly
waived by the requisite Lenders or by the Agent as applicable (following which, and in
the event of such waiver, that Event of Default shall be deemed not to have occurred).

“Exempt Assets”: Revenue sharing videos, motor vehicles, and Leasehold Interests.

 

12

 

“Exempt DDA”: Depository Accounts maintained by the Borrower, the only contents of which may
be transfers from the Operating Account or the Payroll Account and actually used solely
(i) for petty cash purposes; (ii) for payroll; or (iii) employee benefits.

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

“Fee Letter”: That letter dated July 22, 2010 and styled “Revolving Credit Facility
Fee Letter” between the Borrower and the Agent, as such letter may from time to time be
amended.

“Fiscal”: When followed by “month”, “quarter” or “year”, the relevant fiscal period based on
the Borrower’s fiscal year and Borrower’s practices. (e.g. the Borrower’s fiscal year
ends in January 2010, reference to that year would be to the Borrower’s “Fiscal 2009”).

“Fixtures”: Has the meaning given that term in the UCC.

“GAAP”: Generally accepted accounting principles in the United States which are consistent
with those promulgated or adopted by the Financial Accounting Standards Board and its
predecessors (or successors) in effect and applicable to that accounting period in
respect of which reference to GAAP is being made, provided, however, in the event of a
Material Accounting Change, then unless otherwise specifically agreed to by the Agent,
(a) the Borrower’s compliance with the financial performance covenants imposed pursuant
to Section 5-11 shall be determined as if such Material Accounting Change had not taken
place and (b) the Borrower shall include, with its monthly, quarterly, and annual
financial statements a schedule, certified by the Borrower’s chief financial officer,
on which the effect of such Material Accounting Change on that statement shall be
described.

 

13

 

“General Intangibles”: Includes, without limitation, “general intangibles” as defined in the
UCC; and also all: rights to payment for credit extended; deposits; amounts due to the
Borrower; credit memoranda in favor of the Borrower; warranty claims; tax refunds and
abatements; insurance refunds and premium rebates; all means and vehicles of
investment or hedging, including, without limitation, options, warrants, and futures
contracts; records; customer lists; telephone numbers; goodwill; causes of action;
judgments; payments under any settlement or other agreement; literary rights; rights
to performance; royalties; license and/or franchise fees; rights of admission;
licenses; franchises; license agreements, including all rights of the Borrower to
enforce same; permits, certificates of convenience and necessity, and similar rights
granted by any governmental authority; patents, patent applications, patents
pending, and other intellectual property; internet addresses and domain names;
developmental ideas and concepts; proprietary processes; blueprints, drawings,
designs, diagrams, plans, reports, and charts; catalogs; manuals; technical data;
computer software programs (including the source and object codes therefor),
computer records, computer software, rights of access to computer record service
bureaus, service bureau computer contracts, and computer data; tapes, disks,
semi-conductors chips and printouts; trade secrets rights, copyrights, mask work
rights and interests, and derivative works and interests; user, technical reference,
and other manuals and materials; trade names, trademarks, service marks, and all
goodwill relating thereto; applications for registration of the foregoing; and all
other general intangible property of the Borrower in the nature of intellectual
property; proposals; cost estimates, and reproductions on paper, or otherwise, of
any and all concepts or ideas, and any matter related to, or connected with, the
design, development, manufacture, sale, marketing, leasing, or use of any or all
property produced, sold, or leased, or credit extended or services performed, by the
Borrower, whether intended for an individual customer or the general business of the
Borrower, or used or useful in connection with research by the Borrower.

“Goods”: Has the meaning given that term in the UCC, and also includes computer programs
embedded in goods and any supporting information provided in connection with a
transaction relating to the program if (i) the program is associated with the goods in
such manner that it customarily is considered part of the goods or (ii) by becoming the
owner of the goods, a Person acquires a right to use the program in connection with the
goods.

“Gross Margin”: With respect to the subject accounting period for which being calculated,
the decimal equivalent of the following (determined in accordance with the cost method
of accounting):

Sales (Minus) Cost of Goods Sold

Sales

 

14

 

“Hazardous Materials”: Any substance which is defined or regulated as a hazardous material
or oil in or under any Environmental Law.

“Increased Reporting Event”: Either (i) the occurrence and continuance of any Event of
Default, or (ii) the failure of the Borrower to maintain Availability at least equal to
twenty percent (20%) of the Borrowing Base. For purposes of this Agreement, the
occurrence of an Increased Reporting Event shall be deemed continuing (i) so long as
such Event of Default has not been waived, and/or (ii) if the Increased Reporting Event
arises as a result of the Borrowers ’ failure to achieve Availability as required
hereunder, until Availability has exceeded twenty percent (20%) of the Borrowing Base
for sixty (60) consecutive calendar days, in which case an Increased Reporting Event
shall no longer be deemed to be continuing for purposes of this Agreement. The
termination of an Increased Reporting Event as provided herein shall in no way limit,
waive or delay the occurrence of a subsequent Increased Reporting Event in the event
that the conditions set forth in this definition again arise.

“Indebtedness”: All indebtedness and obligations of or assumed by any Person on account of
or in respect to any of the following:

(a) In respect of money borrowed (including any indebtedness which is
non-recourse to the credit of such Person but which is secured by an Encumbrance on
any asset of such Person) whether or not evidenced by a promissory note, bond,
debenture or other written obligation to pay money.

(b) In connection with any letter of credit or acceptance transaction
(including, without limitation, the face amount of all letters of credit and
acceptances issued for the account of such Person or reimbursement on account of
which such Person would be obligated).

(c) In connection with the sale or discount of accounts receivable or chattel
paper of such Person.

(d) As lessee under Capital Leases.

(e) In connection with any sale and leaseback transaction.

“Indebtedness” also includes:

(x) Indebtedness of others secured by an Encumbrance on any
asset of such Person, whether or not such Indebtedness is assumed by
such Person.

 

15

 

(y) Any guaranty, endorsement, suretyship or other undertaking
pursuant to which that Person may be liable on account of any
obligation of any third party.

(z) The Indebtedness of a partnership or joint venture for which
such Person is liable as a general partner or joint venturer.

“InDefault”: Any occurrence, circumstance, or state of facts with respect to the Borrower
which (a) is an Event of Default; or (b) would become an Event of Default if any
requisite notice were given and/or any requisite period of time were to run and such
occurrence, circumstance, or state of facts were not absolutely cured within any
applicable grace period.

“Indemnified Person”: Is defined in Section 19-12.

“Instruments”:Has the meaning given that term in the UCC.

“Interest Payment Date”: With reference to:

Each Libor Loan: The last day of the Interest Period relating thereto (and on
the last day of month three for any such Libor Loan which has a six month Interest
Period); the Termination Date; and the End Date.

Each Base Margin Loan: The first Business Day of each month; the Termination
Date; and the End Date.

“Interest Period”: The following:

(a) With respect to each Libor Loan: Subject to Subsection (c) below, the
period commencing on the date of the making or continuation of, or conversion to,
the subject Libor Loan and ending one, two, three, or six months thereafter, as the
Borrower may elect by notice (pursuant to Section 2-5) to the Agent.

(b) With respect to each Base Margin Loan: Subject to Subsection (c) below, the
period commencing on the date of the making or continuation of or conversion to such
Base Margin Loan and ending on that date (i) as of which the subject Base Margin
Loan is converted to a Libor Loan, as the Borrower may elect by notice (pursuant to
Section 2-5) to the Agent, or (ii) on which the subject Base Margin Loan is paid by
the Borrower.

(c) The setting of Interest Periods is in all instances subject to the
following:

(i) Any Interest Period for a Base Margin Loan which would otherwise
end on a day which is not a Business Day shall be extended to the next
succeeding Business Day.

 

16

 

(ii) Any Interest Period for a Libor Loan which would otherwise end on
a day that is not a Business Day shall be extended to the next succeeding
Business Day, unless that succeeding Business Day is in the next calendar
month, in which event such Interest Period shall end on the last Business
Day of the month during which the Interest Period ends.

(iii) Subject to Subsection (iv) below, any Interest Period applicable
to a Libor Loan, which Interest Period begins on a day for which there is no
numerically corresponding day in the calendar month during which such
Interest Period ends, shall end on the last Business Day of the month during
which that Interest Period ends.

(iv) Any Interest Period which would otherwise end after the
Termination Date shall end on the Termination Date.

(v) The number of Interest Periods in effect at any one time is subject
to Section 2-11(d) hereof.

“Inventory”: Includes, without limitation, “inventory” as defined in the UCC and also all:
(a) Goods which are leased by a Person as lessor; are held by a Person for sale or
lease or to be furnished under a contract of service; are furnished by a Person under a
contract of service; or consist of raw materials, work in process, or materials used or
consumed in a business; (b) Goods of said description in transit; (c) Goods of said
description which all returned, repossessed and rejected; (d) packaging, advertising,
and shipping materials related to any of the foregoing; (e) all names, marks, and
General Intangibles affixed or to be affixed or associated thereto; and (f) Documents
and Documents of Title which represent any of the foregoing.

“Inventory Reserves”: Such Reserves as reasonably may be established from time to time by
the Agent in the Agent’s reasonable discretion with respect to the determination of the
saleability, at retail, of the Eligible Inventory or which reflect such other factors
as affect the market value of the Eligible Inventory.

“Investment Property”: Has the meaning given that term in the UCC.

 

17

 

“Issuance Conditions”: The satisfaction of each of the following conditions:

(a) no order, judgment or decree of any governmental authority or arbitrator shall
by its terms purport to enjoin or restrain the Issuer from issuing such L/C, or any
Applicable Law applicable to the Issuer or any request or directive (whether or not
having the force of law) from any governmental authority with jurisdiction over the
Issuer shall not prohibit, or request that the Issuer refrain from, the issuance of
letters of credit generally
or such L/C in particular or shall not impose upon the Issuer with respect to such
L/C any restriction, reserve or capital requirement (for which the Issuer is not
otherwise compensated hereunder) not in effect on the date hereof, or shall not
impose upon the Issuer any unreimbursed loss, cost or expense which was not
applicable on the date hereof and which the Issuer in good faith deems material to
it;

(b) the issuance of such L/C would not violate one or more policies of the Issuer
applicable to letters of credit generally;

(c) such L/C is not to be denominated in a currency other than Dollars; and

(d) such L/C does not contain any provisions for automatic reinstatement of the
Stated Amount after any drawing thereunder.

“Issuer”: The issuer of any L/C.

“L/C”: Any letter of credit, the issuance of which is procured by the Agent for the account
of the Borrower and any Banker’s Acceptance made on account of such letter of credit.

“Lease”: Any lease or other agreement, no matter how styled or structured, pursuant to which
the Borrower is entitled to the use or occupancy of any space.

“Leasehold Interest”: Any interest of the Borrower as lessee under any Lease.

“Lenders’ Special Counsel”: A single counsel, selected by the Majority Lenders following the
occurrence of an Event of Default, to represent the interests of the Revolving Credit
Lenders in connection with the enforcement, attempted enforcement, or preservation of
any rights and remedies under this, or any other Loan Document, as well as in
connection with any “workout”, forbearance, or restructuring of the credit facility
contemplated hereby.

“Letter-of-Credit Right”: Has the meaning given that term in UCC and also refers to any
right to payment or performance under an L/C, whether or not the beneficiary has
demanded or is at the time entitled to demand payment or performance.

“Liabilities”: Includes, without limitation, the following:

(a) All and each of the following, whether now existing or hereafter arising under this
Agreement or under any of the other Loan Documents:

(i) Any and all direct and indirect liabilities, debts, and obligations of the
Borrower to the Agent or any Revolving Credit Lender, each of every kind, nature,
and description.

 

18

 

(ii) Each obligation to repay any loan, advance, indebtedness, note,
obligation, overdraft, or amount now or hereafter owing by the Borrower to the Agent
or any Revolving Credit Lender (including all future advances whether or not made
pursuant to a commitment by the Agent or any Revolving Credit Lender), whether
or not any of such are liquidated, unliquidated, primary, secondary, secured,
unsecured, direct, indirect, absolute, contingent, or of any other type, nature, or
description, or by reason of any cause of action which the Agent or any Revolving
Credit Lender may hold against the Borrower.

(iii) All notes and other obligations of the Borrower now or hereafter assigned
to or held by the Agent or any Revolving Credit Lender, each of every kind, nature,
and description, including, without limitation, on account of Bank Products and Cash
Management Services.

(iv) All interest, fees, and charges and other amounts which may be charged by
the Agent or any Revolving Credit Lender to the Borrower and which may be due from
the Borrower to the Agent or any Revolving Credit Lender from time to time.

(v) All costs and expenses incurred or paid by the Agent or any Revolving
Credit Lender in respect of any Loan Document between the Borrower and the Agent or
any Revolving Credit Lender or Loan Document furnished by the Borrower to the Agent
or any Revolving Credit Lender (including, without limitation, Costs of Collection,
attorneys’ reasonable fees, and all court and litigation costs and expenses) and
which are required to be paid by the Borrower.

(vi) Any and all covenants of the Borrower to or with the Agent or any
Revolving Credit Lender and any and all obligations of the Borrower to act or to
refrain from acting in accordance with any Loan Document between the Borrower and
the Agent or any Revolving Credit Lender or Loan Document furnished by the Borrower
to the Agent or any Revolving Credit Lender.

(vii) Each of the foregoing as if each reference to the “the Agent or any
Revolving Credit Lender” were to each Affiliate of the Agent.

(b) Any and all direct or indirect liabilities, debts, and obligations of the Borrower
to the Agent or any Affiliate of the Agent, each of every kind, nature, and description
owing on account of any service or accommodation provided to, or for the account of the
Borrower pursuant to this or any other Loan Document, including Bank Products, Cash
Management Services and the issuances of L/C’s.

“Libor Business Day”: Any day which is both a Business Day and a day on which the principal
interbank market for Libor deposits in London in which Bank of America participates is
open for dealings in United States Dollar deposits.

“Libor Loan”: Any Revolving Credit Loan which bears interest at the Libor Margin Rate.

 

19

 

“Libor Offer Rate”: For any Interest Period with respect to a Libor Loan, the rate per annum
equal to the British Bankers Association Libor Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by the Agent from time to time) at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period, for dollar
deposits (for delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period. If such rate is not available at such time for any reason,
then the “Libor Offer Rate” for such Interest Period shall be the rate per annum
determined by the Agent to be the rate at which deposits in dollars for delivery on the
first day of such Interest Period in same day funds in the approximate amount of the
Libor Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London Branch
to major banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the commencement of
such Interest Period.

“Libor Margin”: Initially, the rate set forth in Level I below. Commencing November 1,
2010, and on the first day of each Fiscal quarter thereafter, the Libor Margin shall be
the following percentages based upon the following criteria:

	 	 	 	 	 	 	 
	Level	 	Average Availability	 	Libor Margin	 
	I
	 	Greater than $55,000,000	 	 	2.00	%
	II
	 	Greater than $40,000,000 and less than or equal to $55,000,000	 	 	2.25	%
	III
	 	Greater than $25,000,000 and less than or equal to $40,000,000	 	 	2.50	%
	IV
	 	Less than or equal to $25,000,000	 	 	2.75	%

On the first day of each Fiscal quarter, the Libor Margin shall be adjusted based
upon the Borrower’s aggregate daily average Availability for the immediately
preceding Fiscal quarter divided by the total number of days in such immediately
preceding Fiscal quarter. provided, however, upon the occurrence of an Event of
Default, the Libor Margin shall be immediately increased to the percentage set forth
in Level IV above (even if the average Availability requirements for another Level
have been met) and interest shall be determined in the manner set forth in Section
2-11(f).

“Libor Margin Rate”: The rate per annum which is the aggregate of the Libor Rate plus the
Libor Margin.

 

20

 

“Libor Rate”: With respect to any Libor Loan for any Interest Period, an interest rate per
annum (rounded upwards, if necessary, to the next 1/16 of one percent (1%)) equal to
the Libor Offer Rate for such Interest Period multiplied by the Statutory Reserve Rate.
The Libor
Rate will be adjusted automatically as to all Libor Loans then outstanding as of the
effective date of any change in the Statutory Reserve Rate.

“Liquidation”: The exercise, by the Agent, of those rights accorded to the Agent under the
Loan Documents as a creditor of the Borrower following and on account of the occurrence
of an Event of Default and Acceleration looking towards the realization on the
Collateral. Derivations of the word “Liquidation” (such as “Liquidate”) are used with
like meaning in this Agreement.

“Loan Account”: Is defined in Section 2-8(a).

“Loan Commitment”: With respect to each Revolving Credit Lender, that Revolving
Credit Lender’s Revolving Credit Dollar Commitment.

“Loan Documents”: This Agreement, each instrument and document executed and/or
delivered as contemplated by Article 3 below, and each other instrument or document
from time to time executed and/or delivered in connection with the arrangements
contemplated hereby or in connection with any transaction with the Agent or any
Affiliate of the Agent, including, without limitation, any Bank Product, Cash
Management Services, and any transaction which arises out of any investment, letter of
credit, interest rate protection, or equipment leasing services provided by the Agent
or any Affiliate of the Agent, as each may be amended from time to time.

“Majority Lenders”: So long as there are only two (2) Revolving Credit Lenders party to this
Agreement, “Majority Lenders” shall mean both such Revolving Credit Lenders (unless one
of the Revolving Credit Lenders is a Delinquent Revolving Credit Lender, in which case,
“Majority Lenders shall mean the other Revolving Credit Lender), and if there are more
than two (2) Revolving Credit Lenders party to this Agreement, “Majority Lenders” shall
mean Revolving Credit Lenders (other than Delinquent Revolving Credit Lenders) holding
51% or more of the Revolving Credit Dollar Commitment (other than any Loan Commitments
held by Delinquent Revolving Credit Lenders).

“Marmaduke Family”: John Marmaduke, the Estate of Sam Marmaduke, the John H. Marmaduke
Family Limited Partnership, the Stephen S. Marmaduke Family Limited Partnership, and
members of the immediate families of John Marmaduke and Steve Marmaduke.

 

21

 

“Material Accounting Change”: Any change in GAAP applicable to accounting periods subsequent
to the Borrower’s Fiscal year most recently completed prior to the execution of this
Agreement, which change has a material effect on the Borrower’s financial condition or
operating results, as reflected on financial statements and reports prepared
by or for the Borrower, when compared with such condition or results as if such
change had not taken place or where preparation of the Borrower’s statements and
reports in compliance with such change results in the breach of a financial
performance covenant imposed pursuant to Section 5-11 where such a breach would not
have occurred if such change had not taken place or visa versa.

“Maturity Date”: July 22, 2014.

“Maximum Rate”: The maximum nonusurious rate of interest permitted by applicable law.

“Nominee”: A business entity (such as a corporation or limited partnership) formed by the
Agent to own or manage any Post Foreclosure Asset.

“NonConsenting Revolving Credit Lender”: Is defined in Section 15-10.

“Operating Account”: Is defined in Section 7-3(a)(iii).

“OverLoan”: A loan, advance, or providing of credit support (such as the issuance of any
L/C) to the extent that, immediately after its having been made, Availability is less
than zero.

“Participant”: Is defined in Section 19-15, hereof.

“Payment Conditions”: At the time of determination with respect to any specified transaction
or payment, that (a) no Event of Default then exists or would arise as a result of
entering into such transaction or the making of such payment, and (b) after giving
effect to such transaction or payment, the Pro Forma Availability Condition has been
satisfied and the Consolidated Fixed Charge Coverage Ratio, on a pro-forma basis for
the twelve Fiscal months preceding such transaction or payment, is equal to or greater
than 1.1:1.0. For the avoidance of doubt, the Consolidated Fixed Charge Coverage
Ratio will be calculated at the end of each applicable calendar month (and not more
frequently). Prior to undertaking any transaction or payment which is subject to the
Payment Conditions, the Borrower shall deliver to the Agent evidence of satisfaction of
the conditions contained in clause (b) above on a basis (including, without limitation,
giving due consideration to results for prior periods) reasonably satisfactory to the
Agent.

“Payment Intangible”: Has the meaning given that term in UCC and also refers to any general
intangible under which the Account Debtor’s primary obligation is a monetary
obligation.

“Payroll Account”: Is defined in Section 7-3(a)(iv).

 

22

 

“Permissible OverLoans”: Revolving Credit Loans which are OverLoans, but as to which each
of the following conditions is satisfied: (a) the Revolving Credit Ceiling is not
exceeded; and (b) when aggregated with all other Permissible OverLoans, such Revolving
Credit Loans do not aggregate more than 10% of the aggregate of the
Borrowing Base; and (c) such Revolving Credit Loans are made or undertaken in the
Agent’s discretion to protect and preserve the interests of the Revolving Credit
Lenders.

“Permitted Encumbrances”: Those Encumbrances permitted as provided in Section 4-6(a) hereof.

“Person”: Any natural person, and any corporation, limited liability company, trust,
partnership, joint venture, or other enterprise or entity.

“Post Foreclosure Asset”: All or any part of the Collateral, ownership of which is
acquired by the Agent or a Nominee on account of the “bidding in” at a disposition as
part of a Liquidation or by reason of a “deed in lieu” type of transaction.

“Pro Forma Availability Condition”: For any date of calculation with respect to any
transaction or payment, the Pro Forma Availability following, and after giving effect
to, such transaction or payment, will be equal to or greater than twenty-five percent
(25%) of the lesser of the Revolving Credit Ceiling or the Borrowing Base.

“Pro Forma Availability” For any date of calculation, after giving pro forma effect
to the transaction then to be consummated, (i) the projected average daily Availability
for each Fiscal month during any subsequent projected twelve (12) Fiscal months, and
(ii) average daily Availability for each of the three (3) Fiscal months immediately
preceding such transaction.

“Proceeds”: Includes, without limitation, “Proceeds” as defined in the UCC and each type of
property described in Section 8-1 hereof.

“Protective Advances”: The aggregate of Revolving Credit Loans and expenditures and
incurrences of obligations by the Agent respectively which are made or undertaken in
the Agents’ reasonable discretion to: protect or preserve the Collateral Interests
which secure the Liabilities and the Agent’s rights upon an Event of Default or which
the Agent determines in its reasonable discretion, are appropriate to facilitate a
Liquidation, provided, however, “Protective Advances” shall not exceed $3.5 Million in
the aggregate at any one time outstanding.

“Receipts”: All cash, cash equivalents, checks, and credit card slips, receipts and other
Proceeds from any sale of the Collateral.

 

23

 

“Receivables Collateral”: That portion of the Collateral which consists of the Borrower’s
Accounts, Accounts Receivable, General Intangibles, Chattel Paper, Instruments,
Documents of Title, Documents, Investment Property, Payment Rights, Letter-of-Credit
Rights, bankers’ acceptances held by the Borrower, and all other rights to payment.

“Register”:Is defined in Section 16-2(c).

“Requirements of Law”: As to any Person:

(a) Applicable Law.

(b) That Person’s organizational documents, if any.

(c) That Person’s by-laws and/or other instruments which deal with corporate or
similar governance, as applicable.

“Reserves”: The following: Availability Reserves and Inventory Reserves.

“Revolving Credit”: Is defined in Section 2-1(a).

“Revolving Credit Ceiling”: $100,000,000.00.

“Revolving Credit Commitment Fee”: Is defined in Section 2-12.

“Revolving Credit Dollar Commitment”: As set forth on EXHIBIT 2-22, annexed hereto (as such
amounts may change in accordance with the provisions of this Agreement).

“Revolving Credit Lenders”: Each Revolving Credit Lender to which reference is made in the
Preamble of this Agreement and any other Person who becomes a “Revolving Credit Lender”
in accordance with the provisions of this Agreement.

“Revolving Credit Loans”: Loans made under the Revolving Credit, except that where the term
“Revolving Credit Loan” is used with reference to available interest rates applicable
to the loans under the Revolving Credit, it refers to so much of the unpaid principal
balance of the Loan Account as bears the same rate of interest for the same Interest
Period. (See Section 2-11(c)).

“Revolving Credit Note”: Is defined in Section 2-9.

“Revolving Credit Percentage Commitment”: As set forth on EXHIBIT 2-22, annexed hereto (as
such amounts may change in accordance with the provisions of this Agreement).

“SEC”: The Securities and Exchange Commission.

“Specified Default” means the failure of the Borrower to comply with the terms of Section
5-11 or Section 7-4, or the occurrence of any Event of Default specified in Section
10-1, Section 10-2, Section 10-3, Section 10.6, Section 10-11, or Section 10-12.

“Stated Amount”: The maximum amount for which an L/C may be honored.

 

24

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the aggregate of
the maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board of Governors of
the Federal Reserve System of the United States (the “Board”) to which the Agent is
subject with respect to the Libor Offer Rate, for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve
percentages
shall include those imposed pursuant to such Regulation D. Libor Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that
may be available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in any reserve percentage.

“Subsidiary”: for any Person, any corporation or other entity of which at least a majority
of the securities or other ownership interests having by the terms thereof ordinary
voting power to elect a majority of the board of directors or other Persons having
similar powers is at the time directly or indirectly owned by such Person.

“SuperMajority Lenders”: Revolving Credit Lenders (other than Delinquent Revolving Credit
Lenders) holding 66-2/3% or more of the Revolving Credit Dollar Commitment (other than
Loan Commitments held by a Delinquent Revolving Credit Lender), except that unless and
until there are more than two Revolving Credit Lenders, “SuperMajority Lenders shall
refer to all Revolving Credit Lenders who are not Delinquent Revolving Credit Lenders.

“Supporting Obligation”: Has the meaning given that term in UCC and also refers to a
Letter-of-Credit Right or secondary obligation which supports the payment or
performance of an Account, Chattel Paper, a Document, a General Intangible, an
Instrument, or Investment Property.

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange transactions,
cap transactions, floor transactions, collar transactions, currency swap transactions,
cross-currency rate swap transactions, currency options, spot contracts, or any other
similar transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is governed by
or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or
any other master
agreement (any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

25

 

“SwingLine”: The facility pursuant to which the SwingLine Lender may advance Revolving
Credit Loans aggregating up to the SwingLine Loan Ceiling.

“SwingLine Lender”: Bank of America and any successor thereto in the capacity of lender of
Swingline Loans.

“SwingLine Loan Ceiling”: $2.5 Million (subject to increase as provided in Section 15-4(b)).

“SwingLine Loans”: Defined in Section 2-7(a).

“Termination Date”: The earliest of (a) the Maturity Date; or (b) the occurrence of any
event described in Section 10-12, below; or (c) the Agent’s notice to the Borrower
setting the Termination Date on account of the occurrence of any Event of Default other
than as described in Section 10-12, below; or (d) that date, sixty (60) days
irrevocable written notice of which is provided by the Borrower to the Agent.

“Transfer”: Wire transfer pursuant to the wire transfer system maintained by the Board of
Governors of the Federal Reserve Board, or as otherwise may be agreed to from time to
time by the Agent making such transfer and the subject Revolving Credit Lender. Wire
instructions may be changed in the same manner that Notice Addresses may be changed
(Section 17-1), except that no change of the wire instructions for Transfers to any
Revolving Credit Lender shall be effective without the consent of the Agent.

“UCC”: The Uniform Commercial Code as in effect from time to time in Massachusetts.

“Unanimous Consent”: Consent of Revolving Credit Lenders (other than Delinquent Revolving
Credit Lenders) holding 100% or more of the Revolving Credit Dollar Commitment (other
than Loan Commitments held by a Delinquent Revolving Credit Lender).

“Unused Line Fee”: Is defined in Section 2-14.

“Voting Stock”: shares of any class or classes (however designated) of any corporation
having ordinary voting power for the election of at least a majority of the members of
the board of directors (or other governing bodies) of such corporation.

 

26

 

ARTICLE 2 — The Revolving Credit: 

2-1. Establishment of Revolving Credit.

(a) The Revolving Credit Lenders hereby establish a revolving line of credit (the “Revolving
Credit”) in the Borrower’s favor pursuant to which each Revolving Credit Lender, subject to, and in
accordance with, this Agreement, acting through the Agent, shall make loans and advances and
otherwise provide financial accommodations to and for the account of the Borrower as provided
herein.

(b) Loans, advances, and financial accommodations under the Revolving Credit shall be made
with reference to the Borrowing Base and shall be subject to Availability. The Borrowing Base and
Availability shall be determined by the Agent by reference to Borrowing Base Certificates furnished
as provided in Section 5-4, below, and shall be subject to the following:

(i) Such determination shall take into account those Reserves as the Agent may
determine as being applicable thereto.

(ii) The Cost of Eligible Inventory will be determined in a manner consistent with
current tracking practices, based on the Borrower’s By-Department monthly report generated
by the Borrower’s inventory control system, which report reflects the functional equivalent
of a stock ledger inventory.

(c) The commitment of each Revolving Credit Lender to provide such loans, advances, and
financial accommodations is subject to Section 2-22.

(d) The proceeds of borrowings under the Revolving Credit shall be used solely in accordance
with the Business Plan for the Borrower’s working capital and Capital Expenditures, all solely to
the extent permitted by this Agreement. No proceeds of a borrowing under the Revolving Credit may
be used, nor shall any be requested, with a view towards the accumulation of any general fund or
funded reserve of the Borrower other than in the ordinary course of the Borrower’s business and
consistent with the provisions of this Agreement. Subject to the foregoing, the proceeds of
borrowings under the Revolving Credit Facility shall be used for the following purposes:

(i) To provide on-going working capital requirements and capital expenditure needs of
the Borrower.

(ii) To support issuance of letters of credit by the letter of credit issuer for the
account of the Borrower.

(iii) To provide funds for the Borrower’s repurchase of its capital stock as permitted
herein.

 

27

 

2-2. Advances in Excess of Borrowing Base (OverLoans).

(a) No Revolving Credit Lender has any obligation to make any loan or advance, or otherwise to
provide any credit to or for the benefit of the Borrower where the result of such loan, advance, or
credit is an OverLoan.

(b) The Revolving Credit Lenders’ obligations, among themselves, are subject to Section
12-3(a) (which relates to each Revolving Credit Lender’s making amounts available to the Agent) and
to Section 15-3(a) (which relates to Permissible OverLoans).

(c) The Revolving Credit Lenders’ providing of an OverLoan on any one occasion does not affect
the obligations of the Borrower hereunder (including the Borrower’s obligation to immediately repay
any amount which otherwise constitutes an OverLoan) nor obligate the Revolving Credit Lenders to do
so on any other occasion.

2-3. Risks of Value of Collateral. The Agent’s reference to a given asset in connection with the making of loans, credits, and
advances and the providing of financial accommodations under the Revolving Credit and/or the
monitoring of compliance with the provisions hereof shall not be deemed a determination by the
Agent or any Revolving Credit Lender relative to the actual value of the asset in question. All
risks concerning the value of the Collateral are and remain upon the Borrower. All Collateral
secures the prompt, punctual, and faithful performance of the Liabilities whether or not relied
upon by the Agent in connection with the making of loans, credits, and advances and the providing
of financial accommodations under the Revolving Credit.

2-4. Commitment to Make Revolving Credit Loans and Support Letters of Credit. Subject to the provisions of
this Agreement, the Revolving Credit Lenders shall make a loan
or advance under the Revolving Credit and the Agent shall have an L/C issued for the account of the
Borrower, in each instance if duly and timely requested by the Borrower as provided herein provided
that:

(a) Borrowing Base will not be exceeded.

(b) The amount of the loan or advance or L/C so requested does not exceed Availability.

(c) The Borrower is not InDefault.

2-5. Revolving Credit Loan Requests.

(a) Requests for loans and advances under the Revolving Credit or for the continuance or
conversion of an interest rate applicable to a Revolving Credit Loan may be requested by the
Borrower in the manner set forth herein or in such other manner as may from time to time be
reasonably acceptable to the Agent.

 

28

 

(b) Subject to the provisions of this Agreement, the Borrower may request a Revolving Credit
Loan and elect an interest rate and Interest Period to be applicable to that Revolving Credit Loan
by giving notice to the Agent by no later than the following:

(i) If such Revolving Credit Loan is to be or is to be converted to a Base Margin Loan:
By 11:30AM on the Business Day on which the subject Revolving Credit Loan is to be made or
is to be so converted. Base Margin Loans requested by the Borrower, other than those
resulting from the conversion of a Libor Loan, shall not be less than $10,000.00.

(ii) If such Revolving Credit Loan is to be, or is to be continued as, or converted to,
a Libor Loan: By 1:00PM three (3) Libor Business Days before the commencement of any new
Interest Period or the end of the then applicable Interest Period. Libor Loans and
conversions to Libor Loans shall each be not less than $1,000,000.00 and in increments of
$250,000.00 in excess of such minimum.

(iii) Any Libor Loan which matures while the Borrower is InDefault shall be converted,
at the option of the Agent, to a Base Margin Loan notwithstanding any notice from the
Borrower that such Loan is to be continued as a Libor Loan.

(c) Any request for a Revolving Credit Loan or for the continuance or conversion of an
interest rate applicable to a Revolving Credit Loan which is made after the applicable deadline
therefor, as set forth above, shall be deemed to have been made at the opening of business on the
then next Business Day or Libor Business Day, as applicable.

(d) The Borrower may request that the Agent cause the issuance by the Issuer of L/C’s for the
account of the Borrower as provided in Section 2-18.

(e) The Agent may rely on any request for a loan or advance, or other financial accommodation
under the Revolving Credit which the Agent, in good faith, believes to have been made by a Person
duly authorized to act on behalf of the Borrower and may decline to make any such requested loan or
advance, or issuance, or to provide any such financial accommodation pending the Agent’s being
furnished with such documentation concerning that Person’s authority to act as may be reasonably
satisfactory to the Agent.

(f) A request by the Borrower for loan or advance, or other financial accommodation under the
Revolving Credit shall be irrevocable and shall constitute certification by the Borrower that as of
the date of such request, each of the following is true and correct:

(i) There has been no material adverse change in the Borrower’s financial condition
from the most recent financial information furnished Agent pursuant to this Agreement.

 

29

 

(ii) Each representation which is made herein or in any of the Loan Documents is then
true and complete in all material respects as of and as if made on the date of such request.

(iii) The Borrower is not InDefault.

(g) If, at any time or from time to time, the Borrower is InDefault:

(i) The Agent may suspend the Revolving Credit immediately.

(ii) Neither the Agent nor any Revolving Credit Lender shall be obligated, during such
suspension, to make any loans or advance, or to provide any financial accommodation
hereunder or to seek the issuance of any L/C.

(iii) The Agent may suspend the right of the Borrower to request any Libor Loan or to
convert any Base Margin Loan to a Libor Loan.

2-6. Making of Revolving Credit Loans.

(a) A Revolving Credit Loan shall be made by the transfer of the proceeds of such Revolving
Credit Loan to the Operating Account or as otherwise instructed by the Borrower.

(b) A Revolving Credit Loan shall be deemed to have been made under the Revolving Credit (and
the Borrower shall be indebted to the Agent and the Revolving Credit Lenders for the amount thereof
immediately) at the following:

(i) The Agent’s initiation of the transfer of the proceeds of such Revolving Credit
Loan in accordance with the Borrower’s instructions (if such Revolving Credit Loan is of
funds requested by the Borrower).

(ii) The charging of the amount of such Revolving Credit Loan to the Loan Account (in
all other circumstances).

(c) There shall not be any recourse to or liability of the Agent or any Revolving Credit
Lender, on account of any of the following which is beyond the reasonable control of the Agent:

(i) Any delay in the making of any loan or advance requested under the Revolving
Credit.

(ii) Any delay by any bank or other depository institution in treating the proceeds of
any such loan or advance as collected funds.

(iii) Any delay in the receipt, and/or any loss, of funds which constitute a Revolving
Credit Loan under the Revolving Credit, the wire transfer of which was properly initiated by
the Agent in accordance with wire instructions provided to the Agent by the Borrower.

 

30

 

2-7. SwingLine Loans.

(a) For ease of administration, Base Margin Loans may be made by the SwingLine Lender (in the
aggregate, the “SwingLine Loans”) in accordance with the procedures set forth in this Agreement for
the making of loans and advances under the Revolving Credit. The unpaid principal balance of the
SwingLine Loans shall not at any one time be in excess of the SwingLine Loan Ceiling.

(b) The aggregate unpaid principal balance of SwingLine Loans shall bear interest at the rate
applicable to Base Margin Loans and shall be repayable as a Revolving Credit Loan.

(c) The Borrower’s obligation to repay SwingLine Loans shall be evidenced by a Note in the
form of EXHIBIT 2-7(c), annexed hereto, executed by the Borrower, and payable to the SwingLine
Lender. Neither the original nor a copy of that Note shall be required, however, to establish or
prove any Liability. The Borrower shall execute a replacement of any SwingLine Note which has been
lost, mutilated, or destroyed and deliver such replacement to the SwingLine Lender.

(d) For all purposes of this Loan Agreement, the SwingLine Loans and the Borrower’s
obligations to the SwingLine Lender constitute Revolving Credit Loans and are secured as
“Liabilities”.

(e) SwingLine Loans may be subject to periodic settlement with the Revolving Credit Lenders as
provided in this Agreement.

2-8. The Loan Account.

(a) An account (“Loan Account”) shall be opened on the books of the Agent in which a record
shall be kept of all Revolving Credit Loans.

(b) The Agent shall also keep a record (either in the Loan Account or elsewhere, as the Agent
may from time to time elect) of all interest, fees, service charges, costs, expenses, and other
debits owed to the Agent and each Revolving Credit Lender on account of the Liabilities and of all
credits against such amounts so owed.

(c) All credits against the Liabilities shall be conditional upon final payment to the Agent
for the account of each Revolving Credit Lender of the items giving rise to such credits. The
amount of any item credited against the Liabilities which is charged back against the Agent or any
Revolving Credit Lender for any reason or is not so paid shall be a Liability and shall be added to
the Loan Account, whether or not the item so charged back or not so paid is returned.

(d) Except as otherwise provided herein, all fees, service charges, costs, and expenses for
which the Borrower is obligated hereunder are payable on demand. In the determination of
Availability, the Agent may deem fees, service charges, accrued interest, and other payments which
will be due and payable between the date of such determination and the first day of the then next
succeeding month as having been advanced under the Revolving Credit whether or not such amounts are
then due and payable.

 

31

 

(e) The Agent, without the request of the Borrower, may advance under the Revolving Credit any
interest, fee, service charge, or other payment to which the Agent or any Revolving Credit Lender
is entitled and which are due and payable from the Borrower pursuant hereto and may
charge the same to the Loan Account notwithstanding that such amount so advanced may result in
Borrowing Base’s being exceeded. Such action on the part of the Agent shall not constitute a
waiver of the Agent’s rights and the Borrower’s obligations under Section 2-10(b). Any amount which
is added to the principal balance of the Loan Account as provided in this Section 2-8(e) shall bear
interest at the interest rate then and thereafter applicable to Base Margin Loans.

(f) Any statement rendered by the Agent or any Revolving Credit Lender to the Borrower
concerning the Liabilities shall be considered correct and accepted by the Borrower and shall be
conclusively binding upon the Borrower unless the Borrower provides the Agent with written
objection thereto within twenty (20) days from the mailing of such statement, which written
objection shall indicate, with particularity, the reason for such objection. In the absence of
manifest error, the Loan Account and the Agent’s books and records concerning the loan arrangement
contemplated herein and the Liabilities shall be prima facie evidence and proof of the items
described therein.

2-9. The Revolving Credit Notes. The Borrower’s obligation to repay loans and advances under
the Revolving Credit, with
interest as provided herein, shall be evidenced by Notes (each, a “Revolving Credit Note”) in the
form of EXHIBIT 2-9, annexed hereto, executed by the Borrower, one payable to each Revolving Credit
Lender. Neither the original nor a copy of any Revolving Credit Note shall be required, however,
to establish or prove any Liability. In the event that any Revolving Credit Note is ever lost,
mutilated, or destroyed, the Borrower shall execute a replacement thereof and deliver such
replacement to the Agent.

2-10. Payment of The Loan Account.

(a) The Borrower may repay all or any portion of the principal balance of the Loan Account
from time to time until the Termination Date.

(b) The Borrower, without notice or demand from the Agent or any Revolving Credit Lender,
shall pay the Agent that amount, from time to time, which is necessary so that there is no OverLoan
outstanding.

(c) The Borrower shall repay the then entire unpaid balance of the Loan Account and all other
Liabilities on the Termination Date.

 

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(d) The Agent shall endeavor to cause the application of payments (if any), pursuant to
Sections 2-10(a) and 2-10(b) against Libor Loans then outstanding in such manner as results in the
least cost to the Borrower, but shall not have any affirmative obligation to do so nor liability on
account of the Agent’s failure to have done so. In no event shall action or inaction taken by the
Agent excuse the Borrower from any indemnification obligation under Section 2-10(e).

(e) Within ten (10) days from the date a Revolving Credit Lender or the Agent (as the case may
be) makes written demand therefor, the Borrower shall indemnify the Agent and each Revolving Credit
Lender and hold the Agent and each Revolving Credit Lender harmless from and against any loss, cost
or expense (including loss of anticipated profits and amounts payable by the Agent or such
Revolving Credit Lender on account of “breakage fees” (so-called)) which the Agent or such
Revolving Credit Lender may sustain or incur (including, without limitation, by virtue of
acceleration after the occurrence of any Event of Default) as a consequence of the following:

(i) Default by the Borrower in payment of the principal amount of or any interest on
any Libor Loan as and when due and payable, including any such loss or expense arising from
interest or fees payable by such Revolving Credit Lender in order to maintain its Libor
Loans.

(ii) Default by the Borrower in making a borrowing or conversion after the Borrower has
given (or is deemed to have given) a request for a Revolving Credit Loan or a request to
convert a Revolving Credit Loan from one applicable interest rate to another.

(iii) The making of any payment on a Libor Loan or the making of any conversion of any
such Loan to a Base Margin Loan on a day that is not the last day of the applicable Interest
Period with respect thereto.

2-11. Interest on Revolving Credit Loans.

(a) Each Revolving Credit Loan shall be a Base Margin Loan and shall bear interest at the Base
Margin Rate unless timely notice is given (as provided in Section 2-5) that the subject Revolving
Credit Loan (or a portion thereof) is, or is to be converted to, a Libor Loan.

(b) Each Revolving Credit Loan which consists of a Libor Loan shall bear interest at the
applicable Libor Margin Rate.

(c) Subject to, and in accordance with, the provisions of this Agreement, the Borrower may
cause all or a part of the unpaid principal balance of the Loan Account to bear interest at the
Base Margin Rate or the Libor Margin Rate as specified from time to time by the Borrower.

 

33

 

(d) The Borrower shall not select, renew, or convert any interest rate for a Revolving Credit
Loan such that, in addition to interest at the Base Margin Rate, there are more than six (6) Libor
Margin Rates applicable to the Revolving Credit Loans at any one time.

(e) The Borrower shall pay accrued and unpaid interest on each Revolving Credit Loan in
arrears as follows:

(i) On the applicable Interest Payment Date for that Revolving Credit Loan.

(ii) On the Termination Date and on the End Date.

(iii) Following the occurrence of any Event of Default, with such frequency as may be
reasonably determined by the Agent.

(f) Following the occurrence of any Specified Default (and whether or not the Agent exercises
the Agent’s rights on account thereof), each Revolving Credit Loan shall bear interest, at the
option of the Agent or at the instruction of the SuperMajority Lenders at rate which is the rate
then in effect for such Revolving Credit Loan, plus two percent (2%) per annum.

2-12. Revolving Credit Commitment Fee. In consideration of
the commitment to make loans and advances to the Borrower under the
Revolving Credit, and to maintain sufficient funds available for such purpose, there has been
earned and the Borrower shall pay the “Revolving Credit Commitment Fee” (so referred to herein) in
the amount and payable as provided in the Fee Letter.

2-13. Agent’s Fee. In addition to any other fee or expense to be paid by the Borrower on account of the
Revolving Credit, the Borrower shall pay the Agent the “Agent’s Fee” at the times and in the
amounts as set forth the Fee Letter.

2-14. Unused Line Fee. In addition to any other fee to be paid by the Borrower on account of the Revolving Credit,
the Borrower shall pay the Agent the “Unused Line Fee” (so referred to herein) equal to the
Applicable Fee Rate multiplied by the difference, during the quarter just ended (or relevant period
with respect to the payment being made on the Termination Date) between the Revolving Credit
Ceiling and the average of the unpaid principal balance of the Loan Account and the undrawn Stated
Amount of L/C’s outstanding during the relevant period. The Unused Line Fee shall be paid in
arrears, on the first day of each quarter after the execution of this Agreement and on the
Termination Date.

2-15. Reserved.

 

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2-16. Concerning Fees.

(a) In addition to any other right to which the Agent is then entitled on account thereof, the
Agent may assess an additional fee payable by the Borrower on account of the accommodation, from
time to time, by the Agent of the Borrower’s request that the Agent depart or
dispense with one or more of the administrative provisions of this Agreement and/or the
Borrower’s failure to comply with any of such provisions, which additional fee shall be reasonable.

(i) By way of non-exclusive example, the Agent may assess a fee on account of any of
the following:

(A) The Borrower’s failure to pay that amount which is necessary so that no
OverLoan is outstanding (as required under Section 2-10(b) hereof).

(B) The providing of a loan or advance under the Revolving Credit or charging
of the Loan Account such that an OverLoan is made.

(C) The foreshortening of any of the time frames with respect to the making of
Revolving Credit Loans as set forth in Section 2-5.

(D) The Borrower’s failure to provide a financial statement or report within
the applicable time frame provided for such report under Article 5 hereof.

(ii) The inclusion of the foregoing right on the part of the Agent to assess a fee does
not constitute an obligation, on the part of the Agent, to waive any provision of this
Agreement under any circumstances. The assessment of any such fee in any particular
circumstance shall not constitute the Agent’s waiver of any breach of this Agreement on
account of which such fee was assessed nor a course of action on which the Borrower may
rely.

(b) The Borrower shall not be entitled to any credit, rebate or repayment of any fee earned by
the Agent or any Revolving Credit Lender pursuant to this Agreement or any Loan Document
notwithstanding any termination of this Agreement pursuant to the terms hereof or suspension or
termination pursuant to the terms hereof of the Agent’s and any Revolving Credit Lender’s
respective obligation to make loans and advances hereunder.

2-17. Agent’s and Revolving Credit Lenders’ Discretion.

(a) Each reference in the Loan Documents to the exercise of discretion or the like by the
Agent or any Revolving Credit Lender shall be to such Person’s exercise of its reasonable judgment,
in good faith (which shall be presumed), based upon such Person’s consideration of any such factors
as the Agent or that Revolving Credit Lender, taking into account information of which that Person
then has actual knowledge, reasonably believes:

(i) Will or reasonably could be expected to adversely affect the value of the
Collateral, the enforceability of the Agent’s Collateral Interests therein, or the amount
which the Agent would likely realize therefrom (taking into account delays which may
possibly be encountered in the Agent’s realizing upon the Collateral and likely Costs of
Collection).

 

35

 

(ii) Indicates that any report or financial information delivered to the Agent or any
Revolving Credit Lender by or on behalf of the Borrower is incomplete, inaccurate, or
misleading in any material manner or was not prepared in any material respect in accordance
with the requirements of this Agreement.

(iii) Suggests an increase in the likelihood that the Borrower will become the subject
of a bankruptcy or insolvency proceeding.

(iv) Suggests that the Borrower is InDefault.

(b) In the exercise of such judgment, the Agent and each Revolving Credit Lender also may take
into account any of the following factors:

(i) Those included in, or tested by, the definitions of “Eligible Inventory” and
“Cost”.

(ii) The current financial and business climate of the industry in which the Borrower
competes (having regard for the Borrower’s position in that industry).

(iii) General macroeconomic conditions which have a material effect on the Borrower’s
cost structure.

(iv) Material changes in or to the mix of the Borrower’s Inventory.

(v) Seasonality with respect to the Borrower’s Inventory and patterns of retail sales.

(vi) Such other factors as the Agent and each Revolving Credit Lender reasonably
determines as having a material bearing on credit risks associated with the providing of
loans and financial accommodations to the Borrower.

(c) The burden of establishing the failure of the Agent or any Revolving Credit Lender to have
acted in a reasonable manner in such Person’s exercise of such discretion shall be the Borrower’s.

2-18. Procedures For Issuance of L/C’s.

(a) The Borrower may request that the Agent cause the issuance by the Issuer of L/C’s for the
account of the Borrower, and the Issuer shall, if so requested, issue one or more L/C’s for the
account of the Borrower from time to time pursuant to the terms hereof. Each such request shall be
in the manner set forth herein or in such other manner as may from time to time be reasonably
acceptable to the Agent.

 

36

 

(b) The Agent shall cause the issuance of any L/C so requested by the Borrower, provided that,
at the time that the request is made, both the Issuance Conditions are satisfied and Revolving
Credit has not been suspended as provided in Section 2-5(g) and if so issued:

(i) The aggregate Stated Amount of all L/C’s then outstanding, does not exceed
$20,000,000.00

(ii) The expiry of the L/C is not later than the earlier of thirty (30) days prior to
the Maturity Date or the following:

(A) Standby L/Cs: One (1) year from initial issuance.

(B) Documentary L/Cs: Sixty (60) days from issuance.

(iii) An OverLoan will not result from the issuance of the subject L/C.

(c) The Borrower shall execute such documentation to apply for and support the issuance of an
L/C as may be required by the Issuer.

(d) Unless within the control of the Agent or a Revolving Credit Lender, there shall not be
any recourse to, nor liability of, the Agent or any Revolving Credit Lender on account of

(i) Any delay or refusal by an Issuer to issue an L/C;

(ii) Any action or inaction of an Issuer on account of or in respect to, any L/C.

(e) The Borrower shall reimburse the Issuer for the amount of any honoring of a drawing under
an L/C on the same day on which such honoring takes place. The Agent, without the request of the
Borrower, may advance under the Revolving Credit (and charge to the Loan Account) the amount of any
honoring of any L/C and other amount for which the Borrower, the Issuer, or the Revolving Credit
Lenders become obligated on account of, or in respect to, any L/C. Such advance shall be made
whether or not the Borrower is InDefault or such advance would result in an OverLoan. Such action
shall not constitute a waiver of the Agent’s rights under Section 2-10(b) hereof.

2-19. Fees For L/C’s.

(a) The Borrower shall pay to the Agent a fee, on account of L/C’s, monthly in arrears, and on
the Termination Date and on the End Date, determined at the following per annum rate of the
weighted average Stated Amount of all L/C’s outstanding during the period in respect of which such
fee is being paid except that, following the occurrence of any Event of Default, such fee shall be
increased by two percent (2%) per annum:

(i) Standby L/Cs: 200 basis points.

(ii) Documentary L/Cs: 150 basis points.

(b) In addition to the fee to be paid as provided in Subsection 2-19(a) above, the Borrower
shall pay to the Agent (or to the Issuer, if so requested by Agent), on demand, all customary
issuance, processing, negotiation, amendment, and administrative fees and other amounts customarily
charged by the Issuer on account of, or in respect to, any L/C.

 

37

 

(c) If any change in Applicable Law after the date of this Agreement shall either:

(i) impose, modify or deem applicable any reserve, special deposit or similar
requirements against letters of credit heretofore or hereafter issued by any Issuer or with
respect to which any Revolving Credit Lender or any Issuer has an obligation to lend to fund
drawings under any L/C; or

(ii) impose on any Issuer any other condition or requirements relating to any such
letters of credit;

and the result of any event referred to in Section 2-19(c)(i) or 2-19(c)(ii), above, shall be to
increase the cost to any Revolving Credit Lender or to any Issuer of issuing or maintaining any L/C
(which increase in cost shall be the result of such Issuer’s reasonable allocation among that
Revolving Credit Lender’s or Issuer’s letter of credit customers of the aggregate of such cost
increases resulting from such events), then within ten (10) days after demand by the Agent and
delivery by the Agent to the Borrower of a certificate of an officer of the subject Revolving
Credit Lender or the subject Issuer describing, with reasonable particularity, such change in law,
executive order, regulation, directive, or interpretation thereof, its effect on such Revolving
Credit Lender or such Issuer, and the basis for determining such increased costs and their
allocation, the Borrower shall immediately pay to the Agent, from time to time as specified by the
Agent, such amounts as shall be sufficient to compensate the subject Revolving Credit Lender or the
subject Issuer for such increased cost. In the absence of manifest error, any Revolving Credit
Lender’s or any Issuer’s determination of costs incurred under Section 2-19(c)(i) or 2-19(c)(ii),
above, and the allocation, if any, of such costs among the Borrower and other letter of credit
customers of such Revolving Credit Lender or such Issuer, if done in good faith and made on an
equitable basis and in accordance with such officer’s certificate, shall be conclusive and binding
on the Borrower. Notwithstanding the foregoing, any demand for such increased letter of credit
costs shall not include any increased letter of credit costs of which the Issuer, any Revolving
Credit Lender, or the Agent making demand therefor had knowledge more than 90 days prior to the
date that the Issuer, any Revolving Credit Lender or the Agent makes demand therefor.

2-20. Concerning L/C’s.

(a) None of the Issuer, the Issuer’s correspondents, any Revolving Credit Lender, the Agent,
or any advising, negotiating, or paying bank with respect to any L/C shall be responsible in any
way for:

(i) The performance by any beneficiary under any L/C of that beneficiary’s obligations
to the Borrower.

 

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(ii) The form, sufficiency, correctness, genuineness, authority of any person signing;
falsification; or the legal effect of any documents called for under any L/C if (with
respect to the foregoing) such documents on their face appear to be in order.

(b) The Issuer may honor, as complying with the terms of any L/C and of any drawing
thereunder, any drafts or other documents otherwise in order, but signed or issued by an
administrator, executor, conservator, trustee in bankruptcy, debtor in possession, assignee for the
benefit of creditors, liquidator, receiver, or other legal representative of the party authorized
under such L/C to draw or issue such drafts or other documents.

(c) Unless otherwise agreed to, in the particular instance, the Borrower hereby authorizes any
Issuer to:

(i) Select an advising bank, if any.

(ii) Select a paying bank, if any.

(iii) Select a negotiating bank.

(d) All directions, correspondence, and funds transfers relating to any L/C are at the risk of
the Borrower. The Issuer shall have discharged the Issuer’s obligations under any L/C which, or the
drawing under which, includes payment instructions, by the initiation of the method of payment
called for in, and in accordance with, such instructions (or by any other commercially reasonable
and comparable method). None of the Agent, any Revolving Credit Lender, or the Issuer shall have
any responsibility for any inaccuracy, interruption, error, or delay in transmission or delivery by
post, telegraph or cable, or for any inaccuracy of translation, except through its gross negligence
or willful misconduct.

(e) The Agent’s, each Revolving Credit Lender’s, and the Issuer’s rights, powers, privileges
and immunities specified in or arising under this Agreement are in addition to any heretofore or at
any time hereafter otherwise created or arising, whether by statute or rule of law or contract.

(f) Except to the extent otherwise expressly provided hereunder or agreed to in writing by the
Issuer and the Borrower, documentary L/C’s will be governed by the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce, Publication No. 500, and standby L/C’s will
be governed by International Standby Practices ISP98 (adopted by the International Chamber of
Commerce on April 6, 1998) and any respective subsequent revisions thereof.

 

39

 

(g) The obligations of the Borrower under this Agreement with respect to L/C’s are absolute,
unconditional, and irrevocable and shall be performed strictly in accordance with the terms hereof
under all circumstances, whatsoever including, without limitation, the following:

(i) Any lack of validity or enforceability or restriction, restraint, or stay in the
enforcement of this Agreement, any L/C, or any other agreement or instrument relating
thereto.

(ii) The Borrower’s consent to any amendment or waiver of, or consent to the departure
from, any L/C.

(iii) The existence of any claim, set-off, defense, or other right which the Borrower
may have at any time against the beneficiary of any L/C.

(iv) Any good faith honoring of a drawing under any L/C, which drawing possibly could
have been dishonored based upon a strict construction of the terms of the L/C.

2-21. Changed Circumstances.

(a) The Agent may advise the Borrower that the Agent has made the good faith determination
(which determination shall be final and conclusive) of any of the following:

(i) Adequate and fair means do not exist for ascertaining the rate for Libor Loans.

(ii) The continuation of or conversion of any Revolving Credit Loan to a Libor Loan has
been made impossible or unlawful by the occurrence after the date of this Agreement of a
contingency that materially and adversely affects the applicable market or the compliance by
the Agent or any Revolving Credit Lender in good faith with any Applicable Law.

(iii) The indices on which the interest rates for Libor Loans are based shall no longer
fairly and adequately represent the effective cost to the Agent or any Revolving Credit
Lender for U.S. dollar deposits in the interbank market for deposits in which it regularly
participates.

(b) In the event that the Agent advises the Borrower of an occurrence described in Section
2-21(a), then, until the Agent notifies the Borrower that the circumstances giving rise to such
notice no longer apply:

(i) The obligation of the Agent or each Revolving Credit Lender to make loans of the
type affected by such changed circumstances or to permit the Borrower to select the affected
interest rate as otherwise applicable to any Revolving Credit Loans shall be suspended.

(ii) Any notice which the Borrower had given the Agent with respect to any Libor Loan,
the time for action with respect to which has not occurred prior to the Agent’s having given
notice pursuant to Section 2-21(a) above, shall be deemed to be given for a Base Margin
Loan.

 

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2-22. Lenders’ Commitments.

(a) Subject to Section 16-1 (which provides for assignments and assumptions of commitments),
each Revolving Credit Lender’s “Revolving Credit Percentage Commitment” and “Revolving Credit
Dollar Commitment” (respectively so referred to herein) are set forth on EXHIBIT 2-22, annexed
hereto.

(b) The obligations of each Revolving Credit Lender are several and not joint. No Revolving
Credit Lender shall have any obligation to make any loan or advance under the Revolving Credit in
excess of the lesser of the following:

(i) That Revolving Credit Lender’s Revolving Credit Commitment Percentage of the
subject loan or advance or of Availability.

(ii) that Revolving Credit Lender’s Revolving Credit Dollar Commitment.

(c) No Revolving Credit Lender shall have any liability to the Borrower on account of the
failure of any other Revolving Credit Lender to provide any loan or advance under the Revolving
Credit nor any obligation to make up any shortfall which may be created by such failure.

(d) In the event of the Borrower’s exercise of its right to reduce the Revolving Credit
Ceiling, the effect of such reduction shall be distributed, pro rata, amongst the Revolving Credit
Lenders based on their then respective Revolving Credit Dollar Commitments.

(e) The Revolving Credit Dollar Commitments, Revolving Credit Commitment Percentages, and
identities of the Revolving Credit Lenders may be changed, from time to time by the reallocation or
assignment of Revolving Credit Dollar Commitments and Revolving Credit Commitment Percentages
amongst the Revolving Credit Lenders or with other Persons who determine to become “Revolving
Credit Lenders”, provided, however unless an Event of Default has occurred (in which event, no
consent of the Borrower is required) any assignment to a Person not then a Revolving Credit Lender
shall be subject to the prior written consent of the Borrower (not to be unreasonably withheld),
which consent will be deemed given unless the Borrower provides the Agent with written objection,
not more than five (5) Business Days after the Agent shall have given the Borrower written notice
of a proposed assignment).

(f) Upon written notice given the Borrower from time to time by the Agent, of any assignment
or allocation referenced in Section 2-22(e):

(i) The Borrower shall execute one or more replacement Revolving Credit Notes to
reflect such changed Revolving Credit Dollar Commitments, Revolving Credit Commitment
Percentages, and identities and shall deliver such replacement Revolving Credit Notes to the
Agent (which promptly thereafter shall deliver to the Borrower the Revolving Credit Notes so
replaced) provided however, in the event that a Revolving Credit Note is to be
exchanged following its acceleration or the entry of an order for relief under the
Bankruptcy Code with respect to the Borrower, the Agent, in lieu of causing the Borrower to
execute one or more new Revolving Credit Notes, may issue the Agent’s Certificate confirming
the resulting Revolving Credit Dollar Commitments and Revolving Credit Percentage
Commitments.

 

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(ii) Such change shall be effective from the effective date specified in such written
notice and any Person added as a Revolving Credit Lender shall have all rights and
privileges of a Revolving Credit Lender hereunder thereafter as if such Person had been a
signatory to this Agreement and any other Loan Document to which a Revolving Credit Lender
is a signatory and any Person removed as a Revolving Credit Lender shall be relieved of any
obligations or responsibilities of a Revolving Credit Lender hereunder thereafter.

ARTICLE 3 — Conditions Precedent: 

As a condition to the effectiveness of this Agreement, the establishment of the Revolving
Credit, and the making of the first loan under the Revolving Credit, each of the documents
respectively described in Sections 3-1 through and including 3-4, (each in form and substance
reasonably satisfactory to the Agent) shall have been delivered to the Agent, and the conditions
respectively described in Sections 3-5 through and including 3-9, shall have been satisfied:

3-1. Corporate Due Diligence.

(a) A Certificate of corporate good standing issued by the Secretary of State of Texas.

(b) Certificates of due qualification, in good standing, issued by the Secretary(ies) of State
of each State in which the nature of the Borrower’s business conducted or assets owned could
require such qualification.

(c) A Certificate of the Borrower’s Secretary of the due adoption, continued effectiveness,
and setting forth the texts of, each corporate resolution adopted in connection with the
establishment of the loan arrangement contemplated by the Loan Documents and attesting to the true
signatures of each Person authorized as a signatory to any of the Loan Documents.

3-2. Opinion». An opinion of counsel to the Borrower in form and substance reasonably satisfactory to the
Agent.

3-3. Additional Documents. Such additional instruments and documents as the Agent or its counsel reasonably may
require or request.

 

42

 

3-4. Officers’ Certificates. Certificates executed by the President and the Chief Financial Officer or Vice President -
Finance of the Borrower and stating that the representations and warranties made by the Borrower to
the Agent and the Revolving Credit Lenders in the Loan Documents are true and complete in all
material respects as of the date of such Certificate (other than those representations and
warranties which are qualified by “materiality”, each of which are true and correct in all
respects), and that no event has occurred which is or which, solely with the giving of notice or
passage of time (or both) would be an Event of Default.

3-5. Representations and Warranties. Each of the representations made by or on behalf of the Borrower in this Agreement or in
any of the other Loan Documents or in any other report, statement, document, or paper provided by
or on behalf of the Borrower shall be true and complete in all material respects as of the date as
of which such representation or warranty was made.

3-6. Minimum Day One Availability. After giving effect to the first funding under the Revolving Credit; Availability shall not
be less than $50 Million.

3-7. All Fees and Expenses Paid.

All reasonable fees due at or immediately after the first funding under the Revolving Credit
and all reasonable costs and expenses incurred by the Agent in connection with the amendment and
restatement of the credit facility contemplated hereby (including the reasonable fees and expenses
of counsel to the Agent) shall have been paid in full.

3-8. Borrower Not InDefault. The Borrower is not InDefault.

3-9. No Adverse Change. No event shall have occurred or failed to occur, which occurrence or failure is or could
have a materially adverse effect upon the Borrower’s financial condition when compared with such
financial condition at April 30, 2010.

3-10. Benefit of Conditions Precedent. The conditions set forth in this Article 3 are for the sole benefit of the Agent and the
Revolving Credit Lenders and may be waived by the Agent in whole or in part without prejudice to
the Agent or any Revolving Credit Lender.

No document shall be deemed delivered to the Agent or any Revolving Credit Lender until received
and accepted by the Agent or its counsel at its offices in Boston, Massachusetts. Under no
circumstances shall this Agreement take effect until executed and accepted by the Agent at said
offices.

 

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ARTICLE 4 — General Representations, Covenants and Warranties:

To induce each Revolving Credit Lender to establish the credit facility contemplated herein
and to induce the Revolving Credit Lenders to provide Revolving Credit Loans (each of which
Revolving Credit Loans shall be deemed to have been made in reliance thereupon) the Borrower, in
addition to all other representations, warranties, and covenants made by the Borrower in any other
Loan Document, makes those representations, warranties, and covenants included in this Agreement.

4-1. Payment and Performance of Liabilities. The Borrower shall pay each payment Liability when due (or when demanded, if payable on
demand) and shall promptly, punctually, and faithfully perform each other Liability.

4-2. Due Organization. Authorization. No Conflicts.

(a) The Borrower presently is and shall hereafter remain in good standing as a Texas
corporation and is and shall hereafter remain duly qualified and in good standing in every other
State in which, by reason of the nature or location of the Borrower’s assets or operation of the
Borrower’s business, such qualification may be necessary, except where the failure to so qualify
would not have a material adverse effect on the business or assets of the Borrower.

(b) The Borrower’s organizational identification number assigned to it by the State of Texas
is 306162-0 and its federal employer identification number is 75-1386375.

(c) The Borrower shall not change its State of organization; any organizational identification
number assigned to the Borrower by that State; or the Borrower’s federal employer identification
number without giving the Agent thirty (30) days prior written notice thereof.

(d) Each Subsidiary is listed on EXHIBIT 4-2, annexed hereto. The Borrower shall provide the
Agent with prior written notice of any entity’s becoming or ceasing to be a Subsidiary.

(e) The Borrower has all requisite power and authority to execute and deliver all Loan
Documents to which the Borrower is a party and has and will hereafter retain all requisite power to
perform all Liabilities.

(f) The execution and delivery by the Borrower of each Loan Document to which it is a party;
the Borrower’s consummation of the transactions contemplated by such Loan Documents (including,
without limitation, the creation of Collateral Interests by the Borrower to secure the
Liabilities); the Borrower’s performance under those of the Loan Documents to which it is a party;
the borrowings hereunder; and the use of the proceeds thereof:

(i) Have been duly authorized by all necessary action.

 

44

 

(ii) Do not, and will not, contravene in any material respect any provision of any
Requirement of Law or obligation of the Borrower, except to the extent such contravention
would not have a material adverse effect on the business or assets of the Borrower.

(iii) Will not result in the creation or imposition of, or the obligation to create or
impose, any Encumbrance upon any assets of the Borrower pursuant to any Requirement of Law
or obligation, except pursuant to the Loan Documents.

(g) The Loan Documents have been duly executed and delivered by the Borrower and are the
legal, valid and binding obligations of the Borrower, enforceable against the Borrower in
accordance with their respective terms except as such enforceability may be limited by the effect
of bankruptcy, insolvency, or similar laws affecting creditors’ rights generally or by general
equitable principles.

4-3. Trade Names.

(a) EXHIBIT 4-3, annexed hereto, is a listing of:

(i) All names under which the Borrower ever conducted its business since June 1, 2005.

(ii) All Persons with whom the Borrower, since June 1, 2005, consolidated or merged, or
from whom the Borrower ever acquired in a single transaction or in a series of related
transactions substantially all of such Person’s assets.

(b) The Borrower will provide the Agent with not less than twenty-one (21) days prior written
notice (with reasonable particularity) of any change to the Borrower’s name from that under which
the Borrower is conducting its business at the execution of this Agreement and will not effect such
change unless the Borrower is then in compliance in all material respects with all provisions
of this Agreement.

4-4. Infrastructure.

(a) The Borrower owns and possesses, or has the right to use (and will hereafter own, possess,
or have such right to use) all patents, industrial designs, trademarks, trade names, trade styles,
brand names, service marks, logos, copyrights, trade secrets, know-how, confidential information,
and other intellectual or proprietary property of any third Person necessary for the Borrower’s
conduct of the Borrower’s business, except where the failure to do so would not have a material
adverse effect on the business or assets of the Borrower.

(b) The conduct by the Borrower of the Borrower’s business does not presently infringe (nor
will the Borrower conduct its business in the future so as to infringe) the patents, industrial
designs, trademarks, trade names, trade styles, brand names, service marks, logos, copyrights,
trade secrets, know-how, confidential information, or other intellectual or proprietary property of
any third Person.

 

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4-5. Locations.

(a) The Collateral, and the books, records, and papers of Borrower’s pertaining thereto, are
kept and maintained solely at the following locations:

(i) The Borrower’s chief executive offices which are at 3601 Plains Boulevard,
Amarillo, Texas 79102.

(ii) Those locations which are listed on EXHIBIT 4-5, annexed hereto, which EXHIBIT
includes, with respect to each such location, the name and address of the landlord on the
Lease which covers such location (or an indication that the Borrower owns the subject
location) and of all service bureaus with which any such records are maintained.

(b) The Borrower shall not remove any of the Collateral from said chief executive office or
those locations listed on EXHIBIT 4-5 except for the following purposes:

(i) To accomplish sales or rentals of Inventory in the ordinary course of business.

(ii) To move Inventory from one such location to another such location.

(iii) To utilize such of the Collateral as is removed from such locations in the
ordinary course of business.

(iv) To accomplish other sales and dispositions as are permitted hereunder.

(c) The Borrower will not:

(i) Execute, alter, modify, or amend any Lease after the occurrence of any Event of
Default.

(ii) Commit to, or open or close any location at which the Borrower maintains, offers
for sale, or stores any of the Collateral, except that upon notice to and consent of the
Agent and provided that no Event of Default then exists, the Borrower may:

(A) Acquire one or more new store locations.

(B) Close one or more store locations.

(d) Except as otherwise disclosed pursuant to, or permitted by, this Section 4-5, no tangible
personal property of the Borrower is in the care or custody of any third party or stored or
entrusted with a bailee or other third party and none shall hereafter be placed under such care,
custody, storage, or entrustment.

 

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4-6. Title to Assets.

(a) The Borrower is, and shall hereafter remain, the owner of the Collateral free and clear of
all Encumbrances with the exceptions of the following (the “Permitted Encumbrances”):

(i) Encumbrances in favor of the Agent.

(ii) Liens securing the payment of taxes, either not yet overdue or the validity of
which are being contested in good faith by appropriate proceedings and provided that no lien
has been filed in respect thereof.

(iii) Non-consensual statutory liens (other than liens securing the payment of taxes)
arising in the ordinary course of the Borrower’s business to the extent: such liens secure
obligations which are not overdue or such liens secure obligations relating to claims or
liabilities which are fully insured (subject to commercially reasonable deductibles) and are
being defended at the sole cost and expense and at the sole risk of the insurer or are being
contested in good faith by appropriate proceedings diligently pursued and available to the
Borrower, in each instance prior to the commencement of foreclosure or other similar
proceedings and with respect to which adequate reserves have been set aside on the
Borrower’s books.

(iv) Carriers’, warehousemen’s, materialmen’s, mechanics, repairmen’s or similar liens
incurred in the ordinary course of business.

(v) Purchase money security interests in equipment securing obligations not in excess
of $10 Million unpaid principal balance outstanding at any one time on account of the
purchase of new equipment.

(vi) Zoning restrictions, easements, licenses, covenants and other restrictions
affecting the use of real property.

(vii) Deposits under workmen’s compensation, unemployment insurance, pensions, and
other employee benefits, and social security laws, or to secure the performance of bids,
tenders, contracts (other than for the repayment of borrowed money) or leases, or to secure
statutory obligations or surety or appeal bonds, or to secure indemnity, performance or
other similar bonds arising in the ordinary course of business.

(viii) Landlord’s liens by operation of law where waivers thereof have not been
obtained.

(ix) Interests of lessors under Capital Leases.

(x) Liens consisting of security deposits made by the Borrower.

(xi) Those Encumbrances (if any) listed on EXHIBIT 4-6, annexed hereto.

(b) The Borrower does not, and shall not, have possession of any property on consignment to
the Borrower having a Cost aggregating more than $600,000.00 at any one time.

 

47

 

(c) The Borrower shall not acquire or obtain the right to use any Equipment, the acquisition
or right to use of which Equipment is otherwise permitted by this Agreement, in which Equipment any
third party has an interest, except for:

(i) Equipment which is merely incidental to the conduct of the Borrower’s business.

(ii) Equipment, the acquisition or right to use of which has been consented to by the
Agent, which consent may be conditioned upon the Agent’s receipt of such agreement with the
third party which has an interest in such Equipment as is satisfactory to the Agent.

4-7. Indebtedness. The Borrower does not and shall not hereafter have any Indebtedness with the exceptions of:

(a) Any Indebtedness on account of the Liabilities.

(b) The Indebtedness (if any) listed on EXHIBIT 4-7, annexed hereto and all renewals,
extensions, refinancings, and modifications (but not increases) thereof.

(c) Current liabilities for taxes incurred in the ordinary course of business which are not
yet due and payable or which are being contested in good faith by appropriate proceedings for which
adequate reserves, if required by GAAP, have been established.

(d) Trade payables arising in the ordinary course of business (i) that are paid within the
earlier of (A) 60 days of the date when payment thereof is due and payable and (B) 180 days of the
date the respective goods are delivered or services are rendered or (ii) which are being contested
in good faith by appropriate proceedings for which adequate reserves, if required by GAAP, have
been established.

(e) Purchase money Indebtedness for equipment purchases which does not exceed, in aggregate,
$10,000,000 principal outstanding at any one time.

4-8. Insurance.

(a) EXHIBIT 4-8, annexed hereto, is a schedule of all insurance policies owned by the Borrower
or under which the Borrower is the named insured. Each of such policies is in full force and
effect. Neither the Borrower nor, to the Borrower’s knowledge, the issuer of any such policy is in
default or violation of any such policy.

(b) The Borrower shall have and maintain at all times from responsible companies insurance
covering such risks, in such amounts, containing such terms, in such form, for such periods, and
written by such companies as may be reasonably satisfactory to the Agent.

(c) All insurance carried by the Borrower shall provide for a minimum of thirty (30) days’
written notice of cancellation to the Agent and all such insurance which covers the Collateral
shall include an endorsement in favor of the Agent, which endorsement shall provide that the
insurance, to the extent of the Agent’s interest therein, shall not be impaired or invalidated, in
whole or in part, by reason of any act or neglect of the Borrower or by the failure of the Borrower
to comply with any warranty or condition of the policy.

 

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(d) The coverage reflected on EXHIBIT 4-8 presently satisfies the foregoing requirements, it
being recognized by the Borrower, however, that such requirements may change hereafter to reflect
changing circumstances.

(e) The Borrower shall furnish the Agent from time to time with certificates or other evidence
reasonably satisfactory to the Agent regarding compliance by the Borrower with the foregoing
requirements.

(f) In the event of the failure by the Borrower to maintain insurance as required herein, the
Agent, at its option, may obtain such insurance, provided, however, the Agent’s obtaining of such
insurance shall not constitute a cure or waiver of any Event of Default occasioned by the
Borrower’s failure to have maintained such insurance.

4-9. Licenses. Each license, distributorship, franchise, and similar agreement issued to, or to which the
Borrower is a party is in full force and effect, except where the failure to do so would not have a
material adverse effect on the business or assets of the Borrower. To the Borrower’s knowledge, no
party to any such license or agreement is in default or violation thereof. The Borrower has not
received any notice or threat of cancellation of any such license or agreement.

4-10. Leases. EXHIBIT 4-10, annexed hereto, is a schedule of all presently effective Capital Leases. To
the Borrower’s knowledge, each of such Capital Leases is in full force and effect. To the
Borrower’s knowledge, no party to any Lease or Capital Lease is in default or violation of any such
Lease or Capital Lease. The Borrower has not received any notice or threat of cancellation of any
such Lease or Capital Lease. The Borrower hereby authorizes the Agent at any time and from time
to time, after the occurrence of an Event of Default, to contact any of the Borrower’s landlords
in order to confirm the Borrower’s continued compliance with the terms and conditions of the
Lease(s) between the Borrower and that landlord and to discuss such issues, concerning the
Borrower’s occupancy under such Lease(s), as the Agent may determine.

4-11. Requirements of Law. The Borrower is in compliance with, and shall hereafter comply with and use its assets in
compliance with, all Requirements of Law except where the failure of such compliance would not have
a material adverse effect on the Borrower’s business or assets. The Borrower has not received any
notice of any violation of any Requirement of Law (other than of a violation which would not have a
material adverse effect on the Borrower’s business or assets), which violation has not been cured
or otherwise remedied.

 

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4-12. Labor Relations.

(a) The Borrower has not been and is not presently a party to any collective bargaining or
other labor contract.

(b) There is not presently pending and, to the Borrower’s knowledge, there is not threatened
any of the following:

(i) Any strike, slowdown, picketing, work stoppage, or employee grievance process.

(ii) Any proceeding against or affecting the Borrower relating to the alleged violation
of any Applicable Law pertaining to labor relations or before the National Labor Relations
Board, the Equal Employment Opportunity Commission, or any comparable governmental body,
organizational activity, or other labor or employment dispute against or affecting the
Borrower, which, if determined adversely to the Borrower could reasonably be expected to
have a material adverse effect on the business or assets of the Borrower.

(iii) Any lockout of any employees by the Borrower (and no such action is contemplated
by the Borrower).

(iv) Any application for the certification of a collective bargaining agent.

(c) No event has occurred or circumstance exists which could reasonably be expected to provide
the basis for any work stoppage or other labor dispute.

(d) The Borrower:

(i) Has complied in all material respects with all Applicable Law relating to
employment, equal employment opportunity, nondiscrimination, immigration, wages, hours,
benefits, collective bargaining, the payment of social security and similar taxes,
occupational safety and health, and plant closing.

(ii) Is not liable for the payment of compensation, damages, taxes, fines, penalties,
or other amounts, however designated, for the Borrower’s failure to comply with any
Applicable Law referenced in Section 4-12(d)(i), the amount of which would have a material
adverse effect on the business or assets of the Borrower.

4-13. Maintain Properties. The Borrower shall:

(a) Keep the Collateral in good order and repair (ordinary reasonable wear and tear and
insured casualty excepted).

(b) Not suffer or cause the waste or destruction of any material part of the Collateral.

 

50

 

(c) Not use any of the Collateral in violation of any policy of insurance thereon.

(d) Not sell, lease, or otherwise dispose of any of the Collateral, other than the following:

(i) The sale or rental of Inventory in compliance with this Agreement.

(ii) The disposal of Equipment which is obsolete, worn out, or damaged beyond repair,
which Equipment is replaced to the extent necessary to preserve or improve the operating
efficiency of the Borrower.

(iii) The turning over to the Agent of all Receipts as provided herein.

(iv) The sales of previously viewed movies and games.

(v) The sales of fixed assets (which shall not include sale of previously viewed movies
and games) during each Fiscal year which have an aggregate book value not in excess of 10%
of the book value of the Borrower’s total fixed assets as of the beginning of such Fiscal
year.

4-14. Taxes.

(a) With respect to the Borrower’s federal, state, and local tax liability and obligations:

(i) The Borrower, in compliance with all Applicable Law, has properly filed all returns
due to be filed up to the date of this Agreement, except to the extent any failure to file
would not have a material adverse effect on the business or assets of the Borrower.

(ii) Except as described on EXHIBIT 4-14:

(A) The Borrower has not received from any taxing authority any request to
perform any examination of or with respect to the Borrower nor any other written or
verbal notice in any way relating to any claimed failure by the Borrower to comply
with all Applicable Law concerning payment of any taxes or other amounts in the
nature of taxes, in each case that has not been resolved.

(B) No agreement is extant which waives or extends any statute of limitations
applicable to the right of any taxing authority to assert a deficiency or make any
other claim for or in respect to federal income taxes.

(C) No issue has been raised in any tax examination of the Borrower which, by
application of similar principles, reasonably could be expected to result in the
assertion by any taxing authority of a material deficiency for any Fiscal year open
for examination, assessment, or claim.

 

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(b) The Borrower has, and hereafter shall: pay, as they become due and payable, all taxes and
unemployment contributions and other charges of any kind or nature levied, assessed or claimed
against the Borrower or the Collateral by any person or entity, except those taxes, contributions
and charges that are being contested in good faith by appropriate proceedings for which adequate
reserves, if required by GAAP, have been established, and provided that no lien has been filed in
respect thereto, properly exercise any trust responsibilities imposed upon the Borrower by reason
of withholding from employees’ pay or by reason of the Borrower’s receipt of sales tax or other
funds for the account of any third party; timely make all contributions and other payments as may
be required pursuant to any Employee Benefit Plan now or hereafter established by the Borrower; and
timely file all tax and other returns and other reports with each governmental authority to whom
the Borrower is obligated to so file, except where the failure to file would not have a material
adverse effect on the business or assets of the Borrower.

4-15. No Margin Stock. The Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying any margin stock (within the meaning of Regulations U, T, and X of the Board
of Governors of the Federal Reserve System of the United States). No part of the proceeds of any
borrowing hereunder will be used at any time to purchase or carry any such margin stock or to
extend credit to others for the purpose of purchasing or carrying any such margin stock.

4-16. ERISA.

(a) Except as disclosed on EXHIBIT 4-16(a), annexed hereto, neither the Borrower nor any ERISA
Affiliate is aware of or has knowingly:

(i) Violated or failed to be in full compliance with the Borrower’s Employee Benefit
Plan.

(ii) Failed timely to file all reports and filings required by ERISA to be filed by the
Borrower.

(iii) Engaged in any nonexempt “prohibited transactions” or “reportable events”
(respectively as described in ERISA).

(iv) Engaged in, or committed, any act such that a tax or penalty reasonably could be
imposed upon the Borrower on account thereof pursuant to ERISA, which tax or penalty would
have a material adverse effect on the business or assets of the Borrower.

(v) Accumulated any material cumulative funding deficiency within the meaning of ERISA.

(vi) Terminated any Employee Benefit Plan such that a lien could be asserted against
any assets of the Borrower on account thereof pursuant to ERISA.

 

52

 

(vii) Been a member of, contributed to, or have any obligation under any Employee
Benefit Plan which is a multiemployer plan within the meaning of Section 4001(a) of ERISA.

(b) Neither the Borrower nor any ERISA Affiliate shall ever knowingly or intentionally engage
in any action of the type described in Section 4-16(a).

4-17. Hazardous Materials.

(a) To the best of the Borrower’s knowledge the Borrower has never: (i) been legally
responsible for any release or threat of release of any Hazardous Material or (ii) received
notification of the incurrence of any material expense in connection with the assessment,
containment, or removal of any Hazardous Material for which the Borrower would be responsible.

(b) The Borrower shall: (i) dispose of any Hazardous Material only in compliance with all
Environmental Laws and (ii) have possession of any Hazardous Material only in the ordinary course
of the Borrower’s business and in compliance with all Environmental Laws.

4-18. Litigation. Except as described in EXHIBIT 4-18, annexed hereto, there is not presently pending or, to
the knowledge of the Borrower, threatened by or against the Borrower any suit, action, proceeding,
or investigation which, if determined adversely to the Borrower, would have a material adverse
effect upon the Borrower’s financial condition or ability to conduct its business as such business
is presently conducted or is contemplated to be conducted in the foreseeable future.

4-19. Dividends, Investments, Corporate Action. The Borrower shall not:

(a) Pay any cash dividend or make any other distribution in respect of any class of the
Borrower’s capital stock.

(b) (i) Own, redeem, retire, purchase, repurchase, or acquire any of the Borrower’s capital
stock, provided that (A) if, after giving effect to each such transaction, the Pro Forma
Availability Condition is satisfied, the Borrower may redeem, retire, purchase, repurchase, or
acquire the Borrower’s capital stock provided that the amount of consideration paid for all such
transactions after the date hereof shall not exceed $10,000,000 in the aggregate unless the
provisions of subsection (B) of this clause (b)(i) are satisfied, or (B) if, after giving effect to
each such transaction, the Payment Conditions are satisfied, the Borrower may redeem, retire,
purchase, repurchase, or acquire the Borrower’s capital stock without any limitation on the
aggregate consideration paid; and

(ii) Borrower may repurchase stock options issued under the Borrower’s employee stock option
plan for non-cash consideration consisting of restricted stock of the Borrower.

 

53

 

(c) Invest in or purchase any stock or securities or rights to purchase any such stock or
securities, of any Person.

(d) Merge or consolidate or be merged or consolidated with or into any other corporation or
other entity, provided, that a subsidiary of the Borrower may merge or consolidate into the
Borrower.

(e) Consolidate any of the Borrower’s operations with those of any other Person, other than a
subsidiary of the Borrower.

(f) Organize or create any Subsidiary, without notifying the Agent, and contemporaneously with
such formation, causing such Subsidiary to execute (i) an Unconditional and Unlimited Guaranty of
all of the Borrower’s Liabilities, substantially in the form of the guaranty agreement executed on
August 29, 2000 by the Borrower’s existing Subsidiary, and (ii) a Security Agreement granting to
the Agent a first perfected interest in its business assets, substantially in the form of the
security agreement executed on August 17, 2006 by the Borrower’s existing Subsidiary.

(g) Subordinate any debts or obligations owed to the Borrower by any third party to any other
debts owed by such third party to any other Person.

(h) Acquire any assets other than in the ordinary course and conduct of the Borrower’s
business as conducted at the execution of this Agreement.

4-20. Loans. The Borrower shall not make any loans or advances to, nor acquire the Indebtedness of, any
Person, provided, however, the foregoing does not prohibit any of the following:

(a) Advance payments made to the Borrower’s suppliers in the ordinary course.

(b) Advances to the Borrower’s officers, employees, and salespersons with respect to
reasonable expenses to be incurred by such officers, employees, and salespersons for the benefit of
the Borrower, which expenses are properly substantiated by the person seeking such advance and
properly reimbursable by the Borrower.

(c) Advances and loans to the Borrower’s Subsidiaries.

4-21. Protection of Assets. The Agent, in the Agent’s reasonable discretion, and from time to time, may
discharge any tax or Encumbrance on any of the Collateral, or take any other action which the Agent
may deem reasonably necessary to repair, insure, maintain, preserve, collect, or realize upon any
of the Collateral. The Agent shall not have any obligation to undertake any of the foregoing and
shall have no liability on account of any action so undertaken except where there is a specific
finding in a judicial proceeding (in which the Agent has had an opportunity to be heard), from
which finding no further appeal is available, that the Agent had acted in actual bad faith or in a
grossly negligent manner. The Borrower shall pay to the Agent, on demand, or the Agent, in its
discretion, may add to the Loan Account, all amounts paid or incurred by the Agent pursuant to this
Section 4-21.

 

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4-22. Line of Business. The Borrower shall not engage in any business other than the business in which it is
currently engaged or a business reasonably related thereto (the conduct of which reasonably related
business is reflected in the Business Plan).

4-23. Affiliate Transactions. The Borrower shall not enter into any transaction with any Affiliate, other then
transactions in the ordinary course of business which are on fair and reasonable terms, no less
favorable to the Borrower than those which would have been imposed in a comparable arms length
transaction with a person who is not an Affiliate.

4-24. Further Assurances.

(a) The Borrower is not the owner of, nor has it any interest in, any property or asset (other
than any Exempt Asset) which, immediately upon the satisfaction of the conditions precedent to the
effectiveness of the credit facility contemplated hereby (Article 3) will not be subject to a
perfected Collateral Interest in favor of the Agent (subject only to Permitted Encumbrances) to
secure the Liabilities.

(b) The Borrower will not hereafter acquire any asset or any interest in property (other than
any Exempt Asset) which is not, immediately upon such acquisition, subject to such a perfected
Collateral Interest in favor of the Agent to secure the Liabilities (subject only to Permitted
Encumbrances).

(c) The Borrower shall execute and deliver to the Agent such instruments, documents, and
papers, and shall do all such things from time to time hereafter as the Agent may reasonably
request to carry into effect the provisions and intent of this Agreement; to protect and perfect
the Agent’s Collateral Interests in the Collateral; and to facilitate the collection of the
Receivables Collateral. The Borrower shall execute all such instruments as may be reasonably
required by the Agent with respect to the recordation and/or perfection of the Collateral Interests
created or contemplated herein.

(d) The Borrower hereby designates the Agent as and for the Borrower’s true and lawful
attorney, with full power of substitution, to sign and file any financing statements in order to
perfect the Agent’s Collateral Interests in the Collateral.

(e) The Borrower hereby authorizes the Agent to file such financing statements as the Agent
determines as appropriate to perfect or protect the Agent’s Collateral Interests in the Collateral.

 

55

 

(f) A carbon, photographic, or other reproduction of this Agreement or of any financing
statement or other instrument executed pursuant to this Section 4-24 shall be sufficient for filing
to perfect the security interests granted herein.

4-25. Adequacy of Disclosure.

(a) All financial statements furnished to the Agent and to each Revolving Credit Lender by the
Borrower have been prepared in accordance with GAAP consistently applied and present fairly in all
material respects the financial condition of the Borrower at the date(s) thereof and the results of
operations and cash flows for the period(s) covered (provided however, that unaudited financial
statements are subject to normal year end adjustments and to the absence of footnotes). There has
been no change in the financial condition, results of operations, or cash flows of the Borrower
since the date(s) of such financial statements, other than changes in the ordinary course of
business, which changes have not been materially adverse, either singularly or in the aggregate.

(b) The Borrower does not have any contingent obligations or obligation under any Lease or
Capital Lease which is required to be reflected in financial statements prepared in accordance with
GAAP and that is not noted in the Borrower’s financial statements furnished to the Agent prior to
the execution of this Agreement.

(c) To the Borrower’s knowledge, no document, instrument, agreement, or paper now or hereafter
given to the Agent and to each Revolving Credit Lender by or on behalf of the Borrower or any
guarantor of the Liabilities in connection with the execution of this Agreement by the Agent and to
each Revolving Credit Lender contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact necessary in order to make the statements therein not
misleading. There is no fact known to the Borrower which has, or which, in the foreseeable future
could reasonably be expected to have, a material adverse effect on the financial condition of the
Borrower or any such guarantor which has not been disclosed in writing to the Agent and to each
Revolving Credit Lender.

4-26. No Restrictions on Liabilities. The Borrower shall not enter into or directly or indirectly become subject to any agreement
which prohibits or restricts, in any manner, the Borrower’s:

(a) Creation of, and granting of Collateral Interests in favor of the Agent.

(b) Incurrence of Liabilities.

4-27. Other Covenants. The Borrower shall not indirectly do or cause to be done any act which, if done directly by
the Borrower, would breach any covenant contained in this Agreement.

 

56

 

ARTICLE 5 — Financial Reporting and Performance Covenants:

5-1. Maintain Records. The Borrower shall:

(a) At all times, keep proper books of account, in which full, true, and accurate entries
shall be made of all of the Borrower’s financial transactions, all in accordance with GAAP applied
consistently with prior periods to fairly reflect in all material respects the financial condition
of the Borrower at the close of, and its results of operations for, the periods in question.

(b) Timely provide the Agent with those financial reports, statements, and schedules required
by this Article 5 or otherwise, each of which reports, statements and schedules shall be prepared,
to the extent applicable, in accordance with GAAP applied consistently with prior periods to fairly
reflect in all material respects the financial condition of the Borrower at the close of, and the
results of operations for, the period(s) covered therein.

(c) At all times, keep accurate current records of the Collateral including, without
limitation, accurate current stock, cost, and sales records of its Inventory, accurately and
sufficiently itemizing and describing the kinds, types, and quantities of Inventory and the cost
and selling prices thereof.

(d) At all times, retain an independent registered public accounting firm which is reasonably
satisfactory to the Agent and instruct such accountants to discuss with the Agent the Borrower’s
financial performance, financial condition, operating results, controls, and such other matters,
within the scope of the retention of such accountants (and subject to work product and
accountant/client privileged information), as may be requested by the Agent.

(e) Not change the Borrower’s Fiscal year.

5-2. Access to Records.

(a) The Borrower shall accord the Agent with access from time to time as the Agent may require
to all properties owned by or over which the Borrower has control. The Agent shall have the right,
and the Borrower will permit the Agent from time to time as Agent may reasonably request, to
examine, inspect, copy, and make extracts from any and all of the Borrower’s books, records,
electronically stored data, papers, and files. The Borrower shall make all of the Borrower’s
copying facilities available to the Agent.

(b) The Borrower hereby authorizes the Agent to:

(i) Inspect, copy, duplicate, review, cause to be reduced to hard copy, run off, draw
off, and otherwise use any and all computer or electronically stored information or data
which relates to the Borrower, of the Borrower, or any service bureau, contractor,
accountant, or other person, and directs any such service bureau, contractor, accountant, or
other person fully to cooperate with the Agent with respect thereto.

 

57

 

(ii) Verify at any time the Collateral or any portion thereof, including verification
with Account Debtors, and/or with the Borrower’s computer billing companies, collection
agencies, and accountants and to sign the name of the Borrower on any notice to the
Borrower’s Account Debtors or verification of the Collateral.

(c) The Agent from time to time may designate one or more representatives to exercise the
Agent’s rights under this Section 5-2 as fully as if the Agent were doing so.

5-3. Prompt Notice to Agent.

(a) The Borrower shall provide the Agent with written notice promptly upon the occurrence of
any of the following events, which written notice shall be with reasonable particularity as to the
facts and circumstances in respect of which such notice is being given:

(i) Any change in the Borrower’s President and chief financial officer.

(ii) Any ceasing of the Borrower’s making of payment, in the ordinary course, to any of
its creditors (other than its ceasing of making of such payments on account of a de minimis
dispute).

(iii) Any failure by the Borrower to pay rent at any of the Borrower’s locations, which
failure continues for more than three (3) days following the last day on which such rent was
payable (including any grace periods therefor) without more than a de minimis adverse effect
to the Borrower.

(iv) Any material adverse change in the business, operations, or financial condition of
the Borrower.

(v) The Borrower’s becoming InDefault.

(vi) Any intention on the part of the Borrower to discharge the Borrower’s present
independent registered public accounting firm or any withdrawal or resignation by such
independent registered public accounting firm from their acting in such capacity (as to
which, see Subsection 5-1(d)).

(vii) Any litigation which, if determined adversely to the Borrower, might reasonably
be expected to have a material adverse effect on the financial condition of the Borrower.

(b) The Borrower shall:

(i) Provide the Agent, when so distributed, with copies of any materials distributed to
the shareholders of the Borrower (qua such shareholders).

 

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(ii) Provide the Agent:

(A) When filed, copies of the Borrower’s Form 10-K, Form 8-K, Form 10-Q and
Form 14A filed with the SEC.

(B) When received, copies of all correspondence from the SEC, other than
routine non-substantive general communications from the SEC.

(iii) Provide the Agent, when received by the Borrower, with a copy of any management
letter or similar communications from any accountant of the Borrower.

5-4. Borrowing Base Certificate. The Borrower shall provide the Agent by 11:30 a.m. Central time, on the fifteenth day of
each Fiscal month, with a Borrowing Base Certificate (in the form of EXHIBIT 5-4 annexed hereto, as
such form may be revised from time to time by the Agent (the “Borrowing Base Certificate”)).
Notwithstanding the foregoing, if an Increased Reporting Event has occurred and is continuing,
instead of providing the Agent with a Borrowing Base Certificate on a monthly basis, the Borrower
shall provide the Agent with a Borrowing Base Certificate on a weekly basis, on Wednesday of each
week (as of the immediately preceding Saturday), commencing with the week in which the Increased
Reporting Event occurs. The Agent acknowledges that so long as the Borrower is required to provide
such information to the Agent on a weekly basis, the Borrower will be providing such weekly
information based upon its good faith estimates of its Inventory (except for the information
provided for the final week of each Fiscal month, which shall not be based upon estimates);
provided, however, the Borrower acknowledges and agrees with the Agent that the Borrower shall use
its best efforts and good faith to provide the Agent with as accurate information as possible for
such weekly Borrowing Base Certificates. Such Certificate may be sent to the Agent by facsimile
transmission, electronic mail transmission, or may otherwise be posted on a secure Internet or
intranet website, if any, to which the Agent and Lenders have access, provided that the original
thereof is forwarded to the Agent on the date of such transmission.

5-5. Monthly Reports.

(a) Monthly, the Borrower shall provide the Agent with original counterparts of the following
(each in such form as the Agent from time to time may reasonably specify):

(i) Within fifteen (15) days of the end of the previous Fiscal month:

(A) A report generated by the Borrower’s inventory control system, which report
reflects the functional equivalent of a stock ledger inventory.

(B) An Inventory Certificate (signed by the Borrower’s President or Chief
Financial Officer or Vice President-Finance).

(C) By Department Inventory Report

 

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(D) Distribution Center Inventory Report (By Department).

(E) Return Center Inventory Report (By Department).

(F) Notwithstanding the foregoing, if an Increased Reporting Event has occurred
and is continuing, instead of providing the Agent with the information required by
this subsection 5-5(a)(i)(A),(B), (C),(D) and (E) on a monthly basis, the Borrower
shall provide the Agent with such information on a weekly basis, on Wednesday of
each week (as of the immediately preceding Saturday), commencing with the week in
which the Increased Reporting Event occurs. The Agent acknowledges that so long as
the Borrower is required to provide such information to the Agent on a weekly basis,
the Borrower will be providing such weekly information based upon its good faith
estimates (except for the information provided for the final week of each Fiscal
month, which shall not be based upon estimates); provided, however, the Borrower
acknowledges and agrees with the Agent that the Borrower shall use its best efforts
and good faith to provide the Agent with as accurate information as possible for
such weekly reports. The weekly report required to be delivered by the Borrower to
the Agent for the final week of each Fiscal month while the provisions of this
paragraph are in effect shall provide, in addition to the information required by
this subsection 5-5(a)(i)(A), (B), (C), (D) and (E), a reconciliation of any
discrepancies in the information which was previously provided to the Agent in the
prior weekly reports for such Fiscal month.

(ii) Within thirty (30) days of the end of the previous Fiscal month:

(A) Reconciliation of the above described Report and Inventory Certificate
(Section 5-5(a)(i)(A)) to Availability and to the general ledger as of the end of
the subject month.

(B) A schedule of purchases from the Borrower’s twenty largest vendors (in
terms of year to date purchases), which schedule shall be in such form as may be
satisfactory to the Agent and shall include year to date cumulative purchases.

(C) A summary aging of the Borrower’s accounts payable by vendor type.

(D) A Store Activity Report.

(E) The officer’s compliance certificate described in Section 5-8.

(F) An internally prepared consolidated financial statement of the financial
condition of the Borrower and its Subsidiaries and the results of operations for,
the period ending with the end of the subject month, which financial statement shall
include, at a minimum, a balance sheet, income statement, cash flow and comparison
of total same store sales detailed by merchandise and rental for the corresponding
month of the then immediately previous year, as well as to the Business Plan.

 

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(b) For purposes of Sections 5-5(a)(i), above, and 5-5(a)(ii), above, the first “previous
month” in respect of which the items respectively required by those Sections shall be the month
prior to that which dates this Agreement, except that the first group of items required to be
provided pursuant to Section 5-5(a)(i) shall be included with those provided pursuant to Section
5-5(a)(ii); thereafter, those items shall be provided in accordance with the requirements of
Section 5-5(a)(i).

5-6. Quarterly Reports. Quarterly, within forty-five (45) days following the end of each of the Borrower’s Fiscal
quarters, the Borrower shall provide the Agent with the following:

(a) A copy of the management prepared consolidated financial statement of the Borrower and its
Subsidiaries for the period from the beginning of the Borrower’s then current Fiscal year through
the end of the subject quarter, with comparative information for the same period of the previous
Fiscal year, which statement shall include, at a minimum, a balance sheet, income statement,
statement of changes in shareholders’ equity, and cash flows and comparisons for the corresponding
quarter of the then immediately previous year, as well as to the Business Plan.

(b) The officer’s compliance certificate described in Section 5-8

(c) Store specific EBITDA.

(d) A schedule of any DDAs that have been opened in the previous Fiscal quarter, which shall
include, with respect to each depository: (i) the name and address of that depository; (ii) the
account number(s) of the account(s) maintained with such depository; and (iii) a contact person at
such depository.

5-7. Annual Reports.

Annually, within ninety (90) days following the end of the Borrower’s Fiscal year, the
Borrower shall furnish the Agent with the following:

(i) A copy of the annual consolidated financial statement for the Borrower and its
Subsidiaries, which statement shall have been prepared by, and bear the unqualified opinion
of, the Borrower’s independent registered public accounting firm (i.e. said statement shall
be “certified” by such accountants) and shall include, at a minimum (with comparative
information for the then prior Fiscal year) a balance sheet, income statement, statement of
changes in shareholders’ equity, and cash flows.

(ii)
The officer’s compliance certificate described in Section 5-8.

 

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5-8. Officers’ Certificates. The Borrower shall cause either the Borrower’s President or its Chief Financial Officer or
Vice President-Finance, in each instance, to provide a Certificate with those monthly statements
required pursuant to Section 5-5(a)(ii), quarterly, and annual statements to be furnished pursuant
to this Agreement, which Certificate shall:

(a) Indicate that the subject statement was prepared in accordance with GAAP consistently
applied and presents fairly in all material respects the consolidated financial condition of the
Borrower and its Subsidiaries at the close of, and the consolidated results of the Borrower’s and
its Subsidiaries’ operations and cash flows for, the period(s) covered, subject, however to the
following:

(i) Usual year end adjustments (this exception shall not be included in the Certificate
which accompanies such annual statement).

(ii) Material Accounting Changes (in which event, such Certificate shall include a
schedule (in reasonable detail) of the effect of each such Material Accounting Change) not
previously specifically taken into account in the determination of the financial performance
covenant imposed pursuant to Section 5-11.

(b) Indicate either that (i) the Borrower is not InDefault, or (ii) if such an event has
occurred, its nature (in reasonable detail) and the steps (if any) being taken or contemplated by
the Borrower to be taken on account thereof.

(c) Include calculations concerning the Borrower’s compliance (or failure to comply) at the
date of the subject statement with each of the financial performance covenants included in Section
5-11 hereof.

5-9. Inventories, Appraisals, and Audits.

(a) The Agent, at the expense of the Borrower, may participate in and/or observe each internal
cycle count and/or inventory of so much of the Collateral as consists of Inventory which is
undertaken on behalf of the Borrower.

(b) The Borrower, at its own expense, shall conduct regular cycle inventory counts that
determine total inventory value at least twice at each of its locations in each twelve (12) month
period during which this Agreement is in effect (the spacing of the scheduling of which inventories
shall be
subject to the Agent’s discretion) conducted by such inventory takers as are satisfactory to
the Agent and following such methodology as may be satisfactory to the Agent.

(i) The Borrower shall provide the Agent with a copy of the preliminary results of each
such inventory (as well as of any other physical inventory undertaken by the Borrower)
within ten (10) days following the completion of such inventory.

 

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(ii) The Borrower, within thirty (30) days following the completion of such inventory,
shall provide the Agent with a reconciliation of the results of each such inventory (as well
as of any other physical inventory undertaken by the Borrower) and shall post such results
to the Borrower’s By-Department monthly report generated by the Borrower’s inventory control
system and, as applicable to the Borrower’s other financial books and records.

(iii) The Agent, in its discretion, if the Borrower is InDefault, may cause such
additional inventories to be taken as the Agent determines (each, at the expense of the
Borrower).

(c) Upon the request of the Agent after reasonable prior notice, the Borrower shall permit,
and cooperate with, the Agent or professionals (including appraisers) retained by the Agent to
conduct appraisals of the Collateral, including, without limitation, the assets included in the
Borrowing Base. The Borrower shall pay the fees and expenses of the Agent and such professionals
with respect to such appraisals. Without limiting the foregoing, the Borrower acknowledges that
the Agent may, in its discretion, undertake up to two (2) appraisals in any Fiscal year at the
Borrower’s expense, provided that during the continuance of an Increased Reporting Event arising as
a result of the Borrower’s failure to maintain the required Availability, the Agent may undertake
up to three (3) appraisals in any Fiscal year at the Borrower’s expense Notwithstanding the
foregoing, the Agent may cause additional appraisals to be undertaken (i) as it in its discretion
deems necessary or appropriate, at its own expense or, (ii) if required by Applicable Law or if the
Borrower is InDefault, at the expense of the Borrower.

(d) Upon the request of the Agent after reasonable prior notice, the Borrower shall permit,
and cooperate with, the Agent or professionals (including investment bankers, consultants,
accountants, and lawyers) retained by the Agent to conduct commercial finance examinations and
other evaluations, including, without limitation, of (i) the Borrower’s practices in the
computation of the Borrowing Base and (ii) the assets included in the Borrowing Base and related
financial information such as, but not limited to, sales, gross margins, payables, accruals and
reserves. The Borrower shall pay the fees and expenses of the Agent and such professionals with
respect to such examinations and evaluations. Without limiting the foregoing, the Borrower
acknowledges that the Agent may, in its discretion, undertake up to two (2) commercial finance
examinations in any Fiscal year at the Borrower’s expense, provided that during the continuance of
an Increased Reporting Event arising as a result of the Borrower’s failure to maintain the required
Availability, the Agent may undertake up to three (3) commercial finance
examinations in any Fiscal year at the Borrower’s expense. Notwithstanding the foregoing, the
Agent may cause additional commercial finance examinations to be undertaken (i) as it in its
discretion deems necessary or appropriate, at its own expense or, (ii) if required by Applicable
Law or if the Borrower is InDefault, at the expense of the Borrower.

 

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(e) The Agent from time to time (in all events, at the Borrower’s expense) may undertake
“mystery shopping” (so-called) visits to all or any of the Borrower’s business premises.

5-10. Additional Financial Information.

(a) In addition to all other information required to be provided pursuant to this Article 5,
the Borrower promptly shall provide the Agent with such other and additional information concerning
the Borrower, the Collateral, the operation of the Borrower’s business, and the Borrower’s
financial condition, including original counterparts of financial reports and statements, as the
Agent may from time to time reasonably request from the Borrower.

(b) The Borrower may provide the Agent, from time to time hereafter, with updated forecasts of
the Borrower’s anticipated performance and operating results.

(c) In all events, the Borrower, no sooner than ninety (90) nor later than sixty (60) days
prior to the end of each of the Borrower’s Fiscal years, shall provide the Agent with an updated
and extended forecast which shall go out at least through the end of the then next Fiscal year and
shall include an income statement, balance sheet, and statement of cash flow, by month, each
prepared in conformity with GAAP and consistent with the Borrower’s then current practices.

(d) The Borrower recognizes that all appraisals, inventories, analysis, financial information,
and other materials which the Agent may obtain, develop, or receive with respect to the Borrower
are confidential to the Agent and that, except as otherwise provided herein, the Borrower is not
entitled to receipt of any of such appraisals, inventories, analysis, financial information, and
other materials, nor copies or extracts thereof or therefrom.

(e) The Borrower’s Business Plan has been delivered to the Agent.

5-11. Financial Performance Covenant. The Borrower shall maintain Availability of not less than $10 Million at all times.

ARTICLE 6 — Use of Collateral:

6-1. Use of Inventory Collateral.

(a) The Borrower shall not engage

(i) In any sale of the Inventory other than for fair consideration in the conduct of
the Borrower’s business in the ordinary course.

(ii) Sales or other dispositions to creditors.

(iii) Sales or other dispositions in bulk.

(iv) Sales of any Collateral in breach of any provision of this Agreement.

 

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(b) No sale of Inventory shall be on consignment, approval, or under any other circumstances
such that, with the exception of the Borrower’s customary return policy applicable to the return of
inventory purchased by the Borrower’s retail customers in the ordinary course, such Inventory may
be returned to the Borrower without the consent of the Agent.

6-2. Inventory Quality. All Inventory now owned or hereafter acquired by the Borrower is and will be of good and
merchantable quality and free from defects (other than defects within customary trade tolerances).

6-3. Adjustments and Allowances. The Borrower may grant such allowances or other adjustments to the Borrower’s Account
Debtors as the Borrower may reasonably deem to accord with sound business practice, provided,
however, the authority granted the Borrower pursuant to this Section 6-3 may be limited or
terminated by the Agent at any time after the occurrence of an Event of Default in the Agent’s
discretion.

6-4. Validity of Accounts.

(a) The amount of each Account shown on the books, records, and invoices of the Borrower
represented as owing by each Account Debtor is and will be the correct amount actually owing by
such Account Debtor and shall have been fully earned by performance by the Borrower.

(b) The Borrower has no knowledge of any impairment of the validity or collectibility of any
of the Accounts. The Borrower shall notify the Agent of any such impairment immediately after the
Borrower becomes aware of any such impairment.

6-5. Notification to Account Debtors. The Agent shall have the right after the occurrence of an Event of Default to notify any of
the Borrower’s Account Debtors to make payment directly to the Agent and to collect all amounts due
on account of the Collateral.

ARTICLE
7 — Cash Management, Payment of Liabilities:

7-1. Depository Accounts.

(a) Annexed hereto as EXHIBIT 7-1 is a Schedule of all present DDA’s, which Schedule includes,
with respect to each depository (i) the name and address of that depository; (ii) the account
number(s) of the account(s) maintained with such depository; and (iii) a contact person at such
depository.

(b) The Borrower shall deliver to the Agent, as a condition to the effectiveness of this
Agreement, Blocked Account Agreements with Amarillo National Bank and Bank of America, N.A.

 

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(c) Upon the request of the Agent after the occurrence and during the continuance of a Cash
Dominion Event, to the extent not previously provided, the Borrower shall deliver to the Agent
notifications, executed on behalf of the Borrower, to each depository institution with which any
DDA is maintained (other than any Exempt DDA and the Blocked Account), in form reasonably
satisfactory to the Agent of the Agent’s interest in such DDA.

7-2. Credit Card Receipts.

(a) Annexed hereto as EXHIBIT 7-2, is a Schedule which describes all arrangements to which the
Borrower is a party with respect to the payment to the Borrower of the proceeds of credit card
charges for sales by the Borrower.

(b) To the extent not previously delivered, the Borrower shall deliver to the Agent, as a
condition to the effectiveness of this Agreement, notification, executed on behalf of the Borrower,
to each of the Borrower’s credit card clearinghouses and processors of notice (in form reasonably
satisfactory to the Agent), which notice provides that payment of all credit card charges submitted
by the Borrower to that clearinghouse or other processor and any other amount payable to the
Borrower by such clearinghouse or other processor shall be directed to the Blocked Account (or if
the Borrower prefers to so specify in such notice, to the Concentration Account). The Borrower
shall not change such direction or designation except upon and with the prior written consent of
the Agent.

7-3. The Concentration, Blocked, and Operating Accounts.

(a) The following checking accounts have been or will be established (and are so referred to
herein):

(i) The “Concentration Account” (so referred to herein): Established by the Borrower
with Bank of America.

(ii) The “Blocked Account” (so referred to herein): Established by the Borrower with
Amarillo National Bank.

(iii) The “Operating Account” (so referred to herein): Established by the Borrower
with Amarillo National Bank.

(iv) The “Payroll Account” (so referred to herein) and established by the Borrower with
Amarillo National Bank.

(b) The contents of each DDA (other than the Operating Account and the Payroll Account) and of
the Blocked Account constitutes Collateral and Proceeds of Collateral.

(c) The Borrower shall pay all fees and charges of, and maintain such impressed balances as
may be required by the depository in which any account is opened as required hereby (even if such
account is opened by and/or is the property of the Agent).

 

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7-4. Proceeds and Collections.

(a) All Receipts and all cash proceeds of any sale or other disposition of any of the
Borrower’s assets constitute Collateral and proceeds of Collateral. After the occurrence and
during the continuance of a Cash Dominion Event, all Receipts and all cash proceeds of any sale or
other disposition of any of the Borrower’s assets shall be held in trust by the Borrower for the
Agent; shall not be commingled with any of the Borrower’s other funds, and shall be deposited
and/or transferred only to the Blocked Account or the Concentration Account.

(b) After the occurrence and during the continuance of a Cash Dominion Event, the Borrower
shall cause the ACH or wire transfer to the Blocked Account, no less frequently than daily (and
whether or not there is then an outstanding balance in the Loan Account) of the following:

(i) The then contents of each DDA (other than any Exempt DDA), each such transfer to be
net of any minimum balance, not to exceed $1,500.00 as may be required to be maintained in
the subject DDA by the bank at which such DDA is maintained).

(ii) The proceeds of all credit card charges not otherwise provided for pursuant
hereto.

(c) Whether or not any Liabilities are then outstanding, after the occurrence and during the
continuance of a Cash Dominion Event, the Borrower shall cause the ACH or wire transfer to the
Concentration Account, no less frequently than daily, of the entire ledger balance of the Blocked
Account, net of such minimum balance, not to exceed $1,000.00 as may be required to be maintained
in the Blocked Account by the depository with which the Blocked Account is maintained. Telephone
advice (confirmed by written notice) shall be provided to the Agent on each Business Day on which
any such transfer is made.

(d) In the event that, notwithstanding the provisions of this Section 7-4, after the
occurrence and during the continuance of a Cash Dominion Event, the Borrower receives or otherwise
has dominion and control of any Receipts, or any proceeds or collections of any Collateral, such
Receipts, proceeds, and collections shall be held in trust by the Borrower for the Agent and shall
not be commingled with any of the Borrower’s other funds or deposited in any account of the
Borrower other than the Blocked Account.

7-5. Payment of Liabilities.

(a) On each Business Day during the continuance of a Cash Dominion Event, the Agent shall
apply the then collected balance of the Concentration Account (net of fees charged, and of such
impressed balances as may be required by the bank at which the Concentration Account is maintained,
not to exceed $1,500.00) First, towards the SwingLine Loans and Second, towards the unpaid balance
of the Loan Account and all other Liabilities, provided, however, for purposes of the calculation
of interest on the unpaid principal balance of the Loan Account, such payment shall be deemed to
have been made one (1) Business Day after such transfer.

 

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

(i) Funds shall be deemed to have been deposited to the Concentration Account on the
Business Day on which deposited, provided that notice of such deposit is available to the
Agent by 2:00PM (Boston time) on that Business Day.

(ii) Funds paid to the Agent, other than by deposit to the Concentration Account, shall
be deemed to have been received on the Business Day when they are good and collected funds,
provided that notice of such payment is available to the Agent by 2:00PM (Boston time) on
that Business Day.

(iii) If notice of a deposit to the Concentration Account (Section 7-5(b)(i)) or
payment (Section 7-5(b)(ii)) is not available to the Agent until after 2:00PM (Boston time)
on a Business Day, such deposit or payment shall be deemed to have been made at 9:00AM on
the then next Business Day.

(iv) All deposits to the Concentration Account and other payments to the Agent are
subject to clearance and collection.

(c) The Agent shall transfer to the Operating Account any surplus in the Concentration Account
remaining after the application towards the Liabilities referred to in Section 7-5(a), above, on a
daily basis (less those amounts which are to be netted out, as provided therein) provided, however,
in the event that

(i) the Borrower is InDefault; and

(ii) one or more L/C’s are then outstanding,

then the Agent may establish a funded reserve of up to 110% of the aggregate Stated Amounts of such
L/C’s. Such funded reserve shall either be (i) returned to the Borrower provided that the Borrower
is not InDefault or (ii) applied towards the Liabilities following the occurrence of any Event of
Default described in Section 10-12 or acceleration following the occurrence of any other Event of
Default.

7-6. The Operating Account. Except as otherwise specifically provided in, or permitted by, this Agreement, all checks
shall be drawn by the Borrower upon, and other disbursements shall be made by the Borrower solely
from, the Operating Account or the Payroll Account.

 

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ARTICLE 8 — Grant of Security Interest:

8-1. Grant of Security Interest. To secure the Borrower’s prompt, punctual, and faithful performance of all and each of the
Liabilities, the Borrower hereby grants to the Agent, for the ratable benefit of the Revolving
Credit Lenders, a continuing security interest in and to, and assigns to the Agent, for the ratable
benefit of the Revolving Credit Lenders, the following, and each item thereof, whether now owned or
now due, or in which the Borrower has an interest, or hereafter acquired, arising, or to become
due, or in which the Borrower obtains an interest, and all products, Proceeds, substitutions, and
accessions of or to any of the following (all of which, together with any other property in which
the Agent may in the future be granted a security interest, is referred to herein as the
“Collateral”):

(a) All Accounts and accounts receivable.

(b) All Inventory.

(c) All General Intangibles.

(d) All Equipment.

(e) All Goods.

(f) All Fixtures.

(g) All Chattel Paper.

(h) All Letter-of-Credit Rights.

(i) All Payment Intangibles.

(j) All Supporting Obligations.

(k) All Commercial Tort Claims.

(l) All books, records, and information relating to the Collateral and/or to the operation of
the Borrower’s business, and all rights of access to such books, records, and information, and all
property in which such books, records, and information are stored, recorded, and maintained.

(m) All Investment Property, Instruments, Documents, Deposit Accounts, policies and
certificates of insurance, deposits, impressed accounts, compensating balances, money, cash, or
other property.

(n) All insurance proceeds, refunds, and premium rebates, including, without limitation,
proceeds of fire and credit insurance, whether any of such proceeds, refunds, and premium rebates
arise out of any of the foregoing ((a) through (m)) or otherwise.

(o) All liens, guaranties, rights, remedies, and privileges pertaining to any of the foregoing
((a) through (n)), including the right of stoppage in transit.

 

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8-2. Extent and Duration of Security Interest.

(a) The security interest created and granted herein is in addition to, and supplemental of,
any security interest previously granted by the Borrower to the Agent and shall continue in full
force and effect applicable to all Liabilities until both (a) all Liabilities have been paid and/or
satisfied in full and (b) the Revolving Credit Dollar Commitment of each Revolving Credit Lender is
terminated.

(b) It is intended that the Collateral Interests created herein extend to and cover all assets
of the Borrower, other than Exempt Assets.

ARTICLE 9 — Agent As Borrower’s Attorney-In-Fact:

9-1. Appointment as Attorney-In-Fact. The Borrower hereby irrevocably constitutes and appoints the Agent as the Borrower’s true
and lawful attorney, with full power of substitution, following the occurrence and during the
continuance of an Event of Default, to convert the Collateral into cash at the sole risk, cost, and
expense of the Borrower, but for the sole benefit of the Agent and the Revolving Credit Lenders.
The rights and powers granted the Agent by this appointment, following the occurrence and during
the continuance of an Event of Default, include but are not limited to the right and power to:

(a) Prosecute, defend, compromise, or release any action relating to the Collateral.

(b) Sign change of address forms to change the address to which the Borrower’s mail is to be
sent to such address as the Agent shall designate; receive and open the Borrower’s mail; remove any
Receivables Collateral and Proceeds of Collateral therefrom and turn over the balance of such mail
either to the Borrower or to any trustee in bankruptcy or receiver of the Borrower, or other
legal representative of the Borrower whom the Agent determines to be the appropriate person to whom
to so turn over such mail.

(c) Endorse the name of the Borrower in favor of the Agent upon any and all checks, drafts,
notes, acceptances, or other items or instruments; sign and endorse the name of the Borrower on,
and receive as secured party, any of the Collateral, any invoices, schedules of Collateral, freight
or express receipts, or bills of lading, storage receipts, warehouse receipts, or other documents
of title respectively relating to the Collateral.

(d) Sign the name of the Borrower on any notice to the Borrower’s Account Debtors or
verification of the Receivables Collateral; sign the Borrower’s name on any proof of claim in
bankruptcy against Account Debtors, and on notices of lien, claims of mechanic’s liens, or
assignments or releases of mechanic’s liens securing the Accounts.

(e) Take all such action as may be necessary to obtain the payment of any letter of credit
and/or banker’s acceptance of which the Borrower is a beneficiary.

 

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(f) Repair, manufacture, assemble, complete, package, deliver, alter or supply goods, if any,
necessary to fulfill in whole or in part the purchase order of any customer of the Borrower.

(g) Use, license or transfer any or all General Intangibles of the Borrower.

9-2. No Obligation to Act. The Agent shall not be obligated to do any of the acts or to exercise any of the powers
authorized by Section 9-1 herein, but if the Agent elects to do any such act or to exercise any of
such powers, it shall not be accountable for more than it actually receives as a result of such
exercise of power, and shall not be responsible to the Borrower for any act or omission to act
except for any act or omission to act as to which there is a final determination made in a judicial
proceeding (in which proceeding the Agent has had an opportunity to be heard), which determination
includes a specific finding that the subject act or omission to act had been grossly negligent or
in actual bad faith.

ARTICLE 10 — Events of Default:

The occurrence of any event described in this Article 10 respectively shall constitute an
“Event of Default” herein. Upon the occurrence of any Event of Default described in Section 10-12,
any and all Liabilities shall become due and payable without any further act on the part of the
Agent. Upon the occurrence of any other Event of Default, the Agent may, and on the instruction of
the SuperMajority Lenders as provided in Section 13-1(b) shall, declare any and all Liabilities
immediately due and payable. The occurrence of any Event of Default shall also constitute, without
notice or demand, a default under all
other agreements between the Agent or any Revolving Credit Lender and the Borrower and
instruments and papers heretofore, now, or hereafter given the Agent or any Revolving Credit Lender
by the Borrower.

10-1. Failure to Pay the Revolving Credit. The failure by the Borrower to pay when due any principal of, interest on, or fees in
respect of, the Revolving Credit.

10-2. Failure To Make Other Payments. The failure by the Borrower to pay when due (or upon demand, if payable on demand) any
payment Liability other than any payment liability on account of the principal of, or interest on,
or fees in respect of, the Revolving Credit.

 

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10-3. Failure to Perform Covenant or Liability (No Grace Period). The failure by the Borrower to promptly, punctually, faithfully and timely perform,
discharge, or comply with any covenant or Liability included in any of the following provisions
hereof:

	 	 	 
	Section	 	Relates to:
	4-7

	 	Indebtedness
	4-14

	 	Pay taxes
	4-19

	 	Dividends, Investments, Other Corporate Actions
	4-23

	 	Affiliate Transactions
	5-11

	 	Financial Performance Covenant
	Article 7

	 	Cash Management

10-4. Reporting Requirements. The failure by the Borrower to promptly, punctually, faithfully and timely perform,
discharge, or comply with the financial reporting requirements included in the following Section of
this Agreement, subject, however, to the following limited number of grace periods applicable to
certain of those requirements:

	 	 	 	 	 	 	 
	 	 	REQUIRED	 	 	 	NUMBER OF GRACE
	REPORT / STATEMENT	 	BY SECTION	 	GRACE PERIOD	 	PERIODS
	 
	 	 	 	 	 	 
	Borrowing Base Certificate

	 	5-4
	 	Two Business Days
	 	Three in any 12 months
	 
	 	 	 	 	 	 
	Monthly Report (15 Days) -

	 	5-5(a)(i)
	 	Three Business Days
	 	Two in any 12 months
	 
	 	 	 	 	 	 
	Monthly Reports (30 Days)

	 	5-5(a)(ii)
	 	Three Business Days
	 	Two in any 12 months

10-5. Failure to Perform Covenant or Liability (Grace Period). The failure by the Borrower, within ten (10) Business Days following the earlier of the
Borrower’s knowledge of a breach of any covenant or Liability not described in any of Sections
10-1, 10-2, or 10-3 or of its receipt of written notice from the Agent of the breach of any of such
covenants or Liabilities to cure such breach.

10-6. Misrepresentation. The determination by the Agent that any representation or warranty at any time made by the
Borrower to the Agent or any Revolving Credit Lender was not true or complete in all material
respects when given.

10-7. Acceleration of Other Debt. Breach of Lease. The occurrence of any event such that any Indebtedness of the Borrower in excess of
$500,000 to any creditor other than the Agent or any Revolving Credit Lender is accelerated or,
without the consent of the Borrower, any Lease with annual rentals in excess of $500,000 is
terminated.

10-8. Default Under Other Agreements. The occurrence of any breach of any covenant or Liability imposed by, or of any default
under, any agreement (including any Loan Document) between the Agent or any Revolving Credit Lender
and the Borrower or instrument given by the Borrower to the Agent or any Revolving Credit Lender
and the expiry, without cure, of any applicable grace period (notwithstanding that the subject
Agent or Revolving Credit Lender may not have exercised all or any of its rights on account of such
breach or default).

 

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10-9. Uninsured Casualty Loss. The occurrence of any uninsured loss, theft, damage, or destruction of or to any material
portion of the Collateral.

10-10. Attachment. Judgment. Restraint of Business.

(a) The service of process upon the Agent or any Revolving Credit Lender or any Participant
seeking to attach, by trustee, mesne, or other process, any funds of the Borrower, in an amount in
excess of $200,000, on deposit with, or assets of the Borrower in the possession of, the Agent or
that Revolving Credit Lender or such Participant.

(b) The entry of any judgment against the Borrower for the payment of money in excess of
$500,000, which judgment is not satisfied (if a money judgment) or appealed from (with execution or
similar process stayed) within thirty (30) days of its entry.

(c) The entry of any order or the imposition of any other process having the force of law, the
effect of which is to restrain in any material way the conduct by the Borrower of its business in
the ordinary course and such order or imposition is not dismissed or appealed from within thirty
(30) days of its entry.

10-11. Business Failure. Any act by, against, or relating to the Borrower, or its property or assets, which act
constitutes the determination, by the Borrower, to initiate a program of partial or total
self-liquidation; application for, consent to, or sufferance of the appointment of a receiver,
trustee, or other person, pursuant to court action or otherwise, over all, or any part of the
Borrower’s property; the granting of any trust mortgage or execution of an assignment for the
benefit of the creditors of the Borrower, or the occurrence of any other voluntary liquidation or
extension of debt agreement for the Borrower; the offering by or entering into by the Borrower of
any composition, extension, or any other arrangement seeking relief from or extension of the debts
of the Borrower; or the initiation of any judicial or non-judicial proceeding or agreement by, the
Borrower which seeks or intends to accomplish a reorganization or arrangement with creditors;
and/or the initiation by the Borrower of the liquidation or winding up of all or any part of the
Borrower’s business or operations.

 

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10-12. Bankruptcy. The failure by the Borrower to generally pay the debts of the Borrower as they mature;
adjudication of bankruptcy or insolvency relative to the Borrower; the entry of an order for relief
or similar order with respect to the Borrower in any proceeding pursuant to the Bankruptcy Code or
any other federal bankruptcy law; the filing of any complaint, application, or petition by the
Borrower initiating any matter in which the Borrower is or may be granted any relief from the debts
of the Borrower pursuant to the Bankruptcy Code or any other insolvency statute or procedure; the
filing of any complaint, application, or petition against the Borrower initiating any matter in
which the Borrower is or may be granted any relief from the debts of the Borrower pursuant to the
Bankruptcy Code or any other insolvency statute or procedure, which complaint, application, or
petition is not timely contested in good faith by the Borrower by appropriate proceedings or, if so
contested, is not dismissed within forty-five (45) days of when filed.

10-13. Default by Guarantor. The occurrence of any of the foregoing Events of Default with respect to any guarantor of
the Liabilities, as if such guarantor were the “Borrower” described therein.

10-14. Indictment — Forfeiture. The indictment of, or institution of any legal process or proceeding against, the Borrower,
under any Applicable Law where the relief, penalties, or remedies sought or available include the
forfeiture of any material property of the Borrower and/or the imposition of any stay or other
order, the effect of which could be to restrain in any material way the conduct by the Borrower of
its business in the ordinary course, which is not dismissed or appealed from within thirty (30)
days when instituted or imposed.

10-15. Termination of Guaranty. The termination or attempted termination of any guaranty by any guarantor of the
Liabilities.

10-16. Challenge to Loan Documents.

(a) Any challenge by or on behalf of the Borrower or any guarantor of the Liabilities to the
validity of any Loan Document or the applicability or enforceability of any Loan Document strictly
in accordance with the subject Loan Document’s terms or which seeks to void, avoid, limit, or
otherwise adversely affect any security interest created by or in any Loan Document or any payment
made pursuant thereto.

(b) Any determination by any court or any other judicial or government authority that any Loan
Document is not enforceable in accordance in all material respects with the subject Loan Document’s
terms or which voids, avoids, limits, or otherwise adversely affects in any material way any
security interest created by any Loan Document or any payment made pursuant thereto.

10-17. Change in Control. Any Change in Control.

 

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ARTICLE 11 — Rights and Remedies Upon Default:

11-1. Acceleration. Upon the occurrence of any Event of Default as described in Section 10-12, all Indebtedness
of the Borrower to the Revolving Credit Lenders shall be immediately due and payable. Upon the
occurrence of any Event of Default other than as described in Section 10-12, the Agent may
(and on the issuance of Acceleration Notice(s) requisite to the causing of Acceleration, the Agent
shall) declare all Indebtedness of the Borrower to the Revolving Credit Lenders to be immediately
due and payable and may exercise all of the Agent’s Rights and Remedies as the Agent from time to
time thereafter determines as appropriate.

11-2. Rights of Enforcement. The Agent shall have all of the rights and remedies of a secured party upon default then
available to the Agent under the UCC, in addition to which the Agent shall have all and each of the
following rights and remedies upon an Event of Default and Acceleration:

(a) To give notice to any bank at which any DDA or Blocked Account is maintained and in which
Proceeds of Collateral are deposited, to turn over such Proceeds directly to the Agent.

(b) To give notice to any of the Borrower’s customs brokers to follow the instructions of the
Agent as provided in any written agreement or undertaking of such broker in favor of the Agent.

(c) To collect the Receivables Collateral with or without the taking of possession of any of
the Collateral.

(d) To take possession of all or any portion of the Collateral.

(e) To sell, lease, or otherwise dispose of any or all of the Collateral, in its then
condition or following such preparation or processing as the Agent deems advisable and with or
without the taking of possession of any of the Collateral.

(f) To conduct one or more going out of business sales which include the sale or other
disposition of the Collateral.

(g) To apply the Receivables Collateral or the Proceeds of the Collateral towards (but not
necessarily in complete satisfaction of) the Liabilities.

(h) To exercise all or any of the rights, remedies, powers, privileges, and discretions under
all or any of the Loan Documents.

11-3. Sale of Collateral.

(a) Any sale or other disposition of the Collateral may be at public or private sale upon such
terms and in such manner as the Agent deems advisable, having due regard to compliance with any
statute or regulation which might affect, limit, or apply to the Agent’s disposition of the
Collateral.

 

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(b) The Agent, in the exercise of the Agent’s rights and remedies upon an Event of Default,
may conduct one or more going out of business sales, in the Agent’s own right or by one or more
agents and contractors. Such sale(s) may be conducted upon any premises owned, leased, or
occupied by the Borrower. The Agent and any such agent or contractor, in conjunction with any such
sale, may augment the Inventory with other goods (all of which other goods shall remain the sole
property of the Agent or such agent or contractor). Any amounts realized from the sale of such
goods which constitute augmentations to the Inventory (net of an allocable share of the costs and
expenses incurred in their disposition) shall be the sole property of the Agent or such agent or
contractor and neither the Borrower nor any Person claiming under or in right of the Borrower shall
have any interest therein.

(c) Unless the Collateral is perishable or threatens to decline speedily in value, or is of a
type customarily sold on a recognized market (in which event the Agent shall provide the Borrower
such notice as may be practicable under the circumstances), the Agent shall give the Borrower at
least ten (10) days prior written notice of the date, time, and place of any proposed public sale,
and of the date after which any private sale or other disposition of the Collateral may be made.
The Borrower agrees that such written notice shall satisfy all requirements for notice to the
Borrower which are imposed under the UCC or other applicable law with respect to the exercise of
the Agent’s rights and remedies upon default.

(d) The Agent and any Revolving Credit Lender may purchase the Collateral, or any portion of
it at any sale held under this Article.

(e) If any of the Collateral is sold, leased, or otherwise disposed of by the Agent on credit,
the Liabilities shall not be deemed to have been reduced as a result thereof unless and until
payment is finally received thereon by the Agent.

(f) The Agent shall apply the proceeds of the Agent’s exercise of its rights and remedies upon
default pursuant to this Article 11 in accordance with Sections 13-6 and 13-7.

11-4. Occupation of Business Location. In connection with the Agent’s exercise of the Agent’s rights under this Article 11, the
Agent may enter upon, occupy, and use any premises owned or occupied by the Borrower, and may
exclude the Borrower from such premises or portion thereof as may have been so entered upon,
occupied, or used by the Agent. The Agent shall not be required to remove any of the Collateral
from any such premises upon the Agent’s taking possession thereof, and may render any Collateral
unusable to the Borrower. In no event shall the Agent be liable to the Borrower for use or
occupancy by the Agent of any premises pursuant to this Article 11, nor for any charge (such as
wages for the Borrower’s employees and utilities) incurred in connection with the Agent’s exercise
of the Agent’s Rights and Remedies.

 

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11-5. Grant of Nonexclusive License. The Borrower hereby grants to the Agent a royalty free nonexclusive irrevocable license,
after the occurrence and during the continuance of an Event of Default to use, apply, and affix any
trademark, trade name, logo, or the like in which the Borrower now or hereafter has rights, such
license being with respect to the Agent’s exercise of the rights hereunder including, without
limitation, in connection with any completion of the manufacture of Inventory or sale or other
disposition of Inventory.

11-6. Assembly of Collateral. The Agent may require the Borrower to assemble the Collateral and make it available to the
Agent at the Borrower’s sole risk and expense at a place or places which are reasonably convenient
to both the Agent and the Borrower.

11-7. Rights and Remedies. The rights, remedies, powers, privileges, and discretions of the Agent hereunder (herein,
the “Agent’s Rights and Remedies”) shall be cumulative and not exclusive of any rights or remedies
which it would otherwise have. No delay or omission by the Agent in exercising or enforcing any of
the Agent’s Rights and Remedies shall operate as, or constitute, a waiver thereof. No waiver by
the Agent of any Event of Default or of any default under any other agreement shall operate as a
waiver of any other default hereunder or under any other agreement. No single or partial exercise
of any of the Agent’s Rights or Remedies, and no express or implied agreement or transaction of
whatever nature entered into between the Agent and any person, at any time, shall preclude the
other or further exercise of the Agent’s Rights and Remedies. No waiver by the Agent of any of the
Agent’s Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent
occasion, nor shall it be deemed a continuing waiver. The Agent’s Rights and Remedies may be
exercised at such time or times and in such order of preference as the Agent may determine. The
Agent’s Rights and Remedies may be exercised without resort or regard to any other source of
satisfaction of the Liabilities.

ARTICLE 12 — Revolving Credit Fundings and Distributions: 

12-1. Revolving Credit Funding Procedures. Subject to Section 12-2:

(a) The Agent shall advise each Revolving Credit Lender, no later than 2:00PM (Boston Time) on
a date on which any Revolving Credit Loan (other than a SwingLine Loan) is to be made on that date.
Such advice, in each instance, may be by telephone or facsimile transmission, provided
that if such advice is by telephone, it shall be confirmed in writing. Advice of a Revolving
Credit Loan shall include the amount of and interest rate applicable to the subject Revolving
Credit Loan.

(b) Subject to that Revolving Credit Lender’s Revolving Credit Dollar Commitment, each
Revolving Credit Lender, by no later than the end of business on the day on which the subject
Revolving Credit Loan is to be made, shall Transfer that Revolving Credit Lender’s Revolving Credit
Percentage Commitment of the subject Revolving Credit Loan to the Agent.

 

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12-2. SwingLine Loans.

(a) In the event that, when a Revolving Credit Loan is requested, the aggregate unpaid balance
of the SwingLine Loan is less than the SwingLine Loan Ceiling, then the SwingLine Lender may advise
the Agent that the SwingLine Lender has determined to include up to the amount of the requested
Revolving Credit Loan as part of the SwingLine Loan. In such event, the SwingLine Lender shall
Transfer the amount of the requested Revolving Credit Loan to the Agent.

(b) The SwingLine Loan shall be converted to a Revolving Credit Loan in which all Revolving
Credit Lenders participate as follows:

(i) At any time and from time to time, the SwingLine Lender may advise the Agent that
all, or any part of the SwingLine Loan is to be converted to a Revolving Credit Loan in
which all Revolving Credit Lenders participate.

(ii) At the initiation of a Liquidation, the then entire unpaid principal balance of
the SwingLine Loan shall be converted to a Revolving Credit Loan in which all Revolving
Credit Lenders participate.

In either such event, the Agent shall advise each Revolving Credit Lender of such conversion as if,
and with the same effect as if such conversion were the making of a Revolving Credit Loan as
provided in Section 12-1.

(c) The SwingLine Lender, in separate capacities, may also be the Agent and a Revolving Credit
Lender.

(d) The SwingLine Lender, in its capacity as SwingLine Lender, is not a “Revolving Credit
Lender” for any of the following purposes:

(i) Except as otherwise specifically provided in the relevant Section, any distribution
pursuant to Section 13-6.

(ii) Determination of whether the requisite Loan Commitments have Consented to action
requiring such Consent.

12-3. Agent’s Covering of Fundings.

(a) Each Revolving Credit Lender shall make available to the Agent, as provided herein, that
Revolving Credit Lender’s Revolving Credit Percentage Commitment of the following:

(i) Each Revolving Credit Loan, up to the maximum amount of that Revolving Credit
Lender’s Revolving Credit Dollar Commitment of the Revolving Credit Loans.

 

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(ii) Up to the maximum amount of that Revolving Credit Lender’s Revolving Credit Dollar
Commitment of each L/C Drawing (to the extent that such L/C Drawing is not “covered” by a
Revolving Credit Loan as provided herein).

(b) In all circumstances, the Agent may:

(i) Assume that each Revolving Credit Lender, subject to Section 12-3(a), timely shall
make available to the Agent that Revolving Credit Lender’s Revolving Credit Percentage
Commitment of each Revolving Credit Loan, notice of which is provided pursuant to Section
12-1.

(ii) In reliance upon such assumption, make available the corresponding amount to the
Borrower.

(iii) Assume that each Revolving Credit Lender timely shall pay, and shall make
available, to the Agent all other amounts which that Revolving Credit Lender is obligated to
so pay and/or make available hereunder or under any of the Loan Documents.

(c) In the event that, in reliance upon any of such assumptions, the Agent makes available, a
Revolving Credit Lender’s Revolving Credit Percentage Commitment of one or more Revolving Credit
Loans, or any other amount to be made available hereunder or under any of the Loan Documents, which
amount a Revolving Credit Lender (a “Delinquent Revolving Credit Lender”) fails to provide to the
Agent within one (1) Business Day of written notice of such failure, then:

(i) The amount which had been made available by the Agent is an “Agent’s Cover” (and is
so referred to herein).

(ii) All interest paid by the Borrower on account of the Revolving Credit Loan or
coverage of the subject L/C Drawing which consist of the Agent’s Cover shall be retained by
the Agent until the Agent’s Cover, with interest, has been paid by the Delinquent Revolving
Credit Lender.

(iii) The Delinquent Revolving Credit Lender shall pay to the Agent, on demand,
interest at a rate equal to the prevailing Federal Funds Rate on any Agent’s Cover in
respect of that Delinquent Revolving Credit Lender.

(iv) The Agent shall have succeeded to all rights to payment to which the Delinquent
Revolving Credit Lender otherwise would have been entitled hereunder in respect of
those amounts paid by or in respect of the Borrower on account of the Agent’s Cover
together with interest until it is repaid. Such payments shall be deemed made first towards
the amounts in respect of which the Agent’s Cover was provided and only then towards amounts
in which the Delinquent Revolving Credit Lender is then participating. For purposes of
distributions to be made pursuant to Section 12-4(a) (which relates to ordinary course
distributions) or Section 13-6 (which relates to distributions of proceeds of a Liquidation)
below, amounts shall be deemed distributable to a Delinquent Revolving Credit Lender (and
consequently, to the Agent to the extent to which the Agent is then entitled) at the highest
level of distribution (if applicable) at which the Delinquent Revolving Credit Lender would
otherwise have been entitled to a distribution.

 

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(v) Subject to Subsection 12-3(c)(iv), the Delinquent Revolving Credit Lender shall be
entitled to receive any payments from the Borrower to which the Delinquent Revolving Credit
Lender is then entitled, provided however there shall be deducted from such amount and
retained by the Agent any interest to which the Agent is then entitled on account of Section
12-3(c)(ii), above.

(d) A Delinquent Revolving Credit Lender shall not be relieved of any obligation of such
Delinquent Revolving Credit Lender hereunder (all and each of which shall constitute continuing
obligations on the part of any Delinquent Revolving Credit Lender).

(e) A Delinquent Revolving Credit Lender may cure its status as a Delinquent Revolving Credit
Lender by paying the Agent the aggregate of the following:

(i) The Agent’s Cover (to the extent not previously repaid by the Borrower and retained
by the Agent in accordance with Subsection 12-3(c)(iv), above) with respect to that
Delinquent Revolving Credit Lender.

Plus

(ii) The aggregate of the amount payable under Subsection 12-3(c)(iii), above (which
relates to interest to be paid by that Delinquent Revolving Credit Lender).

Plus

(iii) All such costs and expenses as may be incurred by the Agent in the enforcement of
the Agent’s rights against such Delinquent Revolving Credit Lender.

12-4. Ordinary Course Distributions. (This Section 12-4 applies unless the provisions of Section 13-6 (which relates to
distributions in the event of a Liquidation) becomes operative).

(a) Weekly, on such day as may be set from time to time by the Agent (or more frequently at
the Agent’s option) the Agent and each Revolving Credit Lender shall settle up on amounts advanced
under the Revolving Credit and collected funds received in the Concentration Account.

 

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(b) The Agent shall distribute to the SwingLine Lender and to each Revolving Credit Lender,
such Person’s respective pro-rata share of interest payments on the Revolving Credit Loans when
actually received and collected by the Agent (excluding the one (1) Business Day for settlement
provided for in Section 7-5(a), which shall be for the account of the Agent only). For purposes of
calculating interest due to a Revolving Credit Lender, that Revolving Credit Lender shall be
entitled to receive interest on the actual amount contributed by that Revolving Credit Lender
towards the principal balance of the Revolving Credit Loans outstanding during the applicable
period covered by the interest payment made by the Borrower. Any net principal reductions to the
Revolving Credit Loans received by the Agent in accordance with the Loan Documents during such
period shall not reduce such actual amount so contributed, for purposes of calculation of interest
due to that Revolving Credit Lender, until the Agent has distributed to that Revolving Credit
Lender its pro-rata share thereof.

(c) The Agent shall distribute the Unused Line Fee and the fees for L/C’s provided for in
Section 2-19(a) pro rata to the Revolving Credit Lenders and shall distribute the L/C issuance fee
provided for in Section 2-19(b) to the Issuer.

(d) No Revolving Credit Lender shall have any interest in, or right to receive any part of any
interest which reflects “float” as described in the proviso included in Section 7-5(a). Any such
float shall be for the account of the Agent only.

(e) No Revolving Credit Lender shall have any interest in, or right to receive any part of,
the Agent’s Fee to be paid by the Borrower to the Agent pursuant to this Agreement.

(f) Any amount received by the Agent as reimbursement for any cost or expense (including
without limitation, attorneys’ reasonable fees) shall be distributed by the Agent to that Person
which is entitled to such reimbursement as provided in this Agreement (and if such Person(s) is
(are) the Revolving Credit Lenders, pro-rata based upon their respective Revolving Credit
Commitment Percentages at the date on which the expense, in respect of which such reimbursement is
being made, was incurred).

(g) Each distribution pursuant to this Section 12-4 is subject to Section 12-3(c), above.

ARTICLE 13 — Acceleration and Liquidation:

13-1. Acceleration Notices.

(a) The Agent may give the Revolving Credit Lenders an Acceleration Notice at any time
following the occurrence of an Event of Default.

(b) The SuperMajority Lenders may give the Agent an Acceleration Notice at any time following
the occurrence of an Event of Default. Such notice may be by multiple counterparts, provided that
counterparts executed by the requisite Revolving Credit Lenders are received by the Agent within a
period of five (5) consecutive Business Days.

 

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13-2. Acceleration. Unless stayed by judicial or statutory process, the Agent shall Accelerate the Revolving
Credit Obligations within a commercially reasonable time following:

(a) The Agent’s giving of an Acceleration Notice to the Revolving Credit Lenders as provided
in Section 13-1(a).

(b) The Agent’s receipt of an Acceleration Notice from the SuperMajority Lenders, in
compliance with Section 13-1(b).

13-3. Initiation of Liquidation. Unless stayed by judicial or statutory process, a Liquidation shall be initiated by the
Agent within a commercially reasonable time following Acceleration of the Revolving Credit
Obligations.

13-4. Actions At and Following Initiation of Liquidation

(a) At the initiation of a Liquidation:

(i) The unpaid principal balance of the SwingLine Loan (if any) shall be converted,
pursuant to Section 12-2(b)(ii), to a Revolving Credit Loan in which all Revolving Credit
Lenders participate.

(ii) The Agent and the Revolving Credit Lenders shall “net out” each Revolving Credit
Lender’s respective contributions towards the Revolving Credit Loans, so that each Revolving
Credit Lender holds that Revolving Credit Lender’s Revolving Credit Percentage Commitment of
the Revolving Credit Loans and advances.

(b) Following the initiation of a Liquidation, each Revolving Credit Lender shall contribute,
towards any L/C thereafter honored and not immediately reimbursed by the Borrower, that Revolving
Credit Lender’s Revolving Credit Percentage Commitment of such honoring.

13-5. Agent’s Conduct of Liquidation

(a) Any Liquidation shall be conducted by the Agent, with the advice and assistance of the
Revolving Credit Lenders.

(b) The Agent may establish one or more Nominees to “bid in” or otherwise acquire ownership to
any Post Foreclosure Asset.

(c) The Agent shall manage the Nominee and manage and dispose of any Post Foreclosure Assets
with a view towards the realization of the economic benefits of the ownership of the Post
Foreclosure Assets and in such regard, the Agent and/or the Nominee may operate, repair, manage,
maintain, develop, and dispose of any Post Foreclosure Asset in such manner as the Agent determines
as appropriate under the circumstances.

 

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(d) The Agent may decline to undertake or to continue taking a course of action or to execute
an action plan (whether proposed by the Agent or any Revolving Credit Lender) unless indemnified to
the Agent’s satisfaction by the Revolving Credit Lenders against any and all liability and expense
which may be incurred by the Agent by reason of taking or continuing to take that course of action
or action plan.

(e) Each Revolving Credit Lender shall execute all such instruments and documents not
inconsistent with the provisions of this Agreement as the Agent and/or the Nominee reasonably may
request with respect to the creation and governance of any Nominee, the conduct of the Liquidation,
and the management and disposition of any Post Foreclosure Asset.

13-6. Distribution of Liquidation Proceeds.

(a) The Agent may establish one or more reasonably funded reserve accounts into which proceeds
of the conduct of any Liquidation may be deposited in anticipation of future expenses which may be
incurred by the Agent in the exercise of rights as a secured creditor of the Borrower and prior
claims which the Agent anticipates may need to be paid.

(b) The Agent shall distribute the net proceeds of Liquidation in accordance with the relative
priorities set forth in Section 13-7.

(c) Each Revolving Credit Lender, on the written request of the Agent and/or any Nominee, not
more frequently than once each month, shall reimburse the Agent and/or any Nominee, Pro-Rata, for
any cost or expense reasonably incurred by the Agent and/or the Nominee in the conduct of a
Liquidation, which amount is not covered out of current proceeds of the Liquidation, which
reimbursement shall be paid over to and distributed by the Agent.

13-7. Relative Priorities To Proceeds of Liquidation. The relative priorities to the proceeds of a Liquidation are as follows:

(a) To the Agent as reimbursement for all reasonable third party costs and expenses incurred
by the Agent and to Lenders’ Special Counsel in accordance with this Agreement and to any funded
reserve established pursuant to Section 13-6(a) and to each Revolving Credit Lender to the extent
of contributions made to the Agent pursuant to Section 13-6(c) not previously reimbursed to that
Revolving Credit Lender; and then

(b) To the SwingLine Lender, on account of any SwingLine loans not converted to Revolving
Credit Loans pursuant to Section 13-4(a)(i); and then

(c) To the Revolving Credit Lenders (other than any Delinquent Revolving Credit Lender),
pro-rata, to the unpaid principal balance of the Revolving Credit; and then

 

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(d) To the Revolving Credit Lenders (other than any Delinquent Revolving Credit Lender),
pro-rata, to accrued interest on the Revolving Credit; and then

(e) To the Revolving Credit Lenders (other than any Delinquent Revolving Credit Lender),
pro-rata, to those fees distributable hereunder to the Revolving Credit Lenders; and then

(f) To any Delinquent Revolving Credit Lenders, pro-rata to amounts to which such Revolving
Credit Lenders otherwise would have been entitled pursuant to Sections 13-7(c), 13-7(d), 13-7(e);
and then

(g) To any other Liabilities; and then

(h) To The Borrower.

ARTICLE
14 — The Agent:

14-1. Appointment of The Agent.

(a) Each Lender appoints and designates Bank of America as the “Agent” hereunder and under the
Loan Documents.

(b) Each Revolving Credit Lender authorizes the Agent:

(i) To execute those of the Loan Documents and all other instruments relating thereto
to which the Agent is a party.

(ii) To take such action on behalf of the Revolving Credit Lenders and to exercise all
such powers as are expressly delegated to the Agent hereunder and in the Loan Documents and
all related documents, together with such other powers as are reasonably incident thereto.

14-2. Responsibilities of Agent.

(a) The Agent shall not have any duties or responsibilities to, or any fiduciary relationship
with, any Revolving Credit Lender except for those expressly set forth in this Agreement.

(b) Neither the Agent nor any of its Affiliates shall be responsible to any Revolving Credit
Lender for any of the following:

(i) Any recitals, statements, representations or warranties made by the Borrower or any
other Person.

(ii) Any appraisals or other assessments of the assets of the Borrower or of any other
Person responsible for or on account of the Liabilities.

(iii) The value, validity, effectiveness, genuineness, enforceability, or sufficiency
of the Loan Agreement, the Loan Documents or any other document referred to or provided for
therein.

 

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(iv) Any failure by the Borrower or any other Person (other than the Agent) to perform
its obligations under the Loan Documents.

(c) The Agent may employ attorneys, accountants, and other professionals and agents and
attorneys-in-fact and shall not be responsible for the negligence or misconduct of any such
attorneys, accountants, and other professionals or agents or attorneys-in-fact selected by the
Agent with reasonable care. No such attorney, accountant, other professional, agent, or
attorney-in-fact shall be responsible for any action taken or omitted to be taken by any other such
Person.

(d) Neither the Agent, nor any of its directors, officers, or employees shall be responsible
for any action taken or omitted to be taken or omitted to be taken by any other of them in
connection herewith in reliance upon advice of its counsel nor, in any other event except for any
action taken or omitted to be taken as to which a final judicial determination has been or is made
(in a proceeding in which such Person has had an opportunity to be heard) that such Person had
acted in a grossly negligent manner, in actual bad faith, or in willful misconduct.

(e) The Agent shall not have any responsibility in any event for more funds than the Agent
actually receives and collects.

(f) The Agent in its capacity as a Lender, shall have the same rights and powers hereunder as
any other Revolving Credit Lender.

14-3. Concerning Distributions By the Agent.

(a) The Agent in the Agent’s reasonable discretion based upon the Agent’s determination of the
likelihood that additional payments will be received, expenses incurred, and/or
claims made by third parties to all or a portion of such proceeds, may delay the distribution
of any payment received on account of the Liabilities.

(b) The Agent may disburse funds prior to determining that the sums which the Agent expects to
receive have been finally and unconditionally paid to the Agent. If and to the extent that the
Agent does disburse funds and it later becomes apparent that the Agent did not then receive a
payment in an amount equal to the sum paid out, then any Revolving Credit Lender to whom the Agent
made the funds available, on demand from the Agent, shall refund to the Agent the sum paid to that
person.

(c) If, in the opinion of the Agent, the distribution of any amount received by the Agent
might involve the Agent in liability, or might be prohibited hereby, or might be questioned by any
Person, then the Agent may refrain from making distribution until the Agent’s right to make
distribution has been adjudicated by a court of competent jurisdiction.

 

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(d) The proceeds of any Revolving Credit Lender’s exercise of any right of, or in the nature
of, set-off shall be deemed, First, to the extent that a Revolving Credit Lender is entitled to any
distribution hereunder, to constitute such distribution and Second, shall be shared with the other
Revolving Credit Lenders as if distributed pursuant to (and shall be deemed as distributions under)
Section 13-7.

(e) Each Revolving Credit Lender recognizes that the crediting of the Borrower with the
“proceeds” of any transaction in which a Post Foreclosure Asset is acquired is a non-cash
transaction and that, in consequence, no distribution of such “proceeds” will be made by the Agent
to any Lender.

(f) In the event that (x) a court of competent jurisdiction shall adjudge that any amount
received and distributed by the Agent is to be repaid or disgorged or (y) the SuperMajority Lenders
determine to effect such repayment or disgorgement, then each Revolving Credit Lender to which any
such distribution shall have been made shall repay, to the Agent which had made such distribution,
that Revolving Credit Lender’s Pro-Rata share of the amount so adjudged or determined to be repaid
or disgorged.

14-4. Dispute Resolution. Any dispute among the Revolving Credit Lenders and/or the Agent concerning the
interpretation, administration, or enforcement of the financing arrangements contemplated by this
or any other Loan Document or the interpretation or administration of this or any other Loan
Document which cannot be resolved amicably shall be resolved in the United States District Court
for the District of Massachusetts, sitting in Boston or in the Superior Court of Suffolk County,
Massachusetts, to the jurisdiction of which courts each Revolving Credit Lender hereto hereby
submits.

14-5. Distributions of Notices and of Documents. The Agent shall distribute to each Revolving Credit Lender those periodic reports
which the Agent customarily distributes in like credits in which it is acting as Agent and will
forward to each Revolving Credit Lender, promptly after the Agent’s receipt thereof, a copy of each
notice or other document furnished to the Agent pursuant to this Agreement, including monthly,
quarterly, and annual financial statements received from the Borrower pursuant to Article 5 of this
Agreement, other than any of the following:

(a) Routine communications associated with requests for Revolving Credit Loans and/or the
issuance of L/C’s.

(b) Routine or nonmaterial communications.

(c) Any notice or document required by any of the Loan Documents to be furnished to the
Revolving Credit Lenders by the Borrower.

(d) Any notice or document of which the Agent has knowledge that such notice or document had
been forwarded to the Revolving Credit Lenders other than by the Agent.

 

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14-6. Confidential Information.

(a) Each Revolving Credit Lender will maintain, as confidential, all of the following:

(i) Proprietary approaches, techniques, and methods of analysis which are applied by
the Agent in the administration of the credit facility contemplated by this Agreement.

(ii) Proprietary forms and formats utilized by the Agent in providing reports to the
Revolving Credit Lenders pursuant hereto, which forms or formats are not of general
currency.

(b) Nothing included herein shall prohibit the disclosure of any such information as may be
required to be provided by judicial process or by regulatory authorities having jurisdiction over
any party to this Agreement.

14-7. Reliance by Agent. The Agent shall be entitled to rely upon any certificate, notice or other document
(including any cable, telegram, telex, or facsimile) reasonably believed by the Agent to be genuine
and correct and to have been signed or sent by or on behalf of the proper person or persons, and
upon advice and statements of attorneys, accountants and other experts selected by the Agent. As
to any matters not expressly provided for in this Agreement, any Loan Document, or in any other
document referred to therein, the Agent shall in all events be fully protected in acting, or in
refraining from acting, in accordance with the
applicable Consent required by this Agreement. Instructions given with the requisite Consent
shall be binding on all Revolving Credit Lenders.

14-8. Non-Reliance on Agent and Other Revolving Credit Lenders.

(a) Each Revolving Credit Lender represents to all other Revolving Credit Lenders and to the
Agent that such Revolving Credit Lender:

(i) Independently and without reliance on any representation or act by Agent or by any
other Revolving Credit Lender, and based on such documents and information as that Revolving
Credit Lender has deemed appropriate, has made such Revolving Credit Lender’s own appraisal
of the financial condition and affairs of the Borrower and decision to enter into this
Agreement.

(ii) Has relied upon that Revolving Credit Lender’s review of the Loan Documents by
that Revolving Credit Lender and by counsel to that Revolving Credit Lender as that
Revolving Credit Lender deemed appropriate under the circumstances.

(b) Each Revolving Credit Lender agrees that such Revolving Credit Lender, independently and
without reliance upon Agent or any other Revolving Credit Lender, and based upon such documents and
information as such Revolving Credit Lender shall deem appropriate at the time, will continue to
make such Revolving Credit Lender’s own appraisals of the financial condition and affairs of the
Borrower when determining whether to take or not to take any discretionary action under this
Agreement.

 

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(c) The Agent, in the discharge of that Agent’s duties hereunder, shall not be required to
make inquiry of, or to inspect the properties or books of, any Person.

(d) Except for notices, reports, and other documents and information expressly required to be
furnished to the Revolving Credit Lenders by the Agent hereunder (as to which, see Section 14-5),
the Agent shall not have any affirmative duty or responsibility to provide any Lender with any
credit or other information concerning any Person, which information may come into the possession
of Agent or any Affiliate of the Agent.

(e) Each Revolving Credit Lender, at such Revolving Credit Lender’s request, shall have
reasonable access to all nonprivileged documents in the possession of the Agent, which documents
relate to the Agent’s performance of its duties hereunder.

14-9. Indemnification.  Without limiting the Liabilities of the Borrower under this or any of the other
Loan Documents, each Revolving Credit Lender shall indemnify the Agent, pro-rata for any and all
Liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever (including attorney’s reasonable fees and expenses and other
out-of-pocket expenditures) which may at any time be imposed on, incurred by, or asserted against
the Agent and in any way relating to or arising out of this Agreement or any other Loan Document or
any documents contemplated by or referred to therein or the transactions contemplated thereby or
the enforcement of any of terms hereof or thereof or of any such other documents, provided,
however, no Revolving Credit Lender shall be liable for any of the foregoing to the extent that any
of the foregoing arises from any action taken or omitted to be taken by the Agent as to which a
final judicial determination has been or is made (in a proceeding in which the agent has had an
opportunity to be heard) that the Agent had acted in a grossly negligent manner, or in actual bad
faith, or engaged in willful misconduct.

14-10. Resignation of Agent.

(a) The Agent may resign at any time by giving 60 days prior written notice thereof to the
Revolving Credit Lenders. Upon receipt of any such notice of resignation, the SuperMajority Lenders
shall have the right to appoint a successor to such Agent (and if no Event of Default has occurred,
with the consent of the Borrower, not to be unreasonably withheld and, in any event, deemed given
by the Borrower if no written objection is provided by the Borrower to the (resigning) Agent within
seven (7) Business Days notice of such proposed appointment). If a successor Agent shall not have
been so appointed and accepted such appointment within 30 days after the giving of notice by the
resigning Agent, then the resigning Agent may appoint a successor Agent, which shall be a
financial institution having a combined capital and surplus in excess of $1,000,000,000.00. The
consent of the Borrower otherwise required by this Section 14-10(a) shall not be required if an
Event of Default has occurred.

 

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(b) Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor shall thereupon succeed to, and become vested with, all the rights, powers, privileges,
and duties of the (resigning) Agent so replaced, and the (resigning) Agent shall be discharged from
the (resigning) Agent’s duties and obligations hereunder, other than on account of any
responsibility for any action taken or omitted to be taken by the (resigning) Agent as to which a
final judicial determination has been or is made (in a proceeding in which the (resigning) Person
has had an opportunity to be heard) that such Person had acted in a grossly negligent manner or in
bad faith.

(c) After any retiring Agent’s resignation, the provisions of this Agreement and of all other
Loan Documents shall continue in effect for the retiring Person’s benefit in respect of any actions
taken or omitted to be taken by it while it was acting as Agent.

ARTICLE 15 — Action By Agents — Consents — Amendments — Waivers: 

15-1. Administration of Credit Facilities.

(a) Except as otherwise specifically provided in this Agreement, the Agent may take any
action with respect to the credit facility contemplated by the Loan Documents as the Agent
determines to be appropriate, provided, however, the Agent is not under any affirmative obligation
to take any action which it is not required by this Agreement or the Loan Documents specifically to
so take.

(b) Except as specifically provided in the following Sections of this Agreement, whenever a
Loan Document or this Agreement provides that action may be taken or omitted to be taken in an
Agent’s discretion, the Agent shall have the sole right to take, or refrain from taking, such
action without, and notwithstanding, any vote of the Revolving Credit Lenders:

	 	 	 
	Actions Described in Section	 	Type of Consent Required
	15-2

	 	Majority Lenders
	15-3

	 	SuperMajority Lenders
	15-4

	 	Certain Consent
	15-5

	 	Unanimous Consent
	15-6

	 	Consent of SwingLine Lender
	15-7

	 	Consent of the Agent

(c) The rights granted to the Revolving Credit Lenders in those sections referenced in Section
15-1(b) shall not otherwise limit or impair the Agent’s exercise of its discretion under the Loan
Documents.

 

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15-2. Actions Requiring or On Direction of Majority Lenders. Except as otherwise provided in this Agreement, the Consent or direction of the Majority
Lenders is required for any amendment, waiver, or modification of any Loan Document.

15-3. Actions Requiring or On Direction of SuperMajority Lenders. The Consent or direction of the SuperMajority Lenders is required as follows:

(a) The Revolving Credit Lenders agree that any loan or advance under the Revolving Credit
which results in a Permissible OverLoan may be made by the Agent in its discretion without the
Consent of the Revolving Credit Lenders and that each Revolving Credit Lender shall be bound
thereby, provided, however, the Consent or direction of the SuperMajority Lenders is required to
permit a Permissible OverLoan (other than any Permissible OverLoan to the extent that it is also a
Protective Advance as to which no such Consent or direction is so required) to be outstanding for
more than 45 consecutive Business Days or more than twice in any twelve month period.

(b) If the Borrower is then InDefault, the SuperMajority Lenders may direct the Agent to
suspend the Revolving Credit (including the making of any Permissible OverLoans), whereupon, as
long as the Borrower is InDefault, the only Revolving Credit Loans which may be made are either

(i) Revolving Credit Loans made or undertaken in the Agent’s discretion to protect and
preserve the interests of the Revolving Credit Lenders; or

(ii) Revolving Credit Loans made with Consent of the SuperMajority Lenders.

(c) If an Event of Default has occurred and not been duly waived, the SuperMajority Lenders
may:

(i) Give the Agent an Acceleration Notice in accordance with Section 13-1(b).

(ii) Direct the Agent to increase the rate of interest to the default rate of interest
as provided in, and to the extent permitted by, this Agreement.

15-4. Actions Requiring Certain Consent.

(a) The Consent of the Revolving Credit Lender whose Revolving Credit Lender’s Revolving
Credit Dollar Commitment or Revolving Credit Percentage Commitment is to be so increased is
required for any increase in any Revolving Credit Lender’s Revolving Credit Dollar Commitment or
Revolving Credit Percentage Commitment (other than by reason of the application of Section 15-10
(which deals with NonConsenting Revolving Credit Lenders) or Section 16-1 (which deals with
assignments and participations).

 

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(b) The consent of the SwingLine Lender and the Consent of the SuperMajority Lenders shall be
required to increase the SwingLine Loan Ceiling.

15-5. Actions Requiring or Directed By Unanimous Consent. None of the following may take place except with the Consent of each Revolving
Credit Lender adversely affected thereby or with Unanimous Consent:

(a) Any decrease in any interest rate or fee payable to the Revolving Credit Lenders on
account of the Revolving Credit Loans.

(b) Any extension of the Maturity Date.

(c) Any forgiveness of all or any portion of any payment Liability.

(d) Any decrease in any interest rate or fee payable under any of the Loan Documents (other
than any Agent’s Fee (for which the consent of only the Agent shall be required)) and
of any fee payable to the Revolving Credit Lenders provided for by the Fee Letter (which may
be amended by written agreement between the Borrower on the one hand, and the Agent on the other).

(e) Any release of a material portion of the Collateral not otherwise required or provided for
in the Loan Documents or to facilitate a Liquidation.

(f) Any amendment of the definition of the terms “Borrowing Base” or “Availability” or of any
Definition of any component thereof, such that more credit would be available to the Borrower,
based on the same assets, as would have been available to the Borrower immediately prior to such
amendment, it being understood, however, that:

(i) The foregoing shall not limit the adjustment by the Agent of any Reserve in the
Agent’s administration of the Revolving Credit as otherwise permitted by this Agreement.

(ii) The foregoing shall not prevent the Agent, in its administration of the Revolving
Credit, from restoring any component of Borrowing Base which had been lowered by the Agent
back to the value of such component, as stated in this Agreement or to an intermediate
value.

(g) Any release of any Person obligated on account of the Liabilities.

(h) The making of any Revolving Credit Loan which, when made, exceeds Availability and is not
a Permissible OverLoan, provided, however,

(i) no Consent shall be required in connection with the making of any Revolving Credit
Loan to “cover” any honoring of a drawing under any L/C; and

(ii) each Lender recognizes that subsequent to the making of a Revolving Credit Loan
which does not constitute a Permissible OverLoan, the unpaid principal balance of the Loan
Account may exceed Borrowing Base on account of changed circumstances beyond the control of
the Agent (such as a drop in collateral value).

 

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(i) The waiver of the obligation of the Borrower to reduce the unpaid principal balance of
loans under the Revolving Credit to an amount which does not exceed a Permissible OverLoan or,
subject to the time limits included in Section 15-3(a) (which places time and frequency limits on
Permissible OverLoans), to eliminate an OverLoan.

(j) Any amendment of this Article 15.

(k) Amendment of any of the following Definitions:

“Appraised Inventory Liquidation Value”

“Majority Lender”

“Permissible OverLoan”

“Protective Advances”

“SuperMajority Lenders

“Unanimous Consent”

15-6. Actions Requiring SwingLine Lender Consent. No action, amendment, or waiver of compliance with, any provision of the Loan Documents or
of this Agreement which affects the SwingLine Lender may be undertaken without the Consent of the
SwingLine Lender.

15-7. Actions Requiring Agent’s Consent.

(a) No action, amendment, or waiver of compliance with, any provision of the Loan Documents or
of this Agreement which affects the Agent in its capacity as Agent may be undertaken without the
written consent of the Agent.

(b) No action referenced herein which affects the rights, duties, obligations, or liabilities
of the Agent shall be effective without the written consent of the Agent.

15-8. Miscellaneous Actions.

(a) Notwithstanding any other provision of this Agreement, no single Revolving Credit Lender
independently may exercise any right of action or enforcement against or with respect to the
Borrower.

(b) The Agent shall be fully justified in failing or refusing to take action under this
Agreement or any Loan Document on behalf of any Revolving Credit Lender unless the Agent shall
first

(i) receive such clear, unambiguous, written instructions as the Agent deems
appropriate; and

 

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(ii) be indemnified to the Agent’s satisfaction by the Revolving Credit Lenders against
any and all liability and expense which may be incurred by the Agent by reason of taking or
continuing to take any such action, unless such action had been grossly negligent, in
willful misconduct, or in bad faith.

(c) The Agent may establish reasonable procedures for the providing of direction and
instructions from the Revolving Credit Lenders to the Agent, including its reliance on multiple
counterparts, facsimile transmissions, and time limits within which such direction and instructions
must be received in order to be included in a determination of whether the requisite Loan
Commitments has provided its direction, Consent, or instructions.

15-9. Actions Requiring Borrower’s Consent. The Borrower’s consent is required for any amendment of this Agreement.

15-10. NonConsenting Revolving Credit Lender.

(a) In the event that a Revolving Credit Lender (in this Section 15-10, a “NonConsenting
Revolving Credit Lender”) does not provide its Consent to a proposal by the Agent to take action
which requires consent under this Article 15, then one or more Revolving Credit Lenders who
provided Consent to such action may require the assignment, without recourse and in accordance with
the procedures outlined in Section 16-1, below, of the NonConsenting Revolving Credit Lender’s
commitment hereunder on fifteen (15) days written notice to the Agent and to the NonConsenting
Revolving Credit Lender.

(b) At the end of such fifteen (15) days, and provided that the NonConsenting Revolving Credit
Lender delivers the Revolving Credit Note held by the NonConsenting Revolving Credit Lender to the
Agent, the Revolving Credit Lenders who have given such written notice shall Transfer the following
to the NonConsenting Revolving Credit Lender:

(i) Such NonConsenting Revolving Credit Lender’s Pro-Rata share of the principal and
interest of the Revolving Credit Loans to the date of such assignment.

(ii) All fees distributable hereunder to the NonConsenting Revolving Credit Lender to
the date of such assignment.

(iii) Any reasonable out-of-pocket costs and expenses for which the NonConsenting
Revolving Credit Lender is entitled to reimbursement from the Borrower.

 

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(c) In the event that the NonConsenting Revolving Credit Lender fails to deliver to the Agent
the Revolving Credit Note held by the NonConsenting Revolving Credit Lender as provided in Section
15-10(b), then:

(i) The amount otherwise to be Transferred to the NonConsenting Revolving Credit Lender
shall be Transferred to the Agent and held by the Agent, without interest, to be turned over
to the NonConsenting Revolving Credit Lender upon delivery of the Revolving Credit Note held
by that NonConsenting Revolving Credit Lender.

(ii) The Revolving Credit Note held by the NonConsenting Revolving Credit Lender shall
have no force or effect whatsoever.

(iii) The NonConsenting Revolving Credit Lender shall cease to be a “Revolving Credit
Lender”.

(iv) The Revolving Credit Lender(s) which have Transferred the amount to the Agent as
described above shall have succeeded to all rights and become subject to all of the
obligations of the NonConsenting Revolving Credit Lender as “Revolving Credit Lender”.

(d) In the event that more than one (1) Revolving Credit Lender wishes to require such
assignment, the NonConsenting Revolving Credit Lender’s commitment hereunder shall be divided
among such Revolving Credit Lenders, pro-rata based upon their respective Revolving Credit
Percentage Commitments, with the Agent coordinating such transaction.

(e) The Agent shall coordinate the retirement of the Revolving Credit Note held by the
NonConsenting Revolving Credit Lender and the issuance of Revolving Credit Notes to those Revolving
Credit Lenders which “take-out” such NonConsenting Revolving Credit Lender, provided, however, no
processing fee otherwise to be paid as provided in Section 16-2(b) shall be due under such
circumstances.

ARTICLE 16 — Assignments By Revolving Credit Lenders:

16-1. Assignments and Assumptions.

(a) Except as provided herein, each Revolving Credit Lender (in this Section 16-1(a), an
“Assigning Revolving Credit Lender”) may assign to one or more Eligible Assignees (in this Section
16-1(a), each an “Assignee Revolving Credit Lender”) all or a portion of that Revolving Credit
Lender’s interests, rights and obligations under this Agreement and the Loan Documents (including
all or a portion of its Commitment) and the same portion of the Revolving Credit Loans at the time
owing to it, and of the Revolving Credit Note held by the Assigning Revolving Credit Lender,
provided that:

(i) The Agent shall have given its prior written consent to such assignment, which
consent shall not be unreasonably withheld, but need not be given if the proposed assignment
would result in Bank of America’s holding a Revolving Credit Dollar Commitment of less than
$15 Million.

 

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(ii) Unless an Event of Default has occurred, any assignment to a person not then a
Revolving Credit Lender shall be subject to the prior written consent of the Borrower (not
to be unreasonably withheld).

(iii) Each such assignment shall be of a constant, and not a varying, percentage of all the
Assigning Revolving Credit Lender’s rights and obligations under this Agreement.

(iv) Such assignment shall not result in Bank of America holding a Loan Commitment of less
than $15,000,000.00, provided, however, Bank of America shall be relieved of any “minimum hold”
obligation following the occurrence of any Event of Default.

16-2. Assignment Procedures. (This Section 16-2 describes the procedures to be followed in connection with an assignment
effected pursuant to this Article 16 and permitted by Section 16-1).

(a) The parties to such an assignment shall execute and deliver to the Agent, for recording in
the Register, an Assignment and Acceptance substantially in the form of EXHIBIT 16-1, annexed
hereto (an “Assignment and Acceptance”).

(b) The Assigning Revolving Credit Lender shall deliver to the Agent, with such Assignment and
Acceptance, the Revolving Credit Note held by the subject Assigning Revolving Credit Lender and the
Agent’s processing fee of $3,500.00, provided, however, no such processing fee shall be due where
the Assigning Revolving Credit Lender is one of the Revolving Credit Lenders at the initial
execution of this Agreement.

(c) The Agent shall maintain a copy of each Assignment and Acceptance delivered to it and a
register or similar list (the “Register”) for the recordation of the names and addresses of the
Revolving Credit Lenders and of the Revolving Credit Percentage Commitment and Revolving Credit
Percentage Commitment of each Revolving Credit Lender. The Register shall be available for
inspection by the Revolving Credit Lenders and the Borrower at any reasonable time and from time to
time upon reasonable prior notice. In the absence of manifest error, the entries in the Register
shall be conclusive and binding on all Revolving Credit Lenders. The Agent and the Revolving
Credit Lenders may treat each Person whose name is recorded in the Register as a “Revolving Credit
Lender” hereunder for all purposes of this Agreement.

(d) The Assigning Revolving Credit Lender and Assignee Revolving Credit Lender, directly
between themselves, shall make all appropriate adjustments in payments for periods prior to the
effective date of an Assignment and Assumption.

 

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16-3. Effect of Assignment.

(a) From and after the effective date specified in an Assignment and Acceptance which has been
executed, delivered, and recorded (which effective date the Agent may delay by up to five (5)
Business Days after the delivery of such Assignment and Acceptance):

(i) The Assignee Revolving Credit Lender:

(A) Shall be a party to this Agreement and the Loan Documents (and to any
amendments thereof) as fully as if the Assignee Revolving Credit Lender had executed
each.

(B) Shall have the rights of a Revolving Credit Lender hereunder to the extent
of the Revolving Credit Percentage Commitment and Revolving Credit Percentage
Commitment assigned by such Assignment and Acceptance.

(ii) The Assigning Revolving Credit Lender shall be released from the Assigning
Revolving Credit Lender’s obligations under this Agreement and the Loan Documents to the
extent of the Commitment assigned by such Assignment and Acceptance.

(iii) The Agent shall undertake to obtain and distribute replacement Revolving Credit
Notes to the subject Assigning Revolving Credit Lender and Assignee Revolving Credit Lender.

(b) By executing and delivering an Assignment and Acceptance, the parties thereto confirm to
and agree with each other and with all parties to this Agreement as to those matters which are set
forth in the subject Assignment and Acceptance.

ARTICLE 17 — Notices:

17-1. Notice Addresses. All notices, demands, and other communications made in respect of any Loan Document (other
than a request for a loan or advance or other financial accommodation under the Revolving Credit)
shall be made to the following addresses, each of which may be changed upon seven (7) days written
notice to all others given by certified mail, return receipt requested:

If to the Agent:

	 	 	 	 	 
	 	 	Bank of America, N.A.
	 	 	100 Federal Street
	 	 	Boston, Massachusetts 02110
	 

	 	Attention:
	 	James Ward
	 

	 	 	 	Managing Director
	 

	 	Fax:
	 	617 434-4312
	 

	 	E-mail:
	 	james.ward@baml.com

 

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With a copy to (which shall not constitute notice):

	 	 	 	 	 
	 	 	Riemer & Braunstein LLP
	 	 	Three Center Plaza
	 	 	Boston, Massachusetts 02108
	 

	 	Attention:
	 	David S. Berman, Esquire
	 

	 	Fax:
	 	617 880 3456
	 

	 	Email:
	 	dberman@riemerlaw.com

If to the Borrower:

	 	 	 	 	 
	 	 	Hastings Entertainment, Inc.
	 	 	3601 Plains Boulevard
	 	 	Amarillo, Texas 79102
	 

	 	Attention:
	 	Dan Crow
	 

	 	Fax:
	 	806 351 2424
	 

	 	Email:
	 	Danny.Crow@goHastings.com

With a copy to (which shall not constitute notice):

	 	 	 	 	 
	 	 	Kelly Hart & Hallman LLP
	 	 	201 Main Street, Suite 2500
	 	 	Fort Worth, Texas 76102
	 

	 	Attention:
	 	F. Richard Bernasek, Esquire
	 

	 	Fax:
	 	817 878 9709
	 

	 	Email:
	 	dick.bernasek@kellyhart.com

17-2. Notice Given.

(a) Except as otherwise specifically provided herein, notices shall be deemed made and
correspondence received, as follows (all times being local to the place of delivery or receipt):

(i) By mail: the sooner of when actually received or three (3) days following deposit
in the United States mail, postage prepaid.

(ii) By recognized overnight express delivery: the Business Day following the day when
sent.

(iii) By Hand: If delivered on a Business Day after 9:00 AM and no later than three (3)
hours prior to the close of customary business hours of the recipient, when delivered.
Otherwise, at the opening of the then next Business Day.

(iv) By Facsimile transmission (which must include a header on which the party sending
such transmission is indicated): If sent on a Business Day after 9:00 AM and no later than
three (3) hours prior to the close of customary business hours of the recipient, one (1)
hour after being sent. Otherwise, at the opening of the then next Business Day.

(v) By electronic mail transmission (which must include a header on which the party
sending such transmission is indicated): Upon receipt of a return e-mail from the recipient
confirming such notice has been received, or upon receipt of an automatically generated
e-mail confirmation that such communication has been delivered, i.e. by the “return receipt
requested” function).

(b) Rejection or refusal to accept delivery and inability to deliver because of a changed
address or Facsimile Number for which no due notice was given shall each be deemed receipt of the
notice sent.

 

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ARTICLE 18 — Term:

18-1. Termination of Revolving Credit. The Revolving Credit shall remain in effect (subject to suspension as provided in Section
2-5(g) hereof) until the Termination Date.

18-2. Actions On Termination.

(a) On the Termination Date, the Borrower shall pay the Agent (whether or not then due), in
immediately available funds, all then Liabilities including, without limitation: the following:

(i) The entire balance of the Loan Account (including the unpaid principal balance of
the Revolving Credit Loans, and the SwingLine Loan).

(ii) Any then remaining installments of the Revolving Credit Commitment Fee.

(iii) Any then remaining installments of the Agent’s Fee.

(iv) Any payments due on account of the indemnification obligations included in Section
2-10(e).

(v) Any accrued and unpaid Unused Line Fee.

(vi) All unreimbursed costs and expenses of the Agent and of Lenders’ Special Counsel
for which the Borrower is responsible.

(b) On the Termination Date, the Borrower shall also make such arrangements concerning any
L/C’s then outstanding as are reasonably satisfactory to the Agent.

(c) Until such payment (Section 18-2(a)) and arrangements concerning L/C’s (Section 18-2(b)),
all provisions of this Agreement, other than those included in Article 2 which place any obligation
on the Agent or any Revolving Credit Lender to make any loans or advances or to provide any
financial accommodations to the Borrower shall remain in full force and effect until all
Liabilities shall have been paid in full.

(d) The release by the Agent of the Collateral Interests granted the Agent by the Borrower
hereunder may be upon such conditions and indemnifications as the Agent may require. Without
limiting the foregoing, in connection with the termination of this Agreement and the release and
termination of the security interests in the Collateral, the Agent may require such indemnities and
collateral security as it shall reasonably deem necessary or appropriate to protect the Agent and
the Lenders against (x) loss on account of credits previously applied to the Liabilities that may
subsequently be reversed or revoked, (y) any obligations that may thereafter arise with respect to
Bank Products and Cash Management Services, and (z) any Liabilities that may thereafter arise under
Section 19-12 hereof.

 

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ARTICLE 19 — General:

19-1. Protection of Collateral. The Agent has no duty as to the collection or protection of the Collateral beyond the safe
custody of such of the Collateral as may come into the possession of the Agent.

19-2. Publicity.
(a) The Agent may issue a “tombstone” notice of the establishment of the credit facility
contemplated by this Agreement and may make reference to the Borrower (and may utilize any logo or
other distinctive symbol associated with the Borrower) in connection with any advertising,
promotion, or marketing undertaken by the Agent.

(b) Each Revolving Credit Lender, the Issuer and the Agent agrees to use reasonable
precautions to keep confidential, in accordance with customary procedures for handling confidential
information of this nature and in accordance with safe and sound banking practices, any non-public
information supplied to it by the Borrower pursuant to this Agreement which is identified by the
Borrower as being confidential at the time the same is delivered to the Revolving Credit Lenders,
the Issuer or the Agent, provided that nothing herein shall limit the disclosure of any such
information (i) to the extent required by statute, rule, regulation or judicial process, (ii) to
counsel for any Revolving Credit Lender, the Issuer or the Agent, (iii) to bank examiners, auditors
or accountants of any Revolving Credit Lender, the Issuer or the Agent (iv) to any other Revolving
Credit Lender, the Issuer or the Agent, (v) in connection with any litigation to which any
Revolving Credit Lender, the Issuer or the Agent is a party, provided, further, that, unless
specifically prohibited by applicable Law or court order, each Revolving Credit Lender, the Issuer
and the Agent shall use best efforts to notify the Borrower of any request for disclosure of any
such non-public information (A) by any governmental agency or representative thereof (other than
any such request in connection with an examination of such Revolving Credit Lender’s financial
condition by such governmental agency) or (B) pursuant to a legal process, (vi) to any Eligible
Assignee (or prospective Eligible Assignee) so long as such Eligible Assignee (or prospective
Assignee) agrees in writing to be bound by this confidentiality provision in all material respects,
or (vii) to the extent necessary in connection with any right or remedy under this Agreement or any
other Loan Document.

 

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19-3. Successors and Assigns. This Agreement shall be binding upon the Borrower and the Borrower’s representatives,
successors, and assigns and shall enure to the benefit of the Agent and each Revolving Credit
Lender and their respective successors and assigns, provided, however, no trustee or other
fiduciary appointed with respect to the Borrower shall have any rights hereunder. In the event
that the Agent or any Revolving Credit Lender assigns or transfers its rights under this Agreement,
in accordance with this Agreement the assignee shall thereupon succeed to and become vested with
all rights, powers, privileges, and duties of such assignor hereunder and such assignor shall
thereupon be discharged and relieved from its duties and obligations hereunder.

19-4. Severability. Any determination that any provision of this Agreement or any application thereof is
invalid, illegal, or unenforceable in any respect in any instance shall not affect the validity,
legality, or enforceability of such provision in any other instance, or the validity, legality, or
enforceability of any other provision of this Agreement.

19-5. Amendments.

(a) This Agreement and the other Loan Documents incorporate all discussions and negotiations
between the Borrower and the Agent and each Revolving Credit Lender, either express or implied,
concerning the matters included herein and in such other instruments, any custom, usage, or course
of dealings to the contrary notwithstanding. No such discussions, negotiations, custom, usage, or
course of dealings shall limit, modify, or otherwise affect the provisions thereof. No failure by
the Agent or any Revolving Credit Lender to give notice to the Borrower of the Borrower’s having
failed to observe and comply with any warranty or covenant included in any Loan Document shall
constitute a waiver of such warranty or covenant or the amendment of the subject Loan Document. No
change made by the Agent to the manner by which Borrowing Base is determined shall obligate the
Agent to continue to determine Borrowing Base in that manner.

(b) The Borrower may undertake any action otherwise prohibited hereby, and may omit to take
any action otherwise required hereby, upon and with the express prior written consent of the Agent.
Subject to Article 15, no consent, modification, amendment, or waiver of any provision of any Loan
Document shall be effective unless executed in writing by or on behalf of the party to be charged
with such modification, amendment, or waiver (and if such party is the Agent then by a duly
authorized officer thereof). Any modification, amendment, or waiver provided by the Agent shall be
in reliance upon all representations and warranties theretofore made to the Agent by or on behalf
of the Borrower (and any guarantor, endorser, or surety of the Liabilities) and consequently may be
rescinded in the event that any of such representations or warranties was not true and complete in
all material respects when given.

 

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19-6. Application of Proceeds. The proceeds of any collection, sale, or disposition of the Collateral, or of any other
payments received hereunder, shall be applied towards the Liabilities in such order and manner as
the Agent determines in its sole discretion, consistent, however, with Sections 13-6 and 13-7 and
any other
applicable provisions of this Agreement. The Borrower shall remain liable for any deficiency
remaining following such application.

19-7. Increased Costs. If, as a result of any adoption of, or change in, any requirement of law, or of the
interpretation or application thereof by any court or by any governmental or other authority or
entity charged with the administration thereof, whether or not having the force of law, which:

(a) subjects any Revolving Credit Lender to any taxes or changes the basis of taxation, or
increases any existing taxes, on payments of principal, interest or other amounts payable by the
Borrower to the Agent or any Revolving Credit Lender under this Agreement (except for taxes on the
Agent or any Revolving Credit Lender based on net income or capital imposed by the jurisdiction in
which the principal or lending offices of the Agent or that Revolving Credit Lender are located);

(b) imposes, modifies or deems applicable any reserve, cash margin, special deposit or similar
requirements against assets held by, or deposits in or for the account of or loans by or any other
acquisition of funds by the relevant funding office of any Revolving Credit Lender;

(c) imposes on any Revolving Credit Lender any other condition with respect to any Loan
Document; or

(d) imposes on any Revolving Credit Lender a requirement to maintain or allocate capital in
relation to the Liabilities;

and the result of any of the foregoing, in such Revolving Credit Lender’s reasonable opinion, is to
increase the cost to that Revolving Credit Lender of making or maintaining any loan, advance or
financial accommodation or to reduce the income receivable by that Revolving Credit Lender in
respect of any loan, advance or financial accommodation by an amount which that Revolving Credit
Lender deems to be material, then upon written notice from the Agent, from time to time, to the
Borrower (such notice to set out in reasonable detail the facts giving rise to and a summary
calculation of such increased cost or reduced income), the Borrower shall forthwith pay to the
Agent, for the benefit of the subject Revolving Credit Lender, within 30 days after receipt of such
notice, that amount which shall compensate the subject Revolving Credit Lender for such additional
cost or reduction in income. Each Revolving Credit Lender shall, in accordance with its internal
policy, use reasonable efforts to designate a different lending office for funding or booking its
Revolving Credit Dollar Commitment hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Revolving Credit
Lender, such designation or assignment: (i) would eliminate or reduce such amounts due (with
respect to additional costs or reduction in income), and (ii) would not subject such Revolving
Credit Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to
such
Revolving Credit Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Revolving Credit Lender in connection with any such designation or assignment.

 

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19-8. Costs and Expenses of the Agent.

(a) The Borrower shall pay from time to time on demand all Costs of Collection and all
reasonable costs, expenses, and disbursements (including attorneys’ reasonable fees and expenses)
which are incurred by the Agent in connection with the preparation, negotiation, execution, and
delivery of this Agreement and of any other Loan Documents, and all other reasonable costs,
expenses, and disbursements which may be incurred by the Agent in connection with or in respect to
the credit facility contemplated hereby or which otherwise are incurred with respect to the
Liabilities.

(b) The Borrower shall pay from time to time on demand all reasonable costs and expenses
(including attorneys’ reasonable fees and expenses) incurred, following the occurrence of any Event
of Default, by the Revolving Credit Lenders to Lenders’ Special Counsel.

(c) The Borrower authorizes the Agent to pay all such fees and expenses and in the Agent’s
discretion, to add such fees and expenses to the Loan Account.

(d) The undertaking on the part of the Borrower in this Section 19-8 shall survive payment of
the Liabilities and/or any termination, release, or discharge executed by the Agent in favor of the
Borrower, other than a termination, release, or discharge which makes specific reference to this
Section 19-8.

19-9. Copies and Facsimiles. Each Loan Document and all documents and papers which relate thereto which have been or may
be hereinafter furnished the Agent or any Revolving Credit Lender may be reproduced by that
Revolving Credit Lender or by the Agent by any photographic, microfilm, xerographic, digital
imaging, or other process, and such Person making such reproduction may destroy any document so
reproduced. Any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in existence and whether or
not such reproduction was made in the regular course of business). Any facsimile which bears proof
of transmission shall be binding on the party which or on whose behalf such transmission was
initiated and likewise shall be so admissible in evidence as if the original of such facsimile had
been delivered to the party which or on whose behalf such transmission was received.

 

102

 

19-10. Massachusetts Law. This Agreement and all rights and obligations hereunder, including matters of construction,
validity, and performance, shall be governed by the law of the Commonwealth of Massachusetts.

19-11. Consent to Jurisdiction.

(a) Each of the parties hereto agree that any legal action, proceeding, case, or controversy
against it with respect to any Loan Document may be brought in the Superior Court of Suffolk County
Massachusetts or in the United States District Court, District of Massachusetts, sitting in Boston,
Massachusetts, as the Agent may elect in the Agent’s sole discretion. By execution and delivery of
this Agreement, each of the parties hereto, for itself and in respect of its property, accepts,
submits, and consents generally and unconditionally, to the jurisdiction of the aforesaid courts.

(b) Each of the parties hereto WAIVES personal service of any and all process upon it, and
irrevocably consents to the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by certified mail, postage prepaid, to it at
its address for notices as specified herein, such service to become effective five (5) Business
Days after such mailing.

(c) Each of the parties hereto WAIVES any objection based on forum non conveniens and any
objection to venue of any action or proceeding instituted under any of the Loan Documents and
consents to the granting of such legal or equitable remedy as is deemed appropriate by the Court.

(d) Nothing herein shall affect the right of the Agent to bring legal actions or proceedings
in any other competent jurisdiction.

(e) The Borrower agrees that any action commenced by the Borrower asserting any claim arising
under or in connection with this Agreement or any other Loan Document shall be brought solely in
the Superior Court of Suffolk County Massachusetts or in the United States District Court, District
of Massachusetts, sitting in Boston, Massachusetts, and that such Courts shall have exclusive
jurisdiction with respect to any such action.

19-12. Indemnification. The Borrower shall indemnify, defend, and hold the Agent and each Revolving Credit Lender
and any of their respective employees, officers, or agents (each, an “Indemnified Person”) harmless
of and from any claim brought or threatened against any Indemnified Person by the Borrower, any
guarantor or endorser of the liabilities, or any other Person (as well as from attorneys’
reasonable fees, expenses, and disbursements in connection therewith) on account of the
relationship between the Agent and Revolving Credit Lenders, on the one hand, and the Borrower or
of any other guarantor or endorser of the Liabilities, on the other hand (each of claims which may
be defended, compromised, settled, or pursued
by the Indemnified Person with counsel of the Lender’s selection, but at the expense of the
Borrower) other than any claim as to which a final determination is made in a judicial proceeding
(in which the Agent and the other Indemnified Person has had an opportunity to be heard) which
determination includes a specific finding that the Indemnified Person seeking indemnification had
acted in a grossly negligent manner or in actual bad faith. This indemnification shall survive
payment of the Liabilities and/or any termination, release, or discharge executed by the Agent in
favor of the Borrower, other than a termination, release, or discharge duly executed on behalf of
the Agent which makes specific reference to this Section 19-12.

 

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19-13. Rules of Construction. The following rules of construction shall be applied in the interpretation, construction,
and enforcement of this Agreement and of the other Loan Documents:

(a) Unless otherwise specifically provided for herein, interest and any fee or charge which is
stated as a per annum percentage shall be calculated based on a 360 day year and actual days
elapsed.

(b) Words in the singular include the plural and words in the plural include the singular.

(c) Titles, headings (indicated by being underlined or shown in Small
Capitals) and any Table of Contents are solely for convenience of reference; do not constitute
a part of the instrument in which included; and do not affect such instrument’s meaning,
construction, or effect.

(d) The words “includes” and “including” are not limiting.

(e) Text which follows the words “including, without limitation” (or similar words) is
illustrative and not limitational.

(f) Text which is shown in italics (other than italicized text in parenthesis), shown in bold,
shown IN ALL CAPITAL LETTERS, or in any combination of the foregoing, shall be deemed to be
conspicuous.

(g) The words “may not” are prohibitive and not permissive.

(h) Any reference to a Person’s “knowledge” (or words of similar import) are to such Person’s
knowledge assuming that such Person has undertaken reasonable and diligent investigation with
respect to the subject of such “knowledge” (whether or not such investigation has actually been
undertaken).

(i) Terms which are defined in one section of any Loan Document are used with such definition
throughout the instrument in which so defined.

(j) The symbol “$” refers to United States Dollars.

(k) Unless limited by reference to a particular Section or provision, any reference to
“herein”, “hereof”, or “within” is to the entire Loan Document in which such reference is made.

 

104

 

(l) References to “this Agreement” or to any other Loan Document is to the subject instrument
as amended to the date on which application of such reference is being made.

(m) Except as otherwise specifically provided, all references to time are to Boston time.

(n) In the determination of any notice, grace, or other period of time prescribed or allowed
hereunder:

(i) Unless otherwise provided (I) the day of the act, event, or default from which the
designated period of time begins to run shall not be included and the last day of the period
so computed shall be included unless such last day is not a Business Day, in which event the
last day of the relevant period shall be the then next Business Day and (II) the period so
computed shall end at 5:00 PM on the relevant Business Day.

(ii) The word “from” means “from and including”.

(iii) The words “to” and “until” each mean “to, but excluding”.

(iv) The word “through” means “to and including”.

(o) The Loan Documents shall be construed and interpreted in a harmonious manner and in
keeping with the intentions set forth in Section 19-14 hereof, provided, however, in the event of
any inconsistency between the provisions of this Agreement and any other Loan Document, the
provisions of this Agreement shall govern and control.

19-14. Intent. It is intended that:

(a) This Agreement take effect as a sealed instrument.

(b) The scope of all Collateral Interests created by the Borrower to secure the Liabilities be
broadly construed in favor of the Agent and that they cover all assets of the Borrower, other than
Exempt Assets.

(c) All Collateral Interests created in favor of the Agent at any time and from time to time
by any the secure all Liabilities, whether now existing or contemplated or hereafter arising.

(d) All reasonable costs, expenses, and disbursements incurred by the Agent and, to the extent
provide in Section 19-8 each Revolving Credit Lender, in connection with such Person’s
relationship(s) with the Borrower shall be borne by the Borrower.

(e) Unless otherwise explicitly provided herein, the Agent’s consent to any action of the
Borrower which is prohibited unless such consent is given may be given or refused by the Agent in
its sole discretion and without reference to Section 2-17 hereof.

 

105

 

19-15. Participations. Each Revolving Credit Lender may sell participations to one or more financial institutions
(each, a “Participant”) in that Revolving Credit Lender’s interests herein provided that no such
participation shall include any provision which accords that Participant with any rights, vis a vis
the Agent, with respect to any requirement herein for approval by a requisite number or proportion
of the Revolving Credit Lenders. No such sale of a participation shall relieve a Revolving Credit
Lender from that Revolving Credit Lender’s obligations hereunder nor obligate the Agent to any
Person other than a Revolving Credit Lender.

19-16. Right of Set-Off. Any and all deposits or other sums at any time credited by or due to the Borrower from the
Agent or any Revolving Credit Lender, and any cash, securities, instruments or other property of
the Borrower in the possession of any of the foregoing, whether for safekeeping or otherwise
(regardless of the reason such Person had received the same) shall at all times constitute security
for all Liabilities and for any and all obligations of the Borrower to the Agent and such Revolving
Credit Lender and may be applied or set off against the Liabilities and against such obligations at
any time after the occurrence of an Event of Default, whether or not other collateral is then
available to the Agent or that Revolving Credit Lender.

19-17. Pledges To Federal Reserve Banks. Nothing included in this Agreement shall prevent or limit any Revolving Credit Lender, to
the extent that such Revolving Credit Lender is subject to any of the twelve Federal Reserve Banks
organized under §4 of the Federal Reserve Act (12 U.S.C. §341) from pledging all or any portion of
that Lender’s interest and rights under this Agreement, provided, however, neither such pledge nor
the enforcement thereof shall release the pledging Revolving Credit Lender from any of its
obligations hereunder or under any of the Loan Documents.

19-18. Maximum Interest Rate.

(a) No interest rate specified in this Agreement or any other Loan Document shall at any time
exceed the Maximum Rate.

(b) If at any time the interest rate (the “Contract Rate”) for any Liability shall exceed the
Maximum Rate, so that, as provided in Section 19-18(a), interest accruing on such Liability is
limited to the Maximum Rate, then any subsequent reduction in the Contract Rate for such Liability
shall not reduce the rate of interest on such Liability below the Maximum Rate until the aggregate
amount of interest accrued on such Liability equals the aggregate amount of interest which would
have accrued on such Liability if the Contract Rate for such Liability had at all times been in
effect.

 

106

 

(c) Notwithstanding anything to the contrary contained in this Agreement or the other Loan
Documents, none of the terms and provisions of this Agreement or the other Loan Documents shall
ever be construed to create a contract or obligation to pay interest at a rate in excess of the
Maximum Rate; and neither the Agent nor any Revolving Credit Lender shall ever charge, receive,
take, collect, reserve or apply, as interest on the Liabilities, any amount in excess of the
Maximum Rate. The Agent, each Revolving Credit Lender and the Borrower each agrees that any
interest, charge, fee, expense or other Liability provided for in this Agreement or in the other
Loan Documents which constitutes interest under applicable law, ipso facto and under any and all
circumstances, shall be limited or reduced to an amount equal to the lesser of (x) the amount of
such interest, charge, fee, expense or other Liability that would be payable in the absence of this
Section 19-18, or (y) an amount, which when added to all other interest payable under this
Agreement and the other Loan Documents, equals the Maximum Rate. If, notwithstanding the
foregoing, the Agent or any Revolving Credit Lender ever contracts for, charges, receives, takes,
collects, reserves or applies as interest any amount in excess of the Maximum Rate, such amount
which would be deemed excessive interest shall be deemed a partial payment or prepayment of
principal of the Liabilities and treated hereunder as such; and if the Liabilities, or applicable
portions thereof, are paid in full, any remaining excess shall promptly be paid to the Borrower.
In determining whether the interest paid or payable, under any specific contingency, exceeds the
Maximum Rate, the Agent, each Revolving Credit Lender and the Borrower, to the maximum extent
permitted by Applicable Law, shall (i) characterize any non-principal payment as an expense, fee or
premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and
(iii) amortize, prorate, allocate and spread in equal or unequal parts the total amount of interest
throughout the actual term of the Liabilities, or applicable portions thereof, so that the interest
rate does not exceed the Maximum Rate at any time during the term of the Liabilities.

19-19. Waivers.

(a) The Borrower (and all guarantors, endorsers, and sureties of the Liabilities) make each of
the waivers included in Section 19-19(b), below, knowingly, voluntarily, and intentionally, and
understands that Agent and each Revolving Credit Lender, in establishing the facilities
contemplated
hereby and in providing loans and other financial accommodations to or for the account of the
Borrower as provided herein, whether not or in the future, is relying on such waivers.

(b) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER, AND EACH SUCH GUARANTOR,
ENDORSER, AND SURETY RESPECTIVELY WAIVES THE FOLLOWING:

(i) Except as otherwise specifically required hereby, notice of non-payment, demand,
presentment, protest and all forms of demand and notice, both with respect to the
Liabilities and the Collateral.

(ii) Except as otherwise specifically required hereby, the right to notice and/or
hearing prior to the Agent’s exercising of the Agent’s rights upon default.

 

107

 

(iii) THE RIGHT TO A JURY IN ANY TRIAL OF ANY CASE OR CONTROVERSY IN WHICH THE AGENT OR
ANY REVOLVING CREDIT LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS
INITIATED BY OR AGAINST THE AGENT OR ANY REVOLVING CREDIT LENDER OR IN WHICH THE AGENT OR
ANY REVOLVING CREDIT LENDER IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES
OUT OF OR IS IN RESPECT OF, ANY RELATIONSHIP AMONGST OR BETWEEN THE BORROWER OR ANY OTHER
PERSON (AND THE AGENT OR EACH REVOLVING CREDIT LENDER LIKEWISE WAIVES THE RIGHT TO A JURY IN
ANY TRIAL OF ANY SUCH CASE OR CONTROVERSY).

(iv) The benefits or availability of any stay, limitation, hindrance, delay, or
restriction (including, without limitation, any automatic stay which otherwise might be
imposed pursuant to Section 362 of the Bankruptcy Code) with respect to any action which the
Agent may or may become entitled to take hereunder.

(v) Any defense, counterclaim, set-off, recoupment, or other basis on which the amount
of any Liability, as stated on the books and records of the Agent, could be reduced or
claimed to be paid otherwise than in accordance with the tenor of and written terms of such
Liability.

(vi) Any claim to consequential, special, or punitive damages.

19-20. ENTIRE AGREEMENT. THIS WRITTEN AGREEMENT AND ALL OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES WITH RESPECT TO THE SUBJECT MATTER COVERED HEREBY AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES. THERE ARE NO UNWRITTEN
AGREEMENTS BETWEEN THE PARTIES.

 

108

 

19-21. Foreign Asset Control Regulations. Neither the advance of the Revolving Credit Loans nor the use of the proceeds of any
thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the
“Trading With the Enemy Act”) or any of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign
Assets Control
Regulations”) or any enabling legislation or executive order relating thereto (which for the
avoidance of doubt shall include, but shall not be limited to (a) Executive Order 13224 of
September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (Public Law 107-56)). Furthermore, neither the Borrower nor any of its
Affiliates (a) is or will become a “blocked person” as described in the Executive Order, the
Trading With the Enemy Act or the Foreign Assets Control Regulations or (b) engages or will engage
in any dealings or transactions, or be otherwise associated, with any such “blocked person” or in
any manner violative of any such order.

19-22. USA PATRIOT Act Notice. Each Revolving Credit Lender that is subject to the Act (as hereinafter defined) and the
Agent (for itself and not on behalf of any Revolving Credit Lender) hereby notifies the Borrower
and Guarantors that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies the Borrower, which information includes the name and
address of the Borrower and other information that will allow such Revolving Credit Lender or the
Agent, as applicable, to identify the Borrower in accordance with the Act. The Borrower is in
compliance, in all material respects, with the Patriot Act. No part of the proceeds of the
Revolving Credit Loans will be used by the Borrower, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

 

109

 

19-23. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees that: (i) the credit facility provided for hereunder and any related
arranging or other services in connection therewith (including in connection with any amendment,
waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrower, on the one hand, and the Agent and the Revolving Credit Lenders,
on the other hand, and the Borrower is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated hereby and by the other
Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in
connection with the process leading to such transaction, each Revolving Credit Lender is and has
been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the
Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person; (iii)
none of the Agent or the Revolving Credit Lenders has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Borrower with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to any amendment, waiver
or other modification hereof or of any other Loan Document (irrespective of whether any of the
Agent or Revolving Credit Lenders has advised or is currently advising the Borrower or any of its
Affiliates on other matters) and none of the Agent or Revolving Credit Lenders has any obligation
to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Agent
and the Revolving Credit Lenders and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower and its Affiliates, and
none of the Agent or the Revolving Credit Lenders has any obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Agent and the
Revolving Credit Lenders have not provided and will not provide any legal, accounting, regulatory
or tax advice with respect to any of the transactions contemplated hereby (including any amendment,
waiver or other modification hereof or of any other Loan Document) and the Borrower has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate.
The Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it
may have against each of the Agent and Revolving Credit Lenders with respect to any breach or
alleged breach of agency or fiduciary duty.

19-24. Original Credit Agreement Amended and Restated. Upon satisfaction of the conditions precedent to the effectiveness of this Agreement, (a)
this Agreement shall amend and restate the Original Credit Agreement in its entirety, and (b) the
rights and obligations of the parties under the Original Credit Agreement shall be subsumed within,
and be governed by, this Agreement; provided, however, that the Borrower hereby
agrees that (i) the L/Cs outstandings
under the Original Credit Agreement on the effective date hereof shall be L/Cs hereunder, and
(ii) all outstanding Liabilities of the Borrower under the Original Credit Agreement shall remain
outstanding, shall constitute continuing Liabilities secured by the Collateral, and this Agreement
shall not be deemed to evidence or result in a novation or repayment and reborrowing of such
obligations and other liabilities.

[Signature Pages Follow]

 

110

 

	 	 	 	 	 
	HASTINGS ENTERTAINMENT, INC.,	 	 
	As Borrower	 	 
	 
	 	 	 	 
	By

	 	/s/ Dan Crow	 	 
	 

	 	 

Print Name: Dan Crow
	 	 
	 

	 	Title: CFO and Vice President	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A.,	 	 
	As Agent and Revolving Credit Lender	 	 
	 
	 	 	 	 
	By

	 	/s/ Matthew Potter	 	 
	 

	 	 

Print Name: Matthew Potter
	 	 
	 

	 	Title: Vice President	 	 

Signature Page to Loan and Security Agreement

 

 

 

EXHIBITS TO LOAN AND SECURITY AGREEMENT

 

 

 

EXHIBIT 2-7(c)

AMENDED AND RESTATED SWINGLINE NOTE

			
	 	 	 
	Boston, Massachusetts
	 	July
 _____, 2010

FOR VALUE RECEIVED, the undersigned, Hastings Entertainment, Inc., a Texas corporation with
its principal executive offices at 3601 Plains Boulevard, Amarillo, Texas 79102 (the “Borrower”)
promises to pay to the order of Bank of America, NA, a national association with offices at 100
Federal Street, Boston, Massachusetts 021 10 (with any subsequent holder, the “SwingLine Lender”)
the unpaid principal balance of SwingLine Loans made to the Borrower pursuant to the Amended and
Restated Loan and Security Agreement of even date (as such may be amended hereafter, the “Loan
Agreement’) between Bank of America, N.A., a national association with offices at 100 Federal
Street, Boston, Massachusetts 021 10 (in such capacity, the “Agent”), as agent for the ratable
benefit of the “Revolving Credit Lenders”, on the one hand, and the Borrower, on the other, with
interest at the rate and payable in the manner stated therein. Capitalized terms used but not
otherwise defined herein shall have the meanings assigned thereto in the Loan Agreement. This
Amended and Restated Swingline Note replaces in its entirety that certain SwingLine Note dated
August 29, 2000, by the Borrower and payable to the SwingLine Lender, as successor in interest to
Fleet Retail Finance Inc.

This Amended and Restated Swingline Note is hereinafter referred to as the “SwingLine Note”
(this “Note”) to which reference is made in the Loan Agreement and is subject to all terms and
provisions thereof. The principal of, and interest on, this Note shall be payable as provided in
the Loan Agreement and shall be subject to Acceleration as provided therein.

In the absence of manifest error, the Agent’s books and records concerning SwingLine Loans,
the accrual of interest thereon, and the repayment of such SwingLine Loans, shall be prima facie
evidence of the Indebtedness hereunder.

No delay or omission by the Agent or the SwingLine Lender in exercising or enforcing any of
their respective powers, rights, privileges, remedies, or discretions hereunder shall operate as a
waiver thereof on that occasion nor on any other occasion. No waiver of any Event of Default with
respect hereto shall operate as a waiver of any other Event of Default hereunder, nor as a
continuing waiver.

The Borrower, and each endorser and guarantor of this Note, respectively waives presentment,
demand, notice, and protest, and also waives any delay on the part of the holder hereof. Each of
the Borrower and any endorser and guarantor hereof assents to any extension or other indulgence
(including, without limitation, the release or substitution of Collateral) permitted by the Agent
with respect to this Note and/or any Collateral given to secure this Note.

This Note shall be binding upon the Borrower, and each endorser and guarantor hereof, and upon
their respective heirs, successors, assigns, and representatives, and shall inure to the benefit of
the SwingLine Lender and its successors, endorsees, and assigns. This Note is delivered at the
offices of the Agent in Boston, Massachusetts and shall be governed by the laws of the Commonwealth
of Massachusetts, and shall take effect as a sealed instrument.

 

 

 

EXHIBIT 2-7(c)

The Liabilities of the Borrower, and of any endorser or guarantor of this Note, are joint and
several, provided, however, the release by the SwingLine Lender or the Agent of any one or more of
the
Borrower or such endorsers or guarantors shall not release any other Person obligated on
account of this Note. Each reference in this Note to the Borrower, any endorser, and any guarantor,
is to such Person individually and also to all such Persons jointly. No Person obligated on account
of this Note may seek contribution from any other person also obligated unless and until all
Liabilities to the SwingLine Lender of the Person from whom contribution is sought have been
satisfied in full.

The Borrower makes the following waiver knowingly, voluntarily, and intentionally, and
understands that the Agent and the SwingLine Lender in the establishment and maintenance of their
respective relationship with the Borrower contemplated by this Note, is relying thereon. THE
BORROWER, AND EACH ENDORSER AND GUARANTOR OF THIS NOTE, TO THE EXTENT ENTITLED THERETO,
RESPECTIVELY WAIVES ANY PRESENT OR FUTURE RIGHT IT MAY HAVE ON ACCOUNT OF OR IN RESPECT TO THE
LIABILITIES, TO A TRIAL BY JURY IN ANY CASE OR CONTROVERSY IN WHICH THE AGENT AND/OR THE SWINGLINE
LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST THE AGENT
AND/OR THE SWINGLINE LENDER OR IN WHICH THE AGENT AND/OR THE SWINGLINE LENDER IS JOINED AS A PARTY
LITIGANT) THAT ARISES OUT OF, OR IS IN RESPECT TO, THIS NOTE, THE LOAN AGREEMENT OR ANY OTHER LOAN
DOCUMENTS.

[signature page follows]

 

 

 

EXHIBIT 2-7(c)

IN WITNESS WHEREOF, the Borrower has caused this SwingLine Note to be duly executed as of the
date set forth above.

	 	 	 	 	 
	 	HASTINGS ENTERTAINMENT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to SwingLine Note]

 

 

 

EXHIBIT 2-9

[AMENDED AND RESTATED] 1 REVOLVING CREDIT NOTE

	 	 	 
	Boston, Massachusetts

	 	July
 _____, 2010
	$                     

	 	Payee                     

FOR VALUE RECEIVED, the undersigned, Hastings Entertainment, Inc., a Texas corporation with
its principal executive offices at 3601 Plains Boulevard, Amarillo, Texas 79102 (the “Borrower”)
promises to pay to the order of (with any subsequent holder, a “Revolving Credit Lender”) that
amount which the Revolving Credit Lender has advanced towards the aggregate unpaid principal
balance of Revolving Credit Loans made to or for the account of the Borrower pursuant to the
Amended and Restated Loan and Security Agreement of even date (as such may be amended hereafter,
the “Loan Agreement”) between Bank of America, N.A., a national association with its offices at 100
Federal Street, Boston, Massachusetts 021 10 (in such capacity, the “Agent”), as agent for the
ratable benefit of the “Revolving Credit Lenders”, on the one hand, and the Borrower, on the other,
with interest at the rate and payable in the manner stated therein. Capitalized terms used but not
otherwise defined herein shall have the meanings assigned thereto in the Loan Agreement. [This
Amended and Restated Revolving Credit Note replaces in its entirety that certain Revolving Credit
Note dated                     , by the Borrower, payable to the Revolving Credit Lender.]

This is a “Revolving Credit Note” (this “Note”) to which reference is made in the Loan
Agreement and is subject to all terms and provisions thereof. The principal of, and interest on,
this Note shall be payable as provided in the Loan Agreement and shall be subject to Acceleration
as provided therein.

In the absence of manifest error, the Agent’s books and records concerning Revolving Credit
Loans, the accrual of interest thereon, and the repayment of such Revolving Credit Loans, shall be
prima facie evidence of the Indebtedness hereunder.

No delay or omission by the Agent or any Revolving Credit Lender in exercising or enforcing
any of the Agent’s or such Revolving Credit Lender’s powers, rights, privileges, remedies, or
discretions hereunder shall operate as a waiver thereof on that occasion nor on any other occasion.
No waiver of any Event of Default with respect hereto hereunder shall operate as a waiver of any
other Event of Default hereunder, nor as a continuing waiver.

The Borrower, and each endorser and guarantor of this Note, respectively waives presentment,
demand, notice, and protest, and also waives any delay on the part of the holder hereof. Each of
the Borrower and any endorser or guarantor hereof assents to any extension or other indulgence
(including, without limitation, the release or substitution of Collateral) permitted by the Agent
with respect to this Note and/or any Collateral given to secure this Note.

This Note shall be binding upon the Borrower, and each endorser and guarantor hereof, and upon
their respective heirs, successors, assigns, and representatives, and shall inure to the benefit of
the Revolving Credit Lender and its successors, endorsees, and assigns.

 

	 	 	 
	1 NTD:	 	 Insert bracketed language if appropriate.

 

 

 

EXHIBIT 2-9

The Liabilities of the Borrower, and of any endorser or guarantor of this Note, are joint and
several, provided, however, the release by the Agent or the Revolving Credit Lender of any one or
more of the Borrower or endorsers or guarantors shall not release any other Person obligated on
account of this Note. Each reference in this Note to the Borrower, any endorser, and any guarantor,
is to such Person individually and also to all such Persons jointly. No Person obligated on account
of this Note may seek contribution from any other Person also obligated unless and until all
Liabilities to the Revolving Credit Lender of the Person from whom contribution is sought have been
satisfied in full.

This Note is delivered at the offices of the Agent in Boston, Massachusetts and shall be
governed by the laws of the Commonwealth of Massachusetts, and shall take effect as a sealed
instrument.

The Borrower makes the following waiver knowingly, voluntarily, and intentionally, and
understands that the Agent and the Revolving Credit Lender in the establishment and maintenance of
their respective relationship with the Borrower contemplated by this Note, is relying thereon: THE
BORROWER, AND EACH ENDORSER AND GUARANTOR OF THIS NOTE TO THE EXTENT ENTITLED THERETO, RESPECTIVELY
WAIVES ANY PRESENT OR FUTURE RIGHT IT MAY HAVE ON ACCOUNT OF OR IN RESPECT TO THE LIABILITIES, TO A
TRIAL BY JURY IN ANY CASE OR CONTROVERSY IN WHICH THE AGENT AND/OR ANY REVOLVING CREDIT LENDER IS
OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST THE AGENT AND/OR
ANY REVOLVING CREDIT LENDER OR IN WHICH THE AGENT AND/OR ANY REVOLVING CREDIT LENDER IS JOINED AS A
PARTY LITIGANT), THAT ARISES OUT OF, OR IS IN RESPECT TO, THIS NOTE, THE LOAN AGREEMENT OR ANY
OTHER LOAN DOCUMENTS.

[Signature Page follows]

 

 

 

EXHIBIT 2-9

IN WITNESS WHEREOF, the Borrower has caused this Revolving Credit Note to be duly executed as
of the date set forth above.

	 	 	 	 	 
	 	HASTINGS ENTERTAINMENT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Revolving Credit Note]

 

 

 

EXHIBIT 2-22

Revolving Credit Lenders’ Commitments

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving Credit	 
	 	 	Revolving Credit Dollar	 	 	Percentage	 
	Revolving Credit Lender:	 	Commitment:	 	 	Commitment:	 
	Bank of America, N.A.
	 	$	100,000,000	 	 	 	100	%
	All Lenders
	 	$	100,000,000	 	 	 	100	%

 

 

 

EXHIBIT 4-2

Subsidiaries

	 	 	 	 	 
	 	 	PERCENTAGE OF OWNERSHIP BY	 
	SUBSIDIARIES OF	 	HASTINGS ENTERTAINMENT, INC. OF	 
	HASTINGS ENTERTAINMENT, INC.	 	CAPITAL STOCK IN EACH SUBSIDIARY	 
	 
	 	 	 	 
	Hastings Internet, Inc. a Nevada Corporation
	 	 	100	%

 

 

 

EXHIBIT 4-3

Trade Names

Hastings Entertainment

Hastings Books, Music and Video

Hastings

Hastings, Your Entertainment Superstore

Hastings, Discover Your Entertainment

Sun Adventure Sports

goHastings

goHastings.com

Hardback Café

Hardback Coffee Café

Tradesmart

Mergers

None

 

 

 

EXHIBIT 4-5

Locations, Leases, and Landlords

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9301

	 	Amarillo Bike
	 	W.A. Mays and Agnes
Mays Trust II
	 	914 S. Tyler
	 	Amarillo
	 	TX
	 	 	79101	 	 	Randy Sharp
	 	 	806 376 5417	 	 	 	806 376 3764	 	 	2020 S. Georgia
	 	Amarillo
	 	TX
	 	 	79109	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9602

	 	Nacogdoches
	 	Commercial Net Lease
Realty, Inc.
	 	450 South Orange
Avenue, Suite 900
	 	Orlando
	 	FL
	 	 	32801	 	 	Stacy Bollon
	 	 	407 650 3685	 	 	 	407 650 3650	 	 	4501 North Street
	 	Nacogdoches
	 	TX
	 	 	75961	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9603

	 	Plainview
	 	Westview Center, LP 

c/o Kim Martin
Company, Inc.
	 	P.O. Box 3218
	 	Ft. Worth
	 	TX
	 	 	76113	 	 	Melisa Secrest
	 	 	817-336-1880	 	 	 	817-336-1893	 	 	3305 Olton Rd.
	 	Plainview
	 	TX
	 	 	79072	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9604

	 	Amarillo Georgia & Wolflin
	 	W.A. Mays and Agnes
Mays Trust II
	 	914 S. Tyler
	 	Amarillo
	 	TX
	 	 	79101	 	 	Randy Sharp
	 	 	806 376 5417	 	 	 	806 376 3764	 	 	2020 S. Georgia
	 	Amarillo
	 	TX
	 	 	79109	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9605

	 	Amarillo 45th & Teckla
	 	Western Square
Investments
	 	1715 W. 58th
	 	Amarillo
	 	TX
	 	 	79110	 	 	Ann Crouch
	 	 	806 352 2706	 	 	 	806-352-6313	 	 	4301 SW 45th
	 	Amarillo
	 	TX
	 	 	79109	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9606

	 	Carlsbad
	 	1340 East 9th Street
Realty Corp.
	 	1716 Coney Island Ave
	 	Brooklyn
	 	NY
	 	 	11230	 	 	Samuel or Samson Pinter
	 	 	718-535-3795	 	 	 	718-338-1019	 	 	1601 W. Pierce
	 	Carlsbad
	 	NM
	 	 	88220	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9607

	 	Garden City
	 	Mid America
Associates
 c/o
Fishman & Co.
	 	1948 East Santa Fe
	 	Olathe
	 	KS
	 	 	66062	 	 	Michael Fishman
	 	 	913 782 9000	 	 	 	913 764 5701	 	 	2108 E. Kansas Ave.
	 	Garden City
	 	KS
	 	 	67846	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9608

	 	San Angelo
	 	RDF 209 Sunset San
Angelo,
 TX P1 LLC

c/o N3 Development, Ltd
	 	620 E Southlake Blvd
	 	Southlake
	 	TX
	 	 	76092	 	 	Jan Davidson
	 	 	817.348.8748	 	 	 	817.348.8468	 	 	4238 Sunset Drive
	 	San Angelo
	 	TX
	 	 	76904	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9609

	 	Farmington
	 	Peterson Properties
& Associates
	 	2325 San Pedro
NE, Suite 2-4
	 	Albuquerque
	 	NM
	 	 	87110	 	 	Doug Peterson
	 	 	505 884 3578	 	 	 	505 884 6793	 	 	3020 E. 20th St.
	 	Farmington
	 	NM
	 	 	87402	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9610

	 	San Marcos
	 	SanMar Dunhill Ratel
LLC
	 	3100 Monticello, Suite
300
	 	Dallas
	 	TX
	 	 	75205	 	 	Steve Hagara, PM
	 	 	214 261 9589	 	 	 	214 373 7535	 	 	917 S. Highway 80
	 	San Marcos
	 	TX
	 	 	78667	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9611

	 	Alamogordo
	 	CAP II — 10th/With
Sands, LLC
 c/o
Peterson Properties
Real Estate
Services, Inc.
	 	2325 San Pedro
NE, Suite 2A
	 	Albuquerque
	 	NM
	 	 	87110	 	 	James Peterson
	 	 	505 884 3578	 	 	 	505 884 6793	 	 	805 N. White Sands
Blvd
	 	Alamogordo
	 	NM
	 	 	88310	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9613

	 	Borger
	 	North Park
Associates, LLC 
c/o
Sterling Properties
	 	1018 Van Buren
	 	Amarillo
	 	TX
	 	 	79101	 	 	Dennis Beene
	 	 	806 373 1076	 	 	 	806 373 4455	 	 	1329 W. Wilson
	 	Borger
	 	TX
	 	 	79007	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9614

	 	Abilene
	 	Abilene Frenchmans
Creek 93, LTD
 c/o
Paul Johnson and
Assoc
	 	4633 S 14th St,
	 	Abilene
	 	TX
	 	 	79605	 	 	Anna Humphreys
	 	 	325.698.5661	 	 	 	352.692.8508	 	 	4709 S. 14th Street
	 	Abilene
	 	TX
	 	 	79605	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9615

	 	Dodge City
	 	Comanche Plaza
 c/o
The Phoenix Real
Estate Co., Inc.
	 	P.O. Box 47458, 260 N
Rock Rd,
 #165 (67206)
	 	Wichita
	 	KS
	 	 	67201	 	 	Ted Williams
	 	 	316 683 5551	 	 	 	316 683 6759	 	 	1701 N. 14th
	 	Dodge City
	 	KS
	 	 	67801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9616

	 	College Station
	 	H.E. Butt Store
Property Company No.
One 
c/o Real Estate
Dept.
	 	P.O. Box 839955
	 	San Antonio
	 	TX
	 	 	78283-3955	 	 	Britt Baker
	 	 	210 938 8290	 	 	 	210 938 7788	 	 	2004 Texas Ave.
South
	 	College Station
	 	TX
	 	 	77840	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9617

	 	Paris
	 	Alpha Lake Ltd. c/o
John C. Culpepper,
Jr.
	 	1700 George Bush Dirve
East, Ste 240, P.O.
Drawer JC
	 	College Station
	 	TX
	 	 	77840	 	 	John Culpepper
	 	 	979 696 1444	 	 	 	979 696 3651	 	 	3518 Lamar Avenue
	 	Paris
	 	TX
	 	 	75460	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9618

	 	Hobbs
	 	Hobbs partners and
Republic Properties 

c/o Walter Kuhn
	 	300 Bridge Street
	 	Big Fork
	 	MT
	 	 	59911	 	 	Walter Kuhn
	 	 	406.837.4550	 	 	 	406.837.4593	 	 	1822 N. Turner St.
	 	Hobbs
	 	NM
	 	 	88240	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9619

	 	Seguin
	 	KPS King Properties
of Seguin, L.P.
	 	1117 E.Court
	 	Seguin
	 	TX
	 	 	78155	 	 	Ken King
	 	 	830 379 5251	 	 	 	 	 	 	1380 E. Court St.
	 	Seguin
	 	TX
	 	 	78155	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9620

	 	Albuquerque Lomas Blvd.
	 	Fair Plaza, Inc.
	 	#10 Tramway Loop, NE
	 	Albuquerque
	 	NM
	 	 	87122	 	 	Cindy Kemper
	 	 	505 856 2726	 	 	 	505 299 8024	 	 	6001-R Lomas Blvd.
NE
	 	Albuquerque
	 	NM
	 	 	87110	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9622

	 	Victoria
	 	Centro NP Holdings 2
SPE, LLC
	 	420 Lexington
Avenue, 7th Floor
	 	New York
	 	NY
	 	 	10170	 	 	Attn: Legal Dept.
	 	 	212-869-3000	 	 	 	212-302-4776	 	 	5206 N. Navarro
	 	Victoria
	 	TX
	 	 	77901	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9623

	 	Conway
	 	English Village
Joint Venture
 c/o
The Wilson Company,
Inc.
	 	1524 S. Garfield, Suite B
	 	Little Rock
	 	AR
	 	 	72204	 	 	Janet Dillon
	 	 	501 666 3466	 	 	 	501 666 3470	 	 	1360 Hwy.64 West
	 	Conway
	 	AR
	 	 	72032	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9624

	 	Jacksonville
	 	RPM Management
Company, Inc.
	 	P.O. Box 7300, 1501
North University
	 	Little Rock
	 	AR
	 	 	72217-7300	 	 	Ron Goss
	 	 	501 664 7807	 	 	 	501 664 0145	 	 	915 W. Main
	 	Jacksonville
	 	AR
	 	 	72076	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9627

	 	Longview
	 	Oak Forest Group,
Ltd.
 c/o Beer Wells
Real Estate Service
	 	P.O. Box 3449
	 	Longview
	 	TX
	 	 	75606	 	 	Ms. Cappi Northcutt
	 	 	903 753 2191	 	 	 	903 753 3913	 	 	405 NW Loop 281, #2
	 	Longview
	 	TX
	 	 	75604	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9628

	 	Brownwood
	 	Hal M. Shaw and Ruth
Kay Shaw
	 	P.O. Box 1426
	 	Brownwood
	 	TX
	 	 	76804	 	 	Hal Shaw
	 	 	915-649-3707	 	 	 	 	 	 	600 N. Center Ave.
	 	Brownwood
	 	TX
	 	 	76801	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9629

	 	Albuquerque Wyoming St.
	 	Wal-Mart Stores
East, LP
 c/o Asset
Management Dept.
	 	2001 SE 10th St.
	 	Bentonville
	 	AR
	 	 	72712-6489	 	 	Scott Sill-Asset Mgr
	 	 	479 273 4710	 	 	 	479 204 9841	 	 	4315 Woming NE
	 	Albuquerque
	 	NM
	 	 	87111	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9630

	 	Albuquerque Juan Tabo
	 	Manzano Plaza
Partners
 c/o
Eisenberg Company
	 	2231 East Camelback
Road, Suite 250
	 	Phoenix
	 	AZ
	 	 	85016	 	 	Craig Eisenberg
	 	 	602 468 6100	 	 	 	602 468 6103	 	 	840 Juan Tabo NE,
Suite A
	 	Albuquerque
	 	NM
	 	 	87123	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9636

	 	Roswell
	 	Spirit Master
Funding, LLC 
c/o
Midland Loan
Services, Inc.
	 	P.O. Box 419201
	 	Kansas City
	 	MO
	 	 	64141-6127	 	 	Cathy Phillips
	 	 	480 315 6589	 	 	 	480 606 0826	 	 	1705 N. Main
	 	Roswell
	 	NM
	 	 	88201	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9638

	 	Joplin
	 	Kimco Joplin 707,
Inc.
 c/o Kimco
Realty Corporation
	 	P.O. Box 5020, 3333 New
Hyde Park Rd
	 	New Hyde Park
	 	NY
	 	 	11042-0020	 	 	Marsha Roush (ext.202)
	 	 	516 869 9000	 	 	 	516 869 7140	 	 	526 S. Range Line Rd
	 	Joplin
	 	MO
	 	 	64801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9639

	 	Albuquerque Coors Rd.
	 	6051 Winter Haven,
LLC
 c/o Roger Cox &
Associates, Inc.
	 	1717 Louisiana Blvd.
NE, Suite 111
	 	Albuquerque
	 	NM
	 	 	87110	 	 	Brian Anderson
	 	 	505 254 2324	 	 	 	505 260 2179	 	 	6051 Winter Haven
Drive NW
	 	Albuquerque
	 	NM
	 	 	87120	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9642

	 	Midland
	 	3111 Cuthbert
Corporation
	 	505 N. Big Spring,
Suite 604, P.O. Box
8610
	 	Midland
	 	TX
	 	 	79708	 	 	John Smart
	 	 	915-682-6002	 	 	 	915-682-6050	 	 	3111 W. Cuthbert, #3
	 	Midland
	 	TX
	 	 	79701	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9647

	 	Santa Fe — DeVargas Mall
	 	Devargas Center
Associates
	 	19 Briar Hollow Ln,
Suite 100
	 	Houston
	 	TX
	 	 	77027	 	 	Katy Fitzgerald
	 	 	505.982.2655	 	 	 	 	 	 	542 N. Guadalupe
	 	Santa Fe
	 	NM
	 	 	87501	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9652

	 	Lawton
	 	R & B Properties
	 	60 NW Sheridan
Rd., Suite 1
	 	Lawton
	 	OK
	 	 	73505	 	 	Mr. Carroll Rogers
	 	 	580 355 6165	 	 	 	580 248 7446	 	 	616 NW Sheridan Rd.
	 	Lawton
	 	OK
	 	 	73505	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9655

	 	Ada
	 	Eagle-North Hills
Shopping Centre, LP

c/o Eagle Equity,
Inc
	 	3 Lincoln Centre, 5430
LBJ Freeway, Suite 1575
	 	Dallas
	 	TX
	 	 	75240-2641	 	 	Grant Threadgill,
Property Mgr.
	 	 	972-770-2261	 	 	 	 	 	 	1140 Lonnie Abbott
Ind Blvd
	 	Ada
	 	OK
	 	 	74820	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9659

	 	Round Rock
	 	Southwestern Retail
Properties II, L.C.
	 	2000 South IH35, Suite
Q11, Suite Q11
	 	Round Rock
	 	TX
	 	 	78681	 	 	Allan Reagan/Nicole Deal
(property mgr)
	 	 	512 238 0938	 	 	 	512 238 6637	 	 	2200 S. IH-35, #B1
	 	Round Rock
	 	TX
	 	 	78681	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9660

	 	Benton
	 	Military Road Properties, LLC
	 	1524 S. Garfield, Suite
B
	 	Little Rock
	 	AR
	 	 	72204	 	 	Ken McRae
	 	 	501 661 1313	 	 	 	501 661 9538	 	 	1421 Military Rd.
	 	Benton
	 	AR
	 	 	72015	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9661

	 	Ponca City
	 	Ponca Shopping
Center, LLC
 c/o
Dunhill Partners,
Inc.
	 	3100 Monticello, Suite
300
	 	Dallas
	 	TX
	 	 	75205	 	 	Nelson Billups
	 	 	214 373 7500	 	 	 	214 373 7535	 	 	2900 N. 14th St.
	 	Ponca City
	 	OK
	 	 	74601	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9662

	 	Billings
	 	West Park Plaza

Associates, LLC c/o

Colliers

International
	 	602 SW Second Ave
Suite 1950, PO Box 4857
(97208 zip)
	 	Portland
	 	OR
	 	 	97205	 	 	Lisa Johnston
	 	 	503.499.0072	 	 	 	503.265.5055	 	 	1604 Grand Ave.
	 	Billings
	 	MT
	 	 	59103	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9663

	 	Wichita Falls
	 	TPRF/The Falls, L.P.
c/o Thackeray
Partners (notices)
c/o Hupp Bauer
Hanson & Lewis
(rent)
	 	5207 McKinney Ave
Suite 200, Dallas, TX
75205,
	 	Dallas
	 	TX
	 	 	75205	 	 	Ryan Stempf (notices)

Stacie Moss (rent)
	 	 	214 360 7830	 	 	 	214-360-7831	 	 	2801 SW Parkway
	 	Wichita Falls
	 	TX
	 	 	76308	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9664

	 	Bryan
	 	Tejas Center
Corporation c/o John
C. Culpepper, Jr.
	 	1700 George Bush
South, Suite 240
	 	College Station
	 	TX
	 	 	77840	 	 	John Culpepper
	 	 	409 696 1444	 	 	 	979 696 3651	 	 	725 E. Villa Maria,
Ste. 1100
	 	Bryan
	 	TX
	 	 	77801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9665

	 	Fayetteville
	 	Mathias Shopping
Centers, Inc.
	 	P.O. Box 6485
	 	Springdale
	 	AR
	 	 	76766	 	 	Curtis Wray
	 	 	479 750 9100	 	 	 	479 750 0953	 	 	2999 N. College Ave.
	 	Fayetteville
	 	AR
	 	 	72702	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9666

	 	Las Cruces
	 	Wal-Mart Stores
East, LP c/o Asset
Management Dept.
	 	2001 SE 10th St.
	 	Bentonville
	 	AR
	 	 	72712-6489	 	 	Scott Sill-Asset Mgr
	 	 	479 273 4710	 	 	 	479 204 9841	 	 	2350 Lohman, Space D
	 	Las Cruces
	 	NM
	 	 	88001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9668

	 	Pampa
	 	D.J. Investments
	 	2545 Perryton Parkway
	 	Pampa
	 	TX
	 	 	79065	 	 	Mrs. Irvine Ripahn
	 	 	806 669 1225	 	 	 	 	 	 	1205 N. Hobart
	 	Pampa
	 	TX
	 	 	79065	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9672

	 	Jonesboro
	 	1666 N. Avalonn, LLC
c/o Caraway Plaza
Shopping Center
	 	22800 Lyons Ave Suite

100,
	 	Santa Clarita
	 	CA
	 	 	91321	 	 	Stacey Gordon
	 	 	661.255.7707	 	 	 	661.255.7888	 	 	1315 S. Caraway Rd.
	 	Jonesboro
	 	AR
	 	 	72401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9673

	 	Huntsville
	 	Southwest

Securities, FSB

ATTN: Property

Management
	 	17480 N Dallas
Parkway, Suite
104, rent checks
toSunWest NOP, Inc.,
75 Remittance Dr Suite
6590, Chicago, IL
60675
	 	Dallas
	 	TX
	 	 	75287	 	 	Rita Lafleur
	 	 	214.859.1425	 	 	 	972.248.4794	 	 	1710 11th Street
	 	Huntsville
	 	TX
	 	 	77340	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9674

	 	Stillwater
	 	FRT-TARO Stillwater,
L.L.C.
	 	624 S Boston,Suite 400
	 	Tulsa
	 	OK
	 	 	74119	 	 	Bruce Bolzle
	 	 	918 743 3456	 	 	 	918 743 4084	 	 	316 N. Main
	 	Stillwater
	 	OK
	 	 	74075	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9675

	 	Enid
	 	Nicholas Investment

Company
	 	900 W. Maple
	 	Enid
	 	OK
	 	 	73701	 	 	Buddy Nicholas
	 	 	580 234 7000	 	 	 	580 233 3639	 	 	610 s cleveland #104
	 	Enid
	 	OK
	 	 	73703	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9676

	 	Lawrence
	 	Southwest
Properties, L.L.C.
	 	10169 Mackey
	 	Overland Park
	 	KS
	 	 	66212	 	 	Bill Pachter
	 	 	913 381 8415	 	 	 	913 648 8053	 	 	1900 W. 23rd
	 	Lawrence
	 	KS
	 	 	66046	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9677

	 	Kerrville
	 	Fawcet Rentals
	 	1720 Glen Road
	 	Kerrville
	 	TX
	 	 	78028	 	 	Bill Womack
	 	 	830 896 6364	 	 	 	830 896 3432	 	 	501 Main St.
	 	Kerrville
	 	TX
	 	 	78028	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9678

	 	Muskogee
	 	Muskogee Property
Shopping Center, LLC

c/o Walpert
Properties
	 	11457 Olde Cabin
Rd., Suite 200
	 	St. Louis
	 	MO
	 	 	63141	 	 	Tom Lodes
	 	 	800 467 8540	 	 	 	314 567 9289	 	 	2230 E. Shawnee
Bypass
	 	Muskogee
	 	OK
	 	 	74403	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9680

	 	Missoula
	 	Choice Land Corp and
CLR Properties, Inc.

c/o Missoula
Property Mgmt. 2809

Great Northern Loop
Suite 400 Missoula,
MT 59808
	 	11520 Blundell Rd.
	 	Richmond
	 	BC
	 	Canada
V6Y1L3
	 	Bil Koonar
	 	 	604-592-3001	 	 	 	604-592-3004	 	 	2501 Brooks Street,
Suite A
	 	Missoula
	 	MT
	 	 	59801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9681

	 	Rio Rancho (Albuquerque)
	 	HRR LLC
	 	5 Altazano Drive
	 	Santa Fe
	 	NM
	 	 	87505	 	 	Murray Brott
	 	 	505 982 9400	 	 	 	505 982 8987	 	 	1630 Rio Rancho Dr.
	 	Rio Rancho
	 	NM
	 	 	87124	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9682

	 	Topeka
	 	Dillon Companies,
Inc. Attn: Real
Estate
	 	2700 E. 4th Street, PO
Box 1608
	 	Hutchinson
	 	KS
	 	 	67504	 	 	Rhonda Baker
Clay Brashr Main
	 	 	620-669-3272

620-669-3300

620-665-5511	 	 	 	620-669-3162	 	 	5317 S.W. 22nd Place
	 	Topeka
	 	KS
	 	 	66614	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9683

	 	Conroe
	 	Towne Center
Venture, L.L.P.
	 	2001 Kirby Drive, Suite
610
	 	Houston
	 	TX
	 	 	77019	 	 	Risher Randall
	 	 	713 523 6603	 	 	 	713 523 6605	 	 	1306 W. Davis
	 	Conroe
	 	TX
	 	 	77301	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9684

	 	Denton
	 	Colorado Square

Joint Venture
	 	3102 Maple
Avenue, Suite 500
	 	Dallas
	 	TX
	 	 	75201	 	 	Amanda Eller or Carissa

Dodson (Prop Mgrs)
	 	 	214-720-6693	 	 	 	214 953 0860	 	 	2311 Colorado Blvd.
	 	Denton
	 	TX
	 	 	76205	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9685

	 	Sherman
	 	Sherman Hastings,
LLC
 c/o The Flying Colonel, LLC
	 	P.O. Box 512,505 N.
Carroll Street
(53703)
	 	Madison
	 	WI
	 	 	53701	 	 	Jim Rapacz, Bookkeeping
	 	 	608-255-8633	 	 	 	608-255-7509	 	 	2114 Texoma Pkwy,
Ste. 100
	 	Sherman
	 	TX
	 	 	75090	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9686

	 	Russellville
	 	Shannon, Inc.
	 	P.O. Box 10314
	 	Conway
	 	AR
	 	 	72034	 	 	Steve Shannon
	 	 	501 327 0116	 	 	 	501 327 1213	 	 	104 N. Hampton
	 	Russellville
	 	AR
	 	 	72802	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9688

	 	Grand Junction
	 	Mesa Denver
Associates 
c/o
Theodore R. Pomeranz
	 	3250 E. 2nd Ave., Suite
200
	 	Denver
	 	CO
	 	 	80206	 	 	Ted Pomeranz
	 	 	303 394 2400	 	 	 	303 757 0231	 	 	2401 North Ave.
	 	Grand Junction
	 	CO
	 	 	81501	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9689

	 	Lake Jackson
	 	PK Hastings LLC 
(**
all notices also
sent to additional
address)
 c/o
Needleman &
Schlacter, LLP
	 	2001 Marcus Ave, Suite

N116
	 	Lake Success
	 	NY
	 	 	11042	 	 	Allan Needleman
	 	 	516.328.9111	 	 	 	 	 	 	208 W. Hwy.332
	 	Lake Jackson
	 	TX
	 	 	77566	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9690

	 	Hutchinson
	 	Steven Enterprises,
LLC 
c/o Genesis
Health Club
	 	6100 E. Central, Bldg.
#3
	 	Wichita
	 	KS
	 	 	67208	 	 	Bill Mast, CPA, CFP
	 	 	316 691 5060	 	 	 	316 691 5055	 	 	416 E. 30th St.
	 	Hutchinson
	 	KS
	 	 	67502	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9691

	 	Greenville
	 	TS Greenville, LLC

c/o Emerald
Management, LLC
	 	4949 N. Broadway, Ste
105
	 	Boulder
	 	CO
	 	 	80304	 	 	Moran Johnston
	 	 	303-444-4552	 	 	 	303-444-5746	 	 	5101 Wesley St.
	 	Greenville
	 	TX
	 	 	75401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9692

	 	Ardmore
	 	Ardmore Commerce
Partners, L.P.
	 	2591 Dallas Parkway, Suite 300
	 	Frisco
	 	TX
	 	 	75034-8563	 	 	Dan Morrison
	 	 	940-440-9556	 	 	 	940-365-3669	 	 	601 North Commerce
St
	 	Ardmore
	 	OK
	 	 	73401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9693

	 	Helena
	 	North City Center,
LLC 
c/o Steve Corning, Managing Member
	 	P.O. Box 80510,2280
Grant Rd, Ste. A
(59102)
	 	Billings
	 	MT
	 	 	59108	 	 	Steve Corning
	 	 	406 651 4300	 	 	 	406 651 1300	 	 	3215 N. Montana Ave.
	 	Helena
	 	MT
	 	 	59602	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9694

	 	Kingman
	 	Kingman Square, LLC

c/o Borg Properties
	 	72-216 Highway 11
PO Box 40397
N/A, Suite F-4
N/A
	 	Palm Desert

Mesa

N/A
	 	CA

CA

n/a
	 	 	92260

85274

n/a	 	 	Andy Weigel

Bret Borg-President

Helena

Baughman-Maintenance/Prop
	 	 	760-832-5115

480-838-6900

928-718-7629	 	 	 	951-678-2001

480-456-9439

928-753-2401	 	 	3153 Stockton Hill
Rd.
	 	Kingman
	 	AZ
	 	 	86401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9695

	 	Idaho Falls
	 	IF Retail, LLC 
c/o BCPM, INC
	 	PO Box 980370
	 	Park City
	 	UT
	 	 	84098	 	 	Brenda Bellamy
	 	 	435-615-0482	 	 	 	435-649-4159	 	 	540 17th St.
	 	Idaho Falls
	 	ID
	 	 	83404	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9696

	 	Coeur d’Alene
	 	Standard Insurance
Company 
c/o Real
Estate Department
	 	1100 SW Sixth
Avenue, Suite 1250
	 	Portland
	 	OR
	 	 	97204	 	 	Trond Ingvaldsen
	 	 	503 321 7794	 	 	 	503 321 6511	 	 	101 Best Ave.
	 	Coeur d’Alene
	 	ID
	 	 	83814	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9697

	 	Searcy
	 	Wal-Mart Stores, Inc.
	 	702 S.W. 8th Street
	 	Bentonville
	 	AR
	 	 	72716	 	 	Randal Busby
	 	 	479.204.0692	 	 	 	479 204 9841	 	 	105 North Poplar
	 	Searcy
	 	AR
	 	 	72143	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9698

	 	Altus
	 	Mary Lou Cossey;
Bill, son
	 	304 Cardinal Circle
South
	 	Altus
	 	OK
	 	 	73521	 	 	Bill Cossey
	 	 	830 693 7777	 	 	 	830 693 6363	 	 	1700 N. Main, #2
	 	Altus
	 	OK
	 	 	73521	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9699

	 	Jefferson City
	 	Lawrence F. Kolb, et
al
 c/o Kolb
Properties
	 	3702 W. Truman Blvd.
	 	Jefferson City
	 	MO
	 	 	65109	 	 	Larry Kolb
	 	 	573 893 7320	 	 	 	573 893 2631	 	 	2233 Missouri Blvd.
	 	Jefferson City
	 	MO
	 	 	65109	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9701

	 	Maryville
	 	D.D.D.D., LLC
 c/o
Foothills Plaza
	 	POBox 964,
	 	El Reno
	 	OK
	 	 	73036	 	 	Sharon Banta
	 	 	405.535.8075	 	 	 	405.737.5546	 	 	501 N. Foothills
Plaza Dr.
	 	Maryville
	 	TN
	 	 	37801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9702

	 	Richmond
	 	Richmond
Enterprises, LLC
 c/o
HL Libby Corporation
	 	803 Commonwealth

Dr, Richmond Enterprises LLC
 PO Box
62336-05 Baltimore 
MA
21264
	 	Warrendale
	 	PA
	 	 	15086	 	 	Russ Cannane
	 	 	724 935 3433	 	 	 	724 935 3462	 	 	4601 National Road
East
	 	Richmond
	 	IN
	 	 	47374	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9703

	 	Fort Smith
	 	Rogers Avenue
Development, L.P.

c/o Leeco Properties
	 	3501 Billy Hext Rd.
	 	Odessa
	 	TX
	 	 	79762	 	 	James Devenport
	 	 	432-550-0073	 	 	 	432-366-4606	 	 	6808 Rogers Avenue
	 	Fort Smith
	 	AR
	 	 	72901	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9707

	 	Grand Island
	 	Grand Island Mall,
Ltd.
	 	2208 N. Webb Road
	 	Grand Island
	 	NE
	 	 	68803	 	 	Dawn Nowka
	 	 	308 381 2210	 	 	 	308 381 7659	 	 	2250 N. Webb Rd.
#H-16
	 	Grand Island
	 	NE
	 	 	68803	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9715

	 	Richmond
	 	Richmond Centre, LLC

c/o Charles Thrift
	 	227 West Trade Street,
	 	Charlotte
	 	NC
	 	 	28202	 	 	Charles Thrift
	 	 	704.561.5222	 	 	 	704.523.2946	 	 	2193 Lantern Ridge
Dr
	 	Richmond
	 	KY
	 	 	40475	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9719

	 	Auburn
	 	Glendean Shopping Center, LLC
	 	P.O. Box 628
	 	Auburn
	 	AL
	 	 	36831-0628	 	 	Dr. Reddy Munagala (Dr.
Reddy)
	 	 	334 821 2500	 	 	 	334 821 2500	 	 	750 E. Glenn Ave.
	 	Auburn
	 	AL
	 	 	36830	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9723

	 	Pittsburg
	 	Frank C. Robson and
Ludmila Robson,
co-trustees 
c/o
Frank C. Robson
	 	P.O. Box 986
	 	Claremore
	 	OK
	 	 	74018-0986	 	 	Rick Mosier
	 	 	918 341 3025	 	 	 	918 342 0473	 	 	2806 N. Broadway
	 	Pittsburg
	 	KS
	 	 	66762	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9724

	 	Gillette
	 	CCA-Powder Basin SC
LLC
 c/o Arcadia Mgmt
Grp
	 	po box 10,
	 	Scottsdale
	 	AZ
	 	 	85252	 	 	Gary Shaw
	 	 	602.955.4700	 	 	 	602.955.9777	 	 	2610 S. Douglas
Hwy, #300
	 	Gillette
	 	WY
	 	 	82718	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9725

	 	Newnan
	 	HK New Plan
Merchants Crossing,
LLC
 c/o Centro Properties, Inc
	 	420 Lexington
Avenue, Seventh Floor
	 	New York
	 	NY
	 	 	10170	 	 	Attn: Legal Dept.
	 	 	212 869 3000	 	 	 	212 869 3989	 	 	54 Bullsboro Dr.
	 	Newnan
	 	GA
	 	 	30263	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9726

	 	Bartlesville
	 	Tenalok Partners,
Ltd. 
c/o HAS
Commerical Realty
Services
	 	701 N Post Oak Suite
515, Suite 515
	 	Houston
	 	TX
	 	 	77024	 	 	Allison Coontz
	 	 	713-686-1277	 	 	 	713-812-7290	 	 	3005 SE Frank

Phillips Blvd
	 	Bartlesville
	 	OK
	 	 	74003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9727

	 	Moscow
	 	Palouse Empire Mall
Associates 
c/o
Jameson Commercial
Property Mgmt
	 	P.O. Box 2158
	 	Spokane
	 	WA
	 	 	99210	 	 	Jim Bendickson
	 	 	509 747 2009	 	 	 	509 777 0012	 	 	2230 W. Pullman Rd.
	 	Moscow
	 	ID
	 	 	83843	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9729

	 	Moses Lake
	 	Learner Family Trusts
	 	1500 N. California
Blvd., Suite 200
	 	Walnut Creek
	 	CA
	 	 	94596	 	 	Lisa King
	 	 	925 947 3680	 	 	 	925 934 1605	 	 	601 S. Pioneer Way,
#1
	 	Moses Lake
	 	WA
	 	 	98837	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9730

	 	Fremont
	 	Broadmoor Properties

Limited Partnership
	 	809 North 96th St.
	 	Omaha
	 	NE
	 	 	68144	 	 	Brent Gunderson
	 	 	402 392 1800	 	 	 	402 392 2502	 	 	1041 E. 23rd St.
	 	Fremont
	 	NE
	 	 	68025	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9734

	 	Liberal
	 	Wal-Mart Real Estate
Business Trust 
c/o WalMart Asset
Management
	 	2001 SE 10th St.
	 	Bentonville
	 	AR
	 	 	72712-6489	 	 	Randal Busby
	 	 	479.204.0692	 	 	 	479 204 9841	 	 	1551 N. Kansas Ave
	 	Liberal
	 	KS
	 	 	67901	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9736

	 	Mountain Home
	 	Kelly J. Shay &
Patricia A. Shay
	 	74 Berkshire Court
	 	Mountain Home
	 	AR
	 	 	72653	 	 	Kelly Shay
	 	 	870 425 7911	 	 	 	 	 	 	950 Hwy 62 East
	 	Mountain Home
	 	AR
	 	 	72653	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9737

	 	Batesville
	 	The Fitzhugh Company

c/o Lucy or Danny
Yeager
	 	843 E. Main Street
	 	Batesville
	 	AR
	 	 	72501	 	 	Lucy and Danny Yeager
	 	 	870-793-2215	 	 	 	 	 	 	2340 Harrison St.
	 	Batesville
	 	AR
	 	 	72501	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9738

	 	Springdale
	 	Thomas F James

Realty Limited

Partnership, LLLP
	 	7707 “T” St.
	 	Little Rock
	 	AR
	 	 	72227	 	 	Dave Constien
	 	 	501 225 0707	 	 	 	501 225 7444	 	 	2400 W. Sunset Ave.
	 	Springdale
	 	AR
	 	 	72762	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9739

	 	Hays
	 	Verlin and Elaine
Pfannensteil
	 	2092 Munjor Road
	 	Victoria
	 	KS
	 	 	67671	 	 	Verlin Pfannensteil
	 	 	785 625 6554	 	 	 	785 625 8658	 	 	3300 Vine
	 	Hays
	 	KS
	 	 	67901	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9740

	 	Dyersburg
	 	Eckstein Properties

c/o 1980 Unionport
Associates, LLC
	 	PMB 567,710 Highway 51

Bypass W
	 	Dyersburg
	 	TN
	 	 	38024	 	 	Ms. Shawn Edwards
	 	 	731 285 1169	 	 	 	 	 	 	650 Highway 51

Bypass
	 	Dyersburg
	 	TN
	 	 	38024	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9741

	 	Tullahoma
	 	Wal-Mart Real Estate
Business Trust
 c/o
WalMart Asset
Management
	 	2001 SE 10th St.
	 	Bentonville
	 	AR
	 	 	72716-0550	 	 	Scott Sill-Asset Mgr
	 	 	479 273 4710	 	 	 	479 204 9841	 	 	1905 N. Jackson,
Ste. B
	 	Tullahoma
	 	TN
	 	 	37388	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9742

	 	Los Lunas
	 	Valencia Plaza, LLC
	 	7112 Coors Trail NW, PO

Box 9043 (87119)
	 	Albuquerque
	 	NM
	 	 	87120	 	 	Martin Haynes (or Carole)
	 	 	505 898 6622	 	 	 	505 898 2781	 	 	2341 N. Main
	 	Los Lunas
	 	NM
	 	 	87031	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9743

	 	Sweetwater
	 	Mark Kruse dba Nolan

County Plaza
	 	1402 Coventry Circle
	 	Abilene
	 	TX
	 	 	79602	 	 	Mark Kruse
	 	 	325-669-8784	 	 	 	 	 	 	1102 E. Broadway
	 	Sweetwater
	 	TX
	 	 	79556	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9744

	 	Butte
	 	DLH, LLC
	 	324 Blacktail Canyon
Rd.
	 	Butte
	 	MT
	 	 	59701	 	 	Denise Harrington
	 	 	406 494 5944	 	 	 	406 832 3189	 	 	2307 Harrison Ave.
	 	Butte
	 	MT
	 	 	59701	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9745

	 	Richland
	 	Associated Grocers,
Inc 
c/o Mari
Milligan
	 	3301 S Norfolk
	 	Seattle
	 	WA
	 	 	98118	 	 	Mari Milligan
	 	 	206.764.7741	 	 	 	206.767.8751	 	 	1425 George

Washington Way
	 	Richland
	 	WA
	 	 	99352	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9746

	 	Mt. Pleasant
	 	CPM Associates, L.P.
	 	537 Market
Street, Suite 400
	 	Chattanooga
	 	TN
	 	 	37402	 	 	Steve Long
	 	 	423 752 0159	 	 	 	423 752 3496	 	 	2306 S. Jefferson
Ave, Ste.CC
	 	Mt. Pleasant
	 	TX
	 	 	75455	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9747

	 	Montrose
	 	Linden Real Estate
Holdings, L.L.C. 
c/o
Property Mgr-Rene
Dominquez Southpaw
Service 
628 South
7th St, Montrose CO
81402
	 	PO Box 230,
	 	Ridgeway
	 	CO
	 	 	81432	 	 	Ken DeLine
	 	 	970.626.2270	 	 	 	970.626.3390	 	 	2201-A S. Townsend
Ave.
	 	Montrose
	 	CO
	 	 	81401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9748

	 	McMinnville
	 	Harold G. Martin &
Joe P. Shelton 
c/o
U.S. Auto Sales
	 	1422 Sparta Street
	 	McMinnville
	 	TN
	 	 	37110	 	 	Harold G. Martin
	 	 	931 473 4663	 	 	 	931 743 7263	 	 	231 Northgate Dr.,
#500
	 	McMinnville
	 	TN
	 	 	37110	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9750

	 	Lubbock — 82nd & Slide
	 	Lubbock Inn
Investment Corp.
	 	4302 Ironton Ave
	 	Lubbock
	 	TX
	 	 	79407	 	 	Rick Taylor
	 	 	806 791 2877	 	 	 	806 791 1630	 	 	8209 Slide Road
	 	Lubbock
	 	TX
	 	 	79424	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9754

	 	Canyon
	 	Canyon 23rd Street
#2, Limited
Partnership
 c/o
Blumenthal
Investments, LLC
	 	10233 S. Dolfield Road
	 	Owings Mills
	 	MD
	 	 	21117	 	 	John Blumenthal
	 	 	410 363 1200	 	 	 	410 363 1215	 	 	205 N. 23rd Street
	 	Canyon
	 	TX
	 	 	79015	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9757

	 	Clovis
	 	Clovis Shopping
Center, L.L.C. 
c/o
Walpert Properties
	 	11457 Olde Cabin
Rd., Suite 200
	 	St. Louis
	 	MO
	 	 	63141	 	 	Tom Lodes
	 	 	314 567 1221	 	 	 	314 567 9289	 	 	1925 N. Prince
Street
	 	Clovis
	 	NM
	 	 	88101	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9758

	 	Cañon City
	 	Sierra Services

Group LLC
	 	15954 Jackson Creek
Parkway, Suite B-281
	 	Monument
	 	CO
	 	 	80132	 	 	Carolyn Carter / Jeff @
707-974-4920 Cell
	 	 	719-487-1559	 	 	 	206-666-4207	 	 	1811 Fremont Drive
	 	Cañon City
	 	CO
	 	 	81212	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9759

	 	Meridian
	 	Fairview Lakes—BTS,
L.L.C. 
c/o Eastgate
Management
	 	1124 Santa Maria Dr.
	 	Boise
	 	ID
	 	 	83712	 	 	Jane Evans
	 	 	208-336-4062

Emerg. 208-484-5397
	 	 	 	 	 	1769 Northlakes Ave.
	 	Meridian
	 	ID
	 	 	83646	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9760

	 	Amarillo (NW)
	 	Amarillo Gem Lake
#2, Ltd. 
c/o 37 BSRC
Management LLC
	 	1 Oneida Road
	 	Scarsdale
	 	NY
	 	 	10583	 	 	Mark Chaves
	 	 	914 725 4404	 	 	 	914 725 7879	 	 	5512 Gem Lake Road
	 	Amarillo
	 	TX
	 	 	79102	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9761

	 	Walla Walla
	 	M.L. Hull
Investments, LLC,
 T.
Hull Investments,
LLC,

WBW Hull
Investments, LLC, 
JB
Koops Investments,
LLC 
c/o Elliott
Associates, Inc.
	 	50 SW Pine
Street, Suite 200
	 	Portland
	 	OR
	 	 	97204	 	 	Julie L. Muir, PM
	 	 	503 972 7199	 	 	 	509 228 3169	 	 	617 S. 9th Street
	 	Walla Walla
	 	WA
	 	 	99362	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9763

	 	Albuquerque (Candelaria)
	 	NC Drugstores, LLC
	 	465 1st Street W,
Suite 200
	 	Sonoma
	 	CA
	 	 	95476-6600	 	 	Nancy Vytlacil
	 	 	707.935.3700 ext.
103
	 	 	 	707.935.3707	 	 	12501 Candelaria
Road NE
	 	Albuquerque
	 	NM
	 	 	87111	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9765

	 	Cordova
	 	HK New Plan
Merchants 
c/o Centro
NP LLC Reit 19 (CNP)

PO Box 841530
Dallas, 
TX 75284-1530
	 	420 Lexington Avenue,7th Floor
	 	New York
	 	NY
	 	 	10170	 	 	Office of the General
Council
	 	 	212-869-3000	 	 	 	212-302-4776	 	 	1245 Germantown
Pkwy, Ste 110
	 	Cordova
	 	TN
	 	 	38016	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9767

	 	Alexandria
	 	MacArthur Village
Limited Partnership

c/o Stirling Properties
	 	109 Northpark Blvd, Suite 300
	 	Covington
	 	LA
	 	 	70433	 	 	Grady Brame
	 	 	985-898-2022	 	 	 	 	 	 	1460 MacArthur Drive
	 	Alexandria
	 	LA
	 	 	71301	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9768

	 	Lubbock
	 	Schwab Investment
VII, LLC 
c/o Zurich
Investment Company
	 	9595 Wilshire Blvd.,
Suite 401
	 	Beverly Hills
	 	CA
	 	 	90210	 	 	Michael Schwab
	 	 	310-273-7355	 	 	 	310-273-5983	 	 	3249 50th Street
	 	Lubbock
	 	TX
	 	 	79413	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9801

	 	Lake Havasu
	 	Century Financial
Services LLC 
c/o
Segars Realty
	 	2586 Kelleytown Rd.
	 	Hartsville
	 	SC
	 	 	29550	 	 	Goz Segars
	 	 	843 332 2537	 	 	 	843 332 8554	 	 	321 Lake Havasu
Ave. North
	 	Lake Havasu City
	 	AZ
	 	 	86403	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9802

	 	Sierra Vista
	 	BERCO, a California

general partnership
	 	5512 Corbin
	 	Tarzana
	 	CA
	 	 	91356	 	 	Jack & Dennis Berg
	 	 	818 345 6681	 	 	 	818 345 6657	 	 	3758 E. Fry Blvd.
	 	Sierra Vista
	 	AZ
	 	 	85635	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9803

	 	Bozeman
	 	Bozeman Shopping
Center, LLC 
c/o
Grubb & Ellis Mgmt
Svcs as Agent
	 	502 South 19th
Ave., Suite 307
	 	Bozeman
	 	MT
	 	 	59718	 	 	Jesse Asher
	 	 	406 586 1655	 	 	 	406 586 2755	 	 	1601 W. Main
	 	Bozeman
	 	MT
	 	 	59715	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9807

	 	Ogden
	 	Harrisville-Rogers
II, LLC 
c/o The
Boyer Company
	 	90 South 400
West, Suite 200
	 	Salt Lake City
	 	UT
	 	 	84101	 	 	Brad Galvez
	 	 	801 521 4781	 	 	 	801 521 4793	 	 	340 East 525 North
	 	Harrisville
	 	UT
	 	 	84404	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9810

	 	Yuma
	 	Fury Lane LLC

Management
	 	2175 South Avenue

A, Suite #B
	 	Yumas
	 	AZ
	 	 	85364	 	 	A.S. Lalani/Angelica
Sanchez/Telly
	 	 	928-783-7811	 	 	 	 	 	 	2820 S. 4th Avenue
	 	Yuma
	 	AZ
	 	 	85364	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9813

	 	Boise — Fairview Ave
	 	Wilshire Property
Co., LLC
	 	28281 Crown Valley
Parkway, Suite 200
	 	Laguna Niguel
	 	CA
	 	 	92677	 	 	Jeffry Stoddard
	 	 	 	 	 	 	949 582 7036	 	 	7500 Fairview Ave.
	 	Boise
	 	ID
	 	 	83704	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9816

	 	Flagstaff
	 	L.N.N. Enterprises
Incorporated
	 	1490 S. Riordan Ranch
Rd.
	 	Flagstaff
	 	AZ
	 	 	86001	 	 	K Joseph (Joe) Nackard
	 	 	520 779 6146	 	 	 	928 779 0877	 	 	1540 S. Riordan Rd.
	 	Flagstaff
	 	AZ
	 	 	86001	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9817

	 	Boise — Overland Rd.
	 	Country Square Lease
LLC 
c/o Collier’s
International
	 	755 West Front
Street, Suite 300
	 	Boise
	 	ID
	 	 	83702	 	 	Diane Dann, Sr.PM
	 	 	208 345 9000	 	 	 	208 345 6321	 	 	10539 Overland Rd.
	 	Boise
	 	ID
	 	 	83709	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9819

	 	Kearney
	 	JT Development LLC

c/o Jon Abegglen
	 	3114 8th ave,
	 	Kearney
	 	NE
	 	 	68845	 	 	Jon Abegglen
	 	 	308.233.4798	 	 	 	 	 	 	9 W. 39th St.
	 	Kearney
	 	NE
	 	 	68848	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9822

	 	Boise — E. Boise Ave
	 	Eastgate, LLP
	 	1124 Santa Maria Dr.
	 	Boise
	 	ID
	 	 	83712	 	 	Jane Evans or Bret in
emergencies
	 	 	208-343-2210

Emerg. 208-941-3667
	 	 	 	208 484 5397	 	 	680 E. Boise Ave.
	 	Boise
	 	ID
	 	 	83706	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9823

	 	Laramie
	 	Thomas B. Horne 
c/o
Barton Investments
	 	367 West 900 North
	 	Salt Lake City
	 	UT
	 	 	84103	 	 	Tom Horne
	 	 	801.355.3408	 	 	 	801 524 0084	 	 	654 N. 3rd St.
	 	Laramie
	 	WY
	 	 	82072	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9824

	 	Rock Springs
	 	Rock Springs Plaza,
LLC 
c/o Bonneville
Realty Management
	 	111 East
Broadway, Suite 1212
	 	Salt Lake City
	 	UT
	 	 	84111	 	 	Mr. Kim Hibbert
	 	 	801 323 1050	 	 	 	801 323 1005	 	 	1451 Dewar Drive
	 	Rock Springs
	 	WY
	 	 	82901	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9826

	 	Waco
	 	Stewart/Belf Asset
Management Co. 
c/o
Jim Stewart Realtors
	 	500 N. Valley Mills Dr.
	 	Waco
	 	TX
	 	 	76710	 	 	Ardie Giotes
	 	 	254.297.7300	 	 	 	 	 	 	5526 Bosque Blvd.
	 	Waco
	 	TX
	 	 	76710	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9827

	 	Tyler
	 	Sam Roosth, et al

c/o Roosth & Genecov
Rentals
	 	P.O. Box 8300
	 	Tyler
	 	TX
	 	 	75711	 	 	Steve Roosth (ext.209)
	 	 	903 593 8333	 	 	 	903 595 2190	 	 	4015-A S. Broadway
	 	Tyler
	 	TX
	 	 	76701	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9828

	 	Veradale (Spokane-Sprague)
	 	JMLP
 c/o Goodale &
Barbieri
	 	818 W Riverside
Ave, Suite 300
	 	Spokane
	 	WA
	 	 	99201	 	 	John Hiller
	 	 	509.323.7201	 	 	 	509.777.6323	 	 	15312 E. Sprague
	 	Spokane
	 	WA
	 	 	99037	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9830

	 	Spokane 29th St
	 	Black Enterprises 

c/o Tomlinson Black
Mgmt., Inc.
	 	107 S. Howard, Suite 600
	 	Spokane
	 	WA
	 	 	99201	 	 	Dave Black
	 	 	509 623 1000	 	 	 	509 623 1444	 	 	2512 E. 29th Ave.
	 	Spokane
	 	WA
	 	 	99223	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9831

	 	Spokane West Wellesley
	 	Tom Sneva 
c/o
Goodale & Barbieri
	 	818 W Riverside
Ave, suite 300
	 	Spokane
	 	WA
	 	 	99201	 	 	John Hiller
	 	 	509.323.7201	 	 	 	509.777.6323	 	 	1704 W. Wellesley
	 	Spokane
	 	WA
	 	 	99205	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9832

	 	Wenatchee
	 	Pacific Resources
Associates LLC 
c/o
PacTrust
	 	15350 SW Sequoia
Parkway, Suite 300
	 	Portland
	 	OR
	 	 	97224	 	 	Mark Olson
	 	 	503 624 6300	 	 	 	503 624 7755	 	 	315 Ninth St.
	 	Wenatchee
	 	WA
	 	 	98801	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9836

	 	Norman
	 	Swarts Family
Investment
 Co., LLC
c/o Russell E.
Swarts
	 	2600 Elmhurst
	 	Oklahoma City
	 	OK
	 	 	73120	 	 	Russell Swarts
	 	 	405 945 8100	 	 	 	 	 	 	2300 W. Main
	 	Norman
	 	OK
	 	 	73069	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9837

	 	Greeley
	 	Vision 23rd LLC
	 	1873 S Bellaire St, Suite 825
	 	Denver
	 	CO
	 	 	80222	 	 	Scott Scwayder
	 	 	303.321.5888	 	 	 	303.321.5889	 	 	3015 23rd Ave.
	 	Greeley
	 	CO
	 	 	80631	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9840

	 	Great Falls
	 	Spirit Master
Funding, LLC 
c/o
Midland Loan
Services, Inc.
	 	P.O. Box 419201
	 	Kansas City
	 	MO
	 	 	64141-6127	 	 	Cathy Phillips
	 	 	480 315 6589	 	 	 	480 606 0826	 	 	726 10th Ave. South
	 	Great Falls
	 	MT
	 	 	59405	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9850

	 	Logan
	 	Retail
Properties-Logan,
LLC
 c/o Retail
Property Management,
LLC
	 	19159 Iron Mountain Dr.
	 	Grass Valley
	 	CA
	 	 	95949	 	 	Joe Byrne
	 	 	530 268 8158	 	 	 	530 268 8178	 	 	50 East 400 North
	 	Logan
	 	UT
	 	 	84321	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9851

	 	Prescott
	 	Retail
Properties-Prescott,
LLC
 c/o Retail
Property Management,
LLC
	 	19159 Iron Mountain Dr.
	 	Grass Valley
	 	CA
	 	 	95949	 	 	Joe Byrne
	 	 	530 268 8158	 	 	 	530 268 8178	 	 	940 Willow Creek Rd.
	 	Prescott
	 	AZ
	 	 	86301	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9865

	 	Twin Falls
	 	Kalik Investors
	 	822 S. 10th Avenue
	 	Caldwell
	 	ID
	 	 	83605	 	 	Leroy Atwood
	 	 	208 459 6348	 	 	 	208 459 1952	 	 	870 Blue Lakes
North Blvd., #1
	 	Twin Falls
	 	ID
	 	 	83301	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9866

	 	St. Joseph
	 	Hillcrest Plaza
1998, LLC
 c/o J.
Herzog & Sons, Inc.
	 	160 Westgate
Mall, Suite E
	 	Madison
	 	WI
	 	 	53711	 	 	Erika Kaufman, Asset Mgr
	 	 	303 757 8811	 	 	 	303 757 1911	 	 	605 N. Belt Hwy
	 	St Joseph
	 	MO
	 	 	64506	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9867

	 	Yukon
	 	Chisholm SC 
c/o
American Asset Mgmt
Services Corp.
	 	4711 W. Golf Road,
Suite 1100
	 	Skokie
	 	IL
	 	 	60076-1235	 	 	Jonathan Gordon
	 	 	847 674 8020	 	 	 	847 674 8157	 	 	1105-C Garth Brooks
Blvd.
	 	Yukon
	 	OK
	 	 	73099	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9869

	 	Cape Giradeau
	 	Greater Missouri
Builders, Inc.
	 	1551 Wall St., Suite 220
	 	St. Charles
	 	MO
	 	 	63303	 	 	Kent Evans — ext.117
	 	 	636 946 1341	 	 	 	636 949 9992	 	 	2136 William, #165
	 	Cape Girardeau
	 	MO
	 	 	63703	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9871

	 	Duncan
	 	Gershman Properties
LLC
	 	11633 San Vicente
Blvd., Suite 314
	 	Los Angeles
	 	CA
	 	 	90049	 	 	Kenneth Schelberg (attny)
	 	 	310 552 1400	 	 	 	310 943 1747	 	 	1225 North Hwy.81
	 	Duncan
	 	OK
	 	 	73533	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9874

	 	Bullhead City
	 	95 Palma LLC 
c/o
Fred Leeds
Properties 
(Ophelia
at 310.405.7610 is
accounting contact)
	 	1900 S. Sepulveda
Blvd., Suite 212
	 	Los Angeles
	 	CA
	 	 	90025	 	 	Min Kwak
	 	 	310.405.7606	 	 	 	310-826-3505	 	 	1985 Hwy 95
	 	Bullhead City
	 	AZ
	 	 	86442	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9875

	 	Norfolk
	 	Perkins, L.L.C.
	 	1105 S. 13th St., Suite
100
	 	Norfolk
	 	NE
	 	 	68701	 	 	Mike Perkins
	 	 	402 371 7008	 	 	 	402 371 0288	 	 	919 S. 20th St.
	 	Norfolk
	 	NE
	 	 	68701	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	9876

	 	Manhattan
	 	Wal-Mart Real Estate
Business Trust
 c/o Asset Management -
Kansas
	 	2001 SE 10th
St., Department 9453
	 	Bentonville
	 	AR
	 	 	72716-0550	 	 	Scott Sill
	 	 	479 204 0351	 	 	 	479 204 9841	 	 	626 Tuttle Creek
Blvd.
	 	Manhattan
	 	KS
	 	 	66502	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9878

	 	Poplar Bluff
	 	Martin H. and Julita
A. Michel
 c/o Michel
Properties
	 	6741 Heritage Drive
	 	Poplar Bluff
	 	MO
	 	 	63901	 	 	Marty Michaels
	 	 	573-785-8218	 	 	unknown
	 	950 N. Westwood
Blvd.
	 	Poplar Bluff
	 	MO
	 	 	63902	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9879

	 	Kirksville
	 	Lone Ranger, LLC

c/o Abby Lagunoff
Madison Partners
	 	12121 Wilshire Blvd, Suite 959
	 	Los Angeles
	 	CA
	 	 	90025	 	 	Michael Schlesinger
	 	 	310 275 4425	 	 	 	310 388 3169	 	 	1800 N. Baltimore
	 	Kirksville
	 	MO
	 	 	63501	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9880

	 	Stephenville
	 	Bosque River
Associates
	 	P.O. Box 6401
	 	Metairie
	 	LA
	 	 	70009	 	 	Mike Campbell
	 	 	504 835 8000	 	 	 	504 831 1170	 	 	2900 N. Washington,
#10A
	 	Stephenville
	 	TX
	 	 	76401	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9883

	 	Waxahachie
	 	TSCA-50 (DEL), LLC 

c/o Quine &
Associates, Inc.
	 	301 S. Sherman, Suite
100
	 	Richardson
	 	TX
	 	 	75083	 	 	Ann Cloud or Brad Quine
	 	 	972-669-8440	 	 	 	972-783-8901	 	 	791 North Hwy.77,
Ste. #101
	 	Waxahachie
	 	TX
	 	 	75165	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9885

	 	Warrensburg
	 	J.W. Franklin Co.
	 	123 E. Gay Street,
Ste. ESV, P.O. Box 573
	 	Warrensburg
	 	MO
	 	 	64093-0573	 	 	Jerry Franklin
	 	 	660 747 9854	 	 	 	660 747 3407	 	 	723 N. Charles
	 	Warrensburg
	 	MO
	 	 	64093	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9887

	 	Lewiston
	 	ERB LIMITED, L.L.C. 

c/o Lease
Administration
	 	P.O. Box 616, Jeannie
Bennett
	 	Lewiston
	 	ID
	 	 	83501	 	 	Jeannie
	 	 	208 746 0442	 	 	 	208 746 1127	 	 	139 Thain Rd.
	 	Lewiston
	 	ID
	 	 	83501	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9890

	 	Killeen
	 	ARC Partners c/o 

Quine & Associates,
Inc.
	 	122 East 42nd Suite
4400
	 	New York
	 	NY
	 	 	10168	 	 	Jennie Snelling, Regional

VP
	 	 	254 542 1767	 	 	 	254 542 1272	 	 	2200 E. Veterans
Memorial Blvd.
	 	Killeen
	 	TX
	 	 	76543	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9891

	 	Odessa
	 	CA New Plan Venture
Fund Texas I, L.P. 

c/o Centro
Properties Group
	 	420 Lexington
Avenue, 7th Floor
	 	New York
	 	NY
	 	 	10170	 	 	Linda Akins
	 	 	212-869-3000	 	 	 	212-869-3989	 	 	3897 E. 42nd St.
	 	Odessa
	 	TX
	 	 	79762	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9894

	 	Murfreesboro
	 	Northfield Crossing
Partners, L.P.
 c/o
Sam Scaffide
	 	7640 Wentworth
Dr., Payments sent to 

8230 Prestwick Circle
	 	Duluth
	 	GA
	 	 	30097	 	 	Sam Scaffide
	 	 	770 495 8384	 	 	 	770 495 8373	 	 	1660 Memorial Blvd.
	 	Murfreesboro
	 	TN
	 	 	37129	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9895

	 	New Braunfels
	 	New Braunfels
Marketplace, L.P. 

c/o Wiggins Company
	 	177 West Mill St,
	 	New Braunfels
	 	TX
	 	 	78130	 	 	J. Patrick Wiggins
	 	 	830 620 7475	 	 	 	830 629 2239	 	 	651 Bus Loop IH-35,
#135
	 	New Braunfels
	 	TX
	 	 	78130	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9896

	 	Clarksville
	 	Cooke & Grace
Properties
	 	3309 Fairmont Drive
	 	Nashville
	 	TN
	 	 	37203	 	 	Ched Cooke
	 	 	615 385 5558	 	 	 	615 385 4868	 	 	1600 Ft. Campbell
Blvd., Ste. A
	 	Clarksville
	 	TN
	 	 	37042	 

 

 

 

EXHIBIT 4-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	Store	 	Landlord/Subl	 	LL	 	 	 	LL	 	 	 	 	 	 	 	 	LL	 	 	 	 	 	Store	 	 	 	 	 	 
	Number	 	Name	 	andlord Entity	 	Address	 	LL City	 	ST	 	 	LLZIP	 	LL Contact	 	 	Phone	 	 	LL Fax	 	Address	 	City	 	State	 	 	Zip
	2225w

	 	Amarillo Cabinet Shop
	 	Benefit 592 Trust

c/o Hall Collier,
Trustee
	 	6455 Bixby Terrace
Drive
	 	Long Beach
	 	CA
	 	 	90815-4700	 	 	Hal Collier
	 	 	562 431 5780	 	 	 	562 684 4431	 	 	1900 W. 7th St.
	 	Amarillo
	 	TX
	 	 	79102	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7100w

	 	JCPenney
	 	Omni Capital
Corporation
	 	1715 W. 58th
	 	Amarillo
	 	TX
	 	 	79110	 	 	Mrs. Ann Crouch
	 	 	806 352 2706	 	 	 	806 352 6313	 	 	3701 Plains Blvd.
	 	Amarillo
	 	TX
	 	 	79102	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9000w

	 	Amarillo Main Office
	 	Omni Capital
Corporation
	 	1715 W. 58th
	 	Amarillo
	 	TX
	 	 	79110	 	 	Mrs. Ann Crouch
	 	 	806 352 2706	 	 	 	806 352 6313	 	 	3601 Plains Blvd.
	 	Amarillo
	 	TX
	 	 	79102	 

 

 

 

EXHIBIT 4-6

Encumbrances

None

 

 

 

EXHIBIT 4-7

Indebtedness

	1.	 	Irrevocable Letter of Credit No. MS1234918 issued by Bank of America in favor of The
Travelers Indemnity Company in a sum of up to $32,000.00, expiring November 1, 2010.

	2.	 	Irrevocable Letter of Credit No. MS1365563 issued by Bank of America in favor of
Hartford Fire Insurance Company in a sum up to $725,000.00, expiring December 1, 2010.

 

 

 

EXHIBIT 4-8

Insurance Policies

SCHEDULE OF INSURANCE

FOR

HASTINGS ENTERTAINMENT, INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COVERAGE	 	 	 	 	 	 	 	 	 	 	 
	INSURER	 	EFF. DATE	 	 	 	 	 	 	 	 	LIMITS/
	POLICY NUMBER	 	EXP. DATE	 	 	PREMIUM	 	 	POLICY TYPE	 	DEDUCTIBLES
	Property
	 	 	11/01/09	 	 	$	394,000	 	 	COVERAGE AND LIMITS	 	 	 
	Affiliated FM Insurance Co.
	 	 	11/01/10	 	 	 	 	 	 	Policy Limit - each occurrence	 	$	125,000,000
	GK247
	 	 	 	 	 	 	 	 	 	Earth Movement	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Earth Movement - Tier One & Tier Two New Madrid	 	$	25,000,000
	 
	 	 	 	 	 	 	 	 	 	Seismic Zones	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Flood - annual aggregate	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Flood - combined Tier I Flood Prone Locations	 	$	5,000,000
	 
	 	 	 	 	 	 	 	 	 	Flood - combined Tier II Flood Prone Locations	 	$	5,000,000
	 
	 	 	 	 	 	 	 	 	 	Business Interruption including Rental Income	 	$	20,000,000
	 
	 	 	 	 	 	 	 	 	 	Extra Expense	 	$	6,750,000
	 
	 	 	 	 	 	 	 	 	 	Off Premises Power - 3601-3615 Plains Blvd., Amarillo, TX	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Off Premises Power - all other locations	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Leasehold Interest	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Contingent Business Interruption - Leader properties	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	SUBLIMITS	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Expediting Expenses	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	Trees, Shrubs, Plants, Lawns (limit $1,000 per item)	 	$	100,000
	 
	 	 	 	 	 	 	 	 	 	Installation Floater	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	Newly Acquired Property	 	$	3,000,000
	 
	 	 	 	 	 	 	 	 	 	Unnamed Locations	 	$	3,000,000
	 
	 	 	 	 	 	 	 	 	 	Fine Arts	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	Accounts Receivable	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Valuable Papers and Records	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Electronic Data Processing, Data, and Media	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Building Ordinance or Law	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Errors and Omissions	 	$	3,000,000
	 
	 	 	 	 	 	 	 	 	 	Transit Coverage	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Fungus, Mold or Mildew	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Contractors Equipment	 	$	100,000
	 
	 	 	 	 	 	 	 	 	 	DEDUCTIBLES	 	 	 
	 
	 	 	 	 	 	 	 	 	 	All losses except:	 	$	50,000
	 
	 	 	 	 	 	 	 	 	 	Earth Movement	 	$	100,000
	 
	 	 	 	 	 	 	 	 	 	Earth Movement - designated locations	 	 	5% or mm. $100,000
	 
	 	 	 	 	 	 	 	 	 	Earth Movement - designated locations	 	 	1% or mm. $100,000
	 
	 	 	 	 	 	 	 	 	 	Flood - per occurrence each location	 	$	100,000
	 
	 	 	 	 	 	 	 	 	 	Flood - Tier I, Tier II locations	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Wind and Hail - designated locations	 	 	5% or mm. $100,000
	 
	 	 	 	 	 	 	 	 	 	Off Premises Power - Interruption -	 	 	24 hours
	 
	 	 	 	 	 	 	 	 	 	Off Premises Power - Property Damage	 	$	50,000
	 
	 	 	 	 	 	 	 	 	 	Contractors Equipment	 	$	10,000
	 
	 	 	 	 	 	 	 	 	 	Transit	 	$	25,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commercial General Liability
	 	 	11/01/09	 	 	$	74,438	 	 	COVERAGE AND LIMITS	 	 	 
	Hartford Fire Insurance Co.
	 	 	11/01/10	 	 	 	 	 	 	General Aggregate (per location)	 	$	2,000,000
	20ECSMS8453
	 	 	 	 	 	 	 	 	 	CAP - all locations	 	$	15,000,000
	 
	 	 	 	 	 	 	 	 	 	Products/Completed Ops. Aggregate	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Personal & Advertising Injury	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Each Occurrence Limit	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Fire Damage - Real property	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Products Recall Expense Limit - each recall	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Products Recall Expense Limit - aggregate	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Medical Payments	 	 	not covered

 

 

 

EXHIBIT 4-8

SCHEDULE OF INSURANCE

FOR

HASTINGS ENTERTAINMENT, INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COVERAGE	 	 	 	 	 	 	 	 	 	 	 
	INSURER	 	EFF. DATE	 	 	 	 	 	 	 	 	LIMITS/
	POLICY NUMBER	 	EXP. DATE	 	 	PREMIUM	 	 	POLICY TYPE	 	DEDUCTIBLES
	Commercial General
	 	 	 	 	 	 	 	 	 	EXTENSIONS OF COVERAGE	 	 	 
	Liability (con’t)
	 	 	 	 	 	 	 	 	 	Employee Benefits Liability	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Each Claim
	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Aggregate Limit
	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	RETENTION	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Automobile
	 	 	11/01/09	 	 	$	5,204	 	 	COVERAGE	 	 	 
	Hartford Fire Insurance Co.
	 	 	11/01/10	 	 	 	 	 	 	Liability	 	 	
	20UENMS8451
	 	 	 	 	 	 	 	 	 	Covered Autos 1) Any Auto
	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Personal Injury Protection	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Covered Autos 5) Owned Autos subject to
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	no-fault
	 	 	Statutory
	 
	 	 	 	 	 	 	 	 	 	Medical Payments per person	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Covered Autos 2) Owned Auto
	 	$	5,000
	 
	 	 	 	 	 	 	 	 	 	Uninsured Motorists	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Covered Autos 2) Owned Auto
	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	PHYSICAL DAMAGE	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Covered Autos 2) Owned Auto
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Covered Autos 8) Hired Autos
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Comprehensive	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Deductible
	 	$	2,500
	 
	 	 	 	 	 	 	 	 	 	Collision	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Deductible
	 	$	2,500
	 
	 	 	 	 	 	 	 	 	 	Towing and Labor - each disablement	 	$	50
	 
	 	 	 	 	 	 	 	 	 	Rental Reimbursement - $30 per day/max.	 	 	 
	 
	 	 	 	 	 	 	 	 	 	50 days	 	$	1,500
	 
	 	 	 	 	 	 	 	 	 	Hired Auto Physical Damage	 	$	50,000
	 
	 	 	 	 	 	 	 	 	 	Hired and Non-Owned Automobile Liability	 	 	included
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Workers Compensation
	 	 	11/01/09	 	 	$	179,632	 	 	COVERAGE AND LIMITS	 	 	 
	Hartford Ins. Co. of the
	 	 	11/01/10	 	 	 	 	 	 	Workers Compensation	 	 	Statutory
	Midwest
	 	 	 	 	 	 	 	 	 	Applies in AL, AR, AZ, CO,
GA, IA, ID, IN, KS,
	 	 	 
	20WNMS8450
	 	 	 	 	 	 	 	 	 	KY, LA, MO,
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	MT, NE, NM, OK, TN, TX, UT	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Employers Liability	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Each Accident
	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Disease Policy Limit
	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	Disease Each Employee
	 	$	500,000
	 
	 	 	 	 	 	 	 	 	 	EXTENSIONS OF COVERAGE	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Voluntary Compensation	 	 	included
	 
	 	 	 	 	 	 	 	 	 	Stop Gap Employers Liability (ND, OH,	 	 	included
	 
	 	 	 	 	 	 	 	 	 	WA, WV, WY)	 	 	 
	 
	 	 	 	 	 	 	 	 	 	US Longshore and Harbor Workers Coverage	 	 	included
	 
	 	 	 	 	 	 	 	 	 	Foreign Voluntary Compensation including
repatriation	 	 	included
	 
	 	 	 	 	 	 	 	 	 	Waiver of Subrogation	 	 	 
	 
	 	 	 	 	 	 	 	 	 	DEDUCTIBLE	 	$	150,000
	 
	 	 	 	 	 	 	 	 	 	Step-Down	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Umbrella/Excess Liability
	 	 	11/01/09	 	 	$	48,158	 	 	COVERAGE AND LIMITS	 	 	 
	Fireman’s Fund Insurance
	 	 	11/01/10	 	 	 	 	 	 	Occurrence Limit	 	$	35,000,000
	SUO-000-7175-5920
	 	 	 	 	 	 	 	 	 	Annual Aggregate	 	$	35,000,000
	 
	 	 	 	 	 	 	 	 	 	RETENTION	 	 	nil
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fiduciary Liability
	 	 	06/11/10	 	 	$	9,025	 	 	COVERAGE AND LIMITS	 	 	 
	Federal Insurance
	 	 	06/11/11	 	 	 	 	 	 	Each Loss	 	$	2,000,000
	Company
	 	 	 	 	 	 	 	 	 	Each Policy Period	 	$	2,000,000
	8139-1020
	 	 	 	 	 	 	 	 	 	RETENTION	 	$	50,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Crime
	 	 	06/11/10	 	 	$	14,440	 	 	COVERAGE AND LIMITS	 	 	 
	Federal Insurance
	 	 	06/11/11	 	 	 	 	 	 	Employee Theft	 	$	2,000,000
	Company
	 	 	 	 	 	 	 	 	 	Premises	 	$	2,000,000
	8210-2592
	 	 	 	 	 	 	 	 	 	Transit	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Forgery	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Computer Fraud	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Funds Transfer Fraud	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Money Orders and Counterfeit Fraud	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	Client	 	$	2,000,000
	 
	 	 	 	 	 	 	 	 	 	RETENTION	 	$	75,000

 

 

 

EXHIBIT 4-8

SCHEDULE OF INSURANCE

FOR

HASTINGS ENTERTAINMENT, INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COVERAGE	 	 	 	 	 	 	 	 	 	 	 
	INSURER	 	EFF. DATE	 	 	 	 	 	 	 	 	LIMITS/
	POLICY NUMBER	 	EXP. DATE	 	 	PREMIUM	 	 	POLICY TYPE	 	DEDUCTIBLES
	Directors & Officers Liability
	 	 	06/11/10	 	 	$	67,500	 	 	COVERAGE AND LIMITS	 	 	 
	St. Paul Mercury Ins.
	 	 	06/11/11	 	 	 	 	 	 	Each Loss	 	$	10,000,000
	(Travelers)
	 	 	 	 	 	 	 	 	 	Each Policy Period	 	$	10,000,000
	EC06801743
	 	 	 	 	 	 	 	 	 	RETENTION	 	 	 
	 
	 	 	 	 	 	 	 	 	 	- Loss Agreement B - non-Securities claims	 	$	100,000
	 
	 	 	 	 	 	 	 	 	 	- Defense Costs, each Securities Claim	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excess D&O
	 	 	06/11/10	 	 	$	30,000	 	 	COVERAGE AND LIMITS	 	 	 
	Federal Insurance
	 	 	06/11/11	 	 	 	 	 	 	Each Loss	 	$	5,000,000
	Company
	 	 	 	 	 	 	 	 	 	Each Policy Period	 	$	5,000,000
	8210-2586
	 	 	 	 	 	 	 	 	 	 	 	 	excess 10 mil primary
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employment Practices
	 	 	06/11/10	 	 	$	80,600	 	 	COVERAGE AND LIMITS	 	 	 
	Liability
	 	 	06/11/11	 	 	 	 	 	 	Aggregate	 	$	10,000,000
	Illinois
National Insurance Co.
	 	 	 	 	 	 	 	 	 	RETENTION	 	$	500,000
	
01-933-40-62
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aviation
	 	 	11/01/09	 	 	$	34,307	 	 	COVERAGE AND LIMITS	 	 	 
	USAIG	 	 	11/01/10	 	 	 	 	 	 	Liability- Bodily Injury and Property Damage	 	$	100,000,000
	SIHL1-250N
	 	 	 	 	 	 	 	 	 	Liability- Temporary Sustitute Aircraft	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Non-Owned Aircraft	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Personal Injury	 	$	25,000,000
	 
	 	 	 	 	 	 	 	 	 	Non-Owned Physical Damage	 	$	4,100,000
	 
	 	 	 	 	 	 	 	 	 	Ground Hangarkeepers Liability	 	$	10,000,000
	 
	 	 	 	 	 	 	 	 	 	Non-Owned Hangar Contents Coverage	 	$	1,000,000
	 
	 	 	 	 	 	 	 	 	 	Passenger Personal Effects Coverage	 	$	25,000
	 
	 	 	 	 	 	 	 	 	 	Airport Premises Liability	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Products Liability	 	$	100,000,000
	 
	 	 	 	 	 	 	 	 	 	Passenger Voluntary Settlement Coverage	 	$	250,000
	 
	 	 	 	 	 	 	 	 	 	Medical Payment including Crew	 	$	25,000
	 
	 	 	 	 	 	 	 	 	 	Premises Medical	 	$	25,000
	 
	 	 	 	 	 	 	 	 	 	Hull Coverage- 1984 Cessna Conquest II,	 	$	1,658,000
	 
	 	 	 	 	 	 	 	 	 	N68HS	 		
	 
	 	 	 	 	 	 	 	 	 	DEDUCTIBLE	 	 	nil
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	 	 	 	$	937,304	 	 	 	 	 	 

Premium does not include taxes, fees or surcharges

This schedule is intended as an overview only. Please refer to the
individual policies for specific coverage information.

 

 

 

EXHIBIT 4-10

Capital Leases

None

 

 

 

EXHIBIT 4-14

Taxes

Hastings Entertainment, Inc. and its subsidiaries, on a consolidated basis, will be audited for
franchise tax by the Texas Comptroller of Public Accounts for the 2008 report year, based on the
financial condition of Hastings Entertainment, Inc. for the accounting year ended 2007. The tax
auditor is Michael Gonzales, from Amarillo, Texas. It is anticipated that the audit will begin
during August 2010.

 

 

 

EXHIBIT 4-16(a)

ERISA

None

 

 

 

EXHIBIT 4-18

Litigation

None

 

 

 

EXHIBIT 5-4

Borrowing Base Certificate

Date

Hastings Entertainment, Inc. (“The Borrower”)

Revolving Line of Credit Availability Calculation

Borrowing Base / Inventory Certificate

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Cost	 	 	Retail
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning inventory, as of:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Add: Receipts
	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Net sales, at retail
	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of goods sold
	 	 	 	 	 	 	 	 	 	 	 	 
	Markdowns
	 	 	 	 	 	 	 	 	 	 	 	 
	Returns
	 	 	 	 	 	 	 	 	 	 	 	 
	Shrinkage
	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Ending Inventory, as of:
	 	 	 	 	 	 	 	 	 	 	 	 
	Plus: Inventory in-transit
	 	 	 	 	 	 	 	 	 	 	 	 
	Sun Adventure Sports Store 9301
	 	 	 	 	 	 	 	 	 	 	 	 
	DC inventory
	 	 	 	 	 	 	 	 	 	 	 	 
	RC inventory
	 	 	 	 	 	 	 	 	 	 	 	 
	Eligible rental video inventory
	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Shrink reserve
	 	 	 	 	 	 	 	 	 	 	 	 
	Standard Cost Adjustment (net)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Eligible inventory, as of:
	 	 	 	 	 	A	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Appraised Value % (NOLV)
	 	 	 	 	 	B	 	 	 	 	 	 
	Inventory Advance Rate:
	 	 	 	 	 	C	 	 	 	 	 	85%*B
	Inventory availability
	 	 	 	 	 	D	 	 	 	 	 	A * C
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Eligible Credit Card A/R, as of:
	 	 	 	 	 	E	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate:
	 	 	85.0	%	 	F	 	 	 	 	 	 
	Credit Card A/R availability
	 	 	 	 	 	G	 	 	 	 	 	E * F
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Borrowing Base before Availability Reserves
	 	 	 	 	 	H	 	 	 	 	 	D + G
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Rental reserve
	 	 	 	 	 	 	 	 	 	 	 	 
	Gift card reserve
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Borrowing Base after Availability Reserves
	 	 	 	 	 	I	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving credit ceiling
	 	 	100,000,000	 	 	J	 	 	 	 	 	 
	Total availability
	 	 	 	 	 	 	 	 	 	 	 	Lesser of I and J

 

 

 

EXHIBIT 5-4

Hastings Entertainment, Inc. (“The Borrower”)

Availability Calculation

	 	 	 	 	 	 	 
	Beginning principal balance
	 	 	 	 	 	 
	Add: Prior days advance
	 	 	 	 	 	 
	Fees and interest charged today
	 	 	 	 	 	 
	Less: prior day’s paydown
	 	 	 	 	 	 
	 
	 	 	 	 	 
	Ending principal balance
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Add: Estimated accrued month-to-date interest
	 	 	 	 	 	 
	Letters of credit
	 	 	 	 	 	Today’s wire                      
	 
	 	 	 	 	 
	Total liability prior to request
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Net availability prior to today’s request
	 	 	 	 	 	 
	Today’s advance request
	 	 	 	 	 	 
	Net availability including today’s request
	 	 	 	 	 	 
	Minimum availability requirement
	 	 	10,000,000	 	 	 
	Minimum availability test (must be > zero)
	 	 	 	 	 	 

The undersigned represents and warrants that (a) the information set forth above has been prepared
in accordance with the requirements of the Amended and Restated Loan and Security Agreement (the
“Loan Agreement”) between the Borrower and Bank of America, N.A. (the “Agent”); and (b) no “Event of
Default” (as defined in the Loan Agreement) is presently in existence.

Authorized Signer:                                         

 

 

 

EXHIBIT 7-1

DDAs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9301

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Monte Brogdin
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9602

	 	Nacogdoches
	 	TX
	 	Commercial Bank of Texas, NA
	 	N/A
	 	836-715-4240
	 	4810 North 
Street/P.O. 
Drawer 635050
	 	Nacogdoches
	 	TX
	 	 	75963	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9603

	 	Plainview
	 	TX
	 	Hale County State Bank
	 	N/A
	 	806-293-3635
	 	P. O. Box 970
	 	Plainview
	 	TX
	 	 	79073-0970	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9604

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Monte Brogdin
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9605

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Monte Brogdin
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9606

	 	Carlsbad
	 	NM
	 	Carlsbad National Bank
	 	N/A
	 	505-234-2500
	 	P. O. Box 1359
	 	Carlsbad
	 	NM
	 	 	88221 1359	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9607

	 	Garden City
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1515 E Kansas 
Ave
	 	Garden City
	 	KS
	 	 	67846-6232	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9608

	 	San Angelo
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2902 Sherwood 
Way
	 	San Angelo
	 	TX
	 	 	76901	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9609

	 	Farmington
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9610

	 	San Marcos
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	San Antonio 
Vault Mail Code 
TX7-060-01-02 
P.O Box 300
	 	San Antonio
	 	TX
	 	 	78291	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9611

	 	Alamogordo
	 	NM
	 	1st National Bank
	 	N/A
	 	575-437-4880
	 	P.O. Drawer 9
	 	Alamogordo
	 	NM
	 	 	88310-0009	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9613

	 	Borger
	 	TX
	 	Amarillo National Bank
	 	Monte Brogdin
	 	806-378-8000
	 	531 N Deahl
	 	Borger
	 	TX
	 	 	79007	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9614

	 	Abilene
	 	TX
	 	State National Bank
	 	N/A
	 	325-676-3800
	 	P. O. Box 3157
	 	Abilene
	 	TX
	 	 	79604	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9615

	 	Dodge City
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533
 ext 52143
	 	2307 Central
 Ave
	 	Dodge City
	 	KS
	 	 	67801-6203	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9616

	 	College Station
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	A&M Banking 
Center 111 
University Drive
	 	College Station
	 	TX
	 	 	77840	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9617

	 	Paris
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1161 Clarksville
 Street
	 	Paris
	 	TX
	 	 	75460-6094	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9618

	 	Hobbs
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	917 Main 
Street
	 	Lubbock
	 	TX
	 	 	79402	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9619

	 	Seguin
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1335 E Court
	 	Seguin
	 	TX
	 	 	78155	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9620

	 	Albuquerque
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9622

	 	Victoria
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	5206 N Navarro
	 	Victoria
	 	TX
	 	 	77901	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9623

	 	Conway
	 	AR
	 	First Community Bank
	 	N/A
	 	501-450-1810
	 	1390 Highway 
64 West
	 	Conway
	 	AR
	 	 	72032	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9624

	 	Jacksonville
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	101 Gregory
 Street
	 	Jacksonville
	 	AR
	 	 	72076	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9627

	 	Longview
	 	TX
	 	Longview Bank & Trust
	 	N/A
	 	903-237-5500
	 	P. O. Box 3188
	 	Longview
	 	TX
	 	 	75606-3188	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9628

	 	Brownwood
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	600 N Center 
Ave
	 	Brownwood
	 	TX
	 	 	76801	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9629

	 	Albuquerque
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street
 NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9630

	 	Albuquerque
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9636

	 	Roswell
	 	NM
	 	First Federal Bank
	 	N/A
	 	800-219-6201
	 	P.O. Box 340
	 	Roswell
	 	NM
	 	 	88202-0340	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9638

	 	Joplin
	 	MO
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	402 S Rangeline 
Road
	 	Joplin
	 	MO
	 	 	64801	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9639

	 	Albuquerque
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9642

	 	Midland
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Garfiled Banking
 Center 4309 N 
Garfield
	 	Midland
	 	TX
	 	 	79705	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9647

	 	Santa Fe
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street
 NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9652

	 	Lawton
	 	OK
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1311 NW 
Sheridan Road
	 	Lawton
	 	OK
	 	 	73505-5211	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9655

	 	Ada
	 	OK
	 	Citizens Bank of Ada
	 	N/A
	 	580-332-6100
	 	P. O. Box 1468 
— 1717 Arlington 
Street, 74820
	 	Ada
	 	OK
	 	 	74820	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9659

	 	Round Rock
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	8300 N Lamar
	 	Austin
	 	TX
	 	 	78753	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9660

	 	Benton
	 	AR
	 	Metropolitan National Bank
	 	N/A
	 	501-315-7600
	 	1323 Military 
Road
	 	Benton
	 	AR
	 	 	72015	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9661

	 	Ponca City
	 	OK
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	3001 N 14th
	 	Ponca City
	 	OK
	 	 	74601	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9662

	 	Billings
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7489
	 	1645 Grand 
Ave
	 	Billings
	 	MT
	 	 	59102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9663

	 	Wichita Falls
	 	TX
	 	First National Bank
	 	N/A
	 	940-696-3000
	 	3801 Fairway
 Blvd
	 	Wichita Falls
	 	TX
	 	 	76308	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9664

	 	Bryan
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	A&M Banking 
Center 111 
University Drive
	 	College Station
	 	TX
	 	 	77841	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9665

	 	Fayetteville
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Joyce Street 
Banking Center 
1061 E Joyce 
Street
	 	Fayetteville
	 	AR
	 	 	72703	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9666

	 	Las Cruces
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Amador Banking 
Center 250 W 
Amador Ave
	 	Las Cruces
	 	NM
	 	 	88006	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9668

	 	Pampa
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	100 N Cuyler
 Street
	 	Pampa
	 	TX
	 	 	79065	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9672

	 	Jonesboro
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2500 Highland
	 	Jonesboro
	 	AR
	 	 	72401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9673

	 	Huntsville
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1015 13th 
Street
	 	Huntsville
	 	TX
	 	 	77340	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9674

	 	Stillwater
	 	OK
	 	Stillwater National Bank
	 	N/A
	 	405-372-2234
	 	P. O. Box 1988
	 	Stillwater
	 	OK
	 	 	74074-1988	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9675

	 	Enid
	 	OK
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	300 W Randolph 
Ave
	 	Enid
	 	OK
	 	 	73701	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9676

	 	Lawrence
	 	KS
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7490
	 	1807 W 23rd 
Street
	 	Lawrence
	 	KS
	 	 	66046	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9677

	 	Kerrville
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	741 Water 
Street
	 	Kerrville
	 	TX
	 	 	78028-5319	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9678

	 	Muskogee
	 	OK
	 	Bank First
	 	N/A
	 	915-683-5551
	 	P. O. Box 1489
	 	Muskogee
	 	OK
	 	 	74402-1489	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9680

	 	Missoula
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7491
	 	2801 Brooks 
Street
	 	Missoula
	 	MT
	 	 	59801	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9681

	 	Rio Rancho
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9682

	 	Topeka
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	5325 SW 21st 
Street
	 	Topeka
	 	KS
	 	 	66604	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9683

	 	Conroe
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2900 W Davis 
Street
	 	Conroe
	 	TX
	 	 	77304	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9684

	 	Denton
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2311 Colorado 
Blvd
	 	Denton
	 	TX
	 	 	76205	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9685

	 	Sherman
	 	TX
	 	American State Bank
	 	N/A
	 	903-893-7555
	 	P. O. Box 1234
	 	Sherman
	 	TX
	 	 	75091-1234	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9686

	 	Russellville
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	209 W Main 
Street
	 	Russellville
	 	AR
	 	 	72801	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9688

	 	Grand Junction
	 	CO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7492
	 	422 White 
Ave
	 	Grand Junction
	 	CO
	 	 	81501	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9689

	 	Lake Jackson
	 	TX
	 	International Bank of Commerce
	 	N/A
	 	800-969-1150
	 	P.O. Box 228
	 	Port Lavaca
	 	TX
	 	 	77979-0228	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9690

	 	Hutchinson
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Hutchison East 
Office
	 	Hutchison
	 	KS
	 	 	67501-1115	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9691

	 	Greenville
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	5903 Wesley
	 	Greenville
	 	TX
	 	 	75402	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9692

	 	Ardmore
	 	OK
	 	Citizens Bank & Trust
	 	N/A
	 	580-226-4610
	 	P. O. Box 1689 —
 1100 N 
commerce 
Street, 73401
	 	Ardmore
	 	OK
	 	 	73402	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9693

	 	Helena
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7493
	 	302 N Last 
Chance
	 	Helena
	 	MT
	 	 	59601	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9694

	 	Kingman
	 	AZ
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Kingman 
Banking Center
 2307 Stockton 
Hill Road
	 	Kingman
	 	AZ
	 	 	86401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9695

	 	Idaho Falls
	 	ID
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	110 N Holmes 
Ave
	 	Idaho Falls
	 	ID
	 	 	83401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9696

	 	Coeur D’Alene
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7494
	 	1603 N 4th
	 	Coeur D’Alene
	 	ID
	 	 	83814	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9697

	 	Searcy
	 	AR
	 	First Security Bank
	 	N/A
	 	501-279-3400
	 	314 NORTH 
SPRING
	 	Searcy
	 	AR
	 	 	72143	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9698

	 	Altus
	 	OK
	 	First National Bank
	 	N/A
	 	580-482-7700
	 	110 E BROADWAY
	 	Altus
	 	OK
	 	 	73522	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9699

	 	Jefferson City
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7495
	 	101 W McCarty St
	 	Jefferson City
	 	MO
	 	 	65101	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9701

	 	Maryville
	 	TN
	 	Branch Banking & Trust (BB&T)
	 	N/A
	 	865-981-7500
	 	710 S Foothills 
Plaza Dr
	 	Maryville
	 	TN
	 	 	37801-2300	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9702

	 	Richmond
	 	IN
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7496
	 	Richmond 
Square Loan 
Center, 4706
 National Road E
	 	Richmond
	 	IN
	 	 	47374	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9703

	 	Fort Smith
	 	AR
	 	Bank Corp South
	 	N/A
	 	888-797-7711
	 	P.O. Box 47
	 	Fortsmith
	 	AR
	 	 	72902-0047	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9707

	 	Grand Island
	 	NE
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7497
	 	211 N Webb Road
	 	Grand Island
	 	NE
	 	 	68803	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9715

	 	Richmond
	 	KY
	 	Madison Bank
	 	N/A
	 	859-626-8008
	 	606 University
 Shopping Center
	 	Richmond
	 	KY
	 	 	40475	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9719

	 	Auburn
	 	AL
	 	Bank Corp South
	 	N/A
	 	888-797-7711
	 	807 East Glenn Ave
	 	Auburn
	 	AL
	 	 	36230	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9723

	 	Pittsburg
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533
 ext 52143
	 	216 N Broadway
	 	Pittsburg
	 	KS
	 	 	66762	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9724

	 	Gillette
	 	WY
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7499
	 	509 Douglas Highway
	 	Gillette
	 	WY
	 	 	82716	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9725

	 	Newnan
	 	GA
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	60 Bullsboro Dr.
	 	Newnan
	 	GA
	 	 	30263	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9726

	 	Bartlesville
	 	OK
	 	Arvest Bank
	 	N/A
	 	800-874-1307
	 	P.O. Box 999
	 	Bartlesville
	 	OK
	 	 	74005	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9727

	 	Moscow
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7500
	 	301 S Main
	 	Moscow
	 	ID
	 	 	83843	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9729

	 	Moses Lake
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7501
	 	203 E 3rd Ave
	 	Moses Lake
	 	WA
	 	 	98837	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9730

	 	Fremont
	 	NE
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778
 208-383-7502
	 	1615 E 23rd Street
	 	Fremont
	 	NE
	 	 	68025	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9734

	 	Liberal
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1551 N Kansas 
Ave
	 	Liberal
	 	KS
	 	 	67901	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9736

	 	Mountain Home
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	950 Highway 52 E
	 	Mountain Home
	 	AR
	 	 	72653	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9737

	 	Batesville
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2340 Harrison Street
	 	Batesville
	 	AR
	 	 	72501	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9738

	 	Springdale
	 	AR
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2400 W Sunset 
Ave
	 	Springdale
	 	AR
	 	 	72764	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9739

	 	Hays
	 	KS
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1200 E 27th
	 	Hays
	 	KS
	 	 	67601	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9740

	 	Dyersburg
	 	TN
	 	First Citizens National Bank
	 	N/A
	 	901-285-4410
	 	P.O. Box 370
	 	Dyersburg
	 	TN
	 	 	38025	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9741

	 	Tullahoma
	 	TN
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7503
	 	308 N Jackson
	 	Tullahoma
	 	TN
	 	 	37388	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9742

	 	Los Lunas
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9743

	 	Sweetwater
	 	TX
	 	First National Bank
	 	N/A
	 	940-235-6600
	 	P.O. Box 660
	 	Sweetwater
	 	TX
	 	 	79556	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9744

	 	Butte
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7504
	 	10 S Main Street
	 	Butte
	 	MT
	 	 	59701	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9745

	 	Richland
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7505
	 	701 Jadwin Ave
	 	Rickland
	 	WA
	 	 	99352	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9746

	 	Mt Pleasant
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	302 N Jefferson 
Ave
	 	Mt Pleasant
	 	TX
	 	 	75455-3935	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9747

	 	Montrose
	 	CO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778
 208-383-7506
	 	1500 E Oak Grove
	 	Montrose
	 	CO
	 	 	81401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9748

	 	McMinnville
	 	TN
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7507
	 	601 N Chancery Street
	 	McMinnville
	 	TN
	 	 	37110	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9750

	 	Lubbock
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	916 Main 
Street
	 	Lubbock
	 	TX
	 	 	79401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9754

	 	Canyon
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1700 E 4th 
Ave
	 	CANYON
	 	TX
	 	 	79015	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9757

	 	Clovis
	 	NM
	 	New Mexico Bank & Trust
	 	N/A
	 	505-762-4741
	 	709 PILE / P.O. Box 730
	 	Clovis
	 	NM
	 	 	88102-0730	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9758

	 	Canon City
	 	CO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7508
	 	801 Macon Ave
	 	Canon City
	 	CO
	 	 	81212	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9759

	 	Meridian
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7509
	 	220 W Cherry Lane
	 	Meridian
	 	ID
	 	 	83642	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9760

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Monte Brogdin
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9761

	 	Walla Walla
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7510
	 	22 E Alder Street
	 	Walla Walla
	 	WA
	 	 	99362	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9763

	 	Albuquerque
	 	NM
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	725 Sixth Street 
NW
	 	Albuquerque
	 	NM
	 	 	87102	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9765

	 	Cordova
	 	TN
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1591 N Germantown Parkway
	 	Cordova
	 	TN
	 	 	38016	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9767

	 	Alexandria
	 	LA
	 	Regions Bank
	 	N/A
	 	318-427-3700
	 	1439 Centre Court, Suite 100
	 	Alexandria
	 	LA
	 	 	71301	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9768

	 	Lubbock
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	University Plaza Banking Center 1901 University Ave
	 	Lubbock
	 	TX
	 	 	79410	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9801

	 	Lake Havasu City
	 	AZ
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	10 Acoma Blvd S
	 	Lake Havasu City
	 	AZ
	 	 	86403	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9802

	 	Sierra Vista
	 	AZ
	 	Stockman’s Bank
	 	N/A
	 	520-458-5200
	 	25 S Highway 92
	 	Sierra Vista
	 	AZ
	 	 	85635	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9803

	 	Bozeman
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7511
	 	104 E Main Street
	 	Bozeman
	 	MT
	 	 	59715	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9807

	 	Ogden
	 	UT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7512
	 	2590 Washington Blvd
	 	Ogden
	 	UT
	 	 	84401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9810

	 	Yuma
	 	AZ
	 	National Bank of ARizona
	 	N/A
	 	800-497-8168
	 	2415 Avenue A
	 	Yuma
	 	AZ
	 	 	85364	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9813

	 	Boise
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7513
	 	7230 Fairview Ave
	 	Boise
	 	ID
	 	 	83704	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9816

	 	Flagstaff
	 	AZ
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	Flagstaff
 Woodland 2625
 S Woodland 
Village Blvd
	 	Flagstaff
	 	AZ
	 	 	86001	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9817

	 	Boise
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7514
	 	10541 Overland Road
	 	Boise
	 	ID
	 	 	83709	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9819

	 	Kearney
	 	NE
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7515
	 	204 W 31st Street
	 	Kearney
	 	NE
	 	 	68845	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9822

	 	Boise
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7516
	 	301 W Park Center Blvd
	 	Boise
	 	ID
	 	 	83706	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9823

	 	Laramie
	 	WY
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7517
	 	568 N 3rd Street
	 	Laramie
	 	WY
	 	 	82072	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9824

	 	Rock Springs
	 	WY
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7518
	 	1510 Dewar Drive
	 	Rock Springs
	 	WY
	 	 	82901	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9826

	 	Waco
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	4901 Bosque Blvd
	 	Waco
	 	TX
	 	 	76710	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9827

	 	Tyler
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	3301 Golden Road
	 	Tyler
	 	TX
	 	 	75701	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9828

	 	Veradale
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7519
	 	15426 E Sprague Ave
	 	Spokane
	 	WA
	 	 	99037	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9830

	 	Spokane
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7520
	 	2807 E 29th
	 	Spokane
	 	WA
	 	 	99223	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9831

	 	Spokane
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7521
	 	3909 N Lincoln
	 	Spokane
	 	WA
	 	 	99205	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9832

	 	Wenatchee
	 	WA
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7522
	 	1020 N Mission Street
	 	Wanatchee
	 	WA
	 	 	98801	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9836

	 	Norman
	 	OK
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1239 W Main
	 	Norman
	 	OK
	 	 	73069	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9837

	 	Greeley
	 	CO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7523
	 	3690 W 10th Street
	 	Greeley
	 	CO
	 	 	80634	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9840

	 	Great Falls
	 	MT
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7524
	 	Great Falls 10th Ave 1700 10th Ave
	 	Great Falls
	 	MT
	 	 	59405	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9850

	 	Logan
	 	UT
	 	Zions First National Bank
	 	N/A
	 	800-789-2265
	 	175 E 442 North
	 	Logan
	 	UT
	 	 	84321	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9851

	 	Prescott
	 	AZ
	 	National Bank of ARizona
	 	N/A
	 	800-497-8168
	 	1055 Iron Springs Road
	 	Prescott
	 	AZ
	 	 	86305	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9865

	 	Twin Falls
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7525
	 	748 Blue Lakes Blvd
	 	Twin Falls
	 	ID
	 	 	83301	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9866

	 	St. Joseph
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7526
	 	800 North Belt Highway
	 	St. Joseph
	 	MO
	 	 	64506	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9867

	 	Yukon
	 	OK
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1330 South Cornwell
	 	Yukon
	 	OK
	 	 	73099	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9869

	 	Cape Girardeau
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7527
	 	325 N Kingshigway
	 	Cape Girardeau
	 	MO
	 	 	63701	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9871

	 	Duncan
	 	OK
	 	Arvest Bank
	 	N/A
	 	580-255-7121
	 	P. O. Box 1508
	 	Duncan
	 	OK
	 	 	73534	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9874

	 	Bullhead
	 	AZ
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1755 Lakeside Drive
	 	Bullhead City
	 	AZ
	 	 	86442	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9875

	 	Norfolk
	 	NE
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7529
	 	Norfolk West 
275 2025 
Krenzien Dr
	 	Norfolk
	 	NE
	 	 	68701	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9876

	 	Manhattan
	 	KS
	 	Commerce Bank, NA
	 	N/A
	 	800-828-1629
	 	727 Poyntz Ave
	 	Manhattan
	 	KS
	 	 	66502-5350	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9878

	 	Poplar Bluff
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7530
	 	2024 N Westwood
	 	Poplar Bluff
	 	MO
	 	 	63901	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9879

	 	Kirksville
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7531
	 	Kirksville North 2202 N Baltimore
	 	Kirksville
	 	MO
	 	 	63501	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9880

	 	Stephenville
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533
 ext 52143
	 	115 North Graham
	 	Stephenville
	 	TX
	 	 	76401	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9883

	 	Waxahachie
	 	TX
	 	Citizens National Bank
	 	N/A
	 	972-938-4300
	 	P.O. Box 717
	 	Waxahachie
	 	TX
	 	 	75168	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9885

	 	Warrensburg
	 	MO
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7532
	 	P.O. Box 5238
	 	Cincinnati
	 	OH
	 	 	45201	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9887

	 	Lewiston
	 	ID
	 	US Bank
	 	Toni L. Braddock
	 	800-810-8778 
208-383-7533
	 	1900 19th
	 	Lewiston
	 	ID
	 	 	83501	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9890

	 	Killeen
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	2551 Trimmier Road
	 	Killeen
	 	TX
	 	 	76542-1902	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9891

	 	Odessa
	 	TX
	 	State National Bank
	 	N/A
	 	888-977-8900
	 	3809 E 42nd Street
	 	Odessa
	 	TX
	 	 	79762	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9894

	 	Murfreesboro
	 	TN
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1625 Memorial Blvd
	 	Murfreesboro
	 	TN
	 	 	37129	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9895

	 	New Braunfels
	 	TX
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	501 Landa
	 	New Braunfels
	 	TX
	 	 	78130	 	 	******

 

 

 

EXHIBIT 7-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Contact	 	 	 	 	 	 	 	 	 	 	 	 
	Store	 	City	 	State	 	Bank Name	 	Name	 	Bank Phone	 	Bank Address	 	City	 	State	 	 	Zip	 	Account
	9896

	 	Clarksville
	 	TN
	 	Bank of America
	 	Terri M. Tossman
	 	800-657-9533 
ext 52143
	 	1648 Fort Campbell Blvd
	 	Clarksville
	 	TN
	 	 	37042	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Cash Concentration
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Controlled Disbursement
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Employee Trust
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Internet
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Insurance Claims-Web TPA
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	Payroll
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SSC

	 	Amarillo
	 	TX
	 	Amarillo National Bank
	 	SFS Postage
	 	806-378-8000
	 	Plaza One Box 1
	 	Amarillo
	 	TX
	 	 	79105	 	 	******

 

 

 

EXHIBIT 7-2

Credit Card Arrangements

Merchant Agreement dated March 21, 2006, by and between BA Merchant Services, LLC, Bank of America,
NA and Hastings Entertainment, Inc., covering customer transactions involving Visa/MasterCard,
Discover Card, and American Express.

 

 

 

EXHIBIT 16-2

ASSIGNMENT AND ACCEPTANCE

Dated:                     

Effective Date:                     

	 	 	 
	Re:

	 	Amended and Restated Loan and Security Agreement dated July 22, 2010 (the “Loan Agreement”)
between Bank of America, N.A., as agent for the revolving credit lenders (the “Revolving
Credit Lenders”) referenced therein and the Revolving Credit Lenders, on the one hand, and
Hastings Entertainment, Inc., on the other. (Terms used herein which are defined in the Loan
Agreement have the same meaning herein as in the Loan Agreement).

Agreement By and Between:

                                         (The “Assignor”) and

                                         (The “Assignee”)

Wire Address for Assignee:

Notice Address for Assignee:

	1.	 	ASSIGNMENT AND ASSUMPTION: The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, as of the Effective Date, the
following portion of the Assignor’s interest in the Revolving Credit:

	 	 	 	 	 
	Revolving Credit Percentage Commitment:
	 	 	                    	%
	Revolving Credit Dollar Commitment:
	 	$	                    	 

	2.	 	REPRESENTATIONS BY ASSIGNOR: The Assignor represents that the Assignor is the legal and
beneficial owner of the interest being assigned hereby free and clear of any adverse claims.

 

 

 

EXHIBIT 16-2

	3.	 	EXCLUSION OF WARRANTIES BY ASSIGNOR: The Assignor:

	 	a.	 	Makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of any Loan Document or any other instrument or document furnished pursuant
hereto.

	 
	 	b.	 	Makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or any other Person primarily or secondarily
liable in respect of any of the Liabilities, or the performance or observance by the
Borrower or any other Person primarily or secondarily liable in respect of any of the
Liabilities or any of their obligations under any Loan Documents or any other
instrument or document furnished pursuant hereto or thereto.

	 
	 	c.	 	Attaches the Revolving Credit Note of which the Assignor is the holder and
requests that the Agent cause the Borrower’s exchange of such Note for new Revolving
Credit Notes payable to the Assignor and the Assignee reflecting the assignment
referenced above.

	4.	 	ASSIGNEE’S REPRESENTATIONS, WARRANTIES AND AGREEMENTS: The Assignee:

	 	a.	 	Confirms that it has received a copy of the Loan Agreement (and any amendment
thereto), the most recent financial statements then to have been delivered pursuant to
the Loan Agreement, and such other documents and information as the Assignee has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment
and Acceptance.

	 
	 	b.	 	Confirms and represents that, independently and without reliance upon the
Assignor, the Agent, or any other Revolving Credit Lender and based on such documents
and information as the Assignee deems appropriate, has made such Person’s own credit
decision to join in the credit facility contemplated by the Loan Documents and to
become a “Revolving Credit Lender”.

	 
	 	c.	 	Confirms and represents that the Assignee will continue to make such Person’ s
own credit decisions in taking or not taking action under the Loan Agreement and other
Loan Documents independently and without reliance upon the Assignor, the Agent or any
other Revolving Credit Lender and based on such documents and information as the
Assignee shall deem appropriate at the time.

	 
	 	d.	 	Appoints and authorizes the Agent to take such action on behalf of the Assignee
and to exercise such powers under the Loan Documents as are delegated to the Agent by
the terms hereof or thereof, together with such powers as are reasonably incidental
thereto.

	 
	 	e.	 	Agrees that the Assignee will perform, in accordance with their terms, all of
the obligations which, by the terms of the Loan Agreement and all other Loan Documents
are required to be performed by it as a “Revolving Credit Lender” as if the Assignee
had been a signatory thereto and to any amendments thereof.

 

 

 

EXHIBIT 16-2

	 	f.	 	Represents and warrants that it is legally authorized to enter into this
Assignment and Acceptance and to perform its obligations hereunder, under the Loan
Agreement and under the Loan Documents.

	5.	 	EFFECT OF ASSIGNMENT AND ASSUMPTION: Following delivery, acceptance and recording by the
Agent of this Assignment and Acceptance, from and after the Effective Date:

	 	a.	 	The Assignee shall be a party to the Loan Agreement and the other Loan
Documents (and any amendments thereto) and to the extent of the commitment assigned by
this Assignment and Acceptance, shall have the rights and obligations of a Revolving
Credit Lender thereunder.

	 
	 	b.	 	The Assignor shall be released from the Assignee’s obligations under the Loan
Agreement and the other Loan Documents to the extent of the commitment assigned by this
Assignment and Acceptance.

	 
	 	c.	 	The Agent shall make all payments in respect of the interest in the Revolving
Credit Loans assigned hereby (including payments of principal, interest, and and
applicable fees) to the Assignee.

	 
	 	d.	 	The Assignor and Assignee shall make all appropriate adjustments in payments
for periods prior to the Effective Date by the Agent or with respect to the making of
this assignment directly between themselves.

	6.	 	MASSACHUSETTS LAW: This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Massachusetts.

[Signature Pages Follow]

 

 

 

EXHIBIT 16-2

IN WITNESS WHEREOF, intending to be legally bound, each of the undersigned has caused this
Assignment and Acceptance to be executed on its behalf by its officer thereunto duly authorized, as
of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[                                        ]	 	 	 	[                                        ]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	CONSENT:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	The Agent hereby approves the foregoing
assignment.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	BANK OF AMERICA, NA., as Agent
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	[The Borrower hereby approves the foregoing
assignment.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	HASTINGS ENTERTAINMENT, INC., as
Borrower
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:]1	 	 	 	 

 

	 	 	 
	1	 	To be inserted if Borrower’s consent is required under Section
16-1(a)(ii) of the Loan Agreement.Exhibit 10.39

Exhibit 10.39

EMPLOYMENT AGREEMENT

THIS AGREEMENT is made effective January 5, 2011 (the “Effective Date”), between HASTINGS
ENTERTAINMENT, INC., a Texas corporation (the “Company”), and Scott Voth, an individual (the
“Executive”).

W I T N E S S E T H:

WHEREAS, the Company and the Executive desire to set forth the terms of their agreements
relating to the employment of Executive by the Company; and

NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the
Executive agree as follows:

1. Employment. The Company hereby employs the Executive and the Executive hereby accepts such
employment subject to the terms and conditions contained in this Agreement. The Executive is
engaged as an employee of the Company. Neither the Executive nor the Company intend to create a
joint venture, partnership or other relationship that might impose a fiduciary obligation on the
Executive or the Company in the performance of this Agreement, other than as an officer of the
Company.

2. Executive’s Duties. The Executive is employed on a full-time basis. Throughout the term of this
Agreement, the Executive will use the Executive’s best efforts and due diligence to assist the
Company in the objective of achieving the most profitable operation of the Company and the
Company’s affiliated entities consistent with developing and maintaining a quality business
operation.

2.1 Specific Duties. During the term of this Agreement the Executive will serve as Vice
President of Store Operations for the Company and perform the duties of such office as set
forth in the Bylaws of the Company. The Executive agrees to use the Executive’s best efforts
to perform all of the services required to fully and faithfully execute the offices and
positions to which the Executive is appointed and elected and such other services as may be
reasonably directed by the Chief Executive Officer of the Company in accordance with this
Agreement.

2.2 Modifications. The precise duties to be performed by the Executive may be extended or
curtailed in the discretion of the Chief Executive Officer of the Company.

2.3 Responsibility. The Board of Directors of the Company retains ultimate
responsibility to determine the duties of the Executive.

2.4 Rules and Regulations. From time to time, the Company may issue policies and procedures
applicable to all its employees including the Executive. These policies and procedures
include, but are not limited to, the Company’s Associate Handbook and Code of Conduct. The
Executive agrees to comply with such policies and procedures, except to the extent such
policies conflict with a material term or condition contained within this Agreement. Such
policies and procedures may be supplemented, modified, changed or adopted without notice in
the sole discretion of the Company at any time. In the event of a conflict between such
policies and procedures and this Agreement, this Agreement will control unless compliance
with this Agreement will violate any law or regulation applicable to the Company or its
affiliated entities. The Company will apply its existing and future policies and procedures
in a lawful and evenhanded manner.

 

 

 

Exhibit 10.39

3. Other Activities. Except for activities approved by the Board of Directors, during the
period of Executive’s employment, the Executive will not: (a) engage in activities which
require such substantial services on the part of the Executive that the Executive is unable
to perform the duties assigned to the Executive in accordance with this Agreement; (b) serve
as an officer or director of any publicly held entity; or (c) directly or indirectly invest
in, participate in or acquire an interest in any Competing Business as defined in Paragraph
8(a)(i). The limitations in this paragraph 3 will not prohibit an investment by the
Executive in publicly traded securities as allowed in Paragraph 8(a)(i). The Executive is
not restricted from maintaining or making investments, or engaging in other businesses,
enterprises or civic, charitable or public service functions if such activities,
investments, businesses or enterprises do not result in a violation of clauses (a) through
(c) of this paragraph 3.

4. Executive’s Compensation. The Company agrees to compensate the Executive as follows:

4.1 Base Salary. A base salary (the “Base Salary”), in an annual rate of not less than One
Hundred Seventy-Five Thousand Dollars ($175,000.00), will be paid to the Executive in
installments consistent with the Company’s customary payroll practices, during the term of
this Agreement.

4.2 Bonus. In addition to the Base Salary the Executive will participate in the Corporate
Officer Incentive Plan (“COIP”). Executive’s incentive target expressed as a percentage of
Base Salary for the COIP initially shall be twenty-five percent (25%), proportionately
reduced as to any pro-rated performance period during which Executive is employed.

4.3 Equity Compensation. In addition to the compensation set forth in paragraphs 4.1 and
4.2 of this Agreement, the Executive will be allowed to participate in grants of stock
options, restricted stock or other equity related awards from the Company’s stock
compensation plans put into effect from time to time, subject to the terms and conditions of
such plans.

4.4 Benefits. The Company agrees to extend to the Executive retirement benefits, deferred
compensation, reimbursement of reasonable expenditures for dues, travel and entertainment
and any other benefits the Company provides to other executives or officers from time to
time on the same general terms as such benefits are provided to such individuals. The
Company will also provide the Executive the opportunity to apply for coverage under the
Company’s medical, life and disability plans, if any. If the Executive is accepted for
coverage under such plans, the Company will provide such coverage on the same terms as is
customarily provided by the Company to the plan participants as modified from time to time.
The following specific benefits will also be provided to the Executive at the expense of the
Company.

4.4.1 Vacation. The Executive will be entitled to take paid vacation (as approved)
each calendar year during the term of this Agreement in accordance with Company
policy, subject to proration for any portion of a calendar year under this
Agreement. No additional compensation will be paid for failure to take vacation and
no vacation may be carried forward from one calendar year to another.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	2

 

 

 

Exhibit 10.39

4.5 Gross-Up Payment. In the event it is determined that any payment or distribution by the
Company or the Company’s subsidiaries or affiliates to or for the benefit of the
Executive (whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or otherwise, but determined without regard to any additional payments
required under this paragraph 4.5) (a “Payment”) is subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code (the “Code”) or any interest or penalties related
to such excise tax (collectively, the “Excise Tax”), the Executive will be entitled to
receive an additional payment (a “Gross-Up Payment”) from the Company. The Gross-Up Payment
will be equal to the amount such that after payment by the Executive of all taxes (including
the Excise Tax, income taxes, interest and penalties imposed with respect to such taxes) on
the Gross-Up Payment, the Executive will retain an amount of the Gross-Up Payment equal to
the Excise Tax imposed on the Payment.

4.5.1 Determination. Subject to the provisions of paragraph 4.5.2 all
determinations required to be made under this paragraph 4.5 (including whether and
when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the
assumptions to be utilized) will be made by a nationally recognized certified public
accounting firm designated by the Executive (the “Accounting Firm”). The Accounting
Firm will provide detailed supporting calculations both to the Company and the
Executive within fifteen (15) business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is reasonably
requested by the Company. In the event that the Accounting Firm is serving as
accountant or auditor for the individual, entity or group effecting a Change of
Control (as hereinafter defined), the Executive will be entitled to appoint another
nationally recognized accounting firm to make the determinations required under this
paragraph (which accounting firm will then be referred to as the Accounting Firm
hereunder). All fees and expenses of the Accounting Firm will be paid by the
Company. Any Gross-Up Payment required to be paid under this paragraph 4.5 will be
paid by the Company to the Executive within five (5) days of the receipt of the
Accounting Firm’s determination. Any determination by the Accounting Firm will be
binding on the Company and the Executive. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by
the Accounting Firm, the Gross-Up Payment made by the Company may be less than
actually required (an “Underpayment”) consistent with the calculations required to
be made hereunder. In the event that the Company exhausts its remedies pursuant to
paragraph 4.5.2 below and the Executive thereafter is required to make a payment of
any Excise Tax, the Accounting Firm will determine the amount of the Underpayment
that has occurred and any such Underpayment will be promptly paid by the Company to
or for the benefit of the Executive.

4.5.2 Contest of Claims. The Executive will notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the payment
by the Company of a Gross-Up Payment. Such notification will be given as soon as
practicable but no later than ten (10) business days after the Executive is informed
in writing of such claim and will apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid. The Executive will not pay
such claim prior to the expiration of the thirty (30) day period following the date
on which the Executive notifies the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the Company
notifies the Executive in writing prior to the expiration of such thirty (30) day
period that the Company desires to contest such claim, the Executive will: (a)
provide to the Company any information reasonably requested by the Company relating
to such claim; (b) take such action in connection with contesting such claim as the
Company reasonably requests in writing including, without limitation, accepting
legal representation with respect to

			
	 	 	 
	Employment Agreement — Scott Voth
	 	3

 

 

 

Exhibit 10.39

such claim by an attorney reasonably selected by the Company; (c) cooperate with the
Company in good faith as necessary to effectively contest such claim; and (d) permit
the Company to participate in any proceedings relating to such claim. The Company
will bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with the contest of the claim and agrees to
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax
or income tax (including interest and penalties with respect thereto) imposed as a
result of such protest (including payment of costs and expenses as provided
hereunder). Without limitation on the foregoing provisions, the Company will control
all proceedings related to such contested claim, may at its sole option pursue or
forgo any and all administrative appeals, proceedings, hearings and conferences with
the taxing authority in respect of such claim and may at its sole option either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner. The Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company reasonably determines. If the
Company directs the Executive to pay a claim and sue for a refund, the Company will
be required to advance the amount of such payment to the Executive on an
interest-free basis and agrees to indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties
with respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance, provided that any extension of the
statute of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company’s control of the
contested claim will be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive will be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or any
other taxing authority.

4.5.3 Refunds. If, after the receipt by the Executive of an amount advanced by the
Company pursuant to paragraph 4.5.2, the Executive becomes entitled to receive any
refund with respect to such claim the Executive will (subject to the Company’s
complying with the requirements of paragraph 4.5.2) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to paragraph 4.5.2, a determination is made that
the Executive will not be entitled to any refund with respect to such claim and the
Company does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of (30) days after such determination, then
the advance will be forgiven and will not be required to be repaid and the amount of
such advance will offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.

4.6 Compensation Review. The compensation of the Executive will be reviewed on a regular
basis by the Board of Directors of the Company (or a Compensation Committee thereof) and
shall be reviewed annually if the compensation of other executive officers of the Company is
reviewed at such frequency. The compensation of the Executive prescribed in paragraph 4 of
this Agreement (including benefits) may be increased at the discretion of the Board of
Directors of the Company or the Compensation Committee.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	4

 

 

 

Exhibit 10.39

5. Term. In the absence of an earlier termination as set forth in paragraph 6 below, this
Agreement will extend for a term commencing on the Effective Date, and ending on the final day of
the current fiscal year of the Company (the “Expiration Date”). However, unless the Company
provides
written notice of non-extension to the Executive on or before December 1st during the term of this
Agreement, the term and the Expiration Date will be automatically extended for one (1) additional
year.

6. Termination. The Executive’s employment will continue in effect until the expiration of the
term set forth in paragraph 5 of this Agreement unless earlier terminated pursuant to this
paragraph 6.

6.1 Termination by Company. The Company will have the following rights to terminate
Executive’s employment:

6.1.1 Termination without Cause. (a) The Company may terminate Executive’s
employment without Cause at any time by the service of written notice of termination
to the Executive specifying an effective date of such termination not sooner than
ten (10) days after the date of such notice (the “Termination Date”). In the event
the Executive is terminated without Cause (other than a CC Termination under
paragraph 5.3 of this Agreement), the Executive will receive as termination
compensation: (i) for a period of 18 months his Base Salary (as in effect on the
Termination Date) plus bonus payable under COIP (based upon the incentive target
percentage in effect on the Termination Date and assuming Company performance at
100% of target); and (ii) any vacation pay accrued through the Termination Date. The
payment of such amounts shall be made during the remaining term of the Agreement in
installments consistent with the Company’s normal payroll practices (including
proration of bonus and payment of bonus when normally paid by the Company) but, if
on the Termination Date, the Executive is a “specified employee” as defined in
regulations under Section 409A of the Code, such payments will commence on the first
payroll payment date which is more than six (6) months following the Termination
Date and the first payment shall include any amounts that would have otherwise been
payable during the six month period.

(b) In the event Executive becomes employed, either full or part-time and
whether as an employee, consultant or otherwise, during the term payments are due
pursuant to this paragraph 6.1.1(a), payments due Executive under Section 6.1.1(a)
shall be reduced by the amount of compensation received by Executive as a result of
such other employment. In no event shall payments due under Section 6.3 be reduced
as a result of Executive’s employment. In all events, Executive shall retain any
rights to continue medical insurance coverage under the COBRA continuation
provisions of the group medical insurance plan by paying the applicable premium
therefor.

6.1.2 Termination for Cause. The Company may terminate Executive’s employment for
Cause. For purposes of this Agreement, “Cause” means either of the following:

(a) the engagement by the Executive in illegal conduct, gross misconduct or a
clearly established material violation of the Company’s written policies and
procedures; or

(b) the failure of the Executive to perform substantially the Executive’s
duties with the Company or its subsidiaries or affiliates (other than a failure
resulting from incapacity due to physical or mental illness), after a written demand
for substantial performance is delivered to the Executive by the Chief Executive
Officer which identifies the manner in which the Chief Executive Officer believes
that the Executive has not substantially performed the Executive’s duties.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	5

 

 

 

Exhibit 10.39

For purposes of paragraph 6.1.2(a) of this Agreement, “gross misconduct” means
conduct evidencing a willful or wanton disregard for the legitimate business
interests of the Company, deliberate violations of Company policy or flagrant
disregard for standards of behavior the Company has a right to expect from one of
its corporate officers, to the extent such policy or standards of behavior do not
violate any law or regulation.

Any act, or failure to act, based on authority given pursuant to a resolution
duly adopted by the Board of Directors or based on the advice of counsel for the
Company will be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company. In the event
Executive’s employment is terminated for Cause, the Company will not have any
obligation to provide any further payments or benefits to the Executive after the
effective date of such termination, except for prorated bonus, vacation and any
other amounts required by applicable law or policy.

6.2 Termination by Executive. The Executive may voluntarily terminate his employment with
or without Cause by the service of written notice of such termination to the Company
specifying an effective date of such termination thirty (30) days after the date of such
notice, during which time the Executive may use remaining accrued vacation days, or at the
Company’s option, be paid for such days. In the event his employment is terminated by the
Executive, neither the Company nor the Executive will have any further obligations
hereunder, except for any obligations which expressly survive termination of employment
including, without limitation, any obligation of the Company to provide any further payments
or benefits to the Executive after the effective date of such termination.

6.3 Termination After Change in Control. If during the term of this Agreement there is a
“Change of Control” and within twenty-four (24) months thereafter notwithstanding any
termination pursuant to Section 5, there is a CC Termination (as hereafter defined), then
the Executive will be entitled to a severance payment (in addition to any other rights and
other amounts payable to the Executive or under Company plans in which Executive is a
participant) payable in a lump sum in cash within 10 days following the CC Termination in an
amount equal to the sum of the following: (a) the Executive’s Base Salary for the last
eighteen (18) calendar months ending immediately prior to the CC Termination and bonus paid
pursuant to Section 4.2 (based on the average of the last three years annual bonuses or such
lesser number of years as Executive may have been employed); plus (b) any applicable
Gross-Up Payment. If the foregoing amount is not paid within ten (10) days after the CC
Termination, the unpaid amount will bear interest at the per annum rate of 12%, but in no
event higher than the highest rate allowed by applicable law. Notwithstanding the
foregoing, if at the time of a CC Termination, the Executive is a “specified employee” as
defined in regulations under Section 409A of the Code, such payment will be made on the
first day which is more than six months following the CC Termination. In connection with any
Change of Control, the Company shall obtain the assumption of this Agreement, without
limitation or reduction, by any successor to the Company or any parent corporation of the
Company.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	6

 

 

 

Exhibit 10.39

6.3.1 Change of Control. For the purpose of this Agreement, a “Change of Control”
means the occurrence of any of the following:

(a) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”), other than John H. Marmaduke or his affiliates (the
“Exempt Persons”), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 40% or more of either (i) the then
outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”). For purposes of this paragraph (a)
the following acquisitions by a Person will not constitute a Change of Control: (i)
any acquisition directly from the Company; (ii) any acquisition by the Company;
(iii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or (iv) any
acquisition by any corporation pursuant to a transaction which complies with clauses
(i), (ii) and (iii) of paragraph (c) of this paragraph 6.3.1.

(b) The individuals who, as of the date hereof, constitute the Board of
Directors (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board of Directors. Any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company’s
shareholders, is approved by a vote of at least a majority of the directors then
comprising the Incumbent Board will be considered a member of the Incumbent Board as
of the date hereof, but any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Incumbent Board will
not be deemed a member of the Incumbent Board as of the date hereof.

(c) The consummation of a reorganization, merger, consolidation or sale or
other disposition of all or substantially all of the assets of the Company (a
“Business Combination”), unless following such Business Combination: (i) the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without limitation,
a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding
any corporation resulting from such Business Combination or any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
Business Combination) other than one or more of the Exempt Persons beneficially
owns, directly or indirectly, 40% or more of, respectively, the then outstanding
 shares of common stock of the corporation resulting from such Business Combination
or the combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the Business
Combination and (iii) at least a majority of the members of the board of directors
of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination.

(d) The approval by the shareholders of the Company of a complete liquidation
or dissolution of the Company.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	7

 

 

 

Exhibit 10.39

6.3.2 CC Termination. The term “CC Termination” means any of the following: (a) the
Executive’s employment is terminated by the Company other than under paragraphs
6.1.2, 6.4 or 6.5; or (b) the Executive resigns as a result of change in the
Executive’s duties or title, a reduction in the Executive’s then current Base Salary
that is not generally applicable to all or substantially all of the Company’s
executives or a significant reduction in the Executive’s then current benefits as
provided in Section 4, a relocation of more than 25 miles from the Executive’s then
current place of employment being required by the Board of Directors or a default by
the Company under this Agreement

6.4 Incapacity of Executive. If the Executive suffers from a medically diagnosed physical
or mental condition, which in the reasonable business judgment of the Company’s Board of
Directors, prevents the Executive (in whole or in part) from performing the duties specified
herein for a period of four (4) consecutive months, the Executive’s employment may be
terminated by the Company, in which event, the Company will pay Executive his Base Salary
and Bonus (computed at up to 100% of plan based on actual performance, but in no event more
than 100% of plan regardless of actual performance) in effect on the date of termination
through the lesser of (i) the death of Executive; or (ii) the remaining term of this
Agreement, but in any event through the Expiration Date, reduced by any disability payments
received by Executive from any third party. The payment of such amounts shall be made during
the remaining term of the Agreement in installments consistent with the Company’s normal
payroll practices, but, if on the termination date, the Executive is a “specified employee”
as defined in regulations under Section 409A of the Code, such payments will commence on the
first payroll payment date which is more than six months following the termination date and
the first payment shall include any amounts that would have otherwise been payable during
the six (6) month period. Notwithstanding the foregoing, the amount payable hereunder will
be reduced by any benefits payable under any disability plans provided by the Company under
paragraph 4.4 of this Agreement. Nothing in paragraph will be interpreted or applied so as
to lessen the Executive’s rights under state or federal disability or medical leave laws.

6.5 Death of Executive. If the Executive dies during the term of this Agreement,
Executive’s employment will terminate without compensation to the Executive’s estate except:
(a) the obligation to continue the Base Salary payments under paragraph 4.1 of this
Agreement for twelve (12) months after the date of death of the Executive, and (b) the
benefits described in paragraph 4.4 of this Agreement accrued through the date of death of
the Executive, including a pro-ration of accrued bonus.

6.6 Resignation Following Constructive Discharge. If at any time, except in connection
with a termination otherwise pursuant to this Agreement, Executive is Constructively
Discharged (as that term is defined in this Section 6) then Executive shall have the right,
by written notice to Company within sixty (60) days of such Constructive Discharge, to
terminate his services hereunder, effective as of thirty (30) days after such notice.
Executive shall in such event be entitled to the compensation and benefits as if such
employment were terminated pursuant to Section 6.1.1.

For purposes of this Agreement, Executive shall be “Constructively Discharged” upon the
occurrence of any one of the following events:

(a) Executive is removed from his position with the Company other than as a result of
Executive’s appointment to a position of equal or superior scope and responsibility; or

			
	 	 	 
	Employment Agreement — Scott Voth
	 	8

 

 

 

Exhibit 10.39

(b) Executive’s targeted total compensation is reduced by more than 20% (other than
across-the-board reductions similarly affecting all executive officers of Company).

6.7 Effect of Termination. The termination of Executive’s employment will terminate all
obligations of the Executive to render services on behalf of the Company. The Executive
will maintain the confidentiality of all information acquired by the Executive during the
term of his employment in accordance with paragraph 7 of this Agreement and the covenants
set forth in paragraph 8 of this Agreement. Except as otherwise provided in this paragraph
6, no accrued bonus, severance pay or other form of compensation will be payable by the
Company to the Executive by reason of the termination of his employment. In the event that
payments are required to be made by the Company under this paragraph 6, the Executive will
not be required to seek other employment as a means of mitigating the Company’s obligations
hereunder resulting from termination of the Executive’s employment and the Company’s
obligations hereunder (including payment of severance benefits) will not be terminated,
reduced or modified as a result of the Executive’s earnings from other employment or
self-employment. All keys, entry cards, credit cards, files, records, financial information,
furniture, furnishings, equipment, supplies and other items relating to the Company will
remain the property of the Company. The Executive will have the right to retain and remove
all personal property and effects that are owned by the Executive and located in the offices
of the Company, subject to inspection by the Company. All such personal items will be
removed from such offices no later than ten (10) days after the effective date of
termination, and the Company is hereby authorized to discard any items remaining and to
reassign the Executive’s office space after such date. Prior to the effective date of
termination, the Executive will cooperate with the Company to provide for the orderly
termination of the Executive’s employment.

7. Confidentiality. The Executive recognizes that the nature of the Executive’s services are
such that the Executive is being provided and will have access to information which constitutes
trade secrets, is of a confidential nature, is of great value to the Company or is the foundation
on which the business of the Company is predicated. The Executive agrees not to disclose to any
person other than the Company’s employees or the Company’s legal counsel or other parties
authorized by the Company to receive confidential information (“Confidential Information”) nor use
for any purpose, other than the performance of this Agreement, any Confidential Information.
Confidential Information includes data or material (regardless of form) which is: (a) a trade
secret; (b) provided, disclosed or delivered to Executive by the Company, any officer, director,
employee, agent, attorney, accountant, consultant, or other person or entity employed by the
Company in any capacity, any customer, borrower or business associate of the Company or any public
authority having jurisdiction over the Company of any business activity conducted by the Company;
or (c) produced, developed, obtained or prepared by or on behalf of Executive or the Company
(whether or not such information was developed in the performance of this Agreement) with respect
to the Company or any assets oil and gas prospects, business activities, officers, directors,
employees, borrowers or customers of the foregoing. However, Confidential Information will not
include any information, data or material which at the time of disclosure or use was generally
available to the public other than by a breach of this Agreement, was available to the party to
whom disclosed on a non-confidential basis by disclosure or access provided by the Company or a
third party, or was otherwise developed or obtained independently by the person to whom disclosed
without a breach of this Agreement. On request by the Company, the Company will be entitled to a
copy of any Confidential Information in the possession of the Executive. The provisions of this
paragraph 7 will survive the termination, expiration or cancellation of Executive’s employment for
a period of eighteen (18) months after the date of termination. The Executive will deliver to the
Company all originals and copies of the documents or materials containing Confidential Information.
For purposes of paragraphs 7, 8, and 9 of this Agreement, the Company expressly includes any of the
Company’s subsidiaries or affiliates.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	9

 

 

 

Exhibit 10.39

8. Non-Competition.

(a) Scope. During the effectiveness of this Agreement (the “Term”), Executive shall devote
substantially all of his business, time, attention and energies to the business and interests of
Company, and except as otherwise provided herein, shall not be engaged (whether or not during
normal business hours) in any other business or professional activity (whether or not such activity
is pursued for gain, profit or other pecuniary advantage) without first obtaining the written
consent of the Board of Directors of Company. In return for Company’s disclosure of Confidential
Information and trade secrets in paragraph 7, above, and Company’s provision of specialized
training related to Company’s products, services, business model, and operations, during the Term
of and for a period of eighteen (18) months after the expiration or termination of this Agreement,
for any reason or for no reason at all, Executive agrees that she will not directly or indirectly:

(i) Own, have any interest in or be, serve or act as an individual proprietor, partner,
agent, stock holder, officer, employee, consultant, director, joint venturer, investor, lender, or
in any other capacity whatsoever (other than as the holder of not more than one percent (1%) of the
total outstanding stock of a publicly held company) of or with, or assist in any way, any
corporation, partnership, firm or business enterprise at least 20% of whose sales (in dollar
volume) are books, music or video sales or rentals (whether such book, music or video [including
games] is new or pre-owned) (individually or in the aggregate with all affiliates thereof) and
which does business in any state in which Company does business on the date Executive ceases to be
employed (a “Competing Business”);

(ii) Solicit or induce, or attempt to induce, any employee or independent contractor of
Company or any other person who shall be in the service of Company to terminate his employment with
or otherwise cease his relationship with Company; or

(iii) Solicit, divert or take away, or attempt to solicit, divert or take away, the business
or patronage of any of the clients, customers (whether any such customer has done business once or
more than once), suppliers or accounts, or prospective clients, customers or accounts, or suppliers
to Company, but Executive shall not be prevented from doing business with such persons or entities.

(b) It is hereby expressly agreed that if any portion of this paragraph 8 or any of the
covenants and provisions set forth in this Agreement regarding restrictions on competition,
confidentiality or solicitation is held to be unreasonable, arbitrary, against public policy or
otherwise unenforceable for any reason, then each such covenant or provision shall be considered
divisible as to scope, time and geographical area, with each month of a specified period being
deemed a separate period of time and each county within any geographical area being deemed a
separate geographic area. The parties to this agreement also expressly agree that notwithstanding
their mutual expectation that the covenants and restrictions contained herein will be enforceable
and enforced, a lesser scope, period of time or geographic area shall be enforced to the extent
that the covenants contained herein may be unenforceable as written.

9. Proprietary Matters. The Executive expressly understands and agrees that any and all
improvements, inventions, discoveries, processes or know-how that are generated or conceived by the
Executive during the term of this Agreement, whether generated or conceived during the Executive’s
regular working hours or otherwise, will be the sole and exclusive property of the Company.
Whenever requested by the Company (either during the term of this Agreement or thereafter), the
Executive will assign or execute any and all applications, assignments and or other instruments and
do all things which the Company deems necessary or appropriate in order to permit the Company to:
(a) assign and convey or otherwise make available to the Company the sole and exclusive right,
title, and interest in and to said improvements, inventions, discoveries, processes, know-how,
applications, patents, copyrights, trade

			
	 	 	 
	Employment Agreement — Scott Voth
	 	10

 

 

 

Exhibit 10.39

names or trademarks; or (b) apply for, obtain, maintain, enforce and defend patents, copyrights,
trade names, or trademarks of the United States or of foreign countries for said improvements,
inventions, discoveries, processes or know-how. However, the improvements, inventions, discoveries,
processes or know-how generated or conceived by the Executive and referred to above (except as they
may be included in the patents, copyrights or registered trade names or trademarks of the Company,
or corporations, partnerships or other entities which may be affiliated with the Company) will not
be exclusive property of the Company at any time after having been disclosed or revealed or have
otherwise become available to the public or to a third party on a non-confidential basis other than
by a breach of this Agreement, or after they have been independently developed or discussed without
a breach of this Agreement by a third party who has no obligation to the Company or the Company
Entities.

10. Arbitration. The parties will attempt to promptly resolve any dispute or controversy arising
out of or relating to this Agreement or termination of the Executive by the Company. Any
negotiations pursuant to this paragraph 10 are confidential and will be treated as compromise and
settlement negotiations for all purposes. If the parties are unable to reach a settlement amicably,
the dispute will be submitted to binding arbitration before a single arbitrator in accordance with
the Employment Dispute Resolution Rules of the American Arbitration Association. The arbitrator
will be instructed and empowered to take reasonable steps to expedite the arbitration and the
arbitrator’s judgment will be final and binding upon the parties subject solely to challenge on the
grounds of fraud or gross misconduct. Except for damages arising out of a breach of paragraphs 6,
7, 8 or 9 of this Agreement, the arbitrator is not empowered to award total damages (including
compensatory damages) that exceed 300% of compensatory damages and each party hereby irrevocably
waives any damages in excess of that amount. The arbitration will be held in Potter County, Texas.
Judgment upon any verdict in arbitration may be entered in any court of competent jurisdiction and
the parties hereby consent to the jurisdiction of, and proper venue in, the federal and state
courts located in Potter County, Texas. The Company will pay the costs and expenses of the
arbitration including, without implied limitation, the fees for the arbitrators. Subject to the
provisions of Section 11.7, Executive shall pay for the fees and expenses of his counsel, experts
and any other advisors. Unless otherwise expressly set forth in this Agreement, the procedures
specified in this paragraph 10 will be the sole and exclusive procedures for the resolution of
disputes and controversies between the parties arising out of or relating to this Agreement.
Notwithstanding the foregoing, a party may seek a preliminary injunction or other provisional
judicial relief if in such party’s judgment such action is necessary to avoid irreparable damage or
to preserve the status quo.

11. Miscellaneous. The parties further agree as follows:

11.1 Time. Time is of the essence of each provision of this Agreement.

11.2 Notices. Any notice, payment, demand or communication required or permitted to be
given by any provision of this Agreement will be in writing and will be deemed to have been
given when received by personal delivery, by facsimile, by overnight courier, or by
certified mail, postage and charges prepaid, directed to the following address or to such
other or additional addresses as any party might designate by written notice to the other
party:

	 	 	 	 	 
	 

	 	To the Company:
	 	Hastings Entertainment, Inc.

Attn: President

P. O. Box 35350 (79120)

3601 Plains Blvd.

Amarillo, TX 79102

			
	 	 	 
	Employment Agreement — Scott Voth
	 	11

 

 

 

Exhibit 10.39

	 	 	 	 	 
	 

	 	 	 	With a copy to:
	 

	 	 	 	Sprouse Shrader Smith P.C.

Attn: Jeffrey G. Shrader

P. O. Box 15008 (79105)

701 S. Taylor, Suite 500

Amarillo, TX 79101
	 
	 	 	 	 
	 

	 	To the Executive:
	 	Scott Voth

Hastings Entertainment, Inc.

P. O. Box 35350 (79120)

3601 Plains Blvd.

Amarillo, Texas 79102

11.3 Assignment. Neither this Agreement nor any of the parties’ rights or obligations
hereunder can be transferred or assigned without the prior written consent of the other
parties to this Agreement.

11.4 Construction, Choice of Law & Choice of Forum. This Agreement is intended to be
interpreted, construed and enforced in accordance with the laws of the state of Texas.
Further, any claim or cause of action or judicial proceedings that arise under or relate to
this Agreement must be brought in a court of competent jurisdiction in and for Potter
County, Texas which shall be the exclusive forum.

If any provision of this Agreement or the application thereof to any person or
circumstances is determined, to any extent, to be invalid or unenforceable, the remainder of
this Agreement, or the application of such provision to persons or circumstances other than
those as to which the same is held invalid or unenforceable, will not be affected thereby,
and each term and provision of this Agreement will be valid and enforceable to the fullest
extent permitted by law.

11.5 Entire Agreement. Except as provided in paragraph 2.3 of this Agreement, this
Agreement constitutes the entire agreement between the parties hereto with respect to the
subject matter herein contained, and no modification hereof will be effective unless made by
a supplemental written agreement executed by all of the parties hereto.

11.6 Binding Effect. This Agreement will be binding on the parties and their respective
successors, legal representatives and permitted assigns. In the event of a merger,
consolidation, combination, dissolution or liquidation of the Company, the performance of
this Agreement will be assumed by any entity which succeeds to or is transferred the
business of the Company as a result thereof.

11.7 Attorneys’ Fees. If any party institutes an action, proceeding or arbitration against
any other party relating to the provisions of this Agreement or any default hereunder, each
Party will be responsible for paying their own legal fees and expenses, unless an award of
fees by the arbitrator or court provides otherwise, including any costs of appeal.

11.8 Supercession. This Agreement is the final, complete and exclusive expression of the
agreement between the Company and the Executive and supersedes and replaces in all respects
any prior oral or written employment agreements. On execution of this Agreement by the
Company and the Executive, the relationship between the Company and the Executive after the
effective date of this Agreement will be governed by the terms of this Agreement and not by
any other agreements, oral or otherwise.

			
	 	 	 
	Employment Agreement — Scott Voth
	 	12

 

 

 

Exhibit 10.39

11.9 Non-Contravention. Executive represents and warrants to the Company that the execution
and performance of this Agreement will not violate, constitute a default under, or otherwise
give rights to any third party, pursuant to the terms of any Agreement to which Executive is
a party.

11.10 Indemnity. EXECUTIVE AGREES TO INDEMNIFY AND HOLD HARMLESS THE COMPANY, ITS
DIRECTORS, OFFICERS AND EMPLOYEES AND AGENTS (THE “INDEMNIFIED PARTIES”) AGAINST ANY LOSS,
CLAIM, DAMAGE, LIABILITY OR EXPENSE, AS INCURRED, (“LOSS”) TO WHICH THE INDEMNIFIED PARTIES
MAY BECOME SUBJECT OR INCUR, INSOFAR AS SUCH LOSS ARISES OUT OF OR IS BASED UPON ANY
INACCURACY IN ANY REPRESENTATION OR WARRANTY GIVEN BY EMPLOYEE IN SECTION 11.9 OF THIS
AGREEMENT AND TO REIMBURSE THE INDEMNIFIED PARTIES FOR ANY AND ALL EXPENSES (INCLUDING THE
FEES AND DISBURSEMENTS OF COUNSEL CHOSEN BY THE INDEMNIFIED PARTIES) AS SUCH EXPENSES ARE
REASONABLY INCURRED BY THE INDEMNIFIED PARTIES IN CONNECTION WITH INVESTIGATING, DEFENDING,
SETTLING, COMPROMISING OR PAYING ANY SUCH LOSS.

11.11 Compliance with Section 409A of the Code. This Agreement is intended to comply with
Section 409A of the Code and shall be construed and interpreted in accordance with such
intent. To the extent any benefit paid under this Agreement shall be subject to Section 409A
of the Code, such benefit shall be paid in a manner that will comply with Section 409A,
including any IRS 409A Guidance. Any provision of this Agreement that would cause the
payment of any benefit to fail to satisfy Section 409A of the Code shall have no force and
effect until amended to comply with Section 409A (which amendment may be retroactive to the
extent permitted by the IRS 409A Guidance.

11.12 Termination of Any Prior Employment Agreements. Any prior employment agreement
or contract between Executive and Company is terminated as of the Effective Date.

IN WITNESS WHEREOF, the undersigned have executed this Agreement effective the Effective Date.

	 	 	 	 	 	 	 
	 	 	HASTINGS ENTERTAINMENT, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John H. Marmaduke	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	John H. Marmaduke	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	(the “Company”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Voth	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Scott Voth, Vice President of Store Operations	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	(the “Executive”)	 	 

			
	 	 	 
	Employment Agreement — Scott Voth
	 	13

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