Document:

Exhibit 10.1

 

FORBEARANCE
AGREEMENT,  

EIGHTH
AMENDMENT TO CREDIT AGREEMENT AND FOURTH  

AMENDMENT
TO AMENDED AND RESTATED ADDENDUM TO CREDIT AGREEMENT

 

THIS
FORBEARANCE AGREEMENT, EIGHTH AMENDMENT TO CREDIT AGREEMENT AND FOURTH AMENDMENT TO AMENDED AND RESTATED ADDENDUM TO CREDIT AGREEMENT
(this “Agreement”) is made and entered into on May 15, 2019, by and among (A) Fred’s, Inc., a Tennessee
corporation (“Parent”); (B) the Subsidiaries of Parent identified on the signature pages hereto as Borrowers
(each of such Subsidiaries, together with Parent, jointly and severally, “Borrowers” and, each, a “Borrower”);
(C) the Subsidiaries of Parent identified as Guarantors on the signature pages hereto (each of such Subsidiaries, jointly
and severally, “Guarantors” and, each, a “Guarantor”; Guarantors, together with Borrowers, jointly
and severally, “Loan Parties” and, each, a “Loan Party”); (D) the Lenders party to the Credit
Agreement defined below; (E) the Co-Collateral Agents party to the Credit Agreement defined below; and (F) Regions Bank,
an Alabama bank, in its capacity as administrative agent for Lenders, LC Issuers and other Secured Parties (as defined in the
Credit Agreement) (in such capacity, “Administrative Agent”).

 

Recitals:

 

Loan
Parties, Lenders, Swingline Lender, LC Issuers, Co-Collateral Agents and Administrative Agent are parties to that certain Credit
Agreement dated as of April 9, 2015, as amended by that certain First Amendment to Credit Agreement dated as of October 23, 2015,
that certain Second Amendment to Credit Agreement dated as of December 28, 2016, that certain Third Amendment to Credit Agreement
dated as of January 27, 2017, that certain Fourth Amendment to Credit Agreement, First Amendment to Amended and Restated Addendum
to Credit Agreement, and First Amendment to Security Agreement dated as of July 31, 2017, that certain Fifth Amendment to Credit
Agreement dated as of August 22, 2017, that certain Sixth Amendment to Credit Agreement and Ratification, Reaffirmation and Assumption
dated as of April 5, 2018, and that certain Seventh Amendment to Credit Agreement, Second Amendment to Amended and Restated Addendum
to Credit Agreement, Second Amendment to Security Agreement, and Ratification, Reaffirmation and Assumption dated as of August
23, 2018 (as so amended, and as the same may be further amended, restated, supplemented, or otherwise modified from time to time,
the “Credit Agreement”).

 

Loan
Parties, Lenders, Administrative Agent and certain other parties are parties to that certain Amended and Restated Addendum to
Credit Agreement dated as of January 27, 2017, as amended by that certain Fourth Amendment to Credit Agreement, First Amendment
to Amended and Restated Addendum to Credit Agreement, and First Amendment to Security Agreement dated as of July 31, 2017, that
certain Seventh Amendment to Credit Agreement, Second Amendment to Amended and Restated Addendum to Credit Agreement, Second Amendment
to Security Agreement, and Ratification, Reaffirmation and Assumption dated as of August 23, 2018, and that certain Third Amendment
to Amended and Restated Addendum to Credit Agreement, dated as of October 15, 2018 (as so amended, and as the same may be further
amended, restated, supplemented, or otherwise modified from time to time, the “Addendum”).

 

Loan
Parties and Administrative Agent are parties to that certain Security Agreement dated as of April 9, 2015, as amended by that
certain Fourth Amendment to Credit Agreement, First Amendment to Amended and Restated Addendum to Credit Agreement, and First
Amendment to Security Agreement dated as of July 31, 2017, and that certain Seventh Amendment to Credit Agreement, Second Amendment
to Amended and Restated Addendum to Credit Agreement, Second Amendment to Security Agreement, and Ratification, Reaffirmation
and Assumption dated as of August 23, 2018 (as so amended, and as the same may be further amended, restated, supplemented, or
otherwise modified from time to time, the “Security Agreement”).

 

     

     

    

 

On
April 11, 2019, Loan Parties commenced the Store Closures and the Closed Store Property Liquidation (each as defined below) without
the prior written consent of Lenders, and as a result, certain Events of Default have occurred and are continuing under the Credit
Agreement in addition to the other Stipulated Defaults (as defined below).

 

As
a result of the Stipulated Defaults (as defined below), (a) Lenders are not obligated to make advances or other extensions of
credit under the Loan Documents to or for the benefit of Borrowers, (b) Administrative Agent, at its election or the direction
of Required Lenders, is entitled to (x) terminate any Commitments of Lenders under the Loan Documents to make any further advances
or other extensions of credit to or for the benefit of Borrowers and (y) declare the principal of an any and accrued on the Loans,
and all other Obligations owing to Secured Parties from Loan Parties to be immediately due and payable, (c) Administrative Agent,
at its election or the direction of Required Lenders, is entitled to enforce its security interests in and other Liens upon the
Collateral, and (d) each Secured Party is entitled to take all other actions and exercise all other rights and remedies provided
in the Credit Agreement, the Addendum, the Security Agreement, any other Loan Document, or otherwise authorized by Applicable
Law.

 

Borrowers
have advised Administrative Agent, Co-Collateral Agents and Lenders of the proposed sale of the Real Estate located at 4300 New
Getwell Road, Memphis, Tennessee 38118 (but in no event including any Accounts, Pharmacy Scripts or Inventory of any Loan Party),
all as more specifically described therein (collectively, the “Memphis Property”; such sale, the “Memphis
Sale”) by Parent to a third party Purchaser (“Purchaser”), pursuant to that certain Agreement of Purchase
and Sale dated as of February 25, 2019 between Parent and Purchaser, as amended by that certain First Amendment to Agreement of
Purchase and Sale dated as of March 27, 2019 by and between Parent and Purchaser, and that certain Reinstatement, Assignment,
that certain Second Amendment to Agreement of Purchase and Sale dated April 24, 2019 by and among Parent and Purchaser, and that
certain Third Amendment to Agreement of Purchase and Sale dated as of May 8, 2019 by and between Parent and Purchaser (as in effect
on the date hereof, the “Memphis Purchase Agreement”).

 

Without
the written consent of the Required Lenders, the Memphis Sale constitutes an Asset Disposition of a Distribution Center that is
prohibited by Section 7.6 of the Credit Agreement.

 

Loan
Parties desire that Secured Parties (a) forbear, for a limited period, from exercising certain rights and remedies available to
Secured Parties under the Credit Agreement, the Addendum, the Security Agreement, and the other Loan Documents and under Applicable
Law as a consequence of the Stipulated Defaults; (b) continue during the Forbearance Period to make loans and other extensions
of credit to Borrowers pursuant to the Credit Agreement and this Agreement; and (c) permit the Memphis Sale.

 

Administrative
Agent, each Co-Collateral Agent and each Lender is willing to (a) forbear, in accordance with the terms of this Agreement, from
exercising certain remedies available to them as a result of the Stipulated Defaults; (b) continue making loans and other extensions
of credit in accordance with the Credit Agreement and this Agreement; and (c) permit the Memphis Sale, in each case, subject to
the terms and conditions of this Agreement and the other Loan Documents.

 

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Statement
of Agreement:

 

NOW,
THEREFORE, for TEN DOLLARS ($10.00) in hand paid and in consideration of the above premises, the mutual covenants herein contained,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto,
intending to be legally bound hereby, Loan Parties, Administrative Agent, Co-Collateral Agents and Lenders hereby covenant and
agree as follows:

 

		1.	Definitions;
Rules of Construction.

 

(a)            All
capitalized terms used in this Agreement, unless otherwise defined, shall have the meaning ascribed to such terms in the Credit
Agreement, the Addendum or the Security Agreement, as applicable. In addition, as used herein, the following terms shall have
the meanings ascribed to them:

 

“Agreement”
shall mean this Forbearance Agreement, Eighth Amendment to Credit Agreement and Fourth Amendment to Amended and Restated Addendum
to Credit Agreement.

 

“Cash
Flow Forecast” has the meaning given such term in Section 4 of this Agreement.

 

“Claims”
has the meaning given such term in Section 19 of this Agreement.

 

“Closed
Store Property Liquidation” shall mean the liquidation of the Inventory located at the Closed Stores and the wind-down
of the Closed Stores.

 

“Closed
Stores” shall mean the 159 retail stores listed on Exhibit A attached to this Agreement and the 104 retail stores
listed on Exhibit B attached to this Agreement.

 

“Continuing
Stores” shall mean the 282 retail stores listed on Exhibit C attached to this Agreement, which stores do not include
the Closed Stores.

 

“Consultant”
has the meaning given such term in Section 4 of this Agreement.

 

“Forbearance
Conditions” shall mean the conditions to forbearance set forth in Section 4 of this Agreement.

 

“Forbearance
Effective Date” shall mean the later to occur of (a) the date of this Agreement or (b) the date on which each of the
conditions precedent set forth in Section 6 of this Agreement is satisfied.

 

“Forbearance
Period” shall mean the period commencing on the Forbearance Effective Date and ending on the Forbearance Termination
Date, unless extended in writing by Administrative Agent, each Co-Collateral Agent and each Lender, each in its discretion.

 

“Forbearance
Termination Date” shall mean the earliest (time being of the essence) to occur of (a) 5:01 o’clock p.m. on the Stated
Forbearance Termination Date, (b) the date on which any of the Forbearance Conditions shall fail to be satisfied, (c) the date
that any Loan Party, any Subsidiary or other Affiliate of any Loan Party, or any Person claiming by or through any Loan Party
or any Subsidiary or other Affiliate of any Loan Party joins in, assists, cooperates or participates as an adverse party or adverse
witness in any suit or other proceeding against Administrative Agent, any Co-Collateral Agent, any Lender or any other Secured
Party, relating to the Obligations or any of the transactions contemplated by this Agreement, the Credit Agreement, the other
Loan Documents, or any other documents, agreements or instruments executed in connection therewith or with this Agreement; and
(d) the date on which notice of termination of this Agreement is delivered by Administrative Agent or Required Lenders, if any
representation or warranty set forth in Section 15 of this Agreement is untrue, incorrect or misleading in any material
respect when given.

 

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“Inventory
Blowout Sale” shall mean the general storewide sales to be conducted at the Continuing Stores with continuing replenishment
of Inventory at certain of the Continuing Stores at levels contemplated by Section 4(g) of this Agreement.

 

“Inventory
Receipts” shall mean, for any period, the sum of the value, at cost, of the amount of “DC Inventory,” “Front
Store Inventory” and “Pharmacy Inventory” received by Borrowers during such period, which amounts are forecasted
on lines 11, 20 and 26, respectively, of the Cash Flow Forecast.

 

“Liquidation
Transactions” shall mean the Store Closure and the Closed Store Property Liquidation.

 

“Memphis
Property” has the meaning given such term in the Recitals to this Agreement.

 

“Memphis
Purchase Agreement” has the meaning given such term in the Recitals to this Agreement.

 

“Memphis
Purchase Documents” has the meaning given such term in Section 11 of this Agreement.

 

“Memphis
Sale” has the meaning given such term in the Recitals to this Agreement.

 

“Net
Memphis Proceeds” has the meaning given such term in Section 11 of this Agreement.

 

“Payroll
Taxes” shall mean all taxes and deposits required to be paid or withheld from the wages or salaries of Loan Parties’
employees.

 

“Purchaser”
has the meaning given such term in the Recitals to this Agreement.

 

“Refinancing
Transaction” has the meaning given such term in Section 4(m) of this Agreement.

 

“Releasees”
has the meaning given such term in Section 19 of this Agreement.

 

“Releasor”
has the meaning given such term in Section 19 of this Agreement.

 

“Sales
Taxes” shall mean all sales taxes and liabilities, including any and all interest, fees and penalties relating thereto, that
are required to be paid by Loan Parties and their Subsidiaries.

 

“Secured
Party Consultant”  has the meaning given such term in Section 13 of this Agreement.

 

“Stated
Forbearance Termination Date” shall mean July 22, 2019.

 

“Stipulated
Defaults” shall mean (a) the Events of Default occurring under Sections 8.1(d) and 8.1(o)(iii) of the Credit
Agreement as a result of Borrowers’ commencement of the Liquidation Transactions in violation of Section 7.6 of the Credit
Agreement, (b) the Event of Default occurring under Section 8.1(d) of the Credit Agreement as a result of Borrowers’ failure
to deliver a Borrowing Base Certificate for the Fiscal Month ending February 2, 2019 on or before February 22, 2019 in accordance
with Section 7 of the Addendum, as in effect prior to the effectiveness of this Agreement, (c) the Event of Default occurring
under Section 8.1(c) of the Credit Agreement as a result of Borrowers’ error in the Borrowing Base Certificate for
the Fiscal Month ending February 2, 2019, and (d) the Event of Default occurring under Section 8.1(d) of the Credit Agreement
as a result of Borrowers’ failure to deliver an unqualified annual audit report (without a “going concern” or like qualification,
exception or explanation and without any qualification or exception as to the scope of such audit) for Parent and its Subsidiaries
for the Fiscal Year ending February 2, 2019 within 120 days after the end of such Fiscal Year in violation of Section 5.1(a)
of the Credit Agreement.

 

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“Store
Closure” shall mean Borrowers’ closure of the Closed Stores.

 

“Store
Closure Plan” has the meaning given such term in Section 4 hereof.

 

(b)           The
terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders.
All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations;
to any of the Loan Documents shall include any and all amendments, modifications and supplements thereto and any and all restatements,
extensions or renewals thereof; to any Person shall mean and include the successors and permitted assigns of such Person; to “including” and “include” shall be understood to mean “including, without limitation” (and, for purposes of this Agreement,
the parties agree that the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed
by or referable to an enumeration of specific matters to matters similar to the matters specifically mentioned); to the discretion
of any Secured Party shall mean the sole and absolute discretion of such Secured Party; or to the time of day shall mean the time
of day on the day in question in Atlanta, Georgia, unless otherwise expressly provided in this Agreement. Until the commencement
of the Store Closure and Closed Store Property Liquidation, in each case with respect to the 104 retail stores listed on Exhibit
B attached to this Agreement, references to the “Store Closure,” “Store Closure Plan,” “Closed Store
Property Liquidation” and “Liquidation Transactions” shall not be deemed to include the closure of such 104 retail
stores and the sale or other disposition outside the Ordinary Course of Business of the property located at such 104 retail stores.

 

2.           Acknowledgments
and Stipulations by Loan Parties. Each Loan Party acknowledges, stipulates and agrees that (a) as of the close of business
on May 14, 2019, the aggregate principal balance of Revolving Loans totaled $64,789,991.94, exclusive of interest, costs and attorneys’
fees chargeable to Borrowers under the Loan Documents, and the LC Obligations totaled $17,498,024.60; (b) all of the Obligations
are absolutely due and owing by Loan Parties to Secured Parties without any defense, deduction, offset or counterclaim (and, to
the extent such Loan Party had any defense, deduction, offset or counterclaim on the date hereof, the same is hereby waived);
(c) the Stipulated Defaults have occurred and now exist under the Loan Documents and are continuing (other than with respect to
the 104 retail stores listed on Exhibit B, for which the Store Closure has not yet commenced), each of which Events of
Default is material; (d) the Loan Documents executed by such Loan Party are legal, valid and binding obligations of such Loan
Party enforceable against such Loan Party in accordance with their terms; (e) the security interests and other Liens granted by
such Loan Party to Administrative Agent, for the benefit of Secured Parties, in the Collateral are duly perfected, first priority
security interests and Liens, having a first priority except as otherwise expressly provided in the Loan Documents; (f) each of
the Recitals contained at the beginning of this Agreement is true and correct; and (g) prior to executing this Agreement, such
Loan Party consulted with and had the benefit of advice of legal counsel of its own selection and has relied upon the advice of
such counsel and in no part upon any representation of any Secured Party concerning the legal effects of this Agreement or any
provision hereof.

 

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3.            Agreement
to Forbear.

 

(a)           If
and for so long as each of the Forbearance Conditions is timely satisfied, and subject to the satisfaction of the conditions precedent
set forth in Section 6 of this Agreement and the other terms and conditions contained herein, Administrative Agent, Co-Collateral
Agents and Lenders each agrees that, during (and only during) the Forbearance Period, it will not, solely by reason of the existence
of the Stipulated Defaults, (x) exercise any remedy available to such Secured Party under any of the Loan Documents or Applicable
Law to accelerate the maturity of any of the Obligations, enforce collection from any Loan Party of any of the Obligations, repossess
any of the Collateral, or, in the case of Administrative Agent, foreclose its security interest in or other Liens upon any Collateral,
or (y) charge the Default Rate with respect to the principal balance of the Obligations; provided, however, that
the foregoing forbearance shall not (i) restrict, impair or otherwise affect (A) the rights of Administrative Agent,
at its election or at the direction of Required Lenders, to make demand for payment of any of the Obligations that exceed any
limitations imposed under the Credit Agreement or the Addendum or that are payable on demand under the terms of any of the Loan
Documents, give notice of the existence of any Event of Default to the holder of any Subordinated Debt in order to bar such holder
from receiving, or any Loan Party from paying, any amount in respect of such Subordinated Debt, or charge or accrue interest at
the Default Rate, (B) each Secured Party’s rights or remedies (including rights of setoff) under or with respect to any deposit
account, blocked account, control account, bank agency, lockbox, letter of credit or other agreement to which such Secured Party
is a party relating to any deposit or other account of any Loan Party or any letter of credit issued for any Loan Party’s account
(including, in each case, in respect of an Account Control Event), (C) Administrative Agent’s, each Co-Collateral Agent’s
and each Lender’s respective rights to administer the lending or banking relationship with Loan Parties under and in accordance
with the Loan Documents and this Agreement, including the imposition, change, release or re-imposition of Reserves in such amounts
and with respect to such matters as Administrative Agent or any Co-Collateral Agent may elect from time to time or the attachment
of any conditions to the provision of Bank Products; (D) the right of Administrative Agent or any LC Issuer to require the LC
Obligations to be Cash Collateralized in accordance with the Credit Agreement, or the right of any LC Issuer, with respect to
any Letter of Credit containing an “evergreen” or auto-renewal feature, to deliver to the beneficiary thereof written
notice that such LC Issuer intends not to renew such Letter of Credit upon its expiration; or (E) the rights of Administrative
Agent, at its election or the direction of Required Lenders, to file, record, publish or deliver a notice of default or document
of similar effect relating to any Event of Default that is not a Stipulated Default, or to take any Lien enforcement action as
a consequence of any such Event of Default, or (ii) affect any restriction or prohibition in any of the Loan Documents on
the right of any Loan Party to take or omit to take, or otherwise acquiesce in, certain actions, including any limitations, restriction,
or prohibitions with respect to Restricted Payments, advancing monies to any Affiliate, repaying certain Subordinated Debt, consummating
Acquisitions, making certain Investments, or making certain Asset Dispositions. Neither this Agreement nor Administrative Agent’s,
Co-Collateral Agents’ and Lenders’ forbearance hereunder shall be deemed to be a waiver of or a consent to any Default or Event
of Default.

 

(b)           Loan
Parties acknowledge and agree that the Stipulated Defaults shall be existing and continuing until waived in writing by Administrative
Agent and Lenders.

 

(c)           Except
as otherwise expressly provided herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect
in accordance with their respective terms, and neither this Agreement nor the making of any loans or other extensions of credit
simultaneously herewith or subsequent hereto shall be construed to: (i) impair the validity, perfection or priority of any Lien
or security interest securing the Obligations; (ii) waive or impair any rights, powers or remedies of Administrative Agent, any
Co-Collateral Agent or any Lender under the Credit Agreement, the other Loan Documents or Applicable Law upon the Forbearance
Termination Date, with respect to the Stipulated Defaults or otherwise; (iii) constitute an agreement by Administrative Agent,
any Co-Collateral Agent or any Lender or require Administrative Agent, any Co-Collateral Agents or any Lender to extend the Forbearance
Period or further forbear from exercising their rights and remedies under the Credit Agreement, the other Loan Documents or Applicable
Law, extend the Revolving Commitment Termination Date or the time for payment of any of the Obligations; (iv) require Administrative
Agent, any Co-Collateral Agent or any Lender to make any loans or to make any other extensions of credit to the Borrowers after
the occurrence of the Forbearance Termination Date, other than in Administrative Agent’s and each Lenders’ discretion; or (v)
constitute a waiver of any right of Administrative Agent, Co-Collateral Agents and Lenders to insist on strict compliance by Loan
Parties with each and every term, condition and covenant of this Agreement, the Credit Agreement and the other Loan Documents,
except as expressly otherwise provided herein.

 

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(d)           Each
Loan Party acknowledges and agrees that the agreement of Administrative Agent, Co-Collateral Agents and Lenders to forbear from
enforcing their rights and exercising their remedies with respect to the Stipulated Defaults pursuant to and as reflected in this
Agreement, does not and shall not create (nor shall any Loan Party rely upon the existence of or claim or assert that there exists)
any obligation of Administrative Agent, any Co-Collateral Agent or any Lender to consider or agree to any waiver or any other
forbearance and, in the event that Administrative Agent, any Co-Collateral Agent or any Lender subsequently agrees to consider
any waiver or any other forbearance, neither the existence of any prior forbearance or waiver, nor this Agreement, nor any other
conduct of Administrative Agent, any Co-Collateral Agents or any Lender shall be of any force or effect on the consideration or
decision with respect to any such requested waiver or forbearance, and none of Administrative Agent, any Co-Collateral Agent or
any Lender shall have any obligation whatsoever to consider or agree to so forbear or to so waive any Default or Event of Default.
In addition, none of (i) the execution and delivery of this Agreement, (ii) the actions of Administrative Agent, Co-Collateral
Agents and Lenders in obtaining or analyzing any information from Loan Parties, whether or not related to consideration of any
waiver, modification, forbearance or alteration of the Credit Agreement, any Default or Event of Default thereunder, or otherwise,
including any discussions or negotiations (heretofore or, if any, hereafter) between Administrative Agent, any Co-Collateral Agent,
any Lender or any other Secured Party and any Loan Party regarding any potential waiver, modification, forbearance or amendment
related to the Credit Agreement, (iii) any failure of Administrative Agent, any Co-Collateral Agent or any Lender to enforce any
of its rights or exercise any of its remedies under, pursuant or with respect to the Credit Agreement, the other Loan Documents
or Applicable Law, nor (iv) any action, inaction, waiver, forbearance, amendment or other modification of or with respect to the
Credit Agreement or the other Loan Documents, shall, except to the extent otherwise expressly provided herein or unless evidenced
by a subsequent written agreement by Administrative Agent, Co-Collateral Agents, Lenders and Loan Parties (and then only to the
extent provided by the express provisions thereof):

 

(A)          constitute
a waiver by Administrative Agent, any Co-Collateral Agent or any Lender of, or an agreement by Administrative Agent, any Co-Collateral
Agent or any Lender to forebear from enforcing any of their rights or exercising any of their remedies with respect to, any Default
or Event of Default (other than as provided hereunder with respect to the Stipulated Defaults);

 

(B)          constitute
a waiver by, or estoppel of, Administrative Agent, any Co-Collateral Agent or any Lender as to the satisfaction or lack of satisfaction
of any covenant, term or condition set forth in the Credit Agreement or any other Loan Document; or

 

(C)          constitute
an amendment to or modification of, or an agreement on the part of Administrative Agent, any Co-Collateral Agent or any Lender
to enter into any amendment to or modification of, or an agreement to negotiate or continue to negotiate with respect to, the
Credit Agreement or any other Loan Document or any amendment of any of the same.

 

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4.            Forbearance
Conditions. The following conditions shall constitute Forbearance Conditions, the timely and ongoing satisfaction of each
and every one of which during the Forbearance Period shall be a condition to the agreement of Administrative Agent, Co-Collateral
Agents and Lenders to forbear as set forth in Section 3 of this Agreement:

 

(a)           Each
Loan Party duly and punctually observes, performs and discharges each and every obligation and covenant on its part to be performed
under this Agreement and diligently and in good faith seeks to satisfy each of the conditions precedent in Section 6 of
this Agreement;

 

(b)           No
Event of Default occurs or exists other than the Stipulated Defaults;

 

(c)           Prior
to the date hereof, Loan Parties engage (and thereafter shall retain the services of) a third-party turnaround consultant (the “Consultant”) who has expertise advising retail and pharmacy businesses (including in conducting store closure
and liquidation sales similar to the Store Closure and Closed Store Property Liquidation) and who is otherwise satisfactory to
Co-Collateral Agents (each Co-Collateral Agent hereby confirming that each of Berkeley Research Group and the engagement letter
dated April 17, 2019 by and between Parent and Berkeley Research Group is satisfactory to such Co-Collateral Agent as of the date
of this Agreement), pursuant to an engagement letter (i) containing a scope of services that is satisfactory to Co-Collateral
Agents but in any event to include (A) the preparation of financial projections and the 13-week cash flow and Excess Availability
forecast (including as required by Section 5.1(g) of the Credit Agreement (as in effect after giving effect to this Agreement)),
which shall give effect to the Liquidation Transactions (the “Cash Flow Forecast”), (B) analysis and advice regarding
the estimated expenses to be incurred by Loan Parties in connection with the Liquidation Transactions, including costs associated
with lease termination payments to landlords, severance payments to employees, legal costs and other associated expenses and amounts
related to the Store Closure, and the formulation of a strategy and timeline to implement the Store Closure in a manner designed
to maximize the net recovery to be achieved in connection with the Closed Store Property Liquidation (the “Store Closure
Plan”), (C) analysis and advice regarding the design and execution of the Liquidation Transactions, and (D) analysis
and advice regarding negotiations with suppliers, landlords, investors and customers in connection with the Store Closure Plan,
and (ii) authorizing and directing the Consultant to communicate and share information regarding all of the foregoing directly
with Co-Collateral Agents and their advisors (subject to reasonable confidentiality protections in favor of Loan Parties); provided,
that any such communications and information sharing shall be coordinated through Loan Parties and Loan Parties shall be entitled
to participate;

 

(d)           Loan
Parties shall update the Initial Cash Flow Forecast (as defined below) in accordance with Section 5.1(g) of the Credit
Agreement (as amended by this Agreement), and, to the extent any such update is in form and substance satisfactory to Co-Collateral
Agents, such update shall thereafter be deemed to be the “Cash Flow Forecast” hereunder;

 

(e)           On
or before May 16, 2019, and on or before the Thursday of each week thereafter, Loan Parties deliver to Administrative Agent a
narrative report (which report may be delivered verbally, including as part of the conference calls to be conducted pursuant to
Section 4(l) of this Agreement) describing in reasonable detail the progress made to-date in implementing the Liquidation
Transactions;

 

(f)           Until
the Store Closure Plan and Closed Store Property Liquidation are complete, each Borrowing Base Certificate delivered by Loan Parties
pursuant to Section 7 of the Addendum is prepared or approved by Consultant and separately itemizes eligible and ineligible
Collateral located at or relating to the Closed Stores and eligible and ineligible Collateral located at or relating to Continuing
Stores;

 

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(g)           For
each week during the Forbearance Period, Borrowers maintain an average of at least $220,000 of Inventory at each Continuing Store
(other than the Continuing Stores identified as Xpress locations on Exhibit C), with such Inventory valued at Borrowers’
cost and such average being measured over such week;

 

(h)           (i)
Borrowers’ total collections for any period of two weeks do not vary unfavorably by more than fifteen percent (15%) from the amount
of “Total Collections” shown on line 6 of the Cash Flow Forecast for such period, (ii) the sum of Borrowers’ total operating
disbursements and total non-operating disbursements for any period of two weeks does not vary unfavorably by more than fifteen
percent (15%) from the sum of “Total Operating Disbursements” and “Total Non-Operating Disbursements” shown
on lines 15 and 23, respectively, of the Cash Flow Forecast for such period, and (iii) Inventory Receipts for any week shall not
be less than eighty-five percent (85%) of the forecasted Inventory Receipts shown on the Cash Flow Forecast for such week;

 

(i)            No
representation or warranty made by any Loan Party in this Agreement proves to have been false or misleading in any material respect;

 

(j)            Each
Loan Party timely (i) deducts from the wages of its employees and makes timely and proper deposits for all Payroll Taxes as the
same became due and payable, and if, as and when requested to do so by Administrative Agent or any Co-Collateral Agent, provides
Administrative Agent or such Co-Collateral Agent with proof of all deposits for Payroll Taxes, and (ii) pays (and sets aside appropriate
reserves) all Sales Taxes as the same became due and payable, and if, as and when requested to do so by Administrative Agent or
any Co-Collateral Agent, provides Administrative Agent or such Co-Collateral Agent with proof of all payment of Sales Taxes;

 

(k)           Each
Loan Party complies with all Applicable Law in all material respects in connection with the Store Closure, the Closed Store Property
Liquidation, and the Inventory Blowout Sale;

 

(l)            On
dates certain to be agreed upon by Loan Parties, Administrative Agent and Co-Collateral Agents, the chief financial officer, the
Consultant and such other authorized representatives of Loan Parties as may be requested by Administrative Agent and or any Co-Collateral
Agent conduct (no less frequently than once every two weeks) conference calls with Administrative Agent, Co-Collateral Agents
and Lenders to discuss the Cash Flow Forecast, any updates thereto, weekly cash flow reports delivered pursuant to Section
5.1(g) of the Credit Agreement, the financial operations and performance of Loan Parties’ business, and such other matters
relating to Loan Parties as Administrative Agent or any Co-Collateral Agent shall reasonably request;

 

    - 9 - 

     

    

 

(m)          During
the Forbearance Period, (i) Loan Parties and their advisors, on an uninterrupted basis, pursue commitments from third party financial
institutions or other lenders for one or more credit facilities or other financing transactions, the net proceeds of which would
be sufficient to result in the Payment in Full of the Obligations on or before July 22, 2019 (collectively, a “Refinancing
Transaction”), (ii) as part of the conference calls to be conducted pursuant to Section 4(l) of this Agreement,
Loan Parties and their advisors provide updates regarding their efforts to obtain a Refinancing Transaction, including prospective
lenders contacted, diligence information provided, proposals or commitments received and the status of negotiation and documentation
of such replacement financing, (iii) Loan Parties shall promptly provide copies of any such proposals, commitments or other documents
to Administrative Agent and each Co-Collateral Agent, and (iv) on or before June 21, 2019, Loan Parties receive (and deliver copies
thereof to Administrative Agent) one or more signed, binding and bona fide commitment letters for a Refinancing Transaction,
which together are reasonably satisfactory to Administrative Agent and each Co-Collateral Agent (Administrative Agent and Co-Collateral
Agents hereby confirming that, (x) to the extent any prospective lender for a Refinancing Transaction requests to retain Hilco
Valuation Services or its affiliates to conduct any appraisal of the Collateral in connection with its proposed credit facility,
Administrative Agent agrees (if requested by such appraiser) to waive the conflict of interest arising from the performance of
such appraisal for such prospective lender while Hilco Valuation Service continues to perform certain services for Administrative
Agent, pursuant to a waiver letter in form and substance reasonably satisfactory to Administrative Agent (provided that
such waiver letter permits Hilco Valuation Services to continue its engagement with Administrative Agent), and (y) to the extent
any prospective lender for a Refinancing Transaction requests to receive in connection with its proposed credit facility the field
examination report dated April 8, 2019 prepared by Richter Consulting for Administrative Agent or its counsel, Administrative
Agent agrees (if requested by Richter Consulting) to execute a non-reliance letter, in form and substance reasonably satisfactory
to Administrative Agent, to consent to Richter Consulting’s release of such field examination report to such prospective lender
(provided that, Loan Parties acknowledge and agree that the disclosure of such report shall not constitute a waiver of
any privilege or confidentiality right that Administrative Agent may have with respect to any information other than such field
examination report));

 

(n)           Each
Loan Party remains able to pay and does pay, as the same becomes due and payable, all Indebtedness incurred by such Loan Party
(subject to the any applicable subordination provisions applicable thereto);

 

(o)           No
Person (i) institutes any involuntary Insolvency Proceeding against any Loan Party, (ii) files any injunction against any Loan
Party or (iii) otherwise asserts any lien rights or other rights with respect to any Inventory or other Collateral or seizes or
attempts to seize any Collateral;

 

(p)           No
Loan Party takes any action (including consent) to (x) add any retail store (including any Continuing Store) to the Store Closure
other than the Closed Stores, (y) retains any consultant or other Person (or expands the scope of any previously retained consultant
or other Person (including SB360 Capital Partners, LLC)) to effectuate the closure of any retail store (including any Continuing
Store) other than the Closed Stores, or (z) any other sale or liquidation of Collateral or store closure outside of Ordinary Course
of Business, in each case, without the prior written consent of each Co-Collateral Agent in its discretion;

 

(q)           Upon
the request of Administrative Agent or any Co-Collateral Agent at any time, Loan Parties conduct a physical inventory count, with
results reviewed by and approved by a Secured Party Consultant and acceptable to Administrative Agent and each Co-Collateral Agent,
and shall provide to Administrative Agent and Co-Collateral Agents with a report based on each such inventory count promptly upon
completion thereof, together with such supporting information as Administrative Agent or any Co-Collateral Agent may reasonably
request (it being understood that (x) the stock ledger of Loan Parties shall be adjusted as approved by the applicable Secured
Party Consultant and acceptable to Administrative Agent and each Co-Collateral Agents and in a manner consistent with the results
of any such physical inventory and (y) Administrative Agent and each Co-Collateral Agent may participate in and observe each inventory
or physical count at the expense of Borrowers); and

 

(r)           If
and to the extent any Loan Party pays a retainer to any legal counsel or other professional in connection with the Liquidation
Transactions, bankruptcy or other insolvency planning or any other restructuring transaction, Loan Parties promptly deliver written
notice thereof to Administrative Agent of the identity of the legal counsel or other professional receiving such retainer, the
amount of such retainer, and the purpose of such engagement.

 

    - 10 - 

     

    

 

5.            Termination
of Forbearance. Upon the occurrence of the Forbearance Termination Date, Administrative Agent’s, each Co-Collateral Agent’s
and each Lender’s agreement to forbear as set forth in Section 3 of this Agreement shall, at Administrative Agent’s, any
Co-Collateral Agent’s or any Lender’s election, but without further notice to or demand upon any Loan Party, terminate, and Administrative
Agent, each Co-Collateral Agent and each Lender shall thereupon have and may exercise from time to time all of the remedies available
to such Secured Party under the Loan Documents and Applicable Law as a consequence of an Event of Default, without further notice
to or demand upon any Loan Party or any other Person. The employment by Secured Parties of a Person on matters unrelated to transactions
involving the Loan Documents will not disqualify that Person from serving as a receiver for any Loan Party or any of the Collateral.

 

6.            Conditions
Precedent. The following shall constitute conditions precedent, the satisfaction of each of which shall be required as
a condition to Administrative Agent’s, each Co-Collateral Agent’s and each Lender’s obligations under this Agreement, including
their agreement to forbear pursuant to Section 3 of this Agreement, the effectiveness of the amendments set forth in Section
9 and 10 of this Agreement, and the effectiveness of the consent set forth in Section 11 of this Agreement:

 

(a)           Administrative
Agent shall have signed this Agreement and received counterparts of this Agreement duly executed by Loan Parties, Co-Collateral
Agents and Lenders on or before May 15, 2019;

 

(b)           Administrative
Agent shall have received a certificate of a duly authorized officer of each Loan Party, certifying (i) that an attached copy
of resolutions authorizing execution and delivery of this Agreement and the Loan Documents contemplated hereby is true and complete,
and that such resolutions are in full force and effect, were duly adopted by the appropriate governing body, have not been amended,
modified, or revoked, and constitute all resolutions adopted with respect to this Agreement and the transactions contemplated
hereby; and (ii) to the title, name, and signature of each Person authorized to sign this Agreement and any other Loan Document
on behalf of such Loan Party;

 

(c)           Administrative
Agent and each Co-Collateral Agent shall have received the initial 13-week cash flow forecast dated as of May 11, 2019 (the “Initial
Cash Flow Forecast”), prepared by the Consultant, which shall be in form and substance satisfactory to Administrative
Agent and each Co-Collateral Agent;

 

(d)           Borrowers
shall have paid all fees then due and payable to Administrative Agent, each Co-Collateral Agent and each Lender pursuant to the
Credit Agreement, this Agreement and any fee letter executed and delivered in connection herewith and, to the extent invoiced
by Administrative Agent, any Co-Collateral Agent or any Lender not less than two (2) Business Days prior to the date of this Agreement,
shall have reimbursed Administrative Agent, each Co-Collateral Agent and each Lender for all costs and expenses incurred by Administrative
Agent, such Co-Collateral Agent or such Lender, as applicable, in connection with this Agreement, including the preparation, negotiation
and execution of this Agreement and all accrued costs and expenses of consultants and financial advisors employed or retained
by Administrative Agent, any Co-Collateral Agent or any Lender in connection with the restructuring of the Obligations and the
negotiation of this Agreement;

 

(e)           All
of the representations and warranties contained in this Agreement and that are made by each Loan Party are true, complete and
accurate on the date hereof;

 

    - 11 - 

     

    

 

(f)            After
giving effect to the terms of this Agreement, no Default or Event of Default shall have occurred and be continuing on the date
hereof other than a Stipulated Default;

 

(g)           Administrative
Agent and each Co-Collateral Agent shall have received true, correct and complete copies of (i) all engagement letters, fee arrangements
and other agreements relating to the Liquidation Transactions between any Loan Party and each of SB360 Capital Partners, LLC,
Malfitano Advisors, LLC, PJ Solomon, L.P., and PJ Solomon Securities, LLC (Loan Parties hereby representing and warranting to
Administrative Agent and Lenders that copies of all such agreements were delivered to Administrative Agent and each Co-Collateral
Agent on April 11, 2019), (ii) all engagement letters, fee arrangements and other agreements relating to the Liquidation Transactions
between any Loan Party and Berkley Research Group (Loan Parties hereby representing and warranting to Administrative Agent and
Lenders that a copy of such agreement were delivered to Administrative Agent and each Co-Collateral Agent on April 19, 2019);
and (iii) any letters of intent, commitment letters or other documentation related to any pending or proposed Asset Disposition
over $500,000 of any Loan Party in any Loan Party’s possession as of the date hereof (Loan Parties hereby representing and warranting
to Administrative Agent and Lenders that copies of all such agreements were delivered to Administrative Agent and each Co-Collateral
Agent on or before May 15, 2019); and

 

(h)           Administrative
Agent and each Co-Collateral Agent shall have received all other documents, instruments, certificates and agreements (if any)
as Administrative Agent or any Co-Collateral Agent shall have requested in connection with this Agreement and the transactions
contemplated hereby, each in form and substance satisfactory to Administrative Agent and each Co-Collateral Agent.

 

7.            Extensions
of Credit.

 

(a)           Revolving
Loans. Lenders agree that, solely during the Forbearance Period and notwithstanding the occurrence and continuance of the
Stipulated Defaults, Administrative Agent may require Lenders to honor a request for, and, if the Administrative Agent so requires
that that Lenders honor such request, Lenders shall make, Revolving Loans available to Borrowers under the Credit Agreement (and,
in the event that Administrative Agent requires Lenders to honor any such request, such Loan will be deemed properly requested
for the purposes of Section 3.2 of the Credit Agreement). These agreements of Lenders under this Section 7(a) shall
remain in effect with respect to any Revolving Loans made until the earlier of (x) the Forbearance Termination Date and (y) the
date this authorization is revoked by Required Lenders pursuant to a writing delivered to Administrative Agent and each Lender.
The provisions of this Section 7(a) are solely for the benefit of Administrative Agent, Co-Collateral Agents, and Lenders,
and no Loan Party shall have any rights or benefits under this Section 7(a) (notwithstanding that these provisions are
included in this Agreement), and no Loan Party shall have any rights as a third-party beneficiary of this Section 7(a),
all of which are expressly waived by each Loan Party.

 

(b)           Letters
of Credit. Notwithstanding anything to the contrary set forth in Section 7(a) of this Agreement, or any provision of
the Credit Agreement, no LC Issuer shall have any obligation to issue, amend or renew any Letter of Credit on or after the date
hereof, and the issuance, amendment or renewal of any Letter of Credit shall hereafter be at the respective discretion of the
applicable LC Issuer and Administrative Agent. Lenders agrees that, to the extent that any LC Issuer, in its discretion and with
the consent of Administrative Agent, elects to issue, amend or renew any Letter of Credit, such Letter of Credit shall constitute
a “Letter of Credit” under (and as defined in) the Credit Agreement and shall be subject to the terms and conditions
of the Credit Agreement and the other Loan Documents applicable to Letters of Credit. The agreements of Lenders under this Section
7(b) shall remain in effect with respect to any Letters of Credit issued until the earlier of (x) the Forbearance Termination
Date and (y) the date this authorization is revoked by Required Lenders pursuant to a writing delivered to Administrative Agent
and each Issuing Bank. The provisions of this Section 7(b) are solely for the benefit of Administrative Agent, Co-Collateral
Agents, Lenders and Issuing Banks, and no Loan Party shall have any rights or benefits under this Section 7(b) (notwithstanding
that these provisions are included in this Agreement), and no Loan Party shall have any rights as a third-party beneficiary of
this Section 7(b), all of which are expressly waived by each Loan Party.

 

    - 12 - 

     

    

 

(c)           Reduction
of Aggregate Revolving Commitments. Loan Parties acknowledge and agree that the Aggregate Revolving Commitments shall be reduced
from $210,000,000 to $150,000,000 effective as of the Eighth Amendment Effective Date, shall be further reduced from $150,000,000
to $125,000,000 effective as of June 15, 2019 and shall be further reduced from $125,000,000 to $100,000,000 effective as of July
6, 2019, with each Lender’s share of any such reduction effective after the Eighth Amendment Effective Date in an amount equal
to such Lender’s Pro Rata Share of the Aggregate Revolving Commitments multiplied by the amount of such reduction. Borrowers agree
to execute and deliver amended and restated Revolving Notes and Swingline Notes to evidence any such reductions, promptly upon
request of Administrative Agent or the applicable Lender from time to time.

 

(d)           Remittance
of Proceeds of Property. Loan Parties acknowledge and agree that an Account Control Event has occurred and that all proceeds
of Property of any Loan Party shall be remitted to a Collection Account for application to the Obligations. Nothing in this clause
(d) shall constitute a consent by Administrative Agent, any Co-Collateral Agent or any Lender to the sale or other disposition
by a Loan Party of any Property that is not otherwise expressly permitted by the terms of the Credit Agreement or the other Loan
Documents (including provisions of this Agreement other than this clause (d)).

 

(e)           Calculation
of Borrowing Base. Loan Parties acknowledge and agree that, for purposes of calculating the Borrowing Base from and after
the date hereof, Administrative Agent and Lenders are authorized to use the lowest appraisal received or otherwise obtained from
a nationally-recognized third party appraiser by Administrative Agent before or after the date hereof in determining the NOLV
Percentage of Eligible Inventory and Eligible Pharmacy Scripts.

 

8.            Access
to Information; Agreement to Cooperate. In addition to, and without in any way limiting the rights of Administrative Agent,
any Co-Collateral Agent or any Lender under any of the Loan Documents, each Loan Party agrees to (a) give Administrative Agent
and Co-Collateral Agents (including their respective employees, agents, advisors, attorneys, and consultants) reasonable access
to offices, properties, officers, employees, accountants, auditors, counsel and other representatives and the books and records
of such Loan Party; (b) furnish to Administrative Agent and each Co-Collateral Agent such financial, operating and Property related
data and other information as Administrative Agent or any Co-Collateral Agent shall reasonably request; and (c) to the extent
reasonable and coordinated through and with Loan Parties, instruct each Loan Party’s officers, accountants, auditors, counsel,
financial advisors (including SB360 Capital Partners, LLC, Malfitano Advisors, LLC, PJ Solomon, and the Consultant) and other
representatives to cooperate fully with, and upon request regularly consult with, Administrative Agent, each Co-Collateral Agent
and their respective representatives in respect of the matters set forth in clauses (a) and (b) hereof. Each Loan Party covenants
and agrees that such Loan Party shall fully cooperate with the Consultant (including in connection with the preparation of the
Cash Flow Forecast).

 

    - 13 - 

     

    

 

9.            Amendments
to Credit Agreement.

 

(a)           Amendment
to Existing Definitions. Section 1.1 of the Credit Agreement is hereby amended by deleting the following definition
therein in its entirety and by substituting the following in lieu thereof:

 

“Aggregate
Revolving Commitments” shall mean, collectively, the Revolving Commitments of all Lenders. As of the Eighth Amendment
Effective Date, the amount of the Aggregate Revolving Commitments is $150,000,000; provided, that the Aggregate Revolving
Commitments shall be permanently reduced (without the consent or action of any party) (x) on June 15, 2019, from $150,000,000
to $125,000,000, and (y) on July 6, 2019, from $125,000,000 to $100,000,000, which reductions in the Aggregate Revolving Commitments
shall be applied to reduce the Revolving Commitments of each Lender on a ratable basis in accordance with its Pro Rata Share of
the Aggregate Revolving Commitments (immediately prior to giving effect to any such reduction). Effective as of the date of any
such reduction in the Aggregate Revolving Commitments, Schedule 1 shall be deemed to be automatically amended to reflect
such reduction.

 

(b)           Addition
of New Definitions. Section 1.1 of the Credit Agreement is hereby amended by adding the following new definitions in
appropriate alphabetical order, respectively:

 

“Eighth
Amendment” shall mean that certain Forbearance Agreement, Eighth Amendment to Credit Agreement and Fourth Amendment to
Amended and Restated Addendum to Credit Agreement dated as of the Eighth Amendment Effective Date, by and among Loan Parties,
Administrative Agent, Co-Collateral Agents, and Lenders.

 

“Eighth
Amendment Effective Date” shall mean May 15, 2019.

 

(c)           Amendment
to Section 5.1 (Financial Statements and Other Information). Without limiting Administrative Agent’s right to require Loan
Parties to provide additional information or reporting in accordance with the Credit Agreement, Section 5.1 of the Credit
Agreement is hereby amended (i) replacing the reference to “30 days” in Section 5.1(b)(ii) of the Credit Agreement
and by substituting in lieu thereof a reference to “35 days”, (ii) by deleting the word “and” set forth at
the end of Section 5.1(f) of the Credit Agreement, (iii) by re-lettering Section 5.1(g) of the Credit Agreement
as Section 5.1(h) of the Credit Agreement, and (iv) by adding a new Section 5.1(g) to the Credit Agreement as follows:

 

(g)           Beginning
on May 17, 2019, no later than Friday of each week, a fully completed and executed rolling 13-week cash flow forecast, including
variance information on a line item basis comparing the actual results for the prior week to the forecasted results for such week
as set forth in the immediately preceding 13-week cash flow forecast, prepared (or approved) by the Consultant (as defined in
the Eighth Amendment) and (from and after May 17, 2019) consisting of an update to the Initial Cash Flow Forecast (as defined
in the Eighth Amendment) prepared pursuant to the requirements of the Eighth Amendment, and, in each case, in form and substance
satisfactory to Administrative Agent, Co-Collateral Agents and Lenders for the thirteen (13) week period beginning on the immediately
preceding Sunday, together with such additional supporting detail as Administrative Agent, any Co-Collateral Agent or any Lender
may request; and

 

    - 14 - 

     

    

 

(d)           Amendment
to Schedules. Schedule 1 to the Credit Agreement (Commitments) is hereby amended by deleting such schedule and substituting
in lieu thereof Schedule 1 to this Agreement.

 

10.          Amendments
to Addendum.

 

(a)           Amendments
to Existing Definitions. Section 2 of the Addendum is hereby amended by deleting the following definitions therein
in their entirety and by substituting the following in lieu thereof, respectively:

 

“Account
Control Event” means the opening of business on April 15, 2019.

 

“Account
Control Period” means the period beginning on the occurrence of an Account Control Event and ending on the date on which
Borrowers cause Payment in Full of the Obligations.

 

“Applicable
Margin” means, (i) as to Revolving Loans made as Base Rate Loans, three and one-quarter percent (3.25%) per annum, (ii)
as to Revolving Loans made as LIBOR Loans, four and one-quarter percent (4.25%) per annum, and (iii) as to Revolving Loans made
as LIR Loans, four and one-quarter percent (4.25%) per annum.

 

(b)           Amendment
to Section 7 (Borrowing Base Reporting; Financial and Other Information). Section 7 of the Addendum is hereby amended
by deleting such section in its entirety and by substituting the following in lieu thereof:

 

Section
7.             Borrowing Base Reporting; Financial and Other Information. Until Payment in Full of the Obligations, Borrowers shall
deliver a fully completed and executed Borrowing Base Certificate prepared or approved by the Consultant (as defined in the Eighth
Amendment) to Administrative Agent no later than the 25th day of each Fiscal Month, prepared as of the end of the immediately
preceding Fiscal Month. Borrowers shall attach the following to each Borrowing Base Certificate, each of which shall be in form
and substance satisfactory to Administrative Agent and certified by a Responsible Officer of Borrower Agent to be complete and
accurate and in compliance with the terms of this Addendum and the other Loan Documents:

 

(a)           Accounts
Receivable Reports. If requested by Administrative Agent, a report (in form and substance satisfactory to Administrative Agent)
listing (A) all of Borrowers’ Accounts, Eligible Credit Card Receivables and Eligible Pharmacy Receivables as of the last Business
Day of the applicable reporting period; (B) the amount, age, invoice date and due date of each Account on an original invoice
and due date aging basis and showing all discounts, allowances, credits, authorized returns, and disputes; (C) the name and mailing
address of each Account Debtor; (D) if requested by Administrative Agent from time to time, copies of all or a portion of the
documents underlying or relating to Borrowers’ Accounts; and (E) such other information regarding Borrowers’ Accounts which Administrative
Agent may request from time to time (each, an “Accounts Receivable Report”);

 

    - 15 - 

     

    

 

(b)           Inventory
Reports. If requested by Administrative Agent, a report (in form and substance satisfactory to Administrative Agent) listing
(A) all of Borrowers’ Inventory and all Eligible Inventory as of the last Business Day of the applicable reporting period; (B)
the type, cost, and location of all such Inventory; (C) all of such Inventory which constitutes returned or repossessed Goods;
(D) all Inventory which has not been timely sold in the Ordinary Course of Business; (E) all Inventory which is not located at
Property owned or leased by a Borrower or that is in possession of any Person other than a Borrower and a description of the reason
why such Inventory is so located or in the possession of such other Person; and (F) such other information regarding Borrowers’
Inventory (including Inventory agings) as Administrative Agent may request from time to time (each, an “Inventory Report”);
and

 

(c)           Accounts
Payable Reports. A report (in form and substance satisfactory to Administrative Agent) listing (A) each of Borrowers’ accounts
payable; (B) the number of days which have elapsed since the original due date of such account payable; (C) the name and, if requested
by Administrative Agent, address of each Person to whom such account payable is owed; and (D) if requested by Administrative Agent,
such other information concerning Borrowers’ accounts payable as Administrative Agent may request from time to time (each, an “Accounts Payable Report”).

 

In
addition to the foregoing, no later than the Friday of each week, beginning on May 17, 2019, Borrowers shall deliver to Administrative
Agent an update to the most recent monthly Borrowing Base Certificate with respect to Borrowers’ Inventory as of the end of the
preceding week (i.e., close of business on Saturday) substantially in the form of a Borrowing Base Certificate or in such other
form as may be acceptable to Administrative Agent from time to time in its discretion (such Borrowing Base Certificate, as so
updated, shall, for all purposes under this Addendum and the other Loan Documents, constitute the most recently delivered Borrowing
Base Certificate hereunder).

 

(c)           Amendment
to Section 10 (Financial Covenant). Section 10 of the Addendum is hereby amended by deleting such section in its entirety
and by substituting the following in lieu thereof:

 

 Section
10.            Financial Covenant. Until Payment in Full of the Obligations, Borrowers shall maintain at all times Excess Availability
in an amount equal to not less than ten percent (10%) of the Aggregate Revolving Commitments at such time.

 

11.          Consent
to Memphis Sale. Administrative Agent, Co-Collateral Agents and Lenders hereby consent to the execution, delivery and
performance of the Memphis Sale Agreement and to the consummation of the Memphis Sale on the terms set forth therein, subject
to the satisfaction by Loan Parties of all of the following terms and conditions in connection therewith, unless expressly waived
in writing by Co-Collateral Agents, each in its discretion:

 

(a)           on
or before the date that is two (2) Business Days prior to the consummation of the Memphis Sale (or such shorter period of time
as may be satisfactory to Administrative Agent), Administrative Agent shall have received true, correct and complete executed
copies or substantially final drafts, as the case may be, of (i) the Memphis Purchase Agreement and all amendments thereto (each
of which amendments, including with respect to the purchase price thereunder, shall be in form and substance satisfactory to Administrative
Agent), and (ii) each of the other agreements, documents or instruments executed or to be executed in connection therewith (collectively
with the Memphis Purchase Agreement, the “Memphis Purchase Documents”), including a closing statement or funds
flow memorandum with respect to the Memphis Sale, all of which Memphis Purchase Documents shall be in form and substance satisfactory
to Administrative Agent;

 

    - 16 - 

     

    

 

(b)           on
or before August 15, 2019 (or such later date as may be consented to by each Co-Collateral Agent in writing, each in its discretion),
the Memphis Sale shall have been consummated by Loan Parties in accordance with the Memphis Purchase Documents delivered to Administrative
Agent pursuant to the foregoing clause (a), with only such changes thereto as may have been disclosed to Administrative Agent
and approved by Administrative Agent in writing (including with respect to the purchase price), and Administrative Agent shall
have received in a Collection Account, for application to the Obligations, in immediately available funds, the proceeds of the
Memphis Sale, net of any reasonable holdbacks or similar amounts contemplated by the Memphis Purchase Documents and other reasonable
and customary closing and transaction costs incurred by Loan Parties in connection therewith (such net proceeds, the “Net
Memphis Proceeds”);

 

(c)           to
the extent any Loan Party enters into any lease with Purchaser for any part of the Memphis Property, (i) the landlord of such
Real Estate shall, concurrently with the Loan Party’s execution of the applicable lease, execute and deliver to Administrative
Agent a Third Party Agreement, in form and substance satisfactory to Administrative Agent, and (ii) to the extent Purchaser incurs
Indebtedness that is secured by a mortgage on the Memphis Property, such mortgagee shall execute and deliver (x) to Administrative
Agent a Third Party Agreement, in form and substance satisfactory to Administrative Agent, and (y) to the applicable Loan Party
a non-disturbance agreement, in form and substance satisfactory to Administrative Agent; and

 

(d)           no
Default or Event of Default shall exist at the time the Memphis Sale is consummated or shall result therefrom other than a Stipulated
Default.

 

12.          Agreements
Regarding Closed Store Property Liquidation and Inventory Blowout Sale. No Credit Card Receivables, Pharmacy Receivables
or Pharmacy Scripts will be sold or otherwise disposed of pursuant to the Store Closure Plan, as part of the Closed Store Property
Liquidation, or as part of the Inventory Blowout Sale, without the prior written consent of Co-Collateral Agents, each in its
discretion.

 

13.          Consultants
Engaged for Secured Parties. Each Loan Party acknowledges that Administrative Agent, or Administrative Agent’s legal counsel,
has retained or intends to retain the services of Hilco Valuation Services and one or more other Persons (each, a “Secured
Party Consultant”) to advise Secured Parties and Secured Parties’ counsel concerning various matters pertaining to, among
other things, Loan Parties, their financial condition, business prospects, assets, liabilities and financial forecast; that no
Secured Party Consultant has any authority to bind any Secured Party or any counsel to any Secured Party to any agreement with
any Loan Party, to make any representations or warranties on behalf of any Secured Party or any counsel to any Secured Party,
or otherwise to act on behalf of any Secured Party or any counsel to any Secured Party; and that each Secured Party Consultant
may share with Secured Parties and Secured Parties’ counsel and other advisors any information obtained by such Secured Party
Consultant during the course of the discharge of its engagement concerning Loan Parties, their financial condition, business,
prospects, financial forecasts, or the Collateral. Each Loan Party agrees to provide each Secured Party Consultant with such information
concerning such Loan Party, its financial condition, business prospects, forecasts, assets and liabilities as such Secured Party
Consultant may request and agrees promptly to notify Administrative Agent if such Loan Party believes that any Secured Party Consultant
has in any way taken any actions that such Loan Party believes are inappropriate, unlawful or harmful to such Loan Party’s business.
Borrowers jointly and severally agree to reimburse Administrative Agent and Lenders (or their counsels) for any amounts that any
of them pay to any Secured Party Consultant for any Secured Party Consultant’s fees and expenses. Each Loan Party acknowledges
and agrees that neither any Secured Party nor any counsel to any Secured Party will have any liability for any wrongful acts of
any Secured Party Consultant.

 

    - 17 - 

     

    

 

14.          Application
of Proceeds. Each Loan Party hereby waives the right, if any, to direct the manner in which Administrative Agent applies
any payments, or Collateral proceeds to the Obligations and agrees that Administrative Agent may apply and reapply all such payments,
or proceeds to the Obligations as Administrative Agent in its discretion elects from time to time.

 

15.          Release
of Reserves. Effective upon the receipt and approval by Co-Collateral Agents of one or more signed, binding and bona
fide commitment letters for a Refinancing Transaction that satisfy the requirements of Section 4(m) of this Agreement,
and so long as Loan Parties have not failed to satisfy any Forbearance Condition as of such date (excluding for avoidance of doubt
any Forbearance Condition which on such date is not yet required to be satisfied), Bank of America, N.A., in its capacity as Co-Collateral
Agent, and Regions Bank, in its capacity as Administrative Agent, agree to release a portion, in the amount of $10,000,000, of
the Reserves that are in existence on the date of this Agreement; provided, that each Loan Party hereby acknowledges and
agrees that the foregoing release shall in no way prohibit, or limit the right of, Administrative Agent or any Co-Collateral Agent
from imposing, changing or re-imposing any Reserve before or after such date, in accordance with the Loan Documents.

 

16.          Representations
and Warranties of Loan Parties. Each Loan Party represents and warrants to Administrative Agent, each Co-Collateral Agent,
and each Lender, as an inducement to Administrative Agent, each Co-Collateral Agent, and each Lender to enter into this Agreement,
that (a) no Default or Event of Default exists under the Loan Documents, except for Stipulated Defaults that are in existence
on the date hereof; (b) subject to the existence of the Stipulated Defaults, the representations and warranties of such Loan Party
contained in the Loan Documents were true and correct in all material respects when made and continue to be true and correct in
all material respects on the date hereof; (c) the execution, delivery and performance by such Loan Party of this Agreement and
the consummation of the transactions contemplated hereby are within the entity power of such Loan Party and have been duly authorized
by all necessary corporate or limited liability company action, as applicable, on the part of such Loan Party, do not require
any approval or consent, or filing with, any governmental agency or authority, do not violate any provisions of any law, rule
or regulation or any provision of any order, writ, judgment, injunction, decree, determination or award presently in effect in
which such Loan Party is named or any provision of the Organizational Documents of such Loan Party and do not result in a breach
of or constitute a default under any agreement or instrument to which such Loan Party is a party or by which it or any of its
Properties is bound; (d) this Agreement constitutes the legal, valid and binding obligation of such Loan Party, enforceable against
such Loan Party in accordance with its terms; (e) all Payroll Taxes required to be withheld from the wages of such Loan Party’s
employees have been paid or deposited when due; (f) such Loan Party is entering into this Agreement freely and voluntarily with
the advice of legal counsel of such Loan Party’s own choosing; (g) such Loan Party has freely and voluntarily agreed to the releases,
waivers and undertakings set forth in this Agreement; and (h) no Loan Party intends to commence any Insolvency Proceeding.

 

17.          Reaffirmation
of Obligations. Each Loan Party hereby ratifies and reaffirms the Loan Documents (including all of its covenants, duties,
obligations and liabilities thereunder) and the Obligations.

 

18.          Specific
Waivers. Each Loan Party hereby waives, to the fullest extent permitted by Applicable Law, (a) any and all rights to receive
notice in connection with the enforcement by Administrative Agent of its security interests and other Liens with respect to any
of the Collateral, and (b) the benefit of any statute of limitations or statute of repose that might otherwise bar the recovery
of any of the Obligations from any one or more of them.

 

    - 18 - 

     

    

 

19.          Release
of Claims; Covenant Not to Sue. To induce Administrative Agent, each Co-Collateral Agent, and each Lender to enter into this
Agreement, each Loan Party, for itself and on behalf of such Loan Party’s officers, directors, subsidiaries, successors and assigns
(collectively with each Loan Party, collectively, “Releasors” and, each individually, a “Releasor”),
hereby releases, acquits and forever discharges each Releasee (as hereinafter defined)
from any and all claims, demands, debts, liabilities, actions or causes of action of any kind (if any there be), whether absolute
or contingent, due or to become due, disputed or undisputed, liquidated or unliquidated, at law or in equity, or known or unknown
(collectively, “Claims”) that any Releasor now has, ever had or hereafter may have against any Secured Party
in any capacity or any of such Secured Party’s officers, directors, employees, agents, attorneys, representatives, subsidiaries,
affiliates and shareholders (collectively with each Secured Party, “Releasees”) based on any actions, inactions,
transactions, or circumstances that have occurred on or before the date of this Agreement and that relate in any way to (i) any
of the Obligations, Loan Documents or Collateral, (ii) any transaction, act or omission contemplated by or described in any Loan
Documents or concluded thereunder, or (iii) any aspect of the dealings or relationships between or among any Loan Party, on the
one hand, and any Secured Party, on the other hand, under or in connection with any Loan Document or any transaction, act or omission
contemplated by or described in any Loan Document or concluded thereunder. The provisions of this Section 19 shall survive
the Forbearance Termination Date, termination of any Loan Document, and Payment in Full of the Obligations. Each Loan Party,
for itself and on behalf of such Loan Party’s successors, assigns and other legal representatives, hereby unconditionally
and irrevocably agrees that such Loan Party will not sue any Releasee on the basis of any Claim released, remised and discharged
pursuant to the foregoing provisions of this Section 19, and if any Loan Party or any of such Loan Party’s successors or
assigns violates the foregoing covenant, each Loan Party, for itself and its successors and assigns, agrees to pay, in addition
to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and other costs incurred
by any Releasee as a result of such violation. EACH LOAN PARTY EXPRESSLY WAIVES AND RELEASES ANY AND ALL PROVISIONS, RIGHTS AND
BENEFITS UNDER ANY APPLICABLE LAW WHICH, IN THE ABSENCE OF SUCH WAIVER, WOULD BAR SUCH LOAN PARTY’S RELEASE OF ANY CLAIMS WHICH
SUCH LOAN PARTY DOES NOT KNOW OF (NOR SUSPECT TO EXIST) IN ITS FAVOR AT THE TIME OF EXECUTING THIS AGREEMENT.

 

20.          Relationship
of Parties; No Third Party Beneficiaries. Nothing in this Agreement shall be construed to alter the existing debtor-creditor
relationship among Loan Parties and Administrative Agent, Co-Collateral Agents and Lenders. This Agreement is not intended, nor
shall it be construed, to create a partnership or joint venture relationship between or among any of the parties hereto. No Person
other than a party hereto is intended to be a beneficiary hereof and no Person other than a party hereto shall be authorized to
rely upon or enforce the terms of this Agreement.

 

21.          Entire
Agreement; Amendments; Successors and Assigns; Modification of Agreement. This Agreement and the other Loan Documents
constitute the entire understanding of the parties with respect to the subject matter hereof and thereof; supersedes all other
discussions, promises, representations, warranties, agreements and understandings between the parties with respect thereto; may
not be modified, altered or amended except by agreement in writing signed by all the parties hereto; and shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns.

 

22.          Construction;
Section Headings. This Agreement has been prepared through the joint efforts of all of the parties hereto. Neither the
provisions of this Agreement nor any alleged ambiguity therein shall be interpreted or resolved against any party on the grounds
that such party or its counsel drafted all or any part of this Agreement or based on any other rule of strict construction. Each
of the parties represents that such party has carefully read this Agreement and all other instruments and agreements executed
in connection herewith and that such party knows the contents hereof and has signed the same freely and voluntarily. Section titles
and references contained in this Agreement have been inserted as a matter of convenience and for reference only and shall not
control or affect the meaning or construction of any of the terms contained herein.

 

    - 19 - 

     

    

 

23.          Non-Waiver
of Default. Neither Administrative Agent’s, any Co-Collateral Agent’s or any Lender’s forbearance hereunder nor any Lender’s
election in its discretion to continue making of loans or other extensions of credit at any time to Borrowers under the Credit
Agreement shall be deemed a waiver of or consent to the Stipulated Defaults or any other Event of Default. Each Loan Party agrees
that such Events of Default shall not be deemed to have been waived, released or cured by virtue of any loans or other extensions
of credit to any Borrower or each Lender’s, each Co-Collateral Agent’s and Administrative Agent’s agreement to forbear pursuant
to the terms of this Agreement.

 

24.          No
Novation, Accord or Satisfaction; Strict Compliance. This Agreement is not intended to be, nor shall it be construed to
create, a novation or accord and satisfaction, and the Credit Agreement and the other Loan Documents shall remain in full force
and effect. Notwithstanding any prior mutual temporary disregard of any of the terms of any of the Loan Documents, the parties
agree that the terms of each of the Loan Documents shall be strictly adhered to on and after the date hereof, except as expressly
modified by this Agreement.

 

25.          Counterparts;
Waiver of Notice of Acceptance. This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall constitute an original, but all of which taken together
shall be one and the same instrument. In proving this Agreement or any of the Loan Documents, it shall not be necessary to produce
or account for more than one such counterpart signed by the party against whom enforcement is sought. Upon request by Administrative
Agent, any electronic signature or delivery shall be promptly followed by a manually executed or paper document. Notice of Administrative
Agent’s, each Co-Collateral Agent’s and each Lender’s acceptance hereof is hereby waived by each Loan Party.

 

26.          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia, without giving
effect to any conflict of law principles or other rule of law which would cause the application of the law of any jurisdiction
other than the law of the State of Georgia (but giving effect to federal laws relating to national banks). This Agreement is intended
to take effect as a sealed instrument under Georgia law.

 

27.          Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under
Applicable Law; but if any provision of this Agreement shall be prohibited by or invalid under Applicable Law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement.

 

28.          Reimbursement
for Administrative Agent’s and Co-Collateral Agents’ Expenses. Borrowers agree to reimburse Administrative Agent and each
Co-Collateral Agent, on demand, for all costs and expenses, including legal and consultant’s fees, incurred by Administrative
Agent or such Co-Collateral Agent, as applicable, in connection with the drafting, negotiation, execution, closing and performance
of this Agreement.

 

29.          Waiver
of Jury Trial. To the fullest extent permitted by Applicable Law, each party hereto hereby waives the right to trial by jury
in any action, suit, proceeding or counterclaim arising out of or related to this Agreement.

 

[Remainder
of page intentionally left blank; signatures commence on following page.]

 

    - 20 - 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered under seal on the date first
written above. 

	 	 	 	 	 	 
	 	BORROWERS:	 
	 	 	 	 	 	 
	 	FRED’S, INC., a Tennessee corporation,	 
	 	as “Borrower Agent” and a “Borrower”	 
	 	 	 	 	 	 
	 	By:	/s/ Joseph Anto	 
	 	Name:	Joseph Anto	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 	 	 
	 	[CORPORATE SEAL]	 
	 	 	 	 	 	 
	 	FRED’S STORES OF TENNESSEE, INC.,	 
	 	a Delaware corporation, as a “Borrower”	 
	 	 	 	 	 	 
	 	By:	/s/ Joseph Anto	 
	 	Name:	Joseph Anto	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 	 	 
	 	[CORPORATE SEAL]	 
	 	 	 	 	 	 
	 	NATIONAL PHARMACEUTICAL NETWORK, INC., a Florida corporation, as a “Borrower”	 
	 	 	 	 	 	 
	 	By: 	/s/ Joseph Anto	 
	 	Name: 	Joseph Anto	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 	 	 
	 	[CORPORATE SEAL]	 
	 	 	 	 	 	 
	 	REEVES-SAIN DRUG STORE, INC.,	 
	 	a Tennessee corporation, as a “Borrower”	 
	 	 	 	 	 	 
	 	By:	/s/ Joseph Anto	 
	 	Name:	Joseph Anto	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 	 	 
	 	[CORPORATE SEAL]	 

 

[Signatures
continue on following pages.]

 

Forbearance Agreement, Eighth Amendment to Credit Agreement
and Fourth Amendment to Amended and Restated Addendum to Credit Agreement (Fred’s) 

 

     

     

    

	 	 	 	 	 	 
	 	GUARANTOR:	 
	 	 	 	 	 	 
	 	505 N. MAIN OPP, LLC,	 
	 	a Delaware limited liability company, as a “Guarantor”	 
	 	 	 	 	 	 
	 	By: 	/s/ Joseph Anto	 
	 	Name: 	Joseph Anto	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 	 	 
	 	[SEAL]	 

 

[Signatures
continue on following pages.]

 

Forbearance Agreement, Eighth Amendment to Credit Agreement
and Fourth Amendment to Amended and Restated Addendum to Credit Agreement (Fred’s) 

 

     

     

    

	 	 	 	 
	 	ADMINISTRATIVE AGENT:	 
	 	 	 	 
	 	REGIONS BANK, as “Administrative Agent”	 
	 	 	 	 
	 	By:	/s/ Gene Wilson	 
	 	Name: 	Gene Wilson	 
	 	Title:	Managing Director	 

 

[Signatures
continue on following pages.]

 

Forbearance Agreement, Eighth Amendment to Credit Agreement
and Fourth Amendment to Amended and Restated Addendum to Credit Agreement (Fred’s) 

 

     

     

    

	 	 	 	 
	 	CO-COLLATERAL AGENTS:	 
	 	 	 	 
	 	REGIONS BANK, as a “Co-Collateral Agent”	 
	 	 	 	 
	 	By:	/s/ Gene Wilson	 
	 	Name: 	Gene Wilson	 
	 	Title:	Managing Director	 
	 	 	 	 
	 	BANK OF AMERICA, N.A., as a “Co-Collateral Agent”	 
	 	 	 	 
	 	By:	/s/
Joseph Becker	 
	 	Name:	Joseph Becker	 
	 	Title:	Managing Director	 

 

[Signatures
continue on following pages.]

 

Forbearance Agreement, Eighth Amendment to Credit Agreement
and Fourth Amendment to Amended and Restated Addendum to Credit Agreement (Fred’s) 

 

     

     

    

	 	 	 	 
	 	LENDERS:	 
	 	 	 	 
	 	REGIONS BANK, as a “Lender”	 
	 	 	 	 
	 	By:	/s/ Gene Wilson	 
	 	Name: 	Gene Wilson	 
	 	Title:	Managing Director	 
	 	 	 	 
	 	BANK OF AMERICA, N.A., as a “Lender”	 
	 	 	 	 
	 	By:	/s/ Joseph Becker	 
	 	Name:	Joseph Becker	 
	 	Title:	Managing Director	 

 

Forbearance
Agreement, Eighth Amendment to Credit Agreement and Fourth Amendment to Amended and Restated Addendum to Credit Agreement (Fred’s)

 

     

     

    

 

EXHIBIT
A

 

Closed
Stores

 

	Store
    #	Location
	1735	GREENWOOD,
    MS
	1990	JACKSON,
    MS
	3300	DECHERD,
    TN
	1710	GONZALES,
    LA
	1995	JACKSON,
    MS
	1370	CENTER
    POINT AL (DFL), AL
	2315	MURFREESBORO,
    TN
	2285	MEMPHIS,
    TN - GETWELL
	1740	GALLATIN,
    TN
	2375	MCMINNVILLE,
    TN
	2015	JONESBORO,
    AR
	2328	MARION,
    NC
	2620	PEARL,
    MS
	1895	HOPE,
    AR
	1620	FORREST
    CITY, AR
	2915	SEARCY,
    AR
	1725	GUNTERSVILLE,
    AL
	1310	CONWAY,
    AR
	2423	NEWPORT,
    TN
	1285	COLUMBUS,
    MS
	2973	SPRUCE
    PINES, NC
	3405	YAZOO
    CITY, MS
	2305	MEMPHIS,
    TN - SUMMER AVE
	3043	THOMASVILLE,
    GA
	2755	ROANOKE,
    AL
	1745	GREENVILLE,
    MS
	2645	PORTLAND,
    TN
	1858	HORN
    LAKE, MS
	1238	CLINTON,
    SC
	1905	HATTIESBURG,
    MS
	1148	BAINBRIDGE,
    GA
	2220	LEBANON,
    TN
	1788	GLADEWATER,
    TX
	2660	PULASKI,
    TN
	1530	EL
    DORADO, AR
	3045	TUPELO,
    MS - VARSITY
	1800	HARTSVILLE,
    TN
	1475	DYERSBURG,
    TN
	1243	CHESTER,
    SC
	3075	TALLADEGA,
    AL
	3290	WEST
    MEMPHIS, AR
	1175	BROWNSVILLE,
    TN
	2628	PICKENS,
    SC
	1630	FOREST,
    MS
	2893	SWAINSBORO,
    GA
	1195	BLAKELY,
    GA
	1290	CONWAY,
    AR
	2143	LADSON,
    SC

	Store
    #	Location
	2180	LANETT,
    AL
	2998	SYLACAUGA,
    AL
	2610	PARAGOULD,
    AR
	1545	ENTERPRISE,
    AL
	2400	MURRAY,
    KY
	2450	NATCHITOCHES,
    LA
	3260	WEST
    POINT, MS
	1438	ANNISTON,
    AL
	1265	CLEVELAND,
    MS
	2675	PRINCETON,
    KY
	3080	TYLER,
    TX
	3330	WHITEHOUSE,
    TX
	1298	BYRAM,
    MS
	1518	CLEVELAND,
    GA
	3048	TUPELO,
    MS
	2823	ROME,
    GA
	1263	BRUNSWICK,
    GA
	2038	JASPER,
    GA
	2505	ORANGEBURG,
    SC
	2555	PARIS,
    TN
	1413	DAYTON,
    TN
	1770	HAMMOND,
    LA
	1875	HUEYTOWN,
    AL
	2955	SELMER,
    TN
	2420	NEWPORT,
    AR
	2230	MAGEE,
    MS
	2188	LIBERTY,
    SC
	2630	PHILADELPHIA,
    MS
	1360	COLLIERVILLE,
    TN
	2458	NORTH
    AUGUSTA, SC
	1845	HARRISON,
    AR
	2158	LAFAYETTE,
    LA
	2005	JACKSON,
    TN
	2478	LANDRUM,
    SC
	1610	COVINGTON,
    GA
	3198	WAGONER,
    OK
	2435	MCGREGOR,
    TX
	1945	HODGES,
    SC
	1230	CENTRE,
    AL
	1340	COLUMBIA,
    MS
	1033	ANDERSON,
    SC
	2785	RUSSELL
    SPRINGS, KY
	2643	PINEVILLE,
    LA
	2538	FLORENCE,
    MS
	2653	BOSSIER
    CITY, LA
	2863	ST
    MARTINVILLE, LA
	2088	FOLEY,
    AL
	2578	PASCAGOULA,
    MS

     

     

    

 

	Store
    #	Location
	2028	GAUTIER,
    MS
	3185	WESTLAKE,
    LA
	2548	MT.
    PLEASANT, TN
	2003	CARENCRO,
    LA
	2058	CAMILLA,
    GA
	1968	GREENVILLE,
    MS
	1798	HINESVILLE,
    GA
	2721	FRANKLIN,
    LA
	2565	BATON
    ROUGE, LA
	2793	DUNN,
    NC
	2683	RIVERDALE,
    GA
	2325	MOUNTAIN
    HOME, AR
	2031	MCDONOUGH,
    GA
	2707	MEDINA,
    TN
	2790	RUSSELLVILLE,
    AL
	2678	BLANCHARD,
    LA
	2033	JASPER,
    TN
	3108	TERRY,
    MS
	2218	LINDALE,
    TX
	1088	BENTON,
    IL
	1205	BENTON,
    AR
	2390	MENA,
    AR
	1675	FLORENCE,
    AL
	2905	STAMPS,
    AR
	1810	CLARKSVILLE
    - HILLTOP, TN
	1213	CALHOUN,
    GA
	2408	MONROEVILLE,
    AL
	3365	WOODBURY,
    TN
	1428	DILLARD,
    GA
	3055	TUSCUMBIA,
    AL
	1078	ADEL,
    GA
	2503	ODENVILLE,
    AL
	3415	ZEBULON,
    GA
	1925	IVA,
    SC
	1313	BARNESVILLE,
    GA
	2843	ROYSTON,
    GA
	2510	OSCEOLA,
    AR
	2700	QUITMAN,
    GA
	2103	KINGSLAND,
    GA
	1855	HOPKINSVILLE,
    KY
	1225	CAPE
    GIRARDEAU, MO
	2380	MONROE,
    LA
	2113	KILGORE,
    TX
	2800	RINGGOLD,
    GA
	2508	OCEAN
    SPRINGS, MS
	1215	CABOT,
    AR
	2805	RUSSELLVILLE,
    AR
	1840	HOOVER,
    AL
	1270	COLUMBUS,
    MS
	2635	POPLAR
    BLUFF, MO
	2680	PRESCOTT,
    AR
	2080	JONESBORO,
    LA

	Store
    #	Location
	2250	MARION,
    AL
	1350	CORDELE,
    GA
	1850	HOLLY
    SPRINGS, MS
	1170	BROOKHAVEN,
    MS
	1365	CEDARTOWN,
    GA
	3030	TUNNEL
    HILL, GA
	1010	ABERDEEN,
    MS
	1260	COLDWATER,
    MS
	1670	FLORENCE,
    AL
	6019	LELAND,
    MS (GD&D)
	2713	MERIDIAN,
    MS

     

     

    

 

EXHIBIT
B

 

Closed
Stores (Wave II)

 

	Store
    #	Location	Address	City	State
	3340	WHITE
    HALL, AR	8515
    DOLLARWAY RD	WHITE
    HALL	AR
	1020	AMORY,
    MS	905
    HIGHWAY 278 E	AMORY	MS
	2960	STARKVILLE,
    MS	605
    S JACKSON ST	STARKVILLE	MS
	1718	GREENBRIAR,
    AR	57
    S BROADVIEW ST	GREENBRIER	AR
	1773	HASKELL,
    AR	6027
    HIGHWAY 67	HASKELL	AR
	1785	HAYTI,
    MO	603
    E WASHINGTON ST	HAYTI	MO
	2355	MONROE,
    LA	1701
    N 18TH ST	MONROE	LA
	1993	JACKSBORO,
    TX	618
    N MAIN ST	JACKSBORO	TX
	1820	HANCEVILLE,
    AL	802
    MAIN ST NE	HANCEVILLE	AL
	2855	RUTHERFORDTON,
    NC	150
    PARK LANE DR	RUTHERFORDTON	NC
	3110	UNION
    CITY, TN	1405
    S HOME ST	UNION
    CITY	TN
	1410	DOTHAN,
    AL	2146
    S OATES ST	DOTHAN	AL
	1168	BROOKHAVEN,
    MS	964
    BROOKWAY BLVD	BROOKHAVEN	MS
	2208	LYMAN,
    SC	200
    SPARTANBURG HWY	LYMAN	SC
	3065	TIFTON,
    GA	1442
    TIFT AVE N	TIFTON	GA
	2633	PIEDMONT,
    SC	908
    ANDERSON ST	PIEDMONT	SC
	1393	COLBERT,
    GA	15
    COLBERT BUSINESS PKWY W	COLBERT	GA
	1100	BARTLETT,
    TN	6064
    STAGE RD	BARTLETT	TN
	1468	DOUGLAS,
    GA	813
    BOWENS MILL RD SE	DOUGLAS	GA
	1030	ALICEVILLE,
    AL	105
    MEMORIAL PARKWAY WEST	ALICEVILLE	AL
	2520	OXFORD,
    MS	1930
    UNIVERSITY AVE	OXFORD	MS
	2155	LAFAYETTE,
    TN	1109
    SCOTTSVILLE RD	LAFAYETTE	TN
	1965	MUNFORDVILLE,
    KY	1181
    MAIN ST	MUNFORDVILLE	KY
	1673	CHESTERFIELD,
    SC	2404
    WEST BLVD	CHESTERFIELD	SC
	2293	MELBOURNE,
    AR	609
    EAST MAIN STREET	MELBOURNE	AR
	2523	MOULTRIE,
    GA	2601
    S MAIN ST	MOULTRIE	GA
	1790	HERNANDO,
    MS	6
    E COMMERCE ST	HERNANDO	MS
	2543	LEESBURG,
    GA	118
    ROBERT B LEE DRIVE	LEESBURG	GA
	1330	CORINTH,
    MS	2040
    E SHILOH RD	CORINTH	MS
	2333	MOSS
    BLUFF, LA	899
    N HIGHWAY 171	MOSS
    BLUFF	LA
	1090	BRANDON/PEARL,
    MS	5760
    HIGHWAY 80 E	PEARL	MS
	2145	LITTLE
    ROCK, AR	15700
    ARCH ST	LITTLE
    ROCK	AR
	1515	ELDORADO,
    IL	1021
    HWY 45 NORTH	EL
    DORADO	IL
	2248	MILTON,
    FL	6522
    CAROLINE ST	MILTON	FL
	1143	BREESE,
    IL	6
    N 4TH ST	BREESE	IL
	1628	ETOWAH,
    TN	733
    LAWRENCE ST	ETOWAH	TN

 

     

     

    

 

	Store
    #	Location	Address	City	State
	2270	MALVERN,
    AR	110
    N MAIN ST	MALVERN	AR
	1823	HATTIESBURG,
    MS	5266
    OLD HIGHWAY 11	HATTIESBURG	MS
	3145	VANCLEAVE,
    MS	12201
    HIGHWAY 57	VANCLEAVE	MS
	1535	EAST
    BREWTON, AL	802
    FORREST AVE	EAST
    BREWTON	AL
	1053	ROME,
    GA	3233
    MARTHA BERRY HWY NW	ROME	GA
	2055	JESUP,
    GA	650
    W CHERRY ST	JESUP	GA
	1870	HUMBOLDT,
    TN	2549
    N CENTRAL AVE	HUMBOLDT	TN
	2235	MARSHALL,
    AR	1002
    HIGHWAY 65 N	MARSHALL	AR
	2295	MARION,
    AR	2695
    STATE HIGHWAY 77 S	MARION	AR
	1485	BISHOPVILLE,
    SC	618
    SUMTER HWY	BISHOPVILLE	SC
	2820	ROBERTSDALE,
    AL	17870
    BALDWIN FARMS PL	ROBERTSDALE	AL
	2883	SPARTA,
    TN	159
    W TURN TABLE RD	SPARTA	TN
	3063	TUPELO,
    MS	1317
    E MAIN ST	TUPELO	MS
	1933	ECLECTIC,
    AL	1734
    KOWALIGA RD	ECLECTIC	AL
	1103	BAXLEY,
    GA	875
    S MAIN ST	BAXLEY	GA
	2880	SAVANNAH,
    TN	1103
    FLORENCE RD	SAVANNAH	TN
	1488	CRYSTAL
    SPRINGS, MS	25096
    HIGHWAY 51	CRYSTAL
    SPRINGS	MS
	1625	BRIDGEPORT,
    TX	801
    TURKEY CREEK TRL	BRIDGEPORT	TX
	1240	CENTERVILLE,
    TN	1797
    HWY 100 EAST	CENTERVILLE	TN
	1288	CONYERS,
    GA, GA	425
    SIGMAN RD NW	CONYERS	GA
	1380	COLUMBIA,
    TN	425
    W 7TH ST	COLUMBIA	TN
	3255	WEST
    MONROE, LA	2615
    N 7TH ST	WEST
    MONROE	LA
	1110	BASTROP,
    LA	2017
    E MADISON AVE	BASTROP	LA
	1783	GASTON,
    SC	106
    JIMMY MARTIN CIR	GASTON	SC
	2138	LIVE
    OAK, FL	1535
    OHIO AVE S	LIVE
    OAK	FL
	2885	SPRINGFIELD,
    KY	1117
    LINCOLN PARK RD	SPRINGFIELD	KY
	1605	CAMDEN,
    SC	1521
    JEFFERSON DAVIS HWY	CAMDEN	SC
	3013	THOMASTON,
    GA	1090
    HIGHWAY 19 N	THOMASTON	GA
	2013	BRANDON,
    MS	1898
    SPILLWAY RD	BRANDON	MS
	2020	JONESBORO,
    AR	4212
    E JOHNSON AVE	JONESBORO	AR
	2465	NEWBERRY,
    SC	1827
    WILSON RD	NEWBERRY	SC
	1940	GREEN
    COVE SPRINGS, FL	1435
    S ORANGE AVE	GREEN
    CV SPGS	FL
	1868	HALLSVILLE,
    TX	1000
    W MAIN ST	HALLSVILLE	TX
	1128	HICKORY,
    NC	2350
    SPRINGS RD NE	HICKORY	NC
	2875	SUMTER,
    SC	209
    BROAD ST	SUMTER	SC
	2900	SARDIS,
    MS	401
    E LEE ST	SARDIS	MS
	1025	ALBANY,
    GA	1001
    N SLAPPEY BLVD	ALBANY	GA

 

     

     

    

 

	Store
    #	Location	Address	City	State
	2935	SENATOBIA,
    MS	102
    NORFLEET DR	SENATOBIA	MS
	2268	MAGNOLIA,
    AR	406
    W MAIN ST	MAGNOLIA	AR
	2370	MONTICELLO,
    AR	406
    HIGHWAY 425 S	MONTICELLO	AR
	3115	VALDOSTA,
    GA	4401
    Bemiss Road 	Valdosta	GA
	1743	GRAMBLING,
    LA	7616
    HIGHWAY 80	RUSTON	LA
	1478	DUBLIN,
    GA	122
    HILLCREST PKWY	DUBLIN	GA
	2040	JACKSONVILLE,
    AR	428
    S JAMES ST	JACKSONVILLE	AR
	2518	MARKSVILLE,
    LA	306
    MOREAU ST	MARKSVILLE	LA
	1555	ESCATAWPA,
    MS	7833
    HWY 613	Moss
    Point	MS
	1498	ASHVILLE,
    AL	35360
    US HIGHWAY 231	ASHVILLE	AL
	1140	BOSSIER
    CITY, LA	1882
    AIRLINE DR	BOSSIER
    CITY	LA
	1255	CLINTON,
    MS	200
    CLINTON BLVD	CLINTON	MS
	3350	WOODRUFF,
    SC	505
    LAURENS RD	WOODRUFF	SC
	2618	PINE
    BLUFF, AR	1701
    COMMERCE RD	PINE
    BLUFF	AR
	1860	HUNTINGDON,
    TN	535
    HIGH ST	HUNTINGDON	TN
	2975	SWEETWATER,
    TN	522
    S MAIN ST	SWEETWATER	TN
	2528	MAYFLOWER,
    AR	652
    HIGHWAY 365	MAYFLOWER	AR
	2668	PRATTVILLE,
    AL	715
    E MAIN ST	PRATTVILLE	AL
	1835	HAZLEHURST,
    MS	140
    TRADE CENTER LN	HAZLEHURST	MS
	3270	WEST
    MONROE, LA	207
    WASHINGTON ST	WEST
    MONROE	LA
	2553	OCILLA,
    GA	224
    E. 4th Street	Ocilla	GA
	1208	AUGUSTA,
    AR	1302
    HIGHWAY 64 E	AUGUSTA	AR
	2693	MACON,
    GA	6109
    HOUSTON RD	MACON	GA
	2290	MEMPHIS,
    TN - QUINCE	4589
    QUINCE RD	MEMPHIS	TN
	3345	WHITE
    OAK, TX	605
    E US HIGHWAY 80	WHITE
    OAK	TX
	2245	MILAN,
    TN	5028
    S 1ST ST	MILAN	TN
	2595	PEA
    RIDGE, AR	198
    N CURTIS AVE	PEA
    RIDGE	AR
	2560	MEMPHIS,
    TN (WINCHESTER)	7143
    Winchester Road	Memphis	TN
	3005	TIOGA,
    LA	4828
    SHREVEPORT HWY	TIOGA	LA
	2945	SOUTHAVEN,
    MS	8912
    NORTHWEST DR	SOUTHAVEN	MS
	2563	MEMPHIS,
    TN (QUINCE/KIRBY)	6500
    Quince Road	Memphis	TN

     

     

    

 

EXHIBIT
C

 

Continuing
Stores

 

	Store
    #	Location	Address	City	State	Xpress
    location
	3240	WINONA,
    MS	603
    MIDDLETON RD	WINONA	MS	 
	1178	BRYSON
    CITY, NC	250
    HIGHWAY 19 S	BRYSON
    CITY	NC	 
	2500	OLIVE
    BRANCH, MS	7105
    HIGHWAY 305 N	OLIVE
    BRANCH	MS	 
	1758	GLENNVILLE,
    GA	726
    N VETERANS BLVD.	GLENNVILLE	GA	 
	1300	CLARKSDALE,
    MS	236
    DESOTO AVE	CLARKSDALE	MS	 
	2711	PARSONS,
    TN	501
    TENNESSEE AVE N	PARSONS	TN	 
	1135	BATESVILLE,
    MS	475
    HIGHWAY 6 E	BATESVILLE	MS	 
	1923	GRAY,
    GA	106
    BARKER RD	GRAY	GA	 
	1163	BONIFAY,
    FL	1718
    S WAUKESHA ST	BONIFAY	FL	 
	3310	WARREN,
    AR	507
    W PINE ST	WARREN	AR	 
	1665	FRANKLINTON,
    LA	708
    WASHINGTON ST	FRANKLINTON	LA	 
	1765	HENDERSON,
    TN	535
    W MAIN ST	HENDERSON	TN	 
	2308	METTER,
    GA	978
    S.E. BROAD ST.	METTER	GA	 
	2388	MOUNTAIN
    CITY, TN	100
    PIONEER VILLAGE DR	MOUNTAIN
    CITY	TN	 
	1035	ARCADIA,
    LA	1311
    HAZEL ST	ARCADIA	LA	 
	2993	SYLVANIA,
    GA	518
    W OGEECHEE ST	SYLVANIA	GA	 
	1608	DUMAS,
    AR	611
    HIGHWAY 65 S	DUMAS	AR	 
	1520	EUPORA,
    MS	1960
    VETERANS MEMORIAL BLVD	EUPORA	MS	 
	2615	PIGGOTT,
    AR	303
    E MAIN ST	PIGGOTT	AR	 
	3210	WATER
    VALLEY, MS	109
    DUNCAN ST	WATER
    VALLEY	MS	 
	1295	COLUMBIA,
    LA	8155
    HIGHWAY 165	COLUMBIA	LA	 
	2405	MORTON,
    MS	5186
    HIGHWAY 80	MORTON	MS	 
	1403	DADEVILLE,
    AL	17916
    HIGHWAY 280	DADEVILLE	AL	 
	2335	MONROE,
    LA	522
    LINCOLN RD	MONROE	LA	 
	3225	WAYNESBORO,
    TN	307
    HIGHWAY 64 E	WAYNESBORO	TN	 
	1950	LINEVILLE,
    AL	50
    TALLADEGA ST	LINEVILLE	AL	 
	1218	CADIZ,
    KY	1938
    MAIN ST	CADIZ	KY	 
	1408	DAINGERFIELD,
    TX	218
    WATSON BLVD	DAINGERFIELD	TX	 
	2203	LUVERNE,
    AL	821
    S FOREST AVE	LUVERNE	AL	 
	1145	BRUCE,
    MS	403
    W CALHOUN ST	BRUCE	MS	 
	1763	HEADLAND,
    AL	804
    CLEVELAND ST	HEADLAND	AL	 
	1440	DOVER,
    TN	1560
    DONELSON PKWY	DOVER	TN	 
	1550	ERIN,
    TN	885
    E MAIN ST	ERIN	TN	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	2373	MONTEVALLO,
    AL	4559
    HIGHWAY 25	MONTEVALLO	AL	 
	1505	EAST
    PRAIRIE, MO	125
    PRAIRIE DR	EAST
    PRAIRIE	MO	 
	2395	MENDENHALL,
    MS	3050
    SIMPSON HIGHWAY 13	MENDENHALL	MS	 
	2990	ST
    FRANCISVILLE, LA	7139
    U S HIGHWAY 61	SAINT
    FRANCISVILLE	LA	 
	1400	COUNCE,
    TN	9810
    HIGHWAY 57	COUNCE	TN	 
	2745	REIDSVILLE,
    GA	139
    W BRAZELL ST	REIDSVILLE	GA	 
	1405	DARIEN,
    GA	1038
    RIVER DR SW	DARIEN	GA	 
	2350	MIDFIELD,
    AL	165
    BESSEMER SUPER HWY	MIDFIELD	AL	 
	2318	MILLEN,
    GA, GA	506
    US HIGHWAY 25 N	MILLEN	GA	 
	1460	DONALSONVILLE,
    GA	421
    W 3RD ST	DONALSONVILLE	GA	 
	1540	ELBA,
    AL	996
    HIGHWAY 203	ELBA	AL	 
	1108	BAMBERG,
    SC	3606
    MAIN HWY	BAMBERG	SC	 
	1585	FAIRFIELD,
    TX	375
    W HWY 84	FAIRFIELD	TX	 
	1913	HONEA
    PATH, SC	518
    E GREER ST	HONEA
    PATH	SC	 
	2168	LAKLAND,
    GA	512
    S VALDOSTA RD	LAKELAND	GA	 
	3170	VARNVILLE,
    SC	181
    W CAROLINA AVE	VARNVILLE	SC	 
	3200	WARRIOR,
    AL	204
    KEMP DR	WARRIOR	AL	 
	1803	HAWKINSVILLE,
    GA	521
    BROAD ST	HAWKINSVILLE	GA	 
	2173	LENOIR,
    NC	1346
    NORWOOD ST SW	LENOIR	NC	 
	1015	ASHBURN,
    GA	316
    E WASHINGTON AVE	ASHBURN	GA	 
	2078	JOHNSONVILLE,
    SC	198
    STUCKEY ST	JOHNSONVILLE	SC	 
	1830	HIAWASSEE,
    GA	534
    BELL CREEK RD	HIAWASSEE	GA	 
	2253	MADISON,
    FL	935
    E US 90	MADISON	FL	 
	2695	PURVIS,
    MS	509
    HIGHWAY 589	PURVIS	MS	 
	2160	LAKE
    VILLAGE, AR	1218
    S HWY 65	LAKE
    VILLAGE	AR	 
	1278	COLLINS,
    MS	1211
    S FIR AVE	COLLINS	MS	 
	2868	SALUDA,
    SC	437
    N MAIN ST	SALUDA	SC	 
	2740	RAINSVILLE,
    AL	584
    MCCURDY AVE S	RAINSVILLE	AL	 
	2798	RUSTON,
    LA	2019
    FARMERVILLE HWY	RUSTON	LA	 
	2970	SOMERVILLE,
    TN	16280
    HWY 64	SOMERVILLE	TN	 
	1153	BLACKSHEAR,
    GA	3764
    HWY 84 EAST	BLACKSHEAR	GA	 
	1533	BENTON,
    LA	5604
    HIGHWAY 3	BENTON	LA	 
	2215	LINDEN,
    TN	308
    SQUIRREL HOLLOW DR	LINDEN	TN	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	2758	ROGERSVILLE,
    AL	16100
    HIGHWAY 72	ROGERSVILLE	AL	 
	2365	MONTICELLO,
    MS	1509
    W BROAD ST	MONTICELLO	MS	 
	1280	CHATSWORTH,
    GA	1009
    N 3RD AVE	CHATSWORTH	GA	 
	2575	POPLARVILLE,
    MS	1388
    SOUTH MAIN STREET	POPLARVILLE	MS	 
	3050	TRENTON,
    TN	2045
    HWY 45 BYPASS	TRENTON	TN	 
	1433	CHESEE,
    SC	401
    S ALABAMA AVE	CHESNEE	SC	 
	2133	ALBANY,
    GA	1705
    PHILEMA RD S	ALBANY	GA	 
	1430	DALEVILLE,
    AL	340
    VIRGINIA AVE	DALEVILLE	AL	 
	1193	BURNSVILLE,
    NC	BURNSVILLE
    PLAZA	BURNSVILLE	NC	 
	1093	BELTON,
    SC	116
    RIVER ST	BELTON	SC	 
	1325	CLAXTON,
    GA	413
    N DUVAL ST	CLAXTON	GA	 
	2980	STAR
    CITY, AR	1309
    N LINCOLN AVE	STAR
    CITY	AR	 
	2488	MCCOMB,
    MS	1618
    DELAWARE AVE	MCCOMB	MS	 
	2385	HELENA,
    GA	124
    8TH STREET	HELENA	GA	 
	2540	OPP,
    AL	505
    N MAIN ST	OPP	AL	 
	2715	CHARLESTON,
    MS	304
    W MAIN ST	CHARLESTON	MS	 
	1258	CITRONELLE,
    AL	19580
    N 3RD ST	CITRONELLE	AL	 
	2655	PORTAGEVILLE,
    MO	422
    W HWY 162	PORTAGEVILLE	MO	 
	1070	ARLINGTON,
    TN	11888
    US 70	ARLINGTON	TN	 
	1500	EDGEFIELD,
    SC	227
    COLUMBIA RD	EDGEFIELD	SC	 
	2063	HOMERVILLE,
    GA	369
    S CHURCH ST	HOMERVILLE	GA	 
	1358	CUTHBERT,
    GA	101
    N WEBSTER ST	CUTHBERT	GA	 
	2410	NEW
    ALBANY, MS	126
    MAIN ST W	NEW
    ALBANY	MS	 
	1538	EAST
    DUBLIN, GA	705
    CENTRAL DR	EAST
    DUBLIN	GA	 
	2360	MCKENZIE,
    TN	87
    MAIN ST S	MC
    KENZIE	TN	 
	2445	NATCHEZ,
    MS	31
    SGT PRENTISS DR	NATCHEZ	MS	 
	1715	GUIN,
    AL	7250
    US HIGHWAY 43	GUIN	AL	 
	1188	BURKESVILLE,
    KY	260
    KEEN ST	BURKESVILLE	KY	 
	1865	HARRISBURG,
    AR	1301
    N ILLINOIS ST	HARRISBURG	AR	 
	3280	PELZER,
    SC	297
    SC-20	WILLIAMSTON	SC	 
	2178	PHENIX
    CITY, AL	3920
    US HIGHWAY 80 W	PHENIX
    CITY	AL	 
	1753	GREENWOOD,
    MS	2616
    HIGHWAY 82 E	GREENWOOD	MS	 
	2750	RED
    BAY, AL	525
    4TH AVE SE	RED
    BAY	AL	 
	2870	SALTILLO,
    MS	111
    WILLOW CREEK RD	SALTILLO	MS	 
	1415	DAWSON,
    GA	839
    FORRESTER DR SE	DAWSON	GA	 
	1198	BYRON,
    GA	214
    US HWY 49	BYRON	GA	 
	1125	BAY
    SPRINGS, MS	2675
    HIGHWAY 15	BAY
    SPRINGS	MS	 
	2650	PINE
    BLUFF, AR	2809
    S CAMDEN RD	PINE
    BLUFF	AR	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	2330	MARKED
    TREE, AR	103
    DAWSON ST	MARKED
    TREE	AR	 
	2255	MONTEAGLE,
    TN	750
    W MAIN ST	MONTEAGLE	TN	 
	1220	CARTHAGE,
    MS	300
    S PEARL ST	CARTHAGE	MS	 
	1113	ANDREWS,
    SC	311
    E MAIN ST	ANDREWS	SC	 
	2743	RAINBOW
    CITY, AL	110
    SUTTON SQ	RAINBOW
    CITY	AL	 
	2210	LOUISVILLE,
    MS	2115
    S CHURCH AVE	LOUISVILLE	MS	 
	1043	ALMA,
    GA	104
    WILLIAMS ST	ALMA	GA	 
	1055	ANDREWS,
    NC	118
    MAIN ST	ANDREWS	NC	 
	2995	SYLVESTER,
    GA	204
    E KELLY ST	SYLVESTER	GA	 
	1873	GREENSBORO,
    GA	203
    N MAIN ST	GREENSBORO	GA	 
	2148	LAKE
    PARK, GA	365
    LAKES BLVD	LAKE
    PARK	GA	 
	3078	STERLINGTON,
    LA	1320
    HIGHWAY 2	STERLINGTON	LA	 
	2590	PIKEVILLE,
    TN	327
    MAIN ST	PIKEVILLE	TN	 
	2098	BYHALIA,
    MS	15
    STONEWALL RD	BYHALIA	MS	 
	2895	SUMRALL,
    MS	4233
    ROCKY BRANCH RD	SUMRALL	MS	 
	1158	BAYOU
    LA BATRE, AL	13210
    N WINTZELL AVE	BAYOU
    LA BATRE	AL	 
	1210	CANTON,
    MS	229
    N UNION ST	CANTON	MS	 
	2053	JACKSON,
    MS	6230
    OLD CANTON RD	JACKSON	MS	 
	1918	HOGANSVILLE,
    GA	2001
    BAILEY	HOGANSVILLE	GA	 
	1080	BUTLER,
    AL	307
    N MULBERRY AVE	BUTLER	AL	 
	2035	JASPER,
    AL	280
    HIGHWAY 78 W	JASPER	AL	 
	3205	WASHINGTON,
    GA	923
    N BYPASS E	WASHINGTON	GA	 
	1825	HAUGHTON,
    LA	1075
    HIGHWAY 80	HAUGHTON	LA	 
	1700	FLORA,
    MS	101
    MANSKER DR	FLORA	MS	 
	2378	MONTICELLO,
    FL	1150
    N JEFFERSON ST	MONTICELLO	FL	 
	2185	LIVINGSTON,
    TN	890
    OVERTON PLZ	LIVINGSTON	TN	 
	2640	PONTOTOC,
    MS	170
    HIGHWAY 15 N	PONTOTOC	MS	 
	3020	TUNICA,
    MS	1038
    US 61	TUNICA	MS	 
	2265	MANILA,
    AR	801
    HWY 77	MANILA	AR	 
	2873	SHELBY,
    NC	1528
    S LAFAYETTE ST	SHELBY	NC	 
	1160	BELZONI,
    MS	520
    N HAYDEN ST	BELZONI	MS	 
	3010	TIPTONVILLE,
    TN	730
    EVERETT ST	TIPTONVILLE	TN	 
	1900	HALEYVILLE,
    AL	916
    21ST ST	HALEYVILLE	AL	 
	1328	COMMERCE,
    GA	185
    S ELM ST	COMMERCE	GA	 
	1348	CARTHAGE,
    NC	102
    MCREYNOLDS ST	CARTHAGE	NC	 
	1273	COLUMBUS,
    GA	1900
    AUBURN AVE	COLUMBUS	GA	 
	3370	WRENS,
    GA	605
    N MAIN ST	WRENS	GA	 
	2105	KINGSTREE,
    SC	480
    NELSON BLVD	KINGSTREE	SC	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	1027	ABBEVILLE,
    SC	763
    HIGHWAY 28 BYP STE 22	ABBEVILLE	SC	 
	3250	WESTMORELAND,
    TN	5634
    AUSTIN PEAY HWY	WESTMORELAND	TN	 
	1503	ALAMO,
    TN	1200
    W CHURCH ST	ALAMO	TN	 
	1915	HEFLIN,
    AL	731
    ROSS ST	HEFLIN	AL	 
	3073	STATESBORO,
    GA	2974
    NORTHSIDE DR WEST	STATESBORO	GA	 
	2717	MARKS,
    MS	1098
    MARTIN LUTHER KING DR	Marks	MS	 
	1495	CHICKAMAUGA,
    GA	93
    BETTY DR	CHICKAMAUGA	GA	 
	1588	BALDWYN,
    MS	441
    N 4TH ST	BALDWYN	MS	 
	1233	ADAIRSVILLE,
    GA	5132
    JOE FRANK HARRIS PKWY NW	ADAIRSVILLE	GA	 
	2513	MOODY,
    AL	1001
    CROSSROADS PLAZA DR	MOODY	AL	 
	1703	GREENWOOD,
    SC	2544
    HIGHWAY 25 S	GREENWOOD	SC	 
	2958	SOCIAL
    CIRCLE, GA	1567
    N CHEROKEE RD	SOCIAL
    CIRCLE	GA	 
	2485	LEAKESVILLE,
    MS	951
    MAIN STREET	LEAKESVILLE	MS	 
	2213	LOUISVILLE,
    GA	119
    US 1 BY-PASS	LOUISVILLE	GA	 
	2440	NASHVILLE,
    AR	614
    S MAIN ST	NASHVILLE	AR	 
	3040	TRENTON,
    GA	11858
    S. MAIN ST.	TRENTON	GA	 
	1375	CLANTON,
    AL	300
    PARK PLZ	CLANTON	AL	 
	2953	SOUTHAVEN,
    MS	710
    CHURCH ROAD	SOUTHAVEN	MS	 
	2123	KINDER,
    LA	715
    1ST AVE	KINDER	LA	 
	2090	BOSSIER
    CITY, LA	5590
    BARKSDALE BLVD	BOSSIER
    CITY	LA	 
	2438	LINCOLN,
    AL	47950
    US HIGHWAY 78	LINCOLN	AL	 
	1928	DEKALB,
    MS	14916
    HIGHWAY 16 W	DE
    KALB	MS	 
	3175	VERNON,
    AL	9574
    HWY-18	VERNON	AL	 
	2073	HAUGHTON,
    LA	400
    W MCKINLEY AVE	HAUGHTON	LA	 
	1998	HOMER,
    LA	902
    W MAIN ST	HOMER	LA	 
	1363	COLUMBIANA,
    AL	21665
    HIGHWAY 25	COLUMBIANA	AL	 
	1083	ALEXANDRIA,
    AL	120
    SPRING BRANCH RD	ALEXANDRIA	AL	 
	2348	MCLEANSBORO,
    IL	213
    W RANDOLPH ST	MC
    LEANSBORO	IL	 
	1560	EVERGREEN,
    AL	450
    WEST FRONT ST.	EVERGREEN	AL	 
	2475	MAYNARDVILLE,
    TN	3561
    MAYNARDVILLE HWY	MAYNARDVILLE	TN	 
	1248	CLARKESVILLE,
    GA	200
    E LOUISE ST	CLARKESVILLE	GA	 
	2670	PRENTISS,
    MS	105
    S COLUMBIA AVE	PRENTISS	MS	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	1953	LIVINGSTON,
    AL	720
    N WASHINGTON ST	LIVINGSTON	AL	 
	2468	NETTLETON,
    MS	7122
    WILL ROBBINS HWY	NETTLETON	MS	 
	2130	LAVONIA,
    GA	11747
    AUGUSTA RD	LAVONIA	GA	 
	1355	CAMDEN,
    AL	24
    CAMDEN BYP	CAMDEN	AL	 
	1640	FULTON,
    MS	1409
    S ADAMS ST	FULTON	MS	 
	1343	CANTON,
    NC	70
    NEW CLYDE HWY	CANTON	NC	 
	2128	LEXINGTON,
    GA	718
    ATHENS RD	LEXINGTON	GA	 
	1920	INDIANOLA,
    MS	210
    HIGHWAY 82 W	INDIANOLA	MS	 
	2665	PITTSBURG,
    TX	113
    N GREER BLVD	PITTSBURG	TX	 
	2572	SOPERTON,
    GA	4269
    W MAIN ST	SOPERTON	GA	 
	3410	YELLVILLE,
    AR	320
    HIGHWAY 14 S	YELLVILLE	AR	 
	1930	HEPHZIBAH,
    GA	2872
    TOBACCO RD	HEPHZIBAH	GA	 
	6025	EUTAW,
    AL (GD&D)	206
    GREENSBORO AVE	EUTAW	AL	 
	1235	CENTREVILLE,
    MS	456
    HIGHWAY 24 E	CENTREVILLE	MS	 
	3053	TAYLORSVILLE,
    MS	402
    PINE ST	TAYLORSVILLE	MS	 
	2320	MONTEZUMA,
    GA	201
    WALNUT STREET	MONTEZUMA	GA	 
	2280	MARIANNA,
    AR	438
    S ALABAMA ST	MARIANNA	AR	 
	1420	DEQUEEN,
    AR	808
    W COLLIN RAYE DR	DE
    QUEEN	AR	 
	1883	HAWKINS,
    TX	850
    N BEAULAH ST	HAWKINS	TX	 
	1323	BUNKIE,
    LA	109
    CHEVY LN	BUNKIE	LA	 
	2753	REFORM,
    AL	609
    1ST AVE W	REFORM	AL	 
	3178	VILONIA,
    AR	10
    EAGLE ST	VILONIA	AR	 
	2613	PELAHATCHIE,
    MS	404 SECOND
    STREET	PELAHATCHIE	MS	 
	3083	SOUTHAVEN,
    MS	2110
    GOODMAN RD (@ TCHULAHOMA)	SOUTHAVEN	MS	 
	2165	LAFAYETTE,
    GA	303
    W PATTON ST	LA
    FAYETTE	GA	 
	2425	NASHVILLE,
    GA	719
    S DAVIS ST	NASHVILLE	GA	 
	1713	GEORGIANA,
    AL	685
    HWY 106 WEST	GEORGIANA	AL	 
	2780	ROLLING
    FORK, MS	901
    US 61	ROLLING
    FORK	MS	 
	2175	LEXINGTON,
    MS	301
    YAZOO ST	LEXINGTON	MS	 
	3070	TYLERTOWN,
    MS	3000
    PIKE 93 N	TYLERTOWN	MS	 
	1880	HOLIDAY
    ISLAND, AR	2
    FOREST PARK DR	HOLIDAY
    ISLAND	AR	 
	1660	BRINKLEY,
    AR	1131
    NORH CHARLYNE	BRINKLEY	AR	 
	1385	CLARKSVILLE,
    AR	409
    W MAIN ST	CLARKSVILLE	AR	 
	2925	SHERIDAN,
    AR	624
    S ROCK ST	SHERIDAN	AR	 
	2598	MEMPHIS,
    TN	1290
    LAMAR AVE	MEMPHIS	TN	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	2850	RIPLEY,
    MS	706
    CITY AVE N	RIPLEY	MS	 
	1510	EASTMAN,
    GA	103
    FOURTH AVE	EASTMAN	GA	 
	3220	WHITE
    BLUFF, TN	4928
    HIGHWAY 70 E	WHITE
    BLUFF	TN	 
	6021	SULLIGENT,
    AL (GD&D)	5705
    HWY 278	SULLIGENT	AL	 
	6015	MIDDLETON,
    TN (GD&D)	700
    S. MAIN STREET	MIDDLETON	TN	 
	2150	LORETTO,
    TN	534
    N MILITARY ST	LORETTO	TN	 
	2550	OAKLAND
    CITY, IN	1310
    W MORTON ST	OAKLAND
    CITY	IN	 
	1663	ALBANY,
    KY	800
    N CROSS ST	ALBANY	KY	 
	2533	OKOLONA,
    MS	511
    W MONROE AVENUE	OKOLONA	MS	 
	3245	WEST
    HELENA, AR	826
    N SEBASTIAN	WEST
    HELENA	AR	 
	1060	ACKERMAN,
    MS	318
    N ALFORD	ACKERMAN	MS	 
	2788	RINGGOLD,
    LA	2866
    BIENVILLE RD	RINGGOLD	LA	 
	2430	NEWTON,
    MS	304
    NORTHSIDE DR	NEWTON	MS	 
	3368	WOODVILLE,
    MS	211
    U.S. HWY 61 SOUTH	WOODVILLE	MS	 
	1723	GREENFIELD,
    TN	1207
    S MERIDIAN ST	GREENFIELD	TN	 
	1155	BOONEVILLE,
    MS	504
    N 2ND ST	BOONEVILLE	MS	 
	2460	NORTH
    CROSSETT, AR	1164
    HIGHWAY 133 N	CROSSETT	AR	 
	1910	IUKA,
    MS	615
    BATTLEGROUND DR	IUKA	MS	 
	1320	CAMDEN,
    TN	195
    HIGHWAY 641 N	CAMDEN	TN	 
	1935	FERRIDAY,
    LA	2094
    EE WALLACE BLVD N	FERRIDAY	LA	 
	1490	DRESDEN,
    TN	8487
    HIGHWAY 22	DRESDEN	TN	 
	1893	HOUSTON,
    MS	905
    N PONTOTOC ST	HOUSTON	MS	 
	2748	RICHTON,
    MS	403
    FRONT ST	RICHTON	MS	 
	1165	BOLIVAR,
    TN	105
    TENNESSEE ST	BOLIVAR	TN	 
	2490	MT.
    VERNON, GA	601
    MASON ST	MOUNT
    VERNON	GA	 
	1760	HAYNESVILLE,
    LA	9270
    HIGHWAY 79	HAYNESVILLE	LA	 
	1805	HEBER
    SPRINGS, AR	308
    S 7TH ST	HEBER
    SPRINGS	AR	 
	2260	MORRILTON,
    AR	601
    N ST JOSEPH	MORRILTON	AR	 
	2243	MACON,
    MS	59
    FRONTAGE RD	MACON	MS	 
	3235	WIGGINS,
    MS	116
    2ND STREET SOUTH	WIGGINS	MS	 
	1095	BALD
    KNOB, AR	170
    HIGHWAY 167 N	BALD
    KNOB	AR	 
	1638	DEMOPOLIS,
    AL	505
    HWY 80 W	DEMOPOLIS	AL	 
	1683	CHURCH
    POINT, LA	821
    S MAIN ST	CHURCH
    POINT	LA	 
	1907	HAMBURG,
    AR	700
    N MAIN ST	HAMBURG	AR	 

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	1570	FAIRVIEW,
    TN	2415
    FAIRVIEW BLVD	FAIRVIEW	TN	 
	1305	CALHOUN
    CITY, MS	71
    HIGHWAY 8 E	CALHOUN
    CITY	MS	 
	2687	DEQUINCY,
    LA	702
    WEST 4TH STREET	DEQUINCY	LA	 
	2110	KOSCIUSKO,
    MS	340
    HIGHWAY 12 W	KOSCIUSKO	MS	 
	2083	CHEROKEE
    VILLAGE, AR	200
    HOSPITAL DRIVE	CHEROKEE
    VILLAGE	AR	 
	2473	MANTACHIE,
    MS	67
    WATSON DR	MANTACHIE	MS	 
	1525	EUNICE,
    LA	2200
    W LAUREL AVE	EUNICE	LA	 
	6027	TOMKINSVILLE,
    KY (GD&D)	509
    NORTH MAIN STREET	TOMPKINSVILLE	KY	 
	1470	DURANT,
    MS	33674
    HIGHWAY 12	DURANT	MS	 
	2890	SPRINGHILL,
    LA	1190
    S ARKANSAS ST. 	SPRINGHILL	LA	 
	2723	KERSHAW,
    SC	405
    SOUTH HAMPTON STREET	KERSHAW	SC	 
	1085	BEEBE,
    AR	901
    W DEWITT HENRY DR	BEEBE	AR	 
	2697	MANSFIELD,
    LA	400
    WASHINGTON AVE	MANSFIELD	LA	 
	2727	KENTWOOD,
    LA	717
    AVE G	KENTWOOD	LA	 
	2725	MONTEREY,
    TN	101
    WEST COMMERCIAL AVE.	MONTEREY	TN	 
	3568	FAYETTE,
    AL	1128
    SECOND AVE. NE	FAYETTE	AL	Yes
	3578	BOLIVAR,
    TN	600
    NUCKOLLS RD.	BOLIVAR	TN	Yes
	3601	VINTON,
    LA	1301
    HORRIDGE STREET	VINTON	LA	Yes
	3603	TUNICA,
    MS	1068
    HWY 61 N.	TUNICA	MS	Yes
	3637	HALEYVILLE,
    AL	814
    20TH ST	HALEYVILLE	AL	Yes
	3650	HEIDELBERG,
    MS	100
    MAIN ST	HEIDELBERG	MS	Yes
	3700	HAMILTON,
    AL	1360
    MILITARY STREET S	HAMILTON	AL	Yes
	3723	IOWA,
    LA	510
    N. THOMSON AVE.	IOWA	LA	Yes
	3725	MORGANTOWN,
    KY	211
    SOUTH MAIN STREET	MORGANTOWN	KY	Yes
	3737	LEWISPORT,
    KY	1590
    4TH STREET	LEWISPORT	KY	Yes
	3811	SYLVESTER,
    GA	620
    E. FRANKLIN STREET #A	SYLVESTER	GA	Yes
	3815	MCRAE,
    GA	112
    W. OAK STREET	MCRAE	GA	Yes
	3860	SAINT
    JOSEPH, LA	320
    PLANK RD	SAINT
    JOSEPH	LA	Yes
	3885	RIPLEY,
    TN	251
    S WASHINGTON ST	RIPLEY	TN	Yes
	3903	SUMMERVILLE,
    GA	103
    HWY 48	SUMMERVILLE	GA	Yes
	3917	SCOTTS
    HILL, TN	640
    HWY 114 SOUTH	SCOTTS
    HILL	TN	Yes
	3920	UNION,
    MS	801
    E JACKSON RD	UNION	MS	Yes

 

     

     

    

 

	Store
    #	Location	Address	City	State	Xpress
    location
	3923	GREENSBURG,
    LA	6216
    HIGHWAY 10	GREENSBURG	LA	Yes
	3925	VARDAMAN,
    MS	101
    W SWEET POTATO ST	VARDAMAN	MS	Yes
	3937	WARE
    SHOALS, SC	743
    N GREENWOOD AVE	WARE
    SHOALS	SC	Yes
	3957	LAKE
    PROVIDENCE, LA	303
    N. HOOD STREET	LAKE
    PROVIDENCE	LA	Yes
	3963	TRYON,
    NC	38
    N. TRADE STREET	TRYON	NC	Yes
	3230	WINNFIELD,
    LA	2001
    W COURT ST	WINNFIELD	LA	Yes
	3965	IDABEL,
    OK	810
    SE WASHINGTON ST.	IDABEL	OK	Yes

 

     

     

    

 

SCHEDULE
1

 

Commitments

 

	Lender

         
	Revolving
    Commitment
	Regions
        Bank

         
	$75,000,000.00
	Bank
of America, N.A. 
	$75,000,000.00Exhibit 10.1

    

    

    

    
      May 7, 2019

      

      

      Todd Mitchell

      Park City, UT and New York, NY

      

      

      
        	
                Re:

              	
                Employment with RiceBran Technologies

              

      

      

      

      Dear Todd:

      

      

      On behalf of RiceBran Technologies (the "Company"), I am pleased to offer you employment with the Company effective as soon as
          possible, but no later than June 3, 2019.  The terms and conditions of your employment will be formalized in an Employment Agreement that will include the
          following:

      

      

      Position and Duties.

      

      

      You will immediately serve as Executive Vice-President and will assume the role of Chief Financial Officer of the Company no later than July 1, 2019; and
          will perform duties consistent with this position.  You will report to the Chief Executive Officer and the Chairman of the Audit Committee of the Company’s Board of Directors. The Company has adopted an Employee Manual and other general policies,
          rules and plans (collectively the “Manual and Rules”). You will be responsible to comply with the Manual and Rules, as in effect from time to time, that are applicable to the Company’s executive-level officers.

      

      

      Compensation.

      

      

      (a)  Base Salary and Bonus.  The base salary
          for your services will be $235,000 per year (the "Base Salary").  You will be eligible for an annual bonus of up to 45% of your Base Salary subject to the achievement of corporate and individual performance metrics established by the Company.
          This Base Salary and annual bonus will be payable pursuant to the Company’s standard payroll policies and subject to applicable tax withholding and other legal requirements.

      

      

      (b)  Incentive Stock Option Grant.  You will
          be granted an option (“Option”) to acquire 75,000 shares of the Company’s Common Stock pursuant to the terms of the Company’s Equity Incentive Plan (“Plan”) and the associated the Option Agreement dated on or about the same date as your
          Employment Agreement. The Option will vest over a four year period commencing on the first date of your employment (with 25% vesting on the one year anniversary of your employment and the balance vesting on an equal monthly basis, 1/36 each
          month, over the remaining 36 months, provided that you must remain employed by the Company in order to accrue and vest your rights to exercise the Option). All of the terms and conditions of the Option will be as provided in the Option Agreement
          and Plan.

       

      

      (c) Long Term Incentive
          Plan and Restricted Stock Units. You also will be entitled to participate in the Company’s discretionary (i) Management Incentive Plan (MIP) which will provide for additional equity-based compensation grants with a value of up to 45% of
        your Base Salary, and (ii) the Company’s restricted stock unit (“RSU”) awareds that are part of the Omnibus Incentive Plan (OIP), which will comprise an initial grant to you of 125,000 RSU’s. All of the terms and conditions of the MIP and OIP
        awards will be as provided in the Company LTIP and RSU agreements (as well as the Plan) as adopted by the Compensation Committee of the RBT Board and as in effective each year during your employment.

       

        

      
        2

        
          

        
          May 7, 2019

          Page 2

        

      

      
      (d)  Vacation; Sick Leave.  You will be
          entitled to accrue vacation and sick leave benefits, in accordance with the Company's standard policies pursuant to the terms of the Manual and Rules established by the Company and as in effect from time to time.

      

      

      (e)  Benefit Plans.  You will be entitled to
          participate in any standard health and other benefit plans established by the Company and as in effect from time to time.

      

      

      (f)   Employee Expenses.  The Company will
          reimburse you for pre-approved ordinary and necessary business expenses (approved by the Chief Executive Officer), as provided within the guidelines of the Company’s expense policy.   All expenses shall be subject to review and approval and
          require reasonable documentation.

       

        

      
        (g)   Relocation
              and Moving Expenses. The Company will provide you a $10,000 payment to cover relocation and moving expenses, to be paid within 30 days following execution of the contemplated employed agreement.

         

      

      

      Full Efforts; Outside Activities.

       

          

      You will agree to devote substantially all of your business time, attention, abilities, skill, labor, and best efforts to the business of the Company
          during your employment.  While you render services to the Company, you will not engage in other employment, consulting or other business, but may engage in charitable activities and community affairs, and manage personal investments and affairs
          so long as such activities, either individually or in the aggregate, do not materially interfere with the proper performance of your duties and responsibilities. In addition, while you render services to the Company, you will not engage in any
          activity or business or assist any person or entity in a business that competes with the Company.  In addition, during the term of your employment and for a period of two years thereafter, you will agree not to take any action to induce any
          employees, contractors, customers, suppliers or vendors of the Company to sever their relationship with the Company.

       

        

      At‐Will Employment.

      

      

      
        Your employment with the Company will be at‐will may be terminated with or without cause and with or without notice at any time at the will of either you or the
          Company. You will be entitled to 90 days severance pay if you are terminated by the Company without Cause or if you terminate for Good Reason, as such terms will be defined in your Employment Agreement. The terms and conditions of employment with
          the Company may be modified from time to time by the Company in a manner consistent with your status.

      

      

      

      Confidential Information and Invention Assignment Agreement.

      

      

      As a condition to your employment with the Company, you will enter into the Company's standard Proprietary Information and Inventions Agreement and will
          abide by its terms.

      

      

      
        
          

        
          May 7, 2019

          Page 3

        

      

      Conditions.

       

          

      This offer, and employment pursuant this offer, is conditioned on the following:

       

        

      (a)       Eligibility for Employment.  You must provide the requisite documentation to prove you are eligible to work in the United States.

       

        

      (b)      Execution of Employee Agreements.  You will sign an Employment Agreement with the Company the terms of which will be consistent with the terms of this
          letter and that will include an arbitration provision. You will also sign the Company’s Proprietary Information and Inventions Agreement.

       

        

      (c)       No Restrictions on Employment.  You must not be subject to any obligation, contractual or otherwise, that prevents or restricts you from becoming employed as contemplated in this letter,
          creates any potential or actual conflict of interest, or places the Company at risk of liability in connection with your employment.

       

        

      (d)      No Use of Confidential Information Belonging to Others.  You will agree not to disclose, import or use any confidential or proprietary information belonging to any other
          person or entity in connection with your employment. (You must not take or use the proprietary information of any former employer in your employment.)

       

        

      [Signatures to Follow]

       

        

      
        
          

        
          May 7, 2019

          Page 4

        

      

      
        We are very happy to extend this offer of employment to you and hope that you choose to accept it.  If the offer is acceptable to you, please sign and date it below on
          the enclosed copy, and return it to me by Friday, May 10, 2019.  It is the intent of the parties that this letter will be superseded and replaced in its entirety by an Employment Agreement and the Company’s Proprietary Information and Inventions
          Agreement that will incorporate the terms and conditions set forth above.

      

       

        

      Sincerely,

      

      

      RiceBran Technologies

      

      

      	
              By:

            	/s/ Brent Rystrom	 
	 	
              Brent Rystrom,

            	 
	 	
              Chief Executive Officer

            

      

      

      	
              Agreed to and Accepted:

            
	/s/ Todd Mitchell

            	 
	
              Todd Mitchell

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]