Document:

exv10w1

 

Exhibit 10.1

Limited Liability Company Merger

and

Equity Reallocation Agreement

     This Limited Liability Company Equity Reallocation Agreement (“Agreement”) is entered into as
of July 15, 2007 among those members and officers as listed in Exhibit A.

     In consideration of the mutual promises made and for other good and valuable consideration,
the parties agree as follows:

	1.	 	Definitions

     For purposes of this Agreement, the following terms will have the indicated definitions:

     “Agreement.” This Limited Liability Company Agreement by and between the Members and Officers.

     “Bankruptcy.” A bankruptcy will be deemed to occur when the LLC files a petition in
bankruptcy, voluntarily takes any advantage of any bankruptcy or insolvency law, is adjudicated a
bankrupt, or, if a petition or an answer is filed proposing the adjudication of the LLC as a
bankrupt, its officers consent to the filing or does not object within 60 days of the filing,
unless the petition or answer was discharged or denied prior. “Bankruptcy” includes chapter
proceedings under the federal bankruptcy or receivership laws and any comparable proceedings under
state law, or any compromise, settlement, composition, workout, or similar arrangement with
creditors, whether or not court supervised.

     “Capital.” Initial equity capital, additional and recontributed capital, and receipts from the
sale, exchange, or other disposition of LLC property out of the ordinary course of business and any
proceeds of financing and refinancing.

     “Cosmerich.” Short for “cosmetic lifestyle enrichment”, Cosmerich refers to an emerging market
that at the moment is difficult to limit, as it includes such enterprises as spas, resorts, cruise
ships, hair salons, barber shops, nail salons, beauty supply stores and more.

     “Loss.” The LLC’s loss arising from the ordinary day-to-day operation of the LLC’s business.

     “Net cash receipts.” All receipts of the LLC net of the items listed in Section 12 and
distributed to the Members and/or Officers.

     “Officers.” Equity-holding Officers who participate in the daily operation of the LLC.

     “Members.” Equity holders who do not participate in the daily operation of the LLC.

     “LLC.” This Limited Liability Company.

     “Percentage Participation.” The interest of a Member or Officer in the capital, profit or
loss, and net cash receipts of the LLC.

     “Profit.” Net operating receipts derived from the operation of the business, sales in the
ordinary course of business, and receipts from related services and facilities.

Agreement

	2.	 	Formation. This Limited Liability Company is formed pursuant to the laws of the State of
Florida.
	 
	3.	 	Name. The name of the LLC is Innovative Medical & Dental Solutions, LLC, AKA IMDS, LLC. The
LLC may conduct its business under any other names that the Officers select.

 

 

	4.	 	Purposes. The purposes of the LLC are the development, sourcing, finding and creating of
products for the practice of medicine and/or dentistry as well as those for the enhancement of
personal grooming and appearance in the spa, personal care, grooming and specialty retail
market spaces, and to carry out the activities that are essential, advisable, or appropriate
in connection with, or incidental to, such business.
	 
	5.	 	Principal Office. The principal office of the LLC will be located at 45 West Crossville Road
Suite 514, Roswell, GA 30075 USA or any other place designated by the Officers.
	 
	6.	 	Merger of and Reallocation of Shares of Existing LLCs. IMDS, LLC is a going concern and is
registered with the Secretary of State of Florida as an LLC and with the Secretary of State of
California as a foreign corporation authorized to operate in California. It is merging with
White Science World Wide, LLC, a limited liability company organized under the laws of the
State of Georgia. The merged companies will operate as a single entity as IMDS, LLC, a Florida
Limited Liability Company.
	 
	7.	 	Member Status and Equity Share in Merged Company
	 
	7.1	 	The Members and Officers hold equity shares in the reformed LLC as follows:

	 	 	 	 	 	 	 
	Member or Officer	 	Equity Share	 	 	Status
	George Nelson
	 	 	42	%	 	Officer
	Ron Topper
	 	 	20	%	 	Officer
	Irwin Zucker
	 	 	10	%	 	Officer
	Remedent NV
	 	 	10	%	 	Member
	Stephen Ross
	 	 	5	%	 	Member
	Allan Rubenstein
	 	 	2	%	 	Member
	Roy Hart
	 	 	1	%	 	Member
	Investor Group (Members
listed in Exhibit B)
	 	 	10	%	 	Member

	7.2	 	If additional capital is needed and is solicited as an equity-allocating investment, new
investor shares shall come only from the equity shares of George Nelson and Ron Topper.
	 
	7.3	 	Loans to the LLC by the Members or Officers will bear such rate of interest as is agreed upon
when the loan is made, but if agreement cannot be reached between the lenders and the
Officers, the interest rate will be the lowest rate of interest allowed by law. These loans by
the Members or Officers will be repaid by agreement, but before any capital is distributed to
the Members or Officers.
	 
	8	 	Accountings, Carryover of Debt, Royalties and Working Capital
	 
	8.1	 	Unpaid or deferred salary shall remain as a bonafide payable to be dispersed to employees as
determined by the Officers.
	 
	8.2	 	Monies loaned to the LLC by Members shall be repaid within 60 days of this agreement. Members
may waive repayment and continue to accrue interest, if agreed to in writing by the member and
Officers.
	 
	8.3	 	Monies loaned to the LLC by Officers shall be repaid prior to the declaration of dividends or
bonuses to Members or Officers.
	 
	8.4	 	Monies payable to vendors repaid prior to the declaration of dividends or bonuses to Members
or Officers. Dividends or bonuses shall not be declared on funds necessary to meet trade
payables, but on excess cash flow and profits only.
	 
	8.5	 	All payable items on the books of IMDS, LLC shall remain a bonafide payable of the reformed
LLC. Repayment and negotiation of payables shall be the responsibility of George Nelson and
Ron Topper as an executive committee.
	 
	8.6	 	Royalty payments to investors shall be accelerated through a 50% increase in the royalty rate
until initial investments have been repaid.

 

 

	8.7	 	Working capital retained in both firms shall be pooled under the supervision of a Certified
Public Accountant for disbursements consistent with this agreement and accepted accounting
practices.
	 
	8.8	 	IMDS, LLC and White Science World Wide will provide copies of their current accountings to a
Certified Public Accountant, agreed to mutually, as well as to each other. Such copies may be
on paper or electronic.
	 
	8.9	 	White Science World Wide will pay amounts to creditors listed in Exhibit A as a condition of
closing this agreement.
	 
	9	 	Officers’ Salaries, Allocation of Profits and Performance Bonuses
	 
	9.1	 	Salaries. Officers’ salaries will be reviewed annually. Minimum salaries will be paid until
positive cash flow is maintained for a minimum of three months. For the current year, officers
will receive monthly minimum to maximum salaries as follows:

	 	 	 	 	 	 	 	 	 
	Officer	 	Minimum Monthly Salary	 	Maximum Monthly Salary
	George Nelson
	 	$	6,000	 	 	$	10,000	 
	Ron Topper
	 	$	6,000	 	 	$	10,000	 
	Irwin Zucker
	 	$	6,000	 	 	$	10,000	 

	9.2	 	If the LLC operates at a taxable profit or has taxable gain, the net cash receipts
distributed to a Member or Officer are composed of both ordinary income and capital gains,
each Member or Officer participating in the distribution of net cash receipts, will be deemed
to participate according to the ratio that the net cash receipts distributed to him vis a vis
that item, bears to the total of all net cash receipts distributed and attributable to such
item.
	 
	9.3	 	Whenever the Officers vote on day-to-day operational issues, the following percentage
participation’s will apply:

	 	 	 	 	 
	Officers	 	Percentage Participation
	George Nelson
	 	 	331/3	%
	Ron Topper
	 	 	331/3	%
	Irwin Zucker
	 	 	331/3	%
	Total
	 	 	100	%

	9.4	 	Performance bonuses. Officers, as individuals who contribute to the daily success of the
business through their personal efforts, shall be incentivized through performance-based
bonuses. Such bonuses shall be based on certain sales and profit targets being achieved, such
targets to be determined, and shall be independent of net earnings or division of income to
equity holders. However, no performance bonuses shall be paid unless all trade payables and
investor royalties are current and sufficient cash reserves are available to maintain positive
cash flow and there is no debt other than a bank working capital line of credit.
	 
	9.5	 	Division of earnings. All equity holders shall be entitled to share of profits. However, no
division of earnings shall be made until initial capital raised through royalty-bearing
investments have been repaid and royalty levels revert to minimum levels. Additionally, no
such division of earnings shall be paid unless all trade payables and investor royalties are
current and sufficient cash reserves are available to maintain positive cash flow and there is
no debt other than a bank working capital line of credit.
	 
	9.	 	Powers of Officers
	 
	9.1	 	The Officers will possess all of the general powers and rights of a Officers under the LLC
law prevalent in the State of Florida including the power, in the Officers’ absolute
discretion and on behalf of the LLC, to:
	 
	9.1.1	 	Sell, assign, convey, or transfer title to any portion of the LLC’s real and personal property;

 

 

	9.1.2	 	Lease the LLC’s real or personal property;
	 
	9.1.3	 	Borrow money for the LLC;
	 
	9.1.4	 	Prepay, refinance, increase, or otherwise modify any mortgages affecting the LLC’s real or personal property;
	 
	9.1.5	 	Employ on fair terms and proper compensation persons, including Members and Officers, to
operate and manage the LLC’s affairs, including real and personal property;
	 
	9.1.6	 	Set aside LLC capital or other funds for payment of past, current, and future liabilities of
the LLC;
	 
	9.1.7	 	Unless otherwise provided, determine whether items of income, gain, loss, etc. will be
treated as capital or extraordinary, or, alternatively, as profit or loss;
	 
	9.1.8	 	Select and open LLC bank accounts;
	 
	9.1.9	 	Retain an independent Public Accounting Firm to keep and audit books of accounts. These
books will be open to reasonable inspection and examination by the Members and their
representatives;
	 
	9.1.10	 	Oversee the LLC’s accountants who will prepare monthly, quarterly and annual financial
reports. The Officers will promptly deliver to the Members reports of operations.
	 
	9.1.11	 	Execute, acknowledge, and deliver any and all instruments to effectuate any of the foregoing
powers.
	 
	9.2	 	Remedent has first rights to purchase equity. No Officer will offer for sale any of his
equity other than as an inducement to raise investment capital for the running of the business
unless he first offers that equity to Remedent, NV. Should Remedent, NV or its authorized
agents decline to purchase the equity, then the Officer shall be free to sell or trade his
equity as he sees fit.
	 
	9.3	 	Each Member irrevocably constitutes and appoints the Officers his true and lawful attorney to
make, execute, acknowledge, and file in his name, place, and stead:
	 
	9.3.1	 	A Certificate of Limited Liability Company under applicable laws;
	 
	9.3.2	 	Any certificate or other instrument, including registrations or filings concerning the use
of fictitious names and filings under the federal and state Securities Acts that may be
required;
	 
	9.3.3	 	Documents required to effectuate the dissolution and termination of the LLC; and
	 
	9.3.4	 	Amendments and modifications of the instruments described above.
	 
	10.	 	Services and Limitations of Officers
	 
	10.1	 	The Officers will devote whatever time and effort may be necessary or appropriate to the
business and affairs of the LLC.
	 
	10.2	 	The Officers are authorized to manage the LLC’s assets and operations for a reasonable
salary. When dealing with any other person or entity in which an Officer has a financial
interest, the Officer is required to deal with that party upon terms equal to, or better than,
those obtainable in the marketplace from unrelated parties.
	 
	10.3	 	The Officers expressly acknowledges that the attorney, the accountant, and other professional
advisors for the LLC will represent the LLC and all Officers, and expressly waives any claim
of privilege or defense founded on any alleged professional-client relationship based upon the
fact that the Officers engaged them for this LLC.

 

 

	10.4	 	The Officers may not engage in new businesses which are in conflict with or competitive to
IMDS or Remedent. Any such business opportunities shall be operated through IMDS.
	 
	11.	 	Limitations of Members. No Members will take any part in the conduct of the business or
control of the assets or have any right or authority to act for or bind the LLC without the
express written authorization of a majority of the Officers. Members will not become liable as
a General Members nor will he be liable to creditors of the LLC. No interest will be due,
paid, or payable on capital contributions.
	 
	12.	 	Disbursements and Distributions
	 
	12.1	 	The cash receipts from operations, profits, income items, factored receivables, and other
funds, resulting from refinancing, sales, exchanges, roll-overs of LLC assets, and other
dealings, that are earned or received by the LLC will be disbursed and distributed as follows:
	 
	12.1.1	 	On behalf of the LLC, in payment or as reserves for all expenses, charges, and costs and for
all indebtedness including royalties in accordance with the provisions and terms in this
Agreement.
	 
	12.1.2	 	All cash receipts not required for the payments or reserves provided for in Section 12.1.1
will be disbursed by the Officers to the Members according to their percentage
participation’s, as allocated in Section 7.1.
	 
	13.	 	Exchange of Equity for Distribution Rights, Development Assets. Remedent, NV will receive ten
percent (10%) equity in the reformed IMDS, LLC as consideration for the following:
	 
	13.1	 	Remedent, NV, which currently supplies various products to IMDS, has developed an advanced
technology intended to replace the technology currently being marketed by IMDS, LLC as
“SpaWhite” and “SolarWhite.” This development is valued currently at $300,000 (USD). In
consideration of the above inducements and equity, Remedent, NV will transfer ownership of
this new technology to the LLC for exclusive manufacturing and sales world wide.
	 
	13.2	 	Remedent, NV further grants to LLC first right of refusal to exclusive distribution rights
for all products developed or sourced by Remedent which are suitable for the cosmerich
markets, such exclusivity extending to North America. Additionally, the LLC shall not be
barred from selling any such items in any market on a non-exclusive basis on a case-by-case
basis where no distribution agreement exists between Remedent and a local distributor.
	 
	14	 	Additional distribution rights granted to Remedent, NV. In addition to the quid detailed in
Section 13, LLC grants to Remedent NV:
	 
	14.1	 	Rights to sell the product known as “White Ice” in various forms in markets not served by
IMDS, LLC;
	 
	14.2	 	Rights to purchase at standard cost the DayLight 5K whitening light and its accessories and
to sell such lights in markets not served by the LLC;
	 
	15.	 	Assistance with Legal Support. Remedent will make available its corporate counsel and other
legal assets to the LLC for the purposes of defending LLC’s rights to trade in markets where
it may be challenged by local governments or other legal or quasi-legal bodies who allege that
sale, dispensing or use of LLC’s products by LLC, its agents or customers constitutes the
illegal practice of dentistry. Remedent will also provide legal support to identify and remedy
the sale of any of its products which conflict with the exclusivity arrangement in Section
13.8 and Section 14.
	 
	16.	 	Other Interests of a Member or Officer. Any Member or Officer may engage or possess interests
in other business ventures of every nature and description, independently or with others.
Neither the LLC nor any Member or Officer will have any right to any independent ventures of
any other Member or Officer, or to the income or profits derived from them. Any dealings
between the LLC and the Officers or any of its affiliates will be conducted by the Officers
upon the terms and in a manner that will be fair and reasonable to the interests of the LLC
and the Members.
	 
	18.	 	Limitation of Liability of Officers

 

 

	18.1	 	The Officers will not be personally liable to the Members for the return of capital
contributions, the repayment of the purchase price for a percentage participation by the
Members, the repayment of any loans or advances to the LLC by the Members, or the payment of
interest.
	 
	18.2	 	The Officers will not be liable to any Member for any act, omission, or decision that did not
constitute a breach of this Agreement or that was in good faith and without intent to defraud.
The Officers will be held harmless against loss, damages, or liability as Officers only to the
extent that the assets are not applied to the creditors of the LLC.
	 
	19.	 	Waiver, Amendment, Modification. No waiver, amendment or modification, including those by
custom, usage of trade, or course of dealing, of any provision of this Agreement will be
effective unless in writing and signed by the Officers. No waiver by any party of any default
in performance by the other party under this Agreement or of any breach or series of breaches
by the other party of any of the terms or conditions of this Agreement will constitute a
waiver of any subsequent default in performance under this Agreement or any subsequent breach
of any terms or conditions of that Agreement. Performance of any obligation required of a
party under this Agreement may be waived only by a written waiver signed by a duly authorized
officer of the other party, that waiver will be effective only with respect to the specific
obligation described in that waiver.
	 
	20.	 	Settlement of Disputes
	 
	20.1	 	Each party acknowledges and agrees that, if there is any breach of this Agreement, including,
without limitation, unauthorized use or disclosure of Confidential Information or other
information of the other party, the non-breaching party will suffer irreparable injury that
cannot be compensated by money damages and therefore will not have an adequate remedy at law.
Accordingly, if either party institutes an action or proceeding to enforce the provisions of
this Agreement, such party will be entitled to obtain such injunctive relief, specific
performance, or other equitable remedy from a court of competent jurisdiction as may be
necessary or appropriate to prevent or curtail any such breach, threatened or actual. These
will be in addition to and without prejudice to such other rights as such party may have in
law or in equity.
	 
	20.2	 	Any dispute, controversy, or claim arising out of or related to this Agreement, or the
creation, validity, interpretation, breach, or termination of this Agreement will be referred
to mediation before, and as a condition precedent to, the initiation of any adjudicative
action or proceeding, including arbitration. The mediation will be held in Atlanta, Georgia.
Either party may demand mediation in writing, serving on the other party a statement of the
dispute, controversy, or claim, and the facts relating to it, in reasonable detail.
Furthermore, if within thirty (30) days after such demand, the parties have not agreed upon a
mediator and commenced mediation, the matter will be referred to arbitration under Section
20.3. Furthermore, if, within forty-five (45) days after such demand the matter has not been
resolved to the satisfaction of both parties, then the matter will be referred to arbitration
under Section 20.3.
	 
	20.3	 	Any dispute, controversy, or claim arising out of or related to this Agreement, or the
creation, validity, interpretation, breach, or termination of this Agreement that has not been
resolved amicably among the parties by mediation under Section 20.2 will be submitted to
binding arbitration using the following procedure:
	 
	20.3.1	 	The arbitration will be held in Atlanta, Georgia, before a panel of three arbitrators.
Either party may demand arbitration in writing, serving on the other party a statement of the
dispute, controversy, or claim, and the facts relating to it, in reasonable detail, and the
arbitrator nominated by that party.
	 
	20.3.2	 	Within thirty (30) days after such demand, the other party will name its arbitrate, and the
two arbitrators named by the parties will, within ten (10) days, select a third arbitrator.
	 
	20.3.3	 	The arbitration will be governed by the Commercial Arbitration Rules of the American
Arbitration Association (the “AAA”), except as expressly provided in this Agreement. The
arbitration will be administered by the AAA. The arbitrators may not amend or disregard any
provision of this section.
	 
	20.3.4	 	The expenses of arbitration will be borne by the party against whom the decision is
rendered, or apportioned in accordance with the decision of the arbitrators if there is a
compromise decision. Judgment upon any award may be entered in any court

 

 

	 	 	of competent jurisdiction. All notices from one party to the other relating to any
arbitration under this Agreement will be in writing and will be effective if given in
accordance with Section 24 below.

	21.	 	Governing Law and Construction. This Agreement will be governed by the laws of the State of
Florida applicable to agreements made and fully performed in Florida by Florida residents.
Arbitration and any disputes not determined by arbitrators will be heard in the appropriate
general and state courts in Fulton County, Georgia. The substantial prevailing party in any
suit will be entitled to reimbursement of reasonable costs and fees from the other party to
such action.
	 
	22.	 	Entire Agreement. The parties acknowledge that this Agreement expresses their entire
understanding and agreement, and that there have been no warranties, representations,
covenants or understandings made by either party to the other except such as are expressly set
forth in this section. The parties further acknowledge that this Agreement supersedes,
terminates and otherwise renders null and void any and all prior agreements or contracts,
whether written or oral, entered into between the Officers and the Members with respect to the
matters expressly set forth in this Agreement.
	 
	23.	 	Compliance With Law. Both parties agree to comply with all applicable federal, state, and
local laws and regulations in performing their duties.
	 
	24.	 	Notices. All notices, demands or consents required or permitted under this Agreement will be
in writing and will be delivered, sent by facsimile or mailed certified return receipt
requested to the Partners at the addresses set forth in the Certificate of Limited LLC, as
amended from time to time. Any notice required or permitted to be given by the provisions of
this Agreement will be conclusively deemed to have been received on the day it is delivered to
that party by facsimile or by U.S. Mail with acknowledgment of receipt or by any commercial
courier providing equivalent acknowledgment of receipt.
	 
	25.	 	Benefits. Except as otherwise specifically provided, this Agreement will be binding upon and
inure to the benefit of the parties hereto and their personal representatives and assigns.

     Captions and section headings used in this Agreement are for convenience only and are not a
part of this Agreement and will not be used in construing it.

     We have carefully reviewed this contract and agree to and accept its terms and conditions. We
are executing this Agreement as of the day and year first written above.

	 	 	 
	 

	 	 
	/s / George Nelson
	 	 
	 
	 	 
	George Nelson,

President, IMDS, LLC
	 	 
	 
	 	 
	/s/ Ron Topper
	 	 
	 
	 	 
	Ron Topper

National Sales Director, Consumer Products
	 	 
	 
	 	 
	/s/ Irwin Zucker
	 	 
	 
	 	 
	Irwin Zucker

Chief Operating Officer
	 	 
	 
	 	 
	/s/ Guy de Vreese
	 	 
	 
	 	 
	Guy de Vreese, Chairman, Remedent NV

Memberexv10w1

 

   

Exhibit 10.1

WAIVER AND AMENDMENT No. 1

TO CREDIT AGREEMENT

     WAIVER AND AMENDMENT No. 1, dated as of November 26, 2007 (the “Amendment”), to the
Credit Agreement referred to below by and among The Talbots, Inc., a corporation duly organized and
validly existing under the laws of the State of Delaware (the “Borrower”), the lenders from
time to time party thereto (each a “Lender” and collectively, the “Lenders”), and
Mizuho Corporate Bank, Ltd., a corporation organized and existing under the laws of Japan
(“Mizuho”), as arranger and administrative agent for the Lenders (in such capacities,
the “Agent”).

     WHEREAS, the Borrower, the Agent and the Lenders are parties to the Credit Agreement dated as
of July 24, 2006 (the “Credit Agreement”), pursuant to which the Lenders have made term
loans (collectively, the “Term Loans”) to the Borrower in the aggregate principal amount of
the Total Term Loan Commitment (as defined in the Credit Agreement) set forth therein;

     WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement to, among
other things, modify (i) the Leverage Ratio covenant set forth in Section 4.2(a) of the Credit
Agreement and (ii) the Fixed Charge Coverage Ratio covenant set forth in Sections 4.2(c) of the
Credit Agreement; and

     WHEREAS, the Lenders are willing to so amend the Credit Agreement, subject to the payment of
certain fees and the other terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the parties hereto hereby agree as follows:

     1. Definitions; Amendments.

          (a) Any capitalized term used herein and not defined shall have the meaning assigned to it in
the Credit Agreement.

          (b) Section 4.2(a) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     “(a) Leverage Ratio. Permit the Leverage Ratio of the Borrower and its
Subsidiaries as of the last day of any period of (A) four consecutive fiscal
quarters ending after July 24, 2006 and on or prior to the fourth fiscal quarter
2006, to exceed 2.50 to 1, (B) four consecutive fiscal quarters ending with the
first fiscal quarter 2007, to exceed 2.57 to 1, (C) four consecutive fiscal quarters
ending with the second fiscal quarter 2007, to exceed 2.50 to 1, and (D) four
consecutive fiscal

 

 

quarters ending on a date set forth below to exceed the applicable ratio set forth
below opposite such date:

	 	 	 
	Fiscal Quarter End	 	Leverage Ratio                      
	Third fiscal quarter 2007 through fourth fiscal quarter 2008
	 	4.00 to 1.00
	 
	First fiscal quarter 2009 through fourth fiscal quarter 2009
	 	3.50 to 1.00
	 
	First fiscal quarter 2010 and each fiscal quarter thereafter
	 	3.00 to 1.00

          (c) Section 4.2(c) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     “ Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio
of the Borrower and its Subsidiaries as of the last day of any period of four
consecutive fiscal quarters (A) ending after July 24, 2006 and on or prior to August
4, 2007, to be less than 1.60 to 1.0 and (B) ending on a date set forth below to be
less than the applicable ratio set forth below opposite such date:

	 	 	 
	Fiscal Quarter End	 	Fixed Charge Coverage Ratio
	Third fiscal quarter 2007 through
fourth fiscal quarter 2008
	 	1.25 to 1.00
	 
	First fiscal quarter 2009 through
fourth fiscal quarter 2009
	 	1.40 to 1.00
	 
	First fiscal quarter 2010 and each
fiscal quarter thereafter
	 	1.60 to 1.00

     2. Conditions to Effectiveness. This Amendment shall become effective as of November
26, 2007 (the “Amendment Effective Date”), only upon satisfaction in full, in a manner
reasonably satisfactory to the Agent, of the following conditions precedent:

          (a) The representations and warranties of the Borrower contained herein, in Section 3 of the
Credit Agreement and in each other Loan Document, certificate or other writing delivered to the
Agent or the Lenders pursuant hereto or thereto on or prior to the Amendment Effective Date shall
be true and correct in all material respects on and as of the Amendment Effective Date as though
made on and as of such date; and no Default or Event of Default that is not expressly waived by the
Agent pursuant to this Amendment shall have

-2-

 

occurred and be continuing on the Amendment Effective Date or would result from this Amendment
becoming effective in accordance with its terms.

          (b) The Agent shall have executed this Amendment and shall have received counterparts to this
Amendment which bear the signature of the Borrower and the Required Lenders.

          (c) On or prior to the Amendment Effective Date, the Borrower shall have paid to the Agent for
the account of each Lender that has duly executed and delivered a copy of this Amendment to the
Agent on or prior to November 23, 2007, a non-refundable amendment fee (the “Amendment
Fee”) equal to 0.075% of the Term Loan of such Lender, which shall be deemed fully earned when
paid.

          (d) All legal matters incident to this Amendment shall be satisfactory to the Agent and its
counsel.

     3. Representations and Warranties. The Borrower hereby represents and warrants to the
Agent as follows:

          (a) Representations and Warranties; No Event of Default. The representations and
warranties of the Borrower herein and in Section 3 of the Credit Agreement and in each other Loan
Document, certificate or other writing delivered to the Agent or the Lenders pursuant hereto or
thereto on or prior to the date hereof are true and correct in all material respects on and as of
the date hereof as though made on and as of such date; and no Default or Event of Default that is
not expressly waived by the Agent pursuant to this Amendment has occurred and is continuing on the
date hereof or would result from this Amendment becoming effective in accordance with its terms.

          (b) Organization of Borrower. The Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware.

          (c) Power and Authority. The Borrower has all requisite corporate power and authority
to carry on its present business, to own its property and assets and to execute and deliver this
Amendment, and perform it obligations under this Amendment, the Credit Agreement, as amended by
this Amendment, and each other Loan Document to which it is a party. The Borrower is duly
qualified or licensed as a foreign corporation authorized to conduct its activities and is in good
standing in all jurisdictions in which the character of the properties owned or leased by it or the
nature of the activities conducted makes such qualification or licensing necessary, except where
the failure to be so qualified or licensed would not be reasonably likely to result in a Material
Adverse Effect.

          (d) Authorization of Borrowing. All appropriate and necessary corporate, shareholder
and other actions and approvals have been taken or obtained by the Borrower to authorize the
execution and delivery of this Amendment and to authorize the performance and observance of the
terms of this Amendment, the Credit Agreement, as amended hereby, and other Loan Documents.

-3-

 

          (e) Agreement Binding; No Conflicts. Each of this Amendment, the Credit Agreement, as
amended hereby, and each other Loan Document constitutes the legal, valid and binding obligations
of the Borrower or its Subsidiaries, as the case may be, enforceable against the Borrower or such
Subsidiaries in accordance with their respective terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting enforcement of
creditors’ rights generally, and by general principles of equity (regardless of whether enforcement
is considered in a proceeding at law or equity).

          (f) No Conflicts. The execution and delivery of this Amendment and the performance of
this Amendment, the Credit Agreement, as amended hereby, and each other Loan Document which the
Borrower and its Subsidiaries are parties will not (i) violate or conflict with (A) any provisions
of law or any order, rule, directive or regulation of any court or other Governmental Authority,
(B) the charter, by-laws or other organizational documents of the Borrower or such Subsidiary or
(C) except as would not be reasonably likely to result in a Material Adverse Effect, any agreement,
document or instrument to which the Borrower or any such Subsidiary is a party or by which its
respective assets or properties are bound, (ii) except as would not be reasonably likely to result
in a Material Adverse Effect, constitute a default or an event or circumstance that with the giving
of notice or the passing of time, or both, would constitute a default under any such agreement,
document or instrument, (iii) except as would not be reasonably likely to result in a Material
Adverse Effect, result in the creation or imposition of any Lien, charge or encumbrance of any
nature whatsoever upon any assets or properties of the Borrower or any such Subsidiary, or (iv)
except as would not be reasonably likely to result in a Material Adverse Effect, result in any
suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization
or approval applicable to its respective operations or any of its properties.

          (g) Compliance with Law. There does not exist any conflict with, or violation, or
breach of, any law or any regulation, order, writ, injunction or decree of any court or
governmental instrumentality, which conflict, violation or breach could reasonably be expected to
result in a Material Adverse Effect.

     4. Indemnity and Expenses.

          (a) The Borrower hereby agrees to indemnify the Agent, the Lenders and their respective
employees, agents, members and affiliates from and against any and all claims, losses and
liabilities growing out of or resulting from this Amendment; provided, however, that the Borrower
shall not have any obligation to any Person under this subsection (a) for any such claims, losses
or liabilities caused by the gross negligence or willful misconduct of such Person, as determined
by a final nonappealable judgment of a court of competent jurisdiction.

          (b) The Borrower hereby agrees to pay to the Agent upon demand the amount of any and all costs
and expenses, including the reasonable fees, disbursements and other client charges of the Agent’s
counsel, which the Agent may incur in connection with this Amendment.

-4-

 

     5. Continued Effectiveness of Credit Agreement. The Borrower hereby confirms and
agrees that each Loan Document to which it is a party is, and shall continue to be, in full force
and effect and is hereby ratified and confirmed in all respects except that on and after the
Amendment Effective Date all references in any such Loan Document to “the Credit Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the Credit Agreement shall
mean the Credit Agreement as amended by this Amendment. Except as expressly provided herein, the
execution, delivery and effectiveness of this Amendment shall not operate as an amendment or waiver
of any right, power or remedy of the Agent or the Lenders under the Credit Agreement or any other
Loan Document, nor constitute an amendment or waiver of any provision of the Credit Agreement or
any other Loan Document.

     6. Miscellaneous.

          (a) This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement.

          (b) Section and paragraph headings herein are included for convenience of reference only and
shall not constitute a part of this Amendment for any other purpose.

          (c) This Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.

          (d) The Borrower hereby acknowledges and agrees that this Amendment constitutes a “Loan
Document” under the Credit Agreement.

-5-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	THE TALBOTS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Edward L. Larsen	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Edward L. Larsen	 	 
	 

	 	 	 	Title:
	 	Senior Vice President, Finance,

Chief Financial Officer and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in: Hingham, MA	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Keiji Takada	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Keiji Takada	 	 
	 

	 	 	 	Title:
	 	Deputy General Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in: New York, USA	 	 

-6-

 

	 	 	 	 	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Masahiko Ohara	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Masahiko Ohara	 	 
	 

	 	 	 	Title:
	 	 Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE NORINCHUKIN BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Noritsugu Sato	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Noritsugu Sato	 	 
	 

	 	 	 	Title:
	 	 General Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	New York	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Ryoichi Shinke	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ryoichi Shinke	 	 
	 

	 	 	 	Title:
	 	 Senior Vice President & Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ James A. Knight	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James A. Knight	 	 
	 

	 	 	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	New York	 	 

-7-

 

	 	 	 	 	 	 	 	 	 
	 	 	SHINSEI BANK LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MITSUBISHI UFJ TRUST
AND BANKING CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Koichi Higuchi	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Koichi Higuchi	 	 
	 

	 	 	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	New York	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE CHUO MITSUI TRUST AND
BANKING COMPANY, LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE SHIZUOKA BANK, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Masahiko Nagakura	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Masahiko Nagakura	 	 
	 

	 	 	 	Title:
	 	General Manager of Los
Angeles
Branch	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	Los Angeles U.S.A	 	 

-8-

 

	 	 	 	 	 	 	 	 	 
	 	 	THE CHIBA BANK LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	By:	 	/s/ Morio Tsumita	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Morio Tsumita	 	 
	 

	 	 	 	Title:
	 	General Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	New York	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SHINKIN CENTRAL BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE HACHIJUNI BANK, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	/s/	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	Tokyo	 	 
	 
	 	 	 	 	 	 	 	 

-9-

 

	 	 	 	 	 	 	 	 	 
	 	 	THE HIROSHIMA BANK, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	/s/	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF YOKOHAMA, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	/s/	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF IWATE, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signed in:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

-10-

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