Document:

(PAGE NUMBERS REFER TO PAPER DOCUMENT ONLY)

EXHIBIT 10.86

CPI CORP.

  RESTRICTED STOCK PLAN

(As Amended and Restated Effective as of April 14, 2005 )

                Section 1.   Establishment and Purpose

                1.1
       Establishment. CPI Corp. hereby establishes a stock incentive plan for key employees and non-employee directors,
as described herein, which shall be known as THE CPI CORP. RESTRICTED STOCK PLAN (hereinafter referred
to as the “Plan”). The Plan was originally effective as of February 7, 1988 and was previously
amended and restated effective as of February 3, 1991; April 2, 1992 and January 16, 1995 and amended
as of July 22, 2004. The changes made in the Plan as amended and restated herein are effective as
of April 14, 2005.

                1.2        Purpose. The purpose of this Plan is to enable the Corporation to retain and motivate non-employee directors
and key employees who have provided valuable service, and to encourage stock ownership by such non-employee
directors and key employees by providing them with a means to acquire a proprietary interest or to
increase such interest in the success of the Corporation under the terms and conditions of, and in
the manner contemplated by, this Plan.

                Section 2.   Definitions

                2.1        Definitions. Whenever used herein, the following terms shall have the meanings set forth below:

	 

		(a)	“Board” means the Board of Directors of CPI Corp.

		 	 
		(b)	A “Change of Control” means a change in control of a nature that would be required to be
  reported in response to Item 5.01 of the Current Report on Form 8-K, as in effect on the date hereof,
  pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange
  Act”) or would have been required to be so reported but for the fact that such event had been
“previously reported” as that term is defined in Rule 12b-2 of Regulation 12B of the Exchange
  Act unless the transactions that give rise to the change of control are approved or ratified by a
  majority of the members of the Incumbent Board ; provided that, without limitation, notwithstanding
  anything herein to the contrary, a change in control shall be deemed to have occurred if (i) any
  Person is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly
  or indirectly, of securities of CPI Corp. representing 40% or more of the combined voting power of
  CPI Corp.’s then outstanding securities ordinarily (apart from rights accruing under special
  circumstances) having the right to vote at elections of directors (“Voting Securities”),
  (ii) individuals who constitute the Incumbent Board cease for any reason to constitute at least
  a majority thereof, or (iii) the stockholders of CPI Corp. approve a reorganization, merger
  or consolidation with respect to which persons who were the stockholders of CPI Corp. immediately
  prior to such reorganization, merger or consolidation do not, immediately thereafter, own, directly
  or indirectly, more than 50% of the combined voting power entitled to vote generally in the election
  of directors of the reorganized, merged or consolidated corporation’s then outstanding voting
  securities, or a liquidation or dissolution of CPI Corp. or of the sale of all or substantially all
  of the assets of CPI Corp. For purposes of this Plan, the term “Person” shall mean and
  include any individual, corporation, partnership, group, association or other “person,” as
  such term is used in Section 14(d) of the Exchange Act, other than the Corporation or any employee
  benefit plan(s) sponsored or maintained by the Corporation.

			 
		(c)	“Committee” means the Compensation Committee of the Board, consisting of three or 

	

	 	more members of the Board.
		 

		(d)	“Corporation” means CPI Corp., a Delaware corporation, as well as any subsidiary or other
  entity fifty percent (50%) or more of the outstanding equity interest of which is owned, directly
  or indirectly, by CPI Corp.

			

		(e)	“Distribution Date” means the date on which the Stock granted pursuant to the Plan shall
  become freely transferable pursuant to the determination of the Committee under Section 7.3 or pursuant
  to Section 9 or Section 14.

			

		(f)	“Employee” means any person employed by the Corporation on a full-time, salaried basis.

			

		(g)	“Fair Market Value” means CPI Corp.’s closing stock price on the New York Stock Exchange,
  as reported in the Wall Street Journal, for the trading day immediately preceding the Distribution Date of the Stock referred to in Section
  15.1.

			

		(h)	“Incumbent Board” means the individuals who constitute the Board on the effective date of
  the Plan As Amended and Restated on April 14, 2005; provided that any person becoming a director
  subsequent to the date hereof whose election, or nomination for election by CPI Corp.’s shareholders,
  was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board
  (either by a specific vote or by approval of the proxy statement of CPI Corp. in which such person
  is named as a nominee for director, without objection to such nomination) shall, for purposes of
  this Plan, be deemed a member of the Incumbent Board.

			

		(i)	“Normal Retirement” means an employee’s or non-employee director’s voluntary or
  involuntary termination of employment with the Corporation on or after attainment of age sixty-five
  (65).

			 

		(j)	“Performance Unit” means a component of a long-term incentive. 

		 	

		(k)	“Participant” means an employee or non-employee director designated by the Committee to participate
  in the Plan.

		 	

		(l)	“Stock” means the common stock of CPI Corp.

	 
	
                                

                2.2        Gender and Number. Except when otherwise indicated by the context, words in the masculine gender when used in this Plan
shall also include the feminine and neuter genders, the singular shall include the plural, and the
plural shall include the singular.

                Section 3. Eligibility and Participation

                3.1        Eligibility and Participation. Participants shall be limited to (a) employees who, by means of their positions, functions, or responsibility
levels have a direct impact on the Corporation’s earnings or profitable performance, as
determined by the appropriate unit head, with approval of the Chief Operating Officer and (b) non-employee
directors.

                Section 4.   Administration

                4.1        Administration. The Committee shall be responsible for the administration of the Plan. The Committee, by majority
thereof, is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations
relating to the Plan, provide for conditions and assurances deemed necessary or advisable to protect
the interests of the Corporation, and to make all other determinations necessary or advisable for
the administration of the Plan, but only to the extent not contrary to the express provisions of
the Plan. Determinations, interpretations, or other actions made or taken by the Committee pursuant
to the provisions of the Plan shall be final, binding and conclusive for all purposes and upon all
persons whomsoever.

                Section 5.   Stock Subject to the Plan

                5.1        Number. The total number of shares of Stock that may be granted under the Plan may not exceed 

	

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350,000 shares of common stock of CPI Corp., subject to adjustment as provided in Section 5.3. Those
shares may consist, in whole or in part, of authorized but unissued Stock or shares of Stock reacquired
by CPI Corp., including shares purchased in the open market, not reserved for any other purpose.

                5.2           Forfeited Stock. In the event any shares of Stock subject to grants made under the Plan are forfeited by the Participant
pursuant to this Plan, such forfeited shares again shall become available for issuance under the
Plan.

                5.3           Adjustments in Capitalization. In the event of any change in the outstanding shares of Stock of CPI Corp. by reason of a stock dividend,
stock split, recapitalization, merger, consolidation, combination, or exchange of shares or other
similar corporate change, the aggregate number of shares of Stock issuable under this Plan shall
be appropriately adjusted by the Committee, whose determination shall be conclusive, to prevent dilution
or enlargement of the Participants’ potential Stock interests in relation to other holders of
the Corporation’s common stock. In such event, the Committee shall also make such appropriate
adjustments in the number and type of shares subject to restricted Stock grants then outstanding
under the Plan pursuant to the terms of such grants or otherwise.

                Section 6.   Duration of the Plan

                6.1           Duration of the Plan. Subject to the Board’s right to earlier terminate the Plan pursuant to Section 13.1 hereof,
the Plan shall remain in effect until all Stock subject to it shall have been acquired by Participants
pursuant to the provisions hereof and shall have been released from restrictions pursuant to Section
7.3, Section 9, or Section 14.1 hereof. Notwithstanding the foregoing, no Stock or Performance Units
may be granted under the Plan after twenty (20) years from the Plan’s effective date.

                Section 7.   Restricted Stock

                7.1           Grant of Restricted Stock. The Committee, at any time and from time to time, may grant shares of restricted Stock under the
Plan to such employees as may be recommended to the Committee by the Chief Executive Officer or the
Chief Operating Officer of the Corporation and to non-employee directors. 

                7.2           Transferability. Except as contemplated by Section 10.2 hereof, the shares of restricted Stock granted may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated as long as the Corporation
has the right to reacquire the shares as provided in this Plan.

                7.3           Removal of Restrictions. Except as otherwise provided in Sections 9.1, 9.2, and 14.1, shares of restricted Stock covered by
each restricted Stock grant made under this Plan shall become freely transferable by the Participant
after such period or periods of time, and upon satisfaction of such other conditions, as is specified
by the Committee in its sole discretion at the time of such grant or otherwise in accordance with
the provisions of this Plan.

                7.4           Other Restrictions. The Committee shall impose such other restrictions on any shares granted pursuant to this Plan as
it may deem advisable including, without limitation, restrictions under applicable federal laws,
under the requirements of any stock exchange upon which such shares or shares of the same class are
then listed, and under any blue sky or securities laws applicable to such shares. The Committee,
if it deems it appropriate, may condition the grant of any award under the Plan, or the delivery
of shares pursuant to such award, upon receipt of an appropriate investment representation from the
recipient thereof. The Corporation, in its discretion, may postpone the issuance and delivery of
shares pursuant to the Plan until completion of registration or other qualification of the shares
under any state or federal law, rule, or regulation as the Corporation may consider appropriate.
The Corporation may further require any Participant or other person receiving stock under the Plan
to make such representations and furnish such information as it may consider appropriate in connection
with the issuance of the shares in compliance with applicable law.

	

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                7.5           Delivery of Stock. The restricted shares of Stock so granted shall be held by the Corporation or its nominee until the
Distribution Date, at which time such shares shall be delivered to the Participant or his designated
beneficiary.

                7.6           Voting Rights. Participants shall have full voting rights on those restricted shares of Stock granted.

                7.7           Dividend Rights. Participants granted shares of restricted Stock hereunder shall have full dividend rights, with such
dividends being paid currently or, at the discretion of the Committee, accumulated until the Distribution
Date or until forfeiture of such shares pursuant to the Plan. If all or part of a dividend is paid
in shares, the shares shall be subject to the same restrictions on transferability as the restricted
shares that are the basis for the dividend.

                Section 8.   Performance Units.

                8.1           Awards. Subject to the terms of the Plan,
the Committee shall designate the participants to whom Performance Units are to be awarded and shall
determine the number of units and the terms and conditions of each award of Performance Units. Assuming
Performance Criteria and other conditions established by the Compensation Committee are met, the
Performance Units will be converted to common stock of the Company. The number of shares awarded
for each Performance Unit will be determined by the Committee and may be adjusted by the Committee
based on comparison of actual performance to Performance Criteria and other terms and conditions
specified by the Committee.  

                8.2
           Performance Criteria. Awards of Restricted Stock or Performance Units under the Plan may be made subject to the attainment
of performance goals relating to one or more business criteria within the meaning of Section 162(m)
of the Internal Revenue Code, including, but not limited to, cash flow; cost; ratio of debt to debt
plus equity; profit before tax; earnings before interest and taxes; earnings before interest, taxes,
depreciation and amortization; earnings per share; operating earnings; economic value added; ratio
of operating earnings to capital spending; free cash flow; net profit; net sales; price of Company
stock; return on net assets, equity or stockholders’ equity; market share; or total return to
stockholders (“Performance Criteria”). Any Performance Criteria may be used to measure
the performance of the Company as a whole or any business unit of the Company. Any Performance Criteria
may include or exclude Extraordinary Items. “Extraordinary Items” shall mean (i) extraordinary,
unusual and/or nonrecurring items of gain or loss, (ii) gains or losses on the disposition of a business,
(iii) the impact of changes in tax or accounting regulations or laws, or (iv) the effect of a merger or acquisition. 

                8.3           Calculation of Performance Criteria. Performance Criteria shall be calculated
in accordance with the Company’s financial statements, generally accepted accounting principles,
or under a methodology established by the Committee prior to the issuance of an award which is consistently
applied and identified in the audited financial statements, including footnotes, or the Management
Discussion and Analysis section of the Company’s annual report. 

                Section 9.   Termination of Employment

                9.1           Termination of Employment or Board Service Due to Death, Disability, or Normal Retirement. In the event that a Participant granted restricted shares hereunder terminates his employment with
the Corporation or his service on the Board of Directors because of Normal Retirement, any uncompleted
portion of a time period restriction, as set forth in Section 7.3, shall automatically be waived
by the Committee. The shares thereby released from the time period restriction shall be thereafter
freely transferable by the Participant. In the event a Participant granted restricted shares hereunder
terminates his employment with the Corporation or his service on the Board of Directors because of
early retirement, or because of death or permanent and total disability prior to Normal Retirement,
the Committee may, in its sole discretion, waive the restrictions remaining on any or all such shares.

	

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                9.2           Termination of Employment for Reasons Other Than Death, Disability, or Normal Retirement. In the event that a Participant terminates, voluntarily or involuntarily, his employment with the
Corporation or his service on the Board of Directors prior to the removal of restrictions on shares
of restricted Stock as specified in Section 7.3, if such termination is for any reason other than
those set forth in Section 9.1 hereof, then any shares still subject to restrictions at the date
of such termination shall be forfeited automatically; provided, however, that in the event of an
involuntary termination of a Participant, the Committee may, in its sole discretion, waive the automatic
forfeiture of any or all shares still subject to restriction and may add such new restrictions to
those shares as it deems appropriate.

                Section 10.   Rights of Participants

                10.1         Employment. Nothing in this Plan or in any award of restricted Stock or Performance Units hereunder shall interfere
with or limit in any way the right of the Corporation to terminate any employee’s or Participant’s
employment or change his compensation at any time, nor confer upon any employee or Participant any
right to continue in the employ of the Corporation.

                10.2         Nontransferability of Performance Units and Restricted Stock. No Performance Units or shares of restricted Stock granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, otherwise than by will or by the laws
of descent and distribution, until the termination of the applicable period or periods of restriction.
All rights granted to a Participant under the Plan shall be exercisable during his lifetime only
by such Participant, or his guardians or legal representatives. Upon the death of a Participant,
his legal representative or beneficiary may exercise his rights under the Plan.

                Section 11.   Beneficiary Designation

                11.1         Beneficiary Designation. Each Participant in the Plan may, from time to time, name any beneficiary or beneficiaries (who may
be named contingently or successively) to whom any benefit under the Plan is to be paid in case of
his death before he receives any or all of such benefit. Each designation will revoke all prior designations
by the same Participant, shall be in a form prescribed by the Committee, and will be effective only
when filed by the Participant in writing with the Committee during his lifetime. In the absence of
any such designation, benefits remaining unpaid at the Participant’s death shall be paid to
his estate, subject to the terms of the Plan.

                Section 12.   Facility of Payment

                12.1         Facility of Payment. When a Participant entitled to benefits under the Plan is under legal disability, or, in the Committee’s
opinion, is in any way incapacitated so as to be unable to manage his financial affairs, the Committee
may direct the Corporation to pay the benefits to such Participant’s legal representative, or
to a relative of such Participant for such Participant’s benefit, or the Committee may direct
the application of such benefits for the benefit of such Participant. Any payment made in accordance
with this Section shall be a full and complete discharge of any liability for such payment under
the Plan.

                Section 13.   Amendment and Termination

                13.1         Amendment and Termination. The Board, upon recommendation of the Committee, at any time may terminate, and at any time and from
time to time and in any respect, may amend or modify the Plan; provided, however, that the Board
shall not modify Section 14 in a manner that would adversely affect the rights of Participants and
shall not modify any other provision in any manner adversely affecting any award of restricted Stock
theretofore granted under the Plan without the consent of the Participant.

	

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                Section 14.   Change of Control

                14.1         Change of Control. In the event of a Change of Control, all restrictions shall lapse on shares of restricted Stock granted
under the Plan and such shares shall become freely transferable. Upon a Change of Control such shares
shall immediately be delivered to the Participants or their designated beneficiaries.

                If
rights to dividends with respect to restricted Stock have been accumulated pursuant to Section 7.7,
such dividends shall be paid within ninety (90) days after a Change of Control.

                Section 15.   Tax Withholding and Reporting

                15.1         Tax Withholding. The Corporation, as appropriate, shall have the right to deduct from all payments under the Plan
any federal, state, or local taxes required by law to be withheld with respect to such payments.
In the case of awards paid in Stock, the Participant or other person receiving such Stock may be
required to pay to the Corporation, as appropriate, the amount of any such taxes which the Corporation
is required to withhold with respect to such Stock; provided, however, that upon the request of such
Participant or other person, in lieu of such payment the Corporation may (but shall not be required
to) retain from the Stock to be distributed to him under the Plan that number of shares (based on
the Fair Market Value of the Stock) that would satisfy the withholding taxes due, and pay such withholding
taxes in cash.

                15.2         Tax Reporting. The Participant or other person receiving an award of stock hereunder shall report to the Corporation
in writing the time and manner in which such Participant or other person elects to recognize income
from or by virtue of such award for federal income tax purposes, promptly after the making of such
election.

                Section 16.   Indemnification

                16.1         Indemnification. Each person who is or shall have been a member of the Committee or the Board shall be indemnified
and held harmless by the Corporation from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by him in connection with any claim, action, suit, or proceeding to which
he may be a party by reason of any action taken or failure to act under the Plan. The foregoing right
of indemnification shall not be exclusive of any other rights of indemnification to which such persons
may be entitled under the Corporation’s Articles of Incorporation or Bylaws, as a matter of
law, by contract, or otherwise, or any power that the Corporation may have to indemnify them or hold
them harmless.

                Section 17.   Governing Law

                17.1         Governing Law. The Plan, and all grants and other documents delivered hereunder, shall be construed in accordance
with and governed by the laws of the State of Missouri, to the extent that such laws are not preempted
by the laws of the United States of America.

                Section 18.   Expenses of Plan

                18.1         Expenses of Plan. The expenses of administering the Plan shall be borne by the Corporation.

	

6(PAGE NUMBERS REFER TO PAPER DOCUMENT ONLY)

EXHIBIT 10.87

CREDIT AGREEMENT

dated as of April 15, 2005

among

CPI CORP.
as the Company

THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,
as Lenders,

and

LASALLE BANK NATIONAL ASSOCIATION,
as Administrative Agent

LASALLE BANK NATIONAL ASSOCIATION,
as Arranger

	

		
	 
	TABLE OF CONTENTS 
	 	 	 	 
	SECTION 1	 	DEFINITIONS	1
	 	 	 	 
	1.1    	 	Definitions	1
	1.2    	 	Other Interpretive Provisions	17
	 	 	 
	SECTION 2	 	COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION
	 	 	AND LETTER OF CREDIT PROCEDURES	18
	 	 	 	 
	2.1    	 	Commitments	18
	 	 	2.1.1      Revolving Loan Commitment	18
	 	 	2.1.2      L/C Commitment	18
	2.2    	 	Loan Procedures	18
	 	 	2.2.1      Various Types of Loans	18
	 	 	2.2.2      Borrowing Procedures	19
	 	 	2.2.3      Conversion and Continuation Procedures	19
	 	 	2.2.4      Swing Line Facility	20
	2.3    	 	Letter of Credit Procedures	22
	 	 	2.3.1      L/C Applications	22
	 	 	2.3.2      Participations in Letters of Credit	23
	 	 	2.3.3      Reimbursement Obligations	23
	 	 	2.3.4      Funding by Lenders to Issuing Lender	24
	2.4    	 	Commitments Several	25
	2.5    	 	Certain Conditions	25
	 	 	 	 
	SECTION 3 	 	EVIDENCING OF LOANS	25
	 	 	 	 
	3.1    	 	Notes	25
	3.2    	 	Recordkeeping	25
	 	 	 	 
	SECTION 4	 	INTEREST	25
	 	 	 	 
	4.1    	 	Interest Rates	25
	4.2    	 	Interest Payment Dates	26
	  4.3    	 	Setting and Notice of LIBOR Rates	26
	  4.4    	 	Computation of Interest	26
	 	 	 	 
	SECTION 5	 	FEES	26
	 	 	 	 
	5.1    	 	Closing Fee	26
	5.2    	 	Non-Use Fee	26
	5.3    	 	Letter of Credit Fees	26
	5.4    	 	Administrative Agent’s Fees	27
	 	 	 
	SECTION 6 	 	REDUCTION OR TERMINATION OF THE REVOLVING
	 	 	COMMITMENT; PREPAYMENTS	27
	 	 	 	 
	6.1    	 	Reduction or Termination of the Revolving Commitment	27
	 	 	6.1.1      Voluntary Reduction or Termination of the Revolving
	 	 	              Commitment	27
	 	 	6.1.2      All Reductions of the Revolving Commitment	27
	 	 	 	 
	i

	

		
	6.2    	 	Prepayments; Cleandown	27
	 	 	6.2.1      Voluntary Prepayments	27
	 	 	6.2.2      Clean Down	28
	 	 	6.2.3      Mandatory Prepayments	28
	6.3    	 	Manner of Prepayments	29
	 	 	6.3.1      All Prepayments	29
	6.4    	 	Repayments	29
	 	 	6.4.1      Revolving Loans	29
	 	 	 	 
	SECTION 7 	 	MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES	29
	 	 	 	 
	7.1    	 	Making of Payments	29
	7.2    	 	Application of Certain Payments	29
	7.3    	 	Due Date Extension	29
	7.4    	 	Setoff	30
	7.5    	 	Proration of Payments	30
	7.6    	 	Taxes	30
	 	 	 	 
	SECTION 8 	 	INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS	32
	 	 	 	 
	8.1     	 	Increased Costs	32
	8.2     	 	Basis for Determining Interest Rate Inadequate or Unfair	33
	8.3     	 	Changes in Law Rendering LIBOR Loans Unlawful	33
	8.4     	 	Funding Losses	34
	8.5     	 	Right of Lenders to Fund through Other Offices	34
	8.6     	 	Discretion of Lenders as to Manner of Funding	34
	8.7     	 	Mitigation of Circumstances; Replacement of Lenders	34
	8.8     	 	Conclusiveness of Statements; Survival of Provisions	35
	 	 	 	 
	SECTION 9 	 	REPRESENTATIONS AND WARRANTIES	35
	 	 	 	 
	9.1    	 	Organization; Locations of Executive Office; FEIN	35
	9.2    	 	Authorization; No Conflict	36
	9.3    	 	Validity and Binding Nature	36
	9.4    	 	Financial Condition	36
	9.5    	 	No Material Adverse Change	36
	9.6    	 	Litigation and Contingent Liabilities	36
	9.7    	 	Ownership of Properties; Liens	36
	9.8    	 	Equity Ownership; Subsidiaries	37
	9.9    	 	Pension Plans	37
	9.10  	 	Investment Company Act	38
	9.11  	 	Public Utility Holding Company Act	38
	9.12  	 	Regulation U	38
	9.13  	 	Taxes	38
	9.14  	 	Solvency, etc	38
	9.15  	 	Environmental Matters	38
	9.16  	 	Insurance	39
	9.17  	 	Real Property	39
	9.18  	 	Information	39
	  9.19  	 	Intellectual Property	40
	 	 	 	 
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	9.20    	 	Burdensome Obligations	40
	9.21    	 	Labor Matters	40
	9.22    	 	No Default	40
	9.23    	 	Sears Agreements	40
	9.24    	 	Dormant Entities	40
	 	 	 	 
	SECTION 10 	 	AFFIRMATIVE COVENANTS	41
	 	 	 	 
	10.1    	 	Reports, Certificates and Other Information	41
	 	 	10.1.1      Annual Report	41
	 	 	10.1.2      Interim Reports	41
	 	 	10.1.3      Compliance Certificates	42
	 	 	10.1.4      Reports to the SEC and to Shareholders	42
	 	 	10.1.5      Notice of Default, Litigation and ERISA Matters	42
	 	 	10.1.6      Management Reports	43
	 	 	10.1.7      Projections	43
	 	 	10.1.8      Other Information	43
	 	 	10.1.9      Retail Location Closings and Openings	43
	 	 	10.1.10    Capital Expenditure Report	43
	 	 	10.1.11    Schedule 9.1	43
	10.2    	 	Books, Records and Inspections	44
	10.3    	 	Maintenance of Property; Insurance	44
	10.4    	 	Compliance with Laws; OFAC/BSA Provision; Payment of Taxes and
	 	 	Liabilities	44
	10.5    	 	Maintenance of Existence, etc	45
	10.6    	 	Use of Proceeds	45
	10.7    	 	Employee Benefit Plans	45
	10.8    	 	Environmental Matters	46
	10.9    	 	Further Assurances	46
	10.10  	 	Deposit Accounts	46
	 	 	 	 
	SECTION 11 	 	NEGATIVE COVENANTS	46
	 	 	 	 
	11.1    	 	Debt	46
	11.2    	 	Liens	47
	11.3    	 	Operating Leases	48
	11.4    	 	Restricted Payments	49
	11.5    	 	Mergers, Consolidations, Sales	49
	11.6    	 	Modification of Organizational Documents	49
	11.7    	 	Transactions with Affiliates	49
	11.8    	 	Inconsistent Agreements	50
	11.9    	 	Business Activities; Issuance of Equity	50
	11.10  	 	Investments	50
	11.11  	 	Most Favored Lender	51
	11.12  	 	Restriction of Amendments to Certain Documents	51
	11.13  	 	Dormant Entities	51
	11.14  	 	Fiscal Year	51
	11.15  	 	Financial Covenants	51
	 	 	11.15.1    Minimum EBITDA	51
	 	 	 	 
	iii

	 
	

	

				
	 	 	11.15.2     Total Funded Debt to EBITDA Ratio	52
	 	 	11.15.3     Minimum Net Worth	52
	 	 	11.15.4     Capital Expenditures	52
	 	 	 	 
	SECTION 12	 	EFFECTIVENESS; CONDITIONS OF LENDING, ETC	52
	 	 	 	 
	12.1    	 	Initial Credit Extension	53
	 	 	12.1.1     Financial Statements	53
	 	 	12.1.2     Notes	53
	 	 	12.1.3     Authorization Documents	53
	 	 	12.1.4     Consents, etc	54
	 	 	12.1.5     Letter of Direction	54
	 	 	12.1.6     Guaranty Agreement	54
	 	 	12.1.7     Opinions of Counsel	54
	 	 	12.1.8     Insurance	54
	 	 	12.1.9     Copies of Sears Agreements	54
	 	 	12.1.10   Copies of Prudential Documents	54
	 	 	12.1.11   Payment of Fees	54
	 	 	12.1.12   Solvency Certificate	54
	 	 	12.1.13   Search Results; Lien Terminations	54
	 	 	12.1.14   Closing Certificate	55
	 	 	12.1.15   Other	55
	 	 	12.1.16   EBITDA Verification Report	55
	12.2    	 	Conditions	55
	 	 	12.2.1    Compliance with Warranties, No Default, etc	55
	 	 	12.2.2    Confirmatory Certificate	55
	 	 	 	 
	SECTION 13	 	EVENTS OF DEFAULT AND THEIR EFFECT	55
	 	 	 	 
	13.1    	 	Events of Default	56
	 	 	13.1.1    Non-Payment of the Loans, etc	56
	 	 	13.1.2    Non-Payment of Other Debt	56
	 	 	13.1.3    Other Material Obligations	56
	 	 	13.1.4    Bankruptcy, Insolvency, etc	56
	 	 	13.1.5    Non-Compliance with Loan Documents	56
	 	 	13.1.6    Representations; Warranties	57
	 	 	13.1.7    Pension Plans	57
	 	 	13.1.8    Judgments	57
	 	 	13.1.9    Guaranty; Sears Agreements	57
	 	 	13.1.10  Change of Control	58
	 	 	13.1.11  Closing of Locations	58
	 	 	13.1.12  Material Adverse Effect	58
	13.2    	 	Effect of Event of Default	58
	13.3    	 	Application of Proceeds	58
	 	 	 	 
	SECTION 14	 	THE AGENTS	59
	 	 	 	 
	14.1    	 	Appointment and Authorization	59
	14.2    	 	Issuing Lender	60
	14.3    	 	Delegation of Duties	60
	 
	iv

	

				
	14.4    	 	Exculpation of Administrative Agent	60
	14.5    	 	Reliance by Administrative Agent	60
	14.6    	 	Notice of Default	61
	14.7    	 	Credit Decision	61
	14.8    	 	Indemnification	62
	14.9    	 	Administrative Agent in Individual Capacity	62
	14.10  	 	Successor Administrative Agent	62
	14.11  	 	Administrative Agent May File Proofs of Claim	63
	14.12  	 	Other Agents; Arrangers and Managers	64
	 	 	 	 
	 	 	 	 
	SECTION 15	 	GENERAL	64
	 	 	 	 
	15.1    	 	Waiver; Amendments	64
	15.2    	 	Confirmations	65
	15.3    	 	Notices	65
	15.4    	 	Computations	65
	15.5    	 	Costs, Expenses and Taxes	65
	15.6    	 	Assignments; Participations	66
	 	 	15.6.1 Assignments	66
	 	 	15.6.2 Participations	67
	15.7    	 	Register	67
	15.8    	 	GOVERNING LAW	68
	15.9    	 	Confidentiality	68
	15.10  	 	Severability	68
	15.11  	 	Nature of Remedies	69
	15.12  	 	Entire Agreement	69
	15.13  	 	Counterparts	69
	15.14  	 	Successors and Assigns	69
	15.15  	 	Captions. 69
	15.16  	 	Customer Identification - USA Patriot Act Notice	69
	15.17  	 	INDEMNIFICATION BY THE COMPANY	69
	15.18  	 	Nonliability of Lenders	70
	15.19  	 	FORUM SELECTION AND CONSENT TO JURISDICTION	71
	15.20  	 	WAIVER OF JURY TRIAL	71
	15.21  	 	Statutory Notice - Oral Commitments	72

		
	 	 
	    	                   ANNEXES
	 	 
	ANNEX A	Lenders and Pro Rata Shares
	ANNEX B	Addresses for Notices
	 	 
	 	                   SCHEDULES
	 	 
	SCHEDULE 1.1	Fiscal Periods
	SCHEDULE 9.1	Formation Information
	SCHEDULE 9.8	Subsidiaries
	 	 
	v

	

		
	SCHEDULE 9.16	Insurance
	SCHEDULE 9.17	Real Property
	SCHEDULE 9.21	Labor Matters
	SCHEDULE 11.1	Existing Debt
	SCHEDULE 11.2	Existing Lien
	SCHEDULE 11.10	Investments
	SCHEDULE 12.1	Debt to be Repaid
	 	 
	 	                   EXHIBITS
	 	 
	EXHIBIT A	Form of Note (Section 3.1)
	EXHIBIT B	Form of Compliance Certificate (Section 10.1.3)
	EXHIBIT C	Form of Assignment Agreement (Section 15.6.1)
	EXHIBIT D	Form of Notice of Borrowing (Section 2.2.2)
	EXHIBIT E	Form of Notice of Conversion/Continuation (Section 2.2.3)
	EXHIBIT F	Documents and Requirements List
	 	 
	vi

	

	
CREDIT AGREEMENT

                THIS CREDIT AGREEMENT dated as of April 15, 2005 (this “Agreement”), is entered into among CPI CORP., a Delaware corporation (the “Company”), the financial institutions that are or may from time to time become parties hereto (together
with their respective successors and assigns, the “Lenders”) and LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity, “LaSalle”), as administrative agent for the Lenders. 

                The Lenders have agreed to make available to the Company a revolving credit facility (which includes
letters of credit) upon the terms and conditions set forth herein.

                In consideration of the mutual agreements herein contained, the parties hereto agree as follows:

                SECTION 1        DEFINITIONS.

	 

	 	                1.1           Definitions.  When used herein the following terms shall have the following meanings:

	 
	
                Acquisition  means any transaction or series of related transactions for the purpose of or resulting, directly
or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person,
or of all or substantially all of any business or division of a Person, (b) the acquisition
of in excess of 50% of the Capital Securities of any Person, or otherwise causing any Person to become
a Subsidiary, or (c) a merger or consolidation or any other combination with another Person
(other than a Person that is already a Subsidiary).

                Additional Covenant  means any affirmative or negative covenant or similar restriction applicable to the Company
or any other Loan Party (regardless of whether such provision is labeled or otherwise characterized
as a covenant) the subject matter of which either (i) is similar to that of the covenants in SECTION 10 or SECTION 11 of this Agreement, or related definitions of this Agreement, but contains one or more percentages,
amounts or formulas that is more restrictive than those set forth in this Agreement or more beneficial
to the holder or holders of the Debt created or evidenced by the document in which such covenant
or similar restriction is contained (and such covenant or similar restriction shall be deemed an
Additional Covenant only to the extent that it is more restrictive or more beneficial) or (ii) is
different from the subject matter of the covenants in SECTION 10 or SECTION 11 of this Agreement, or related definitions of this Agreement.

                Additional Default  means any provision contained in any document or instrument creating or evidencing Debt of the
Company or any other Loan Party that permits the holder or holders of such Debt to accelerate (with
the passage of time or giving of notice or both) the maturity thereof or otherwise requires the Company
or any other Loan Party to purchase such Debt prior to the stated maturity thereof and which either
(i) is similar to the Events of Default contained in SECTION 13 of this Agreement, or related definitions of this Agreement, but contains one or more percentages,
amounts or formulas that is more restrictive or has a shorter grace period than those set forth herein
or is more beneficial to the holders of such other Debt (and such provision shall be deemed an Additional
Default only to the extent that it is more

	

	
restrictive, has a shorter grace period or is more beneficial) or (ii) is different from the subject
matter of the Events of Default contained in SECTION 13 of this Agreement, or related definitions of this Agreement.

                Administrative Agent  means LaSalle in its capacity as administrative agent for the Lenders hereunder and any successor
thereto in such capacity.

                Affected Loan  - see Section 8.3.

                Affiliate  of any Person means (a) any other Person which, directly or indirectly, controls or is
controlled by or is under common control with such Person, (b) any officer or director of such
Person and (c) with respect to any Lender, any entity administered or managed by such Lender
or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding
or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the election of directors
or managers or power to direct or cause the direction of the management and policies of such Person
whether by contract or otherwise. Unless expressly stated otherwise herein, neither the Administrative
Agent nor any Lender shall be deemed an Affiliate of any Loan Party.

                Agent Fee Letter  means the Fee letter dated as of the date hereof between the Company and the Administrative
Agent.

                Agreement  - see the Preamble.

                Applicable Margin  means, for any day, the rate per annum set forth below opposite the level (the “Level”) then in effect, it being understood that the Applicable Margin for (i) LIBOR Loans shall
be the percentage set forth under the column “LIBOR Margin”, (ii) Base Rate Loans
shall be the percentage set forth under the column “Base Rate Margin”, (iii) the Non-Use
Fee Rate shall be the percentage set forth under the column “Non-Use Fee Rate” and (iv) the
L/C Fee shall be the percentage set forth under the column “L/C Fee Rate”:

	 

	Level	Total Funded Debt 
to EBITDA Ratio	LIBOR Margin	 	Base Rate Margin	 	Non-Use Fee Rate	 	L/C Fee Rate
	

	

	

	 	

	 	

	 	

	I	Greater than or equal to 1.50 to 1.00	2.50%	 	0.25%	 	0.50%   	 	2.50%
	II	Less than 1.50 to 1.00 but greater than or equal to 1.00 to 1.00 	2.25%	 	0.00%	 	0.375%	 	2.25%
	III	Less than 1.00 to 1.00 	2.00%	 	0.00%	 	0.25%   	 	2.00%

	

2

	
                The LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be adjusted,
to the extent applicable, on the fifth (5th) Business Day after the Company provides or is required
to provide the annual and quarterly financial statements and other information pursuant to Section 10.1.1 or 10.1.2, as applicable, and the related Compliance Certificate, pursuant to Section 10.1.3. Notwithstanding anything contained in this paragraph to the contrary, (a) if the Company fails
to deliver the such financial statements and Compliance Certificate in accordance with the provisions
of Section 10.1.1, 10.1.2 and 10.1.3, the LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be based
upon Level I above beginning on the date such financial statements and Compliance Certificate
were required to be delivered until the fifth (5th) Business Day after such financial statements
and Compliance Certificate are actually delivered, whereupon the Applicable Margin shall be determined
by the then current Level; (b) no reduction to any Applicable Margin shall become effective
at any time when an Event of Default or Unmatured Event of Default has occurred and is continuing;
and (c) the initial Applicable Margin on the Closing Date shall be based on Level I until
the date on which the financial statements and Compliance Certificate are required to be delivered
for the Fiscal Quarter ending November 10, 2005. 

                Asset Disposition  means the sale, lease, assignment or other transfer for value (each, a “Disposition”) by any Loan Party to any Person (other than a Loan Party) of any asset or right of such Loan
Party (including, the loss, destruction or damage of any thereof or any actual or threatened (in
writing to any Loan Party) condemnation, confiscation, requisition, seizure or taking thereof) other
than (a) the Disposition of any asset which is to be replaced, and is in fact replaced, within
180 days with another asset performing the same or a similar function or that is otherwise useful
in the business of a Loan Party, (b) the sale or lease of inventory or obsolete equipment, including,
without limitation, any excess equipment, in the ordinary course of business and (c) other Dispositions
in any Fiscal Year the Net Cash Proceeds of which do not in the aggregate exceed $250,000.

                Assignee  - see Section 15.6.1.

                Assignment Agreement  - see Section 15.6.1.

                Attorney Costs  means, with respect to any Person, all reasonable fees and charges of any counsel to such Person,
and all court costs and similar legal expenses.

                Bank Product Agreements  means those certain cash management service agreements entered into from time to time between
any Loan Party and a Lender or its Affiliates in connection with any of the Bank Products.

                Bank Product Obligations  means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses
owing by the Loan Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank Product
Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute
or contingent, due or to become due, now existing or hereafter arising, and including all such amounts
that a Loan Party is obligated to reimburse to the Administrative Agent or any Lender as a result
of the Administrative Agent or such Lender purchasing participations or executing indemnities or
reimbursement obligations with respect to the Bank Products provided to the Loan Parties pursuant
to the Bank Product Agreements.

	

3

	
                Bank Products  means any service or facility extended to any Loan Party by any Lender or its Affiliates including: (a) credit
cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH
Transactions, (f) cash management, including controlled disbursement, accounts or services,
or (g) Hedging Agreements.

                Base Rate  means at any time the greater of (a) the Federal Funds Rate plus 0.5% and (b) the
Prime Rate.

                Base Rate Loan  means any Loan which bears interest at or by reference to the Base Rate.

                Base Rate Margin  - see the definition of Applicable Margin.

                Business Day  means any day on which LaSalle is open for commercial banking business in Chicago, Illinois
and, in the case of a Business Day which relates to a LIBOR Loan, on which dealings are carried on
in the London interbank eurodollar market.

                Canadian Entities  means (i) CPI Corp., a Nova Scotia unlimited liability company, and (ii) CPI Portrait Studios
of Canada Corp., a Nova Scotia unlimited liability company.

                Capital Expenditures  means all expenditures which, in accordance with GAAP, would be required to be capitalized and
shown on the consolidated balance sheet of the Company, including expenditures in respect of Capital
Leases, but excluding expenditures made in connection with the replacement, substitution or restoration
of assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid
on account of the loss of or damage to the assets being replaced or restored or (b) with awards
of compensation arising from the taking by eminent domain or condemnation of the assets being replaced.

                Capital Lease  means, with respect to any Person, any lease of (or other agreement conveying the right to use)
any real or personal property by such Person that, in conformity with GAAP, is accounted for as a
capital lease on the balance sheet of such Person.

                Capitalized Rentals  of any Person shall mean as of the date of any determination thereof, the amount at which the
aggregate present value of future rentals due and to become due under all Capital Leases under which
such Person is a lessee would be reflected as a liability on a consolidated or combined balance sheet
of such Person in accordance with GAAP.

                Capital Securities  means, with respect to any Person, all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) of such Person’s capital, whether now outstanding
or issued or acquired after the Closing Date, including common shares, preferred shares, membership
interests in a limited liability company, limited or general partnership interests in a partnership,
interests in a trust, interests in other unincorporated organizations or any other equivalent of
such ownership interest.

                Cash Collateralize  and Cash Collateral means to deliver cash collateral to the Administrative Agent, to be held as cash collateral for outstanding
Letters of Credit, pursuant to documentation reasonably to the Administrative Agent. Derivatives
of such term have corresponding meanings.

	

4

	
                Cash Equivalent Investment  means, at any time, (a) any evidence of Debt, maturing not more than one year after such
time, issued or guaranteed by the United States Government or any agency thereof, (b) commercial
paper, maturing not more than one year from the date of issue, or corporate demand notes, in each
case (unless issued by a Lender or its holding company) rated at least A-l by Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody’s Investors
Service, Inc., (c) any certificate of deposit, time deposit or banker’s acceptance, maturing
not more than one year after such time, or any overnight Federal Funds transaction that is issued
or sold by any Lender or its holding company (or by a commercial banking institution that is a member
of the Federal Reserve System and has a combined capital and surplus and undivided profits of not
less than $500,000,000), (d) any repurchase agreement entered into with any Lender (or commercial
banking institution of the nature referred to in clause (c)) which (i) is secured by a fully perfected security interest in any obligation of the type described
in any of clauses (a) through (c) above and (ii) has a market value at the time such repurchase agreement is entered into of not
less than 100% of the repurchase obligation of such Lender (or other commercial banking institution)
thereunder, (e) money market accounts or mutual funds which invest exclusively in assets satisfying
the foregoing requirements, (f) investments listed on Schedule 11.10 and similar investments (other than foreign government bonds), (g) investments in money market
funds managed by or sponsored by Administrative Agent or any of its Affiliates, and (h) other short
term liquid investments approved in writing by the Administrative Agent (which approval shall not
be unreasonably withheld).

                Change of Control  means the occurrence of any of the following events: (a) any Person or group of Persons
(within the meaning of Section 13 or 14 of the Securities Exchange Act of 1934 shall acquire beneficial
ownership (within the meaning of Rule 13d-3 promulgated under such Act) of more than 30% of the outstanding
securities (on a fully diluted basis and taking into account any securities or contract rights exercisable,
exchangeable or convertible into equity securities) of the Company having voting rights in the election
of directors under normal circumstances; (b) during any period of two consecutive years, the first
such period commencing the day before the Closing Date, a majority of the members of the Board of
Directors of the Company shall cease to be Continuing Members; or (c) except for the Dormant Entities
and except for the merger of any Wholly-Owned Subsidiary or any Dormant Entity with or into any other
Wholly-Owned Subsidiary (if a Wholly-Owned Subsidiary is the surviving entity), any Subsidiary of
the Company ceases to be a Wholly-Owned Subsidiary of the Company. For purposes of the foregoing,
“Continuing Member” means a member of the Board of Directors of the Company who either
(i) was a member of the Company’s Board of Directors at the beginning of such two year period
and has been such continuously thereafter or (ii) became a member of such Board of Directors after
the beginning of such two year period and whose election or nomination for election was approved
by a vote of the majority of the Continuing Members then members of the Company’s Board of Directors
at the beginning of such two year period or whose election or nomination for election was previously so approved. 

                Closing Date  - see Section 12.1.

                Code  means the Internal Revenue Code of 1986.

	

5

	
                Commitment  means, as to any Lender, such Lender’s commitment to make Loans, and to issue or participate
in Letters of Credit, under this Agreement. The initial amount of each Lender’s commitment to
make Loans is set forth on Annex Error! Reference source not found..

                Company  - see the Preamble.

                Compliance Certificate  means a Compliance Certificate in substantially the form of Exhibit  Error! Reference source not found..

                Computation Period  means each period of four consecutive Fiscal Quarters ending on the last day of a Fiscal Quarter.

                Consolidated Net Income  means, with respect to the Company and its Subsidiaries for any period, the net income (or loss)
of the Company and its Subsidiaries for such period, excluding any gains or losses from Asset Dispositions
described in clauses (a) and (c) of the definition of Asset Dispositions. 

                Contingent Liability  means, with respect to any Person, each obligation and liability of such Person and all such
obligations and liabilities of such Person incurred pursuant to any agreement, undertaking or arrangement
by which such Person: (a) guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment,
to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against
loss) the indebtedness, dividend, obligation or other liability of any other Person in any manner
(other than by endorsement of instruments in the course of collection), including any indebtedness,
dividend or other obligation which may be issued or incurred at some future time; (b) guarantees
the payment of dividends or other distributions upon the Capital Securities of any other Person;
(c) undertakes or agrees (whether contingently or otherwise): (i) to purchase, repurchase,
or otherwise acquire any indebtedness, obligation or liability of any other Person or any property
or assets constituting security therefor, (ii) to advance or provide funds for the payment or
discharge of any indebtedness, obligation or liability of any other Person (whether in the form of
loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets,
level of income, working capital or other financial condition of any other Person, or (iii) to
make payment to any other Person other than for value received; (d) agrees to lease property
or to purchase securities, property or services from such other Person with the purpose or intent
of assuring the owner of such indebtedness or obligation of the ability of such other Person to make payment of the indebtedness or obligation; (e) to induce the issuance of, or in connection with the issuance
of, any letter of credit for the benefit of such other Person; or (f) undertakes or agrees otherwise
to assure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation
set forth herein) be deemed to be the outstanding principal amount (or maximum permitted principal
amount, if larger) of the indebtedness, obligation or other liability guaranteed or supported thereby.

                Controlled Group  means all members of a controlled group of corporations, all members of a controlled group of
trades or businesses (whether or not incorporated) under common control and all members of an affiliated
service group which, together with the Company or any 

	

6

	
of its Subsidiaries, are treated as a single employer under Section 414 of the Code or Section 4001
of ERISA.

                Debt  of any Person means, without duplication, (a) all indebtedness that is non-contingent and
liquidated in amount or that should under GAAP be included in liabilities and not just as a footnote
on a balance sheet, (b) all borrowed money of such Person, whether or not evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person as lessee under
Capital Leases including, without duplication, Capitalized Rentals, which have been or should be
recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (d) all obligations
of such Person to pay the deferred purchase price of property or services (excluding trade accounts
payable in the ordinary course of business), (e) all indebtedness secured by a Lien on the property
of such Person, whether or not such indebtedness shall have been assumed by such Person; provided that if such Person has not assumed or otherwise become liable for such indebtedness, such indebtedness
shall be measured as the lesser of the amount of any such indebtedness or the fair market value of
such property securing such indebtedness at the time of determination, (f) all obligations,
contingent or otherwise, with respect to the face amount of all letters of credit (whether or not
drawn), bankers’ acceptances and similar obligations issued for the account of such Person (including
the Letters of Credit), (g) all Hedging Obligations of such Person, (h) all Contingent
Liabilities of such Person, (i) all Debt of any partnership of which such Person is a general
partner, and (j) any Capital Securities or other equity instrument, whether or not mandatory
redeemable, that under GAAP is or should be characterized as debt and not equity, whether pursuant
to financial accounting standards board issuance No. 150 or otherwise.

                Debt to be Repaid  means Debt listed on Schedule 12.1.

                Designated Proceeds  - see Section 6.2.3(a).

                Dollar  and the sign “$” mean lawful money of the United States of America.

                Dormant Entities  means each of the following: (a) Centrics Technology, Inc., a Delaware corporation; (b)
Consumer Programs Partner, Inc., a Delaware corporation; (c) CPI Portrait Studios de Mexico, S. de
R.L. de C.V., a Mexico corporation; (d) CPI Prints Plus, Inc., a Delaware corporation; (e) CPI Research
and Development, Inc., a Delaware corporation; (f) CPI Technology Corp., a Missouri corporation;
(g) LBP Partnership, a Missouri general partnership; (h) myportraits.com, Inc., a Missouri corporation;
(i) P&W/LBP Partnership, a Missouri general partnership; (j) Ridgedale Prints Plus, Inc., a Minnesota
corporation; and (k) Texas Portraits, L.P., a Delaware limited partnership.

                EBITDA  means, for any period, Consolidated Net Income for such period plus, to the extent deducted in determining such Consolidated Net Income, (i) Interest Expense, (ii) income
tax expense, (iii) depreciation, amortization, (iv) non-cash charges not exceeding a cumulative aggregate
of $3,000,000 while this Agreement is in existence, for such period, (v) except as noted in the next
sentence, cash charges for severance expenses not exceeding a cumulative aggregate of $2,000,000
while this Agreement is in existence, for such period, and (vi) if applicable, the Special Adjustment
Amount. Clause (v) above shall not be applicable for any calculation made in or pursuant to the defined
term “Applicable Margin”. Without duplication

	

7

	
of the Special Adjustment Amount, “EBITDA” shall be restated for all relevant Computation
Periods to exclude any gains or losses from Asset Dispositions described in clauses (a) and (c) of the definition of Asset Dispositions and any extraordinary gains or losses (as defined under GAAP).

                Environmental Claims  means all claims, however asserted, by any governmental, regulatory or judicial authority or
other Person alleging potential liability or responsibility for violation of any Environmental Law,
or for release or injury to the environment.

                Environmental Laws  means all present or future federal, state or local laws, statutes, common law duties, rules,
regulations, ordinances and codes, together with all administrative or judicial orders, consent agreements,
directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental
authority, in each case relating to any matter arising out of or relating to public health and safety,
or pollution or protection of the environment or workplace, including any of the foregoing relating
to the presence, use, production, generation, handling, transport, treatment, storage, disposal,
distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous
Substance.

                ERISA  means the Employee Retirement Income Security Act of 1974.

                Event of Default  means any of the events described in Section 13.1.

                Excluded Taxes  means taxes based upon, or measured by, the Lender’s or Administrative Agent’s (or
a branch of the Lender’s or Administrative Agent’s) overall net income, overall net receipts,
or overall net profits (including franchise taxes imposed in lieu of such taxes), but only to the
extent such taxes are imposed by a taxing authority (a) in a jurisdiction in which such Lender
or Administrative Agent is organized, (b) in a jurisdiction which the Lender’s or Administrative
Agent’s principal office is located, or (c) in a jurisdiction in which such Lender’s
or Administrative Agent’s lending office (or branch) in respect of which payments under this
Agreement are made is located.

                Federal Funds Rate  means, for any day, a fluctuating interest rate equal for each day during such period to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not
a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by the Administrative Agent from three Federal funds brokers
of recognized standing selected by the Administrative Agent. The Administrative Agent’s determination
of such rate shall be binding and conclusive absent manifest error.

                Fiscal Month means a fiscal month of a Fiscal Year.

                Fiscal Quarter  means a fiscal quarter of a Fiscal Year.

                Fiscal Year  means the fiscal year of the Company and its Subsidiaries, which period shall be the 12-month
period ending on the date specified in Schedule 1.1 attached hereto of each calendar year. References
to a Fiscal Year with a number corresponding to any calendar year 

	

8

	
(e.g., “Fiscal Year 2004” or “2004 Fiscal Year”) refer to the Fiscal Year beginning
in the calendar year of such Fiscal Year as set forth in Schedule 1.1 (e.g., “Fiscal Year 2004”
began in calendar year 2004 and ends in calendar year 2005).

                FRB  means the Board of Governors of the Federal Reserve System or any successor thereto.

                GAAP  means generally accepted accounting principles set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies
with similar functions of comparable stature and authority within the U.S. accounting profession)
and the Securities and Exchange Commission, which are applicable to the circumstances as of the date
of determination.

                Group  - see Section 2.2.1.

                Guarantor Obligations  has the meaning set forth in the Guaranty Agreement.

                Guaranty Agreement  means the Guaranty Agreement dated as of the date hereof executed and delivered by Consumer
Programs Incorporated, a Missouri corporation, CPI Canadian Holdings, Inc., a Delaware corporation,
CPI Images, L.L.C., a Missouri limited liability company, and CPI International Holdings, Inc., a
Delaware corporation., together with any joinders thereto from time to time, and any other guaranty
executed by a Loan Party, in each case in form and substance reasonably satisfactory to the Administrative
Agent.

                Hazardous Substances  means (a) any petroleum or petroleum products, radioactive materials, asbestos in any form
that is or could become friable, urea formaldehyde foam insulation, dielectric fluid containing levels
of polychlorinated biphenyls, radon gas and mold; (b) any chemicals, materials, pollutant or
substances defined as or included in the definition of “hazardous substances”, “hazardous
waste”, “hazardous materials”, “extremely hazardous substances”, “restricted
hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”,
“pollutants” or words of similar import, under any applicable Environmental Law; and (c) any
other chemical, material or substance, the exposure to, or release of which is prohibited, limited
or regulated by any governmental authority or for which any duty or standard of care is imposed pursuant
to, any Environmental Law.

                Hedging Agreement  means any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in interest
rates, currency exchange rates or commodity prices.

                Hedging Obligation  means, with respect to any Person, any liability of such Person under any Hedging Agreement.
The amount of any Person’s obligation in respect of any Hedging Obligation shall be deemed to
be the incremental obligation that would be reflected in the financial statements of such Person
in accordance with GAAP.

                Indemnified Liabilities  - see Section 15.17.

	

9

	
                Insurance Proceeds  means any insurance and/or condemnation proceeds payable as a consequence of damage to or destruction
of any assets of the Company or any other Loan Party.

                Interest Expense  means for any period the consolidated interest expense of the Company and its Subsidiaries for
such period (including all imputed interest on Capital Leases).

                Interest Period  means, as to any LIBOR Loan, the period commencing on the date such Loan is borrowed or continued
as, or converted into, a LIBOR Loan and ending on the date one, two, three or six months thereafter
as selected by the Company pursuant to Section 2.2.2 or 2.2.3, as the case may be; provided that:

	 

	 	                (a)             if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period
shall be extended to the following Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month, in which event such Interest Period shall end on
the preceding Business Day;
		 
	 	                (b)            any Interest Period that begins on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period shall end on the last Business Day of the calendar
month at the end of such Interest Period; and
		 
	 	                (c)             the Company may not select any Interest Period for a Revolving Loan which would extend beyond
the scheduled Termination Date.

	 
	
                Investment  means, with respect to any Person, any investment in another Person, whether by acquisition
of any debt or Capital Security, by making any loan or advance, by becoming obligated with respect
to a Contingent Liability in respect of obligations of such other Person (other than travel and similar
advances to employees in the ordinary course of business) or by making an Acquisition.

                Issuing Lender  means LaSalle, in its capacity as the issuer of Letters of Credit hereunder, or any Affiliate
of LaSalle that may from time to time issue Letters of Credit, and their successors and assigns in
such capacity.

                LaSalle  - see the Preamble.

                L/C Application  means, with respect to any request for the issuance of a Letter of Credit, a letter of credit
application in the form being used by the Issuing Lender at the time of such request for the type
of letter of credit requested.

                L/C Fee Rate  - see the definition of Applicable Margin.

                Lender  - see the Preamble. References to the “Lenders” shall include the Issuing Lender; for purposes of clarification
only, to the extent that LaSalle (or any successor Issuing Lender) may have any rights or obligations
in addition to those of the other Lenders due to its status as Issuing Lender, its status as such
will be specifically referenced. In addition to the foregoing, the term “Lender” shall
include Affiliates of a Lender providing a Bank Product.

                Lender Party  - see Section 15.17.

	

10

	
                Letter of Credit  - see Section 2.1.2.

                LIBOR Loan  means any Loan which bears interest at a rate determined by reference to the LIBOR Rate.

                LIBOR Margin  - see the definition of Applicable Margin.

                LIBOR Office  means with respect to any Lender the office or offices of such Lender which shall be making
or maintaining the LIBOR Loans of such Lender hereunder. A LIBOR Office of any Lender may be, at
the option of such Lender, either a domestic or foreign office.

                LIBOR Rate  means a rate of interest equal to (a) the per annum rate of interest at which United States
dollar deposits in an amount comparable to the amount of the relevant LIBOR Loan and for a period
equal to the relevant Interest Period are offered in the London Interbank Eurodollar market at 11:00 A.M.
(London time) two (2) Business Days prior to the commencement of such Interest Period (or three (3)
Business Days prior to the commencement of such Interest Period if banks in London, England were
not open and dealing in offshore United States dollars on such second preceding Business Day), as
displayed in the Bloomberg Financial Markets system (or other authoritative source selected by the Administrative Agent in its sole discretion)
or, if the Bloomberg Financial Markets system or another authoritative source is not available, as the LIBOR Rate is otherwise determined
by the Administrative Agent in its sole and absolute discretion, divided by (b) a number determined
by subtracting from 1.00 the then stated maximum reserve percentage for determining reserves to be
maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities
as defined in Regulation D (or any successor category of liabilities under Regulation D),
such rate to remain fixed for such Interest Period. The Administrative Agent’s determination
of the LIBOR Rate shall be conclusive, absent manifest error.

                Lien  means, with respect to any Person, any interest granted by such Person in any real or personal
property, asset or other right owned or being purchased or acquired by such Person (including an
interest in respect of a Capital Lease) which secures payment or performance of any obligation and
shall include any mortgage, lien, encumbrance, title retention lien, charge or other security interest
of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise.

                Loan Documents  means this Agreement, the Notes, the Letters of Credit, the Master Letter of Credit Agreement,
the L/C Applications, the Agent Fee Letter, and all documents, instruments and agreements delivered
in connection with the foregoing from time to time.

                Loan Party  means the Company and each Subsidiary (including each Dormant Entity and each Canadian Entity),
and including, Consumer Programs Incorporated, a Missouri corporation, CPI Canadian Holdings, Inc.,
a Delaware corporation, CPI Images, L.L.C., a Missouri limited liability company, and CPI International
Holdings, Inc., a Delaware corporation.

                Loan or Loans  means, as the context may require, Revolving Loans, and/or Swing Line Loans.

                Mandatory Prepayment Event  - see Section 6.2.3(a).

	

11

	
                Margin Stock  means any “margin stock” as defined in Regulation U.

                Master Letter of Credit Agreement  means, at any time, with respect to the issuance of Letters of Credit, a master letter of credit
agreement or reimbursement agreement in the form, if any, being used by the Issuing Lender at such
time.

                Material Adverse Effect  means (a) a material adverse change in, or a material adverse effect upon, the financial
condition, operations, assets, business, properties or prospects of the Loan Parties taken as a whole,
(b) a material impairment of the ability of any Loan Party to perform any of the Obligations
under any Loan Document or (c) a material adverse effect upon any substantial portion of the
assets of the Company or any Loan Party, taken as a whole, or upon the legality, validity, binding
effect or enforceability against any Loan Party of any Loan Document.

                Multiemployer Pension Plan  means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the Company
or any other member of the Controlled Group may have any liability.

                Net Cash Proceeds  means:

	 

	 	               (a)              with respect to any Asset Disposition, the aggregate cash proceeds (including cash proceeds received
pursuant to policies of insurance or by way of deferred payment of principal pursuant to a note,
installment receivable or otherwise, but only as and when received) received by any Loan Party pursuant
to such Asset Disposition net of (i) the direct costs relating to such sale, transfer or other disposition
(including sales commissions and legal, accounting and investment banking fees), (ii) taxes paid
or reasonably estimated by the Company to be payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements) and (iii) amounts required
to be applied to the repayment of any Debt secured by a Lien on the asset subject to such Asset Disposition
(other than the Loans);
		 
	 	               (b)             with respect to any issuance of Capital Securities, the aggregate cash proceeds received by any Loan
Party pursuant to such issuance, net of the direct costs relating to such issuance (including sales
and underwriters’ commissions);
		 
	 	               (c)              with respect to any issuance of Debt, the aggregate cash proceeds received by any Loan Party pursuant
to such issuance, net of the direct costs of such issuance (including up-front, underwriters’
and placement fees); and
		 
	 	               (d)             the aggregate cash proceeds received by any Loan Party with respect to Insurance Proceeds.

	 
	
                Non-U.S. Participant  - see Section 7.6(d).

                Non-Use Fee Rate  - see the definition of Applicable Margin.

                Note  means a promissory note substantially in the form of Exhibit A.

	

12

	
                Notice of Borrowing  - see Section 2.2.2.

                Notice of Conversion/Continuation  - see Section 2.2.3.

                Obligations  means all obligations (monetary (including post-petition interest, allowed or not) or otherwise)
of any Loan Party under this Agreement and any other Loan Document including Attorney Costs and any
reimbursement obligations of each Loan Party in respect of Letters of Credit and surety bonds, all
Hedging Obligations permitted hereunder which are owed to any Lender or its Affiliate or Administrative
Agent, and all Bank Products Obligations, all in each case howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due.

                OFAC  - see Section 10.4.

                Operating Lease  means any lease of (or other agreement conveying the right to use) any real or personal property
by any Loan Party, as lessee, other than any Capital Lease.

                Paid in Full  means (a) the payment in full in cash and performance of all Obligations and Guarantor Obligations,
(b) the termination of all Commitments, and (c) either (i) the cancellation and return to the Administrative
Agent of all Letters of Credit or (ii) the cash collateralization of all Letters of Credit in accordance
with the Credit Agreement.

                PBGC  means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its
functions under ERISA.

                Participant  - see Section 15.6.2.

                Pension Plan  means a “pension plan”, as such term is defined in Section 3(2) of ERISA, which
is subject to Title IV of ERISA or the minimum funding standards of ERISA (other than a Multiemployer
Pension Plan), and as to which the Company or any member of the Controlled Group may have any liability,
including any liability by reason of having been a substantial employer within the meaning of Section 4063
of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing
sponsor under Section 4069 of ERISA.

                Permitted Lien  means a Lien expressly permitted hereunder pursuant to Section 11.2.

                Person  means any natural person, corporation, partnership, trust, limited liability company, association,
governmental authority or unit, or any other entity, whether acting in an individual, fiduciary or
other capacity.

                Prime Rate  means, for any day, the rate of interest in effect for such day as publicly announced from time
to time by the Administrative Agent as its prime rate (whether or not such rate is actually charged
by the Administrative Agent), which is not intended to be the Administrative Agent’s lowest
or most favorable rate of interest at any one time. Any change in the Prime Rate announced by the
Administrative Agent shall take effect at the opening of business on the day specified in the public
announcement of such change; provided that the Administrative Agent shall not be obligated to give notice of any change in the Prime Rate.

	

13

	
                Pro Rata Share  means:

	 

		(a)	
with respect to a Lender’s obligation to make Revolving Loans, participate in Letters of Credit,
reimburse the Issuing Lender, and receive payments of principal, interest, fees, costs, and expenses
with respect thereto, (x) prior to the Revolving Commitment being terminated or reduced to zero,
the percentage obtained by dividing (i) such Lender’s Revolving Commitment, by (ii) the
aggregate Revolving Commitment of all Lenders and (y) from and after the time the Revolving
Commitment has been terminated or reduced to zero, the percentage obtained by dividing (i) the
aggregate unpaid principal amount of such Lender’s Revolving Outstandings (after settlement
and repayment of all Swing Line Loans by the Lenders) by (ii) the aggregate unpaid principal
amount of all Revolving Outstandings;

			 
		(b)	
with respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such
Lender’s Revolving Commitment by (ii) the aggregate amount of Revolving Commitment of all
Lenders; provided that in the event the Commitments have been terminated or reduced to zero, Pro Rata Share shall be
the percentage obtained by dividing (A) the principal amount of such Lender’s Revolving
Outstandings (after settlement and repayment of all Swing Line Loans by the Lenders) by (B) the
principal amount of all outstanding Revolving Outstandings.

	 
	
                Prudential Debt  means the Debt incurred by the Company pursuant to the Prudential Debt Documents.

                Prudential Debt Documents  means all documents and instruments relating to the Prudential Debt, executed or delivered from
time to time, including, without limitation, that certain Note Purchase Agreement dated June 16,
1997, pursuant to which the company issued its 7.46% senior unsecured notes due June 16, 2007, as
any of the foregoing may be amended, modified, restated or replaced from time to time.

                Refunded Swing Line Loan  - see Section 2.2.4(c).

                Regulation D  means Regulation D of the FRB.

                Regulation U  means Regulation U of the FRB.

                Replacement Lender  - see Section 8.7(b).

                Reportable Event  means a reportable event as defined in Section 4043 of ERISA and the regulations issued
thereunder as to which the PBGC has not waived the notification requirement of Section 4043(a),
or the failure of a Pension Plan to meet the minimum funding standards of Section 412 of the
Code (without regard to whether the Pension Plan is a plan described in Section 4021(a)(2) of
ERISA) or under Section 302 of ERISA.

	

14

	
                Required Lenders  means, at any time, Lenders whose Pro Rata Shares exceed 51.0000% as determined pursuant to
clause (b) of the definition of “Pro Rata Share”; provided, however, if there are two Lenders, then
Required Lenders shall mean both Lenders.

                Revolving Commitment  means (i) from the Closing Date, through and including the last day of the Company’s 2005
Fiscal Year, $30,000,000, (ii) during the Company’s 2006 Fiscal Year, $25,000,000, (iii) during
the Company’s 2007 Fiscal Year, $20,000,000, and (iv) as the foregoing amounts may also be reduced
from time to time pursuant to Section 6.1.

                Revolving Loan  - see Section 2.1.1.

                Revolving Outstandings  means, at any time, the sum of (a) the aggregate principal amount of all outstanding Revolving
Loans, plus (b) the Stated Amount of all Letters of Credit.

                Sale Leaseback  means (i) the sale or transfer by the Company of its headquarters location (and related parking
facilities) in St. Louis, Missouri and the subsequent immediate leasing by the Company of all or
a portion of such location, or (ii) the sale or transfer by the Company of its facility in Brampton,
Ontario and the subsequent immediate leasing by the Company of all or a portion of such location.

                SEC  means the Securities and Exchange Commission or any other governmental authority succeeding
to any of the principal functions thereof.

                Sears Agreements  means, collectively, (i) the License Agreement dated as of January 1, 1999 by and between Sears,
Roebuck and Co. and Consumer Programs Incorporated, (ii) the License Agreement (Off Mall) dated as
of January 1, 1999 by and between Sears, Roebuck and Co. and Consumer Programs Incorporated, (iii)
the License Agreement dated as of January 1, 1999 by and between Sears Roebuck de Puerto Rico, Inc.
and Consumer Programs Incorporated, (iv) the Development and License Agreement dated as of January
31, 2001 by and between Sears, Roebuck and Co. and Consumer Programs Incorporated, and (v) the Sears
License Agreement dated as of January 1, 2003 by and between Sears, Roebuck and Co., Sears Canada
Inc. and CPI Corp., and all documents and agreements executed in connection with any of the foregoing,
from time to time, as any of the foregoing may be amended, modified, restated, or replaced from time to time.

                Senior Officer  means, with respect to any Loan Party, any of the chief executive officer, the chief financial
officer, the chief operating officer or the treasurer or assistant treasurer of such Loan Party.

                Special Adjustment Amount  means a Dollar amount equal to (i) for the first Fiscal Quarter in the 2005 Fiscal Year, $21,851,106,
(ii) for the second Fiscal Quarter in the 2005 Fiscal year, $11,963,185, (iii) for the third Fiscal
Quarter in the 2005 Fiscal Year, $612,383, and (iv) for the fourth Fiscal Quarter in the 2005 Fiscal
Year, $0.00. The Special Adjustment Amount to be added to EBITDA for the applicable Fiscal Quarter
in the 2005 Fiscal Year shall only be the amount set forth above for such Fiscal Quarter; such amounts
are not cumulative.

                Stated Amount  means, with respect to any Letter of Credit at any date of determination, (a) the maximum aggregate
amount available for drawing thereunder under any and all 

	

15

	
circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under such
Letter of Credit.

                Subordination Agreements  means all subordination agreements executed by a holder of subordinated debt in favor of the
Administrative Agent and the Lenders from time to time after the Closing Date in form and substance
and on terms and conditions satisfactory to Administrative Agent.

                Subsidiary  means, with respect to any Person, a corporation, partnership, limited liability company or
other entity of which such Person owns, directly or indirectly, such number of outstanding Capital
Securities as have more than 50% of the ordinary voting power for the election of directors or other
managers of such corporation, partnership, limited liability company or other entity. Unless the
context otherwise requires, each reference to Subsidiaries herein shall be a reference to Subsidiaries
of the Company.

                Swing Line Availability  means the lesser of (a) the Swing Line Commitment Amount and (b) Revolving Loan Commitment
less Revolving Outstandings at such time.

                Swing Line Commitment Amount  means $5,000,000, as reduced from time to time pursuant to Section 6.1, which commitment constitutes a subfacility of the Revolving Commitment of the Swing Line Lender.

                Swing Line Lender  means LaSalle.

                Swing Line Loan  - see Section 2.2.4.

                Taxes  means any and all present and future taxes, duties, levies, imposts, deductions, assessments,
charges or withholdings, and any and all liabilities (including interest and penalties and other
additions to taxes) with respect to the foregoing, but excluding Excluded Taxes.

                Termination Date  means the earlier to occur of (a) April 13, 2007, or (b) such other date on which
the Commitments terminate pursuant to SECTION 6 or SECTION 13.

                Termination Event  means, with respect to a Pension Plan that is subject to Title IV of ERISA, (a) a
Reportable Event, (b) the withdrawal of Company or any other member of the Controlled Group
from such Pension Plan during a plan year in which Company or any other member of the Controlled
Group was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or was
deemed such under Section 4068(f) of ERISA, (c) the termination of such Pension Plan, the
filing of a notice of intent to terminate the Pension Plan or the treatment of an amendment of such
Pension Plan as a termination under Section 4041 of ERISA, (d) the institution by the PBGC
of proceedings to terminate such Pension Plan or (e) any event or condition that might constitute
grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer,
such Pension Plan.

                Total Funded Debt  means, as to any Person, without duplication, (a) all Debt of such Person for borrowed money
or which has been incurred in connection with the acquisition of assets (excluding Operating Leases),
including, without limitation, Debt permitted by Section 11.1(k), (b) all payments in respect of
item (a) above that were required to be made within one 

	

16

	
year from the date of any determination of Total Funded Debt, if the obligation to make such payments
shall constitute a current liability of the obligor under GAAP, (c) all Capitalized Rentals of such
Person, (d) any and all other Debt for borrowed money (other than undrawn Letters of Credit), and
(e) the face amount of all letters of credit (including, without limitation, Letters of Credit) on
which the Company or any of its Subsidiaries is the account party, unless any such letters of credit
(including, without limitation, Letters of Credit) and related fees are fully cash collateralized.

                Total Plan Liability  means, at any time, the present value of all vested and unvested accrued benefits under all
Pension Plans, determined as of the then most recent valuation date for each Pension Plan, using
PBGC actuarial assumptions for single employer plan terminations.

                type  - see Section 2.2.1.

                Unfunded Liability  means the amount (if any) by which the present value of all vested and unvested accrued benefits
under all Pension Plans exceeds the fair market value of all assets allocable to those benefits,
all determined as of the then most recent valuation date for each Pension Plan, using PBGC actuarial
assumptions for single employer plan terminations.

                Unmatured Event of Default  means any event that, if it continues uncured, will, with lapse of time or notice or both, constitute
an Event of Default.

                Withholding Certificate  - see Section 7.6(d).

                Wholly-Owned Subsidiary  means, as to any Person, a Subsidiary all of the Capital Securities of which (except directors’
qualifying Capital Securities) are at the time directly or indirectly owned by such Person and/or
another Wholly-Owned Subsidiary of such Person.

	 

	 	                1.2     Other Interpretive Provisions.
		 

	 	
                (a)    The meanings of defined terms are equally applicable to the singular and plural forms of the defined
terms.

		 
	 	
                (b)    Section, Annex, Schedule and Exhibit references are to this Agreement unless otherwise specified.

		 
	 	                (c)    The term “including” is not limiting and means “including without limitation.”
		 
	 	
                (d)    In the computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including”; the words “to” and “until” each mean “to
but excluding”, and the word “through” means “to and including.”

		 
	 	
                (e)    Unless otherwise expressly provided herein, (i) references to agreements (including this Agreement
and the other Loan Documents) and other contractual instruments shall be deemed to include all subsequent
amendments, restatements, supplements and other modifications thereto, but only to the extent such
amendments, restatements, supplements and other modifications are not prohibited by the terms of
any Loan Document, and (ii) references to any statute or regulation shall be construed as including
all statutory and 

	

17

	 	regulatory provisions amending, replacing, supplementing or interpreting such statute or regulation.
		 
	 	
                (f)    This Agreement and the other Loan Documents may use several different limitations, tests or measurements
to regulate the same or similar matters. All such limitations, tests and measurements are cumulative
and each shall be performed in accordance with its terms.

		 
	 	
                (g)    This Agreement and the other Loan Documents are the result of negotiations among and have been reviewed
by counsel to the Administrative Agent, the Company, the Lenders and the other parties thereto and
are the products of all parties. Accordingly, they shall not be construed against the Administrative
Agent or the Lenders merely because of the Administrative Agent’s or Lenders’ involvement
in their preparation.

		 
	 	
                (h)    Unless the context otherwise requires, accounting terms herein that are not defined herein shall be
determined under GAAP. All financial measurements contemplated hereunder respecting the Company shall
be made and calculated for the Company on a consolidated basis in accordance with GAAP unless expressly
provided otherwise herein.

	 
	
                SECTION 2        COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.

	 

	 	
                2.1  Commitments.  On and subject to the terms and conditions of this Agreement, each of the Lenders, severally and for
itself alone, agrees to make loans to, and to issue or participate in letters of credit for the account
of, the Company as follows:

	 

	 	
                2.1.1    Revolving Loan Commitment.  Each Lender with a Revolving Loan Commitment severally, but not jointly, agrees to make
loans on a revolving basis (“Revolving Loans”) from time to time until the Termination Date in such Lender’s Pro Rata Share of such aggregate
amounts as the Company may request from all Lenders; provided that the Revolving Outstandings will not at any time exceed Revolving Loan Commitment (less the amount
of any Swing Line Loans outstanding at such time). 

		 

	 	
                2.1.2    L/C Commitment.  Subject to Section 2.3.1 and the other terms and provisions of this Agreement, the Issuing Lender agrees to issue letters of
credit (standby, documentary and trade), in each case containing such terms and conditions as are
permitted by this Agreement and are reasonably satisfactory to the Issuing Lender (each, a “Letter of Credit”), at the request of and for the account of the Company from time to time before the scheduled
Termination Date and, as more fully set forth in Section 2.3.2, each Lender agrees to purchase a participation in each such Letter of Credit; provided that (a) the aggregate Stated Amount of all Letters of Credit shall not at any time exceed $10,000,000 and
(b) the Revolving Outstandings shall not at any time exceed Revolving Loan Commitment (less
the amount of any Swing Line Loans outstanding at such time).

		 

	 	                2.2  Loan Procedures.
		 

	 	
                2.2.1            Various Types of Loans.  Each Revolving Loan shall be divided into tranches which are, either a Base Rate Loan
or a LIBOR Loan (each a “type” of Loan), as 

	

18

	 	
the Company shall specify in the related notice of borrowing or conversion pursuant to Section 2.2.2 or 2.2.3. LIBOR Loans having the same Interest Period which expire on the same day are sometimes called a “Group” or collectively “Groups”. Base Rate Loans and LIBOR Loans may be outstanding at the same time, provided that not more than six (6) different Groups of LIBOR Loans shall be outstanding at any one time.
All borrowings, conversions and repayments of Revolving Loans shall be effected so that each Lender
will have a ratable share (according to its Pro Rata Share) of all types and Groups of Loans. 

		 

	 	
                2.2.2            Borrowing Procedures.  The Company shall give written notice (each such written notice, a “Notice of Borrowing”) substantially in the form of Exhibit Error! Reference source not found. or telephonic notice (followed immediately by a Notice of Borrowing) to the Administrative Agent of
each proposed borrowing not later than (a) in the case of a Base Rate borrowing, 11:00 A.M.,
Chicago time, on the proposed date of such borrowing (2:00 P.M., Chicago time, if such borrowing
is a Swing Line Loan), and (b) in the case of a LIBOR borrowing, 11:00 A.M., Chicago time,
at least two Business Days (but if there is more than one Lender, then such time period shall be
three Business Days) prior to the proposed date of such borrowing. Each such notice shall be effective
upon receipt by the Administrative Agent, shall be irrevocable, and shall specify the date, amount
and type of borrowing and, in the case of a LIBOR borrowing, the initial Interest Period therefor.
Promptly upon receipt of such notice, the Administrative Agent shall advise each Lender thereof.
Not later than 1:00 P.M., Chicago time, on the date of a proposed borrowing, each Lender shall
provide the Administrative Agent at the office specified by the Administrative Agent with immediately
available funds covering such Lender’s Pro Rata Share of such borrowing and, so long as the
Administrative Agent has not received written notice that the conditions precedent set forth in SECTION 11 with respect to such borrowing have not been satisfied, the Administrative Agent shall pay over the
funds received by the Administrative Agent to the Company on the requested borrowing date. Each borrowing
shall be on a Business Day. Each Base Rate borrowing shall be in an aggregate amount of at least
$25,000 and an integral multiple of $25,000, and each LIBOR borrowing shall be in an aggregate amount
of at least $500,000 and an integral multiple of at least $500,000.

	 	

	 	                2.2.3            Conversion and Continuation Procedures. 
		 

	 	
                (a)    Subject to Section 2.2.1, the Company may, upon irrevocable written notice to the Administrative Agent in accordance with clause (b) below:

	 
	
                                (i)              elect, as of any Business Day, to convert any Loans (or any part thereof in an aggregate amount not
less than $500,000 a higher integral multiple of $500,000) into Loans of the other type; or

                                (ii)             elect, as of the last day of the applicable Interest Period, to continue any LIBOR Loans having Interest
Periods expiring on such day (or any part thereof in an aggregate amount not less than $500,000 or
a higher integral multiple of $500,000) for a new Interest Period;

	

19

	
provided  that after giving effect to any prepayment, conversion or continuation, the aggregate principal
amount of each Group of LIBOR Loans shall be at least $500,000 and an integral multiple of $500,000.

	 

	 	
                (b)    The Company shall give written notice (each such written notice, a “Notice of Conversion/Continuation”) substantially in the form of Exhibit Error! Reference source not found. or telephonic notice (followed immediately by a Notice of Conversion/Continuation) to the Administrative
Agent of each proposed conversion or continuation not later than (i) in the case of conversion
into Base Rate Loans, 11:00 A.M., Chicago time, on the proposed date of such conversion and
(ii) in the case of conversion into or continuation of LIBOR Loans, 11:00 A.M., Chicago
time, at least three Business Days prior to the proposed date of such conversion or continuation,
specifying in each case:

	 
	
                                (i)              the proposed date of conversion or continuation;

                                (ii)             the aggregate amount of Loans to be converted or continued;

                                (iii)            the type of Loans resulting from the proposed conversion or continuation; and

                                (iv)            in the case of conversion into, or continuation of, LIBOR Loans, the duration of the requested Interest
Period therefor.

	 

	 	
                (c)    If upon the expiration of any Interest Period applicable to LIBOR Loans, the Company has failed to
select timely a new Interest Period to be applicable to such LIBOR Loans, the Company shall be deemed
to have elected to convert such LIBOR Loans into Base Rate Loans effective on the last day of such
Interest Period.

		 
	 	
                (d)    The Administrative Agent will promptly notify each Lender of its receipt of a notice of conversion
or continuation pursuant to this Section 2.2.3 or, if no timely notice is provided by the Company, of the details of any automatic conversion.

		 
	 	
                (e)    Any conversion of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall
be subject to Section 8.4.

		 

	 	                2.2.4            Swing Line Facility.
		 

	 	
                (a)    The Swing Line Facility will be applicable only if there are two or more Lenders. The Administrative
Agent shall notify the Swing Line Lender upon the Administrative Agent’s receipt of any Notice
of Borrowing. Subject to the terms and conditions hereof, the Swing Line Lender may, in its sole
discretion, make available from time to time until the Termination Date advances (each, a “Swing Line Loan”) in accordance with any such notice, notwithstanding that after making a requested Swing Line
Loan, the sum of the Swing Line Lender’s Pro Rata Share of the Revolving Outstanding and all
outstanding Swing Line Loans, may exceed the Swing Line Lender’s Pro Rata Share of the Revolving
Commitment. The provisions of this Section 2.2.4 shall not relieve Lenders of their obligations to make Revolving Loans under Section 2.1.1; provided that if the Swing Line Lender makes a Swing Line Loan pursuant to any such notice, such
Swing Line Loan shall 

	

20

	 	
be in lieu of any Revolving Loan that otherwise may be made by the Lenders pursuant to such notice.
The aggregate amount of Swing Line Loans outstanding shall not exceed at any time Swing Line Availability.
Until the Termination Date, the Company may from time to time borrow, repay and reborrow under this
Section 2.2.4. Each Swing Line Loan shall be made pursuant to a Notice of Borrowing delivered by the Company to
the Administrative Agent in accordance with Section 2.2.2. Any such notice must be given no later than 2:00 P.M., Chicago time, on the Business Day of the proposed
Swing Line Loan. Unless the Swing Line Lender has received at least one Business Day’s prior
written notice from the Required Lenders instructing it not to make a Swing Line Loan, the Swing
Line Lender shall, notwithstanding the failure of any condition precedent set forth in Section 12.2, be entitled to fund that Swing Line Loan, and to have such Lender make Revolving Loans in accordance
with Section 2.2.4(c) or purchase participating interests in accordance with Section 2.2.4(d). Notwithstanding any other provision of this Agreement or the other Loan Documents, each Swing Line
Loan shall constitute a Base Rate Loan. The Company shall repay the aggregate outstanding principal
amount of each Swing Line Loan upon demand therefor by the Administrative Agent.

		 
	 	
                (b)    The entire unpaid balance of each Swing Line Loan and all other noncontingent Obligations shall be
immediately due and payable in full in immediately available funds on the Termination Date if not
sooner paid in full in cash or same day funds.

		 
	 	
                (c)    The Swing Line Lender, at any time and from time to time, but no less frequently than once weekly,
shall on behalf of the Company (and the Company hereby irrevocably authorizes the Swing Line Lender
to so act on its behalf) request each Lender with a Revolving Commitment (including the Swing Line
Lender) to make a Revolving Loan to the Company (which shall be a Base Rate Loan) in an amount equal
to that Lender’s Pro Rata Share of the principal amount of all Swing Line Loans (the “Refunded Swing Line Loan”) outstanding on the date such notice is given. Unless any of the events described in Section 13.1.4 has occurred (in which event the procedures of Section 2.2.4(d) shall apply) and regardless of whether the conditions precedent set forth in this Agreement to the
making of a Revolving Loan are then satisfied, each Lender shall disburse directly to the Administrative
Agent, its Pro Rata Share on behalf of the Swing Line Lender, prior to 2:00 P.M., Chicago time, in
immediately available funds on the date that notice is given (provided that such notice is given by 12:00 p.m., Chicago time, on such date). The proceeds of those Revolving
Loans shall be immediately paid to the Swing Line Lender and applied to repay the Refunded Swing
Line Loan.

		 
	 	
                (d)    If, prior to refunding a Swing Line Loan with a Revolving Loan pursuant to Section 2.2.4(c), one of the events described in Section 13.1.4 has occurred, then, subject to the provisions of Section 2.2.4(e) below, each Lender shall, on the date such Revolving Loan was to have been made for the benefit of
the Company, purchase from the Swing Line Lender an undivided participation interest in the Swing
Line Loan in an amount equal to its Pro Rata Share of such Swing Line Loan. Upon request, each Lender
shall promptly transfer to the Swing Line Lender, in immediately available funds, the amount of its
participation interest.

	

21

	 	
                (e)    Each Lender’s obligation to make Revolving Loans in accordance with Section 2.2.4(c) and to purchase participation interests in accordance with Section 2.2.4(d) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender may have against the Swing
Line Lender, the Company or any other Person for any reason whatsoever; (ii) the occurrence
or continuance of any Unmatured Event of Default or Event of Default; (iii) any inability of
the Company to satisfy the conditions precedent to borrowing set forth in this Agreement at any time,
or (iv) any other circumstance, happening or event whatsoever, whether or not similar to any
of the foregoing. If and to the extent any Lender shall not have made such amount available to the
Administrative Agent or the Swing Line Lender, as applicable, by 2:00 P.M., Chicago time, the
amount required pursuant to Sections 2.2.4(c) or 2.2.4(d), as the case may be, on the Business Day on which such Lender receives notice from the Administrative
Agent of such payment or disbursement (it being understood that any such notice received after noon,
Chicago time, on any Business Day shall be deemed to have been received on the next following Business
Day), such Lender agrees to pay interest on such amount to the Administrative Agent for the Swing
Line Lender’s account forthwith on demand, for each day from the date such amount was to have
been delivered to the Administrative Agent to the date such amount is paid, at a rate per annum equal
to (a) for the first three days after demand, the Federal Funds Rate from time to time in effect
and (b) thereafter, the Base Rate from time to time in effect.

		 
	 	
                (f)    Notwithstanding anything contained herein to the contrary, if there is only one Lender, then the Swingline
Commitment shall not be effective and the provisions contained in this Agreement regarding Swingline
Loans shall not be applicable.

		 

	 	                2.3  Letter of Credit Procedures.
		 

	 	
                2.3.1            L/C Applications.  The Company shall execute and deliver to the Issuing Lender the Master Letter of Credit
Agreement from time to time in effect. The Company shall give notice to the Administrative Agent
and the Issuing Lender of the proposed issuance of each Letter of Credit on a Business Day which
is at least three Business Days (or such lesser number of days as the Administrative Agent and the
Issuing Lender shall agree in any particular instance in their sole discretion) prior to the proposed
date of issuance of such Letter of Credit. Each such notice shall be accompanied by an L/C Application,
duly executed by the Company and in all respects satisfactory to the Administrative Agent and the
Issuing Lender, together with such other documentation as the Administrative Agent or the Issuing
Lender may request in support thereof, it being understood that each L/C Application shall specify,
among other things, the date on which the proposed Letter of Credit is to be issued, the expiration
date of such Letter of Credit (which shall not be later than the scheduled Termination Date (unless
such Letter of Credit is Cash Collateralized)) and whether such Letter of Credit is to be transferable
in whole or in part. Any Letter of Credit outstanding after the scheduled Termination Date which
is Cash Collateralized for the benefit of the Issuing Lender shall be the sole responsibility of
the Issuing Lender. So long as the Issuing Lender has not received written notice that the conditions
precedent set forth in SECTION 12 with respect to the issuance of such Letter of Credit have not been satisfied, the Issuing Lender
shall issue such Letter of Credit on the requested issuance date. The Issuing Lender shall 

	

22

	 	
promptly advise the Administrative Agent of the issuance of each Letter of Credit and of any amendment
thereto, extension thereof or event or circumstance changing the amount available for drawing thereunder.
In the event of any inconsistency between the terms of the Master Letter of Credit Agreement, any
L/C Application and the terms of this Agreement, the terms of this Agreement shall control so long
as this Agreement is in effect. To the extent any defaults any Master Letter of Credit Agreement
or any L/C Application are more restrictive than the Events of Default contained herein, the Events
of Default herein shall control so long as this Agreement is in effect. 

		 

	 	
                2.3.2            Participations in Letters of Credit. Concurrently with the issuance of each Letter of Credit, the Issuing Lender shall be deemed to have
sold and transferred to each Lender with a Revolving Loan Commitment, and each such Lender shall
be deemed irrevocably and unconditionally to have purchased and received from the Issuing Lender,
without recourse or warranty, an undivided interest and participation, to the extent of such Lender’s
Pro Rata Share, in such Letter of Credit and the Company’s reimbursement obligations with respect
thereto. If the Company does not pay any reimbursement obligation when due, the Company shall be
deemed to have immediately requested that the Lenders make a Revolving Loan which is a Base Rate
Loan in a principal amount equal to such reimbursement obligations. The Administrative Agent shall
promptly notify such Lenders of such deemed request and, without the necessity of compliance with
the requirements of Section 2.2.2, Section 12.2 or otherwise such Lender shall make available to the Administrative Agent its Pro Rata Share of such
Loan. The proceeds of such Loan shall be paid over by the Administrative Agent to the Issuing Lender
for the account of the Company in satisfaction of such reimbursement obligations. For the purposes
of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be the
Issuing Lender’s “participation” therein. The Issuing Lender hereby agrees, upon request
of the Administrative Agent or any Lender, to deliver to the Administrative Agent or such Lender
a list of all outstanding Letters of Credit issued by the Issuing Lender, together with such information
related thereto as the Administrative Agent or such Lender may reasonably request.

		 

	 	                2.3.3            Reimbursement Obligations.
		 

	 	
                (a)    The Company hereby unconditionally and irrevocably agrees to reimburse the Issuing Lender for each
payment or disbursement made by the Issuing Lender under any Letter of Credit honoring any demand
for payment made by the beneficiary thereunder, in each case on the date that such payment or disbursement
is made. Any amount not reimbursed on the date of such payment or disbursement shall bear interest
from the date of such payment or disbursement to the date that the Issuing Lender is reimbursed by
the Company therefor, payable on demand, at a rate per annum equal to the Base Rate from time to
time in effect plus the Base Rate Margin from time to time in effect plus, beginning on the third Business Day after receipt of notice from the Issuing Lender of such payment
or disbursement, 2%. The Issuing Lender shall notify the Company and the Administrative Agent whenever
any demand for payment is made under any Letter of Credit by the beneficiary thereunder; provided that the failure of the Issuing Lender to so notify the Company or the Administrative Agent shall
not affect the rights of the Issuing Lender or the Lenders in any manner whatsoever.

	

23

	 	
                (b)    The Company’s reimbursement obligations hereunder shall be irrevocable and unconditional under
all circumstances, including (a) any lack of validity or enforceability of any Letter of Credit,
this Agreement or any other Loan Document, (b) the existence of any claim, set-off, defense
or other right which any Loan Party may have at any time against a beneficiary named in a Letter
of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may
be acting), the Administrative Agent, the Issuing Lender, any Lender or any other Person, whether
in connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions
contemplated herein or any unrelated transactions (including any underlying transaction between any
Loan Party and the beneficiary named in any Letter of Credit), (c) the validity, sufficiency
or genuineness of any document which the Issuing Lender has determined complies on its face with
the terms of the applicable Letter of Credit, even if such document should later prove to have been
forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been
untrue or inaccurate in any respect, or (d) the surrender or impairment of any security for
the performance or observance of any of the terms hereof. Without limiting the foregoing, no action
or omission whatsoever by the Administrative Agent or any Lender (excluding any Lender in its capacity
as the Issuing Lender) under or in connection with any Letter of Credit or any related matters shall
result in any liability of the Administrative Agent or any Lender to the Company, or relieve the
Company of any of its obligations hereunder to any such Person.

		 

	 	
                2.3.4            Funding by Lenders to Issuing Lender. If the Issuing Lender makes any payment or disbursement under any Letter of Credit and (a) the
Company has not reimbursed the Issuing Lender in full for such payment or disbursement by 11:00 A.M.,
Chicago time, on the date of such payment or disbursement, (b) a Revolving Loan may not be made
in accordance with this Agreement, or (c) any reimbursement received by the Issuing Lender from
the Company is or must be returned or rescinded upon or during any bankruptcy or reorganization of
the Company or otherwise, each other Lender with a Revolving Loan Commitment shall be obligated to
pay to the Administrative Agent for the account of the Issuing Lender, in full or partial payment
of the purchase price of its participation in such Letter of Credit, its Pro Rata Share of such payment
or disbursement (but no such payment shall diminish the obligations of the Company under Section 2.3.3), and, upon notice from the Issuing Lender, the Administrative Agent shall promptly notify each other
Lender thereof. Each other Lender irrevocably and unconditionally agrees to so pay to the Administrative
Agent in immediately available funds for the Issuing Lender’s account the amount of such other
Lender’s Pro Rata Share of such payment or disbursement. If and to the extent any Lender shall
not have made such amount available to the Administrative Agent by 2:00 P.M., Chicago time,
on the Business Day on which such Lender receives notice from the Administrative Agent of such payment
or disbursement (it being understood that any such notice received after noon, Chicago time, on any
Business Day shall be deemed to have been received on the next following Business Day), such Lender
agrees to pay interest on such amount to the Administrative Agent for the Issuing Lender’s account
forthwith on demand, for each day from the date such amount was to have been delivered to the Administrative
Agent to the date such amount is paid, at a rate per annum equal to (a) for the first three
days after demand, the Federal Funds Rate from time to time in effect and (b) thereafter, the
Base Rate from time to time in effect. Any Lender’s failure to make available to the Administrative 

	

24

	 	
Agent its Pro Rata Share of any such payment or disbursement shall not relieve any other Lender of
its obligation hereunder to make available to the Administrative Agent such other Lender’s Pro
Rata Share of such payment, but no Lender shall be responsible for the failure of any other Lender
to make available to the Administrative Agent such other Lender’s Pro Rata Share of any such
payment or disbursement.

		 

	 	
                2.4  Commitments Several.  The failure of any Lender to make a requested Loan on any date shall not relieve any other Lender of
its obligation (if any) to make a Loan on such date, but no Lender shall be responsible for the failure
of any other Lender to make any Loan to be made by such other Lender.

	 

	 	
                2.5  Certain Conditions.  Except as otherwise provided in Sections 2.2.4 and 2.3.4 of this Agreement, no Lender shall have an obligation to make any Loan, or to permit the continuation
of or any conversion into any LIBOR Loan, and the Issuing Lender shall not have any obligation to
issue any Letter of Credit, if an Event of Default or Unmatured Event of Default exists.

	 
	
                SECTION 3        EVIDENCING OF LOANS.

	 

	 	
                3.1  Notes.  The Loans of each Lender shall be evidenced by a Note, with appropriate insertions, payable to the
order of such Lender in a face principal amount equal to such Lender’s Revolving Loan Commitment.

	 

	 	
                3.2  Recordkeeping.  The Administrative Agent, on behalf of each Lender, shall record in its records, the date and amount
of each Loan made by each Lender, each repayment or conversion thereof and, in the case of each LIBOR
Loan, the dates on which each Interest Period for such Loan shall begin and end. The aggregate unpaid
principal amount so recorded shall be rebuttably presumptive evidence of the principal amount of
the Loans owing and unpaid. The failure to so record any such amount or any error in so recording
any such amount shall not, however, limit or otherwise affect the Obligations of the Company hereunder
or under any Note to repay the principal amount of the Loans hereunder, together with all interest
accruing thereon.

	 
	
                SECTION 4        INTEREST.

	 

	 	
                4.1  Interest Rates.  The Company promises to pay interest on the unpaid principal amount of each Loan for the period commencing
on the date of such Loan until such Loan is paid in full in cash or same day funds as follows:

	 

	 	
                (a)    at all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base
Rate from time to time in effect plus the Base Rate Margin from time to time in effect; and

		 
	 	
                (b)    at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the LIBOR Rate
applicable to each Interest Period for such Loan plus the LIBOR Margin from time to time in effect;

	

25

	
provided  that at any time an Event of Default exists, unless the Required Lenders otherwise consent,
the interest rate applicable to each Loan shall be increased by 2% (and, in the case of Obligations
not bearing interest, such Obligations shall bear interest at the Base Rate applicable to Revolving
Loans plus 2%), provided further that such increase may thereafter be rescinded by the Required Lenders, notwithstanding Section 15.1. Notwithstanding the foregoing, upon the occurrence of an Event of Default under Sections 13.1.1 or 13.1.4, such increase shall occur automatically.

	 

	 	
                4.2  Interest Payment Dates.  Accrued interest on each Base Rate Loan shall be payable in arrears on the last day of each calendar
quarter and at maturity. Accrued interest on each LIBOR Loan shall be payable on the last day of
each Interest Period relating to such Loan (and, in the case of a LIBOR Loan with an Interest Period
in excess of three months, on the three-month anniversary of the first day of such Interest Period),
upon a prepayment of such Loan, and at maturity. After maturity, and at any time an Event of Default
exists, accrued interest on all Loans shall be payable on demand.

	 

	 	
                4.3  Setting and Notice of LIBOR Rates.  The applicable LIBOR Rate for each Interest Period shall be determined by the Administrative Agent,
and notice thereof shall be given by the Administrative Agent promptly to the Company and each Lender.
Each determination of the applicable LIBOR Rate by the Administrative Agent shall be conclusive and
binding upon the parties hereto, in the absence of demonstrable error. The Administrative Agent shall,
upon written request of the Company or any Lender, deliver to the Company or such Lender a statement
showing the computations used by the Administrative Agent in determining any applicable LIBOR Rate
hereunder.

	 

	 	
                4.4  Computation of Interest.  Interest shall be computed for the actual number of days elapsed on the basis of a year of 360 days.
The applicable interest rate for each Base Rate Loan shall change simultaneously with each change
in the Base Rate.

	 
	
                SECTION 5        FEES.

	 

	 	
                5.1  Closing Fee.  The Company agrees to pay to LaSalle such fees as may be set forth in the fee letter by and between
LaSalle and the Company dated as of the Closing Date. 

	 

	 	
                5.2  Non-Use Fee.  The Company agrees to pay to the Administrative Agent for the account of each Lender a non-use fee,
for the period from the Closing Date to the Termination Date, at the Non-Use Fee Rate in effect from
time to time of such Lender’s Pro Rata Share (as adjusted from time to time) of the unused amount
of the Revolving Commitment. For purposes of calculating usage under this Section, the Revolving
Commitment shall be deemed used to the extent of Revolving Outstandings. Such non-use fee shall be
payable in arrears on the last day of each calendar quarter and on the Termination Date for any period
then ending for which such non-use fee shall not have previously been paid. The non-use fee shall
be computed for the actual number of days elapsed on the basis of a year of 360 days.

	 

	 	                5.3  Letter of Credit Fees.  
		 

	 	
                (a)    The Company agrees to pay to the Administrative Agent for the account of each Lender a letter of credit
fee for each Letter of Credit equal to the L/C Fee Rate in effect from 

	

26

	 	
time to time of such Lender’s Pro Rata Share (as adjusted from time to time) of the undrawn amount
of such Letter of Credit (computed for the actual number of days elapsed on the basis of a year of
360 days); provided that, unless the Required Lenders otherwise consent, the rate applicable to each Letter of Credit
shall be increased by 2% at any time that an Event of Default exists. Such letter of credit fees
shall be payable in arrears on the last day of each calendar quarter and on the Termination Date
(or such later date on which such Letter of Credit expires or is terminated) for the period from
the date of the issuance of each Letter of Credit (or the last day on which the letter of credit
fee was paid with respect thereto) to the date such payment is due or, if earlier, the date on which
such Letter of Credit expired or was terminated.

		 
	 	
                (b)    In addition, with respect to each Letter of Credit, the Company agrees to pay to the Issuing Lender,
for its own account, (i) such fees and expenses as the Issuing Lender customarily requires in
connection with the issuance, negotiation, processing and/or administration of letters of credit
in similar situations, and (ii) if there is more than one Lender a party to this Agreement at the
time of issuance, at the time of issuance of any Letter of Credit a letter of credit fronting fee
in the amount equal to 0.125% of the face amount of each such Letter of Credit.

		 

	 	
                5.4  Administrative Agent’s Fees.  The Company agrees to pay to the Administrative Agent such agent’s fees as are mutually agreed
to from time to time by the Company and the Administrative Agent including the fees set forth in
the Agent Fee Letter.

	 
	
                SECTION 6        REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.

	 

	 	                6.1  Reduction or Termination of the Revolving Commitment.
		 

	 	                      6.1.1            Voluntary Reduction or Termination of the Revolving Commitment. The Company may from time to time on at least four Business Days’ prior written notice received
    by the Administrative Agent (which shall promptly advise each Lender thereof) permanently reduce
    the Revolving Commitment to an amount not less than the Revolving Outstandings plus the outstanding
    amount of all Swing Line Loans. Any such reduction shall be in an amount not less than $1,000,000
    or a higher integral multiple of $1,000,000. Concurrently with any reduction of the Revolving Commitment
    to zero, the Company shall pay all interest on the Revolving Loans, all non-use fees and all letter
    of credit fees and shall Cash Collateralize in full all obligations arising with respect to the Letters
    of Credit.

	
	 
		 

	 	
                6.1.2            All Reductions of the Revolving Commitment. All reductions of the Revolving Commitment shall reduce the Commitments ratably among the Lenders according
to their respective Pro Rata Shares.

		 

	 	                6.2  Prepayments; Cleandown.
		 

	 	
                6.2.1            Voluntary Prepayments.  The Company may from time to time prepay the Loans in whole or in part; provided that the Company shall
give the Administrative Agent (which shall promptly advise each Lender) notice thereof not later
than 

	

27

	 	
11:00 A.M., Chicago time, on the day of such prepayment (which shall be a Business Day), specifying
the Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment shall
be in an amount equal to $25,000 or a higher integral multiple of $25,000.

		 

	 	
                6.2.2    Clean Down.  The Company shall cause the Revolving Outstandings, other than the Stated Amount of all
Letters of Credit, to be zero dollars ($0.00) for no less than sixty (60) consecutive days in each
Fiscal Year. 

		 

	 	                6.2.3            Mandatory Prepayments.
		 

	 	
                (a)    The Company shall make a prepayment of the Revolving Loans (applied as set forth in Section 6.3.1) until Paid in Full upon the occurrence of any of the following (each a “Mandatory Prepayment Event”) at the following times and in the following amounts (such applicable amounts being referred
to as “Designated Proceeds”) unless an Event of Default or Unmatured Event of Default is then existing, in which case the
provisions of this Agreement shall be applicable:

		 

		(i)             	
Concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any Asset Disposition,
in an amount equal to 100% of such Net Cash Proceeds, except as otherwise required by the Prudential
Debt Documents (as such documents exist on the date hereof).

			 
		(ii)            	
Concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of Capital
Securities of any Loan Party (excluding (x) any issuance of Capital Securities pursuant to any
employee or director option program, benefit plan or compensation program and (y) any issuance
by a Subsidiary to the Company or another Subsidiary), in an amount equal to 100% of such Net Cash
Proceeds.

			 
		(iii)	
Concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of any Debt
of any Loan Party (excluding Debt permitted by Section 11.1), in an amount equal to 100% of such Net Cash Proceeds.

			 
		(iv)           	
Concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any Insurance Proceeds
the amount of any such Net Cash Proceeds in excess of $250,000 in the aggregate per calendar year.

			 

	 	
                (b)    If on any day the Revolving Outstandings plus the outstanding amount of the Swing Line Loan exceeds the Revolving Commitment, the Company shall
immediately prepay Revolving Loans and/or Cash Collateralize the outstanding Letters of Credit, or
do a combination of the foregoing, in an amount sufficient to eliminate such excess.

		 
	 	
                (c)    If on any day on which the Revolving Commitment is reduced pursuant to Section 6.1.1 the Revolving Outstandings plus the outstanding amount of the Swing Line Loan exceeds the Revolving Commitment, the Company shall
immediately prepay 

	

28

	 	
Revolving Loans or Cash Collateralize the outstanding Letters of Credit, or do a combination of the
foregoing, in an amount sufficient to eliminate such excess.

		 

	 	                6.3  Manner of Prepayments.
		 

	 	
                6.3.1            All Prepayments.  Each voluntary partial prepayment shall be in a principal amount of $25,000 or a higher
integral multiple of $25,000. Any partial prepayment of a Group of LIBOR Loans shall be subject to
the proviso to Section 2.2.3(a). Any prepayment of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall
include interest on the principal amount being repaid and shall be subject to Section 8.4. Except as otherwise provided by this Agreement, all principal payments in respect of the Loans (other
than the Swing Line Loans) shall be applied first, to repay outstanding Base Rate Loans and then
to repay outstanding LIBOR Rate Loans in direct order of Interest Period maturities.

		 

	 	                6.4  Repayments.
		 

	 	
                6.4.1            Revolving Loans.  The Revolving Loans of each Lender shall be paid in full in cash or same day funds and the Revolving
Commitment shall terminate on the Termination Date.

	 
	
                SECTION 7        MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

	 

	 	
                7.1  Making of Payments.  All payments of principal or interest on the Notes, and of all fees, shall be made by the Company to
the Administrative Agent in immediately available funds at the office specified by the Administrative
Agent not later than noon, Chicago time, on the date due; and funds received after that hour shall
be deemed to have been received by the Administrative Agent on the following Business Day. The Administrative
Agent shall promptly remit to each Lender its share of all such payments received in collected funds
by the Administrative Agent for the account of such Lender. All payments under Section 8.1 shall be made by the Company directly to the Lender entitled thereto without setoff, counterclaim
or other defense.

	 

	 	
                7.2  Application of Certain Payments.  So long as no Unmatured Event of Default or Event of Default has occurred and is continuing, (a) payments
matching specific scheduled payments then due shall be applied to those scheduled payments and (b)
voluntary and mandatory prepayments shall be applied as set forth in Sections 6.2 and 6.3. After the occurrence and during the continuance of an Unmatured Event of Default or Event of Default,
all amounts collected or received by the Administrative Agent or any Lender from the Company, any
Loan Party, or as proceeds from the sale of, or other realization upon, all or any part of their
assets shall be applied as the Administrative Agent shall determine in its discretion unless otherwise
set forth in this Agreement. Concurrently with each remittance to any Lender of its share of any
such payment, the Administrative Agent shall advise such Lender as to the application of such payment. 

	 

	 	
                7.3  Due Date Extension.  If any payment of principal or interest with respect to any of the Loans, or of any fees, falls due
on a day which is not a Business Day, then such due date shall be extended to the immediately following
Business Day (unless, in the case of a 

	

29

	
LIBOR Loan, such immediately following Business Day is the first Business Day of a calendar month,
in which case such due date shall be the immediately preceding Business Day) and, in the case of
principal, additional interest shall accrue and be payable for the period of any such extension.

	 

	 	
                7.4  Setoff.  The Company agrees for itself and each other Loan Party that the Administrative Agent and each Lender
have all rights of set-off and bankers’ lien provided by applicable law, and in addition thereto,
the Company, for itself and each other Loan Party, agrees that at any time any Event of Default exists,
the Administrative Agent and each Lender may apply to the payment of any Obligations of the Company
and each other Loan Party hereunder, whether or not then due, any and all balances, credits, deposits,
accounts or moneys of the Company and each other Loan Party then or thereafter with the Administrative
Agent or such Lender.

	 

	 	
                7.5  Proration of Payments.  If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by application
of offset or otherwise, on account of (a) principal of or interest on any Loan, but excluding
(i) any payment pursuant to Section 8.7 or 15.6 and (ii) payments of interest on any Affected Loan) or (b) its participation in any Letter
of Credit) in excess of its applicable Pro Rata Share of payments and other recoveries obtained by
all Lenders on account of principal of and interest on the Loans (or such participation) then held
by them, then such Lender shall purchase from the other Lenders such participations in the Loans
(or sub-participations in Letters of Credit) held by them as shall be necessary to cause such purchasing
Lender to share the excess payment or other recovery ratably with each of them; provided that if
all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing
Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery.

	 

	 	                7.6  Taxes.
		 

	 	
                (a)    All payments made by the Company hereunder or under any Loan Documents shall be made without setoff,
counterclaim, or other defense. To the extent permitted by applicable law, all payments hereunder
or under the Loan Documents (including any payment of principal, interest, or fees) to, or for the
benefit, of any person shall be made by the Company free and clear of and without deduction or withholding
for, or account of, any Taxes now or hereinafter imposed by any taxing authority.

		 
	 	
                (b)    If the Company makes any payment hereunder or under any Loan Document in respect of which it is required
by applicable law to deduct or withhold any Taxes, the Company shall increase the payment hereunder
or under any such Loan Document such that after the reduction for the amount of Taxes withheld (and
any taxes withheld or imposed with respect to the additional payments required under this Section 7.6(b)), the amount paid to the Lenders or the Administrative Agent equals the amount that was payable hereunder
or under any such Loan Document without regard to this Section 7.6(b). To the extent the Company withholds any Taxes on payments hereunder or under any Loan Document, the
Company shall pay the full amount deducted to the relevant taxing authority within the time allowed
for payment under applicable law and shall deliver to the Administrative Agent within 30 days
after it has made payment to such authority a receipt issued by such authority 

	

30

	 	
(or other evidence reasonably satisfactory to the Administrative Agent) evidencing the payment of all
amounts so required to be deducted or withheld from such payment.

		 
	 	
                (c)    If any Lender or the Administrative Agent is required by law to make any payments of any Taxes on
or in relation to any amounts received or receivable hereunder or under any other Loan Document,
or any Tax is assessed against a Lender or the Administrative Agent with respect to amounts received
or receivable hereunder or under any other Loan Document, the Company will indemnify such person
against (i) such Tax (and any reasonable counsel fees and expenses associated with such Tax)
and (ii) any taxes imposed as a result of the receipt of the payment under this Section 7.6(c). A certificate prepared in good faith as to the amount of such payment by such Lender or the Administrative
Agent shall, absent manifest error, be final, conclusive, and binding on all parties.

		 
	 	
                (d)(i)            To the extent permitted
by applicable law, each Lender that is not a United States person within the meaning of Code Section
7701(a)(30) (a “Non-U.S. Participant”) shall deliver to the Company and the Administrative Agent on or prior to the Closing Date (or
in the case of a Lender that is an Assignee, on the date of such assignment to such Lender) two accurate
and complete original signed copies of IRS Form W 8BEN, W 8ECI, or W 8IMY (or any
successor or other applicable form prescribed by the IRS) certifying to such Lender’s entitlement
to a complete exemption from, or a reduced rate in, United States withholding tax on interest payments
to be made hereunder or any Loan. If a Lender that is a Non-U.S. Participant is claiming a complete
exemption from withholding on interest pursuant to Code Sections 871(h) or 881(c), the Lender
shall deliver (along with two accurate and complete original signed copies of IRS Form W 8BEN)
a certificate in form and substance reasonably acceptable to Administrative Agent (any such certificate,
a “Withholding Certificate”). In addition, each Lender that is a Non-U.S. Participant agrees that from time to time
after the Closing Date, (or in the case of a Lender that is an Assignee, after the date of the assignment
to such Lender), when a lapse in time (or change in circumstances occurs) renders the prior certificates
hereunder obsolete or inaccurate in any material respect, such Lender shall, to the extent permitted
under applicable law, deliver to the Company and the Administrative Agent two new and accurate and
complete original signed copies of an IRS Form W 8BEN, W 8ECI, or W 8IMY (or any successor
or other applicable forms prescribed by the IRS), and if applicable, a new Withholding Certificate,
to confirm or establish the entitlement of such Lender or the Administrative Agent to an exemption
from, or reduction in, United States withholding tax on interest payments to be made hereunder or any Loan.

		 
	 	
                       (ii) Each
Lender that is not a Non-U.S. Participant (other than any such Lender which is taxed as a corporation
for U.S. federal income tax purposes) shall provide two properly completed and duly executed copies
of IRS Form W 9 (or any successor or other applicable form) to the Company and the Administrative
Agent certifying that such Lender is exempt from United States backup withholding tax. To the extent
that a form provided pursuant to this Section 7.6(d)(ii) is rendered obsolete or inaccurate in any material respects as result of change in circumstances with
respect to the status of a Lender, such Lender shall, to the extent permitted by applicable law,
deliver to the Company and the 

	

31

	 	
Administrative Agent revised forms necessary to confirm or establish the entitlement to such Lender’s
or Agent’s exemption from United States backup withholding tax.

		 
	 	
                       (iii) The
Company shall not be required to pay additional amounts to a Lender, or indemnify any Lender, under
this Section 7.6 to the extent that such obligations would not have arisen but for the failure of such Lender to comply
with Section 7.6(d).

		 
	 	
                       (iv) Each
Lender agrees to indemnify the Administrative Agent and hold the Administrative Agent harmless for
the full amount of any and all present or future Taxes and related liabilities (including penalties,
interest, additions to tax and expenses, and any Taxes imposed by any jurisdiction on amounts payable
to the Administrative Agent under this Section 7.6) which are imposed on or with respect to principal, interest or fees payable to such Lender hereunder
and which are not paid by the Company pursuant to this Section 7.6, whether or not such Taxes or related liabilities were correctly or legally asserted. This indemnification
shall be made within 30 days from the date the Administrative Agent makes written demand therefor.

	 
	
             SECTION 8        INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

	 

	
                  8.1  Increased Costs.  (a) If, after the date hereof, the adoption of, or any change in, any applicable law, rule or
  regulation, or any change in the interpretation or administration of any applicable law, rule or
  regulation by any governmental authority, central bank or comparable agency charged with the interpretation
  or administration thereof, or compliance by any Lender with any request or directive (whether or
  not having the force of law) of any such authority, central bank or comparable agency: (i) shall
  impose, modify or deem applicable any reserve (including any reserve imposed by the FRB, but excluding
  any reserve included in the determination of the LIBOR Rate pursuant to SECTION 4), special deposit or similar requirement against assets of, deposits with or for the account of, or
  credit extended by any Lender; or (ii) shall impose on any Lender any other condition affecting
  its LIBOR Loans, its Note or its obligation to make LIBOR Loans; and the result of anything described
  in clauses (i) and (ii) above is to increase the cost to (or to impose a cost on) such Lender
  (or any LIBOR Office of such Lender) of making or maintaining any LIBOR Loan, or to reduce the amount
  of any sum received or receivable by such Lender (or its LIBOR Office) under this Agreement or under
  its Note with respect thereto, then upon demand by such Lender (which demand shall be accompanied
  by a statement setting forth the basis for such demand and a calculation of the amount thereof in
  reasonable detail, a copy of which shall be furnished to the Administrative Agent), the Company shall
  pay directly to such Lender such additional amount as will compensate such Lender for such increased
  cost or such reduction, so long as such amounts have accrued on or after the day which is 180 days
  prior to the date on which such Lender first made demand therefor.

	 
	
                (b)           If any Lender shall reasonably
determine that any change in, or the adoption or phase-in of, any applicable law, rule or regulation
regarding capital adequacy, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or administration
thereof, or the compliance by any Lender or any Person controlling such Lender with any request or
directive regarding capital adequacy (whether or not having the force of law) of any such authority,
central bank or 

	

32

	
comparable agency, has or would have the effect of reducing the rate of return on such Lender’s
or such controlling Person’s capital as a consequence of such Lender’s obligations hereunder
or under any Letter of Credit to a level below that which such Lender or such controlling Person
could have achieved but for such change, adoption, phase-in or compliance (taking into consideration
such Lender’s or such controlling Person’s policies with respect to capital adequacy) by
an amount deemed by such Lender or such controlling Person to be material, then from time to time,
upon demand by such Lender (which demand shall be accompanied by a statement setting forth the basis
for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall
be furnished to the Administrative Agent), the Company shall pay to such Lender such additional amount
as will compensate such Lender or such controlling Person for such reduction so long as such amounts
have accrued on or after the day which is 180 days prior to the date on which such Lender first made
demand therefor.

	 

	 	                8.2  Basis for Determining Interest Rate Inadequate or Unfair. If:

	 

	 	
                (a)    the Administrative Agent reasonably determines (which determination shall be binding and conclusive
on the Company) that by reason of circumstances affecting the interbank LIBOR market adequate and
reasonable means do not exist for ascertaining the applicable LIBOR Rate; or

		 
	 	
                (b)    the Required Lenders advise the Administrative Agent that the LIBOR Rate as determined by the Administrative
Agent will not adequately and fairly reflect the cost to such Lenders of maintaining or funding LIBOR
Loans for such Interest Period (taking into account any amount to which such Lenders may be entitled
under Section 8.1) or that the making or funding of LIBOR Loans has become impracticable as a result of an event occurring
after the date of this Agreement which in the opinion of such Lenders materially affects such Loans;

	 
	
then  the Administrative Agent shall promptly notify the other parties thereof and, so long as such
circumstances shall continue, (i) no Lender shall be under any obligation to make or convert
any Base Rate Loans into LIBOR Loans and (ii) on the last day of the current Interest Period
for each LIBOR Loan, such Loan shall, unless then repaid in full in cash or same day funds, automatically
convert to a Base Rate Loan.

	 

	
                  8.3  Changes in Law Rendering LIBOR Loans Unlawful.  If any change in, or the adoption of any new, law or regulation, or any change in the interpretation
  of any applicable law or regulation by any governmental or other regulatory body charged with the
  administration thereof, should make it (or in the good faith judgment of any Lender cause a substantial
  question as to whether it is) unlawful for any Lender to make, maintain or fund LIBOR Loans, then
  such Lender shall promptly notify each of the other parties hereto and, so long as such circumstances
  shall continue, (a) such Lender shall have no obligation to make or convert any Base Rate Loan
  into a LIBOR Loan (but shall make Base Rate Loans concurrently with the making of or conversion of
  Base Rate Loans into LIBOR Loans by the Lenders which are not so affected, in each case in an amount
  equal to the amount of LIBOR Loans which would be made or converted into by such Lender at such time
  in the absence of such circumstances) and (b) on the last day of the current Interest Period
  for each LIBOR Loan of such Lender (or, in any event, on such earlier date as may be required by
  the relevant law, regulation or interpretation), such LIBOR Loan 

	

33

	
shall, unless then repaid in full in cash or same day funds, automatically convert to a Base Rate Loan.
Each Base Rate Loan made by a Lender which, but for the circumstances described in the foregoing
sentence, would be a LIBOR Loan (an “Affected Loan”) shall remain outstanding for the period corresponding to the Group of LIBOR Loans of which
such Affected Loan would be a part absent such circumstances.

	 

	
                  8.4  Funding Losses.  The Company hereby agrees that upon demand by any Lender (which demand shall be accompanied by a statement
  setting forth the basis for the amount being claimed, a copy of which shall be furnished to the Administrative
  Agent), the Company will indemnify such Lender against any net loss or expense which such Lender
  may sustain or incur (including any net loss or expense incurred by reason of the liquidation or
  reemployment of deposits or other funds acquired by such Lender to fund or maintain any LIBOR Loan),
  as reasonably determined by such Lender, as a result of (a) any payment, prepayment or conversion
  of any LIBOR Loan of such Lender on a date other than the last day of an Interest Period for such
  Loan (including any conversion pursuant to Section 8.3) or (b) any failure of the Company to borrow, convert or continue any Loan on a date specified
  therefor in a notice of borrowing, conversion or continuation pursuant to this Agreement. For this
  purpose, all notices to the Administrative Agent pursuant to this Agreement shall be deemed to be
  irrevocable.

	 

	
                  8.5  Right of Lenders to Fund through Other Offices. Each Lender may, if it so elects, fulfill its commitment as to any LIBOR Loan by causing a foreign
  branch or Affiliate of such Lender to make such Loan; provided that in such event for the purposes of this Agreement such Loan shall be deemed to have been made
  by such Lender and the obligation of the Company to repay such Loan shall nevertheless be to such
  Lender and shall be deemed held by it, to the extent of such Loan, for the account of such branch
  or Affiliate.

	 

	
                  8.6  Discretion of Lenders as to Manner of Funding.  Notwithstanding any provision of this Agreement to the contrary, each Lender shall be entitled to fund
  and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood,
  however, that for the purposes of this Agreement all determinations hereunder shall be made as if
  such Lender had actually funded and maintained each LIBOR Loan during each Interest Period for such
  Loan through the purchase of deposits having a maturity corresponding to such Interest Period and
  bearing an interest rate equal to the LIBOR Rate for such Interest Period.

	 

	                8.7  Mitigation of Circumstances; Replacement of Lenders.
		 

	 	
       (a)    Each Lender shall promptly notify the Company and the Administrative Agent of any event of which it
has knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, (i) any obligation by the Company to pay any amount pursuant to Section 7.6 or 8.1 or (ii) the occurrence of any circumstances described in Section 8.2 or 8.3 (and, if any Lender has given notice of any such event described in clause (i) or (ii) above
and thereafter such event ceases to exist, such Lender shall promptly so notify the Company and the
Administrative Agent). Without limiting the foregoing, each Lender will designate a different funding
office if such designation will avoid (or reduce the cost to the Company of) any event described
in clause (i) or (ii) above 

	

34

	 	
and such designation will not, in such Lender’s sole judgment, be otherwise disadvantageous to
such Lender.

		 
	 	
                (b)    If the Company becomes obligated to pay additional amounts to any Lender pursuant to Section 7.6 or 8.1, or any Lender gives notice of the occurrence of any circumstances described in Section 8.2 or 8.3, the Company may designate another bank which is acceptable to the Administrative Agent and the Issuing
Lender in their reasonable discretion (such other bank being called a “Replacement Lender”) to purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse
to or warranty by, or expense to, such Lender, for a purchase price equal to the outstanding principal
amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and
all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under
this Agreement, and to assume all the obligations of such Lender hereunder, and, upon such purchase
and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto
or have any rights hereunder (other than rights with respect to indemnities and similar rights applicable
to such Lender prior to the date of such purchase and assumption) and shall be relieved from all
obligations to the Company hereunder, and the Replacement Lender shall succeed to the rights and
obligations of such Lender hereunder.

		 

	
                  8.8  Conclusiveness of Statements; Survival of Provisions. Determinations and statements of any Lender pursuant to Sections 8.1, 8.2, 8.3 or 8.4 shall be conclusive absent demonstrable error. Lenders may use reasonable averaging and attribution
  methods in determining compensation under Sections 8.1 and 8.4, and the provisions of such Sections shall survive repayment of the Obligations, cancellation of any
  Notes, expiration or termination of the Letters of Credit and termination of this Agreement.

	 
	
                SECTION 9        REPRESENTATIONS AND WARRANTIES.

                To induce the Administrative Agent and the Lenders to enter into this Agreement and to induce the Lenders
to make Loans and issue and participate in Letters of Credit hereunder, the Company represents and
warrants to the Administrative Agent and the Lenders for itself and each Loan Party that:

	 

	
                  9.1  Organization; Locations of Executive Office; FEIN. Each Loan Party (other than Dormant Entities) is validly existing and in good standing under the laws
  of its jurisdiction of organization; and each Loan Party is duly qualified to do business in each
  jurisdiction where, because of the nature of its activities or properties, such qualification is
  required, except for such jurisdictions where the failure to so qualify would not have a Material
  Adverse Effect. On the date hereof, Schedule 9.1 sets forth (a) the Company’s and each other
  Loan Party’s jurisdiction of organization, (b) the location of the Company’s and each other
  Loan Party’s chief executive office, (c) the Company’s and each other Loan Party’s
  exact legal name as it appears on its organizational documents, (d) the Company’s and each other
  Loan Party’s organizational identification number (to the extent the Company’s and each
  other Loan Party’s is organized in a jurisdiction which assigns such numbers), and (e) the Company’s
  and each other Loan Party’s federal employer identification number.

	

35

	
                  9.2  Authorization; No Conflict.  Each Loan Party is duly authorized to execute and deliver each Loan Document to which it is a party,
  the Company is duly authorized to borrow monies hereunder and each Loan Party is duly authorized
  to perform its Obligations under each Loan Document to which it is a party. The execution, delivery
  and performance by each Loan Party of each Loan Document to which it is a party, and the borrowings
  by the Company hereunder, do not and will not (a) require any consent or approval of any governmental
  agency or authority (other than any consent or approval which has been obtained and is in full force
  and effect), (b) conflict with (i) any provision of law, (ii) the charter, by-laws
  or other organizational documents of any Loan Party or (iii) any material agreement, indenture,
  instrument or other document, or any judgment, order or decree, which is binding upon any Loan Party
  or any of their respective properties or (c) require, or result in, the creation or imposition
  of any Lien on any asset of any Loan Party.

	 

	
                  9.3  Validity and Binding Nature.  Each of this Agreement and each other Loan Document to which any Loan Party is a party is the legal,
  valid and binding obligation of such Person, enforceable against such Person in accordance with its
  terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’
  rights generally and to general principles of equity.

	 

	
                  9.4  Financial Condition.  The draft audited consolidated financial statements of the Company and its Subsidiaries as at Company’s
  2004 Fiscal Year end and the unaudited consolidated financial statements of the Company and the Subsidiaries
  as of March 5, 2005, copies of each of which have been delivered to each Lender, were prepared in
  accordance with GAAP (subject, in the case of such unaudited monthly statements, prepared consistent
  with current practice of the company (i.e., not in accordance with GAAP)) and present fairly the
  consolidated financial condition of the Company and its Subsidiaries as at such dates and the results
  of their operations for the periods then ended.

	 

	
                  9.5  No Material Adverse Change.  Since February 5, 2005, there has been no material adverse change in the financial condition, operations,
  assets, business, properties or prospects of the Loan Parties taken as a whole.

	 

	
                  9.6  Litigation and Contingent Liabilities.  No litigation (including derivative actions), arbitration proceeding or governmental investigation
  or proceeding is pending or, to the Company’s knowledge, threatened against any Loan Party which
  might reasonably be expected to have a Material Adverse Effect. No Loan Party has any Contingent
  Liabilities which could reasonably be likely to have a Material Adverse Effect.

	 

	
                  9.7  Ownership of Properties; Liens.  Each Loan Party owns good and, in the case of real property, marketable title to, or holds valid leasehold
  interests in, all of its properties and assets, real and personal, tangible and intangible, of any
  nature whatsoever (including patents, trademarks, trade names, service marks and copyrights), free
  and clear of all Liens, charges and claims (including infringement claims with respect to patents,
  trademarks, service marks, copyrights and the like) except Permitted Liens. There are no financing
  statements, mortgages or similar documents executed by the Company or any other Loan Party or of
  public record against the Company or any other Loan Party, except with respect to Permitted Liens.

	

36

	
                  9.8  Equity Ownership; Subsidiaries.  All issued and outstanding Capital Securities of each Loan Party are duly authorized and validly issued,
  fully paid, non-assessable, and (except with respect to the Company) free and clear of all Liens,
  and such securities were issued in compliance with all applicable state and federal laws concerning
  the issuance of securities. Schedule 9.8 sets forth the authorized Capital Securities of each Loan Party as of the Closing Date. All of the
  issued and outstanding Capital Securities of each Wholly-Owned Subsidiary is, directly or indirectly,
  owned by the Company and is set forth on Schedule 9.8. Except for certain Dormant Entities, the Company has no Subsidiaries that are not Wholly-Owned Subsidiaries.
  As of the Closing Date, except as set forth on Schedule 9.8, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or other
  similar agreements or understandings for the purchase or acquisition of any Capital Securities of
  any Loan Party.

	 

	                9.9  Pension Plans.
		 

	 	
        (a)    Each Pension Plan complies in all material respects with all applicable requirements of law and regulations.
No contribution failure under Section 412 of the Code, Section 302 of ERISA or the terms
of any Pension Plan has occurred with respect to any Pension Plan, sufficient to give rise to a Lien
under Section 302(f) of ERISA, or otherwise to have a Material Adverse Effect. There are no
pending or, to the knowledge of Company, threatened, claims, actions, investigations or lawsuits
against any Pension Plan, any fiduciary of any Pension Plan, or Company or other any member of the
Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan which could reasonably
be expected to have a Material Adverse Effect. Neither the Company nor any other member of the Controlled
Group has engaged in any prohibited transaction (as defined in Section 4975 of the Code or Section 406
of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan which would subject that
Person to any material liability. Within the past five years, neither the Company nor any other member
of the Controlled Group has engaged in a transaction which resulted in a Pension Plan with an Unfunded
Liability being transferred out of the Controlled Group, which could reasonably be expected to have
a Material Adverse Effect. No Termination Event has occurred or is reasonably expected to occur with
respect to any Pension Plan, which could reasonably be expected to have a Material Adverse Effect.

		 
	 	
        (b)    All contributions (if any) have been made to any Multiemployer Pension Plan that are required to be
made by the Company or any other member of the Controlled Group under the terms of the plan or of
any collective bargaining agreement or by applicable law which if not so made could reasonably be
expected to have a Material Adverse Effect; neither the Company nor any other member of the Controlled
Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred any withdrawal
liability with respect to any such plan or received notice of any claim or demand for withdrawal
liability or partial withdrawal liability from any such plan, which, in any such case, could reasonably
be expected to have a Material Adverse Effect, and no condition has occurred which, if continued,
could result in a withdrawal or partial withdrawal from any such plan; and neither the Company nor
any other member of the Controlled Group has received any notice that any Multiemployer Pension Plan
is in reorganization, that increased contributions may be required to avoid a reduction in plan benefits
or the imposition of any excise tax, that 

	

37

	 	
any such plan is or has been funded at a rate less than that required under Section 412 of the
Code, that any such plan is or may be terminated, or that any such plan is or may become insolvent.

		 

	
                  9.10                Investment Company Act.  No Loan Party is an “investment company” or a company “controlled” by an “investment
  company” or a “subsidiary” of an “investment company,” within the meaning
  of the Investment Company Act of 1940.

	 

	
                  9.11                Public Utility Holding Company Act. No Loan Party is a “holding company”, or a “subsidiary company” of a “holding
  company,” or an “affiliate” of a “holding company” or of a “subsidiary
  company” of a “holding company,” within the meaning of the Public Utility Holding
  Company Act of 1935.

	 

	
                  9.12                Regulation U.  The Company is not engaged principally, or as one of its important activities, in the business of extending
  credit for the purpose of purchasing or carrying Margin Stock.

	 

	
                  9.13                Taxes.  Each Loan Party has timely filed all tax returns and reports required by law to have been filed by
  it and has paid all taxes and governmental charges due and payable with respect to such return, except
  any such taxes or charges which are being diligently contested in good faith by appropriate proceedings
  and for which adequate reserves in accordance with GAAP shall have been set aside on its books or
  which do not exceed $300,000 in the aggregate at any time. The Loan Parties have made adequate reserves
  on their books and records in accordance with GAAP for all taxes that have accrued but which are
  not yet due and payable. No Loan Party has participated in any transaction that relates to a year
  of the taxpayer (which is still open under the applicable statute of limitations) which is a “reportable
  transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2) (irrespective
  of the date when the transaction was entered into).

	 

	
                  9.14                Solvency, etc.  On the Closing Date, and immediately prior to and after giving effect to the issuance of each Letter
  of Credit and each borrowing hereunder and the use of the proceeds thereof, with respect to each
  Loan Party, individually, (a) the fair value of its assets is greater than the amount of its
  liabilities (including disputed, contingent and unliquidated liabilities) as such value is established
  and liabilities evaluated, (b) the present fair saleable value of its assets is not less than
  the amount that will be required to pay the probable liability on its debts as they become absolute
  and matured, (c) it is able to realize upon its assets and pay its debts and other liabilities
  (including disputed, contingent and unliquidated liabilities) as they mature in the normal course
  of business, (d) it does not intend to, and does not believe that it will, incur debts or liabilities
  beyond its ability to pay as such debts and liabilities mature and (e) it is not engaged in
  business or a transaction, and is not about to engage in business or a transaction, for which its
  property would constitute unreasonably small capital.

	 

	
                  9.15                Environmental Matters.  The on-going operations of each Loan Party comply in all respects with all Environmental Laws, except
  such non-compliance which could not (if enforced in accordance with applicable law) reasonably be
  expected to result, either individually or in the aggregate, in a Material Adverse Effect. Each Loan
  Party has obtained, and maintained in good standing, all licenses, permits, authorizations, registrations
  and other approvals required under any Environmental Law and required for their respective ordinary

	

38

	
course operations, and for their reasonably anticipated future operations, and each Loan Party is in
compliance with all terms and conditions thereof, except where the failure to do so could not reasonably
be expected to result in material liability to any Loan Party and could not reasonably be expected
to result, either individually or in the aggregate, in a Material Adverse Effect. No Loan Party or
any of its properties or operations is subject to, or reasonably anticipates the issuance of, any
written order from or agreement with any Federal, state or local governmental authority, nor subject
to any judicial or docketed administrative or other proceeding, respecting any Environmental Law,
Environmental Claim or Hazardous Substance that would reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect. There are no Hazardous Substances or other conditions
or circumstances existing with respect to any property, or relating to any waste disposal, of any
Loan Party that would reasonably be expected to result, either individually or in the aggregate,
in a Material Adverse Effect. No Loan Party has any underground storage tanks that are not properly
registered or permitted under applicable Environmental Laws or that at any time have released, leaked,
disposed of or otherwise discharged Hazardous Substances, which would reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect.

	 

	
                  9.16                Insurance.  Set forth on Schedule 9.16 is a complete and accurate summary of the property and casualty insurance program of the Loan Parties
  as of the Closing Date (including the names of all insurers, policy numbers, expiration dates, amounts
  and types of coverage, annual premiums, exclusions, deductibles, self-insured retention, and a description
  in reasonable detail of any self-insurance program, retrospective rating plan, fronting arrangement
  or other risk assumption arrangement involving any Loan Party). Each Loan Party and its properties
  are insured with financially sound and reputable insurance companies with at least an “A”
  rating by Best’s Rating Services which are not Affiliates of the Loan Parties, in such amounts,
  with such deductibles and covering such risks as are customarily carried by companies engaged in
  similar businesses and owning similar properties in localities where such Loan Parties operate.

	 

	
                  9.17                Real Property.  Set forth on Schedule 9.17 is a complete and accurate list, as of the Closing Date, of the address of all real property owned
  or leased by any Loan Party, together with, in the case of leased property, the name and mailing
  address of the lessor of such property. Except as set forth in Schedule 9.17, no Person is a lessee, tenant or licensee of any real property owned by any Loan Party.

	 

	
                  9.18                Information.  All information heretofore or contemporaneously herewith furnished in writing by any Loan Party to
  the Administrative Agent or any Lender for purposes of or in connection with this Agreement and the
  transactions contemplated hereby is, and all written information hereafter furnished by or on behalf
  of any Loan Party to the Administrative Agent or any Lender pursuant hereto or in connection herewith
  will be, true and accurate in every material respect on the date as of which such information is
  dated or certified, and none of such information is or will be incomplete by omitting to state any
  material fact necessary to make such information not misleading in light of the circumstances under
  which made (it being recognized by the Administrative Agent and the Lenders that any projections
  and forecasts provided by the Company are based on good faith estimates and assumptions believed
  by the Company to be reasonable as of the date of the applicable projections or assumptions and that 

	

39

	
actual results during the period or periods covered by any such projections and forecasts may differ
from projected or forecasted results).

	 

	
                  9.19                Intellectual Property.  Each Loan Party owns and possesses or has a license or other right to use all patents, patent rights,
  trademarks, trademark rights, trade names, trade name rights, service marks, service mark rights
  and copyrights as are necessary for the conduct of the businesses of the Loan Parties, without any
  infringement upon rights of others which such infringement could reasonably be expected to have a
  Material Adverse Effect.

	   

	
                  9.20                Burdensome Obligations.  No Loan Party is a party to any agreement or contract or subject to any restriction contained in its
  organizational documents which could reasonably be expected to have either individually or in the
  aggregate, a Material Adverse Effect.

	 

	
                  9.21                Labor Matters.  Except as set forth on Schedule 9.21, no Loan Party is subject to any labor or collective bargaining agreement. There are no existing
  or, to the knowledge of the Company, threatened strikes, lockouts or other labor disputes involving
  any Loan Party that singly or in the aggregate could reasonably be expected to have a Material Adverse
  Effect. Hours worked by and payment made to employees of the Loan Parties are not in violation of
  the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such matters
  that singly or in the aggregate could reasonably be expected to have a Material Adverse Effect.

	 

	
                  9.22                No Default.  No Event of Default or Unmatured Event of Default exists or would result from the incurrence by any
  Loan Party of any Debt hereunder or under any other Loan Document.

	 

	                9.23                Sears Agreements.
		 

	 	
       (a)     The Company has heretofor furnished the Administrative Agent a true and correct copy of each
of the Sears Agreements.

		 
	 	
       (b)    Each Loan Party and, to the Company’s knowledge, each other party to the Sears Agreements, has
duly taken all necessary corporate, partnership or other organizational action to authorize the execution,
delivery and performance of the Sears Agreements and the consummation of transactions contemplated
thereby.

		 
	 	
       (c)    Each of the Sears Agreements are in full force and effect and are the legal, valid and binding obligation
of the Company and, to Company’s knowledge, each other party to the Sears Agreements. 

		 
	 	
       (d)    None of the Sears Agreements have terminated or been subject to early termination or expired or not
been renewed past their stated termination date. 

		 

	
                  9.24                Dormant Entities.  None of the Dormant Entities (i) have or hold any assets of any kind or nature other than the Capital
  Securities of another Loan Party, (ii) have any liabilities, obligations or Debt of any kind other
  than incidental corporate maintenance items, incidental tax liabilities, or (iii) have any operations
  or employees. The complete and accurate 

	

40

	
legal name and state of formation of each Dormant Entity is fully, completely and accurately listed
in the definition of “Dormant Entity.” 

                SECTION 10     AFFIRMATIVE COVENANTS.

                Until the expiration or termination of the Commitments and thereafter until all Obligations hereunder
and under the other Loan Documents are Paid in Full, the Company agrees for itself and each of its
Subsidiaries, that, unless at any time the Required Lenders shall otherwise expressly consent in
writing, it will:

	 
	
                        10.1                Reports, Certificates and Other Information. Furnish to the Administrative Agent and each Lender:

	 

	 	
                10.1.1          Annual Report.  Promptly when available and in any event within 90 days after the close of each Fiscal
Year a copy of the annual audit report of the Company and its Subsidiaries for such Fiscal Year,
including therein consolidated balance sheets, statement of stockholders equity, and statements of
earnings and cash flows of the Company and its Subsidiaries as at the end of such Fiscal Year, certified
without adverse reference to going concern value and without qualification by independent auditors
of recognized standing selected by the Company and reasonably acceptable to the Administrative Agent,
together with (i) a written statement from such accountants to the effect that in making the
examination necessary for the signing of such annual audit report by such accountants, nothing came
to their attention that caused them to believe that the Company was not in compliance with any provision of Section 11.1, 11.3, 11.4 or 11.15 of this Agreement insofar as such provision relates to accounting matters or, if something has come
to their attention that caused them to believe that the Company was not in compliance with any such
provision, describing such non-compliance in reasonable detail and (ii) an unaudited comparison
with the budget for such Fiscal Year and a comparison with the previous Fiscal Year.

		 

	 	
                10.1.2          Interim Reports.  (a) Promptly when available and in any event within 45 days after the end of
each Fiscal Quarter (excluding the last Fiscal Quarter of each Fiscal Year), consolidated balance
sheets of the Company and its Subsidiaries as of the end of such Fiscal Quarter, together with consolidated
statements of earnings and cash flows for such Fiscal Quarter and for the period beginning with the
first day of such Fiscal Year and ending on the last day of such Fiscal Quarter, together with a
comparison with the corresponding period of the previous Fiscal Year and a comparison with the budget
for such period of the current Fiscal Year, certified by a Senior Officer of the Company; and (b) promptly
when available and in any event within 45 days after the end of each Fiscal Month, consolidated balance
sheets of the Company and its Subsidiaries as of the end of such month, together with consolidated
statements of earnings and a consolidated statement of cash flows for such month and for the period
beginning with the first day of such Fiscal Year and ending on the last day of such month, together
with a comparison with the corresponding period of the previous Fiscal Year and a comparison with
the budget for such period of the current Fiscal Year, prepared consistent with current practice
of the company (i.e., not in accordance with GAAP) and certified by a Senior Officer of the Company.

	

41

	 	
                10.1.3          Compliance Certificates.  Contemporaneously with the furnishing of a copy of each annual audit report pursuant to
Section 10.1.1 and each set of quarterly statements pursuant to Section 10.1.2, a duly completed compliance certificate in the form of Exhibit B, with appropriate insertions, dated the date of such annual report or such quarterly statements and
signed by a Senior Officer of the Company, containing (i) a computation of each of the financial
ratios and restrictions set forth in Section 11.15, all cash and noncash components of EBITDA (in accordance with the definition thereof) and to the effect
that such officer has not become aware of any Event of Default or Unmatured Event of Default that
has occurred and is continuing or, if there is any such event, describing it and the steps, if any,
being taken to cure it, (ii) a written statement of the Company’s management setting forth
a discussion of the Company’s financial condition, changes in financial condition and results
of operations, and (iii) the reports required by Sections 10.1.9 and 10.1.10.

		 

	 	
                10.1.4          Reports to the SEC and to Shareholders. Promptly upon the filing or sending thereof, copies of all regular, periodic or special reports of
any Loan Party filed with the SEC; copies of all registration statements of any Loan Party filed
with the SEC (other than on Form S-8); and copies of all proxy statements or other communications
made to security holders generally.

		 

	 	
                10.1.5          Notice of Default, Litigation and ERISA Matters. Promptly, but in no event later than three Business Days after becoming aware of any of the following,
written notice describing the same and the steps being taken by the Company or the Subsidiary affected
thereby with respect thereto:

		 

	                    (a)    the occurrence of an Event of Default or an Unmatured Event of Default;
		 
	
                      (b)    any litigation, arbitration or governmental investigation or proceeding not previously disclosed by
  the Company to the Lenders which has been instituted or, to the knowledge of the Company, is threatened
  against any Loan Party or to which any of the properties of any thereof is subject which might reasonably
  be expected to have a Material Adverse Effect;

		 
	
                      (c)    the institution of any steps by any member of the Controlled Group or any other Person to terminate
  any Pension Plan, or the failure of any member of the Controlled Group to make a required contribution
  to any Pension Plan (if such failure is sufficient to give rise to a Lien under Section 302(f)
  of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with respect to a Pension
  Plan which could result in the requirement that the Company furnish a bond or other security to the
  PBGC or such Pension Plan, or the occurrence of any event with respect to any Pension Plan or Multiemployer
  Pension Plan which could result in the incurrence by any member of the Controlled Group of any material
  liability, fine or penalty (including any claim or demand for withdrawal liability or partial withdrawal
  from any Multiemployer Pension Plan), or any material increase in the contingent liability of the
  Company with respect to any post-retirement welfare benefit plan or other employee benefit plan of
  the Company or another member of the Controlled Group, or any notice that any Multiemployer Pension
  Plan is in reorganization, that increased contributions may be required to avoid a reduction in plan
  benefits or the imposition of an

	

42

	
  excise tax, that any such plan is or has been funded at a rate less than that required under Section 412
  of the Code, that any such plan is or may be terminated, or that any such plan is or may become insolvent;

		 
	                (d)    any cancellation or material change in any insurance maintained by any Loan Party; or
		 
	
                  (e)    any other event (including (i) any violation of any Environmental Law or the assertion of any
  Environmental Claim or (ii) the enactment or effectiveness of any law, rule or regulation) which
  might reasonably be expected to have a Material Adverse Effect.

		 
	
                  (f)    any material default or any termination, or notice (written or oral) thereof, under any of the Sears
  Agreements.

		 

	 	
                10.1.6          Management Reports.  Promptly upon receipt thereof, copies of all detailed financial and management reports
submitted to the Company by independent auditors in connection with each annual or interim audit
made by such auditors of the books of the Company.

		 

	 	
                10.1.7          Projections.  As soon as practicable, and in any event not later than thirty (30) days after the commencement
of each Fiscal Year, financial projections for the Company and its Subsidiaries for such Fiscal Year
(including Fiscal Quarter operating and cash flow budgets) prepared in a manner consistent with the
projections delivered by the Company to the Lenders prior to the Closing Date or otherwise in a manner
reasonably satisfactory to the Administrative Agent, accompanied by a certificate of a Senior Officer
of the Company on behalf of the Company to the effect that (a) such projections were prepared
by the Company in good faith, (b) the Company has a reasonable basis for the assumptions contained
in such projections and (c) such projections have been prepared in accordance with such assumptions. 

		 

	 	
                10.1.8          Other Information.  Promptly from time to time, such other information concerning the Loan Parties as any
Lender or the Administrative Agent may reasonably request.

	 	

	 	
                10.1.9          Retail Location Closings and Openings. A report, each Fiscal Quarter, provided with the Compliance Certificate, listing, by location, each
retail location of the Company and its Subsidiaries closed during such Fiscal Quarter, whether such
closed location existed on the Closing Date, and each retail location opened during such Fiscal Quarter

	 	

	 	
                10.1.10        Capital Expenditure Report.  A report, each Fiscal Quarter, provided with the Compliance Certificate, setting forth,
in detail, by location, the Capital Expenditures incurred by the Company and its Subsidiaries during
the Fiscal Quarter immediately ended and Fiscal Year-to-date. 

		 

	 	
                10.1.11                Schedule 9.1.  Updates to Schedule 9.1 as requested by Administrative Agent from time to
time.

	

43

	 	
            10.2                Books, Records and Inspections. Keep, and cause each other Loan Party to keep, its books and records in accordance with sound business
practices sufficient to allow the preparation of financial statements in accordance with GAAP; permit,
and cause each other Loan Party to permit, any Lender or the Administrative Agent or any representative
thereof to inspect the properties and operations of the Loan Parties; and permit, and cause each
other Loan Party to permit, at any reasonable time and with reasonable notice (or at any time without
notice if an Event of Default exists), any Lender or the Administrative Agent or any representative
thereof to visit any or all of its offices, to discuss its financial matters with its officers and
its independent auditors (and the Company hereby authorizes such independent auditors to discuss
such financial matters with any Lender or the Administrative Agent or any representative thereof),
and to examine (and, at the expense of the Loan Parties, photocopy extracts from) any of its books
or other records; and permit, and cause each other Loan Party to permit, the Administrative Agent
and its representatives to inspect the tangible assets of the Loan Parties, to perform appraisals
of the assets of the Loan Parties, and to inspect, examine, check and make copies of and extracts
from the books, records, computer data, computer programs, journals, orders, receipts, correspondence
and other data relating to their assets. All such inspections or examinations by the Administrative
Agent shall be at the Company’s expense, provided that so long as no Event of Default or Unmatured Event of Default exists, the Company shall not be
required to reimburse the Administrative Agent for inspections or examinations more frequently than
once each Fiscal Year. 

	 

	                           10.3                Maintenance of Property; Insurance.
		 

	 	
            (a)    Keep, and cause each other Loan Party to keep, all property useful and necessary in the business of
the Loan Parties in good working order and condition, ordinary wear and tear excepted, and failure
to do so could reasonably be expected to have a Material Adverse Effect.

		 
	 	
            (b)    Maintain, and cause each other Loan Party to maintain, with responsible insurance companies, such
insurance coverage as may be required by any law or governmental regulation or court decree or order
applicable to it and such other insurance, to such extent and against such hazards and liabilities,
as is customarily maintained by companies similarly situated; and, upon request of the Administrative
Agent or any Lender, furnish to the Administrative Agent or such Lender a certificate setting forth
in reasonable detail the nature and extent of all insurance maintained by the Loan Parties. The Company
shall cause each issuer of an insurance policy to provide the Administrative Agent with an endorsement
(i) naming the Administrative Agent as an additional insured with respect to each policy of
liability insurance, (ii) providing that 30 days’ notice will be given to the Administrative
Agent prior to any cancellation of, material reduction or change in coverage provided by or other
material modification to such policy and (iii) reasonably acceptable in all other respects to
the Administrative Agent.

	 
	
                           10.4                Compliance with Laws; OFAC/BSA Provision; Payment of Taxes and Liabilities.  (a) Comply, and cause each other Loan Party to comply, in all material respects with all
applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where
failure to comply could not reasonably be expected to have a Material Adverse Effect; (b) without
limiting clause (a) above, ensure, and cause each other Loan Party to ensure, that no 

	

44

	
person who owns a controlling interest in or otherwise controls a Loan Party is or shall be (i) listed
on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign
Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained
by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person
designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001),
any related enabling legislation or any other similar Executive Orders, (c) without limiting
clause (a) above, comply, and cause each other Loan Party to comply, with all applicable Bank Secrecy
Act (“BSA”) and anti-money laundering laws and regulations and (d) pay, and cause
each other Loan Party to pay, prior to delinquency, all taxes and other governmental charges, as
well as claims of any kind which, if unpaid, could become a Lien on any of its property; provided
that the foregoing shall not require any Loan Party to pay any such tax or charge so long as it shall
contest the validity thereof in good faith by appropriate proceedings and shall set aside on its
books adequate reserves with respect thereto in accordance with GAAP and, in the case of a claim
which could become a Lien on any asset of the Company or any other Loan Party, such contest proceedings
shall stay the foreclosure of such Lien or the sale of any portion of any asset of the Company or
any other Loan Party to satisfy such claim.

	 

	 	
                10.5                Maintenance of Existence, etc. Maintain and preserve, and (subject to Section 11.5) cause each other Loan Party to maintain and preserve, (a) its existence and good standing in
the jurisdiction of its organization and (b) its qualification to do business and good standing
in each jurisdiction where the nature of its business makes such qualification necessary (in each
such case, other than such jurisdictions in which the failure to be qualified or in good standing
would not reasonably be expected to have a Material Adverse Effect).

	 

	 	
                10.6                Use of Proceeds.  Use the proceeds of the Loans, and the Letters of Credit, solely to pay Debt to be Repaid, for working
capital purposes, for Capital Expenditures (including retail store expansions) and for working capital
and other general business purposes; and not use or permit any proceeds of any Loan to be used, either
directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing
or carrying” any Margin Stock.

	 

	 	                10.7                Employee Benefit Plans.
		 

	 	
                (a)    Maintain, and cause each other member of the Controlled Group to maintain, each Pension Plan in substantial
compliance with all applicable requirements of law and regulations.

		 
	 	
                (b)    Make, and cause each other member of the Controlled Group to make, on a timely basis, all required
contributions to any Multiemployer Pension Plan.

		 
	 	
                (c)    Not, and not permit any other member of the Controlled Group to (i) seek a waiver of the minimum
funding standards of ERISA, (ii) terminate or withdraw from any Pension Plan or Multiemployer
Pension Plan or (iii) take any other action with respect to any Pension Plan that would reasonably
be expected to entitle the PBGC to terminate, impose liability in respect of, or cause a trustee
to be appointed to administer, any Pension Plan, unless the actions or events described in clauses (i),
(ii) and (iii) individually or in the aggregate would not have a Material Adverse Effect.

	

45

	 	
                10.8                Environmental Matters.  If any release or threatened release or other disposal of Hazardous Substances shall occur or shall
have occurred on any real property or any other assets of any Loan Party, the Company shall, or shall
cause the applicable Loan Party to, cause the prompt containment and removal of such Hazardous Substances
and the remediation of such real property or other assets as necessary to comply with all Environmental
Laws and to preserve the value of such real property or other assets to the extent noncompliance
could reasonably be expected to have a Material Adverse Effect. Without limiting the generality of
the foregoing, the Company shall, and shall cause each other Loan Party to, comply with any Federal
or state judicial or administrative order requiring the performance at any real property of any Loan
Party of activities in response to the release or threatened release of a Hazardous Substance at
any real property of any Loan Party (whether owned or leased). The Company shall, and shall cause
its Subsidiaries to, dispose of such Hazardous Substances, or of any other wastes, only at licensed
disposal facilities operating, to the Company’s knowledge, in compliance with Environmental Laws. 

	 

	 	
                10.9                Further Assurances.  Take, and cause each other Loan Party to take, such actions as are necessary or as the Administrative
Agent or the Required Lenders may reasonably request from time to time to ensure that the Obligations
of each Loan Party under the Loan Documents are guarantied by each Subsidiary, excluding the Dormant
Entities and the Canadian Entities but including, upon the acquisition or creation thereof, any Subsidiary
acquired or created after the Closing Date, in each case as the Administrative Agent may determine.

	 

	 	
                10.10              Deposit Accounts.  Unless the Administrative Agent otherwise consents in writing, within ninety (90) days following the
date hereof, each Loan Party shall maintain all of their principal deposit accounts and customary
treasury management services with the Administrative Agent at market rates which shall be mutually
agreed by the parties. 

	 
	
                SECTION 11     NEGATIVE COVENANTS

                Until the expiration or termination of the Commitments and thereafter until all Obligations hereunder
and under the other Loan Documents are Paid in Full, the Company agrees for itself and each of its
Subsidiaries that, unless at any time the Required Lenders shall otherwise expressly consent in writing,
it will:

	 

	 	
                11.1                Debt.  Not, and not permit any other Loan Party to, create, incur, assume or suffer to exist any Debt, except:

	 

	 	                (a)    Obligations under this Agreement and the other Loan Documents;
		 
	 	
                (b)    Debt secured by Liens permitted by Section 11.2(d), and extensions, renewals and refinancings thereof; provided that the aggregate amount of all such
Debt at any time outstanding shall not exceed $2,500,000, provided, however, the forgoing limit shall
not include a Sale Leaseback if such Sale Leaseback is consummated in an arm’s-length manner
on market terms and conditions;

		 
	 	
                (c)    Debt of the Company to any domestic Wholly-Owned Subsidiary or Debt of any domestic Wholly-Owned Subsidiary
to the Company or another domestic Wholly-Owned Subsidiary; provided that, upon the reasonable request
of Administrative Agent, such Debt 

	

46

	 	
shall be evidenced by a demand note in form and substance reasonably satisfactory to the Administrative
Agent and the obligations under such demand note shall be subordinated to the Obligations of the
Company hereunder in a manner reasonably satisfactory to the Administrative Agent; 

		 
	 	
                (d)    Debt (excluding the Prudential Debt) described on Schedule 11.1 and any extension, renewal or refinancing thereof so long as the principal amount thereof is not increased
in excess of the amount set forth on such Schedule;

		 
	 	
                (e)    the Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the proceeds of the
initial Loans hereunder); 

		 
	 	
                (f)    Contingent Liabilities arising with respect to customary indemnification obligations in favor of purchasers
in connection with dispositions permitted under Section 11.5; 

		 
	 	
                (g)    the Prudential Debt so long as the principal amount thereof is not increased and each mandatory payment
of principal and interest thereunder is timely made in accordance with the terms of the Prudential
Debt Documents; 

		 
	 	                (h)    Contingent Liabilities listed on Schedule 11.1;
		 
	 	
                (i)     Guaranties by the Company and/or its Subsidiaries in respect of Debt of the Company or its domestic
Subsidiaries permitted by this Section 11.1;

		 
	 	
                (j)     Hedging Obligations incurred in favor of Administrative Agent, any Lender or any of their Affiliates
for bona fide hedging purposes and not for speculation;

		 
	 	
                (k)    Debt owing to any trust created under a supplemental executive retirement program of the Company;
and

		 
	 	                (l)     Debt of the Company owing to any Canadian Entity.

	 
	
                        11.2                Liens. Not, and not permit any other Loan Party to, create or permit to exist any Lien on any of its real
or personal properties, assets or rights of whatsoever nature (whether now owned or hereafter acquired),
except:

	 

	 	
                (a)    Liens for taxes or other governmental charges not at the time delinquent or thereafter payable without
penalty or being contested in good faith by appropriate proceedings and, in each case, for which
it maintains adequate reserves;

		 
	 	
                (b)    Liens arising in the ordinary course of business (such as (i) Liens of carriers, warehousemen,
mechanics and materialmen and other similar Liens imposed by law and (ii) Liens in the form
of deposits or pledges incurred in connection with worker’s compensation, unemployment compensation
and other types of social security (excluding Liens arising under ERISA) or in connection with surety
bonds, bids, performance bonds and similar obligations) for sums not overdue or being contested in
good faith by appropriate 

	

47

	 	
proceedings and not involving any advances or borrowed money or the deferred purchase price of property
or services and, in each case, for which it maintains adequate reserves;

		 
	 	                (c)    Liens described on Schedule 11.2 as of the Closing Date;
		 
	 	
                (d)    subject to the limitation set forth in Section 11.1(b), (i) Liens arising in connection with Capital Leases (and attaching only to the property being leased),
(ii) Liens existing on property at the time of the acquisition thereof by any Loan Party (and not
created in contemplation of such acquisition) and (iii) Liens that constitute purchase money security
interests on any property securing debt incurred for the purpose of financing all or any part of
the cost of acquiring such property, provided that any such Lien attaches to such property within 20 days of the acquisition thereof and attaches
solely to the property so acquired;

		 
	 	
                (e)    attachments, appeal bonds, judgments and other similar Liens, for sums not exceeding $250,000 arising
in connection with court proceedings, provided the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby
are being actively contested in good faith and by appropriate proceedings;

		 
	 	
                (f)    easements, rights of way, restrictions, minor defects or irregularities in title and other similar
Liens not interfering in any material respect with the ordinary conduct of the business of any Loan
Party; 

		 
	 	
                (g)    Liens in favor of landlords with respect to assets located at locations leased by the Company or any
other Loan Party if such provisions granting a Lien are in existence on the Closing Date in leases
that are in existence on the Closing Date, provided, however, with respect to any locations leased
by the Company or any other Loan Party after the Closing Date, the related lease shall not contain
any provisions granting a landlord a lien on any assets of the Company or any Loan Party or grant
the landlord the right to dispose of any assets of the Company or any Loan Party and to the extent
any location leased after the Closing Date is in a jurisdiction with a statutory lien in favor of
a landlord, such lease shall contain a waiver of such statutory landlord lien; 

		 
	 	
                (h)     Liens granted to the Issuing Lender or Administrative Agent under or in connection with any
Master Letter of Credit Agreement or any L/C Application or any cash collateral delivered to Administrative
Agent or the Issuing Lender in connection therewith; and

		 
	 	
                (i)     the replacement, extension or renewal of any Lien permitted by clause (c) above upon or in the same property subject thereto arising out of the extension, renewal or replacement
of the Debt secured thereby (without increase in the amount thereof).

		 

	 	
                11.3                Operating Leases.  Not permit the aggregate amount of all rental payments under Operating Leases made (or scheduled to
be made) by the Loan Parties (on a consolidated basis) to exceed $3,000,000 in any Fiscal Year, provided,
however, the forgoing limit shall not include (i) a Sale Leaseback if such Sale Leaseback is consummated
in an arm’s-length manner on market terms and conditions, (ii) if the St. Louis, Missouri headquarters
(and related parking facilities) is sold, transferred or assigned, the rental payments with respect
to any replacement location if such rental payments are on an arm’s-length basis on market terms
and conditions, or 

	

48

	
(iii) if the Brampton, Ontario facility is sold, transferred or assigned, the rental payments with
respect to any replacement location if such rental payments are on an arm’s-length basis on
market terms and conditions. 

	 

	 	
                11.4                Restricted Payments.  Not, and not permit any other Loan Party to, (a) make any distribution or pay any dividend to
any holders of its Capital Securities, (b) purchase or redeem any of its Capital Securities,
(c) pay any management fees or similar fees to any of its equityholders or any Affiliate thereof,
(d) make any redemption, prepayment, defeasance, repurchase or any other payment in respect
of any Debt, including the Prudential Debt (but not including the Obligations), prior to its stated
maturity or amortization schedule (in each case as such amortization schedule exists on the date
hereof) or (e) set aside funds for any of the foregoing. Notwithstanding the foregoing, (i) any
Subsidiary may pay dividends or make other distributions to the Company or to a domestic Wholly-Owned
Subsidiary; and (ii) so long as no Event of Default or Unmatured Event of Default exists or
would result therefrom, the Company may pay (A) pay dividends or make other distributions to the
holders of its Capital Stock up to an aggregate of $5,500,000 in each Fiscal Year, and (B) may expend
up to $2,000,000 in the aggregate during the term of this Agreement to purchase, repurchase or redeem
the Company’s Capital Stock.

	 

	 	
                11.5                Mergers, Consolidations, Sales. Not, and not permit any other Loan Party to, (a) be a party to any merger or consolidation,
or purchase or otherwise acquire all or substantially all of the assets or any Capital Securities
of any class of, or any partnership or joint venture interest in, any other Person, (b) sell,
transfer, convey or lease all or any substantial part of its assets or Capital Securities (including
the sale of Capital Securities of any Subsidiary) except for sales of inventory, excess equipment,
and obsolete equipment in the ordinary course of business, (c) sell, transfer or assign the St. Louis,
Missouri headquarters (and related parking facilities) and/or the Brampton, Ontario facility except
in each case on an arm’s-length basis and on market terms and conditions, or (d) sell or
assign with or without recourse any receivables, except for (i) any such merger, consolidation,
sale, transfer, conveyance, lease or assignment of or by any Wholly-Owned Subsidiary into the Company
or into any other domestic Wholly-Owned Subsidiary; and (ii) any such purchase or other acquisition
by the Company or any domestic Wholly-Owned Subsidiary of the assets or Capital Securities of any
Wholly-Owned Subsidiary. 

	 

	 	
                11.6                Modification of Organizational Documents. Not permit the charter, by-laws or other organizational documents of any Loan Party to be amended or
modified in any way which could reasonably be expected to materially adversely affect the interests
of the Lenders; not change, or allow any Loan Party to change, its state of formation or its organizational
form. 

	 

	 	
                11.7                Transactions with Affiliates. Not, and not permit any other Loan Party to, enter into, or cause, suffer or permit to exist any transaction,
arrangement or contract with any of its other Affiliates (other than the Loan Parties) which is on
terms which are materially less favorable than are reasonably obtainable from any Person which is
not one of its Affiliates and excluding any employment agreements with any officers and directors
of any Loan Party to the extent approved by the Board of Directors of such Loan Party and disclosed
by the Company in accordance with all applicable public reporting laws, rules, and regulations.

	

49

	 	
                11.8                Inconsistent Agreements.  Not, and not permit any other Loan Party to, enter into, or be a party to, any agreement containing
any provision which would (a) be violated or breached by any borrowing by the Company hereunder
or by the performance by any Loan Party of any of its Obligations hereunder or under any other Loan
Document, (b) prohibit any Loan Party from granting to the Administrative Agent and the Lenders,
a Lien on any of its assets (other than the Prudential Documents) or (c) create or permit to
exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay
dividends or make other distributions to the Company or any other Subsidiary, or pay any Debt owed
to the Company or any other Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer
any of its assets or properties to any Loan Party, other than (A) customary restrictions and
conditions contained in agreements relating to the sale of all or a substantial part of the assets
of any Subsidiary pending such sale, provided that such restrictions and conditions apply only to
the Subsidiary to be sold and such sale is permitted hereunder, (B) restrictions or conditions
imposed by any agreement relating to purchase money Debt, and Capital Leases permitted by this Agreement
if such restrictions or conditions apply only to the property or assets securing such Debt and (C) customary
provisions in leases and other contracts restricting the assignment thereof.

	 

	 	
                11.9                Business Activities; Issuance of Equity. Not, and not permit any other Loan Party to, engage in any line of business other than the businesses
engaged in on the date hereof and businesses reasonably related thereto. Not, and not permit any
other Loan Party to, issue any Capital Securities other than (a) any issuance of shares of the
Company’s common Capital Securities pursuant to any employee or director option program, benefit
plan or compensation program, and (b) any issuance by a Subsidiary to the Company or another
Subsidiary in accordance with Section 11.4. 

	 

	 	
                11.10              Investments.  Not, and not permit any other Loan Party to, make or permit to exist any Investment in any other Person,
except the following:

	 

	 	
                (a)    contributions by the Company to the capital of any domestic Wholly-Owned Subsidiary, or by any Subsidiary
to the capital of any other domestic Wholly-Owned Subsidiary, so long as the recipient of any such
capital contribution has guaranteed the Obligations as required by this Agreement;

		 
	 	                (b)    Investments constituting Debt permitted by Section 11.1;
		 
	 	
                (c)    Contingent Liabilities constituting Debt permitted by Section 11.1 or Liens permitted by Section 11.2;

		 
	 	                (d)    bank deposits in the ordinary course of business;
		 
	 	
                (e)    Investments in securities of account debtors received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of such account debtors; and

		 
	 	                (f)    Investments listed on Schedule 11.10 as of the Closing Date.

	

50

	
 
	provided  that (x) any Investment which when made complies with the requirements of the definition of the term “Cash Equivalent Investment” may continue to be held notwithstanding that such Investment if made thereafter would not comply with such requirements; and (y) no Investment otherwise permitted by clause (b) or (c) shall be permitted to be made if, immediately before or after giving effect thereto, any Event of Default or Unmatured Event of Default exists.

	 

	 	
                11.11              Most Favored Lender.  Not enter into, assume or otherwise be bound or obligated under any agreement creating or evidencing
Debt in excess of $250,000 containing one or more Additional Covenants or Additional Defaults, without
the prior written consent of the Required Lenders; provided, however, in the event the Company or
any other Loan Party shall enter into, assume or otherwise become bound by or obligated under any
such agreement without the prior written consent of the Required Lenders, the terms of this Agreement
shall, without any further action on the part of the Company and each other Loan Party or any Lender
or the Administrative Agent, be deemed to be amended automatically to include each Additional Covenant
and each Additional Default contained in such agreement. The Company further covenants to promptly
execute and deliver at its expense (including, without limitation, the reasonable fees and expenses
of counsel for the Administrative Agent) an amendment to this Agreement in form and substance satisfactory
to the Required Lenders evidencing the amendment of this Agreement to include such Additional Covenants
and Additional Defaults, provided that the execution and delivery of such amendment shall not be
a precondition to the effectiveness of such amendment as provided for in this Section, but shall
merely be for the convenience of the parties hereto. Notwithstanding the foregoing, the Prudential
Debt Documents as they exist on the Closing Date are not implicated by this Section.

	 

	 	
                11.12              Restriction of Amendments to Certain Documents. Not amend or otherwise modify, or waive any rights under, any of the Sears Agreements, if, in any case,
such amendment, modification or waiver could reasonably be expected to be adverse to the interests
of the Lenders or be materially adverse to the Company. Not amend or otherwise modify, or waive any
rights under, the Prudential Documents, except to the extent such change could not reasonably be
expected to materially adversely effect Administrative Agent or any Lender or except to the extent
such change is not more restrictive to the Company or any Loan Party.

	 

	 	
                11.13              Dormant Entities.  Not allow or permit any Dormant Entity to (i) have or hold any assets of any kind or nature other than
the Capital Securities of another Loan Party, (ii) have or incur any liabilities, obligations or
Debt of any kind other than incidental corporate maintenance items, incidental tax liabilities, or
(iii) have any operations or employees.

	 

	 	
                11.14              Fiscal Year.  Not change its Fiscal Months, Fiscal Quarters or Fiscal Years from what is set forth on Schedule 1.1.

	 

	 	                11.15              Financial Covenants.
		 

	 	
                11.15.1        Minimum EBITDA.  Not permit, as of the last day of any Computation Period, EBITDA for such Computation
Period to be less than the amount set forth below for such Computation Period:

	

51

	Computation Period Ending	 	Minimum EBITDA 
	

	 	

	April 30, 2005 and July 23, 2005	 	$24,000,000.00
	November 12, 2005	 	$25,000,000.00
	February 4, 2006, April 29, 2006, and July 22, 2006	 	$28,000,000.00
	November 11, 2006 and February 3, 2007 	 	$30,000,000.00

	
                  11.15.2  Total Funded Debt to EBITDA Ratio.  Not permit, as of the last day of any Fiscal Quarter, the ratio of Total Funded Debt to
  EBITDA for the Computation Period ended on the last day of such Fiscal Quarter, to exceed the applicable
  ratio set forth below:

		 

	Computation Period Ending	Ratio of Total Funded Debt to
	

	

	Last day of each Fiscal Quarter 	2.00 to 1.00

	 	 
	
                  11.15.3 Minimum Net Worth.  The Company’s Net Worth as of the last day of each Fiscal Quarter shall not be less
  than the following, plus with respect to each of the following, 90% of the net proceeds of any issuance
  of equity or equity securities in the Company issued after the Effective Date:

		 

	Fiscal Quarter Ending	Minimum Net Worth 
	

	

	April 30, 2005	$17,000,000
	July 23, 2005	$13,000,000
	November 12, 2005	$7,000,000
	February 4, 2006	$20,000,000
	April 29, 2006	$18,000,000
	July 22, 2006	$14,000,000
	November 11, 2006 	$10,000,000
	February 3, 2007	$25,500,000
	 	 

	
                  11.15.4        Capital Expenditures.  Not permit the aggregate amount of all Capital Expenditures made by the Loan Parties in
  any Fiscal Year to exceed the amount set forth below for such Fiscal Year:

		 

	Fiscal Year	Maximum Capital Expenditures 
	

	

	2005 Fiscal Year	$30,000,000.00
	2006 Fiscal Year	$25,000,000.00
	2007 Fiscal Year	$20,000,000.00

	 
	
                SECTION 12     EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

	

52

	
                The obligation of each Lender to make its Loans and of the Issuing Lender to issue Letters of Credit
is subject to the following conditions precedent:

	 

	 	
                12.1                Initial Credit Extension. The obligation of the Lenders to make the initial Loans and the obligation of the Issuing Lender to
issue its initial Letter of Credit (whichever first occurs) is, in addition to the conditions precedent
specified in Section 12.2, subject to the conditions precedent that (a) all Debt to be Repaid has been (or concurrently
with the initial borrowing will be) paid in full, and that all agreements and instruments governing
the Debt to be Repaid and that all Liens securing such Debt to be Repaid have been (or concurrently
with the initial borrowing will be) terminated and (b) the Administrative Agent shall have received
all of the following, each duly executed and dated the Closing Date (or such earlier date as shall
be satisfactory to the Administrative Agent), in form and substance satisfactory to the Administrative
Agent (and the date on which all such conditions precedent have been satisfied or waived in writing
by the Administrative Agent and the Lenders is called the “Closing Date”):

	 

	 	
                12.1.1          Financial Statements.  Lenders shall have determined to their satisfaction that the draft audited consolidated
financial statements for the Company and its Subsidiaries for Fiscal Year 2004 and the interim unaudited
consolidated financial statements year-to-date Fiscal Year 2005, and the projections of the Company’s
and its Subsidiaries’ consolidated financial condition (income statements, balance sheets and
cash flow statements) and results of operations, on a Fiscal Quarter basis for Fiscal Years 2005,
2006, and 2007, as furnished to Administrative Agent and the Lenders and other information furnished
to Administrative Agent by the Company after giving effect to the consummation of the financings
contemplated hereby as if such transactions had occurred on such date, are consistent in all material
respects with the sources and uses of cash as previously described to the Lenders and, (i) for
the periods ended on or before the Closing Date, fairly and accurately reflect the business and financial
condition of the Company and its Subsidiaries, their cash flows and the results of their operations
for such periods in accordance with GAAP (except the monthly financial statements were prepared consistent
with current practice of the company (i.e., not in accordance with GAAP)), and (ii) for the
periods that will end after the Closing Date, fairly and accurately forecast the business and financial
condition of the Company and its Subsidiaries cash flows, and the results of their operations for
such periods in accordance with GAAP. The Administrative Agent and each Lender shall have received
audited consolidated financial statements of the Company for the 2001, 2002 and 2003 Fiscal Years,
and unaudited consolidated financial statements of the Company for the 2004 Fiscal Year, and draft
audited financial statements for the Company for the 2004 fiscal year, and unaudited year-to-date
consolidated financial statements of the Company for the 2005 Fiscal Year.

	 	

	 	                12.1.2          Notes.  A Note for each Lender.
		 

	 	
                12.1.3          Authorization Documents.  For each Loan Party, such Person’s (a) charter (or similar formation document),
certified by the appropriate governmental authority; (b) good standing certificates in its state
of incorporation (or formation) and in each other state requested by the Administrative Agent; (c) bylaws
(or similar governing document); (d) resolutions of its board of directors (or similar governing
body) approving and authorizing such Person’s execution, delivery and performance of the Loan 

	

53

	 	
Documents to which it is party and the transactions contemplated thereby; and (e) signature and
incumbency certificates of its officers executing any of the Loan Documents and authorized to submit
a Notice of Borrowing (it being understood that the Administrative Agent and each Lender may conclusively
rely on each such certificate until formally advised by a like certificate of any changes therein),
all certified by its secretary or an assistant secretary (or similar officer) as being in full force
and effect without modification.

		 

	 	
                12.1.4          Consents, etc.  Certified copies of all documents evidencing any necessary corporate or partnership action,
consents and governmental approvals (if any) required for the execution, delivery and performance
by the Loan Parties of the Loan Documents and the documents referred to in this SECTION 12.

		 

	 	
                12.1.5          Letter of Direction.  A letter of direction containing funds flow information with respect to the proceeds of
the Loans on the Closing Date.

		 

	 	
                12.1.6          Guaranty Agreement.  A counterpart of the Guaranty Agreement executed by each Loan Party (other than the Company,
the Dormant Entities and the Canadian Entities), together with all items required to be delivered
in connection therewith.

		 

	 	                12.1.7          Opinions of Counsel.  Opinions of counsel for each Loan Party.

		 

	 	
                12.1.8          Insurance.  Evidence of the existence of insurance required to be maintained pursuant to Section 10.3(b), together with evidence that the Administrative Agent has been named as an additional insured on all
related insurance policies. 

		 

	 	
                12.1.9          Copies of Sears Agreements.  Complete and correct copies of each of the Sears Agreements.

		 

	 	
                12.1.10        Copies of Prudential Documents.  Copies of the Prudential Documents certified by the secretary or assistant secretary (or
similar officer) of the Company as being true, accurate and complete.

		 

	 	
                12.1.11        Payment of Fees.  Evidence of payment by the Company of all accrued and unpaid fees, costs and expenses
to the extent then due and payable on the Closing Date, together with all Attorney Costs of the Administrative
Agent to the extent invoiced prior to the Closing Date, plus such additional amounts of Attorney Costs as shall constitute the Administrative Agent’s reasonable
estimate of Attorney Costs incurred or to be incurred by the Administrative Agent through the closing
proceedings (provided that such estimate shall not thereafter preclude final settling of accounts between the Company and
the Administrative Agent).

		 

	 	                12.1.12        Solvency Certificate.  A Solvency Certificate executed by a Senior Officer of the Company. 
		 

	 	
                12.1.13        Search Results; Lien Terminations.  Certified copies of Uniform Commercial Code search reports dated a date reasonably near to the Closing
Date, listing

	

54

	 	
all effective financing statements which name any Loan Party (under their present names and any
previous names) as debtors, together with (a) copies of such financing statements, (b) payoff
letters evidencing repayment in full of all Debt to be Repaid, the termination of all agreements
relating thereto and the release of all Liens granted in connection therewith, with Uniform Commercial
Code or other appropriate termination statements and documents effective to evidence the foregoing
(other than Liens permitted by Section 11.2) and (c) such other Uniform Commercial Code termination statements as the Administrative Agent
may reasonably request.

		 

	 	
                12.1.14        Closing Certificate.  A certificate executed by an officer of the Company on behalf of the Company certifying the
matters set forth in Section 12.2.1 as of the Closing Date. 

		 

	 	
                12.1.15        Other.  Such other documents as the Administrative Agent or any Lender may reasonably request
including without limitation, those items listed on the documents and requirements list attached
hereto as Exhibit F.

		 

	 	
                12.1.16        EBITDA Verification Report.  The Administrative Agent shall have received an EBITDA verification report from Ernst
& Young, LLP. 

		 

	 	
                12.2       Conditions.  The obligation (a) of each Lender to make each Loan and (b) of the Issuing Lender to issue
each Letter of Credit is subject to the following further conditions precedent that:

	 

	 	
                12.2.1          Compliance with Warranties, No Default, etc. Both before and after giving effect to any borrowing and the issuance of any Letter of Credit, the
following statements shall be true and correct:

		 

	 	
                (a)    the representations and warranties of each Loan Party set forth in this Agreement and the other Loan
Documents shall be true and correct in all respects with the same effect as if then made (except
to the extent stated to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct as of such earlier date); and 

		 
	 	
                (b)    no Event of Default or Unmatured Event of Default shall have then occurred and be continuing.

		 

	 	
                12.2.2          Confirmatory Certificate.  If requested by the Administrative Agent or any Lender, the Administrative Agent shall
have received (in sufficient counterparts to provide one to each Lender) a certificate dated the
date of such requested Loan or Letter of Credit and signed by a duly authorized representative of
the Company as to the matters set out in Section 12.2.1 (it being understood that each request by the Company for the making of a Loan or the issuance of
a Letter of Credit shall be deemed to constitute a representation and warranty by the Company that
the conditions precedent set forth in Section 12.2.1 will be satisfied at the time of the making of such Loan or the issuance of such Letter of Credit),
together with such other documents as the Administrative Agent or any Lender may reasonably request
in support thereof.

	 
	
                SECTION 13     EVENTS OF DEFAULT AND THEIR EFFECT.

	

55

	 	
                13.1                Events of Default.  Each of the following shall constitute an Event of Default under this Agreement:

	 

	 	
                13.1.1          Non-Payment of the Loans, etc.  Default in the payment when due of the principal of any Loan; or default, and continuance
thereof for five days, in the payment when due of any interest, fee, reimbursement obligation with
respect to any Letter of Credit or other amount payable by the Company hereunder or under any other
Loan Document.

		 

	 	
                13.1.2          Non-Payment of Other Debt.  Any default shall occur under the terms applicable to any Debt of any Loan Party individually
or in an aggregate amount (for all such Debt so affected and including undrawn committed or available
amounts and amounts owing to all creditors under any combined or syndicated credit arrangement) exceeding
$200,000 and such default shall (a) consist of the failure to pay such Debt when due, after
giving effect to any cure periods in any documents relating to such Debt, whether by acceleration
or otherwise, or (b) permit the holder or holders thereof, or any trustee or agent for such
holder or holders, to cause such Debt to become due and payable (or require any Loan Party to purchase
or redeem such Debt or post cash collateral in respect thereof) prior to its expressed maturity,
or (c) accelerate the maturity, of such Debt. 

		 

	 	
                13.1.3          Other Material Obligations.  Default in the payment when due, or in the performance or observance of, any obligation
of, or condition agreed to by, any Loan Party with respect to any agreement, contract or lease, where
such default, singly or in the aggregate with all other such defaults, might reasonably be expected
to have a Material Adverse Effect.

		 

	 	
                13.1.4          Bankruptcy, Insolvency, etc.  Any Loan Party becomes insolvent or generally fails to pay, or admits in writing its inability
or refusal to pay, debts as they become due; or any Loan Party applies for, consents to, or acquiesces
in the appointment of a trustee, receiver or other custodian for such Loan Party or any property
thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such application,
consent or acquiescence, a trustee, receiver or other custodian is appointed for any Loan Party or
for a substantial part of the property of any thereof and is not discharged within 60 days;
or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy
or insolvency law, or any dissolution or liquidation proceeding, is commenced in respect of any Loan
Party, and if such case or proceeding is not commenced by such Loan Party, it is consented to or
acquiesced in by such Loan Party, or remains for 60 days undismissed; or any Loan Party takes
any action to authorize, or in furtherance of, any of the foregoing.

		 

	 	
                13.1.5          Non-Compliance with Loan Documents. (a) Failure by any Loan Party to comply with or to perform any covenant set forth in Sections 6.2.2, 10.1.5, 10.2, or 10.5 or SECTION 11; or (b) failure by any Loan Party to comply with or to perform any other provision of this Agreement
or any other Loan Document (and not constituting an Event of Default under any other provision of
this SECTION 13 for which no other 

	

56

	 	
grace period is specified) and continuance of such failure described in this clause (b) for 20
consecutive days.

		 

	 	
                13.1.6          Representations; Warranties.  Any representation or warranty made by any Loan Party herein or any other Loan Document is breached
or is false or misleading, or any schedule, certificate, financial statement, report, notice or other
writing furnished by any Loan Party to the Administrative Agent or any Lender in connection herewith
is false or misleading on the date as of which the facts therein set forth are stated or certified.

		 

	 	
                13.1.7          Pension Plans.  (a) Any Person institutes steps to terminate a Pension Plan if as a result of such
termination the Company or any member of the Controlled Group could be required to make a contribution
to such Pension Plan, or could incur a liability or obligation to such Pension Plan, in excess of
$100,000 individually or in the aggregate; (b) a contribution failure occurs with respect to
any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA; (c) the failure
to pay any Unfunded Liability within the time periods required by law or required by any written
agreement between any Loan Party and any governmental authority, or (d) there shall occur any
withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability (without
unaccrued interest) to Multiemployer Pension Plans as a result of such withdrawal (including any
outstanding withdrawal liability that the Company or any member of the Controlled Group have incurred
on the date of such withdrawal) exceeds $100,000 individually or in the aggregate.

		 

	 	
                13.1.8          Judgments.  Final judgments (unless covered by insurance without a reservation of rights by the applicable
insurer) which exceed $250,000 individually or in the aggregate shall be rendered against any Loan
Party and shall not have been paid, discharged or vacated or had execution thereof stayed pending
appeal within 30 days after entry or filing of such judgments.

	 	

	 	
                13.1.9          Guaranty; Sears Agreements.  Any material default or material breach, or notice (written or oral) of any default or
breach, under any of the Sears Agreements, or any termination of any of the Sears Agreements (except
for a termination of the Sears Agreement in Canada not arising from a breach or default by the Company
or any other Loan Party of such agreement) or any notice (written or oral) of any intent to terminate
any of the Sears Agreements (except for a termination of the Sears Agreement in Canada not arising
from a breach or default by the Company or any other Loan Party of such agreement), or any of the
Sears Agreements (except for a termination of the Sears Agreement in Canada not arising from a breach
or default by the Company or any other Loan Party of such agreement) shall cease to be in full force
and effect whether by their terms or due to an early termination. Any Loan Party or any other Person
shall contest in any manner the validity, binding nature or enforceability of any guaranty of the
Obligations (including the Guaranty Agreement) or shall assert the invalidity or unenforceability
of, or deny any liability under, any guaranty of the Obligations (including the Guaranty Agreement)
or any Loan Party fails to comply with any of the terms or provisions of any guaranty of the Obligations
(including the Guaranty Agreement), or any representation or warranty is false or any covenant is breached of any

	

57

	 	
Loan Party herein or in any guaranty of the Obligations (including the Guaranty Agreement). 

		 

	 	                13.1.10        Change of Control.  A Change of Control shall occur.

	 	

	 	
                13.1.11        Closing of Locations.  The closing (rounded downwards to the nearest whole number) of more than 10% of the sum of (A) the
Company and its Subsidiary’s retail locations existing on the Closing Date which is 1,022 locations,
plus (B) the Company and its Subsidiary’s new retail locations opened after the Closing Date.

		 

	 	
                13.1.12        Material Adverse Effect.  The occurrence of any event or circumstance which could reasonably be likely to give rise
to or Material Adverse Effect.

		 

	 	
                13.2       Effect of Event of Default.  If any Event of Default described in Section 13.1.4 shall occur in respect of the Company, the Commitments shall immediately terminate and the Loans and
all other Obligations hereunder shall become immediately due and payable and the Company shall become
immediately obligated to Cash Collateralize all Letters of Credit, all without presentment, demand,
protest or notice of any kind; and, if any other Event of Default shall occur and be continuing,
the Administrative Agent may (and, upon the written request of the Required Lenders shall) declare
the Commitments to be terminated in whole or in part and/or declare all or any part of the Loans
and all other Obligations hereunder to be due and payable and/or demand that the Company immediately
Cash Collateralize all or any Letters of Credit, whereupon the Commitments shall immediately terminate
(or be reduced, as applicable) and/or the Loans and other Obligations hereunder shall become immediately
due and payable (in whole or in part, as applicable) and/or the Company shall immediately become
obligated to Cash Collateralize the Letters of Credit (all or any, as applicable), all without presentment,
demand, protest or notice of any kind. The Administrative Agent shall promptly advise the Company
of any such declaration, but failure to do so shall not impair the effect of such declaration. Any
cash collateral delivered hereunder shall be held by the Administrative Agent (without liability
for interest thereon) and applied to the Obligations arising in connection with any drawing under
a Letter of Credit. After the expiration or termination of all Letters of Credit, such cash collateral
shall be applied by the Administrative Agent to any remaining Obligations hereunder and any excess
shall be delivered to the Company or as a court of competent jurisdiction may elect. If an Event
of Default shall occur and be continuing, the Administrative Agent, on behalf of the Lenders, may
exercise, in addition to all other rights and remedies against the Company and each other Loan Party
granted to them in this Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, and all rights and remedies of a creditor under any applicable law or at equity.

	 
	
                13.3           Application of Proceeds.  At such intervals as may be agreed upon by the Company and the Administrative Agent, or, if an Event
of Default shall have occurred and be continuing, at any time at the Administrative Agent’s
election, the Administrative Agent may apply all payments received by or on behalf of the Company
or any Guarantor, whether from proceeds of any of their assets or otherwise, in payment of the Obligations
and the Guarantor Obligations in such order as the Administrative Agent shall determine in its discretion.
Any part of such funds which the Administrative Agent elects not so to apply and deems not required
as collateral security for the Obligations and the Guarantor Obligations shall be paid over from time

	

58

	
 to time by the Administrative Agent to the Company, the applicable Guarantor or to whomsoever
may be lawfully entitled to receive the same. Any balance of such amounts, remaining after the Obligations
and the Guarantor Obligations shall have been Paid in Full shall be paid over to the Company, the
applicable Guarantor or to whomsoever may be lawfully entitled to receive the same. In the absence
of a specific determination by the Administrative Agent, all such payments, Proceeds, Insurance Proceeds
(to the extent required to be paid to the Administrative Agent as set forth in the Credit Agreement),
in payment of the Obligations and the Guarantor Obligations shall be applied in the following order:

	 

	 	
First, to the payment of all fees, reasonable out-of-pocket costs, and expenses and indemnities of the Administrative
Agent (in its capacity as such), including Attorney Costs, and any Obligations and the Guarantor
Obligations owing to the Administrative Agent, until paid in full;

		 
	 	
Second, to the payment of all fees, reasonable costs, and expenses and indemnities of the Lenders,
pro-rata, until paid in full;

		 
	 	
Third, to the payment of all of the Obligations and the Guarantor Obligations in respect of the Swing
Line Loans to the Swing Line Lender, until paid in full;

		 
	 	
Fourth, to the payment of all of the Obligations and the Guarantor Obligations consisting of accrued
and unpaid interest owing to any Lender, pro-rata, until paid in full;

		 
	 	
Fifth, to the payment of all Obligations and the Guarantor Obligations consisting of principal owing
to any Lender and Bank Product Obligations and Hedging Obligations, pro-rata, until paid in full;

		 
	 	
Sixth, to the payment of the Administrative Agent an amount equal to all Obligations and the Guarantor
Obligations in respect of outstanding Letters of Credit to be held as cash collateral in respect
of such obligations;

		 
	 	
Seventh, to the payment of all other Obligations and the Guarantor Obligations owing to each Lender,
pro-rata, until paid in full; and

	 
	
                                any
remaining amounts may be lawfully entitled to receive such amounts.

                SECTION 14     THE AGENTS.

	 

	                   14.1                Appointment and Authorization. Each Lender hereby irrevocably (subject to Section 14.10) appoints, designates and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, the Adm
inistrative Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied

	

59

	
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without
limiting the generality of the foregoing sentence, the use of the term “agent” herein and
in other Loan Documents with reference to the Administrative Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties.

	 

	
                  14.2                       Issuing Lender. The Issuing Lender shall act on behalf of the Lenders (according to their Pro Rata Shares) with respect
  to any Letters of Credit issued by it and the documents associated therewith. The Issuing Lender
  shall have all of the benefits and immunities (a) provided to the Administrative Agent in this SECTION 14 with respect to any acts taken or omissions suffered by the Issuing Lender in connection with Letters
  of Credit issued by it or proposed to be issued by it and the applications and agreements for letters
  of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent”,
  as used in this SECTION 14, included the Issuing Lender with respect to such acts or omissions and (b) as additionally provided
  in this Agreement with respect to the Issuing Lender.

	 

	
                  14.3                Delegation of Duties.  The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document
  by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and
  other consultants or experts concerning all matters pertaining to such duties. The Administrative
  Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact
  that it selects in the absence of gross negligence or willful misconduct.

	 

	
                  14.4                Exculpation of Administrative Agent. None of the Administrative Agent nor any of its directors, officers, employees or agents shall (a) be
  liable for any action taken or omitted to be taken by any of them under or in connection with this
  Agreement or any other Loan Document or the transactions contemplated hereby (except to the extent
  resulting from its own gross negligence or willful misconduct in connection with its duties expressly
  set forth herein as determined by a final, nonappealable judgment by a court of competent jurisdiction),
  or (b) be responsible in any manner to any Lender or participant for any recital, statement,
  representation or warranty made by any Loan Party or Affiliate of the Company, or any officer thereof,
  contained in this Agreement or in any other Loan Document, or in any certificate, report, statement
  or other document referred to or provided for in, or received by the Administrative Agent under or
  in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness,
  enforceability or sufficiency of this Agreement or any other Loan Document (or the creation, perfection
  or priority of any Lien or security interest therein), or for any failure of the Company or any other
  party to any Loan Document to perform its Obligations hereunder or thereunder. The Administrative
  Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance
  or performance of any of the agreements contained in, or conditions of, this Agreement or any other
  Loan Document, or to inspect the properties, books or records of the Company or any of the Company’s
  Subsidiaries or Affiliates.

	 

	
                  14.5                Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any
  writing, communication, signature, resolution, representation, notice, consent, certificate, electronic
  mail message,

	

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affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the
Company), independent accountants and other experts selected by the Administrative Agent. The Administrative
Agent shall be fully justified in failing or refusing to take any action under this Agreement or
any other Loan Document unless it shall first receive such advice or concurrence of the Required
Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders of their obligation
to indemnify the Administrative Agent against any and all liability and expense which may be incurred
by it by reason of taking or continuing to take any such action. The Administrative Agent shall in
all cases be fully protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required Lenders and such request
and any action taken or failure to act pursuant thereto shall be binding upon each Lender. For purposes
of determining compliance with the conditions specified in SECTION 12, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted
or to be satisfied with, each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have
received written notice from such Lender prior to the proposed Closing Date specifying its objection
thereto.

	 

	
                  14.6                Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Event
  of Default or Unmatured Event of Default except with respect to defaults in the payment of principal,
  interest and fees required to be paid to the Administrative Agent for the account of the Lenders,
  unless the Administrative Agent shall have received written notice from a Lender or the Company referring
  to this Agreement, describing such Event of Default or Unmatured Event of Default and stating that
  such notice is a “notice of default”. The Administrative Agent will notify the Lenders
  of its receipt of any such notice. The Administrative Agent shall take such action with respect to
  such Event of Default or Unmatured Event of Default as may be requested by the Required Lenders in
  accordance with SECTION 13; provided that unless and until the Administrative Agent has received any such request, the Administrative Agent
  may (but shall not be obligated to) take such action, or refrain from taking such action, with respect
  to such Event of Default or Unmatured Event of Default as it shall deem advisable or in the best
  interest of the Lenders.

	 

	
                  14.7                Credit Decision.  Each Lender acknowledges that the Administrative Agent has not made any representation or warranty
  to it, and that no act by the Administrative Agent hereafter taken, including any consent and acceptance
  of any assignment or review of the affairs of the Loan Parties, shall be deemed to constitute any
  representation or warranty by the Administrative Agent to any Lender as to any matter, including
  whether the Administrative Agent has disclosed material information in its possession. Each Lender
  represents to the Administrative Agent that it has, independently and without reliance upon the Administrative
  Agent and based on such documents and information as it has deemed appropriate, made its own appraisal
  of and investigation into the business, prospects, operations, property, financial and other condition
  and creditworthiness of the Loan Parties, and made its own decision to enter into this Agreement
  and to extend credit to the Company hereunder. Each Lender also represents that it will, independently
  and without reliance upon the Administrative Agent and based on such documents and information as
  it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions
  in taking or not taking action under this Agreement and

	

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the other Loan Documents, and to make such investigations as it deems necessary to inform itself as
to the business, prospects, operations, property, financial and other condition and creditworthiness
of the Company. Except for notices, reports and other documents expressly herein required to be furnished
to the Lenders by the Administrative Agent, the Administrative Agent shall not have any duty or responsibility
to provide any Lender with any credit or other information concerning the business, prospects, operations,
property, financial or other condition or creditworthiness of the Company which may come into the
possession of the Administrative Agent.

	 

	
                  14.8                Indemnification.  Whether or not the transactions contemplated hereby are consummated, each Lender shall indemnify upon
  demand the Administrative Agent and its directors, officers, employees and agents (to the extent
  not reimbursed by or on behalf of the Company and without limiting the obligation of the Company
  to do so), according to its applicable Pro Rata Share, from and against any and all Indemnified Liabilities
  (as hereinafter defined); provided that no Lender shall be liable for any payment to any such Person
  of any portion of the Indemnified Liabilities to the extent determined by a final, nonappealable
  judgment by a court of competent jurisdiction to have resulted from the applicable Person’s
  own gross negligence or willful misconduct. No action taken in accordance with the directions of
  the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes
  of this Section. Without limitation of the foregoing, each Lender shall reimburse the Administrative
  Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney
  Costs and Taxes) incurred by the Administrative Agent in connection with the preparation, execution,
  delivery, administration, modification, amendment or enforcement (whether through negotiations, legal
  proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
  Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
  extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Company.
  The undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes,
  expiration or termination of the Letters of Credit, any modification, release or discharge of, any
  or all of the Loan Documents, termination of this Agreement and the resignation or replacement of the Administrative Agent.

	 

	
                  14.9                Administrative Agent in Individual Capacity. LaSalle and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits
  from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory,
  underwriting or other business with the Loan Parties and Affiliates as though LaSalle were not the
  Administrative Agent hereunder and without notice to or consent of any Lender. Each Lender acknowledges
  that, pursuant to such activities, LaSalle or its Affiliates may receive information regarding the
  Company or its Affiliates (including information that may be subject to confidentiality obligations
  in favor of the Company or such Affiliate) and acknowledge that the Administrative Agent shall be
  under no obligation to provide such information to them. With respect to their Loans (if any), LaSalle
  and its Affiliates shall have the same rights and powers under this Agreement as any other Lender
  and may exercise the same as though LaSalle were not the Administrative Agent, and the terms “Lender”
  and “Lenders” include LaSalle and its Affiliates, to the extent applicable, in their individual
  capacities.

	 

	
                  14.10              Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders.
  If the Administrative Agent resigns

	

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under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the
consent of the Company (which shall not be unreasonably withheld or delayed), appoint from among
the Lenders a successor agent for the Lenders. If no successor agent is appointed prior to the effective
date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Company, a successor agent from among the Lenders. Upon the acceptance
of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights,
powers and duties of the retiring Administrative Agent and the term “Administrative Agent”
shall mean such successor agent, and the retiring Administrative Agent’s appointment, powers
and duties as Administrative Agent shall be terminated. After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this SECTION 14 and Sections 15.5 and 15.17 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Agreement. If no successor agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon
become effective and the Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as provided for above.

	 

	
                  14.11              Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
  adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative
  Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein
  expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall
  have made any demand on the Company) shall be entitled and empowered, by intervention in such proceeding
  or otherwise:

	 
	
	 

	 	
                (a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect
of the Loans, and all other Obligations that are owing and unpaid and to file such other documents
as may be necessary or advisable in order to have the claims of the Lenders and the Administrative
Agent (including, without limitation, any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and the Administrative Agent under SECTION 5, and Sections 15.5 and 15.17) allowed in such judicial proceedings; and

		 
	 	
                (b)    to collect and receive any monies or other property payable or deliverable on any such claims and
to distribute the same;

	 
	
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making
of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under SECTION 5, and Sections 15.5 and 15.17.

	

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                Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

	 

	
                  14.12              Other Agents; Arrangers and Managers. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement
  as a “syndication agent,” “documentation agent,” “co-agent,” “book
  manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger,”
  if any, shall have any right, power, obligation, liability, responsibility or duty under this Agreement
  other than, in the case of such Lenders, those applicable to all Lenders as such. Without limiting
  the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have
  any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and
  will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this
  Agreement or in taking or not taking action hereunder.

	 
	
                SECTION 15     GENERAL.

	 

	
                  15.1                Waiver; Amendments.  No delay on the part of the Administrative Agent or any Lender in the exercise of any right, power
  or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any of them
  of any right, power or remedy preclude other or further exercise thereof, or the exercise of any
  other right, power or remedy. No amendment, modification or waiver of, or consent with respect to,
  any provision of this Agreement or the other Loan Documents shall in any event be effective unless
  the same shall be in writing and acknowledged by Lenders having an aggregate Pro Rata Shares of not
  less than the aggregate Pro Rata Shares expressly designated herein with respect thereto or, in the
  absence of such designation as to any provision of this Agreement, by the Required Lenders, and then
  any such amendment, modification, waiver or consent shall be effective only in the specific instance
  and for the specific purpose for which given. No amendment, modification, waiver or consent shall
  (a) extend or increase the Commitment of any Lender without the written consent of such Lender;
  (b) extend the date scheduled for payment of any principal (excluding mandatory prepayments)
  of, or interest on, the Loans, or any fees payable hereunder without the written consent of each
  Lender directly affected thereby; (c) reduce the principal amount of any Loan, the rate of interest
  thereon or any fees payable hereunder, without the consent of each Lender directly affected thereby
  (except for periodic adjustments of interest rates and fees resulting from a change in the Applicable
  Margin as provided for in this Agreement); or (d) release any party from its obligations under
  the Guaranty Agreement, change the definition of Required Lenders, any provision of this Section 15.1 or reduce the aggregate Pro Rata Share required to effect an amendment, modification, waiver or consent,
  without, in each case, the written consent of all Lenders. No provision of SECTION 14 or other provision of this Agreement affecting the Administrative Agent in its capacity as such shall
  be amended, modified or waived without the consent of the Administrative Agent. No provision of this
  Agreement relating to the rights or duties of the Issuing Lender in its capacity as such shall be
  amended, modified or waived without the consent of the Issuing Lender. No provision of this Agreement
  relating to the rights or duties of the Swing Line Lender in its capacity as such shall be amended,
  modified or waived without the consent of the Swing Line Lender.

	

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                15.2                Confirmations.  The Company and each holder of a Note agree from time to time, upon written request received by it
from the other, to confirm to the other in writing (with a copy of each such confirmation to the
Administrative Agent) the aggregate unpaid principal amount of the Loans then outstanding under such
Note.

	 

	 	
                15.3                Notices.  Except as otherwise provided in Sections 2.2.2 and 2.2.3, all notices hereunder shall be in writing (including facsimile transmission) and shall be sent to
the applicable party at its address shown on Annex B or at such other address as such party may, by written notice received by the other parties, have
designated as its address for such purpose. Notices sent by facsimile transmission shall be deemed
to have been given when sent; notices sent by mail shall be deemed to have been given three Business
Days after the date when sent by registered or certified mail, postage prepaid; and notices sent
by hand delivery or overnight courier service shall be deemed to have been given when received. For
purposes of Sections 2.2.2 and 2.2.3, the Administrative Agent shall be entitled to rely on telephonic instructions from any person that
the Administrative Agent in good faith believes is an authorized officer or employee of the Company,
and the Company shall hold the Administrative Agent and each other Lender harmless from any loss,
cost or expense resulting from any such reliance.

	 

	 	
                15.4                Computations.  Where the character or amount of any asset or liability or item of income or expense is required to
be determined, or any consolidation or other accounting computation is required to be made, for the
purpose of this Agreement, such determination or calculation shall, to the extent applicable and
except as otherwise specified in this Agreement, be made in accordance with GAAP, consistently applied;
provided that if the Company notifies the Administrative Agent that the Company wishes to amend any covenant
in Section 11.15 (or any related definition) to eliminate or to take into account the effect of any change in GAAP
on the operation of such covenant (or if the Administrative Agent notifies the Company that the Required
Lenders wish to amend Section 11.15 (or any related definition) for such purpose), then the Company’s compliance with such covenant
shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant (or related definition)
is amended in a manner satisfactory to the Company and the Required Lenders.

	 

	 	
                15.5                Costs, Expenses and Taxes. The Company agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Administrative
Agent (including Attorney Costs and any Taxes) in connection with the preparation, execution, syndication,
delivery and administration (including the costs of Intralinks (or other similar service), if applicable)
of this Agreement, the other Loan Documents and all other documents provided for herein or delivered
or to be delivered hereunder or in connection herewith (including any amendment, supplement or waiver
to any Loan Document), whether or not the transactions contemplated hereby or thereby shall be consummated,
and all reasonable out-of-pocket costs and expenses (including Attorney Costs and any Taxes) incurred
by the Administrative Agent and after an Event of Default and during the continuance thereof in connection
with the collection of the Obligations or the enforcement of this Agreement the other Loan Documents
or any such other documents or during any workout, restructuring or negotiations in respect thereof.
In addition, the Company agrees to pay, and to save the Administrative Agent and the Lenders harmless
from all liability for, any fees of the Company’s auditors or examiners in connection with any
reasonable exercise

	

65

	
by the Administrative Agent and the Lenders of their rights pursuant to Section 10.2. All Obligations provided for in this Section 15.5 shall survive repayment of the Loans, cancellation of the Notes, expiration or termination of the
Letters of Credit and termination of this Agreement.

	 

	 	                15.6                Assignments; Participations.
		 

	 	                15.6.1          Assignments.
		 

	 	
                (a)    Any Lender may at any time assign to one or more Persons (any such Person, an “Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior written consent
of the Administrative Agent, the Issuing Lender (for an assignment of the Revolving Loans and the
Revolving Commitment) and, so long as no Event of Default exists, the Company (which consents shall
not be unreasonably withheld or delayed and shall not be required for an assignment by a Lender to
a Lender or an Affiliate of a Lender). Except as the Administrative Agent may otherwise agree, any
such assignment shall be in a minimum aggregate amount equal to $5,000,000 or, if less, the remaining
Commitment and Loans held by the assigning Lender. The Company and the Administrative Agent shall
be entitled to continue to deal solely and directly with such Lender in connection with the interests
so assigned to an Assignee until the Administrative Agent shall have received and accepted an effective
assignment agreement in substantially the form of Exhibit Error! Reference source not found. hereto (an “Assignment Agreement”) executed, delivered and fully completed by the applicable parties thereto and a processing
fee of $3,500 payable by the Assignor, unless pursuant to the Assignment Agreement the Assignee has
agreed to make such payment. No assignment may be made to any Person if at the time of such assignment
the Company would be obligated to pay any greater amount under Section 7.6 or SECTION 8 to the Assignee than the Company is then obligated to pay to the assigning Lender under such Sections
(and if any assignment is made in violation of the foregoing, the Company will not be required to
pay such greater amounts). Any attempted assignment not made in accordance with this Section 15.6.1 shall be treated as the sale of a participation under Section 15.6.2. The Company shall be deemed to have granted its consent to any assignment requiring its consent hereunder
unless the Company has expressly objected to such assignment within three Business Days after notice
thereof.

		 
	 	
                (b)    From and after the date on which the conditions described above have been met, (i) such Assignee
shall be deemed automatically to have become a party hereto and, to the extent that rights and obligations
hereunder have been assigned to such Assignee pursuant to such Assignment Agreement, shall have the
rights and obligations of a Lender hereunder and (ii) the assigning Lender, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement,
shall be released from its rights (other than its indemnification rights) and obligations hereunder.
Upon the request of the Assignee (and, as applicable, the assigning Lender) pursuant to an effective
Assignment Agreement, the Company shall execute and deliver to the Administrative Agent for delivery
to the Assignee (and, as applicable, the assigning Lender) a Note in the principal amount of the
Assignee’s Pro Rata Share of the Revolving Commitment (and, as applicable, a Note in the principal
amount of the Pro Rata Share of the Revolving Commitment retained by the assigning Lender). Each
such Note shall be dated the effective date of such assignment.

	

66

	 	
Upon receipt by the assigning Lender of such Note, the assigning Lender shall return to the Company
any prior Note held by it.

		 
	 	
                (c)    Any Lender may at any time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including any pledge or assignment to
secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge
or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

		 

	 	
                15.6.2          Participations.  Any Lender may at any time sell to one or more Persons participating interests in its Loans, Commitments
or other interests hereunder (any such Person, a “Participant”). In the event of a sale by a Lender of a participating interest to a Participant, (a) such
Lender’s obligations hereunder shall remain unchanged for all purposes, (b) the Company
and the Administrative Agent shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations hereunder and (c) all amounts payable by the
Company shall be determined as if such Lender had not sold such participation and shall be paid directly
to such Lender. No Participant shall have any direct or indirect voting rights hereunder except with
respect to any event described in Section 15.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all affected Lenders. Each
Lender agrees to incorporate the requirements of the preceding sentence into each participation agreement
which such Lender enters into with any Participant. The Company agrees that if amounts outstanding
under this Agreement are due and payable (as a result of acceleration or otherwise), each Participant
shall be deemed to have the right of set-off in respect of its participating interest in amounts
owing under this Agreement and with respect to any Letter of Credit to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under this Agreement; provided that such right of set-off shall be subject to the obligation of each Participant to share with the
Lenders, and the Lenders agree to share with each Participant, as provided in Section 7.5. The Company also agrees that each Participant shall be entitled to the benefits of Section 7.6 or SECTION 8 as if it were a Lender (provided that on the date of the participation no Participant shall be entitled to any greater compensation
pursuant to Section 7.6 or SECTION 8 than would have been paid to the participating Lender on such date if no participation had been sold
and that each Participant complies with Section 7.6(d) as if it were an Assignee).

		 

	
                            15.7                Register.The Administrative Agent shall maintain a copy of each Assignment Agreement delivered and accepted
by it and register (the “Register”) for the recordation of names and addresses of the Lenders and the Commitment of each Lender
from time to time and whether such Lender is the original Lender or the Assignee. No assignment shall
be effective unless and until the Assignment Agreement is accepted and registered in the Register.
All records of transfer of a Lender’s interest in the Register shall be conclusive, absent manifest
error, as to the ownership of the interests in the Loans. The Administrative Agent shall not incur
any liability of any kind with respect to any Lender with respect to the maintenance of the Register.

	

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                15.8                GOVERNING LAW.  THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES.

	 

	 	
                15.9                Confidentiality.  As required by federal law and the Administrative Agent’s policies and practices, the Administrative
Agent may need to obtain, verify, and record certain customer identification information and documentation
in connection with opening or maintaining accounts, or establishing or continuing to provide services.
The Administrative Agent and each Lender agree to use commercially reasonable efforts (equivalent
to the efforts the Administrative Agent or such Lender applies to maintain the confidentiality of
its own confidential information) to maintain as confidential all information provided to them by
or on behalf of any Loan Party and designated as confidential, except that the Administrative Agent
and each Lender may disclose such information (a) to Persons employed or engaged by the Administrative
Agent or such Lender in evaluating, approving, structuring or administering the Loans and the Commitments;
(b) to any assignee or participant or potential assignee or participant that has agreed to comply
with the covenant contained in this Section 15.9 (and any such assignee or participant or potential assignee or participant may disclose such information
to Persons employed or engaged by them as described in clause (a) above); (c) as required
or requested by any federal or state regulatory authority or examiner, or any insurance industry
association, or as reasonably believed by the Administrative Agent or such Lender to be compelled
by any court decree, subpoena or legal or administrative order or process; (d) as, on the advice
of the Administrative Agent’s or such Lender’s counsel, is required by law; (e) in
connection with the exercise of any right or remedy under the Loan Documents or in connection with
any litigation to which the Administrative Agent or such Lender is a party; (f) to any nationally
recognized rating agency that requires access to information about a Lender’s investment portfolio
in connection with ratings issued with respect to such Lender and such Lender uses reasonable efforts
to advise such rating agency of such confidentiality requirement (although any such Lender shall
have no liability for failure to give notice of such confidentiality obligation unless such failure
by such Lender was willful); (g) to any Affiliate of the Administrative Agent, the Issuing Lender
or any other Lender who may provide Bank Products to the Loan Parties; or (h) that ceases to
be confidential through no fault of the Administrative Agent or any Lender. Notwithstanding the foregoing,
the Company consents to the publication by the Administrative Agent or any Lender of a tombstone
or similar advertising material relating to the financing transactions contemplated by this Agreement,
and the Administrative Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

	 

	 	
                15.10              Severability.  Whenever possible each provision of this Agreement shall be interpreted in such 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 to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement. All obligations of the Company and rights of the Administrative Agent and the Lenders
expressed herein or in any other Loan Document shall be in addition to and not in limitation of those
provided by applicable law.

	

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                15.11              Nature of Remedies.  All Obligations of the Company and rights of the Administrative Agent and the Lenders expressed herein
or in any other Loan Document shall be in addition to and not in limitation of those provided by
applicable law. No failure to exercise and no delay in exercising, on the part of the Administrative
Agent or any Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

	 

	 	
                15.12              Entire Agreement.  This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding
among the parties hereto and supersedes all prior or contemporaneous agreements and understandings
of such Persons, verbal or written, relating to the subject matter hereof and thereof (except as
relates to the fees described in Section 5.4) and any prior arrangements made with respect to the payment by the Company of (or any indemnification
for) any fees, costs or expenses payable to or incurred (or to be incurred) by or on behalf of the
Administrative Agent or the Lenders.

	 

	 	
                15.13              Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Agreement. Receipt of an executed signature page to
this Agreement by facsimile or other electronic transmission shall constitute effective delivery
thereof. Electronic records of executed Loan Documents maintained by the Lenders shall deemed to
be originals.

	 

	 	
                15.14              Successors and Assigns.  This Agreement shall be binding upon the Company, the Lenders and the Administrative Agent and their
respective successors and assigns, and shall inure to the benefit of the Company, the Lenders and
the Administrative Agent and the successors and assigns of the Lenders and the Administrative Agent.
No other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect
cause of action or claim in connection with, this Agreement or any of the other Loan Documents. The
Company may not assign or transfer any of its rights or Obligations under this Agreement without
the prior written consent of the Administrative Agent and each Lender.

	 

	 	
                15.15              Captions.  Section captions used in this Agreement are for convenience only and shall not affect the construction
of this Agreement.

	 

	 	
                15.16              Customer Identification - USA Patriot Act Notice. Each Lender and LaSalle (for itself and not on behalf of any other party) hereby notifies the Loan
Parties that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed
into law October 26, 2001 (the “Act”), it is required to obtain, verify and record
information that identifies the Loan Parties, which information includes the name and address of
the Loan Parties and other information that will allow such Lender or LaSalle, as applicable, to
identify the Loan Parties in accordance with the Act.

	 

	 	
                15.17              INDEMNIFICATION BY THE COMPANY. IN CONSIDERATION OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE ADMINISTRATIVE AGENT, THE ISSUING
LENDER AND THE LENDERS AND THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, THE COMPANY
HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE AGENT,

	

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THE ISSUING LENDER, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS
OF THE ADMINISTRATIVE AGENT, THE ISSUING LENDER, AND EACH LENDER (EACH A “LENDER PARTY”)
FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES,
DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”),
INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO (A) ANY
TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS (INCLUDING ANY SIMILAR TRANSACTION
FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS
OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION, STORAGE,
TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY,
(C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED
OR LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED THEREON, (D) THE INVESTIGATION, CLEANUP
OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN PARTY OR THEIR RESPECTIVE PREDECESSORS ARE
ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY ANY OF THE LENDER
PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER
PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT
BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE
UNENFORCEABLE FOR ANY REASON, THE COMPANY HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT
AND SATISFACTION OF EACH OF THE INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW.
ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE
LETTERS OF CREDIT AND TERMINATION OF THIS AGREEMENT.

	 

	
                  15.18              Nonliability of Lenders. The relationship between the Company on the one hand and the Lenders and the Administrative Agent on
  the other hand shall be solely that of borrower and lender. Neither the Administrative Agent nor
  any Lender has any fiduciary relationship with or duty to any Loan Party arising out of or in connection
  with this Agreement or any of the other Loan Documents, and the relationship between the Loan Parties,
  on the one hand, and the Administrative Agent and the Lenders, on the other hand, in connection herewith
  or therewith is solely that of debtor and creditor. Neither the Administrative Agent nor any Lender
  undertakes any responsibility to any Loan Party to review or inform any Loan Party of any matter
  in connection with any phase of any Loan Party’s business or operations. The Company agrees,
  on behalf of itself and each other Loan Party, that neither the Administrative Agent nor any Lender
  shall have liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses
  suffered by any Loan Party in connection with, arising out of, or in any way related to the transactions
  contemplated and the relationship established by the Loan

	

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Documents, or any act, omission or event occurring in connection therewith, unless it is determined
in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted
from the gross negligence or willful misconduct of the party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR
OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN
CONNECTION WITH THIS AGREEMENT, NOR SHALL ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND
THE COMPANY ON BEHALF OF ITSELF AND EACH OTHER LOAN PARTY, HEREBY WAIVES, RELEASES AND AGREES NOT
TO SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER
BEFORE OR AFTER THE CLOSING DATE).  The Company acknowledges that it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents to which it is a party. No joint venture
is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Loan Parties and the Lenders.

	 

	
                  15.19              FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
  OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS
  OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM
  BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION. THE COMPANY HEREBY EXPRESSLY
  AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED
  STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION
  AS SET FORTH ABOVE. THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
  MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE COMPANY
  HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
  IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
  REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

	 

	
                  15.20              WAIVER OF JURY TRIAL.  EACH OF THE COMPANY, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY
  JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE,
  ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY
  IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP
  EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH

	

71

	
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

	 

	
                  15.21              Statutory Notice - Oral Commitments. Nothing contained in the following notice shall be deemed to limit or modify the terms of this Agreement
  and the other Loan Documents:

	 
	
ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT
OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL
THEORY UPON WHICH IT IS BASED AND THAT IS IN ANY WAY RELATE TO THE CREDIT AGREEMENT AND THE LOAN
DOCUMENTS. TO PROTECT COMPANY AND EACH OTHER LOAN PARTY (BORROWER) AND ADMINISTRATIVE AGENT AND THE
LENDER (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS THE COMPANY AND ADMINISTRATIVE
AGENT AND THE LENDERS REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE
AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

Company acknowledges that there are no other agreements between Administrative Agent, Lenders, Company
and the Loan Parties, oral or written, concerning the subject matter of the Loan Documents, and that
all prior agreements concerning the same subject matter, including any proposal or commitment letter,
are merged into the Loan Documents and thereby extinguished.

[signature pages follow]

	

72

	
         The parties hereto have caused this Agreement
to be duly executed and delivered by their duly authorized officers as of the date first set forth
above.

	 

	 	CPI Corp.,
      a Delaware corporation 
	 	 	 
	 	 	 
	 	By:  /s/
      Gary W. Douglass                            
	 	 	    Gary
      W. Douglass
	 	 	    Treasurer
	 	 	    
	 	 	    
	 	 	 
	 	 	 
	   	LaSalle
      Bank
	  	National
      Association, 
	  	as Administrative
      Agent, as Issuing Lender and as a
	  	Lender
	 	 	 
	 	 	 
	 	 By:
       /s/ Margaret Dierkes                      
	 	 	    Margaret
      Dierkes
	 	 	    Vice
      President

	

73

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