Document:

Amendment 1 to the Furniture Brands Credit Agreement dated 04/16/07

     

    AMENDMENT
      NO. 1 TO CREDIT AGREEMENT

     

    THIS
      AMENDMENT NO. 1 TO CREDIT AGREEMENT
      (this
“Amendment”) is entered into as of April 16, 2007 by and among FURNITURE
      BRANDS INTERNATIONAL, INC.,
      a
      Delaware corporation (“Furniture Brands”), BROYHILL
      FURNITURE INDUSTRIES, INC.,
      a North
      Carolina corporation (“Broyhill”), HDM
      FURNITURE INDUSTRIES, INC.,
      a
      Delaware corporation (“HDM”), LANE
      FURNITURE INDUSTRIES, INC.,
      a
      Mississippi corporation (“Lane”),
      THOMASVILLE FURNITURE INDUSTRIES, INC.,
      a
      Delaware corporation (“Thomasville”, and, together with Furniture Brands, HDM,
      Broyhill and Lane, each a “Borrower,” and, collectively, the “Borrowers”),
the
      Lenders party to the Credit Agreement, and JPMORGAN
      CHASE BANK, N.A.,
      as
      Administrative Agent (the “Administrative Agent”).

     

     

    RECITALS

     

    A. The
      Borrowers, the Lenders, the Co-Syndication Agents, the Administrative Agent
      and
      the Lead Arranger are party to that certain Credit Agreement dated as of April
      21, 2006 (the “Credit Agreement”). Unless otherwise specified herein,
      capitalized terms used in this Amendment shall have the meanings ascribed to
      them by the Credit Agreement.

     

    B. The
      Borrowers, the Lenders, and the Administrative Agent wish to amend the Credit
      Agreement on the terms and conditions set forth below.

     

    Now,
      therefore, in consideration of the mutual execution hereof and other good and
      valuable consideration, the parties hereto agree as follows:

     

    1. Amendment
      to Credit Agreement.
      The
      Credit Agreement is hereby amended as follows effective as of March 31,
      2007:

     

    (a) The
      defined terms “Applicable Base Rate Margin” and “Applicable Eurodollar Margin”
in Section 1.01 of the Credit Agreement are hereby 

    amended
      by adding
      the following as the final sentence of the definition thereof:

     

    Notwithstanding
      the foregoing, solely for the period from and including March 31, 2007 to but
      excluding June 30, 2007, the respective percentage per annum set forth above
      for
      (i) the Applicable Eurodollar Margin for Pricing Levels 4 and 5 shall be 1.00%
      and 1.25%, respectively and (ii) the Applicable Base Rate Margin for Pricing
      Level 5 shall be .25%.

     

    (b) The
      defined term “Credit Documents” in Section 1.01 of the Credit Agreement is
      hereby deleted and replaced with the following: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Credit
      Documents” shall mean this Agreement and, after the execution and delivery
      thereof pursuant to the terms of this Agreement, each Revolving Note, the
      Swingline Note and the Guaranty and, after the execution and delivery thereof,
      the Intercreditor Agreement, each Security Document and each additional guaranty
      executed pursuant to Section 9.09. 

     

    (c) The
      defined term “Expiration Date” in Section 1.01 of the Credit Agreement is hereby
      deleted and replaced with the following: 

     

    “Expiration
      Date” shall mean (x) with respect to each Letter of Credit, the final stated
      expiration date (or, if later, the stated final drawing date) thereof or such
      earlier date on which such Letter of Credit was canceled and returned to the
      Issuing Lender and (y) with respect to each Acceptance, the date on which such
      Acceptance matures as provided by the terms of the draft under the Letter of
      Credit related thereto.

     

    (d) Section
      1.01 of the Credit Agreement is amended by adding the following definitions
      in
      appropriate alphabetical order:

     

    “Asset
      Disposition”
shall
      mean any sale, transfer or other disposition of any asset of Furniture Brands
      or
      any Subsidiary thereof in a single transaction or in a series of related
      transactions (other than (i) the sale of inventory or products in the ordinary
      course or the sale of obsolete or worn out property in the ordinary course
      and
      (ii) the sale of cash equivalent investments in the ordinary course of the
      cash
      management of the business of Furniture Brands and its
      Subsidiaries).

     

    “Collateral”
shall
      mean all property with respect to which any security interests have been granted
      (or purported to be granted) pursuant to any Security Document.

     

    “Collateral
      Agent”
shall
      mean the Administrative Agent acting as collateral agent for the Secured
      Creditors pursuant to the Security Documents.

     

    “Equity
      Interests”
shall
      mean shares of capital stock, partnership interests, membership interests in
      a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person, and any warrants, options or other rights
      entitling the holder thereof to purchase or acquire any such equity
      interest.

     

    “Intercreditor
      Agreement”
shall
      mean the Intercreditor and Collateral Agency Agreement dated as of the date
      of
      Amendment No. 1 hereto entered into among the holders of the Borrowers’ 6.83%
      Senior Notes due May 17, 2018, the Collateral Agent and the Administrative
      Agent
      on its on behalf and on behalf of each of the Lenders, as amended, restated,
      modified or supplemented from time to time.

     

    

    
      
        
        

      

      
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    “Pledge
      Agreement”
shall
      mean the Pledge Agreement dated as of the date of Amendment No. 1 hereto made
      by
      the Borrowers and the other Guarantors party thereto in favor of the Collateral
      Agent for the benefit of the Secured Creditors, as the same may be amended,
      restated, modified or supplemented from time to time.

     

    “Pledge
      Agreements”
shall
      mean, collectively, the Pledge Agreement and each other document or instrument
      pursuant to which Equity Interests are pledged to the Collateral Agent for
      the
      benefit of the Secured Creditors pursuant hereto, in each case as the same
      may
      be amended, restated, modified or supplemented from time to time.

     

    “Secured
      Creditors”
shall
      mean the Lenders, the Administrative Agent, the Collateral Agent, the “Other
      Creditors” (as defined in the Guaranty) and the holders of the Borrowers’ 6.83%
      Senior Notes due May 17, 2018, all as more specifically described in the
      respective Security Documents.

     

    “Security
      Agreement”
shall
      mean the Security Agreement dated as of the date of Amendment No. 1 hereto
      made
      by the Borrowers and the other Guarantors party thereto in favor of the
      Collateral Agent for the benefit of the Secured Creditors, as the same may
      be
      amended, restated, modified or supplemented from time to time. 

     

    “Security
      Agreements”
shall
      mean, collectively, the Security Agreement, and each other document or
      instrument pursuant to which security interests are granted in the Collateral
      to
      the Collateral Agent for the benefit of the Secured Creditors pursuant hereto,
      in each case as the same may be amended, restated, modified or supplemented
      from
      time to time.

     

    “Security
      Documents”
shall
      mean and include the Security Agreements, the Pledge Agreements and each other
      document or instrument pursuant to which security is granted to the Collateral
      Agent for the benefit of the Secured Creditors pursuant hereto or in connection
      herewith.

     

    “Substantial
      Portion”
shall
      mean, with respect to the property of Furniture Brands and its Subsidiaries,
      property which (i) represents more than 10% of the consolidated assets of
      Furniture Brands and its Subsidiaries as would be shown in the consolidated
      financial statements of Furniture Brands and its Subsidiaries as at the
      beginning of the twelve-month period ending with the last day of the month
      preceding the month in which such determination is made or (ii) is responsible
      for more than 10% of the consolidated net sales or of the consolidated net
      income of 

     

    
      
        
        

      

      
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    Furniture
      Brands and its Subsidiaries as would be reflected in the financial statements
      referred to in clause (i) above for such twelve-month period. 

     

    (e) Section
      8
      of the Credit Agreement is hereby amended by adding a new Section 8.20 as
      follows: 

     

    8.20
      Security
      Documents.
      The
      security interests created in favor of the Collateral Agent, for the benefit
      of
      the Secured Creditors, under the Security Agreements and Pledge Agreements
      constitute valid and enforceable security interests in the Collateral described
      in such Security Document under its governing law, subject to no Lien of any
      other Person, except as permitted by such Security Document. No filings or
      recordings (other than filings or recordings that have been made) are required
      in order to perfect (or maintain the perfection or priority of) the security
      interests created in the Collateral pledged under any Security Document other
      than with respect to Collateral of a type as to which perfection may not be
      accomplished by filing under the Uniform Commercial Code.

     

    (f) Section
      9.09 of the Credit Agreement is hereby deleted and replaced with the
      following:

     

    9.09
      Additional Subsidiary Guarantors and Collateral. Unless
      the Required Lenders otherwise agree, each Borrower agrees to cause each of
      its
      Wholly-Owned Domestic Subsidiaries (other than such Subsidiaries having less
      than $10,000 of assets) that are acquired or created after the Effective Date
      (or, in the case of such Subsidiaries which exist but have less than $10,000
      of
      assets on the Effective Date, first acquires in excess of $10,000 of assets
      after the Effective Date) to promptly (and in any event within 10 Business
      Days
      (or, in the case of (iii) below, 20 Business Days) of such acquisition or
      creation) (i) execute and deliver a counterpart of the Joinder Agreement to
      the
      Guaranty in the form of Exhibit I hereto (the “Joinder Agreement”) and take the
      actions specified therein, (ii) execute and deliver a joinder to such Security
      Documents as the Administrative Agent may request, and (iii) execute such
      additional Security Documents as the Administrative Agent may request, in each
      case as deemed appropriate by the Administrative Agent to cause substantially
      all personal property of such Wholly-Owned Domestic Subsidiary other than Equity
      Interests in Foreign Subsidiaries to constitute Collateral
      and in
      form and substance satisfactory to the Administrative Agent and, in the case
      of
      (i), (ii) and (iii) above, accompanied by such resolutions, opinions, corporate
      certificates and other documents as the Administrative Agent may reasonably
      request. 

     

    (g) Section
      9
      of the Credit Agreement is hereby amended by adding a new Section 9.10 as
      follows:

     

    
      
        
        

      

      
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    9.10
      Further
      Assurances; etc.
      (a) The
      Borrowers will, and will cause each of their respective Subsidiaries to, at
      the
      expense of the Borrowers, make, execute, endorse, acknowledge, file and/or
      deliver to the Collateral Agent from time to time such schedules, confirmatory
      assignments, conveyances, financing statements, transfer endorsements, powers
      of
      attorney, certificates, reports, and other assurances or instruments and take
      such further steps relating to the Collateral covered by any of the Security
      Documents as the Administrative Agent may reasonably require to assure the
      creation and continuation of perfected security interests in the Collateral
      and
      as are generally consistent with the terms of this Agreement and the Security
      Documents. Furthermore, the Borrowers will, and will cause their respective
      Subsidiaries to, deliver to the Collateral Agent such opinions of counsel and
      other related documents as may be reasonably requested by the Administrative
      Agent to assure compliance with this Section 9.10. Without limiting the
      foregoing, the Borrowers shall use their best efforts to cause to be delivered
      to the Administrative Agent (i) a landlord waiver and/or mortgagee estoppel
      letter, as applicable, with respect to each material parcel of real property
      leased by any of the Borrowers or any of the Subsidiary Guarantors as and to
      the
      extent the Administrative Agent shall request, each in form and substance
      acceptable to the Administrative Agent and (ii) such bailee letters with respect
      to Collateral held by third parties as and to the extent the Administrative
      Agent shall request, each in form and substance acceptable to the Administrative
      Agent.

     

    (b) The
      Borrowers agree that each action required by clause (a) of this Section 9.10
      shall be completed as soon as reasonably practical, but in no event later than
      twenty (20) Business Days (or such greater number of days as the Administrative
      Agent may agree) after such action is requested to be taken by the
      Administrative Agent or the Required Lenders. 

     

    (h) Section
      10.01 of the Credit Agreement is hereby amended by deleting the word “or” at the
      conclusion of subsection 10.01(xiv), replacing the “.” at the conclusion of
      subsection 10.01(xv) with “; or” and adding a new subsection 10.01(xvi) as
      follows:

     

    (xvi)
      Liens created pursuant to the Security Documents.

     

    
      
        
        

      

      
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    (i) Section
      10.02 of the Credit Agreement is hereby amended by deleting the first sentence
      thereof up to and including the words “shall be permitted” and replacing such
      deleted words with the following:

     

    (a)
      Furniture Brands will not, and will not permit any of its Subsidiaries to,
      consolidate with or merge into any other Person or permit any other Person
      to
      merge into it or any of its Subsidiaries, except that the following shall be
      permitted: 

     

    and
      Section 10.02 of the Credit Agreement is hereby further amended by adding a
      new
      Section 10.02(b) as follows:

     

    (b) Furniture
      Brands will not, and will not permit any of its Subsidiaries to, make any Asset
      Disposition except for (i) Asset Dispositions among the Credit Parties, (ii)
      Asset Dispositions expressly permitted by Section 10.02(a) and (iii) other
      Asset
      Dispositions of property that, together with all other property of Furniture
      Brands and its Subsidiaries previously leased, sold or disposed of in Asset
      Dispositions made pursuant to Section 10.02(b)(iii) during the twelve-month
      period ending with the month in which any such lease, sale or other disposition
      occurs, do not constitute a Substantial Portion of the property of Furniture
      Brands and its Subsidiaries.

     

    (j) Section
      10.03(viii) of the Credit Agreement is hereby deleted and replaced with the
      following: 

     

    (viii)
      intercompany Indebtedness among the Borrowers and their Subsidiaries;
provided
      that if
      such Indebtedness is owing to a Guarantor, the Indebtedness is a senior
      obligation of the obligor, and if such Indebtedness is owing by a Guarantor
      to a
      Subsidiary which is not a Guarantor, the Indebtedness is at all times after
      the
      effectiveness of Amendment No. 1 hereto subordinated to the Obligations on
      terms
      reasonably satisfactory to the Administrative Agent;

     

    (k) Section
      10.05 of the Credit Agreement is hereby amended by deleting such subsection
      in
      its entirety and replacing it with the following:

     

    10.05
      Maximum
      Leverage Ratio. The
      Borrowers will not permit the Leverage Ratio at any time to be greater than
      or
      equal to 3.25:1.00; provided, however, that solely with respect to the period
      from and including March 31, 2007 through and including June 29, 2007, the
      Borrowers shall be deemed in compliance with this Section 10.05 so long as
      the
      Leverage Ratio is not at any time during such period greater than
      4.25:1.00.

     

    (l) Section
      10.06 of the Credit Agreement is hereby amended by deleting such subsection
      in
      its entirety and replacing it with the following:

     

    
      
        
        

      

      
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    10.06
      Minimum
      Coverage Ratio.
      The
      Borrowers will not (i) permit the Coverage Ratio as of the end of the fiscal
      quarter of the Borrowers ending on March 31, 2007 to be less than or equal
      to
      1.90:1.00, (ii) permit the Coverage Ratio as of the end of any fiscal quarter
      of
      the Borrowers ending prior to March 31, 2009 (other than the fiscal quarter
      of
      the Borrowers ending March 31, 2007) to be less than or equal to 2.75:1.00
      or
      (iii) permit the Coverage Ratio as of the end of any fiscal quarter of the
      Borrowers ending on or after March 31, 2009 to be less than or equal to
      3.00:1.00. 

     

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

     

    10.12
      Restricted
      Payments.
      Furniture Brands will not, and will not permit any of its Subsidiaries to,
      declare or make, or agree to pay or make, directly or indirectly, any Restricted
      Payment, except (a) Furniture Brands may declare and pay dividends with respect
      to its Equity Interests payable solely in additional shares of its common stock,
      (b) Subsidiaries of Furniture Brands may declare and pay dividends ratably
      with
      respect to their Equity Interests,
      (c) so
      long as no Default or Event of Default exists or would result therefrom,
      Furniture Brands may (i) pay cash dividends in an amount not in excess of $.64
      per common share per calendar year (adjusted for any stock splits after the
      date
      hereof) and (ii) repurchase at market price in any fiscal year a number of
      its
      common shares not in excess of the number of common shares of Furniture Brands
      issued through the exercise of stock options in such fiscal year and (d)
      Furniture Brands may make other Restricted Payments so long as (i) no Default
      or
      Event of Default exists or would result therefrom and (ii) the Leverage Ratio
      shall be less than 3.25:1.00 both before and after giving effect to such
      Restricted Payment.

     

    (n) Section
      10 of the Credit Agreement is hereby amended by adding new Sections 10.13 and
      10.14 as follows:

     

    10.13
      Certain
      Prepayments.
      Furniture Brands will not, and will not permit any of its Subsidiaries to,
      directly or indirectly (i) voluntarily prepay, defease or in substance defease,
      purchase, redeem, retire or otherwise acquire, any Indebtedness (other than
      the
      Obligations and the Senior Notes (as defined in Amendment No. 1 hereto)) having
      an aggregate principal amount in excess of $1,000,000, (ii) during the period
      from the date of the First Amendment hereto to and including June 30, 2007,
      voluntarily prepay, defease or in substance defease, purchase, redeem, retire
      or
      otherwise acquire, any principal amounts of Indebtedness outstanding under
      or
      evidenced by the Senior Notes or (iii) at any time after June 30, 2007,
      voluntarily prepay, defease or in substance defease, purchase, redeem, retire
      or
      otherwise acquire, any principal amounts of 

     

    
      
        
        

      

      
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    Indebtedness
      outstanding under or evidenced by the Senior Notes using proceeds of a borrowing
      hereunder.

     

    10.14
      Restricted
      Investments and Acquisitions.
      Unless
      both immediately before and immediately after giving effect to such transaction
      the Leverage Ratio is less than 3.25:1.00, the Borrowers will not, and will
      not
      permit any of their Subsidiaries to, purchase or acquire (including pursuant
      to
      any merger with any Person that was not a Wholly-Owned Subsidiary prior to
      such
      merger) any capital stock or other securities (including any option, warrant
      or
      other right to acquire any of the foregoing) of, make any investment or acquire
      any other interest in, any other Person, or purchase or otherwise acquire (in
      one transaction or a series of transaction) any assets of any other Person
      constituting a business unit, except for (a) acquisitions of dedicated dealer
      stores acquired by a Borrower or a Subsidiary of a Borrower in the ordinary
      course of business so long as the aggregate cash payments for all such
      acquisitions does not exceed $25,000,000 in any fiscal year, except that any
      unused balance of such amount in any fiscal year may be carried forward at
      the
      Borrowers’ discretion and applied in subsequent fiscal years and (b)
      acquisitions for which the consideration consists solely of common stock of
      Furniture Brands. 

     

    (o) Section
      11.03(i) of the Credit Agreement is hereby amended by deleting the phrase “in
      Section 9.01(d)(i), 9.07, 9.09” and replacing it with “in Section 9.01(b),
      9.01(d)(i), 9.07, 9.09”.

     

    (p) Section
      11 of the Credit Agreement is hereby further amended by deleting the word “or”
at the conclusion of Section 11.09, adding the word “or” at the conclusion of
      Section 11.10 and adding a new Section 11.11 as follows:

     

    11.11
      Security
      Documents.
      Any
      Security Document shall cease to be in full force and effect, or shall cease
      to
      give the Collateral Agent for the benefit of the Secured Creditors the Liens,
      rights, powers and privileges purported to be created thereby, or any of the
      Borrowers or Subsidiary Guarantors shall default in the due performance or
      observance of any term, covenant or agreement on its part to be performed or
      observed pursuant to such Security Document and such default shall continue
      beyond the period of grace, if any, specifically applicable thereto pursuant
      to
      the terms of such Security Document;

     

    (q) Section
      12 of the Credit Agreement is hereby amended by adding new Sections 12. 11
      and
      12.12 as follows:

     

    12.11
      Collateral
      Agent.
      Each
      of
      the Lenders and each Issuing Lender hereby irrevocably appoints the Collateral
      Agent as its agent and authorizes the Collateral Agent to take such actions
      on
      its behalf and to exercise such powers as are delegated to the Collateral Agent
      by the terms 

     

    
      
        
        

      

      
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    hereof
      or
      of the other Credit Documents, together with such actions and powers as are
      reasonably incidental thereto. All provisions of this Section 12 relating to
      the
      Administrative Agent (and all indemnities of the Administrative Agent by the
      Borrowers herein) shall be equally applicable to the Collateral Agent
mutatis mutandis.
      Without
      limiting the foregoing, if any Collateral is sold in a transaction permitted
      hereunder (other than to any Borrower or any Subsidiary thereof), such
      Collateral shall, to the extent so provided in the applicable Security
      Agreement, be sold free and clear of the Liens created by the Security Documents
      and the Administrative Agent and the Collateral Agent shall be authorized to
      take any actions deemed appropriate in order to effect the
      foregoing.

     

    12.12 Intercreditor
      Agreement.
      Each
      Lender hereby authorizes and directs the Administrative Agent to enter into
      the
      Intercreditor Agreement as attorney-in-fact on behalf of such Lender and agrees
      that in consideration of the benefits of the security being provided to such
      Lender in accordance with the Security Documents and the Intercreditor Agreement
      and by acceptance of those benefits, each Lender (including any Lender which
      becomes such by assignment pursuant to Section 13.04 after the date hereof)
      shall be bound by the terms and provisions of the Intercreditor Agreement and
      shall comply (and cause any Affiliate thereof which is the holder of any Senior
      Indebtedness (as defined therein) to comply) with such terms and provisions.
      The
      foregoing agreement shall inure to the benefit of all “Senior Lenders” under the
      Intercreditor Agreement.

     

    (r) Exhibit
      J
      to the Credit Agreement is amended by adding the following as the penultimate
      paragraph thereof (immediately prior to the paragraph commencing “The terms set
      forth in this Assignment”):

     

    By
      its
      acceptance of this Assignment, the Assignee hereby agrees to be bound by the
      terms and provisions of the Intercreditor Agreement and to comply (and cause
      any
      Affiliate thereof which is the holder of any Senior Indebtedness (as defined
      in
      the Intercreditor Agreement) to comply) with such terms and provisions. The
      foregoing agreement shall inure to the benefit of all “Senior Lenders” under the
      Intercreditor Agreement.

     

    Giving
      effect to such amendment, Exhibit J to the Credit Agreement reads in its
      entirety as set forth on Exhibit J hereto.

     

    2. Representations
      and Warranties of the Borrowers.
      Each of
      the Borrowers represents and warrants that:

     

    (a) The
      execution, delivery and performance by the Borrowers of this Amendment have
      been
      duly authorized by all necessary corporate action and that this Amendment is
      a
      legal, valid and binding obligation of the Borrowers enforceable against

     

    
      
        
        

      

      
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    the
      Borrowers in accordance with its terms, except as the enforcement thereof may
      be
      subject to the effect of any applicable bankruptcy, insolvency, reorganization,
      moratorium or similar law affecting creditors’ rights generally;

     

    (b) Each
      of
      the representations and warranties contained in the Credit Agreement (treating
      this Amendment and the Credit Agreement as amended hereby as “Credit Documents”
for purposes thereof) is true and correct in all material respects on and as
      of
      the date hereof as if made on the date hereof;

     

    (c) After
      giving effect to this Amendment, no Default or Event of Default has occurred
      and
      is continuing.

     

    3. Effective
      Date.
      This
      Amendment shall become effective as of March 31, 2007 upon the execution and
      delivery hereof by the Borrowers, the Required Lenders, and the Administrative
      Agent (without
      respect to whether it has been executed and delivered by all the Lenders) and
      the satisfaction of the following additional conditions:

     

    (a) Each
      of
      the Guarantors has executed and delivered a Reaffirmation and Amendment of
      Guaranty in the form of Exhibit A hereto.

     

    (b) Each
      of
      the Borrowers, the Subsidiary Guarantors and the Collateral Agent shall have
      executed and delivered the Security Agreement, the Pledge Agreement and such
      other Security Documents as the Administrative Agent shall request in order
      to
      grant to the Collateral Agent for the benefit of the Secured Parties a security
      interest in substantially all of the personal property of the Borrowers and
      Subsidiary Guarantors (other than Equity Interests in Foreign Subsidiaries)
      to
      equally and ratably secure the Obligations and the obligations of the Borrowers
      in respect of their 6.83% Senior Notes due May 17, 2018 (the “Senior
      Notes”).

     

    (c) The
      Administrative Agent shall have received insurance certificates or binders
      for
      all insurance as the Administrative Agent shall request naming the Collateral
      Agent, on behalf of the Secured Creditors, as loss payee for any casualty
      policies and additional insured for any liability policies, in form and
      substance acceptable to the Administrative Agent.

     

    (d) The
      Administrative Agent shall have received such duly completed and executed UCC-1
      financing statements as the Administrative Agent shall have requested to perfect
      the Collateral Agent’s security interest in the Collateral and such copies of
      searches of and financing statements filed under the UCC, together with tax
      lien
      and judgment searches with respect to the assets of the Borrowers and the
      Subsidiary Guarantors, in both cases in such jurisdictions as the Administrative
      Agent may request.

     

    (e) The
      Collateral Agent shall have received all stock (or unit) certificates evidencing
      all Equity Interests to be pledged pursuant to the Pledge Agreement, accompanied
      by undated stock (or unit) powers executed in blank.

     

    (f) The
      requisite holders of the Senior Notes shall have consented to the transactions
      contemplated hereby in a document in form and substance satisfactory to

     

    
      
        
        

      

      
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    the
      Administrative Agent and the Required Lenders and intercreditor arrangements
      (the “Intercreditor Agreement”) with respect to the Senior Notes satisfactory to
      the Administrative Agent and the Required Lenders shall have been entered into
      with the requisite holders of the Senior Notes, all in form and substance
      satisfactory to the Administrative Agent and the Required Lenders.

     

    (g) The
      Borrower shall have paid (i) to the Administrative Agent for the account of
      each
      Lender consenting to this Amendment an amendment fee equal to .02% of such
      Lender’s Commitment as of the date hereof after giving effect to this Amendment
      and (ii) to the Administrative Agent for its own account any other agreed fees
      relating hereto, which fees shall be deemed fully earned and non-refundable
      on
      the date hereof.

     

    (h) The
      Borrowers shall have provided such other corporate and other certificates,
      opinions, documents, instruments and agreements as the Administrative Agent
      may
      reasonably request. 

     

    4. Amendment
      of Guaranty.
      Each of
      the parties hereto consents to the amendment of the Guaranty as set forth on
      Exhibit A hereto.

     

    5. Reference
      to and Effect Upon the Credit Agreement; Intercreditor Agreement.

     

    (a) Except
      as
      specifically amended above, the Credit Agreement and the other Credit Documents
      shall remain in full force and effect and are hereby ratified and
      confirmed.

     

    (b) The
      execution, delivery and effectiveness of this Amendment shall not operate as
      a
      waiver of any right, power or remedy of the Administrative Agent or any Lender
      under the Credit Agreement or any other Credit Document, nor constitute a waiver
      of any provision of the Credit Agreement or any other Credit Document, except
      as
      specifically set forth herein. Upon the effectiveness of this Amendment, each
      reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of similar import shall mean and be a reference to the Credit
      Agreement as amended hereby.

     

    6. Costs
      and Expenses.
      The
      Borrowers hereby affirm their obligations under Section 13.01 of the Credit
      Agreement to reimburse the Administrative Agent for all reasonable out-of-pocket
      costs and expenses incurred by the Administrative Agent in connection with
      the
      preparation, execution and delivery of this Amendment, including but not limited
      to the reasonable fees, charges and disbursements of attorneys for the
      Administrative Agent with respect thereto.

     

    7. Governing
      Law.
      This
      Amendment shall be construed in accordance with and governed by the law of
      the
      State of New York.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    8. Headings.
      Section
      headings in this Amendment are included herein for convenience of reference
      only
      and shall not constitute a part of this Amendment for any other
      purposes.

     

    9. Counterparts.
      This
      Amendment may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed an original but all such counterparts shall constitute
      one and the same instrument.

     

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Amendment as of the date and
      year first above written.

     

     

    
      	 	 FURNITURE
              BRANDS INTERNATIONAL, INC.
	 	 BROYHILL
              FURNITURE INDUSTRIES, INC.
	 	 HDM
              FURNITURE INDUSTRIES, INC.
	 	 LANE
              FURNITURE INDUSTRIES, INC.
	 	 THOMASVILLE
              FURNITURE INDUSTRIES, INC.
	 	 	 
	 	 By	 /s/
              Denise L. Ramos
	 	 	 Denise
              L. Ramos
	 	 Title:	 Senior
              Vice President and Chief Financial 
	 	 	
               Officer
                of Furniture Brands International, Inc.

            
	 	 	 and
              Vice President of each other Borrower
	 	 	 
	 	 	 On
              behalf of each of the Borrowers

    

    
 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              JPMORGAN
                CHASE BANK, N.A.,

            
	
              Individually
                and as Administrative Agent

            
	 	 
	
              By

            	
              /s/
                James M. Sumeski

            
	
              Name:

            	 James
              M. Sumeski
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              PNC
                BANK, NATIONAL ASSOCIATION

            
	 	 
	
              By

            	
              /s/
                Holland Vogel

            
	
              Name:

            	 Holland
              Vogel
	
              Title:

            	 Credit
              Officer
	 	 
	 	 
	
              THE
                BANK OF TOKYO-MITSUBISHI UFJ, LTD.

            
	 	 
	
              By

            	
              /s/
                Masakazu Sato

            
	
              Name:

            	 Masakazu
              Sato
	
              Title:

            	 Deputy
              General Manager
	 	 
	 	 
	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION

            
	 	 
	
              By

            	
              /s/
                Denis Waltrich

            
	
              Name:

            	 Denis
              Waltrich
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              WELLS
                FARGO BANK, NA

            
	 	 
	
              By

            	
              /s/
                Anthony Clarkson

            
	
              Name:

            	 Anthony
              Clarkson
	
              Title:

            	 Relationship
              Manager
	 	 
	 	 
	
              BANK
                OF AMERICA, N.A.

            
	 	 
	
              By

            	
              /s/
                Eric A. Escagne

            
	
              Name:

            	 Eric
              A. Escagne
	
              Title:

            	 Vice
              President
	 	 

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	
              BNP
                PARIBAS

            
	 	 
	
              By

            	
              /s/
                Christopher Grumboski

            
	
              Name:

            	 Christopher
              Grumboski
	
              Title:

            	 Director
	 	 
	 By	/s/
              Michael Pearce 
	 Name:	Michael
              Pearce
	 Title:	Director 
	 	 
	
              SUNTRUST
                BANK

            
	 	 
	
              By

            	
              /s/
                Katherine L. Bass

            
	
              Name:

            	 Katherine
              L. Bass
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              MIZUHO
                CORPORATE BANK, LTD.

            
	 	 
	
              By

            	
              /s/
                Leon Mo

            
	
              Name:

            	 Leon
              Mo
	
              Title:

            	 Senior
              Vice President
	 	 
	 	 
	
              NATIONAL
                CITY BANK

            
	 	 
	
              By

            	
              /s/
                Stephen Sainz

            
	
              Name:

            	 Stephen
              Sainz
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              COMERICA
                BANK

            
	 	 
	
              By

            	
              /s/
                Mark J. Leveille

            
	
              Name:

            	 Mark
              J. Leveille
	
              Title:

            	 Assistant
              Vice President
	 	 

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              REGIONS
                BANK

            
	 	 
	
              By

            	
              /s/
                Amanda Schmitt

            
	
              Name:

            	 Amanda
              Schmitt
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              THE
                NORTHERN TRUST COMPANY

            
	 	 
	
              By

            	
              /s/
                Roger McDougal

            
	
              Name:

            	 Roger
              McDougal
	
              Title:

            	 Vice
              President
	 	 
	 	 
	
              US
                BANK NATIONAL ASSOCIATION

            
	 	 
	
              By

            	
              /s/
                Veronica Morrissette

            
	
              Name:

            	 Veronica
              Morrissette
	
              Title:

            	 Vice
              PresidentAmendment 1 to the Furniture Brands Note Purchase Agreement dated 04/16/07

    EXECUTION
      COPY

    

    FURNITURE
      BRANDS INTERNATIONAL, INC.

    BROYHILL
      FURNITURE INDUSTRIES, INC.

    HDM
      FURNITURE INDUSTRIES, INC.

    LANE
      FURNITURE INDUSTRIES, INC.

    THOMASVILLE
      FURNITURE INDUSTRIES, INC.

    

    FIRST
      AMENDMENT 

    TO
      NOTE PURCHASE AGREEMENT

    

    $150,000,000
      

    6.83%
      Senior Notes

    Due
      May
      17, 2018

    

    

    

    Dated
      as
      of April 16, 2007

    

    

    To
      the
      Holders of the Senior Notes

    Named
      in
      the Attached Schedule I

    

    Ladies
      and Gentlemen:

    

    Reference
      is made to the Note Purchase Agreement dated as of May 17, 2006 (the “Note
      Agreement”) among Furniture Brands International, Inc., a Delaware corporation
      (the “Company”), each Subsidiary Co-Obligor listed above (together with the
      Company, the “Obligors”), and each of the Purchasers named in Schedule A thereto
      pursuant to which the Company issued $150,000,000 aggregate principal amount
      of
      its 6.83% Senior Notes, due May 17, 2018 (the “Notes”). You are referred to
      herein individually as a “Holder” and collectively as the “Holders.” Capitalized
      terms used and not otherwise defined herein shall have the meanings ascribed
      to
      them in the Note Agreement, as amended hereby.

    

    The
      Obligors have requested an amendment of the Consolidated Debt and Fixed Charge
      Coverage covenants contained in Sections 10.1 and 10.2 of the Note Agreement,
      respectively. The Obligors have made a similar request of the Banks in respect
      of the Credit Agreement. The Holders are willing to amend such sections of
      the
      Note Agreement on the terms and conditions set forth herein.

    

    In
      connection with the amendments described in the preceding paragraph, the Banks,
      the Holders and the Obligors have agreed that the obligations to the Banks
      under
      the Credit Agreement and the obligations to the Holders in respect of the Notes
      shall be secured pari
      passu
      pursuant
      to certain security documents. In addition, the Holders and the Banks have
      agreed to enter into an Intercreditor Agreement. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      consideration of the premises and for good and valuable consideration, the
      receipt and sufficiency of which are acknowledged, the Obligors and the Holders
      agree as follows:

    

    1. AMENDMENTS
      TO NOTE AGREEMENT

    

    1.1. Amendment
      of Section 1.
      The
      last sentence of Section 1 is replaced with the following:

    

    “The
      Notes will be secured pursuant to the Security Documents by a Lien on the
      Collateral in favor of the Collateral Agent until such Lien is released as
      provided by this Agreement and the Intercreditor Agreement.”

    

    1.2. Amendment
      of Section 7.1.
      Section
      7.1(d) is amended to read in its entirety as follows:

    

    “(d) Notice
      of Default or Event of Default
      -
      promptly, and in any event concurrently with the delivery to the Banks or,
      if
      earlier, within five Business Days after a Responsible Officer becoming aware
      of
      the existence of any Default or Event of Default or that any Person has given
      any notice to any Obligor or taken any action with respect to a claimed default
      hereunder or that any Person has given any notice to any Obligor or taken any
      action with respect to a claimed default of the type referred to in Section
      11(f), a written notice specifying the nature and period of existence thereof
      and what action the Obligors are taking or propose to take with respect
      thereto;” 

    

    1.3. Amendment
      of Section 7.2.
      The
      reference in Section 7.2(a) to “Section 10.11” shall be replaced with a
      reference to “Section 10.14.”

    

    1.4. Amendment
      of Section 10.1.
      Section
      10.1 is amended to read in its entirety as follows:

    

    “10.1.
      Consolidated Debt.

     

    The
      Company will not permit the ratio of Consolidated Debt (as of any date) to
      Consolidated EBITDA (for the Company’s then most recently completed four fiscal
      quarters) to be greater than or equal to 3.25 to 1.00 at any time; provided,
      however, that solely with respect to the period from and including March 31,
      2007 through and including June 29, 2007, the Company shall be deemed in
      compliance with this Section 10.1 so long as such ratio is not at any time
      during such period greater than 4.25 to 1.00.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.5. Amendment
      of Section 10.2.
      Section
      10.2 is amended to read in its entirety as follows:

     

    “10.2.
      Fixed Charge Coverage.

     

    The
      Company will not permit the ratio of Consolidated EBITDAR to Consolidated Fixed
      Charges (in each case for the Company’s then most recently completed four fiscal
      quarters) to be less than or equal to:

     

    (a) 1.90
      to
      1.00 as of the end of the fiscal quarter ending on March 31, 2007;

     

    (b) 2.75
      to
      1.00 as of the end of any fiscal quarter ending prior to March 31, 2009 (other
      than the fiscal quarter ending March 31, 2007); or

     

    (c) 3.00
      to
      1.00 as of the end of any fiscal quarter ending on or after March 31,
      2009.”

     

    1.6. Amendment
      of Section 10.5.
      Sections 10.5(b), (f), (g) and (l) and the final paragraph of Section 10.5
      are
      amended to read in their entirety as follows:

     

    “(b) any
      attachment or judgment Lien, unless the judgment it secures has not, within
      60
      days after the entry thereof, been discharged or execution thereof stayed
      pending appeal, or has not been discharged within 60 days after the expiration
      of any such stay; provided that the aggregate of such attachment or judgment
      Liens not paid or fully covered by a reputable and solvent insurance company
      shall not exceed $40,000,000;”

     

    “(f) Liens
      (i)
      securing Indebtedness of a Subsidiary to the Company or to another Wholly Owned
      Subsidiary; or (ii) in favor of the Collateral Agent under the Security
      Documents for the ratable benefit of the holders of the Notes and the
      Banks;”

     

    “(g) Liens
      (i)
      existing on property at the time of its acquisition by the Company or a
      Subsidiary and not created in contemplation thereof, whether or not the
      Indebtedness secured by such Lien is assumed by the Company or a Subsidiary;
      or
      (ii) on property created contemporaneously with its acquisition or within 180
      days of the acquisition or completion of construction or development thereof
      to
      secure or provide for all or a portion of the purchase price or cost of the
      acquisition, construction or development of such property after the date of
      Closing; or (iii) existing on property of a Person at the time such Person
      is
      merged or consolidated with, or becomes a Subsidiary of, or substantially all
      of
      its assets are acquired by, the Company or a Subsidiary and not created in
      contemplation thereof; provided that in the case of clauses (i), (ii) and (iii)
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    such
      Liens do not extend to additional property of the Company or any Subsidiary
      (other than property that is an improvement to or is acquired for specific
      use
      in connection with the subject property) and that the aggregate principal amount
      of Indebtedness secured by each such Lien does not exceed the fair market value
      (determined in good faith by one or more officers of the Company to whom
      authority to enter into such transaction has been delegated by the board of
      directors of the Company) of the property subject thereto; and provided further
      that the aggregate outstanding principal amount of all Indebtedness secured
      by
      Liens permitted by clause (ii), together with the aggregate amount of
      Indebtedness of the Company and its Subsidiaries evidenced by Capital Lease
      Obligations, shall not at any time exceed $20,000,000;”

     

    “(l) Liens
      securing Indebtedness not otherwise permitted by paragraphs (a) through (k)
      of
      this Section 10.5 to the extent attaching to properties and assets with an
      aggregate fair value not in excess of, and securing liabilities not in excess
      of, $30,000,000 in the aggregate at any time outstanding.”

     

    “Notwithstanding
      the foregoing, the Company will not, and will not permit any other Subsidiary
      to, permit to exist, create, assume or incur, directly or indirectly, any Liens
      securing obligations under the Credit Agreement, unless the Company
      contemporaneously provides for the Notes to be equally and ratably secured
      with
      such obligations under the Credit Agreement (pursuant to documentation,
      including an intercreditor agreement, reasonably satisfactory to the Required
      Holders), and in such case the Notes shall have the benefit, to the fullest
      extent that, and with such priority as, the holders of the Notes may be entitled
      under applicable law, of an equitable Lien on such property.”

     

    1.7. Amendment
      of Section 10.6.
      Section
      10.6 is amended to include the following new final sentence:

     

    “Notwithstanding
      the foregoing, during the period from and including March 31, 2007 through
      and
      including June 30, 2007, without the consent of the Required Holders, the
      Company will not, and will not permit any Subsidiary to, engage in any
      transaction otherwise permitted by this Section 10.6, except (i) any Obligor
      may
      consolidate or merge with any other Obligor or convey, transfer, sell or lease
      all or substantially all of its assets in a single transaction or series of
      transactions to any other Obligor and (ii) any other Subsidiary may merge into
      an Obligor (provided that the Obligor is the surviving corporation) or another
      Wholly Owned Subsidiary or sell, transfer or lease all or any part of its assets
      to an Obligor or another Wholly Owned Subsidiary; provided in each instance
      set
      forth in clauses (i) and (ii) that, immediately before and after giving effect
      to such transaction, no Default or Event of Default would exist.”

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    1.8. Amendment
      of Section 10.7.
      Section
      10.7 is amended to include the following new final sentence:

     

    “Notwithstanding
      the foregoing, during the period from and including March 31, 2007 through
      and
      including June 30, 2007, without the consent of the Required Holders, the
      Company will not, and will not permit any Subsidiary to, sell, lease, convey,
      dispose of or otherwise transfer (collectively, for purposes of this sentence,
      “transfers”) any assets other than: 

     

    (i)
       those
      made by a Subsidiary to an Obligor or another Wholly Owned Subsidiary or by
      an
      Obligor to another Obligor; 

     

    (ii)
       inventory
      held for sale or lease; 

     

    (iii)
       equipment,
      fixtures, supplies or materials no longer required in the operation of the
      business of the Obligors or any other Subsidiary or that are obsolete;

     

    (iv)
       accounts
      receivable sold or discounted without recourse in connection with the compromise
      or collection thereof; and 

     

    (v)
       other
      transfers of assets so long as: 

     

    (a) in
      the
      good faith opinion of the Company such transfer is in exchange for consideration
      having a fair market value at least equal to that of the property exchanged
      and
      is in the best interest of the Company or such Subsidiary;

     

    (b) immediately
      before and after giving effect to such transfer, no Default or Event of Default
      would exist; and 

     

    (c) together
      with all other property of the Company and its Subsidiaries previously
      transferred pursuant to this clause (v) during the twelve-month period ending
      with the month in which any such transaction occurs, such assets do not
      constitute a Substantial Portion of the property of the Company and its
      Subsidiaries. 

     

    For
      purposes of the foregoing clause (v), “Substantial Portion” shall mean property
      that (a) represents more than 10% of Consolidated Total Assets as of the
      beginning of the twelve-month period ending with the last day of the month
      preceding the month in which such determination is made or (b) is responsible
      for more than 10% of the consolidated net sales of the Company and its
      Subsidiaries or of the Consolidated Net Income for such twelve months.”

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    1.9. Amendment
      of Section 10.9.
      Section
      10.9 is amended to read in its entirety as follows:

     

    “10.9.
      Subsidiary Guaranty and Collateral. 

     

    The
      Company will not permit any Subsidiary that is not an Obligor to become a
      borrower or a guarantor of Indebtedness owed to banks under the Credit Agreement
      unless such Subsidiary is, or concurrently therewith becomes, a party to the
      Subsidiary Guaranty. At such time as such Subsidiary becomes a party to the
      Subsidiary Guaranty, such Subsidiary shall (i) execute and deliver a joinder
      to
      such Security Documents as the Required Holders may
      request, and (ii) execute such additional Security Documents as the
      Required Holders may
      request, in each case as deemed appropriate by the Required Holders to cause
      substantially all personal property of such Subsidiary other than equity
      interests in foreign Subsidiaries to constitute Collateral and in form and
      substance satisfactory to the Required Holders and, in the case of both (i)
      and
      (ii) above, accompanied by such resolutions, opinions, corporate certificates
      and other documents as the Required Holders may
      reasonably request.” 

     

    1.10. Addition
      of Section 10.12.
      New
      Section 10.12 is added to the Note Agreement as follows:

     

    “10.12.
      Certain Prepayments.

     

    The
      Company will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, (i) voluntarily prepay, defease or in substance defease, purchase,
      redeem, retire or otherwise acquire, any Indebtedness (other than the Notes
      and
      obligations under the Credit Agreement) having an aggregate principal amount
      in
      excess of $1,000,000 or (ii) during the period from and including
      April 1, 2007 to and including June 30, 2007, repay (other than upon
      acceleration, in which case the Notes shall have become immediately due and
      payable in accordance with Section 12.1(a)) any principal amounts of
      Indebtedness outstanding under the Credit Agreement, unless, after giving effect
      to such repayment, the aggregate outstanding principal amount of loans and
      unreimbursed letter of credit amounts under the Credit Agreement is $150,000,000
      or greater.” 

     

    1.11. Addition
      of Section 10.13.
      New
      Section 10.13 is added to the Note Agreement as follows:

     

    “10.13.
      Further Assurances, etc.

     

    (a) The
      Obligors will, and will cause each of their respective Subsidiaries to, at
      the
      expense of the Obligors, make, execute, endorse, acknowledge, file and/or
      deliver to the Collateral Agent from time to time such schedules, confirmatory
      assignments, conveyances, financing statements, transfer endorsements, powers
      of
      attorney, certificates, reports, and other assurances or 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    instruments
      and take such further steps relating to the Collateral covered by any of the
      Security Documents as the Required Holders may reasonably require to assure
      the
      creation and continuation of perfected security interests in the Collateral
      and
      as are generally consistent with the terms of this Agreement and the Security
      Documents. Furthermore, the Obligors will, and will cause their respective
      Subsidiaries to, deliver to the Collateral Agent such opinions of counsel and
      other related documents as may be reasonably requested by the Required Holders
      to assure compliance with this Section 10.13. Without limiting the foregoing,
      the Obligors shall use their best efforts to cause to be delivered to the
      Collateral Agent for the benefit of the Holders (i) a landlord waiver and/or
      mortgagee estoppel letter, as applicable, with respect to each material parcel
      of real property leased by any of the Obligors or any of the Subsidiary
      Guarantors as and to the extent the Required Holders shall request, each in
      form
      and substance acceptable to the Required Holders and
      (ii)
      such bailee letters with respect to Collateral held by third parties as and
      to
      the extent the Required Holders shall request, each in form and substance
      acceptable to the Required Holders.

     

    (b) The
      Obligors agree that each action required by clause (a) of this Section 10.13
      shall be completed as soon as reasonably practical, but in no event later than
      twenty (20) Business Days (or such greater number of days as the Required
      Holders may agree) after such action is requested to be taken by the Required
      Holders.”

     

    1.12. Addition
      of Section 10.14.
      New
      Section 10.14 is added to the Note Agreement as follows:

     

    “10.14.
      Limitation on Interest Rate Protection Arrangements.

     

    During
      the period from and including March 31, 2007 through and including June 30,
      2007, without the consent of the Required Holders, the Company will not, and
      will not permit any Subsidiary to, enter into any interest rate swap agreement,
      interest rate cap agreement, interest collar agreement, interest rate hedging
      agreement or other similar agreement or arrangement (“Interest Hedges”), other
      than Interest Hedges that renew or replace existing Interest Hedges, provided
      that such renewal or replacement Interest Hedges have a notional amount not
      greater than $150,000,000 in the aggregate and a term not greater than four
      years.” 

     

    1.13. Amendment
      of Section 11.
      

     

    1.13.1. Sections
      11(c) and (e) are amended to read in their entirety as follows:

     

    “(c) any
      Obligor defaults in the performance of or compliance with any term contained
      in
      Section 7.1(b), Section 7.1(d) or Sections 10.1 through 10.14; or”

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “(e) any
      representation or warranty made in writing by or on behalf of the Obligors
      or
      any Subsidiary Guarantor or by any officer of any Obligor or any Subsidiary
      Guarantor in this Agreement, the Subsidiary Guaranty, any Security Document
      or
      in any writing furnished in connection with the transactions contemplated hereby
      or thereby proves to have been false or incorrect in any material respect on
      the
      date as of which made; or”

     

    1.13.2. The
      period at the end of Section 11(k) is replaced with a semicolon followed by
      the
      word “or” and new Section 11(l) is added as follows:

     

    “(l) any
      Security Document ceases to be in full force and effect, or ceases to give
      the
      Collateral Agent for the benefit of the Senior Lenders (as defined in the
      Intercreditor Agreement) a valid and perfected first priority security interest
      or Lien in any of the Collateral purported to be covered thereby, subject only
      to Liens described in clauses (a), (c), (d), (e), (g), (h), (i) and (k) of
      Section 10.5, or a default or event of default occurs under any of the Security
      Documents and such default or event of default continues beyond any period
      of
      grace with respect thereto.”

     

    1.14. Amendment
      of Section 12.1.
      Section
      12.1(a) is amended to read in its entirety as follows:

     

    “(a) If
      an
      Event of Default with respect to any Obligor described in Section 11(g) or
      (h)
      (other than an Event of Default described in clause (i) of Section 11(g) or
      described in clause (vi) of Section 11(g) by virtue of the fact that such clause
      encompasses clause (i) of Section 11(g)) has occurred and is continuing or,
      during the period from and including March 31, 2007 through and including June
      30, 2007, Indebtedness under the Credit Agreement has become or been declared
      due and payable before its stated maturity or before its regularly scheduled
      dates of payment, all the Notes then outstanding shall automatically become
      immediately due and payable.”

     

    1.15. Amendment
      of Section 15.
      Section
      15.1 is amended to read in its entirety as follows:

     

    “15.1. Transaction
      Expenses.

    

    Whether
      or not the transactions contemplated hereby or by the Subsidiary Guaranty are
      consummated, the Obligors will pay all reasonable costs and expenses (including
      reasonable attorneys’ fees of one special counsel for all holders and, if
      reasonably required by the Required Holders, local or other counsel) incurred
      by
      you and each Other Purchaser or holder of a Note in connection with such
      transactions and in connection with any amendments, waivers or consents under
      or
      in respect of this Agreement, the Notes, the 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Subsidiary
      Guaranty or any Security Document (whether or not such amendment, waiver or
      consent becomes effective), including: (a) the costs and expenses incurred
      in
      enforcing or defending (or determining whether or how to enforce or defend)
      any
      rights under this Agreement, the Notes, the Subsidiary Guaranty or any Security
      Document, or in responding to any subpoena or other legal process or informal
      investigative demand issued in connection with this Agreement, the Notes, the
      Subsidiary Guaranty or any Security Document, or by reason of being a holder
      of
      any Note, (b) the reasonable costs and expenses incurred in connection with
      the
      insolvency or bankruptcy of any Obligor or any other Subsidiary or in connection
      with any work-out or restructuring of the transactions contemplated hereby
      or by
      the Notes, the Subsidiary Guaranty or any Security Document, (c) the reasonable
      costs and expenses incurred in connection with transactions permitted by Section
      10.6, and (d) the filing fee charged by the SVO in connection with the initial
      filing of this Agreement and all related documents and financial information
      with the SVO, provide that the fees under this clause (d) shall not exceed
      $5,000. The Obligors will pay, and will save you and each other holder of a
      Note
      harmless from, all claims in respect of any reasonable fees, costs or expenses
      if any, of brokers and finders (other than those retained by you or another
      holder in connection with its purchase of the Notes).”

    

    1.16. Amendment
      of Section 22.
      Section
      22 is amended to read in its entirety as follows:

     

    “22. RELEASE
      OF SUBSIDIARY GUARANTOR.

    

    You
      and
      each subsequent holder of a Note agree to release any Subsidiary Guarantor
      from
      the Subsidiary Guaranty if such Subsidiary Guarantor ceases to be such as a
      result of an Asset Disposition or other transaction permitted by Section 10.6
      or
      10.7; provided, however, that you and each subsequent holder will not be
      required to release a Subsidiary Guarantor from the Subsidiary Guaranty if
      (A) a
      Default or Event of Default has occurred and is continuing, (B) such
      Subsidiary Guarantor is to become a borrower or a guarantor under the Credit
      Agreement, or (C) such release is part of a plan of financing that contemplates
      such Subsidiary Guarantor guaranteeing any other Indebtedness of the Company.
      Such Subsidiary Guarantor shall automatically be released from the Subsidiary
      Guaranty upon the delivery to the holders of the Notes of a certificate from
      a
      Senior Financial Officer of the Company stating that such transaction has
      occurred and none of the circumstances described in clauses (A), (B) and (C)
      above are true. If any fee or other form of consideration is given to any holder
      of Indebtedness of the Company for such release, holders of the Notes shall
      receive equivalent consideration.”

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    1.17. Amendment
      of Schedule B.
      

     

    1.17.1. The
      following defined terms are added to Schedule B:

     

    “Banks”
      means
      the lenders from time to time party to the Credit Agreement and their respective
      successors and assigns.

     

    “Collateral”
shall
      be as defined in the Security Documents. 

     

    “Collateral
      Agent”
means
      JPMorgan Chase Bank, N.A. in its capacity as collateral agent under the Security
      Documents and its successors and assigns. 

     

    “Continuing
      Directors”
      means
      the directors of the Company on April 21, 2006 (the effective date of the
      original Credit Agreement) and each other director if such director’s nomination
      for election to the board of directors of the Company is recommended by a
      majority of the then Continuing Directors.

     

    “First
      Amendment”
      means
      the First Amendment to Note Purchase Agreement dated as of April 16,
      2007.

    

    “Intercreditor
      Agreement”
      means
      the Intercreditor and Collateral Agency Agreement dated as of April 16, 2007
      among the holders of the Notes, the Banks and the Collateral Agent, as the
      same
      may from time to time be amended, modified or restated, or replaced in
      connection with a refinancing of the Credit Agreement.

     

    “Security
      Documents”
      means
      the security agreements, pledge agreements and each other document or instrument
      pursuant to which security is granted to the Collateral Agent for the benefit
      of
      the holders of the Notes and the Banks, as the same may be amended, modified
      or
      restated from time to time.

    

    1.17.2. The
      following terms are amended to read in their entirety as follows:

     

    “Change
      of Control Event”
      means
      the occurrence of any of the following: (i) the Company shall at any time cease
      to own 100% of the capital stock of any of Broyhill Furniture Industries, Inc.,
      Lane Furniture Industries, Inc., HDM Furniture Industries, Inc. or Thomasville
      Furniture Industries, Inc., (ii) HDM Furniture Industries, Inc. shall cease
      to own 100% of the capital stock of Maitland-Smith Furniture Industries, Inc.,
      (iii) the first date upon which a majority of the Persons on the board of
      directors of the Company are not Continuing Directors or (iv) any Person, entity
      or “group” (as such term is defined in Section 13(d)(3) of the Securities
      Exchange Act of 1934, as amended) is or becomes the beneficial owner of an
      amount of outstanding Voting 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Stock
      of
      the Company in excess of 25% of the total amount of fully diluted shares of
      outstanding Voting Stock of the Company. The date on which such event occurs
      is
      referred to as the “Effective
      Date of the Change of Control.”

    

    “Material
      Adverse Effect”
      means a
      material adverse effect on (a) the business, operations, affairs, financial
      condition, assets or properties of the Company and its Subsidiaries taken as
      a
      whole, (b) the ability of any Obligor to perform its obligations under this
      Agreement, the Notes or any Security Document, (c) the ability of any Subsidiary
      Guarantor to perform its obligations under the Subsidiary Guaranty or any
      Security Document, or (d) the validity or enforceability of this Agreement,
      the
      Notes, the Subsidiary Guaranty, any Security Document or the Liens created
      by
      the Security Documents.

    

    “Required
      Holders”
      means,
      at any time, the holders of more than 50% in principal amount of the Notes
      at
      the time outstanding (exclusive of Notes then owned by an Obligor or any of
      its
      Affiliates); provided, however, that “Required Holders” shall mean the holders
      of more than 75% in principal amount of the Notes at the time outstanding
      (exclusive of Notes then owned by an Obligor or any of its Affiliates) for
      purposes of the following actions: (a) the release of any Liens on Collateral
      for which the consent of the holders of the Notes is required, (b) the release
      of any Subsidiary Guarantor from the Subsidiary Guaranty for which the consent
      of the holders of the Notes is required, or (c) any amendment, modification
      or
      waiver in respect of the Intercreditor Agreement, or the approval of terms
      different from the terms of the Intercreditor Agreement in effect on the date
      of
      the First Amendment contained in a replacement intercreditor agreement entered
      into in connection with a refinancing of the Credit Agreement.

    

    2. COUPON
      ADJUSTMENT

    Anything
      in Section 1, Schedule A or Exhibit 1(a) of the Note Agreement or the
      outstanding Notes to the contrary notwithstanding, in consideration of the
      Holders entering into this First Amendment, beginning on March 31, 2007 through
      June 30, 2007 (the “Relevant Period”), each of (i) the annual interest rate on
      the Notes, as stated in clause (a) of the first paragraph of Exhibit 1(a) to
      the
      Note Agreement and the outstanding Notes, and (ii) the annual interest rate
      applicable to overdue payments as specified in clause (b) of the first paragraph
      of Exhibit 1(a) to the Note Agreement and the outstanding Notes, shall be
      increased by 0.50%. Notwithstanding the foregoing, for purposes of calculating
      the Make-Whole Amount during the Relevant Period, the interest rate on the
      Notes
      shall be deemed to be 6.83%, the interest rate in effect immediately prior
      to
      this First Amendment.

     

    It
      shall
      not be necessary for any Holder to surrender its Notes in connection with this
      First Amendment. For purposes of the Note Agreement, including Section 11(b),
      the amounts due under this Section 2 of this First Amendment shall be deemed
      to
      be interest on the Notes. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    3. WAIVER

     

    The
      Holders hereby waive any Default or Event of Default under Section 10.9 of
      the
      Note Agreement resulting from the failure of the Company to cause each of
      Broyhill Retail, Inc., Broyhill Home Furnishings, Inc., Lane Home Furnishings
      Retail, Inc. and Hickory Business Furniture, Inc. to be a party to the
      Subsidiary Guaranty. This waiver is limited to its terms and shall not
      constitute a waiver of any other term, condition, representation or covenant
      under the Note Agreement or any of the other agreements, documents or
      instruments executed and delivered in connection therewith.

     

    4. REAFFIRMATION;
      REPRESENTATIONS AND WARRANTIES 

     

    4.1. Reaffirmation
      of Note Agreement.
      The
      Obligors reaffirm their agreement to comply with each of the covenants,
      agreements and other provisions of the Note Agreement and the Notes, including
      the additions and amendments of such provisions effected by this First
      Amendment.

     

    4.2. Note
      Agreement.
      The
      Obligors, jointly and severally, represent and warrant that the representations
      and warranties contained in the Note Agreement are true and correct as of the
      date hereof, except (a) to the extent that any of such representations and
      warranties specifically relate to an earlier date, (b) for such changes, facts,
      transactions and occurrences that have arisen since May 17, 2006 in the ordinary
      course of business, (c) for such other matters as have been previously disclosed
      in writing by the Obligors (including in financial statements and notes thereto)
      to the Holders and (d) for other changes that, individually or in the aggregate,
      could not reasonably be expected to have a Material Adverse Effect.  

     

    4.3. No
      Default or Event of Default.
      After
      giving effect to the transactions contemplated hereby, there will exist no
      Default or Event of Default.

     

    4.4. Authorization.
      

     

    4.4.1. Obligors.
      The
      execution, delivery and performance by each of the Obligors of this First
      Amendment and each Security Document to which it is a party have been duly
      authorized by all necessary corporate action and, except as provided herein,
      do
      not require any registration with, consent or approval of, notice to or action
      by, any Person (including any Governmental Authority) in order to be effective
      and enforceable. The Note Agreement, this First Amendment and such Security
      Documents each constitute the legal, valid and binding obligations of the
      Obligors, enforceable in accordance with their respective terms, except as
      such
      enforceability may be limited by (i) applicable bankruptcy, insolvency,
      fraudulent conveyance, reorganization, moratorium or other similar laws
      affecting the enforcement of creditors’ rights generally and (ii) general
      principles of equity (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    4.4.2. Subsidiary
      Guarantors.
      The
      execution, delivery and performance by each Subsidiary Guarantor of the
      Reaffirmation of Subsidiary Guaranty and each Security Document to which it
      is a
      party have been duly authorized by all necessary corporate action and, except
      as
      provided herein, do not require any registration with, consent or approval
      of,
      notice to or action by, any Person (including any Governmental Authority) in
      order to be effective and enforceable. Such Security Documents and the
      Subsidiary Guaranty each constitute the legal, valid and binding obligations
      of
      such Subsidiary Guarantor, enforceable in accordance with their respective
      terms, except as such enforceability may be limited by (i) applicable
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
      other similar laws affecting the enforcement of creditors’ rights generally and
      (ii) general principles of equity (regardless of whether such
      enforceability is considered in a proceeding in equity or at law).

     

    4.5. Compliance
      with Laws, Other Instruments, etc.

     

    4.5.1. Obligors.
      The
      execution, delivery and performance by each Obligor of this First Amendment
      and
      each Security Document to which it is a party will not, except as contemplated
      herein, (i) contravene, result in any breach of, or constitute a default
      under, or result in the creation of any Lien in respect of any property of
      any
      Obligor or any other Subsidiary under, any indenture, mortgage, deed of trust,
      loan, purchase or credit agreement, lease, corporate charter or by-laws, or
      any
      other agreement or instrument to which any Obligor or any other Subsidiary
      is
      bound or by which any Obligor or any other Subsidiary or any of their respective
      properties may be bound or affected, (ii) conflict with or result in a breach
      of
      any of the terms, conditions or provisions of any order, judgment, decree,
      or
      ruling of any court, arbitrator or Governmental Authority applicable to any
      Obligor or any other Subsidiary or (iii) violate any provision of any statute
      or
      other rule or regulation of any Governmental Authority applicable to any Obligor
      or any other Subsidiary. 

     

    4.5.2. Subsidiary
      Guarantors.
      The
      execution, delivery and performance by each Subsidiary Guarantor of the
      Reaffirmation of Subsidiary Guaranty and each Security Document to which it
      is a
      party will not, except as contemplated herein, (i) contravene, result in
      any breach of, or constitute a default under, or result in the creation of
      any
      Lien in respect of any property of any Subsidiary Guarantor under, any
      indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
      corporate charter or by-laws, or any other agreement or instrument to which
      any
      Subsidiary Guarantor is bound or by which any Subsidiary Guarantor or any of
      their respective properties may be bound or affected, (ii) conflict with or
      result in a breach of any of the terms, conditions or provisions of any order,
      judgment, decree, or ruling of any court, arbitrator or Governmental Authority
      applicable to any Subsidiary Guarantor or (iii) violate any provision of any
      statute or other rule or regulation of any Governmental Authority applicable
      to
      any Subsidiary Guarantor. 

     

    4.6. Security
      Documents.
      The
      security interests created in favor of the Collateral Agent, for the benefit
      of
      the holders of the Notes and the Banks, under the security agreements and pledge
      agreements constituting Security Documents constitute 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    perfected
      security interests in the Collateral described in such Security Document under
      its governing law, subject to no Lien of any other Person, except as permitted
      by such Security Document and the Note Purchase Agreement. No filings or
      recordings (other than filings or recordings that have been made) are required
      in order to perfect (or maintain the perfection or priority of) the security
      interests created in the Collateral pledged under any Security Document other
      than with respect to Collateral of a type as to which perfection may not be
      accomplished by filing under the Uniform Commercial Code.

     

    4.7. Amounts
      Outstanding under Credit Agreement.
      As of
      March 31, 2007, the Company’s obligations under the Credit Agreement were: (i)
      revolving loans with an outstanding aggregate principal amount of $150,000,000
      and (ii) stand-by letters of credit with a face amount of
      $9,426,000.

     

    5. EFFECTIVE
      DATE

     

    This
      First Amendment shall become effective as of March 31, 2007 upon the
      satisfaction of the following conditions: 

    

    5.1. Consent
      of Holders to First Amendment.
      Execution by the Required Holders and receipt by the Holders of a counterpart
      of
      this First Amendment duly executed by the Obligors.

     

    5.2. Reaffirmation
      of Subsidiary Guaranty.
      Each
      Subsidiary Guarantor shall have executed and delivered to the Holders a
      Reaffirmation of Subsidiary Guaranty in the form of Exhibit A
      hereto.

     

    5.3. Joinder
      to Subsidiary Guaranty.
      The
      Holders shall have received from each of Broyhill Retail, Inc., Broyhill Home
      Furnishings, Inc., Lane Home Furnishings Retail, Inc. and Hickory Business
      Furniture, Inc. a Joinder to Subsidiary Guaranty in form and substance
      satisfactory to them.

     

    5.4. Opinion
      of Counsel for the Obligors.
      The
      Holders shall have received an opinion of counsel for the Obligors, in form
      and
      substance satisfactory to the Holders and their special counsel, to the effect
      set forth in Sections 4.4 and 4.5 of this First Amendment and to the further
      effect that the Holders have a valid and perfected security interest in the
      Collateral subject to the Security Documents.

     

    5.5. Security
      Interest.
      The
      Holders shall have received executed Security Documents in form and substance
      satisfactory to the Holders. The Collateral Agent shall have filed UCC-1
      financing statements in the jurisdiction of incorporation of each of the
      Obligors and Subsidiary Guarantors (or arrangement for such filing satisfactory
      to counsel for the Holders shall have been made) and shall have taken possession
      of stock certificates evidencing the pledged shares, in each case as necessary
      to perfect the Liens of the Security Documents, except as contemplated to take
      place after the effective date of this First Amendment.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    5.6. Intercreditor
      Agreement.
      The
      Intercreditor Agreement shall have been executed and delivered by the Holders
      and the Banks and acknowledged by the Obligors and each Subsidiary Guarantor.
      

     

    5.7. Amendment
      to Credit Agreement.
      The
      Holders shall have received a copy of an executed Amendment No. 1 to Credit
      Agreement dated as of April 16, 2007, in form and substance satisfactory to
      the
      Holders.

     

    5.8. Amendment
      Fee.
      Each
      Holder shall have received an amendment fee equal to 0.05% of the outstanding
      principal amount of the Notes held by such Holder.

     

    5.9. Fees
      of Special Counsel.
      The
      Obligors shall have paid all fees and expenses of special counsel to the
      Holders.

     

    6. MISCELLANEOUS

     

    6.1. Ratification.
      Except
      as amended hereby, the Note Agreement, including the representations and
      warranties contained therein, shall remain in full force and effect and is
      ratified, approved and confirmed in all respects as of the date
      hereof.

     

    6.2. Reference
      to and Effect on the Note Agreement.
      Upon
      the final effectiveness of this First Amendment, each reference in the Note
      Agreement and in other documents describing or referencing the Note Agreement
      to
      the “Agreement,” “Note Agreement,” “hereunder,” “hereof,” “herein,” or words of
      like import referring to the Note Agreement, shall mean and be a reference
      to
      the Note Agreement, as amended hereby.

     

    6.3. Binding
      Effect.
      This
      First Amendment shall be binding upon and inure to the benefit of the respective
      successors and assigns of the parties hereto.

     

    6.4. Governing
      Law.
      This
      First Amendment shall be governed by and construed in accordance with New York
      law.

     

    6.5. Counterparts.
      This
      First Amendment may be executed in any number of counterparts, each executed
      counterpart constituting an original, but altogether only one
      instrument.

     

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF,
      the
      Obligors and the Holders have caused this First Amendment to be executed and
      delivered by their respective officer or officers thereunto duly
      authorized.

    

    

    
      	 	
              FURNITURE
                BRANDS INTERNATIONAL, INC.

            
	 	 	 
	 	
              By:
                

            	
              /s/
                Denise L. Ramos

            
	 	
              Name:
                

            	
              Denise
                L. Ramos

            
	 	
              Title:
                

            	
              Senior
                Vice President and Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	
              SUBSIDIARY
                CO-OBLIGORS

            
	 	 	 
	 	
              BROYHILL
                FURNITURE INDUSTRIES, INC. 

            
	 	
              HDM
                FURNITURE INDUSTRIES, INC. 

            
	 	
              LANE
                FURNITURE INDUSTRIES, INC.

            
	 	
              THOMASVILLE
                FURNITURE INDUSTRIES, INC. 

            
	 	 	 
	 	
              By:
                

            	 /s/
              Denise L. Ramos
	 	
              Name:
                

            	 Denise
              L. Ramos
	 	
              Title:
                

            	 Vice
              President

    

    

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

    

    

      

      
        	
                The
                  foregoing is agreed 

              	 
	
                to
                  as of the date thereof.

              	 
	 	 	 
	 	 	 
	
                THE
                  PRUDENTIAL INSURANCE

              	 
	 	
                COMPANY
                  OF AMERICA

              	 
	 	 	 
	
                By:

              	
                /s/
                  Brian E. Lemons

              	 
	 	
                Vice
                  President

              	 
	 	 	 
	 	 	 
	
                GIBRALTAR
                  LIFE INSURANCE CO., LTD.

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Investment Management (Japan),

              	 
	 	
                Inc.,
                  as Investment Manager

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Investment Management, Inc., as

              	 
	 	
                Sub-Adviser

              	 
	 	 	 
	
                By:

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 
	 	 	 
	 	 	 
	
                GATEWAY
                  RECOVERY TRUST

              	 
	 	 	 
	
                By:
                  

              	
                Prudential
                  Investment Management, Inc., as

              	 
	 	
                Asset
                  Manager

              	 
	 	 	 
	
                By:
                  

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	 	 
	 	 	 
	
                ZURICH
                  AMERICAN INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:
                  

              	
                Prudential
                  Private Placement Investors,

              	 
	 	
                L.P.
                  (as Investment Advisor)

              	 
	 	 	 
	
                By:
                  

              	
                Prudential
                  Private Placement Investors, Inc. (as

              	 
	 	
                its
                  General Partner)

              	 
	 	 	 
	
                By:
                  

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 

      

      

      
        
          
          

        

        
          S-2

          
            

          

        

        
          
          

        

      

      

      
        	
                AMERICAN
                  MEMORIAL LIFE

              	 
	 	
                INSURANCE
                  COMPANY

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, L.P. (as

              	 
	 	
                Investment
                  Advisor)

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, Inc.

              	 
	 	
                (as
                  its General Partner)

              	 
	 	 	 
	
                By:

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 
	 	 	 
	 	 	 
	
                UNION
                  SECURITY INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors,

              	 
	 	
                L.P.
                  (as Investment Advisor)

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, Inc.

              	 
	 	
                (as
                  its General Partner)

              	 
	
                By:

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 
	 	 	 
	 	 	 
	
                AMERICAN
                  SECURITY INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, L.P.

              	 
	 	
                (as
                  Investment Advisor)

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, Inc.

              	 
	 	
                (as
                  its General Partner)

              	 
	 	 	 
	
                By:

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 

      

      

      

      
        
          
          

        

        
          S-3

          
            

          

        

        
          
          

        

      

      

       

      
        	
                UNITED
                  SERVICE PROTECTION CORP.

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, L.P.

              	 
	 	
                (as
                  Investment Advisor)

              	 
	 	 	 
	
                By:

              	
                Prudential
                  Private Placement Investors, Inc.

              	 
	 	
                (as
                  its General Partner)

              	 
	 	 	 
	
                By:

              	
                
                  /s/
                    Brian E. Lemons

                

              	 
	 	
                Vice
                  President

              	 

      

      

      

      

      
        
          
          

        

        
          S-4

          
            

          

        

        
          
          

        

      

      

      
        	
                ING
                  USA ANNUITY AND LIFE

              	 
	 	
                INSURANCE
                  COMPANY

              	 
	 	 	 
	
                ING
                  LIFE INSURANCE AND ANNUITY

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                RELIASTAR
                  LIFE INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                SECURITY
                  LIFE OF DENVER

              	 
	 	
                INSURANCE
                  COMPANY

              	 
	 	 	 
	
                By:

              	
                ING
                  Investment Management LLC, as

              	 
	 	 Agent	 
	 	 	 
	
                By:

              	
                /s/
                  James V. Wittich

              	 
	
                Name:

              	
                James
                  V. Wittich

              	 
	
                Title:

              	
                Senior
                  Vice President

              	 

      

      

      

      
        
          
          

        

        
          S-5

          
            

          

        

        
          
          

        

      

      

      
        	
                TRANSAMERICA
                  LIFE INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:

              	
                /s/
                  Christopher D. Pahlke

              	 
	
                Name:

              	
                Christopher
                  D. Pahlke

              	 
	
                Title:

              	
                Vice
                  President

              	 

      

      

      

      
        
          
          

        

        
          S-6

          
            

          

        

        
          
          

        

      

      

      
        	
                THE
                  GUARDIAN LIFE INSURANCE

              	 
	 	
                COMPANY
                  OF AMERICA

              	 
	 	 	 
	
                By:

              	
                /s/
                  Barry Scheinholtz

              	 
	
                Name:

              	
                Barry
                  Scheinholtz

              	 
	
                Title:

              	
                Private
                  Placements Manager

              	 

      

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      

      
        	
                BANKERS
                  LIFE AND CASUALTY

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                CONSECO
                  LIFE INSURANCE COMPANY

              	 
	 	 
	
                CONSECO
                  SENIOR HEALTH INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                CONSECO
                  HEALTH INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                WASHINGTON
                  NATIONAL INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:

              	
                /s/
                  Edwin Ferrell

              	 
	
                Name:

              	
                Edwin
                  Ferrell

              	 
	
                Title:

              	
                Senior
                  Vice President

              	 

      

      

      

      
        
          
          

        

        
          S-8

          
            

          

        

        
          
          

        

      

      

      

      
        	
                AMERUS
                  LIFE INSURANCE COMPANY

              	 
	 	 	 
	
                AMERICAN
                  INVESTORS LIFE INSURANCE

              	 
	 	
                COMPANY

              	 
	 	 	 
	
                By:

              	
                Aviva
                  Capital Management, Inc., its

              	 
	 	
                authorized
                  attorney-in-fact

              	 
	 	 	 
	
                By:

              	
                /s/
                  Roger D. Fors

              	 
	
                Name:

              	
                
                  Roger
                    D. Fors

                

              	 
	
                Title:

              	
                V.P.
                  - Private Placements

              	 

      

      

      

      

      
        
          
          

        

        
          S-9

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        I

      

      

      

      
        	
                    Holder 

                 

              	 	 	
                Principal
                  Amount of Senior Notes

                
                

              	 
	
                The
                  Prudential Insurance Company of America

                 

              	 	
                $

                
                

              	
                9,500,000

                
                

              	 
	
                Gibraltar
                  Life Insurance Co., Ltd.

                 

              	 	 	
                25,000,000

                
                

              	 
	
                Gateway
                  Recovery Trust

                 

              	 	 	
                5,800,000

                
                

              	 
	
                Zurich
                  American Insurance Company

                 

              	 	 	
                3,450,000

                
                

              	 
	
                American
                  Memorial Life Insurance Company

                 

              	 	 	
                2,000,000

                
                

              	 
	
                Union
                  Security Insurance Company

                 

              	 	 	
                2,000,000

                
                

              	 
	
                American
                  Security Insurance Company

                 

              	 	 	
                1,500,000

                
                

              	 
	
                United
                  Service Protection Corp.

                 

              	 	 	
                750,000

                
                

              	 
	
                ING
                  USA Annuity and Life Insurance Company

                 

              	 	 	
                4,000,000

                
                

              	 
	
                ING
                  Life Insurance and Annuity Company

                 

              	 	 	
                7,000,000

                
                

              	 
	
                Reliastar
                  Life Insurance Company

                 

              	 	 	
                5,000,000

                
                

              	 
	
                Security
                  Life of Denver Insurance Company

                 

              	 	 	
                16,000,000

                
                

              	 
	
                Transamerica
                  Life Insurance Company

                 

              	 	 	
                30,000,000

                
                

              	 
	
                The
                  Guardian Life Insurance Company of America

                 

              	 	 	
                18,000,000

                
                

              	 
	
                Bankers
                  Life and Casualty Company

                 

              	 	 	
                4,000,000

                
                

              	 
	
                Conseco
                  Life Insurance Company

                 

              	 	 	
                2,000,000

                
                

              	 
	
                Conseco
                  Senior Health Insurance Company

                 

              	 	 	
                1,500,000

                
                

              	 
	
                Conseco
                  Health Insurance Company

                 

              	 	 	
                1,000,000

                
                

              	 
	
                Washington
                  National Insurance Company

                 

              	 	 	
                1,500,000

                
                

              	 
	
                AmerUs
                  Life Insurance Company

                 

              	 	 	
                5,000,000

                
                

              	 
	
                American
                  Investors Life Insurance Company

                 

              	 	 	
                5,000,000

                
                

              	 

      

      

      

      

      

      Schedule
        I

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]