Document:

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                                 AMENDMENT NO. 2
                                     TO THE
                          FINLAY RETIREMENT INCOME PLAN
                         (As Restated February 20, 2002)
                         -------------------------------

                  The Finlay Retirement Income Plan (the "Plan"), as restated
February 20, 2002 and thereafter amended April 1, 2003, is hereby further
amended in the following respects, effective January 1, 1997:

                  1.      Section 3.5.2 of the Plan is amended as follows:

                          (a)   The sixth sentence thereof is amended by adding
the following language at the end thereof after the words "beginning with the
highest of such amounts":

                          , in the following manner. First, determine how much
                          the actual contribution ratio (ACR) of the Highly
                          Compensated Employee with the highest ACR would have
                          to be reduced to satisfy the actual contribution
                          percentage (ACP) test or cause such ratio to equal the
                          ACR of the Highly Compensated Employee with the next
                          highest ratio. Second, this process is repeated until
                          the ACP test would be satisfied. The amount of excess
                          aggregate contributions is equal to the sum of these
                          hypothetical reductions multiplied, in each case, by
                          the Highly Compensated Employee's Total Compensation.

                          (b)   The following sentence is added at the end
of Section 3.5.2:

                          The distribution (or forfeiture, if applicable) of
                          excess aggregate contributions shall be made on the
                          basis of the respective amounts attributable to each
                          Highly Compensated Employee. The Highly Compensated
                          Employees subject to actual distribution or forfeiture
                          are determined using the "dollar leveling method"
                          starting with the Highly Compensated Employee with the
                          greatest dollar amount of employee, matching and other
                          contributions treated as Matching Contributions for
                          the Plan Year and continuing until the amount of the
                          excess aggregate contributions has been accounted for.

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                  2.      Section 14.3 is amended by revising the third sentence
thereof to read as follows:

                          Any such distribution of excess Elective
                          Contributions, and the corrective measures with
                          respect to Matching Contributions and other excess
                          contributions set forth below, shall be limited to the
                          extent such excess Annual Additions result from
                          contributions based on estimated annual compensation,
                          the allocation of forfeitures, or a reasonable error
                          in determining the amount of elective deferrals
                          (within the meaning of Code section 402(g)(3)) that
                          are permitted.

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be executed by its duly authorized officers this 29th day of May, 2003.

                                                 FINLAY ENTERPRISES, INC.

                                                 By:  /s/ Joseph M. Melvin
                                                      -----------------------
                                                      Joseph M. Melvin,
                                                      Chief Operating Officer

ATTEST:

/s/ Bonni G. Davis
-----------------------------
Bonni G. Davis
SecretaryAmendment No. 5 to Note Purchase Agreement

 

AMENDMENT NUMBER 5 TO NOTE PURCHASE AGREEMENT

     AMENDMENT NUMBER 5 TO NOTE PURCHASE AGREEMENT
(this “Amendment”), dated as of April 26, 2003 among BELK, INC., a Delaware
corporation, as debtor (in such capacity, the “Debtor”), THE BELK CENTER, INC.,
a North Carolina corporation, as servicer (the “Servicer” or “Belk Center”),
ENTERPRISE FUNDING CORPORATION, a Delaware corporation (the “Company”) and BANK OF
AMERICA, N.A., a national banking association (“Bank of America”), as agent for
the Company and the Bank Investors (in such capacity, the “Agent”) and as a Bank
Investor amending that certain Note Purchase Agreement dated as of May 3, 1999, as
amended prior to the date hereof (the “Note Purchase Agreement”).

     WHEREAS, the Debtor has requested that the Note Purchase Agreement
be amended to reflect an extension of the Commitment Termination Date;

     WHEREAS, Bank of America solely constitutes the Majority Investors (as
defined in the Note Purchase Agreement); and

     WHEREAS, the parties hereto have agreed to make certain amendments to
the Note Purchase Agreement.

     NOW, THEREFORE, the parties hereby agree as follows:

     SECTION 1.  Defined Terms. As used in this Amendment, capitalized
terms shall have the same meanings assigned thereto in the Note Purchase
Agreement.

     SECTION 2.  Amendment to Definitions.

     (a)    The definition of “Commitment Termination Date” is hereby
amended to read as follows (solely for convenience, changed text is
italicized):

	 	““Commitment Termination Date” means April 24, 2004, or such later
date to which the Commitment Termination Date may be extended by
Debtor, the Agent and the Bank Investors not later than 30 days prior to
the then current Commitment Termination Date.”

     (b)    The definition of “Official Body” is hereby amended to read as
follows (solely for convenience, changed text is italicized):

 

 

	 	““Official Body” means any government or political subdivision or any
agency, authority, bureau, central bank, commission, department or
instrumentality of any such government or political subdivision, or any
court, tribunal, grand jury or arbitrator, or any accounting board or
authority (whether or not part of government) which is responsible for the
establishment or interpretation of national or international accounting
principals, in each case whether foreign or domestic.”

     SECTION 3.  Amendment to Financial Covenants of Debtor.

     (a)    Section 5.3(a) of the Note Purchase Agreement is hereby amended
to read as follows (solely for convenience, changed text is italicized):

	 	“The Debtor shall not permit the Fixed Charge Coverage Ratio for the
consecutive three-quarter period of the Debtor ending on February 1,
2003, or for any consecutive four-quarter period of the Debtor ending on a
date after February 1, 2003, to be less than 2.0 to 1.0.”

     (b)      Section 5.3(b) of the Note Purchase Agreement is hereby amended
to read as follows (solely for convenience, changed text is italicized):

	 	“The Debtor shall not permit, the Leverage Ratio for: (i) the consecutive
three-quarter period of the Debtor ending on January 30, 1999, to be equal
to or greater than 3.00 to 1.00, (ii) any consecutive four-quarter period
of the Debtor including and ending with the first fiscal quarter of any
fiscal year to be greater than 3.25 to 1.00, (iii) any consecutive four-quarter
period of the Debtor including and ending with the second fiscal quarter
of any fiscal year to be greater than 3.25 to 1.00, (iv) any consecutive
four-quarter period of the Debtor including and ending with the third
fiscal quarter of any fiscal year to be greater than 3.70 to 1.00, or (v) any
consecutive four-quarter period of the Debtor including and ending with the
fourth fiscal quarter of any fiscal year to be greater than 4.25 to 1.00.”

     SECTION 4.  Amendment to Indemnity for Taxes, Reserves and
Expenses.

     (a)    Section 6.2(b) of the Note Purchase Agreement is hereby amended
by adding the following to the end thereof:

2

 

	 	“For avoidance of doubt, any interpretation of Accounting Research
Bulletin No. 51 by the Financial Accounting Standards Board, including
Interpretation No. 46: Consolidation of Variable Interest Entities, shall
constitute an adoption, change, request or directive subject to this
Section 6.2(b).”

     SECTION 5.  Representations and Warranties. The Debtor hereby
makes to the Company on and as of the date hereof, the following
representations and
warranties:

		
	 	       (a)  Authority. The Debtor has the requisite corporate power and
authority to execute and deliver this Amendment and to perform its
obligations hereunder and under the Note Purchase Agreement (as
amended hereby). The execution, delivery and performance by the Debtor
of this Amendment and the performance of the Note Purchase Agreement
(as amended hereby) have been duly approved by all necessary corporate
action and no other corporate proceedings are necessary to consummate
such transactions;

		
	 	       (b)  Enforceability. This Amendment has been duly executed and
delivered by the Debtor. The Note Purchase Agreement (as amended
hereby) is the legal, valid and binding obligation of the Debtor
enforceable
against the Debtor in accordance with its terms, and is in full force and
effect; and

		
	 	       (c) Representations and Warranties. The representations and
warranties of the Debtor contained in the Note Purchase Agreement (other
than any such representations or warranties that, by their terms, are
specifically made as of a date other than the date hereof) are correct on and as
of
the date hereof as though made on and as of the date hereof.

     SECTION 6.  Limited Scope. This amendment is specific to the
circumstances described above and does not imply any future amendment or waiver
of
rights allocated to the Company under the Note Purchase Agreement.

     SECTION 7.  Governing Law. THIS AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

3

 

     SECTION 8.  Severability; Counterparts. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same instrument. Any
provisions of this Amendment which are prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such
provision in any other jurisdiction.

     SECTION 9.  Ratification. Except as expressly affected by the provisions hereof,
the Note Purchase Agreement as amended shall remain in full force
and
effect in accordance with its terms and is hereby ratified and confirmed by the
parties
hereto. On and after the date hereof, each reference in the Note Purchase
Agreement to
“this Agreement”, “hereunder”, “herein” or words of like import shall mean and
be a
reference to the Note Purchase Agreement as amended by this Amendment.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Amendment Number 5 as of the date first written above.

	 	 	 	 	 
	 	 	BELK, INC., as Debtor
	 	 	 	 	 
	 	 	
By:
 /s/ John M. Belk

Name: John M. Belk

Title: Chairman
	 	 	 	 	 
	 	 	THE BELK CENTER, INC.,
    
as Servicer
	 	 	 	 	 
	 	 	
By:
 /s/ John M. Belk

Name: John M. Belk

Title: Chairman
	 	 	 	 	 
	 	 	ENTERPRISE FUNDING CORPORATION,

    as Company
	 	 	 	 	 
	 	 	
By:
 /s/ Kevin P. Burns

Name: Kevin P. Burns

Title: Vice President
	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
    
as Agent and as a Bank Investor
	 	 	 	 	 
	 	 	
By:
 /s/ Elliott Lemon

Name: Elliott Lemon

Title: Vice President

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