Document:

THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY OTHER APPLICABLE
      SECURITIES LAWS AND MAY NOT BE TRANSFERRED ABSENT REGISTRATION THEREUNDER OR
      AN
      APPLICABLE EXEMPTION THEREFROM.

    

    MAGNITUDE
      INFORMATION SYSTEMS, INC.

    

    BRIDGE
      LOAN NOTE

    DUE
      JULY
      27, 2007

     

     

    
      	
              $50,000.00

            	
              Branchburg,
                New Jersey

            
	 	
              July
                27, 2007

            

    

    

    Magnitude
      Information Systems, Inc., a Delaware corporation (the “Company”),
      for
      value received hereby promises to pay to _____________, (“Holder”),
      the
      principal sum of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) on July 27,
      2007, in such coin or currency of the United States of America as at the time
      of
      payment shall be legal tender for the payment of public and private debts,
      and
      to pay interest at the rate of 1% per month on the principal amount of
      $50,000.00, accruing from April 27, 2007, or so much thereof as shall be
      outstanding at maturity, plus an origination fee of $5,000.00 and a grant of
      shares, in accordance with Section 2 below, also due at maturity. 

    

    1.     Events
      of Default.

    

    In
      case
      one or more of the following “Events
      of Default”
shall
      have occurred and be continuing:

    

    (a) default
      in the due and punctual payment of the principal, the accrued interest and
      origination fee due under this Note upon maturity; or

    

    (b) a
      decree
      or order by a court shall have been entered adjudging the Company a bankrupt
      or
      insolvent, or appointing a receiver or trustee for the affairs or assets of
      the
      Company, and such decree or order shall have remained in force undischarged
      or
      unstayed for a period of 60 days; or

    

    (c) the
      Company shall institute proceedings to be adjudicated a voluntary bankrupt,
      or
      shall consent to the filing of any such petition or to the appointment of a
      receiver or trustee or shall make an assignment for the benefit of
      creditors.

    

    Except
      in
      the cases under 1(b) or 1(c), if, for whatsoever reason, the Company fails
      to
      pay all of the principal, accrued interests and origination fee upon maturity,
      this Note and the payment obligations hereunder shall be automatically extended
      for an additional 90 days and the Company shall issue five hundred thousand
      (500,000) shares of its common stock to the Holder as a penalty (the “penalty
      shares”) , subject, however, to postponement as provided in Section 2(c)
      below.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.    
Stock
      Grant and Convertibility.

    (a) The
      Company, as partial consideration for the loan upon which this Note is based,
      shall deliver to the Holder a stock grant of five hundred thousand (500,000)
      shares of the common stock of the Company at the maturity date.

    

    (b)
       The
      Holder hereof shall have the option to convert part or all of the outstanding
      principal balance, accrued interest and origination fee into shares of the
      common stock of the Company at maturity at a conversion rate that is the lower
      of (i) $.05 per share, or (ii) the investment rate utilized in any private
      placement consummated anytime following the date of this Note and continuing
      until maturity. 

    

    (c)
      The
      issuance of the stock grant at maturity, (a) above, the issuance of any shares
      pursuant to the exercise by the Holder of his election to convert at maturity
      ,
      (b) above, and the issuance of the penalty shares at maturity shall not be
      made
      at the time of maturity if the Company has a public offering in registration
      with the Securities and Exchange Commission under the Securities Act, in which
      event the stock grant, the issuance of any shares through the exercise of the
      Holder’s right of conversion and the issuance of the penalty shares shall be
      postponed until the 31st
      day
      following the date the subject registration statement has been declared
      effective or withdrawn. 

    

    3.     Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New Jersey, without regard to the conflicts of laws principles thereof.
      Venue
      for any action pursuant hereto shall be in the appropriate state or federal
      court in New Jersey.

    

    4.     Miscellaneous

    (a) Prior
      to
      due presentment for registration of transfer of this Note, the Company may
      deem
      and treat the registered holder hereof as the absolute owner of the Note
      (whether or not the Note shall be overdue and notwithstanding any notes of
      ownership or writing hereof made by anyone other than the Company), for the
      purpose of receiving payment of or on account of the principal hereof (and
      premium, if any) and interest hereon, for the conversion hereof and for all
      other purposes, and the Company shall not be affected by any notice to the
      contrary. All such payments or conversions shall be valid and effectual to
      satisfy and discharge the liability upon the Note to the extent of the sum
      or
      sums so paid, or the conversions so made.

    

    (b) No
      recourse shall be had for the payment of the principal of (or premiums, if
      any)
      or the interest on the Note, or for any claim based hereon, or otherwise in
      respect hereof, against any incorporator, stockholder, officer or director,
      as
      such, past, present or future, of the Company or of any successor corporation,
      either directly or through the Company or otherwise, whether by virtue of any
      constitution, statute or rule of law, or by the enforcement of any assessment,
      or penalty or otherwise, all such liability being, by the acceptance hereof
      and
      as part of the consideration for the issuance hereof, expressly waived and
      released.

     

     

    
      	 	 	 
	 	AGNITUDE INFORMATION SYSTEMS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Edward
                Marney, President and Chef
                Executive OfficeEXECUTION
      COPY

    
      
        

      

     

    $212,500,000

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    among

     

    ICONIX
      BRAND GROUP, INC.

     

    as
      Borrower,

     

    The
      Several Lenders

    from
      Time to Time Parties Hereto,

     

    LEHMAN
      BROTHERS INC.,

    as
      Arranger

     

    LEHMAN
      COMMERCIAL PAPER INC.,

    as
      Syndication Agent

     

    and

     

    LEHMAN
      COMMERCIAL PAPER INC.,

    as
      Administrative Agent

     

    Dated
      as of May 2, 2007

     

    

    
      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF
      CONTENTS

     

    
      
        	 	 	 	Page
	
                SECTION
                  1.

              	 	
                DEFINITIONS

              	
                1

              
	
                1.1

              	 	
                Defined
                  Terms

              	
                1

              
	
                1.2

              	 	
                Other
                  Definitional Provisions

              	
                32

              
	
                SECTION
                  2.

              	 	
                AMOUNT
                  AND TERMS OF COMMITMENTS

              	
                32

              
	
                2.1

              	 	
                Commitments

              	
                32

              
	
                2.2

              	 	
                Procedure
                  for Borrowing

              	
                34

              
	
                2.3

              	 	
                Repayment
                  of Loans

              	
                34

              
	
                2.4

              	 	
                Repayment
                  of Loans; Evidence of Debt

              	
                36

              
	
                2.5

              	 	
                Fees,
                  etc

              	
                37

              
	
                2.6

              	 	
                Optional
                  Prepayments

              	
                37

              
	
                2.7

              	 	
                Mandatory
                  Prepayments

              	
                37

              
	
                2.8

              	 	
                Conversion
                  and Continuation Options

              	
                38

              
	
                2.9

              	 	
                Minimum
                  Amounts and Maximum Number of Eurodollar Tranches

              	
                39

              
	
                2.10

              	 	
                Interest
                  Rates and Payment Dates

              	
                39

              
	
                2.11

              	 	
                Computation
                  of Interest and Fees

              	
                40

              
	
                2.12

              	 	
                Inability
                  to Determine Interest Rate

              	
                40

              
	
                2.13

              	 	
                Pro
                  Rata Treatment and Payments

              	
                40

              
	
                2.14

              	 	
                Requirements
                  of Law

              	
                44

              
	
                2.15

              	 	
                Taxes

              	
                45

              
	
                2.16

              	 	
                Indemnity

              	
                46

              
	
                2.17

              	 	
                Illegality

              	
                46

              
	
                2.18

              	 	
                Change
                  of Lending Office

              	
                46

              
	
                2.19

              	 	
                Replacement
                  of Lenders under Certain Circumstances

              	
                48

              
	
                SECTION
                  3.

              	 	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                48

              
	
                3.1

              	 	
                Financial
                  Condition

              	
                48

              
	
                3.2

              	 	
                No
                  Change

              	
                50

              
	
                3.3

              	 	
                Corporate
                  Existence; Compliance with Law

              	
                50

              
	
                3.4

              	 	
                Corporate
                  Power; Authorization; Enforceable Obligations

              	
                50

              
	
                3.5

              	 	
                No
                  Legal Bar

              	
                50

              
	
                3.6

              	 	
                No
                  Material Litigation

              	
                50

              
	
                3.7

              	 	
                No
                  Default

              	
                51

              
	
                3.8

              	 	
                Ownership
                  of Property; Liens

              	
                51

              
	
                3.9

              	 	
                Intellectual
                  Property

              	
                51

              
	
                3.10

              	 	
                Taxes

              	
                51

              
	
                3.11

              	 	
                Federal
                  Regulations

              	
                51

              
	
                3.12

              	 	
                Labor
                  Matters

              	
                51

              
	
                3.13

              	 	
                ERISA

              	
                53

              
	
                3.14

              	 	
                Investment
                  Company Act; Other Regulations

              	
                53

              
	
                3.15

              	 	
                Subsidiaries

              	
                53

              
	
                3.16

              	 	
                Use
                  of Proceeds

              	
                53

              
	
                3.17

              	 	
                Environmental
                  Matters

              	
                53

              
	
                3.18

              	 	
                Accuracy
                  of Information, etc.

              	
                54

              
	
                3.19

              	 	
                Security
                  Documents

              	
                55

              
	
                3.20

              	 	
                Solvency

              	
                55

              
	
                3.21

              	 	
                Certain
                  Documents

              	
                55

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      
        	
                SECTION
                  4.

              	 	
                CONDITIONS
                  PRECEDENT

              	
                55

              
	
                4.1

              	 	
                Loan
                  Documents

              	
                57

              
	
                4.2

              	 	
                Acquisitions

              	
                57

              
	
                4.3

              	 	
                Pro
                  Forma Balance Sheet; Financial Statements

              	
                57

              
	
                4.4

              	 	
                Minimum
                  Guaranteed Revenue

              	
                57

              
	
                4.5

              	 	
                Approvals

              	
                57

              
	
                4.6

              	 	
                Related
                  Agreements

              	
                57

              
	
                4.7

              	 	
                Fees

              	
                57

              
	
                4.8

              	 	
                Business
                  Plan

              	
                57

              
	
                4.9

              	 	
                Solvency
                  Certificate

              	
                58

              
	
                4.10

              	 	
                Lien
                  Searches

              	
                58

              
	
                4.11

              	 	
                Closing
                  Certificate

              	
                58

              
	
                4.12

              	 	
                Legal
                  Opinions

              	
                58

              
	
                4.13

              	 	
                Pledged
                  Stock; Stock Powers

              	
                58

              
	
                4.14

              	 	
                Filings,
                  Registrations and Recordings

              	
                58

              
	
                4.15

              	 	
                Insurance

              	
                58

              
	
                4.16

              	 	
                PATRIOT
                  Act

              	
                59

              
	
                4.17

              	 	
                Representations
                  and Warranties

              	
                60

              
	
                4.18

              	 	
                No
                  Default

              	
                60

              
	
                SECTION
                  5.

              	 	
                AFFIRMATIVE
                  COVENANTS

              	
                60

              
	
                5.1

              	 	
                Financial
                  Statements

              	
                60

              
	
                5.2

              	 	
                Certificates;
                  Other Information

              	
                61

              
	
                5.3

              	 	
                Payment
                  of Obligations

              	
                61

              
	
                5.4

              	 	
                Conduct
                  of Business and Maintenance of Existence; Compliance

              	
                62

              
	
                5.5

              	 	
                Maintenance
                  of Property; Insurance

              	
                63

              
	
                5.6

              	 	
                Inspection
                  of Property; Books and Records; Discussions

              	
                63

              
	
                5.7

              	 	
                Notices

              	
                63

              
	
                5.8

              	 	
                Environmental
                  Laws

              	
                64

              
	
                5.9

              	 	
                Interest
                  Rate Protection

              	
                64

              
	
                5.10

              	 	
                Additional
                  Collateral, etc.

              	
                64

              
	
                5.11

              	 	
                Further
                  Assurances

              	
                66

              
	
                SECTION
                  6.

              	 	
                NEGATIVE
                  COVENANTS

              	
                67

              
	
                6.1

              	 	
                Total
                  Leverage Ratio

              	
                67

              
	
                6.2

              	 	
                Limitation
                  on Indebtedness

              	
                67

              
	
                6.3

              	 	
                Limitation
                  on Liens

              	
                69

              
	
                6.4

              	 	
                Limitation
                  on Fundamental Changes

              	
                71

              
	
                6.5

              	 	
                Limitation
                  on Disposition of Property

              	
                73

              
	
                6.6

              	 	
                Limitation
                  on Restricted Payments

              	
                73

              
	
                6.7

              	 	
                Limitation
                  on Capital Expenditures

              	
                75

              
	
                6.8

              	 	
                Limitation
                  on Investments

              	
                75

              
	
                6.9

              	 	
                Limitation
                  on Optional Payments and Modifications of Debt Instruments,
                  etc.

              	
                76

              
	
                6.10

              	 	
                Limitation
                  on Transactions with Affiliates

              	
                78

              
	
                6.11

              	 	
                Limitation
                  on Sales and Leasebacks

              	
                78

              
	
                6.12

              	 	
                Limitation
                  on Changes in Fiscal Periods

              	
                78

              
	
                6.13

              	 	
                Limitation
                  on Negative Pledge Clauses

              	
                78

              
	
                6.14

              	 	
                Limitation
                  on Restrictions on Subsidiary Distributions

              	
                78

              
	
                6.15

              	 	
                Limitation
                  on Lines of Business

              	
                79

              
	
                6.16

              	 	
                Limitation
                  on Amendments to Acquisition Documentation

              	
                79

              
	
                6.17

              	 	
                Limitation
                  on Hedge Agreements

              	
                79

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
        	
                SECTION
                  7.

              	 	
                EVENTS
                  OF DEFAULT

              	
                79

              
	
                SECTION
                  8.

              	 	
                THE
                  ADMINISTRATIVE AGENT

              	
                83

              
	
                8.1

              	 	
                Appointment

              	
                83

              
	
                8.2

              	 	
                Delegation
                  of Duties

              	
                83

              
	
                8.3

              	 	
                Exculpatory
                  Provisions

              	
                83

              
	
                8.4

              	 	
                Reliance
                  by Administrative Agent

              	
                84

              
	
                8.5

              	 	
                Notice
                  of Default

              	
                84

              
	
                8.6

              	 	
                Non-Reliance
                  on Administrative Agent and Other Lenders

              	
                84

              
	
                8.7

              	 	
                Indemnification

              	
                86

              
	
                8.8

              	 	
                Agent
                  in Its Individual Capacity

              	
                86

              
	
                8.9

              	 	
                Successor
                  Administrative Agent

              	
                86

              
	
                8.10

              	 	
                Authorization
                  to Release Liens and Guarantees

              	
                87

              
	
                8.11

              	 	
                The
                  Arranger

              	
                88

              
	
                SECTION
                  9.

              	 	
                MISCELLANEOUS

              	
                88

              
	
                9.1

              	 	
                Amendments
                  and Waivers

              	
                88

              
	
                9.2

              	 	
                Notices

              	
                90

              
	
                9.3

              	 	
                No
                  Waiver; Cumulative Remedies

              	
                92

              
	
                9.4

              	 	
                Survival
                  of Representations and Warranties

              	
                92

              
	
                9.5

              	 	
                Payment
                  of Expenses

              	
                92

              
	
                9.6

              	 	
                Successors
                  and Assigns; Participations and Assignments

              	
                94

              
	
                9.7

              	 	
                Adjustments;
                  Set off

              	
                98

              
	
                9.8

              	 	
                Counterparts

              	
                98

              
	
                9.9

              	 	
                Severability

              	
                98

              
	
                9.10

              	 	
                Integration

              	
                98

              
	
                9.11

              	 	
                GOVERNING
                  LAW

              	
                98

              
	
                9.12

              	 	
                Submission
                  To Jurisdiction; Waivers

              	
                99

              
	
                9.13

              	 	
                Acknowledgments

              	
                99

              
	
                9.14

              	 	
                Confidentiality

              	
                99

              
	
                9.15

              	 	
                Release
                  of Collateral and Guarantee Obligations

              	
                101

              
	
                9.16

              	 	
                Accounting
                  Changes

              	
                101

              
	
                9.17

              	 	
                [RESERVED]

              	
                102

              
	
                9.18

              	 	
                WAIVERS
                  OF JURY TRIAL

              	
                102

              

      

    

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      
        	
                SCHEDULES:

              	 	 
	
                3.4

              	
                Consents,
                  Authorizations, Filings and Notices

              	 	 
	
                3.15

              	
                Subsidiaries

              	 	 
	
                3.19(a)

              	
                UCC
                  Filing Jurisdictions

              	 	 
	
                6.2(d)

              	
                Existing
                  Indebtedness

              	 	 
	
                6.3(f)

              	
                Existing
                  Liens

              	 	 
	 	 	 	 
	
                EXHIBITS:

              	 	 
	
                A

              	
                Form
                  of Guarantee and Collateral Agreement

              	 	 
	
                B

              	
                Form
                  of Compliance Certificate

              	 	 
	
                C

              	
                Form
                  of Closing Certificate

              	 	 
	
                D

              	
                Form
                  of Assignment and Assumption

              	 	 
	
                E-1

              	
                Form
                  of Legal Opinion of Blank Rome LLP

              	 	 
	
                E-2

              	
                Form
                  of Legal Opinion of Andrew Tarshis

              	 	 
	
                F

              	
                Form
                  of Note

              	 	 
	
                G

              	
                Form
                  of Exemption Certificate

              	 	 
	
                H

              	
                [Reserved]

              	 	 
	
                I

              	
                Form
                  of Borrowing Notice

              	 	 
	
                J

              	
                Form
                  of Increased Facility Activation Notice

              	 	 
	
                K

              	
                Form
                  of New Lender Supplement

              	 	 
	
                L

              	
                Form
                  of Subsidiaries’ Financial Information

              	 	 

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT, dated as of May 2, 2007, among, ICONIX BRAND
      GROUP, INC., a Delaware corporation (the “Borrower”),
      the
      several banks and other financial institutions or entities from time to time
      parties to this Agreement (the “Lenders”),
      LEHMAN BROTHERS INC., as advisor, sole lead arranger and sole bookrunner (in
      such capacity, the “Arranger”),
      LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the
“Syndication
      Agent”)
      and
      LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
      “Administrative
      Agent”).

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      the Borrower entered into that certain Asset Purchase Agreement, dated as of
      March 6, 2007 (the “Rocawear
      Acquisition Agreement”),
      by
      and among the parties
      thereto as sellers (collectively,
      the “Rocawear
      Sellers”;
      and
      together with the Danskin Sellers (as defined below), the “Sellers”)
      and
      the Borrower, pursuant to which the Borrower acquired (the “Rocawear
      Acquisition”)
      certain assets of the Rocawear Sellers;

     

    WHEREAS,
      the Borrower entered into that certain Credit Agreement, dated as of March
      30,
      2007 (the “Existing
      Credit Agreement”),
      by
      and among the Borrower, Lehman Commercial Paper Inc., as lender (in such
      capacity, the “Existing
      Lender”),
      Lehman Brothers Inc., as arranger, and Lehman Commercial Paper Inc., as
      syndication agent and administrative agent, pursuant to which the Existing
      Lender made available a senior secured term loan facility in the aggregate
      amount of $212,500,000 (the “Facility”),
      the
      proceeds of which were used to finance the Rocawear Acquisition and to pay
      related fees and expenses;

     

    WHEREAS,
      the parties to the Existing Credit Agreement wish to amend and restate the
      Existing Credit Agreement in its entirety pursuant to this Agreement;
      and

     

    WHEREAS,
      it is the intent of the parties hereto, and the parties hereto agree that this
      Agreement shall not constitute a novation of the obligations and liabilities
      existing under the Existing Credit Agreement or evidence repayment of any of
      such obligations or liabilities;

     

    NOW,
      THEREFORE, in consideration of the premises and the agreements hereinafter
      set
      forth, the parties hereto hereby agree that the Existing Credit Agreement is
      hereby amended and restated in its entirety as follows:

     

    SECTION 1.  DEFINITIONS

     

    1.1  Defined
      Terms.
      As used
      in this Agreement, the terms listed in this Section 1.1
      shall
      have the respective meanings set forth in this Section 1.1.

     

    “Acquisitions”:
      collectively, the Danskin Acquisition and the Rocawear Acquisition.

     

    “Acquisition
      Agreements”:
      collectively, the Danskin Acquisition Agreement and the Rocawear Acquisition
      Agreement.

     

    “Acquisition
      Documentation”:
      collectively, the Acquisition Agreements and all schedules, exhibits, annexes
      and amendments thereto and all side letters and agreements affecting the terms
      thereof or entered into in connection therewith, in each case, as amended,
      supplemented or otherwise modified from time to time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Administrative
      Agent”:
      as
      defined in the preamble hereto.

     

    “Affiliate”:
      as to
      any Person, any other Person that, directly or indirectly, is in control of,
      is
      controlled by, or is under common control with, such Person. For purposes of
      this definition, “control” of a Person means the power, directly or indirectly,
      either to (a) vote 10% or more of the securities having ordinary voting
      power for the election of directors (or persons performing similar functions)
      of
      such Person or (b) direct or cause the direction of the management and
      policies of such Person, whether by contract or otherwise.

     

    “Aggregate
      Exposure”:
      with
      respect to any Lender at any time, an amount equal to (a) until the Initial
      Closing Date, the aggregate amount of such Lender’s Commitments at such time and
      (b) thereafter, the aggregate then unpaid principal amount of such Lender’s
      Loans.

     

    “Aggregate
      Exposure Percentage”:
      with
      respect to any Lender at any time, the ratio (expressed as a percentage) of
      such
      Lender’s Aggregate Exposure at such time to the sum of the Aggregate Exposures
      of all Lenders at such time.

     

    “Agreement”:
      this
      Amended and Restated Credit Agreement, as amended, supplemented or otherwise
      modified from time to time.

     

    “Applicable
      Margin”:
      1.25%
      in the case of a Base Rate Term Loan and (b) 2.25% in the case of a Eurodollar
      Term Loan. The Applicable Margin with respect to Incremental Loans shall be
      specified in the Increased Facility Activation Notice with respect to such
      Incremental Loans.

     

    “Arranger”:
      as
      defined in the preamble hereto.

     

    “Asset
      Sale”:
      any
      Disposition of Collateral (or Property required to become Collateral) or series
      of related Dispositions of Collateral (or Property required to become
      Collateral) (excluding any such Disposition permitted by clause (a), (b),
      (c), (d), (e), (f), (g), (h), (i), (l), (m) or (n) of Section 6.5) which
      yields gross proceeds to the Borrower or any of its Subsidiaries (valued at
      the
      initial principal amount thereof in the case of non-cash proceeds consisting
      of
      notes or other debt securities and valued at fair market value in the case
      of
      other non-cash proceeds) in excess of $2,000,000.

     

    “Assignee”:
      as
      defined in Section 9.6(c).

     

    “Assignor”:
      as
      defined in Section 9.6(c).

     

    “BAI
      Litigation”:
      that
      certain lawsuit initiated on or about June 12, 2006, by Bongo Apparel, Inc.
      in
      the Supreme Court of the State of New York, County of New York, against the
      Borrower.

     

    “Base
      Rate”:
      for
      any day, a rate per annum (rounded upwards, if necessary, to the next 1/16
      of
      1%) equal to the greater of (a) the Prime Rate in effect on such day and
      (b) the Federal Funds Effective Rate in effect on such day plus1⁄2
of
      1%.
      For purposes hereof: “Prime
      Rate”
shall
      mean the prime lending rate as set forth on the British Banking Association
      Telerate Page 5 (or such other comparable publicly available service for
      displaying prime lending rates as may, in the reasonable opinion of the
      Administrative Agent after notice to the Borrower, replace such page for the
      purpose of displaying such rate in the event such rate does not appear on the
      British Banking Association Telerate Page 5), as in effect from time to
      time. The Prime Rate is a reference rate and does not necessarily represent
      the
      lowest or best rate actually available. Any change in the Base Rate due to
      a
      change in the Prime Rate or the Federal Funds Effective Rate shall be effective
      as of the opening of business on the effective day of such change in the Prime
      Rate or the Federal Funds Effective Rate, respectively.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Base
      Rate Incremental Loans”:
      Incremental Loans for which the applicable rate of interest is based upon the
      Base Rate.

     

    “Base
      Rate Loans”:
      the
      collective reference to the Base Rate Term Loans and the Base Rate Incremental
      Loans. 

     

    “Base
      Rate Term Loans”:
      Term
      Loans for which the applicable rate of interest is based upon the Base
      Rate.

     

    “Benefited
      Lender”:
      as
      defined in Section 9.7.

     

    “Board”:
      the
      Board of Governors of the Federal Reserve System of the United States (or any
      successor).

     

    “Borrower”:
      as
      defined in the preamble hereto.

     

    “Borrowing
      Date”:
      any
      Business Day specified by the Borrower as a date on which the Borrower requests
      the relevant Lenders to make Loans hereunder.

     

    “Borrowing
      Notice”:
      with
      respect to any request for borrowing of Loans hereunder, a notice from the
      Borrower, substantially in the form of, and containing the information
      prescribed by, Exhibit I, delivered to the Administrative
      Agent.

     

    “Business
      Day”:
      (a) for all purposes other than as covered by clause (b) below, a day
      other than a Saturday, Sunday or other day on which commercial banks in New
      York
      City are authorized or required by law to close and (b) with respect to all
      notices and determinations in connection with, and payments of principal and
      interest on, Eurodollar Loans, any day which is a Business Day described in
      clause (a) and which is also a day for trading by and between banks in
      Dollar deposits in the interbank eurodollar market.

     

    “Capital
      Expenditures”:
      for
      any period, with respect to any Person, the aggregate of all expenditures by
      such Person for the acquisition or leasing (pursuant to a capital lease) of
      fixed or capital assets (other than Intellectual Property and Capital Stock)
      or
      additions to equipment (including replacements, capitalized repairs and
      improvements during such period) which are required to be capitalized under
      GAAP
      on a balance sheet of such Person.

     

    “Capital
      Lease Obligations”:
      with
      respect to any Person, the obligations of such Person to pay rent or other
      amounts under any lease of (or other arrangement conveying the right to use)
      real or personal property, or a combination thereof, which obligations are
      required to be classified and accounted for as capital leases on a balance
      sheet
      of such Person under GAAP; and, for the purposes of this Agreement, the amount
      of such obligations at any time shall be the capitalized amount thereof at
      such
      time determined in accordance with GAAP.

     

    “Capital
      Stock”:
      any
      and all shares, interests, participations or other equivalents (however
      designated) of capital stock of a corporation, any and all equivalent ownership
      interests in a Person (other than a corporation) and any and all warrants,
      rights or options to purchase any of the foregoing.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Cash
      Equivalents”:
      (a) marketable direct obligations issued by, or unconditionally guaranteed
      by, the United States government or issued by any agency thereof and backed
      by
      the full faith and credit of the United States, in each case maturing within
      one
      year from the date of acquisition; (b) certificates of deposit, time
      deposits, eurodollar time deposits or overnight bank deposits having maturities
      of six months or less from the date of acquisition issued by any Lender or
      by
      any commercial bank organized under the laws of the United States or any state
      thereof having combined capital and surplus of not less than $500,000,000;
      (c) commercial paper of an issuer rated at least A-2 by Standard &
Poor’s Rating Services (“S&P”)
      or P-2
      by Moody’s Investors Service, Inc. (“Moody’s”),
      or
      carrying an equivalent rating by a nationally recognized rating agency, if
      both
      of the two named rating agencies cease publishing ratings of commercial paper
      issuers generally, and maturing within six months from the date of acquisition;
      (d) repurchase obligations of any Lender or of any commercial bank
      satisfying the requirements of clause (b) of this definition, having a term
      of not more than 30 days with respect to securities issued or fully
      guaranteed or insured by the United States government; (e) securities with
      maturities of one year or less from the date of acquisition issued or fully
      guaranteed by any state, commonwealth or territory of the United States, by
      any
      political subdivision or taxing authority of any such state, commonwealth or
      territory or by any foreign government, the securities of which state,
      commonwealth, territory, political subdivision, taxing authority or foreign
      government (as the case may be) are rated at least A by S&P or A by Moody’s;
      (f) securities with maturities of six months or less from the date of
      acquisition backed by standby letters of credit issued by any Lender or any
      commercial bank satisfying the requirements of clause (b) of this
      definition; and (g) shares of money market mutual or similar funds which
      invest exclusively in assets satisfying the requirements of clauses (a)
      through (f) of this definition.

     

    “Change
      of Control”:
      the
      occurrence of any of the following events: (a) any “person” or “group” (as such
      terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
      of 1934, as amended (the “Exchange
      Act”))
      shall
      become, or obtain rights (whether by means or warrants, options or otherwise)
      to
      become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5
      under the Exchange Act), directly or indirectly, of more than 30% of the
      outstanding common stock of the Borrower; (b) the board of directors of the
      Borrower shall cease to consist of a majority of Continuing Directors or
      (c) a Specified Change of Control if the holders of the related Permitted
      Subordinated Indebtedness holding more than $25,000,000 thereof elect to put
      such Permitted Subordinated Indebtedness to the Borrower.

     

    “Code”:
      the
      Internal Revenue Code of 1986, as amended from time to time.

     

    “Collateral”:
      all
      Property of the Loan Parties, now owned or hereafter acquired, upon which a
      Lien
      is purported to be created by any Security Document.

     

    “Commitment”:
      as to
      the Existing Lender, the obligation of such Lender to make the Term Loan to
      the
      Borrower on the Initial Closing Date pursuant to the Existing Credit
      Agreement.

     

    “Commonly
      Controlled Entity”:
      an
      entity, whether or not incorporated, that is under common control with the
      Borrower within the meaning of Section 4001 of ERISA or is part of a group
      that includes the Borrower and that is treated as a single employer under
      Section 414 of the Code.

     

    “Compliance
      Certificate”:
      a
      certificate duly executed by a Responsible Officer, substantially in the form
      of
      Exhibit B.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Consolidated
      EBITDA”:
      of the
      Subsidiaries for any period, shall equal Consolidated Net Income of the
      Subsidiaries for such period plus,
      without
      duplication and to the extent reflected in the calculation of such Consolidated
      Net Income for such period, the sum of (a) income taxes allocable to any
      Subsidiary on account of such Consolidated Net Income, (b) interest,
      amortization or write-off of debt issuance costs and commissions, discounts
      and
      other fees and charges associated with the Loan Documents, (c) depreciation
      and amortization expense either taken directly by or allocated to any
      Subsidiary, and (d) amortization of intangibles (including, but not limited
      to, goodwill) and organization costs either taken directly by or allocated
      to
      any Subsidiary. For
      purposes of calculating Consolidated EBITDA of the Subsidiaries for any period,
      (i) the Consolidated EBITDA of any Subsidiary acquired by the Borrower or its
      Subsidiaries during such period which has become a “Subsidiary” under this
      Agreement following such acquisition shall be included on a pro forma basis
      for
      such period (assuming the consummation of such acquisition and the incurrence
      or
      assumption of any Indebtedness in connection therewith occurred on the first
      day
      of such period) and (ii) the Consolidated EBITDA of any Subsidiary Disposed
      of
      by the Borrower or its Subsidiaries during such period which was a “Subsidiary”
under this Agreement prior to such Disposition shall be excluded for such period
      (assuming the consummation of such Disposition and the repayment of any
      Indebtedness in connection therewith occurred on the first day of such
      period).

     

    “Consolidated
      Net Income”:
      of the
      Subsidiaries for any period, shall equal the aggregate revenues of the
      Subsidiaries earned (as defined under GAAP) under license agreements for such
      period; provided,
      that in
      calculating Consolidated Net Income of the Subsidiaries for any period, there
      shall be excluded (a) such revenues of any Subsidiary accrued prior to the
      date
      it becomes a Subsidiary of, or is merged into or consolidated with, the Borrower
      or any of its Subsidiaries and (b) the undistributed revenues of any Subsidiary
      of the Borrower to the extent that the declaration or payment of dividends
      or
      similar distributions by such Subsidiary is not at the time permitted by the
      terms of any Contractual Obligation (other than under any Loan Document) or
      Requirement of Law applicable to such Subsidiary, minus,
      without
      duplication, the sum of (a) direct operating expenses incurred by any
      Subsidiary, (b) corporate expenses allocated by the Borrower to any Subsidiary
      in good faith and in accordance with past practices, (c) income taxes
      allocable to such revenues, (d) interest, amortization or write-off of debt
      issuance costs and commissions, discounts and other fees and charges associated
      with the Loan Documents, (e) depreciation and amortization expense either
      taken directly by or allocated to any Subsidiary in good faith and in accordance
      with past practices, and (f) amortization of intangibles (including, but
      not limited to, goodwill) and organization costs either taken directly by or
      allocated to any Subsidiary in good faith and in accordance with past
      practices.

     

    “Consolidated
      Total Debt”:
      at any
      date, the aggregate principal amount, without duplication, of all Indebtedness
      of the Borrower and its Subsidiaries at such date determined on a consolidated
      basis, net of Restricted Cash on the consolidated balance sheet of the Borrower
      and its Subsidiaries at such date. 

     

    “Continuing
      Directors”:
      the
      directors of the Borrower on the Initial Closing Date, after giving effect
      to
      the Acquisitions and the other transactions contemplated hereby, and each other
      director of the Borrower, if, in each case, such other director’s nomination for
      election to the board of directors of Borrower is recommended by at least 662⁄3%
      of the then Continuing Directors.

     

    “Contractual
      Obligation”:
      as to
      any Person, any provision of any security issued by such Person or of any
      agreement, instrument or other undertaking to which such Person is a party
      or by
      which it or any of its Property is bound.

     

    “Control
      Investment Affiliate”:
      as to
      any Person, any other Person that (a) directly or indirectly, is in control
      of, is controlled by, or is under common control with, such Person and
      (b) is organized by such Person primarily for the purpose of making equity
      or debt investments in one or more companies. For purposes of this definition,
      “control” of a Person means the power, directly or indirectly, to direct or
      cause the direction of the management and policies of such Person, whether
      by
      contract or otherwise.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Dan
      River Agreement”:
      that
      certain agreement by and between Danskin, Inc., a Delaware corporation, and
      Dan
      River, Inc., dated as of September 28, 1977, as amended, restated supplemented
      or otherwise modified by amendments dated December 30, 1983 and October 5,
      1995.

     

    “Danskin
      Acquisition”:
      the
      acquisition by the Borrower of certain assets of the Danskin Sellers pursuant
      to
      the Danskin Acquisition Agreement.

     

    “Danskin
      Acquisition Agreement”:
      that
      certain Assets Purchase Agreement, dated as of February 21, 2007, by and among
      the Borrower and the Danskin Sellers.

     

    “Danskin
      License Agreement”:
      that
      certain License Agreement, dated as of March 9, 2007, between DANSKIN, Inc.
      and
      Studio IP Holdings LLC., as amended, supplemented or otherwise modified from
      time to time.

     

    “Danskin
      Sellers”:
      collectively, DANSKIN, Inc. and Danskin Now, Inc. 

     

    “Default”:
      any of
      the events specified in Section 7,
      whether
      or not any requirement for the giving of notice, the lapse of time, or both,
      has
      been satisfied.

     

    “Derivatives
      Counterparty”:
      as
      defined in Section 6.6.

     

    “Directly
      Owned Foreign Subsidiary”:
      a
      Foreign Subsidiary that is directly owned by the Borrower.

     

    “Disposition”:
      with
      respect to any Property, any sale, lease, sale and leaseback, assignment,
      conveyance, transfer or other disposition thereof; and the terms “Dispose”
and
      “Disposed
      of”
shall
      have correlative meanings.

     

    “Dollars”
and
      “$”:
      dollars in lawful currency of the United States.

     

    “Domestic
      Subsidiary”:
      any
      Subsidiary of the Borrower organized under the laws of any jurisdiction within
      the United States.

     

    “Earn-Out
      Consideration”:
      as
      such term is defined in the Acquisition Documentation or any similar term
      defined in the purchase agreement entered into in connection with a Permitted
      Acquisition Transaction. 

     

    “ECF
      Percentage”:
      with
      respect to any fiscal year of the Borrower, 50%; provided,
      that,
      with respect to any fiscal year of the Borrower ending on or after December
      31,
      2007, the ECF Percentage shall be (a) 25% if the Total Leverage Ratio as of
      the
      last day of such fiscal year is not greater than 3.0 to 1.0 and (b) 0% if the
      Total Leverage Ratio as of the last day of such fiscal year is not greater
      than
      2.5 to 1.0.

     

    “Environmental
      Laws”:
      any
      and all laws, rules, orders, regulations, statutes, ordinances, guidelines,
      codes, decrees, or other legally enforceable requirements (including, without
      limitation, common law) of any international authority, foreign government,
      the
      United States, or any state, local, municipal or other governmental authority,
      regulating, relating to or imposing liability or standards of conduct concerning
      protection of the environment or of human health, or employee health and safety,
      as has been, is now, or may at any time hereafter be, in effect.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Environmental
      Permits”:
      any
      and all permits, licenses, approvals, registrations, notifications, exemptions
      and other authorizations required under any Environmental Law.

     

    “ERISA”:
      the
      Employee Retirement Income Security Act of 1974, as amended from time to
      time.

     

    “Eurocurrency
      Reserve Requirements”:
      for
      any day, the aggregate (without duplication) of the maximum rates (expressed
      as
      a decimal fraction) of reserve requirements in effect on such day (including,
      without limitation, basic, supplemental, marginal and emergency reserves) under
      any regulations of the Board or other Governmental Authority having jurisdiction
      with respect thereto dealing with reserve requirements prescribed for
      eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
      Regulation D of the Board) maintained by a member bank of the Federal
      Reserve System of the United States.

     

    “Eurodollar
      Base Rate”:
      with
      respect to each day during each Interest Period, the rate per annum determined
      on the basis of the rate for deposits in Dollars for a period equal to such
      Interest Period commencing on the first day of such Interest Period appearing
      on
      Page 3750 of the Dow Jones Markets Screen (or such other comparable
      publicly available service for displaying eurodollar rates as may, in the
      reasonable opinion of the Administrative Agent after notice to the Borrower,
      replace such page for the purpose of displaying such rate in the event such
      rate
      does not appear on Page 3750 of the Dow Jones Markets Screen (or otherwise
      on such screen)), as of 11:00 A.M., London time, two Business Days prior to
      the beginning of such Interest Period. 

     

    “Eurodollar
      Incremental Loans”:
      Incremental Loans for which the applicable rate of interest is based upon the
      Eurodollar Rate.

     

    “Eurodollar
      Loans”:
      the
      collective reference to the Eurodollar Term Loans and the Eurodollar Incremental
      Loans. 

     

    “Eurodollar
      Rate”:
      with
      respect to each day during each Interest Period, a rate per annum determined
      for
      such day in accordance with the following formula (rounded upward to the nearest
      1/100th
      of
      1%):

     

                      
           Eurodollar Base
      Rate           
           

    1.00
      -
      Eurocurrency Reserve Requirements

     

    “Eurodollar
      Term Loans”:
      Term
      Loans for which the applicable rate of interest is based upon the Eurodollar
      Rate.

     

    “Eurodollar
      Tranche”:
      the
      collective reference to Eurodollar Loans the then current Interest Periods
      with
      respect to all of which begin on the same date and end on the same later date
      (whether or not such Loans shall originally have been made on the same
      day).

     

    “Event
      of Default”:
      any of
      the events specified in Section 7,
      provided
      that any
      requirement for the giving of notice, the lapse of time, or both, has been
      satisfied.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Excess
      Cash Flow”:
      for
      any fiscal year of the Subsidiaries, the difference, if any, of (a) the
      sum, without duplication, of (i) Consolidated Net Income for such fiscal
      year, (ii) the amount of all non-cash charges (including taxes,
      depreciation and amortization) deducted in arriving at such Consolidated Net
      Income and (iii) the aggregate amount of the decrease, if any, in prepaid
      advertising costs with respect to any Subsidiary during such fiscal year,
minus
      (b) the sum, without duplication, of (i) the aggregate amount of
      Consolidated Net Income of Foreign Subsidiaries that has not been repatriated
      or
      otherwise distributed to the Borrower or any of its Domestic Subsidiaries,
      (ii) the amount of all non-cash credits (including taxes) included in
      arriving at such Consolidated Net Income, (iii) the aggregate amount
      actually paid in cash during such fiscal year on account of Capital Expenditures
      (minus
      the sum
      of the principal amount of Indebtedness incurred in connection with such
      expenditures and the amount of any such expenditures financed with the proceeds
      of any Reinvestment Deferred Amount), (iv) the aggregate amount actually paid
      in
      cash during such fiscal year on account of Permitted Acquisitions or Permitted
      Foreign Subsidiary Acquisitions (minus
      the sum
      of the principal amount of Indebtedness incurred in connection with such
      acquisitions and the amount of any such acquisitions financed with the proceeds
      of any Reinvestment Deferred Amount), (v) the aggregate amount of any Earn-Out
      Consideration actually paid in cash during such fiscal year on account of the
      Acquisitions or any Permitted Acquisition or any Permitted Foreign Subsidiary
      Acquisition, (vi) the aggregate amount of all optional prepayments of the Loans
      and any other Funded Debt during such fiscal year, (vii) the aggregate
      amount of all regularly scheduled principal payments of Funded Debt (including,
      without limitation, the Loans) of the Borrower and its Subsidiaries made during
      such fiscal year (other than in respect of any revolving credit facility to
      the
      extent there is not an equivalent permanent reduction in commitments thereunder)
      and (viii) the aggregate amount of the increase, if any, in prepaid advertising
      costs with respect to any Subsidiary during such fiscal year. 

     

    “Excess
      Cash Flow Application Date”:
      as
      defined in Section 2.7(c).

     

    “Excluded
      Foreign Subsidiary”:
      any
      Foreign Subsidiary in respect of which either (a) the pledge of all of the
      Capital Stock of such Subsidiary as Collateral or (b) the guaranteeing by
      such Subsidiary of the Obligations, would, in the good faith judgment of the
      Borrower, result in adverse tax consequences to the Borrower.

     

    “Excluded
      Taxes”:
      net
      income taxes and franchise taxes (imposed in lieu of net income taxes) imposed
      on the Administrative Agent or any Lender as a result of a present or former
      connection between the Administrative Agent or such Lender and the jurisdiction
      of the Governmental Authority imposing such tax or any political subdivision
      or
      taxing authority thereof or therein (other than any such connection arising
      solely from the Administrative Agent’s or such Lender’s having executed,
      delivered or performed its obligations or received a payment under, or enforced,
      this Agreement or any other Loan Document).

     

    “Existing
      Credit Agreement”:
      as
      defined in the recitals to this Agreement.

     

    “Existing
      Lender”:
      as
      defined in the recitals to this Agreement.

     

    “Facility”:
      as
      defined in the recitals to this Agreement.

     

    “Federal
      Funds Effective Rate”:
      for
      any day, the weighted average of the rates on overnight federal funds
      transactions with members of the Federal Reserve System arranged by federal
      funds brokers, as published on the next succeeding Business Day by the Federal
      Reserve Bank of New York, or, if such rate is not so published for any day
      that
      is a Business Day, the average of the quotations for the day of such
      transactions received by the Administrative Agent from three federal funds
      brokers of recognized standing selected by it.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Fee
      Letter”:
      that
      certain Fee Letter, dated March 5, 2007, by and between the Administrative
      Agent, the Borrower and Lehman Brothers Commercial Bank. 

     

    “Foreign
      Subsidiary”:
      any
      Subsidiary of the Borrower that is not a Domestic Subsidiary.

     

    “Funded
      Debt”:
      with
      respect to any Person, all Indebtedness of such Person of the types described
      in
      clauses (a) through (e) of the definition of “Indebtedness” in this
      Section 1.1.

     

    “Funding
      Office”:
      the
      office specified from time to time by the Administrative Agent as its funding
      office by notice to the Borrower and the Lenders.

     

    “GAAP”:
      generally accepted accounting principles in the United States of America as
      in
      effect from time to time.

     

    “Governmental
      Authority”:
      any
      nation or government, any state or other political subdivision thereof, any
      agency, authority, instrumentality, regulatory body, court, central bank or
      other entity exercising executive, legislative, judicial, taxing, regulatory
      or
      administrative functions of or pertaining to government, any securities exchange
      and any self-regulatory organization (including the National Association of
      Insurance Commissioners).

     

    “Guarantee
      and Collateral Agreement”:
      the
      Guarantee and Collateral Agreement executed and delivered by the Borrower and
      each Subsidiary Guarantor, substantially in the form of Exhibit A, as the
      same may be amended, supplemented or otherwise modified from time to
      time.

     

    “Guarantee
      Obligation”:
      as to
      any Person (the “guaranteeing
      person”),
      any
      obligation, including a reimbursement, counterindemnity or similar obligation,
      of the guaranteeing person that guarantees or in effect guarantees, or which
      is
      given to induce the creation of a separate obligation by another Person
      (including any bank under any letter of credit) that guarantees or in effect
      guarantees any Indebtedness, leases, dividends or other obligations (the
“primary
      obligations”)
      of any
      other third Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, including, without limitation, any
      obligation of the guaranteeing person, whether or not contingent, (i) to
      purchase any such primary obligation or any Property constituting direct or
      indirect security therefor, (ii) to advance or supply funds (1) for
      the purchase or payment of any such primary obligation or (2) to maintain
      working capital or equity capital of the primary obligor or otherwise to
      maintain the net worth or solvency of the primary obligor, (iii) to
      purchase Property, securities or services primarily for the purpose of assuring
      the owner of any such primary obligation of the ability of the primary obligor
      to make payment of such primary obligation or (iv) otherwise to assure or
      hold harmless the owner of any such primary obligation against loss in respect
      thereof; provided,
      however,
      that
      the term Guarantee Obligation shall not include endorsements of instruments
      for
      deposit or collection in the ordinary course of business. The amount of any
      Guarantee Obligation of any guaranteeing person shall be deemed to be the lower
      of (a) an amount equal to the stated or determinable amount of the primary
      obligation in respect of which such Guarantee Obligation is made and
      (b) the maximum amount for which such guaranteeing person may be liable
      pursuant to the terms of the instrument embodying such Guarantee Obligation,
      unless such primary obligation and the maximum amount for which such
      guaranteeing person may be liable are not stated or determinable, in which
      case
      the amount of such Guarantee Obligation shall be such guaranteeing person’s
      maximum reasonably anticipated liability in respect thereof as determined by
      the
      Borrower in good faith.

     

    “Hedge
      Agreements”:
      all
      interest rate or currency forwards, options, swaps, caps or collar agreements,
      foreign exchange agreements, commodity contracts or similar arrangements entered
      into by the Borrower or its Subsidiaries providing for protection against
      fluctuations in interest rates, currency exchange rates, commodity prices or
      the
      exchange of nominal interest obligations, either generally or under specific
      contingencies.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Increased
      Facility Activation Date”:
      any
      Business Day on which any Lender shall execute and deliver to the Administrative
      Agent an Increased Facility Activation Notice pursuant to Section 2.1(b).

     

    “Increased
      Facility Activation Notice”:
      a
      notice substantially in the form of Exhibit J.

     

    “Increased
      Facility Closing Date”:
      any
      Business Day designated as such in an Increased Facility Activation
      Notice.

     

    “Incremental
      Lenders”:
      (a) on
      any Increased Facility Activation Date relating to incremental Term Loans or
      Incremental Loans, the Lenders signatory to the relevant Increased Facility
      Activation Notice and (b) thereafter, each Lender that is a holder of an
      incremental Term Loan or Incremental Loan.

     

    “Incremental
      Loans”:
      as
      defined in Section 2.1(a)(ii).

     

    “Incremental
      Loan Maturity Date”:
      with
      respect to the Incremental Loans to be made pursuant to any Increased Facility
      Activation Notice, the maturity date specified in such Increased Facility
      Activation Notice, which date shall be on or after the Loan Maturity
      Date.

     

    “Indebtedness”:
      of any
      Person at any date, without duplication, (a) all indebtedness of such
      Person for borrowed money, (b) all obligations of such Person for the
      deferred purchase price of Property or services (other than trade payables
      incurred in the ordinary course of such Person’s business), (c) all
      obligations of such Person evidenced by notes, bonds, debentures or other
      similar instruments, (d) all indebtedness created or arising under any
      conditional sale or other title retention agreement with respect to Property
      acquired by such Person (even though the rights and remedies of the seller
      or
      lender under such agreement in the event of default are limited to repossession
      or sale of such Property), (e) all Capital Lease Obligations of such
      Person, (f) all obligations of such Person, contingent or otherwise, as an
      account party or applicant under acceptance, letter of credit, surety bond
      or
      similar facilities, (g) all obligations of such Person, contingent or
      otherwise, to purchase, redeem, retire or otherwise acquire for value any
      Capital Stock of such Person, (h) all obligations for any Earn-Out Consideration
      that is or is highly likely to be paid within the next twelve months (other
      than
      those obligations that are satisfied solely with Capital Stock of the Borrower
      and/or Unrestricted Cash and those obligations under the Acquisition
      Documentation), (i) all Guarantee Obligations of such Person in respect of
      obligations of the kind referred to in clauses (a) through (h) above,
      (j) all obligations of the kind referred to in clauses (a) through (i)
      above secured by (or for which the holder of such obligation has an existing
      right, contingent or otherwise, to be secured by) any Lien on Property
      (including, without limitation, accounts and contract rights) owned by such
      Person, whether or not such Person has assumed or become liable for the payment
      of such obligation and (k) for the purposes of Section 7(e)
      only,
      all obligations of such Person in respect of Hedge Agreements. The Indebtedness
      of any Person shall include, without duplication, the Indebtedness of any other
      entity (including any partnership in which such Person is a general partner)
      to
      the extent such Person is liable therefor as a result of such Person’s ownership
      interest in or other relationship with such entity, except to the extent the
      terms of such Indebtedness expressly provide that such Person is not liable
      therefor.

     

    “Indemnified
      Liabilities”:
      as
      defined in Section 9.5.

     

    “Indemnitee”:
      as
      defined in Section 9.5.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Initial
      Closing Date”:
      March
      30, 2007.

     

    “Insolvency”:
      with
      respect to any Multiemployer Plan, the condition that such Plan is insolvent
      within the meaning of Section 4245 of ERISA.

     

    “Insolvent”:
      pertaining to a condition of Insolvency.

     

    “Intellectual
      Property”:
      the
      collective reference to all rights, priorities and privileges relating to
      intellectual property, whether arising under United States, multinational or
      foreign laws or otherwise, including, without limitation, copyrights, copyright
      licenses, software, databases, patents, patent licenses, trademarks, trademark
      licenses, trademark applications, service marks, service mark licenses, service
      mark applications, trade names, brand names, domain names, mask works, mask
      work
      licenses, technology and related improvements, know-how and processes, trade
      secrets, all registrations and applications related to any of the above, and
      all
      rights to sue at law or in equity for any infringement or other impairment
      thereof, including the right to receive all proceeds and damages
      therefrom.

     

    “Interest
      Payment Date”:
      (a) as to any Base Rate Loan, the last day of each March, June, September
      and December to occur while such Loan is outstanding and the final maturity
      date
      of such Loan, (b) as to any Eurodollar Loan having an Interest Period of
      three months or shorter, the last day of such Interest Period, (c) as to
      any Eurodollar Loan having an Interest Period longer than three months, each
      day
      that is three months, or a whole multiple thereof, after the first day of such
      Interest Period and the last day of such Interest Period and (d) as to any
      Loan, the date of any repayment or prepayment made in respect
      thereof.

     

    “Interest
      Period”:
      as to
      any Eurodollar Loan, (a) initially, the period commencing on the borrowing
      or conversion date, as the case may be, with respect to such Eurodollar Loan
      and
      ending one, two, three or six or (if acceptable to all Lenders, as determined
      by
      such Lenders in their sole discretion) nine or twelve months thereafter, as
      selected by the Borrower in a Borrowing Notice or notice of conversion, as
      the
      case may be, given with respect thereto; and (b) thereafter, each period
      commencing on the last day of the next preceding Interest Period applicable
      to
      such Eurodollar Loan and ending one, two, three or six or (if acceptable to
      all
      Lenders, as determined by such Lenders in their sole discretion) nine or twelve
      months thereafter, as selected by the Borrower by irrevocable notice to the
      Administrative Agent not later than 11:00 A.M., New York City time, on the
      date
      that is three Business Days prior to the last day of the then current Interest
      Period with respect thereto; provided
      that,
      all of the foregoing provisions relating to Interest Periods are subject to
      the
      following:

     

    (1)  if
      any
      Interest Period would otherwise end on a day that is not a Business Day, such
      Interest Period shall be extended to the next succeeding Business Day unless
      the
      result of such extension would be to carry such Interest Period into another
      calendar month in which event such Interest Period shall end on the immediately
      preceding Business Day;

     

    (2)  in
      the
      case of Term Loans, any Interest Period that would otherwise extend beyond
      the
      Loan Maturity Date shall end on the Loan Maturity Date; 

     

    (3)  in
      the
      case of Incremental Loans, any Interest Period that would otherwise extend
      beyond the Incremental Loan Maturity Date shall end on the Incremental Loan
      Maturity Date; and

     

    (4)  any
      Interest Period that begins on the last Business Day of a calendar month (or
      on
      a day for which there is no numerically corresponding day in the calendar month
      at the end of such Interest Period) shall end on the last Business Day of the
      calendar month at the end of such Interest Period.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Investment”:
      as
      defined in Section 6.8.

     

    “Lehman
      Entity”:
      any of
      Lehman Commercial Paper Inc. or any of its Affiliates.

     

    “Lenders”:
      as
      defined in the preamble hereto.

     

    “Lien”:
      any
      mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
      lien (statutory or other), charge or other security interest or any preference,
      priority or other security agreement or preferential arrangement of any kind
      or
      nature whatsoever (including, without limitation, any conditional sale or other
      title retention agreement and any capital lease having substantially the same
      economic effect as any of the foregoing).

     

    “Loan”:
      any
      Term Loan and any Incremental Loan.

     

    “Loan
      Documents”:
      this
      Agreement, the Security Documents, the Fee Letter and any Notes.

     

    “Loan
      Maturity Date”:
      April
      30, 2013.

     

    “Loan
      Parties”:
      the
      Borrower and each Subsidiary of the Borrower that is a party to a Loan
      Document.

     

    “Loan
      Percentage”:
      (a) as
      to any Lender (other than an Incremental Lender) at any time, the percentage
      which such Lender’s Commitment then constitutes of the aggregate Commitments
      (or, at any time after the Initial Closing Date, the percentage which the
      aggregate principal amount of such Lender’s Term Loans then outstanding
      constitutes of the aggregate principal amount of the Term Loans then
      outstanding) and (b) as to any Incremental Lender at any time, the percentage
      which such Incremental Lender’s Commitment then constitutes of the aggregate
      Commitments.

     

    “Material
      Adverse Effect”:
      a
      material adverse effect on (a) the Acquisitions (to the extent not
      previously completed) or the Acquired Assets (taken as a whole), (b) the
      business, assets, property, operations, or condition (financial or otherwise)
      of
      the Borrower and its Subsidiaries taken as a whole or (c) the validity or
      enforceability of this Agreement or any of the other Loan Documents or the
      rights or remedies of the Administrative Agent or the Lenders hereunder or
      thereunder.

     

    “Materials
      of Environmental Concern”:
      any
      gasoline or petroleum (including crude oil or any fraction thereof) or petroleum
      products, polychlorinated biphenyls, urea-formaldehyde insulation, asbestos,
      pollutants, contaminants, radioactivity, and any other substances or forces
      of
      any kind, whether or not any such substance or force is defined as hazardous
      or
      toxic under any Environmental Law, that is regulated pursuant to or could give
      rise to liability under any Environmental Law.

     

    “Mortgages”:
      each
      of the mortgages and deeds of trust, if any, made by any Loan Party in favor
      of,
      or for the benefit of, the Administrative Agent for the benefit of the Secured
      Parties.

     

    “Multiemployer
      Plan”:
      a Plan
      that is a multiemployer plan as defined in Section 4001(a)(3) of
      ERISA.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Net
      Cash Proceeds”:
      (a) in connection with any Asset Sale or any Recovery Event, the proceeds
      thereof in the form of cash and Cash Equivalents (including any such proceeds
      received by way of deferred payment of principal pursuant to a note or
      installment receivable or purchase price adjustment receivable or otherwise,
      but
      only as and when received) of such Asset Sale or Recovery Event, net of
      attorneys’ fees, accountants’ fees, investment banking fees, amounts required to
      be applied to the repayment of Indebtedness secured by a Lien expressly
      permitted hereunder on any asset which is the subject of such Asset Sale or
      Recovery Event (other than any Lien pursuant to a Security Document) and other
      customary fees and expenses actually incurred in connection therewith and net
      of
      taxes paid or reasonably estimated to be payable as a result thereof (after
      taking into account any available tax credits or deductions and any tax sharing
      arrangements with respect to such Asset Sale or Recovery Event) and (b) in
      connection with any issuance or sale of debt securities or instruments or the
      incurrence of loans, the cash proceeds received from such issuance or
      incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees,
      underwriting discounts and commissions and other customary fees and expenses
      actually incurred in connection therewith.

     

    “New
      Lender”:
      as
      defined in Section 2.1(c).

     

    “New
      Lender Supplement”:
      as
      defined in Section 2.1(c).

     

    “Non-Excluded
      Taxes”:
      as
      defined in Section 2.15(a).

     

    “Non-U.S.
      Lender”:
      as
      defined in Section 2.15(d).

     

    “Note”:
      as
      defined in Section 2.4(e).

     

    “Obligations”:
      the
      unpaid principal of and interest on (including, without limitation, interest
      accruing after the maturity of the Loans and interest accruing after the filing
      of any petition in bankruptcy, or the commencement of any insolvency,
      reorganization or like proceeding, relating to the Borrower, whether or not
      a
      claim for post-filing or post-petition interest is allowed in such proceeding)
      the Loans and all other obligations and liabilities of the Borrower to the
      Administrative Agent or to any Lender or any Qualified Counterparty, whether
      direct or indirect, absolute or contingent, due or to become due, or now
      existing or hereafter incurred, which may arise under, out of, or in connection
      with, this Agreement, any other Loan Document, any Specified Hedge Agreement
      or
      any other document made, delivered or given in connection herewith or therewith,
      whether on account of principal, interest, reimbursement obligations, fees,
      indemnities, costs, expenses (including, without limitation, all fees, charges
      and disbursements of counsel to the Administrative Agent or to any Lender that
      are required to be paid by the Borrower pursuant hereto) or otherwise;
provided,
      that
      (i) obligations of the Borrower or any Subsidiary under any Specified Hedge
      Agreement shall be secured and guaranteed pursuant to the Security Documents
      only to the extent that, and for so long as, the other Obligations are so
      secured and guaranteed and (ii) any release of Collateral or Guarantors
      effected in the manner permitted by this Agreement shall not require the consent
      of holders of obligations under Specified Hedge Agreements.

     

    “OP”:
      Ocean
      Pacific Apparel Corp., a Delaware corporation.

     

    “Organizational
      Documents”:
      as to
      any Person, the certificate of incorporation and bylaws or other organizational
      or governing documents of such Person.

     

    “Other
      Taxes”:
      any
      and all present or future stamp or documentary taxes or any other excise or
      property taxes, charges or similar levies arising from any payment made
      hereunder or from the execution, delivery or enforcement of, or otherwise with
      respect to, this Agreement or any other Loan Document.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Participant”:
      as
      defined in Section 9.6(b).

     

    “Payment
      Office”:
      the
      office specified from time to time by the Administrative Agent as its payment
      office by notice to the Borrower and the Lenders.

     

    “PBGC”:
      the
      Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
      Title IV of ERISA (or any successor).

     

    “Permitted
      Acquisition”:
      (i) to
      the extent clause (ii) below is not satisfied, any acquisition (including,
      if
      applicable, in the case of any Intellectual Property, by way of license)
      approved by the Required Lenders or (ii) any acquisition of all or a majority
      controlling interest in the Capital Stock, or all or substantially all of the
      assets, of any Person, or of all or substantially all of the assets constituting
      a division, product line or business line of any Person, if such acquisition
      described in this clause (ii) complies with the following criteria:

     

    (a)  no
      Default or Event of Default shall be in effect immediately prior or after giving
      effect to such acquisition;

     

    (b)  such
      acquisition is consummated by a Wholly Owned Subsidiary Guarantor or the
      acquired Person or assets are sold, contributed, conveyed, assigned or otherwise
      transferred to a Wholly Owned Subsidiary Guarantor by the Borrower or the
      acquired Person shall become a direct Subsidiary of the Borrower and, in each
      case, the acquired Person shall become a Wholly Owned Subsidiary Guarantor
      and
      the acquired assets (including the Capital Stock of the acquired Person) shall
      be pledged as additional Collateral;

     

    (c)  after
      giving effect to the consummation of such acquisition and to the incurrence
      of
      any Indebtedness associated therewith, the Borrower shall be in pro forma
      compliance with Section 6.1;
      and

     

    (d)  prior
      to
      the consummation of such acquisition (i) the Administrative Agent shall have
      received the historical financial statements for the most recently completed
      fiscal year and any subsequently completed fiscal quarter and the then current
      financial projections in respect of the Person, division, product line or line
      of business acquired in such acquisition for the one-year period following
      the
      consummation of such acquisition, (ii) the Administrative Agent shall have
      received the then current drafts of the documentation to be executed in
      connection with such acquisition (with final copies of such documentation to
      be
      delivered to the Administrative Agent promptly upon becoming available),
      including all schedules and exhibits thereto and (iii) the Administrative Agent
      shall have received notice of the closing date for such acquisition;
provided
      that the
      foregoing financial statements, documentation and notice shall not be required
      to be given if doing so (x) would materially interfere with, or would cause
      materially adverse economic consequences with respect to, the consummation
      of
      such acquisition or (y) is prohibited by any Requirement of Law (other than
      the
      Organizational Documents of the Borrower or a Subsidiary).

     

    “Permitted
      Acquisition Transactions”:
      the
      collective reference to Permitted Acquisitions, Permitted Foreign Subsidiary
      Acquisitions, Permitted Securitization Transactions and Permitted Unrestricted
      Subsidiary Acquisitions.

     

    “Permitted
      Convertible Notes Offering”:
      the
      collective reference to (a) any offering by the Borrower after the Initial
      Closing Date of convertible senior subordinated or subordinated notes,
provided
      that
      such notes are Permitted Subordinated Indebtedness, and (b) any offering by
      an
      Unrestricted Subsidiary after the Initial Closing Date of convertible senior,
      senior subordinated or subordinated notes that is guaranteed by the Borrower,
      provided
      that
      such guarantee is Permitted Subordinated Indebtedness.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    “Permitted
      Foreign Subsidiary Acquisition”:
      any
      acquisition of all or a majority controlling interest in the Capital Stock,
      or
      all or substantially all of the assets, of any Person, or of all or
      substantially all of the assets constituting a division, product line or
      business line of any Person, if such acquisition complies with the following
      criteria:

     

    (a)  no
      Default or Event of Default shall be in effect immediately prior or after giving
      effect to such acquisition;

     

    (b)  such
      acquisition is funded solely with Capital Stock of the Borrower, the Net Cash
      Proceeds of a Permitted Convertible Notes Offering and/or Unrestricted
      Cash;

     

    (c)  the
      acquired Person will become (after giving effect to such acquisition) a Directly
      Owned Foreign Subsidiary or the acquired assets are sold, contributed, conveyed,
      assigned or otherwise transferred to a Directly Owned Foreign Subsidiary by
      the
      Borrower and, in each case, 65% of the total outstanding Capital Stock of such
      Directly Owned Foreign Subsidiary shall be pledged as additional
      Collateral;

     

    (d)  such
      Directly Owned Foreign Subsidiary shall not create, incur, assume or suffer
      to
      exist (i) any Indebtedness and (ii) any Lien upon any of its Property, whether
      now owned or hereafter acquired;

     

    (e)  after
      giving effect to the consummation of such acquisition and to the incurrence
      of
      any Indebtedness associated therewith, the Borrower shall be in pro forma
      compliance with Section 6.1; and

     

    (f)  prior
      to
      the consummation of such acquisition (i) the Administrative Agent shall have
      received the historical financial statements for the most recently completed
      fiscal year and any subsequently completed fiscal quarter and the then current
      financial projections in respect of the Person, division, product line or line
      of business acquired in such acquisition for the one-year period following
      the
      consummation of such acquisition, (ii) the Administrative Agent shall have
      received the then current drafts of the documentation to be executed in
      connection with such acquisition (with final copies of such documentation to
      be
      delivered to the Administrative Agent promptly upon becoming available),
      including all schedules and exhibits thereto and (iii) the Administrative Agent
      shall have received notice of the closing date for such acquisition; provided
      that the foregoing financial statements, documentation and notice shall not
      be
      required to be given if doing so (x) would materially interfere with, or would
      cause materially adverse economic consequences with respect to, the consummation
      of such acquisition or (y) is prohibited by any Requirement of Law (other than
      the Organizational Documents of the Borrower or a Subsidiary).

     

    “Permitted
      Securitization Transaction”:
      any
      transaction or series of transactions that may be entered into by the Borrower
      pursuant to which the Borrower may sell, contribute, convey, assign or otherwise
      transfer to an Unrestricted Subsidiary any assets (other than cash or Cash
      Equivalents) (whether now existing or acquired in the future) of the Borrower
      that (a) have been acquired solely with Capital Stock of the Borrower and/or
      Unrestricted Cash and (b) are customarily sold, contributed, conveyed, assigned
      or otherwise transferred in connection with asset securitization transactions
      similar to the Permitted Securitization Transaction entered into; provided
      that
      such transaction or series of transactions meets the following conditions:
      (i)
      all sales, contributions, transfers or other conveyances of assets to the
      Unrestricted Subsidiary are made at fair market value (as determined in good
      faith by the Borrower), (ii) the financing terms, covenants, termination events
      and other provisions thereof shall be market terms (as determined in good faith
      by the Borrower) and may include Standard Repurchase Obligations and (iii)
      no
      portion of the obligations under the Permitted Securitization Transaction
      (contingent or otherwise) will (x) be incurred or guaranteed by the Borrower
      or
      any Subsidiary (except for Standard Repurchase Obligations), (y) be recourse
      to
      the Borrower or any Subsidiary, other than pursuant to Standard Repurchase
      Obligations or (z) subject any property or asset of the Borrower or any
      Subsidiary, directly or indirectly, contingently or otherwise, to the
      satisfaction thereof, other than pursuant to Standard Repurchase
      Obligations.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    “Permitted
      Subordinated Indebtedness”:
      as
      defined in Section 6.2(g).

     

    “Permitted
      Unrestricted Subsidiary Acquisition”:
      any
      acquisition of all or a majority controlling interest in the Capital Stock,
      or
      all or substantially all of the assets, of any Person, or of all or
      substantially all of the assets constituting a division, product line or
      business line of any Person, if such acquisition complies with the following
      criteria:

     

    (a)
      such
      acquisition is funded solely with Capital Stock of the Borrower, Unrestricted
      Cash and/or Restricted Cash (provided
      that the
      aggregate amount of any Restricted Cash used to fund a Permitted Unrestricted
      Subsidiary Acquisition, together with any Guarantee Obligations of the Borrower
      incurred pursuant to Section 6.2(f) and any Investment made pursuant to Section
      6.8(k), shall not exceed $30,000,000 plus the Retained Excess Cash Flow Amount
      during the term of this Agreement); and

     

    (b)
      the
      acquired Person or assets are sold, contributed, conveyed, assigned or otherwise
      transferred to an Unrestricted Subsidiary by the Borrower or the acquired Person
      shall become a direct Subsidiary of the Borrower without recourse to the
      Borrower or any Subsidiary (other than Standard Repurchase
      Obligations).

     

    “Person”:
      an
      individual, partnership, corporation, limited liability company, business trust,
      joint stock company, trust, unincorporated association, joint venture,
      Governmental Authority or other entity of whatever nature.

     

    “Plan”:
      at a
      particular time, any employee benefit plan that is covered by ERISA and in
      respect of which the Borrower or a Commonly Controlled Entity is (or, if such
      plan were terminated at such time, would under Section 4069 of ERISA be
      deemed to be) an “employer” as defined in Section 3(5) of
      ERISA.

     

    “Pro
      Forma Balance Sheet”:
      as
      defined in Section 3.1(a).

     

    “Property”:
      any
      right or interest in or to property of any kind whatsoever, whether real,
      personal or mixed and whether tangible or intangible, including, without
      limitation, Capital Stock.

     

    “Qualified
      Counterparty”:
      with
      respect to any Specified Hedge Agreement, any counterparty thereto that, at
      the
      time such Specified Hedge Agreement was entered into, was a Lender or an
      Affiliate of a Lender.

     

    “Recovery
      Event”:
      any
      settlement of or payment equal to or greater than $2,000,000 in respect of
      any
      property or casualty insurance claim or any condemnation proceeding relating
      to
      any Property of the Borrower or any of its Subsidiaries if such Property is
      or
      is required to become Collateral.

     

    “Register”:
      as
      defined in Section 9.6(d).

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    “Regulation
      U”:
      Regulation U of the Board as in effect from time to time.

     

    “Reinvestment
      Deferred Amount”:
      with
      respect to any Reinvestment Event, the aggregate Net Cash Proceeds received
      by
      the Borrower or any of its Subsidiaries in connection therewith that are not
      applied to prepay the Loans pursuant to Section 2.7(b)
      as a
      result of the delivery of a Reinvestment Notice.

     

    “Reinvestment
      Event”:
      any
      Asset Sale, or Recovery Event in respect of which the Borrower has delivered
      a
      Reinvestment Notice.

     

    “Reinvestment
      Notice”:
      a
      written notice executed by a Responsible Officer stating that no Default or
      Event of Default has occurred and is continuing and that the Borrower or a
      Wholly Owned Subsidiary Guarantor intends and expects to use all or a specified
      portion of the Net Cash Proceeds of an Asset Sale or Recovery Event to acquire
      or repair assets useful in its business.

     

    “Reinvestment
      Prepayment Amount”:
      with
      respect to any Reinvestment Event, the Reinvestment Deferred Amount relating
      thereto less
      any
      amount expended prior to the relevant Reinvestment Prepayment Date to acquire
      or
      repair assets useful in the business of the Borrower or of any
      Subsidiary.

     

    “Reinvestment
      Prepayment Date”:
      with
      respect to any Reinvestment Event, the earlier of (a) the date occurring
      one year after such Reinvestment Event and (b) the date on which the
      Borrower or any Subsidiary shall have determined not to, or shall have otherwise
      ceased to, acquire or repair assets useful in the business of the Borrower
      or of
      any Subsidiary with all or any portion of the relevant Reinvestment Deferred
      Amount.

     

    “Related
      Fund”:
      with
      respect to any Lender, any fund that (x) invests in commercial loans and
      (y) is managed or advised by the same investment advisor as such Lender, by
      such Lender or an Affiliate of such Lender.

     

    “Reorganization”:
      with
      respect to any Multiemployer Plan, the condition that such plan is in
      reorganization within the meaning of Section 4241 of ERISA.

     

    “Replevin
      Bond”:
      that
      certain replevin bond, dated as of September 14, 2006, posted by the Borrower
      in
      connection with the Unzipped Litigation.

     

    “Reportable
      Event”:
      any of
      the events set forth in Section 4043(c) of ERISA, other than those events
      as to which the thirty day notice period is waived under subsections .27,
      .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

     

    “Required
      Lenders”:
      at any
      time, the holders of more than 50% of (a) until the Initial Closing Date,
      the Commitments and (b) thereafter, the aggregate unpaid principal amount
      of the Loans then outstanding.

     

    “Requirement
      of Law”:
      as to
      any Person, the Organizational Documents of such Person, and any law, treaty,
      rule or regulation or determination of an arbitrator or a court or other
      Governmental Authority, in each case applicable to or binding upon such Person
      or any of its Property or to which such Person or any of its Property is
      subject.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    “Responsible
      Officer”:
      the
      chief executive officer, president, chief financial officer or general counsel
      of the Borrower, but in any event, with respect to financial matters, the chief
      financial officer of the Borrower.

     

    “Restricted
      Cash”:
      for
      any fiscal quarter of the Subsidiaries, the result of, without duplication,
      (a)
      Excess Cash Flow (calculated on a quarterly basis) for such fiscal quarter,
      minus
      (b) the
      amount of such Excess Cash Flow actually used during such fiscal quarter to
      prepay the Loans pursuant to Section 2.7(c), minus
      (c) to
      the extent not already included in the calculation of Excess Cash Flow, the
      amount of such Excess Cash Flow actually used during such fiscal quarter for
      any
      other purpose permitted by this Agreement, plus
      (d) the
      aggregate amount of Net Cash Proceeds of any Indebtedness incurred by the
      Borrower or its Subsidiaries during such fiscal quarter, plus
      (e) the
      aggregate amount of Net Cash Proceeds of any Permitted Convertible Notes
      Offering during such fiscal quarter, minus
      (f) the
      aggregate amount of such Net Cash Proceeds described in clauses (d) and (e)
      hereof actually paid during such fiscal quarter on account of Permitted
      Acquisitions or Permitted Foreign Subsidiary Acquisitions, minus
      (g) the
      aggregate amount of such Net Cash Proceeds described in clauses (d) and (e)
      hereof actually paid during such fiscal quarter on account of hedge and warrant
      option transactions in connection with a Permitted Convertible Notes Offering,
      minus
      (h) the
      aggregate amount of such Net Cash Proceeds described in clauses (d) and (e)
      hereof actually used during such fiscal quarter for any other purpose permitted
      by this Agreement, plus
      (i) the
      aggregate amount of any Restricted Cash from a prior period.

     

    “Restricted
      Payments”:
      as
      defined in Section 6.6.

     

    “Restricted
      Subsidiary”:
      each
      of Studio IP Holdings LLC, Studio Holdings and Management Corporation, OP
      Holdings LLC, OP Holdings and Management Corporation, each of their direct
      or
      indirect Subsidiaries formed or acquired after the Initial Closing Date and
      any
      direct or indirect Subsidiary of the Borrower formed or acquired after the
      Initial Closing Date (other than a direct or indirect Subsidiary of Studio
      IP
      Holdings LLC, Studio Holdings and Management Corporation, OP Holdings LLC or
      OP
      Holdings and Management Corporation) designated by the board of directors of
      the
      Borrower as a Restricted Subsidiary. The board of directors of the Borrower
      may
      at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary
      or any Restricted Subsidiary (other than any Restricted Subsidiary existing
      on
      the Initial Closing Date and any Subsidiary of a Restricted Subsidiary) to
      be an
      Unrestricted Subsidiary; provided
      that
      such designation shall only be permitted if no Default or Event of Default
      would
      be in existence following such designation and the Borrower would be in
      compliance with Section 6.1
      on the
      date of such designation after giving pro forma
      effect
      to such designation; provided,
      further,
      that
      the Borrower may subsequently redesignate any such Unrestricted Subsidiary
      as a
      Restricted Subsidiary so long as the Borrower does not subsequently re-designate
      such Restricted Subsidiary as an Unrestricted Subsidiary for a period of the
      succeeding four fiscal quarters.

     

    “Retained
      Excess Cash Flow Amount”:
      at any
      time of determination, an amount equal to the excess, if any, of (a) the
      aggregate amount of Excess Cash Flow for all fiscal years commencing with the
      fiscal year ending on December 31, 2007 that is not required to be used to
      prepay the Loans pursuant to Section 2.7(c)
      over (b)
      the sum of (x) the sum, in excess of $30,000,000, of (i) the aggregate amount
      of
      Guarantee Obligations of the Borrower incurred pursuant to Section 6.2(f),
      (ii)
      the aggregate amount (valued at cost) of Investments made after the Initial
      Closing Date pursuant to Section 6.8(k)
      and
      (iii) the aggregate amount of Restricted Cash used to fund a Permitted
      Unrestricted Subsidiary Acquisition and (y) the aggregate amount of Restricted
      Payments made after the Initial Closing Date pursuant to Section 6.6(c) in
      excess of $5,000,000.

     

    “Rocawear
      Acquisition”:
      as
      defined in the recitals to this Agreement.

     

    “Rocawear
      Acquisition Agreement”:
      as
      defined in the recitals to this Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    “Rocawear
      Joint Venture Agreement”:
      that
      certain joint venture agreement, dated as of March 30, 2007, by and between
      the
      Borrower and Shawn Carter, as amended, supplemented or otherwise modified from
      time to time.

     

    “Rocawear
      License Agreement”:
      that
      certain License Agreement, dated as of March 30, 2007, between Roc Apparel,
      LLC
      and Studio IP Holdings LLC, as amended, supplemented or otherwise modified
      from
      time to time.

     

    “SEC”:
      the
      Securities and Exchange Commission (or successors thereto or an analogous
      Governmental Authority).

     

    “Secured
      Parties”:
      as
      defined in the Guarantee and Collateral Agreement.

     

    “Security
      Documents”:
      the
      collective reference to the Guarantee and Collateral Agreement, the Mortgages
      (if any) and all other security documents hereafter delivered to the
      Administrative Agent granting a Lien on any Property of any Person to secure
      the
      obligations and liabilities of any Loan Party under any Loan
      Document.

     

    “Sellers”:
      as
      defined in the recitals to this Agreement.

     

    “Single
      Employer Plan”:
      any
      Plan that is covered by Title IV of ERISA, but which is not a Multiemployer
      Plan.

     

    “Solvent”:
      with
      respect to any Person, as of any date of determination, (a) the amount of
      the “present fair saleable value” of the assets of such Person will, as of such
      date, exceed the amount of all “liabilities of such Person, contingent or
      otherwise”, as of such date, as such quoted terms are determined in accordance
      with applicable federal and state laws governing determinations of the
      insolvency of debtors, (b) the present fair saleable value of the assets of
      such Person will, as of such date, be greater than the amount that will be
      required to pay the liability of such Person on its debts as such debts become
      absolute and matured, (c) such Person will not have, as of such date, an
      unreasonably small amount of capital with which to conduct its business, and
      (d) such Person will be able to pay its debts as they mature. For purposes
      of this definition, (i) “debt” means liability on a “claim”, and
      (ii) “claim” means any (x) right to payment, whether or not such a
      right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
      matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured
      or (y) right to an equitable remedy for breach of performance if such
      breach gives rise to a right to payment, whether or not such right to an
      equitable remedy is reduced to judgment, fixed, contingent, matured or
      unmatured, disputed, undisputed, secured or unsecured.

     

    “Specified
      Change of Control”:
      a
“change of control” or “fundamental change” (or any other defined term having a
      similar purpose), as defined in any indenture or other instrument governing
      any
      Permitted Subordinated Indebtedness.

     

    “Specified
      Hedge Agreement”:
      any
      Hedge Agreement entered into by the Borrower or any Subsidiary Guarantor and
      any
      Qualified Counterparty.

     

    “Specified
      License Agreement”:
      collectively, the Rocawear License Agreement and the Wal-Mart License Agreement
      and any replacement contract thereunder whether or not with the same or
      different parties.

     

    “Standard
      Repurchase Obligation”:
      any
      obligation of the Borrower to repurchase the assets it sold or otherwise
      transferred under a Permitted Securitization Transaction or a Permitted
      Unrestricted Subsidiary Acquisition as a result of a breach of a representation,
      warranty or covenant regarding such assets that the Borrower has determined
      in
      good faith to be customary for such Permitted Securitization Transaction or
      such
      Permitted Unrestricted Subsidiary Acquisition.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    “Subsidiaries’
      Financial Information”:
      with
      respect to the Subsidiaries for any fiscal year, a report in substantially
      the
      form of, and containing the information set forth in, Exhibit L attached hereto,
      together with such other information as the Administrative Agent may reasonably
      request.

     

    “Subsidiary”:
      as to
      any Person, a corporation, partnership, limited liability company or other
      entity of which shares of stock or other ownership interests having ordinary
      voting power (other than stock or such other ownership interests having such
      power only by reason of the happening of a contingency) to elect a majority
      of
      the board of directors or other managers of such corporation, partnership or
      other entity are at the time owned, or the management of which is otherwise
      controlled, directly or indirectly through one or more intermediaries, or both,
      by such Person. Unless otherwise qualified, (a) all references to a “Subsidiary”
or to “Subsidiaries” in this Agreement shall refer to a Restricted Subsidiary or
      Restricted Subsidiaries of the Borrower and (b) no Unrestricted Subsidiary
      shall
      be a “Subsidiary” of the Borrower for any purpose under this
      Agreement.

     

    “Subsidiary
      Guarantor”:
      each
      Subsidiary of the Borrower that is a party to the Guarantee and Collateral
      Agreement.

     

    “Syndication
      Agent”:
      as
      defined in the preamble hereto.

     

    “Term
      Loan”:
      as
      defined in Section 2.1(a)(i).

     

    “Total
      Leverage Ratio”:
      as of
      the last day of any period of four consecutive fiscal quarters, the ratio of
      (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA of
      the Borrower and its Subsidiaries for such period.

     

    “Transferee”:
      as
      defined in Section 9.14.

     

    “Type”:
      as to
      any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

     

    “United
      States”
and
      “U.S.”:
      the
      United States of America.

     

    “Unrestricted
      Cash”:
      the
      result of (a) all cash and Cash Equivalents of the Borrower and its Restricted
      Subsidiaries and Unrestricted Subsidiaries on a consolidated basis minus
      (b) all
      Restricted Cash.

     

    “Unrestricted
      Subsidiary”:
      any
      Subsidiary of the Borrower that is not a Restricted Subsidiary.

     

    “Unzipped
      Litigation”:
      Unzipped Apparel, LLC et al. vs. Sweet Sportswear, LLC et al., Case No.
      BC319612, filed with the Superior Court of the State of California for the
      County of Los Angeles.

     

    “Wal-Mart
      License Agreement”:
      that
      certain letter agreement, dated as of January 9, 2004, between Danskin Now,
      Inc.
      and Wal-Mart Stores, Inc., as amended, supplemented or otherwise modified from
      time to time.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    “Wholly
      Owned Subsidiary”:
      as to
      any Person, any other Person all of the Capital Stock of which (other than
      directors’ qualifying shares required by law) is owned directly or indirectly by
      such Person.

     

    “Wholly
      Owned Subsidiary Guarantor”:
      any
      Subsidiary Guarantor that is a Wholly Owned Subsidiary of the
      Borrower.

     

    1.2  Other
      Definitional Provisions.
      (a)
      Unless
      otherwise specified therein, all terms defined in this Agreement shall have
      the
      defined meanings when used in the other Loan Documents or any certificate or
      other document made or delivered pursuant hereto or thereto.

     

    (b)  As
      used
      herein and in the other Loan Documents, and any certificate or other document
      made or delivered pursuant hereto or thereto, accounting terms relating to
      the
      Borrower and its Subsidiaries not defined in Section 1.1
      and
      accounting terms partly defined in Section 1.1,
      to the
      extent not defined, shall have the respective meanings given to them under
      GAAP.

     

    (c)  The
      words
“hereof”, “herein” and “hereunder” and words of similar import when used in this
      Agreement shall refer to this Agreement as a whole and not to any particular
      provision of this Agreement, and Section, Schedule and Exhibit references are
      to
      this Agreement unless otherwise specified.

     

    (d)  The
      meanings given to terms defined herein shall be equally applicable to both
      the
      singular and plural forms of such terms.

     

    (e)  All
      calculations of the Total Leverage Ratio shall be calculated to the same number
      of decimal places as the relevant ratios are expressed in and shall be rounded
      upward if the number in the decimal place immediately following the last
      calculated decimal place is five or greater. For example, if the relevant ratio
      is to be calculated to the hundredth decimal place and the calculation of the
      ratio is 5.126, the ratio will be rounded up to 5.13.

     

    SECTION 2.  AMOUNT
      AND TERMS OF COMMITMENTS

     

    2.1  Commitments. (a)
      Subject
      to the terms and conditions hereof, (i) the Existing Lender made a loan (the
      “Term
      Loan”)
      to the
      Borrower on the Initial Closing Date in an amount of $212,500,000 and (ii)
      the
      Incremental Lenders severally agree to make one or more term loans (each an
      “Incremental
      Loan”)
      to the
      Borrower to the extent provided in Section 2.1(b).
      The
      Loans may from time to time be Eurodollar Loans or Base Rate Loans, as
      determined by the Borrower and notified to the Administrative Agent in
      accordance with Sections 2.2
      and 2.8.

     

    (b)  The
      Borrower and any one or more Lenders (including New Lenders) may from time
      to
      time agree that such Lenders shall make, obtain or increase the amount of their
      Term Loans or Incremental Loans, as applicable, by executing and delivering
      to
      the Administrative Agent an Increased Facility Activation Notice specifying
      (i)
      the amount of such increase, (ii) the applicable Increased Facility Closing
      Date
      and (iii) in the case of Incremental Loans, (x) the applicable Incremental
      Loan
      Maturity Date, (y) the amortization schedule for such Incremental Loans, which
      shall comply with Section 2.3,
      and (z)
      the Applicable Margin for such Incremental Loans; provided
      that,
      (A) after giving pro forma
      effect
      to the making of any such Loans, the Borrower shall be in compliance with the
      covenant contained in Section 6.1,
      (B) no
      Default or Event of Default has occurred and is continuing or would result
      after
      giving effect to the making of such Loans or the application of the proceeds
      therefrom, (C) the aggregate amount of borrowings of incremental Term Loans
      or
      Incremental Loans pursuant to this Section 2.1(b)
      shall
      not exceed an amount equal to $100,000,000, (D) each borrowing of incremental
      Term Loans or Incremental Loans pursuant to this Section 2.1(b)
      shall be
      in a minimum amount of at least $25,000,000 and (E) no more than four Increased
      Facility Closing Dates may be selected by the Borrower after the Initial Closing
      Date. No Lender shall have any obligation to participate in any increase
      described in this paragraph unless it agrees to do so in its sole discretion.
      The Incremental Loans shall rank pari passu
      in right
      of payment and of security with the Term Loans and, except with regard to
      pricing and as set forth above, shall be treated substantially the same as
      or
      less favorably than the Term Loans (including with respect to mandatory and
      voluntary prepayments and voting rights). Commitments in respect of Incremental
      Loans shall be Commitments under this Agreement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (c)  Any
      additional bank, financial institution or other entity which, with the consent
      of the Borrower and the Administrative Agent (which consent shall not be
      unreasonably withheld), elects to become a “Lender” under this Agreement in
      connection with any transaction described in Section 2.1(b)
      shall
      execute a New Lender Supplement (each, a “New
      Lender Supplement”),
      substantially in the form of Exhibit K, whereupon such bank, financial
      institution or other entity (a “New
      Lender”)
      shall
      become a Lender for all purposes and to the same extent as if originally a
      party
      hereto and shall be bound by and entitled to the benefits of this
      Agreement.

     

    2.2  Procedure
      for Borrowing.     (a)
      [RESERVED].

     

    (b)  The
      Borrower shall deliver to the Administrative Agent a Borrowing Notice (which
      Borrowing Notice must be received by the Administrative Agent prior to
      10:00 A.M., New York City time, one Business Day prior to the anticipated
      Increased Facility Closing Date) requesting that the Incremental Lenders make
      the incremental Term Loans or Incremental Loans, as applicable, on such
      Increased Facility Closing Date. Upon receipt of such Borrowing Notice the
      Administrative Agent shall promptly notify each Incremental Lender thereof.
      Not
      later than 12:00 Noon, New York City time, on the Borrowing Date each
      Incremental Lender shall make available to the Administrative Agent at the
      Funding Office an amount in immediately available funds equal to the incremental
      Term Loans or Incremental Loans, as applicable, to be made by such Incremental
      Lender. Not later than 1:00 P.M., New York City time, on the Borrowing Date
      the Administrative Agent shall make available to the Borrower the aggregate
      of
      the amounts made available to the Administrative Agent by the Incremental
      Lenders, in like funds as received by the Administrative Agent.

     

    2.3  Repayment
      of Loans.
      (a)
      The Term
      Loan of each Lender shall mature in 24 consecutive quarterly installments,
      commencing on June 30, 2007 each of which shall be in an amount equal to such
      Lender’s Loan Percentage multiplied the amount set forth below opposite such
      installment, as each such amount may be adjusted by the application of Section
      2.13(b) thereto.

     

    
      	
              Installment

            	 	
              Quarterly
                Payment

            
	
              June
                30, 2007

            	 	
              $

            	
              531,250

            
	
              September
                30, 2007

            	 	 	
              531,250

            
	
              December
                31, 2007 

            	 	 	
              531,250

            
	
              March
                31, 2008

            	 	 	
              531,250

            
	
              June
                30, 2008

            	 	 	
              531,250

            
	
              September
                30, 2008

            	 	 	
              531,250

            
	
              December
                31, 2008 

            	 	 	
              531,250

            
	
              March
                31, 2009

            	 	 	
              531,250

            
	
              June
                30, 2009

            	 	 	
              531,250

            
	
              September
                30, 2009

            	 	 	
              531,250

            
	
              December
                31, 2009 

            	 	 	
              531,250

            
	
              March
                31, 2010

            	 	 	
              531,250

            
	
              June
                30, 2010

            	 	 	
              531,250

            
	
              September
                30, 2010

            	 	 	
              531,250

            
	
              December
                31, 2010 

            	 	 	
              531,250

            
	
              March
                31, 2011

            	 	 	
              531,250

            
	
              June
                30, 2011

            	 	 	
              531,250

            
	
              September
                30, 2011

            	 	 	
              531,250

            
	
              December
                31, 2011 

            	 	 	
              531,250

            
	
              March
                31, 2012

            	 	 	
              531,250

            
	
              June
                30, 2012

            	 	 	
              531,250

            
	
              September
                30, 2012

            	 	 	
              531,250

            
	
              December
                31, 2012 

            	 	 	
              531,250

            
	
              Loan
                Maturity Date

            	 	
              $

            	
              200,281,250

            

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Incremental Loans of each Incremental Lender shall mature in consecutive
      installments (which shall be no more frequent than quarterly) as specified
      in
      the Increased Facility Activation Notice pursuant to which such Incremental
      Loans were made, provided
      that,
      (i) such Incremental Loans shall not amortize more rapidly, on a percentage
      basis, than the Term Loans and (ii) such Incremental Loans shall not finally
      mature prior to the Loan Maturity Date.

     

    2.4  Repayment
      of Loans; Evidence of Debt.
      (a)
      The
      Borrower hereby unconditionally promises to pay to the Administrative Agent
      for
      the account of the appropriate Lender (i) the outstanding principal amount
      of
      the Term Loan of such Lender on the Loan Maturity Date (or on such earlier
      date
      on which the Term Loans become due and payable pursuant to Section 7)
      and
      (ii) the outstanding principal amount of the Incremental Loan of such Lender
      on
      the relevant Incremental Loan Maturity Date (or on such earlier date on which
      the Incremental Loans become due and payable pursuant to Section 7).
      The
      Borrower hereby further agrees to pay interest on the unpaid principal amount
      of
      the Loans from time to time outstanding from the Initial Closing Date until
      payment in full thereof at the rates per annum, and on the dates, set forth
      in
      Section 2.10.
      

     

    (b)  Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing indebtedness of the Borrower to such Lender resulting from
      the Loan of such Lender, including the amounts of principal and interest payable
      and paid to such Lender from time to time under this Agreement.

     

    (c)  The
      Administrative Agent, on behalf of the Borrower, shall maintain the Register
      pursuant to Section 9.6(d),
      and a
      subaccount therein for each Lender, in which shall be recorded (i) the
      amount of each Loan made hereunder and any Note evidencing such Loan, the Type
      of such Loan and each Interest Period applicable thereto, (ii) the amount
      of any principal or interest due and payable or to become due and payable from
      the Borrower to each Lender hereunder and (iii) both the amount of any sum
      received by the Administrative Agent hereunder from the Borrower and each
      Lender’s share thereof.

     

    (d)  The
      entries made in the Register and the accounts of each Lender maintained pursuant
      to Section 2.4(b)
      shall,
      to the extent permitted by applicable law, be prima facie
      evidence
      of the existence and amounts of the obligations of the Borrower therein
      recorded; provided,
      however,
      that
      the failure of any Lender or the Administrative Agent to maintain the Register
      or any such account, or any error therein, shall not in any manner affect the
      obligation of the Borrower to repay (with applicable interest) the Loan made
      to
      the Borrower by such Lender in accordance with the terms of this
      Agreement.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (e)  The
      Borrower agrees that, upon the request to the Administrative Agent by any
      Lender, the Borrower will promptly execute and deliver to such Lender a
      promissory note of the Borrower evidencing the Loan of such Lender,
      substantially in the form of Exhibit F (a “Note”),
      with
      appropriate insertions as to date and principal amount.

     

    2.5  Fees,
      etc.
      The
      Borrower agrees to pay to the Administrative Agent the fees in the amounts
      and
      on the dates from time to time agreed to in writing by the Borrower and the
      Administrative Agent.

     

    2.6  Optional
      Prepayments.
      The
      Borrower may at any time and from time to time prepay the Loans, in whole or
      in
      part, without premium or penalty, upon irrevocable notice delivered to the
      Administrative Agent no later than 11:00 A.M., New York City time, three
      Business Days prior thereto in the case of Eurodollar Loans and no later than
      11:00 A.M., New York City time, one Business Day prior thereto in the case
      of
      Base Rate Loans, which notice shall specify the date and amount of such
      prepayment and whether such prepayment is of Eurodollar Loans or Base Rate
      Loans; provided,
      that if
      a Eurodollar Loan is prepaid on any day other than the last day of the Interest
      Period applicable thereto, the Borrower shall also pay any amounts owing
      pursuant to Section 2.16.
      Upon
      receipt of any such notice the Administrative Agent shall promptly notify each
      relevant Lender thereof. If any such notice is given, the amount specified
      in
      such notice shall be due and payable on the date specified therein, together
      with accrued interest to such date on the amount prepaid. Partial prepayments
      of
      Loans shall be in an aggregate principal amount of $1,000,000 or a whole
      multiple thereof.

     

    2.7  Mandatory
      Prepayments.
      (a)
      Unless
      the Required Lenders shall otherwise agree, if any Indebtedness shall be
      incurred by the Borrower or any of its Subsidiaries (excluding any Indebtedness
      permitted to be incurred under Section 6.2),
      then
      on the date of such incurrence, the Loans shall be prepaid, by an amount equal
      to the amount of the Net Cash Proceeds of such incurrence. The provisions of
      this Section 2.7(a) do not constitute a consent to the incurrence of any
      Indebtedness by the Borrower or any of its Subsidiaries.

     

    (b)  Unless
      the Required Lenders shall otherwise agree, if on any date the Borrower or
      any
      of its Subsidiaries shall receive Net Cash Proceeds from any Asset Sale or
      Recovery Event then, unless a Reinvestment Notice shall be delivered in respect
      thereof on or prior to the date of such Asset Sale or Recovery Event, on the
      date of receipt by the Borrower or such Subsidiary of such Net Cash Proceeds,
      the Loans shall be prepaid, by an amount equal to the amount of such Net Cash
      Proceeds; provided,
      that,
      notwithstanding the foregoing, on each Reinvestment Prepayment Date the Loans
      shall be prepaid, by an amount equal to the Reinvestment Prepayment Amount
      with
      respect to the relevant Reinvestment Event. The provisions of this Section
      do
      not constitute a consent to the consummation of any Disposition not permitted
      by
      Section 6.5.

     

    (c)  Unless
      the Required Lenders shall otherwise agree, if, for any fiscal year of the
      Subsidiaries commencing with the fiscal year ending on December 31, 2007, there
      shall be Excess Cash Flow, then, on the relevant Excess Cash Flow Application
      Date, the Loans shall be prepaid by an amount equal to the ECF Percentage of
      such Excess Cash Flow. Each such prepayment shall be made on a date (an
“Excess
      Cash Flow Application Date”)
      no
      later than five days after the earlier of (i) the date on which the
      financial statements of the Borrower referred to in Section 5.1(a),
      for the
      fiscal year with respect to which such prepayment is made, are required to
      be
      delivered to the Lenders and (ii) the date such financial statements are
      actually delivered.

     

    2.8  Conversion
      and Continuation Options.
      (a)
      The
      Borrower may elect from time to time to convert Eurodollar Loans to Base Rate
      Loans by giving the Administrative Agent at least two Business Days’ prior
      irrevocable notice of such election, provided
      that any
      such conversion of Eurodollar Loans may be made only on the last day of an
      Interest Period with respect thereto. The Borrower may elect from time to time
      to convert Base Rate Loans to Eurodollar Loans by giving the Administrative
      Agent at least three Business Days’ prior irrevocable notice of such election
      (which notice shall specify the length of the initial Interest Period therefor),
      provided
      that no
      Base Rate Loan may be converted into a Eurodollar Loan (i) when any Event
      of Default has occurred and is continuing and the Administrative Agent has,
      or
      the Required Lenders have, determined in its or their sole discretion not to
      permit such conversions or (ii) after the date that is one month prior to
      the Loan Maturity Date. Upon receipt of any such notice the Administrative
      Agent
      shall promptly notify each Lender thereof.

     

    
      
        
        

      

      
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    (b)  The
      Borrower may elect to continue any Eurodollar Loan as such upon the expiration
      of the then current Interest Period with respect thereto by giving irrevocable
      notice to the Administrative Agent, in accordance with the applicable provisions
      of the term “Interest Period” set forth in Section 1.1,
      of the
      length of the next Interest Period to be applicable to such Loan, provided
      that no
      Eurodollar Loan may be continued as such (i) when any Event of Default has
      occurred and is continuing and the Administrative Agent has, or the Required
      Lenders have, determined in its or their sole discretion not to permit such
      continuations or (ii) after the date that is one month prior to the Loan
      Maturity Date, and provided,
      further,
      that if
      the Borrower shall fail to give any required notice as described above in this
      paragraph or if such continuation is not permitted pursuant to the preceding
      proviso, such Loans shall be converted automatically to Base Rate Loans on
      the
      last day of such then expiring Interest Period. Upon receipt of any such notice
      the Administrative Agent shall promptly notify each Lender thereof.

     

    2.9  Minimum
      Amounts and Maximum Number of Eurodollar Tranches.
      Notwithstanding anything to the contrary in this Agreement, all borrowings,
      conversions, continuations and optional prepayments of Eurodollar Loans and
      all
      selections of Interest Periods shall be in such amounts and be made pursuant
      to
      such elections so that, (a) after giving effect thereto, the aggregate
      principal amount of the Eurodollar Loans comprising each Eurodollar Tranche
      shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof
      and (b) no more than ten Eurodollar Tranches shall be outstanding at any
      one time.

     

    2.10  Interest
      Rates and Payment Dates.
      (a)
      Each
      Eurodollar Loan
      shall bear interest for each day during each Interest Period with respect
      thereto at a rate per annum equal to the Eurodollar Rate determined for such
      day
      plus the Applicable Margin in effect for such day.

     

    (b)  Each
      Base
      Rate Loan
      shall bear interest for each day on which it is outstanding at a rate per annum
      equal to the Base Rate in effect for such day plus
      the
      Applicable Margin in effect for such day.

     

    (c)  (i)
      If
      all or a portion of the principal amount of any Loan shall not be paid when
      due
      (whether at the stated maturity, by acceleration or otherwise), all outstanding
      Loans (whether or not overdue) (to the extent legally permitted) shall bear
      interest at a rate per annum that is equal to the rate that would otherwise
      be
      applicable thereto pursuant to the foregoing provisions of this Section
plus
      2% and
      (ii) if all or a portion of any interest payable on any Loan or any fee or
      other amount payable hereunder shall not be paid when due (whether at the stated
      maturity, by acceleration or otherwise), such overdue amount shall bear interest
      at a rate per annum equal to the rate then applicable to Base Rate Loans
plus
      2% in
      each case, with respect to clauses (i) and (ii) above, from the date of
      such non-payment until such amount is paid in full (after as well as before
      judgment).

     

    (d)  Interest
      shall be payable in arrears on each Interest Payment Date, provided
      that
      interest accruing pursuant to paragraph (c)
      of this
      Section shall be payable from time to time on demand.

     

    
      
        
        

      

      
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    2.11  Computation
      of Interest and Fees.
      (a)
      Interest, fees and commissions payable pursuant hereto shall be calculated
      on
      the basis of a 360-day year for the actual days elapsed, except that, with
      respect to Base Rate Loans on which interest is calculated on the basis of
      the
      Prime Rate, the interest thereon shall be calculated on the basis of a 365-
      (or
      366-, as the case may be) day year for the actual days elapsed. The
      Administrative Agent shall as soon as practicable notify the Borrower and the
      relevant Lenders of each determination of a Eurodollar Rate. Any change in
      the
      interest rate on a Loan resulting from a change in the Base Rate or the
      Eurocurrency Reserve Requirements shall become effective as of the opening
      of
      business on the day on which such change becomes effective. The Administrative
      Agent shall as soon as practicable notify the Borrower and the relevant Lenders
      of the effective date and the amount of each such change in interest
      rate.

     

    (b)  Each
      determination of an interest rate by the Administrative Agent pursuant to any
      provision of this Agreement shall be conclusive and binding on the Borrower
      and
      the Lenders in the absence of manifest error. The Administrative Agent shall,
      at
      the request of the Borrower, deliver to the Borrower a statement showing the
      quotations used by the Administrative Agent in determining any interest rate
      pursuant to Section 2.10(a)
      or
(b).

     

    2.12  Inability
      to Determine Interest Rate.
      If
      prior to the first day of any Interest Period:

     

    (a)  the
      Administrative Agent shall have determined (which determination shall be
      conclusive and binding upon the Borrower) that, by reason of circumstances
      affecting the relevant market, adequate and reasonable means do not exist for
      ascertaining the Eurodollar Rate for such Interest Period, or

     

    (b)  the
      Administrative Agent shall have received notice from the Required Lenders that
      the Eurodollar Rate determined or to be determined for such Interest Period
      will
      not adequately and fairly reflect the cost to such Lenders (as conclusively
      certified by such Lenders) of making or maintaining their affected Loans during
      such Interest Period,

     

    the
      Administrative Agent shall give telecopy or telephonic notice thereof to the
      Borrower and the Lenders as soon as practicable thereafter. If such notice
      is
      given (x) any Eurodollar Loans requested to be made on the first day of
      such Interest Period shall be made as Base Rate Loans, (y) any Loans that
      were to have been converted on the first day of such Interest Period to
      Eurodollar Loans shall be continued as Base Rate Loans and (z) any
      outstanding Eurodollar Loans shall be converted, on the last day of the then
      current Interest Period with respect thereto, to Base Rate Loans. Until such
      notice has been withdrawn by the Administrative Agent, no further Eurodollar
      Loans shall be made or continued as such, nor shall the Borrower have the right
      to convert Loans to Eurodollar Loans.

     

    2.13  Pro
      Rata Treatment and Payments.
      (a)
      Each
      borrowing by the Borrower from the Lenders hereunder shall be made pro rata
      according to the respective Loan Percentages of the Lenders. Each payment of
      interest in respect of the Loans and each payment in respect of fees payable
      hereunder shall be applied to the amounts of such obligations owing to the
      Lenders pro rata according to the respective amounts then due and owing to
      the
      Lenders.

     

    (b)  Each
      payment on account of principal of the Loans shall be allocated among the
      Lenders pro rata
      based on
      the principal amount of the Loans held by the Lenders. Each optional and
      mandatory prepayment shall be applied to the quarterly installments (other
      than
      the installment due on the Maturity Date) of the Loans set forth in Section
      2.3(a) (as such quarterly installments may be adjusted by the application of
      optional and mandatory prepayments pursuant to this section) pro rata
      based on
      the remaining outstanding principal amount of such quarterly installments.
      Amounts prepaid on account of the Loans may not be reborrowed.

     

    
      
        
        

      

      
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    (c)  The
      application of any payment of Loans (including optional and mandatory
      prepayments) shall be made, first,
      to Base
      Rate Loans and, second,
      to
      Eurodollar Loans. Each payment of the Loans shall be accompanied by accrued
      interest to the date of such payment on the amount paid.

     

    (d)  All
      payments (including prepayments) to be made by the Borrower hereunder, whether
      on account of principal, interest, fees or otherwise, shall be made without
      setoff or counterclaim and shall be made prior to 12:00 Noon, New York City
      time, on the due date thereof to the Administrative Agent, for the account
      of
      the relevant Lenders, at the Payment Office, in Dollars and in immediately
      available funds. Any payment made by the Borrower after 12:00 Noon, New
      York City time, on any Business Day shall be deemed to have been on the next
      succeeding Business Day. If any payment hereunder (other than payments on
      Eurodollar Loans) becomes due and payable on a day other than a Business Day,
      such payment shall be extended to the next succeeding Business Day. If any
      payment on a Eurodollar Loan becomes due and payable on a day other than a
      Business Day, the maturity thereof shall be extended to the next succeeding
      Business Day unless the result of such extension would be to extend such payment
      into another calendar month, in which event such payment shall be made on the
      immediately preceding Business Day. In the case of any extension of any payment
      of principal pursuant to the preceding two sentences, interest thereon shall
      accrue at the then applicable rate during such extension.

     

    (e)  Unless
      the Administrative Agent shall have been notified in writing by any Lender
      prior
      to a borrowing that such Lender will not make the amount that would constitute
      its share of such borrowing available to the Administrative Agent, the
      Administrative Agent may assume that such Lender is making such amount available
      to the Administrative Agent, and the Administrative Agent may, in reliance
      upon
      such assumption, make available to the Borrower a corresponding amount. If
      such
      amount is not made available to the Administrative Agent by the required time
      on
      the Borrowing Date therefor, such Lender shall pay to the Administrative Agent,
      on demand, such amount with interest thereon at a rate equal to the greater
      of
      (i) the Federal Funds Effective Rate and (ii) a rate determined by the
      Administrative Agent in accordance with banking industry rules on interbank
      compensation, for the period until such Lender makes such amount immediately
      available to the Administrative Agent. A certificate of the Administrative
      Agent
      submitted to any Lender with respect to any amounts owing under this paragraph
      shall be conclusive in the absence of manifest error. If such Lender’s share of
      such borrowing is not made available to the Administrative Agent by such Lender
      within three Business Days after such Borrowing Date, the Administrative Agent
      shall also be entitled to recover such amount with interest thereon at the
      rate
      per annum applicable to Base Rate Loans under the relevant Facility, on demand,
      from the Borrower.

     

    (f)  Unless
      the Administrative Agent shall have been notified in writing by the Borrower
      prior to the date of any payment due to be made by the Borrower hereunder that
      the Borrower will not make such payment to the Administrative Agent, the
      Administrative Agent may assume that the Borrower is making such payment, and
      the Administrative Agent may, but shall not be required to, in reliance upon
      such assumption, make available to the Lenders their respective pro rata
      shares
      of a corresponding amount. If such payment is not made to the Administrative
      Agent by the Borrower within three Business Days after such due date, the
      Administrative Agent shall be entitled to recover, on demand, from each Lender
      to which any amount which was made available pursuant to the preceding sentence,
      such amount with interest thereon at the rate per annum equal to the daily
      average Federal Funds Effective Rate. Nothing contained in this Section shall
      be
      deemed to limit the rights of the Administrative Agent or any Lender against
      the
      Borrower.

     

    (g)  Upon
      receipt by the Administrative Agent of payments on behalf of Lenders, the
      Administrative Agent shall promptly distribute such payments to the Lender
      or
      Lenders entitled thereto, in like funds as received by the Administrative
      Agent.

     

    
      
        
        

      

      
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    2.14  Requirements
      of Law.
      (a)
      If the
      adoption of or any change in any Requirement of Law (other than Organizational
      Documents) or in the interpretation or application thereof or compliance by
      any
      Lender with any request or directive (whether or not having the force of law)
      from any central bank or other Governmental Authority made subsequent to the
      Initial Closing Date:

     

    (i)  shall
      subject any Lender to any tax of any kind whatsoever with respect to this
      Agreement or any Eurodollar Loan made by it, or change the basis of taxation
      of
      payments to such Lender in respect thereof (except for Non-Excluded Taxes
      covered by Section 2.15,
      Excluded Taxes and changes in the rate of tax on the overall net income of
      such
      Lender);

     

    (ii)  shall
      impose, modify or hold applicable any reserve, special deposit, compulsory
      loan
      or similar requirement against assets held by, deposits or other liabilities
      in
      or for the account of, advances, loans or other extensions of credit by, or
      any
      other acquisition of funds by, any office of such Lender that is not otherwise
      included in the determination of the Eurodollar Rate hereunder; or

     

    (iii)  shall
      impose on such Lender any other condition;

     

    and
      the
      result of any of the foregoing is to increase the cost to such Lender, by an
      amount which such Lender deems to be material, of making, converting into,
      continuing or maintaining Eurodollar Loans, or to reduce any amount receivable
      hereunder in respect thereof, then, in any such case, the Borrower shall
      promptly pay such Lender, upon its demand, any additional amounts necessary
      to
      compensate such Lender for such increased cost or reduced amount receivable.
      If
      any Lender becomes entitled to claim any additional amounts pursuant to this
      Section, it shall promptly notify the Borrower (with a copy to the
      Administrative Agent) of the event by reason of which it has become so
      entitled.

     

    (b)  If
      any
      Lender shall have determined that the adoption of or any change in any
      Requirement of Law (other than Organizational Documents) regarding capital
      adequacy or in the interpretation or application thereof or compliance by such
      Lender or any corporation controlling such Lender with any request or directive
      regarding capital adequacy (whether or not having the force of law) from any
      Governmental Authority made subsequent to the Initial Closing Date shall have
      the effect of reducing the rate of return on such Lender’s or such corporation’s
      capital as a consequence of its obligations hereunder to a level below that
      which such Lender or such corporation could have achieved but for such adoption,
      change or compliance (taking into consideration such Lender’s or such
      corporation’s policies with respect to capital adequacy) by an amount deemed by
      such Lender to be material, then from time to time, after submission by such
      Lender to the Borrower (with a copy to the Administrative Agent) of a written
      request therefor, the Borrower shall pay to such Lender such additional amount
      or amounts as will compensate such Lender or such corporation for such
      reduction; provided
      that the
      Borrower shall not be required to compensate a Lender pursuant to this paragraph
      for any amounts incurred more than six months prior to the date that such Lender
      notifies the Borrower of such Lender’s intention to claim compensation therefor;
      and provided further
      that, if
      the circumstances giving rise to such claim have a retroactive effect, then
      such
      six-month period shall be extended to include the period of such retroactive
      effect.

     

    (c)  A
      certificate as to any additional amounts payable pursuant to this Section
      submitted by any Lender to the Borrower (with a copy to the Administrative
      Agent) shall be conclusive in the absence of manifest error. The obligations
      of
      the Borrower pursuant to this Section shall survive the termination of this
      Agreement and the payment of the Loans and all other amounts payable
      hereunder.

     

    
      
        
        

      

      
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    2.15  Taxes.
      (a)
      All
      payments made by the Borrower under this Agreement shall be made free and clear
      of, and without deduction or withholding for or on account of, any present
      or
      future income, stamp or other taxes, levies, imposts, duties, charges, fees,
      deductions or withholdings, now or hereafter imposed, levied, collected,
      withheld or assessed by any Governmental Authority, excluding Excluded Taxes.
      If
      any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions
      or withholdings (“Non-Excluded
      Taxes”)
      or any
      Other Taxes are required to be withheld from any amounts payable to the
      Administrative Agent or any Lender hereunder, the amounts so payable to such
      Agent or such Lender shall be increased to the extent necessary to yield to
      the
      Administrative Agent or such Lender (after payment of all Non-Excluded Taxes
      and
      Other Taxes) interest or any such other amounts payable hereunder at the rates
      or in the amounts specified in this Agreement; provided, however, that the
      Borrower shall not be required to increase any such amounts payable to any
      Lender with respect to any Non-Excluded Taxes (i) that are attributable to
      such Lender’s failure to comply with the requirements of
      paragraph (d)
      or
(e)
      of this
      Section or (ii) that are United States withholding taxes imposed on amounts
      payable to such Lender at the time such Lender becomes a party to this
      Agreement, except to the extent that such Lender’s assignor (if any) was
      entitled, at the time of assignment, to receive additional amounts from the
      Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph
      (a).

     

    (b)  In
      addition, the Borrower shall pay any Other Taxes to the relevant Governmental
      Authority in accordance with applicable law.

     

    (c)  Whenever
      any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly
      as possible thereafter the Borrower shall send to the Administrative Agent
      for
      the account of the Administrative Agent or Lender, as the case may be, a
      certified copy of an original official receipt received by the Borrower showing
      payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other
      Taxes when due to the appropriate taxing authority or fails to remit to the
      Administrative Agent the required receipts or other required documentary
      evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
      for any incremental taxes, interest or penalties that may become payable by
      any
      Agent or any Lender as a result of any such failure. The agreements in this
      Section shall survive the termination of this Agreement and the payment of
      the
      Loans and all other amounts payable hereunder.

     

    (d)  Each
      Lender (or Transferee) that is not a “U.S.
      Person”
as
      defined in Section 7701(a)(30) of the Code (each such Lender, a “Non-U.S.
      Lender”)
      shall
      deliver to the Borrower and the Administrative Agent (or, in the case of a
      Participant, to the Lender from which the related participation shall have
      been
      purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
      or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
      from U.S. federal withholding tax under Section 871(h) or 881(c) of the
      Code with respect to payments of “portfolio interest” a statement substantially
      in the form of Exhibit G and a Form W-8BEN, or any subsequent versions
      thereof or successors thereto properly completed and duly executed by such
      Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S.
      federal withholding tax on all payments by the Borrower under this Agreement
      and
      the other Loan Documents. Such forms shall be delivered by each Non-U.S. Lender
      on or before the date it becomes a party to this Agreement (or, in the case
      of
      any Participant, on or before the date such Participant purchases the related
      participation). In addition, each Non-U.S. Lender shall deliver such forms
      promptly upon the obsolescence or invalidity of any form previously delivered
      by
      such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower
      at
      any time it determines that it is no longer in a position to provide any
      previously delivered certificate to the Borrower (or any other form of
      certification adopted by the U.S. taxing authorities for such purpose).
      Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall
      not be required to deliver any form pursuant to this paragraph that such
      Non-U.S. Lender is not legally able to deliver.

     

    
      
        
        

      

      
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    (e)  A
      Lender
      that is entitled to an exemption from or reduction of non-U.S. withholding
      tax
      under the law of the jurisdiction in which the Borrower is located, or any
      treaty to which such jurisdiction is a party, with respect to payments under
      this Agreement shall deliver to the Borrower (with a copy to the Administrative
      Agent), at the time or times prescribed by applicable law or reasonably
      requested by the Borrower, such properly completed and executed documentation
      prescribed by applicable law as will permit such payments to be made without
      withholding or at a reduced rate, provided
      that
      such Lender is legally entitled to complete, execute and deliver such
      documentation and in such Lender’s reasonable judgment such completion,
      execution or submission would not materially prejudice the legal position of
      such Lender.

     

    2.16  Indemnity.
      The
      Borrower agrees to indemnify each Lender for, and to hold each Lender harmless
      from, any loss or expense that such Lender may sustain or incur as a consequence
      of (a) default by the Borrower in making a borrowing of, conversion into or
      continuation of Eurodollar Loans after the Borrower has given a notice
      requesting the same in accordance with the provisions of this Agreement,
      (b) default by the Borrower in making any prepayment after the Borrower has
      given a notice thereof in accordance with the provisions of this Agreement
      or
      (c) the making of a prepayment or conversion of Eurodollar Loans on a day
      that is not the last day of an Interest Period with respect thereto. Such
      indemnification may include an amount equal to the excess, if any, of
      (i) the amount of interest that would have accrued on the amount so
      prepaid, or not so borrowed, converted or continued, for the period from the
      date of such prepayment or of such failure to borrow, convert or continue to
      the
      last day of such Interest Period (or, in the case of a failure to borrow,
      convert or continue, the Interest Period that would have commenced on the date
      of such failure) in each case at the applicable rate of interest for such Loans
      provided for herein (excluding, however, the Applicable Margin included therein,
      if any) over (ii) the amount of interest (as reasonably determined by such
      Lender) that would have accrued to such Lender on such amount by placing such
      amount on deposit for a comparable period with leading banks in the interbank
      Eurodollar market. A certificate as to any amounts payable pursuant to this
      Section submitted to the Borrower by any Lender shall be conclusive in the
      absence of manifest error. This covenant shall survive the termination of this
      Agreement and the payment of the Loans and all other amounts payable
      hereunder.

     

    2.17  Illegality.
      Notwithstanding any other provision herein, if the adoption of or any change
      in
      any Requirement of Law (other than Organizational Documents) or in the
      interpretation or application thereof shall make it unlawful for any Lender
      to
      make or maintain Eurodollar Loans as contemplated by this Agreement,
      (a) the commitment of such Lender hereunder to make Eurodollar Loans,
      continue Eurodollar Loans as such and convert Base Rate Loans to Eurodollar
      Loans shall forthwith be canceled and (b) such Lender’s Loans then
      outstanding as Eurodollar Loans, if any, shall be converted automatically to
      Base Rate Loans on the respective last days of the then current Interest Periods
      with respect to such Loans or within such earlier period as required by law.
      If
      any such conversion of a Eurodollar Loan occurs on a day which is not the last
      day of the then current Interest Period with respect thereto, the Borrower
      shall
      pay to such Lender such amounts, if any, as may be required pursuant to
      Section 2.16.

     

    2.18  Change
      of Lending Office.
      Each
      Lender agrees that, upon the occurrence of any event giving rise to the
      operation of Section 2.14,
      2.15(a)
      or
2.17
      with
      respect to such Lender, it will, if requested by the Borrower, use reasonable
      efforts (subject to overall policy considerations of such Lender) to designate
      another lending office for any Loans affected by such event with the object
      of
      avoiding the consequences of such event; provided, that such designation is
      made
      on terms that, in the sole judgment of such Lender, cause such Lender and its
      lending office(s) to suffer no economic, legal or regulatory disadvantage,
      and
      provided, further, that nothing in this Section shall affect or postpone any
      of
      the obligations of any Borrower or the rights of any Lender pursuant to Section
      2.14,
      2.15(a)or
      2.17.

     

    
      
        
        

      

      
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    2.19  Replacement
      of Lenders under Certain Circumstances.
      The
      Borrower shall be permitted to replace any Lender that (a) requests
      reimbursement for amounts owing pursuant to Section 2.14
      or
2.15
      or gives
      a notice of illegality pursuant to Section 2.17
      or
      (b) defaults in its obligation to make Loans hereunder, with a replacement
      financial institution; provided that (i) such replacement does not conflict
      with any Requirement of Law, (ii) no Event of Default shall have occurred
      and be continuing at the time of such replacement, (iii) prior to any such
      replacement, such Lender shall have taken no action under
      Section 2.18
      so as to
      eliminate the continued need for payment of amounts owing pursuant to
      Section 2.14
      or
2.15
      or to
      eliminate the illegality referred to in such notice of illegality given pursuant
      to Section 2.17,
      (iv) the replacement financial institution shall purchase, at par, all
      Loans and other amounts owing to such replaced Lender on or prior to the date
      of
      replacement, (v) the Borrower shall be liable to such replaced Lender under
      Section 2.16
      (as
      though Section 2.16
      were
      applicable) if any Eurodollar Loan owing to such replaced Lender shall be
      purchased other than on the last day of the Interest Period relating thereto,
      (vi) the replacement financial institution, if not already a Lender, shall
      be reasonably satisfactory to the Administrative Agent, (vii) the replaced
      Lender shall be obligated to make such replacement in accordance with the
      provisions of Section 9.6
      (provided that the replaced Lender shall not be obligated to pay the
      registration and processing fee referred to therein), (viii) the Borrower
      shall pay all additional amounts (if any) required pursuant to
      Section 2.14
      or
2.15,
      as the
      case may be, in respect of any period prior to the date on which such
      replacement shall be consummated, and (ix) any such replacement shall not
      be deemed to be a waiver of any rights that the Borrower, the Administrative
      Agent or any other Lender shall have against the replaced Lender.

     

    SECTION 3.  REPRESENTATIONS
      AND WARRANTIES

     

    To
      induce
      the Administrative Agent and the Lenders to enter into this Agreement and to
      make the Loans the Borrower hereby represents and warrants to the Administrative
      Agent and each Lender that:

     

    3.1  Financial
      Condition.
      (a)
      The
      unaudited pro forma consolidated balance sheet of the Borrower and its
      consolidated Subsidiaries as at December 31, 2006 (including the notes thereto)
      (the “Pro
      Forma Balance Sheet”),
      copies of which have heretofore been furnished to each Lender, has been prepared
      giving effect (as if such events had occurred on such date) to (i) the
      consummation of the Acquisitions, (ii) the Term Loans made on the Initial
      Closing Date and the use of proceeds thereof and (iii) the payment of
      estimated aggregate fees and expenses in connection with the foregoing. The
      Pro
      Forma Balance Sheet has been prepared based on the best information available
      to
      the Borrower as of the date of delivery thereof, and presents fairly on a pro
      forma basis the estimated financial position of the Borrower and its
      consolidated Subsidiaries as at December 31, 2006, assuming that the events
      specified in the preceding sentence had actually occurred at such
      date.

     

    (b)  The
      audited consolidated balance sheets of the Borrower as at December 31, 2004,
      December 31, 2005 and December 31, 2006, and the related consolidated statements
      of income and of cash flows for the fiscal years ended on such dates, reported
      on by and accompanied by an unqualified report from BDO Seidman, LLP, copies
      of
      which have heretofore been furnished to each Lender, present fairly the
      consolidated financial condition of the Borrower as at such date, and the
      consolidated results of its operations and its consolidated cash flows for
      the
      respective fiscal years then ended. All such financial statements, including
      the
      related schedules and notes thereto, have been prepared in accordance with
      GAAP
      applied consistently throughout the periods involved (except as approved by
      the
      aforementioned firm of accountants and disclosed therein). The Borrower and
      its
      Subsidiaries do not have any material Guarantee Obligations, contingent
      liabilities and liabilities for taxes, or any long-term leases or unusual
      forward or long-term commitments, including, without limitation, any interest
      rate or foreign currency swap or exchange transaction or other obligation in
      respect of derivatives, that are not reflected in the most recent financial
      statements referred to in this paragraph. During the period from December 31,
      2006 to and including the date hereof there has been no Disposition by the
      Borrower of any material part of its business or Property other than in
      connection with Acquisitions.

     

    
      
        
        

      

      
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    3.2  No
      Change.
      Since
      December 31, 2006 there has been no development or event that has had or could
      reasonably be expected to have a Material Adverse Effect.

     

    3.3  Corporate
      Existence; Compliance with Law.
      Each of
      the Borrower and its Subsidiaries (a) is duly organized, validly existing
      and in good standing under the laws of the jurisdiction of its organization,
      (b) has the corporate or limited liability company power and authority, as
      applicable, and the legal right, to own and operate its Property, to lease
      the
      Property it operates as lessee and to conduct the business in which it is
      currently engaged, (c) is duly qualified as a foreign corporation, limited
      liability company or other organization and in good standing under the laws
      of
      each jurisdiction where its ownership, lease or operation of Property or the
      conduct of its business requires such qualification and (d) is in
      compliance with all Requirements of Law except to the extent that the failure
      to
      comply therewith could not, in the aggregate, reasonably be expected to have
      a
      Material Adverse Effect.

     

    3.4  Corporate
      Power; Authorization; Enforceable Obligations.
      Each
      Loan Party has the corporate or limited liability company power and authority,
      as applicable, and the legal right, to make, deliver and perform the Loan
      Documents to which it is a party, and in the case of the Borrower, to consummate
      the Acquisitions and to borrow hereunder. Each Loan Party has taken all
      necessary corporate or limited liability company action, as applicable, to
      authorize the execution, delivery and performance of the Loan Documents to
      which
      it is a party, and in the case of the Borrower, to consummate the Acquisitions
      and to authorize the borrowings on the terms and conditions of this Agreement.
      No consent or authorization of, filing with, notice to or other act by or in
      respect of, any Governmental Authority or any other Person is required in
      connection with the consummation of the Acquisitions, the borrowings hereunder
      or the execution, delivery, performance, validity or enforceability of this
      Agreement or any of the other Loan Documents, except (i) consents,
      authorizations, filings and notices described in Schedule 3.4,
      which
      consents, authorizations, filings and notices have been obtained or made and
      are
      in full force and effect and (ii) the filings referred to in Section
3.19(a).
      Each
      Loan Document has been duly executed and delivered on behalf of each Loan Party
      that is a party thereto. This Agreement constitutes, and each other Loan
      Document upon execution will constitute, a legal, valid and binding obligation
      of each Loan Party that is a party thereto, enforceable against each such Loan
      Party in accordance with its terms, except as enforceability may be limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the enforcement of creditors’ rights generally and by general
      equitable principles (whether enforcement is sought by proceedings in equity
      or
      at law).

     

    3.5  No
      Legal Bar.
      The
      execution, delivery and performance of this Agreement and the other Loan
      Documents, the consummation of the Acquisitions, the borrowings hereunder and
      the use of the proceeds thereof will not violate any Requirement of Law or any
      Contractual Obligation of the Borrower or any of its Subsidiaries and will
      not
      result in, or require, the creation or imposition of any Lien on any of their
      respective properties or revenues pursuant to any Requirement of Law or any
      such
      Contractual Obligation (other than the Liens created by the Security Documents).
      No Requirement of Law or Contractual Obligation applicable to the Borrower
      or
      any of its Subsidiaries could reasonably be expected to have a Material Adverse
      Effect.

     

    3.6  No
      Material Litigation.
      No
      litigation, investigation or proceeding of or before any arbitrator or
      Governmental Authority is pending or, to the knowledge of the Borrower,
      threatened by or against the Borrower or any of its Subsidiaries or against
      any
      of their respective properties or revenues (a) with respect to any of the
      Loan Documents or any of the transactions contemplated hereby or thereby, or
      (b) that could reasonably be expected to have a Material Adverse Effect (as
      determined in good faith by the Borrower).

     

    
      
        
        

      

      
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    3.7  No
      Default.
      Neither
      the Borrower nor any of its Subsidiaries is in default under or with respect
      to
      any of its Contractual Obligations in any respect that could reasonably be
      expected to have a Material Adverse Effect. No Default or Event of Default
      has
      occurred and is continuing.

     

    3.8  Ownership
      of Property; Liens.
      The
      Borrower and each of its Subsidiaries has title in fee simple to, or a valid
      leasehold interest in, all its real property, and good title to, or a valid
      leasehold interest in, all its other Property, and none of such Property is
      subject to any Lien except as permitted by Section 6.3.

     

    3.9  Intellectual
      Property.
      Each of
      the Subsidiaries owns, or is licensed to use, all Intellectual Property
      necessary for the conduct of its business as currently conducted free and clear
      of all Liens, except as permitted by Section 6.3. Each of the Subsidiaries’
Trademarks (as defined in the Guarantee and Collateral Agreement) and all other
      material Intellectual Property of the Subsidiaries are valid and enforceable,
      not abandoned and unexpired. No claim has been threatened in writing or has
      been
      asserted and is pending, and no judgment regarding the same has been rendered
      by
      a court of competent jurisdiction, by any Person challenging or questioning
      the
      use of such Intellectual Property or the validity or effectiveness of such
      Intellectual Property, nor do the Subsidiaries know of any valid basis for
      any
      such claim. No Subsidiary is a party to a material Intellectual Property license
      or other material agreement concerning Intellectual Property, nor is or is
      alleged in writing to be, in breach or default thereunder. The Borrower and
      its
      Subsidiaries represent that the transactions contemplated by this Agreement
      shall not impair the Intellectual Property rights of any of the Subsidiaries.
      The Borrower and its Subsidiaries take reasonable steps to protect and maintain
      all material Trademarks and other material Intellectual Property of the
      Subsidiaries, including executing all appropriate confidentiality agreements
      and
      filing for appropriate patents and registrations. The use of Intellectual
      Property by the Subsidiaries does not impair or infringe on the rights of any
      Person in any material respect.

     

    3.10  Taxes.
      The
      Borrower and each of its Subsidiaries has filed or caused to be filed all
      Federal, state and other material tax returns that are required to be filed
      and
      has paid all taxes shown to be due and payable on said returns or on any
      assessments made against it or any of its Property and all other taxes, fees
      or
      other charges imposed on it or any of its Property by any Governmental Authority
      (other than any the amount or validity of which are currently being contested
      in
      good faith by appropriate proceedings and with respect to which reserves in
      conformity with GAAP have been provided on the books of the Borrower or its
      Subsidiaries, as the case may be); and no tax Lien has been filed, and, to
      the
      knowledge of the Borrower, no claim is being asserted, with respect to any
      such
      tax, fee or other charge.

     

    3.11  Federal
      Regulations.
      No part
      of the proceeds of any Loans, and no other extensions of credit hereunder,
      will
      be used for “purchasing” or “carrying” any “margin stock” within the respective
      meanings of each of the quoted terms under Regulation U as now and from
      time to time hereafter in effect or for any purpose that violates the provisions
      of Regulation U. If requested by any Lender or the Administrative Agent, the
      Borrower will furnish to the Administrative Agent and each Lender a statement
      to
      the foregoing effect in conformity with the requirements of FR Form G-3 or
      FR Form U-1 referred to in Regulation U.

     

    3.12  Labor
      Matters.
      There
      are no strikes or other labor disputes against the Borrower or any of its
      Subsidiaries pending or, to the knowledge of the Borrower, threatened that
      (individually or in the aggregate) could reasonably be expected to have a
      Material Adverse Effect. Hours worked by and payment made to employees of the
      Borrower and its Subsidiaries have not been in violation of the Fair Labor
      Standards Act or any other applicable Requirement of Law dealing with such
      matters that (individually or in the aggregate) could reasonably be expected
      to
      have a Material Adverse Effect. All payments due from the Borrower or any of
      its
      Subsidiaries on account of employee health and welfare insurance that
      (individually or in the aggregate) could reasonably be expected to have a
      Material Adverse Effect if not paid have been paid or accrued as a liability
      on
      the books of the Borrower or the relevant Subsidiary.

     

    
      
        
        

      

      
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    3.13  ERISA.
      Neither
      a Reportable Event nor an “accumulated funding deficiency” (within the meaning
      of Section 412 of the Code or Section 302 of ERISA) has occurred
      during the five-year period prior to the date on which this representation
      is
      made or deemed made with respect to any Plan, and each Plan has complied in
      all
      material respects with the applicable provisions of ERISA and the Code. No
      termination of a Single Employer Plan has occurred, and no Lien in favor of
      the
      PBGC or a Plan has arisen, during such five-year period. The present value
      of
      all accrued benefits under each Single Employer Plan (based on those assumptions
      used to fund such Plans) did not, as of the last annual valuation date prior
      to
      the date on which this representation is made or deemed made, exceed the value
      of the assets of such Plan allocable to such accrued benefits by a material
      amount. Neither the Borrower nor any Commonly Controlled Entity has had a
      complete or partial withdrawal from any Multiemployer Plan that has resulted
      or
      could reasonably be expected to result in a material liability under ERISA,
      and
      neither the Borrower nor any Commonly Controlled Entity would become subject
      to
      any material liability under ERISA if the Borrower or any such Commonly
      Controlled Entity were to withdraw completely from all Multiemployer Plans
      as of
      the valuation date most closely preceding the date on which this representation
      is made or deemed made. No such Multiemployer Plan is in Reorganization or
      Insolvent.

     

    3.14  Investment
      Company Act; Other Regulations.
      No Loan
      Party is an “investment company”, or a company “controlled” by an “investment
      company”, within the meaning of the Investment Company Act of 1940, as amended.
      No Loan Party is subject to regulation under any Requirement of Law (other
      than
      Regulation X of the Board) that limits its ability to incur
      Indebtedness.

     

    3.15  Subsidiaries.
      (a)
      The
      Subsidiaries listed on Schedule 3.15
      constitute all the Subsidiaries of the Borrower at the Initial Closing Date.
      Schedule 3.15
      sets
      forth as of the Initial Closing Date the name and jurisdiction of incorporation
      of each Subsidiary and, as to each Subsidiary, the percentage of each class
      of
      Capital Stock owned by each Loan Party.

     

    (b)  There
      are
      no outstanding subscriptions, options, warrants, calls, rights or other
      agreements or commitments of any nature relating to any Capital Stock of the
      Borrower or any Subsidiary (other than any Earn-Out Consideration obligations
      payable in Capital Stock of the Borrower).

     

    3.16  Use
      of
      Proceeds.
      The
      proceeds of the Term Loans shall be used to finance the Rocawear Acquisition
      and
      to pay related fees and expenses. The proceeds of Incremental Loans shall be
      used to finance Permitted Acquisitions, Permitted Foreign Subsidiary
      Acquisitions, to pay related fees and expenses and for general corporate
      purposes.

     

    3.17  Environmental
      Matters.
      Other
      than exceptions to any of the following that could not, individually or in
      the
      aggregate, reasonably be expected to have a Material Adverse
      Effect:

     

    (a)  The
      Borrower and its Subsidiaries: (i) are, and within the period of all
      applicable statutes of limitation have been, in compliance with all applicable
      Environmental Laws; (ii) hold all Environmental Permits (each of which is
      in full force and effect) required for any of their current or intended
      operations or for any property owned, leased, or otherwise operated by any
      of
      them; (iii) are, and within the period of all applicable statutes of
      limitation have been, in compliance with all of their Environmental Permits;
      and
      (iv) reasonably believe that: each of their Environmental Permits will be
      timely renewed and complied with, without material expense; any additional
      Environmental Permits that may be required of any of them will be timely
      obtained and complied with, without material expense; and compliance with any
      Environmental Law that is or is expected to become applicable to any of them
      will be timely attained and maintained, without material expense.

     

    
      
        
        

      

      
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    (b)  Materials
      of Environmental Concern are not present at, on, under, in, or about any real
      property now or formerly owned, leased or operated by the Borrower or any of
      its
      Subsidiaries, or at any other location (including, without limitation, any
      location to which Materials of Environmental Concern have been sent for re-use
      or recycling or for treatment, storage, or disposal) which could reasonably
      be
      expected to (i) give rise to liability of the Borrower or any of its
      Subsidiaries under any applicable Environmental Law or otherwise result in
      costs
      to the Borrower or any of its Subsidiaries, or (ii) interfere with the
      Borrower’s or any of its Subsidiaries’ continued operations, or
      (iii) impair the fair saleable value of any real property owned or leased
      by the Borrower or any of its Subsidiaries.

     

    (c)  There
      is
      no judicial, administrative, or arbitral proceeding (including any notice of
      violation or alleged violation) under or relating to any Environmental Law
      to
      which the Borrower or any of its Subsidiaries is, or to the knowledge of the
      Borrower or any of its Subsidiaries will be, named as a party that is pending
      or, to the knowledge of the Borrower or any of its Subsidiaries,
      threatened.

     

    (d)  Neither
      the Borrower nor any of its Subsidiaries has received any written request for
      information, or been notified that it is a potentially responsible party under
      or relating to the federal Comprehensive Environmental Response, Compensation,
      and Liability Act or any similar Environmental Law, or with respect to any
      Materials of Environmental Concern.

     

    (e)  Neither
      the Borrower nor any of its Subsidiaries has entered into or agreed to any
      consent decree, order, or settlement or other agreement, or is subject to any
      judgment, decree, or order or other agreement, in any judicial, administrative,
      arbitral, or other forum for dispute resolution, relating to compliance with
      or
      liability under any Environmental Law.

     

    (f)  Neither
      the Borrower nor any of its Subsidiaries has assumed or retained, by contract
      or
      operation of law, any liabilities of any kind, fixed or contingent, known or
      unknown, under any Environmental Law or with respect to any Material of
      Environmental Concern.

     

    3.18  Accuracy
      of Information, etc. To
      the
      best knowledge of the Loan Parties, no statement or information contained in
      this Agreement, any other Loan Document or any other document, certificate
      or
      statement furnished to the Administrative Agent or the Lenders or any of them,
      by or on behalf of any Loan Party in writing for use in connection with the
      transactions contemplated by this Agreement or the other Loan Documents,
      contained as of the date such statement, information, document or certificate
      was so furnished, any untrue statement of a material fact or omitted to state
      a
      material fact necessary to make the statements contained herein or therein,
      taken as a whole, not misleading. The projections and pro forma financial
      information contained in the materials referenced above are based upon good
      faith estimates and assumptions believed by management of the Borrower to be
      reasonable at the time made, it being recognized by the Lenders that such
      financial information as it relates to future events is not to be viewed as
      fact
      and that actual results during the period or periods covered by such financial
      information may differ from the projected results set forth therein by a
      material amount. As of the date hereof, the representations and warranties
      contained in the Acquisition Documentation are true and correct in all material
      respects. There is no fact known to any Loan Party that could reasonably be
      expected to have a Material Adverse Effect that has not been expressly disclosed
      herein, in the other Loan Documents, or in any other documents, certificates
      and
      statements furnished to the Administrative Agent and the Lenders for use in
      connection with the transactions contemplated hereby and by the other Loan
      Documents.

     

    
      
        
        

      

      
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    3.19  Security
      Documents.
      (a)
      The
      Guarantee and Collateral Agreement is effective to create in favor of the
      Administrative Agent, for the benefit of the Secured Parties, a legal, valid
      and
      enforceable security interest in the Collateral described therein and proceeds
      thereof. In the case of the Pledged Stock described in the Guarantee and
      Collateral Agreement, when any stock certificates representing such Pledged
      Stock are delivered to the Administrative Agent, and in the case of the other
      Collateral described in the Guarantee and Collateral Agreement, when financing
      statements in appropriate form are filed in the offices specified on
      Schedule 3.19(a) (which financing statements have been duly completed and
      delivered to the Administrative Agent) and such other filings as are specified
      on Schedule 3 to the Guarantee and Collateral Agreement have been
      completed, the Administrative Agent’s Lien on, and security interest in, all
      right, title and interest of the Loan Parties in such Collateral and the
      proceeds thereof, as security for the Obligations (as defined in the Guarantee
      and Collateral Agreement), will be perfected to the extent a security interest
      in such Collateral can be perfected by the filing of a financing statement
      in
      such offices, in each case prior and superior in right to any other Person
      (except, in the case of Collateral other than Pledged Stock, Liens permitted
      by
      Section 6.3).

     

    (b)  As
      of the
      Initial Closing Date, neither the Borrower nor any of its Subsidiaries owns
      any
      real property.

     

    3.20  Solvency.
      Each
      Loan Party is, and after giving effect to the Acquisitions and the incurrence
      of
      all Indebtedness and obligations being incurred in connection herewith and
      therewith will be and will continue to be, Solvent.

     

    3.21  Certain
      Documents.
      The
      Borrower has delivered to the Administrative Agent a complete and correct copy
      of the Acquisition Documentation and the Specified License Agreements, including
      any amendments, supplements or modifications with respect to any of the
      foregoing.

     

    SECTION 4.  CONDITIONS
      PRECEDENT

     

    (A) This
      Agreement shall take effect upon satisfaction of the following conditions
      precedent:

     

    (i) The
      Administrative Agent shall have received this Agreement, executed and delivered
      by the Borrower and the other parties hereto.

     

    (ii) Each
      of
      the representations and warranties made by any Loan Party in or pursuant to
      the
      Loan Documents shall be true and correct in all material respects on and as
      of
      the date hereof.

     

    (iii) No
      Default or Event of Default shall have occurred and be continuing on the date
      hereof.

     

    (B) The
      agreement of the Existing Lender to make the Term Loan requested to be made
      by
      it on the Initial Closing Date was subject to the satisfaction, prior to or
      concurrently with the making of such Term Loan on the Initial Closing Date,
      of
      all of the following conditions precedent, and the agreement of each Incremental
      Lender to make incremental Term Loans or Incremental Loans, as applicable,
      on
      any Increased Facility Closing Date, is subject to the satisfaction, prior
      to or
      concurrently with the making of such incremental Term Loans or Incremental
      Loans, as the case may be, on such Increased Facility Closing Date of the
      conditions precedent set forth in Sections 4.5, 4.9, 4.11, 4.12(i)-(ii), 4.16,
      4.17 and 4.18.

     

    
      
        
        

      

      
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    4.1  Loan
      Documents.
      The
      Administrative Agent shall have received (i) the Existing Credit Agreement,
      executed and delivered by the Borrower and (ii) the Guarantee and
      Collateral Agreement, executed and delivered by the Borrower and each Subsidiary
      Guarantor.

     

    4.2  Acquisitions.
      Each
      Acquisition shall have been consummated in accordance with the terms of the
      applicable Acquisition Agreement, as in effect on the date thereof, in all
      material respects without any waiver, modification or amendment thereof that
      is
      materially adverse to the Lenders (as determined by the Administrative Agent),
      unless consented to by the Administrative Agent.

     

    4.3  Pro
      Forma Balance Sheet; Financial Statements.
      The
      Lenders shall have received (i) the Pro Forma Balance Sheet,
      (ii) audited consolidated financial statements of the Borrower for the
      2004, 2005 and 2006 fiscal years and (iii) unaudited interim consolidated
      financial statements of the Borrower for each quarterly period ended subsequent
      to the date of the latest applicable financial statements delivered pursuant
      to
      clause (ii) of this paragraph as to which such financial statements are
      publicly available.

     

    4.4  Minimum
      Guaranteed Revenue.
      The
      Administrative Agent shall have received a certificate, dated as of the Initial
      Closing Date and signed by the chief financial officer of the Borrower,
      certifying that, as of the Initial Closing Date, the pro forma
      minimum
      guaranteed revenue (defined
      as contractual guaranteed minimums of royalty revenue and advertising) of the
      Subsidiaries for the calendar year ending on December 31, 2007, shall equal
      at
      least $30,000,000.

     

    4.5  Approvals.
      All
      governmental and third party approvals necessary in connection with the Rocawear
      Acquisition, the continuing operations of the Borrower and its Subsidiaries
      and
      the transactions contemplated hereby shall have been obtained and be in full
      force and effect, and all applicable waiting periods shall have expired without
      any action being taken or threatened by any competent authority that would
      restrain, prevent or otherwise impose adverse conditions on the Rocawear
      Acquisition or the financing contemplated hereby.

     

    4.6  Related
      Agreements.
      The
      Administrative Agent shall have received (in a form reasonably satisfactory
      to
      the Administrative Agent), true and correct copies, certified as to authenticity
      by the Borrower, of (i) each Acquisition Agreement, (ii) the Specified
      License Agreements, (iii) the Danskin License Agreement and (iv) such other
      documents or instruments as may be reasonably requested by the Administrative
      Agent, including, without limitation, a copy of any debt instrument, security
      agreement or other material contract to which the Loan Parties may be a
      party.

     

    4.7  Fees.
      The
      Lenders and the Administrative Agent shall have received all fees required
      to be
      paid, and all reasonable expenses for which invoices have been presented
      reasonably in advance of the Initial Closing Date (including reasonable fees,
      disbursements and other charges of counsel to the Administrative Agent), on
      or
      before the Initial Closing Date. All such amounts will be paid with proceeds
      of
      Term Loans made on the Initial Closing Date and will be reflected in the funding
      instructions given by the Borrower to the Administrative Agent on or before
      the
      Initial Closing Date.

     

    4.8  Business
      Plan.
      The
      Lenders shall have received a satisfactory business plan for fiscal years 2007
      -
      2012 and a satisfactory written analysis of the business and prospects of the
      Borrower and its Subsidiaries for the period from the Initial Closing Date
      through 2012.

     

    
      
        
        

      

      
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    4.9  Solvency
      Certificate.
      The
      Lenders shall have received a reasonably satisfactory solvency certificate
      from
      the chief financial officer of the Borrower which shall document the solvency
      of
      the Borrower and its Subsidiaries considered as a whole after giving effect
      to
      the transactions contemplated hereby.

     

    4.10  Lien
      Searches.
      The
      Administrative Agent shall have received the results of a recent lien search
      in
      the “location” (as defined in the Uniform Commercial Code (“UCC”))
      of
      each of the Sellers and each such search shall reveal no liens on any of such
      assets, except for (i) Liens permitted by Section 6.3 and (ii) Liens to be
      discharged substantially concurrently with the initial borrowing by the Borrower
      under this Agreement pursuant to documentation reasonably satisfactory to the
      Administrative Agent.

     

    4.11  Closing
      Certificate.
      The
      Administrative Agent shall have received a certificate of each Loan Party,
      dated
      the Initial Closing Date or the Increased Facility Closing Date, as applicable,
      substantially in the form of Exhibit C, with appropriate insertions and
      attachments.

     

    4.12  Legal
      Opinions.
      The
      Administrative Agent shall have received the following executed legal
      opinions:

     

    (i)  the
      legal
      opinion of Blank Rome LLP, counsel to the Borrower and its Subsidiaries,
      substantially in the form of Exhibit E-1;

     

    (ii)  the
      legal
      opinion of Andrew Tarshis, general counsel of the Borrower and its Subsidiaries,
      substantially in the form of Exhibit E-2; and

     

    (iii)  to
      the
      extent consented to by the relevant counsel, each legal opinion, if any,
      delivered in connection with the Acquisition Agreements.

     

    Each
      such
      legal opinion referred to in clauses (i) and (ii) shall cover such other matters
      incident to the transactions contemplated by this Agreement as the
      Administrative Agent may reasonably require and shall be addressed to the
      Administrative Agent and the Lenders.

     

    4.13  Pledged
      Stock; Stock Powers.
      The
      Administrative Agent shall have received the certificates representing the
      shares of Capital Stock pledged pursuant to the Guarantee and Collateral
      Agreement, together with an undated stock power for each such certificate
      executed in blank by a duly authorized officer of the pledgor
      thereof.

     

    4.14  Filings,
      Registrations and Recordings.
      Each
      document (including, without limitation, any UCC financing statement) required
      by the Security Documents or under law or reasonably requested by the
      Administrative Agent to be filed, registered or recorded in order to create
      in
      favor of the Administrative Agent, for the benefit of the Secured Parties,
      a
      perfected Lien on the Collateral described therein, prior and superior in right
      to any other Person (other than with respect to Liens expressly permitted by
      Section 6.3), shall have been filed, registered or recorded or shall have been
      delivered to the Administrative Agent in proper form for filing, registration
      or
      recordation.

     

    4.15  Insurance.
      The
      Administrative Agent shall have received insurance certificates satisfying
      the
      requirements of Section 5.5 of this Agreement.

     

    4.16  PATRIOT
      Act.
      The
      Lenders shall have received, sufficiently in advance of the Initial Closing
      Date
      or the Increased Facility Closing Date, as applicable, all documentation and
      other information required by bank regulatory authorities under applicable
“know
      your customer” and anti-money laundering rules and regulations, including
      without limitation the United States PATRIOT Act.

     

    
      
        
        

      

      
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    4.17  Representations
      and Warranties.
      Each of
      the representations and warranties made by any Loan Party in or pursuant to
      the
      Loan Documents shall be true and correct in all material respects on and as
      of
      the Initial Closing Date or the Increased Facility Closing Date, as
      applicable.

     

    4.18  No
      Default.
      No
      Default or Event of Default shall have occurred and be continuing on the Initial
      Closing Date or after giving effect to the Loans requested to be made on the
      Initial Closing Date.
      No
      Default or Event of Default shall have occurred and be continuing on the
      Increased Facility Closing Date or after giving effect to the Loans requested
      to
      be made on the Increased Facility Closing Date.

     

    The
      borrowing by the Borrower of the Term Loan on the Initial Closing Date
      constituted a representation and warranty by the Borrower as of the Initial
      Closing Date that the conditions contained in this Section 4
      were
      satisfied, and each borrowing by the Borrower hereunder of an incremental Term
      Loan or Incremental Loan, as applicable, shall constitute a representation
      and
      warranty by the Borrower as of the date of such extension of credit that the
      conditions contained in Sections 4.1(iii), 4.5, 4.9, 4.11, 4.12(i)-(ii), 4.16,
      4.17 and 4.18 have been satisfied.

     

    SECTION 5.  AFFIRMATIVE
      COVENANTS

     

    The
      Borrower hereby agrees that, so long as the Commitments remain in effect or
      any
      Loan or other amount is owing to any Lender or the Administrative Agent
      hereunder, the Borrower shall and shall cause each of its Subsidiaries
      to:

     

    5.1  Financial
      Statements.
      Furnish
      to the Administrative Agent (who will furnish to each Lender):

     

    (a)  as
      soon
      as available, but in any event within 90 days after the end of each fiscal
      year of the Borrower, a copy of the audited consolidated balance sheet of the
      Borrower as at the end of such fiscal year and the related audited consolidated
      statements of income and of cash flows for such fiscal year, setting forth
      in
      each case in comparative form the figures as of the end of and for the previous
      fiscal year, reported on without a “going concern” or like qualification or
      exception, or qualification arising out of the scope of the audit, by BDO
      Seidman, LLP or other independent certified public accountants of nationally
      recognized standing;
      and

     

    (b)  as
      soon
      as available, but in any event not later than 50 days after the end of each
      of the first three quarterly periods of each fiscal year of the Borrower, the
      unaudited consolidated balance sheet of the Borrower as at the end of such
      quarter and the related unaudited consolidated statements of income and of
      cash
      flows for such quarter and the portion of the fiscal year through the end of
      such quarter, setting forth in each case in comparative form the figures as
      of
      the end of and for the corresponding period in the previous year, certified
      by a
      Responsible Officer as being fairly stated in all material respects (subject
      to
      normal year-end audit adjustments);

     

    all
      such
      financial statements to be complete and correct in all material respects and
      to
      be prepared in reasonable detail and in accordance with GAAP applied
      consistently throughout the periods reflected therein and with prior periods
      (except as approved by such accountants or officer, as the case may be, and
      disclosed therein).

     

    
      
        
        

      

      
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    5.2  Certificates;
      Other Information.
      Furnish
      to the Administrative Agent (who will furnish to each Lender), or, in the case
      of clause (e), to the relevant Lender:

     

    (a)  concurrently
      with the delivery of any financial statements pursuant to
      Section 5.1,
      (i) a
      Compliance Certificate of a Responsible Officer (x) stating that, to the best
      of
      such Responsible Officer’s knowledge, each Loan Party during such period has
      observed or performed all of its covenants and other agreements, and satisfied
      every condition, contained in this Agreement and the other Loan Documents to
      which it is a party to be observed, performed or satisfied by it, and that
      such
      Responsible Officer has obtained no knowledge of any Default or Event of Default
      except as specified in such certificate, (y) containing all information and
      calculations necessary for determining compliance by the Borrower and its
      Subsidiaries with the provisions of this Agreement referred to therein as of
      the
      last day of the fiscal quarter or fiscal year of the Borrower, as the case
      may
      be and (z) to the extent not previously disclosed to the Administrative
      Agent, containing a listing of any Intellectual Property acquired by the
      Borrower or any Subsidiary Guarantor since the date of the most recent list
      delivered pursuant to this clause (ii) (or, in the case of the first such
      list so delivered, since the Initial Closing Date); and (ii) a schedule
      certified by a Responsible Officer setting forth the aggregate amount of (x)
      all
      cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries and
      its Unrestricted Subsidiaries on a consolidated basis, (y) all Restricted Cash
      and (z) all Unrestricted Cash, in each case showing in reasonable detail how
      such amounts are calculated;

     

    (b)  as
      soon
      as available, and in any event no later than 75 days after the end of each
      fiscal year of the Borrower, a reasonably detailed consolidated budget for
      the
      following fiscal year (including a projected consolidated balance sheet of
      the
      Borrower as of the end of the following fiscal year, and projected consolidated
      income and a description of the underlying assumptions applicable thereto),
      and,
      as soon as available, significant revisions, if any, of such budget and
      projections with respect to such fiscal year, and the Subsidiaries’ Financial
      Information (collectively, the “Projections”),
      which
      Projections shall in each case be accompanied by a certificate of a Responsible
      Officer stating that such Projections are based on reasonable estimates,
      information and assumptions and that such Responsible Officer has no reason
      to
      believe that such Projections are incorrect or misleading in any material
      respect;

     

    (c)  no
      later
      than three Business Days after the effectiveness thereof, copies of any
      amendment, supplement, waiver or other modification with respect to any
      Acquisition Agreement or any Specified License Agreement;

     

    (d)  within
      five days after the same are sent, copies of all reports filed on Form 8-K
      that
      the Borrower may make to, or file with, the SEC; and 

     

    (e)  promptly,
      such additional financial and other information as any Lender may from time
      to
      time reasonably request.

     

    5.3  Payment
      of Obligations.
      Pay,
      discharge or otherwise satisfy at or before maturity or before they become
      delinquent, as the case may be, all its material obligations of whatever nature,
      except where the amount or validity thereof is currently being contested in
      good
      faith by appropriate proceedings and reserves in conformity with GAAP with
      respect thereto have been provided on the books of the Borrower or its
      Subsidiaries, as the case may be.

     

    5.4  Conduct
      of Business and Maintenance of Existence; Compliance.
      (a)(i) Preserve, renew and keep in full force and effect its organizational
      existence and (ii) take all reasonable action to maintain all rights,
      privileges and franchises necessary or desirable in the normal conduct of its
      business, except, in each case, as otherwise permitted by Section 6.4
      and
      except, the case of clause (ii) above, to the extent that failure to do so
      could not reasonably be expected to have a Material Adverse Effect; and
      (b) comply with all Contractual Obligations and Requirements of Law, except
      to the extent that failure to comply therewith could not, in the aggregate,
      reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    5.5  Maintenance
      of Property; Insurance.
      (a) Keep all Property and systems useful and necessary in its business in
      good working order and condition, ordinary wear and tear excepted and
      (b) maintain with financially sound and reputable insurance companies
      insurance on all its Property in at least such amounts and against at least
      such
      risks (but including in any event public liability, product liability and
      business interruption) as are usually insured against in the same general area
      by companies engaged in the same or a similar business.

     

    5.6  Inspection
      of Property; Books and Records; Discussions.
      (a) Keep proper books of records and account in which full, true and
      correct entries in conformity with GAAP and all Requirements of Law shall be
      made of all dealings and transactions in relation to its business and activities
      and (b) permit representatives of the Administrative Agent and any Lender
      to visit and inspect any of its properties and examine and make abstracts from
      any of its books and records at any reasonable time upon reasonable prior
      written notice, and to discuss the business, operations, properties and
      financial and other condition of the Borrower and its Subsidiaries with officers
      of the Borrower and its Subsidiaries;
      provided,
      that
      all such visits and inspections by all such representatives, shall not occur
      more than once in any twelve-month period.

     

    5.7  Notices.
      Promptly after receipt of actual knowledge thereof give notice to the
      Administrative Agent (who will furnish to each Lender) of:

     

    (a)  the
      occurrence of any Default or Event of Default;

     

    (b)  any
      (i) event of default under any Contractual Obligation of the Borrower or
      any of its Subsidiaries or (ii) litigation, investigation or proceeding
      which may exist at any time between the Borrower or any of its Subsidiaries
      and
      any Governmental Authority, that in either case, if not cured or if adversely
      determined, as the case may be, could reasonably be expected to have a Material
      Adverse Effect;

     

    (c)  any
      litigation or proceeding (other than the BAI Litigation and the Unzipped
      Litigation) affecting the Borrower or any of its Subsidiaries (i) in which
      the
      amount involved is $2,500,000 or more and not covered by insurance, (ii) in
      which injunctive or similar relief is sought or (iii) which relates to any
      Loan
      Document; 

     

    (d)  the
      following events, as soon as possible and in any event within 30 days after
      the
      Borrower knows or has reason to know thereof: (i) the occurrence of any
      Reportable Event with respect to any Plan, a failure to make any required
      contribution to a Plan, the creation of any Lien in favor of the PBGC or a
      Plan
      or any withdrawal from, or the termination, Reorganization or Insolvency of,
      any
      Multiemployer Plan or (ii) the institution of proceedings or the taking of
      any other action by the PBGC or the Borrower or any Commonly Controlled Entity
      or any Multiemployer Plan with respect to the withdrawal from, or the
      termination, Reorganization or Insolvency of, any Plan;

     

    (e)  any
      amendment or modification, or any waiver of any provision, of any Specified
      License Agreement; and

     

    (f)  any
      development or event that has had or could reasonably be expected to have a
      Material Adverse Effect.

     

    
      
        
        

      

      
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    Each
      notice pursuant to this Section shall be accompanied by a statement of a
      Responsible Officer setting forth details of the occurrence referred to therein
      and stating what action the Borrower or the relevant Subsidiary proposes to
      take
      with respect thereto.

     

    5.8  Environmental
      Laws.
      (a)
      Comply
      in all material respects with, and endeavor to ensure compliance in all material
      respects by all tenants and subtenants, if any, with, all applicable
      Environmental Laws, and obtain and comply in all material respects with and
      maintain, and endeavor to ensure that all tenants and subtenants obtain and
      comply in all material respects with and maintain, any and all licenses,
      approvals, notifications, registrations or permits required by applicable
      Environmental Laws.

     

    (b)  Conduct
      and complete all investigations, studies, sampling and testing, and all
      remedial, removal and other actions required under Environmental Laws and
      promptly comply in all material respects with all lawful orders and directives
      of all Governmental Authorities regarding Environmental Laws.

     

    5.9  Interest
      Rate Protection.
      In the
      case of the Borrower, within 120 days after the Initial Closing Date, enter
      into, and thereafter maintain for a period of not less than three years, Hedge
      Agreements to the extent necessary to provide that at least 30% of the aggregate
      principal amount of the Loans is subject to either a fixed interest rate or
      interest rate protection for a period of not less than three years, which such
      Hedge Agreements shall have terms and conditions reasonably satisfactory to
      the
      Administrative Agent; provided
      that
      Lehman Brothers Special Financing shall have been afforded an opportunity to
      provide such Hedge Agreements on terms satisfactory to the Borrower in its
      reasonable discretion.

     

    5.10  Additional
      Collateral, etc. (a)
      With
      respect to any Property acquired after the Initial Closing Date by any
      Subsidiary (other than (x) any real property or any Property described in
      paragraph (c)
      of this
      Section, (y) any Property subject to a Lien expressly permitted by Section
      6.3(g)
      and
      (z) Property acquired by an Excluded Foreign Subsidiary) as to which the
      Administrative Agent, for the benefit of the Secured Parties, does not have
      a
      perfected Lien, promptly (i) execute and deliver to the Administrative
      Agent such amendments to the Guarantee and Collateral Agreement or such other
      documents as the Administrative Agent deems necessary to grant to the
      Administrative Agent, for the benefit of the Secured Parties, a security
      interest in such Property and (ii) take all actions necessary to grant to
      the Administrative Agent, for the benefit of the Secured Parties, a perfected
      first priority security interest in such Property, including without limitation,
      the filing of UCC financing statements in such jurisdictions as may be required
      by the Guarantee and Collateral Agreement or by law.

     

    (b)  With
      respect to any fee interest in any real property having a value (together with
      improvements thereof) of at least $1,000,000 acquired after the Initial Closing
      Date by any Subsidiary (other than any such real property owned by an Excluded
      Foreign Subsidiary or subject to a Lien expressly permitted by
      Section 6.3(g)),
      promptly (i) execute and deliver a first priority Mortgage in favor of the
      Administrative Agent, for the benefit of the Secured Parties, covering such
      real
      property, (ii) if requested by the Administrative Agent, provide the
      Lenders with (x) title and extended coverage insurance covering such real
      property in an amount at least equal to the purchase price of such real property
      (or such other amount as shall be reasonably specified by the Administrative
      Agent) as well as a current ALTA survey thereof, together with a surveyor’s
      certificate and (y) any consents or estoppels reasonably deemed necessary
      by the Administrative Agent in connection with such Mortgage, each of the
      foregoing in form and substance reasonably satisfactory to the Administrative
      Agent and (iii) if requested by the Administrative Agent, deliver to the
      Administrative Agent legal opinions relating to the matters described above,
      which opinions shall be in form and substance, and from counsel, reasonably
      satisfactory to the Administrative Agent.

     

    
      
        
        

      

      
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    (c)  With
      respect to any new Subsidiary (other than an Excluded Foreign Subsidiary)
      created or acquired after the Initial Closing Date (which, for the purposes
      of
      this paragraph, shall include any existing Subsidiary that ceases to be an
      Excluded Foreign Subsidiary), by the Borrower or any of its Subsidiaries,
      promptly (i) execute and deliver to the Administrative Agent such
      amendments to the Guarantee and Collateral Agreement as the Administrative
      Agent
      deems necessary or advisable to grant to the Administrative Agent, for the
      benefit of the Secured Parties, a perfected first priority security interest
      in
      the Capital Stock of such new Subsidiary that is owned by the Borrower or any
      of
      its Subsidiaries, (ii) deliver to the Administrative Agent the certificates
      representing such Capital Stock, together with undated stock powers, in blank,
      executed and delivered by a duly authorized officer of the Borrower or such
      Subsidiary, as the case may be, (iii) cause such new Subsidiary (A) to
      become a party to the Guarantee and Collateral Agreement and (B) to take
      such actions necessary or advisable to grant to the Administrative Agent for
      the
      benefit of the Secured Parties a perfected first priority security interest
      in
      the Collateral described in the Guarantee and Collateral Agreement with respect
      to such new Subsidiary, including, without limitation, the filing of UCC
      financing statements in such jurisdictions as may be required by the Guarantee
      and Collateral Agreement or by law or as may be requested by the Administrative
      Agent, and (iv) if requested by the Administrative Agent, deliver to the
      Administrative Agent legal opinions relating to the matters described above,
      which opinions shall be in form and substance, and from counsel, reasonably
      satisfactory to the Administrative Agent.

     

    (d)  With
      respect to any new Excluded Foreign Subsidiary created or acquired after the
      Initial Closing Date by the Borrower or any of its Subsidiaries (other than
      any
      Excluded Foreign Subsidiaries), promptly (i) execute and deliver to the
      Administrative Agent such amendments to the Guarantee and Collateral Agreement
      or such other documents as the Administrative Agent deems necessary or advisable
      in order to grant to the Administrative Agent, for the benefit of the Secured
      Parties, a perfected first priority security interest in the Capital Stock
      of
      such new Subsidiary that is owned by the Borrower or any of its Subsidiaries
      (other than any Excluded Foreign Subsidiaries), (provided
      that in
      no event shall more than 65% of the total outstanding Capital Stock of any
      such
      new Excluded Foreign Subsidiary be required to be so pledged), (ii) deliver
      to the Administrative Agent the certificates representing such Capital Stock,
      together with undated stock powers, in blank, executed and delivered by a duly
      authorized officer of the Borrower or such Subsidiary, as the case may be,
      and
      take such other action as may be necessary or, in the opinion of the
      Administrative Agent, desirable to perfect the Lien of the Administrative Agent
      thereon, and (iii) if requested by the Administrative Agent, deliver to the
      Administrative Agent legal opinions relating to the matters described above,
      which opinions shall be in form and substance, and from counsel, reasonably
      satisfactory to the Administrative Agent.

     

    5.11  Further
      Assurances.
      From
      time to time execute and deliver, or cause to be executed and delivered, such
      additional instruments, certificates or documents, and take such actions, as
      the
      Administrative Agent may reasonably request for the purposes of implementing
      or
      effectuating the provisions of this Agreement and the other Loan Documents,
      or
      of more fully perfecting or renewing the rights of the Administrative Agent
      and
      the Lenders with respect to the Collateral (or with respect to any additions
      thereto or replacements or proceeds thereof or with respect to any other
      property or assets hereafter acquired by the Borrower or any Subsidiary which
      may be deemed to be part of the Collateral) pursuant hereto or thereto. Upon
      the
      exercise by the Administrative Agent or any Lender of any power, right,
      privilege or remedy pursuant to this Agreement or the other Loan Documents
      which
      requires any consent, approval, recording, qualification or authorization of
      any
      Governmental Authority, the Borrower will execute and deliver, or will cause
      the
      execution and delivery of, all applications, certifications, instruments and
      other documents and papers that the Administrative Agent or such Lender may
      be
      required to obtain from the Borrower or any of its Subsidiaries for such
      governmental consent, approval, recording, qualification or
      authorization.

     

    
      
        
        

      

      
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    SECTION 6.  NEGATIVE
      COVENANTS

     

    The
      Borrower hereby agrees that, so long as any Loan or other amount is owing to
      any
      Lender or the Administrative Agent hereunder, the Borrower shall not, and shall
      not permit any of its Subsidiaries to, directly or indirectly:

     

    6.1  Total
      Leverage Ratio.
      Permit
      the Total Leverage Ratio as at the last day of any period of four consecutive
      fiscal quarters of the Borrower (or, if less, the number of full fiscal quarters
      subsequent to the Initial Closing Date) ending with any fiscal quarter during
      the period set forth below to exceed the ratio set forth below opposite such
      fiscal quarter:

     

    
      	
              Fiscal
                Period

            	
              Total
                Leverage Ratio

            
	
              June
                30, 2007 - December 31, 2007

            	
              5.00:1.00

            
	
              March
                31, 2008 -December 31, 2008

            	
              4.75:1.00

            
	
              March
                31, 2009 -December 31, 2009

            	
              4.50:1.00

            
	
              March
                31, 2010 -December 31, 2010

            	
              4.25:1.00

            
	
              March
                31, 2011 and thereafter

            	
              4.00:1.00

            

    

    

    ;
      provided,
      that
      for the purposes of determining the ratio described above for the fiscal
      quarters of the Borrower ending June 30, 2007, September 30. 2007 and December
      31, 2007, Consolidated EBITDA for the relevant period shall be deemed to equal
      Consolidated EBITDA for such fiscal quarter multiplied
      by
      4, 2 and
      4/3, respectively.

     

    6.2  Limitation
      on Indebtedness.
      Create,
      incur, assume or suffer to exist any Indebtedness, except:

     

    (a)  Indebtedness
      of any Loan Party pursuant to any Loan Document;

     

    (b)  Indebtedness
      of any Wholly Owned Subsidiary Guarantor to the Borrower or any other
      Subsidiary;

     

    (c)  Indebtedness
      (including, without limitation, Capital Lease Obligations) secured by Liens
      permitted by Section 6.3(g) in an aggregate principal amount not to exceed
      $10,000,000 at any one time outstanding;

     

    (d)  Indebtedness
      outstanding on the Initial Closing Date and listed on Schedule 6.2(d) and
      any refinancings, refundings, renewals or extensions thereof (without any
      increase in the principal amount thereof or any shortening of the maturity
      of
      any principal amount thereof);

     

    (e)  Guarantee
      Obligations made in the ordinary course of business by the Borrower or any
      of
      its Subsidiaries of obligations of any Subsidiary Guarantor;

     

    (f)  Guarantee
      Obligations made in the ordinary course of business by the Borrower of
      obligations of any Unrestricted Subsidiary in an aggregate amount, together
      with
      any Investment made pursuant to Section 6.8(k) and any Restricted Cash used
      to
      fund a Permitted Unrestricted Subsidiary Acquisition, not to exceed $30,000,000
      plus the Retained Excess Cash Flow Amount during the term of this
      Agreement;

     

    
      
        
        

      

      
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    (g)  unsecured,
      senior subordinated or subordinated Indebtedness of the Borrower (including
      (x)
      any unsecured, senior subordinated or subordinated guarantee by the Borrower
      of
      a Permitted Convertible Notes Offering of an Unrestricted Subsidiary and (y)
      unsecured, senior subordinated or subordinated guarantees by any Subsidiary
      Guarantor of Indebtedness of the Borrower) (such Indebtedness and/or guarantees
      incurred under this clause (g) or refinancings thereof being collectively
      referred to as the “Permitted
      Subordinated Indebtedness”);
      provided
      that (i)
      no scheduled principal payments, prepayments, redemptions or sinking fund or
      like payments of any Permitted Subordinated Indebtedness shall be required
      prior
      to the date at least 180 days after the Loan Maturity Date (or, if any
      Incremental Loans are outstanding at the time of such incurrence, the
      Incremental Loan Maturity Date, if later) (unless such Indebtedness constitutes
      a Permitted Convertible Notes Offering, in which case the maturity can be five
      years, provided that the Loans shall become due and payable six months prior
      to
      the maturity date of such Permitted Convertible Notes Offering), (ii) the terms
      of subordination applicable to any Permitted Subordinated Indebtedness shall
      be
      reasonably satisfactory to the Administrative Agent and shall, in any event,
      define “senior indebtedness” or a similar phrase for purposes thereof to include
      all of the Obligations of the Loan Parties, (iii) no Default or Event of Default
      shall have occurred and be continuing at the time of incurrence of such
      Indebtedness or would result therefrom and (iv) after giving effect to the
      incurrence of such Permitted Subordinated Indebtedness, the Borrower shall
      be in
pro forma
      compliance with Section 6.1;
      and
provided,
      further,
      that
      notwithstanding anything to the contrary contained in this Agreement, the
      Borrower shall not permit an Unrestricted Subsidiary to use the Net Cash
      Proceeds of any Permitted Convertible Notes Offering unless the Borrower would
      have been able to use such Net Cash Proceeds in accordance with this Agreement
      had such Net Cash Proceeds been received by the Borrower;

     

    (h)  (i)
      obligations of the Borrower for any Earn-Out Consideration under the Acquisition
      Documentation and (ii) obligations of the Borrower or any of its Subsidiaries
      for any other Earn-Out Consideration payable in cash in an aggregate amount
      (for
      this clause (ii)) not to exceed the greater of $10,000,000 or 50% of the initial
      purchase price of the relevant Permitted Acquisition Transaction; and

     

    (i)  additional
      Indebtedness of the Borrower or any of its Subsidiaries in an aggregate
      principal amount (for the Borrower and all Subsidiaries) not to exceed
      $5,000,000 at any one time outstanding.

     

    6.3  Limitation
      on Liens.
      Create,
      incur, assume or suffer to exist any Lien upon any of its Property, whether
      now
      owned or hereafter acquired, except for:

     

    (a)  Liens
      for
      taxes not yet due or that are being contested in good faith by appropriate
      proceedings, provided
      that
      adequate reserves with respect thereto are maintained on the books of the
      Borrower or its Subsidiaries, as the case may be, in conformity with
      GAAP;

     

    (b)  carriers’,
      warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
      arising in the ordinary course of business;

     

    (c)  pledges
      or deposits in connection with workers’ compensation, unemployment insurance and
      other social security legislation;

     

    (d)  deposits
      to secure the performance of bids, trade contracts (other than for borrowed
      money), leases, statutory obligations, surety and appeal bonds, including the
      Replevin Bond, performance bonds and other obligations of a like nature incurred
      in the ordinary course of business;

     

    
      
        
        

      

      
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    (e)  easements,
      rights-of-way, restrictions and other similar encumbrances incurred in the
      ordinary course of business that do not materially interfere with the ordinary
      conduct of the business of the Borrower or any of its Subsidiaries;

     

    (f)  Liens
      in
      existence on the Initial Closing Date listed on Schedule 6.3(f), securing
      Indebtedness permitted by Section 6.2(d),
      provided
      that no
      such Lien is spread to cover any additional Property after the Initial Closing
      Date and that the amount of Indebtedness secured thereby is not
      increased;

     

    (g)  Liens
      securing Indebtedness of the Borrower or any other Subsidiary incurred pursuant
      to Section 6.2(c)
      to
      finance the acquisition of fixed or capital assets, provided
      that
      (i) such Liens shall be created substantially simultaneously with the
      acquisition of such fixed or capital assets, (ii) such Liens do not at any
      time encumber any Property other than the Property financed by such Indebtedness
      and (iii) the amount of Indebtedness secured thereby is not
      increased;

     

    (h)  Liens
      created pursuant to the Security Documents;

     

    (i)  any
      interest or title of a lessor under any lease entered into by the Borrower
      or
      any other Subsidiary in the ordinary course of its business and covering only
      the assets so leased; 

     

    (j)  Liens
      on
      the Capital Stock of any Unrestricted Subsidiary to secure the Guarantee
      Obligations of the Borrower with respect to such Unrestricted Subsidiary
      permitted by Section 6.2(f); 

     

    (k)  Liens
      not
      otherwise permitted by this Section so long as neither (i) the
      aggregate outstanding principal amount of the obligations secured thereby nor
      (ii) the aggregate fair market value (determined, in the case of each such
      Lien, as of the date such Lien is incurred) of the assets subject thereto
      exceeds (as to the Borrower and all Subsidiaries) $5,000,000 at any one
      time;

     

    (l)  any
      Lien
      with respect to the Dan River Agreement; 

     

    (m)  Liens
      on
      Unrestricted Cash;

     

    (n)  the
      interests of licensees under license agreements entered into in the ordinary
      course of business; and

     

    (o)  (i)
      Liens
      granted by the Borrower in favor of Unrestricted Subsidiaries in connection
      with
      Permitted Securitization Transactions and Permitted Unrestricted Subsidiary
      Acquisitions and (ii) Liens granted by the Borrower in favor of Restricted
      Subsidiaries in connection with Permitted Acquisitions and Permitted Foreign
      Subsidiary Acquisitions. 

     

    6.4  Limitation
      on Fundamental Changes.
      Enter
      into any merger, consolidation or amalgamation, or liquidate, wind up or
      dissolve itself (or suffer any liquidation or dissolution), or Dispose of all
      or
      substantially all of its Property or business, except that:

     

    (a)  any
      Subsidiary of the Borrower may be merged or consolidated with or into any Wholly
      Owned Subsidiary Guarantor (provided
      that
      (i) the Wholly Owned Subsidiary Guarantor shall be the continuing or
      surviving entity or (ii) simultaneously with such transaction, the
      continuing or surviving entity shall become a Wholly Owned Subsidiary Guarantor
      and the Borrower shall comply with Section 5.10
      in
      connection therewith); and

     

    
      
        
        

      

      
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    (b)  any
      Subsidiary of the Borrower may Dispose of any or all of its assets (upon
      voluntary liquidation or otherwise) to any Wholly Owned Subsidiary
      Guarantor.

     

    6.5  Limitation
      on Disposition of Property.
      Dispose
      of any of its Property (including, without limitation, receivables and leasehold
      interests), whether now owned or hereafter acquired, or, in the case of any
      Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any
      Person, except:

     

    (a)  the
      Disposition of obsolete or worn out Property in the ordinary course of
      business;

     

    (b)  the
      sale
      of inventory in the ordinary course of business;

     

    (c)  the
      Disposition of cash for payment of any Earn-Out Consideration obligations
      permitted by Section 6.2(h) to the extent related to Permitted Acquisitions
      and
      Permitted Foreign Subsidiary Acquisitions;

     

    (d)  Dispositions
      permitted by Section 6.4(b);

     

    (e)  the
      Disposition of any or all of the assets of the Borrower to any Wholly Owned
      Subsidiary Guarantor;

     

    (f)  the
      sale
      or issuance of any Subsidiary’s Capital Stock to the Borrower or any Subsidiary
      Guarantor;

     

    (g)  the
      Disposition of the Capital Stock of any Unrestricted Subsidiary or its
      assets;

     

    (h)  Permitted
      Securitization Transactions;

     

    (i)  Permitted
      Unrestricted Subsidiary Acquisitions;

     

    (j)  the
      Disposition of other assets having a fair market value not to exceed $10,000,000
      in the aggregate for any of the Borrower’s fiscal years; 

     

    (k)  any
      Recovery Event, provided,
      that
      the requirements of Section 2.7(b)
      are
      complied with in connection therewith; 

     

    (l)  Dispositions
      of Unrestricted Cash;

     

    (m)  licenses
      of Intellectual Property in the ordinary course of business; and

     

    (n)  Permitted
      Foreign Subsidiary Acquisitions.

     

    6.6  Limitation
      on Restricted Payments.
      Declare
      or pay any dividend on, or make any payment on account of, or set apart assets
      for a sinking or other analogous fund for, the purchase, redemption, defeasance,
      retirement or other acquisition of, any Capital Stock of the Borrower or any
      Subsidiary, whether now or hereafter outstanding, or make any other distribution
      in respect thereof, either directly or indirectly, whether in cash or property
      or in obligations of the Borrower or any Subsidiary, or enter into any
      derivatives or other transaction with any financial institution, commodities
      or
      stock exchange or clearinghouse (a “Derivatives
      Counterparty”)
      obligating the Borrower or any Subsidiary to make payments to such Derivatives
      Counterparty as a result of any change in market value of any such Capital
      Stock
      (collectively, “Restricted
      Payments”),
      except that:

     

    
      
        
        

      

      
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    (a)  any
      Subsidiary may make Restricted Payments to any Wholly Owned Subsidiary Guarantor
      or the Borrower;

     

    (b)  the
      Borrower may make Restricted Payments with Unrestricted Cash;

     

    (c)  the
      Borrower may make Restricted Payments in an aggregate amount not to exceed
      $5,000,000 plus, if the Total Leverage Ratio as of the last day of the most
      recent fiscal quarter for which financial statements have been delivered
      pursuant to Section 5.1 (after giving pro forma effect to the making of
      such Restricted Payment) is less than 2.50:1.00, the Retained Excess Cash Flow
      Amount;

     

    (d)  the
      Borrower may purchase the Borrower’s common stock or common stock options from
      present or former officers or employees of the Borrower or any Subsidiary upon
      the death, disability or termination of employment of such officer or employee,
      provided,
      that
      the aggregate amount of payments under this paragraph subsequent to the Initial
      Closing Date (net of any proceeds received by the Borrower subsequent to the
      Initial Closing Date in connection with resales of any common stock or common
      stock options so purchased) shall not exceed $5,000,000; and

     

    (e)  the
      Borrower may enter into hedge and warrant option transactions in connection
      with
      a Permitted Convertible Notes Offering.

     

    6.7  Limitation
      on Capital Expenditures.
      Make or
      commit to make any Capital Expenditure, except (i) Capital Expenditures of
      the Borrower and its Subsidiaries in the ordinary course of business not
      exceeding $5,000,000 per fiscal year; provided, that (x) up to $2,500,000
      of any such amount referred to above, if not so expended in the fiscal year
      for
      which it is permitted, may be carried over for expenditure in the next
      succeeding fiscal year and (y) Capital Expenditures made pursuant to this
      Section during any fiscal year shall be deemed made, first, in respect of
      amounts permitted for such fiscal year as provided above and second, in respect
      of amounts carried over from the prior fiscal year pursuant to clause (x)
      above; and (ii) Capital Expenditures made with Unrestricted Cash.

     

    6.8  Limitation
      on Investments.
      Make
      any advance, loan, extension of credit (by way of guaranty or otherwise) or
      capital contribution to, or purchase any Capital Stock, bonds, notes, debentures
      or other debt securities of, or any assets constituting an ongoing business
      from, or make any other investment in, any other Person (all of the foregoing,
      “Investments”),
      except:

     

    (a)  extensions
      of trade credit in the ordinary course of business;

     

    (b)  Investments
      in Cash Equivalents;

     

    (c)  Investments
      arising in connection with the incurrence of Indebtedness permitted by
      Section 6.2(b),
      (e) and
      (f);

     

    (d)  loans
      and
      advances to employees of the Borrower or any Subsidiaries of the Borrower in
      the
      ordinary course of business (including, without limitation, for travel,
      entertainment and relocation expenses) in an aggregate amount for the Borrower
      and Subsidiaries of the Borrower not to exceed $1,000,000 at any one time
      outstanding;

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    (e)  the
      Acquisitions;

     

    (f)  Investments
      in assets useful in the Borrower’s business made by any Wholly Owned Subsidiary
      Guarantor with the proceeds of any Reinvestment Deferred Amount; 

     

    (g)  Investments
      (other than those relating to the incurrence of Indebtedness permitted by
      Section 6.8(c))
      by the
      Borrower or any of its Subsidiaries in any Person that, prior to such
      Investment, is a Wholly Owned Subsidiary Guarantor; 

     

    (h)  Permitted
      Acquisitions; 

     

    (i)  Permitted
      Securitization Transactions; 

     

    (j)  Permitted
      Unrestricted Subsidiary Acquisitions; 

     

    (k)  in
      addition to Investments otherwise expressly permitted by this Section,
      Investments by the Borrower or any of its Subsidiaries in an aggregate amount
      (valued at cost),
      together with any Guarantee Obligations of the Borrower incurred pursuant to
      Section 6.2(f) and any Restricted Cash used to fund a Permitted Unrestricted
      Subsidiary Acquisition, not
      to
      exceed $30,000,000 plus the Retained Excess Cash Flow Amount during the term
      of
      this Agreement; provided
      that (i)
      no Default or Event of Default shall have occurred and be continuing at the
      time
      of such Investment or shall result therefrom and (ii) the Borrower is in
pro forma
      compliance with Section 6.1
      before
      and after giving effect to such Investment; 

     

    (l)  Investments
      (other than an acquisition of all or a majority controlling interest in the
      Capital Stock, or all or substantially all of the assets, of any Person, or
      of
      all or substantially all of the assets constituting a division, product line
      or
      business line of any Person) made with Unrestricted Cash;

     

    (m)  Permitted
      Foreign Subsidiary Acquisitions;

     

    (n)  Investments
      pursuant to the Rocawear Joint Venture Agreement made on the Initial Closing
      Date and any future Investments made pursuant to the Rocawear Joint Venture
      Agreement, which future Investments shall not exceed $5,000,000 in the
      aggregate; and

     

    (o)  hedge
      and
      warrant option transactions entered into by the Borrower in connection with
      a
      Permitted Convertible Notes Offering.

     

    6.9  Limitation
      on Optional Payments and Modifications of Debt Instruments, etc. (a)
      Make or offer to make any optional or voluntary payment, prepayment, repurchase
      or redemption of, or otherwise voluntarily or optionally defease, any Permitted
      Subordinated Indebtedness, or segregate funds for any such payment, prepayment,
      repurchase, redemption or defeasance, or enter into any derivative or other
      transaction with any Derivatives Counterparty obligating the Borrower or any
      Subsidiary to make payments to such Derivatives Counterparty as a result of
      any
      change in market value of any Permitted Subordinated Indebtedness (other than
      any hedge and warrant option transactions entered into by the Borrower in
      connection with a Permitted Convertible Notes Offering), (b) amend, modify
      or
      otherwise change, or consent or agree to any amendment, modification, waiver
      or
      other change to, any of the terms of any Permitted Subordinated Indebtedness
      (other than any such amendment, modification, waiver or other change which
      (i)
      would extend the maturity or reduce the amount of any payment of principal
      thereof, reduce the rate or extend the date for payment of interest thereon
      or
      relax any covenant or other restriction applicable to the Borrower or any of
      its
      Subsidiaries and (ii) does not involve the payment of a consent fee), (c)
      designate any Indebtedness of the Borrower or any of its Subsidiaries (other
      than the Obligations) as “Designated Senior Indebtedness” for the purposes of
      any Permitted Subordinated Indebtedness or (d) amend its certificate of
      incorporation in any manner reasonably determined by the Administrative Agent
      to
      be materially adverse to the Lenders.

     

    
      
        
        

      

      
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    6.10  Limitation
      on Transactions with Affiliates.
      Enter
      into any transaction, including, without limitation, any purchase, sale, lease
      or exchange of Property, the rendering of any service or the payment of any
      management, advisory or similar fees, with any Affiliate (other than any Wholly
      Owned Subsidiary Guarantor) unless such transaction is (a) otherwise permitted
      under this Agreement, (b) in the ordinary course of business of the Borrower
      or
      such Subsidiary, as the case may be, and (c) upon fair and reasonable terms
      no
      less favorable to the Borrower or such Subsidiary, as the case may be, than
      it
      would obtain in a comparable arm’s length transaction with a Person that is not
      an Affiliate.

     

    6.11  Limitation
      on Sales and Leasebacks.
      Enter
      into any arrangement with any Person providing for the leasing by the Borrower
      or any Subsidiary of real or personal property which has been or is to be sold
      or transferred by the Borrower or such Subsidiary to such Person or to any
      other
      Person to whom funds have been or are to be advanced by such Person on the
      security of such property or rental obligations of the Borrower or such
      Subsidiary.

     

    6.12  Limitation
      on Changes in Fiscal Periods.
      Permit
      the fiscal year of the Borrower to end on a day other than December 31 or
      change the Borrower’s method of determining fiscal quarters, provided that the
      Borrower may make one election after the Initial Closing Date to change its
      fiscal year end, if the Borrower enters into such amendments to this Agreement
      as the Administrative Agent shall request to reflect such change, including
      modifications to this Section, such that the covenants affected by such change
      shall have the same effect (or, in any case, be substantively no less favorable
      to the Lenders, in the reasonable determination of the Administrative Agent)
      after giving effect thereto as if such change were not made. The Lenders hereby
      authorize the Administrative Agent to enter into such amendments to effect
      such
      modifications, if any, in accordance with the provisions of this Section.

     

    6.13  Limitation
      on Negative Pledge Clauses.
      Enter
      into or suffer to exist or become effective any agreement that prohibits or
      limits the ability of the Borrower or any of the Subsidiary Guarantors to
      create, incur, assume or suffer to exist any Lien upon the Collateral, whether
      now owned or hereafter acquired, to secure the Obligations or, in the case
      of
      any Subsidiary Guarantor, its obligations under the Guarantee and Collateral
      Agreement, other than (a) this Agreement and the other Loan Documents and
      (b) any agreements governing any purchase money Liens or Capital Lease
      Obligations otherwise permitted hereby (in which case, any prohibition or
      limitation shall only be effective against the assets financed
      thereby).

     

    6.14  Limitation
      on Restrictions on Subsidiary Distributions.
      Enter
      into or suffer to exist or become effective any consensual encumbrance or
      restriction on the ability of any Subsidiary to (a) make Restricted
      Payments in respect of any Capital Stock of such Subsidiary held by, or pay
      any
      Indebtedness owed to, the Borrower or any other Subsidiary, (b) make
      Investments in the Borrower or any other Subsidiary or (c) transfer any of
      its assets to the Borrower or any other Subsidiary, except for such encumbrances
      or restrictions existing under or by reason of (i) any restrictions
      existing under the Loan Documents, (ii) any restrictions with respect to a
      Subsidiary imposed pursuant to an agreement that has been entered into in
      connection with the Disposition of all or substantially all of the Capital
      Stock
      or assets of such Subsidiary and (iii) restrictions with respect to
      distributions by any Foreign Subsidiary.

     

    
      
        
        

      

      
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    6.15  Limitation
      on Lines of Business.
      Enter
      into any business, either directly or through any Subsidiary, except for (i)
      those businesses in which the Borrower and its Subsidiaries are engaged on
      the
      date of this Agreement (after giving effect to the Acquisitions) or that are
      reasonably related thereto and (ii) those businesses in which the Borrower
      and
      its Subsidiaries are not engaged on the date of this Agreement if (x) such
      businesses are acquired in connection with a Permitted Acquisition Transaction
      and (y) the Borrower intends to Dispose of such businesses or otherwise
      transition such businesses into the licensing business or businesses reasonably
      related thereto.

     

    6.16  Limitation
      on Amendments to Acquisition Documentation.
      (a) Amend, supplement or otherwise modify (pursuant to a waiver or
      otherwise) the terms and conditions of the indemnities and licenses (other
      than
      the Wal-Mart License Agreement) furnished to the Borrower or any of its
      Subsidiaries pursuant to the Acquisition Documentation such that after giving
      effect thereto such indemnities or licenses shall be materially less favorable
      to the interests of the Loan Parties or the Lenders with respect thereto or
      (b) otherwise amend, supplement or otherwise modify the terms and
      conditions of the Acquisition Documentation except to the extent that any such
      amendment, supplement or modification could not reasonably be expected to have
      a
      Material Adverse Effect or amend or otherwise modify the terms and conditions
      of
      any Specified License Agreement (other than the Wal-Mart License Agreement)
      such
      that after giving effect thereto such Specified License Agreement shall be
      materially less favorable to the interests of the Loan Parties or the Lenders
      with respect thereto.

     

    6.17  Limitation
      on Hedge Agreements.
      Enter
      into any Hedge Agreement other than Hedge Agreements entered into in the
      ordinary course of business, and not for speculative purposes, to protect
      against changes in interest rates or foreign exchange rates. 

     

    SECTION 7.  EVENTS
      OF
      DEFAULT

     

    If
      any of
      the following events shall occur and be continuing:

     

    (a)  the
      Borrower shall fail to pay any principal of any Loan when due in accordance
      with
      the terms hereof; or the Borrower shall fail to pay any interest on any Loan,
      or
      any other amount payable hereunder or under any other Loan Document, within
      five
      days after any such interest or other amount becomes due in accordance with
      the
      terms hereof or thereof; or

     

    (b)  any
      representation or warranty made or deemed made by any Loan Party herein or
      in
      any other Loan Document or that is contained in any certificate, document or
      financial or other statement furnished by it at any time under or in connection
      with this Agreement or any such other Loan Document shall prove to have been
      inaccurate in any material respect on or as of the date made or deemed made
      or
      furnished; or

     

    (c)  any
      Loan
      Party shall default in the observance or performance of any agreement contained
      in clause (i) of Section 5.4(a)
      (with
      respect to the Borrower only), Section 5.7(a)
      or
Section 6
      of this
      Agreement; or

     

    (d)  any
      Loan
      Party shall default in the observance or performance of any other agreement
      contained in this Agreement or any other Loan Document (other than as provided
      in paragraphs (a)
      through
(c)
      of this
      Section), and such default shall continue unremedied for a period of
      30 days; or

     

    (e)  the
      Borrower or any of its Subsidiaries shall (i) default in making any payment
      of any principal of any Indebtedness (including, without limitation, any
      Guarantee Obligation, but excluding the Loans) on the scheduled or original
      due
      date with respect thereto; or (ii) default in making any payment of any
      interest on any such Indebtedness beyond the period of grace, if any, provided
      in the instrument or agreement under which such Indebtedness was created; or
      (iii) default in the observance or performance of any other agreement or
      condition relating to any such Indebtedness or contained in any instrument
      or
      agreement evidencing, securing or relating thereto, or any other event shall
      occur or condition exist, the effect of which default or other event or
      condition is to cause, or to permit the holder or beneficiary of such
      Indebtedness (or a trustee or agent on behalf of such holder or beneficiary)
      to
      cause (other than any unexercised right of conversion provided for in a
      Permitted Convertible Notes Offering), with the giving of notice if required,
      such Indebtedness to become due prior to its stated maturity or to become
      subject to a mandatory offer to purchase by the obligor thereunder or (in the
      case of any such Indebtedness constituting a Guarantee Obligation) to become
      payable; provided,
      that
      (x) a default, event or condition described in clause (i), (ii) or (iii) of
      this paragraph (e)
      shall
      not at any time constitute an Event of Default unless, at such time, one or
      more
      defaults, events or conditions of the type described in clauses (i), (ii)
      and (iii) of this paragraph (e)
      shall
      have occurred and be continuing with respect to Indebtedness the outstanding
      principal amount of which exceeds in the aggregate $25,000,000 and (y) a
      default, event or condition described in clause (iii) of this paragraph (e)
      with
      respect to a Permitted Convertible Notes Offering shall not at any time
      constitute an Event of Default if the holders of such Permitted Convertible
      Notes Offering holding $25,000,000 or less thereof elect to cause the purchase
      thereof by the obligor thereunder or if the holders of such Permitted
      Convertible Notes Offering that elect to cause the purchase thereof by the
      obligor thereunder are paid with Unrestricted Cash; or

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    

    (f)  (i) the
      Borrower or any of its Subsidiaries shall commence any case, proceeding or
      other
      action (A) under any existing or future law of any jurisdiction, domestic
      or foreign, relating to bankruptcy, insolvency, reorganization or relief of
      debtors, seeking to have an order for relief entered with respect to it, or
      seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
      arrangement, adjustment, winding-up, liquidation, dissolution, composition
      or
      other relief with respect to it or its debts, or (B) seeking appointment of
      a receiver, trustee, custodian, conservator or other similar official for it
      or
      for all or any substantial part of its assets, or , the Borrower or any of
      its
      Subsidiaries shall make a general assignment for the benefit of its creditors;
      or (ii) there shall be commenced against, the Borrower or any of its
      Subsidiaries any case, proceeding or other action of a nature referred to in
      clause (i) above that (A) results in the entry of an order for relief
      or any such adjudication or appointment or (B) remains undismissed,
      undischarged or unbonded for a period of 60 days; or (iii) there shall
      be commenced against, the Borrower or any of its Subsidiaries any case,
      proceeding or other action seeking issuance of a warrant of attachment,
      execution, distraint or similar process against all or any substantial part
      of
      its assets that results in the entry of an order for any such relief that shall
      not have been vacated, discharged, or stayed or bonded pending appeal within
      60 days from the entry thereof; or (iv), the Borrower or any of its
      Subsidiaries shall take any action in furtherance of, or indicating its consent
      to, approval of, or acquiescence in, any of the acts set forth in
      clause (i), (ii), or (iii) above; or (v), the Borrower or any of its
      Subsidiaries shall generally not, or shall be unable to, or shall admit in
      writing its inability to, pay its debts as they become due; or

     

    (g)  (i) any
      Person shall engage in any “prohibited transaction” (as defined in
      Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
      (ii) any “accumulated funding deficiency” (as defined in Section 302
      of ERISA), whether or not waived, shall exist with respect to any Plan, or
      any
      Lien in favor of the PBGC or a Plan shall arise on the assets of the Borrower
      or
      any Commonly Controlled Entity, (iii) a Reportable Event shall occur with
      respect to, or proceedings shall commence to have a trustee appointed, or a
      trustee shall be appointed, to administer or to terminate, any Single Employer
      Plan, which Reportable Event or commencement of proceedings or appointment
      of a
      trustee is, in the reasonable opinion of the Required Lenders, likely to result
      in the termination of such Plan for purposes of Title IV of ERISA,
      (iv) any Single Employer Plan shall terminate for purposes of Title IV
      of ERISA, (v) the Borrower or any Commonly Controlled Entity shall, or in
      the reasonable opinion of the Required Lenders shall be likely to, incur any
      liability in connection with a withdrawal from, or the Insolvency or
      Reorganization of, a Multiemployer Plan or (vi) any other event or
      condition shall occur or exist with respect to a Plan; and in each case in
      clauses (i) through (vi) above, such event or condition, together with all
      other such events or conditions, if any, could, in the sole judgment of the
      Required Lenders, reasonably be expected to have a Material Adverse Effect;
      or

     

    
      
        
        

      

      
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    (h)  one
      or
      more judgments or decrees shall be entered against the Borrower or any of its
      Subsidiaries involving for the Borrower and its Subsidiaries taken as a whole
      a
      liability (not paid or fully covered by insurance as to which the relevant
      insurance company has acknowledged coverage) of $25,000,000 or more, and all
      such judgments or decrees shall not have been vacated, discharged, stayed or
      bonded pending appeal within 30 days from the entry thereof;
      or

     

    (i)  any
      of
      the Security Documents shall cease, for any reason (other than by reason of
      the
      express release thereof pursuant to Section 9.15),
      to be
      in full force and effect, or any Loan Party or any Affiliate of any Loan Party
      shall so assert, or any Lien created by any of the Security Documents shall
      cease to be enforceable and of the same effect and priority purported to be
      created thereby; or

     

    (j)  the
      guarantee contained in Section 2 of the Guarantee and Collateral Agreement
      shall cease, for any reason (other than by reason of the express release thereof
      pursuant to Section 9.15),
      to be
      in full force and effect or any Loan Party or any Affiliate of any Loan Party
      shall so assert; or

     

    (k) any
      Change of Control shall occur; or

     

    (l) (i)
      any
      Specified License Agreement shall terminate or otherwise cease, for any reason,
      to be in full force and effect or cease to be the legally valid, binding and
      enforceable obligation of any Person party thereto; (ii) any Person party
      thereto shall, directly or indirectly, contest such effectiveness, validity,
      binding nature or enforceability by the filing of a claim, complaint or notice
      with an arbitrator or any court or other Governmental Authority; (iii) any
      party
      to a Specified License Agreement shall fail to perform or observe the material
      terms or conditions thereof (including, without limitation, the payment terms
      and conditions) or shall breach or otherwise be in default thereunder, in any
      case, beyond any applicable grace period expressly provided for in such
      Specified License Agreement, and any such party pursues a right of termination
      that could reasonably be expected to be successful in a court of law; or (iv)
      any party to a Specified License Agreement shall assign (or permit any
      counterparty to assign) any of its rights or obligations under any Specified
      License Agreement other than an assignment to an Affiliate of such party so
      long
      as such assignment is permitted by the applicable Specified License Agreement
      and is not and could not reasonably be expected to be materially adverse to
      the
      Lenders; provided that it shall not be an Event of Default under this paragraph
      if (x) the Borrower shall be in pro forma
      compliance with Section 6.1 (calculated without giving effect to such Specified
      License Agreement) or (y) such Specified License Agreement is replaced (whether
      or not with the same or different parties or the same or different trademarks)
      on or prior to the date that occurs 90 days after any event specified in this
      paragraph and such replacement contract is for a period of at least two years
      and provides revenue to the applicable Subsidiary in an amount equal to at
      least
      the amount that would cause the Borrower to be in pro forma
      compliance
      with Section 6.1 (calculated after giving effect to such replacement); then,
      and
      in any such event, (A) if such event is an Event of Default specified in
      clause (i) or (ii) of paragraph (f)
      above
      with respect to the Borrower, automatically the Commitments shall immediately
      terminate and the Loans hereunder (with accrued interest thereon) and all other
      amounts owing under this Agreement and the other Loan Documents shall
      immediately become due and payable, and (B) if such event is any other
      Event of Default, with the consent of the Required Lenders, the Administrative
      Agent may, or upon the request of the Required Lenders, the Administrative
      Agent
      shall, by notice to the Borrower, declare the Loans hereunder (with accrued
      interest thereon) and all other amounts owing under this Agreement and the
      other
      Loan Documents to be due and payable forthwith, whereupon the same shall
      immediately become due and payable.

    
      
        
        

      

      
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    SECTION 8.  THE
      ADMINISTRATIVE AGENT

     

    8.1  Appointment.
      Each
      Lender hereby irrevocably designates and appoints the Administrative Agent
      as
      the agent of such Lender under this Agreement and the other Loan Documents,
      and
      each Lender irrevocably authorizes the Administrative Agent, in such capacity,
      to take such action on its behalf under the provisions of this Agreement and
      the
      other Loan Documents and to exercise such powers and perform such duties as
      are
      expressly delegated to the Administrative Agent by the terms of this Agreement
      and the other Loan Documents, together with such other powers as are reasonably
      incidental thereto. Notwithstanding any provision to the contrary elsewhere
      in
      this Agreement, the Administrative Agent shall have no duties or
      responsibilities, except those expressly set forth herein, or any fiduciary
      relationship with any Lender, and no implied covenants, functions,
      responsibilities, duties, obligations or liabilities shall be read into this
      Agreement or any other Loan Document or otherwise exist against the
      Administrative Agent.

     

    8.2  Delegation
      of Duties.
      The
      Administrative Agent may execute any of its duties under this Agreement and
      the
      other Loan Documents by or through agents or attorneys-in-fact and shall be
      entitled to advice of counsel concerning all matters pertaining to such duties.
      The Administrative Agent shall not be responsible for the negligence or
      misconduct of any agents or attorneys-in-fact selected by it with reasonable
      care.

     

    8.3  Exculpatory
      Provisions.
      Neither
      the Administrative Agent nor any of its officers, directors, employees, agents,
      attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
      taken or omitted to be taken by it or such Person under or in connection with
      this Agreement or any other Loan Document (except to the extent that any of
      the
      foregoing are found by a final and nonappealable decision of a court of
      competent jurisdiction to have resulted from its or such Person’s own gross
      negligence or willful misconduct) or (ii) responsible in any manner to any
      of the Lenders for any recitals, statements, representations or warranties
      made
      by any Loan Party or any officer thereof contained in this Agreement or any
      other Loan Document or in any certificate, report, statement or other document
      referred to or provided for in, or received by the Administrative Agent under
      or
      in connection with, this Agreement or any other Loan Document or for the value,
      validity, effectiveness, genuineness, enforceability or sufficiency of this
      Agreement or any other Loan Document or for any failure of any Loan Party to
      perform its obligations hereunder or thereunder. The Administrative Agent shall
      not be under any obligation to any Lender to ascertain or to inquire as to
      the
      observance or performance of any of the agreements contained in, or conditions
      of, this Agreement or any other Loan Document, or to inspect the properties,
      books or records of any Loan Party.

     

    
      
        
        

      

      
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    8.4  Reliance
      by Administrative Agent.
      The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any instrument, writing, resolution, notice, consent, certificate,
      affidavit, letter, telecopy, telex or teletype message, statement, order or
      other document or conversation believed by it to be genuine and correct and
      to
      have been signed, sent or made by the proper Person or Persons and upon advice
      and statements of legal counsel (including, without limitation, counsel to
      the
      Loan Parties), independent accountants and other experts selected by the
      Administrative Agent. The Administrative Agent may deem and treat the payee
      of
      any Note as the owner thereof for all purposes unless such Note shall have
      been
      transferred in accordance with Section 9.6
      and all
      actions required by such Section in connection with such transfer shall have
      been taken. The Administrative Agent shall be fully justified in failing or
      refusing to take any action under this Agreement or any other Loan Document
      unless it shall first receive such advice or concurrence of the Required Lenders
      (or, if so specified by this Agreement, all Lenders or any other instructing
      group of Lenders specified by this Agreement) as it deems appropriate or it
      shall first be indemnified to its satisfaction by the Lenders against any and
      all liability and expense that may be incurred by it by reason of taking or
      continuing to take any such action. The Administrative Agent shall in all cases
      be fully protected in acting, or in refraining from acting, under this Agreement
      and the other Loan Documents in accordance with a request of the Required
      Lenders (or, if so specified by this Agreement, all Lenders or any other
      instructing group of Lenders specified by this Agreement), and such request
      and
      any action taken or failure to act pursuant thereto shall be binding upon all
      the Lenders and all future holders of the Loans.

     

    8.5  Notice
      of Default.
      The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default or Event of Default hereunder unless the
      Administrative Agent shall have received notice from a Lender or the Borrower
      referring to this Agreement, describing such Default or Event of Default and
      stating that such notice is a “notice of default”. In the event that the
      Administrative Agent shall receive such a notice, the Administrative Agent
      shall
      give notice thereof to the Lenders. The Administrative Agent shall take such
      action with respect to such Default or Event of Default as shall be reasonably
      directed by the Required Lenders (or, if so specified by this Agreement, all
      Lenders or any other instructing group of Lenders specified by this Agreement);
      provided that unless and until the Administrative Agent shall have received
      such
      directions, the Administrative Agent may (but shall not be obligated to) take
      such action, or refrain from taking such action, with respect to such Default
      or
      Event of Default as it shall deem advisable in the best interests of the
      Lenders.

     

    8.6  Non-Reliance
      on Administrative Agent and Other Lenders.
      Each
      Lender expressly acknowledges that neither the Administrative Agent nor any
      of
      its officers, directors, employees, agents, attorneys-in-fact or affiliates
      have
      made any representations or warranties to it and that no act by the
      Administrative Agent hereafter taken, including any review of the affairs of
      a
      Loan Party or any affiliate of a Loan Party, shall be deemed to constitute
      any
      representation or warranty by any Agent to any Lender. Each Lender represents
      to
      the Administrative Agent that it has, independently and without reliance upon
      the Administrative Agent or any other Lender, and based on such documents and
      information as it has deemed appropriate, made its own appraisal of and
      investigation into the business, operations, property, financial and other
      condition and creditworthiness of the Loan Parties and their affiliates and
      made
      its own decision to make its Loans hereunder and enter into this Agreement.
      Each
      Lender also represents that it will, independently and without reliance upon
      the
      Administrative Agent or any other Lender, and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit analysis, appraisals and decisions in taking or not taking action under
      this Agreement and the other Loan Documents, and to make such investigation
      as
      it deems necessary to inform itself as to the business, operations, property,
      financial and other condition and creditworthiness of the Loan Parties and
      their
      affiliates. Except for notices, reports and other documents expressly required
      to be furnished to the Lenders by the Administrative Agent hereunder, the
      Administrative Agent shall have no duty or responsibility to provide any Lender
      with any credit or other information concerning the business, operations,
      property, condition (financial or otherwise), prospects or creditworthiness
      of
      any Loan Party or any affiliate of a Loan Party that may come into the
      possession of the Administrative Agent or any of its officers, directors,
      employees, agents, attorneys-in-fact or affiliates.

     

    
      
        
        

      

      
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    8.7  Indemnification.
      The
      Lenders agree to indemnify the Administrative Agent in its capacity as such
      (to
      the extent not reimbursed by the Borrower and without limiting the obligation
      of
      the Borrower to do so), ratably according to their respective Aggregate Exposure
      Percentages in effect on the date on which indemnification is sought under
      this
      Section (or, if indemnification is sought after the date upon which the
      Commitments shall have terminated and the Loans shall have been paid in full,
      ratably in accordance with such Aggregate Exposure Percentages immediately
      prior
      to such date), for, and to save the Administrative Agent harmless from and
      against, any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, expenses or disbursements of any kind
      whatsoever that may at any time (including, without limitation, at any time
      following the payment of the Loans) be imposed on, incurred by or asserted
      against the Administrative Agent in any way relating to or arising out of,
      the
      Commitments, this Agreement, any of the other Loan Documents or any documents
      contemplated by or referred to herein or therein or the transactions
      contemplated hereby or thereby or any action taken or omitted by the
      Administrative Agent under or in connection with any of the foregoing; provided
      that no Lender shall be liable for the payment of any portion of such
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements that are found by a final and nonappealable
      decision of a court of competent jurisdiction to have resulted from the
      Administrative Agent’s gross negligence or willful misconduct. The agreements in
      this Section shall survive the payment of the Loans and all other amounts
      payable hereunder.

     

    8.8  Agent
      in Its Individual Capacity.
      The
      Administrative Agent and its affiliates may make loans to, accept deposits
      from
      and generally engage in any kind of business with any Loan Party as though
      the
      Administrative Agent were not the Administrative Agent. With respect to its
      Loans made or renewed by it, the Administrative Agent shall have the same rights
      and powers under this Agreement and the other Loan Documents as any Lender
      and
      may exercise the same as though it were not the Administrative Agent, and the
      terms “Lender” and “Lenders” shall include the Administrative Agent in its
      individual capacity.

     

    8.9  Successor
      Administrative Agent.
      The
      Administrative Agent may resign as Administrative Agent upon 30 days’
notice to the Lenders and the Borrower. If the Administrative Agent shall resign
      as Administrative Agent under this Agreement and the other Loan Documents,
      then
      the Required Lenders shall appoint from among the Lenders a successor agent
      for
      the Lenders, which successor agent shall (unless an Event of Default under
      Section 7(a)
      or
Section 7(f)
      with
      respect to the Borrower shall have occurred and be continuing) be subject to
      approval by the Borrower (which approval shall not be unreasonably withheld
      or
      delayed), whereupon such successor agent shall succeed to the rights, powers
      and
      duties of the Administrative Agent, and the term “Administrative Agent” shall
      mean such successor agent effective upon such appointment and approval, and
      the
      former Administrative Agent’s rights, powers and duties as Administrative Agent
      shall be terminated, without any other or further act or deed on the part of
      such former Administrative Agent or any of the parties to this Agreement or
      any
      holders of the Loans. If no successor agent has accepted appointment as
      Administrative Agent by the date that is 30 days following a retiring
      Administrative Agent’s notice of resignation, the retiring Administrative
      Agent’s resignation shall nevertheless thereupon become effective, and the
      Lenders shall assume and perform all of the duties of the Administrative Agent
      hereunder until such time, if any, as the Required Lenders appoint a successor
      agent as provided for above. After any retiring Administrative Agent’s
      resignation as Administrative Agent, the provisions of this Section 8
      shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was Administrative Agent under this Agreement and the other Loan
      Documents.

     

    8.10  Authorization
      to Release Liens and Guarantees.
      The
      Administrative Agent is hereby irrevocably authorized by each of the Lenders
      to
      effect any release of Liens or guarantee obligations contemplated by Section
      9.15.

     

    
      
        
        

      

      
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    8.11  The
      Arranger.
      Neither
      the Arranger nor the Syndication Agent, in their respective capacity as such,
      shall have any duties or responsibilities, nor shall it incur any liability,
      under this Agreement and the other Loan Documents.

     

    SECTION 9.  MISCELLANEOUS

     

    9.1  Amendments
      and Waivers.
      Neither
      this Agreement or any other Loan Document, nor any terms hereof or thereof
      may
      be amended, supplemented or modified except in accordance with the provisions
      of
      this Section 9.1.
      The
      Required Lenders and each Loan Party party to the relevant Loan Document may,
      or
      (with the written consent of the Required Lenders) the Administrative Agent
      and
      each Loan Party party to the relevant Loan Document may, from time to time,
      (a) enter into written amendments, supplements or modifications hereto and
      to the other Loan Documents (including amendments and restatements hereof or
      thereof) for the purpose of adding any provisions to this Agreement or the
      other
      Loan Documents or changing in any manner the rights of the Lenders or of the
      Loan Parties hereunder or thereunder or (b) waive, on such terms and
      conditions as may be specified in the instrument of waiver, any of the
      requirements of this Agreement or the other Loan Documents or any Default or
      Event of Default and its consequences; provided, however, that no such waiver
      and no such amendment, supplement or modification shall:

     

    (i)  forgive
      the principal amount or extend the final scheduled date of maturity of any
      Loan,
      reduce the stated rate of any interest or fee payable under this Agreement
      (except in connection with the waiver of applicability of any post-default
      increase in interest rates (which waiver shall be effective with the consent
      of
      the Required Lenders)) or extend the scheduled date of any payment thereof,
      or
      increase the amount or extend the expiration date of any Commitment of any
      Lender, in each case without the consent of each Lender directly affected
      thereby;

     

    (ii)  amend,
      modify or waive any provision of this Section or reduce any percentage specified
      in the definition of Required Lenders, consent to the assignment or transfer
      by
      the Borrower of any of its rights and obligations under this Agreement and
      the
      other Loan Documents, release all or substantially all of the Collateral or
      release all or substantially all of the Subsidiary Guarantors from their
      guarantee obligations under the Guarantee and Collateral Agreement, in each
      case
      without the consent of all the Lenders;

     

    (iii)  amend,
      modify or waive any provision of Section 8,
      or any
      other provision affecting the rights, duties or obligations of the
      Administrative Agent, without the consent of the Administrative
      Agent;

     

    (iv)  amend,
      modify or waive any provision of Section 2.13
      without
      the consent of each Lender directly affected thereby; or

     

    (v)  impose
      restrictions on assignments and participations that are more restrictive than,
      or additional to, those set forth in Section 9.6.

     

    Any
      such
      waiver and any such amendment, supplement or modification shall apply equally
      to
      each of the Lenders and shall be binding upon the Loan Parties, the Lenders,
      the
      Administrative Agent and all future holders of the Loans. In the case of any
      waiver, any Default or Event of Default waived shall be deemed to be cured
      and
      not continuing; but no such waiver shall extend to any subsequent or other
      Default or Event of Default, or impair any right consequent thereon. Any such
      waiver, amendment, supplement or modification shall be effected by a written
      instrument signed by the parties required to sign pursuant to the foregoing
      provisions of this Section; provided,
      that
      delivery of an executed signature page of any such instrument by facsimile
      transmission shall be effective as delivery of a manually executed counterpart
      thereof.

     

    
      
        
        

      

      
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    For
      the
      avoidance of doubt, this Agreement and any other Loan Document may be amended
      (or amended and restated) with the written consent of the Required Lenders,
      the
      Administrative Agent and each Loan Party to each relevant Loan Document
      (x) to add one or more additional credit facilities to this Agreement and
      to permit the extensions of credit from time to time outstanding thereunder
      and
      the accrued interest and fees in respect thereof (collectively, the
“Additional
      Extensions of Credit”)
      to
      share ratably in the benefits of this Agreement and the other Loan Documents
      with the Loans and the accrued interest and fees in respect thereof and
      (y) to include appropriately the Lenders holding such credit facilities in
      any determination of the Required Lenders. 

     

    It
      is
      understood that any amendments,
      supplements or modifications to
      this
      Agreement (including any amendment and restatement thereof), for
      the
      purpose of modifying any provisions to this Agreement,
      shall
      be considered the same credit facility, as amended, and not a new
      loan.

     

    In
      addition, notwithstanding the foregoing, this Agreement may be amended with
      the
      written consent of the Administrative Agent, the Borrower and the Lenders
      providing the relevant Replacement Loans (as defined below) to permit the
      refinancing or modification of all outstanding Loans (“Refinanced
      Loans”)
      with a
      replacement term loan tranche hereunder (“Replacement
      Loans”),
      provided
      that (a)
      the aggregate principal amount of such Replacement Loans shall not exceed the
      aggregate principal amount of such Refinanced Loans, (b) the Applicable Margin
      for such Replacement Loans shall not be higher than the Applicable Margin for
      such Refinanced Loans, (c) the weighted average life to maturity of such
      Replacement Loans shall not be shorter than the weighted average life to
      maturity of such Refinanced Loans at the time of such refinancing and (d) all
      other terms applicable to such Replacement Loans shall be substantially
      identical to, or less favorable to the Lenders providing such Replacement Loans
      than, those applicable to such Refinanced Loans, except to the extent necessary
      to provide for covenants and other terms applicable to any period after the
      latest final maturity of the Loans in effect immediately prior to such
      refinancing.

     

    9.2  Notices.
      All
      notices, requests and demands to or upon the respective parties hereto to be
      effective shall be in writing (including by telecopy), and, unless otherwise
      expressly provided herein, shall be deemed to have been duly given or made
      when
      delivered, or three Business Days after being deposited in the mail, postage
      prepaid, or, in the case of telecopy notice, when received, addressed
      (a) in the case of the Borrower and the Administrative Agent, as follows
      and (b) in the case of the Lenders, as set forth in an administrative
      questionnaire delivered to the Administrative Agent or, in the case of a Lender
      which becomes a party to this Agreement pursuant to an Assignment and
      Assumption, in such Assignment and Assumption or (c) in the case of any
      party, to such other address as such party may hereafter notify to the other
      parties hereto:

     

    
      	 	
              The
                Borrower:

            	
              Iconix
                Brand Group, Inc.

              1450
                Broadway, 4th
                Floor

              New
                York, New York 10018

              Attn:
                Neil Cole, CEO

              Telecopy:
                (212) 391-2057

              Telephone:
                (212) 730-0030 

               

            
	 	
              The
                Administrative Agent:

            	
              Lehman
                Commercial Paper Inc. Loan Portfolio Group, 5th
                Floor

              745
                Seventh Avenue

              New
                York, New York 10019 

              Attention:
                Ritam Bhalla

              Telecopy:
                (646) 834-4997

              Telephone:
                (212) 526-1819

            

    

     

    
      
        
        

      

      
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    Notices
      and other communications to the Lenders hereunder may be delivered or furnished
      by electronic communications pursuant to procedures approved by the
      Administrative Agent; provided
      that the
      foregoing shall not apply to notices pursuant to Section 2 unless otherwise
      agreed by the Administrative Agent and the applicable Lender. The Administrative
      Agent or the Borrower may, in its discretion, agree to accept notices and other
      communications to it hereunder by electronic communications pursuant to
      procedures approved by it; provided
      that
      approval of such procedures may be limited to particular notices or
      communications.

     

    9.3  No
      Waiver; Cumulative Remedies.
      No
      failure to exercise and no delay in exercising, on the part of the
      Administrative Agent or any Lender, any right, remedy, power or privilege
      hereunder or under the other Loan Documents shall operate as a waiver thereof;
      nor shall any single or partial exercise of any right, remedy, power or
      privilege hereunder preclude any other or further exercise thereof or the
      exercise of any other right, remedy, power or privilege. The rights, remedies,
      powers and privileges herein provided are cumulative and not exclusive of any
      rights, remedies, powers and privileges provided by law.

     

    9.4  Survival
      of Representations and Warranties.
      All
      representations and warranties made herein, in the other Loan Documents and
      in
      any document, certificate or statement delivered pursuant hereto or in
      connection herewith shall survive the execution and delivery of this Agreement
      and the making of the Loans and other extensions of credit
      hereunder.

     

    9.5  Payment
      of Expenses.
      The
      Borrower agrees (a) to pay or reimburse the Administrative Agent for all
      its reasonable out-of-pocket costs and expenses incurred in connection with
      the
      syndication of the Facility (other than fees payable to syndicate members)
      and
      the development, preparation and execution of, and any amendment, supplement
      or
      modification to, this Agreement and the other Loan Documents and any other
      documents prepared in connection herewith or therewith, and the consummation
      and
      administration of the transactions contemplated hereby and thereby, including,
      without limitation, the reasonable fees and disbursements and other charges
      of
      one counsel to the Administrative Agent and, if reasonably necessary, one local
      counsel in any relevant jurisdiction and the charges of Intralinks, (b) to
      pay or reimburse each Lender and the Administrative Agent for all their costs
      and expenses incurred in connection with the enforcement or preservation of
      any
      rights under this Agreement, the other Loan Documents and any other documents
      prepared in connection herewith or therewith, including, without limitation,
      the
      reasonable fees and disbursements and other charges of one counsel to the
      Administrative Agent and the other Lenders and, if reasonably necessary, one
      local counsel in any relevant jurisdiction, (c) to pay, indemnify, or
      reimburse each Lender and the Administrative Agent for, and hold each Lender
      and
      the Administrative Agent harmless from, any and all recording and filing fees
      and any and all liabilities with respect to, or resulting from any delay in
      paying, stamp, excise and other taxes, if any, which may be payable or
      determined to be payable in connection with the execution and delivery of,
      or
      consummation or administration of any of the transactions contemplated by,
      or
      any amendment, supplement or modification of, or any waiver or consent under
      or
      in respect of, this Agreement, the other Loan Documents and any such other
      documents, and (d) to pay, indemnify or reimburse each Lender, the
      Administrative Agent, their respective affiliates, and their respective
      officers, directors, trustees, employees, advisors, agents and controlling
      persons (each, an “Indemnitee”)
      for,
      and hold each Indemnitee harmless from and against any and all other
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements of any kind or nature whatsoever incurred
      by an
      Indemnitee or asserted against any Indemnitee arising out of, in connection
      with, or as a result of (i) the execution or delivery of this Agreement, any
      other Loan Document or any agreement or instrument contemplated hereby or
      thereby, the performance by the parties hereto or thereto of their respective
      obligations hereunder or thereunder or the consummation of the transactions
      contemplated hereby or thereby, (ii) any Loan or the use or proposed use of
      the
      proceeds thereof, (iii) any actual or alleged presence or release of Materials
      of Environmental Concern on or from any property owned, occupied or operated
      by
      the Borrower or any of its Subsidiaries, or any Environmental Liability related
      in any way to the Borrower or any of its Subsidiaries or any or their respective
      properties, or (iv) any actual or prospective claim, litigation, investigation
      or proceeding relating to any of the foregoing, whether based on contract,
      tort
      or any other theory, and regardless of whether any Indemnitee is a party thereto
      (all the foregoing in this clause (d), collectively, the “Indemnified
      Liabilities”),
      provided, that the Borrower shall have no obligation hereunder to any Indemnitee
      with respect to Indemnified Liabilities to the extent such Indemnified
      Liabilities are found by a final and nonappealable decision of a court of
      competent jurisdiction to have resulted from the gross negligence or willful
      misconduct of such Indemnitee. No Indemnitee shall be liable for any damages
      arising from the use by unauthorized persons of information or other materials
      sent through electronic, telecommunications or other information transmission
      systems that are intercepted by such persons or for any special, indirect,
      consequential or punitive damages in connection with the Facility. Without
      limiting the foregoing, and to the extent permitted by applicable law, the
      Borrower agrees not to assert and to cause its Subsidiaries not to assert,
      and
      hereby waives and agrees to cause its Subsidiaries so to waive, all rights
      for
      contribution or any other rights of recovery with respect to all claims,
      demands, penalties, fines, liabilities, settlements, damages, costs and expenses
      of whatever kind or nature, under or related to Environmental Laws, that any
      of
      them might have by statute or otherwise against any Indemnitee. All amounts
      due
      under this Section shall be payable not later than 30 days after written demand
      therefor. Statements payable by the Borrower pursuant to this Section shall
      be
      submitted at the address of the Borrower set forth in Section 9.2,
      or to
      such other Person or address as may be hereafter designated by the Borrower
      in a
      notice to the Administrative Agent. The agreements in this Section shall survive
      repayment of the Loans and all other amounts payable hereunder.

     

    
      
        
        

      

      
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    9.6  Successors
      and Assigns; Participations and Assignments.
      (a)
      This
      Agreement shall be binding upon and inure to the benefit of the Borrower, the
      Lenders, the Administrative Agent, all future holders of the Loans and their
      respective successors and assigns, except that the Borrower may not assign
      or
      transfer any of its rights or obligations under this Agreement without the
      prior
      written consent of the Administrative Agent and each Lender.

     

    (b)  Any
      Lender may, without the consent of the Borrower, in accordance with applicable
      law, at any time sell to one or more banks, financial institutions or other
      entities (each, a “Participant”)
      participating interests in any Loan owing to such Lender, any Commitment of
      such
      Lender or any other interest of such Lender hereunder and under the other Loan
      Documents. In the event of any such sale by a Lender of a participating interest
      to a Participant, such Lender’s obligations under this Agreement to the other
      parties to this Agreement shall remain unchanged, such Lender shall remain
      solely responsible for the performance thereof, such Lender shall remain the
      holder of any such Loan for all purposes under this Agreement and the other
      Loan
      Documents, and the Borrower and the Administrative Agent shall continue to
      deal
      solely and directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement and the other Loan Documents. In no event
      shall
      any Participant under any such participation have any right to approve any
      amendment or waiver of any provision of any Loan Document, or any consent to
      any
      departure by any Loan Party therefrom, except to the extent that such amendment,
      waiver or consent would require the consent of all Lenders pursuant to
      Section 9.1.
      The
      Borrower agrees that if amounts outstanding under this Agreement and the Loans
      are due or unpaid, or shall have been declared or shall have become due and
      payable upon the occurrence of an Event of Default, each Participant shall,
      to
      the maximum extent permitted by applicable law, be deemed to have the right
      of
      setoff in respect of its participating interest in amounts owing under this
      Agreement to the same extent as if the amount of its participating interest
      were
      owing directly to it as a Lender under this Agreement, provided
      that, in
      purchasing such participating interest, such Participant shall be deemed to
      have
      agreed to share with the Lenders the proceeds thereof as provided in
      Section 9.7
      as fully
      as if such Participant were a Lender hereunder. The Borrower also agrees that
      each Participant shall be entitled to the benefits of Sections 2.14,
      2.15
      and
2.16
      with
      respect to its participation in the Commitments and the Loans outstanding from
      time to time as if such Participant were a Lender; provided
      that, in
      the case of Section 2.15,
      such
      Participant shall have complied with the requirements of said Section, and
      provided,
      further,
      that no
      Participant shall be entitled to receive any greater amount pursuant to any
      such
      Sections 2.14,
      2.15
      or
2.16
      than the
      transferor Lender would have been entitled to receive in respect of the amount
      of the participation transferred by such transferor Lender to such Participant
      had no such transfer occurred.

     

    
      
        
        

      

      
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    (c)  Any
      Lender (an “Assignor”)
      may,
      in accordance with applicable law and upon written notice to the Administrative
      Agent, at any time and from time to time assign to any Lender or any affiliate,
      Related Fund or Control Investment Affiliate thereof or, with the consent of
      the
      Administrative Agent (which, in each case, shall not be unreasonably withheld
      or
      delayed); provided
      that no
      such consent need be obtained by any Lehman Entity, to an additional bank,
      financial institution or other entity (an “Assignee”)
      all or
      any part of its rights and obligations under this Agreement pursuant to an
      Assignment and Assumption, substantially in the form of Exhibit D, executed
      by such Assignee and such Assignor (and, where the consent of the Administrative
      Agent is required pursuant to the foregoing provisions, by the Administrative
      Agent) and delivered to the Administrative Agent for its acceptance and
      recording in the Register; provided
      that no
      such assignment to an Assignee (other than any Lender or any affiliate thereof)
      shall be in an aggregate principal amount of less than $1,000,000 (other than
      in
      the case of an assignment of all of a Lender’s interests under this Agreement),
      unless otherwise agreed by the Borrower and the Administrative Agent. Upon
      such
      execution, delivery, acceptance and recording, from and after the effective
      date
      determined pursuant to such Assignment and Assumption, (x) the Assignee
      thereunder shall be a party hereto and, to the extent provided in such
      Assignment and Assumption, have the rights and obligations of a Lender hereunder
      with Commitments and/or Loans as set forth therein, and (y) the Assignor
      thereunder shall, to the extent provided in such Assignment and Assumption,
      be
      released from its obligations under this Agreement (and, in the case of an
      Assignment and Assumption covering all of an Assignor’s rights and obligations
      under this Agreement, such Assignor shall cease to be a party hereto, except
      as
      to Section 2.14,
      2.15
      and
9.5
      in
      respect of the period prior to such effective date). For purposes of the minimum
      assignment amounts set forth in this paragraph, multiple assignments by two
      or
      more Related Funds shall be aggregated.

     

    (d)  The
      Administrative Agent shall, on behalf of the Borrower, maintain at its address
      referred to in Section 9.2
      a copy
      of each Assignment and Assumption delivered to it and a register (the
“Register”)
      for
      the recordation of the names and addresses of the Lenders and the Commitment
      of,
      and principal amount of the Loans owing to, each Lender from time to time.
      The
      entries in the Register shall be conclusive, in the absence of manifest error,
      and the Borrower, the Administrative Agent and the Lenders shall treat each
      Person whose name is recorded in the Register as the owner of the Loans and
      any
      Notes evidencing such Loans recorded therein for all purposes of this Agreement.
      Any assignment of any Loan, whether or not evidenced by a Note, shall be
      effective only upon appropriate entries with respect thereto being made in
      the
      Register (and each Note shall expressly so provide). Any assignment or transfer
      of all or part of a Loan evidenced by a Note shall be registered on the Register
      only upon surrender for registration of assignment or transfer of the Note
      evidencing such Loan, accompanied by a duly executed Assignment and Assumption;
      thereupon one or more new Notes in the same aggregate principal amount shall
      be
      issued to the designated Assignee, and the old Notes shall be returned by the
      Administrative Agent to the Borrower marked “canceled”. The Register shall be
      available for inspection by the Borrower or any Lender (with respect to any
      entry relating to such Lender’s Loans) at any reasonable time and from time to
      time upon reasonable prior notice.

     

    
      
        
        

      

      
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    (e)  Upon
      its
      receipt of an Assignment and Assumption executed by an Assignor and an Assignee
      (and, in any case where the consent of any other Person is required by
      Section 9.6(c),
      by each
      such other Person) together with payment to the Administrative Agent of a
      registration and processing fee of $3,500 (treating multiple, simultaneous
      assignments by or to two or more Related Funds as a single assignment) (except
      that no such registration and processing fee shall be payable (y) in
      connection with an assignment by or to a Lehman Entity or (z) in the case
      of an Assignee which is an affiliate or Related Fund of a Lender or a Person
      under common management with a Lender), the Administrative Agent shall
      (i) promptly accept such Assignment and Assumption and (ii) on the
      effective date determined pursuant thereto record the information contained
      therein in the Register and give notice of such acceptance and recordation
      to
      the Borrower. On or prior to such effective date, the Borrower, at its own
      expense, upon request, shall execute and deliver to the Administrative Agent
      (in
      exchange for the Notes of the assigning Lender) a new Note to the order of
      such
      Assignee in an amount equal to the Loans assumed or acquired by it pursuant
      to
      such Assignment and Assumption and, if the Assignor has retained Loans, upon
      request, a new Note to the order of the Assignor in an amount equal to the
      Loans
      retained by it hereunder. Such new Note or Notes shall be dated the Initial
      Closing Date and shall otherwise be in the form of the Note or Notes replaced
      thereby.

     

    (f)  For
      avoidance of doubt, the parties to this Agreement acknowledge that the
      provisions of this Section concerning assignments of Loans and Notes relate
      only
      to absolute assignments and that such provisions do not prohibit assignments
      creating security interests in Loans and Notes, including, without limitation,
      any pledge or assignment by a Lender of any Loan or Note to any Federal Reserve
      Bank in accordance with applicable law.

     

    (g)  Notwithstanding
      anything to the contrary contained herein, any Lender (a “Granting
      Lender”)
      may
      grant to a special purpose funding vehicle (an “SPC”),
      identified as such in writing from time to time by the Granting Lender to the
      Administrative Agent and the Borrower, the option to provide to the Borrower
      all
      or any part of any Loan that such Granting Lender would otherwise be obligated
      to make to the Borrower pursuant to this Agreement; provided
      that
      (i) nothing herein shall constitute a commitment by any SPC to make any
      Loan and (ii) if an SPC elects not to exercise such option or otherwise
      fails to provide all or any part of such Loan, the Granting Lender shall be
      obligated to make such Loan pursuant to the terms hereof. The making of a Loan
      by an SPC hereunder shall utilize the Commitment of the Granting Lender to
      the
      same extent, and as if, such Loan were made by such Granting Lender. Each party
      hereto hereby agrees that no SPC shall be liable for any indemnity or similar
      payment obligation under this Agreement (all liability for which shall remain
      with the Granting Lender). In furtherance of the foregoing, each party hereto
      hereby agrees (which agreement shall survive the termination of this Agreement)
      that, prior to the date that is one year and one day after the payment in full
      of all outstanding commercial paper or other indebtedness of any SPC, it will
      not institute against, or join any other person in instituting against, such
      SPC
      any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceedings under the laws of the United States or any state thereof. In
      addition, notwithstanding anything to the contrary in this
      Section 9.6(g),
      any SPC
      may (A) with notice to, but without the prior written consent of, the
      Borrower and the Administrative Agent and without paying any processing fee
      therefor, assign all or a portion of its interests in any Loans to the Granting
      Lender, or with the prior written consent of the Borrower and the Administrative
      Agent (which consent shall not be unreasonably withheld) to any financial
      institutions providing liquidity and/or credit support to or for the account
      of
      such SPC to support the funding or maintenance of Loans, and (B) disclose
      on a confidential basis any non-public information relating to its Loans to
      any
      rating agency, commercial paper dealer or provider of any surety, guarantee
      or
      credit or liquidity enhancement to such SPC; provided
      that
      non-public information with respect to the Borrower may be disclosed only with
      the Borrower’s consent which will not be unreasonably withheld. This
      paragraph (g)
      may not
      be amended without the written consent of any SPC with Loans outstanding at
      the
      time of such proposed amendment.

     

    
      
        
        

      

      
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    9.7  Adjustments;
      Set-off.
      (a)
      Except
      to the extent that this Agreement provides for payments to be allocated to
      a
      particular Lender, if any Lender (a “Benefited
      Lender”)
      shall
      at any time receive any payment of all or part of the Obligations owing to
      it,
      or receive any collateral in respect thereof (whether voluntarily or
      involuntarily, by set-off, pursuant to events or proceedings of the nature
      referred to in Section 7(f),
      or
      otherwise), in a greater proportion than any such payment to or collateral
      received by any other Lender, if any, in respect of such other Lender’s
      Obligations, such Benefited Lender shall purchase for cash from the other
      Lenders a participating interest in such portion of each such other Lender’s
      Obligations, or shall provide such other Lenders with the benefits of any such
      collateral, as shall be necessary to cause such Benefited Lender to share the
      excess payment or benefits of such collateral ratably with each of the Lenders;
      provided, however, that if all or any portion of such excess payment or benefits
      is thereafter recovered from such Benefited Lender, such purchase shall be
      rescinded, and the purchase price and benefits returned, to the extent of such
      recovery, but without interest.

     

    (b)  In
      addition to any rights and remedies of the Lenders provided by law, each Lender
      shall have the right, without prior notice to the Borrower, any such notice
      being expressly waived by the Borrower to the extent permitted by applicable
      law, upon any amount becoming due and payable by the Borrower hereunder (whether
      at the stated maturity, by acceleration or otherwise), to set off and
      appropriate and apply against such amount any and all deposits (general or
      special, time or demand, provisional or final), in any currency, and any other
      credits, indebtedness or claims, in any currency, in each case whether direct
      or
      indirect, absolute or contingent, matured or unmatured, at any time held or
      owing by such Lender or any branch or agency thereof to or for the credit or
      the
      account of the Borrower. Each Lender agrees promptly to notify the Borrower
      and
      the Administrative Agent after any such setoff and application made by such
      Lender, provided
      that the
      failure to give such notice shall not affect the validity of such setoff and
      application.

     

    9.8  Counterparts.
      This
      Agreement may be executed by one or more of the parties to this Agreement on
      any
      number of separate counterparts, and all of said counterparts taken together
      shall be deemed to constitute one and the same instrument. Delivery of an
      executed signature page of this Agreement by facsimile transmission shall be
      effective as delivery of a manually executed counterpart hereof. A set of the
      copies of this Agreement signed by all the parties shall be lodged with the
      Borrower and the Administrative Agent.

     

    9.9  Severability.
      Any
      provision of this Agreement that is 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.

     

    9.10  Integration.
      This
      Agreement and the other Loan Documents represent the entire agreement of the
      Borrower, the Administrative Agent, the Arranger and the Lenders with respect
      to
      the subject matter hereof and thereof, and there are no promises, undertakings,
      representations or warranties by the Arranger, the Administrative Agent or
      any
      Lender relative to subject matter hereof not expressly set forth or referred
      to
      herein or in the other Loan Documents.

     

    9.11  GOVERNING
      LAW.
      THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAW OF THE STATE OF NEW YORK.

     

    
      
        
        

      

      
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    9.12  Submission
      To Jurisdiction; Waivers.
      Each of
      the parties hereto hereby irrevocably and unconditionally:

     

    (a)  submits
      for itself and its Property in any legal action or proceeding relating to this
      Agreement and the other Loan Documents to which it is a party, or for
      recognition and enforcement of any judgment in respect thereof, to the
      non-exclusive general jurisdiction of the courts of the State of New York,
      the
      courts of the United States for the Southern District of New York, and appellate
      courts from any thereof;

     

    (b)  consents
      that any such action or proceeding may be brought in such courts and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court or that such action or proceeding was brought
      in an
      inconvenient court and agrees not to plead or claim the same;

     

    (c)  agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form of mail), postage prepaid, to such party at its address set forth
      in Section 9.2
      or at
      such other address of which the Administrative Agent shall have been notified
      pursuant thereto;

     

    (d)  agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction; and

     

    (e)  waives,
      to the maximum extent not prohibited by law, any right it may have to claim
      or
      recover in any legal action or proceeding referred to in this Section any
      special, exemplary, punitive or consequential damages.

     

    9.13  Acknowledgments.
      The
      Borrower hereby acknowledges that:

     

    (a)  it
      has
      been advised by counsel in the negotiation, execution and delivery of this
      Agreement and the other Loan Documents;

     

    (b)  neither
      the Arranger, the Administrative Agent nor any Lender has any fiduciary
      relationship with or duty to the Borrower arising out of or in connection with
      this Agreement or any of the other Loan Documents, and the relationship between
      the Arranger, the Administrative Agent and the Lenders, on one hand, and the
      Borrower, on the other hand, in connection herewith or therewith is solely
      that
      of debtor and creditor; and

     

    (c)  no
      joint
      venture is created hereby or by the other Loan Documents or otherwise exists
      by
      virtue of the transactions contemplated hereby among the Arranger, the
      Administrative Agent and the Lenders or among the Borrower and the
      Lenders.

     

    9.14  Confidentiality.
      The
      Administrative Agent and each of the Lenders agrees to keep confidential all
      non-public information provided to it by any Loan Party pursuant to this
      Agreement that is designated by such Loan Party as confidential; provided that
      nothing herein shall prevent the Administrative Agent or any Lender from
      disclosing any such information (a) to the Arranger, the Administrative
      Agent, any other Lender or any Affiliate of any thereof, on a need-to-know
      basis, (b) to any Participant or Assignee (each, a “Transferee”)
      or
      prospective Transferee that agrees to comply with the provisions of this Section
      or substantially equivalent provisions, (c) to any of its employees,
      directors, agents, attorneys, accountants and other professional advisors,
      on a
      need-to-know basis, (d) to any financial institution that is a direct or
      indirect contractual counterparty in swap agreements or such contractual
      counterparty’s professional advisor (so long as such contractual counterparty or
      professional advisor to such contractual counterparty agrees to be bound by
      the
      provisions of this Section), (e) upon the request or demand of any
      Governmental Authority having jurisdiction over it; provided
      that
      notice of such disclosure shall be provided to the Loan Parties upon such
      request or demand, (f) in response to any order of any court or other
      Governmental Authority or as may otherwise be required pursuant to any
      Requirement of Law; provided
      that
      notice of such disclosure shall be provided to the Loan Parties upon such order,
      or prior to such disclosure if such disclosure is required pursuant to any
      Requirement of Law, (g) in connection with any litigation or similar
      proceeding, provided
      that
      notice of such disclosure shall be provided to the Loan Parties prior to such
      disclosure, (h) that has been publicly disclosed other than in breach of
      this Section, or, to the Administrative Agent’s or such Lender’s knowledge,
      other than in breach of any other confidentiality agreement, (i) to the
      National Association of Insurance Commissioners or any similar organization
      or
      any nationally recognized rating agency that requires access to information
      about a Lender’s investment portfolio in connection with ratings issued with
      respect to such Lender or (j) in connection with the exercise of any remedy
      hereunder or under any other Loan Document, to the extent necessary to enable
      the Administrative Agent or such Lender to exercise any such
      remedy.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    9.15  Release
      of Collateral and Guarantee Obligations.
      (a)
      Notwithstanding anything to the contrary contained herein or in any other Loan
      Document, upon request of the Borrower in connection with any Disposition of
      Property permitted by the Loan Documents, the Administrative Agent shall
      (without notice to, or vote or consent of, any Lender, or any affiliate of
      any
      Lender that is a party to any Specified Hedge Agreement) take such actions
      as
      shall be required to release its security interest in any Collateral being
      Disposed of in such Disposition, and to release any guarantee obligations under
      any Loan Document of any Person being Disposed of in such Disposition, to the
      extent necessary to permit consummation of such Disposition in accordance with
      the Loan Documents.

     

    (b)    Notwithstanding
      anything to the contrary contained herein or any other Loan Document, when
      all
      Obligations (other than obligations in respect of any Specified Hedge Agreement)
      have been paid in full and all Commitments have terminated or expired, upon
      request of the Borrower, the Administrative Agent shall (without notice to,
      or
      vote or consent of, any Lender, or any affiliate of any Lender that is a party
      to any Specified Hedge Agreement) take such actions as shall be required to
      release its security interest in all Collateral, and to release all guarantee
      obligations under any Loan Document, whether or not on the date of such release
      there may be outstanding Obligations in respect of Specified Hedge Agreements.
      Any such release of guarantee obligations shall be deemed subject to the
      provision that such guarantee obligations shall be reinstated if after such
      release any portion of any payment in respect of the Obligations guaranteed
      thereby shall be rescinded or must otherwise be restored or returned upon the
      insolvency, bankruptcy, dissolution, liquidation or reorganization of the
      Borrower or any Guarantor, or upon or as a result of the appointment of a
      receiver, intervenor or conservator of, or trustee or similar officer for,
      the
      Borrower or any Guarantor or any substantial part of its property, or otherwise,
      all as though such payment had not been made.

     

    9.16  Accounting
      Changes.
      In the
      event that any “Accounting Change” (as defined below) shall occur and such
      change results in a change in the method of calculation of financial covenants,
      standards or terms in this Agreement, then the Borrower and the Administrative
      Agent agree to enter into negotiations in order to amend such provisions of
      this
      Agreement so as to equitably reflect such Accounting Change with the desired
      result that the criteria for evaluating the Borrower’s financial condition shall
      be the same after such Accounting Change as if such Accounting Change had not
      been made. Until such time as such an amendment shall have been executed and
      delivered by the Borrower, the Administrative Agent and the Required Lenders,
      all financial covenants, standards and terms in this Agreement shall continue
      to
      be calculated or construed as if such Accounting Change had not occurred.
“Accounting Change” refers to any change in accounting principles required by
      the promulgation of any rule, regulation, pronouncement or opinion by the
      Financial Accounting Standards Board of the American Institute of Certified
      Public Accountants or, if applicable, the SEC.

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    9.17  [RESERVED].

     

    9.18  WAIVERS
      OF JURY TRIAL.
      THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
      UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
      TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
      THEREIN.

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered by their proper and duly authorized officers as of the
      day and year first above written.

     

    
      	 	 	 
	 	ICONIX
              BRAND
              GROUP, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Warren
              Clamen
	 	
              

              Name:
                Warren Clamen

              Title:
                CFO

            
	 	 

    

    
      
        	 	 	 
	 	
                LEHMAN
                  BROTHERS INC.,

                as
                  Arranger

              
	 
 	 
 	 
 
	 	By:  	/s/ Frank
                P.
                Turner 
	 	
                

                
                  Name:
                    Frank P. Turner 

                  Title:
                    Vice President

                

              
	 	 

      

      
        	 	 	 
	 	
                LEHMAN
                  COMMERCIAL PAPER INC.,

                as
                  Syndication Agent

              
	 
 	 
 	 
 
	 	By:  	/s/ Frank
                P.
                Turner 
	 	
                

                
                  Name:
                    Frank P. Turner 

                  Title:
                    Vice President

                

              
	 	 

      

      
        	 	 	 
	 	
                
                  LEHMAN
                    COMMERCIAL PAPER INC.,

                  as
                    Administrative Agent and as a Lender

                

              
	 
 	 
 	 
 
	 	By:  	/s/ Frank
                P.
                Turner 
	 	
                

                
                  Name:
                    Frank P. Turner 

                  Title:
                    Vice President

                

              
	 	 

      

      

        [Signature
          Page to the Credit Agreement]

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

EXHIBIT A

[See Exhibit 10.2 to this Form 8-K]

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