Document:

EXHIBIT 10.27.2

 

			
	
	 	Exhibit 10.27.2

May 19, 2005

Carol A. Ammon

100 Painters Drive

Chadds Ford, PA 19317

Dear Carol:

     Reference is hereby made to that certain amended and restated employment agreement, dated as
of September 1, 2002 (as amended, the “Employment Agreement”), between you and Endo Pharmaceuticals
Holdings Inc. (the “Company”). Terms used but not defined in this letter shall have the meanings
ascribed to them in the Employment Agreement.

     It is with regret that the Company accepts your desire to retire from your position as Chief
Executive Officer of the Company effective May 20, 2005. Accordingly, the Employment Agreement
will be terminated as of such date and of no further force and effect other than those obligations
which continue by their terms (such as Sections 2.4, 3.2, Article 7 and Article 8).

     If you are in agreement with this letter agreement, which shall be effective as of May 20,
2005, please execute below.

Sincerely,

/S/ JEFFREY R. BLACK

Jeffrey R. Black

Chef Financial Officer

ACCEPTED AND AGREED THIS 19th DAY OF MAY 2005:

/s/ CAROL A. AMMON

Carol A. AmmonEXHIBIT 10.36.2

 

			
	
	 	Exhibit 10.36.2

May 19, 2005

Peter A. Lankau

100 Endo Boulevard

Chadds Ford, PA 19317

Dear Peter:

     Reference is hereby made to that certain amended and restated employment agreement, dated as
of September 1, 2002 (as amended, the “Employment Agreement”), between you and Endo Pharmaceuticals
Holdings Inc. (the “Employer”). Terms used but not defined in this letter shall have the meanings
ascribed to them in the Employment Agreement.

     In recognition of your becoming the Employer’s President and Chief Executive Officer effective
May 20, 2005, Section 3.1(a) of the Employment Agreement shall hereby be amended to change the
definition of Salary to $500,000, effective May 20, 2005. In addition, Section 3.2 of the
Employment Agreement shall be deleted in its entirety and replaced with the following:

“For each Fiscal Year or part thereof during the Employment Period the Employee shall be
paid in cash as additional compensation (the “Incentive Compensation”) for the services to
be rendered by the Employee pursuant to this Agreement, an amount equal to fifty percent
(50%) of the Salary for such Fiscal Year (or such lesser (including zero) or greater (not
to exceed two hundred) percent of the Salary for such Fiscal Year as is recommended in good
faith to the Board of Directors by the Chief Financial Officer of the Employer and approved
by the Board of Directors) if the Employer meets the performance targets set by the Board
of Directors (the “Performance Targets”) for such Fiscal Year. Incentive Compensation for
each Fiscal Year or part thereof shall be paid as soon as practicable following receipt by
the Employer of its audited financial statements for the Fiscal Year for which the
Incentive Compensation is being paid, unless the Employee shall elect to defer the receipt
of such Incentive Compensation. The Employee shall be permitted to submit a proposal for

 

 

Peter A. Lankau

May 19, 2005

Page Two

additional incentive compensation with respect to the period commencing on the date hereof
and ending at the end of the Employer’s current Fiscal Year, and the Employer shall
consider such proposal in good faith.”

     Additionally, the first sentence of Section 2.3 shall be deleted in its entirety and replaced
with the following: “The Employee will have such duties as are assigned or delegated to the
Employee by the Board of Directors, and will initially serve as President and Chief Executive
Officer of the Employer and the Employee shall have the status, authority, duties and
responsibilities typically recognized as attributes of such position.”

     Finally, the second sentence of Section 5 shall be deleted in its entirety and replaced with
the following: “Vacation must be taken by the Employee at such time or times as approved by the
Chairman of the Board.”

     All other terms and conditions of the Employment Agreement shall remain in full force and
effect. If you are in agreement with this letter agreement, which shall be effective as of May 20,
2005, please execute below.

Sincerely,

/s/ CAROL A. AMMON

Carol A. Ammon

Chairman

ACCEPTED AND AGREED THIS 19th DAY OF MAY 2005:

/s/ PETER A. LANKAU

Peter A. Lankau<PAGE>

                                                                    EXHIBIT 10.4

CITICORP NORTH AMERICA,    BANC OF AMERICA SECURITIES     MERRILL LYNCH CAPITAL
        INC.                         LLC                       CORPORATION
CITIGROUP GLOBAL MARKETS     BANC OF AMERICA BRIDGE       MERRILL LYNCH, PIERCE,
        INC.                         LLC                  FENNER & SMITH INCOR -
                                                                  PORATED
 390 GREENWICH STREET       9 WEST 57TH STREET          4 World Financial Center
                                                               North Tower
NEW YORK, NEW YORK 10013   NEW YORK, NEW YORK 10019        New York, NY 10080

                                                                  April 17, 2005

GameStop Corp.
2250 William D. Tate Ave.
Grapevine, Texas 76501

Attention: Mr. David Carlson
           Chief Financial Officer

                                 Senior Facility
                                Commitment Letter

Ladies and Gentlemen:

GameStop Corp. ("you") has advised Citigroup (as defined below), Banc of America
Securities LLC ("BAS"), Banc of America Bridge LLC ("Banc of America Bridge"),
Merrill Lynch Capital Corporation ("Merrill Lynch") and Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") that upon consummation of the Acquisition
(as defined below) a holding company (the "Borrower") will wholly-own you and
the Acquired Business (as defined below) and that you desire that the Borrower
establish the senior credit facility described herein (the "Facility"), the
proceeds of which would be used to finance the transactions described in Exhibit
A hereto (the "Transaction Description"). Capitalized terms used in this letter
agreement but not defined herein shall have the meanings given to them in the
Exhibits (as defined below) hereto.

Subject to the terms and conditions described in this letter agreement and the
attached Exhibits A, B and C (collectively, the "Exhibits" and, together with
the Fee Letter referred to below, this "Commitment Letter"), (i) Citigroup
Global Markets Inc. ("CGMI") is pleased to inform you of CGMI's commitment on
behalf of Citicorp North America, Inc. ("CNAI"), Citibank N.A. and/or any of
their affiliates to provide one-third of the principal amount of the Facility,
(ii) Banc of America Bridge is pleased to inform you of Banc of America Bridge's
commitment to provide one-third of the principal amount of the Facility and
(iii) Merrill Lynch is pleased to inform you of Merrill Lynch's commitment to
provide one-third of the principal amount of the Facility.

For purposes of this Commitment Letter, (i) "Citigroup" shall mean Citicorp
North America, Inc. and/or any affiliate thereof, including CGMI, as Citigroup
shall determine to be appropriate to provide the services contemplated herein,
(ii) the "Initial Lenders" shall mean CNAI, Banc of America Bridge and Merrill
Lynch, (iii) the "Lead Arrangers" shall mean CGMI, BAS and MLPF&S and (iv) "we"
or "us" shall mean the Initial Lenders and the Lead Arrangers.

<PAGE>

1.    CONDITIONS PRECEDENT

The respective commitments of Citigroup, Banc of America Bridge and Merrill
Lynch hereunder is subject to:

            (a) The preparation, execution and delivery of definitive
      documentation with respect to the Facility, including credit agreements
      and guarantees incorporating substantially the terms and conditions
      outlined in this Commitment Letter and otherwise reasonably satisfactory
      to the Lead Arrangers and their counsel (the "Operative Documents").

            (b) The absence of any change, effect, event, occurrence or state of
      facts that is materially adverse to the business, financial condition, or
      results of operations of the Acquired Business, other than any changes,
      effects, events, occurrences or state of facts relating to (i) the economy
      or financial markets in general, (ii) negotiation and entry into the
      Acquisition Agreement, the announcement of the Acquisition Agreement or
      the undertaking and performance or observance of the obligations
      contemplated by the Acquisition Agreement or necessary to consummate the
      transactions contemplated hereby (including adverse effects on results of
      operations attributable to the uncertainties associated with the period
      between the date hereof and the Closing Date), (iii) fluctuation in your
      or the Acquired Business' stock price (iv) the effect of incurring and
      paying Expenses (as defined in the Acquisition Agreement) in connection
      with negotiating, entering into, performing and consummating the
      transactions contemplated by the Acquisition Agreement, (v) changes in
      GAAP after the date hereof and (vi) product shortages and delays in
      product introductions consistent with those that occurred in 2004;
      provided, that with respect to clause (i) such changes, effects, events,
      occurrences or state of facts do not disproportionately affect such
      Persons (as defined in the Acquisition Agreement) relative to the other
      participants in the industries in which such Persons operate; provided,
      further, that, for the avoidance of doubt, compliance with (and the
      consequences thereof) the terms of the Acquisition Agreement (including
      Section 6.5, except for Section 6.5(a)(vi), thereof) shall not be taken
      into account in determining whether a material adverse effect shall have
      occurred or shall be expected to occur for any and all purposes.

            (c) The accuracy and completeness in all material respects of all
      representations that you, the Acquired Business and their respective
      affiliates make to the Lead Arrangers and all information (other than
      financial projections) that you, the Acquired Business and their
      respective affiliates furnish to the Lead Arrangers.

            (d) The payment in full of all fees, expenses and other amounts
      payable under this Commitment Letter and the Fee Letter.

            (e) The execution, delivery and compliance with the terms of (A) the
      letter agreement dated the date hereof (the "Engagement Letter") among
      you, Citigroup, BAS and MLPF&S, (B) this Commitment Letter, and (C) the
      Fee Letter, each in form and substance satisfactory to the Lead Arrangers.

Please note that the terms and conditions of the Initial Lenders' respective
commitments hereunder that are not covered or made clear in this Commitment
Letter are subject to mutual agreement of the parties.

2.    COMMITMENT TERMINATION

Each Initial Lender's respective commitment set forth in this Commitment Letter
will terminate on the earliest of (A) October 31, 2005; provided that such date
shall be automatically extended to December 31, 2005 to the extent the Outside
Date (as defined in the Acquisition Agreement) is extended to December 31, 2005
pursuant to Section 8.1(b)(i) of the Acquisition Agreement (as in effect on the
date of its execution), (B) the date the Operative Documents become effective
and (C) the date the Acquisition Agreement is terminated (such earliest date,
the "Termination Date").

                                       2
<PAGE>

3.    SYNDICATION

Each Initial Lender reserves the right, before or after the execution of the
Operative Documents, to syndicate all or a portion of its commitment to one or
more other financial institutions reasonably acceptable to the Initial Lenders
that will become parties to the Operative Documents (the financial institutions
becoming parties to the Operative Documents being collectively referred to
herein as the "Lenders"). You understand that (i) each Initial Lender intends to
commence such syndication efforts promptly and (ii) the Lead Arrangers may elect
to appoint one or more agents to assist them in such syndication efforts.

Citigroup will act as the joint Lead Arranger and joint Book Runner, "on the
left," and Administrative Agent with respect to the Facility and will manage all
aspects of the syndication of the Facility in consultation with BAS, MLPF&S and
Borrower, including the timing of all offers to potential Lenders, the
determination of all amounts offered to potential Lenders, the selection of
Lenders, the allocation of commitments among the Lenders, the assignment of any
titles and the compensation to be provided to the Lenders. BAS will act as joint
Lead Arranger and joint Book Runner and Syndication Agent with respect to the
Facility. MLPF&S will act as joint Lead Arranger and joint Book Runner with
respect to the Facility

You shall take all actions that any Lead Arranger may reasonably request to
assist it in forming a syndicate acceptable to the Lead Arrangers and you.

To ensure an orderly and effective syndication of the Facility, you agree that,
until the termination of the syndication (as determined by the Lead Arrangers),
you will not, and will not permit any of your affiliates to, syndicate or issue,
attempt to syndicate or issue, announce or authorize the announcement of the
syndication or issuance of, or engage in discussions concerning the syndication
or issuance of, any debt security or commercial bank or other debt facility
(including any renewals thereof) other than the Asset Based Facility or other
working capital facility of the Borrower meeting the conditions set forth in
paragraph 6 of Exhibit C hereto, without the prior written consent of the Lead
Arrangers.

You agree that no additional agents, co-agents or lead arrangers will be
appointed, or other titles conferred, without the consent of the Lead Arrangers
(such consent not to be unreasonably withheld). You agree that no Lender will
receive any compensation of any kind for its participation in the Facility,
except as expressly provided in the Fee Letter or in the Exhibits.

4.    FEES

In addition to the fees described in the Exhibits, you will pay (or cause to be
paid) the nonrefundable fees set forth in the letter agreement dated the date
hereof (the "Fee Letter") among you and the Lead Arrangers. The terms of the Fee
Letter are an integral part of the Initial Lenders' respective commitments
hereunder and constitute part of this Commitment Letter for all purposes hereof.
Each of the fees described in the Fee Letter and Exhibits B and C shall be
nonrefundable when paid.

5.    INDEMNIFICATION

You agree to indemnify and hold harmless each Lead Arranger, each Lender and
each of their respective affiliates and each of their respective officers,
directors, employees, agents, advisors and representatives (each, an
"Indemnified Person") from and against any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and
disbursements of counsel), joint or several, that may be incurred by or asserted
or awarded against any Indemnified Person (including, without limitation, in
connection with, any investigation, litigation or proceeding or the preparation
of any defense in connection therewith) in each case arising out of or in
connection with or relating to this Commitment Letter or the Operative Documents
or the transactions contemplated hereby or thereby, or any use made or proposed
to be made with the proceeds of the Facilities, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment
by a court of competent jurisdiction to have resulted primarily from such
Indemnified Person's gross negligence or willful misconduct. In the case of an
investigation, litigation or proceeding to which the indemnity in

                                       3
<PAGE>

this paragraph applies, such indemnity shall be effective, whether or not such
investigation, litigation or proceeding is brought by you, Borrower, the
Acquired Business, any of their respective securityholders or creditors, an
Indemnified Person or any other person, or an Indemnified Person is otherwise a
party thereto and whether or not the transactions contemplated hereby are
consummated.

No Indemnified Person shall have any liability (whether direct or indirect, in
contract, tort or otherwise) to you, Borrower, the Acquired Business or any of
their securityholders or creditors for or in connection with the transactions
contemplated hereby, except to the extent such liability is determined in a
final, nonappealable judgment by a court of competent jurisdiction to have
resulted primarily from such Indemnified Person's gross negligence or willful
misconduct. In no event, however shall any Indemnified Person be liable for any
special, indirect, consequential or punitive damages (including, without
limitation, any loss of profits, business or anticipated savings).

6.    COSTS AND EXPENSES

Borrower shall pay or reimburse the Lead Arrangers on demand for all reasonable
costs and expenses incurred by the Lead Arrangers (whether incurred before or
after the date hereof) in connection with the Facility, but not the syndication
thereof, and the preparation, negotiation, execution and delivery of this
Commitment Letter, the Operative Documents, including, without limitation, the
reasonable fees and disbursements of counsel, regardless of whether any of the
transactions contemplated hereby are consummated. Borrower further agrees to pay
all costs and expenses of the Lead Arrangers (including, without limitation,
reasonable fees and disbursements of counsel) incurred in connection with the
enforcement of any of their rights or remedies hereunder.

7.    CONFIDENTIALITY

By accepting delivery of this Commitment Letter, you agree that this Commitment
Letter is for your confidential use only and that neither its existence nor the
terms hereof will be disclosed by you to any person other than the officers,
directors, employees, accountants, attorneys and other legal advisors of yours
and Borrower, and then only on a confidential and "need to know" basis in
connection with the transactions contemplated hereby. Notwithstanding the
foregoing, (i) you may disclose this Commitment Letter (other than the Fee
Letter) to the Acquired Business and its officers, directors, employees,
accountants, attorneys and other legal advisors on a confidential and "need to
know" basis in connection with the Acquisition, (ii) you may disclose this
Commitment Letter (other than the Fee Letter) to each lender under the Asset
Based Facility (as defined below) and its officers, directors, employees,
accountants, attorneys and other legal advisors on a confidential and "need to
know" basis in connection with the Acquisition (iii) you may file a copy of any
portion of this Commitment Letter (other than the Fee Letter) in any public
record in which it is required by law to be filed and (iv) you may make such
other public disclosures of any of the terms and conditions hereof as such
Company is required by law, in the opinion of your counsel, to make.

8.    REPRESENTATIONS AND WARRANTIES

You represent and warrant that (i) all information (other than financial
projections) that has been or will hereafter be made available to the Lead
Arrangers, any Lender or any potential Lender by or on behalf of you and, to
your knowledge, the Acquired Business or any of their respective representatives
in connection with the transactions contemplated hereby is and will be complete
and correct in all material respects and does not and will not contain any
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements contained therein not misleading in light of the
circumstances under which such statements were or are made and (ii) all
financial projections, if any, that have been or will be prepared by or on
behalf of you and, to your knowledge, the Acquired Business or any of their
respective representatives and made available to the Lead Arrangers, any Lender
or any potential Lender have been or will be prepared in good faith based upon
reasonable assumptions. If, at any time from the date hereof until the execution
and delivery of the Operative Documents, any of the representations and
warranties in the preceding sentence would be incorrect if the information or
financial projections were being furnished, and such representations and
warranties were being made,

                                       4
<PAGE>

at such time, then you will promptly supplement the information and the
financial projections so that such representations and warranties will be
correct under those circumstances.

In issuing this Commitment Letter and in arranging the Facility, including the
syndications of the Facility, we will be entitled to use, and to rely on the
accuracy of, the information furnished to us by or on behalf of you, the
Acquired Business or any of their respective representatives without
responsibility for independent verification thereof.

9.    NO THIRD PARTY RELIANCE; SHARING INFORMATION

The agreements of the Lead Arrangers and Initial Lenders hereunder and of any
Lender that issues a commitment to provide financing under the Facility are made
solely for your benefit and may not be relied upon or enforced by any other
person. This Commitment Letter is not intended to create a fiduciary
relationship among the parties hereto.

You acknowledge that we may provide debt financing, equity capital or other
services (including financial advisory services) to parties whose interests
regarding the transactions described herein or otherwise may conflict with your
interests. Consistent with each Lender's respective policies to hold in
confidence the affairs of its clients, no Lender will furnish confidential
information obtained from you or your affiliates to any other clients of such
Lenders and such Lenders shall treat all such confidential information in
accordance with such Lenders' customary practices with respect to confidential
information. Furthermore, we will not use in connection with the transactions
contemplated hereby, or furnish to you, confidential information obtained by us
from any other person.

10.   ASSIGNMENTS

You may not assign or delegate any of your rights or obligations under this
Commitment Letter or any Initial Lender's commitment hereunder without each
Initial Lender's prior written consent, and any attempted assignment without
such consent shall be void ab initio.

11.   AMENDMENTS

This Commitment Letter may not be amended or any provision hereof waived or
modified except by an instrument in writing signed by each party hereto.

12.   GOVERNING LAW, ETC.

This Commitment Letter shall be governed by, and construed in accordance with,
the laws of the State of New York. This Commitment Letter sets forth the entire
agreement among the parties with respect to the matters addressed herein and
supersedes all prior communications, written or oral, with respect hereto. This
Commitment Letter may be executed in any number of counterparts, each of which,
when so executed, shall be deemed to be an original and all of which, taken
together, shall constitute one and the same Commitment Letter. Delivery of an
executed counterpart of a signature page to this Commitment Letter by telecopier
shall be as effective as delivery of a manually executed counterpart of this
Commitment Letter. Sections 4 through 7, 12 and 13 shall survive the termination
of Citigroup's commitment hereunder. You acknowledge that information and
documents relating to the Facility may be transmitted through Intralinks, the
internet or similar electronic transmission systems.

13.   WAIVER OF JURY TRIAL, ETC.

Each party hereto irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Commitment Letter or the transactions
contemplated hereby or the actions of the parties hereto in the negotiation,
performance or enforcement hereof.

                                       5
<PAGE>

With respect to all matters relating to this Commitment Letter, the Exhibits,
the Fee Letter and the Engagement Letter, you hereby irrevocably (i) submit to
the non-exclusive jurisdiction of any New York State or Federal court sitting in
the State of New York, County of New York, and any appellate court from any
thereof, (ii) agree that all claims related hereto may be heard and determined
in such courts, (iii) waive, to the fullest extent you may effectively do so,
the defense of an inconvenient forum, (iv) agree that a final judgment of such
courts shall be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law and (v) waive any immunity
(sovereign or otherwise) from jurisdiction of any court or from any legal
process or setoff to which you or your properties or assets may be entitled.

14.   PATRIOT ACT

We hereby notify you that pursuant to the requirements of the UBA Patriot Act,
Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the "Patriot
Act"), the Lead Arrangers and the Lenders are required to obtain, verify and
record information that identifies you, which information includes the name,
address, tax identification number and other information regarding you that will
allow the Lead Arrangers or such Lender to identify you in accordance with the
Patriot Act. This notice is given in accordance with the requirements of the
Patriot Act and is effective as to the Lead Arrangers and the Lenders.

Please indicate your acceptance of the provisions hereof by signing the enclosed
copy of this Commitment Letter and the Fee Letter and returning them to (i) John
McAuley, Director, Citigroup Global Markets Inc., 390 Greenwich Street, New
York, New York 10013 (facsimile: (212) 723-8590), (ii) Lex Maultsby, Managing
Director, Banc of America Securities LLC, 9 West 57th Street, New York, New York
10019 (facsimile: (212) 415-9634) and (iii) Barry Price, Managing Director,
Merrill Lynch & Co., 4 World Financial Center,

North Tower, New York, New York 10080 (facsimile: (212) 449-7750), at or before
5:00 p.m. (New York City time) on April 18, 2005, the time at which the
commitment of the Initial Lenders set forth above (if not so accepted prior
thereto) will terminate.

                            [Signature Page Follows]

                                       6
<PAGE>

If you elect to deliver this Commitment Letter by telecopier, please arrange for
the executed original to follow by next-day courier.

                                          Very truly yours,

                                          CITICORP NORTH AMERICA, INC.

                                          By: /s/ John McAuley
                                              ----------------------------------
                                              Name:  John McAuley
                                              Title: Vice President

                                          CITIGROUP GLOBAL MARKETS INC.

                                          By: /s/ John McAuley
                                              ----------------------------------
                                              Name:  John McAuley
                                              Title: Director

                                          BANC OF AMERICA BRIDGE LLC

                                          By: /s/ Lex Maultsby
                                              ----------------------------------
                                              Name:  Lex Maultsby
                                              Title: Managing Director

                                          BANC OF AMERICA SECURITIES LLC

                                          By: /s/ Lex Maultsby
                                              ----------------------------------
                                              Name:  Lex Maultsby
                                              Title: Managing Director

                                          MERRILL LYNCH CAPITAL CORPORATION

                                          By: /s/ Barry S. Price
                                              ----------------------------------
                                              Name:  Barry S. Price
                                              Title: Vice President

                                          MERRILL LYNCH, PIERCE, FENNER & SMITH
                                             INCORPORATED

                                          By: /s/ Barry S. Price
                                              ----------------------------------
                                              Name:  Barry S. Price
                                              Title: Managing Director

                                       7
<PAGE>

Accepted and agreed to as of
the date first written above:

GAMESTOP CORP.

By /s/ David W. Carlson
   -------------------------------------
   Name:  David W. Carlson
   Title: Executive Vice President and
          Chief Financial Officer

                                       8
<PAGE>

CONFIDENTIAL                                                           EXHIBIT A

                             TRANSACTION DESCRIPTION

All capitalized terms used herein but not defined herein shall have the meanings
provided in the Commitment Letter to which this Exhibit A is attached. The
following transactions, including the Acquisition and the Merger, are referred
to herein as the "Transactions."

1.    A newly formed holding company (the "Borrower") will form two merger
      subsidiaries, one of which shall be merged with and into GameStop Corp.
      and the other shall be merged with and into Target (the identity of which
      the Initial Lenders and Lead Arrangers have previously been advised) (the
      "Acquired Business"). The Borrower will issue its Common Stock as a
      portion of the consideration in the acquisition (the "Acquisition") by
      Borrower of the Acquired Business pursuant to a merger agreement dated on
      or about the date hereof (the "Acquisition Agreement").

2.    Borrower will obtain a senior secured credit asset-based facility in an
      aggregate principal amount of $400 million (the "Asset Based Facility").

3.    Borrower will either (i) borrow up to $950 million in senior loans from
      one or more lenders under the senior facility described in Exhibit B to
      the Commitment Letter (the "Facility") or (ii) issue up to $950 million in
      aggregate principal amount of its senior notes and senior floating rate
      notes (the "Notes") in a public offering or in a Rule 144A or other
      private placement. At the Borrower's request, a portion of the Facility or
      Notes may be replaced by an offering of convertible subordinated debt
      securities.

4.    The estimated sources and uses of the funds necessary to consummate the
      Acquisition and the other Transactions are set forth on Annex I hereto
      (the "Sources and Uses of Funds").

                                       1
<PAGE>

                                                                         ANNEX I
                                                      TO TRANSACTION DESCRIPTION

                       ESTIMATED SOURCES AND USES OF FUNDS
                                 ($ IN MILLIONS)

<TABLE>
<CAPTION>
         SOURCES                                        USES
------------------------               --------------------------------------
<S>                         <C>        <C>                                       <C>
Initial Drawing on                     Purchase Price of Philly Capital Stock
Asset Based Facility (a)    $     0    and net cost of options and warrants      $ 1,402

Facility or Notes (b)           950    Estimated Transaction Costs               $    47

Borrower Common Stock           419

Excess Cash                      80

                            -------                                              -------

TOTAL SOURCES               $ 1,449    TOTAL USES                                $ 1,449
                            =======                                              =======
</TABLE>

--------------------------------
(a)   Total commitments of $400 million at closing.

(b)   Convert

                                       1
<PAGE>

CONFIDENTIAL                                                           EXHIBIT B

                    SUMMARY OF PRINCIPAL TERMS AND CONDITIONS

All capitalized terms used herein but not defined herein shall have the meanings
provided in the Commitment Letter (including the other exhibits thereto) to
which this Summary of Principal Terms and Conditions is attached.

Borrower:                     A holding company ("Borrower") that upon the
                              consummation of the Acquisition will hold all of
                              the equity interests of GameStop Corp. and the
                              Acquired Business.

Acquisition:                  As described in the Transaction Description.

Administrative Agent:         Citicorp North America, Inc. (in its capacity as
                              Administrative Agent, the "Agent").

Joint Lead Arrangers and      Citigroup Global Markets Inc. ("CGMI"), Banc of
Joint Book Runners:           America Securities LLC ("BAS") and Merrill Lynch,
                              Pierce, Fenner & Smith Incorporated ("MLPF&S",
                              and, together with CGMI and BAS, the "Lead
                              Arrangers").

Syndication Agent:            BAS.

Documentation Agent:          MLPF&S.

Lenders:                      A syndicate of banking and financial institutions
                              arranged by the Lead Arrangers (the "Lenders").

Initial Loans:                The Lenders will make loans (the "Initial Loans")
                              to Borrower on the date the Acquisition is
                              consummated (the "Closing Date") in an aggregate
                              principal amount not to exceed $950 million.

Purpose and Availability      The proceeds of the Initial Loans will be used
of Initial Loans:             solely as set forth in the Sources and Uses of
                              Funds. The Lenders will make the Initial Loans
                              simultaneously with the consummation of the
                              Acquisition. Amounts borrowed under the Facility
                              and repaid or prepaid may not be reborrowed.

Initial Maturity Date         The Initial Loans will mature on the first
and the Exchange of the       anniversary (the "Initial Maturity Date") of
Initial Loans:                Closing Date, provided, however, that, subject to
                              "Conditions to Extension" below, the maturity of
                              the Initial Loans will be automatically extended
                              on the Initial Maturity Date until the seventh
                              anniversary of the Closing Date (the "Extended
                              Maturity Date" and such extended maturity loans,
                              the "Extended Term Loans"). At any time on or
                              after the Initial Maturity Date at the option of
                              the applicable holder, Extended Term Loans may be
                              exchanged in whole or in part for senior exchange
                              notes (the "Exchange Securities"). The Extended
                              Term Loans will be governed by the provisions of
                              the Operative Documents and will have the same
                              material terms as the Initial Loans except as set
                              forth in this exhibit. When issued, the Exchange
                              Securities will be governed by an inden-

<PAGE>

                              ture, compliant with the Trust Indenture Act, to
                              be entered into between Borrower and a trustee
                              that is acceptable to Borrower and the Lead
                              Arrangers, which indenture shall have the same
                              material terms as the Initial Loans except as set
                              forth in this exhibit.

Conditions to Extension:      Extension of the maturity of the Initial Loans is
                              subject to (i) none of Borrower or any significant
                              subsidiary (as defined in Regulation S-X under the
                              Securities Act of 1933, as amended) thereof being
                              subject to a bankruptcy or other insolvency
                              proceeding and (ii) the absence of a payment
                              default with respect to the Initial Loans.

Availability of the           The Exchange Securities will be available only in
Exchange Securities:          exchange for the Extended Term Loans. The
                              principal amount of any Exchange Security will
                              equal 100% of the aggregate principal amount (plus
                              any accrued interest that Borrower has elected, in
                              accordance with the terms of the Extended Term
                              Loans, not to pay in cash) of the Extended Term
                              Loan for which it is exchanged.

Guarantee:                    The obligations of Borrower in respect of the
                              Initial Loans, the Extended Term Loans and the
                              Exchange Securities will be unconditionally and
                              irrevocably guaranteed on a senior unsecured basis
                              (the "Guarantees") by all of Borrower's
                              subsidiaries, other than (i) any subsidiary that
                              is a "controlled foreign corporation" under
                              Section 957 of the Internal Revenue Code to the
                              extent such guarantee would result in a material
                              tax liability or (ii) to the extent such guarantee
                              by any subsidiary would be prohibited by the laws
                              governing such subsidiary or would require the
                              undertaking of an onerous approval process
                              pursuant to the laws governing such subsidiary.

Collateral:                   None.

Final Maturity Date:          The Final Maturity Date of the Exchange Securities
                              and the Extended Term Loans will be the seventh
                              anniversary of the Closing Date.

Interest Rates and Fees:      As set forth on Annex I hereto and in the Fee
                              Letter and Engagement Letter.

Ranking:                      The Initial Loans, the Extended Term Loans, the
                              Exchange Securities and the Asset Based Facility,
                              except to the extent of the assets securing the
                              Asset Based Facility, shall be pari passu for all
                              purposes.

                              The Initial Loans, the Extended Term Loans and the
                              Exchange Securities shall constitute senior debt.
                              Any subordinated debt of Borrower will be junior
                              to the Initial Loans, the Extended Term Loans and
                              the Exchange Securities.

Mandatory Redemption:         Borrower will be required to prepay Initial Loans
                              on a pro rata basis from the net proceeds (after
                              deduction of, among other things, mandatory
                              prepayments and certain permitted reinvestments
                              under the Asset Based Facility) from the
                              incurrence of any non-ordinary course debt by
                              Borrower or any of its subsidiaries (other than
                              under the Asset Based Facility) or the issuance of
                              any equity by Borrower

                                       2
<PAGE>

                              (subject to ordinary course exceptions including
                              the issuance of shares upon the exercise of
                              options) or from all non-ordinary-course asset
                              sales by Borrower or any of its subsidiaries.

                              Borrower will be required to prepay all Initial
                              Loans and Extended Term Loans and offer to
                              repurchase all the Exchange Securities, at 100%
                              (or 101% in the case of Fixed Rate Exchange
                              Securities) of principal amount plus accrued and
                              unpaid interest, upon the occurrence of a change
                              of control (to be defined in the Facility).

Optional Prepayment:          The Initial Loans and Extended Term Loans may be
                              prepaid and the Exchange Securities may be
                              redeemed (subject to customary non-call provisions
                              relating to Fixed Rate Exchange Securities), in
                              whole or in part, at the option of Borrower, at
                              any time upon 10 days' prior notice, at par plus
                              accrued and unpaid interest, subject in the case
                              of Initial Loans and Extended Term Loans to
                              reimbursement of the Lenders' actual redeployment
                              costs in the case of a prepayment of LIBOR
                              borrowings other than on the last day of the
                              relevant interest period.

Fixed Rate Exchange           Each Lender shall have the right to fix the
Securities:                   interest rate on its Exchange Security (each such
                              Exchange Security being a "Fixed Rate Exchange
                              Security") at a rate not higher than the then
                              applicable rate of interest, except that upon the
                              representation of a Lender transferring an
                              Exchange Security that a higher rate (such higher
                              rate, the "Transfer Rate") is necessary in order
                              to permit such Lender to transfer such Exchange
                              Security to a third party and receive
                              consideration equal to the principal amount
                              thereof plus all accrued and unpaid interest to
                              the date of such transfer, such rate to be fixed
                              at a rate not higher than the Transfer Rate;
                              provided, however, that such Transfer Rate shall
                              not exceed a rate of 12.0% per annum (10.0% per
                              annum in cash).

                              Each Fixed Rate Exchange Security will be
                              non-callable for four years from the Closing Date
                              (subject to customary IPO clawback provisions) and
                              will be callable thereafter at par plus accrued
                              interest and a premium equal to one-half the
                              coupon in effect on the date of the fixing of the
                              interest rate on such Fixed Rate Exchange
                              Security, which premium shall decline ratably on
                              each anniversary of the Closing Date to zero on
                              customary terms; provided, however, that any Fixed
                              Rate Exchange Securities will be callable prior to
                              such 4th anniversary at a redemption price equal
                              to par plus accrued interest and a make-whole
                              premium calculated on the basis of a discount rate
                              equal to the then Treasury Rate (as defined in
                              Annex I to this exhibit) plus one-half of one
                              percent (0.50%).

Representations and           Usual for facilities and transactions of this type
Warranties:                   with customary exceptions and materiality
                              qualifications, including, without limitation:

                              1.  Corporate status and authority.

                              2.  Execution, delivery, and performance of
                                  Operative Documents do not violate law or
                                  other agreements.

                                       3
<PAGE>

                              3.  No government or regulatory approvals
                                  required, other than approvals in effect.

                              4.  Due authorization, execution and delivery of
                                  Operative Documents; legality, validity,
                                  binding effect and enforceability of the
                                  Operative Documents.

                              5.  Ownership of subsidiaries.

                              6.  Accuracy of financial statements and other
                                  information.

                              7.  Solvency.

                              8.  No action, suit, investigation, litigation or
                                  proceeding pending or threatened in any court
                                  or before any arbitrator or governmental
                                  authority that could reasonably be expected to
                                  result in a material adverse change.

                              9.  Payment of taxes.

                              10. Accurate and complete disclosure.

                              11. Compliance with margin regulations.

                              12. No burdensome restrictions and no default
                                  under material agreements or the Operative
                                  Documents.

                              13. Inapplicability of the Investment Company Act
                                  and Public Utility Holding Company Act.

                              14. Use of proceeds.

                              15. Insurance.

                              16. Labor matters.

                              17. Compliance with laws and regulations,
                                  including ERISA, and all applicable
                                  environmental laws and regulations.

                              18. Ownership of properties and necessary rights
                                  to intellectual property.

Conditions Precedent          Usual for facilities and transactions of this
to Initial Loans:             type, including those specified in the Summary of
                              Additional Conditions Precedent as described in
                              Exhibit C to the Commitment Letter.

Affirmative Covenants:        In the case of the Initial Loans, usual for
                              facilities and transactions of this type (to be
                              applicable to Borrower and its subsidiaries),
                              including but not limited to, and subject, in each
                              case, to customary exceptions and materiality
                              qualifications to be agreed:

                              1.  Preservation of corporate existence.

                                       4
<PAGE>

                              2.  Material compliance with laws (including ERISA
                                  and applicable environmental laws).

                              3.  Payment of taxes.

                              4.  Payment or performance of obligations.

                              5.  Delivery of independently audited annual
                                  consolidated and consolidating financial
                                  statements and unaudited quarterly
                                  consolidated and consolidating financial
                                  statements.

                              6.  Notices of default and litigation.

                              7.  Visitation rights.

                              8.  Maintenance of books and records.

                              9.  Maintenance of properties.

                              9.  Maintenance of insurance.

                              10. Use of proceeds.

                              In the case of the Exchange Securities, usual for
                              facilities and transactions of this type (to be
                              applicable to Borrower and its subsidiaries),
                              including but not limited to, and subject, in each
                              case, to customary exceptions to be agreed:

                              1.  Performance of obligations.

                              2.  Delivery of reports filed with the Securities
                                  and Exchange Commission.

                              3.  Delivery of compliance certificates.

                              Following the Initial Maturity Date, all
                              outstanding Extended Term Loans will be
                              automatically modified to bear affirmative
                              covenants substantially similar to the affirmative
                              covenants of the Exchange Securities.

Negative Covenants:           In the case of the Initial Loans, usual for
                              facilities and transactions of this type (to be
                              applicable to Borrower and its subsidiaries),
                              including but not limited to, and subject in each
                              case to customary exceptions and materiality
                              qualifications to be agreed:

                              1.  Limitations on liens.

                              2.  Limitations on debt (including debt incurred
                                  by direct and indirect subsidiaries and
                                  obligations in respect of foreign currency
                                  exchange and other hedging arrangements).

                              3.  Limitations on dividends, redemptions and
                                  repurchases with respect to capital stock.

                                       5
<PAGE>

                              4.  Limitations on other prepayments, redemptions
                                  and repurchases of other debt (other than
                                  loans under the Asset Based Facility).

                              5.  Limitations on loans and investments.

                              6.  Limitations on mergers, consolidations, asset
                                  dispositions and sale/leaseback transactions.

                              7.  Limitations on transactions with affiliates.

                              8.  Limitations on changes in business conducted
                                  by Borrower and its subsidiaries.

                              9.  Limitations on amendment of debt and other
                                  material agreements.

                              10. Limitations on layered debt.

                              11. Limitations on the issuance and sale of
                                  capital stock of restricted subsidiaries.

                              12. Limitations on restrictions on distributions
                                  from subsidiaries.

                              In the case of the Exchange Securities, usual for
                              facilities and transactions of this type (to be
                              applicable to Borrower and its subsidiaries),
                              including but not limited to, and subject in each
                              case to customary exceptions and materiality
                              qualifications to be agreed:

                              1.  Limitations on debt.

                              2.  Limitations on liens.

                              3.  Limitations on mergers, consolidations, asset
                                  dispositions and sale/leaseback transactions.

                              4.  Limitations on the issuance and sale of
                                  capital stock of restricted subsidiaries.

                              5.  Limitations on restrictions on distributions
                                  from subsidiaries.

                              6.  Limitations on transactions with affiliates.

                              7.  Limitations on restricted payments.

                              8.  Limitations on layered debt.

                              Following the Initial Maturity Date, all
                              outstanding Extended Term Loans will be
                              automatically modified to bear negative covenants
                              substantially similar to the negative covenants of
                              the Exchange Securities.

Events of Default:

                              In the case of the Initial Loans, usual for
                              facilities and transactions of this type (to be
                              applicable to Borrower and its subsidiaries),
                              includ-

                                       6
<PAGE>

                              ing but not limited to, and subject, in each case,
                              to customary exceptions to be agreed:

                              1.  Failure to pay principal, interest or any
                                  other amount when due.

                              2.  Representations or warranties materially
                                  incorrect when given.

                              3.  Failure to comply with covenants (with notice
                                  and cure periods as applicable).

                              4.  Cross-default and cross-acceleration to debt
                                  aggregating an amount to be agreed or more.

                              5.  Unsatisfied judgment or order in excess of an
                                  amount to be agreed individually or in the
                                  aggregate.

                              6.  Bankruptcy or insolvency.

                              7.  Invalidity of any Guarantee or any other
                                  Operative Document.

                              In the case of the Exchange Securities, usual for
                              facilities and transactions of this type and
                              others to be reasonably specified by the Agent,
                              including but not limited to, and subject, in each
                              case, to customary exceptions to be agreed:

                              1.  Failure to pay principal, interest or any
                                  other amount when due.

                              2.  Failure to comply with covenants (with notice
                                  and cure periods as applicable).

                              3.  Cross-acceleration to debt aggregating an
                                  amount to be agreed or more.

                              4.  Unsatisfied judgment or order in excess of an
                                  amount to be agreed individually or in the
                                  aggregate.

                              5.  Bankruptcy or insolvency.

                              6.  Invalidity of any Guarantee or any other
                                  Operative Document.

                              Following the Initial Maturity Date, all
                              outstanding Extended Term Loans will be
                              automatically modified to bear events of default
                              substantially similar to the events of default of
                              the Exchange Securities.

Registration Rights with      Borrower will file within 30 days after the
Respect to Exchange           Initial Maturity Date, and will use its best
Securities:                   efforts to cause to become effective as soon
                              thereafter as practicable, a shelf registration
                              statement with respect to the Exchange Securities
                              (a "Shelf Registration Statement") and/or a
                              registration statement relating to a Registered
                              Exchange Offer (as described below). If a Shelf
                              Registration Statement is filed, Borrower will
                              keep such registration statement effective and
                              available (subject to customary exceptions) until
                              it is no longer needed to permit unrestricted
                              resales of Exchange Securities (but in no event
                              longer than

                                       7
<PAGE>

                              two years from the Initial Maturity Date).

                              If  within 120 days from the Initial Maturity
                              Date,

                              (a) a Shelf Registration Statement for the
                                  Exchange Securities has not been declared
                                  effective, or

                              (b) Borrower has not effected an exchange offer (a
                                  "Registered Exchange Offer") whereby Borrower
                                  has offered registered notes having terms
                                  identical to the Exchange Securities (the
                                  "Substitute Notes") in exchange for all
                                  outstanding Exchange Securities and Extended
                                  Term Loans, or

                              (c) the holders of Exchange Securities have not
                                  received Substitute Notes through the
                                  Registered Exchange Offer which, in the
                                  opinion of counsel, would be freely saleable
                                  by such holders without registration or
                                  requirement for delivery of a current
                                  prospectus under the Securities Act (other
                                  than a prospectus delivery requirement imposed
                                  on a broker-dealer who is exchanging Exchange
                                  Securities acquired for its own account as a
                                  result of market making or other trading
                                  activities) and Borrower has not made
                                  available a Shelf Registration Statement with
                                  respect to such Exchange Securities,

                              then Borrower will pay liquidated damages of
                              $0.192 per week per $1,000 principal amount of
                              Exchange Securities outstanding to holders of such
                              Exchange Securities who are unable freely to
                              transfer Exchange Securities from and including
                              the 121st day after the Initial Maturity Date to
                              but excluding the earlier of the effective date of
                              such Shelf Registration Statement or the date of
                              consummation of such Registered Exchange Offer
                              (such damages to be payable in the form of
                              additional Exchange Securities, if the then
                              interest rate thereon exceeds the cash interest
                              rate cap). Borrower will also pay such liquidated
                              damages for any period of time (subject to
                              customary exceptions) following the effectiveness
                              of a Shelf Registration Statement that such Shelf
                              Registration Statement is not available for
                              resales thereunder. In addition, unless and until
                              Borrower has consummated the Registered Exchange
                              Offer and, if required, caused the Shelf
                              Registration Statement to become effective, the
                              holders of the Exchange Securities will have the
                              right to "piggyback" the Exchange Securities in
                              the registration of any debt securities (subject
                              to customary scale-back provisions) that are
                              registered by Borrower (other than on a Form S-4)
                              unless all of the Exchange Securities and Initial
                              Loans will be redeemed or repaid from the proceeds
                              of such securities.

Voting:                       Amendments and waivers of the documentation for
                              the Initial Loans and the other definitive credit
                              documentation related thereto will require the
                              approval of Lenders holding at least a majority of
                              the outstanding Initial Loans, Extended Term Loans
                              and Exchange Securities, as applicable, except
                              that the consent of each affected Lender and/or
                              holder of an Exchange Security will be required
                              for, among other things, (i) reductions of
                              principal and interest rates and fees, (ii)
                              extensions of the Initial Maturity Date, (iii)
                              additional restrictions on the right to exchange
                              Initial Loans for Exchange Securi-

                                       8
<PAGE>

                              ties or any amendment of the rate of such exchange
                              or (iv) any amendment to the Exchange Securities
                              that requires (or would, if any Exchange
                              Securities were outstanding, require) the approval
                              of all holders of Exchange Securities.

Assignment and                The Lenders will have the right to assign loans
Participation of Loans:       and commitments to their affiliates and to other
                              Lenders (and affiliates of such other Lenders) and
                              to any Federal Reserve Bank without restriction
                              and to other financial institutions, with the
                              consent, not to be unreasonably withheld, of the
                              Agent. Minimum aggregate assignment level (except
                              to affiliates of the assigning Lender and other
                              Lenders and their affiliates) of $5,000,000 and
                              increments of $1,000,000 in excess thereof. The
                              parties to the assignment (other than Borrower)
                              shall pay to the Agent an administrative fee of
                              $3,500.

                              Each Lender will have the right to sell
                              participations in its rights and obligations under
                              the loan documents, subject to customary
                              restrictions on the participants' voting rights.

Right to Transfer             The holders of the Exchange Securities shall have
Exchange Securities:          the absolute and unconditional right to transfer
                              such Exchange Securities in compliance with
                              applicable law to any third parties.

Yield Protection, Taxes       The loan documents will contain yield protection
and Other Deductions:         provisions, customary for facilities of this
                              nature, protecting the Lenders in the event of
                              unavailability of funding, funding losses, reserve
                              and capital adequacy requirements.

                              All payments to be free and clear of any present
                              or future taxes, withholdings or other deductions
                              whatsoever (other than income taxes in the
                              jurisdiction of the Lender's applicable lending
                              office).

Expenses and Indemnification: Customary provisions regarding expense
                              reimbursement and indemnification by the Credit
                              Parties.

Governing Law and Forum:      New York.

Counsel for the Lead          Cahill Gordon & Reindel LLP.
Arrangers:

                                       9
<PAGE>

                                                                         ANNEX I
                                                                    TO EXHIBIT B

                              INTEREST RATES AND FEES

Initial Loans:                Before the Initial Maturity Date, the Initial
                              Loans will accrue interest at a rate per annum
                              equal to, at Borrower's election, either (i)
                              three-month reserve-adjusted LIBOR plus a spread
                              (the "LIBOR Spread," as defined below), or (ii)
                              the ABR (as defined below) plus a spread (the "ABR
                              Spread," as defined below).

                              The "LIBOR Spread" will initially be 500 basis
                              points. If Borrower chooses to pay interest at the
                              rate specified in clause (i), and the Initial
                              Loans are not repaid in whole within the
                              three-month period following the Closing Date, the
                              LIBOR Spread will increase by 50 basis points at
                              the end of such three-month period and shall
                              increase by an additional 50 basis points at the
                              end of each three month period thereafter until,
                              but excluding, the Initial Maturity Date.

                              The "ABR Spread" will initially be 400 basis
                              points. If Borrower chooses to pay interest at the
                              rate specified in clause (ii),and the Initial
                              Loans are not repaid in whole within the
                              three-month period following the Closing Date, the
                              ABR Spread will increase by 50 basis points at the
                              end of such three-month period and shall increase
                              by an additional 50 basis points at the end of
                              each three-month period thereafter until, but
                              excluding, the Initial Maturity Date.

                              "ABR" means the highest of (i) Citibank, N.A.'s
                              base rate, (ii) the three-month certificate of
                              deposit rate plus 1/2 of 1%, and (iii) the Federal
                              Funds Effective Rate plus 1/2 of 1%.

                              Notwithstanding the foregoing, (a) the interest
                              rate in effect at any time before the Initial
                              Maturity Date shall not exceed 12.0% per annum,
                              (b) the interest rate in effect at any time before
                              the Initial Maturity Date shall not be less than
                              8.25% per annum and (c) to the extent the interest
                              payable before the Initial Maturity Date on any
                              Initial Loan exceeds a rate of 10.0% per annum,
                              Borrower may, at its option, cause such excess
                              interest to be paid adding such excess interest to
                              the principal amount of such Initial Loan. In no
                              event shall the interest rate on the Initial Loans
                              exceed the highest rate permitted under applicable
                              law.

                              Calculation of interest shall be on the basis of
                              actual days elapsed in a year of 360 days (or 365
                              or 366 days, as the case may be, in the case of
                              ABR loans, except where ABR is determined pursuant
                              to clause (iii) of the definition thereof).

                              LIBOR will at all times include statutory
                              reserves.

                              Interest will be payable in arrears (a) for
                              Initial Loans accruing interest at a rate based on
                              LIBOR, at the end of each LIBOR period and on the
                              Initial Maturity Date and (b) for Initial Loans
                              accruing inter-

                                        1
<PAGE>

                              est at a rate based on the Alternate Base Rate,
                              quarterly in arrears and on the Initial Maturity
                              Date.

Extended Term Loans           The Extended Term Loans and Exchange Securities
and Exchange Securities:      will bear interest at a rate equal to the Initial
                              Rate (as defined below) plus the Exchange Spread
                              (as defined below). Notwithstanding the foregoing,
                              the interest rate in effect at any time shall not
                              exceed 12.0% per annum nor be less than 8.25% per
                              annum, and to the extent the interest payable on
                              any Extended Term Loan or Exchange Security
                              exceeds a rate of 10.0% per annum, Borrower may,
                              at its option, cause such excess interest to be
                              paid by adding such excess to principal (in the
                              case of Extended Term Loans) or issuing additional
                              Exchange Securities in a principal amount equal to
                              such excess portion of interest. In no event shall
                              the interest rate on the Extended Term Loans or
                              Exchange Securities exceed the highest rate
                              permitted under applicable law.

                              "Exchange Spread" means 0 basis points during the
                              3 month period commencing on the Initial Maturity
                              Date and shall increase by 50 basis points at the
                              beginning of each subsequent 3 month period.

                              "Initial Rate" shall be determined on the Initial
                              Maturity Date and shall equal the interest rate
                              borne by the Initial Loans on the day immediately
                              preceding the Initial Maturity Date plus 50 basis
                              points.

                              Interest on the Exchange Securities and Extended
                              Term Loans will be payable quarterly in arrears
                              (or semiannually in arrears for Fixed Rate
                              Exchange Securities).

                                        2
<PAGE>

CONFIDENTIAL                                                           EXHIBIT C

                   SUMMARY OF ADDITIONAL CONDITIONS PRECEDENT

All capitalized terms used herein but not defined herein shall have the meanings
provided in the Commitment Letter (including the other exhibits thereto) to
which this Summary of Additional Conditions Precedent is attached.

The borrowing under the Facility shall be subject to the following additional
conditions precedent:

      1. CONSUMMATION OF ACQUISITION. The Acquisition shall have been
consummated or shall be consummated simultaneously with or immediately following
the closings under the Facility in accordance with the Acquisition Agreement and
all other related documentation (without amendment, modification or waiver
thereof which is adverse to the Lenders without the prior consent of the
Lenders). Sources and uses of funds shall be substantially as set forth in
Exhibit A.

      2. ACQUIRED BUSINESS FINANCIAL STATEMENTS. Not later than 30 days before
the Closing Date, the Lenders shall have received (a) audited consolidated and
consolidating balance sheets and related statements of income, stockholders'
equity and cash flows of each of Borrower and the Acquired Business for the
three fiscal years ended before the Closing Date and (b) to the extent
available, unaudited consolidated and consolidating balance sheets and related
statements of income, stockholders' equity and cash flows of each of Borrower
and the Acquired Business for each completed fiscal quarter since the date of
such audited financial statements (and, to the extent available, for each
completed month since the last such quarter), which audited and unaudited
financial statements shall be prepared in accordance with, or reconciled to,
United Stated generally accepted accounting principles ("U.S. GAAP").

      3. PRO FORMA FINANCIAL STATEMENTS; PROJECTIONS. The Lenders shall have
received a pro forma consolidated balance sheet of Borrower as of the Closing
Date, after giving effect to the Transactions, together with a certificate of
the chief financial officer of Borrower to the effect that such statements
accurately present the pro forma financial position of Borrower and its
subsidiaries in accordance with U.S. GAAP. Borrower shall have delivered its
most recent projections through the 2010 fiscal year, prepared on a quarterly
basis through the end of 2007.

      4. SOLVENCY. The Lenders shall have received a solvency certificate, in
form and substance and from the chief financial officer of Borrower, together
with such other evidence reasonably requested by the Lenders, confirming the
solvency of Borrower and its subsidiaries on a consolidated basis after giving
effect to the Transactions.

      5. CONSENTS. All requisite material governmental authorities and, except
as would not reasonably be expected to have or result in a Material Adverse
Effect (as defined in Section 1(b) of the Commitment Letter without giving
effect to clause (ii) of such definition), all third parties shall have approved
or consented to the Transactions to the extent required, all applicable appeal
periods shall have expired and there shall be no material governmental or
judicial action, actual or threatened, that could reasonably be expected to
materially restrain, prevent or impose burdensome conditions on the Transactions
or the other transactions contemplated hereby.

      6. WORKING CAPITAL FACILITY. The Borrower shall have entered into a
working capital facility on terms and conditions reasonably satisfactory to the
Lead Arrangers and the Lenders based on the working capital needs of the
Borrower; it being understood that the terms and conditions of the Asset Based
Facility (including but not limited to terms and conditions relating to the
interest rate, fees, amortization, maturity, subordination, covenants, events of
defaults and remedies) as contemplated in the commitment letter dated April 17,
2005 between the Borrower and the lenders thereto are satisfactory to the Lead
Arrangers and the Lenders.

                                        1
<PAGE>

      7. OFFERING DOCUMENT FOR NOTES; RATING OF NOTES. The Lead Arrangers shall
have received, not later than 30 days prior to the Closing Date, a complete
printed preliminary prospectus or preliminary offering memorandum or preliminary
private placement memorandum suitable for use in a customary "high-yield road
show" relating to the Notes, which contains all financial statements and other
data to be included therein (including all audited financial statements, all
unaudited financial statements (which shall have been reviewed by the
independent accountants for Borrower as provided in Statement on Auditing
Standards No. 100) and all appropriate pro forma financial statements prepared
in accordance with, or reconciled to, U.S. GAAP and prepared in accordance with
Regulation S-X under the Securities Act), and all other data (including selected
financial data) that the Securities and Exchange Commission would require in a
registered offering of the Notes as applicable or that would be necessary for
the Lead Arrangers to receive customary "comfort" (including "negative
assurance" comfort) from independent accountants in connection with the offering
of the Notes. Upon delivery of such prospectus, offering memorandum or private
placement memorandum, Borrower will cause its senior management personnel to
participate in a customary road show for the sale of the Notes. The Lead
Arrangers shall have been afforded a period of at least 30 days following
receipt of the material described in the foregoing to seek to place the Notes
with qualified purchasers thereof. The Notes shall have been rated by both
Moody's and S&P at least 30 days prior to the proposed Closing Date and the Lead
Arrangers shall have received confirmation thereof.

      8. MISCELLANEOUS CLOSING CONDITIONS. Other customary closing conditions,
including delivery of satisfactory legal opinions of Borrower's and the Lead
Arrangers' counsel; other financial information to be agreed; accuracy of
representations and warranties; absence of defaults, prepayment events or
creation of liens under debt instruments or other agreements as a result of the
transactions contemplated hereby; evidence of authority; compliance with
applicable laws and regulations; and payment of fees and expenses.

                                       2

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